Thursday, 7 October 2010

Buying bulk is best?

A recent survey by indicates that bulk packs of branded goods can cost more per 100g than smaller packs of the same brand.

With savvy consumers paying more attention to real value, able to read unit pricing details on shelf-edge labels and making active use of price-comparison sites, real damage can be done to brand equity in the process.
The only issue is whether the damage is being done to the store or the brand.
In other words, is the shopper blaming the shop or the brand owner for the attempt to mislead?
Either way, the resulting dilution in brand equity harms both supplier and retailer.
Given that the real profit is made on repeat purchases by satisfied shoppers, perhaps it is time for both parties to make this no-brainer correction of the gap between perceived and actual value for money?

1 comment:

Anonymous said...

It's been happening for years and will continue to do so, especially with promotions being key in driving purchase.

With so little time spent at fixture by many consumers the pricing differences per 100g etc get passed by.

If you can be bothered to spend time at fixture your shopping trip will take hours. I recently did this exercise when looking at dishwasher tablets. Took me a few minutes to work out the best "value" and taught me that the pricing differentials are too small to worry about.

As for the brand equity, pricing is the retailers domain and I feel that they are the ones who will ultimately suffer.