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How brands can be successful in 2011

2011 can be a profitable year for consumer packaged goods brands, but they should learn from 2010’s successes and failures. Research from Datamonitor has compiled a brief rundown of last year’s successes and failures and the key factors behind why 2010 was a bumper year for some brands and the end of the road for others. 

Key successes are:

• Minute Maid – Coca-Cola, known for its sparkling drinks format, developed a product for the Chinese dairy beverage market. In October 2009, Minute Maid Pulpy Super Milky, comprising a mixture of fruit juice, milk powder, whey and coconut was launched in China. The launch highlighted Coca-Cola’s commitment to developing new products for local markets. Positioned as a lifestyle brand, the product aimed to cater to the growing health consciousness demonstrated by Chinese consumers.  The launch exceeded initial expectations and its impressive performance in China has generated immense interest in overseas markets. 

• PRIMO EXTREMO – Rather than competing with Up&Go loyalists, Primo chose to target new segments in order to grow the entire meal alternative category, by introducing ‘Primo Extremo’. The product was named in an attempt to poke fun at the hyperbolic nature of breakfast marketing, a strategy that resonated strongly with its target audience of 16-25 year old males. The launch campaign proved to be an overwhelming success in creating a differentiated and credible challenger to market leaders. 

• Axe – Launched in Japan in 2007 with great success, overtaking male grooming category veteran and market leader Gatsby. To promote more frequent usage, the brand recently launched its “Axe Wake-Up Service”, where a young attractive woman will make a wake up call through either phone or video and remind the consumer to spray some Axe deodorant and smell great. 
 

Products that did not fare as well include:

•         iSnack 2.0 – Kraft infamously invited consumers to rename its Vegemite and cream cheese concoction, but the new name sparked an immediate backlash. While the campaign generated short-term sales and brand awareness, consumers became suspicious that the name change was in fact a marketing ploy. The campaign reflects the dangers of relying purely on immediate gains without consideration for the long-term impact on brand equity.

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