In today’s world of rising prices, companies have adapted the economical way of trying to do business. Offering products in smaller amounts such as sachets or lesser proportions may seem brilliant but do remember that companies are only offering products in these packages to make sure that their products are still within reach of the wise-spending consumer.
The trend today is for people to go for alternative products which cost less but provide the same satisfaction. But for the branded and known companies, they would re-engineer their products as far as packaging to downsize cost. While they are catered to people who can no longer afford the normal packages, there is no guarantee that they will still be bought.
Quality is something that has taken a lopsided downturn. While the consumers hate to admit it, the reality of it all is adjustments towards the normal lifestyle. Branded consumer goods such as rice, soap, shampoo or cooking oil are no longer within their reach. So rather than go for the superior brands, turning to the competitor or class B brands seems to be feasible to fit into the consumer’s budget.
Where does this leave the grade A brands? Well for sure, they will not lower price since the proper costing needs to be addressed. They can offer alternatives for the loyal patrons but that is no guarantee that they will retain their level of competency in the market. Remember that right now, quantity is still what people are looking for. But for brand loyalists, sacrificing quantity may be an alternative but may not necessary be the solution they are looking for.
Originally posted on July 24, 2008 @ 12:45 pm