Nestl? launches its latest trade vision

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Nestl? International Travel Retail (NITR) says that with travel retail market growth exceeding that of all other categories and confectionery now proven to be resilient, the current outlook remains very positive for the category, as

it launches its latest trade vision, supported by 'compelling shopper and consumer insight'.

Nestl? says that confectionery continues to be a very versatile offer that satisfies all the needs of the travelling shopper, with the category providing a broad range for all tastes and pockets and appealing to all ages, cultures and demographics. It is for these reasons that retailers should focus on the category in 2009, argues the company.

Nestl? describes confectionery as a 'thinking category' at a time when the current economic environment sees many retailers looking to their suppliers for inspiring answers to existing or imminent sales declines. Nestl? claims confidently that has those answers.

Catherine Saurais, Nestl? International Travel Retail General Manager, said: ‘We are determined to continue to grow sales in the channel by thinking total-category. Better than ever before, we know our shoppers and we know how to get them to purchase more products. Confectionery is perfect for filling the void where a shopper may trade out of a more expensive category, but buying a gift or treat is still an essential part of their journey.

‘Our approach is all about making confectionery relevant to all travellers, giving them an experience and ensuring their purchase needs are easily satisfied. Our insight has shown that we have a significant opportunity to convert browsers into buyers. The result of this approach is a clear sales benefit for all suppliers and our retail partners, while improving the experience for shoppers. In summary: a win-win-win situation.’

Nestl? is also driving the mantra of its vision, which is 'Drive Confectionery Into Every Basket, Every Time' and it says that this vision is embedded in four key principles:

1) Make it relevant and easy for shoppers to buy confectionery;

2) Engage shoppers and drive category interaction;

3) Make confectionery accessible to ALL shoppers;

4) Display confectionery based on how shoppers shop, while creating an enticing environment.

At the same time, the company has identified 'some compelling insights from all regions' – information that it says clearly supports its vision of confectionery in every basket and the resulting growth of the total category.

Under the heading of 'Insight Driving Activation' the company says that insight alone will not deliver growth. Ian Robertshaw, Head Of Sales said: ‘The Nestl? vision is as much a call to action as it is a platform for conversation. We firmly believe there is an opportunity to drive growth by addressing the basics and then creating a new retail experience.

‘We know conversion is the biggest opportunity in the category and if we deliver our vision and plan with customers it can then lead to the holy grail of driving additional store traffic.

‘We've created a clear 'path to the perfect store' which outlines the steps every retailer has the opportunity to take to deliver additional sales. We're showing our customers exactly what should be done and we're providing solutions for every step of driving the opportunity. We've evolved our category thinking, we're creating possibilities and painting a clear picture of the future of confectionery in Travel Retail’.

Under the title of 'The Four Principles for Growth' the company says that the aforementioned four points are essential for retailing excellence and 'getting the right range in the right place' is the only way to kick start growth for the category.

Nestl? states that in many cases, the confectionery range can be up to 75% larger than tobacco and 50% larger than liquor. The result is shopper confusion at the fixture. The company says that it has proven that by simplifying the range and implementing some discipline on shelf, sales can grow by up to +15%. The company adds that engaging shoppers in store is also key to driving conversion and it suggests that more than half of all shoppers who interact with confectionery will go on to purchase.

Robertshaw adds: ‘With more than half of purchases made on impulse, the opportunity for extra sales cannot be ignored. We now know what else the confectionery shopper buys in store and which other categories they are likely to engage with. Ensuring confectionery is a part of that journey provides a huge opportunity for both retailers and suppliers and gives the shopper a much-improved experience.’

Nestl? goes on to add that displaying the category based on how shoppers shop is the final step to delivering the perfect store, along with building on the category drivers of Premium Gifting, Children's Gifting, Snacking, informal Gifting and Destination Gifting. It says these factors can build sales growth by more than 20% with the right execution.

Nestl? emphasizes that the opportunity is to excel at the basics and then deliver an enticing and cutting edge view of confectionery retailing. Saurais adds: ‘There is no one-solution-fits-all to this. We will work very closely with our customers to develop relevant executions. Our thinking is to drive a collaborative brand and category solution that makes confectionery a delight to shop.’

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