Q3 What are the latest PMP initiatives you have supported the channel with?
Dave Willey: Consumers told us that they would buy more if we had a lightly lower price so we reduced our price-mark on cans from £1.35 to £1.19. We also continued to with our Hero can (473ml) price marked at £1.99. This activity has made this SKU our fastest growing single can.
Ellie Krupa: We are launching its PMPs across the core range, which includes Lloyd Grossman, Sharwoods and Homepride sauces to help increase sales for retailers, particularly convenience stores. The relaunch is in direct response to increased shopper demand for value-for-money offers, with 84% of retailers believing that PMPs are a key influencer in shopper purchasing decisions.
Guy Gissing: From a suppliers’ point of view, there is a need to continually innovate with PMPs to maintain impact and continue to deliver great value to retailers and shoppers. AG Barr has this with its next generation of PMPs which encourage additional purchases while still delivering profit. This mechanic was trialled last year on Rubicon 1 litre cartons which were offered with a £1.29/2 for £2 flash on pack.
Dave Turner: We’ve updated our PMPs offering – it now includes 65p 330ml Coca-Cola cans to £1 500ml Fanta Orange, £1 Relentless to £1.19 Monster Energy. More recently, we launched an 89p PMP which is available in the Capri-Sun Orange variant. We’ve also introduced £1 PMPs on our Share a Coke’ campaign, in response to feedback from our customers.
Natalie Briggs: Last year, we launched a pre-filled 20cl Counter Top Unit, which is designed to drive sales of fractionals within the convenience sector, encouraging consumers to trial different spirits. The unit contains price-marked bottles of Gordon’s, Smirnoff and Bell’s (£4.69 PMP).
Q4: What advice would you give to retailers and wholesalers to grow PMP sales?
Natalie Briggs: Stock a range of PMPs across alcohol and consider the mission your shoppers are on – is it ‘something for tonight?’ They should also include a range of smaller spirit PMP sizes (50cl, 35cl, 20cl) and stock PMP premix, beers and RTDs in the chiller.
Richard Wood: Price consciousness is a trend in the tobacco industry. And, adult smokers are going to be looking for high-quality products in the VFM and Low categories to meet their needs so we recommend that wholesalers stock price-marked Rothmans, Pall Mall and Cutters Choice.
Susan Nash: Ensuring every customer notices a PMP or any promotional offer is critical. A secondary display in a high-traffic area can be very effective as it will improve visibility. Retailers can also use EPOS data to measure and track the success of PMPs. If they aren’t selling any more products as PMPs, they should look at their range again and see if a non-PMP line might be more appropriate.
Q5: Is there any danger in stocking too many PMPs?
Ellie Krupa: Sales of PMPs are set to grow, with 13% of UK adults intending to buy more over the next 12 months. Recent data also suggests that retailers are not being put off by the lower profit margins associated with PMPs, with 65% of retailers choosing to trade at a lower margin for a higher rate of sale.
Susan Nash: “PMPs are a type of promotion, so retailers should be advised to consider how much of their stock they want to be perceived as ‘on promotion’ – if they are offering nearly all their stock as PMP, is this giving shoppers an expectation of a store that can’t be continued long term?