News; May 19, 2008 CET

Inspired by market trends

What is required to generate growth in a mature market? The answer is simple. Consumer insight, well-segmented and defined target groups andan instinct for future trends. Anna Neiås, Vice President Marketing, Swedish Match North Europe Division, is satisfied with developments to date.

Anna Neiås and Maria NichollAnna Neiås and Maria Nicholl
By dividing the market into distinct consumer groups and having good insight into their needs, it is easy to identify gaps in the offering. These gaps facilitate the development of new products and brands. The launch of Vertigo, the snus for women, and the Nick & Johnny snus for men in the 18 to 25-year target group are a couple of examples of this type of development,” she says.

“Development is not only about fulfilling the customer’s rational needs for snus and tobacco-free products, but also about satisfying an emotional need, which we do by offering attractive design and functional packaging, for example.

“When we developed Nick & Johnny, we wanted to fill the brand with confidence and success. Nick & Johnny is designed to attract consumers who value adventure and appreciate a modern city lifestyle.”

Maria Nicholl, Head of Market Research & Analysis at the Swedish Match North Europe Division, agrees and believes that good insight into the various target-group segments makes it easier to understand howbconsumers perceive the products.

“Today, our consumer analyses are more needs adapted. By knowing more about consumer values, needs and behavior, we gain a better understanding of how they perceive our brands,” says Nicholl.

However, consumer insight and segmentation are not the only conditions needed for increased growth. Understanding of future trends is equally important. According to Niklas Krohn, Brand Manager for Nick & Johnny, many of the classic brands have to be modernized in order to attract new consumers.

“We see a natural inflow of new consumers through smokers who want a smokefree alternative, as well as new tobacco consumers.This means that Swedish Match’s classic snus brands must be regarded as an attractive and modern alternative, while satisfying the needs of the new target groups,” says Niklas, who continues:

“We must be innovative and develop our own products. There is always a risk associated with new products, but lessons learned in a development project can be beneficial in subsequent projects. Regardless of whether the product becomes a sales success, we have done the groundwork for new challenges and products.”

According to Neiås, future challenges lie in developing the existing operation and creating new business opportunities.

“In the Scandinavian market, smokers provide great business potential as well as new tobacco consumers. Snus also has major potential outside the Scandinavian region. Efforts to cultivate a new market and new target groups include the launch of the new snus products, General and Triumph, in the US. Our goal is that those who use snus will always find the most attractive alternatives in our portfolio.”