Gum titan Wrigley is modernizing its strategy in impulse channels such as gas stations to rekindle falling sales in the German market.
Andreas Gabel, sales director for Wrigley Germany, told ConfectioneryNews.com that the chewing gum segment had declined around 3% for Wrigley in the past year, influenced by 8.1% fewer sales in impulse channels.
New technologies force rethink
He said that there was a trend towards individualism at cash zones.
“Independent retailers give not only their stores but also their cash zones a professional make-over with the intention to make a difference and to provide their shoppers a great experience. The cash zone has to induce positive emotions,“ he said.
He added: “New emerging technologies like mobile payment or self-scanning also coming to Germany.”
Shaping modern merchandising practices
Wrigley has added 30 new members to its ‘Impulse Field Force’, which visits impulse channels such as gas stations to ensure higher visibility for its brands.
The members have a checklist of good practices such as ensuring top selling brands (Extra Professional, 5 Gum and Airwaves) are well placed and are facing the right direction to ensure higher sales for itself and the retailer.
The company is also running a Lighthouse Project, which involves introducing modernized display shelves at cash counters. One of its projects, Ellipse, involves introducing rounded cases at checkouts.
Sugar-free gum sales up
Gabel added that Wrigley was seeing a trend towards premiumization and would continuously boost its premium portfolio with the life-style-brand 5 Gum.
Wrigley has also noted a preference for sugar-free gum. It said that sales of sugar-free gum had risen from 85.6% in 2010 to 88.2% in 2012.
The company is therefore pumping 70% more into its TV marketing budget to run a campaign for its core sugar-free brand Extra Professional, which will run for 48 weeks on German screens and give the brand 30% more exposure on air.
Mondelez takes different tact
Wrigley’s main rival, Trident maker Mondelez International, has taken a different approach to revamp its ailing gum category – which had been on constant decline while other categories such as chocolate have recorded increased sales.
It has launched new brands, such as Trident Twist and Stride ID gum, aimed at teens to try to revive the category and also intends to reduce prices, rather than focus on positioning in stores. See HERE.