Monthly Price and Promotion Review
Feb 09
to
March
09 – Analysis and Insight from
www.Brand-View.com
Prices are up 0.05% in the major multiples showing that
versus
previous Brand View analysis, price changes are
starting to slow. Based on data to the 25 March 2009
some categories have seen much greater change than
others; Detergent being the most noticeable, up 2% in
the last month. Other significant increases have come
from the Tea category.
Why has Detergent & Tea seen so much
change?
Detergent
price increases have come from a change in pack sizes
which occurs every two years as a process to reduce the
amount of pollutants used. Recent pack size changes and
price increases have been most noticeable on P&G brands.
Tea has seen
most significant price changes in Morrisons & Waitrose.
Waitrose has increased the prices of branded Teas with
most noticeable price change in Decaffeinated (up 5%)
and Loose (up 3%). Herbal, Fruit and Regular tea are
all up 2%. Morrisons has also seen significant price
increases in Loose tea, though Regular tea is also up
4%.
The Growing Importance of the £1 Price Point
With the
current climate we are seeing significant changes to the
way products are promoted and priced in-store.
Brand View has seen a move away from multibuy
promotions and more emphasis on price reduction
promotions. In addition there has been an increased
importance of the £1 price point.
Asda has
always dominated in this area though in the last six
months has over doubled the number of products selling
at a £1 based on the categories detailed above.
In the last
month we have really started to see some of the
competitors following suit. Tesco has gone from 43
products at a £1 in November to 142 on 25 March ‘09.
Sainsbury’s equally had 27 products at £1 at the
beginning of March and now has 107.
If these
trends are anything to go by we are likely to see more
and more bargains in-store over the coming months.
Sector
Summary
Overview of base price change by sector and retailers
stocking products at the cheapest price.
|
Household
 +1%
Unlike other categories, Sainsbury’s is the
cheapest for Household Cleaning products,
closely followed by Asda and Tesco. Price
increases have been driven by Detergent (up
2%) and Air Freshener (up 1%).
Previously we have seen Household Cleaning
products increase in price, however base
price has declined in the last month – down
1%.
|
|
|
Beverages
<1%
Beverage price increases have come
particularly from Tea (up 2% over the last
month) and Wine (up 1%). Other Beverage
categories have remained static.
Wine price increases have come from
Sparkling, which has seen base price
increases for both rosé and white. Moet for
example has seen a 10% base price increase
in Tesco and Sainsbury’s.
|
|
|
Dairy
 0%
Mayonnaise and Eggs have seen minimal price
increases with Mayonnaise up 1% over the
last month. However Milk, Cream and Cheese
which have previously seen heavy price
increases, have remained static more
recently.
Mayonnaise price increases have come from
new pack sizes in Sainsbury’s and Waitrose.
|
|
|
Health & Beauty
 -<
1%
Last month Asda was the cheapest for the
Health & Beauty market, selling 447 products
cheaper than any other retailer, with Tesco
selling 348 cheaper.
Interestingly a month on we are seeing Tesco
has now taken the lead in this sector with
500 products cheaper than any other retailer
with a heavy increase in products selling at
a £1 price point.
|
|
|
Frozen
 -1%
Morrisons has seen a 7% price reduction with
increased promotions over the last month.
As a result they now have over 40 products
cheaper than any other retailer.
Brand View
has also seen a drop in Ice Cream prices
across all retailers over the last month
with prices down 2% in Asda and Tesco.
|
|
about
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Date
article published: April 2009
NamNews
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