Success and Failures in Consumer Packed Goods

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  • 7/27/2019 Success and Failures in Consumer Packed Goods

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    1

    Successes and Failures in

    Consumer Packaged Goods

    Innovation and Marketing in 2011

    Reflecting on stand-out NPD and marketing

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    What is success?Success and failure comes in many forms

    SUCCESS

    FAILURE

    Sales increase

    Improved brand equity

    Revitalized

    Tapped into relevant trends

    Received critical acclaim

    Seizing the initiative

    Re-writing the rules

    Sales decrease

    Withdrawn from sale

    Courted negative publicity

    Disengaged consumers

    Ignored trends

    Bad timing

    Failure to react or evolve

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    Theme one: Consumption ritual

    Cases in this section:(click to navigate)

    Chicago Town Takeaway Pizza

    Birds Eye Bake to Perfection

    Lucozade Sport Lite

    A number of successes benefit by offering something unique

    and experiential for a given consumption occasion. This often

    involves effectively ritualizing product preparation and

    consumption.

    This can include a ritual around a given occasion or ritualizing

    the unique manner in which a product is consumed. This helps

    to create differentiation in increasingly cluttered markets aswell as generating occasion growth.

    The Chicago Town Takeaway Pizza provides an example of a

    product which has focused on specific stay-at-home

    occasions, particularly in the way it has gone about naming

    products (e.g. Film Feast) and its sponsorship tie-ins.

    Another brand that is intrinsically associated with ritualisticconsumption is Lucozade Sport, which is positioned as the soft

    drink of choice for exercise occasions. By adding a Lite

    variety, it has broadened its target audience in an attempt to

    move beyond this ritual.

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    Chicago Town Takeaway PizzaEmphasizing premium indulgence to capture

    dine-at-home consumers

    WHAT?

    WHY?

    TAKE-

    OUT

    FROZEN PRODUCT BOASTING PREMIUMPOSITIOING

    Dr Oetkers Chicago Town Takeaway has achieved success

    through its premium, indulgent positioning.

    According to AC Nielsen, the brand was worth EURO 5.5m in

    Ireland during the 52 weeks to January 2011representing a

    132% year-on-year sales increase.

    LINKING TO SOCIAL OCCASSIONS TO TAP INTODINE-AT-HOME TREND

    The product has aimed for premium indulgence by

    emphasizing that it contains more calories and is

    generally more filling than rival frozen pizzas.

    Dr Oetker has also sought to in intrinsically link the

    brand to sociable occasions.

    THE FROZEN CATEGORY IS WELL-PLACED TOTARGET FRUGAL CONSUMERS

    The category is gradually catching up with chilled in

    relation to consumer perceptions by focusing on

    meeting consumer premium demands.

    A prevailing dine-at-home trend is providing significant

    opportunities for the category.

    SUCCESS

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    Birds Eye Bake to PerfectionCombining convenience and quality to revive

    frozen food fortunes

    WHAT?

    WHY?

    TAKE-

    OUT

    A CONVENIENT QUALITY PRODUCT BREATHINGNEW LIFE INTO FROZEN FOOD CATEGORY

    Premium frozen food product designed to be cooked in

    the bag.

    A range of sophisticated fish dishes designed for mid-

    week meal occasions.

    CHALLENGES TRADITIONAL CONSUMERPERCEPTIONS ON FROZEN FOODS

    Consumers appreciate the health benefits from eating

    fish but lack confidence and inspiration.

    The combination of premium ingredients, attractive

    recipes and convenience overcame consumer

    reservations over the quality of frozen foods.

    ALTERING PERCEPTIONS BY IDENTIFYING SPECIFICNEEDS AND SUPPLYING INNOVATIVE SOLUTIONS

    Consumers can be persuaded to change entrenched

    views when provided with attractively presented

    offers that meet relevant need states.

    SUCCESS

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    6

    Lucozade Sport LiteAchieving a good health/taste balance

    WHAT?

    WHY?

    TAKE-

    OUT

    LOW CALORIE SPORTS ENERGY DRINKTARGETTTED AT LIFESTYLE CONSUMERS

    In Q2 2010, GlaxoSmithKline (GSK) launched a new 50

    calorie variety of Lucozade Sportunder the Sport

    Lite sub-brand.

    In 2010, Sport Lite generated sales of 12.1m and

    accounted for 70% of growth in the product category.

    CONSUMERS ARE DRAWN TOWARDS BEVERAGESTHAT ARE BOTH HEALTHY AND ENJOYABLE

    GSK has positioned Lucozade Sport Lite towards lifestyle

    consumers of sports energy drinks products.

    Lifestyle users of sports drinks can be defined as those who

    have little or no connection to sport/ exercise but deem

    these beverages to be healthier to consume.

    NON-CORE CONSUMERS OF SPORTS ENERGYDRINKS HAVE DIFFERING MOTIVATIONS

    The sports nutrition category is benefitting from a

    widening appeal among consumers.

    Demand among lifestyle consumers is being impacted

    by a rising understanding of the negative health

    connotations of over consumption of calories.

    SUCCESS

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    Theme two: Hyper targeting

    This theme reflects the high influence of the Individualism &

    Expressionism Mega-Trend in shaping the direction of future

    product and marketing innovations. In a world of proliferating

    commodity choices, with each new product seemingly

    imitative of the last, hyper targeting is a way of offering

    enhanced relevance and meaning when consumers are looking

    for a stronger emotional connection with the products they

    buy.

    Many brands have achieved considerable success with more

    refined marketing and product formulations that address very

    specific consumer interests and needs. Bot Water, for example,

    was a relatively unsuccessful soft drink option for kids, but

    realized that it was appealing to health-conscious adults, so

    subsequently repositioned to significant success.

    Occasion specific products are also potentially well placed to

    meet shoppers increasingly sophisticated tastes and

    requirements, especially if the selling point is based around a

    health and/or enjoyment derived benefit.

    Cases in this section:(click to navigate)

    Bot Water

    Reckitt Benckiser Dettol soap

    Rescue Remedy

    Dove Bodywash

    McCain India frozen foods

    Cheesestrings Shots and Kerrygold

    Cheddar

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    Bot WaterRepositioning to target a newand more

    lucrativeaudience

    WHAT?

    WHY?

    TAKE-

    OUT

    AN EXISTING SOFT DRINK TAKES ON A NEW

    IMAGE

    Bot Water had already been on the US market for

    three years, positioned as a healthy children's soft

    drink, when it decided to relaunch in April 2011.

    The brand repositioned itself as a beverage marketed

    specifically to a health-conscious adult demographic.

    RELAUNCHING AS AN ADULT BEVERAGE SERVEDTO BROADEN CONSUMER APPEAL

    Following the recession, Bot Water found itself

    competing against cheaper juice pouches and

    therefore at a disadvantage into a price-driven market.

    Adults have been seeking alternatives to carbonates

    and juices, creating an opportunity for the likes of Bot.

    AGILITY IS KEY TO SUCCESS IN A DYNAMIC ANDUNPREDICTABLE FMCG LANDSCAPE

    Quite simply, the more reactive a brand, the better

    placed it will be to succeed in todays continuously

    evolving consumer goods landscape.

    Investment in consumer research will be crucial to

    facilitating flexibility and ensuring brand relevance.

    SUCCESS

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    Reckitt Benckiser Dettol soapTargeting rural consumers with affordable products

    WHAT?

    WHY?

    TAKE-

    OUT

    CONSUMERS GROWING HYGIENE CONCERNSPersonal hygiene awareness is gaining momentum among

    Indian consumers eager to address health challenges within

    their developing society.

    Dettol, while still owning a relatively low share of the Indian

    soap market (9%), has more than doubled its penetration

    rate in the last four years.

    BRAND EXTENSION AND TARGETING A WIDERCONSUMER BASE

    The respected Dettol name has allowed the brand to

    expand its presence in other product categories associated

    with personal hygiene.

    A greater distribution network and targeting lower income

    earners with more affordable products.

    CONSUMERS IN DEVELOPING ECONOMIES AREBECOMING MORE CONSCIOUS ABOUT HYGIENE

    Recent scares such as the bird flu epidemic have served

    to raise awareness about cleanliness and hygiene.

    Attentiveness to personal hygiene is not restricted to

    the middle class, lower income earners are also paying

    closer attention to avoiding becoming ill.

    Source: (1) Business Standard, November 2011

    SUCCESS

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    WHAT?

    WHY?

