2min snip

Planet Money cover image

What's with all the tiny soda cans? And other grocery store mysteries, solved.

Planet Money

NOTE

Analyzing the strategy of product differentiation through packaging sizes by soda companies

Product differentiation through packaging sizes allows soda companies like Coke to reach a wider customer base and increase sales. By simply changing the size of the bottles or cans, companies can target different customer segments without creating new products. In Latin America, Coke successfully implemented this strategy, offering different sizes for various customer groups such as big families, the middle class, and individuals on-the-go. This approach also enabled price discrimination, allowing the company to charge more to customers willing to pay premium prices. The success in Latin America led Coke to expand this strategy globally in the mid-2000s. While soda companies in the U.S. traditionally differentiated themselves based on brand and flavor, Coke shifted its focus to leveraging new package sizes as a key strategy to drive sales growth.

00:00

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode