Nov

28

 An article I read recently would seem to have significance for producers of branded products like the bottlers, and P and G, and the bond market. What's happening on the internet seems to be spilling over into all areas with price competition increasing.

Kurt Specht comments: 

Very true, but another big issue right now for all consumer goods producers is staying ahead of commodity inflation and figuring out how much to pass along to consumers in the form of price increases and package size reductions.

Steve Ellison adds: 

In his book Trends 2000, Gerald Celente said that consumers turn away from brand names periodically, but they always come back. He noted a tendency for brand names to be out of favor in the years ending in 0 to 2 each decade, which have often coincided with recessions (the Senator has noted that those years have often not been kind to the stock market). Mr. Celente attributed this regularity to a "10-year corporate spending cycle."

Pitt T. Maner II adds: 

Chlorox would seem to be one of those companies that has had to work for decades to keep market share against generics (bleach). They appear to maintain their higher price per gallon through strong branding/advertising. Perhaps the need for the services and the money spent on strong marketing and advertising companies increases when generics and cheaper alternatives threaten. Or when one is running for election.


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