Updating the 'Marketing in practice' box on p. 135 of my new Essential guide to marketing planning, Poundland has expanded its pricing and product mix beyond the traditional £ 1 unit price. Now owned by Steinhoff International, the discount retailer has a variety of price-oriented straplines, including: 'Big brands cost less'.
In stores and online, Poundland now sells many items for more than £1--with the vast majority of merchandise selling for less than £10. Above, the website shows branded items selling for 'only £2 each'.
The product mix includes more clothing than ever, thanks to a 'shop within a shop' arrangement with the Steinhoff-owned brand Pep & Co. Pep's managing director says: 'The combination of Pep&Co’s design and style credentials - with pricing that’s amazing - will help create a brand new option that helps mums on a budget'.
Having Pep stores within Poundland should increase footfall and bring shoppers back for fashions as well as everyday household goods like laundry detergent. How will Poundland's reputation for low prices be influenced by this multi-price strategy?
