Nestlé on how to trigger consumer spend

Finding ways to trigger consumer spend is a challenge for many brands, including food and beverage giant Nestlé. Honza Dusanek, Managing Director of Food for the UK and Ireland, believes Nestlé has found ways to win the challenge.

KPMG’s research shows that consumers are prioritising wellness, and Nestlé is responding with healthier food and drink choices. But, according to Honza, the value equation must add up.

Among Nestlé’s innovations is Mindful Chef — a recipe box of natural ingredients, grown using regenerative farming practices. Boxes are delivered direct to shoppers’ doors, with pre-measured ingredients to minimise food waste, maximise convenience and make healthy eating easy.

Meanwhile, seasoning brand Maggi has launched a new range of flavourings specifically for the air fryer. “It gives great taste, texture and crunchiness without oil,” explains Honza. “It’s cheaper because air fryers use less electricity than conventional ovens, and it’s convenient because it takes less time to cook. So even when consumers are cautious about spending, they don’t need to compromise on the health, enjoyment and convenience of food.”

Purchase triggers influence which brand or product consumers ultimately choose. Triggers fluctuate with the economy. Over the past few years, as consumers have navigated increasingly uncertain times, KPMG’s Consumer Pulse research has found increased prioritisation of price over other factors, like sustainability or convenience, among some consumers.

For Honza, consumers must be both willing and able to pay the price. And that means knowing the target audience — their purchase behaviours and price sensitivities — and the shopping channels they use. He comments: “Consumers shop differently for the same products depending on whether they’re stocking up online, buying in store for immediate consumption or preparing for a trip away. Different dynamics are at play.” A pack-and-price architecture, which adjusts product volumes and price points, allows brands to offer consumers different purchase options that fit their budgets and preferences, while maximising profitability.

Though inflation and the cost-of-living crisis have tested brand loyalty, with some consumers moving to private labels, KPMG’s Consumer Pulse finds that 15% of people would trade back up if they could. Honza recognises that money saved on branded coffee or baby food goes into the pot for holidays, or experiences or healthier products. However, he points out, “We have to inspire consumers with superior products and experiences that give them a reason to stay with our brands. That means a clearly differentiated product, in terms of quality, taste, convenience or nutritional value. Get that right and it’s a triple win for Nestlé, the retailer and the consumer.”

To drive awareness and saliency, and trigger spending, Nestlé is investing in the consumer experience. The goal is to make the brand name synonymous with the product itself, so that it’s the first thing people think of when they are ready to buy. ‘I want a Nespresso’ becomes top of mind, not ‘I want a cup of coffee’.

The brand must also innovate and differentiate to unlock what Honza describes as “new consumer demand moments” that prompt shoppers to buy.

And for that, brands must be present wherever their consumers are. So, Nestlé is going beyond product-led marketing campaigns by engaging with social media influencers, particularly on TikTok, to create entertaining stories. Their content builds connections and moves audiences through the marketing funnel from brand awareness to product consideration to purchase.

Nestlé is also signing up to innovative partnerships. Among them is a global sponsorship deal between KitKat and Formula 1. The aim is to improve KitKat’s global reach and appeal to shoppers under 30 years of age. The deal includes promotional prizes, opportunities to win race-day tickets, and fan zones at Grand Prix tracks.

Consumer participation in product development is another strategy to incentivise sales. Brands grab attention by getting consumers to vote for new flavours or to learn more about the manufacturing process. “Instead of factory visits, food is cooked at scale in culinary expertise centres, where consumers experience the aromas and tastes. They get to understand how our Maggi spices bring a tasty solution to their air fried chicken, fish or broccoli,” says Honza.

Experiences like these can turn curious consumers into brand advocates, transforming the product on the shelf into something they remember and trust. That engagement is fundamental to unlocking consumer spend.