PMPs let consumers know they are not being ripped off, therefore helping build trust in their local convenience store
Research shows that PMPs offer a number of advantages for shoppers and retailers alike, and therefore are an important part of a store’s range.
For shoppers, PMPs offer reassurance that they are not being overcharged, while contributing to an overall positive price perception.
“The perception of improved value, speed of sales, convenience and customer trust make stocking PMPs a great option – with a fifth of shoppers even going so far as to say they would choose a particular convenience store if they knew it stocked PMP products,” comments Susan Nash, Trade Communications Manager at Mondelēz International.
Mondelēz now offers its widest ever range of PMPs across all categories, which includes a number of bestsellers, to allow retailers to help stand-out on shelf with the convenience of clear pricing.
Alongside its Cadbury 55p PMP singles bars and £1 PMP tablets, Mondelez introduced two new price-marked packs to the core range in 2018. £1 chocolate bags (95g) are now available across bestsellers in the segment including Cadbury Dairy Milk Giant Buttons, Cadbury Dairy Milk Caramel Nibbles, Cadbury Twirl Bites, Cadbury Bitsa Wispa and Terry’s Chocolate Orange Minis. Retailers can also take advantage of PMPs on smaller packs through the 25p PMP singles available for Cadbury Dairy Milk Freddo, Cadbury Dairy Milk Buttons, Cadbury Chomp and Cadbury Fudge.
Cadbury’s heritage brand Bournville launched a PMP variant in January, with a pack design that has been specially designed to ensure stand-out on shelf.
The nation’s favourite chocolate (Total Chocolate) and the world’s number one biscuit (Euromonitor) are also aiming to help retailers drive sales with the recent launch of Cadbury Dairy Milk Oreo Sandwich in a new £1 price-marked pack. The Cadbury Dairy Milk Oreo Sandwich has already driven £3.2M RSV (Nielsen) sales since its launch in February 2018 – and the PMP format is building on this success.
Cadbury Darkmilk expanded into single format in January this year and is offering retailers the option of a 55p PMP format too.
In candy, Trebor Softmints and Trebor Extra Strong roll packs are available as a 50p PMP, and the recently launched sugar-free Trebor Cool Drops are available in a 50p PMP box for independent retailers to help drive stand-out on shelf and encourage trial. 2018 innovation Maynards Bassetts Wine Gums Mocktails also offers a £1 PMP 165g bag.
Mondelēz is the UK’s second biggest brand biscuit supplier (Euromonitor). It offers a wide range of PMPs from its biscuit brands which meet needs throughout the day.
For the morning and snacking occasion belVita Duo Crunch is available in a 62p PMP pack, while belVita Soft Bakes is available in a 60p pack. For afternoon snacking, Cadbury Roundie 30g single pack is available in a 50p PMP and Cadbury Freddo Biscuits is available in a £1.29 PMP.
Finally, for sharing, Cadbury Fingers 114g carton is available in a £1.29 PMP – and Oreo features a 79p PMP 154g roll pack for original and Oreo Golden variants.
“Retailers should carry a range of price-marked formats within biscuits to show shoppers they are getting good value for money and therefore encourage trade-up and impulse purchases,” adds Nash.
“Price-marked packs are incredibly important when it comes to demonstrating value to shoppers,” says Matt Gouldsmith – Channel Director, Wholesale at Lucozade Ribena Suntory. “Retailers should stock up on price-marked formats of the most popular brands, like Lucozade Energy and Ribena, to drive sales in this profitable category. We know price-marked soft drinks are growing more quickly than plain packs in the channel, so by stocking up on PMPs throughout their range retailers can capitalise on this opportunity.”
To help retailers make the most of these advantages, PMPs are available across Lucozade Ribena Suntory’s full range of leading soft drinks. By offering price-marked soft drinks in the chiller, retailers can demonstrate to their shoppers they are getting the best value.
“Including price-marked packs of the latest innovation can also help retailers encourage impulse sales to drive incremental purchases,” adds Gouldsmith.
