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For: WCRS - Warburtons account. Brand Bible
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- 2. CONTEN TS 1. Summary 1. IPAQuestions 2. Competitor Summary 3. Recent & Relevant Industry News 4. Great work & Tech News
- 3. SUMMARY Warburtons is theleading player in baked goods in the UK and accounted for close to 11% value share in 2015. This brand is thus a strong leader in packaged bread where it accounted for 23% value share in 2015, while also ranking third in packaged pastries with 14% share.
- 4. WHAT DO WESELL? The product range: Bread | Bagels | Wraps | Thins pittas |Rolls | Breakfast | Teacakes Fruit loaves
- 5. WHAT ARE THE CURRENTMARKET TRENDS? Looking at the current trends in the baked goods market, using market research sites such as Mintel and Passport Euromonitor, the following trends highlights the following: • What products are doing well in the baked goods market? • What products are not doing well in the baked goods market? • What is dominating the market?
- 6. WHAT ARE THE CURRENTMARKET TRENDS? 1 • Bread dominates overall value sales in baked goods, accounting for a share of 52% in 2015. However, this product area was hit hard by consumer trends at the end of the review period. Vegetables were notably used to replace carbohydrates by some consumers, while fruit and vegetable smoothies were a key breakfast trend.
- 7. WHAT ARE THE CURRENTMARKET TRENDS? 2 • bread saw 4% retail volume decline in 2015. Some areas of bread however remain successful. While packaged bread saw a sharp 6% retail volume decline in 2015, unpackaged bread achieved a slight growth of 1%. This was thanks to unpackaged bread offering a fresher and more natural image, which increasingly appeals to consumers. Wholemeal bread also saw a strong performance within packaged bread, gaining almost three percentage points in value share in 2015
- 8. WHAT ARE THE CURRENTMARKET TRENDS? 3 • Bread substitutes saw a strong performance in 2015 over the previous year, growing volume and current value sales by 3% and 5% respectively. Growth is being driven by the health and wellness trend, with these products often viewed as healthier in comparison to bread. Growth is notably being supported by strong new product development from Jordans & Ryvita's Ryvita brand.
- 9. WHAT ARE THE CURRENTMARKET TRENDS? 4 • baked goods saw 1% current value decline in 2015 over the previous year. The overall review period saw less than 1% decline. A worsening performance at the end of the review period was partly due to health and wellness trends and partly due to a shift towards consumer foodservice alternatives as economic confidence rose.
- 10. WHAT ARE THE CURRENTMARKET TRENDS? 5 • baked goods saw a good 2% current value growth in unit price in 2015 over the previous year, benefiting from premiumisation in many areas and notably in unpackaged bread. This area saw 3% growth as consumers traded up to healthier and speciality options. However, leading product area packaged bread was hit hard by price competition at the end of the review period, seeing 3% current value unit price decline in 2014 followed by a further half a percentage
- 11. WHAT ARE THE CURRENTMARKET TRENDS? 6 • Packaged products dominate sales of baked goods, accounting for 76% value share in bread, 77% share in pastries and 59% share in cakes in 2015. However, unpackaged products are gaining share, particularly in bread but also in cakes. Packaged cakes saw 1% current value sales decline in the year, while unpackaged cakes saw 3% growth. The exception to this trend was pastries, where packaged products saw a marginally stronger current value growth in
- 12. WHAT IS OURBRAND SHARE? UK prepacked bread retail market • Warburtons – 34% Leading brands in the UK sweet baked goods retail market • Warburtons -14% Leading brands in the UK speciality bread and rolls retail market • Warburtons -17%
- 13. WHAT IS OURBRAND SHARE? The following tables show leading brands in the UK prepacked bread retail market, by value and volume, 2013/14 and 2014/15 (Mintel 2015)
- 14. WHAT IS OURBRAND SHARE? Table 1 - Leading brands in the UK prepacked bread retail market by value 2013/14 and 2014/15
- 15. WHAT IS OURBRAND SHARE? Table 2 - Leading brands in the UK prepacked bread retail market by volume 2013/14 and 2014/15
- 16. WHAT IS OURBRAND SHARE? Summary of table 1 AND 2 • Warburtons continues to dominate the prepacked bread retail market IN BOTH VALUE AND VOLUME. THE BUSINESS has ALSO seen a rise in volume sales BUT Due to declining market value, Warburtons saw a fall in value sales.
