INTERNATIONAL. Nestlé International Travel Retail (NITR) revealed some major strategic initiatives – including its new “˜perfect store’ concept – and its product line-up for 2010 at the TFWA World Exhibition last month.
Presenting key findings from Sweden-based Generation Research and NITR Research, NITR Head of Sales Ian Robertshaw underlined the resilience of the confectionery category in this difficult market.
“Confectionery is the category to support in 2010,” he said. It is now the third-largest and fastest-growing category in travel retail, offering mass consumer appeal. With global sales of US$2.6 billion, confectionery now makes up 7.2% of global travel retail sales. The category has posted growth of +16.5% versus 2007, and is projected to grow by more than +60% in sales by 2013 versus 2008.
Add to that the benefits of variety, versatility and with purchases strongly motivated by impulse, confectionery is in an ideal position to maximise its impact on the travel retail channel, Robertshaw added.
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“Confectionery is the category to support in 2010,” says Nestlé ITR Head of Sales Ian Robertshaw (far right), pictured here with Marketing Manager Frédéric Porchet and General Manager Catherine Saurais at the TFWA World Exhibition |
NITR believes the key for building sales in 2010 is to offer consumers more value at a better price. Its focus will be on family gifting with Smarties; informal gifting with Nestlé Swiss; and snacking and sharing, both with Kit Kat – celebrating 75 years – and its sharing packs range.
In addition NITR will be promoting its ‘perfect store’ concept which provides retailers with the tools to maximise sales through category management, display and merchandising solutions.
THE PERFECT STORE
The Perfect Store is “both an objective and a practical tool to support the flawless execution of a total category growth strategy”, according to NITR.
The concept is born from years of extensive shopper and consumer research, including two key studies from 2008 and 2009.
In 2008 NITR interviewed passengers at 30 key airport locations around the world, gathering 40,000 responses to questions on confectionery shopping motivations and purchase triggers. In addition, during 2008/09 NITR performed an in-depth study of actual shopper behaviour in-store, monitoring over 20,000 shopper movements in and around the confectionery zone.
By implementing the Perfect Store model, NITR hopes to achieve one simple vision for the category: “to drive confectionery into every basket, every time”.
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To achieve this vision and create the Perfect Store, NITR said that the execution of confectionery must focus on delivering the following strategies:
• Make confectionery easy to understand and easy to shop
• Encourage shoppers to interact with the category
• Make confectionery accessible to all shoppers
• Build confectionery based on how shoppers shop
Armed with knowledge of the planning shoppers undertake, NITR claims that there is an opportunity to influence almost 80% of purchase decisions in store.
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Creating the Perfect Store can be achieved by following the five steps to execution below:
1. Brand or category layout
– To display confectionery by brand and manufacturer, or based on shopper purchase decisions (“˜Gifts for Him’, “˜Gifts for Her’, “˜Family Gifting’, etc.); flexible combinations to cater to specific markets
2. Retail basics
– Range management: drive range efficiencies and match shopper needs
– Planograms: Use planograms to drive discipline
3. Shopper interaction
– Maximise shopper interaction to drive conversion, e.g. the use of interaction gondolas where shoppers can sample chocolates and which play the sounds of Switzerland upon shopper contact. (According to NITR Research, 52% of all shoppers who interact will go on to make a purchase)
4. Accessibility
– Till point: Confectionery enjoys a +50% rate of sale increase when placed at the till point, said NITR. Up to 40% of confectionery is purchased on impulse
– Gifting unit/cross category information and unit: Provide a ready-to-go total gift solution by, for example, displaying gift paper bags alongside confectionery products
5. Events and seasonality
– Events: Create bolder, bigger activity to bring confectionery to life
– Optimise calendar occasions such as Ramadan, Christmas (with winter ranges), Easter, etc.
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By implementing the Perfect Store model, NITR hopes “to drive confectionery into every basket, every time” |
2010 SUB CATEGORY AND NEW PRODUCTS FOCUS
Recognising that exclusivity is an important driver in travel retail, NITR’s motto for new product launches in 2010 is to add value to the whole range.
Family gifting – Smarties
Family gifting represents 5.3% of the confectionery pie and is growing steadily, NITR said. Smarties lines, exclusive to travel retail, hold 43% of that market share and remain a major focus for NITR.
2010 sees a rejuvenation of the range – both Disney and non-Disney products. New designs create brighter, better, more coordinated on-shelf appeal, while presentation concepts offer improved play and perceived cost value.
