TVE in The Grocer – Recession Victims & Top Products 2009
Posted by Anne-Cecile Bertrand on January 18, 2010
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Just before Christmas we commented on various marketing stories in The Grocer of (19th December 2009 edition).
Chewing gum has been one of the surprise victims in recession, with sales plummeting.
We commented: “The drop in sales could also be down to hard-up consumers switching to nostalgic sweets. In this climate heart-warming appeal is a more important sales driver than functional branding”.
Alex Waters, our Director of Capabilities, commented in the ‘Top Products 2009: Survival of the Fittest’ feature by Catherine Dawes on brands, own label, chasing deals and new habits. He said, “These top brands are performing well because they provide reassurance. The biggest weapon brands have in the fight against own label is the trust they have built up over the years.”
Alex argued that people are happy to spend the extra for that reassurance, and that the brands that lose out, are those further down the table. “The big brands are doing well, own label is doing OK. The middle is the real danger zone”. In conclusion, he summised, ”the shifts in buying behaviour are here to stay. People have re-evaluated what they want to pay for and what they don’t. I don’t think shopping habits will return to those of the boom time.”
Read further comments from Alex and the full article on The Grocer online.