Growth in all areas

Challenge – Cheap but perceived as poor quality
Nille is a Norwegian brand most people are familiar with, and the chain is recognised by more than 90% of people! The Nille chain was one of the first of its kind in Norway, and enjoyed strong increases in sales along with the opening of more and more stores and throughout the 1990s. But the beginning of the 21st century saw the growth stagnate at the same time as new owners entered the picture in 2006. What they saw was a narrow profile that primarily attracted the most price-conscious customers.

Since most women associated Nille with poor quality products, women as a target group were simply absent or sporadic customers. Large groups did not see Nille as a place to shop other than during the major holiday periods. The new owners wanted to increase the shopping frequency and decided to revitalise the entire chain. Stores, products and marketing communication had to be changed if the negative trend was to be reversed.

Solution – Good buys for special occasions
A strategy project clarified the desired position. Modernisation of the entire chain and marketing activities began in 2006/7, with the goal of changing perceptions from cheap and poor quality to value for money. Partners were chosen for the different areas, but an overall design project in cooperation with everyone ensured coordination and synergy. The stores received new solutions for all elements, including communication surfaces in the stores. Upgrading the packaging design on own brands was also a priority, as they make up more than 50% of the range. All marketing communication was also revitalised, that is all graphic images, customer magazines, TV adverts, logo, carrier bags, business cards, etc. With the focus on changing the Norwegian woman's perception of and attitude to Nille, the changes were implemented in an integrated and complete manner.

Result – More customers buying more
After three years of thorough modernisation and revitalisation, the Nille of today has a new profile and changed position. The results of the change process are formidable. Key customers are still loyal, while large new groups have changed their perception of Nille and have begun to shop there more regularly. The sales goals defined to be achieved by 2012 are already in the bag. The first year of changes lead to twice as many customers than expected. Continued growth is certain for the coming years. Since 2006, total sales have increased by 67% and average turnover per store by 40%. In 2007 the increase in the number of customers was already at 6%, while the turnover per customer increased by a massive 25%. The same measurement in 2009 indicates increases of 21% and 37% respectively. This means that Nille has gained more customers who are buying more! Even though the redesign upgraded the image, the majority agree that Nille's prices are still low.

An important goal was to give customers an impression of the chain as a place where good buys could be made for special occasions, meaning it’s more than just a place for cheap purchases. The number of people that agree that people can find good buys for special occasions has increased by a huge 80% since the investment in design was started. Nille has shown the way to success through a comprehensive and multi-disciplinary project, which has kept the users and design competence in focus.

Category: Design management – branding – sales and communication

Company: Nille AS

Project group company: Nille AS: Pål Wibe, CEO; Bjørn Vidar Tessem, Category Director, responsible for all marketing, category development and store development; Kjetil Hesmyr, Operations Director, responsible for store operations including the implementation of selected solutions in 300 stores; Odd Martin Berger, Store Developer, responsible for development of store design elements; Bodil Tallaksen, Advertising Manager, responsible for marketing in the chain; Lara Martin, Packaging Designer, responsible for all packaging in the chain; Ole Morten Lunde, Property Director, key contributor to the design process. Suburbia Advertising Agency: Jostein Borgmo, Creative Manager, responsible for assistance with graphic profile, logo, all marketing communication; Jarle Hetland Bjørlin, Art Director; Jannicke Thoresen, Project Manager; Vibeke Sivertsen Gudbjerg, Consultant

Design: New Store Europe AS

Project group design company: New Store Europe: Torunn Weydahl Ottesen, Creative Manager, responsible for development of in-store design elements and store equipment in line with new profile; Savaj Van Nes, Designer; Johan Gran, Graphic Designer.

Award / year: Design Effect Award - 2010

Category: Winner Grand Prix