Honey I've shrunk the portion size

We’re always looking for topical blog content at Nae Bother, and we feel that the subject of shrinking consumer products is worth discussing, and it’s not only well-known branded products that are getting smaller, with no corresponding reduction in price. From the smaller portions of battered cod offered by our local fish and chips shop, to food manufacturers that offer less product, it seems to be getting more prevalent. It may seem like the ideal way to maintain profit margins with ever-increasing costs, but most consumers are not daft and don’t like being taken for a ride.

An article in the Financial Times from April 2013 highlights the problem: “Big name brands are shrinking products by up to a quarter, but the prices aren’t dropping,” Which? says in this month’s issue of its magazine. “We asked the makers of these products why they had shrunk them, and were generally told that in the face of rising costs they chose to shrink products rather than increase prices.” In addition, the survey by Which? discovered packs of Birds Eye beef burgers that have shrunk from 16 to 12 patties; Pledge Clean & Dust furniture polish cans with 50ml, or 17 per cent, less; and a 10 per cent reduction in the number of Superfluity Blue & Black Nestlé Shredded Wheat in a 525g package (http://www.ft.com/cms/s/0/d660c704-9272-11e2-851f-00144feabdc0.html?siteedition=uk&siteedition=uk#axzz2hPY9oLLg).

Both product and pricing are integral parts of the marketing mix, and by ‘tinkering’ with these key elements has the potential to destroy brands’ hard-earned brand equity. Consumers’ brand loyalty will be sorely tested if they feel that someone is trying to trick them, particularly when there’s usually an alternative product on offer, which is more appealing from a value standpoint. Once consumers get familiar with a product size and its pricing, it’s really treating consumers and potential brand advocates with complete contempt to reduce the offering whilst maintaining the pricing. According to the FT article, just 3 per cent of Britons think it’s fine for companies to sneakily shrink product sizes without commensurate price cuts.

What makes this marketing strategy particularly questionable is the fact that brands, through channels such as social media, are very keen to establish deeper connections with their customers. Surely this spirit of closer engagement and trust from brands is not compatible with trying to deceive people and is a bit hypocritical; furthermore, we think consumers would be far more receptive if brands were more honest and explained why they had to raise prices instead of underhand tactics.

Hello Kitty – the feline marketing phenomenon

At Nae Bother, we have several Japanese clients, so it’s interesting to comment on Japanese brands from time to time. The Sanrio brand, Hello Kitty, which turns 40 next year, has long been associated with all sorts of random products and market segments, from children’s toys to adult underwear and electric toothbrushes. But now we read that everyone’s favourite white Japanese bobtail cat is appearing on Hello Kitty fruit-flavoured beer in Taiwan and China. Is this a brand extension too far?

Originally targeted at pre-adolescent females, you’ve got to wonder how such a brand can also be used to sell alcoholic beverages to adults. The low-alcohol drink is clearly targeted at female consumers who are enamoured by the cute cat with no mouth, and possibly have nostalgia for the brand from their childhood; nevertheless, with such brand recognition amongst minors, it’s pretty risky positioning the brand in such a category and segment, and you’ve got to ask what the brand really stands for. Interestingly, a recent article in Businessweek shed some light on this: “The famous feline has become a global fashion icon and megabrand because her fundamental design says nothing and everything at the same time. Hello Kitty’s minimalist rendering invites viewers to bring their own meaning to the image. That’s why the image works with children’s books as well as with vibrators.” 

http://www.businessweek.com/articles/2013-09-16/hello-kitty-beer-zen-and-the-art-of-crass-marketing?campaign_id=DN091613 This explanation is profound stuff and we can just about understand what they mean, as the brand’s marketing approach is totally unconventional i.e. a brand usually means the same thing to most people; nonetheless, the brand has been around for a long time and its appeal is not waning, as shown by the parent company’s shares which have doubled this year. We wonder which product is next for the Hello Kitty treatment.