How to innovate faster and grow profitable brands pi seminar 2012

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How to innovate faster and grow profitable brands pi seminar 2012

  1. 1. Innovation – From seed to harvest
  2. 2. How toinnovate fasterand grow profitable brandsFebruary 29th 2012
  3. 3. Before we get to the interesting stuff, a bit of legal info about ownership: Copyright Cogn8honey 2012. Which means that unless permission is agreed in writing from Honey, no part of this presentation maybe reproduced, distributed, shared or posted on any media, forum or format. During the course of the presentation, visual material from a variety of sources e.g. images and illustrations from Google images have been used. All copyright, trademarks and image rights for these images reside with the originator or brand owner. Therefore the images cannot be reproduced, distributed, shared or posted on any media, forum or format with out their written permission.Trademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
  4. 4. Doug James - Managing Directorcogn8honey & honeydoug@cogn8honey.com+44 207 354 4150Phil Lawder - Innovation and Strategy Directorcogn8honey & honeyphil@cogn8honey.com+44 207 354 4150Please give us your business cardsand we will send you the presentationTrademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
  5. 5. AgendaScope of the presentation2.Setting the scene3.Distribution goals4.Innovation brief5.Growth plan – Process / targets – Routes to explore6.Action planTrademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
  6. 6. The perfect brand - Growth strategyTo accelerate brands profitably and quickly, you need to:3.Understand the market4.Understand your brand5.Find the point where market and brand can support each other6.Set clear goals and targets7.Understand your “go to market” trade marketing strategy8.Be strategic with export opportunities Develop a plan, invest in it and execute consistentlyTrademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
  7. 7. The perfect brandFor a brand to work, it must be confident.To get confidence, you need to:-Define (know exactly what makes your brand standout and connect)-Integrate (Ensure that everything – production, NPD (New ProductDevelopment), technology development, sales, marketing, distribution– is aligned to serve the brand ambition)-Clarify (let customers and consumers know, in the simplestpossible terms, what that brand can do for them)Trademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
  8. 8. Setting the sceneTrademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
  9. 9. Setting the scene - Background• Tyrrell’s has a reputation for being a highly innovative brand• Tyrrell’s brand has a clear point of difference and therefore possesses the licence with consumer to stretch its footprint• Current NPD pipeline was one of incrementalism rather than bold step-change• Opportunities to work with the retailers were not maximised• The export business unfocusedTrademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
  10. 10. Setting the scene - ObjectivesNeed for NPD and distribution to drive growth• Tyrrells’ is a classic discovery brand, creating and sustaining newness is an essential feature of the brand• NPD and solus deals will help Tyrrells’ engage with the trade• The exit valuations will increase if Tyrrells’ has a track record of substantial NPDTrademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
  11. 11. Setting the scene – A crowded and undifferentiated marketplace• Distribution - Waitrose and Independents• Retailer partnerships• Seen as a regional farm based crisp company…part of the pack• Lacked credibility against Kettle as a national brand• Difficult to gain traction with Sainsbury, Morrisons and Tesco - no understanding of category strategy• Independent channel constantly under threat from me-too entrants• A confused and opportunity led export strategy - Tyrrell’s to reposition as market innovatorTrademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
  12. 12. Setting the scene - ‘Success’case studies all share high NPD activityPeer group examples Green & Blacks Innocent Dorset Yeo Valley Core Adjacent Extend Focus StretchTrademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
  13. 13. Strategic objectivesCreate a NPD programme which Delivers sustainable profitable growth • Profitable value chain • Drives distribution with trade customers Strengthens Tyrrells brand • Helps retain our “challenger brand status” • Provides newness for our loyal consumer brand advocates BUT not do so at the expense of ‘current business strategy’ • Priority must be to build distribution and ROS of existing SKUs • We should continue to develop new flavours for independents (and national accounts)Trademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
