Seems Unilever are not trying to con us


A few days ago I wrote a blog about the new Uniliver products such as Surf and Persil, complaining that they have just launched new super concentrated products and that at a local Pak N Save store where they used to special the product at prices ranging from $1.69 to $1.89 a pack and were promoting the new pack which has the same washing power as the old one, but their new special was 2 packs for $5, a premium of over 25%.

At the time I wrote the blog, I also contacted Unilever via their website and asked for clarification of this and an explanation. Initially I got a very nice email from their Consumer Relationship Consultant, ellaborating on the wonderful properties of the product but bypassing the question on price. I replied to say that I agree, their products are great products and that being more biodegradeable was an excellent feature. The quality was never in question and I have to say that their website is excellent, full of great information about how to use their products in a variety or circumstances.

I then got another response saying that they haven’t changed the product pricing from the old one to the new concentrate and inviting me to call them with any further questions. I did call the Consumer Relationship Consultant who was open and diplomatic, explaining that they have no control over any pricing other than setting the Recommended Retail Price (RRP). That is in fact true and I should have realised that to start with. It was in fact Pak N Save who were manipulating the pricing.

I’m relieved to hear that, its just a shame that the promo person in the supermarket didn’t understand the question to start with. So what was happening? Basically the Supermarket were hoodwinking their customers by in effect saying you could buy 1 of the old product for $1.89 or 2 of the new products, which are the exact equivalent of the old product from a use per pack perspective for more then 25% more.

This is not an unusual trick in a supermarket. They have lots of ways to make you think you are getting a bargain. A common one is to haphazardly throw tins or other containers into an end aisle dump bin to make it look like the products are on sale, but still charge normal full retail. This is all part of the tricks of the trade. On the other hand they also have their loss leaders, where they sell product at very low prices, often below their cost to the supermarket, to get people to come in and combine those with other more profitable products for the grocery spend.

In this case, they were just a bit silly and patronising of their customers who are often quite astute. Their timing was very poor and it has reflected poorly on them. On the other hand Pak N save are often cited as the best value for money grocery chain in the country. So the lesson is, be alert and watch for good deals and be aware of items that look good but aren’t. In today’s tough times, they would have done better to keep the price as it was and keep customers trust.

While this blog is starting to get a good following, I would love to get more readers and encouraging me to keep writing. If you feel that my blog is interesting I would be very grateful if you would vote for me in the category of best blog at the NetGuide Web Awards. Note that the form starts each site with www whereas my blog doesn’t and is of course https://luigicappel.wordpress.com.

Thanks so much for your support:)

Is Unilever trying to hoodwink us?


This afternoon my daughter came home and said she had an argument at Pak N Save, (the premium brand of NZ owner operated supermarkets in New Zealand under the Foodstuffs banner) with a promo person who was telling people about the new concentrated laundry detergents of Surf, Drive, Persil, Cold Power, Fab and Dynamo, all from Unilever, who according to their UK website are one of the most trusted brands in the UK and state that Always Working with Integrity is one of their key philosophies.

So you would think that their new ‘ small and mighty’ 2x concentrate products on all of their laundry detergents would offer great value. The pamphlet that arrived in our letterbox says that the product has been changed to a super concentrate that offers the same washing power in half the volume. The promo person at Pak N Save, said that the new product offered far better value because you could do the same amount of washing with half the amount of powder. My daughter didn’t have a problem with that, the problem she had was that if it was essentially the same washing power, doing the same amount of washing, why did the new product cost more?

Herein lies the problem and it was perhaps slick marketing at first, because your first reaction with new improved and concentrated would be better than the product it replaced and therefore worth a premium, which was pretty much what the promo person in the store was trying to get across, but that wasn’t what the printed material says. It says that it does exactly the same as the old product did, but with half the volume of powder. So from a benefit or performance perspective it is exactly the same result in a smaller box.

The smaller box has many benefits for the grocers and Unilever because it uses at least a third less packing and distribution costs are halved because it takes up half the space in the warehouses, trucks and supermarkets.

That’s all great, but the problem is that they are charging more! My daughter said that on special she used to pay $1.89 or sometimes $1.69 and the new promotion special was 2 for $5 yesterday. Which equates to $2.50 per box. That represents more than a 25% increase in cost to the consumer for a product that costs less to bring to market and does the same job as the old product.

Perhaps someone from Unilever would like to explain this. It appears to me to be a cynical attempt to hoodwink consumers out of their hard earned money, which in today’s economy would appear to be out of step with their stated values. It sounds to me like a rip off!

They don’t have a New Zealand web site, but this is their Australasian contact page if you would like to ask the question. I will be making contact with them and if I don’t get a good answer, I’ll be following my daughter away from the Unilever brands.

While this blog is starting to get a good following, I would love to get more readers and encouraging me to keep writing. If you feel that my blog is interesting I would be very grateful if you would vote for me in the category of best blog at the NetGuide Web Awards. Note that the form starts each site with www whereas my blog doesn’t and is of course https://luigicappel.wordpress.com.

Thanks so much for your support:)