From PR win to bargain bin in five days: How Vegemite’s Blend 17 is putting the fast into FMCG
Readers with a long memory, or indeed a short memory, may recall that last week Vegemite was clocking up the editorial column inches with its new premium edition Blend 17.
So Dr Mumbo is sorry to report that this “bolder, richer” Vegemite has failed to retain its premium price point, despite its shiny gold packaging.
By the weekend, Dr Mumbo’s spy in Coles’ Hornsby outlet in NSW had already found Vegemite Blend 17 on special, reduced from $7 to $5.
Presumably someone figured a round number like 25% off is more relatable than 28.5% off. So what.
I’m sorry but this is rubbish.
It is standard when launching a new product to run price promotion within the first weeks of launch. Sometimes it’s built into the negotiations of getting the product on shelf in the first place, for a variety of reasons. The depth of discounting by Coles is aligned with their overall product and category strategy, not reflective of the performance of the vegemite product to date.
In addition, it’s very rare to secure one of those ‘off location’ displays without price promotion.
While I suspect the demise will happen, give the product a quarter and then let’s see.
I totally agree with Renee, no marketer or company would want to put a new product on promotion 5 days after launch, erroding the brand and costing the company promotional funds. This will be a directive from a retailer as part of the ranging conditions.
I may be young, reclusive, with an ultra disposition of resenting corporate supermarket so called specials but even at $5 for 150grams it’s a rip off unless the new recipie is laced with bourbon or whisky, the uneducated consumer is paying for recyclable packaging as usual or off location promotional floor space.
But this one comes in a box! It’s helping keep recycling jobs in Australia.
Saw today in Coles (22/11/17) that a jar is now $1. I bought two jars at full price when it first came out thinking it’ll sell out quick.
Bought a dozen at Reservior Coles.
49 cents each last week. Cheaper than everyday vegemite.
I bought blend 17 at Bodero Dandenong plaza for $1 a jar.