Smaller Smarter

Posted: 29/12/2011 in Marketing, PR & Ads, Social Networking/ Social Media, Strategy, Technology

The desire for buying more indulging products is back. At no extra cost. New solutions are to be offered to the consumer.

Markers are on the rise.

– Increase from 11 to 14% of impulse purchases from 2010 to 2011 in France for example.
– In the United States and Europe, major brands resume market shares to private labels. Hard discount loses points in many countries.
– Innovation remains a driving force for consumption.

This is not a return to the situation before 2008, but the evolution of new patterns of consumption.

According to S.Nicol of Henkel, the usual premium from 50 to 100 % of the price of the innovative product cannot exceed 30 % for a commodity product.
The innovation which succeeds is the one who answers real needs and not the one who creates of the superfluous.
Apple iPhone, Nestlé Nespresso, Innocent Smoothie, Actifry Seb consolidate their positions in times of crisis.

The applications of the new environmental values are directed to intensify the pleasure and justify so a positive innovation, even if the organic food market is punctually in regression in Great Britain.

The product that will succeed in 2012 will add a real experience at no extra cost to acquired ethics.

The ethical or economic product cannot be any more a product commonplace and boring as in 2008/2009.

New consumer and brand trend to inspire your product and brand strategy for 2011/2012.
This trend lies at the convergence of four of the 10 trends not to be missed:
WOMANITY,  SITUATION =EXPERIENCE, REAL-TIME BENEFITS, MESSENGER PACKAGING, MULTI-level

Here are four ways to get there

SMALLER BUT SMARTER CONTAINERS

The global increase in commodity prices is hampered by the low possibility of increasing the selling price.

Only reducing the capacity -like downsizing, a trend 2008- could frustrate the consumer, alter the image and make lose global volume:
eg Cadbury Dairy Milk, Tea Tetley, Imperial Leather soap,

Reduce capacity and reduce the price together below a psychological threshold may actually be positive:
eg Innocent Smoothie 750ml instead of 1liter is now under 3 € in Europe.

reduce the capacity to give at the same cost more pleasure, a wider use or an interesting design seems to be promising solution.
Tropicana launched fresh juice 59oz only while the reference market is 64oz, with the advantage of a personalized plastic bottle.
The bottle of Heinz ketchup 25 ml that fits in a pocket.

In food or beauty markets, new recipes and new formulas, packaging design for a better service are to be created.

LUXURY IN SMALLER SIZE

From 2009 were introduced mini sizes of luxury goods like caviar box of 10 g to 30 € Dom Petrov. Simple extension of the range to keep in touch with the consumer.

The latest Fiat 500 by Gucci adjusts the usual car / fashion co-branding to the situation today: the Fiat 500 by Gucci design reminds these inexpensive but very eye-catcher T-shirts promoting fashion icons brands in the BRIC countries.

 

The application of this co-branding on an entry-level model is new in the car market.

With the continuation of the crisis, appear small luxuries specially conceived to be both desirable and affordable.
Already seen in the trend Second Skin, the caviar of truffles, a juice of truffles in pearls.

The size of discovery and tasting offers an excellent marketing alibi.

 

Most precious olive oils you can buy from 8 dollars in 250 ml bottles at Olivier & Co.
The wine in tube from 4 to 10 cl of WIT, Wine In Tube. All the experience of great wines at very low cost.

So many solutions are to allow the consumer to indulge himself with something exceptional at small price.

SMALLER AMBITION TO BE SMARTER

Some skin care brands accustomed to a steady escalation of promises, ever more specialized functions at ever higher prices find themselves in a dilemma.

Inspired by the new values of consumption and limited in practice by the price, the consumer retires and the market stagnates.

Time to return to reasonable fundamentals and to basics is back.

A craze for products like the BB creams of Asian origin – Blemish Balm Cream-such as Erborian or Boscia .These products accumulate the effects normally given by separated care categories. No more the need to buy a whole list of expensive treatments.           

The desire to return to simple functions such as moisture or shine. Their effects increasing globally the quality of the skin are proven by time.

A return 10 years ago … but offering new marketing and technical solutions.

The leaders hurry to answer,
with their own interpretation of the BB cream as Olay Professional ProXClean
with the repair as L’Oreal Revitalift Total Repair
with the brightness which gives a boost to oldest lines like Estée Lauder Idéalist.
New Lancôme Visionnaire tries to make the synthesis of these directions.

This return to more reasonable solutions was outlined in 2009 by the leading manufacturers of household cleaning products…

To follow, soon on the other markets!

SMARTER BUT SLIGHTLY DEARER

This strategy does not contradict the previous in that it adds significantly to the value of attractiveness while assuming a slightly higher price.

The added value is based on,
An offbeat marketing.
The fun and colors in the traditional world of English jam by Regent’s Park.
The mixture of fruits and healthy plants by Floralpina.

The environmental protection.
Garnier has bounced back strongly by making its flagship product champions of environmental safety.

Solutions coming moreover.
Styling Jean-Louis David’s Japanese or Brazilian method.
Paul Michell’s magic natural recipes. 

The seasonal recipes where the ingredients evocative are associated with health benefits: superfruits like Cranberries, Guava, Acerola, Granada …

It is worth re communicate the core values ​​of the product like Olay on the model of Coca-Cola “no coloring or preservatives from the beginning” or of luxury brands like Hermes and Porsche.

 

CONCLUSION

With the crisis, priority has been given to the substance rather than to the appeal of the product, to the rational qualities rather than to the emotional effect.

Today the consumer experience is to strengthen without affecting the price. The product a little smaller and a little more desirable for the price is a good balance.

The space for smart products, small luxuries and affordable socially gratifying products gets bigger.
So Zara Home  is challenging in quality and style luxury brands at low prices and succeeds very well in the world.

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