The reasons why Tianfu Coke is so expensive are as follows:

1. The product cost is high. As we all know, Tianfu Cola uses its own Chinese herbal formula, and the production process is different. Does this cause an increase in the overall product cost? Even if there is an increase, the amortized cost of goods under this assembly line production model is actually not very high.

In addition, in terms of marketing, the cost invested by Tianfu Cola should not be on the same order of magnitude as other competitors, especially Pepsi and Coca-Cola.

2. Differentiated routes. The Chinese herbal formula of Tianfu Coke should be a clear sign that it is different from other colas. However, the newly launched Tianfu Coke can no longer reproduce the scenery of the past. According to consumer feedback, the current Tianfu Coke is sweeter than the original, and the taste of Chinese herbal medicine is also weaker.

So, the label of this Chinese herbal formula is hardly a differentiated expression. Therefore, if differentiation is achieved in terms of price, it may leave a deep impression on consumers. In the market, many expensive products of the same type have better sales, and this may be the source of confidence that Tianfu Coke dares to set such a price.

3. Competitor selection. Is there a possibility that what Tianfu Cola wants to challenge is not ordinary Pepsi and Coca-Cola at all, but other more segmented carbonated drink markets? Even Pepsi and Coke have launched many different types of carbonated drinks, including many high-priced products, which have a relatively small audience.

Tianfu Cola:

Chongqing Tianfu Cola Group Co., Ltd. was one of the eight major beverage factories in China in the 1980s. It formed a joint venture with PepsiCo in 1994 and Chongqing Tianfu Cola Group Co., Ltd. started in 2009. To "reclaim" the brand from PepsiCo, Tianfu Cola took back the formula, production process and brand of Tianfu Cola from PepsiCo through judicial recovery and other channels in 2010, and regained the trademark in 2013.