Australians are still benefiting from the price war between supermarket giants Coles and Woolworths. This price war has been driving prices down for products like milk, bread, fruit and veges, washing powder, and liquor. The discounts have been as high as up to 50 precent off some fruit and veges.
These deep discounts have made life a lot tougher for their supplies and other major FMCG manufacturers. Supplies are pretty much being forced into a "cliff" position. This is where suppliers are made to "stand on a cliff edge" and agree to certain discounts, and if they disagree, well they'll end up at the bottom of the cliff!
As for FMCG marketing, all marketers know how crucial it is to have a product on the shelf. Is it one of the most important channels in getting a product out to consumers. But with this price war, it's draining funds out of their marketing spend! Marketers are needing to relocate budget to afford for more discounts to compete against the supermarkets lower price offerings. With this comes the threat to their profit margins and brand equity.
For more news on this, check out the following articles:
So with price being such a vigorous influencer on consumers at present, how can these businesses keep their consumers from straying? How can businesses build strong consumer loyalty?
Loyalty World Australia is the event where you can gain new ideas and learn from experts in the loyalty field on how to deal with this type of customer churn. For more info, visit www.terrapinn.com/loyaltyworldaus