Perfetti Van Melle, the global confectionery giant behind brands like Mentos and Chupa Chups, is capitalising on impulse buying and innovative packaging functionality to expand its market reach. By strategically placing products at points of sale and offering multifunctional packaging, the company aims to enhance consumer convenience and product relevance, particularly in travel retail.
Market Trends
Impulse Buying as a Key Marketing Strategy
Perfetti Van Melle's approach underscores the critical role of impulse buying in the confectionery market. Consumers often purchase confectionery items like mints and lollipops impulsively rather than planning these buys. This behavior is particularly leveraged by placing key products at cashier tills, both in domestic and travel retail settings.
Strategic Product Placement: By positioning products such as Mentos mints and sugar-free Chupa Chups at the counter tills, Perfetti Van Melle maximises the likelihood of impulse purchases. This tactic is especially effective for items that serve immediate needs, such as breath fresheners. As Sander Prins, Area Manager Travel Retail, explains, consumers often decide to buy mints on-the-go rather than entering a store specifically for them.
Targeting Health-Conscious Consumers: The introduction of sugar-free Chupa Chups caters to health-conscious consumers who may not typically browse the confectionery aisles. Placing these products at checkout points allows the brand to capture the interest of those watching their sugar intake, facilitating spontaneous purchases. This strategy not only addresses a niche market but also enhances product visibility and accessibility.
Cultural Preferences and Regional Variations: Perfetti Van Melle has observed varying preferences across different regions. For example, Chupa Chups are significantly more popular in the Middle East compared to Mentos, attributed to the regional preference for sweeter products. In contrast, other Asian markets exhibit a balanced demand for both brands.
Functional Packaging Enhances Product Appeal
In addition to impulse buying, Perfetti Van Melle is focusing on the functionality of packaging, particularly in the travel retail sector. This strategy involves creating packaging that serves a dual purpose, adding value beyond the product itself.
Multifunctional Packaging: Perfetti Van Melle’s products are designed with long-term functionality in mind. For instance, packaging can be repurposed as pencil boxes, backpacks, or containers for other items, thereby extending the product's relevance and utility. This approach resonates well with consumers who appreciate added value, especially in the context of travel retail where gifting is common.
Engaging Children and Prolonging Use: The company also targets products that can entertain children, such as marker pens, playing cards, and colouring books included with the confectionery. These multifunctional items keep children engaged for longer periods, enhancing the appeal of the products to parents and caregivers looking for practical and entertaining gifts.
Regional Flavor Preferences: Globally, fruity flavours dominate the confectionery market, with strawberry being particularly popular in the APAC region. Perfetti Van Melle caters to this preference by offering a variety of strawberry-flavoured products, including special travel retail packs dedicated to the most popular flavours like regular strawberry, sour strawberry, and milky strawberry. This focus on flavour preferences ensures that the brand meets consumer tastes and sustains high demand.
Strategic Actions
Strategic Action 1: Enhance Impulse Buying Opportunities
To maximise impulse buying, Perfetti Van Melle should continue to strategically place their products at high-traffic areas within retail environments. This strategy is particularly effective for capturing spontaneous purchases and increasing product visibility.
Steps for Implementation:
Expand Checkout Placement: Increase the number of SKUs placed at checkout counters across various retail formats, including supermarkets, convenience stores, and travel retail outlets. Ensure high visibility and easy access to encourage impulse purchases.
Innovative Display Solutions: Develop eye-catching display solutions that highlight the key benefits of the products, such as sugar-free options and breath-freshening properties. Use attractive visuals and concise messaging to capture consumer attention.
Leverage Data Analytics: Utilise data analytics to identify high-performing retail locations and optimise product placement strategies. Monitor sales data to assess the effectiveness of impulse-buying initiatives and make data-driven adjustments.
Conduct Regional Market Research: Perform detailed market research to identify the most popular flavours in different regions. Use consumer surveys, sales data, and focus groups to gather insights into local taste preferences.
Develop Region-Specific Products: Create or adapt products to cater to these preferences. For instance, offering a variety of strawberry-flavoured Chupa Chups and Mentos in the APAC region, where fruity flavours are particularly popular, can boost sales and consumer satisfaction.
Customised Marketing Campaigns: Develop marketing campaigns that highlight the most popular flavours in each region. Use localised advertising and promotional strategies to connect with consumers and emphasise the brand's commitment to meeting their specific tastes.
Monitor and Adjust: Continuously monitor sales performance and consumer feedback to adjust product offerings and marketing strategies as needed. Stay agile to respond to changing consumer preferences and emerging trends.
Capitalising on regional flavour preferences is expected to increase market share, improve consumer loyalty, and boost overall sales. This approach allows Perfetti Van Melle to cater to diverse consumer tastes, fostering a stronger connection with local markets.
Case Study: Perfetti Van Melle's focus on strawberry-flavoured products in the APAC region has proven successful. The introduction of a "Best of" variety pouch dedicated solely to strawberry flavours, including regular, sour, and milky strawberry, has capitalised on the local preference for fruity flavours, leading to high demand and strong sales performance.
Strategic Action 2: Enhance Visibility and Accessibility in Travel Retail
To maximise opportunities in the travel retail sector, Perfetti Van Melle should enhance the visibility and accessibility of its products. This strategy involves creating attractive displays and ensuring that products are easily accessible to travellers, particularly in high-traffic areas.
Steps for Implementation:
Optimise Display Locations: Place products in strategic locations within travel retail environments, such as near boarding gates, duty-free shops, and checkout counters. Ensure high visibility and easy access to capture the attention of travellers.
Create Engaging Displays: Develop eye-catching and informative displays that highlight the benefits and unique features of the products. Use visuals, signage, and interactive elements to engage travellers and encourage impulse purchases.
Offer Travel-Friendly Packaging: Design packaging that is convenient for travellers, such as resealable packs, compact sizes, and multifunctional packaging that can be easily carried and used during travel.
Collaborate with Retail Partners: Work closely with travel retail partners to optimise product placement and promotions. Collaborate on marketing initiatives and in-store events to drive awareness and sales.
Enhancing visibility and accessibility in travel retail is crucial for capturing the attention of busy travellers and encouraging impulse purchases. By strategically placing products and creating engaging displays, Perfetti Van Melle can increase brand exposure and drive sales in this lucrative sector.
Enhancing visibility and accessibility in travel retail is expected to boost sales, increase brand recognition, and attract new customers. This strategy can also strengthen relationships with retail partners and improve overall market presence.
Case Study: Perfetti Van Melle's focus on travel-friendly packaging and strategic product placement in travel retail has led to increased sales and consumer engagement. Products such as the Mentos Jumbo Roll and Chupa Chups with added functionalities have resonated well with travellers, contributing to the brand's success in this sector.
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