Through strategic product development, Cloetta utilizes its strong brands and its flexible production organization to drive and maximize organic growth.
Innovation and trends
Product development is a key driver behind Cloetta’s brands and enables differentiation in the market. Cloetta’s innovation work and optimization of the product development process create the conditions for future new product launches and relaunches.
Product development process
An effective product development process is decisive for profitable growth. Product development is steered by the way in which market trends and consumer behaviour can be optimally combined with existing brands. The biggest costs in product development arise in the product launch phase and are primarily associated with marketing activities, but also with ensuring efficient production.
Packages and marketing can tempt consumers to try a new product, but if the taste doesn’t measure up there is rarely a second purchase. It is therefore critical that the new products launched by Cloetta meet consumer requirements and expectations. The focus is on taste when Cloetta develops new products. Before a product is launched, it undergoes both internal and external taste tests via consumer panels that among other things assess its flavour, consistency and overall impression. To systematically gather consumer feedback, Cloetta uses a consumer panel that regularly provides feedback and ideas on the Internet after receiving product samples to their homes. The ideas that have come up have been highly valuable for Cloetta’s innovation work.
Launches in new markets
A product that is successful in one market can be launched in another market under an existing local brand. For Cloetta, with its many brands in different markets, scale economies in production can be utilized effectively by matching brands.
Aside from tasting good and being reasonably priced for the consumer, a new product must be commercially attractive to the retail trade. Its weight, package and distribution are adapted for their respective sales channels and markets. With the right packaging, many of the products that are strong in one market can also secure a good position in new markets. Package sizes are often associated with price strategies for different customer categories and markets. Changing a package size is therefore a strategic decision for how a brand can be further developed to reach new customers and thereby also new consumers.
For many years Cloetta has had substantial sales to ferry lines, charter tour operators and airports, so-called Travel Retail. Well known brands and unique packages in terms of both appearance and size are two of the most important competitive tools.