Around this time of year (holidays) you often hear the saying “good things come in small packages.” The big thinkers at H.J. Heinz are hoping that holds true for the new smaller sized food products the company is set to launch.
Heinz is introducing a range of smaller-sized and less expensive products in hopes of goosing sales in a still sluggish economy. Under these financial circumstances, consumers often switch to lower priced products, even though the cost-per-ounce/unit may be higher.
The company’s move is part of a trend by companies around the world, coping with recession and global economic uncertainty.
Heinz is launching several products priced at 99ȼ and $1.99, hoping that shoppers will be attracted to the cheaper prices in order to stretch their food dollars. Some of the products include a 10 oz. package of Heinz Ketchup, a 9-oz. pack of yellow mustard and smaller sized cans of Home Style Beans, all of which will cost 99ȼ.
In addition, smaller-sized products often have a higher profit margin associated with them, even though the absolute value of the margin is lower. So Heinz sees it as a win-win, and consumers see it as a way to make ends meet.
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