What's with all the tiny soda cans? And other grocery store mysteries, solved.
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Analyzing the strategy of product differentiation through packaging sizes by soda companies
Through product differentiation, soda companies target different customer segments by using varied packaging sizes without creating new products. By offering different sized bottles and cans, soda companies like Coke could cater to diverse customer needs, like bulk purchases for big families or premium options for the rising middle class. This approach allowed for market segmentation and price discrimination, enabling companies to charge higher prices to customers willing to pay more. This packaging strategy was highly successful in Latin America and was later adopted by Coke worldwide as a top strategy for increasing sales, shifting the focus from brand and flavor competition to packaging sizes as a key differentiator.
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