Manufacturers are drastically re-evaluating their strategies and taking action to reinforce the value of their products, according to new research from international food and grocery expert IGD.
The research reveals that 90 per cent of manufacturers have revised their strategy as a result of the recession and 88 per cent have taken action to reinforce the value of their products.
Trading strategies in and beyond the recession reports that manufacturers are adjusting their trading strategies to reinforce their 'value' proposition, by adopting a series of tactics in response to shifting shopper behaviour.
Some 43 per cent of manufacturers have introduced more promotions as a means of reinforcing product value; 42 per cent of manufacturers have changed pack sizes to strengthen their 'value' offer; and 28 per cent are using price reductions to compete in the current trading environment.
Almost two-fifths of manufacturers see private label as an opportunity to grow volume and expand into new categories and 31 per cent are developing long-term relationships with key discounters to tap into the growth opportunity this channel presents, according to the survey.
Joanne Denney-Finch, chief executive of IGD, said: "Food and grocery manufacturers are rising to the challenge of delivering extra value for shoppers in a recession. They are responding to fast changing trends. The high cost of many raw materials has limited the scope for direct price cuts.
“But an extra emphasis on promotions, new pack sizes to suit different budgets and new advertising campaigns to reinforce traditional brand values have all helped many manufacturers to withstand the tough trading conditions."
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