Leslie Patton’s Post

You have surely already heard about “shrinkflation,” but what about “upflation”? In our Big Take, Leslie Patton and I explore all the ways companies are trying to resuscitate consumer demand for categories where people are buying less stuff. Don’t think you need as much deodorant these days? Well companies would love to sell you full body deodorant — for more money, of course. Not eating as many chips? Perhaps you need to consider them a side dish and not just a snack. Will the tactics work? We will have to wait and see. Read more on Bloomberg News

Here's an eye-opening insight into how FMCG companies are impacting your wallet with their packaging strategies: Ever wondered why a small 5ml Dove sachet is priced at Rs 2, while a 340 ml bottle sells for a hefty Rs 345? The math reveals that the bottle costs over 2.5 times more than the equivalent shampoo amount in sachets. Sachets are not just cost-effective packaging but also facilitate efficient transportation due to their compact size. This trend is not limited to shampoos; FMCG giants are offering various products in sachet forms, boosting sales significantly. 🔷Why are sachets so popular? 👉 Affordability: Priced affordably, sachets cater to a wide audience. 👉 Consumer Behavior: Small payments go unnoticed, encouraging frequent purchases. 👉 Entry Point: Sachets pave the way for consumers to transition to larger packs over time, driving sales volumes. Evidence shows that sales of shampoo sachets between 72 and 75 constitute a massive 70% of the market. Similarly, in the biscuits category, packs priced between 75 and 710 dominate over 60% of sales. Sachets and Low Unit Packs (LUPs) are evidently consumer favorites. While sachets may seem like a money-saving option, it's crucial to consider their environmental impact before making the switch. Lemme know what do you think of this in comments!!! Follow Parisha Sehgal !!!!🌟 #FMCG #PackagingStrategies #ConsumerBehavior #Sachets #LUPs #EnvironmentImpact

To spur people to buy more, the food companies were trying to gin up ever more creative versions of what they like to call new “occasions” for old products. Ice cream isn’t just a dessert, according to General Mills’s Chief Executive Officer Jeff Harmening, but can be a snack for between meals with Haagen-Dazs Bites. Kellogg executives said they were trying to get people who want to save money to eat cereal for dinner, showcasing a slide during a presentation that said “Give chicken the night off.” PepsiCo’s CEO pushed Doritos and Tostitos as a side dish. Companies are leaning into the non-consumer to simply reframe their marketing. Late last year, Conagra Brands Inc. launched a campaign for its Birds Eye frozen vegetables that sells them as the waste-conscious choice. Why waste money on fresh vegetables that you’ll throw away when you can buy frozen ones that will pretty much never go bad? The company spokesperson said the ads brought new buyers. No matter the tactic, companies have to do something to try and boost sales — or else they might lose the coveted American shopper forever. “A lot of this type of behavior is sticky,” said Steve Cahillane, CEO of snack maker Kellanova. “When people learn how to save money, if it’s not uncomfortable to them, they tend to be habits that stick.” #fmcg #foodandbeverage #foodindustry #cosmetics #marketing #productdevelopment #R&D #businessstrategy #supplychainplanning #supplychainmanagement

Companies are leaning into the non-consumer to simply reframe their marketing. Late last year, Conagra Brands Inc. launched a campaign for its Birds Eye frozen vegetables that sells them as the waste-conscious choice. Why waste money on fresh vegetables that you’ll throw away when you can buy frozen ones that will pretty much never go bad? The company spokesperson said the ads brought new buyers. No matter the tactic, companies have to do something to try and boost sales — or else they might lose the coveted American shopper forever. “A lot of this type of behavior is sticky,” said Steve Cahillane, CEO of snack maker Kellanova. “When people learn how to save money, if it’s not uncomfortable to them, they tend to be habits that stick.” #foodindustry #fmcg #foodandbeverage #inflationhedge #cosmetics #marketing #productdevelopment #businessstrategy #supplychainplanning #supplychainmanagement

