Mars International Travel Retail (MITR) has introduced a refreshed category vision to retailers.
The new vision is based on the total confectionery category, including chocolate, confections and gum, and aims to unlock an additional US$1 billion in sales by 2020.
During the recent TFWA World Exhibition in Cannes MITR underlined its belief that it is ‘the’ partner to grow the total confectionery category given its “unique” cross-segment position with the world’s biggest brands in chocolate, confections and gum.
The company said it is outperforming other suppliers in the category and was voted number one in international travel retail by the Advantage Report. It emphasised its belief that confectionery plays a key role in travel retail.
MITR Category Director Matt Boulter said: “We are extremely positive about the future of the confectionery category. As passenger numbers continue to increase and with only 9% of travellers buying confectionery today, there is clearly massive headroom for this fun and impulsive category in travel retail.”
MITR said it would continue to drive sales through the conversion of lighter buyers, with a refreshed ‘Power of a Smile’ category vision to combine the “wisdom and power” of its brands.
“As MITR experienced strong growth in 2015, this is about doing more of what is already working and bringing it to the total confectionery category,” Boulter said.
“We know how travellers shop total confectionery; we know why they don’t buy, and we know how to remove those barriers to conversion to drive the category.”
The company said it had identified three key ways to unlock growth – through range, display and activation.
The range must be “right yet tight” to deliver across all key traveller needs, it stated. According to MITR’s research, “the product offer in travel retail is not yet delivering against consumer needs”. A key insight indicated that 45% of consumers want to purchase for themselves in an environment where only 10% of the portfolio answers that need.
MITR believes that whilst important, gifting is over represented in travel retail with 40% of the portfolio in this sector but is only required by 20% of travellers. Pack formats for ‘sharing’, MITR said, are the key driver of the category represented by 50% of the portfolio offered and demanded by 35% of travellers.
“Brands must provide products that deliver across consumer need-states and price levels. Yet today, there is too much choice and complexity in the category,” Boulter said.
MITR said range needs to be significantly rationalised in-store, adding that 90% of total confectionery sales value comes from just 18% of all SKUs.
Where display is concerned, Boulter said 70% of confectionery purchases are unplanned and the category has the highest level of impulsivity. MITR advocates clear, engaging displays of blockbuster brands and SKUs to drive sales, supported by strong tailored offerings in multiple locations. It underlined the importance of unlocking the potential of the checkout.
Boulter continued: “The checkout is the end of the shopper journey and offers amazing opportunities for incremental confectionery sales. This is as the shopper mindset changes at the checkout to focus on themselves. It’s a currently little-addressed need-state and MITR has both the knowledge and brand equity to maximise the impulse nature of this sales area.”
MITR said 75% of travellers do not visit the confectionery area in the main duty free store and emphasised the role of activation.
“The category has a huge opportunity to better disrupt travellers around the store and wider airport environment, confronting them at multiple locations covering every touch point of the journey from online/digital to the gate to the plane,” MITR stated.
“Disruptive activations tailored by location which bring the magic of the category to life and offer blockbuster brands are the principles to operate by.”
Boulter concluded: “Confectionery is a key part of the travel retail business, representing around 6% of the overall value and continuing to show year-on-year growth.
“We see that the cross-segment leaders are driving market growth and MITR is at the forefront of that success. We have ‘the’ actionable plan to transform the shop floor through range, display and activation and are looking forward to building strong partnerships with key retailers in 2017 to unlock total confectionery category growth.”
Look out for The Moodie Davitt Report’s interview with MITR General Manager Gary Clarke, coming soon.
