Chai wrote:Brands of cola....
RC
Coke
Pepsi
Tab
Albeit, coke and pepsi are the most popular.
It's not common, but there's coupons for sodas.
I simply think marketing is sophisticated enough to know when the competition is going to have a sale, and simply respond to the market.
Tab is owned by Coke. RC has such minor impact on the market.
Not coupons for Coke or Pepsi, maybe for sodas, which is not a Cola.
Marketing is sophisticated for Coke and Pepsi, that's why they take turns having sales.
If they responded to the market (which they make) as you say, they would have the same sale on the same week.
Why should it be a surprise that the two leading brands match each other is pricing and promotions. They're in direct competition and their pricing and promotions will naturally mimic each other.
A similar price increase is happening in the bottled water and carbonated water markets. As an example, the price of LaCroix seltzer (carbonated water) is now over $5.00/12 pack - higher than sodas. None of these items are basic foods. Few people in this country need to pay for bottled water but they are currently in vogue and the price has sky-rocketed.
If the pricing patterns put the cost beyond the set point you're willing to pay, then don't pay it. No one needs to drink Pepsi or Coke or carbonated water. The manufacturers are top surfing for pricing (as is everyone who has a product to sell) and unless people stop buying the products there's no reason to think the prices wont continue to climb.
snookered wrote:
Not coupons for Coke or Pepsi, maybe for sodas, which is not a Cola.
Marketing is sophisticated for Coke and Pepsi, that's why they take turns having sales.
If they responded to the market (which they make) as you say, they would have the same sale on the same week.
snookered dear, what are you not understanding?
THERE ARE coupons for Coke and Pepsi...Yes, there ARE. I have used them. Not from drug stores....coupons from the sunday paper.
Coke and Pepsi DO go on sale at the same time....Yes, they DO.
Again, just because you don't see this happening, does that mean it doesn't?
So far, you are the only person who thinks there's some kind of price fixing, I think you just have that in your head, and nothing will show you otherwise.
One major thing you seem to have overlooked is the overall strategy of the supermarkets, snookered. What extra benefit would it bring for a supermarket to have both brands on special at the same time?
Chances are that they will have a related item right next to the Coke or Pepsi, rather than both drinks on a promotional display together. Next time you see a coke display, look what's next to it. It'll be chips or some other kind of snack junk, I'll bet.
There's no extra sales potential to be had by stacking identical products together, both on special. Far better to alternate them.
Linkat wrote:snookered wrote:Linkat wrote:Some other cola companies:
Procter & Gamble
Cadbury Schweppes
Winn-Dixie
Hansen Natural
SABMiller
Heineken
A.S Watson
Asahi Breweries
Cott
Leading Brands
Polar
Let me repeat...There are two MAJOR Brands of Cola, Pepsi and Coke. These you mention don't amount to a hill of beans. The Leading Brands are these!
I have never heard of six of them. Four are beer breweries, unless they have a line of Coloas.
Where do you live and what do you consider leading brands?
Yes - they have a line of colas (breweries) - just because you do not recongnize the names - most sell under different brand names. Look up the company websites and you will see they also sell soft drinks.
One that I see alot is Polar Cola and A&W root beer plus many smaller companies are taking over similar to micro breweries. Also many store brands are distributed by some of the companies I listed above.
The other point being is there are other choices. If the prices get too high, people will switch to another choice.
A&W is owned by Pepsi or maybe Coke. Polar a minute player. I know Seagrams makes a Gingerale.
What is the line of Colas that breweries have? Don't tell me to look it up!
If price was the deciding factor, Publix and Winn Dixie Brands would be leaders.
Name one smaller company that comes close to competing with Coke or Pepsi.
Actually malek, there is....is a pychological thing.
If you put 2 similar products on sale, moore consumers will notice that and at least buy something, one or the other.
If coke is on sale alone, the shopper will notice, but may think...oh, I've got that at home....if coke AND pepsi are on sale, the shopper internalizes that and starts to think...I should buy some, that's a good price, and they'll put something, one or the other in their cart.
Haven't you noticed that, let's say there's coupons in the paper for let's say cranberry sauce for .50 cents off a $1.50 can, the store brand will lower it's price to near match it, making it let's say .02 less than the coupon brand?....better example yet, the national brand has coupons hanging near them on the shelf for the .50 cents off, and the store brand lowers its price to 2 cents lower.
