Trade-Up / Trade-Down

Many FMCG plans talk about premiumisation, but the numbers often do not prove that shoppers are actually trading up. A premium pack can recruit valuable new occasions, but it can also cannibalise another premium product. A value pack can defend volume, but it can also teach shoppers to trade down. Experienced revenue growth managers need to know the direction of shopper movement: who moved, from what, to what, and whether the movement increased or reduced value and profit for the supplier and the retailer.