Branding Food From Ireland
Presentation to
Pathways for Growth Food & Drink Summit
May 27, 2011
Professor John Quelch
Dean, CEIBS
jquelch@ceibs.edu
©John A. Quelch, 2011
1
©John A. Quelch, 2011
Agenda
Why Do Brands Exist?
What Makes Brands Great?
Can Food Be Branded?
Can Places Be Branded?
Food From Ireland?
The Way Forward?
2
©John
A.A.Quelch,
©John
Quelch,2011
2011
Part I
Why Do Brands Exist?
What Makes Brands Great?
Can Food Be Branded?
Can Places Be Branded?
Food From Ireland?
The Way Forward?
3
©John
A.A.Quelch,
©John
Quelch,2011
2011
What Is A Brand?
A Brand Is Not…
• Just A Name
• Just A Visual Identity
• Just A Tag Line
A Brand Is…
• A Promise (Delivered)
• A Club
4
©John
A.A.Quelch,
©John
Quelch,2011
2011
A Brand Is A Promise
Consumer
Insights
Brand
Promise
Delivery,
Experience
5
©John
A.A.Quelch,
©John
Quelch,2011
2011
A Brand Is A Club
• Owned By Its Members
• Who Co-Create The Brand Meaning
6
©John
A.A.Quelch,
©John
Quelch,2011
2011
Building Brands: From Function To Emotion
Stage 3
Values
and
Emotional
Bonds
Stage 2
User and Usage
Imagery
Stage 1
Functional Product Quality
Roots and Heritage
7
©John
A.A.Quelch,
©John
Quelch,2011
2011
So Why Do Brands Exist?
•
•
•
•
•
Convenience
Assurance
Differentiation
Satisfaction
Affiliation
8
©John
A.A.Quelch,
©John
Quelch,2011
2011
Part II
Why Do Brands Exist?
What Makes Brands Great?
Can Food Be Branded?
Can Places Be Branded?
Food From Ireland?
The Way Forward?
9
©John
A.A.Quelch,
©John
Quelch,2011
2011
Most Valuable Global Brands
1.
2.
3.
4.
5.
6. McDonald’s
7. Intel
8. Nokia
9. Disney
10. HP
Coca-Cola
IBM
Microsoft
Google
GE
Source: Interbrand, 2010
10
©John
A.A.Quelch,
©John
Quelch,2011
2011
Great Global Brands
•Strength In Home Market
•Consistent Positioning
•Appeal to Universal Values
•Solve Important Problems
•Set High Standards
•Own A Product Category
•Corporate Name = The Brand Name
11
©John
A.A.Quelch,
©John
Quelch,2011
2011
Command Premium Prices: Why?
• Superior Quality And Innovativeness
• Connection To Global Village
• Corporate Social Responsibility
12
©John
A.A.Quelch,
©John
Quelch,2011
2011
Ingredient Brands
• No Sales To End Consumers
• Brand Building To Pull Demand
Through Channel
• Accelerate New Product Adoption
• And Capture More Channel Margin
13
©John
A.A.Quelch,
©John
Quelch,2011
2011
Not All Succeed
“We don’t make the
products you use. We
make the products you
use better.”
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©John
A.A.Quelch,
©John
Quelch,2011
2011
Ingredient Brands: Keys To Success
• Consumers’ Perceived Risk
• Importance Of The Ingredient
• Differentiation Of The Ingredient
Brand
15
©John
A.A.Quelch,
©John
Quelch,2011
2011
Part III
Why Do Brands Exist?
What Makes Brands Great?
Can Food Be Branded?
Can Places Be Branded?
Food From Ireland?
The Way Forward?
16
©John
A.A.Quelch,
©John
Quelch,2011
2011
Can Food Be Branded?
• Global Brand Evidence
• Higher Perceived Risk
• Favorable Consumer Trends
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©John
A.A.Quelch,
©John
Quelch,2011
2011
Global Brand Evidence
• 10 Food Brands In Top 100
• Including 3 Restaurant Chains
• 9 Beverage Brands In Top 100
Source: Interbrand 2010
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©John
A.A.Quelch,
©John
Quelch,2011
2011
Higher Perceived Risk
• What Am I Putting In My
Body?
• Where Is It Sourced In A
Globally Integrated Economy?
• What is The Risk / Return
Tradeoff?
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©John
A.A.Quelch,
©John
Quelch,2011
2011
Favorable Consumer Trends
• Healthy
• Safe
• Organic
• Local
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©John
A.A.Quelch,
©John
Quelch,2011
2011
Part IV
Why Do Brands Exist?
What Makes Brands Great?
Can Food Be Branded?
Can
Can Places
Places Be
Be Branded?
Branded?
Food From Ireland?
The Way Forward?
21
©John
A.A.Quelch,
©John
Quelch,2011
2011
All Great Global Brands Are Local
• Adapt Local Product Lines
• Work With Local Partners
• Develop Local Executives
• Source Local Raw Materials
• Acquire Local Brands
• Sign Local Endorsers
• Be Good Local Citizens
22
©John
A.A.Quelch,
©John
Quelch,2011
2011
Third Place
• First: Family and Friends
• Second: Workplace and Colleagues
• Third: Ireland, not Starbucks
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©John
A.A.Quelch,
©John
Quelch,2011
2011
Can Geographical Places Be Branded?
