Nestlé moves to next ‘perfect store’ phase

By Doug Newhouse |

Nestlé International Travel Retail (NITR) reports that it is maintaining its investment and development of its ‘Perfect Store initiative’ aligned with building competences in building penetration, creating the ‘perfect gift offer’ and increasing the size of customer spends/baskets.

The company says it has activated a number of projects with customers centred on these competencies modules, leveraging the four purchase drivers of a ‘Perfect Store’ which it says are: Ease of Shop; Relevant Gifting; On the Go Snacking; and Entice, Engage & Convert.

The company claims that its projects to date have delivered instant results, exceeded original expectations and added collective value for all stakeholders. 

In a detailed statement, the company said: “At TFWA Asia Pacific, Nestlé will be showcasing its Perfect Store initiative, outlining project successes to-date with a specific focus on the results of Cash Till Point pilot project. Nestlé will also present a summary of its first-to-market behaviour research that is centred on the shopper journey (literally ‘through the eyes of the shopper’), not only in the confectionery category but also in the total store.

“The confectionery category has accelerated its pace in 2011, building on the momentum of a successful 2010 that already delivered double-digit growth. As the category as a whole still has tremendous growth potential, Nestlé continues to focus on driving category growth rather than only gaining share from its competitors. 

“Its shopper-centric approach is based on a deep understanding of the needs of the traveller, regardless whether they are planning to buy confectionery or not.

“The growth expectations for 2011 remain bullish, but – as usual – it is unlikely to be all smooth sailing. The key challenge in the confectionery category is the rising raw material costs. Sugar and cocoa prices have hit the highest levels in three decades. 

“The average price of cocoa powder has more than doubled in 2010 versus 2009, while the price of milk powder has increased some 20%. Unlike other major travel retail categories, confectionery is for the most part commodity based, and increases in those have an immediate and dramatic impact on margins. 

“Hence, any substantial cost increases need to be passed on to the consumer if investment and growth levels are to be sustained.” 

Meanwhile, NITR will highlight its 2011 new product range at the TFWA show, with a focus on its three global brands: NESTLE SWISS, SMARTIES and KIT KAT, along with the regional brands of AFTER EIGHT, QUALITY STREET and BACI.

It says that NESTLE SWISS – which is only available in travel retail markets – has performed ‘above all expectations’ during the past 12 months, with sales of the 400g bars showing a double percentage increase year on year. 

The company added: “For 2011, the brand has seen further premiumisation with new look packaging that creates a more sophisticated look without losing the essential ‘Swiss pureness and authenticity” feel, plus a new gift pack which crosses the line between informal and premium gifting: NESTLE SWISS SELECTION. 

“This 180g box comprises three varieties of delicious chocolate squares topped with ingredients: dark chocolate with almond and cranberries, milk chocolate with lemon and almonds, and milk chocolate with caramel and salt. In addition, there is a new 400g flavour – NESTLE SWISS DARK ORANGE – meeting the trend towards dark chocolate.

Other new developments include the following:

• SMARTIES: For 2011, NITR brings back the favourite Disney characters Mickey Mouse, Minnie Mouse and Donald Duck in two brand new formats designed to combine play appeal with the need for portion control and value for money.

• KITKAT: A new Singles pack containing 12 individually wrapped 80 calorie single finger wafers – ‘answering the trend towards portion control’. A new souvenir Origins Box with images of a London Bus, Big Ben and the UK flag, containing 14 bars in both milk and dark varieties. Also on show will be new multipacks of six KIT KAT C in an improved gift design, including the new hazelnut flavour.

• QUALITY STREET: This brand will be available in exclusive travel retail packaging that reinstates the original and iconic Mackintosh’s Major and Miss. Celebrating its 75th anniversary, the brand will also be available in an 850g tin, 438g carton or 750g sharing bag, all with a special 75 years logo.

• SNACKING AND SHARING: A new Mini Mix 500g Sharing Pack and a 1080g Mini Mix Sharing Pillow bag; both containing a mixture of Nestlé’s favourite and worldwide renown brands such as SMARTIES, KIT KAT, ROLO, LION AND AERO.

Also on offer are new smaller snack packs of NITR favourites such as NESTLE SWISS, KIT KAT, AFTER EIGHT AND QUALITY STREET, introduced as part of the growing trend towards portioned self indulgence and on the go snacking. These four resealable bags weigh between 145g and 220g.



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