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What Makes Big Brands Stay Big? 3 June 2010 Jonathan Banks Special acknowledgement and thanks to: Craig Twyford, The Nielsen.

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Presentation on theme: "What Makes Big Brands Stay Big? 3 June 2010 Jonathan Banks Special acknowledgement and thanks to: Craig Twyford, The Nielsen."— Presentation transcript:

1 What Makes Big Brands Stay Big? 3 June 2010 Jonathan Banks Special acknowledgement and thanks to: Craig Twyford, The Nielsen Company

2 50s/70s/noughties...

3

4

5

6 September 17, 2009 Icilma 6% Page 6 The big shampoos of the 1940s had disappeared a generation later Drene 11% Evan Williams 18%

7 September 17, 2009 Page 7 And most of the brands that replaced them disappeared a generation after that Sunsilk 8% (1979 ) Silvikrin 11% (1979 )

8 Winners and losers in the last 15 Years Movers 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)

9 September 17, 2009 Page 9 88% of the top 100 brands are over two decades old Page 9 88%

10 September 17,

11 September 17, 2009 Cadbury adverts a century a part Page 11 50s 90s 20s

12 September 17, years of Coca-Cola Page

13 September 17, 2009 The big post-war breakfast cereal brands are still household names today £ Brand Share #1 #2 #3 #2 #3 #1 #7 #4

14 September 17, 2009 Some more winners... UK market share (%)

15 September 17, 2009 Page 15 So, a new truism Some big brands stay big but most dont. But why?

16 September 17, 2009 What makes big brands stay big Rule #1: The age at which the emotional engagement occurs

17 September 17, 2009 Page 17 Early engagement builds loyalty Brands that are highly visible to children – visible on TV – visible in the home Brands where children have some element of choice and where preferences are established early

18 September 17, 2009 Page 18 The most loyal brand?

19 September 17, 2009 Page 19 Marmite 2000s 1930s

20 September 17, 2009 Page 20 Shredded Wheat 1905

21 September 17, 2009 Page s 1950s Weetabix down the ages 1949: 18% 1979: 18% 1990s 2009: #1

22 September 17, 2009 Page 22 HP 1950s 1960s 2005

23 September 17, 2009 What Makes Big Brands Stay Big Rule #2: Beware of creative destruction

24 September 17, 2009 Page 24 Laundry Detergents market share % 30% % 15% 8% % 13% 12% Something happened?

25 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

26 September 17, 2009 UKs top 10 most visited internet sites 1.Google 2.MSN 3.BBC 4.Yahoo! 5.Facebook 6.Microsoft 7.eBay 8.Youtube 9.Amazon 10.Wikipedia 80% did not have a significant bricks and mortar presence

27 September 17, 2009 Page 27 Does change occur every generation? High level of stability between 1949 & 1979 High level of stability between 1979 & 2009 Shampoo Cigarettes Beer Comfort, Satisfaction, Familiarity, Taste Modern, Individual, Desire for better Breakfast Cereals Brown Sauce Meat & Veg Extract

28 September 17, 2009 Page 28 Does change occur every generation? High level of stability between 1949 & 1979 High level of stability between 1979 & 2009 Breakfast Cereals Brown Sauce Meat & Veg Extract ? ? Shampoo Cigarettes Beer

29 September 17, 2009 Page 29 Does change occur every generation? High level of stability between 1949 & 1979 High level of stability between 1979 & 2009 Baby Food Soap Coughs & Colds Shaving Prep Laundry Detergent Coffee Shampoo Cigarettes Beer Breakfast Cereals Brown Sauce Meat & Veg Extract

30 September 17, 2009 WasH2O from Haier - dihydrogen monoxide. Airwash

31 September 17, 2009 What Makes Big Brands Stay Big Rule #3: Continually evolve the brand in line with macro trends

32 September 17, 2009 Page 32 40% of the UK Biggest Brands in 1992 had disappeared from the list by 2008* *allowing for changes in definitions

33 September 17, 2009 Page 33 Lucozade developed their energy message

34 September 17, 2009 Page 34 Dairylea changed the proposition to stay relevant

35 September 17, 2009 Page 35 Kelloggs shifted emphasis

36 September 17, and redefined the tasty segment...

37 September 17, 2009 What Makes Big Brands Stay Big Rule #4: Maintain and justify a premium positioning

38 September 17, 2009 Successful brands typically command a premium Winners Losers Source: Nielsen 1949

39 September 17, 2009 What Makes Big Brands Stay Big Rule #5: Dominate the emerging channels

40 September 17, 2009 Successful brands dominated the emerging channel Share in Multiples indexed on share in Chemists or Independents in 1949

41 September 17, 2009

42 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

43 September 17, % of CEOs believe their brand provides a superior customer experience 8% of their customers agree Source: Bain & Company

44 September 17, 2009 We will always love brands

45 September 17, 2009 Thank you!


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