Tag Archives: product differentiation

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 | Thursday, December 28, 2023 · 7:57 am

McDonald’s has a New Restaurant Concept Inspired by Aliens!

It’s widely acknowledged that McDonald’s is a top global brand with thousands of restaurants around the world. But now the company seem to be focused on additional places not just on the globe, but in the universe. It’s launching a new concept cafe called CosMc’s (get it? Cosmic?) that will be in a much smaller space and four drive-through lanes for to-go foods only.

CosMc’s has a much smaller footprint than the traditional McDonald’s restaurant and does not have a dining area, but does have four drive-through lanes and a menu heavily focused on drinks and snack sandwiches. No burgers and fries in sight.

The first CosMc’s location recently opened outside of Chicago. According to a  McDonald’s news release “CosMc’s menu is rooted in beverage exploration, with bold and unexpected flavor combinations…”

The menu features unique iced drinks with out-of-this-world flavor, and foods such as Egg McMuffin, small sandwiches, ice cream, and snacks. CosMc’s is focusing on the growing trend of consumers who want take-out food, not dine-in. According to market research firm Circana, only 14% of fast-food meals are eaten in-stores, with the rest going to take-out foods. And, when it comes to beverages, Starbucks estimated that roughly 75% of its U.S. beverage sales are from cold drinks.

CosMc’s claims to have served millions of aliens, but that might just be marketing hype (really?)

We’re ready to blast into outer space, iced drink in hand!

(Note – CosMc’s is named for an orange alien mascot shown in past McDonald’s ads who tried to transport McDonald’s food back to his home planet.)

Group Activities and Discussion Questions:

  1. Show video about CosMc’s: https://youtu.be/sGWGShv_UVA?si=1NPI4reQ6fxrcxsw
  2. Show CosMc’s website: https://cosmcs.com/
  3. What company is CosMc’s competing with using this menu?
  4. Discuss competition: Who are the direct competitors for this product? Indirect competitors?
  5. Divide students into teams. Have each team compare CosMc’s menu with a competitive menu. What are the points of difference (what makes CosMc’s menu different from competition)?
  6. Where can CosMc’s excel? Where can it fall short?

Source: Haddon, H. (6 December 2023). McDonald’s to launch CosMc’s, an alien-inspired restaurant serving slushes to-go. Wall Street Journal.

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