    TAKE-

    OUT

    AN ESTABLISHED BRAND WHICH HAS SEEN ASURGE IN SALES

    The Rescue Remedy brand has recorded impressive

    growth rates over the last year, with its Rescue Night

    brand performing particularly well.

    The product remains the clear leader in the UK herbal

    stress relief category.

    STRESS CONTINUES TO IMPACT SLEEPINGPATTERNS

    The brand has increased its portfolio of naturally

    formulated products, but has not significantly

    increased spend on advertising.

    Moreover, its main competitor brand has also

    witnessed an increase in sales.

    THE UKS NATURAL SLEEP REMEDY MARKET ISGROWING

    This will increase in 2012 as economic uncertainty and

    resulting stress levels continue to impact on sleeping

    patterns.

    The use of natural ingredients is paramount to success.

    Rescue RemedyCapitalizing on rising stress and anxiety levels

    SUCCESS

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    Dove BodywashRelying on fable over fact

    WHAT?

    WHY?

    TAKE-

    OUT

    DOVE WANTED TO GROW SHARE IN A BUSYCATEGORY

    Dove sought to increase its share of the body wash category

    in China.

    The brand launched a campaign that aimed to persuade

    four million women to buy Dove Body Wash.

    A DEGREE OF SKEPTICISM EXISTS TOWARDSSCIENCE-BASED CLAIMS

    Although Dove proved more effective in clinical trials,

    the campaign steered focus away from this.

    Instead, the brand chose to compare and contrast the

    product with milk, historically perceived to be a highly

    effective skincare ingredient.

    LEVERAGE FAMILIAR REFERENCE POINTS TOGARNER CONSUMER TRUST

    Scientific evidence is not always the most persuasive

    type of communication.

    Leverage consumers background knowledge and

    frame of reference in order to more effectively

    position products.

    SUCCESS

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    McCain India frozen foodsCombining local and affordable

    WHY?

    HOW?

    TAKE-

    OUT

    CONVENIENCE AND THE POWER OF LOCALISMConsumer lifestyles demand increased convenience, but

    frozen food is a relatively new and unfamiliar category

    among Indians.

    Localism is a major growth driver in consumer purchase

    choices, for reasons such as trust, comfort, and familiarity.

    MCCAIN ENHANCED LOCAL APPEAL AND ACCESSMcCain released a range of ethnically Indian frozen

    foods to give the category more relevance to local

    tastes.

    Affordability was maximized through cheap trial packs,

    suited to a wide income range and helpful to the

    limited storage issues that inhibit frozen food uptake.

    HARNESS THE FAMILIAR TO DRIVE NEW SALESGROWTH

    Targeting local tastes is a powerful means of developing

    appeal in relatively new categories.

    Tailoring pricing/sizing strategy to increase access while

    targeting value-for-money impulses in emerging markets

    further amplifies the ability to drive growth.

    SUCCESS

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    Cheesestrings Shots and Kerrygold CheddarInnovation does not guarantee success in

    mature or highly competitive markets

    WHAT?

    WHY?

    TAKE-

    OUT

    THE TWO PRODUCTS FAILED TO MAKE AN

    IMPRESSION ON THE UK CHEESE MARKET

    Cheesestrings shots was launched in 2009 as a

    convenient dose of cheese for kids, but was

    withdrawn in July 2011.

    Similarly, Adams Foods took the same decision with

    its Kerrygold range after less than a year on sale.

    THE MATURE STATE OF THE MARKET HAS MADE ITNOTORIOUSLY DIFFICULT TO GAIN TRACTION IN

    Shots proved not to be an appealing proposition for

    kids and the product was overshadowed by the

    subsequent launch of Cheesestrings Spaghetti.

    Adams Foods decided that it was going to focus on

    other, less competitive markets.

    DIFFERENTIATION IS KEY IN MATURE MARKETS,BUT SIMPLY BEING DIFFERENT IS NOT ENOUGH

    Kerrygold mature cheddar failed to convince

    consumers that it offered something new enough to

    make them consider switching brands.

    While Cheesestring Shots were genuinely innovative,

    the actual appeal simply was not there.

    FAILURE

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    Theme three: Trend crossover

    Multi-benefit/multi-functional products are increasinglyimportant as a confluence of consumer trends influence

    purchasing preferences.

    There would appear to be particularly profitable opportunities

    at the intersection of trends. For example, Sunmagic in the UK

    effectively combined education about the healthiness of the

    product (through social media) with a packaging redesign toemphasize sensory credentials to garner success in a cluttered

    segment.

    If manufacturers cannot straddle two trends, consumers will.

    Because the intersection is founded upon two trends the

    consumer need is likely to be stronger.

    Manufacturers successfully straddling the crossover are likelyto be more richly rewarded as they are providing multiple

    benefits by basing product offerings on more than one mega-

    trend. The caveat being that the brand maintains a clear point

    of differentiation and does not try to be all things to all people.

    Cases in this section:(click to navigate)

    Heinz Beanz Fridge Pack

    Sunmagic

    Ricard

    Aperol

    First Cape Caf Collection

    Omo Super Concentrated Liquid

    Laundry Detergent

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    Heinz Beanz Fridge PackIncreasing share through new pack formats

    WHAT?

    HOW?

    TAKE-

    OUT

    NEW FORM OF PACKAGING FOR OLD FAVORITE

    The iconic brand can now be purchased in a 1kg re-

    sealable plastic container.

    It is targeted at families and other heavy users to

    provide greater options in use by allowing users to vary

    portion size and store in the refrigerator for up to five

    days.

    THE PRODUCT MET CONVENIENCE, NUTRITION,AND SUSTAINABILITY DEMANDS IN ONE MOVE

    It has sought to capitalize on decline in family meal

    occasions and parental desire to control portions and

    reduce food waste.

    It also conveyed health and nutritional benefits in a

    new way by increasing association with freshness.

    LONG ESTABLISHED BRANDS CAN BENEFITFROM FRESH THINKING

    CPG manufacturers can breathe new life into well -

    established brands by identifying new applications.

    Simple packaging changes can have a significant impact

    on consumer perceptions of a brand.

    SUCCESS

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    WHAT?

    WHY?

    TAKE-

    OUT

    RE-LAUNCHED BRAND SEES HUGE GROWTH IN

    SALES

    The re-launch of the Sunmagic brand in the UK juice

    market has yielded impressive growth, with the brand

    continuing to break sales records.

    Brand awareness is set to further increase in 2012

    because of a deal signed with ASDA supermarket.

    A SUCCESSFUL COMBINATION OF HEALTH AND

    SENSORY APPEAL

    The brand educates consumers about the associated

    health benefits of its drink portfolio, while colorful on

    pack pictures convey quality and taste.

    Social media has been used to raise brand awareness

    while ethical credentials have not been over-promoted.

    TARGETING MULTIPLE TRENDS CAN SIGNIFICANTLY

    ENHANCE PERCEPTIONS OF VALUE

    It is crucial that consumers do not feel they are trading

    off between health and sensory appeal when

    purchasing soft drinks.

    Ethical credentials are important to consumers but

    should not be over-promoted at the expense of more

    favored attributes like health and taste.

    SunmagicSuccessfully combining health and sensory appeal

    SUCCESS

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    RicardCombining modernity and heritage in pack design

    to reinvigorate an iconic brand

    HOW?

    WHY?

    TAKE-

    OUT

    BRINGING OUT DISTINCTIVE GRAPHIC FEATURES

    INTEGRAL TO THE BRANDS PERSONALITY

    Ricard discovered that the cartouche logo was the symbol

    of the brand and everything in the new bottle design stems

    from that.

    Ricard struck an appropriate balance between creativity and

    loyalty to established brand values.

    BRAND RENOVATION TO MAINTAIN RELEVANCE

    The Ricard bottle was identified as the primary factor

    in need of refreshment to enable the iconic French

    brand to sustain marketplace relevance.

    It was deemed a route to attracting a new generation

    of consumers and new way of engaging with existing

    and loyal drinkers of Frances favorite aperitif.

    PACKAGING DESIGN IS EVEN MORE IMPORTANTFOR ICONIC BRANDS

    Updating product packaging, especially for well-

    established heritage brands, is a complex exercise.

    A balance between making adjustments to keep the

    brand identity current, and staying true to core brand

    principles, can offset the risks of updated pack design.

    2011 marketing

    design awards

    winner: packaging

    SUCCESS

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    AperolSuccessfully expanding its geographical reach

    beyond its core Italian market

    WHY?

