"Good For You" Health Products Are Not in Demand
October 20, 2010 | In: Uncategorized
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Today’s Economic Times has a report on how despite health and wellness being the most talked-about fad, there is no dip in demand for sugary or fried, salty foods. The report says that, while the consumer is showing more trends of being health and wellness conscious and there certainly is a lot of talk, she is not walking the talk that much.
This really isn’t surprising. In fact the report gives it away if you read the entire report. Read this:
So, while PepsiCo talks about portfolio transformation to good for you products and is pulling out sugary drinks from schools, and has Tropicana juices, Gatorade sports drink and Nimbooz nimbu pani in its portfolio, the maximum marketing and ad spends of its roughly Rs 100-crore ad spends are directed to its fizzy drinks Pepsi, Mountain Dew, 7-Up and Mirinda.
To my mind the obvious reason is that the companies have a huge ad spend on bottled cola, fries and sugared water. I guess the operating margins would be higher for them with such products.
The Marketers crib that the consumer is not walking the talk when it comes to health food. But I think the guys who care about their health would stick to unadulterated, simple, home made food. And this means no profits for the big, well paid Marketers of the big companies.
The reason the report interests me is that a similar thing happens in the financial services industry. The “Good for You” financial products (like ETF) is being talked about, but nobody is walking the talk!
The “Good for You” products are not pushed by financial advisors who have more interest in making commission based recommendations.
Would you agree?
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