1

Successes and Failures in

Consumer Packaged Goods
Innovation and Marketing in 2011
Reflecting on stand-out NPD and marketing
2
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Withdrawn from sale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 as
well 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 ritualistic
consumption 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.
4
Chicago Town Takeaway Pizza
Emphasizing premium indulgence to capture
dine-at-home consumers
WHAT?
WHY?
TAKE-
OUT
FROZEN PRODUCT BOASTING PREMIUM
POSITIOING
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 2011 representing a
132% year-on-year sales increase.

LINKING TO SOCIAL OCCASSIONS TO TAP INTO
DINE-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 TO
TARGET 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
5
Birds Eye Bake to Perfection
Combining convenience and quality to revive
frozen food fortunes
WHAT?
WHY?
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A CONVENIENT QUALITY PRODUCT BREATHING
NEW 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 CONSUMER
PERCEPTIONS 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 SPECIFIC
NEEDS AND SUPPLYING INNOVATIVE SOLUTIONS
Consumers can be persuaded to change entrenched
views when provided with attractively presented
offers that meet relevant need states.
SUCCESS
6
Lucozade Sport Lite
Achieving a good health/taste balance
WHAT?
WHY?
TAKE-
OUT
LOW CALORIE SPORTS ENERGY DRINK
TARGETTTED AT LIFESTYLE CONSUMERS
In Q2 2010, GlaxoSmithKline (GSK) launched a new 50
calorie variety of Lucozade Sport under 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 BEVERAGES
THAT 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 ENERGY
DRINKS 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
7
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 Water
Repositioning to target a new and more
lucrative audience
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 SERVED
TO 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 AND
UNPREDICTABLE 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
9
Reckitt Benckiser Dettol soap
Targeting rural consumers with affordable products
WHAT?
WHY?
TAKE-
OUT
CONSUMERS GROWING HYGIENE CONCERNS
Personal 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 WIDER
CONSUMER 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 ARE
BECOMING 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
10
WHAT?
WHY?
TAKE-
OUT
AN ESTABLISHED BRAND WHICH HAS SEEN A
SURGE 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 SLEEPING
PATTERNS
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 IS
GROWING
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 Remedy
Capitalizing on rising stress and anxiety levels
SUCCESS
11
Dove Bodywash
Relying on fable over fact
WHAT?
WHY?
TAKE-
OUT
DOVE WANTED TO GROW SHARE IN A BUSY
CATEGORY
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 TOWARDS
SCIENCE-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 TO
GARNER 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
12
McCain India frozen foods
Combining local and affordable
WHY?
HOW?
TAKE-
OUT
CONVENIENCE AND THE POWER OF LOCALISM
Consumer 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 ACCESS
McCain 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 SALES
GROWTH
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
13
Cheesestrings Shots and Kerrygold Cheddar
Innovation 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 IT
NOTORIOUSLY 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
14
Theme three: Trend crossover
Multi-benefit/multi-functional products are increasingly
important 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 to
emphasize 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 likely
to 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
15
Heinz Beanz Fridge Pack
Increasing 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 BENEFIT
FROM 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.
Sunmagic
Successfully combining health and sensory appeal
SUCCESS
17
Ricard
Combining 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 IMPORTANT
FOR 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
18
Aperol
Successfully 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 PROSPER
Alcohol 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
19
First Cape Caf Collection
Targeting health and sensory appeal
WHAT?
WHY?
TAKE-
OUT
ALIGNING WITH THE HEALTH TREND WILL BE
CRITICAL FOR THE ALCOHOLIC DRINKS CATEGORY
Health will become a key battleground for alcohol
innovation get 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 NEEDS
First 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 WINE
STYLES
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
20
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 SUCCESSFUL
PAIRING
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 BENEFITS
Consumers 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
21
Theme four: Formulation for success
Beyond the sensory profile of food and beverages, it is often
the 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 occasions chief 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 BRANDS
Lighter and flavored versions of Brazilian cachaa is
increasingly popular at pubs, restaurants, and
nightclubs in Brazil.
The brand utilized the existing strength of parent
brands such as Santa Dose to enhance the
credibility and allure of the new offering..
FLAVOR AND BRAND IMAGE ARE CRITICAL IN
GROWING 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 Cachaa
Leveraging sophistication for a high-end positioning
SUCCESS
23
Dippin Dots
Struggling 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 POINT
HAS 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 MOST
CONSUMERS 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 Toothpaste
Improving 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 MIX
Packaging 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
25
Twinings The Earl Grey
The 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 ATTACHMENT
The 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 CHANGE
Brand 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
26
WKD Purple and Lucozade
Building 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 IN
GROWING 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
27
Vaalia Innergy
Balancing 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 PURSUING
TARGETED 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 RATIONAL
PURCHASE 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
28
Densia
Benefiting from fast growth in incomes and changes in diets
