A lot has been written of late about the milk wars between the major supermarkets that has seen the price of own label milk slashed to $1 a litre and the effect it could have on the dairy market.
While some shoppers are bound to be happy about the savings, marketers of branded milk would be wrong to start crying over this. Price is just one factor that influences purchasing decisions, and value is usually more closely scrutinised by shoppers.
Indeed, the price cuts have presented an opportunity for brand owners to remind shoppers why it is they value branded products – consistency, quality, freshness and taste. Just as shoppers are willing to pay more for “Australian Made”, organic or healthy alternatives, they are also more willing to part with their hard-earned when they trust that a brand will deliver on higher expectations.
Price promotions are at their most persuasive at the shelf, where prices are stickered everywhere and are easy to compare. So that is where brand marketers should state their case and respond to the price cuts.
Perhaps it’s time to remind shoppers that price and value are not the same thing.