It can be fascinating what you can see when you stop for a coffee on the way home. As the cups on the counter show, at this chain, you can get five sizes of coffee and three sizes of energy drinks.
The availability of these sizes is that years ago, there was only one size of coffee cup. In any café or coffee shop, the size available was the one we now consider small.
Research we undertook found that the small size of the coffee cups frustrated sit-down customers in their coffee shops. Not because of unsatisfied thirst, but because they wanted a rest break and the coffee in the small cup would be finished too quickly, causing them to feel awkward sitting at a table with an empty cup.
This insight allowed us to recommend three sizes of cups to the client. These were the then current size (now relabeled small), a new mid-size called regular, and a larger size named large. That large cup was often too big to be desired but put the new regular size cup as the appropriate one to order.
The client introduced these three sizes and markedly increased their revenue. This was mostly from sales of the new regular size cup. The idea was taken up by the other coffee chains and cafés – and now has been extended and expanded into other types of beverage containers too.
This example indicates how effectively good market research can generate business building insights. If you’d like to know more, please contact Philip Derham on 0414 543 765, or by email at derhamp@derhamresearch.com.au – or use the form on our https://www.derhamresearch.com.au/lets-get-started-form/ page.
