Christmas on shelves

Precise planing is needed in order to achieve the major boost in sales that is expected in the Christmas season. Most companies begin planning their special packages and offers for Christmas several months in advance. – We try to work out as many different combinations as possible, so that everybody can find a gift packages that is perfect for them – says Ottó Németh, head of marketing, cosmetics division of Henkel. Products with complementary functions are frequently packaged together (like shower gel with body lotion), but extra gifts are also often included. Certain items of the WU2 Next and Caola product lines will be available in elegant bamboo boxes this year. More expensive product combinations appear in hyper markets and drugstores, while smaller packages are sold in discount stores and some domestic chains. Energizer Magyarország, the distributor of Wilkinson products has less expensive packages for hyper markets and traditional stores, while the packages which contain more exclusive gifts (over HUF 2 000) will be sold in drugstores. Coty has compiled its Christmas packages of adidas products so that assortments can be selected from different price categories. – Products with related functions come together, like shower gel with deodorant – says Bernadett Rácz, junior trade marketing manager. Retail partners generally want packages compiled specifically for them, which can generate a significant increase in sales. According to Ágnes Benke, marketing assistant from EVM Zrt, the distributor of WU2 and Caola, there are two major sales channels in the cosmetic market, which account for 90 per cent of their Christmas package sales: hyper markets and drugstores. As we have been told by an employee of Coty Hungary, people like to buy more expensive brands for Christmas presents than they normally use, because they want reliable quality and a trendy name. In Energizer Magyarország, they believe that their primary target group consist of people who buy Wilkinson packages as simple presents, while the experience of Prestige Products Hungary shows that buyers of Christmas sets are people who leave their purchase to the last minute, but are not price sensitive. – This why often premium or luxury products, like Gucci or Valentino are included in such packages – says Andrea Ujvári, sales manager. Unsold stocks present the greatest risk involved in preparing special Christmas offers, but this risk can be reduced by precise planning and monitoring. We often use packaging without special Christmas decoration, which makes it easier for us to sell unsold stock after Christmas – says Zita Sebők, marketing manager of Energizer Magyarország. – The market leading brands of Sara Lee Hungary, Douwe Egberts Omnia and Pickwick have been popular gifts in the Christmas season for decades as exclusive packages are prepared for this occasion – says Beatrix Pálvölgyi, PR manager. New flavours are often included in Christmas packages to promote their introduction. Practically all categories of Zwack products are included in Christmas offers, which allows people with diverse purchasing power to find they package they want or can afford. The popularity of spirits as Christmas presents is growing even among people who never drink spirits otherwise. Zwack pays a lot of attention to the timing of Christmas packages. While cheaper products appear in September or October, luxury products, like Johnnie Walker Red Label, or Henessy are released immediately prior to Christmas. Beverages are unlike cosmetics, because unsold stocks are not the main source of risk. In the case of coffee and tea, supply is often less than sufficient, while theft is a major problem with spirits in the Christmas season. Special placements, hostess promotions and displays are useful, since products on shelves receive less attention in this period.