Introduction
Each day, the average consumer makes many decisions and choices about products and
brands. When doing so, he or she identifies products in a variety of different ways. A brand
comprises a range of features which help to identify the products of a particular
organisation. These may include its name, a symbol, term, or other creative element.
Branding is important for consumers because it is a form of product differentiation which
communicates quickly and effectively a lot of information about a product range - it helps
consumers to make key decisions in the market-place.
The Dolmio brand was launched in 1986 when the pasta sauce market was relatively new
and worth only £8 million per year. Since that time, Dolmio has been responsible for
massive growth in this sector. Today, the market for sauces that are ready for use straight
from the jar (known as ‘wet cooking sauces’) is worth £340 million. This is a growth rate of 1,667% in a decade.
No matter how well brands perform, they have to be managed. Before 1994, the Dolmio brand had been
responsible for driving the growth in the pasta sauce market, achieving market share of over 40%. However,
in 1996, Dolmio suffered a fall in market share at a time when the pasta sauce market was experiencing
explosive growth. In particular, market share was lost to the supermarkets’ own brand products and market
research revealed that Dolmio was no longer perceived to be significantly different to the competition. The
supermarkets’ own brand products were often sold at a cheaper price and were packaged in such a way as to
look very similar to the other brands. Market research also showed that pasta was seen as a staple food but
that the sauces on offer were not very inspirational.
Understanding consumer requirements is essential for any brand
development. It is important to understand how consumers
differentiate between brands, as well as the competitive features
of the market. The most important aspect of this is understanding
how consumers perceive the market-place, the products within it,
and the roles and interaction of the brands that operate within it.
This provides a solid foundation for any development.
This case study examines the steps taken to regain the initiative in
the competitive market in which the Dolmio brand now operates. This involved relaunching the brand with
new product variants.
A product portfolio or product range is like a family; each of the children has its own strengths and weaknesses
and each needs careful attention and nurturing. It is not a question of simply producing many different
products under the same brand name. Markets, consumer tastes and attitudes are constantly changing. This
is where the management of the product portfolio becomes important. Managing a brand with a number of
extensions involves deciding when to introduce new products, when to relaunch certain products and
knowing when they have come to the end of their product lifecycle and need to be taken out of the range.
A new marketing strategy
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Relaunching the brand meant developing a completely new way of looking at the
pasta sauce market. Dolmio decided to change the objectives for the brand and
develop new strategies to achieve them. In 1997, after extensive market research to
the problem, Dolmio set its key objectives of growth in the sector through innovation
and, in particular, establishing market leadership in the newly emerging nonbolognese sauce markets.
Whenever an organisation sets new objectives, it is necessary to determine whether
the objectives have been successful or not. Dolmio decided the success of the new
strategy could be measured by:
growth in the market
returning Dolmio to profitable growth
establishing leadership in all categories of the market.
To achieve these new objectives, a new marketing strategy had to be formulated. This was to be achieved
through creating a brand image which conjured up ‘The Dolmio Passion for Italian Food’. An innovative new
product range of pasta sauce would need to be developed which would provide consumers with new ways of
using pasta in their meals. This would represent a whole new way of looking at the pasta sauce market.
Market research
Marketing of Dolmio was to be targeted at anyone who prepares the main family meal of the day. People are
always short of time because of today’s hectic lifestyle, but they are constantly looking for new ideas to
provide a variety of meals. They do not have as much time as they would like to spend cooking, but still wish
to serve up something nutritional and tasty.
Qualitative information involves understanding attitudes, opinions, reactions and suggestions. The ‘What do
you think about...?’approach to market research gives consumers the opportunity to offer a variety of
opinions, reasons, motivations and influencing factors. Research undertaken for the Dolmio range involved
many focus groups of 7-9 consumers in a discussion facilitated by an independent researcher. Such discussions
provided useful feedback about product usage. It provided a better understanding of why, how, with who and
when products were used and what the motivations behind consumer behaviour were - the sort of
information which quantitative research cannot provide. Quantitative research involves facts and figures, such
as the number of jars of sauce sold in a given period. It is based on hard facts.
Qualitative research indicated the extent to which consumer needs were satisfied by existing products.
However, it was also used to identify where needs were not being satisfied. Research showed that although
80% of Dolmio products were sold for bolognese, only 50% of meals were prepared with mince. This clearly
indicated the opportunity to develop a range of products under the Dolmio brand through a brand extension
strategy - products which did not need to be used with mince, but could be used on their own, or with fish or
meat.
The product portfolio
The Dolmio relaunch was based on the development of a broader product portfolio
through extending the brand to take advantage of its popularity and strength in the
market-place. It retained and improved the Dolmio Sauce for Bolognese with
additional varieties including extra ingredients, such as extra mushrooms or extra
garlic and onions, to offer the customer a greater choice.
In July 1996, Dolmio Stir-in sauces were launched to increase the use of pasta in the
preparation of quick and easy meals. The sauce is stirred into pasta that has already
been cooked. These ‘coating’ sauces have become one of the fastest growing parts
of the market. (The Stir-in/Pesto sector grew by 65% in 1997 to be worth £28m.) As
Dolmio introduced new varieties, this sector grew accordingly.
