Quality, Indulgence and Premiumization Strategies in Food - Defending Against Margin Erosion

Quality, Indulgence and Premiumization Strategies in Food - Defending Against Margin Erosion Consumers worldwide are trading down and discounting is becoming more prevalent, hurting the profit margins of many manufacturers. Quality, Indulgence and Premiumization Strategies in Food Defending Against Market Erosion provides a comprehensive overview and strategic analysis of how brands can effectively defend their profits despite the emergence of value competitors. The report focuses on the strategy of premiumization, to encourage consumers to trade-up in terms of both price and quality. The growing popularity of private label alternatives is also addressed and what brands can learn from them, and ultimately defend themselves against discounters by offering consumers the highest quality, and drive sales. Key Findings The global financial crisis has affected consumer spending, and despite economic improvement across much of Europe and the US, consumers have not reverted to previous spending habits. Manufacturers must consider the austerity needs of these consumers by providing value, not solely in terms of low cost, but also to trade-up for quality. Taste and indulgence will continue to drive consumption across Food categories, and manufacturers should ensure that their products offer consumers the best overall experience. Consumers are unwilling to sacrifice taste for other concerns, such as health, re-enforcing the need to offer products that offer uncompromised moments of pleasure and indulgence, particularly, in Non-BRIC countries. Consumers, particularly in BRIC countries, are increasingly seeking products that offer assurances of quality, and manufacturers should respond by ensuring transparency in terms of sourcing, production, and ingredients to drive sales, as the desire for authentic and trustworthy products increases. Many consumers no longer view private labels as cheap, lower-quality imitations of branded products, instead perceiving them to be of an...