Multi-layer paper products – for more people

Both the assortment and the size of household paper products show great diversity. This is why shelf placement is a complex and important task. The most common household paper product is toilet paper with almost 100 per cent market penetration, while paper tissue is almost as frequently sold as toilet paper. 90 per cent of households use paper napkins and towels. In order to work out an ideal assortment, we should be aware of the fact that cheap, medium priced, premium and super premium products are available in all segments. Specific products and sizes should be selected in accordance with the needs of local customers. Paper tissue with various fragrances represent added value, which generates extra profit. In the paper towel segment, there is a direct correlation between the number of layers and price, with single layer products being the cheapest and three or more layers representing premium quality. The relatively small segment of paper napkins shows great diversity in terms of colour, design, number of layers, size and price. While a complete assortment is recommended for hyper markets and other stores with sufficient floor space, smaller stores with customers who represent high purchasing power, a limited assortment of premium quality products is best. Customers of discount stores should be supplied with products of a good price/value ratio. Market trends should also be taken into consideration when selecting assortments. For example, the popularity of single layer, very cheap toilet paper is in decline, whereas multiple layer products offer the best price/value ratio. According to Réka Nagy, brand manager of Zewa, demand for premium category products is increasing. Sales are growing at a faster rate in terms of value, than in terms of quantity. Most private labels are also positioned in the 3-4 layer, medium price segment. Krisztián Balogh, manager of Vajda Papír agrees that demand in the medium and premium segments is increasing dynamically and this trend is expected to continue in the future. In the opinion of Judit Tóth, marketing manager of Kleenex, the super premium segment is also expanding, as this generates the biggest profit for stores. Promotions play an important role in this category. According to Judit Sándor, trade marketing manager of SCA, price discounts and overfills are the most effective promotions. Channel or retail chain-specific criteria should also be taken into consideration, as differences between chains in the execution of promotions can have a big influence on their success. Judit Tóth, brand manager of Kimberly Clark agrees that price promotions are used most frequently, but 2+1 campaigns are also popular. The „back to school” period has a strong influence on the sales of paper tissue, while the Christmas and Easter seasons boosts the sales of paper napkins. Displays are very useful in such periods.