How to fight shrinkflation? Pay attention to unit prices at grocery stores
What is the benefit of smaller package sizes for consumers?
Smaller package sizes can benefit consumers in several ways. They allow for greater flexibility in purchasing, catering to different consumer needs and preferences. Smaller packages can also be more affordable, making products accessible to a wider audience. Additionally, smaller packaging can be more convenient for travel or personal use, and can help control portion sizes for health-conscious consumers3.
What percentage of consumers use unit prices when available?
According to the Food Marketing Institute, 78% of consumers use unit prices when they are displayed in stores. Unit pricing allows shoppers to compare prices and make informed purchasing decisions by providing a standardized measure of cost per unit, such as dollars per ounce or cents per item.
What is "price pack architecture"?
Price pack architecture (PPA) is a strategic framework used by consumer packaged goods brands to optimize their product offerings based on pricing, packaging, and volume2. It helps determine how products should be grouped, priced, and promoted to best capture different consumer segments and maximize revenue2. PPA addresses challenges related to suboptimal pricing strategies and ineffective product tiering, benefiting both manufacturers and retailers.