MANAGING in the

NEW WORLD

Pierre Chandon suggests that size of the product is one of the important yet probably the most ignored marketing tool thereby offering a great opportunity to increase sales, profits and customer satisfaction. Marketing managers do not question the sizes that they inherit while tweaking all other marketing variables. Another issue with respect to size is that they are seldom reduced. Usually, marketers want to increase the size as they believe the bigger size will generate more revenue and profits as they would absorb a higher percentage of the fixed cost.Pierre disagrees. He feels that going small is also a smart strategy as it assists in capturing ever increasing single household consumers and those with perishability,  storage, consumption control and budget concerns. The key concern should not be how much paper we sell but rather optimize the size of toilet paper for different market segments which would increase sales as well as improve margins. Its time we review our corporate strategy in terms of different combination of size and price to make more money by selling less. It certainly is something to think about.

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