The rationale behind this project is to know the effect of pricing policy on sales in the beverage industry’ with reference to Coca-Cola Bottling Company Nigeria. The researcher during the course of investigation has received a lot of related literature so as to acquire more knowledge in order to be in a better position to advice firms. The research population composed of 500 people which out of the entire population the researcher made use of 50 sample size to be a representative of the entire population. It revealed that price fixed by organization on its product have an impact on its sales and it equally revealed that price is not indicator of higher quality product it is concluded that price has a strong impact on sales and profitability in the beverage industry. It is thus recommended that, Coca-Cola should reduce their prices by little percentage in order to induce customers to buy more of their products as this will increase sales and maximize profit of Coca-Cola Bottling Company.
The subject under study is the effect of pricing policy on sales in beverage industry, the principle, of pricing entails that companies be cautious and efficient in setting up price for their product. Price as one of the four Ps of marketing, demand good attention, because it plays a major role in the successful marketing of a company’s product, customers or consumers decide either to buy or not to buy a particular product judging the nature and characteristics of the product and their purchasing power through its price.
Therefore, price of product is the major determinant, of the market demand for such product, price is one of the most powerful weapons that are available for or to a market to beat down competitors. Customers are likely to patronize company’s product whose prices is satisfying and psychologically fair to them. Effective strategy and policy must be adopted in order for the company’s to succeed in its marketing programme so that it will result to an effective implementation of pricing.
Pricing is an area of primary importance in marketing and it is central to the profitable operation of a business, its marketing activities without critically monitoring and controlling it’s pricing system profit can only be made if consumer buy what the company produce, on the other hand consumer will only buy at the price that satisfies them. In the past many firms did not under stand the theory and concept of pricing. This is very peculiar to developing economy especially Nigerian. They merely set prices that suit their purpose and interest without viewing it from customer point to view.
This is because there were no or not enough competitive firms. Many firm have to realize the importance of pricing as one of the most important element that helps to determine the success of any business enterprise.
In managing the pricing of product which is part of company’s marketing mix, management must first of all decide on its pricing goal, policy and strategy about a given product to satisfy consumers, efficient pricing of goods and services which is often a critical factor in successful operation of any business enterprise. Pricing has many definitions as there are many definitions given by some price authors;
To this end Kotler (2000) defined price as “the amount of money needed to acquire some or a combination of a product and its accompanying or separate services.
Pricing is there fore the parallel of the total product offered to a buyer for a price and receives not only the product of offering but may include installation. Maintenance services and repair of a brand / new which may be helpful in future for promotion. This question here is how are price arrived at: historically in a competition environment (market) through bargaining with each other sellers would offer more than they expect to set from buyer who will in turn offer less than they expect to pay.
They would arrive at a mutually acceptable price through bargaining.
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