Once the scourge of independent retailing, price-marked packs are now a staple of the industry with studies showing that they drive trust and sales among customers.
by Antony Begley
Once upon a time, price-marked packs (PMPs) were viewed by many local retailers as best avoided, preferring instead the plain packs that allowed them to control their profit margins. Times change however and in the last five years of so, the growth of PMPs has been little short of astonishing.
This growth has been driven in part by a raft of research showing very clearly that shoppers view PMPs favourably, for a whole range of reasons. HIM data from 2015 showed that 79% of shoppers actually view PMPs as promotions, 44% of shoppers are more likely to buy a PMP product on impulse and 43% of shoppers claim that they’d be more likely to try a new line if it was sold in a PMP. A Shopper Understanding report in 2013 also found that 86% of shoppers trust price-marked packs over on-shelf pricing.
One company making a big splash with PMPs at the moment is fast-growing meat-free specialist Quorn which is spending £2.5m on a TV campaign targeting family meal occasions.
With meat-free shoppers spending up to five times as much in-store as non-meat free shoppers [Kantar Worldpanel, May 2017] and meat-free being bought by almost 9.5 million shoppers [IRI, May 2017], it’s a category that should be of increasing interest.
The media investment will be spearheaded by a new TV ad, complemented by digital support, featuring Quorn Crispy Frozen Nuggets, a family favourite and the fifth best-selling SKU in the UK’s £290m meat-free category [IRI, May 2017].
Quorn Crispy Frozen Nuggets is one of a range of price-marked Quorn SKUs targeted at the family meal occasion alongside frozen sausages, vegan fishless fingers and burgers.
Also capitalising on the growth of PMPs is Mars Chocolate Drinks and Treats which has just moved its 8x350ml milk drinks range into PMPs at £1.29. Milk drinks have been extremely successful in price-marked packaging as the chocolate milk drinks range from Mars Chocolate Drinks and Treats is now worth £24m [IRI, Jul 2017.
Michelle Frost, General Manager for Mars Chocolate Drinks and Treats, says: “By moving into price-marked packs, we hope to see even more category growth by offering retailers the opportunity for more impulse purchases.
The 702ml Mars Milk ‘No Added Sugar’ bottle is also available as a PMP (£1.69), offering consumers a ‘take home’ variant of the hero Mars Milk SKU.
The UK’s No.1 micro-snacking brand, Rustlers, has long driven sales through use of PMPs. “Price-sensitive shoppers are looking for value for money so they are reassured when they see market-leading brands in price-marked packs,” says Angela Daulby, Channel Director of brand owner Kepak Convenience Foods. “86% of shoppers trust price-marked-packs over on-shelf pricing [Shopper Understanding, 2013].”
Rustlers recognises the importance of price-marked packs and offers each of its top-selling SKUs as £2 PMPs.
“We understand that PMPs have a key-role to play, and that’s why our price-marked packs are available at accessible price points that help to attract new customers and encourage repeat purchase from brand loyalists and impulse shoppers,” says Daulby.
Soft drinks giants Coca-Cola European Partners (CCEP) and AG Barr have also been quick to offer price-marked variants of their top selling lines. Amy Burgess, Trade Communications Manager at CCEP, comments: “Value for money plays a big part in consumers’ shopping decisions and price-marked packs are an ideal tool to help retailers grow their sales.
“For those opting to stock PMPs, we offer a wide range of price-marked Coca-Cola packs across both our immediate and future consumption formats, including £1 500ml bottles, 65p 330ml cans, and 1.75L PET bottles priced at £1.69.
“PMPs are a particularly effective way to encourage consumers to trial new products. In-line with this, our recently launched Coca-Cola Zero Sugar is currently available in a limited edition 49p 330ml can PMP.”
AG Barr is just as keen to help retailers drive sales through PMPs. Marketing Director Adrian Troy points out that price-marked packs continue to be popular among c-store shoppers, with 57% of shoppers saying they liked them [IGD, 2016].
“Price-marked packs are hugely important for those shoppers seeking value from the soft drinks fixture and an essential tool via which retailers can grow sales,” says Troy. “It is also important to understand that value is not about cost alone – while shoppers are looking for low prices, they are not prepared to compromise on quality. AG Barr offers a range of great tasting, high quality brands that consumers love, including IRN-BRU, Rubicon, KA, Barr and Rockstar. All of these brands are available as price-marked options to clearly communicate a fantastic price point in all pack sizes (from 330ml can and 500ml PET impulse packs to 1 litre carton and 2 litre PET take-home packs) throughout the year.”
