It costs the soft drink Industry over $100 million a year for thefts committed involving vending machines.
*actual Coke vending robots!
Yet vending machines still exist for one simple reason. This is still a profitable business regardless of the theft.
So often in startup land we here people pointing out the gaps and potential issues in any business model we propose. The fact is no business model is perfect. Every business has gaps and potential issues which will impact profitability. There is always leakage, there is always some evaporation. What we need to focus on is the net result and understand if we can still make a profit regardless of the model imperfections.
All cultures differ in terms of what is acceptable commercial behaviour. It’s become clear to me that the US has a stronger lassie-fare attitude when it comes to consumer goods and product claims.
Coke with Vitamins!
The government allows this folly, and then wonders why there is an obesity crisis. More like an Intelligence crisis.
Startups – Don’t just make stuff people will buy, make stuff you can be proud.
Many including startup blog predicted the death of Mother Energy Drink before it was launched. By the way this was Coca Cola Australia’s 4th attempt to get a share of the energy soft drink market. Other attempts included Lift Plus, Burn and Sprite recharge. All of which bombed.
As predicted ‘Mother’ should have been called ‘Dog’. So they’ve burried the old stock on hand and Coke have re-launched Mother with an all new fix all flavour. Which has lead to the following badvertising:
Memo to Coke Marketing team: Taste has nothing to do with it. Half of Red Bull’s consumers even admit they don’t like the taste. Consumers know the same people developed the flavour profile of this launch too, and yes they know it’s made by Coke.
The energy space is already occupied in the minds of consumers. The market is already dominated by two powerful brands with strong identities & distribution depth. Save your money on advertising and put it towards buying Red Bull gloablly or V for the Asia Pacific market – because this category is already game set match. The two horse race which all categories become has been run and won.
One more thing – this spot is so contrived, your target market would be laughing at you.
Kind regards – Startup Blog.
Note to start ups – if you’re launching a me too, without a price, distribution or technology advantage – best to re-think the launch plans. If Coke can’t do it – why can you?