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Download e-book for kindle: Beyond the Low Cost Business: Rethinking the Business Model by Josep Francesc Valls Giménez

By Josep Francesc Valls Giménez

ISBN-10: 1137277521

ISBN-13: 9781137277527

Will the second one decade of the twenty first Century see the tip of the reasonably cheap phenomenon? it is going to on no account be effortless for eu shoppers to prevent challenging the low costs that they've develop into so used to over the former ten
years. yet over the top efforts through many businesses to deliver costs down may perhaps sound the demise knell for extraordinarily low costs, as they'll easily develop into unsustainable in lots of sectors, with charges forcing them up. evidently there will
always be clients who wish decrease costs and an individual must meet the call for, yet emphasis on promoting on the lowest rate attainable may perhaps grow to be very costly.


Clients are continually difficult decrease costs on the time of every buy and firms can basically react by means of lowering expenses. This quantity exhibits that the single technique to do that, is to reinvent the enterprise version. New shoppers, new pricing, new manufacturers, new strategies.

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3). 2 Towards own brands Own brands have gained ground compared to name brands. 20, Spain’s Observatory of Food Consumption and Distribution shows how a series of attributes associated with own brands evolved between 2005 and 2009 and 2009 and 2011. 20 2009 Flavour Packaging 2005 Name brands versus own brands Source: Observatory of Consumption and Food Distribution, March 2011. 4), quality was valued highest by people who were 56 to 65; packaging, by those from 36 to 55, and labelling by those from 36 to 45.

3 Case study: Beers A beer we shall call Exquisita Gama Premium lost a large number of customers who were after low prices, but the brewery managed to hold on to them through its product Exquisita Gama Medium. 16 shows how this happened not only in the middle of a financial crisis, 2008–2009, but also prior to the crisis, in 2005–2006. 16 Medium 2nd Quarter 09 1st Quarter 09 4th Quarter 09 3rd Quarter 09 Exquisita Gama Premium Consumers move from Exquisita Gama Premium to Exquisita Gama Source: Kantar Worldpanel.

Over the last decade, a set of new factors has come into play, changing the traditional concept of price sensitivity, leading most consumers towards a new relationship, to wit: pricing for value (De Jaime Eslava, 2007). This new paradigm means a new ordering of criteria in consumers’ minds when they buy something, such that quality-linked factors (involvement, innovativeness and brand loyalty) and price-linked factors (low prices) break the old rules, spreading the paradigm throughout the Status Consumption Scale 42 Beyond the Low-Cost Business and giving rise to hybrid consumers.

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Beyond the Low Cost Business: Rethinking the Business Model by Josep Francesc Valls Giménez

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