Usually, Proctor and Gamble offers high-end products but because of the hard economic times had to put out more products which the consumer would be more likely to purchase. They used price promotions and created new products to try to get consumers to purchase their goods, raising the amount of products sold overall; changes in prices lowered sales by one percent as a whole.
Lower prices of Proctor and Gamble products is beneficial for consumers because they are able to purchase more products for less money. Lower prices are also beneficial for the company overall because people will return to the corporation later, even after prices have risen again.
http://online.wsj.com/article/SB10001424052748703545604575406873653461804.html
Molly and Group,
ReplyDeleteI thought your analysis of this article was well written and interesting. Do you think dropping prices on necessities is occuring across the board? (ie at Johnson and Johnson, Colgate Palmolive, etc.) Are CPG's recession proof? Is it common within this industry that consumers are switching to cheaper, more economical brands? Are companies trying to win back old customers or attract new ones?
Be careful about what you all define as consumer product goods. The LCD television article is a consumer electronic. Also, try to comment on your group members' posting. Keep up the good work!
~Maura