AMONG categories that are particularly important to the convenience channel confectionery stands out as one that has used PMPs extensively, especially in the tough economic times since 2008.
The activities look to have paid off, with growth being maintained in what is a very established sector.
Bep Dhaliwal, trade communications manager for Mars Chocolate, said recent category performance had been positive.
“Over the past year, the total confectionery category has continued to show its strength, with the overall market seeing an increase in value sales of 1.1% year on year. Contributing to this growth is the rise of the total chocolate market, which has enjoyed an increase of 1.7% year on year.
“A rise in trends like sharing, which has seen consumers favour treat bags and pouches, as well as boxed chocolates, has contributed to category sales – with increases in sales of 6.3% and 2.3% respectively.
“PMPs reassure shoppers they are getting the best value for money, and provide the perfect chocolate treat for a night in with friends and family. They’re also a great way for retailers to grow sales in store and attract the attention of customers,” she said.
“Earlier this year, Mars Chocolate UK extended its popular PMP range. Mars, Snickers, Twix, Bounty, and Maltesers singles are now permanently available in price-marked packs with a new RRP of 50p.
“The rise in popularity of the Big Night In occasion has resulted in sharing pack PMPs playing an increasingly key role in the confectionery market. Mars Chocolate’s range of popular PMPs includes its £1 treat bags, with Maltesers, Galaxy, Minstrels and M&M’S all available at a set price, as well as the large Galaxy £1 block lines – all of which have seen impressive growth in recent months.”
At Mondelez International, trade communications manager Susan Nash said PMPs are good for shoppers and great for retailers.
“For shoppers, PMPs reassure them that they are not being overcharged in convenience, contribute to positive price perception and can be a driver of store choice.
“For retailers, improved perceived value, speed of sales, convenience and customer trust make stocking PMPs a great option, and 63% of retailers say they intend to stock more PMPs in the next year.
“Mondelez International is now offering its widest ever range of PMPs across all categories, allowing retailers to take advantage of some of the great benefits, including many bestselling Cadbury tablets, countlines and chocolate bags and Trebor and Maynards Bassetts in candy confectionery.
“The company added two of its top 10 singles brands, Starbar and Cadbury Wispa Gold, to its promotional PMP range this summer.
“Ensuring every customer notices a PMP or any promotional offer is critical, the number one reason for purchasing on impulse is incentivised by a deal or promotion. A secondary POS display in a high-traffic area can be very effective as it will improve visibility.
“PMPs are a type of promotion, so retailers should consider how much of their stock they want to be perceived as ‘on promotion’.
“It can also be confusing to have PMPs where retailers are offering product group promotions such as meal deals, so check the PMP price doesn’t undermine another promotion in store, confuse or – even worse – mislead the consumer.”
• The sugar confectionery category has seen an increase in the number of price-marked packs available as consumers look for value, reckons Dan Newell, confections marketing manager, with Wrigley.
“With perceived higher rates of sale, PMPs are favoured by retailers who look to offer consumers quality and value for money,” he said.
Wrigley extended its range of PMPs in July 2015 for its sugar confectionery brands Skittles and Starburst, by introducing hanging bags with a £1 RRP price flash.
“The £1 RRP price point is a key sales driver for the convenience channel. We have seen an increase in sales of 82% in our PMP hanging bags since the launch of our latest PMP lines,” said Newell.
• In biscuits Burton’s says in recent years it has doubled its sales of PMPs of brands such as Maryland, Jammie Dodgers and Wagon Wheels. PMP biscuits in convenience and impulse channels are worth £37m, with value sales up 12% year on year to account for a third of year-round biscuit sales in the sector, the highest-ever share, said David Costello, head of category and shopper management at Burton’s Biscuit Company.
“As one of the first FMCG companies to introduce price-marked packs, we know how important they are to shopkeepers keen to offer their customers Britain’s best-loved brands at competitive prices,” he said.
