Small Business Resources, Business Advice and Forms from AllBusiness.com
 

Are you season-savvy? Celebrate the opportunity to manage seasonal candy sales more strategically.

By Covino, Renee
Publication: Confectioner
Date: Thursday, April 1 2004

Everyone in the confections business knows that one of the constants in seasonal candy is change--the constant rotating of various holiday candies to come one right after the other. The joke among consumers is that the day after Christmas, Valentine candy is available, and on February 15th,

they can start buying Easter treats. Of course to retailers, it's no joke; it's a planned strategy to make the most of each season. Even so, there is opportunity to improve sales mid- and late-season.

In a recent presentation on seasonal candy trends, Tom Joyce, director of consumer and industry affairs at Hershey Foods Corp., shed some light on how consumers' seasonal candy shopping patterns have changed, and what that means to candy manufacturers and retailers. Of particular interest are Joyce's following points.

Compression/Pricing. Seasonal compression is occurring in the industry, meaning that volume is shifting among the last three weeks of the selling season. According to research by IRI, just under 11 percent of total seasonal dollar sales have shifted into the last three weeks prior to the holiday. Apparently, purchase patterns are becoming more volatile during the last three weeks because of poor training on the retailers' part.

"By consistently promoting seasonal candy at 'hot' price points during the final week of the season, retailers are training repeat purchasers or consumers who typically purchase later in the season, to wait until the last week," says Joyce.

"A more productive strategy would be to use 'hot' price points to entice early and mid-season purchases, which would drive repeat purchases" (due to the likelihood of consumers eating the candy bought earlier). What's really wrong with the current strategy is that "ironically, consumers who are desperate in the last few days probably would be willing to pay more," Joyce maintains.

Along with these pricing strategies, retailers are also encouraged to leverage complementary categories (both edible and non-edible) to drive feature and display activity and become the seasonal shopping destination.

Assortment. Newness and name brands count in seasonal. According to the IRI research, new items, including Limited Editions, were responsible for 100 percent ($537 million) of total category growth. Also, the top 15 brands contributed greater than half of total sales for each season. These both add up to retailers making the assortment as fun as possible, according to Joyce.

In addition, make sure to read these articles:

  • IRI Expert Examines Growth Opportunities in the...
  • Information Resources, Inc. (IRI): --Presentation Reviews Sales Trends and Evolving Consumer Purchase Behavior Across Healthier and More Indulgent Snacks WHO: Sally Lyons Wyatt, Client ......
  • IRI Study Finds Sustainability an Emerging Key...
  • Survey shows nearly half of U.S. consumers are guided by environmentalism and fair-treatment values CHICAGO -- Approximately 50 percent of U.S. consumers consider at least ......
  • In Wake of Hurricane Katrina, IRI Multi-Phase...
  • CHICAGO -- Initial Two Phases Provide New Insights on Consumer Purchasing Behaviors in Weeks Before and After Hurricane Katrina In the aftermath of Hurricane ......
  • Shuster Laboratories Inc., Canton. Mass., has...
  • Shuster Laboratories Inc., Canton. Mass., has been acquired by Specialized Technologies Resources Inc. (STR), Enfield, Conn. STR is a global technical services company that provides ......
  • Magnum D'Or Resources, Inc. Releases New Website.
  • FORT LAUDERDALE, Fla. -- Magnum D'Or Resources, Inc. (OTCBB:MDOR) (the "Company") adds transparency for current and future shareholders by launching the company's new website. The ......
  • Franklin Resources, Inc., Announces...
  • SAN MATEO, Calif. -- On Thursday, January 31, 2008, Franklin Resources, Inc. will hold its annual stockholders meeting at 10:00 a.m. Pacific Time, in the ......
  • Science & Management Resources, Inc.
  • B-291803 March 17, 2003 Science & Management Resources, Inc. (SMR) protests the award of a contract to The Bionetics Corporation under request for proposals (RFP) ......
  • Concho Resources Inc. Announces Participation in...
  • MIDLAND, Texas -- Concho Resources Inc. (NYSE:CXO) (the "Company") today announced its participation in the Bank of America Energy Conference to be held in ......
  • EXCO Resources, Inc. Announces Withdrawal of...
  • DALLAS -- EXCO Resources, Inc. (NYSE: XCO) today announced its decision to withdraw a registration statement previously filed by EXCO Partners, LP with respect to ......
  • Municipal Resources Inc., of Meredith and Salem,...
  • Municipal Resources Inc., of Meredith and Salem, has been retained by the town of Raymond to provide financial administration services. Carol Coppola, finance for MRI, ......
  • Digital System Resources, Inc.
  • Digital System Resources, Inc., Fairfax, Va., is being awarded a $53,072,933 cost-plus-incentive-fee, cost-plus-award-fee contract modification to exercise an option under contract (N00024-01-C-6239) for level-of-effort engineering ......
  • Digital System Resources Inc.
  • Digital System Resources Inc.*, Fairfax, Va., is being awarded an $8,180,084 cost-plus-fixed-fee contract for services to provide engineering and analysis support for the implementation of ......
  • Immediate Systems Resources, Inc.
  • B-292856 December 9, 2003 Immediate Systems Resources, Inc. protests the rejection of its proposal under request for proposals (RFP) No. CMS-HPMS-03, issued by the Department ......
  • Digital System Resources Inc.
  • Digital System Resources Inc.,* Fairfax, Va., is being awarded an $8,000,000 cost-plus-fixed-fee modification to previously awarded contract (N00024-00-C-5130) to exercise an option for additional engineering ......
  • Franklin Resources, Inc., Announces...
  • SAN MATEO, Calif. -- On Thursday, January 24, 2008, Franklin Resources, Inc., (NYSE:BEN) will release its first fiscal quarter 2008 financial results. President and Chief ......