WHAT?
WHY?
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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 2004 yogurt
with digestive benefits targeted at women Danone 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 BE
COMBINED 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 against
osteoporosis, 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
29
Theme five: Beware the halo effect
The introduction section highlighted the negative implications
of the halo effect of being overly influenced by a high
performer. 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 holy
grail the 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 have
had 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
30
Diet Pepsi Skinny Can
Diluting the impact of packaging innovation
WHAT?
WHY?
TAKE-
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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 PUBLICITY
Although 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 OF
WHAT 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
31
Stella Artois Cidre
Leveraging 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 THE
NEED 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
32
Rachels and Ellas Kitchen
Making 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 BE
ENOUGH TO ENTICE LONG TERM LOYALTY
Organic production and the positive connotations
surrounding that should 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
33
MGD 64 Lemonade
Failing 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 BEER
AND 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 Hard Lemonade.
FAILURE
34
Theme six: Brand relevance
The following examples are testament to the importance of
delivering 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 supporting is 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 inherent
innovativeness 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
35
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.
Daloon
Improving sensory attributes in the frozen food sector
SUCCESS
36
Minute Maid Pulpy
A 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 EXPECT
BRANDS 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
37
HP Guinness Sauce
Failing 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 30s many 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 TO
FULLY 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
38
Fat Foam
Demonstrating 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 IGNORED
Private 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
39
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 IS
REQUIRED 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
40
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.
Budweiser
Losing share to import and low calorie alternatives
FAILURE
41
Vitasoy
Enhancing 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 FOR
SELF-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
42
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
43
WHAT?
WHY?
TAKE-
OUT
VITA COCO DOUBLED ITS YEAR-ON-YEAR SALES
Vita Coco continues to increase its portfolio of coconut
water 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 Coco
Witnessing rapid growth in a new market
SUCCESS
44
WHAT?
WHY?
TAKE-
OUT
A PROBIOTIC RECORDING LARGE SALES GROWTH
GoodBelly is a non-dairy probiotic beverage that has
been 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 growing and 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.
GoodBelly
Targeting gut health sufferers in a fun and simple manner
SUCCESS
45
Chobani
Changing 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 ARE
VULNERABLE 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
46
U By Kotex
Bringing 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 OF
DESIGN 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
47
LOreal
Adopting 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 COMPETITORS
CAN 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
48
Yum! Brands in China
The 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 AS
ONE 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
49
Tide Dry Cleaners
Innovative 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 LOOK
TO 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 the
Ultimate 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
50
Kelloggs Krave
Capitalizing 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 other
breakfast 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 2012
For 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
51
Wodka Vodka
Providing 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
52
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 will
drive 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 Coffee

Johnnie Walker

Colgate Smile Campaign

Breckenridge Craft Beer

Havana Club
53
Coca-Cola PlantBottle
Providing 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 ICON
Coca 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
54
Anchor Butter
Reigniting 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 CHOICES
The 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
55
Repblica Coffee
Combining 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
56
Johnnie Walker
Tapping into the emerging consumerist society
WHAT?
WHY?
TAKE-
OUT
A WHISKY INSPIRED BY TRADITION
Johnnie Walker, a premium Scotch whisky brand, has
been 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
57
Colgate Smile Campaign
Combining digital and outdoor advertising
WHAT?
HOW?
TAKE-
OUT
BRIDGING THE GAP BETWEEN ONLINE AND
OFFLINE COMMUNITIES
In 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 important yet
still niche channel 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
58
Breckenridge Craft Beer
Altering 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
59
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 Club
Reverse 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
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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 successful
marketing.

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
61
Whiskas Earster Cats
Using 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 OF
THEIR 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
consumers fulfilling 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
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62
Olay UV Monitor
Engaging consumers with more personalized
marketing tactics
WHAT?
WHY?
TAKE-
OUT
AN IPHONE APP TO DRIVE CONSUMER
ENGAGEMENT AND BRAND AWARENESS
In 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