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Price Pack Architecture Helps CPGs Find Optimum, Profitable, Product Sizes

September 26, 2016: 12:00 AM EST
The emergence of pioneering research known as price pack architecture (PPA) has allowed the development of profitable – and popular – food packaging innovations such as 7.5-oz. Coca-Cola “mini-cans.” Coke has experienced a steady downturn in soda sales, so PPA’s findings have been more than welcomed. PPA combines consumer insights, competitive dynamics, and a company’s capabilities to identify ideas and analyze test results. Coca-Cola found that consumers not only liked compact serving sizes (i.e., 7.5-oz mini cans and 8-oz glass bottles), they also didn’t mind paying more per ounce. Annual revenues for Coke’s standard sizes fell one to two percent from 2011-15. But sales of the mini sizes soared 10 percent to 15 percent through the period.
Manny Picciola et al., "The New World of Mini Consumer Packaged Goods", Harvard Business Review, September 26, 2016, © Harvard Business School Publishing
Coca-Cola Company
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