For a paper he needs to write for his "Current Trends in Business" class.
If you were a name brand company (i.e. Kellogg's, General Mills, Kraft, etc), what would you do to lure more customers? In these "trying economic times", people are turning to the private store brands (read: generic). For example, Albertsons sells an 18 oz box of Kelloggs Cereal Corn Flakes for $4.69 ($0.26/oz). The same size of Albertsons Cereal Corn Flakes sells for $3.19 ($0.18/oz). How would you boost sales?
6 comments:
Well, if I were Kellogg's, then I'd just lower the price. Simple as that. A giant cartoon on the cereal box just doesn't appeal to me any more.
Try adding more sugar! It's a proven fact that people eat more sugar in "hard economic times" like these! I'm a sucker for a good coupon. That might work also. Or even better, try a promo deal. Buy our box of cereal and we'll give you a free gallon of milk! Kellogg's should try all three of my clever ideas plus throw in a super great toy in the bag before the seal it up so my kids can have one more thing to fight over!!!! Man, why am I giving all my good ideas away for free? I should be selling these to Kellogg! Tell Chris that if Kellogg ends up using his ideas he needs to receive compensation. Kellogg's thinks they are so smart. They steal the best ideas from the minds of our brightest students. We're on to you Kelloggs. We're buying the house brand from now on till you start paying us for our ideas. Buy the way, this week at Albertsons if you buy four boxes of frosted flakes at 4 for $10 they will give you a gallon of milk with a value up to $4.50! O.K. So maybe these weren't all my own original ideas. They're still goodies!
Ahhh, Thanks Jessi.
I like your ideas so far.
Brittani - Good idea. I would love to, and I just might if I can't think of anything else...however, under normal circumstances (of which these times are not) lowering your price sends a message to your loyal customers that you have been ripping them off for years! But then again, no big shocker here.
I checked Kellogg's annual report. (2008 comes out next week) their $ Sales has increased the last three years, their Cost of Goods Sold and sales costs have increased the last three years, yet their profits have declined ever so slightly.
People who are currently buying store brands (at Walmart 40% of sales are store-brand) need to have a real good reason to switch, because Kellogg can't lower their price enough to compete and stay profitable (or break even). Let's face it, if we are shopping at walmart it's because we are trying to stretch the dollar, and buying a name brand for 30% more isn't going to fly.
Leisel's sugar idea is good. But then again people who buy corn flakes aren't looking for sugar. There have been 200 variations on corn flakes...can you believe that?
Coupons are good, but expensive. Only 2% of coupons are redeemed. They are terribly expensive, and you in effect lower the price point because people now won't buy the product again until they see a coupon for it.
So maybe lower the price a little, offer a limited time unbeatable coupon hand delivered at Walmart, offer more in-store 'tasters', and start a fierce ad campaign about how poorly made knock-off cereals are. (We buy them, but I can tell the difference). GreatValue Bran-Flakes are like eating the crumbs out of the Raisin Bran box.
Maybe I'll let you know what I chose to do. If Kellogg's gets wind, and uses my ideas, I'll pass the checks on to you both! (And Jessica too)
HAHA! Whoever Leisel is. . .she funny! Had me Laughin' Out Loud!
When's dinner? I'm starving! The baby is even more hungry! Wednesday nights (Hillary mentioned) are bad for next week and the week after because of the birthing class. Any other night is good or Wed. in two weeks!
We were trying for this weekend, but Autumn couldn't make it. Hillary said the next good day would be the 13th for both of you. But my shower is the 14th so ya'll should just try and make it then!!!
Hillary said you guys never got my baby shower invites! They were done via email so maybe your's got kicked back or something! I asked Jenna to send them again, but in case it doesn't go through - it's March 14th @ 1pm. It's way out in Henderson which is totally beneficial to you! I think Autumn and Kristal, Nalea and Kaili, and Lauren and Jessie are all going to try and make it! It would be like a little reunion! Let me know if you guys can come and I'll get you the address.
Duh. Lower the prices. If the generics can go for lower, so can the name brands. Or try a promo- like "buy one get one free." Or how about like when I was a kid-put in a great prize so your kids won't let you pass it up. Oh, now I see Leisel already used all my good ideas. So, I mean - just "Ditto."
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