I will confess that I have a weakness, one that will likely not lead to my demise, but a weakness, nonetheless. I really like Pop-Tarts, whether it is the real deal from Kellogg’s or a wannabe store brand. Pop-Tarts are an inexpensive, tasty, and convenient breakfast I can grab between a workout (had to squeeze that in) and starting my workday. I realize that a 45-year-old man is probably not the profile of a typical Pop-Tarts consumer, but I am all too happy to be an outlier.
A recent shopping experience for Pop-Tarts reinforced the impact price can have on perceptions of a brand. As I was packing food to take to the office, I realized I was out of Pop-Tarts. No problem, as the snack bar in my building on campus carries single-serve packages of Pop-Tarts. However, I was shocked to learn that the price for a package of my breakfast vice was $1.49. A quick comparison: an 8-pack of Pop-Tarts retails for about $2.29 at the supermarket, and a convenience store near campus sells the same single-serve package sold at the snack bar for 99 cents.
I questioned myself as to whether I let this be an issue because I was acting like a little boy pitching a fit because his Pop-Tarts cost too much. No, I do not think that is the case. It seems to me that pricing a product 50% higher than a convenience store is a wee bit too high. A bigger issue is looming: the perception that the foodservice vendor is taking advantage of students (and professors) because it has a somewhat captive audience has negatively affected my view of the foodservice company across the board. Now, buying a snack or meal on campus is not even a last resort. I simply refuse to do it because I would be supporting a brand whose pricing certainly does not provide value to me!
The point of my Pop-Tarts story is to remember that all of your marketing decisions communicate, not just your communications program. In this case, a selling price that is significantly higher than other options sends a negative message about the seller. It could just as easily be a product with an instruction manual that is difficult to understand or a store with inconsistent or inconvenient store hours. They all have the same effect: damage to brand equity by way of hurting brand associations that comprise brand image.
I can’t help but wonder if you took into account the price variation charged by the distributor. Large chains force the price down while a small convenience store at a college campus doesn’t have that luxury and is paying far more per package.
Speaking of packaging, it makes up far more of the costs than the actual treat inside. While you may be charged some convenience pricing, which I believe anyone in the marketing industry can agree is fair, you probably aren’t getting gouged the way you think you are.
Just some food for thought.
thanks
Interesting points, and that would certainly explain a price difference. The foodservice is run by a large, national company with presumably a decent amount of buying clout. In contrast, there is an independently operated c-store on campus that prices much more competitively with the market than the foodservice’s outlets.
Thanks for taking time to share your thoughts.