Thursday, 22 October 2009

Pack size reductions and the consumer, the short-change perception….

Recent press reports re pack-size reductions whilst maintaining shelf-prices raises several issues:
  • By the time mainstream media pick up the problem the damage has been done…
  • Consumers' criticise-praise ratio remains 10-1, when 'telling a friend'
  • Never underestimate the consumer's ability to spot a downsize of a regular purchase
  • 'Healthy eating' Telling them that content-reduction without price reduction is in the interest of healthier eating insults the intelligence of a savvy consumer, and can alienate the junk-food shopper...
  • Consumer need: Telling the consumer that 'content reduction without price reduction' meets their need ignores the fact that a given-quantity-for-a-given-price represents the consumer's view of 'value for money'. Anything less for the same price, especially without explanation, can represent 'short-changing'...
  • Consumers do not distinguish between imported vs. locally produced goods, unless importation is offered as a cause of higher prices...
  • Perception, rather than fact remains a major driver of purchasing, especially in FMCG marketing
  • When an explanation is required (like from day one), why not refer to the fact that 4 years of rising costs without a shelf-price increase has forced suppliers to reduce pack size to maintain shelf prices?
Cynical? Then think what the consumer has gone through in the past couple of years, from all sides……

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