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

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.