Leading Swiss premium chocolate manufacturer Lindt & Sprüngli is investing heavily behind the delivery of new experiences with travel retail partners, and is targeting Millennials with elements of its updated product offer.
That’s according to Global Duty Free Division Head Peter Zehnder and Marketing Manager Miriam Richter, speaking to The Moodie Davitt Report recently. They reaffirmed the importance of making shopping a rewarding part of the journey, and said that brands and retailers have their part to play in delivering this.
Zehnder said: “We are impulse-driven as a category and that will always exist. Therefore the in-store experience is important, no matter what else you do before people travel. Digital is fun but you see that tasting has a big impact. How it’s offered and how it’s represented matters a lot in conversion terms. It opens the conversation to every generation and is a powerful tool. We want to professionalise sampling with our partners and that can help drive conversion much more.”
Richter added: “The personal touch in an impulse category such as confectionery is not to be under-estimated. We want to spread the magic of what we do in travel retail, making the experience of travel a nicer one. That means investing in brand ambassadors through the Lindt Chocolate Academy, not only our own staff but also those from the retailers. Chocolate is fun, tasty, seductive and emotional and we need to bring those feelings into the travel retail environment and the sale.”
While targeting the business to all consumers, the brand owner is also focused on encouraging spend among Millennial travellers, who want surprise and points of difference, but who also may not have the budgets of their parents’ generation.
Richter said: “Millennials are very interested in the origin and quality of products, and they seek out high-quality experiences. That is good news for us as we have a story to tell. We know how responsible we are in making our chocolate; we have a sustainability programme and we are transparent. You have to be clear on your proposition to this generation but that is good for Lindt.”
Smaller pack sizes for self-consumption or gifting are also a potential sales hook for the younger generation and for other traveller demographics.
Richter notes: “Among Millennials there are lower spending travellers who we are catering for with some of our new packaging. We want to be better represented at cash till points with more items under €10 or CHF10. Beyond that, even with a major brands like Lindor – one of the only US$1 billion confectionery brands – we are combining new product development with smaller tube sizes such as 175g.”
Lindor leads the brand owner’s drive to develop newness for the channel. At its size and volume, said the company, it still remains under-represented in travel retail and will be the focus of increased investment.
A new mint flavour is one innovation; a dark-only assortment in various types has come to market; a pistachio flavour will be available from 1 January, initially through Dufry, while the brand has also released its Matcha limited edition targeting the Asian market, as reported.
The other major line is Lindt pralines, which leads its informal gifting offer. Richter said: “We are targeting Asians a lot, and want to convert them into gift-givers through a more informal approach. We now have new multi-packs available for under US$20, which is ideal as a gift. The look and feel is very young and more female-orientated so we think it is a strong proposition.”
The company has also bolstered its emphasis on Sense of Place products and packaging with its channel-exclusive World Traveller Collection and ‘Around the World’ campaign. This features a collectible five-tin edition featuring various country flags.
Richter said: “This product and its related merchandising brings stopping power to the category. They can be bought as single items or as the full collection. This also relates to unlocking spend among Millennials, who want something unique from their travels. We bring it to life using an eye-catching trolley, out-sized decoration elements and fixtures adapted to each airport. There are also elements like a touchscreen where travellers can win round the world tickets or luggage tags and other gifts. It brings our Sense of Place offering to a new level.”