Consumer Response to Downsizing

Pack Price Versus Pack Size

Pack size elasticity is about 1/4th the pack price elasticity. Furthermore consumers consistently under-estimate pack size changes, especially if it involves changes in all three dimensions (width, height and depth).

This means if manufacturers want to grow the average price per ml and / or profitability – it makes sense to evaluate the options available to reduce the pack size without significant investments in the upgradation of product lines before increasing  list prices.

 

 

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Author

Pim is the co-founder of RGM Consulting and a core member of the global executive leadership team. In the leadership team he oversees: sales, research & knowledge development, marketing, and delivery.

Pim has extensive experience supporting leaderships teams across the globe, having worked on projects in Europe, Latin America, and Africa. Through his work, Pim has developed expertise in revenue growth management, business turnarounds, innovation management and marketing. Furthermore, he has deep expertise in the consumer goods industry.

Expertise

    • Revenue Growth Management
    • Business Strategy & Transformation
    • Business Turnaround
    • Innovation Management

Education

    • Master of Philosopy in Business Research (graduated cum laude)
    • Master in Business Administration (graduated cum laude)

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