This is a question that is being put to global brands at an alarming rate.
Supermarkets want you to price point
Health bodies want you to cut sugar, salt and fat
Directorate want you to increase the bottom line
Consumers want EVERYTHING
It is therefore interesting to see what some of the global brands are doing and how they are counteracting the great British recession of the noughties.
RECIPE REFORMULATION
Heinz HP sauce has cut the salt from 2.1g per 100g to 1.3g "We are confident, as are the consumers who helped us with taste testing, that this has not affected the taste," a Heinz spokesman says. The product is now healthier and no doubt lining the company pockets without the need to buy as much salt.
PWASO Viewpoint - I completely agree with recipe reformulation as a way to make money, reducing any of the major contents by even 1% can remove £1000's from the COG's. The problem is when you aren't repositioning your brand. HP sauce is arguably served with fatty foods so doesn't need a healthy standing (a low salt version already exists), the bible of reformulation states that if your going to change the recipe don't let the consumer taste a difference - OOPs HP sauce is now in the national press. It will pass and I believe Heinz will make more money from the savings to the salt than the few hundred consumers who refuse to repurchase, definitely a lesson for those who wish to follow suit.
NO MORE PRICE POINTING
Energizer holdings are no longer going to price point their Energizer battery brand, sacrificing short-term gain for long term positioning. 40% of the volume is currently sold on offer but this promotional activity will be reduced and replaced with value adding partnerships such as donating profit to 'Help for Heroes' Charity.
PWASO Viewpoint - Consumer goodwill for our heroes abroad may mean this strategic standpoint is a success for the short term but our pockets are definitely lighter these days and may cause conflict with our heavy hearts. If inflation continues to rise and Duracell maintain their activity then they may need to rethink.
PRODUCT SIMPLIFICATION
Both Unilever and L'Oreal have engaged in cutting the complexity of their ranges. The premise is that less complexity increases the bottom line and that we as a consumer prefer less choice, subsequently increasing our spend.
PWASO Viewpoint - I can completely understand the gain from having less complexity in your supply chain.
The danger here is that you are opening up market share that your competition may potentially take, companies need to be sure they are delisting the correct lines and have a viable replacement.
WEIGHT REDUCTION
Everyone in the marketplace is currently doing this, the latest case in point is the xmas portfolios for Cadbury. A tin of Cadbury's Roses now weighs 850g, down from 975g, while a tin of Heroes now contains 800g of chocolate 150g less than last Christmas. The reduction is the equivalent of 11 fewer chocolates in each tin.
PWASO Viewpoint - Consumers have so far been submissive to this strategy. We almost accept that if we want the same from our brands without a price rise something needs to give. Don't short change us too much but we will allow you to tighten your belts a little.
Packaged wrapped and slightly opinionated
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