🍫 Hey chocolate manufacturers and suppliers! Are you in a "complicated" relationship with Gen Z? Our 'Gen Z No Filter!' report states that there are three key ingredients to create "stickiness" in the chocolate category: 1️⃣ Pure "enjoyment" of the category 2️⃣ Desire to "discover" and "try something new" 3️⃣ Sense of urgency created by the "craving." Does your brand master the right ingredients to fuel enjoyment and a sense of urgency for Gen Z? Get foundational insights on Gen Z shopping behavior 👉 https://lnkd.in/gpyjWjsD #GenZshopper #pathwaystogrowth #fmcg #foodandbeverageindustry #GenZMarketing

Smaller packs? More like smaller profits? 💠 Understanding Consumer Behaviour Through Pricing Strategies Recently, I conducted a survey examining how different product options influence consumer purchasing decisions for laundry detergents. 🔍 Controlled Group Insights:(57 respondents) Participants were given three options:  1. ₹10 detergent bar 2. ₹30 detergent packet 3. A combination of both The mean choice for the combination was 2.52, leading to total sales of ₹48.09🧐. Clearly, consumers were willing to spend on a mix of both products. 🔍Treatment Group Insights: (128 respondents) In this group, the options were slightly adjusted: 1. ₹10 detergent bar 2. ₹30 detergent powder packet 3. ₹10 detergent powder packet of proportional weight 4. A combination of different options Here, the mean choice was **3.608**, but total sales dropped to ₹31.30🧐. 🧠Key Findings: The introduction of smaller detergent powder packets created a shift in consumer mindset. It appeared that having a lower price point led to **Mental Accounting**, where customers hesitated to spend more than ₹30, significantly affecting their overall purchase behaviour. Conclusion: This experiment highlights the importance of pricing strategies and how subtle changes can lead to unexpected consumer responses. Thus introduction of smaller size can be profitable if it is proportionally less weighted or the price is more. What are your thoughts on how pricing strategies affect consumer decisions? Let’s discuss! #consumerbehavior #marketresearch #consumerpsychology

Always a red flag when shoppers rate their satisfaction with quality in your category lower than nearly every other category in the store.   And there’s not always a lot you can do about it. For healthcare brands Quality is most often about efficacy, which has its obvious constraints in an OTC environment.   But sometimes there are things to be addressed.   For example, when we drill into what quality means for No / Low alcohol #shoppers, we see that quality for them is more about Taste than anything else (perhaps no surprises here!).   And this is in fact significantly more the case for this category’s shoppers, than the average category in the store.   So clearly still some product development work to be done in the #category.   As another measure of quality, No/Low alcohol shoppers place a significantly higher importance on products with Endorsements & Awards than the average category in the store.   So perhaps something here the category can ‘tap’ into.   By communicating around taste and showcasing award winning options, the category can begin to deliver more quality in its range and see higher levels of quality perception amongst its shoppers.   That’s a starting point a least… #shopperinsights #categorymanagement #retailinsights #noalcohol #lowalcohol #bws #shoppersatisfaction

With plant-based sales falling, suppliers need to ask if they are tapping into a need state from both shopper and retailer viewpoints. https://lnkd.in/e7qEfrdR #retail #consumers #MeatFree #PlantBased

Saving money is more than just a habit, it’s a lifestyle! One great way to save is to: Buy Generic Brands. Often, generic brands offer similar quality to name brands at a lower price. Consider switching to generics for items like groceries, toiletries, and medications. #genericproducts #savings #onedollaratatime

Latest on International Confectionery: The Psychology of Twist and Wrap Managing Editor Rebecca Morpeth Spayne explores how twist and wrap packaging techniques shape consumer perception of confectionery Packaging is often the first point of interaction between a consumer and a product. In the confectionery industry, where indulgence and impulse play significant roles, packaging is more than just a protective layer; it is a crucial aspect of the product itself. Among the myriad of packaging styles, the twist and wrap method has endured, holding a special place in the market. This method not only protects the product but also engages consumers in a way that other packaging styles struggle to match. The act of unwrapping a sweet treat, the tactile sensation of twisting the ends, and the visual allure of a well-wrapped confection all contribute to a powerful psychological experience that can influence purchasing decisions, brand loyalty, and ultimately, sales. Read more here: https://lnkd.in/d6Jgg9YS #Food #FoodProduction Jonathan Pittock