The role of promotional products in distribution

Definition of claim products

Attractive products are those consumer goods whose cost makes consumers feel obligated to visit a specific store. This concept has been adopted by numerous distribution chains, which take advantage of their economic capacity to implement strategies that, in many cases, allow products to be sold below their production cost. The idea is that customers, attracted by these offers, buy other items that are not on promotion, thus generating a financial balance.

A turn in the promotion strategy

Traditionally, bread has been the star product in these commercial tactics. However, recent changes have led large stores to focus their attention on another popular food: chicken. This has raised concerns in the agricultural sector, especially among small producers, who are seeing their viability threatened.

Complaints from the agricultural sector

The Coordinator of Farmers and Livestock Organizations (COAG) has expressed concern about this practice. According to their estimates, the expansion of these strategies could compromise the future of approximately 5,000 farms. Eloy Ureña, representative of the COAG poultry sector, has stated that it is not acceptable to attract customers at the expense of harming producers. This organization, along with other agricultural unions, has been seeking to establish fair contracts that guarantee sustainable conditions for farmers.

Negotiation difficulties

Despite their efforts, the aggressive offers of the large distribution chains complicate the negotiations. COAG maintains that these tactics not only harm producers but also alter the perception of chicken prices in the market.

Perspectives of large chains

Supermarkets argue that what COAG considers a general strategy are actually temporary promotions. However, the organisation remains firm in its position, insisting that these offers negatively impact the efforts made by producers. They propose that, in order to reduce the price of chicken, distribution chains should reconsider their profit margins instead of putting pressure on farmers.

Consequences on the market

Meanwhile, the prices of products in homes continue to increase. The question remains in the air: Is the tactic of product claims really effective in the long term or does it create a vicious circle that harms all the actors involved?

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