Journal of Marketing and Consumer Research www.iiste.org ISSN 2422-8451 An International Peer-reviewed Journal Vol.34, 2017 43 Effect of Pricing of New Coca Cola Soft Drink Products on Sales Performance of Coca- Cola Company in Nyahururu Town Kamau Charles Kiiru Elizabeth N. Makokha David Gichuhi Department of Commerce ,Laikipia University, P.O BOX 1100-20300 Abstract A sales performance review of new soft drinks products introduced by Coca cola in Mount Kenya region, established that only 15% have succeeded, 55% have performed poorly, 17.5% have failed completely and another 12.5% have exhibited an abnormally high artificial growth. However, there is scanty and inconclusive empirical data that would explain this trend of Coca cola products within Nyahururu town in Kenya. The purpose of this study was to examine the effects of price as marketing mix variables of new Coca-Cola soft drinks products on the company’s sales performance in Nyahururu town. The specific objectives included examining the effects of pricing, of new Coca cola soft drinks products on sales performance of the company in Nyahururu town. To achieve these objective, hypotheses was formulated and tested empirically. This study was based on the marketing mix theory by Borden. The study adopted a descriptive research design that gathered both quantitative and qualitative data. The target population comprised of 375 managers and owners of outlets selling Coca cola soft drinks in Nyahururu town. The sample size was 75 which was 20% of the target population as per postulations from Mugenda & Mugenda (2003), which was arrived at through stratified random sampling. Out of this, 73 responded meaning the response rate was 97.3%. The study used a questionnaire to obtain primary data whose validity was enhanced through discussions with the supervisors. Test-retest method was used to achieve reliability during a pilot study conducted in Subukia town. Cronbach’s alpha was used to test the reliability in which 0.789 values was obtained which was acceptable. Quantitative data was analyzed using the Statistical Package for Social Sciences (SPSS) version 20 computer software and presented in frequencies, percentages, and tables for clarity. Qualitative data was used to supplement interpretation of quantitative data. The study established that pricing of new products had an influence on sales performance of the existing Coca cola products. The, study recommends that the pricing of new products should compare favorably with existing products so as to avoid cannibalization and intra-distribution channel competition. The study has added to the body of knowledge that could benefit students, researchers and academicians interested in this area of study. Keywords: Market Mix Variable, Pricing, Coca Cola, Sales Performance, Products 1 Background and Literature Review 1.1 Marketing Mix “Marketing mix" is a general phrase used to describe the different kinds of choices organizations have to make in the whole process of bringing a product or service to the market. The 4Ps is one way – probably the best-known way – of defining the marketing mix, and was first expressed in 1960 by McCarthy (Mind Tools, 2014). The four P’s of marketing are product, price, place and promotion. The four P’s are the four key elements which the marketers of new products must take into consideration when setting out to design a successful marketing plan. The first of the four elements of the four Ps is product, which, Ehmke et al (2005) described as the goods and services that a business offers to its customers. Apart from the physical product itself, there are elements associated with products that customers may be attracted to, such as the way it is packaged. Other product attributes include quality, features, options, services, warranties, and brand name (Ehmke, Fulton, & Lusk, 2005).The price element of the 4 Ps is how much a business charges for its products or services. The “Place” aspect, of the 4 Ps of marketing, refers to the distribution channels used to get a business’ product to its customers. Finally, the “Promotion” aspect of the four Ps of marketing refers to the advertising and selling part of marketing. It is how you let your target market know what you are offering for sale. The success of a company is dependent on a well-balanced and integrated 4Ps of marketing mix, also known as the Marketing Mix Variables. The components of the Product, its Price, the Place (distribution channels), and Promotions have to suit each other. The marketers must embrace and integrate all marketing mix variables to see where adaption to product, price, and promotion and so on is needed (Kotler & Keller 2009). In case the marketing mix is not in balance, the communications might not reach the right audience at the right time, or the customers cannot buy the product when they want to, as it is out of stock, or the product is priced out of their reach, or even worse, the product does not meet the customers' expectations. 1.2 Soft Drinks Soft drinks market is strong world over with two major companies as players; PepsiCo and Coca Cola that compete vigorously with each other. PepsiCo’s marketing mix has evolved over time, driven by the effects of