One of the most difficult challenges a marketer can face is when a product in their portfolio becomes indistinguishable from others like it and consumers buy it on price alone, or in other words, when it becomes a commodity.
Globalisation, increasingly open markets and trade, and the GFC are putting immense price pressures on goods especially in the FMCG category where differentiation is a challenge.
Globalisation, increasingly open markets and trade, and the GFC are putting immense price pressures on goods especially in the FMCG category where differentiation is a challenge.
a variety of "rituals" now define the way Americans make purchases, like frequently switching between brands to find the lowest price.
Price wars are good for consumers, but what can a Marketer do to combat such a trend? Innovate, bundle or segment, according to John Quelch, from the Harvard Business Review. Makes sense…
Innovation may be needed to meet changing consumer needs, or trends. Bundling in other products may just be the key to being able to ask a higher price. While segmenting the market and releasing different products for different groups (e.g. cheaper for those who are more price sensitive, and premium who are willing to pay a higher price) will also help to maintain an overall yield.
"Migration" of US shoppers threatens brands - Warc News - Warc
Innovation may be needed to meet changing consumer needs, or trends. Bundling in other products may just be the key to being able to ask a higher price. While segmenting the market and releasing different products for different groups (e.g. cheaper for those who are more price sensitive, and premium who are willing to pay a higher price) will also help to maintain an overall yield.
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