Strategy in Commodities

I was sitting in my office the other day when I had a “snack attack” mid-afternoon. I opened my desk drawer and noticed a package of gum. I figured it might keep my mouth busy and somewhat satisfy my immediate hunger. This triggered a thought about how different manufacturers of today’s product commodities might have a lot more to it than what meets the immediate eye.

What I am saying is that I think there are thousands and thousands of common goods that we buy every day or every week without much conscious thought and it is because we have made these products a part of our routine lives. While it may be routine for us, it is in no way routine for the manufacturer. Manufacturers are set up to develop products that can become “addictive” to the consumer and therefore increase product purchasing and consumption and in turn drive up their revenue. I am not suggesting that this is some kind of conspiracy, but what I am saying is there are several things that we do every day without much thought when it comes to buying certain products and goods, but the producers of these products are giving a lot of thought to developing these products.

Manufacturers spend big money on market and product research to find out what foods, clothing, drinks, or clothes seem to make a mark in society. They package the product carefully to win your attention over a similar product right next to it on the store shelf. Finally, they spend even more on advertising campaigns as they search for the right way to present the product. We are highly persuaded in our purchasing choices by what we hear and see in television, movies, magazines and radio stations. It seems that the most popular strategy right now is to us sex to sell. If you pay closer attention to some of the commercials on TV you will see an underlying meaning for just about any product, from shampoo, to chocolate, to minivans. These underlying meanings are likely causing viewers to think about how the product might affect them in their life or cause them to closely watch a commercial they might not have normal given much attention to. Whatever happened to purchasing a car based on it capacity to tow a boat, transport children, or provide good gas mileage?

I guess what I am trying to say is that there is a lot of strategic thinking going on and we may not be noticing it at all. So the next time you go to buy one of your usual commodities, think about what it is that made you buy that product and how did it look on the shelf in comparison to the other products. It might just trigger some interesting thoughts and conversations.

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