Promotional activity is very important for driving honey sales in retail, with 24.6% of honey’s total dollar sales in 2016 occurring due to some sort of promotion. Temporary price reductions (a discounted price available in store but not advertised) are the most common promotional tactic, accounting for 11.1% of all honey dollar sales and driving a 28.2% incremental dollar lift (meaning 28.2% greater dollar sales occurred because of the TPR)1.
Off-shelf displays of honey were involved with only 6.7% of honey dollar sales during 2016. When honey was on display without a supporting feature (circular) ad, the display activity drove a modest 13.0% incremental dollar lift in sales; however, when the display activity also included a feature ad, the impact increased exponentially, driving an 85.3% incremental volume lift! This lift is more than three times greater than the lift generated by a Temporary Price Reduction and more than six times greater than a honey display alone1.
The National Honey Board offers four merchandising recommendations to increase sales of honey in the retail channel:
1. Merchandise all honey SKUs together in a block within the grocery aisle, grouped by brand with the larger sizes to the right.
2. Avoid placing honey on the highest or lowest shelves. Instead, strive for placement on the “reach level” shelving, located between waist and eye level.
3. Whenever possible, seek incremental (secondary) placements of honey SKUs beyond of the core honey section, merchandising honey adjacent to complementary items and categories. For ideas, look at the top-ranked categories from the basket affinity study described above.
4. Use signage on displays and shelving to suggest additional uses for honey, while also reinforcing how honey is natural, unprocessed and flavorful (the key attributes that shoppers perceive, according to an NHB Segmentation Study).
1. Nielsen AOD Base and Incremental Facts.