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BRAND BIBLE

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Welcome to WCRS

Brand Bible

ContentsSummary

IPA Questions

Competitor Summary

Recent & Relevant Industry News

Great work & Tech News

SummaryWarburtonsis the leading player in baked goodsin the UKand 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.

What do we sell?The product range:Bread | Bagels | Wraps | Thins pittas |Rolls | Breakfast | Teacakes Fruit loaves

What are the current market 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?

What are the current market trends?1Bread 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.

What are the current market 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 over the previous year to account for 16% share.

What are the current market trends?3Bread 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.

What are the current market 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.

What are the current market trends?5baked 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 point decline in 2015.

What are the current market trends?6Packaged 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 comparison to unpackaged pastries in the year thanks to stronger impulse purchases as economic confidence rose.

What is our brand share?UK prepacked bread retail marketWarburtons 34%Leading brands in the UK sweet baked goods retail marketWarburtons -14%Leading brands in the UK speciality bread and rolls retail marketWarburtons -17%

What is our brand 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)

What is our brand share?Table 1 - Leading brands in the UK prepacked bread retail market by value 2013/14 and 2014/15

What is our brand share?Table 2 - Leading brands in the UK prepacked bread retail market by volume 2013/14 and 2014/15

What is our brand share?Summary of table 1 AND 2Warburtons 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.

What is our brand share?Table 3 - Leading brands in the UK sweet baked goods retail market, by value, 2013/14 and 2014/15

What is our brand share?SUMMARY OF TABLE 3While 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.

What key things affect our 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.

What key things affect our success?StrengthsThe 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.Warburtons currently dominates this market and has a strong brand name.

What key things affect our success?WEAKNESSESSBread 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

What key things affect our success?OPPORTUNITIESGluten-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 demand for premium products in this market.There is a growing focus on convenience with regard to UK food products.There is an opportunity to exploit brand awareness overseas.

What key things affect our success?THREATSProducts 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.Supplies of spelt bread are under threat following poor harvests and dramatically-increasing demand.

What is our relative pricingUsing 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.

brandWhite breadPrice rangeWholemeal/ brown breadPrice rangewarburtons79p-1.2579p-1Hovis50-78p50p-1.25kingsmill70p70p-1Store brand*55p-149p-1.34Store brand value*30-55p30p 55p

What is our relative pricingSUMMARYThe 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.

What other agencies do we have relationships with?

What literature do we read?

How do we define 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.

Competitor analysis

hovisHovis recently launched and advertisement as part 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.

hovisThe message behind the advertisement is based 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.

hovisThe marketing manager at Hovis commented in a statement: "We were keen to harness this brand love and pay homage to that rich Hovis heritage but in and new and exciting way. Positioning the brand as the 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 relevant to families today.".

kingsmillKingsmill last series of advertisements was mainly focused around a family of 3 in a kitchen, since then they have not released any new advertisements. Unlike Hovis whose advertisements primarily focuses on children, Kingsmills advertisement focuses on lone parent families. Their last series of advertisement only ever showed a dad and 2 children never a mother.

kingsmillThis could be based on TGI data as Kingsmill consumers are more likely to be either divorced, separated or widowed.However Tesco delisted the entire range of Kingsmills sliced loaves as part of its new volume-driven strategyOverall each brand targets their own specific segment, using TGI will enable to pinpoint which consumers to target in the marketing communications campaign.

Warburtons in the news

Giant crumpets the size of your face are now on sale in a supermarket nearyouThis thrilling crumpet innovation is the work of Warburtons, who claim that their giant crumpets are just under doublethe size of a regular one.

Metro

Breakfast just got bigger! New Warburtons giant crumpets are twice the size of the originalYOU have heard 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

Breakfast just got bigger! New Warburtons giant crumpets are twice the size of the originalAnd this 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

Warburtons focuses on meal times with Giant Crumpets launchWarburtons has announced 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

Warburtons TV ad - The DeliverersBread 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

Warburtons in the news summaryThe news 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)

What great looks like

The future is vertical

WPP, Snapchat and 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 peoples appetite for great storytelling and inspire brand engagement, loyalty and sales.

3v advertising

When you encounter a video ad in Snapchat or any other mobile app, its 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, youre going to keep watching. - Evan

Content!

Content!Content marketing is a 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

Emojis

It's the world's fastest-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.

Ahead of the arrival 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.

The WWF employed a #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.