Price-based deals are in danger of commoditising bacon and marketers are looking for radical ideas to build promotions and add value
Bacon is not price sensitive, yet when it comes to shifting product, price promotion remains the dominant mechanic.
According to TNS, a high percentage of bacon (22%) is sold on promotion. But are the marketing arms getting the promotions right?
The MLC's Chris Lukehurst says: "Bacon and pork are promotionally sensitive, but they're not price sensitive.
"You can put a label on bacon saying half price and people are attracted by that label, but not by the price."
Far more motivational than money off, says Lukehurst, is the idea of free food. "People identify with that more. The extra money in their pocket is not as appealing as the opportunity to have a free meal."
This view is supported by Booths Supermarkets fresh foods buyer Philip Godwin who says his customers prefer buy-one-get-one free offers to price promotions. And John Howard, marketing director of the Danish Bacon and Meat Council, says that price promotion is important to help maintain core consumption, but adds: "If we are serious about expanding the category and increasing the use of bacon, we've got to look at more radical and creative promotions than price."
The danger with price promotions is that the product is commoditised and value is taken out of the market.
Hendrix marketing manager Marc van der Lee says: "As soon as a meat becomes a commodity, the positive consumer feeling is lost. Their attitude towards the product is damaged. When I see meat being sold cheaper than catfood, I wonder what are we doing?"
The MLC's Maurice McCartney agrees there is a danger of the category becoming too dependent on promotions. "The question is how long is that sustainable? What is an acceptable level of promotion?"
Safeway's bacon buyer Joanne Legg says this is a key challenge: "We need to add value to our sales, rather than just sell on promotion.
"Without adding value and giving customers a genuine reason to buy at full price, the category will be devalued."
You could almost argue that the more reliant the category becomes on promotion, the more promotion will be needed just to stand still, she said. The real growth will come through adding value and bringing interest and excitement back to the fixture.
One of the biggest changes to promoting and marketing bacon is taking place within the Dutch sector.
The producers have taken the responsibility of promoting their product away from the Dutch Meat Board which is likely to exchange the more generic promotions such as the smash a £1m piggy competition for more tailor-made schemes developed in partnership with retailers.
The DMB's role will be considerably reduced because promotions account for half of its operations and funding.
Managing director Robert Smith said the board recognised the need for change and would now concentrate on its trade communications role, such as the publication of its three-part category management mailer.
Marc van der Lee, marketing manager with Dutch producer Hendrix, says the DMB had done a good job but the decision was the correct one. "We're moving towards the retailers so it makes sense that we should focus more on tailor-made promotions rather than the generic promotions, which have been successful up to now."
The Danes have proved themselves canny marketers over the years, always ready to find an opportunity for publicity.
"We have a marketing budget of about £3m," says John Howard.
"But media inflation has outstripped our budget, so we have to work that much harder even to get noticed."
One way of doing that is to piggy-back news involving Denmark, says Howard. The recent World Cup tournament proved a boon, particularly when England played Denmark.
A key line in the Danes' marketing campaigns is the irresistibility of bacon. "We discovered that many vegetarians eat bacon, so we did some advertising to that effect," says Howard.
The promotion, featuring a mechanised bill board counting down the number of vegetarians in the UK, sparked off a national debate and gave a huge boost to Danish bacon.
"Next year's plan is still in the melting pot," says Howard tantalisingly.
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Bacon is not price sensitive, yet when it comes to shifting product, price promotion remains the dominant mechanic.
According to TNS, a high percentage of bacon (22%) is sold on promotion. But are the marketing arms getting the promotions right?
The MLC's Chris Lukehurst says: "Bacon and pork are promotionally sensitive, but they're not price sensitive.
"You can put a label on bacon saying half price and people are attracted by that label, but not by the price."
Far more motivational than money off, says Lukehurst, is the idea of free food. "People identify with that more. The extra money in their pocket is not as appealing as the opportunity to have a free meal."
This view is supported by Booths Supermarkets fresh foods buyer Philip Godwin who says his customers prefer buy-one-get-one free offers to price promotions. And John Howard, marketing director of the Danish Bacon and Meat Council, says that price promotion is important to help maintain core consumption, but adds: "If we are serious about expanding the category and increasing the use of bacon, we've got to look at more radical and creative promotions than price."
The danger with price promotions is that the product is commoditised and value is taken out of the market.
Hendrix marketing manager Marc van der Lee says: "As soon as a meat becomes a commodity, the positive consumer feeling is lost. Their attitude towards the product is damaged. When I see meat being sold cheaper than catfood, I wonder what are we doing?"
The MLC's Maurice McCartney agrees there is a danger of the category becoming too dependent on promotions. "The question is how long is that sustainable? What is an acceptable level of promotion?"
Safeway's bacon buyer Joanne Legg says this is a key challenge: "We need to add value to our sales, rather than just sell on promotion.
"Without adding value and giving customers a genuine reason to buy at full price, the category will be devalued."
You could almost argue that the more reliant the category becomes on promotion, the more promotion will be needed just to stand still, she said. The real growth will come through adding value and bringing interest and excitement back to the fixture.
One of the biggest changes to promoting and marketing bacon is taking place within the Dutch sector.
The producers have taken the responsibility of promoting their product away from the Dutch Meat Board which is likely to exchange the more generic promotions such as the smash a £1m piggy competition for more tailor-made schemes developed in partnership with retailers.
The DMB's role will be considerably reduced because promotions account for half of its operations and funding.
Managing director Robert Smith said the board recognised the need for change and would now concentrate on its trade communications role, such as the publication of its three-part category management mailer.
Marc van der Lee, marketing manager with Dutch producer Hendrix, says the DMB had done a good job but the decision was the correct one. "We're moving towards the retailers so it makes sense that we should focus more on tailor-made promotions rather than the generic promotions, which have been successful up to now."
The Danes have proved themselves canny marketers over the years, always ready to find an opportunity for publicity.
"We have a marketing budget of about £3m," says John Howard.
"But media inflation has outstripped our budget, so we have to work that much harder even to get noticed."
One way of doing that is to piggy-back news involving Denmark, says Howard. The recent World Cup tournament proved a boon, particularly when England played Denmark.
A key line in the Danes' marketing campaigns is the irresistibility of bacon. "We discovered that many vegetarians eat bacon, so we did some advertising to that effect," says Howard.
The promotion, featuring a mechanised bill board counting down the number of vegetarians in the UK, sparked off a national debate and gave a huge boost to Danish bacon.
"Next year's plan is still in the melting pot," says Howard tantalisingly.
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