Thread by @ObafemiFawibe

I have a hypothesis for Bigi Cola's disruption of the beverage market.
I shall be exploring three major factors, Price, Volume and Convenience

CAVEAT: This is purely based on personal observations of the industry.

Thread >>>

https://twitter.com/cchukudebelu/status/1143867562876383232

Price and Volume
Around 2014- 2015, Coca-Cola launched the share a coke campaign with different names on the Pet bottle. it was viral. Consumers accepted it. 1/

Pepsico also joined the fray, by introducing the 60 cl Pet bottle (Long Throat) for the same price of N100.

2/

What these beverage companies told the consumers, then was that they could have more for less. That is 60cl for N100.

3/

I began to notice Bigi cola during that period, they joined the race of beverage makers offering more for less. As a new entrant in the beverage market, the market naturally resisted Bigi Cola.
4/

Due to brand loyalty and preference. Why would I buy Bigi Cola at N100 when Coke and Pepsi were retailing at the same price?
5/

Bigi cola must have been observing the market trends. Around the same time, BIG cola, offered the same 60cl for N100. So the market was flooded with options and alternatives for consumers at the same price. It was a level playing ground.
Consumers stayed winning
6/

After a successful run of the Share a Coke campaign, Coca-cola, probably in a bid to maintain its authority in the beverage market, marked up their retail prices from N100 to 150. Pepsi-Cola began to retail 60cl Pet Bottle (Long Throat) at 120.
7/

Coca-cola also, introduced the 35cl pet bottle, retailing at N100. I think Coke's move was to gradually phase out RGB's.
The 50cl glass bottle retailed at N70, 35cl at N50. Pepsico also followed suit with all their products following the same trend, 35cl at 50, 50cl at N70/80.
8/

With the increased prices, the market reacted accordingly and consumers fell to Pepsico 60cl at 120 and 50cl at N100. They also began to really notice Bigi Cola and BIG Cola at 100.
9/

Yes, I want to have a Cola drink, but why should I buy 35cl for 100 while there are options for 60cl at 100? The 35 cl will not quench my thirst.
10/

Immediately the price and volume frenzy relapsed, Bigi Cola maintained its price at 100 for 60cl. This was an amazing move for the company. It was how the price and volume factor favored Bigi Cola.
11/

Pepsico must have realized this, so they reverted their 60cl Pet bottle to retail at N100 instead of N120. Now it became a dilemma for consumers. Why should the same beverage brand (Pepsico) have different volumes at the same price?
12/

So those who wanted to drink affordable cola embraced Bigi Cola.
We have examined the price and volume factors. Now let's look at something equally important, Convenience.
Imagine on a fierce sunny day... 13/

... you decide to take a drink. Your budget for a cola drink is N100. And you have the following options
Coca-cola, (PB) 60cl @ N150, 35cl @ N100. (RGB) 50cl @ N80, 35cl @ N50.
Pepsico (PB) 50cl @ N100, 60cl @ N120. RGB 50cl @ N70, 35cl @ N50
BigiCola @ N100.
14/

Which would you choose?
15/

I know some people will argue in favor of brand loyalty and other things like taste etc. But I'm not talking about you, the elites. I'm talking about the regular, everyday consumer. Who just wants to quench his thirst with a soda drink.

16/

Convenience.
With Regular Glass Bottle (RGB), you had to present a replacement bottle to the seller. you can not take it away even if you are in a hurry. it ties you down to where you made the purchase until you finish your drink.
17/

So consumers would opt for the 35cl RGB of their preferred brand (Coke & Pepsi). In order not to waste time and money by not finishing the 50cl bottle.
18/

With the Pet Bottle, you just buy your drink and move immediately. Consumers didn't have to carry around empty replacement bottles in order to drink a soda as time is very important to everyone....
19/

So going by my earlier question, a lot of people would go for Pet bottles. Even if they are unable to finish it at once, they can keep it till later.
20/

Now Bigi entered the beverage market with ordinary PET bottles, no RGB. The regular beverage consumer would love to leave with his drink if it is affordable. That is convenience.
So the consumers began to opt for Bigi cola 60cl at N100, and his freedom. 21/

Meanwhile, during the price hike, @ritefoodsng focused its marketing of @getbigi efforts on the villages and hard to reach places.

22/

They ensured their products were available, even in remote places, where Coke and Pepsi were scarce. For example in Oyo state, for every Coca-Cola or Pepsi sale you make in areas like Kishi, Iseyin, Tede, Ago are, Itesiwaju, Iwajowa, etc you would have made 10 Bigi sales.
23/

So while Coke and Pepsi were slugging it out in the cities, BigiCola was flooding the hinterlands. And to shock you, in most of these places, @getbigi Cola 60cl would mostly retail for N150.
24/

It is either that sales were going south for coca cola, or they just wanted to maintain market share. They began to really push their coke zero, at N50 for 35cl, 70 for 50cl, and Coke zero PB at 100. Sales began to look like it would pick up, but it didn't.
25/

You know why?
Because people wanted original coke at N100. Quite a lot of people do not like the Coke zero, because of its after taste.
26/

It reminds me of the Cola war and blind taste test between Coca-cola and Pepsico. you can read that here >>
wideopeneats.com/difference-cok…
en.wikipedia.org/wiki/Cola_wars
en.wikipedia.org/wiki/Blind_tas…
27/

So what did coke do? They introduced a fighter brand with Limca Cola, alongside Limca lime and Limca Bitter lemon all at N100. In a bid to rival @getbigi bitter lemon.
28/

Recently, both coca cola and Pepsi, reduced the price of their 35cl RGBs to N50. There must be a reason.
29/

But as it stands, @getbigi Cola keeps gaining more market share and revenue. Bigi is fast becoming a household name.
They seem to have achieved this by making a new volume (60cl) the standard, at the same price (N100) with convenience. 30/

New entrants into the beverage market will always launch with Pet Bottles. No matter how disastrous PET bottles are, I can say, the era of Regular Glass Bottles in the beverage industry is coming to an end.
The end.
/31

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