Brand Loyalty

Interesting article on consumers trading down Here.

"Bounty, is seeing some of the steepest sales declines in its history"

Wow what a terrible and misleading article. Reminds me of when I read about how the total number of something has increased or decreased by a large amount, but in percentage terms its insignificant. I see it all the time when people talk about the "DOW." "Oh my, the DOW is down 300 points." Well when the DOW was at 12,000, 300 points was nothing. Today, with the DOW at 6,500, 300 points is much more significant.

Back to the article, notice the only numbers they use in the whole article is the % decline in the value of the stock, not the % decline in sales of Bounty etc. I'm betting (literally with my own investments now) that the decline is insignificant, maybe 5-10%, which is probably standard across the board. Now that may very well be "the steepest sales decline in its history," especially in total units because obviously with the growth of the population they are selling a lot more units. When it comes to TP and napkins, buying the cheapest ones doesn't work because they're so cheap that you end up using more. Same with the "heavy duty" batteries that use chloride instead of alkaline. People aren't going to buy knock off ketchup either, at least not a significant amount.


The majority of people will:
Drink Coke,
Eat Cheerios
Eat Heinz Ketchup
Eat Campbell's Soup
Trust Duracell Batteries
Use Charmin TP
Ship Packages via FedEx
Service Otis Elevators
Use Kleenex Tissues


Things that are easily traded down on or have no brand loyalty:
Electronics of any kind (Except maybe Intel processors)

However, I'm glad to see articles like this if they help drive the stock prices lower so I can add to my positions.