Smarties Disney Toppers has upgraded characters for the Winnie the Pooh, Cars and Princesses ranges and new, improved play appeal – Winnie the Pooh figures are now stamps, Cars have an enhanced metallic appearance and Princesses have new twirling movements. The old four-tube multi pack has been replaced with a colourful card three-pack for each range, all with games on the back.
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The Disney Dispensers range has been extended with a new Cars version ( far left), while the old four-tube multi pack has been replaced with a colourful card three-pack for each range, all with games on the back, to increase “˜giftability’ |
“The idea was to focus on the “˜giftability’ and play value of the multi pack,” said NITR General Manager Catherine Saurais. “The new look increases visibility on shelf, has better perceived value and, through reducing the quantity from four to three packs, the item becomes more affordable.”
In addition, NITR has revamped the Disney Dispensers, adding a new Cars version.
The non-Disney Smarties collection has also been revamped. The Travel Cup has a new, modern and hygienic drinking mechanism while the Colouring Set has similarly been given a facelift in the same spirit with brighter, better coordinated designs.
Finally, in a year-long promotion, the Smarties Sharing Pack includes a free Cars model for added value and collectability.
Informal gifting – Nestlé Swiss
Accounting for 45% of the confectionery market, informal gifting offers the broadest choice of packs and globally recognised brands within the confectionery market. Combined with the further 28% market share held by the sharing segment, the importance of these two sub-categories is clear.
The strength of Nestlé Swiss lies in being one of the few brands that is totally exclusive to travel retail. “We are not talking about exclusive products here but a completely exclusive brand range,” said Saurais. “We receive emails from customers all over the world who have bought Nestlé Swiss in travel retail and are so desperate to be able to buy it on the domestic market. They cannot – that is our strength.”
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The Nestlé Swiss product line-up for 2010 includes the 500g Nestlé Swiss Sharing Pack with 50 milk chocolate chunks (left) – each bearing an indented Swiss cross – and new milk and fruit and nut 135g individual bars |
The 400g tablets remain the cornerstone of the range. However, 2010 sees the addition of new value and smaller gift options designed particularly to appeal to the Asian consumer, who prefers to buy multi packs of smaller items.
These include new milk and fruit and nut 135g individual bars – ideal for self-treat or a mini gift and offering the opportunity for product trial by consumers new to the brand. A counter top dispenser has also been designed for point of purchase sales.
Also new is a 230g, 44-piece version of the Assorted Tower (currently available as a 460g size), plus the addition of a 500g Nestlé Swiss Sharing Pack with 50 milk chocolate chunks – each bearing an indented Swiss cross.
“”˜By introducing alternative weights and price points we believe that Nestlé Swiss will further broaden its appeal, serving different needs and requirements by offering a lower entry price point and promoting volume growth,” said Saurais.
Snacking/sharing – Kit Kat celebrates 75 years
The TFWA World Exhibition marks the start of an unforgettable year in travel retail for Kit Kat in celebration of its 75th anniversary. A combination of new limited edition packs and fresh presentations for existing bestsellers, plus a host of planned promotions have been lined up for 2010.
A “˜giftability’ concept has been created for Kit Kat via a celebration 75th anniversary logo which is exclusive to travel retail, and the use of story boards and time lines that tell the story of Kit Kat from its conception in 1935 to present day.
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In 2010 Kit Kat will celebrate its 75th anniversary exclusively in travel retail with new limited edition packs, fresh presentations for bestsellers and a host of planned promotions, to create a greater sense of “˜giftability’ for the brand | |
Brand new is a 48 two-finger 993g Gift Box and 200g 12 x two -finger Mini Dispenser, both recreating the original Kit Kat logo. In addition, the existing 540g Milk and 360g Dark Travel Packs Chunky Trio-Packs and Minis Sharing Bar have all been repackaged with the Celebration logo and brand story and time line. In flavour terms, the Chunky Trio-pack contains a new caramel version, joining milk and white.
“Kit Kat is a huge snacking brand; our challenge for travel retail is to create a greater sense of “˜giftability’ for the brand,” added Saurais. “The opportunity that the 75 year anniversary creates for Kit Kat, being exclusively celebrated in travel retail, provides us with a solution to that challenge for 2010.”
Following Nestlé’s addition of Nesquik, Quality Street and After Eight sharing bags to the range last year, the company is further developing this sector with a Nestlé Swiss option, adding Premium to the range.
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