Tag Archives: consumer behavior

by | Wednesday, April 3, 2024 · 7:15 am

Coca-Cola Introduces New Spiced Flavor Drink

Coca-Cola has been selling its soda for more than 132 years. That’s quite a successful run, but the company knows it cannot rest with regards to product development. New products and flavors are needed in order to keep up with changing consumer tastes.

It’s been three years since Coca-Cola launched a new, permanent flavor. That’s about to change with the launch of “Coca-Cola Spiced” – a new drink with flavors of raspberry and spice that comes in both regular and zero sugar versions.

The company stated that the flavor is its “boldest tasting brand innovation” and provides an “uplifting taste experience unlike any other.” Coca-Cola also stated that the new flavor was developed in only seven weeks (it usually takes 12 months to develop a new product). The flavor is part of a product line of Coca-Cola drinks including classic Coke, Coke Vanilla, and Cherry Vanilla.

Why a new flavor? Consumers are on the look-out for something new to drink, and it’s not always a soda they want. There has been an increase in sales of seltzer water and other flavored drinks. The new, spicy drink is in response to changing American tastes for spicier snacks, and also is a way to get younger drinkers to adopt the brand.

According to Beverage Digest, the growth in flavored waters and juices has grown by roughly 3%, while traditional Coca-Cola sodas have grown only 1%. Using data from its Freestyle drink machines, the company noted that raspberry flavor was selected more than five million times in 2020.

While Coca-Cola has sold a number of short-term creations such as Coca-Cola K-Wave Zero Sugar, Coca-Cola Happy Tears Zero Sugar, Marshmello’s Limited Edition Coca-Cola Zero Sugar, and more, none have been permanent additions.

What is your opinion of the new flavor?

Group Activities and Discussion Questions:

  1. Instructors: Bring the new Coca-Cola drink to class for students to sample.
  2. Have students do a taste test about the flavor. What are their opinions?
  3. Show Coca-Cola’s website: https://www.coca-cola.com/us/en/offerings/coca-cola-spiced
  4. Show video of the new flavor launch: https://youtu.be/TFRwYvOFWa4?si=BLuLHBX2jGSD9kmU
  5. Discuss how to develop a product positioning map. Review key aspects of mapping, including determining the axis labels for positioning.
  6. Review Coca-Cola Spiced. What products are competitors?
  7. Divide students into teams and have team develop a positioning map for Coca-Cola Spiced.
  8. Debrief the exercise.

Source: Durbin, D. (7 February 2024). Coke introduces new raspberry flavored ‘Coca-Cola Spiced’. Associated Press; Shafiq, S. (19 February 2024). ‘Coke with a twist’” What is Coca-Cola Spiced and when can you try it? USA Today; Valinksky, J. (7 February 2024). Coke’s first new permanent flavor in years adds a spicy twist. CNN Business; other news sources.

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by | Saturday, March 30, 2024 · 12:14 am

How Important is Packaging?

There are many different factors that can influence consumers’ product selection. One of the most important is the way a product is packaged and labeled – the way a product is packaged/labeled immediately provides information to the buyer. Some packaging is very complex and busy, while others may be simpler in nature. A recent study conducted by Texas Christian University examined the trend towards minimalist packaging and how design influences consumer perceptions about products at grocery stores.

The results of the study showed that minimalistic packaging (fewer colors, word, and neutral boxes) leads consumers to believe that those products contain fewer ingredients, and thus are more pure. However, the reverse is true when considering generic or store brands. For those products, consumers seem to prefer bold shapes and fancy text, perhaps to convince them that the product is valuable.

 Some of the necessary ingredients to successful labeling and packaging design are:

  • Category or product type
  • Brand
  • Variant
  • Functional benefits
  • Reasons-to-believe
  • Emotional promise or benefit
  • Call-to-action
  • Content details (such as size, weight, etc.)

