A few years ago, juice company Tropicana, owned by PepsiCo, introduced a lower-calorie, lower sugar line of drinks called “Trop-50”. The product has been successful as consumers are increasingly looking for healthier food products for themselves and their children. But there is a lesson in Trop-50 for all businesses.
Orange-flavored Trop-50 is mostly full strength orange juice mixed with water. It has other artificial sweeteners and ingredients, but at the core it is diluted orange juice. And by being diluted orange juice, I expect that it is cheaper to produce than regular juice because a half bottle of water must be cheaper than a half bottle of juice. Being marketed as a healthy-choice, pro-consumer product, though, allows Tropicana to charge a premium for the product. This inspires an interesting question that all companies should challenge themselves to:
Can we make a product that will cost us less to produce, but allows us to charge more for it because customers like it better?
This is a fascinating idea and may seem impossible, but it is exactly what Trop-50 does. Think about your business – is there a Trop-50 application you can conceive?