In classic marketing courses, we are told to build our brand. We are told to create the kind of brand image that consumers want to see. We are told that, with right brand image, we can charge a higher price, and customers will gladly pay it. After all, brand imagery is extremely powerful and can entice customers to buy what is being sold.

This kind of classic marketing approach has helped to build many successful brands. And, it can often work quite well. Until it doesn’t. When customers are at a point where they just don’t have the money, they may have a very favorable perception of the brand, but they cannot afford to buy it. In these situations, despite the powerful brand image, the sale is not likely to happen. In other words, when customers are running out of money, they may like and want the brand, however, they may not be able to buy it if it is too costly.

We are seeing this happen in the aftermath of recent high inflation. The January 18, 2025 Wall Street Journal article “Food Sellers Push to Raise Sales Volume” by Jennifer Williams tells how packaged-food-and-snack companies are trying to increase volume rather than raise prices. I’ll point out that consumer packaged goods companies typically have considerable expertise in brand building. Yet, as the article explains, these food sellers are striving for higher volume and not increasing most prices. The article says, “Volume growth is even more critical when consumers are stretched.” And, in today’s environment, many consumers are stretched.

As the article points out, some consumer food companies are raising a few prices while holding the line on others. For example, according to the article, “Conagra Brands is raising prices on its Swiss Miss hot cocoa and Duncan Hines products to offset higher expenses for cocoa and sugar. But the company is holding the line on other prices.”

So, in today’s environment, brand oriented consumer foods companies are trying to hold down prices. These kinds of companies are adept at marketing powerful brands. Yet, these companies recognize that many consumers have been struggling financially in today’s times. Consequently, these consumers cannot pay higher prices merely because of brand imagery. Thus, the consumer-snack-and-food companies are trying not to raise prices, even though classic marketing theory encourages brand building accompanied by relatively higher prices. Instead, the companies are adapting to the current economic climate and recognizing that higher prices may not be the best alternative at this time.