The third member of the product portfolio family is Dolmio Pasta Al Forno. This range provides yet another
way of preparing a pasta meal by adding the sauce to pre-cooked pasta and then baking it in the oven.
Although essentially a very simple and quick cooking process, ideal for the busy homemaker with children, it
was recognised that producing a bubbling dish straight from the oven was rewarding to consumers and could
be used to reinforce the idea of family meal times.
Finally, Dolmio developed Dolmio Pasta Sauces for more inspired meals, aimed at the slightly more confident
cook. These were designed to be used with or without meat, straight from the jar or as a base which
consumers can customise by adding their own chicken, fish or vegetables. Dolmio’s aim was to offer a full
range of products that could satisfy more meal occasions, from traditional to inspirational, from a family meal
to a special occasion for adults. To enable the launch of so many new lines, eight old lines needed to be
discontinued.
Revising the marketing mix
Packaging
The packaging of any fast moving consumer good (FMCG) brand is crucially important. All
elements of the packaging needed to be redesigned for the launch. A distinctive new
multifaceted jar was used which looked better on the supermarket shelf and felt better in
the hand. The packaging was slightly different for each member of the product range emphasising the characteristics of the particular product and ensuring it was aimed at its
relevant target audience. For Dolmio Bolognese, for example, the emphasis was on the
ingredients, providing reassurance of quality. Dolmio Pasta Al Forno focused on the end
product, showing an image of the oven dish and the traditional family meal time. Dolmio
Pasta Sauce portrays a couple enjoying a special meal together and Dolmio Stir-in depicts a contemporary
Italian street scene.
Promotion
An extensive promotional campaign was undertaken to support the relaunch using both above and below the
line techniques. Above the line advertising, such as TV and radio advertisements, is when media time or space
is purchased. Below the line advertising includes promotions or mail-shots. The strategy was to focus on
developing the emotional relationship with consumers through ‘The Dolmio Passion for Italian Food’.
The campaign was to be through eighteen consumer press titles, both newspapers and magazines, covering
a readership of 11 million people. This is an effective way of targeting a particular segment of the market. All
eighteen ran special features which were a cross between advertising and education, providing recipes and
cooking hints. These are sometimes called through the line activities. Sampling was another key element of
the promotion strategy, aimed at getting as many consumers as possible to try the product in many specially
selected venues in multiple grocery outlets and shopping centres. Over 920,000 samples were distributed
with money-off coupons. Dolmio also launched its own Dolmio Roadshow, which travelled all over the
country.
The television advertising campaign which accompanied the relaunch tried to create a strong sense of
authenticity using visual style, characters and settings. The brand identity or personality is important in
stimulating interest and curiosity. It makes the product different and elevates the brand’s status within the
sector.
Distribution
The Dolmio sauce range is stocked in all grocery retail outlets. During 1997, the number of Dolmio product
lines increased, although there was little change in the competition. A major constraint for a FMCG is that the
product’s exposure to the consumer is governed largely by the amount of space that the retailer makes
available. Whilst the manufacturer would obviously like the retailer to increase the amount of space on the
shelves for its products, it has no control over this.
Price
Dolmio prices have increased slightly during 1997 to reflect the quality of ingredients in recipes. The growth
in sales demonstrates that price, although important, is not the only influencing factor in the purchasing
decision. Quality is also a determining factor.
Results of the Dolmio relaunch
To assess the results of the new campaign and the success of the new
members of the product portfolio, based on extending the brand,
Dolmio collected a great deal of market research information which
was both quantitative and qualitative. Such feedback is invaluable to
any organisation aiming to satisfy its customers.
The value of sales in 1997 showed an explosive growth rate, far above
expectations, as did the volume of sales. However, a crucial
consideration here is the switching and incremental sales analysis.
Clearly, simply switching business from other Dolmio lines is no good.
To be successful, the growth has to be achieved by encouraging more consumers to buy sauces more
frequently.
Dolmio retained the market leadership in 1997 and grew a market share to 37% compared to supermarket
own brands with 28% and the leading branded competitor with 18%. A key feature has been the repeat
purchase figures. This is very dependent on the product performance, such as quality of ingredients and ease
of use. Persuading consumers to try a new product can be difficult enough, but if it is to be a long-term success,
they must develop a pattern of repeating purchases.
Conclusion
Branding provides consumers with an assurance that they are purchasing a product
they like and can rely on. When faced with competition from own label brands,
strong branding can foster loyalty and encourage repeat purchases.
The new Dolmio product portfolio provided consumers with many new ways to
enjoy pasta. Success or failure can only really be judged with reference to the
original objectives. Intensive consumer research by Dolmio provided the basis for
the brand relaunch to represent a new way of looking at the pasta sauce market. Extending the brand involved
targets for the sales growth of Dolmio and growth in market share to extend market leadership.
Dolmio has indeed returned to growth with considerable increases in value and volume figures, providing
fresh impetus to the sector and growth in all markets. However, the process does not stop there. Innovation
and new product development are a continuous process. In 1998, Dolmio continued with innovation and
launched a new range of ‘Delizioso’ cooking sauces. These unique products satisfy consumer need, extend
the Dolmio brand and consolidate market position.