describing their brand as a “hip alternative” to “corporate colas” like Coke and Pepsi.

/in /by

ECN360 – The manufacturers of R.C. Cola, with 2.1% market share in the soft drink industry

ECN360 – The manufacturers of R.C. Cola, with 2.1% market share in the soft drink industry

Question

ECN360

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The manufacturers of R.C. Cola, with 2.1% market share in the soft drink industry, recently launched a new advertising campaign describing their brand as a “hip alternative” to “corporate colas” like Coke and Pepsi.Why don’t they simply try and gain market share by cutting price? What property of oligopoly markets explains this type of behavior?

ECN360 – The manufacturers of R.C. Cola, with 2.1% market share in the soft drink industry

 

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