Coca Cola is absolute marketing genius. Think of it as a world wide franchise
whose product is perfect. Consider:
- The central Coca Cola factory produces concentrate. This is a thick syrup which is diluted a zillion times to produce the drink.
- The syrup is shipped all over the world in barrels.
- Coca Cola plants add the syrup to water (cheap), add carbonation (just CO2), and bottle or can the stuff.
- The finished product can be stored for years, and it is stable (because after all it is sterile water with sugar and gas).
- It can be sold at a profit at nearly any price.
I claim to no insider information, but consider that what Coca Cola spends on when making and shipping Coke to customers is mostly local labor
. So the drink can be sold at a price which is always accessible.
Basically, they price it at whatever they can get away with, because there is no competition. And how do they assure that? Through advertisement
, of course. And they have a lot of dollars for ads.