    TAKE-

    OUT

    APEROL HAS SUCCESSFULLY POSITIOINED ITSELF

    AT THE INTERSECTION OF KEY CONSUMER TRENDS

    Aperol has hit the sweet spot of taste and refreshment,

    low ABV and effective pairing with food.

    Focusing on the signature Spritz cocktail serve, it has

    made effective use of the on-trade, appealing to younger

    drinkers on vibrant sociable occasions.

    BUILDING MOMENTUM ACROSS WESTERN

    EUROPE

    Aperol has expanded aggressively throughout Italy and has

    quickly established a strong presence in other European

    markets, most notably Germany.

    During the first nine months of Gruppo Camparis 2011

    financial year, sales of Aperol in Germany grew 103%.

    DIFFERENTIATED SPIRITS CAN STILL PROSPERAlcohol brands that can meet emerging consumption trends

    and boast differentiated positioning are strongly placed to

    weather the economic storm.

    There are opportunities within low-alcohol space, if the

    product is not seen as comparatively inferior or contrived

    and has an authentic positioning.

    WHAT?

    SUCCESS

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    First Cape Caf CollectionTargeting health and sensory appeal

    WHAT?

    WHY?

    TAKE-

    OUT

    ALIGNING WITH THE HEALTH TREND WILL BECRITICAL FOR THE ALCOHOLIC DRINKS CATEGORY

    Health will become a key battleground for alcohol

    innovationget it a right and its a money-spinner.

    Success in this instance has been achieved by marrying

    health concerns and not diminishing the sensory

    attributes, creating a win-win for consumers.

    A WINE TO MEET HEALTH NEEDSFirst Cape launched its lighter style Caf Collection wine in

    white, red, rose and sparkling varieties in 2009.

    The product has a low alcohol content at 5.5%, less than half

    the average alcohol content of most wine brands (13%), and a

    low calorie content too, with 25% less calories than standard

    wine (60 calories per 125 glass).

    CONSUMERS GROWING NEEDS FOR LIGHTER WINESTYLES

    Drinkers are becoming increasingly diet conscious as the

    health trend permeates all aspects of their lifestyles.

    Alcohol brand owners are under growing pressure to

    ensure their product range is varied enough not to

    alienate the health conscious consumer.

    SUCCESS

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    Omo Super Concentrated Liquid Laundry Detergent

    Combining ethicality with convenience

    WHAT?

    WHY?

    TAKE-

    OUT

    DETERGENT THAT TICKS THE ETHICAL AND CONVENIENCE BOXES

    In line with its commitment towards doubling its business while reducing its

    environmental impact, Unilever Brazil launched in July 2010 the concentrated

    liquid version of Omo laundry detergent.

    In August 2011, the product - which combines high performance with stain

    removal - was launched in a larger 1.05 litre package - equivalent to 3 litres of

    a regular detergent.

    ETHICAL CREDENTIALS AND CONVENIENCE ARE A SUCCESSFULPAIRING

    Consumers are more aware of environmental and ethical concepts and

    feel growing pressure to change the way they live.

    Convenience is increasingly important for Brazilian women, who are

    playing a stronger role in the economy and feeling time-poor.

    ETHICAL SHOULD BE COMBINED WITH CONVENIENCE BENEFITSConsumers will nearly always prioritize product quality and convenience over

    ethical benefits.

    While ethics are important for Brazilians in their choices of household

    products, time-saving features such as ease of use, ease of storage, and

    multipurpose benefits are increasingly gaining attention of time-poor

    consumers.

    SUCCESS

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    Theme four: Formulation for success

    Beyond the sensory profile of food and beverages,it is oftenthe nutritional credentials associated with ingredient

    composition that influence product acceptance and rejection.

    The same increasingly applies to personal and household care

    too.

    The examples presented in this section of the analysis

    demonstrate that consumer preferences are far from one-dimensional.

    Accordingly, Datamonitor advocates a proactive stance towards

    health-driven reformulation within the context of a three-

    tiered approach to innovation.

    This will allow manufacturers to manage a product portfolio

    catering for differing needs and occasionschief among them,goods which reflect the consumer desire for better-for-me or

    good-for-me products, or those which offer genuine

    uncompromised indulgence.

    Cases in this section:(click to navigate)

    B The Honey Cachaa

    Dippin Dots

    Aquafresh Ultimate Toothpaste

    Twinings The Earl Grey

    WKD Purple and Lucozade

    Vaalia Innergy

    Densia

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    WHAT?

    HOW?

    TAKE-

    OUT

    FLAVOR INNOVATION TO BUILD MOMENTUM

    B is a cachaa with reduced alcoholic content (21%),

    honey and lemon, designed by Formula 1 driver Nelson

    Piquet Jr.

    B was introduced in Q1 2011 with the aim to reach

    both the Brazilian and international markets and

    compete against premium vodkas.

    FOLLOWING THE STEPS OF PARENT BRANDSLighter and flavored versions of Brazilian cachaa is

    increasingly popular at pubs, restaurants, and

    nightclubs in Brazil.

    The brand utilized the existing strength of parent

    brandssuch as Santa Dose to enhance the

    credibility and allure of the new offering..

    FLAVOR AND BRAND IMAGE ARE CRITICAL INGROWING ALCOHOLIC BEVERAGE CATEGORIES

    The transition of product image from a popular and low-end

    alcoholic drink to a sophisticated and high-end beverage

    requires the visual identity and branding to strongly appeal

    to aspiration-driven consumers of the beverage.

    B The Honey CachaaLeveraging sophistication for a high-end positioning

    SUCCESS

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    Dippin DotsStruggling to push sales to the next level

    WHAT?

    WHY?

    TAKE-

    OUT

    DIPPIN DOTS IS AN ICE CREAM THAT PRIDES

    ITSELF ON BREAKING FROM CONVENTION

    Dippin Dots are small balls which are flash-frozen in liquid

    nitrogen, making it an extremely different proposition from

    traditional ice creams.

    However, the company has run into financial difficulty and

    has filed for bankruptcy protection.

    DISTRIBUTION ISSUES AND A HIGH PRICE POINTHAS STOPPED SALES REACHING THE NEXT LEVEL

    A lack of grocery store presence has meant that consumers

    cannot buy it as conveniently as they can with many

    competitors products.

    A high price premium has also proven a big barrier at a time

    when most are being prudent.

    NOVEL PRODUCTS ARE INTERESTING BUT MOSTCONSUMERS THINK RATIONALLY LONG-TERM

    Unique products can inspire consumers and certainly

    drive trial consumption.

    However, many consumers are thinking with their

    wallets, and opting for trusted products at lower

    prices.

    FAILURE

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    Aquafresh Ultimate ToothpasteImproving shelf appeal through innovative packaging

    WHY?

    WHAT?

    TAKE-

    OUT

    INNOVATIVE PACKAGING ATTRACTS ATTENTION

    By focusing on protecting both the visible tooth and below

    the gum line, GSK has addressed growing consumer concern

    about gum disease.

    A bold approach to packaging design created improved

    stand-out on the shelf, ensuring the primary and retail-ready

    pack worked together to good effect.

    A PREMIUM LOOK FOR A 30 YEAR OLD BRAND

    GSKs Aquafresh brand was launched in 1973.

    Aquafresh Ultimate was launched as a premium whole

    tooth protection in 2011, strengthening both the 30% of

    the tooth that is visible, while safeguarding the remainder of

    the tooth by helping to keep the gum seal tight.

    PACKAGING; A KEY PART OF THE MARKETING MIXPackaging design plays an important role in ensuring that

    new products are noticed in a crowded market.

    An openly collaborative approach to new product

    development can ensure that the individual elements of

    the product and pack design complement one another to

    support the overall brand proposition.

    SUCCESS

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    Twinings The Earl GreyThe pitfalls of tinkering with established brands

    WHAT?

    WHY?

    TAKE-

    OUT

    NEW FORMULATION FOR ESTABLISHED,

    TRUSTED BRAND

    Twinings was founded in 1709 and introduced Earl

    Grey tea in 1831.

    The Earl Grey brand was launched in April 2011 as a

    new and improved product, but the original was

    subsequently reintroduced in August.

    UNDERESTIMATING CONSUMER ATTACHMENTThe new product drew heavy complaints from

    customers on official websites and social media sites ,

    resulting in significant negative press comment.

