U.S.A. Making cash-strapped consumers spend money
In the U.S., where consumption accounts for 68% of G.D.P. and unemployment is rising sharply, the giants of F.M.C.G.s are trying to prevent households with tight budgets from migrating to private labels and low prices. Options include price reductions, promotion of best-selling ranges and reliance on existing and proven products by suspending new items.
“We’ve learnt from what worked well and what didn’t in previous recessions, and how this crisis may be different,” said Steve Cahillane, Kellogg‘s C.E.O. As in the 2009 recession, the company is considering indicating the number of meals per box of cereal. At the time, a 2-month campaign in the U.K. highlighted the price of 10p per serving of cereal.