BRAND FORUM MARCH 2016
Colin Gordon, CEO Glanbia Consumer Foods
BRAND FORUM MARCH 2016
Colin Gordon, CEO Glanbia Consumer Foods
©
2001
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5
9
General Elections
Irish Golf Majors
3
6 Nations Championships
c.
15
Referenda
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©
Beef
Pigmeat
Horsemeat
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National Task Force
on Obesity
7 Seasons of
Operation
Transformation
Sugar Tax Issue
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“WORSE RECESSION” EVER
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“VALUE” AT CORE; IRISHNESS MARGINALISED
PL = 49% of packs; 2/3 of Top 100 = non-Irish
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CUSTOMER BASE CHANGED UTTERLY
c. 50% of ‘domestic’ retail
Internationally
based/contracted
+70% of (contract) Food
Service
Internationally
based/contracted
xx% of hotels/coffee shops
??
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CONSUMERS ENGAGE WITH RETAILERS
INTENSIVELY
+238
OUR MARKETS
SHOPPING TRIPS P.A.
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WE MAKE ‘FOOD’ DECISIONS C. 400 TIMES PER DAY
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CONSUMER MILK MARKET IN IRELAND
KEY FACTS
High per caps
Must-stock,
distress purchase
Over-capacity,
plastic eases entry
Short shelf-life,
dates critical
Overall, on average,
no money made –
economic folly @
play
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How do you survive in
such a large, dynamic
and harsh
marketplace?
…….where no-one knows your name!
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5 STEP APPROACH
Develop a
clear, simple
strategy
Right
business
model
Based on a
Fully funded/
single, simple
supported
TRUTH……
Which
everyone/all
stakeholders
can buy into
because they
believe in it
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STEP 1 – CLEAR AND SIMPLE STRATEGY
•
Max Core domestic business
• Focus on Premium
• Focus on House Delivery
•
Develop Export Market
•
Ruthless focus on Costs
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STEP 2 – RIGHT BUSINESS MODEL
Only room for one
margin
Ruthless focus on
costs
• Exit our 39 year franchise in Yoplait
•
Maintain Shape of
Model
•
We’re majority a branded house – strong
Marketing & Sales support, including
innovation
2015 overheads = 2005
Maintain Volume
• Acquisition(s) of bolt-on opps.
• Move more Fd. Service and Exports
• Co-packing and PL
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STEP 3 – FUNDED AND SUPPORTED
• Strong shareholder and stakeholder support.
• New lines and plant
• Innovative thinking to stretch our business model
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SUPPORTED – IN FRONT OF CONSUMER
Contract for RTE
Weatherline
Most advertised
brand in Ireland
‘Always on’
approach
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STEP 4 – SIMPLE TRUTH:
“NOT ALL MILK
IS THE SAME”
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STEP 4 – SIMPLE TRUTH
‘NOT ALL MILK IS THE SAME’
HIGHEST
QUALITY MILK
FULLY
TRACEABLE
INDEPENDENTLY
CERTIFIED
CONTINUOUS
INNOVATION
HUGE FOCUS
ON SERVICE
TESTED 35
TIMES
GLOBAL
STANDARDS
DRIVE
PREMIUM HAS
ALTERNATIVE
A REAL VALUE
CHANNELS
©
STEP 5 – BUY-IN!
No future in PL or As-Is.
Give Consumers REAL VALUE
Clarity of all roles within total
‘portfolio’
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RESULTS
Clarity
Motivation
Focus
All improved
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BRAND PIECE NOT IN ISOLATION TO THE
BUSINESS MODEL PIECE
Franchise
3
Acquisitions
Capacity
Brand Work
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BRAND WORK
Extensive market
research to help
direct thoughts
Reconfigure full
portfolio – SBM/VAM
Assess plant
capabilities
Build new narrative
around a VAM
Vision
©
Slide on Glanbia
AVONMORE SUPERMILK CASE STUDY
OUR INSIGHT
OUR CONSUMERS WILL
NOT CARE ENOUGH
ABOUT VITAMIN D
UNLESS THEY FEEL THAT
IT IS A MASS ISSUE THAT
EFFECTS EVERYONE.
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THE AMBITION
To unlock the huge growth potential in
the SuperMilk Brand…….
by causing mass reappraisal
….and getting people of all ages and
stages to switch from their usual daily
milk to SuperMilk
©
Slide on Glanbia
Brand Deconstruction
1. “Super” – owned but not protected.
2. Low Fat – not suitable for ‘kids’.
3. 1 Litre – not suitable for families; 2 Litre –
wrong price point.
4. Availability – needs ubiquity.
5. “Super” – exactly at what?
6. Issues in consuming
Slide on Glanbia
Research also showed
1. Real concern about lack of Vitamin D.
2. Some perceptions as to versatility.
3. Some issue re ubiquity and referrals.
Slide on Glanbia
Brand Reconstruction
1. Cease and desist
2. Introduce “regular” to compliment Low Fat.
3. Introduce 2L carton; reduce to 1.75L to meet target RSP.
4. Drive nationwide distribution including in ‘new’ customers;
include in ‘Weatherline’ for AYR visibility.
5. Build holistic, ecosystem around Vitamin D – USP.
6. Remove any perceived issues re Cooking; remove internal
cap seal to ease opening.
Slide on Glanbia
Other Elements
1. Constant brand id refresh
2. Soft associations with HCPs
Slide on Glanbia
COMMS STRATEGY
Use of a specially designed
‘ecosystem’ utilising a holistic
outward platform.
©
Slide on Glanbia
PROGRAMME IS DELIVERING ACROSS ALL
TARGET METRICS
• Brand Volume growth
• Brand consideration scores and conversion ratios
up across all key metrics
• Brand commitment scores growing year on year :
• NPS grew by 15 points to 40 - highest in category, and in top 25 of
the total study universe
• Brand Equity scores back to highest recorded
levels:
• Brand with a real advantage: 15% to 20%
NEW FROM “OLD”
More
Significant #
using
Houses
Business x 2
despite ‘austerity’
High % of volume
is premium/VAM
branded
Remains fastest
growing sector of
overall business
IN SUMMARY
Ensure you have
a model to fit
your simple
truth/USP
Make sure you
can fund it – now
and going
forward
‘Value’ is NOT all
about price
Must stock
“commodity”
products can be
made virtuous
FMCG is NOT all
about retail
And…… not all
milk is the same!
©
THANK YOU