    The company misjudged the extent to which taste is a

    highly personal and important feature for such a

    traditional brand.

    GUIDE CONSUMERS THROUGH CHANGEBrand owners must recognise the impact on brand

    heritage when considering product reformulations and

    ensure that changes are fully explained.

    Social media provides a useful forum for brand owners

    to communicate with consumers but can also be a

    convenient focus for consumer discontent.

    FAILURE

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    WKD Purple and LucozadeBuilding incremental sales with desirable flavor

    extensions

    HOW?

    WHAT?

    TAKE-

    OUT

    TESTING THE WATER: ASSESSING CONSUMER

    SENTIMENT AND SALES PERFORMANCE

    Both extensions generated high levels of interest in the

    respective pre-launch research.

    Both utilized the existing strength of iconic [parent]

    brands to enhance the credibility and allure of the new

    offerings.

    FLAVOR INNOVATION TO BUILD MOMENTUM

    WKD Purple and Lucozade Energy Blackcurrant were

    introduced in Q1 2011 with similar aims: to drive sales

    incremental to their respective categories.

    WKD Purple has become a permanent fixture in the WKD

    brand stable. For Lucozade, flavor extensions remain an

    innovation tactic having worked so well.

    FLAVOR PORTFOLIO MANAGEMENT IS CRITICAL INGROWING CATEGORIES. SO TOO IS LISTENING TO,

    AND ACTING ON, CONSUMER FEEDBACK

    Listening and responding to customers is so basic and yet so

    fundamental.

    Flavor alone can often determine brand success.

    SUCCESS

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    Vaalia InnergyBalancing emotional and rational appeal

    WHAT?

    WHY?

    TAKE-

    OUT

    HEALTH DRINK BOASTING TWO TARGETED

    BENEFITS

    Vaalia Innergy is a probiotic drink that supports both

    digestive and immunity health.

    The product was awarded the Best new functional

    dairy product award in recognition of its innovation.

    CONUSMERS ARE INCREASINGLY PURSUINGTARGETED HEALTH SOLUTIONS

    A significant proportion of consumers now actively

    buys food and drinks that claim to improve digestive

    and immunity health.

    An even greater proportion is interested in, but not

    actively buying, these products.

    ADDRESSING BOTH EMOTIONAL AND RATIONALPURCHASE MOTIVATIONS IS IMPORTANT

    Rational reasoning can persuade consumers that a

    product will work.

    Aspirational marketing creates the anticipation that

    can ultimately drive behavioral change among more

    resistant consumers.

    Best new functional dairy product:

    SUCCESS

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    DensiaBenefiting from fast growth in incomes and changes in diets

    WHAT?

    WHY?

    TAKE-

    OUT

    YOGURT BOASTING CALCIUM BENEFITS

    Densia is the newest yogurt launched by Danone in Brazil,

    targeting women over 30.

    It contains a double dose of calcium compared to other

    traditional yogurts, and vitamin D to help the absorption of

    calcium in the body.

    HEALTH-ORIENTED CONSUMERS HAVE SOPHISTICATED

    DIETS TO ADDRESS SPECIFIC ISSUES

    Tapping into the revolutionary launch of Activia in 2004yogurt

    with digestive benefits targeted at womenDanone wanted to

    increase sales in Brazil by 20% in 2011.

    According to the Brazilian Osteoporosis Study, nine in ten

    women in Brazil do not consume enough of calcium.

    POWERFUL PRODUCT INNOVATION NEEDS TO BECOMBINED WITH STRONG MARKETING

    Aspiration-driven consumers in Brazil enjoy new product

    experiences. However, they need to be convinced that the

    product represents true value for money.

    Strong marketing campaigns promote brand awareness while

    awakening consumers emotional needs, stimulating purchase.

    Densia yogurt supports the Steady

    and Strong campaign againstosteoporosis, ideated by the Brazilian

    Society of Clinical Densitometry

    (SBDens), the Brazilian Society of

    Osteoporosis (SOBRAO), and the

    Brazilian Society of bone and mineral

    metabolism studies (SOBEMOM).

    SUCCESS

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    Theme five: Beware the halo effect

    The introduction section highlighted the negative implications

    of the halo effect of being overly influenced by a highperformer. This short section focuses exclusively on examples

    of failures. In these instances, the brands in question made ill-

    fated decisions seemingly based on the previous success of the

    concepts, brands or individuals against which the respective

    innovations were anchored.

    MGD 64 Lemonade was a product which went after the holygrailthe female beer drinker. The lemonade had a less bitter

    taste than ordinary beer to reflect this, as well as a low calorie

    content. However, the softness of the taste only served to

    lessen the authenticity of the beer, greatly reducing its appeal

    to both genders.

    Understanding what halo effects that may inhibit your brand is

    a critical route to success. For example, organic products havehad such a halo for years. While desirable to some consumers,

    may automatically overlook organic brands because they deem

    them to be expensive. Appreciating this, Rachels removed the

    word Organic from its brand name, instead focusing on the

    way it is produced.

    Cases in this section:(click to navigate)

    Diet Pepsi Skinny Can

    Stella Artois Cidre

    Rachels and Ellas Kitchen

    MGD 64 Lemonade

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    Diet Pepsi Skinny CanDiluting the impact of packaging innovation

    WHAT?

    WHY?

    TAKE-

    OUT

    NEW PACK DESIGN

    New packing format for Diet Pepsi brand supplied in 12

    oz format.

    Presented as a taller, stylish product version and

    launched in February 2011 to coincide with New York

    Fashion Week.

    LAUNCH ATTRACTS NEGATIVE PUBLICITYAlthough the new packaging shape was admired, the

    overall marketing campaign was less well received.

    The use of the tem Skinny Can and the campaigns

    associated celebration of tall, beautiful women found

    little favor with health bodies, media commentators

    and consumers alike.

    CPG MANUFACTURERS MUST TAKE STOCK OFWHAT EVERY ASPECTS OF A PRODUCT SAYS

    ABOUT THEM

    Packaging has an important role to play in developing

    an overall brand image.

    Marketers should ensure that product repositioning is

    aligned with the brand image they want to portray.

    FAILURE

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    Stella Artois CidreLeveraging alcohol brands across sectors

    WHAT?

    WHY?

    TAKE-

    OUT

    SUMMERTIME LAUNCH FOR CIDER

    In April 2011, ABInBev UK Ltd launch a new Cidre

    (Cider) under its Stella Artois brand name, specifically

    for the UK market.

    The product was made available in a 568ml glass

    bottle, and a 440ml metal can.

    AS BEER SALES DECLINE IN THE UK, CIDER SALES

    ARE BOOMING

    Beer sales in the UK have been in decline as younger

    consumers increasingly look to cider and spirits.

    In the face of declining sales, ABInBev looked to the

    burgeoning cider category, adjacent to the beer

    category, to drive brand sales.

    CHANGING MARKET DYNAMICS INTENSIFIES THENEED FOR PORTFOLIO MANAGMENT

    Leveraging brands across alcoholic beverage sectors

    highlights the importance of the brand in the UK.

    Cidre highlights how the product story and provenance

    is increasingly superseding heritage in alcoholic

    beverage product marketing in developed markets.

    SUCCESS

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    Rachels and Ellas KitchenMaking organic merely a supporting or even

    background message

    HOW?

    WHY?

    TAKE-

    OUT

    ENSURING ORGANIC CREDENTIALS SUPPORT,

    RATHER THAN LEAD, THE VALUE PROPOSITION

    In 2009, Rachels Organic dropped the word Organic

    from the brand name. In 2011, the brand is defying

    sector norms with strong growth.

    Likewise, Ella's Kitchen toned down the organic

    message in a recent packaging revamp.

    FRUGAL AND SKEPTICAL CONSUMERS ARE

    FINDING REASONS TO SWITCH FROM ORGANICS

    Sales of organic food in the UK have fallen as value

    conscious consumers, unconvinced about the organic

    moniker, overlook the category.

    Quite simply, organic is seen in some categories as an

    unnecessary expense.

    THE ORGANIC MONIKER ALONE WILL RARELY BEENOUGH TO ENTICE LONG TERM LOYALTY

    Organic productionand the positive connotations

    surrounding thatshould be just part of the price premium

    justification. It starts with a great product, organic or not.

    Organic food and drinks must be delicious, well-packaged

    and competitively priced.

    SUCCESS

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    MGD 64 LemonadeFailing with flavor in the beer category

    WHAT?

    WHY?

