Embed Size (px)
Citation preview
What Makes Big Brands Stay Big?
3 June 2010
Jonathan Banks
Special acknowledgement and thanks to: Craig Twyford, The Nielsen Company
50s/70s/noughties...
50s/70s/noughties...
50s/70s/noughties...
50s/70s/noughties...
September 17, 2009Icilma 6% Page 6
The big shampoos of the 1940’s had disappeared a generation later
Drene 11%
Evan Williams 18%
September 17, 2009 Page 7
And most of the brands that replaced them disappeared a generation after that
Sunsilk 8% (1979)
Silvikrin 11% (1979)
Winners and losers in the last 15 YearsMovers in the UK Top 100 since 1992 or which have grown/declined significantly
+Lucozade (55,8)
Muller (0,17)
Volvic (0,30)
Dairylea (78,43)
Finish (0,46)
Actimel (0,47)
Kelloggs Special K (0,54)
Walkers Sensations (0,77)
Yeo Valley Organic (0,88)
-Kelloggs Cornflakes (17,0)
Tate & Lyle (22,0)
Birds Eye Menu Master (28,0)
St Ivel Gold (30,0)
Del Monte Juice (34,0)
Ski Yoghurt (40,0)
Golden Wonder Pots (43,0)
Frosties (44,0)
Maxwell House (58,0)
Page 8
(1992 position, 2007 position)
September 17, 2009 Page 9
88% of the top 100 brands are over two decades old
Page 9
12
23 24
15
7
19
<20 20-39 40-59 60-79 80-99 >99years since launch
# o
f b
ran
ds
88%
September 17, 2009
1876 1881 1886 1904
1908 1918 1920-33 1934
1939 1962 1969 1996
September 17, 2009
Cadbury adverts a century a part
Page 11
50s 90s20s
September 17, 2009
100 years of Coca-Cola
Page 12
1886 1906 1926 1946
1966 1986 2006 2009
September 17, 2009
The big post-war breakfast cereal brands are still household names today
41
1318
23
8
18
105 4
1949 1979 2009
£ Brand Share#1
#2#3
#2
#3
#1
#1
#7#4
September 17, 2009
0
20
40
60
80
M R H C
1949 1979 2009
Some more winners...
UK market share (%)
September 17, 2009
What makes big brands stay big
Rule #1: The age at which the emotional
engagement occurs
September 17, 2009 Page 18
The most loyal brand?
September 17, 2009 Page 19
Marmite
2000s1930s
September 17, 2009 Page 20
Shredded Wheat
1905
September 17, 2009 Page 21
1970s
1950s
Weetabix down the ages
1949: 18%
1979: 18%
1990s
2009: #1
September 17, 2009 Page 22
HP
1950s 1960s 2005
September 17, 2009
What Makes Big Brands Stay Big
Rule #2: Beware of “creative destruction”
September 17, 2009 Page 24
Laundry Detergents market share
1949
31%
31%
30%
1979
18%
15%
8%
2009
19%
13%
12%
Somethinghappened?
September 17, 2009
Major technological breakthroughs usually create winners from outside the category
• Detergent: soap to synthetic– Ariel & Tide not Rinso or Oxydol
• Toothpaste: powder to fluoride– Colgate not MacLeans
• Coffee: ground to instant– Nescafé not Lyons
• Shaving Foam– Gillette not Levers or Colgate
• Mouthwash– Listerine not Colgate
• Autodish– Vanish not Fairy
• Chilled Juice– Tropicana not Del Monte
• Liquid Soap/Shower Gel– Carex & Lynx not Lifebouy or Lux
Page 25
September 17, 2009
What Makes Big Brands Stay Big
Rule #3:Continually evolve the brand in line with
macro trends
September 17, 2009 Page 33
Lucozade developed their energy message
September 17, 2009 Page 34
Dairylea changed the proposition to stay relevant
September 17, 2009 Page 35
Kellogg’s shifted emphasis
September 17, 2009
...and redefined the tasty segment...
September 17, 2009
What Makes Big Brands Stay Big
Rule #4: Maintain and justify a premium
positioning
September 17, 2009
Successful brands typically command a premium
0
10
20
30
40
50
60
HeinzBaby
Ryvita Jeyes LibbyBaby
MacVita Ibcol
Value Share Volume Share
Winners Losers
Source: Nielsen 1949
September 17, 2009
What Makes Big Brands Stay Big
Rule #5: Dominate the emerging channels
September 17, 2009
Successful brands dominated the emerging channel
0 50 100 150 200
Heinz Baby
Colgate Toothpaste
Wisdom Toothbrush
Brands Baby
Spa Toothbrush
Kolynos Toothpaste
Share in Multiples indexed on share in Chemists or Independents in 1949
Share in Multiples indexed on share in Chemists or Independents in 1949
September 17, 2009
September 17, 2009
1. The age at which the emotional engagement occurs
2. Beware of “creative destruction”
3. Continually evolve the brand in line with macro trends
4. Maintain & justify a premium positioning
5. Dominate the emerging channels
5 rules that ensure the big brands stay big
September 17, 2009
80% of CEO’s believe their brand provides a superior customer experience
8% of their customers agree
Source: Bain & Company
September 17, 2009
We will always love brands
