Beverages are more important in today's drug stores than ever before. They are proven traffic drivers, boost units per transaction and provide profit punch. Expanding consumer demand for these products hasn't been lost on operators as they build new stores or remodel existing ones.
While beverages are centerpieces of shopping missions, the category is changing, with myriad options and consumer desires requiring retailers to work with suppliers to navigate the new rules. Some drug stores even compare the category to such departments as fashion or cosmetics, where it is paramount to keep up with trends. (Interestingly, a manufacturer of trendy nail lacquers recently named a collection after Coca-Cola.)
There are thousands of scenarios driving shoppers to your stores for the beverages they want, when they want them. With more than 750 beverage options – of which 200 are low- and no-calorie – The Coca-Cola Company is uniquely positioned to provide shoppers with diverse choices.
Yet a winning beverage strategy demands research into shopper dynamics. With its rich history and extensive consumer research, Coca-Cola understands shoppers and can help retailers establish a winning beverage category strategy.
We know consumers have different need-states and occasions that translate into shopping missions when on the prowl for a beverage. For example, commuters consuming breakfast on the go need ease and convenience with smaller single-serve, immediate-consumption packages, while other shoppers' purchasing decisions may be driven by varying factors.
Identifying need-states that lead to different shopping missions is essential. You may want to consider:
Your answers can help guide formats, assortments, marketing programs and technology strategies. That's why The Coca-Cola Company works with retail partners to determine shopper behaviors and anticipate them — whether that means offering promotions for those stocking up, on a fill-in trip or wanting to grab a snack and drink on the way to their next destination.
Coca-Cola not only works with retailers to choose the right brands, packages and promotions, but also every new product launch addresses beverage trends and occasions. What's notable is that most introductions are not merely brand extensions, but basket-builders that are add-on items. Other launches bring new customers into drug stores because they can now buy products that fit their lifestyles.
Here's a look at some traditional and recently launched brands from the Company that are well-positioned for drug store shoppers:
Innovation isn't only in products, but in packaging, too. Mini-sleek packages offer smaller portions of shoppers' favorite brands, in 90- and zero-calorie servings. The 1.25-liter package gives shoppers with smaller households an opportunity to purchase brands in a convenient and portable size — at $1 price-point. Both these packages have been successful revenue and profit additions to our drug channel customers' portfolio of offerings.