Wednesday, May 11, 2005

Juice v/s soft drinks- Exclusive or all?

In a regular "Sagar" restaurant in suburban Bangalore, as we sat over lunch, I asked the waiter for a Coke. He said, "No soft drinks, only juice".
I thought this was interesting. Not from the perspective of "one restaurant that is fighting the soft drink brigade". Far from it, because there are a few restaurants which dont serve soft drinks. I have been to restaurants which stock soft drinks but where waiters often tell the customer "Juices are healthier, why dont you have a juice Sir".
No prizes for guessing that they dont care about your health, but their margins. Most probably their juices give them better margins than selling softdrinks.

Why customers opt for softdrinks over juices is simply because they are not sure about the quality of the fruits, the hygiene, the taste and the water. With a soft drink, they can be just that little bit surer on these fronts. But what if, ceteris paribus, you were well known for your juices. Would you sell softdrinks too or would you not? Taking that to a larger perspective, what is better? Exclusive showrooms or showrooms which stock all brands?

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