Building value into brands Tim Mobsby - Bord Bia, Feb 2011 Building value into brands Building value into brands Building value into brands Challenges next 1 – 2 years Avoiding further pressure on margins by the trade Developing new products and brands that meet the needs of today’s consumer Continuing to reduce production and distribution costs Finding budget to invest in current brands Finding new export markets Source: “Feeling the Pinch 4, Above 50% Incidence Building value into brands Resisting margin transfer CAN YOU ANSWER “YES” TO THESE QUESTIONS Does your brand add incremental sales & more than your competitor(s)? Are you more profitable (cash) to your customer than your competitors? Do you “add value” over and above your direct sales revenue and margin & do you leverage it? Do you make your customer feel special? Do you really have a brand or simply a product? Building value into brands REDUCING RISK SUSTAINABILITY & ETHICS AGING POPULATIONS VALUE FOR MONEY NO SHORTAGE OF OPPORTUNITIES CHANGING RETAIL DYNAMICS CONSUMER IN CONTROL VALUE OF TIME INCREASING URBANISATION NEW / DIFFERENT CONSUMERS Building value into brands Building value into brands Deserving trust Don’t over-promise…………over-deliver Honesty, integrity and transparency Reflect your values in everything you do….are you proud of who you are? Be consistent A reputation is fragile thing Building value into brands Building value into brands THE IMPORTANCE OF INNOVATION Don’t be a stationary target to be aimed at Renovating existing brands powerful…...and necessary to rebuild trust Increasingly segmented market: Economic Socio-demographic Attitudinal Preparing for future trends Retailers eager for news Building value into brands Value for money won’t go away Price Segmentation Ranges Pack sizing Value Innovation More for less Cost cutting and control a way of life Building value into brands Investing in your brands Invest in ideas Creativity more important than size of budget Leverage your ideas through integration Power of owned and earned media Building value into brands SKINNY COW KOPPABERG BABY CARROTS www.creativeguerillamarketing.com Building value into brands