Nestlé’s SOUL to shape travel retail strategy in 2019

By Charlotte Turner |

NITR-Cannes-2018-press-conference-leadNestlé International Travel Retail (NITR) will focus on pillar brands, KitKat, Smarties and Nestlé Swiss in 2019, with a plethora of new product launches, interactive merchandising units and on-airport promotions which the company previewed at this year’s TFWA World Exhibition & Conference.

 

NITR elaborated on its SOUL (Stories, Occasion, Unique, Local) strategic framework, which will shape its activities going forward. This way of thinking is said to be particularly relevant for millennials who represent 50% of all spend in travel retail (Nielsen 2017).

 

“Millennials’ use of technology has drastically changed the way they interact with brands; they are now more likely to disengage for entertainment and social media, where they share their experiences widely,” says NITR.

 

NITR says its SOUL framework and the 2019 innovations presented at TFWA Cannes, are an answer to these industry challenges as they aim to deliver ‘sustainable category growth by offering value through aspirational and shareable brand stories and enrich consumers’ travel experiences’.

 

SEAL OF APPROVAL: TRAVEL RETAIL AWARDS SHORTLIST

Nizar-Belhachmi-Nestlé-ITR-Cannes-2018

Nizar Belhachmi, Marketing Manager for NITR.

KitKat, which is now sold in over 90 countries, including Japan where it is still the No 1 chocolate brand, will see a number of new initiatives and products released this year, including the new Senses Mini Deserts range. The range will be available from March 2019 in a 202g format.

 

“Following the initial success and shoppers’ response to KitKat Senses, which was recently shortlisted by shoppers for the world-renowned Travel Retail Awards 2018, NITR is launching KitKat Senses Mini Deserts,” says NITR.

 

“This premium addition will build on the success of the range ­ a travel retail exclusive proposition geared for millennials ­and will feature four new and indulgent dessert flavours including Tiramisu, Crème Brulée, Strawberry Cheesecake and Cherry Brownie.”

 

Marine Florin, KitKat Senior Brand Manager told TRBusiness that with this particular range Nestlé had identified a gap in the market; ‘mid-tier gifting’.

 

According to Florin, upon showing the new range to retailers, they received a very positive reaction. “They too see the gap in the market…as we have seen with the original Senses range, we have had amazing results all over the world. It has been a huge success.”

 

Nestle-ITR-team-Cannes-booth-2018

A group shot of the Nestlé travel retail team taken in front of the KitKat bus prototype which is already generating significant sales growth for the brand in select locations.

 

Interestingly, the KitKat brand as a whole will carry a new visual identity with the ‘K’ standing out “in harmony with the vibrant triangles and patterns on the packaging, conveying a modern look and feel to the product,” says NITR.

 

THE BRIT APPEAL

NITR plans to really bring the brand to life in store with activations and new POS units – prototypes were on display at the NITR booth in Cannes – such as the iconic British double-decker bus, complete with an interactive capability, which aims to increase penetration into duty free stores.

Marine-Florin-Nestlé-ITR-booth-Cannes-2018

Marine Florin, KitKat Senior Brand Manager told TRBusiness that with KitKat Mini Deserts, Nestlé is catering to a demand for ‘mid-tier’ gifts; a gap in the market.

 

In fact the bus unit has already been trialled at Delhi International Airport and “has proven to deliver impactful in-store sales and resonates with customers, particularly millennials”, says NITR.

 

Smarties-Music-Creator-Nestle-ITRNizar Belhachmi, Marketing Manager for NITR told TRBusiness that the new units are rolling out now and that the initial trial period for the bus, in particular, saw sales rise 20% for KitKat.

 

SMARTIES SPARKS

Moving on to Smarties, NITR says it will ‘continue to spark kids’ creativity, building on its relaunch campaign that aims to inspire children (and the child in all of us).

 

Packshot_NITR_wrapper_195g_OrangeAs a result, NITR has revealed the launch of Smarties Music Creator (pictured left) which acknowledges the importance of music in our kids’ development and offers them the opportunity to learn.

 

The product includes a Smarties 38g hexatube, a quality recorder and a music sheet, which teaches children how to play three popular children’s songs.

 

Finally, Nestlé will launch three new 195g tablets from Nestlé Swiss; its more premium travel retail exclusive brand which incorporates cocoa from 100% sustainable sources, in accordance with the Nestlé Cocoa Plan.

 

NEW SWISS INGREDIENTS: EXPOSED

The three new tablets include; Milk with Cranberries, Almonds and Hazelnut, Milk with Raisins, Almonds and Hazelnut, and Dark Chocolate with Orange Zest and Cacao Nibs.

 

Stewart-Dryburgh,-General-Manager,-Nestlé-International-Travel-Retail-2018

Stewart Dryburgh, General Manager, Nestlé International Travel Retail.

The brand underwent a ‘successful’ relaunch this year following a 12-month redevelopment programme.

 

NITR was keen to show TRBusiness the unique way in which the ingredients in the new tablets (such as candied orange peel pictured above) are exposed within the chocolate; a real USP according to Nizar Belhachmi.

 

He was also keen to show off the prototype of a new Nestlé Swiss ‘Basel gondola’ complete with an impressive animated digital display, which the company believes will really catch the eye of travellers passing through duty free stores, whilst promoting the brand’s origins.

 

In a final word,  Stewart Dryburgh, General Manager, Nestlé International Travel Retail, said of the new innovations: “Continuing our focus on insight-based innovation, we are creating an outstanding range of exclusive travel retail products combining quality ingredients, engaging packaging and unique brand experiences.

 

“We are confident that these new propositions for 2019 will resonate with consumers, particularly millennials, and will continue to drive category growth.”

 

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