Value
VERSE: The model for growing the food category in travel retail
VERSE is the model around which NITR’s new roadmap is built. Its five VERSE pillars are: Value, Engagement, Regeneration, Sense of Place and Execution.
VERSE is the model developed to realise the Food #1 strategy. Its five VERSE pillars are: Value, Engagement, Regeneration, Sense of Place and Execution.
Value is all about fully optimising the proposition to the shopper. Engagement means talking to the customer across multiple touchpoints on the journey. Regeneration goes beyond sustainability and responds to increasing consumer climate concerns.
Sense of Place is a platform built on creating memories for the traveller. Execution ensures that the above initiatives are fully implemented and opportunities exploited. We uncover more about each of these pillars in the pages ahead.
Value formats of Nido milk powder has proven to be a powerful sales drivers in key Middle Eastern airports for NITR
Value is the first pillar of the VERSE model. Value doesn’t just encapsulate the price the consumer pays, but also the bundle of benefits that they receive. It is about the feeling the consumer has after the purchase, encompassing not only great brands but the opportunity to buy exclusive limited editions and enjoy the in-store experience that global travel retail is known for. In travel retail, Nestlé International Travel Retail (NITR) consistently delivers value by offering a portfolio of well-known brands such as KitKat, Smarties and Nescafé coupled with consumer experiences that elevate their overall travel experience.
Continuous investment in its travel retail portfolio highlights the strategic importance of the channel to Nestlé. This is evidenced by its research efforts into unlocking the potential of the food category to drive incremental sales and its innovative campaigns across its portfolio of brands. Highlights from recent months include new innovations and campaigns from KitKat, Smarties, After Eight and the travel retail-exclusive Nestlé Swiss.
NITR launched a vegan KitKat expression to better address the needs of Millennial and Gen Z travellers
The resilience and resurgence of confectionery
m1nd-set revealed that confectionery, which now has a 55% conversion rate compared to 60% pre-COVID, is experiencing one of the strongest rebounds in travel retail.
After a drop in 2021, the position of chocolate and confectionery as one of the most purchased categories in travel retail has been fully restored in the first quarter of this year, returning to pre-COVID levels. Confectionery, according to m1nd-set, is particularly popular among European and Millennial and Gen Z travellers, who are critical to growth and reversing falling conversion.
This bodes well for NITR, which has strong presence in global travel retail, with chocolate brands such as KitKat, Swiss, Smarties and After Eight playing key roles.
KitKat has been focused on releasing travel retail exclusives. These include KitKat Senses Tablets, as well as Pistachio and Lotus Biscuit flavours for KitKat Senses Mini Moments. Nestlé has also updated flavours for the KitKat Chunky Mix Gift Pack and introduced a four-flavour KitKat Mix Sharing Bag.
KitKat also launched a vegan expression, which has -18% the carbon footprint of the traditional KitKat Milk Chocolate Bar. The expression, designed to cater to environment- and health-conscious travellers, is being promoted with a strong communication plan in selected travel retail locations.
The KitKat Break Into a World of Flavour campaign used travel themes and strong digital engagement to inspire travellers to take a break and indulge in a KitKat
The KitKat Bus made a stop in Doha with Qatar Duty Free and showcased the Doha-exclusive KitKat Camel Dark Chocolate and Classic expressions
KitKat Live Your Break ran a multi-location campaign in Brazil with stopovers at Rio De Janeiro and Carrasco International airports in partnership with Dufry
For a minimum purchase of US$29, travellers were able to receive a special branded KitKat backpack in the two Brazilian airports
In the channel, NITR showcased KitKat with the omnichannel ‘Break into a World of Flavour’ campaign that engaged with travellers, pre-, during and post-trip. The campaign drove pre-trip engagement with programmatic digital advertising, created vibrant in-store displays and Out of Home media at the airport, and geo-targeted ads post-trip. KitKat Senses is expanding its range with two new flavours: Pistachio and Lotus Biscuit, while KitKat Chunky has been refreshed with updated flavours: Peanut Butter, Milk and Caramel. The After Eight brand has added a Gin & Tonic and Mint flavour to its line-up, while Nestlé SWISS has added new ‘perfectly imperfect’ Milk Chocolate Hazelnut flavour.
NITR highlighted the breadth of its chocolate portfolio at Singapore Changi Airport with a multi-brand showcase that offered Nestlé Swiss, KitKat, After Eight and Smarties
NITR promoted its KitKat Senses and Nestlé Swiss lines with a candy cart promotion at the cdf Sanya International Duty Free Shopping Complex in Haitang Bay
At the beginning of the year, NITR teamed up with Dufry to run a high-profile promotion at Santiago De Chile Airport
Smarties Cool Creatures
Smarties recently launched Cool Creatures, a line which aims to spark imagination and encourage children to explore the sea through colour with the help of digital elements, four construction toys, hexatubes, a playmat and eight pencils. It is the latest expression of the company’s ‘Play in our Colourful World’ global travel retail platform.
The release reflects the company’s dedication to sustainability and its ‘Learn Through Play’ strategy. It has been designed to spark children’s imagination and encourage virtual exploration while nurturing their appreciation for the underwater world. Functioning as both food and an educational toy, the innovation delivers plenty of value to families whether during a trip or as a gift upon returning home.
The Smarties Cool Creatures set includes 4 x 34g Smarties Hexatubes in recyclable packaging, four activity sheets, eight coloured pencils, stickers and a play mat. Inspired by Nestlé’s ‘Play in our Colourful World’ campaign, it allows children to create and customise four different sea creature toys.
Deep dive: The Smarties Cool Creatures Set brings an underwater world to life in an engaging and educational manner
Colourful, digitally driven, in-store promotions brought the Smarties Cool Creatures innovation to life at Madrid Airport
The concept is a collaboration between Nestle’s long-term design and strategy partner ECHO and augmented-reality content creation agency Zappar. “This type of augmented reality is a significant first for NITR,” explains Senior Brand Manager Macarena Jimenez.
“Scanning the on-pack QR code gives access to a colourful, interactive virtual world, where users can become a marine explorer, learn fun facts and take part in a marine expert quiz.”
NITR ran an array of in-store promotional activities and digital activations to support the launch. These experiences offered an interactive phygital experience that highlights the set’s sustainable message.
Jimenez says: “Once again, Nestlé ITR is leading the narrative with an eye-catching travel retail-exclusive that cleverly combines its famous chocolate treats with a diverse range of imaginative, educational and, above all, fun activities to keep travellers entertained while learning.”
Spotlight Series – September 2023