Magazine: Praline buying is characterised by both brand loyalty and economising

By: trademagazin Date: 2012. 01. 30. 22:50

Among sweets pralines represent the highest price category, consequently sales have been declining ever since the economic crisis commenced in 2008. However, this contraction slowed down recently and the last couple of years also proved that shoppers appreciate brand building: the market share of private label pralines remained way below the FMCG average.

Garai-Gémes Andrea

Anikó Okos, Bonbonetti Choco Kft.’s trade marketing coordinator told out magazine that consumer taste is rather conservative as the same pralines have been market leaders for years. Most of the time innovations focus on packaging, even more so as pralines are often bought as a present. According to Andrea Garai-Gémes, Storck Hungária’s trade marketing manager economic difficulties polarise retail sales even more than before. Formerly there was a divide between the eastern and western parts of Hungary but recent experiences show that demand for pralines can now be very different in various parts of the same region or town. Storck Hungária managed to improve sales in domestic chains and at wholesalers who supply independent shops; there was a negative trend in the hypermarket channel and stagnation characterised supermarkets. Another trend is that instead of focusing on price per kilogram, shoppers concentrate on the sum they have to pay per purchase. Despite the introduction of the public health product fee (NETA), average prices did not really increase yet, either because retailers had stockpiled from pralines before the new taxes entered into force or because they themselves finance the price difference in order to preserve their competitive advantage. Obviously this cannot be kept up forever so 2012 most probably will bring elevated prices. Zsófia Dankó, senior brand manager with Kraft Foods informed our magazine that Milka was able to improve its market share among pralines, not just with new product Thank You Milka but also with old favourites such as I Love Milka and Singles Mix. In the last couple of years the company supported its pralines with Internet-based marketing solutions too. Last year the company also surprised consumers with a special design (in both a tangible and an online format), offering the chance to personalise Milka pralines. Bonbonetti launched its Cherry Queen Passion product range in 2011, with to objective of making the young generation discover this classic sweet. The company prepared for the end of the year with Bonbonetti Moments – a dessert in a ball-shaped metal box. They will not come out with new innovations for Valentine’s Day since they have heart-shaped boxes in their standard assortment. In communication Bonbonetti focuses on television campaigns. At the end of the year Storck Hungária Kft. sells its Toffifee, and merci products in packaging that can be converted back to standard boxes after the end of the season. The same is true for the Valentine’s Day period, when they simply put a red heart sticker on the box. They appear with one special seasonal product, the merci Petits dessert in a heart-shaped box. At the points of sale they use attention-raising secondary placement and price promotion.

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