How much are we willing to pay for a cup of coffee?
Let’s take a look at the price comparison for a cup of coffee
- A cup of coffee at a local stall may still cost around RM2.00
- A cup of coffee at a mamak shop averages around RM2.80
- A cup of coffee at a kopitiam typically costs around RM3.50
- A cup of coffee at a trendy bistro might average around RM5.00
- A cup of coffee at a golf club averages around RM8.00
- A cup of coffee at a hotel can go up to not less than RM15.00
- A cup of coffee at a hipster café, with various coffee options, can reach up to RM20.00
Buying coffee powder and brewing it at home may cost less than RM1 per cup.
The question is, are we paying that price for a cup of coffee, or are we willing to pay that price for the added value that comes with that cup of coffee?
In 2016, Red Bull energy drink had been in the market for over 25 years, and had a global revenue of nearly USD 7 billion. This amount was equivalent to selling around 5.2 billion cans of the drink in over 165 countries. The founders of Red Bull are among the wealthiest individuals in their respective countries, Austria and Thailand.
What is the key to Red Bull’s success?
Researchers found that Red Bull invests between 30% to 40% of their sales revenue in marketing. Roughly estimated, they spend around RM11 billion on marketing activities. In contrast, other brands typically allocate only an average of 10% for the same purpose.
What is the connection between coffee, Red Bull, and your business?
The answer is “marketing strategy.”
The story behind the cup of coffee and the energy drink is to show that the price we pay for something is not just the monetary value attached to the product but whether we are paying for the beverage itself or for the additional value it brings.
As you contemplate your own business ventures, remember that the connection between different products/services and success lies not only in the quality of the product but also in the strategic investment in effective marketing.
In the realm of business, a well-crafted marketing strategy can elevate a simple cup of coffee into a global phenomenon. So, as you navigate the choices for your business, you may want to consider the power of marketing as a catalyst for growth and success.