Most people, will think, jesus, I should buy some cranberry sauce, look at those prices. Now the decision is...Do I want to buy the national brand at a really discounted price (wow, I'm getting this name brand product at a store brand price) or should I just get the store brand (it's the same thing, and it's still cheaper than the national brand) either way, the thought has been put in your head "I need to buy something"
No one NEEDS cranberry sauce. No one NEEDS coke or pepsi...but we all NEED (or get the twinge, the urge) to buy when we feel we're getting something extra.
JPB wrote:Why should it be a surprise that the two leading brands match each other is pricing and promotions. They're in direct competition and their pricing and promotions will naturally mimic each other.
A similar price increase is happening in the bottled water and carbonated water markets. As an example, the price of LaCroix seltzer (carbonated water) is now over $5.00/12 pack - higher than sodas. None of these items are basic foods. Few people in this country need to pay for bottled water but they are currently in vogue and the price has sky-rocketed.
If the pricing patterns put the cost beyond the set point you're willing to pay, then don't pay it. No one needs to drink Pepsi or Coke or carbonated water. The manufacturers are top surfing for pricing (as is everyone who has a product to sell) and unless people stop buying the products there's no reason to think the prices wont continue to climb.
That's the damn point! They don't match each other. One has a sale one week at .99 while the other stays at 1.49. Next week they reverse. No one needs to drink coke or pepsi, but guess what? THEY DO!
The rest of your argument is obvious, so no comment is required.
malek wrote:One major thing you seem to have overlooked is the overall strategy of the supermarkets, snookered. What extra benefit would it bring for a supermarket to have both brands on special at the same time?
Chances are that they will have a related item right next to the Coke or Pepsi, rather than both drinks on a promotional display together. Next time you see a coke display, look what's next to it. It'll be chips or some other kind of snack junk, I'll bet.
There's no extra sales potential to be had by stacking identical products together, both on special. Far better to alternate them.
Where do I start? Supermarkets do not set the price of coke or pepsi. Coke and Pepsi do the stocking and pricing. They decide when they will be on sale and who will have the sale, almost like an unspoken agreement.) They also pay the most for shelf space and placement. Why do you think that both are on opposite ends of the ails?
They don't have potato chips in the same ails, they have their own ails.
Re: How can this NOT be Price Fixing
snookered wrote: I have been watching Coca Cola and Pepsi Cola systematically raise their prices like a well conducted orchestra. I have also noticed that they alternate weeks on sales. One week it's Pepsi and the nest it's Coca Cola.
What do you think..anybody?
Ok, let's start over... what's your basic bugaboo. The systematic rise in prices or the alternating promotions?
If you analyze the layout of any store, you will see that it is done very cleverly. The essentials such as bread, coffee, sugar, milk etc are all spaced out round the store, and never placed together. As you are forced to walk round the store to get these essentials, you will pass the specials, which normally consist of related products placed together, in order to maximise the probability that both items will be purchased n one hit.
If you look closer still, you will probably notice that the products that make the most "unit profit" will be placed at eye level onthe shelves, while the basics wthin that range are on the bottom.
For example, a generic brand of coffee will be out of eyeline. What you will be "encouraged" to look at first is the high priced, high unit profit top of the range coffee, and chances are you'll buy it unless you're working to a very strict budget. Every product group will be arranged in the same way. Expensive and high profit items will be the first that you will naturally look at.
A supermarket is much more likely to have a related products display rather than two identical products standing together. A double saleis what they're after. What they want is a customer to not only buy coke, but also a large bag of snacks to go with it.
Have a good long look next time you're shopping, and you'll see what I mean. I've spent many hours negotiating in store diplays with various supermarket buyers and they would seldom arrange for direct competitors to have major promotions on at the same time. Christmas is the only exception, when anything goes.
I also learned that what is a simple stroll round a store to an unsuspecting customer, is a major psychological experiment in how to get you to part with money as far as the supermarket is concerned.
The main phrase I heard used, was "how can we change a customer's want into a need".
Interesting malek
what is it you do?
snookered wrote:Linkat wrote:snookered wrote:Linkat wrote:Some other cola companies:
Procter & Gamble
Cadbury Schweppes
Winn-Dixie
Hansen Natural
SABMiller
Heineken
A.S Watson
Asahi Breweries
Cott
Leading Brands
Polar
Let me repeat...There are two MAJOR Brands of Cola, Pepsi and Coke. These you mention don't amount to a hill of beans. The Leading Brands are these!
