Pepsi pricing tactics

The pricing strategy the Pepsi should use over the next years is geographic pricing. The geographic pricing is when the product is priced differently based on the different locations.  In this case, the pricing of Pepsi can be based on charging a higher price to those customers who are in a distant location so that it can be able to cover the higher costs of transportation. Thus, the company should set the prices for Pepsi in different countries and location. For instance, if the central warehouse of the firm is in a city, the company can consider pricing Pepsi being distributed around the city at a cheaper rate than the cost that customers in regions outside the city will have to pay.

Another strategy that the firm can use to price Pepsi is through the discriminatory pricing strategy. The pricing strategy tends to accommodate the differences in products, location, and customers. When using the price discrimination strategy, the sellers of the Pepsi product may consider charging different prices depending on the volume that a buyer buys. The price for the people who purchase less than three Pepsis will be different from those who purchase more than three. Those buyers who buy a large volume will be charged less than the small buyers. The prices that can be used in the next year when using the discriminatory pricing is through putting different prices depending on the seasons. For instance, the prices can increase during the summer season and then decrease during the winter season.  With such a strategy, it will enable the company to get as much revenue as possible.  

Sherry Roberts is the author of this paper. A senior editor at MeldaResearch.Com in write my essay online if you need a similar paper you can place your order from write my essay for me services.