But usually that's not the case though truthful. Usually when a new product hits the supermarket they come up with this promotional price, spend a lot on marketing, spend on store promotions and store sampling and so on which leads to volume increase by compromising on margins.
Iam still scratching my head how A2 managed to do the most uncommon thing in FMCG business which is going big on market share by keeping the premium milk status intact.
I will give you another example my local Coles started A2 3litres when I saw that I was very excited as we consume lot of milk in our household and I was expecting a 3litre should save me a 50 cents atleast but that's not to be the case 2ltr is 5$ in Coles and 3ltr is $7.50.
IMO the in the brand awareness campaign I think they are letting the consumers know the benefits of A2 and telling them that's y we are a premium priced milk.
AS a finance and marketing student this could be a wonderful case study... going for a kill in the market share with out compromising the margins only A2 can do it. Because consumers are willing to pay for quality and benefits A2 provides.
Cheers
SS
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