One of the issues raised in this month’s cover story focusing on price-marked packs (PMPs) is the perception of value. Shoppers want a good deal and PMPs offer this assurance. But are there other ways to deliver it?
It’s worth looking across at the foodservice channel. While PMPs are not as prevalent here, foodservice has addressed
the ‘value challenge’ well.
Last year, one of our contributors – foodservice analyst Anya Marco – warned that the generous deals flooding the foodservice market after the recession were unsustainable and bad for business in the long-term. She said that rather than offering huge money-off discounts, restaurants should move towards meal deals and other ways to make shoppers feel like they are getting good value.
A few months later, Mintel’s Helena Spicer said that if everyone offered cut-throat promotions, there would be no differentiation.
Sure enough, the dramatic deals and discounts stopped, but the foodservice market still stayed buoyant.
Today, eateries are finding innovative ways to build customer loyalty and differentiate themselves. This morning, I picked up
a Starbucks coffee and was given a voucher entitling me to an afternoon Frappuccino for just £2. The offer worked – I was enticed into visiting Starbucks a second time that day.
We look at the perception of value in more detail on page 16.
I hope you enjoy the issue