Asian Trader Magazine – 12-25 May 2017

FEATURE

PRICE MARKED PACKS

26 ASIAN TRADER 12 MAY 2017 http://www.asiantrader.biz

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other products and maximise

sales (HIM).

“Price-marked packs give

shoppers confi dence in the

store’s pricing in comparison to

larger outlets, and they are

often perceived by shoppers as

a promotion in their own

right,” says Boulter.

She added: “When working

with retailers we always

recommend they pay close

attention to listings – in

particular we feel stocking

smaller pack sizes such as 40s

and 80s o ers lower

price marks and great

value.

“It’s also impor-

tant to give thought

to the location and

the demographics, for

example if your store

is in an a uent area

you may wish to stock

a more premium

product such as Yorkshire

Gold. Of course we’d always

recommend stocking the

best-seller, our much-loved

Yorkshire Tea.”

Yorkshire Tea

recently replaced

the famous

Yorkshire land-

scape on its

packaging with a

bespoke piece of

artwork featuring

The Gru alo’s

Child as part of the

brand’s ongoing

partnership with the

famous children’s

literary character and

the Woodland Trust.

Illustrated by Axel

Sche er, the artist behind The

Gru alo picture books, the

colourful new design was be

featured on 120,000 limited

edition 80 SKU Yorkshire Tea

packs, price-marked at £2.79.

Agreeing with Boulter is

Brett Grimshaw, Tetley’s

Business Sector Controller

Convenience and Out of Home:

“Price mark packs are most

important in volume selling

areas of the tea sector like every

day teas and decaf where they

are an excellent way to demon-

strate value and help stores

compete with larger retailers.”

He added: “For some time

now consumer tastes have been

changing and

although everyday

black teas and price

mark packs that o er

value still dominate

tea sales, shoppers

are trading up to

higher value teas and

price marks should be

used carefully at the

higher end of the

sector.”

In the key growth area of

green tea, Tetley’s price mark of

£1.49 is designed to help attract

interest and encourage

trial of newer higher

value teas, which

shoppers might not

have purchased before.

Added value

products like The

Blend Collection from

Tetley and Tetley

Super Green Teas o er

shoppers something

di erent.

“Shoppers see

Tetley Super Green

Teas as a good for me

purchase, a treat that they

would be happy to pay a little

extra for, so here, where the

volume sales are less, it’s

sensible to maintain the value

and present them in your tea

sections as something special

and high end,” says Grimshaw.

“This doesn’t mean that they

cannot be promoted in other

ways, but with something like

Tetley Super Green teas, which

is bang on trend and creating

real excitement in the market, a

price mark would not add extra

value.”

Dairy and snacks

“In categories such as Dairy,

PMPs can o er value reassur-

ance and drive an improved rate

of sale, notably when they

appear on well-known

reputable brands that instil

consumer confi dence, such as

Clover and Cathedral City,”

says Amy Fisher, Senior

Shopper Marketing Manager at

Dairy Crest.

Dairy Crest anticipates that

PMPs will continue to play an

KEY

DATA ON PMPS

82% of retailers say they must stock

PMP to stay competitive

83% of retailers say PMP sell faster than

non-PMP

59% of retailers say they are more likely to stock

NPD with a PMP

1/3 of shoppers believe PMP are cheaper

57% of shoppers want PMPs

source: HIM

important role in the conveni-

ence channel and this is further

maintained by recent IGD

Shopper Vista data.

“It’s important

however that retailers

use their knowledge of

their local consumer

base to determine the

appropriate blend of

price marked and

non-price marked

lines.”

Fisher adds: “For

example, in more a uent

areas where customer

demand can support a slight

convenience premium, price

marked lines may not always be

appropriate. Key is to ensure a

variety of products are o ered

at a price that is competitive

within the local market

context.”

Dairy Crest o ers both

non-marked and price-marked

options across its key brands,

such as Cathedral City, Clover

and Country Life, giving

retailers the option to choose

the best pricing strategy for

theirs and their consumers’

needs.

Crisps and snacks remain a

vital category within the

convenience sector, with 82%

of shoppers buying them on

impulse (HIM). What’s more,

£1 PMP ranges are growing at

+11% versus non-PMP formats

at 7.2 (Nielsen), which clearly

shows the way the category is

going.

One of the biggest manufac-

turers in this sector, KP Snacks,

says it is seeing the demand for

PMP formats remaining strong

as they provide shoppers with

much needed value from the

bigger eat they are looking for

and o set any potential price

perceptions.

“Our £1 PMP range is

out-performing the category

(+46%) and this success can be

attributed to the strength of our

brands as well as the right

format (Nielsen),” says Matt

Collins, Sales Director for

Convenience, Wholesale,

Discounters & Foodservice at

KP Snacks.

“Our 39p PMP singles range

is also growing ahead of the

overall format at +16% and

includes all-time favourites:

Helen Boulter

PMPs Feature1.indd 26 5/4/2017 8:26:47 AM