    TAKE-

    OUT

    A LOW CALORIE FLAVORED BEER

    In May 2011, Miller MGD 64 Lemonade beer, a limited

    edition summer-time low-calorie beer, designed to compete

    more with summer spirits, was launched in the US by Miller

    Coors.

    MGD 64 Lemonade was discontinued after less than three

    months on the market.

    FEMALE DRINKERS ARE AN UNDER REPRESENTED

    DEMOGRAPHIC IN US BEER

    The product was targeted towards 24-34 year olds and

    skewed more female than heavier beers.

    With a sweeter taste and only 64 calories, the brand

    was designed to broaden beers appeal.

    DISTINGUISHING BETWEEN A FLAVORED BEERAND BEER WITH FLAVOR

    Taste is one of the key reasons why female consumers

    shun beer, finding the bitterness too intense.

    The product aimed to lower the bitter taste of beer for

    women but was perhaps seen as lacking in authenticity

    relative to craft beer or HardLemonade.

    FAILURE

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    Theme six: Brand relevance

    The following examples are testament to the importance ofdelivering to consumers exactly what they want, when and

    where they want it. By doing this, and minimizing customers'

    time and effort, companies can reap significant rewards

    The examples also highlight that the idea of products being

    lifestyle supportingis especially important in the current

    economic austerity.

    In nearly all cases, the brands have performed well because the

    product offering has been adjusted to reflect consumers

    changing circumstances or because the positioning exudes

    relevance.

    Therefore, many of the examples are testament to great

    marketing as much as they are about the inherentinnovativeness of the actual product features/benefits.

    Cases in this section:(click to navigate)

    Daloon

    Minute Maid Pulpy

    HP Guinness Sauce

    Fat Foam

    Yellow Tail

    Budweiser

    Vitasoy

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    WHAT?

    WHY?

    TAKE-

    OUT

    DALOON HAS REVISED ITS PRODUCT PORTFOLIO

    Daloon has revised its range of ethnic mini dishes,

    improving the filo pastry of its Chinese dishes and

    looking to give its onion bhajis a more authentic

    positioning.

    Sales of the brand rocketed in the aftermath of the

    new and improved range being released.

    QUALITY AND VALUE HAVE BECOME PIVOTAL

    Consumers are socializing at-home more regularly and

    feel reassured that the mini dishes offer a level of

    quality associated with foodservice dining occasions.

    The products are also presented in a frozen format

    which appeals to consumers concerned about throwing

    away food that is past its sell-by date.

    CONSUMERS ARE LOOKING TO SAVE MONEY

    WITHOUT COMPROMISING THE OCCASION

    The majority of UK consumers do not believe that

    freezing food compromises taste.

    Consumers are looking to make socializing occasions

    more cost effective, while remaining reluctant to

    sacrifice the quality associated with eating out at

    restaurants.

    DaloonImproving sensory attributes in the frozen food sector

    SUCCESS

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    Minute Maid PulpyA blueprint for successful regional R&D investment

    WHAT?

    WHY?

    TAKE-

    OUT

    JUICE BRAND TAILORED SPECIFICALLY FOR THE

    CHINESE CONSUMER

    In 2011, just five years after it was launched, it was

    announced that the Minute Maid Pulpy brand had

    achieved annual global retail sales of more than $1bn.

    Initially launched in China, the brand is now among the

    major juice brands in regions across the world.

    WESTERN MANUFACTURERS ARE INCREASINGLY

    SEEKING LOCAL REGIONAL R&D SOLUTIONS

    The Minute Maid Pulpy brand was developed at Coca-Colas

    Shanghai R&D centre and tailored to meet the specific needs

    and demands of the Chinese consumer.

    The launch has highlighted the companys commitment to

    developing new products for local markets.

    WESTERN BRANDS CAN NO LONGER JUST EXPECTBRANDS TO TRANSLATE TO EMERGING MARKETS

    Rising living standards, contrasting cultures and the growth

    of regional players are making it difficult for Western brands

    to gain success in emerging markets.

    Reverse innovation is a trend that presents significant

    long term opportunities.

    SUCCESS

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    HP Guinness SauceFailing to create engagement among consumers

    WHAT?

    WHY?

    TAKE-

    OUT

    HP LAUNCHED A SAUCE IN COMBINATION WITH

    GUINNESS

    The product is an attempt to tap into the popularity of

    both the HP and the Guinness brands.

    The sauce is positioned primarily at males in their 20s

    and 30smany of them potential Guinness drinkers.

    GROWTH IN SAUCES LIES OUTSIDE THE BROWN

    SAUCE SUB-CATEGORY

    In the UK, the brown sauce sub-category is stagnant

    compared to others such as BBQ sauce.

    However, consumers have yet to respond to marketing

    initiatives by demonstrating a visible love for the

    product.

    BRAND NAMES ALONE ARE RARELY ENOUGH TOFULLY ENGAGE CONSUMERS

    While brand fans tend to experiment with extensions,

    they will not continue this in the long-term if the

    product does not satisfy.

    The internet is a powerful medium for engagement

    brands need to utilize it to its fullest potential.

    FAILURE

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    Fat FoamDemonstrating that private labels can lead the

    way in innovation

    WHY?

    HOW?

    TAKE-

    OUT

    OVERCOMING THE HIGH BRAND LOYALTY THAT

    SHAPES THE HAIR COLORING CATEGORY

    Consumers are typically adverse to trying private labels

    and new brands in the hair colorant category due to

    the high perceived risk of product failure.

    Walmart recognized that to succeed in this market with

    a private label offering, innovation would be key.

    MAXIMIZING THE PRIVATE LABEL THREAT WITH A

    FIRST TO MARKET STRATEGY

    Walmart launched Fat Foam onto the US haircare market

    more than six months ahead of its national brand

    competitors.

    Simply being first to market enhanced the perceived

    exclusivity and value of its private label proposition.

    THE PRIVATE LABEL THREAT CANNOT BE IGNOREDPrivate labels are competing more intensively with

    national brands for first mover innovation and

    consumer choice.

    Manufacturers are under growing pressure to create

    more exclusive versions of branded products to

    increase their (perceived) distance from private labels.

    SUCCESS

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    Demystifying wine for the Chinese consumer

    WHAT?

    WHY?

    TAKE-

    OUT

    AUSTRALIAN WINE BRAND GROWING IN CHINA

    In 2008, Yellow Tail, an Australian grape-based wine

    brand from Casella Wines, was launched in China.

    Elements of packaging were modified for the Chinese

    market to aid brand recognition and drive range

    differentiation.

    TECTONIC SHIFT IN THE WINE MARKET TOWARDS

    EMERGING MARKETS

    The growing middle class consumer base with greater

    disposable income is increasingly looking to display

    their wealth with western brands.

    Greater affluence is manifested in a greater imported

    wine consumption .

    ALTERNATIVE BRAND COMMUNICATION ISREQUIRED IN CHINA

    Consumers education into wine, via product marketing, is

    vital to drive wine consumption in China.

    Easy to recognize packaging and the flavor profile are the

    two key drivers of brand success in China.

    Yellow Tail SUCCESS

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    WHAT?

    WHY?

    TAKE-

    OUT

    SALES OF BUDWEISER ARE DECLINING IN ITS

    HOME MARKET

    Budweiser has witnessed a massive decline in sales of

    its flagship product in the US off-trade market over the

    last six years.

    The fall has been despite promotional campaigns

    aimed at appeal of the brand among younger drinkers.

    LIGHTER AND IMPORTED BEERS ARE RISING

    As consumers become more attentive to their weight

    and dietary patterns, they are turning to low calorie

    beers more often, particularly as they do not believe

    enjoyment will be compromised

    The importance of social status is also driving sales of

    imported and craft beers.

    EVEN THE MOST ESTABLISHED BRAND CAN

    BECOME DATED

    Evolving attitudes and behaviors means that even the

    most established of brands can become misaligned

    with consumer need states.

    This means that heritage and pricing strategies alone

    are not enough to maintain brand equity and consumer

    loyalty.

    BudweiserLosing share to import and low calorie alternatives

    FAILURE

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    VitasoyEnhancing the relevance of a heritage brand

    WHAT?

    HOW?

    TAKE-

    OUT

    A HOUSEHOLD NAME THAT LACKED RELEVANCE

    Vitasoy is an established brand of soy drink in Hong

    Kong.

