Sunday, March 21, 2010

Bringing back the old favors change to the new?

Finance yahoo (by way of TheStreet) talks about brand loyalty and innovation.

The setup was WalMart bringing back some brands that it had previously removed from its shelves:

Earlier this month, Wal-Mart returned Clorox's (CLX) Glad bags and Pactiv's (PTV) Hefty bags to its shelves after cutting them in February and carrying only S.C. Johnson and Sons' Ziploc bags and its Great Value in-house brand. Wal-Mart says the Hefty and Glad bags and hundreds of other items were taken out of the mix as part of a remodeling effort, but the retailer replaced them when it became clear it wasn't losing only a $4.99 single-item sale, but entire shopping excursions by people seeking specific brands.

Somehow "innovation", which is about CHANGING the way we live, arose:

"The whole idea of efficient assortment and giving more shelf space to the brands shoppers are looking for the most tends to improve visibility of existing and new items," says Jennifer Chelune, a Procter & Gamble spokeswoman. "It favors companies that innovate."

IPBiz wonders about the logic of "how" giving shelf-space to well-known, existent brands "favors" companies that innovate? The action might seem to favor maintenance of the status quo.


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