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This conference presentation was first developed in the early 1990s by Chris Mole and Chris Macrae. It subsequently became one of the skeleton outlines used to form the BBC2 television programme : The Ice Cream Wars. We have left this classic presentation in its 1992 form. 1. What is brand seeding? Process: refraining from mass marketing expense until the essence of a great brand image has been planted Marketing controls: launch highly selective distribution and image building to create visibility and word-of-mouth endorsement amongst opinion leaders Objectives:
- cultivate a premium market and be its leader
- retain top positioning even if premium market and mass market merge
2. Which brands were seeded? Many famous names... Early accidents coca-cola - high society's drink in drug stores 1890 - 1910) Dunhill - leather accessories of the first drivers of cars) Recent marketed concepts Häagen-Dazs sol lager haute couture brands weight watchers 3. Which markets are suited to brand seeding?
- where you can't afford 'media-guzzling' (eg. Constraints on budget & exorbitant
cost of advertising...)
- where your brand has a strong identity system
- where your markets have high visibility as fashionable stages
- where your product / corporate competitive advantage involves premium quality
- where you are transferring an international brand heritage
- where a company's core business is essentially global
4. Why is brand seeding the best kept secret of marketing? Many of today's branded markets are increasingly transnational, crowded and advertising saturated...
marketing practitioners are questioning the effectiveness of traditional mass marketing investments and the classical brand management system -a brand and product manager for every product and country - is passing into history. ...but...
- text books, business schools etc still espouse historical rules of playing the game.
- other inertias include advertising agencies whose revenues still come from encouraging clients to consume media
- best seeding practices are context specific requiring marketers to take the lead in evaluating opportunities and risks. For this process to flourish, corporate cultures need to be supportive of innovative marketing; organisational consensus on the balance between short term and long term objectives must be a reality.
5. Case study : Häagen-Dazs : the invention of tradition
- born 1961 USA: Danish sounding - name simply invented as distinctive, exotic
- seeded distribution: own ice cream parlours in popular tourist locations
- communications: entirely word-of-mouth (ie including fashion magazine coverage) throughout 1960's and 1970's.
...international transfer on 1989 acquisition by grand metropolitan... UK seeded launch: (1989 - 1992)
- premium product - fresh cream ice cream
- price - up to 7 times (ice creams that haven't seen a cow)
Häagen-Dazs : UK seeded launch (1989 - 1992) select distribution:
- 3 years ago - only Harrods
- then Häagen-Dazs-on-the-Square (parlour: Leicester Square)
- then other parlours; hotel menus (eg. Hilton) if referred to by brand name
- 'exclusive' distribution with blockbuster video
Sampling:
- at grand slam tennis tournaments ("jet setters-word-of- mouth")
- at polo tournaments; sailing regatta
- at conservative party ball (with write-up in next day's daily telegraph)
- as xmas present at waterloo station
- from specially designed "brandwagon"
Advertising:
- only in 1991 after minimum critical mass awareness (of ab's London)
- only £300 k (less than sampling budget)
- to achieve tactical objectives:- - demonstrate consumer-pull at time when aimed to get trial stocking from supermarkets
Almost free pr:
- advertising executions: - 2% share of voice, - 40% share of noise through newspaper commentaries "the 2nd most intense personal pleasure after the o-word"
- "brand biographies" press released to fashion magazines
- sponsored capital radio over Xmas period ensuring all DJ's were snacking on Häagen-Dazs. Got almost hourly free mentions key success factors
6. Lessons Evaluate whether you have the competitive strength to establish premium positioning
- plan the distinction between promotions and sales · to whom, where, when
- plan the brand's history and international transfer of kudos
- understand identity system and whether fashion accessories are needed for visibility
- test on small stages at first
- control quality of product and execution
- go for select distribution first
- don't go to mass market until minimum critical mass of opinion leaders is established
- agree effectiveness / success objectives and measure these
- don't change objectives of plan half way through
7. Crosscheck other implementation issues Such as:
- brand/product portfolio strategy
- the value of the long-term and a premium positioning
- re-establishing heritage and premium positioning
- the challenge of creativity
- umbrellas, brands and sub-brands
- global consistency
- measurement systems
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