    The brand enjoyed a remote relationship with

    consumers in their 20s, and was tasked with engaging

    and creating lifelong relationships with this segment

    UPDATING A TRADITIONAL MEDIUM

    Vitasoy introduced limited edition packaging with 70

    different greeting messages that consumers could give

    to their friends and loved ones

    The brand also launched customizable packaging that

    allowed consumers to create personal messages

    USE PRODUCT CONSUMPTION AS A VEHICLE FORSELF-EXPRESSION

    Consumers place a great deal of importance on

    choosing brands that reflect their personality

    Brands that inspire consumers and nurture their

    creativity are more likely to establish long-term

    relationships with them

    SUCCESS

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    Theme seven: Winning from white space

    White space is simply unoccupied space in the market that is

    defined in terms of unmet consumer needs or needs that are

    not totally fulfilled by existing products in the landscape.

    White space can be prevalent because current products do not

    perform a particular function that a consumer needs. It can

    also represent emotional space; i.e. products not having an all-

    important emotional draw for consumers.

    The examples here show that even in an increasingly cluttered

    segment such as yogurt, there are opportunities to carve out a

    growth area (e.g. Chobanis Greek yogurt).

    The cases also illustrate that just because a brand is a market

    leader, it may not be fulfilling important consumer needs

    associated with that given category.

    Cases in this section:(click to navigate)

    Vita Coco

    GoodBelly

    Chobani

    U By Kotex

    LOreal

    Yum! Brands in China

    Tide Dry Cleaners

    Kelloggs Krave

    Wodka Vodka

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    WHAT?

    WHY?

    TAKE-

    OUT

    VITA COCO DOUBLED ITS YEAR-ON-YEAR SALES

    Vita Coco continues to increase its portfolio of coconutwater beverages with new flavors and has launched its

    first nationwide advertising campaign in the US.

    The brand has more than doubled its year-on-year

    revenue in the rapidly growing US coconut water

    market.

    A CROSSOVER OF NATURAL AND FUNCTIONAL

    Coconut water is linked with an array of health benefits

    and offers consumers additional nutrition benefits

    without the use of artificial ingredients in formulation.

    Moreover, the use of celebrity investors and

    ambassadors has helped boost the brands appeal

    among image-conscious younger consumers.

    NEW HEALTH TRENDS ARE ALWAYS EMERGING IN

    THE US

    Although consumed in South America for decades, the

    US coconut water market is a functional beverage

    market which is in its relative infancy.

    The use of celebrity endorsement and promotion of an

    array of health benefits highlights how Americans are

    still responsive to the emergence of new health fads.

    Vita CocoWitnessing rapid growth in a new market

    SUCCESS

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    WHAT?

    WHY?

    TAKE-

    OUT

    A PROBIOTIC RECORDING LARGE SALES GROWTH

    GoodBelly is a non-dairy probiotic beverage that hasbeen launched in the US , achieving impressive growth

    rates.

    The brands positive performance has come despite

    minimal investment in advertising, with word-of-

    mouth relied on as its main marketing channel.

    FLAVOR AND SIMPLE MARKETING RAISE APPEAL

    The formulation of probiotics in a juice means more

    scope for the brand to boast product to boast a variety

    of flavors. This means that the drink is not positioned

    purely for functional purposes as with some probiotics.

    Simplified and humorous marketing has helped the

    brand to address a serious issue in a lighter manner.

    ATTENTION TO DIGESTIVE HEALTH IS RISING

    The number of US consumers suffering from gut health

    problems is growingand will continue to do so.

    More awareness is being given to an area of health

    that previously had much stigma attached to it.

    Products that offer taste as well as easy-to-understand

    functional benefits are well placed to perform well.

    GoodBellyTargeting gut health sufferers in a fun and simple manner

    SUCCESS

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    ChobaniChanging perceptions to take on the big players

    WHAT?

    WHY?

    TAKE-

    OUT

    GREEK YOGURT HAS INVIGORATED THE ENTIRE

    CATEGORY DUE TO ITS HEALTH CREDENTIALS

    It is comparatively healthy compared to traditional

    yogurt favorites in the US.

    Brand heritage has been used as a key differentiator

    and a means of communicating health benefits.

    CONSUMERS ARE SEEKING OUT INDULGENCES

    THAT LESSEN FEELINGS OF GUILT

    An increasingly educated consumer is becoming more

    disposed to feelings of guilt after eating or drinking

    something perceived to be bad for them.

    Guilt-free indulgences are therefore highly sought-after as

    a means of overcoming this growing problem.

    EVEN ESTABLISHED MARKET LEADERS AREVULNERABLE TO NEW PRODUCTS THAT SATISFY

    VERY REAL CONSUMER NEEDS

    Consumer needs are being met in new ways all the

    time.

    Failing to identify potential through understanding

    what consumers want can prove disastrous.

    SUCCESS

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    U By KotexBringing life to a sleeper brand by challenging

    category norms

    WHY?

    HOW?

    TAKE-

    OUT

    KOTEX HAD AQUIRED A DATED BRAND IMAGE

    WHICH LACKED CONSUMER APPEAL

    Despite inventing the feminine hygiene category back

    in 1920, the Kotex brand had experienced category

    decline and share erosion in recent years.

    The brand had fallen foul of an old-fashion image and

    was failing to stand out amid rising competition.

    USING BOLD BRAND DESIGN AND MARKETING TO

    STAND OUT AMONG CATEGORY CONVENTIONS

    Kotex used unconventional packaging designs coupled with

    a franker tone of marketing to achieve standout appeal

    among a younger audience.

    Breaking through category taboos and offering product

    relevance has revived Kotexs consumer relations.

    BRANDS SHOULD NOT OVERLOOK THE IMPACT OFDESIGN IN THE MARKETING MIX

    Packaging forms an integral part of a brands overall

    image and allure, particularly when facing a

    differentiation challenge in an overcrowded market.

    If leveraged effectively, packaging will serve to create

    more emotive consumer-brand engagements.

    SUCCESS

    http://www.ubykotex.com/
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    LOrealAdopting a new strategy for growth

    WHAT?

    HOW?

    TAKE-

    OUT

    A BUMPER 2011 FOR LOREAL

    LOreal posted impressive growth of 5.8% in North America

    in the first half of 2011, markedly ahead of the 3.5% growth

    forecast for the US beauty market.

    LOreal even achieved growth in segments such as salon

    hair care, which experienced broader market declines.

    A THREE-PRONGED STRATEGY TO FUEL MARKET

    GROWTH

    LOreals 2011 market success was due, in large part, to its

    focus on the US market, coordinated marketing across all

    brands, and increased digital marketing.

    This three-pronged strategic approach aimed to make the

    company both stronger and more flexible.

    BREAKING RANKS WITH GLOBAL COMPETITORSCAN ENHANCE MARKET FOOTHOLD

    In an overcrowded and competitive market landscape, a

    differentiation strategy is key to brand success.

    Ultimately it will be brands that distinguish their company

    strategy from their competitors that can hope to gain market

    share.

    SUCCESS

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    Yum! Brands in ChinaThe benefits of acting local in a complex and

    diverse emerging market

    WHAT?

    WHY?

    TAKE-

    OUT

    ADOPTING A LOCAL APPROACH TO A GLOBAL

    EXPANSION

    Yum! has sought to expand rapidly in the lucrative

    Chinese foodservice market.

    It has added local dishes to its menus in China, as well

    as opening foodservice outlets which serve more

    traditional Chinese cuisine.

    CONSUMERS RESPOND TO BRANDS THAT

    UNDERSTAND THEIR PREFERENCES AND NEEDS

    Menus which account for local tastes and delicacies have

    ensured that Chinese consumers feel they can relate to

    traditionally Western brands.

    This is especially vital as Chinese consumers place a large

    amount of importance on food being local.

    CONSUMERS DO NOT WANT TO BE TREATED ASONE HOMOGENOUS GROUP

    While consumers are often drawn to quick service

    restaurants for common reasons (such as convenience

    and value) they all have their own preferences.

    Individualism is an important trend that is growing in

    significance, with this example demonstrating why.

    SUCCESS

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    Tide Dry CleanersInnovative expansion of an iconic brand

    WHAT?

    WHY?

    TAKE-

    OUT

    A SUPRISING FORAY INTO THE DRY CLEANING

    BUSINESS

    Procter and Gamble (P&G) ventured into the US dry

    cleaning industry with the launch of Tide Dry

    Cleaners.

    With no expertise running a retail operation, P&G

    collaborated with Cisco to build its store concept.

