Low-Cost
LOW-COST RANGE
What is
a low-cost product ?
Low-cost products emerged as a result of the economic downturn, which prompted consumers to seek out the lowest prices when shopping. This buying trend urged manufacturers, producers and distributors to rethink their production methods so they could offer less costly products. Low-cost products therefore originated from cost-reduction studies, which sought to drive down costs in several areas, such as packaging, product formulas, raw materials, etc.
We have several options to reduce the cost of our own products, including packaging weight (85 g rather than 130 g) and product formulas. Low-cost products are therefore formulated to provide less protection than standard products.
WHY OFFER A LOW-COST RANGE?
Low-cost products currently account for 60% of sales. Their attractive prices draw large numbers of customers into shops. These products are therefore considered strategic since they generate high footfall in shopping aisles. Low-cost products can either be placed on bottom shelves or used for special offers. These offers refresh and brighten up shopping aisles, and draw consumers into stores.
OUR APPROACH TO LOW-COST PRODUCTS
Since our manufacturing process gives us full control over bottle blow moulding and product formulation, EXTRUPLAST is well positioned for maximum cost reduction. This allows us to offer low prices on all our product references. Our low-cost range is now so essential that it has become one of EXTRUPLAST’s strategic priorities.
We make every effort to achieve maximum cost-efficiency for these products.
Focus on
packaging :
Choosing the right packaging is an essential factor when defining a product range, since this can enable the finished product to be sold at a very low price. Our low-cost products are therefore packed in an 85-gram bottle, rather than a standard 130-gram bottle. This weight difference allows us to reduce the cost of raw materials. Future technical developments will seek to produce bottles with a preform weight of less than 85 grams.
FOCUS ON FORMULAS :
In addition to packaging gains, the formulas used for the low-cost range also help keep prices down as low as possible. EXTRUPLAST has chosen to reduce the level of protection for our low-cost ranges, which allows us to offer several protection levels from -5°C to -20°C.
LOW COST = LOW QUALITY?
Low-cost products are often wrongly assumed to be low-quality products. This is because people think that cost savings mean a less effective end product. The truth is that low-cost products include no accessories (like rigid handles, for example) and no marketing extras (simpler labels, less marketing on containers). However, the final product meets the claims and requirements requested for this type of product.