A Conversation for Ask h2g2

A Failure of Market Economics

Post 21

U14993989

Sounds like a stick-up ...


A Failure of Market Economics

Post 22

Dogster

The place near where I work has plain choc bounties! And yes, I've had quite a few since I got here. Actually, not had too much difficulty finding them in London, it's probably about 50/50.

My one that I pick up whenever I see it is raisin wheats - for some reason nobody else seems to like this cereal. I have heard it described as rabbit poos wrapped up in twigs, that might be something to do with it.


A Failure of Market Economics

Post 23

Edward the Bonobo - Gone.

So we everyone who likes plain chocolate Bountys is able to find them...apart from me? smiley - cry


A Failure of Market Economics

Post 24

Gnomon - time to move on

The title of "Bounty hunter" suits you.


A Failure of Market Economics

Post 25

Edward the Bonobo - Gone.

smiley - groan


A Failure of Market Economics

Post 26

Edward the Bonobo - Gone.

Speaking of cereals...Grape Nuts are a lot more common than they used to be. I still have to buy them in bulk, mind, 'cause the kids wire into them like there's no tomorrow. Expensive, too!

Warburton's white sliced, ditto. It seams to be toasted and et before I've even got it in the house.


A Failure of Market Economics

Post 27

Xanatic

I´d say you always find more plain chocolate bountys than dark chocolate bountys. Despite the latter tasting better. You´ll just have to stock up on them next time you´re in "scandiwegia".


A Failure of Market Economics

Post 28

Hoovooloo


If I may weigh in here:

This isn't a failure of market economics. It's a deliberate ploy, one of many.

During my time working for one of the major chocolate manufacturers, I had several of these tactics explained to me by someone who knew more about marketing than this simple engineer could quite get his head round.

For any chocolate company, there will be a number of lines that you'll be able to get *everywhere*. Wherever their product appears, you'll be guaranteed these few lines. Mars, Snickers, Twix, Galaxy, Dairy Milk. These things are rolling off the production lines 24/7 to meet demand.

Then there are the lines you'll probably get - the things they make less of and release in batches to the cash n carrys. They're not made all the time.

And there are lines that get made even less often, and have fairly limited distribution. My personal favourite here is Fry's Peppermint and Fry's Orange Cremes. I LOVE those things, and I know of precisely one shop where I can get them.

Now - at some point, someone explained to me how this is all a cunning plan about maintaining brand awareness, creating artificial shortages and increasing the consumer's desire for what they think of as something special and rare.

I didn't really get it, though. In my naivete, I thought that if every shop I went in had some Orange Cremes, every shop I went in would have the chance I would buy one. Whereas what actually happens is I sometimes make a special trip to the one shop and buy three or four. smiley - shrug

Similarly, the whole thing of running a line just long enough that you start buying it regularly is a specific trick.

For instance - many years ago, Cadbury used to make a bar called the Aztec. It was a bit like a Mars bar. Then, "to celebrate the millenium", they started making the "Aztec 2000". How nice of them. Why would they do that? Here's why.

Joe Bloggs the newsagent goes to the cash n carry. He usually buys ten boxes of Mars bars. Today, he sees a big promotion from Cadburys in the store pushing their new Aztec 2000. He buys a box. They go like hot cakes. The people buying them are buying them instead of Mars bars. Next week, he buys six boxes, but only five of Mars bars. Word has got round, and he sells loads. The next week, he buys only one box of Mars bars (he's not run out) and stocks up BIG on the Aztecs.

What effect is this having? Well, the Cash and Carry have cancelled their order for Mars bars - this is being repeated up and down the country. Nobody is buying Mars bars this month. Mars have a shedload of inventory on their hands they can't shift, so they have to scale back production. This is expensive, because it costs almost as much to run a production line at 2 tonnes a week as it does to run it at 20 tonnes a week. They recalibrate everything to run slower, lay off contract packing staff, rest drivers, and generally gear up for slower production...

And at that point, Cadbury pull the plug on the Aztec. Joe Bloggs goes to the Cash n Carry, but there are no Aztec bars. He has to buy Mars instead, but there aren't enough. Now the C&C are scream at Mars that they're running out of product, customers aren't satisfied. Mars have to ratchet their production back up because orders are going unfulfilled. They recalibrate everything again, get the drivers off rest leave, rehire contract packers, and start shifting their old inventory at last, that's of course if it hasn't gone out of date.

Of course, Mars are doing exactly the same thing back at Cadbury, and they're both doing and being done by Nestle.

Complicated business, marketing. But one thing an artificial scarcity is NOT, is a failure of market economics.


A Failure of Market Economics

Post 29

Dogster

Xanatic, I think 'plain' means dark compared to 'milk'. Unless somewhere there's a properly dark one that I haven't tried?!


A Failure of Market Economics

Post 30

Xanatic

Are we talking the Bounty that comes in a blue or red wrapper?


A Failure of Market Economics

Post 31

HonestIago

Are we talking the red ones when we say plain or the blue ones? I see the blues fairly regularly but the reds only rarely. I love Bounties but too much coconut makes me

For me it's Paprika Walkers Max: a god amongst crisps. The shop around the corner from me started selling them so I bought an entire box.


A Failure of Market Economics

Post 32

HonestIago

smiley - simpost Xanatic


A Failure of Market Economics

Post 33

Edward the Bonobo - Gone.

>>Complicated business, marketing. But one thing an artificial scarcity is NOT, is a failure of market economics.


Well, agreed. It's not failing the supplier. But it *is* failing at least one consumer.


A Failure of Market Economics

Post 34

Edward the Bonobo - Gone.

I mean...on a wider theme, the world oil market isn't failing oil producers but it is failing those who live in areas near sea level. smiley - shrug


A Failure of Market Economics

Post 35

Xanatic

We still haven´t established which kind of Bounty we´re talking about. Plain or dark?


A Failure of Market Economics

Post 36

Edward the Bonobo - Gone.

Plain = Dark.

The kind with red wrappers.

Not blue = milk.


A Failure of Market Economics

Post 37

Icy North

plain = dark = red wrapper
milk = light = blue wrapper

http://static.guim.co.uk/sys-images/Guardian/Pix/pictures/2009/7/9/1247142379564/bounty-001.jpg


A Failure of Market Economics

Post 38

Icy North

smiley - simpost


A Failure of Market Economics

Post 39

Xanatic

I see. Yes they are harder to find. I´m also hoping someone will bring back Daim Mint, those were really good.


A Failure of Market Economics

Post 40

Edward the Bonobo - Gone.

Mint Cracknell, anyone?

As opposed to...

http://www.youtube.com/watch?v=n5nWR4qdyRs


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