Monday, October 21, 2013

Big data + Smart vending machines = Temp. sensitive soda pricing


Shoppers Conference

Following is a case study presented in the recently concluded Shopper’s Marketing Expo, Chicago, Oct 8-10.

Smart Vending Machines

Once the temperature hits 36 degrees Celsius in Seville, Spain, or 97 degrees Fahrenheit, you can buy Coca Cola Co.’s Limón & Nada from a vending machine for about €1, half the regular price of €2.

The vending machine takes the real-time temperature and gradually lowers the price of the soda lemon water as the heat rises to bring in thirsty customers.


"Hot" Results

Limón & Nada now holds almost 30 percent of Spain’s lemonade market just five years after the initial launch of the product in the region. It’s seen a 33 percent increase in sales of the beverage in theme parks where the machines were introduced.

How did they come up with this strategy?

Coke (which owns Limón & Nada) came up with this strategy based on their ability to collect and analyze big data from various social media channels. And they were able to come up with a winning strategy to capture the Spanish lemonade market.

Further reading
http://news.medill.northwestern.edu website