Price war: who will raise them when it finishes the crisis?

Marketing in the XXIst Century, “the prices of the whole line of products must decide simultaneously by means of a general model of optimization who considers not alone the prices elasticities, but also the elasticities crossed between each one”, being the crossed elasticity the percentage change of the sales of a product as a result of the percentage change of the price of other.

That's why, many marks have chosen for another type of answers like creating shops low cost to attract to this segment of the population who looks for offers, or to offer discounts only to the habitual clientele as fidelización. In case of Nestlé Spain, company that is employed at one of the sectors least affected by the crisis on having talked each other of goods of the first need, the answer before the changes in the consumption has been that of developing simpler, less elaborated products and that adapt themselves to a few more limited budgets.

Maria Tejero Salcedo 

Source: foromarketing.com

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