- 17. WHAT IS OURBRAND SHARE? Table 3 - Leading brands in the UK sweet baked goods retail market, by value, 2013/14 and 2014/15
- 18. WHAT IS OURBRAND SHARE? SUMMARY OF TABLE 3 • While still dominating the sweet baked goods market, with a 14% market share, Warburtons suffered a decline in sales, the only brand to do so. Its advertising support of its new pancake range in 2014 is likely to have driven sales during that year, although the lack of continued support in 2015 appears to have been detrimental.
- 19. WHAT KEY THINGS AFFECTOUR SUCCESS? Strengths, weaknesses, opportunities and threats. A SWOT analysis will determine, what is currently working well, what is not working well and any external factors that is beyond the control of Warburtons.
- 20. WHAT KEY THINGS AFFECTOUR SUCCESS? Strengths • The UK market for bread and bakery products is extremely varied and incorporates a range of price points, thereby potentially appealing to an extremely large proportion of the UK consumer base. • Consumption of bread at mealtimes or as a snack is well- established, with many Britons perceiving it to be an integral part of a healthy everyday diet. • There is widespread brand awareness in this market. • UK consumers like to treat themselves, fuelling sales of more indulgent bakery products, such as teacakes and crumpets.
- 21. WHAT KEY THINGS AFFECTOUR SUCCESS? WEAKNESSESS • Bread consumption is in long-term decline in the UK, particularly with regard to traditional sliced loaves. • White bread is widely perceived to be lacking in nutritional value, limiting sales in a major market sector. • Diets which recommend avoiding carbohydrates are fashionable in the UK, reducing volume sales. • Bread is widely perceived to have a high salt content. • Products in the market have a short shelf life, with bread being one of the most wasted foods in the UK
- 22. WHAT KEY THINGS AFFECTOUR SUCCESS? OPPORTUNITIES • Gluten-free products are continuing to rise in popularity, as the UK consumer base becomes increasingly health conscious and ingredients-focused. • Packed lunches, for both children and adults, are an increasingly popular lunchtime solution, improving the demand for rolls and sandwich alternatives, such as wraps, pitta bread and bagels. • Consumption of speciality breads with an increasingly wide range of culturally-influenced meals is becoming common in the UK. • Improving financial circumstances are gradually improving the
- 23. WHAT KEY THINGS AFFECTOUR SUCCESS? THREATS • Products in this market are dependent on grain, the prices of which can be volatile, depending on global demand and the success of harvests. • NPDs in other markets are restricting sales of bread. A prime example of this is the increasing popularity of breakfast biscuits, which offer consumers a more convenient breakfast- solution than bread. • As the economic recovery develops, consumers will spend more on eating out, restricting the demand for speciality breads, such as naan, which allow consumers to ‘dine out’ at home.
- 24. WHAT IS OUR RELATIVEPRICING Using MySuperMarket.co.uk, the price range for Warburtons in 2 key categories (White Bread and Wholemeal/brown brad) were pitted against competing brands and store brands.brand White bread Price range Wholemeal/ brown bread Price range warburtons 79p-£1.25 79p-£1 Hovis 50-78p 50p-£1.25 kingsmill 70p 70p-£1 Store brand* 55p-£1 49p-£1.34 Store brand value* 30-55p 30p – 55p
- 25. WHAT IS OUR RELATIVEPRICING SUMMARY • The figures on the table suggests Warburtons is a premium brand as their prices remains consistently higher than competitors. This is a result of having a strong brand name and rich brand history which adds value to their products.
- 26. WHAT OTHER AGENCIES DOWE HAVE RELATIONSHIPS WITH?
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- 28. HOW DO WEDEFINE SUCCESS? Warburtons measures success in volume, which is a traditional way to measure success. Looking back at Table 2, Warburtons saw a 3.8% change between 2013/2014 – 2014/2015.
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- 30. HOVIS Hovis recently launched and advertisement aspart of their £5million integrated marketing campaign implemented by Mother – who had won the Hovis account from JWT. The advertisement shows three kids attempting to break free of the indoors as their house expands alarmingly around them.
- 31. HOVIS The message behind the advertisement isbased around the quality and brand values of Hovis, tapping into the emotional needs. Using data from TGI (Target Group Index) the Hovis consumer are more likely to have children in the household than no children.
