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How to innovate faster and grow profitable brands pi seminar 2012
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Transcript of How to innovate faster and grow profitable brands pi seminar 2012
Innovation – From seed to harvest
How toinnovate faster and grow profitable brandsFebruary 29th 2012
Before we get to the interesting stuff,a bit of legal info about ownership:
Copyright Cogn8honey 2012.
Which means that unless permission is agreedin writing from Honey, no part of this presentationmaybe reproduced, distributed, shared or postedon 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
Doug James - Managing Director cogn8honey & honey
+44 207 354 4150
Phil Lawder - Innovation and Strategy Directorcogn8honey & honey
+44 207 354 4150
Please give us your business cards and we will send you the presentation
Trademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
Agenda
Scope of the presentation
1.Setting the scene
2.Distribution goals
3.Innovation brief
4.Growth plan– Process / targets– Routes to explore
5.Action plan
Trademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
The perfect brand - Growth strategy
To accelerate brands profitably and quickly, you need to:
1.Understand the market
2.Understand your brand
3.Find the point where market and brand can support each other
4.Set clear goals and targets
5.Understand your “go to market” trade marketing strategy
6.Be strategic with export opportunities
Develop a plan, invest in it and execute consistently
Trademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
The perfect brand
For a brand to work, it must be confident.
To get confidence, you need to:-Define (know exactly what makes your brand stand out and connect)-Integrate (Ensure that everything – production, NPD (New Product Development), technology development, sales, marketing, distribution – is aligned to serve the brand ambition)-Clarify (let customers and consumers know, in the simplest possible 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
Setting the scene
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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 unfocused
Trademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
Setting the scene - Objectives
Need 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 NPD
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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, Morrison's 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 innovator
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Setting the scene - ‘Success’case studies all share high NPD activity
Innocent
Green & Blacks
Dorset
Yeo Valley
Peer group examples
Core Adjacent Extend Focus Stretch
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Strategic objectives
Create 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
Strategic framework
Brand and Product Development Plan needs to be holistic
e.g. new packaging e.g. new categorye.g. new flavour
Individual targets
Allocation of resources
Core Renovate New Adjacency
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Strategic framework - Innovation brief
NPD needs to meet the clear objectives
1. To be consistent with and reinforcing of the Tyrrells brand values
2. To have a genuine point of difference, no point in “me toos”
3. To ‘own’ Tyrrells space e.g. if moving into new categories
to be highest premium and most artisanal / natural
4. To re-inforce direct/independent channel strengths
5. Sustainable margins - Commercials must stack up (trade margin, our margin,
size of opportunity)
6. Make Tyrrells more (or at least not less) attractive on exit to strategic buyers
7. A low risk “flanker strategy” preferred to high risk, education and development
of new category
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Strategic framework – Brand values
Style Personality
Tyrrell’s Essence - Enjoying food
Proud
Conversational
Informal
Friendly
Earthy
Modern
Green
Quirky
British
Witty
Imaginative
Cheeky
Passionate
Challenger
Attributes
Carefully grown
Know the farmer
Carefully made
Environmentally aware
Ethical
Benefits
Confidence
Superior taste
Ingredient flavour
Connected
Enjoyment
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Growth plan - Routes to explore
Potential platforms for innovation
1. Packaging format
2. Flavour delivery e.g. sachets, real cheese, liquid balsamic
3. Consumption occasion e.g. chips and dips
4. Consumer age/gender e.g. kids,
5. Brand Shrink e.g. uncooked potatoes
6. Brand Stretch Sweet Snacking e.g. fruit snacks, strawberry chips
7. Brand Stretch Savoury Snacking e.g. Tyrrell’s savoury popcorn
8. Brand Stretch Potatoes Frozen e.g. Tyrrell’s potato wedges
9. Brand Stretch Chilled e.g. Tyrrell’s potato salad
10. Brand Stretch Geography / Brand Values e.g. Tyrrell’s Hereford apple juice, apple sauce
11. Etc…
Within Core
Outside Core
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Growth plan - Process / targets
Brief needs to define• Targets
– Sales (ROS and Distribution)– Margin (Trade and Tyrrell's)– Profit Contribution
• Team & Resource allocated• Budget • Reporting line and rapid decision process• Integrated Project Management process to follow
and clear milestones
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Create more stand out for existing brand
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Create more stand out for existing brand
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Vegetable chips has suffered from incrementalism
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More personality and stand out on shelf
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Strategic framework
NPD Plan needs to be holistic
e.g. new packaging e.g. new categorye.g. new flavour
Individual targets
Allocation of resources
Core Renovate New Adjacency
Trademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
New format addresses a male orientated segment
Trademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
Strategic framework
Brand and Product Development Plan needs to be holistic
e.g. new packaging e.g. new categorye.g. new flavour
Individual targets
Allocation of resources
Core Renovate New Adjacency
Trademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
Trademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
Introducing a category in the UK
Action plan - Develop a trade marketing strategy
Develop a compelling narrative
1. Understand channel needs
• Multiples
• Independents
• Travel/Out of Home
2. Know retailer opportunities
• Category strategy
• Category gaps
• Listing windows
• Pay to Play cost
• Promotional Strategy
3. Execute strategy consistently
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• 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 thinking
The golden rules
Trademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
Any questions?
Trademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document
Cogn8honey logo
Doug James - Managing Director cogn8honey & honey
+44 207 354 4150
Phil Lawder - Innovation and Strategy Director
cogn8honey & honey
+44 207 354 4150
Please give us your business cards and we will send you the presentation
Trademark, copyright, and image rights of Cogn8honey 2012 & or each individual brand owner, refer to page 2 of this document