What Do Your Customers Drink?

I like to have a Coke every now and then. Not the “Coke” that folks drink in the South. Ask for that and you could end up with a Pepsi. Not that there is anything wrong with Pepsi. It is just not my preference.

I used to drink pop, but that was when I lived in the Midwest. Now that I am in California, I drink soda. When I’m drinking soda, it is most often a Coke.

The Coca-Cola Company introduced mini (7-ounce) cans of soda about 15 years ago. For many years, I avoided buying them because of my practical side. Measured ounce for ounce, the minis cost more than the larger cans.

Why is the cost higher for less product?

One theory is that production costs are higher for the minis because the volume is quite low, especially when compared to the production volume for full-sized 12-ounce cans. So, Coca-Cola charges more for the higher expenditures.

Another theory is the cost is higher because consumers are willing to pay for it. It turns out Coca-Cola figured that out and margins are better for the minis. And, the market for minis is growing.

Of course, it is!

These mini cans of Coke are irrationally awesome, especially for us non-diet drinkers. There are less than 100 calories per can. We feel less bloated. We have less guilt. The minis conveniently fit into our on-the-go lifestyles.

Plus, the minis help us with portion control. No one over the age of 25 can drink two cans of Coke—even the minis—in public. (It’s a rule. Look it up.) We take in fewer calories and less sugar. We get a sweet treat without consuming too much.

The Coca-Cola Company understands its mini-loving drinkers and it is profiting from that knowledge.

As a marketer, the thing that amazes me most about business leaders is how little they know about their customers. I am often asked “What marketing trend is most important right now?”

The trend that is the most important for your business is the one that is influencing your customers’ habits.

If customers change the way they consume your product, your business should follow that trend. For instance, Netflix will ship its last red DVD envelopes in September. (Seems a bit late to me but surely it is time!)

If customers change the way they communicate, your business should follow that trend. I recently had an exchange with an airline customer service agent on WhatsApp. I changed a flight over text messages while I was in route to an event.

If customers want more health-conscious, plant-based, gluten-free or low-calorie options, a food company must invest in products that meet the need. By doing so, the business can improve the customer experience, increase engagement, and ultimately drive sales.

So, before you invest in the next trend, consider how it aligns with what your customer desires. You have got to know what your customers want to drink.

#marketing #marketingtrends #marketingstrategy

Katherine Hunter-Blyden?is a CMO Partner at TechCXO. She is a senior marketing executive with P&L management experience. As a full-stack marketer, Katherine's experience includes brand strategy, advertising, digital marketing, sales promotion, product management, pricing and market research. Katherine helps businesses meet their goals with data-driven, quantifiable results.