Today we are looking at a business strategy of selling an existing product – especially one with a lot of competition but in a different – previously uncommon – configuration. Inspired by the “new” 3l cooldrink.
What is a 3l cooldrink
A 3l cooldrink is a cooldrink sold in a 3 liter bottle. As you will know that the largest size historically was 2 liter for carbonated drinks.
Niche Business
This is a niche business in that if you enter the 2l cooldrink business know, there are at least a half dozen players with scale. Jive, Kingsley, Twizza, Coca Cola & Sparletta, Pnp, Shoprite & Checkers, Woolies house brands. Since Jan van Riebeeck years the biggest size was usually 2 liters one could say that is OK as eventually the gas will go out if it is opened and closed for too long. But surely there is a niche business: parties, events, people addicted to cooldrink etc.
What else can be sold in a new size?
If you ask me this question I will throw you with a copy of Rich Dad Poor Dad, I have said countless and countless times again (Smaller Portions – South Africa’s Next Big Business, Start a Money Saving Business to Reduce the Cost of Living for South Africans), the deteriorating situation in South Africa, the increased cost of living will make cheaper portion sizes more attractive. And I don’t mean just existing sizes selling it for cheaper (that requires some scale) or decanting existing sizes into smaller portions I mean bringing down the overall cost.
Example:
2 liter cooldrink: R12 (R6 per liter)
3 liter cooldrink: R14 (R4.67 per liter)
For just R2 extra you get a whole liter. Plus the R350 grant guys will love you to bits they will now have more money to buy data to sit on Twitter the whole day.
Is it time for a 1 liter energy drink?
Auxiliary services
SA is always a great place to sell picks and shovels as it’s usually easier that running the main business. So if you thought, mmm…I know SolidWorks, I can design a 3l bottle, or I can make moulds or I have an injection moulding machine making dildos I can now make 3l bottles etc. That is the thinking here.