Topic: Inflation
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The Marketing Challenge Behind CPG Volume Growth
As the CPG industry confronts its post-COVID “new normal,” there is a clear imperative for stronger coordination between marketing and revenue management functions to drive consumption growth. This focus is necessary because volumes for CPGs will remain under pressure in the near term. In part as a response to significant price increases over the last…
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Apple Vision Pro use cases
Now that Apple’s Vision Pro headset has been available for a week, the focus of the discussion has shifted from its price point to another fundamental question: how will it create value? Countless naysayers have already said that the device will flop because there aren’t killer applications or use cases to justify anything close…
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Corporate America tests limits of pricing power
Between the lines in the intriguing New York Times article below, I see two critical points about why the recent wave of inflation occurred and what will happen in 2024 and beyond. Recent inflation reflects a long overdue price correction, not a collision of macroeconomic forces. Prices were trapped in the opposite of a bubble,…
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Video on the Cost Game
G’s Ricard Vila shares his insights on the Cost Game in the latest installment of the Game Changer Expert Interview Series. In this video, Ricard explains why implementing rigorous cost accounting, optimizing supply chains, and effectively managing quality risks are essential for companies playing this game. To learn more about strategic pricing and the newest…
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Consumers aren’t buying cheaper cereal
Breakfast cereal exemplifies the ongoing transition period for many food and grocery products. are recalibrating their behavior and their value perceptions after a couple years of rising prices, a trend which I view as an overdue correction. companies in turn are shifting their focus to growing volume. normally cut through the noise in the Uniform…
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Inflation higher than expected
Inflation in the US was higher than expected in January at 3.1%, but as always, such numbers come with caveats. First, as I mentioned in the last Game Changer newsletter of 2023, it’s time to break away from looking at prices in aggregate. The headline inflation rate in any country is a symptom of that…
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Applebee’s new pricing model
Applebee’s is experimenting with a new pricing model that could increase traffic, re-ignite growth, and keep the chain’s roughly 1,500 US restaurants top of mind for consumers. Last month it launched the Date Night Pass. Customers pay $200 for a card that entitles them to a $30 discount off 52 meals (but not alcohol) over…
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IKEA defies conventional pricing wisdom
IKEA continues to defy prevailing wisdom and cut the prices for many popular products. Why wouldn’t they try to defend the higher prices they implemented over the last two years? After all, that’s the path many other retailers and consumer goods manufacturers are pursuing. The answer isn’t a flawed methodology or mistaken assumptions on…