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Food sector players: Only aggressive or even desperate promotions can save us now
In a year of crisis, when consumer budgets are low, and inexpensive products are gaining ground, major players in the food sector have turned to aggressive, or even desperate promotions to meet their sales targets, raise market shares, and some, merely to survive.
Most local companies in the food sector said that those who lack a promotion-based marketing strategy this year will stand a poor chance of overcoming the crisis. “Preservation and an upward evolution in times of crisis involve substantial budgets to promote and sell less expensively and good strategies,” said Raul Ciurtin, President of the Albalact Alba Iulia dairy producer.
Ciurtin said that only a few large players will continue to benefit from the market’s growth potential. “All the small and medium-sixed processors will exit the market, because they cannot handle the pressure generated by low prices and the low value of consumption,” Albalact’s President added.
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“There are two types of promotions at present: “desperation” ones, when companies have no economic calculations, only a need to sell, hoping for a miracle, and one of “calculated” producers, who anticipate future evolutions,” the Vice President of the Angst cold meats producer, Stefan Padure, said.
Read more in Business Standard
Autor:
Dragos Serban
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