In addition, the packaging must protect the product and be easy to handle, transport, and store. If any of these factors are lacking, consumers may choose to buy an alternative product.

Remember, the main goal of packaging is to make the product visible to consumers, communicate the brand and benefits, and persuade the consumer to buy it.

What package is most effective?  

Group Activities and Discussion Questions:

  1. Instructors: Bring several packaged items to class for students to examine.
  2. Have students look in their bags and backpacks and pull out any item that is in a package/wrapper.
  3. What are their impressions of the package? How does it influence the purchase?
  4. Show video about tips for packaging design: https://youtu.be/qenDKgHL3aA?si=c6tu53SKLywX27Iy
  5. Show blog article about best product packaging examples: https://filestage.io/blog/product-packaging/
  6. Have students work in teams and go to a local grocery/convenience store. Have then identify several products in the same category (ex: soups, juices) and examine how the packages attract consumers.
  7. What changes could be made?
  8. In teams, have students select a common product and design new packaging for it.
  9. What are key considerations for the packaging?
  10. To access the original research study done by Texas Christian University: https://journals.sagepub.com/doi/10.1177/00222429231192049
  11. Consider assigning a project to replicate the study and examine findings.

Source:  Mitchell, H. (26 January 2024). When consumers prefer simple packaging – and when they don’t. Wall Street Journal.

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by | Wednesday, January 31, 2024 · 8:01 am

Not An Average Cup of Coffee

If you love coffee, this article is for you. Heck, even if you don’t love coffee, this information may interest you.

How much did you pay for your last cup of coffee? How much are you willing to pay for a good cup of coffee? A great cup of coffee? An extraordinary cup of coffee? How much would you pay for coffee with beans that were fermented in elephant poop?

Yes, you read that correctly. And the coffee from elephant poop is roughly $150 for two-servings of the brew, or $1,500 for a pound of beans. That is, if you can find the coffee as it has a very limited supply; production is only about 500 pounds per year.

How does one get such coffee? It starts with captive Asian elephants that consume a mix of coffee and fruit. Their stomachs ferment the mixture, which eliminates its bitterness. 

This isn’t the only type of coffee made from animal poop. There is also bird-poop coffee as well as monkey-chewed coffee beans. Plus, a ‘naturally refined’ coffee from the poop of a type of cat called civets. (It’s important to note that some of these coffees are produced from animals that are not well cared-for in captivity.)

Here is a list of a few of the most expensive coffees in the world:

  1. Black Ivory – $1,500 per pound (fermented by elephants)
  2. Ospina Gran Café – $1,400 per pound
  3. Kopi Luwak – $600 per pound (fermented by civets)
  4. El Injerto Peaberry – $500 per pound
  5. Esmeralda Geisha – $350 per pound

Shall we go get a cup of Joe?

Group Activities and Discussion Questions:  

  1. Poll students: How much do they usually pay for a cup of coffee? Now, how much would they pay for great coffee, and for unique coffee?
  2. This is a great topic for pricing. Discuss the six steps for pricing (determining objectives, estimating demand, determining cost/profit relationships, select price level, set list price, and make adjustments).
  3. Discuss the various pricing models in class: demand-oriented, cost-oriented, profit-oriented, and competition-oriented.
  4. For these products, divide students into groups and have each group work on any/all of the six steps.
  5. Show the Black Ivory coffee site: https://blackivorycoffee.com/
  6. Ospina Gran Café: https://www.ospinacoffee.com/products/index.html
  7. Kopi Luwak: https://www.kayakopi.com/
  8. Divide students into teams.
  9. Have each team select a unique coffee and define the target market.
  10. Teams should prepare a marketing plan for product and market.
  11. What will they emphasize?

Source:  Bradley, M. (6 November 2023). Not your average cup of Joe: The 11 most expensive coffees. Luxe.digital; Maron, D. (12 December 2023). $1,500 for ‘naturally refined’ coffee? Here’s what that phrase really means. National Geographic.

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