I have never heard of six of them. Four are beer breweries, unless they have a line of Coloas.
Where do you live and what do you consider leading brands?
Yes - they have a line of colas (breweries) - just because you do not recongnize the names - most sell under different brand names. Look up the company websites and you will see they also sell soft drinks.
One that I see alot is Polar Cola and A&W root beer plus many smaller companies are taking over similar to micro breweries. Also many store brands are distributed by some of the companies I listed above.
The other point being is there are other choices. If the prices get too high, people will switch to another choice.
A&W is owned by Pepsi or maybe Coke. Polar a minute player. I know Seagrams makes a Gingerale.
What is the line of Colas that breweries have? Don't tell me to look it up!
If price was the deciding factor, Publix and Winn Dixie Brands would be leaders.
Name one smaller company that comes close to competing with Coke or Pepsi.
Price is a factor - if the price of Pepsi and Coke were so high then people would resort to other brands even if they prefer Pepsi and Coke. For example if the price of Pepsi and Coke for an 8 oz can cost $10, I am sure no matter how much you loved your Coke you would buy the store brand.
What concerns me more than hypothetical price-fixing is that Coke and Pepsi both approach college/prep school/public school campuses and offer little goodies--like athletic scoreboards featuring their soda--providing that their soda be the only brand sold on campus.
I must be the only one that knows what Snookered is talking about. Maybe it's a southern thing.
One week I can get Coke products on sale at Food Lion, and the next I can get Pepsi, but both are not on sale at the same time.
However, if I must have a Pepsi product and am going to Krogers anyways, I'll likely find Pepsi on sale there, and Coke not. But again, not both at the same time.
Here it changes on Tuesday night for Wednesday opening.
squinney wrote: Maybe it's a southern thing.
That is possible I guess. I looked t\at the weekly sale flyer for both Stop & Shop and Roche Bros. (two New England chains) and both chains have both Coke and Pepsi on sale this week - different size bottles/cans but both brands are on sale.
(The Stop & Shop that Quinn shops at always has a sale on Pepsi products. I've never been in there when they didn't have a "10 for $10" sale on Pepsi 2-liter bottles.)
snookered,
Sales are conducted by the stores, not the cola manufacturers. They can be a loss leader to get people into the store. Alternating sales get pepsi customers one week, coke the next. I doubt every store in your area is doing a coke sale at the same time.
Grocery stores often sell shelf space to brands. As malek pointed out the name brands get the eye level shelf space. They pay for it. There was a law suit a few years ago because of the selling of shelf space for cereal manufacturers. Kellogs and General Mills were forcing the other cereal manufacturers off the shelf.
http://www.nd.edu/~ndmag/ilum1f99.htm
snookered wrote:
Marketing is sophisticated for Coke and Pepsi, that's why they take turns having sales.
No one listens to me either.
They are on sale at the same time. Every week.
I've seen it.
Here.
And here. (sorry, the image wouldn't come up)
Target
One of each. Both on sale this week.
The sales (as someone else said) are set by the stores to bring people in. Not by Coke or Pepsi.
Bella Dea wrote:snookered wrote:
Marketing is sophisticated for Coke and Pepsi, that's why they take turns having sales.
No one listens to me either.
They are on sale at the same time. Every week.
I've seen it.
Here.
And here. (sorry, the image wouldn't come up)
Target
One of each. Both on sale this week.
The sales (as someone else said) are set by the stores to bring people in. Not by Coke or Pepsi.
OK, for the last time. As I said before, I excluded stores such as pharmacies. SUPERMARKETS, SUPERMARKETS SUPERMARKETS....Pepsi and Coke set the prices and sales days, this is called a silent agreement or contract. It's great marketing, but that is why it is illegal to "price fix." They stock the shelves and pay dearly for the shelf space. The are always at the opposite end of the isle.
Many stores use "loss Leaders" to get consumers into their store.
snookered wrote:
OK, for the last time. As I said before, I excluded stores such as pharmacies. SUPERMARKETS, SUPERMARKETS SUPERMARKETS....Pepsi and Coke set the prices and sales days, this is called a silent agreement or contract. It's great marketing, but that is why it is illegal to "price fix." They stock the shelves and pay dearly for the shelf space. The are always at the opposite end of the isle.
Many stores use "loss Leaders" to get consumers into their store.
So, you say SUPERMARKETS do this? Well, Farmer Jack is a SUPERMARKET. And Target is a super-store. Neither are a pharmacy.
