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Price vs. Value

A pack of Indomie bought today feels significantly less than one bought even just 2 year ago.  It’s so light and seems to cook up even lighter!  What, with the influx of competition in the noodle market in Nigeria, reducing pack size has to be part of a targeted strategy if one doesn’t want to lose hungry customers to other brand who would ensure they got more bang for their buck!  But is this part of De-United Foods strategy when the launched the larger pack size a few years back?  Confuse customers with the value-price preposition:  the regular pack is now smaller so buy the bigger pack (at a higher price point) or simply buy several of the regular packs (as is common in university dorm rooms across Nigeria).

Charles Fishman doesn’t think so…

Like Levi’s and Walmart, perhaps while keeping an eye on the bottom-line, De-United is eroding it’s brand equity and heritage.  If a consumer continues going back to his regular pack size only to find it smaller and smaller, wouldn’t he just switch brands (not go to the higher, unfamiliar pack size)?  Food for thought.

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