    CONSUMERS ARE CALLING FOR A SUPERIOR

    STANDARD OF DRY CLEANING

    Brand research showed US consumers to be largely

    dissatisfied with their current dry cleaning service, hinting of

    a market opportunity for the Tide brand.

    The aim was to develop a new retail concept that

    differentiated Tide from typical dry cleaning stores.

    BRANDS IN SATURATED MARKETS SHOULD LOOKTO EXPAND BEYOND THEIR CORE COMPETENCIES

    Bold forays into new industries can serve to deepen

    consumer loyalties to a brand, while simultaneously

    minimizing the risk of cannibalization .

    This usually requires collaboration with partners that have

    expertise in the new target category/industry.

    Tide Dry Cleaners was theUltimate Hub Prize Winner (best

    of the best) in the 2011 Hub Prize

    Competition for excellence and

    innovation in retail. Tide was

    selected from a competitive pool

    of 80 applicants.

    SUCCESS

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    Kelloggs KraveCapitalizing on white-space in a highly mature

    market segment

    HOW?

    WHY?

    TAKE-

    OUT

    A DEDICATED FOCUS ON INDULGENCE AND

    ENGAGING SOCIAL MEDIA EXECUTION

    Borrowing from one of its French brands, Kelloggs focused

    purely on taste and enjoyment with Krave.

    Recognizing the pervasive role of social media in young

    adult lifestyles, Krave delivered deeper levels of brand

    engagement through sustained social media activity.

    A NEED TO ENTICE NEW OR LAPSED CUSTOMERS

    UK consumers are buying less cereal , turning to otherbreakfast alternatives including yoghurt, cereal bars

    and porridge oats.

    The transition from tween and teen years into young

    adult life is a further challenge. This cohort outgrows

    their childhood favorites and thus drop out of cereals.

    LARGE COMPANIES IN PARTICULAR CAN SEIZE

    AND ADAPT PRE-EXISTING BRANDS TO PROFIT

    FROM WHITE-SPACE OPPORTUNITIES ELSEWHERE

    This partly explains why going forward, Kellogg's planned

    strategy for the US is to take brands successful in one market

    and launch in another.

    Krave has been labelled a proven idea to

    drive Kelloggs innovation-led growth in 2012For 2012, we expect nearly $900 million in

    innovation, driven by proven ideas such as Krave

    cereal in the US

    Kelloggs President and CEO,

    quoted at the Kellogg Q3

    November 2011 Earnings Call

    SUCCESS

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    Wodka VodkaProviding affordable luxury

    WHAT?

    WHY?

    TAKE-

    OUT

    ALCOHOLIC SPIRIT BOASTING DIFFERENTIATED

    AFFORDABLE PREMIUM POSITIONING

    Wodka Vodka boasts a differentiated affordable luxury

    positioning, holding strong taste credentials but at the same

    time appealing to a more frugal consumer.

    It has started strongly since its launch in the US gaining

    particular resonance among the embattled on-trade.

    WODKA HAS BEEN SUCCESSFUL IN

    COMMUNICATING ITS UNIQUE POSITIONING

    Wodka has successfully exploited the trend towards

    affordable luxury, successfully bringing a product to the

    market with good taste at a low price point.

    The brand has also been adept at communicating its

    credentials to consumers.

    A MORE FRUGAL CONSUMER IS LESS

    ENAMOURED BY PREMIUM BRAND IMAGE

    Evolving value perceptions can negatively impact

    brands that rely heavily on premium brand image

    The emergence of affordable premium vodka brands

    such as Wodka and Sobieski has the potential to

    significantly alter market dynamics in the category.

    Gold Medal: The Beverage Tasting Institute:

    SUCCESS

    http://www.tastings.com/scout_spirits.lasso?id=193454http://brandmediaweek.typepad.com/.a/6a00d834519bc269e20134880e1938970c-pi
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    Theme eight: Values driven branding

    As consumers have moved beyond merely satisfying basic

    safety needs, brands choice is more often directed by how they

    align with their personal values. Authentic brands in particular

    can effectively tap into this consumption orientation as

    consumers proactively seek out what is genuine or real.

    Consumers want more social responsibility from companies

    and each other as a critical mass develops in terms of

    consumer understanding, and willingness to participate willdrive corporate citizenship

    These consumer and social realities create opportunities for

    companies and brands that effectively demonstrate a values

    driven approach, while still delivering core product benefits

    associated with convenience, health and sensory expectations.

    Strong social missions will correlate with success if executed

    in the right way

    Many of the cases presented here show that ethicality and

    environmentalism can be a win-win scenario in terms of

    profitability and doing good.

    Cases in this section:(click to navigate)

    Coca-Cola PlantBottle

    Anchor Butter

    Repblica CoffeeJohnnie Walker

    Colgate Smile Campaign

    Breckenridge Craft Beer

    Havana Club

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    Coca-Cola PlantBottleProviding a lead on sustainability through

    packaging innovation

    WHY?

    WHAT?

    TAKE-

    OUT

    DEMONSTRATING LEADERSHIP IN SUSTAINABLE

    PACKAGING DEVELOPMENT

    The product taps into consumer demand for

    sustainable packaging solutions.

    Emphasis on renewable resources and commitment to

    recyclability demonstrates a holistic approach to

    overall issue of sustainability.

    NEW SUSTAINABLE PACKAGING FORMAT FOR

    SOFT DRINKS ICONCoca Cola are gradually introducing a new packaging

    material comprising 30% plant-based sources and 70%

    recycled plastic (PET polyethylene terephthalate).

    The new packaging format is 100% compatible with existing

    recycling scheme.

    PACKAGING CAN SYMBOLIZE CORPORATE INTENT

    A combination of innovative packaging technology

    and effective marketing can act as a potent symbol

    for a companys whole approach to sustainability.

    However, the sustainable landscape is extremely

    competitive. Good ideas are likely to be eventually

    superseded, so improvement must be continuous.

    SUCCESS

    h

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    Anchor ButterReigniting consumers brand affection with an

    emphasis on brand heritage

    HOW?

    WHY?

    TAKE-

    OUT

    SIMPLE AND TRADITIONAL MARKETING TO

    REVITALIZE A BRAND

    Anchor revived a popular TV ad, de-emphasizing its New

    Zealand origins and instead focused on brand heritage.

    A new pack design exuded an aura of a cotemporary

    classic further complemented the brand revitalization.

    SHAKING CONSUMERS FROM MAKING LOW-

    INVOLVEMENT, PRICE-DRIVEN CHOICESThe Arla-owned brand recognized that butter is a largely

    prosaic, price-driven choice for UK consumers.

    Falling brand share in a stagnating market served as a call-

    to-action for Anchor, which astutely recognized the

    unfulfilled potential of the latent brand equity.

    BRANDS MUST CONTINUALLY REFRESH TO

    BENEFIT FROM LATENT CONSUMER AFFECTION

    Fresh marketing and product design can reignite consumers

    emotional attachment to any given brand.

    But it requires investment and an astute awareness of what

    brand messages best resonate with consumers. Getting this

    right can rapidly influence purchase intent.

    2011 marketing

    design awards

    winner: food and

    household (fmcg

    products)

    Marketing society

    awards for excellence

    2011: brand

    revitalisation (highly

    commended)

    SUCCESS

    R bli C ff

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    Repblica CoffeeCombining connoisseurship with a conscience

    WHAT?

    WHY?

    TAKE-

    OUT

    COFFEE THAT TICKS ALL THE ETHICAL BOXES

    Repblica Coffee has a unique positioning as the only

    coffee company with an entire 100% Fairtrade and

    100% organic range, as well as carbon neutral status.

    A specialty coffee expert was recruited to develop a

    superior roast profile and exceptional flavor.

    ETHICAL CREDENTIALS ARE INCREASINGLY

    INFLUENTIAL FOR CONSUMERS

    Consumers are more aware of environmental and

    ethical concepts and feel growing pressure to change

    the way they live.

    However, they are not prepared to forfeit product

    enjoyment for ethical benefits.

    ETHICAL BENEFITS SHOULD COMPLEMENT AN

    ENJOYABLE PRODUCT EXPERIENCE

    Ultimately, consumers will nearly always prioritize

    sensory appeal over ethical benefits.

    While ethics may first attract consumers to a brand,

    quality and taste are the keys to ensuring repeat

    purchase.

