From vanishing snacks to your shrinking wallet, everyone is making tradeoffs currently due to shrinkflation. What is the impact of shrinkflation on the brand? And what role does pricing have to play in it? With increased awareness and proactive measures, we can reduce the impact of shrinkflation on our everyday lives and businesses, as the author explains.
In a non-tendered market brand premium will protect prices and brand owners. However, tendering opens the market to all parties, including the competitors with a low-cost position and weak branding. The switching curve, as the author explains in this article, presents a method to assess the incumbents’ and the challenger’s position, quantify the impact of a challenge, and derive the appropriate pricing measure in response.