Kraft Foods plans to extend its 50p price marked pack range in the UK by adding Cadbury Picnic and Cadbury Chocos in a bid to boost sales.
The extension comes soon after ConfectioneryNews.com reported on a market analysis report from, Keynote which said that placing the price of products on packaging can accelerate sales. (See HERE )
Other Cadbury products already price marked are Daily Milk, Twirl, Crunchie and Wispa.
Kraft has reported a 9% sales boost for Cadbury Daily Milk 49g since the 50p marked pack was introduced in April last year.
Kraft anticipates improved sales of Cadbury’s Picnic and Chocos with the introduction of price marked packs to these ranges.
Picnic and Chocos started carrying the price on the pack on 1 August.
Susan Nash, Trade Communications Manager at Kraft Foods, said: “The latest price marked pack promotion running on a further two Cadbury branded countlines will ensure that retailers can continue to make the most of their confectionery sales, especially as research shows that almost half of shoppers say that a price marked pack would encourage them to switch brands.”
Shoppers attracted to price marks
Kraft rival Nestlé, is another major confectioner using price marked packs in the UK. In August last year it launched price marked packs for leading brands such as Aero, Yorkie and Rolo.
Market researcher HIM, part of ConfectioneryNews.com’s parent company William Reed, found that 76% of shoppers buy price marked packs some or most of the time.
HIM found that consumers felt confident they were not being overcharged when buying a price marked product, with many seeing them to be a promotion.
The market research firm also discovered that 48% of consumers would be willing to change brand allegiance in order to purchase a price marked product.
Convenient for retailers
Kraft added that price marked packs were also convenient for retailers, who could simply put products on the shelves without the need to label them.
Tom Fender, Managing Director at HIM UK, said: “In an economic climate when many companies are launching PMPs this research illustrates how Kraft Foods is genuinely listening to and supporting its retailers, helping to boost sales and improve price perceptions with extensions of PMP countlines.”
Kraft said that the price on the pack was only a recommendation and retailers were free to charge differently if they wished. Non-price marked marks are also available.
Nash concluded: “We hope that the popularity of PMPs will help to increase distribution within the category and in-turn drive value sales.”