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Are consumers being short-changed by shrinking products?

Last post 09 Sep 2008 8:55 AM by M Jeelani. 6 replies.
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  • 13 Aug 2008 8:53 AM

    Are consumers being short-changed by shrinking products?

    Pringles and Strongbow have joined the list of shrinking products as food and drinks companies contend with rising costs by trimming pack sizes rather than raising prices.

    Procter & Gamble has reduced the weight of some Pringles flavours from 200g to 170g while Strongbow has reduced the number of Strongbow cans in a case from 18 to 15.

    Nestle has taken back one Rolo, leaving 10 in the packet.

    Who else have you noticed is giving you less for the same money? Are consumers being ripped off? Have you stopped buying a particular brand because it has got smaller? Should brands be focusing on offering value instead of trimming costs as consumers struggle with rising prices and the credit crunch?

    Should brands be focusing on value instead of shrinking their products?

     

    • Yes - As consumers cope with rising prices across the board brands should focus on value (28%)
    • No - Shrinking a product is a good way to offer products for the same price without increasing prices as companies deal with their own rising costs (72%)
    • Total Votes: 25
  • 13 Aug 2008 1:42 PM

    Re: Are consumers being short-changed by shrinking products?

    it's a tricky one this. on one hand, FMCG's are under huge price pressures related to how much they buy their core ingriedients for. on the other hand, consumers are also feeling the pinch and want better value for their hard earned cash. i think reducing size but keeping the price the same is a good trade off for both customers. and maybe as additional benefit, kids will stop getting fat.

  • 13 Aug 2008 1:45 PM

    Re: Are consumers being short-changed by shrinking products?

    When you go abroad the same chocolate bars you buy at home are always smaller. It's probably about time we caught up with our continenal counsins and became more frugal with our portions. We have way more food than we need. I think it's a good thing. If they had put the prices up then I'd be against it but as it stands I don't feel short-changed.

  • 13 Aug 2008 3:14 PM

    Re: Are consumers being short-changed by shrinking products?

    The UK is becoming like America - the standard portion of food in the UK gets bigger every year. Anything that stops this is a good thing.
  • 13 Aug 2008 4:58 PM

    Re: Are consumers being short-changed by shrinking products?

     Creme Eggs always seem smaller every year, but maybe it's just me getting older and my eyesight failing me!

  • 13 Aug 2008 5:59 PM

    • Gellan Watt
    • Top 25 Contributor
    • Joined on 03 Jun 2008
    • Bournemouth, Dorset, England
    • Posts 266

    Re: Are consumers being short-changed by shrinking products?

    It's a stealth price rise, lets be under no illusion. But it is essential to ensure delivery of the same levels of margin to both the brand owner and retailer during troubled economic times with commodity prices rising at an alarming rate.

  • 09 Sep 2008 8:55 AM

    Re: Are consumers being short-changed by shrinking products?

    Core target of the brands we are discussing are adults/ teenagers. They mostly fall under Achievers.

    Instead of pack sizes If the brands owner changes the price, then their target consumers would have tried seeking other brands falling under similar price value, the brand royalty may affected and their target consumers would get an opportunity to try tasting other brands.

    In my opinion, reducing pack size is more safer than hiking the brand prices. 

     

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