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Price pressures keeps Australians wise on spending: report
Two in five a lower price is a top indicator of value when buying food or drinks.
Consumers are laser-focused on prices as 42% of Australians believe that a lower price is a top indicator of value when buying food or drinks, a report by Mintel revealed.
This means consumers can look beyond their favourite brand names to make savings with many consumers willing to make a switch to a cheaper brand the report said.
“In Australia, 30% of consumers would buy more store brands to save money on food/
drink. For retailers, there is an opportunity to help consumers treat themselves while being kind to already stretched purse strings,” Mintel said.
An example is the launch of the Australian retailer, Coles. ‘Indulgent’ mousse range. The range features delectable flavours such as Mixed Berries & Belgian Chocolate Mousse, Alphonso Mango Mousse and Salted Caramel & Belgian Chocolate Mousse. Each is priced at $4 for four mousses. Mintel said the 1 dollar per mousse price point is helping drive competitive purchase intent for the range.
44% of Australian consumers say they would likely/definitely purchase the range, compared to 43% of Australian consumers who say they would likely/ definitely purchase products from the mousse category overall.
“FMCG players (whether brands, packaging or ingredient companies) can learn from what elements of this range are appealing to consumers. In this case, packaging with premium cues alongside a supermarket brand logo is delivering indulgence that signals quality and monetary value,” Mintel said.