For example, Lucozade Energy has this summer launched a new flavour: Watermelon & Strawberry Cooler. Available in 380ml price-marked packs, the drink is the newest addition to the £278m (IRI) Lucozade Energy range. Stocking up on price-marked packs of Watermelon & Strawberry Cooler will encourage shoppers to try the new flavour.
The addition is already seeing great results, with retailer Atul Sodha stating: “For a new product it’s selling incredibly, and the impact has been amazing. Sales across the first month put it into my top 30 value sellers across the entire shop, and into the top 5 soft drinks sellers instantly.”
Ribena has also moved into the enhanced and flavoured water category for the first time. Ribena Frusion is unique in the soft drink category as it uses blackcurrant water that has been naturally infused with real fruit.
“Stocking up on price-marked packs of the new range of flavours from Ribena Frusion will encourage shoppers to try something new,” adds Gouldsmith.
Finally, as well as stocking a full range of price-marked soft drinks, retailers should include a range of format options to suit their shoppers, Gouldsmith suggests. Larger format soft drinks such as 1L are perfect for take-home occasions, while on-the-go shoppers will be looking for a more convenient size such as Lucozade Energy’s 380ml or Lucozade Sport’s 500ml bottles.
“Value is extremely important to consumers nowadays; they are looking for transparency and confidence that the products they are purchasing aren’t overpriced,” comments Emma Hunt, Marketing Director, Vimto Soft Drinks. “PMPs also make shopping easier for the consumer as they are clearly marked creating real on shelf presence, which in turn drives quicker purchase decisions.”
“Whilst retailers need to keep an eye on their profit margins, the allure of a PMP will help to increase impulse purchases, encourage repeat custom and ultimately drive stock through more quickly,” Hunt adds. “It’s important for convenience stores to stock a range of flavours and brands within their PMP offering in order to drive these impulse purchases.”
Vimto is significantly outperforming the wider soft drinks market, driving growth that is twice as fast as the wider category. The brand value recently hit an all-time high, it’s now worth £90m (Nielsen) and is found in one in four homes nationally.
Sales of Vimto No Added Sugar is growing +22% (Nielsen), with sales of No Added Sugar variants contributing to half of all Vimto sales (50%). The brand is making the most of the growing demand for the No Added Sugar offering by offering it as part of the PMP line up.
Levi Roots Soft Drinks’ newest flavour, Exotic Kick, has been developed exclusively for the convenience sector in a 500ml £1 PMP format. It packs a tropical paradise punch with a chili kick, which appeals to an adventurous palette. Introducing a new flavour as a PMP is a tried and tested formula for the brand and is testament to the strength of the demand for PMP formats in the convenience channel.
“Our brands’ great value, coupled with the fact they’re known and loved by shoppers, makes our price-marked products an attractive proposition to independent retailers,” says Hunt.
Vimto is fizzing up its popular Vimto Remix range with a new Raspberry, Orange and Passionfruit carbonated variant perfect for meeting the demand for more exotic flavours. The new launch is sure to give soft drinks sales a refreshing boost with the flavoured carbonates category currently growing at 11.9% and Vimto’s carbonates range outperforming the market at 17.5% (Nielsen).
Mark Walker, Sales Director at Swizzels, comments: “Whether consumers are conscious about their spending or simply enjoy a bargain, value-for-money confectionery continues to be a popular choice for shoppers seeking a sweet treat.”
During the summer months, chocolate sales typically diminish as the weather heats up, and 76% of respondents say they buy sweets for long car journeys or family outings (Dipsticks consumer research), so Swizzels is ensuring it owns the summer season for sugar confectionery this year with the launch of its Fun in the Sun campaign.
Fun in the Sun is a competition for retailers, running between June and September. During this period, retailers will have the chance to enter a prize draw in which they can ‘text to win’ an all-inclusive holiday for a family of four in the Canaries. To enter, retailers must purchase from Swizzels range of share bags – Choos, Squashies and Loadsa.