• Few Prominent Place Brands
• Restrictive In Global Economy
• Psychological Place
• Virtual Place
• Geographical Place
24
©John
A.A.Quelch,
©John
Quelch,2011
2011
Geographical Place
• Source Credibility
• Industry Cluster
• Appellation Controlée
• Generic Description
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©John
A.A.Quelch,
©John
Quelch,2011
2011
Country-Of-Origin
• Even In The Global Economy, Consumers
Still Associate Countries With Category
Expertise
• Fragrances, Men’s Suits, Quality Cars
• Pasta, Foie Gras, Sauerkraut, Caviar
• “Traditional” Products Limiting
• Broader Quality Halo May Be Preferabel
26
©John
A.A.Quelch,
©John
Quelch,2011
2011
What Determines National Brand Image?
Great Nations Write Their Autobiography in
Three Manuscripts – The Book of Their Deeds,
The Book of Their Words, and the Book of Their
Art.
John Ruskin
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©John
A.A.Quelch,
©John
Quelch,2011
2011
What Determines National Brand Image?
History/Language
Visual Icons:
Flag/Currency/Sights
People:
Famous/Ordinary
Past/Present
Clubs
Ceremony/Events
National
Brand Image
Companies/Products/
Brands
Traits/Values
Artistic/Sports
Achievements
Recent
Performance
Airlines/
Embassies
PLUS: MARKETING EFFORTS?
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©John
A.A.Quelch,
©John
Quelch,2011
2011
Why Nations Need Branding
•
•
•
•
•
Clutter (Decolonization and Breakups)
Competition (Mobile Capital and People)
Change (Stereotypes Lag Reality)
Conviction (Be Larger Than Life)
Containment (Against Negative Publicity)
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©John
A.A.Quelch,
©John
Quelch,2011
2011
The Branding Challenge
• Develop a Clear Position
• Be Known for Something
• Easier in a Tightly Managed Small Country
• Attract (and Retain) Satisfied Customers
30
©John
A.A.Quelch,
©John
Quelch,2011
2011
Persuasive Positioning Essential
• For (Target Market), (Country) Gives The Best
(Superiority Claim) Because (Reason Why)
• The License Plate Test
New Hampshire: Live Free or Die
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©John
A.A.Quelch,
©John
Quelch,2011
2011
The National Brand Ecosystem
Tourists
Retirees
Consumers
Of Exports
Foreign
Students
Investors
Migrant
workers
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©John
A.A.Quelch,
©John
Quelch,2011
2011
Part V
Why Do Brands Exist?
What Makes Brands Great?
Can Food Be Branded?
Can Places Be Branded?
Food
Food From
From Ireland?
Ireland?
The Way Forward?
33
©John
A.A.Quelch,
©John
Quelch,2011
2011
Food From Ireland
• Four Challenges
• How Ireland Can Compete
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©John
A.A.Quelch,
©John
Quelch,2011
2011
Food From Ireland: Four Challenges
•
•
•
•
Drinks, Not Food
Image of Irish Food
Existing Irish Food Brands
Competing Nations
35
©John
A.A.Quelch,
©John
Quelch,2011
2011
Drinks, Not Food
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©John
A.A.Quelch,
©John
Quelch,2011
2011
Image Of Irish Food
• “Then hurrah for an Irish Stew / That
will stick to your belly like glue”
•
Common Recipes: Irish Stew, Soda
Bread, Corned Beef with Cabbage,
Champ
•
Are Local Consumers Really
Demanding?
37
©John
A.A.Quelch,
©John
Quelch,2011
2011
Existing Irish Food Brands
• Umbrella Branding Confuses Or
Reinforces?
• Complicates Package Design
• Aids Smaller Artisan Brands
38
©John
A.A.Quelch,
©John
Quelch,2011
2011
Competing Nations
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©John
A.A.Quelch,
©John
Quelch,2011
2011
How Ireland Can Compete
• The Land, Not Ireland
• The Irish, Not Ireland
• Ambassadors, Not Labels
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©John
A.A.Quelch,
©John
Quelch,2011
2011
The Land, Not Ireland
“ The history of Ireland must be
based on a study of the
relationship between the land and
the people”
Bishop of Meath, 1938
41
©John
A.A.Quelch,
©John
Quelch,2011
2011
The Irish, Not Ireland
• Food From Ireland
• Food Handcrafted by Irish
Farmers
42
©John
A.A.Quelch,
©John
Quelch,2011
2011
Ambassadors, Not Labels
• People Talking To People
• Call to Action, Try Irish Beef,
Ask for Irish Cheese
• Ireland Ambassadors, Authentic,
Look The Part, Look Like Me
43
©John
A.A.Quelch,
©John
Quelch,2011
2011
Nothing Beats A Credible Endorsement
Every Man Has Two Countries:
His Own and France.
Thomas Jefferson
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©John
A.A.Quelch,
©John
Quelch,2011
2011
Part VI
Why Do Brands Exist?
What Makes Brands Great?
Can Food Be Branded?
Can Places Be Branded?
Food From Ireland?
The
The Way
Way Forward?
Forward?
45
©John
A.A.Quelch,
©John
Quelch,2011
2011
Food Harvest 2020
• Brand Building Converts High
Quality Into Premium Prices
• Requires Supply Chain
Alignment And 360º Marketing
• Emotion Plus Facts, Irish Plus
Ireland
46
©John
A.A.Quelch,
©John
Quelch,2011
2011
The Way Forward?
• Promise
The Power
of One
• Deliver
• Measure
• Persist
47
©John
A.A.Quelch,
©John
Quelch,2011
2011