Nestlé Confectionery is set to drive sales and profits for convenience retailers with the launch of a major new ‘2 for £1’ initiative across ten of its bestselling packs.
The initiative will see some of the nation’s favourite singles including KITKAT 4 Finger, AERO Peppermint Medium, ROWNTREES Fruit Pastilles and SMARTIES permanently feature a ‘2 for £1’ price mark flash on the front of packs from 1 July. The packs will be available exclusively in the Wholesale and Convenience channel.
Price marked packs are a proven way for retailers to drive sales and a study by him! shows that a multibuy promotion is favoured by both shoppers and retailers.
When asked what would encourage them to purchase a product, 70 per cent of singles confectionery shoppers preferred a ‘2 for £1’ multibuy compared to 50 per cent who preferred a discounted price. In addition, when retailers were asked what they thought their shoppers would find most appealing (when printed on the front of the wrapper) 41 per cent said a multibuy (i.e. 2 for £X) compared to 28 per cent who said a discounted price.
What’s more, with more than 60 per cent of singles confectionery consumed with more than one person present, the ‘2 for £1’ multibuy is ideal for encouraging shoppers to trade up and buy an additional pack to share with friends or family.
A multibuy promotion provides an excellent opportunity for convenience retailers to boost sales and profits. In comparison to packs price marked at a discounted price of 50p, a ‘2 for £1’ multibuy is almost certain to make more cash margin for retailers. This is because it still provides retailers with the flexibility to set their prices for single packs. Therefore retailers can benefit from both the uplift in sales a ‘2 for £1’ promotion will generate, as well the higher margins from sales of single bars.
A Nestlé UK & Ireland spokesperson said: “Our price marked packs initiative demonstrates Nestlé Confectionery’s commitment to supporting the Wholesale and Convenience channel. Featuring some of the nation’s favourite brands such as KITKAT, AERO, MILKYBAR, ROWNTREES and SMARTIES, the offer will give convenience retailers and wholesalers the opportunity to attract those shoppers who are looking to pick up their favourite pack for themselves and one for a friend.
With more than 60 per cent of single countline shoppers shopping with a friend, the promotion provides good value for money. Retailers should stock up to capitalise on shopper’s interest.”