  14. 14. Strategic framework Brand and Product Development Plan needs to be holistic Core Renovate New Adjacency e.g. new packaging e.g. new flavour e.g. new category Individual targets Allocation of resourcesTrademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
  15. 15. Strategic framework - Innovation briefNPD needs to meet the clear objectives2. To be consistent with and reinforcing of the Tyrrells brand values3. To have a genuine point of difference, no point in “me toos”4. To ‘own’ Tyrrells space e.g. if moving into new categories to be highest premium and most artisanal / natural5. To re-inforce direct/independent channel strengths6. Sustainable margins - Commercials must stack up (trade margin, our margin, size of opportunity)7. Make Tyrrells more (or at least not less) attractive on exit to strategic buyers8. A low risk “flanker strategy” preferred to high risk, education and development of new categoryTrademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
  16. 16. Strategic framework – Brand values Style Personality Proud Quirky Conversational British Attributes Benefits Informal Carefully Confidence Witty grown Know the farmer Superior taste Friendly Imaginative Carefully made Ingredient flavour Environmentally Connected Earthy aware Cheeky Ethical Enjoyment Modern Passionate Green Challenger Tyrrell’s Essence - Enjoying foodTrademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
  17. 17. Growth plan - Routes to explorePotential platforms for innovation2. Packaging format3. Flavour delivery e.g. sachets, real cheese, liquid balsamic4. Consumption occasion e.g. chips and dips Within Core5. Consumer age/gender e.g. kids,6. Brand Shrink e.g. uncooked potatoes7. Brand Stretch Sweet Snacking e.g. fruit snacks, strawberry chips8. Brand Stretch Savoury Snacking e.g. Tyrrell’s savoury popcorn9. Brand Stretch Potatoes Frozen e.g. Tyrrell’s potato wedges Outside Core10. Brand Stretch Chilled e.g. Tyrrell’s potato salad11. Brand Stretch Geography / Brand Values e.g. Tyrrell’s Hereford apple juice, apple sauce12. Etc…Trademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
  18. 18. Growth plan - Process / targetsBrief needs to define• Targets – Sales (ROS and Distribution) – Margin (Trade and Tyrrells) – Profit Contribution• Team & Resource allocated• Budget• Reporting line and rapid decision process• Integrated Project Management process to follow and clear milestonesTrademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
  19. 19. Create more stand out for existing brandTrademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
  20. 20. Create more stand out for existing brandTrademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
  21. 21. Vegetable chips has suffered from incrementalismTrademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
  22. 22. More personality and stand out on shelfTrademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
  23. 23. Strategic framework NPD Plan needs to be holistic Core Renovate New Adjacency e.g. new packaging e.g. new flavour e.g. new category Individual targets Allocation of resourcesTrademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
  24. 24. New format addresses a male orientated segmentTrademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
  25. 25. Strategic framework Brand and Product Development Plan needs to be holistic Core Renovate New Adjacency e.g. new packaging e.g. new flavour e.g. new category Individual targets Allocation of resourcesTrademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
  26. 26. Introducing a category in the UKTrademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
  27. 27. Action plan - Develop a trade marketing strategyDevelop a compelling narrative1. Understand channel needs • Multiples • Independents • Travel/Out of Home2. Know retailer opportunities • Category strategy • Category gaps • Listing windows • Pay to Play cost • Promotional Strategy3. Execute strategy consistentlyTrademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
  28. 28. The golden rules• Do your homework• Involve the retailers early• Integrate everything single-mindedly behind your brand• Push like hell• Know when you’re right, know when you’re wrong• Never stop thinkingTrademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
  29. 29. Any questions?Trademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
  30. 30. Cogn8honey logoDoug James - Managing Directorcogn8honey & honeydoug@cogn8honey.com+44 207 354 4150Phil Lawder - Innovation and Strategy Directorcogn8honey & honeyphil@cogn8honey.com+44 207 354 4150Please give us your business cardsand we will send you the presentationTrademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document

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