With inflation falling, brands that have used clever pricing to drive profits will need more restraint to avoid new entrants undercutting them at lower margins says Mark Ritson in his column this week https://lnkd.in/eZjmR5_r
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Raising prices alone won't suffice for consumer product companies, as the industry's recent growth is driven mainly by price hikes, not increased sales volume. This approach leads consumers to opt for more affordable alternatives, impacting volume growth negatively. With changing consumer behaviors and the challenges of inflation, a broader strategic overhaul is essential for sustained and profitable growth, emphasizing the limitations of relying solely on higher prices. Swipe for more details. Read more: https://lnkd.in/d85n8TVf Bain & Company #Consumer #markets #inflation #increasingprices #products #consumerproducts
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Consumers are grappling with the effects of inflation, while manufacturers seem to be thriving. This discrepancy raises questions about how producers maintain profits amid consumer struggles. Here are several factors which I believe are contributing to this situation as producers have acted to deliver: ✅ Supply chain efficiency: Investments in technology and automation have improved productivity and reduced labor costs. ✅ Product differentiation and brand loyalty: Some manufacturers can adjust prices upwards without losing market share, thanks to strong brand loyalty and unique product offerings. ✅ Design to value (DTV): Manufacturers are re-engineering products to achieve efficiencies while maintaining consumer satisfaction. ✅ Investments in research and development (R&D): Continuous innovation and product development are yielding higher-margin products. ✅ Budget cuts: Elimination of unnecessary spending, such as travel bans and hiring freezes, has helped maintain profitability. Other factors to note, and which play into this, include market power, raw material costs, government policies, consumer behavior, and global economic conditions. So as consumers navigate inflationary pressures, it's evident that while manufacturers can sustain margins and profits, the landscape is complex. Understanding these multifaceted dynamics is essential for businesses and consumers alike. It’s complex! Join the conversation on LinkedIn @HunterShoreGroup. #ConsumerInflation #SupplyChainEfficiency #EconomicAnalysis #Inflation #BusinessInsights #Innovation
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In the face of rising costs and inflation, many companies are resorting to 'skimpflation,' or 'shrinkflation,' a tactic where product quantities are reduced while prices remain the same. This strategy is creating a harsh reality for consumers who are essentially paying more for less. From food to household goods, we're getting less bang for our buck, straining our budgets even more. The deceptive tactics employed make it even trickier for consumers to notice, with manufacturers cleverly introducing 'larger' versions of shrunken products or using terms like "party size" to create an illusion of value. In this inflationary era, it is crucial for consumers to stay vigilant, compare prices, and consider alternatives to circumvent skimpflation. As professionals, we must champion for transparency and fair value in the marketplace. Share your thoughts on skimpflation below. Have you noticed it in your day-to-day purchases? Original article: https://lnkd.in/ePNS4BHR
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For CPGs getting your your customer segments to brand portfolio matched, sku mix and pricing architecture right (and not then distorting that with bad promo) is one half of the equation… The other side is getting trade terms right that reward a retailer’s performance. I get to apply advanced analytics for CPGs for NRM, and the mirror for retailerss driving category management. Hundreds of projects have shown I know how to drive a win/ win optimal answer. Generally - major SKU rat, stretched price ladders, a brand portfolio and leveraged brand that matches consumer segments, promo other than money-off, terms that reward retailer performance… Planning for times after the inflationary price bulge creates margin maximisation opportunities for CPG and Retail
Navigating the complexities of the inflationary cycle comes with a great deal of challenges for Consumer Goods companies. We’ve identified the key portfolio, range and pricing levers available to drive value. Read our full insight to find out which best applies to your company: bit.ly/3Y5fyoL #consumergoods #inflation
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Navigating the complexities of the inflationary cycle comes with a great deal of challenges for Consumer Goods companies. We’ve identified the key portfolio, range and pricing levers available to drive value. Read our full insight to find out which best applies to your company: bit.ly/3Y5fyoL #consumergoods #inflation
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While month-over-month flat, the May Consumer Price Index saw prices for all goods increase 3.3% compared to last year. Learn more about what’s impacting the market by subscribing to the CORE Report: https://lnkd.in/eRuUH3im #corereport #core #consumerpriceindex #majesticsteelusa #majesticsteel
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As investors look to the new year, the big question is - how will inflationary pressure be going forward? With inflation affecting all areas, according to our poll, consumers feel it the highest in the grocery store. While we believe that the negative view on drug producers and consumer stocks is exaggerated, we remain constructive on the long-term prospects of our Healthy Living theme. ➡ More market insights in our Research Weekly: http://ow.ly/fJwH104Z6cb #MarketOutlook
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As investors look to the new year, the big question is - how will inflationary pressure be going forward? With inflation affecting all areas, according to our poll, consumers feel it the highest in the grocery store. While we believe that the negative view on drug producers and consumer stocks is exaggerated, we remain constructive on the long-term prospects of our Healthy Living theme. ➡ More market insights in our Research Weekly: http://ow.ly/fJwH104Z6cb #MarketOutlook
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Executive Director, Senior Relationship Manager at Bank Julius Baer, Private Banking Germany/Austria International
As investors look to the new year, the big question is - how will inflationary pressure be going forward? With inflation affecting all areas, according to our poll, consumers feel it the highest in the grocery store. While we believe that the negative view on drug producers and consumer stocks is exaggerated, we remain constructive on the long-term prospects of our Healthy Living theme. ➡ More market insights in our Research Weekly: http://ow.ly/fJwH104Z6cb #MarketOutlook
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