Tayto strategy built on retailer knowledge
NO one knows what convenience channel shoppers want better than independent retailers.
Big data is no substitute for dealing directly with customers and getting to know their individual wants on a daily basis. This gives retailers valuable insights others could miss.
Snacks giant Tayto has taken note of this and turned to retailers for advice when building its range of price-marked packs.
Matt Smith, marketing director at Tayto Group, said the crisp maker consulted independent retailers because they know the channel best and then used these insights to shape plans for the future.
“The majority of independent retailers we spoke to were clear they would rather stick with a £1 PMP with less weight, than maintain pack size and increase the price to £1.25.
“Based on this feedback, and the fact that our £1 PMP snacks range is outperforming the market, Golden Wonder will be sticking to £1 PMPs as we are committed to delivering our promise of ‘more punch per crunch’ and continuing to offer great value to consumers and market-leading margins for retailers, in an increasingly challenging retail market,” he said.
Smith sang the praises of this “must-stock price point,” across Tayto’s Golden Wonder portfolio.
IRI market data for the 52 weeks to 25 June found that sales of the Golden Wonder £1 PMP range in the symbol and independents sector were outperforming the total market Smith added that the firm’s Transform-A-Snack range is a key performer within Tayto’s portfolio – IRI research found that the brand had grown by 79% in Scottish independent and symbol stores.
To make the most of this potential, Smith suggested keeping crisps and snacks grouped together by price point.
According to Smith, this will make finding the fixture in store easier for consumers, simplifying the shopping experience.
It’s the right time to pay attention to price marking too, as Smith predicted shoppers in the category will increasingly focus on value as household budgets are squeezed this winter.
He said: “In savoury snacks, consumers intent to manage their spending by buying on promotion and looking for the best value for money.
“Price-marked packs are a proven way of highlighting great value and so it’s no surprise that, in a recent poll of independent retailers, 57% said that PMP snacks are even more important in the current climate.
“PMPs account for more than half of snacks and are growing faster than the market. As a brand committed to offering great branded value, PMPs account for over 90% of Golden
Wonder snacks sales – an even higher proportion than the previous year.”
