This is the age of the Price Marked Pack. Never before have consumers been so conscious of how much they are paying for products and never before have retailers been so keen to highlight the perception of value that is provided by flashing prices on pack – prices set by manufacturers and not retailers themselves. Despite retailers previously avoiding price marks due to the fact they could erode margins, consumer demand for value has led to a huge about turn, with the majority of retailers now more than willing to stock price marked packs across every category. Below, we examine some of the latest brands to jump on board, while we speak to suppliers about the rise of PMPs and their importance to maintaining sales.
WKD price deal
Following the highly successful introduction of WKD £4.99 price-marked 275ml 4-packs for its Blue, Iron Brew and Purple variants last year, brand owner SHS Drinks has decided to extend availability of the promotional stock. Packaged in shrink-wrapped trays of 6 x 4 x 275ml bottles, the packs are prominently flashed with an attention-grabbing “Only £4.99 Result!” logo, and are available exclusively in the cash & carry/wholesale/convenience trading channels.
Lucozade goers for strawberry Lucozade Energy is expanding its range for impulse retailers with the introduction of a strawberry variant, which is available in a 95p price marked pack. Specifically developed for the impulse channel, the strawberry based flavour is a first for the sports and energy category and is set to drive penetration amongst current consumers.
Take a trip to Candyland The 70g bagged range from Tangerine Confectionery’s Candyland brand includes 65p flashes across the entire collection, and comes available in shelf ready packaging. The PMPs are also available on a 2 for £1 promotion, which is further communicated via branded POS materials and a dedicated stand. This includes; Mini Jelly Babies, Mini Gourmet Jelly Beans, Mini Wine Gums, Mini Sour Snakes, Mini Liquorice Allsorts and Fizzy Cola Bottles.
One brand that has always been ‘price maked’ is Onepounders from Golden Casket. Since launching in 1991 as Half Pounders the product has flashed its price and last year changed its name to £Onepounders to emphasis the £1 Selling price. The ubiquitous range has over 65 varieties all selling at £1 from chocolates, toffees, fudge, boilings, chews, gummy lines and mints. £Onepounders are only sold to the private retailer – no multiples or cash & carry outlets have them. This year has also seen the other Golden Casket brand – Millions – move into the £1 market with pre packs in two flavours. Just launched last month they are doing well mirroring the trend to price marking and the power of the £1 coin.
Britvic PMP expansion paying off Britvic recently introduced a 49p PMP into its Pepsi range, bringing it in line with the existing 49p PMPs across the fruit carbonate cans range, which includes 7UP and Tango. Previous, Pepsi, Pepsi MAX and Diet Pepsi were offered at 49p PMPs and the company says this move highlights Britvic’s on-going investment to support the independent channel.
AG Barr out to prove a price point The impact of price marking was clearly demonstrated in a recent leading retailer study carried out by AG Barr, when the Rockstar range was moved from standard packs to 99p price-marked packs. This resulted in an 800% uplift in rate of sale for Rockstar and saw incremental category growth. Adrian Troy, Head of Marketing for AG Barr, says: “This trial clearly demonstrates that price-marking is a winning strategy for retailers. It drives footfall and rate of sale.”
Pets turn to PMPs
Mars Petcare has a range of PMPs specifically designed for the convenience channel including the single 400g can in loaf, jelly and gravy across a range of flavours including lamb, beef and chicken at an rrp of 68p. Mars Petcare also has a range of PMP treats on offer at £1. Recommended by vets, Pedigree Dentastix reduces tartar build-up by up to 80% when fed daily.
Marking energy Both Relentless and Monster from Coca-Cola Enterprises have traditionally had a £1.39 PMP can available in the convenience channel. This year, we introduced a £1 PMP on 500ml cans of Relentless Origin, Apple & Kiwi, Lemon Ice and Sugar Free at certain promotional periods to drive trial of the brand. Monster also introduced a £1.19 PMP on packs of Monster Energy Original, Ripper, Khaos and Rehab Lemonade, similarly at promotional periods.
Bonds Confectionery’s price marked products are experiencing strong sales with 30 million units of its 39p (3 for £1) sold every year. Further to this, the company’s £1 Wisepenny bag fills the gap for sharing products. Philip Courtenay–Luck, Managing Director of Bonds Confectionery comments: “When employed successfully, PMPs reassure customers that they are paying a fair price but it is vital that they have the choice between these and premium lines when doing their shop.” A wide range of Bond’s products are avaialable.