- 32. HOVIS The marketing manager at Hovis commentedin a statement: "We were keen to harness this brand love and pay homage to that rich Hovis heritage but in and new and provider of everyday goodness, we think that kids will love this advert as much as their parents love the original boy on a bike, demonstrating how the brand remains
- 33. KINGSMILL Kingsmill last series of advertisements wasmainly focused around a family of 3 in a kitchen, since then they have not released any new advertisements. Unlike Hovis primarily focuses on children, Kingsmill’s advertisement focuses on lone parent families. Their last series of advertisement only ever showed a dad
- 34. KINGSMILL This could be basedon TGI data as Kingsmill consumers are more likely to be either divorced, separated or widowed. However Tesco delisted the “volume-driven strategy” Overall each brand targets their own specific segment, using TGI will enable to pinpoint which consumers to target in the
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- 36. FACE ARE NOW ON SALE IN A SUPE RMAR KET NEAR YOU This thrillingcrumpet innovation is the work of Warburtons, who claim that their giant crumpets are just under double the size of a regular one. Metro
- 37. RTONS GIANT CRUMP ETS ARE TWICE THE SIZE OF THE ORIGIN AL YOU haveheard of the thinking person's crumpet — now meet the greedy person's crumpet. Bolton bread kings Warburtons have come up with a giant alternative to the breakfast favourite which measures up at nearly twice the size of regular crumpets. Bolton news
- 38. RTONS GIANT CRUMP ETS ARE TWICE THE SIZE OF THE ORIGIN AL • Andthis is news ???? Get a grip BN absolutely pathetic!! • How strange Tory things usually get smaller :) • it's not news, it's advertising. But, if they didn't advertise, there wouldn't be a free Internet paper to make comments on. Well, comments on articles they will allow us to comment on Bolton news
- 39. FOCU SES ON MEAL TIMES WITH GIANT CRUM PETS LAUN CH • Warburtons hasannounced the addition of another bakery innovation, Giant Crumpets – almost twice the size of its standard crumpet. • Featuring the same texture, taste and fluffiness as Warburtons standard crumpets, the tasty new products are designed to fit perfectly in the toaster and are the perfect convenient snack and meal time solution for busy families and people on-the-go. Talking retail
- 40. WARB URTO NS TV AD - THE DELIV ERER S •Bread delivery on an epic scale!!! • This is brilliant. Stallone in Bolton, my home town!! • Wow!! Pretty good advert and puts Bolton on the map Lmao!! Like the part Stallone gets in the passenger side of the truck and realised his mistake. Well done. youtube
- 41. WARBURTONS IN THE NEWS SUMMARY Thenews articles are mainly focused on the new launch of Warburtons giant crumpets, mainly focusing on the product rather than the brand. On the other hand the audience response are very mixed with some commenting on the product and other on Warburtons business activities (funding the conservatives)
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- 43. THE FUTU RE IS VERTI CAL WPP, Snapchatand Daily Mail are set to launch Truffle Pig – a content marketing company. “In a digital world overflowing with content, consumers crave quality. A next-generation company, Truffle Pig combines the best in media, content and user experience to satisfy people’s appetite for great storytelling – and inspire brand engagement, loyalty and sales.”
- 44. 3V ADVERT ISING When you encountera video ad in Snapchat or any other mobile app, it’s “totally stupid” to have to rotate your device in order to see it in full screen, said Steinberg. A lot of viewers will just navigate away when they encounter a horizontal video ad on mobile. “But if a video is vertical and a little bit compelling, you’re going to keep watching. - Evan
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- 46. CONTE NT! Content marketing isa great way to engage with customers and to provide them with expert knowledge to help them during their buying process of any product or service. In 2015, content marketing is expected to be the most commercially important digital marketing trend according to Smart Insights graph
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- 48. It's the world'sfastest-growing digital language and brands are beginning to build it into their marketing campaigns in their attempts to target millennials, says Mark Middlemas, director of communications at RadiumOne and Aidan Lonergan, a 'millennial' marketing intern.
- 49. Ahead of thearrival of its Cruze model, Chevrolet put out a press release made up entirely of emojis because "emoji is international in its adoption and we wanted to have fun and be irreverent with our audience," said the car marque's head of social media.
- 50. The WWF employeda #EndangeredEmoji Twitter campaign to help save animals from extinction. The charity created 17 emojis for endangered animals and are encouraging people to donate 10p every time they retweet one.