The incredible shrinking package

Has anyone noticed this lately? Your favorite brands are getting smaller, but the price remains the same.

Consumers are really beginning to pay attention to “product reduction.” I first noticed it in my yogurt cup but thought, well it’s lower in calories anyway, but lately I see a lot of different products go down but the prices stay the same and in some cases the contents go down. of products combined with rising prices.

This is not the first time this has happened. If any of you have old cookbooks, you’ll notice that the recommended amount of some of the items has changed. Especially when you’re baking and need one and a piece of something to complete the recipe. However, a cup of something is still a cup, so standard weights and measures still apply.

A while ago we saw the shrinking of the detergent bottle (Ultra detergents) along with the supposed claim to save the environment with less packaging. The detergent is concentrated and requires less packaging material to make the bottle and also less shipping cost. However, the truth is that it was a victory for the CPG companies and packaging manufacturers, not the consumer. In fact, you’re paying more per wash with the new detergents instead of less. It also looks good for the environmental packaging twist.

But enough about sour grapes in something that has become commonplace, the packages are now shrinking to keep up with the cost of inflation. The price of raw materials is skyrocketing, and companies are looking for ways to offset rising costs. One of the easiest ways is to reduce the amount of product inside and keep the price the same in the hope that consumers won’t notice.

Sorry, but now we have a polite customer reading labels and taking notes. They’re not just reading them, they’re comparing similar products. Brand name merchandise was already losing ground to private label products, now even more so with the downturn in the economy. If your product shrinks and the consumer is not happy, they will look for alternatives, especially if they are less expensive.

However, there are other cost-saving options when it comes to packaging. Some companies are doing what is called “lightweight”. That is to reduce the amount of packaging material that is used. Surely you have seen how the thickness of your water bottles has decreased or how you can now squeeze your beer or soda can with one hand. This is because manufacturers have figured out a way to remove the packaging material while maintaining the structural integrity of the package. The packaging technology has new and improved materials that make it possible. However, it is important to note that there is a fine line between reducing material costs and package failure. If it doesn’t reach the consumer in good condition, then it’s a disaster.

Another way to reduce packaging costs is to reconfigure the packaging to make it more cost effective. That is, designing a product in such a way that it takes up less space on the store shelf or maximizes palletizing and shipping or transportation by being a better shipping unit. A good example is the square milk bottle introduced by Wal-Mart, where not only can you get more on the shelf for a square bottle instead of a round bottle, but it’s also more cost effective to ship. This bottle redesign is a win for Wal-Mart considering the large amount of money saved by making this change. A note of caution when contemplating a radical redesign of a commonplace item, the jury is out on consumer acceptance of the square milk bottle. Have you ever tried for one?

Given consumer awareness of the incredible shrinking package, a savvy marketer would look for ways to provide more value, not less. Redesigning, reducing weight, or simply keeping the same number of products are options to win the hearts and minds of today’s consumers.