Choos bring a unique offering to the market, available in 2 variants with a choice of 5 flavours per pack. Drumstick Choos provide 5 double flavour combinations including Peaches & Cream and Strawberry & Banana, while Refreshers Choos offer 5 fizzy flavours with the unique sherbet centre, including Pineapple and Apple.
The soft chewy texture is in keeping with consumer demand for softer products, and the recognisable Drumstick and Refreshers names are aimed at shoppers seeking a sweet treat from popular brands they know and love. Choos are also suitable for vegetarians and vegans which is hugely important as 7.8 million people in the UK are reported to be avoiding meat products (Harris Interactive).
Swizzels’ Squashies is the UK’s 2nd bestselling sugar confectionery brand and the UK’s fastest growing sugar confectionery brand, with a bag sold every second (IRI). Drumstick Squashies Original £1 PMP is the UK’s best-selling price marked pack, and the 5th bestselling confectionery SKU in the overall UK marketplace.
For those customers seeking a portion controlled sweet treat for on the go consumption, the range is now available in 45g, 50p PMP bags on a 3 for £1 multi-buy across the Original Raspberry & Milk, Sour Apple & Cherry and Bubblegum flavours.
Swizzels Loadsa range includes a variety of the brand’s most popular products, with each individually wrapped sweet under 100 calories. The newly designed packaging includes a clear window to showcase the treats inside, and a flash clearly stating how many individual sweets are in each pack.
Cost conscious shoppers
Rustlers, the UK’s No.1 micro-snacking brand (Nielsen) from Kepak Consumer Foods, is enabling retailers to meet the needs of price-conscious consumers by offering its top-selling products as PMPs, providing increased sales opportunities as demand for price-marked packs continues to rise.
“Price-sensitive shoppers are looking for value for money, so they are reassured when they see market-leading brands in price-marked packs. More than 1 in 5 shoppers are more likely to buy a product if it is price marked,” says Monisha Singh, Shopper Marketing Manager at Kepak Consumer Foods, the home of Rustlers.
Rustlers recognises the importance of price-marked packs and offers each of its top-selling SKUs as £2 PMPs; including the Rustlers Quarter Pounder, the best-selling micro-snack in the UK.
“PMPs have a key role to play, particularly at a time of economic uncertainty, and that’s why our price-marked packs are available at accessible price points, helping to attract new customers and encouraging repeat purchase from brand loyalists and impulse shoppers,” adds Singh.
“The price sensitivity shown by shoppers is set to continue and convenience retailers will continue to benefit by offering price-marked packs. Those products like Rustlers that are backed by sustained, heavyweight marketing support will have even stronger appeal.”
Thanks to the introduction of the Rustlers All Day Breakfast Sausage Muffin last year, which is price-marked at £1.50, Rustlers now features in the key consumption occasions of breakfast, lunch and dinner, with a major presence in three of the key shopper missions; food to go, meal for tonight and top up.
Price-marked packs are still a key driver of impulse sales in convenience and Burton’s Biscuit Company – baker of household favourites including Maryland Cookies, Jammie Dodgers and Wagon Wheels – is tapping into this demand by offering a wide range of PMPs across its leading brands.
The market for price-marked packs remains hugely important in driving the impulse sector.
“Many shoppers look to PMPs as reassurance of value, with PMPs of bestselling brands meeting this demand,” comments Isabel Lydall, Category & Insights Controller, Burton’s Biscuit Company. “Offering customers a range of price-marked biscuits is a simple, cost effective way for convenience retailers to attract impulse shoppers – and increase basket spend.”
Convenience stores which offer a varied biscuit range, generate a higher basket spend, with the average basket spend of a biscuit category shopper more than double the average food to go shopper at £13.29 vs £6.50 (HIM), highlighting the value this category has to offer retailers.
