TFWA World Exhibition & Conference saw Mars International Travel Retail (MITR) introduce a refreshed category vision to retailers that is based on the total confectionery category – chocolate, confections and gum – which aims to unlock an additional $1bn in sales by 2020.
MITR’s key message is 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 & gum. Currently outperforming other suppliers in the category and voted Number 1 in International travel retail by the Advantage Report, MITR believes confectionery plays a key role in travel retail – and it is the partner of choice to maximize its potential.
Says MITR Category Director Matt Boulter: “We are extremely positive about the future of the Confectionery Category. As passenger numbers continue to increase and with only 9% of travelers buying Confectionery today, there is clearly massive headroom for this fun and impulsive Category in Travel Retail.”
MITR will continue to focus to drive sales through the conversion of lighter buyers, with a refreshed Power of a Smile category vision to capture the collective wisdom and power of both its chocolate, confections & gum 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,” continues Boulter. “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.”
MITR has identified three key ways to unlock growth through Range, Display and Activation.
First and foremost is RANGE: offering the right, yet tight, assortment to deliver across all key traveller need states. According to MITR’s research, “the product offer in travel retail is not yet delivering against consumer needs” with the key insight that 45% of consumers wanting 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 only required by 20% of travellers. Pack formats for ‘sharing’ are the key driver of the category currently represented by 50% of the portfolio offered and demanded by 35% of travellers.
Continues Boulter, “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.” MITR believes range needs to be significantly rationalized instore; as 90% of total confectionery sales value comes from just 18% of all SKUs.
The second key is DISPLAY. “70% of confectionery purchases are unplanned and the category has the highest level of impulsivity,” continues Boulter. MITR advocates clear, engaging displays of blockbuster brands and skus to drive sales, supported by strong tailored offerings in multiple locations throughout the shopper journey. Vital to this effort is unlocking the potential of the check out that, says the company, “offers a unique opportunity to increase basket size and grow confectionery conversion”.
“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 maximize the impulse nature of this sales area,” adds Boulter.
Final key is ACTIVATION. As 75% of travellers don’t visit the confectionery area in the main duty free store, 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. Disruptive activations tailored by location which bring the magic of the category to life and offer blockbuster brands are the principles to operate by, says MITR.
“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 Mars International Travel Retail 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,” concludes Boulter.
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