Strategy Review

This blog's purpose is to create a dialog on major strategic issues, evaluating strategies and providing insight into how to enhance our abilities to think,make decisions and lead strategically. It will focus on companies, governments and organizations of all sizes globally.

Saturday, March 22, 2008

The TOILET PAPER INFLATIONARY INDEX...

We all know that gasoline, heating oil, measuring liquids, meat and poultry are regulated by law, a gallon is a gallon, a pound is a pound and so on. So, Exxon Mobil, can't make you fell as though the price has not increased by just giving you less for the same price..The same is true of the butchers, the dairy companies, and many other regulated consumer markets.

But Proctor Gamble, one of the best managed, highly admired companies and their key consumer packaging companies, like Lever Brothers, Johnson and Johnson, Kellogg are able to create the image that they have not raised prices, by reducing the quantity in the package and keeping the price the same.

Judge for yourself---Just look at the size of the regular toilet paper, paper towel package and you will visually see inflation at work. The same is true of over the counter medicine, like aspirin, vitamins etc. or the amount of cereal you get in a package. In most cases the package is the same or even big, with the headline: family, giant size, but when you open up and look inside it is only three quarters to half full.

This is inflation and it is never discussed or used to show that prices are increasing. In fact, it also provides the wrong impression about sales, since consumers must buy more packages to just keep up with their needs it gives the impression that sales are increasing, when they or not. Further, it contributes to the "garbage/ land fill" problem since there are more paper or plastic packages being thrown away every day.

This is just another indication that the country has a major inflation problem that is not being addressed. It supports the issue I raised in an early blog about the UNITED STATES GOVERNMENT and INDUSTRY ORGANIZATIONS...having elected to GIVE US FEEL GOOD NUMBERS... so that we don't worry and they can work on other problems, likes solving the banking and falling dollar crises.

CREDIBILITY is the key any successful society and leaders. I strongly hope that everyone will start to be honest and describe reality, even if it is not popular...Leaders must be honest... this involves those who sell to consumers...when the price is going up... don't make the consumer feel it is not...keep the same package and charge more...or tell them that they are getting less for the same price.

Let's be truthful. We must stop deceiving the public, but most of all we must stop deceiving ourselves. This is the only way that we can focus and solve all of the major problems facing us.


Bill Rothschild, CEO Rothschild Strategies Unlimited, LLC and author of the global best seller:
"The Secret to GE's Success"...available on AMAZON... and "Putting It All Together- a guide to strategic thinking" that focuses on creating realistic and viable strategies and implementation plans. (available on http://www.strategyleader.com/.

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