The current economic environment is magnifying the importance of value for consumers. Last year, convenience store customers faced high gasoline prices as well as inflation concerns that have continued into 2023, limiting consumers’ spend inside the store. Consumer insights can help retailers understand how inflation is changing the deals shoppers are seeking and interacting with on the shelf. A key strategy is offering everyday multiples—bundle deals for everyday, low-cost items—and understanding how consumer attitudes toward these deals shift amid behavior trends.
With the help of Eversight, Hershey built and tested multiple bundle deals and language shifts to understand what appeals most to shoppers and how best to communicate value. Small language changes—specifically leading with the value statement, in particular—resulted in higher engagement. For example, consumers responded more favorably to an offer of “Get 1 free when you buy 2” compared to “Buy 2 get 1 free.”
Post-pandemic consumer behavior has favored multiple pricing as shoppers are making fewer store trips and have become more interested in value and bundle deals to counter inflation. Research demonstrated that standard bar deals with the highest engagement included three items with a rounded price point, such as 3 bars for $5 or 3 bars for $5.50. C-store partners that utilize everyday multiples as part of their promotional strategy see above-standard conversion rates for promotions featuring the standard and larger-sized bars that deploy these insights.
Additional promotional strategies retailers can consider:
- When using a promotional structure with three or more product deals, include a variety of brands
- When offering deep discounts, avoid promoting standard bar and larger-sized bar at the same time to avoid cannibalization
- Implement hi-lo promotions over shorter, targeted periods
Another opportunity lies in cross-category promotion with food service items. Proven offers with a standard bar are $3, $4 and $5 combo deals that include a beverage, a specific food item such as a hot dog or sandwich and a candy item.
Everyday multiples combined with optimized pricing strategies give consumers different options to save money on their favorite items while providing growth opportunities for retailers. Retailers can engage consumers more frequently with bundle deals to drive lift without having to continuously heavily discount items with promotional language that doesn’t sway consumers.
To learn more about Hershey’s retail expertise, visit their website.
This post is sponsored by The Hershey Company