Retailers prefer BOGOFs

05 September, 2008

Independents warned to swallow pride and sell price-marked multipacks

Price-marked packs of lager are disliked by independent retailers who "don't want to be controlled", according to research commissioned by Wells & Young's.

The study shows retailers "like to have full control and flexibility over price and pack size in store", with only 23% mentioning price-marked packs as one of their

preferred lager promotions.

Conducted by market research company HIM, the study was based on three focus groups with 23 independent retailers

and 200 telephone interviews with a further 200 shops.

The majority shunned price-marked packs because "they don't allow for mix -and -match promotions

and retailers don't want to be told what to charge", the study said.

But retailers will lose out on sales if they don't stock any price-marked packs, warned HIM's director Tom Fender, who said that, i n today's bleak economic climate, shoppers are looking for " a value proposition".

HIM's Sol track programme, which interviews 2,500 off-licence customers every year, has reveal ed that price-marked packs are in growing demand

from shoppers .

B OGOF offers on packs of lager scored most highly in the Wells & Young's study, with 82% of retailers saying BOGOFs were their preferred promotional mechanic.

Fifty -two per cent chose

"money off a case"

as their top promotion, and on-pack

offers got the lowest scores .

The study also revealed that 67% of retailers use in-store POS, with 77% favouring posters ahead of window stickers (58%) and price stickers (52%), because they don't take up as much space .

Category insight manager Pam Kemp said the research has informed Wells & Young's plans for

Red Stripe lager, such as the roll-out of

in-store posters with space for retailers to write

their own prices.

She added that the brewer is now "up to full capacity", producing 800,000 barrels annually since last year's merger, which saw London brewer Young's combine its brewing operations with Charles Wells at its Bedford site.

Key findings

86% of premium lager sales in independents are cans

41% of retailers regularly break up multi packs

;

23% never do

Four-packs of lager are seen as "the ultimate multi pack size "

27% of retailers pass on lager promotions to shoppers

65% of retailers said customer loyalty and potential profit margin were

"very important " factors in deciding what lager brands to stock

61% of retailers said trade press was the key medium driving their awareness of lager brand activity.




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