Friday, January 23, 2009
Food Brands Adapt Marketing To Economic Downturn
We are definitely experiencing a great economic crisis, where all industries are impacted. As consumption is getting lower, food brands such as Tropicana or Kellogg's need to adapt their marketing in order to keep their competitiveness.
Actually, this crisis might not be so bad for these companies. Indeed, "to save money, consumers are eating more meals at home and fewer meals at restaurants. Though marketers typically cut back during economic downturns, big purveyors of packaged foods are trying to raise the profiles of their brands.' Also, according to this article, automatic vendors' figures are decreasing as people are trying to limit their consumption of snacks on their workplace.
Therefore, instead of trying to be more aggressive with promotions and discount, food brands are focusing on providing better quality meals, in order to convince customers to buy these products instead of going to restaurants, which would be more expensive for them.
Also, on a more general basis, economical downturns represent great opportunities for some companies to earn market shares as competitors which would not have a safe financial situation or don't have developed a great technological advantage might struggle.