Ricola uses consumer insights to revamp travel retail range
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Swiss herb confectionery specialist Ricola is redefining its travel retail portfolio of herb drops following research carried out by m1nd-set in Frankfurt and Hong Kong airports.
The findings, along with new travel retail-exclusive lines, will be revealed at next month’s TFWA Asia Pacific Exhibition & Conference in Singapore (Basement 2, H6).
The full new product line-up will be launched at the 2017 TFWA World Exhibition in Cannes in October.
Ricola Head of Travel Retail and Middle East Andreas Reckart said: “Interestingly, we found that at both Hong Kong and Frankfurt airports the majority of candy purchases were for self, with mouth refreshment and/or breath freshening a key driver.”m1nd-set research considered key drivers of candy sales, the perception of Ricola as a brand and the perceived benefits of its herb drop range.
When purchasing, consumers considered taste and self-treat along with other factors including soothing a sore throat and the need for healthy and sugar-free products. The research indicated that pocket-size boxes or tins could prompt purchases; price was not a consideration.
“In both airports the brand scored highly as being of high quality, a trusted brand from Switzerland, with soothing and refreshing benefits,” Reckart said.
“In both airports the brand scored highly as being of high quality, a trusted brand from Switzerland, with soothing and refreshing benefits,”
Ricola’s new SKUs have prompted the development of smaller, travel retail-exclusive packaging which maintains premium pricing but is competitive compared to domestic markets, the company stated.
“Ricola has a global reputation as the world’s leading supplier of premium herb drops but this does not automatically translate into travel retail success,” noted Reckart. “Now that we clearly understand the reasons for purchase – primarily for self rather than for gifting – it puts a completely new perspective on how we present, package and merchandise Ricola.”The new products will be phased in over the summer period with further lines added over the next year. They include 75g tins in three designs, developed as checkout items for individual consumption. The tins contain unwrapped 2.5g sugar-free herb drops in three flavours: Original Herb, LemonMint and Cranberry.
A 125g doypack of wrapped 3.6g sugar-free herb drops is designed as a shelf item for individual consumption. Flavours include Original Herb, LemonMint, and Eucalyptus.
Reckart commented: “We now have a clear vision and strategy for travel retail, a clear purpose and positioning within travel retail as the ‘Herbal Travel Essential’ to combat the problems associated with travel: dry cabin air, lack of water, mouth freshness/breath and change of climate.
“Our aim is to position Ricola as a truly global yet unique brand in the global travel retail business with distribution through the top ten retailers globally.
“We are looking at supporting the new range with strong branding, merchandising and promotion to secure personalised space in the top ten international airports. While Europe remains an important market for travel retail, our focus is on further developing our travel retail and domestic business outside our European stronghold.”
Questions & Answers
Q.What were the main reasons for candy purchases at Hong Kong and Frankfurt airports, according to Ricola's research?
What were the main reasons for candy purchases at Hong Kong and Frankfurt airports, according to Ricola's research?
The research found that most candy purchases were for self-consumption. Key drivers included mouth refreshment and/or breath freshening, suggesting personal need over gifting was the primary motivation.
Q.How did Ricola's new product development respond to the consumer insights about packaging?
How did Ricola's new product development respond to the consumer insights about packaging?
New SKUs led to smaller, travel retail-exclusive packaging, like pocket-size boxes or tins. This was in response to research indicating that these smaller formats could prompt purchases.
Q.Which specific new products will be phased in, and what are their intended uses?
Which specific new products will be phased in, and what are their intended uses?
New products include 75g tins for individual consumption at checkouts, containing unwrapped sugar-free drops in three flavours. A 125g doypack of wrapped sugar-free drops is designed as a shelf item for individual consumption.
Q.What is Ricola's new strategic positioning within travel retail?
What is Ricola's new strategic positioning within travel retail?
Ricola aims to position itself as the 'Herbal Travel Essential'. This strategy addresses travel-related problems like dry cabin air and lack of water, focusing on mouth freshness and breath.
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