INSITUM + MONDELEZ
Engaging ‘kiosqueros’ through a meaningful digital experience to create an emotional connection with Mondelez.
Mondelez is a leading global company in the food and beverage industry. Two years ago, Mondelez’s most powerful retail distribution channel in Argentina, the kiosk, was losing market share. Kiosks are responsible for 40% of the company’s revenue, so Mondelez was understandably concerned. Kiosks are small shops where consumers can purchase candies, snacks, cigarettes, other convenience good, and more. They represent 100,000 POS in Mondelez’s network and a third of the company’s sales in Argentina. This makes kiosqueros (shop owners) key players with direct impact on business results because of their face-to-face interactions with the end consumer. They also decide how to display products and often make suggestions to customers.
Mondelez knew that it needed to strengthen its relationship with kiosqueros to improve the company’s performance beyond traditional tactics like price discounts or promotions. However, traditional face-to-face visits were not an option due to limited personnel. Mondelez wanted to develop a deep emotional connection with kiosqueros, who are self taught and typically lack formal training in how to run their business. As a result, they feel that their role is associated with low social status. INSITUM’s task was to explore how to create that meaningful connection.
Kiosqueros (small shop owners) are key players with direct impact on business results since they interact face-to-face with the end consumer.
"This platform has a high impact potential on Mondelez's distribution channels in many different countries."
Fernando Comendeiro Shopper Insights Manager, Mondelez
"Not only has this helped us increase Mondelez's sales, we are also helping kiosk owners, which makes them see the actual value."
Tomás Manrique Shopper Marketing Coordinator
The INSITUM team conducted deep ethnographic research to understand kiosqueros’ needs and motivations, Mondelez stakeholders’ goals, and the inner workings of its distribution channel. The team uncovered several insights about kiosqueros, including a need for the business owners to feel recognized by Mondelez and their desire to improve their services and grow their businesses. The team then developed a strategy to strengthen Mondelez’s bond with kiosqueros, whose decisions are highly influenced by their relationship with brands and manufacturers. The strategy was designed to promote a more effective assortment and display of Mondelez’s core brands to increase sales performance. Co-creation sessions between kiosqueros, distributors, and Mondelez promoters led to the creation of a new mobile app solution called Kips.
Kips is a direct communication channel between kiosqueros and Mondelez that offers kiosk owners expert advice on how to optimize their businesses. The app also engages kiosqueros by recognizing progress through a gamification aspect. Kips stands for “tips for kiosqueros,” which are short articles that provide advice on best practices to help them grow their businesses and offer better experiences to customers. Kips tips and suggestions might be related to product display, sales, additional services, product information, or new product releases. While tips that offer professional advice are created by a team of experts, those about best practices for day-to-day operation are created by kiosqueros themselves.
As a result, kiosqueros are empowered by this new platform where they can easily find useful tips to grow their businesses and receive social recognition for successful initiatives. They now have a place to share their knowledge with colleagues in similar situations facing similar challenges.
By leveraging Kips, Mondelez is able to translate real marketing information into useful tips that can be applied directly in-store, creating a direct link with kiosqueros. Mondelez is also building knowledge about kiosk owners by learning more about their preferences, attitudes and behaviors. This allows the company to create targeted strategies and activation campaigns to improve marketing reach in stores. While Kips is only currently available in Argentina, it is a platform with the potential to scale globally. Mondelez’s global team is already working on bringing Kips to all small shop owners around the world.