“Living the Brand”vs.

Surviving the Corporate Battlefield

Phil Lynas

Managing Director - The Grocery Company

“From Medomsley Road, Consett

to United Biscuits Plc….!”

“Still Peri-Peri Passionate”

1982 Crisp & Snack Market

Dominated by 3 major players

Market worth c. £1bn

Products aimed solely at children

Adults consumption = ‘Distress Purchase’

Location : Medomsley Road Consett…

4 men with open minds, vision, passion & £67k….

No brand, no products, no factory

Initial research into snack market said snacks must be…

• Made from potato

• In small bags with window

• Maximum 15p per bag

• Stick to traditional flavours

• Salt & Vinegar, Cheese & onion, Beef, Ready Salted & Prawn Cocktail….

So they ignored the research!

Investigated snacks from around the world

Went to local pub

Had several pints

Invented Phileas Fogg

Staggered home….

Challenged rules of Crisp Market!

• Tortilla Chips, Shanghai Nuts, Californian Corn Chips & Mignons Morceaux!

• 100g per pack – perfect for sharing!

• 44p

• Adventurous flavours, targeted clearly at adults

• Supported by very memorable advertising & design

The Results

1982 Product of the Year

1986 CBI Company of the Year

Marketing Society Implementation Excellence Award

Hailed as one of the brand launches of the eighties

Sales of £20m at RSP within 10 years of launch.

Total Turnover c. £30m in 1993

Why the success?

Distinctive Brand Identity

Innovative Culture & constant NPD

“Why not?”

“Don’t compromise your distinctiveness for majority appeal”

Understood ‘Brand Soul’

Passionate & Single-minded Brand Ownership

And then……..?

Corporate Battlefield

Sold to United Biscuits in 1993 for £27m

Became part of the KP Brand portfolio

KP had tried to establish ‘adult’ credentials with McCoys & Brannigans.

Bought Phileas Fogg so that the “creative & innovative values could rise through the business…”

Or was it because they couldn’t do it themselves….

KP & Phileas Fogg

No passion or understanding of ‘brand soul’

Investment in advertising withdrawn

Limited NPD – innovate or die!

Many, many, many packaging changes

Lost in a big brand environment….

Corporate Battlefield

Phileas Fogg treated like a KP brand

Lost distinctiveness & differentiation

Doritos launch confused brand positioning

Limited internal ‘ownership’

No Brand Passion!

Today…..?

Crisp & Snack market worth £2.2bn

Crisp market has grown from £1bn to £1.27bn since ‘82

Snack market alone now worth c £970m

Snacks now account for 44% of total bagged snack market

Brand has lost it’s relevance and almost all its sales!

Brand Awareness….

Kettle Chips 83%

Phileas Fogg 79%

M & S 75%

Tesco Finest 60%

Tyrell's 17%(Prompted IGD 2005)

In 2005 74% of respondents associated Phileas Fogg with Around the World in 80 days

Phileas described as ‘quirky, adventurous, warm, outgoing & friendly’

Brand values & awareness to die for 20 years on….

Today…..?

Walkers Crisps £417m

Pringles £144m

Doritos £77m

Sensations £76m

Kettle Chips £55m

Walkers Baked £37m

Phileas Fogg £101,000

Phileas Fogg re-launch

“To branch away from its owner United Biscuits and regain its own unique identity”

“Take to new level of exclusiveness so that it is talked about”

“Modernising the brand whilst retaining its original heritage”

“…out of all the brands at United Biscuits, Phileas has the best opportunity to develop its

identification”

Enjoy the journey….!

A very brief history…!

1400’s Portuguese discover Birds Eye Chilli and spread around world

1987 ‘Chickenland’ – Rosettenville, Johannesburg

1990 Nando’s Grocery launches in SA garage…

1992 1st UK restaurant – Nando’s Ealing

1997 Grocery launched in UK

“Nando’s is not just about chicken, it’s never been just about

chicken….

It’s about pride, passion, courage and integrity but most of all family”

Robbie Brozin CEO – Nando’s Worldwide

Best not biggest

Establish & Own Peri-Peri

One brand

Defined by Values & Passion…

New ‘casual dining’ & in-home experience

Have fun, making money….!

The Vision

Restaurant

Retail

Flame-grilled

Chicken

Casual Dining

Fun Environment

Innovation

Taste Adventure

Flavour Enhancement

BBQ

Peri-Peri

Portugal?

Passion

Wit

Nando’s

What Nando’s is… What it’s not…

Authentic IntimidatingQuirky WeirdEfficient Fast (food)Informal LazyBustling ManicInteractive ChaoticContemporary TrendyYoung at heart JuvenileHumorous ComicRule breaking ConformistEarthy Plastic/Contrived

Peri-Peri Passion

Rational Emotional

Peri-Peri Portuguese Passion

Peri-Peri Passionate

Nando’s in Grocery

1998 169 restaurants 7 countries

2001 345 restaurants 22 countries

2004 502 restaurants 29 countries

2007 750 restaurants 30 countries

Sauces available in 31 countries

Successful?

175+ highly successful restaurants

Market Leader in ‘Fast-Casual Dining’

Dominant Marinade market leaders

Fast Growing Chilli Sauces

Biggest Nando’s Market

And in the UK

Marinade Market Share

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Business has grown but values have grown with it

People understand brand origin;

adapted to changing consumers & markets

Huge investment by restaurants in training & development

Same approach to people & fun as when it started

Why should it be different when you have 20 staff or 20,000?

15 years on

– where next

‘Putting restaurant brands on supermarket shelves’

Ben & Jerry – Now part of Unilever

Changed perception of Ice Cream market

Brand sales 2006 2007£41.2m £50.6m

Green & Blacks – Now part of Cadbury

Changed perception of Chocolate market

Brand sales 2006 2007£21.4m £30.3m

Who’s integrated well?

Internal OwnershipPeoplePassion

Internal MarketingBelief System

“Can do” cultureNo templatesEmpowerment

FreedomCasual, but professional

Uncomfortable for some…

“Living the Brand”