FMCG brands must learn from mistakes made by rival

Consumer brands must learn from the mistakes made by rivals if they are to succeed as the economy recovers, according to a two-year study of 100 global FMCG brands.

Old El Paso: Campaign given the thumbs up
Old El Paso: Campaign given the thumbs up

The research, carried out by independent business analyst Datamonitor, found that understanding the reason why other brands fail is key to the success of new brands.

It says that with FMCG manufacturers launching more than 1,600 new products between 2007 and 2009, an environment has been created where new items become lost and consumers fail to notice them on the shelf.

The report cites examples of brands tapping into “value driven” ethical branding to capture consumers’ attention and engage them and of brands aligning with FMCG brands must learn from mistakes made by rival an experience to ensure the appeal lasts beyond the recession.

Mexican food brand Old El Paso turned its marketing towards the increase in US families eating at
home during the downturn with its “taco night” campaign, which the report says will have a longer lasting effect than a campaign focused on money saving.

However, report author Vicky McCrorie cites cider brand Magners “over ice” message – which was “piggy-backed” by competitor brands Strongbow and Bulmers – as an example of this type of marketing failing.

When expanding into new categories, brands must make sure consumers can see the brand’s fit. The report highlights Red Bull’s struggle to launch a cola drink because consumers could not engage with the energy brand in the cola category.

McCrorie says: “The success of new product launches is not formulaic. Brands need to combine innovation along with an understanding of how to truly capture consumers’ imaginations and deliver what they want.”

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