Speciality
Food Magazine, January 2005
TREAT YOURSELF ON IMPULSE
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According to Mintel research, snacking has been a significant driver behind the growth in cake sales, as increasingly consumers opt for convenient foods that can be eaten on the go. Indeed, sales of individual wrapped cakes were worth £700 million in 2003, and are expected to rise by 5.7% in 2004 to reach £740 million. Mintel also suggests that over 40% of all cake sales are made on impulse, helping to satisfy consumer demand for an affordable and convenient indulgence product. And, since impulse buys depend significantly on the look and placement of the product, it is important that retailers offer a selection of interesting choices that can be displayed at eye-level on the deli counter. |
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As the demand for individually wrapped cakes has grown, there has been a proliferation of products hitting the market, from cake and cereal bars, to flapjacks and slices. These types of products are perfect for counter displays. Honeybuns hand bakes an array of traditional and more unusual cakes. Appealing to the impulse buyer, the products are individually wrapped and can be displayed at point of sale to attract add-on purchases. Aware that the visual appeal is what initially draws in sales, the company is careful to package the cakes attractively. Explains Emma Goss-Custard, founder of the business. "One thing we were definitely a little bit backwards on in the beginning was presentation and point of sale material. By acknowledging the high quality, up and coming competition, we got a bit more serious about branding. We visited retailers to listen to what they needed in terms of presentation and 'eye appeal' and they have been very supportive of our attempts to consolidate our Honeybuns brand image. Competition has proved to be an excellent motivator!" |
Ms Goss-Custard believes that simple displays are the best way to promote cakes as impulse buys. "I think there's a really fine balance to be struck between creating a stunning, quirky presentation at point of sale and on the other hand going over the top on branding and losing that home made look," she says. "Just as customers are delighted to discover non mass-produced food items, they also seem to truly appreciate packaging and point of sale material that has been thought out with a bit of individualism, care and fun. "We have found things like shelf wobblers, A4 and A5 cardboard 'picture frame style' signs and window stickers to be well liked and effective. In the case of our shelf wobblers, it was only by going out to meet retailers that we learnt that sticky pads to secure them were a nuisance. They had to be torn off the glass counter for cleaning down. With retailers' feedback we have opted for shelf clip attachments." Placing the cakes in a prominent position on the counter can boost sales; the company can also help with tastings. "We are happy to send out boxes of mini samples for tastings," says Ms Goss-Custard. "We also find that when retailers come and visit us they get really enthused and are then more comfortable with selling the product and, equally as important, they can tell their customers the story behind the cakes." |
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She adds, "Promotions, particularly with seasonal lines, can provide an opportunity to gain additional sales." The company has seen a 30% growth in the independent sector during the last year, further confirming the interest in premium ready-made bakery options. Continues Ms Goss-Custard, "It is always very flattering to be told that our cakes taste home made. We find that nowadays, people generally want to know how the cakes are made and what with. It stands to reason that if they can't make them themselves due to lack of time, then they want to know, absolutely, that they are getting the next best thing." She adds, "Thrilled as we are to receive compliments, I personally do not think anything beats making your own cakes in your own kitchen. We strive to make the best possible cakes we can, using local ingredients, or the highest quality imported exotica. However, we are still creating, in my view, 'the next best thing' to making them yourself." |