Half of Twinings’ volume may be sold on deal, but reducing that percentage from 53% to 50% and cutting the depth of deal by 5% to 22% [IRI 52 w/e 22 June 2013] has kept consumers loyal, says commercial director Neil Manders.
“Simply slashing prices can devalue the products as you end up simply switching consumers between brands and not growing the category as a whole,” he says.
Instead Twinings has been using new, smaller 40-bag packs to encourage trial of its under-£2 Everyday Tea range.
Meanwhile, Tetley is turning to price-marked packs in a bid to boost sales by conveying a strong value message. It is the only brand to offer green tea in a price-marked £1 pack, and says offering its Tetley Everyday range with PMPs of £3.25 for 160 bags is also driving growth.
Despite claiming that promoting “does not benefit retailers or suppliers”, PG Tips still upped its volume sold on deal from 70% to 75% and increased the depth of deal from 27% to 29% [IRI]. The Unilever brand says its focus is now on adding value to the category through on-pack promotions and loyalty scheme the Cuppa Club.
Tea troubles: a spotta bother for the traditional cuppa
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Tea brands change tactics as steeper deals miss the spot