- Inflation in the different countries advances between 8% and 12% year-on-year.
- In Great Britain, a report this Monday says that in the second semester it could reach 15%.
- Inflation impacts consumers and also companies, whose departments of marketing refine strategies not to resign sales.
The sharp increases in prices in recent months around the world affect the normal operation of companies that produce mass consumer goods.
It is that with inflation in values that have not been registered for more than two decades, the big brands have had to dust off old marketing strategies marketing and prices.
One tactic is reduflationthe process in which products are reduced in size or quantity, while their prices remain the same.
In this way, brands avoid redialing and, at the same time, deal with cost increases.
The loser is the consumer, who receives less product than before.
Brand Marketing Strategies for Fighting Inflation
Another of the strategies of large companies is to offer discounts and promotionss in products ranging from soft drinks to paper towels to keep shoppers in high-end stores, according to data from research company IRI, in a report prepared for Reuters.
These promotions seek to contain buyers with greater purchasing power, who until now had maintained a good level of consumption in the United States, but have begun to lower it while prices rise and incomes do not advance in the same line.
Another marketing tactic is to offer a price on certain days of the month and other values, with discounts, in other periods.
For example, Colgate-Palmolive is looking at offering one price on some products at the start of the 1st and 3rd fortnights of each month, when consumers get their paychecks, and another on the 2nd and 4th fortnights, when pockets are tight.
the key is power exactly align the billing dates of most of your regular customers, something complicated, by the way.
In this brand strategy for fighting inflation, Colgate would prioritize products premiumwith higher prices at the beginning of the month.
The idea of the brand is, at the same time, to increase the price of some, but not all, of its cheaper products so that a set remains affordable to lower-income consumers. This will allow you to prevent those shoppers from looking for cheaper options at other brands or retailers.
This responds to the growth in the sale of second brands and “white” brands, cheaper than those manufactured by large firms.
According to data from Pleasure.aiwholesale retailers and those based on low price strategies have seen people traffic increase by just over 15 percent.
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