“Burton’s Biscuit Company recognises the important role that PMPs play in offering shoppers’ reassurance when it comes to value, and we will continue to support the sector with bestselling products and key NPD,” adds Lydall. “Manufacturers need to ensure their bestselling SKUs are available as PMPs, so that retailers can stock up and capitalise on the impulsive nature of the biscuit category, and the increased rate of sale and profit that we know PMPs deliver.”
Flavoured milk continues to deliver strong year on year sales for retailers with the category showing 13% growth and worth £376 million (IRI). With 11 million households buying into the category, household penetration is at a record high (Kantar).
Within convenience, the category is outperforming the market as a whole with 16% growth and a value of £156 million (IRI).
Chocolate flavoured milk is growing by 14.2% year on year with a total worth of £46.6 million, giving it a market share of 30% (IRI).
The retail market is moving towards everyday low prices, so when reviewing their product range, retailers should look out for price marked packs (PMP) to offer shoppers obvious value for money.
Research from HIM! found that three quarters of shoppers view price as a crucial factor in product purchase, with half of shoppers stating that PMPs reassure them that they are not being overcharged (HIM).
Mars Chocolate Drinks & Treats has added a new Twix milk drink to its range which offers consumers the taste of the confectionery brand in a chocolate milk drink.
The Twix milk drink, in a 350 ml PMP on-the-go bottle, is a combination of the biscuit, caramel and milk chocolate flavours found in a Twix bar.
Mars Chocolate Drinks and Treat’s range of eight skus are all available in 350 ml PMP packs with on-the-go bottle tops. The range includes: Mars, Galaxy, Mars Caramel, Milky Way, Bounty, Maltesers, Snickers and Twix.
Michelle Frost, general manager at Mars Chocolate Drinks and Treats, says: “Our PMP range continues to prove popular with retailers and consumers alike. We hope that these new SKUs will encourage even more consumers to enjoy their favourite confectionery in a milk drink.’’
For consumers who enjoy milk drinks at home the range also includes a 702ml bottle of Mars Milk in no added sugar format.
Retailers should also offer ‘No Added Sugar’ formats of milk drinks to broaden consumers’ choices where possible, Frost suggests. Mars Chocolate Drinks and Treats has an ambition that by the end of 2019 all its milk based drinks portfolio will be no added sugar.
“The full milk drinks range, all offering eye-catching packaging, are best presented to consumers in refrigerators, chilled and ready to consume on the move,” says Frost. “The range should be built around those flavour profiles that consumers buy into the most; chocolate and chilled coffee.”
Cater for both the take home and ready to drink usage occasions, Frost recommends. Category champions like Mars Milk should be displayed prominently to entice shoppers to the chiller and other milk drink choices.
The MCD&T range can be stored outside of the chiller, allowing for easy storage and an extended shelf life.
Calbee, the $2.5bn No.1 snack manufacturer in Japan, purchased Seabrook Crisps in October 2018 in a bid to further its strategic objective to grow internationally and establish a firm foothold in European markets.
The addition of Seabrook to the Yushoi branded oven baked pea snaps range gives the company greater reach across the crisps and snacks market.
Following Calbee’s acquisition of the Bradford-based manufacturer, Seabrook Crisps is now the fastest growing major crisp brand (Nielsen), growing faster than all main UK brands.
Jon Wood, commercial director of Calbee UK comments: “Seabrook’s wholesale portfolio includes two price marked packs, offering exceptional value for money and tapping into the current market trend towards larger pack sizes.”
The offerings include a £1 PMP 6 x 25g packs which are available in a variety pack containing two each of nation’s flavour favourites; Sea Salted, Salt and Vinegar and Cheese and Onion. The £1 six pack is listed nationally in Booker depots and in all Parfett’s depots.
The second is the new £1 80g PMP available in Sea Salted, Cheese and Onion and Beefy flavours. Bestway offer this product for sale on their van sales distribution direct to Independent retailers. The £1 80g bags are also listed in all Parfett’s depots.
“These larger bags support the Impulse market because its £1 PMP gives shoppers another reason to grab it on the way to a party or to stock up for a night in with friends,” adds Wood. Price marked packs are a great way to drive sales.”
