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What Makes Big Brands Stay Big?. 3 June 2010 Jonathan Banks jonathambanks@hotmail.com. Special acknowledgement and thanks to: Craig Twyford, The Nielsen Company. 50s/70s/noughties. 50s/70s/noughties. 50s/70s/noughties. 50s/70s/noughties.
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What Makes Big Brands Stay Big? 3 June 2010 Jonathan Banks jonathambanks@hotmail.com Special acknowledgement and thanks to: Craig Twyford, The Nielsen Company
The big shampoos of the 1940’s had disappeared a generation later Evan Williams 18% Drene 11% Icilma 6% Page 6
And most of the brands that replaced them disappeared a generation after that Sunsilk 8% (1979) Silvikrin 11% (1979) Page 7
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)
88% of the top 100 brands are over two decades old 88% Page 9 Page 9
1876 1881 1886 1904 1908 1918 1920-33 1934 1939 1962 1969 1996
Cadbury adverts a century a part 90s 20s 50s Page 11
100 years of Coca-Cola 1886 1906 1926 1946 1966 1986 2006 2009 Page 12
The big post-war breakfast cereal brands are still household names today £ Brand Share #1 #1 #2 #2 #3 #1 #3 #4 #7
Some more winners... UK market share (%)
What makes big brands stay big Rule #1: The age at which the emotional engagement occurs
The most loyal brand? Page 18
Marmite 1930s 2000s Page 19
Shredded Wheat 1905 Page 20
Weetabix down the ages 1990s 1970s 1950s 2009: #1 1979: 18% 1949: 18% Page 21
HP 1960s 2005 1950s Page 22
What Makes Big Brands Stay Big Rule #2: Beware of “creative destruction”
Laundry Detergents market share 8% 12% 31% 15% 31% 13% 30% 18% 19% 2009 1949 1979 Something happened? Page 24
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
What Makes Big Brands Stay Big Rule #3: Continually evolve the brand in line with macro trends
Kellogg’s shifted emphasis Page 35
What Makes Big Brands Stay Big Rule #4: Maintain and justify a premium positioning
Successful brands typically command a premium Losers Winners Source: Nielsen 1949
What Makes Big Brands Stay Big Rule #5: Dominate the emerging channels
Successful brands dominated the emerging channel Share in Multiples indexed on share in Chemists or Independents in 1949 Share in Multiples indexed on share in Chemists or Independents in 1949
5 rules that ensure the big brands stay big • The age at which the emotional engagement occurs • Beware of “creative destruction” • Continually evolve the brand in line with macro trends • Maintain & justify a premium positioning • Dominate the emerging channels
80% of CEO’s believe their brand provides a superior customer experience 8% of their customers agree Source: Bain & Company
Thank you! jonathanmbanks@hotmail.com