Price is the dominant mechanic but should not be the only one'
Smith hails success of piggies round two
Simon Mowbray
Bacon producers risk failing to drive volumes if they rely on price promotions alone, a leading industry figure has warned.
Robert Smith, md of the Dutch Meat Board (UK), delivered his frank verdict as he reflected on the success of his organisation's latest marketing push. An on-pack promotion launched in February across five million packs of own label Royal Crest Dutch Bacon sold through the multiples culminated last week with 20 winning consumers getting the chance to "smash for £1m". The piggy bank smashing bonanza, running for the second time, once again failed to create a new millionaire although the 20 finalists still walked away with combined prize money totalling £34,000.
Smith said the promotion, which cost more than £500,000 to stage, had been a "great success". And he added: "We can't get away from the fact price is the dominant mechanic in our market but it should not be the only one. There are times when it is right to add a bit of variety and value in other ways.
"Retailers realise that too and they were asking us when the promotion was coming back as it was genuinely differently and added value & excitement in a different way."
Smith admitted there were, as yet, no hard figures to illustrate the success of the promotion this time round. But he claimed retailers had once again been satisfied with its positive effect on sales.
"In some retailers the promotion has simply added value to the customer, but in others it has definitely driven extra sales," said Smith. "It is not a magic fix but it does get a positive message across."
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