nickshanagher

There is an advertisement from Coca-Cola Enterprises in the last issue of Retail Newsagent of 2010 that says: "71 per cent of customers are more likely to buy a product with a price-marked pack." The research by HIM that supports this view is not particularly new but the execution of the advertisement by CCE is very impactful. It is illustrated with an array of 10 strong CCE brands in price-marked packs. The message underpins a huge change in what independent retailers are prepared to stock. When Mars, armed with similar insight, tried in the 1990s to champion price-marked products, the retail trade refused to stock its products. Today, shopkeepers understand the power of price-marking in generating sales and often seek out the price-marked option. However, with a fixed price comes a fixed margin. In making this trade off, retailers need to be clear about the overall impact on their sales and to get the mix of price-marked and higher margin products in the right balance. ...

"We're blessed with a wonderful business where we sell moments of pleasure at cents a time...billions of times every day," Muhtar Kent, who heads Coca-Cola, tells the Financial Times. I have cut the quote in half because the first half is what lots of local retailers are in the business of providing in the CTN market. CTN, which stands for confectionery tobacco newsagent, is a specific term that covers a loose style of retailing where people make frequent out-of-pocket purchases. In the modern convenience store, CTN is a major category alongside top-up shopping, food to go and a food for later offering (fresh and chilled). Mr Kent is clear that selling moments of pleasure for cents at a time is a recession proof business - provided you have enough scale. Most local shop owners recognise that they are in the pennies business, needing to build sales volumes. A second theme is his commitment to investment in the future of the business. It is why Coke has supported the ...