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

[email protected]

+44 207 354 4150

Phil Lawder - Innovation and Strategy Directorcogn8honey & honey

[email protected]

+44 207 354 4150

Please give us your business cards and we will send you the presentation


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


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


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)


Setting the scene


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


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


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


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


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)


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


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


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


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


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


Create more stand out for existing brand


Create more stand out for existing brand


Vegetable chips has suffered from incrementalism


More personality and stand out on shelf


Strategic framework

NPD Plan needs to be holistic


Individual targets




New format addresses a male orientated segment


Strategic framework

Brand and Product Development Plan needs to be holistic


Individual targets





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


• 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


Any questions?


Cogn8honey logo

Doug James - Managing Director cogn8honey & honey

[email protected]

+44 207 354 4150

Phil Lawder - Innovation and Strategy Director

cogn8honey & honey

[email protected]

+44 207 354 4150

Please give us your business cards and we will send you the presentation


Business

How to innovate faster and grow profitable brands pi seminar 2012