Originally Posted by Sundrop09

Well said Popologist. There is no doubt that there are certain consumers who buy solely based on price, however, the majority will buy the product that they normally drink no matter the price. Has anyone never seen 2lts at a c store for 1.99??To say that Coke would be hurt more by this than Costco is absurd.

$1.99 for a 2-liter is the normal price in NYC. Geeze, I didn't realize I was being ripped off! lol

Should we start posting guesses as to how long this will take before it's resolved?

I give it 60 days.

My two cents.
Just a few days before Thanksgiving, next week.
(Push comes to shove, Costo needs Coke products more than
Coke needs the Costo account. (I believe this point was made
in a prior post.)

Well I know people like to argue who drinks what in the customer base... but if I remember the report right from the past, it was something like 15% of your core consumer base drinks 75% of your product... and that was an insane figure to wrap my brain around... so that tells me there are a LOT of customers who will flip flop and buy the value of the week versus being that customer who will drive cross-town just to get the drink they want.

really it tells me there are so many more people who don't consume much regularly and the soda business has a lot more business it could get but just doesn't reach those people... although that depends how you look at it, the 75% of sales coming from those few, or the 25% left coming from so many different people...

Originally Posted by DrPepperYummy

Well I know people like to argue who drinks what in the customer base... but if I remember the report right from the past, it was something like 15% of your core consumer base drinks 75% of your product... and that was an insane figure to wrap my brain around... so that tells me there are a LOT of customers who will flip flop and buy the value of the week versus being that customer who will drive cross-town just to get the drink they want.

really it tells me there are so many more people who don't consume much regularly and the soda business has a lot more business it could get but just doesn't reach those people... although that depends how you look at it, the 75% of sales coming from those few, or the 25% left coming from so many different people...

I don't understand your reading of those numbers. If only 15% of your drinkers are drinking 75% of your product, then that suggests to me that that 15% REALLY like YOUR product... and, therefore, WILL drive across town to find it.

I'd also argue that brand loyalty to Coke and Pepsi is probably higher than just about any other product. It's almost like political parties--almost everyone has a side in the ongoing Coke-Pepsi battle.

I've heard that stores actually put soda on sale just to bring customers into the stores, hoping they'll buy other items. Clearly, Coke wants to be in Costco, but I think Costco needs Coke more.

Coke can tell Costco to _ _ _ _ up a rope. You shouldn't have to constantly discount everything to the point of no or low profit just to get people to buy it. Getting a 'value' should also mean paying a fair price.

My arguement still stands and being an individual who has actual statistical information on said statement isn't just me postulating but making an educated statement. I might be a little off on the bulk stores as I am not well acquainted but grocery stores like your supervalue chains or delhaize chains or walmarts or krogers etc etc DO bring in consumers with what is called a loss leader and that is 9 out of ten times NAME BRAND SODA! People go for the value of the week and name brand soda has the quality AND pricing to make it happen. You don't go to a damn movie theater and get generic soda or a sports complex and get the local grocery stores national brand do you? NO because there is so much affiliation with what people know is good. Most any consumer will tell you(being in the business first hand myself for 6 going on 7 years) that they get whats on sale that week!!! Yes you get your die harders but they don't account for the majority of what is bought. People do flip flop..yes but name brand sodas hold 97% of the market share as opposed to generic because people relate to them.

I think its more of a cultural thing then anything else..but many times the name brand sodas have sales that are better bargains than the national brands can even consider BUT on a consistent basis the generic brands are always cheaper..thats why they are there and HARDLY ever bought..even in this current economy. What you seem to misunderstand is that people who go to bulk stores are not going to just STOP and go elsewhere for their soda..they will pick that up elsewhere OR Pepsi/7up or whomever is there will pick up the slack..their losses will be minimal while Coke will lose out substantially. The soda market is so competitive that a consumer can find comfort in an equal product in another brand usually..because most of us know there is a taste difference however that is something people will overlook for price/convenience.

What statistical data? You've presented no evidence of anything... just your opinion... just like the rest of us.

Gosh...LOL
I could get started with my micro economic supply and demand
"elastic' curves. When fridge packs of Pepsi cost over $8, I will
most likely buy store brand soda.

i'm not sure if anybody in this thread actually shops at Costco
but if you think about it,
it doesn't mean that you are going to go to Costco any less just because they don't carry Coke products no?

They still have enough other reasons to entice you to go back there over and over again, so for those that says Costco needs Coke more than Coke needs costco, I would think again.

For any consumer or small business that needs Coke products, they don't go to Costco just because they want to buy Coke.

IF i were pespi or other companies i would
a) pounce on this opportunity pronto
b) accomodate costco as much as possible (costco tries to get the best deals not for their own benefit, but guess what, for their customers)

Costco makes most of their profit from selling memberships, and just because they can't get COKE products (remember for most other brands of beverages, minus Coca Cola) most of the brands are essentially complementary. They don't have Sprite, most likely people will buy Sierra Mist. They don't have Powerade, guess what, hello Gatorade.

Besides, I, as a Coke customer appreciate Costco's stand. Coke is expected to significantly raise their prices on alot of products (especially here in Canada) so i am really scared for it.