Kraft Foods helps retailers to boost sales
Hot on the heels of the popular 50p price marked packs (PMP) for top countlines last year, Kraft Foods is launching packs for Cadbury Picnic and Cadbury Chocos. This extension of PMPs on the nation’s favourite chocolate brand comes as new research shows that they not only improve the price image of a convenience store in the eye of the consumer but also that the majority of retailers believe they sell faster than standard packs, as well as helping to drive footfall to stores. The on-pack promotion will see the packs marked at 50p, available from 1 August. Protecting retailer margins while running PMPs is important to Kraft Foods and the business works with its customers to ensure that retailers can offer competitive prices on the most popular chocolate countlines.
PMPs are used to help improve the rate of sale, for example, Kraft Foods has seen a 9% increase in Rate of Sale for Cadbury Daily Milk 49g when 50p PMPs have been in store, since April last year. Other countlines which launched 50p PMPs last year were Cadbury Twirl, Cadbury Crunchie and Cadbury Wispa. The leading manufacturer anticipates a similar sales boost for retailers with the two new additions to the range.
Compelling research from HIM shows that 76% of shoppers buy PMPs some/most of the time. The research also shows that awareness of PMPs is high with the majority of shoppers believing them to be a promotion, as well as feeling confident they are not being overcharged when purchasing PMPs. An increase in impulse purchases appears to be another benefit; with 48% of consumers said they would be encouraged to switch from their normal brand in order to purchase a PMP. The research also shows the longevity in PMP, with the majority of consumers reporting that they think they are likely to continue purchasing the same amount of PMPs and over 20% think they may purchase more.
Lastly, PMPs also appear to be time saving, particularly for independent retailers, who find the products useful as they do not need labelling and can go straight on shelf. Susan Nash, trade communications manager at Kraft Foods, comments, “The latest price marked pack promotion running on a further two Cadbury branded countlines will ensure that retailers can continue to make the most of their confectionery sales, especially as research shows that almost half of shoppers say that a price marked pack would encourage them to switch brands. We hope that the popularity of PMPs will help to increase distribution within the category and in-turn drive value sales.” Tom Fender, managing director at HIM UK, comments, “In an economic climate when many companies are launching PMPs this research illustrates how Kraft Foods is genuinely listening to and supporting its retailers, helping to boost sales and improve price perceptions with extensions of PMP countlines.”