    SUCCESS

    J h i W lk

    http://www.google.co.uk/search?q=johnnie+walker&hl=en&biw=1280&bih=575&prmd=imvnsor&source=univ&tbm=shop&tbo=u&ei=hD_FTvvBNcHf8QPsr4i1Cw&sa=X&oi=product_result_group&ct=image&resnum=4&sqi=2&ved=0CGMQzAMwAw
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    Johnnie WalkerTapping into the emerging consumerist society

    WHAT?

    WHY?

    TAKE-

    OUT

    A WHISKY INSPIRED BY TRADITION

    Johnnie Walker, a premium Scotch whisky brand, hasbeen on the market in China for many years.

    The explosion of wealth in China with a burgeoning

    middle class has in recent years propelled Chinese sales

    of the brand, while sales in core western market have

    been affected by the economic malaise.

    CONSUMERS UNRELENTING FAVOR FOR BRANDS

    WHICH REPRESENT THEIR LIFESTYLE

    The Chinese mainland is set to be the fastest-

    expanding market for luxury goods this year and the

    world's third largest by 2015.

    Brand consumption has a heightened sense of

    meaning and successful brands are aspirational.

    SELF CONGRUENT BRANDING FULFILLS CHINESE

    ASPIRATIONAL CONSUMPTION NEEDS

    Experiential marketing has proven to be a vital

    weapon in driving brand engagement in China.

    Consumers often attribute higher status to products

    that reflect their lifestyle and are suitable for gifting.

    SUCCESS

    C l t S il C i

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    Colgate Smile CampaignCombining digital and outdoor advertising

    WHAT?

    HOW?

    TAKE-

    OUT

    BRIDGING THE GAP BETWEEN ONLINE AND

    OFFLINE COMMUNITIESIn 2011, Colgate launched its Smile campaign in the

    UK, which combined social media with traditional

    advertising.

    In doing so, the campaign had a positive impact on

    brand image and consumer purchase discussions.

    MAKING BETTER USE OF FACEBOOK ACTIVITY

    Colgate used pictures uploaded by its Facebook Fans to

    create large outdoor collage posters.

    By linking its online community to its outdoor

    marketing activity, consumers were more likely to

    identify Colgate as a community brand. The

    campaign also served to grow buzz about purchase.

    LINK ONLINE AND TRADITIONAL MARKETING TO

    MAXIMIZE THE POTENTIAL OF A DIGITAL FANBASE

    Branded digital platforms represent an importantyet

    still nichechannel to consumer engagement.

    Supporting digital strategies with more tangible out-

    of-home initiatives will enable brands to maximise the

    rewards of having an online presence.

    SUCCESS

    B k id C ft B

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    Breckenridge Craft BeerAltering the marketing mix to drive craft beer

    WHAT?

    WHY?

    TAKE-

    OUT

    A GROWING MICROBREWERY

    Founded in the 1980s Breckenridge Brewery, Colorado

    is 45th in size among the 1,800 U.S. craft breweries.

    It has a projected 2011 production of 40,000-plus

    barrels and is sold in Colorado and 25 other states.

    AS MAINSTREAM BEER SALES DECLINE IN THE US,

    CRAFT ALES ARE BOOMING

    Mainstream beer brands have been declining as blue

    collar Americans have been hit by the financial crisis.

    Albeit from a low base, craft ales are growing, and

    highlighting this Breckenridge has invested in spoof

    TV advertising, not just relying on word of mouth.

    HARNESSING ABOVE THE LINE MARKETING

    POINTS TO A MAINSTREAMING SEGMENT

    The craft ale category has been built on a story of

    romance and provenance with local people acting as

    brand ambassadors, evangelizing about the brewery.

    However as marketing budgets have grown, TV

    advertising has become increasingly within reach.

    SUCCESS

    H Cl b

    http://www.breckbrew.com/beer/christmasale.htmlhttp://www.breckbrew.com/beer/autumnaleoktoberfest.htmlhttp://www.breckbrew.com/beer/vanillaporter.htmlhttp://www.breckbrew.com/beer/agavewheat.html
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    WHAT?

    WHY?

    TAKE-

    OUT

    CONSUMERS UNRELENTING FAVOR FOR

    AUTHENTICITY

    Rums success has been based on its suitability for

    authentic cocktails and that it is easily mixable.

    Havana Club uses Cuban artists and musicians in its

    marketing campaign and has benefited from the

    growth in Cuban tourism.

    PERCEPTIONS OF ORIGIN IS A VITAL COMPONENT

    OF SUCCESSFUL BRANDING

    As a brand from an emerging market, its success turns the

    traditional discourse of western-led innovation in emerging

    markets on its head.

    Its link with Cuban culture and lifestyle has been at the

    forefront of the brands success in western markets.

    Havana ClubReverse innovation: turning a Cuban brand into a

    global success

    A RUM FAMED FOR ITS CUBAN HERITAGE

    Havana Club, a white and golden rum brand, is part owned

    by the Cuban government and part by Pernod Ricard. It is

    strongly associated with Cuban culture.

    Havana Club is widely drunk in Cuba, but much of its growth

    has come from export markets. Indeed, it is one of Cubas

    few international brands.

    SUCCESS

    Th i C t i l t

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    Theme nine: Customer involvement

    Are you offering ways for people to express themselves

    through the brand? Individualistic and creative consumers are

    looking for new ways to be recognized through creative

    expression and are thus becoming heavily engaged in the

    product creation business.

    Providing consumers, especially younger cohorts, with an

    opportunity to create, interact and engage with products and

    each other is now an important component of successfulmarketing.

    The following examples also demonstrate the importance of

    something altogether more simple: ensuring that you have

    listened to and appropriately involved the consumer in the

    product development process. The derived insights will better

    enable businesses to adapt to, as well as compete in, an ever-

    changing environment.

    Not only does it help to ensure that the products and services

    are aligned with consumer priorities, but it can also lead to

    unprompted brand advocation and higher brand engagement.

    Cases in this section:(click to navigate)

    Whiskas Earster Cats

    Olay UV Monitor

    Whiskas Earster Cats

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    Whiskas Earster CatsUsing connective technology to display the fun

    side of a brand

    WHAT?

    WHY?

    TAKE-

    OUT

    WHISKAS LAUNCHED A MOBILE APP THAT

    ENCOURAGED CONSUMERS TO SHARE PICTURES OFTHEIR CATS

    Users of the app can take pictures of their cats, and

    affix funny novelty ears to them.

    They have the ability to share these pictures with both

    friends and strangers using mobile galleries.

    CONSUMERS ENJOY THE ABILITY TO SHARE WHAT

    IS IMPORTANT TO THEM IN LIFE

    Sharing is a huge feature of contemporary society -

    many consumers have their own brand online.

    The app appealed to the irreverent side of

    consumersfulfilling a desire to have fun without

    feeling overwhelmed by brand advertising.

    BRANDS CAN USE THE NOVEL AND THE IRREVERANT

    TO BOOST THEIR OWN IMAGE

    Consumers often use technology to have fun, unwind,

    or simply waste time, due to the sheer number of

    options available to them.

    Therefore, brands which can facilitate this in a

    genuinely engaging way can resonate with consumers.

    Best Use of

    Mobile Media

    in Advertising

    award winner,2011

    SUCCESS

    Olay UV Monitor

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    Olay UV MonitorEngaging consumers with more personalized

    marketing tactics

    WHAT?

    WHY?

    TAKE-

    OUT

    AN IPHONE APP TO DRIVE CONSUMER

    ENGAGEMENT AND BRAND AWARENESSIn November 2010 Procter and Gamble (P&G) launched

    the iPhone mobile app Olay UV Monitor.

    The app was used to enhance consumer engagement

    with the Olay brand and raise awareness of the specific

    SPF protection benefits of its products.

    SPF PROTECTION IS AN IMPORTANT YEAR ROUND

    CONSIDERATION FOR AUSTRALIAN CONSUMERS

    UV-induced skin aging and cancer are top-of-mind

    concerns for Australians when choosing skincare.

    However, with the skincare market now somewhat

    saturated with products claiming SPF protection

    benefits, brands must differentiate their offering.

    PERSONALIZATION PROVIDES A ROUTE TO GREATER

    BRAND CREDIBILITY AND CONSUMER TRUST

    Consumers highly value products and services that

    evoke a feeling of individuality.

    Personalized features and benefits can provide market

    differentiation because they strongly align with a more

    compelling and distinctive brand proposition.

    SUCCESS