2023-08-20 01:02:06
New contribution (totally exclusive) to the analysis of the price reduction strategies carried out by some major consumer brands. After Danone and Panzani (already reviewed here), now: Coca-Cola. At the beginning of the summer, the brand announced a 10% price reduction for 3 months on its sugar-free ranges. The price reduction was announced for August 15. And, as with each similar operation, the same question: would the brands pass on the price reduction or would they keep it, totally or partially, to improve their profitability? It is precisely this fear that led Danone to indicate a price on the packs, just to “force the hand” of the brands (even if, obviously, no one at Danone presents it this way ???? ).
Result: a little more than 15 days following the official date of the new tariff, Coca-Cola is on the way to succeeding in its bet (which demonstrates in passing its commercial influence on the market, from key accounts in power stations to heads area in the field). From early July to mid-August, the 1.75 l PET of Coca-Cola without sugar saw its price drop by 8% on average in France, from €1.85 to €1.70 (see infographic). Consequence: the PET of Coke Zero is now 6 cents below the price at the beginning of the year, when the regular version is 15 cents more expensive. A real difference in evolution!
In theory, the PVC should nevertheless have fallen further: – 10% and not – 8%. Three explanations: proximity has generally not (yet?) passed on the decline. At Carrefour City and Contact, for example, the prices are still the same as at the start of the summer. Then, two HM / SM brands have apparently not changed their prices: Casino and the U.
The case of the U is interesting: on the shelves, the prices have not changed. On the other hand, at the cash desk, the discount appears on the ticket (“10% Coca-Cola discount”) as if it were a reduction under mandate. Problem: the shelf display to announce it is random. Sometimes present, sometimes not. Result: facially, the U’s have not changed their price and the customer who does not ask for / does not look at his ticket will not materialize the discount. In short, a bad strategy, the fault of a faulty execution of communication at the point of sale. What the “national” might still have anticipated. They just had to call me, I would have told them!
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