Nestle UK Ltd St Georges House Croydon Surrey CR9 1NR Tel: 020 8686 3333 Fax: 020 8667 5031 Email: alison.kemp@uk.nestle.com web: www.nestle.com Key personnel Nestle Managing Director Food Division Peter Mayes Commercial Director David Glick Channel Development Manager Vanessa Brown Assistant Channel Development Manager/ Trade Media Executive Alison Kemp Key brands Branston Sarson's Waistline Buitoni Gales Sun Pat Herta Carnation Nestle Deserts Innovation is clearly an important part of the snacks category, removing barriers to entry and bringing new consumers into the category. Over the last 12 months, 23% of pot snacks volume sales has come from new products providing incremental category growth. (source: Nielsen mat value sales 52 w/e May 2001) Nestlé SnackStop channel manager Vanessa Brown is certain that the Pot Snacks category has taken off since Nestlé entered the market with the original SnackStop variant in September 1998. She says: "In its first year the product took 15.1% volume share (pots) and the market grew by 35.4% (source: Nielsen Mat Oct 1999 v 1998). Since its launch an additional two million households have bought a Pot Snack and the category has grown by 44% to a value of £100.2m. (source: ACNielsen)." Nestlé believes there is huge opportunity to increase the value of the snacks category as a result of increased impulse sales. Because consumers buying on impulse' are prepared to pay purely for the ease and convenience, snack producers can in turn demand a premium (such as Pot Snacks, Pringles small tubes' and Mcvities tubes'). Brands are constantly under pressure to meet the need for new variants which continue to add interest and meet consumers' changing demands. Brown says: "Recently, Nestlé have launched a new variant, SnackStop BIG to meet demand among young men aged 18-25, for a hot snack that is filling and tasty, quick to prepare, and can easy to eat on the go'." Research revealed that these young men were not well catered for within the Pot Snacks category. By the time they reached 18, their tastebuds matured and they had grown out of the category. Therefore, they wanted stronger, less artificial flavours, closer to real food'. Also existing products were not filling them up and they were looking for a more satisfying product (source: The Research Practice, Mike Paxton 2000). "Consequently, Nestlé developed SnackStop BIG ­ 400g of multi textured, bold recipes with large pasta and thick sauces to cater for these needs." says Brown. "The changing needs of existing consumers can also be met by re-innovation and variation, over time, which encourages brand loyalty and persuades existing customers to buy more. By developing SnackStop into an umbrella brand' Nestlé will be able to closely target the needs of both males and females, whilst continuing to meet objectives to increase the SnackStop range, category value and profit." Nestlé realised long ago that the positioning of a snack product within a retail establishment is crucial to its success. "Display within the snacks fixture is critical as the majority of purchase decisions are made on impulse' at the fixture, so it needs to be clearly laid out in order to aid the consumer decision-making process. "It is also possible to increase sales as a result of the way the fixture is displayed ­ by placing products in such a way that encourages consumers to browse the fixture and therefore buy more or to buy higher value products. It is also important to have supporting PoS and merchandising to increase awareness of brands." The new SnackStop range will be available across all channels ­ multiples, independent and convenience stores, cash and carries and forecourts. Brown advises: "When marketing SnackStop place the product in key selling positions in store which encourages impulse sales. "Place the product off fixture' on shippers, gondola ends etc. to increase visibility and awareness and therefore encourage trial. "Link SnackStop with other associated products in linksave promotions or meal deals. Increase visibility and awareness and therefore encourage trial through trial price promotions and supporting PoS activity." Nestlé is investing £4m in a targeted media campaign for SnackStop BIG during 2001. The campaign will run throughout September and October, and will include television and cinema advertising, magazines and outdoor advertising. {{Z SUPPLEMENTS }}

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