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April 27, 2006
Cailler and the hassles of going high-end
The Cailler brand has long occupied a respectable position in the Swiss chocolate market, while remaining virtually unknown outside of its home market. Now the maker of Cailler, Nestlé, has sensed an opportunity for its best-selling chocolate brand with a rather dull mass-market image. Remember the Four P's of traditional marketing? Nestlé is leveraging all Four P's to bring Cailler into the upscale segment of premium chocolates.
Product: When it comes to edibles, the obvious way to make a big change is to get a new cook. Earlier this year, Nestlé hired Ferran Adria, a three-star Michelin chef, to revitalize the Cailler product line. As far as we are concerned he can play all he wants with the filled bars, pralines, and truffle-thingies, just as long as he doesn't touch the delicious dark chocolate bars.
Promotion: The promotion campaign has already started in all corners of Switzerland, but the most visible change is in the packaging. You can't have a premium product wearing mass market clothing. The new PET based packaging is both innovative and beautiful, but remarkably non-ecological. In Switzerland, a country obsessed with recycling, environmentally unfriendly packaging on a consumer product is a marketing sin of the first order. Swiss consumer groups were quick to criticize Nestlé's packaging choice and even the Federal Environmental Office noted that Nestlé had taken "one step in the wrong direction". On the other hand, rare is the moment when the environment is a real consideration in luxury good packaging.
Pricing: Nestlé is attempting an 8 percent hike, which did nothing to please Cailler's primary retailers like the discount supermarket chain Denner.
Placement:Denner is no longer carrying Cailler, which might have been the point from the start. Nestlé certainly cannot afford to have its swanky, three-star Michelin products appearing in the grocery store down the street. Look for the Cailler brand to start appearing in department stores, upscale groceries, speciality stores, duty free shops, and confectionaries around the world.
Will Nestlé succeed with its international ambitions for its little, traditional Swiss brand? The verdict is still out and probably won't be known until the company has completed the roll-out its re-vamped brand. It is possible that Swiss consumers will reject the higher-priced, over-packaged chocolate bar, while international consumers will embrace the brand as latest, greatest luxury item out of Switzerland. Presumably, Nestlé has calculated that the gains from these new markets far outweigh potential losses in the home market.
Pictures of the stunning new Cailler packaging on Flickr
The Four P's of Marketing explained in more detail on Wikipedia
Last updated on April 27, 2006 03:27 PM
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