Seabrook Crisps now offers reduced case sizes across its range of single 31.8g bags in a bid to boost profits for retailers by reducing stockholding and improving cash flow.
Cases of Cream Cheese & Chive and Canadian Ham flavours were reduced from the previous 48 single packs to 24, and the core range (Sea Salt, Cheese & Onion, Sea Salt & Vinegar, Prawn Cocktail and Beefy) are now available in a 32 pack case.
“The smaller cases will allow operators to manage their stock more efficiently, giving them more space and an opportunity to experiment with different SKUs and flavour profiles,” Wood comments.
Seabrook teamed up with Alton Towers in 2018 as the theme parks’ exclusive savoury snack partner, supported by a multimillion pound national marketing campaign that allowed the brand to reach a broader audience than ever before.
Seabrook is continuing as the category exclusive partner with Alton Towers Resort in 2019, offering shoppers two for one entry at the theme park worth up to £56 per pack.
Running through to September, the on-pack promotion appeals to families and young adult thrill seekers alike, offering a ‘staycation’ adventure as well as the opportunity to save money this summer. The brand is increasing TV spend in 2019 as part of the deal to ensure continued growth.
The high value offer, which is running across all Crinkle Cut Multipacks, 80g PMPs and 31.8g bags, also provides on-shelf stand. In a time where consumers are often bombarded with promotional overload, an offer which genuinely provides good value to the consumer will stand out among competitors.
Seabrook is supporting the on-pack promotion with a large scale marketing campaign, including national TV and radio advertising, with a particular push on social media, an area the brand has focused on significantly in recent years by regularly sharing engaging content through their channels in a bid to create positive brand engagement.
Data shows penetration is growing on the Seabrook brand, especially in areas outside of its North of England heartland, and existing shoppers are adding the brand to their basket as AWOP grows.
The promotional packs will be available in all major retailers as well as cash & carry and wholesale operators.
With more than half of all UK consumers now meat reducers (YouGov), Quorn accounts for 47% (IRI & Kantar) of all frozen meat sales.
Quorn is attracting record numbers of shoppers to the UK’s frozen meat free category with its range of price-marked packs playing a key role.
As one of the fastest growing categories in frozen, and with more than half of all UK consumers now being meat reducers, it is important for retailers to have meat free represented in-store.
“We’ve developed a core range of five frozen Quorn products specifically for the convenience channel, enabling retailers to drive growth from this crucial category, whilst giving consumers everything they need to make their favourite meals quickly, easily, and meat free,” says Alex Glen, Marketing Director at Quorn Foods UK.
The range includes everyday favourites like Quorn Crispy Nuggets and Quorn Sausages, which have both been awarded “Netmums Recommends” by the mum’s website, and Quorn Burgers which are price-marked at £2.29 and are ideal for healthier mealtimes. These are complemented by Quorn Cottage Pie and Quorn Lasagne ready meals which are price-marked at £1.79.
Meat free is one of the fastest-growing categories in frozen, and with Quorn accounting for 47% of all frozen meat free sales (IRI & Kantar), retailers can use Quorn as a beacon brand as part of their ‘meal for tonight’ offering, Glen recommends.
“Frozen meat free products are also attracting new consumers into the frozen category, so it’s important that retailers stock products such as nuggets, burgers and sausages as these make the introduction to meat free really simple,” Glen adds. “This is really good news for the channel, particularly those who have been quick to recognise the rapid growth in shopper demand for frozen meat free products.”
Price sensitive shoppers are always looking for value for money – this coupled with a rise in consumers reducing their meat consumption enables retailers to take advantage when stocking Quorn’s frozen price marked range by presenting shoppers with the value they’re seeking whilst offering a healthy meat free option.
“As well as offering good value, price marked packs help retailers build a sense of confidence and trust with shoppers,” Glen comments. “For shoppers, they offer assurance that they’re not being overcharged.”