“living the brand” vs. surviving the corporate battlefield phil lynas managing director - the...
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“Living the Brand”vs.
Surviving the Corporate Battlefield
Phil Lynas
Managing Director - The Grocery Company
1982 Crisp & Snack Market
Dominated by 3 major players
Market worth c. £1bn
Products aimed solely at children
Adults consumption = ‘Distress Purchase’
Location : Medomsley Road Consett…
4 men with open minds, vision, passion & £67k….
No brand, no products, no factory
Initial research into snack market said snacks must be…
• Made from potato
• In small bags with window
• Maximum 15p per bag
• Stick to traditional flavours
• Salt & Vinegar, Cheese & onion, Beef, Ready Salted & Prawn Cocktail….
So they ignored the research!
Investigated snacks from around the world
Went to local pub
Had several pints
Invented Phileas Fogg
Staggered home….
Challenged rules of Crisp Market!
• Tortilla Chips, Shanghai Nuts, Californian Corn Chips & Mignons Morceaux!
• 100g per pack – perfect for sharing!
• 44p
• Adventurous flavours, targeted clearly at adults
• Supported by very memorable advertising & design
The Results
1982 Product of the Year
1986 CBI Company of the Year
Marketing Society Implementation Excellence Award
Hailed as one of the brand launches of the eighties
Sales of £20m at RSP within 10 years of launch.
Total Turnover c. £30m in 1993
Why the success?
Distinctive Brand Identity
Innovative Culture & constant NPD
“Why not?”
“Don’t compromise your distinctiveness for majority appeal”
Understood ‘Brand Soul’
Passionate & Single-minded Brand Ownership
Corporate Battlefield
Sold to United Biscuits in 1993 for £27m
Became part of the KP Brand portfolio
KP had tried to establish ‘adult’ credentials with McCoys & Brannigans.
Bought Phileas Fogg so that the “creative & innovative values could rise through the business…”
Or was it because they couldn’t do it themselves….
KP & Phileas Fogg
No passion or understanding of ‘brand soul’
Investment in advertising withdrawn
Limited NPD – innovate or die!
Many, many, many packaging changes
Lost in a big brand environment….
Corporate Battlefield
Phileas Fogg treated like a KP brand
Lost distinctiveness & differentiation
Doritos launch confused brand positioning
Limited internal ‘ownership’
No Brand Passion!
Today…..?
Crisp & Snack market worth £2.2bn
Crisp market has grown from £1bn to £1.27bn since ‘82
Snack market alone now worth c £970m
Snacks now account for 44% of total bagged snack market
Brand has lost it’s relevance and almost all its sales!
Brand Awareness….
Kettle Chips 83%
Phileas Fogg 79%
M & S 75%
Tesco Finest 60%
Tyrell's 17%(Prompted IGD 2005)
In 2005 74% of respondents associated Phileas Fogg with Around the World in 80 days
Phileas described as ‘quirky, adventurous, warm, outgoing & friendly’
Brand values & awareness to die for 20 years on….
Today…..?
Walkers Crisps £417m
Pringles £144m
Doritos £77m
Sensations £76m
Kettle Chips £55m
Walkers Baked £37m
Phileas Fogg £101,000
Phileas Fogg re-launch
“To branch away from its owner United Biscuits and regain its own unique identity”
“Take to new level of exclusiveness so that it is talked about”
“Modernising the brand whilst retaining its original heritage”
“…out of all the brands at United Biscuits, Phileas has the best opportunity to develop its
identification”
A very brief history…!
1400’s Portuguese discover Birds Eye Chilli and spread around world
1987 ‘Chickenland’ – Rosettenville, Johannesburg
1990 Nando’s Grocery launches in SA garage…
1992 1st UK restaurant – Nando’s Ealing
1997 Grocery launched in UK
“Nando’s is not just about chicken, it’s never been just about
chicken….
It’s about pride, passion, courage and integrity but most of all family”
Robbie Brozin CEO – Nando’s Worldwide
Best not biggest
Establish & Own Peri-Peri
One brand
Defined by Values & Passion…
New ‘casual dining’ & in-home experience
Have fun, making money….!
The Vision
Restaurant
Retail
Flame-grilled
Chicken
Casual Dining
Fun Environment
Innovation
Taste Adventure
Flavour Enhancement
BBQ
Peri-Peri
Portugal?
Passion
Wit
Nando’s
What Nando’s is… What it’s not…
Authentic IntimidatingQuirky WeirdEfficient Fast (food)Informal LazyBustling ManicInteractive ChaoticContemporary TrendyYoung at heart JuvenileHumorous ComicRule breaking ConformistEarthy Plastic/Contrived
Peri-Peri Passion
1998 169 restaurants 7 countries
2001 345 restaurants 22 countries
2004 502 restaurants 29 countries
2007 750 restaurants 30 countries
Sauces available in 31 countries
Successful?
175+ highly successful restaurants
Market Leader in ‘Fast-Casual Dining’
Dominant Marinade market leaders
Fast Growing Chilli Sauces
Biggest Nando’s Market
And in the UK
Marinade Market Share
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Business has grown but values have grown with it
People understand brand origin;
adapted to changing consumers & markets
Huge investment by restaurants in training & development
Same approach to people & fun as when it started
Why should it be different when you have 20 staff or 20,000?
15 years on
Ben & Jerry – Now part of Unilever
Changed perception of Ice Cream market
Brand sales 2006 2007£41.2m £50.6m
Green & Blacks – Now part of Cadbury
Changed perception of Chocolate market
Brand sales 2006 2007£21.4m £30.3m
Who’s integrated well?
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