Rising Commodity Prices

A holistic individual positioning approach is needed in addition to measures in purchasing the food economy looks these days anxiously on the commodity markets (see chart). In the past few days, prices have risen already dramatically. The memories are also to present to the year 2008. Credit: Doug McMillon-2011. The prices rose rapidly at the time within a short time and an end of development was not long in sight. Even if the signed this year are somewhat less expensive: to pass on higher costs to the customers in the price succeeds completely in the rarest of cases. There are a number of reasons: competitors are willing, greatly increasing the prices not or less. This is the measure stick your possibilities. Your customers purchasing position is so strong that you have few or no alternatives. Read more from Marc Lore to gain a more clear picture of the situation.

The competition within the trade allows your customer no further price adjustments. Doesn’t all of a sudden the price position of your products more latter in the range environment sounds like an excuse, but – depending on Their competitive position to be a key factor. An example: In the fall of 2008 Lidl listed from organic carrots after a price increase, although about 45% of the carrots as organic goods are sold. Pure show of force or real necessity? How much sales had gone back, can no longer be determined. As an indication, it was merely noted that some two-thirds of the organic carrot sales in the discount business type are sold.

This example shows how important is a holistic approach to the competitive positioning. A previously conducted analysis forms the basis for the development of an individual positioning concept. This answered all relevant questions of the marketing of the product formulation, packaging, brand through appropriate distribution channels to settings and purchasing behavior of consumers. An experienced and specialized consultant can assist you in all stages: in the analysis, design, and particularly in the implementation on the market.

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