This Ramadan is the first Ramadan we see to what extent the total purchase power is going down for all Egyptians across all social economic classes, during the month of highest food and beverage consumption.
Throughout the month of Ramadan 2017, we are tracking those changes in purchase behavior across different categories.
Starting Ramadan, we asked 100 Egyptian household decision makers, social economic classes B and C about the changes in purchase behavior of food and beverages such as Necessities, Dairy Products, and Carbohydrates.
This week we are sharing how their purchase behavior for Soda Drinks and Branded Juices is changing this Ramadan compared to the previous ones, and those were the results:
It seems that for the beverage category, Egyptians are either very brand loyal or in reality they don’t have much options for cheaper alternatives, shown from the 3% and 4% only who will switch.
However that doesn’t mean they are the least affected category; Soda drinks has the second highest percentage of decreased quantities purchased this Ramadan, after Cheese.
Regardless of the limited price variations for soda drinks, the market size of PepsiCo and CocaCola are dropping rapidly and consumers will soon adapt the their new and less soda consumption habits, which is already a habit the health conscious, calorie counting millennials are striving for. For those big brands, unhealthy and expensive is a huge red alert. So should they downsize? Increase their product line variations? or completely innovate with new beverages??
On the other hand, for Juices there is always the option to make it at home, or buy it non branded which 17% have done so compared to last Ramadan, an alert for brands Juhayna, Beity, Faragello, and Lamar.
So, in this post-inflation era, it’s time for Innovation!
Brand managers of the beverages category need more innovative strategies for managing the decline in terms of both the product portfolio and communication. Contact us to know how we can support this process.
Marketeers Plan for Ramadan 2017
Throughout Ramadan 2017, we will share with you quantitative and qualitative insights for how purchase behavior of Egyptian household decision makers has changed across the different food and beverage categories. The first three categories are already published:
- Cooking Oil
- Frozen Vegetables
- Frozen Meat & Poultry
- Soda Drinks
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