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Win with the top king chocolate SKUs


Photo by Brandon Gray

The singles segment may be the star of the chocolate category in the convenience-gas channel, but retailers should never forget about the unsung hero that attracts a different type of chocolate shopper: the king chocolate segment.

The king segment is growing at a rate of +9% (source: Nielsen MarketTrack, National All Channels, L52 weeks ending Nov. 17, 2012), and appeals to a younger demographic of 18-24 year old males who aren’t satisfied with one singles bar and also don’t want to commit to the purchase of two smaller singles bars (source: Oct. 2012 U&A study Gfk Research).

Confectionery is an impulse category, so king bars should be placed in high-traffic areas where these hungry customers will take notice. The prime placement is at the front cash, and the top shelf of the planogram is the ideal spot for the larger king segment to reside.

When deciding which king chocolate SKUs should make their way onto your shelves, keep in mind that finding the right assortment is crucial to your king chocolate success – too many king SKUs may reduce more profitable singles sales, while too few will limit the opportunity to keep your large-bar customers happy. Focus on a smaller inventory of bestselling brands, and keep these SKUs fully stocked at all times.

The basket of a king chocolate shopper is smaller than its singles counterpart: king consumers buy 1.15 bars on average, whereas singles consumers buy an average of 2.65 bars (source: Consumer loyalty data, Latest 52 weeks, Oct. 2012). As a result, retailers should use promotions to build the king basket size, especially 2-for promotions that will entice shoppers to haul more large chocolate bars to the cash counter. Advertising these promotions with point-of-sale material and placing promotional displays along the path to purchase will also help drive king growth.

Retailers are most likely to succeed with king when they implement a strategy that builds on the success of the singles category, using king bars to complement the sales of the smaller format.

Source: Nestlé Canada

King size bar ranking:
1. Mars
2. Reese Peanut Butter Cup
3. Kit Kat
4. Coffee Crisp
5. Twix
6. Oh Henry!
7. Aero
8. Snickers
9. Kit Kat Chunky
10. Reese Big Cup

Source: Nielsen MarketTrack, National All Channels, L52 weeks ending Nov. 17, 2012

3 ways you can win with king:

1. Make space. Place king chocolate SKUs on the top shelf of your confectionery planogram, which should be located at the front cash to attract impulse purchases.

2. Focus on bestsellers. Stick to the trusted, popular king chocolate brands your customers rely on you to provide, leaving ample room for a wide range of singles SKUs.

3. Build promotions. Draw attention to the king segment using 2-for promotions that help build basket size and capture customer interest.