Are we training consumers to only buy our products on sales?

This is the dilemma that many CPG companies are either consciously or unconsciously dealing with when they put their products on sale more often.

Add to that the various promotional mechanics being offered in the market, mechanics like the paper coupon, ecoupon, mobile coupon, BOGO, and TPR, just to name a few, consumers can now double up (or more) on discounts and that will really have a negative effect on product profitability. Trade spending without a plan to drive long-term growth will work for the retailer but can really backfire on the manufacturer.

This article discusses real life situations that CPG companies are dealing with as they strive for market share, profitability and continued category growth. CPG companies need to have a strategy in place in order to ensure that this sales drop does not happen to them.

Source: Wall Street Journal Article, Americans Lose Their Taste for Cereal.., Apr 3rd 2014, Serena Ng

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