Driving ~$50M Category Growth for Nestlé Confectionery

Overview

Chocolate is a highly impulsive category, where purchase decisions are often made in-store, without much persuasion, rather than being pre-planned. Hence, it is vital to ensure a high-performing selection of listings are placed in the right part of the store.

Despite Nestlé's strong brand equity, growth was plateauing—prompting a deeper look into whether the constraint was consumer demand or retail execution. In-store execution for such an "indulgence-led" category relies on more than just price; it requires a synergy of display placement, strategic offers, and attractive packaging to trigger that final purchase decision.

The Challenge: Reclaiming Dominance in a High-Impulse Category

At Nestlé, our Confectionery portfolio was facing stiff competition for shelf space and share of wallet at a Tier 1 Canadian national retailer. We were losing market share to smaller players, and our presence in the high-traffic areas of the store, crucial for impulse categories, was diminishing. We needed to prove that Nestlé wasn't just a supplier, but a strategic partner capable of growing the retailer's entire category.

The Insight: The "Enjoyment" Trigger & The Price-Lift Paradox

Through a deep dive into consumer behavior and price-elasticity modeling, I uncovered two critical insights that challenged the status quo:

• Visibility Over Volume Discounting: Chocolate is a pure "indulgence" purchase. Consumers don't need a "hot sale" to buy; they need a visual trigger.
• The Margin Opportunity: My price-lift analysis revealed that a moderate promotional discount performed nearly as well as a deep price cut in terms of unit lift. The incumbent strategy was unnecessarily eroding margins without a proportional gain in volume.

The Strategic Action: The "Visibility First" Framework

I orchestrated a data-backed proposal to pivot the promotional strategy from deep discounting to Strategic In-Store Execution. My recommendations included:

• Optimal Display Placement: Shifting focus to "front-of-store" and high-traffic end-caps to capture unplanned purchases where the consumer "succumbs to indulgence."
• Portfolio Prioritization: Rationalizing the shelf to prioritize high-velocity formats including single bars, chunky formats, and snack sizes over low-performing niche competitors.
• Value Optimization: Implementing a refined pricing strategy that allowed the retailer to maintain "Sale" appeal while significantly protecting bottom-line margins.

The Impact: A Multi-Year Strategic Partnership

The strategy shifted the conversation from "price wars" to "category growth," resulting in:

• ~$50M in identified growth opportunities for the retailer's confectionery category.
• Secured a Multi-Year Exclusive Contract, guaranteeing premium display allocations and front-end visibility for the Nestlé portfolio.
• Margin Protection: Successfully defended price points, proving that brand equity and visibility drive "lift" more effectively than deep, margin-eroding discounts.