“Living the Brand” vs. Surviving the Corporate Battlefield

1. “Living the Brand” vs. Surviving the Corporate Battlefield Phil Lynas Managing Director - The Grocery Company

2. “From Medomsley Road, Consett to United Biscuits Plc….!” “Still Peri-Peri Passionate”

4. 1982 Crisp & Snack Market Dominated by 3 major players Market worth c. £1bn Products aimed solely at children Adults consumption = ‘Distress Purchase’

5. 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….

6. So they ignored the research! Investigated snacks from around the world Went to local pub Had several pints Invented Phileas Fogg Staggered home….

7. 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

11. 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

12. 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

13. And then……..?

14. 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….

15. KP & Phileas Fogg No passion or understanding of ‘brand soul’ Investment in advertising withdrawn Limited NPD – innovate or die!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….

18. Corporate Battlefield Phileas Fogg treated like a KP brand Lost distinctiveness & differentiation Doritos launch confused brand positioning Limited internal ‘ownership’ No Brand Passion!

19. 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!

20. 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….

21. Today…..? Walkers Crisps £417m Pringles £144m Doritos £77m Sensations £76m Kettle Chips £55m Walkers Baked £37m Phileas Fogg £101,000

22. 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”

23. Enjoy the journey….!

25. 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

26. “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

27. The Vision Best not biggest Establish & Own Peri-Peri One brand Defined by Values & Passion… New ‘casual dining’ & in-home experience Have fun, making money….!

28. Nando’s Restaurant Retail Flame-grilled Chicken Casual Dining Fun Environment Peri-Peri Portugal? Passion Wit Innovation Taste Adventure Flavour Enhancement BBQ

29. Peri-Peri Passion What Nando’s is… What it’s not… Authentic Intimidating Quirky Weird Efficient Fast (food) Informal Lazy Bustling Manic Interactive Chaotic Contemporary Trendy Young at heart Juvenile Humorous Comic Rule breaking Conformist Earthy Plastic/Contrived

30. Nando’s in Grocery Rational Emotional Portuguese Passion Peri-Peri Passionate Peri-Peri

31. Successful? 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

32. And in the UK 175+ highly successful restaurants Market Leader in ‘Fast-Casual Dining’ Dominant Marinade market leaders Fast Growing Chilli Sauces Biggest Nando’s Market

33. Marinade Market Share

34. 15 years on 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?

35. – where next ‘Putting restaurant brands on supermarket shelves’

36. Who’s integrated well? 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

37. “Living the Brand” Internal Ownership People Passion Internal Marketing Belief System “Can do” culture No templates Empowerment Freedom Casual, but professional Uncomfortable for some…