Right Sizing A ‘Tremendous Opportunity’

From May 2010, Hill’s™ Science Plan™ Canine is moving from a 15 Kg bag to a 12 Kg bag, maintaining the lower price per kilo pricing already announced. The previous price reduction announced in April has been applied proportionately alongside the smaller bag size, and so this sizing change creates the opportunity for shoppers to see a significant overall reduction at the point of purchase. The company describes the move as a tremendous opportunity for veterinary practices, as it creates the opportunity to make high quality petfood more affordable to more pet owners and drives footfall and loyalty. Market research by Hill’s™ identified that shoppers began adopting more frugal habits last year and because of the large bag size and higher pricing, began buying more petfood in grocery channels and purchasing petfood they perceived to be more affordable*. The effect is especially marked on larger sized canine bags that represent a greater outlay. For veterinary practices there are additional benefits: the smaller bags are easier to store and display, providing more opportunities to profit from available space, cash inventory is reduced and frequency of visits is increased, providing more opportunities to reinforce health care messages. Hill’s™ has evidence that these are very real benefits because in May last year, the company reduced the bag size on Science Plan™ Canine Adult Light from 15 Kg to 12 Kg. This resulted in volume growth of 11% for the brand and 38% more units were sold**, with accordingly greater profits for practices. As a result of improved accessibility of the 12 Kg bag, the 7.5 Kg large breed canine products will be delisted. There will also be improved packaging on the Science Plan™ range that helps pet owners to choose the right product for their pet. Practices will benefit from point of sale information that explains the bag size changes and underlines the very attractive feeding cost per day figures that pet owners could be enjoying from May onwards. Blake Hawley, Hill’sTM Managing Director for UK and Ireland reinforced Hill’s™ support for the veterinary channel, “We felt it was important to take decisive and timely action to support practices and ensure that pets continued to benefit from high quality nutrition. Providing the right product at the right price point, benefits everyone and allows more pets to enjoy the Hill’s products vets and vet nurses like to recommend.” For up to date price lists and support material to assist in communicating the change to pet owners, retailers should contact their Hill’sTM Territory Manager or call 0800 282438. *Hill’s™ Shopper Insight Study 2009 **Hill’s Market Data Sales Figures May-Dec ’09 vs. May-Dec ’08 Hill’s resale selling prices are recommendations only and there is no obligation on the retailer to comply with these recommendations.

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