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Ripping the Consumer Off via Rebranding
 
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Mon, 6 Jul 2015   ||   Nigeria, Lagos
 

OPINION:

By OSIOSA OBA-OSAGIODUWA

Since 2004 to date, there has been a drastic change in the manufacturing sector of the Nigerian economy. Manufacturers of most household items have been introducing new products and re-launching old ones to strategically position themselves for better sales. Most of these involve changes in brand logos, brand names, et cetera, and at times it entails a total change in marketing strategy and in the advertising theme. Often, all these manoeuvres are superficial in order to mislead the unguided end user.

“In an era of super-size and SUVs, some goods are actually getting smaller. Manufacturers are quietly trimming the content of their packaged products - from yogurt and ice-cream to laundry detergent and diapers - and often they aren’t dropping prices to match,” according to Time Magazine.

This tactic is not new, but because of the sagging economy and more careful cost conscious consumers, many manufacturers are now downsizing their products more aggressively to maintain their profit margin. The unfortunate thing is that, most consumers do not notice that weights and measures have changed a few grams or metres. The aftermath result is that consumers end up spending more for less.

A clear example can be seen from most of our brewers, who are involved in re-branding most of their existing products in the guise of repositioning to fit new market trends. In their various rebranding, what do we notice? smaller but more attractive containers or bottles. What is the implication? The content has been automatically affected by the smallness of the containers. Some re-launch products that were practically not acceptable to the consumer when they first came out.

Apart from a particular malt drink that slightly increased content, others reduced content by systematically and attractively reducing the container. Consumers therefore have less quantity, may be same quality, and same price, or at times pay higher price for less quantity. What a rip-off!

There is no exception with soap and detergent manufacturers. You notice in this industry the same soap, may be also, same quality, coming in smaller form being launched and re-launched in order to deceive the final end user. The toothpaste manufacturers are also involved in this unwholesome act. Toothpaste that should have been forgotten is re-launched into the market, even at a higher price. The juice manufacturers also share in this chicanery. Attractive fruit juices come in different attractive packs with less content. The unsuspecting end user never cares to measure or weigh it to confirm its content.

What about the tobacco industry? Cigarette smokers can tell that a stick of cigarette burns faster than what it is used to be; although, this can pardonable because it might be a way of discouraging people from smoking.

Our electronics these days come with attractive scientific devices that most people cannot operate efficiently. A slight surge in the source of power supply burns it out. Who is at a loss? It is the end user. Are Nigerians seeing what this writer is seeing?

The most annoying of this trickery is perpetrated by our motor vehicle manufacturers. New models of cars are sleeky and attractive to most people. They are faster than the old models, with more electronically controlled devices and, above all, more expensive. But have you taken note that they are less safe?

In the 70s and 80s, when there was head-to-head collision, drivers and passengers could still be safe because then-cars were made of steel. Today, what do we have? A slight collision of cars results in the car being squeezed like a can of juice, resulting in the disablement or death of the occupants. Why? Because modern vehicles are mostly made of more fibre in order to increase its speed and reduce weight -- the lighter a car is, the faster it moves and burns more fuel. These cars are more expensive, but less safe. We all know that steel is more expensive and safer than fibre.

At the end of the year, manufacturers declare fat profits after tax at the expense of the unprotected consumers. You then see shareholders smiling to their banks, and in turn use the supposed profits gained in buying same product at which they are short-changed. The irony in life, you may say.

For the manufacturers, it is good to boost sales and reposition your brands in the eyes of the consumers in this ever-widening competitive market, but making consumers an experimental tool to testing the viability of your products by exploiting their ignorance is not fair.

“Consumers really don’t have in their minds that they have to check the net weight or net count every time they buy something. It’s perfect consumer scam when consumers don’t know that they have been taken in,” said Edgar Dworsky, founder of Consumers Advocacy website.

Manufacturers, consumers are becoming more aware of your tricks. All we are saying is be careful, otherwise your brands will be regarded as products that short-change consumers. I think you can guess the implication.

 

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