exams passed and after a well deserved vacation but before I pick up again the bad times that spent years this blog untouched.
took a long time wanting to talk about the controversial distribution brands are so fashionable (just look how many hands rise in class when peeps this) and that affect us all. Still, there is a new discussion, much less, since Mercadona has implemented a policy of private label for many years.
But recently, following the economic crisis and the need to lower prices of products to enhance the competitive position of the company, Mercadona decided to delete from its linear those brands, but mostly sub-brands, which did not provide great value to the consumer and differential rose on average basket price, all in favor of their own brands.
Thereafter, consumers , media and companies have positioned themselves against this policy ... and are within their rights, just as Mercadona is entitled to implement the strategy you want. Here consumers are free to choose the most convenient supermarket: if Mercadona does not offer the products you want, you can always go to Eroski, or Caprabo or Carrefuor, or El Corte Inglés ...
But, why are winning marks distributors? Well, the policy will be implemented by these supermarkets responding to a latent consumer needs still unmet. Will maybe Mercadona customers are not interested in Active Bifidus, L Cassei immune or sleep better when you wash your sheets with Ariel. Perhaps what consumers are looking for is a yogurt flavor, period. Maybe that Actimel is sold, not for its health properties, but simply because it tastes good.
What has happened is that brands have tried to justify a price increase based on an improved product that is not needed. We do not know what the Bifidus and therefore can never have asked. In the time that products have come out that did not offer these qualities and also to significantly lower prices we have not had problems happen to other brands. The loyalty that brands are trying to instill has collapsed at the time they have tried to "fool" to some extent.
But there are brands that have survived this situation. For example Coca-Cola. What has made Coca-Cola for not being involved in this war? For Coca-Cola has managed to build a brand with which consumers are meanings and as much as other brands we offer, we reject them (at least in Spain). Something that apparently Danone and Nestlé have failed to achieve.
Consumers looking for these brands and not now in Mercadona, will be gone to another store. In the English Court, for example. Your customers still there, what happens to not buy into the same place forever. This is not to convince consumers that your higher price is justified and that "manufacturing for other brands," but to distribute your products in those supermarkets where your customers do buy your brands.
Anywhere, this is a competitive market and any private company is free to implement the policy to create more appropriate and if you do not buy it because you outside Market: Upgrade or die!
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