Reengineered Price/Package Architecture
Price/package architecture increases value for customers, enhances brand] equity, attracts new consumers, and improves the balance between price and cost.
and new take-home 2-liter contour bottles have enhanced our ability to price products in ways that reflect the value of our brands.
Combined with our efforts to strengthen execution and improve service to customers, this strategy has enhanced our ability to capture the value of the outstanding brands we bring to the marketplace. It also increases value for customers, strengthens brand equity, attracts new consumers, and improves the balance between price and cost. In 2010, Europe will enhance our approach in this area, working to help customers tailor their operations for improved customer service as we build on three consecutive years of balanced growth.
Our price/package efforts were a primary factor in enabling North America to achieve consistent margin expansion throughout the year. Another contributing element was the incidence pricing model in North America implemented in conjunction with The Coca-Cola Company in 2009. This model has strengthened the operating synergy of our companies in the marketplace. We have mutually agreed to continue an incidence model in 2010.
2. In 2010, North America will complete the rollout of the 2-liter contour package, a key component of its price/package initiatives. The package generates a positive volume and value impact.