Those who used to work in the premium price segment are now tempted to work in the low (or, as they think, average). It is important not to miss here. Let me give you an example. The company produces building mixtures. Realizing that now under the guise of building mixes, roughly speaking, chalk and sand are needed, she begins to produce mixes slightly below premium under the same brand. This is a fatal mistake. The company is killing the legendary feel of its premium customer and not creating a mid-range feel for the poorer customer.
If you want to work with a legend and a low or medium segment, you have to create a second brand and a second office – with other people, a different sales department, who under no circumstances should overlap with each other. Some of them sell, relatively speaking, tons-kilometers, others – pathos. Only in this case you have a chance to keep your work with the legend and capture the “middle” class.
In the current conditions, we cannot release the previous product and raise the price. What did I do? We produce fresh frozen vegetable mixes. The size of the package remained the same, at 500 grams, but the package shows that there are 470 or 380 grams inside. In addition, we changed the composition of the mixture by 30% in favor of cheaper vegetables. At the same time, the price rose by 15%. It’s the same in canteens. The best-selling set meal “Sovetskiy” has slightly risen in price, and the portion has become smaller, but the sausage with buckwheat is as it was and remains a sausage with buckwheat. To survive, you need to reduce the composition of the product and increase the price tag or radically change the ingredients.