Sunday, June 29, 2008

I think I have not been blogging in English for months, or maybe years...Just attended a sales meeting yesterday and it was Kellogg's product training as well. Delfi has taken the distributorship of Kellogg's in Malaysia. Hopefully I can get cheap cereal for breakfast everyday, of course not those short expiry cereal.

There is a guy, from Kellogg's, shared one of his experience with us. Sometimes, when you price a product with a lower price, it doesn't mean that the product can sell well. Humans are easily influenced by advertisement, this is the fact. Most of the brand owner prefer to set the price higher, and reserve some fund for advertising to increase the sales. When the sales grow, the push the price higher again, to get more fund for more advertising and in return there will be more sales. So, the consumers are suffering with all the price increase. Who should we blame for all these ? If the consumers are not easily influenced by advertisement, they can buy at cheaper price. On the other hand, those people who involve in advertising may lose their job. This is a cycle where I can't think of any solution.

Everyone in business want to make money. The manufacturers will try to make their packaging big, so that the products are visible on the shelf. They try to get as many facings as possible. The more facing you get, the higher chance where you product will be picked up. The manufacturers will produce as much as possible, way higher than the demand. You can always see there are a lot of products displaying on the shelf, especially those with less than one year expiry date. You may notice that when there is 10 units sold, there will be 15 units of new one be placed on the shelf. At the end of the day, you really think that they can sell all? I think most of them will be disposed after the expiry date. There is a lot of wastage. Can you imagine how much wastage we product a day? How much resources that we have wasted? However, if manufacturer A is not producing a lot, then it may lose to manufacturer B. Workers in manufacturer A may lose their job. Does it mean that we have to create more wastage to create more job opportunities?

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