3
Month Price and Promotion Review
Nov 08 to Feb 09 – Analysis and Insight from
www.Brand-View.com
Prices are up 1.9% in the major
multiples, but in comparison with previous
Brand View
analysis, price changes are starting to slow. Based on
data to the 19 February 2009 some categories have seen
much greater change than others; Soup being the most
noticeable, up 9%. Other significant increases have
come from the Beverages and Household sectors, with only
Frozen seeing a price decline.
Why has Soup seen so much change?
Soup base price increases has been
driven by Heinz (+19%) and Heinz Weight Watchers (+24%)
across all major retailers with significant base price
increases over the last two weeks of January 2009.
For example, Heinz Chicken & Mushroom
400g soup increased from 68p to 85p per unit –
potentially indicating a change of strategy by Heinz to
focus on increased multibuy promotion. This is
supported by an increase in 4 for £2 promotions
in Asda, Morrisons and Tesco, 3 for 2 in Waitrose
and 5 for £2.50 in Sainsbury’s.
Branded vs. Own Label
Own Label has
seen fractionally higher price increases than that of
branded products over the last quarter with categories
such as Sugar seeing 9% increases vs. 4% branded change.
Similar
trends have been seen in Butters & Spreads, Mayonnaise,
and Cream. This pattern is not mirrored across all
categories, i.e. Fabric Conditioner has seen decline due
to Own Label price drops whilst heavy Bleach price
increases have come entirely from branded products.
Overall greatest price change has
come from Own Label and particularly standard own label
with much smaller change to the budget, value, or basic
ranges.
By Category
|
Beverages
 +2.8%
Each sub-category within beverages has seen
a base price increase in the last quarter.
With increased promotions and deeper
discounts over Dec/Jan there will be a less
noticeable change from the consumer’s
perspective. |
|
|
Household +2.6%
Unlike other categories, Sainsbury’s is the
cheapest for Household Cleaning products,
closely followed by Asda and Tesco. Price
increases have been driven by Cleaning &
Bleach which have seen consistent price
increases over the last three months.
|
|
|
Dairy +1.7%
Milk, Cheese and Mayonnaise have all
increased in price by 2% over the last
quarter whilst Cream is up 4%. Whipping
Cream has seen the most increase over this
period followed by Crème Fraiche.
|
|
|
Health & Beauty +0.7%
The price change in Health & Beauty has been
consistent across each of the categories
with Hand & Body, Wash & Care, Male
toiletries and Soap all increasing in price
by around 1%. Deodorant is the only category
to see little price change. Wilkinson is a
strong contender in this sector with over
170 products cheaper than any other
retailer.
|
|
|
Frozen
 -1.5%
Whilst consumers are paying more to drink
tea, clean their house and eat Pasta, Frozen
categories have seen the greatest base price
decline – down 1.5% over the last quarter
driven most heavily by Tesco which has
decreased the price of most Ice Cream
brands.
|
|
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Date
article published: March 2009
NamNews
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