Creating a Win-Win Relationship by Maximizing Both Manufacturer Sales and Retailer Profits
Takashi KondoModel Development Group, Research & Development Office, Marketing Intelligence Division, INTAGE Inc., Japan
PRICE DESTRUCTION PLAGUES MANUFACTURERS AND RETAILERS ALIKE
Since 1990 the Japanese economy has been mired in a prolonged economic slump. In these difficult times, consumers have developed a critical eye for prices, and the phenomenon known in Japan as “price destruction” has advanced.
Price destruction has taken a particularly high toll in the market for FMCG. Figure 1depicts the change in price from 1992 to 2003 for four major FMCG categories....