Our client was embarked on a major brand expansion through aggressive innovation. Their marketing strategy was to advertise the ‘new news’ and rely on halo effects to maintain the original brand. We proved that their strategy was the wrong way around and produced a 180⁰ shift. As a result they started supporting their core brand, and saw a 50% improvement in overall return on investment.
As well as line extensions they had developed two new products, one completely new and unique. Their aim was for this unique product to achieve the same scale as their original, core product. A careful review of the new product’s uptake revealed that it was simply not achieving the anticipated success. Whilst the advertising for the product was extremely effective at driving trial and had a high ROI, the product itself was not living up to its promise.
We helped the client re-position the product from ‘core product’ to ‘profitable niche’ and produced a new investment strategy that reflected the market reality. In addition, insights from our models shed light on what, creatively, was working for them, and what wasn’t. This led the client to develop a new, unified creative platform for their portfolio to capitalise on the success of previous campaigns and their salience in consumers’ minds.
We used our work to challenge the client’s promotional strategy, which had resulted in too many unprofitable and unnecessary promotions being executed. Through careful engagement with the Sales Team and the Commercial Finance Team, we helped implement a new process for promotional planning and evaluation, gave them the tools and training to do so themselves, and helped shift their culture towards accountability.
Overall, the change in investment strategy helped arrest a decline in core product sales and delivered a 50% improvement in the overall return on their media investment.