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Tempo, Tempo – Price War in the tissue business?

December 14, 2014 10:40 am / Leave a Comment / Ingo

This week-end I went to our local grocery store to buy the usual food for the next days. Additionally I needed some tissues and the most common brand in Germany is “Tempo” When I reached the shelf I was delighted to see that the big package (30×10 tissues) had a red price tag, which means “Promotion!!!”.

 

Foto-11

However I was surprised to see, that the mentioned big package had the exact same price as the small package with half the size (15×10 tissues) –> this meant 50% Discount. Well I am not an expert in the tissue market, but such a big discount? I can only image that the no-name products have gathered quite some market share and Tempo is fighting to survive. As a pricer I thought: Maybe the customers would have bought even with a 30% discount – Are they leaving money on the table?

And my next thought was: Who is going to buy the small package?

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