Audi::: Progressive vanguards

BRAND OWNER:Volkswagen
CATEGORY:Automotive
REGION:China
DATE:Mar 2008 - Dec 2008

High brand awareness for the Audi A8L was failing to convert into sales in China. Consumer research revealed that the Audi brand was perceived as old, conservative and government-related.

The car brand needed to communicate its new positioning of “Progressive Vanguards” to a niche audience of sophisticated business executives and hence boost sales.

We knew that this target market were confident in their own beliefs and ideals but conversely they were also keen to learn from other people’s success.

The solution was to create Audi’s own list of “Progressive Vanguards” and put their stories at the heart of the campaign.

Audi teamed up with leading business newspapers and periodicals to create Audi branded content where 24 leading businessmen from China and abroad would talk about the secrets of their success.

They included Steve Jobs from Apple, Ma Yun from Alibaba and Li Yan- Hong of Baidu. Readers were directed to their stories via eye- catching banners on the front page.

Special events and business conferences added another layer to the communication, encouraging readers to take a test drive.

Sales of the Audi A8L rose 35% year on year with a saving of 45% on a regular media buy.

USA | Pizza consumer foodservice

Company Watch: Pizza Hut rebranding to Pasta Hut – a healthy move?
25 Nov 2008


Global pizza restaurant chain Pizza Hut announced the temporary renaming of 30 of its outlets to Pasta Hut in the UK, effective from 6 October 2008. This move has generated a buzz, but opinions are divided as to whether such a gimmick can boost sales.With an estimated 33% value share in 2008, Pizza Hut remains the undisputed leader of chained pizza restaurants in the UK. However, aggressive expansion by smaller players such as Prezzo, Strada and Deep Pan Pizza has contributed to the erosion of Pizza Hut's share (down from 38% in 2001).

In order to bolster sales, Pizza Hut is in the process of revamping its image and this daring rebranding is part of that initiative. The renaming to Pasta Hut has been confined to the UK, and carried out on a much larger scale than the temporary name change in the US in April 2008. The move was accompanied by a television and newspaper advertising campaign. A separate website has been created for Pasta Hut on which there is a poll for consumers to vote for or against a long-term name change, thus making them feel part of the decision-making process. This marketing strategy has generated both a buzz and strong debate about the effectiveness of such tactics.

Ongoing efforts to shed unhealthy image and move upmarketWhen the company announced the temporary renaming of 30 of its outlets to Pasta Hut, the move was positioned as part of its ongoing commitment to healthier food. Some 12 new pasta dishes will be added to the menu. While Pizza Hut has not made explicit claims about pasta being healthier than pizza, it has simultaneously improved its salad bar and added more vegetables to children's meals.
This ties in with steps that Pizza Hut had already taken towards a healthier menu such as reducing the salt in its meals to bring it into line with recommended government levels. It had already removed trans-fats from its menu at the end of 2007 and is still in the process of making more dishes low-fat or virtually fat-free.The campaign is also seen as an attempt to move upmarket and attract a wider consumer base. One of its new television advertisements features young mothers lunching together on bowls of pasta. Expanding its range beyond pizza will enable Pizza Hut to attract an older and more sophisticated consumer, but without losing those consumers its pizzas are aimed at.
This will enable it to compete more effectively with its more upmarket competitors which already have a wide range of pasta dishes on their menus. It means that Pizza/Pasta Hut can offer something for the whole family – more indulgent fare for younger family members and healthier offerings for older ones. This is in line with the US move, which firmly placed Pizza Hut as a family option.

Early indicatorsIt is not possible at this stage to speak with any certainty about growth in till receipts as a result of the move. However, results are through for the smaller Pasta Hut US renaming earlier in the year. There, both sales of pasta and overall traffic grew as a result of the move, and, according to a company spokesperson in the UK, before the re-naming, pasta dishes accounted for 3-4% of Pizza Hut's revenue, but are on course to reach a 10% share by the end of the year. Tougher times call for bolder measuresPizza Hut needed to do something dramatic to break free from being pigeonholed as a pizza restaurant.
Changing the name, albeit temporarily, is a bold move. Difficult times are ahead for CFS outlets as eating out becomes one of the first casualties of the financial crisis. So, a move that attracts a wider consumer base by aiming more upmarket whilst retaining its “family friendly/budget” feel can only be seen as a strategic move, however gimmicky the press may find it. An economy outlet that offers a more upmarket product range is well positioned to mop up higher-income families feeling the pinch that would normally dine out in more upmarket outlets. With all CFS restaurants looking for ways to weather the storm of economic recession, expect more high-profile marketing campaigns. It is unlikely that other restaurant chains will choose temporary or even long-term rebranding, but marketing and new product development will play an even more important role in difficult times.

Restaurants will need to be canny in order to safeguard profit margins in the coming months. In this case the margins on pasta and pizza do not differ widely, although cheese price hikes can impact pizza mark ups. However, as food prices increase at different rates, restaurants may need to push products that will bring in higher margins. In addition, no one can afford to ignore the trend towards healthier eating. An introduction or shift to smaller menu portions may also be on the cards as a way to both safeguard revenues and promote healthier eating.Ratna Sita Handayani, Research Analsyt, Ratna.Sita@euromonitor.com

Quaker Oats Jumps on Health and Wellness Bandwagon

March 9, 2009
-By Elaine Wong

PepsiCo's Quaker Oats today fueled New Yorkers' morning commute as part of a breakfast giveaway, which is tied to a new campaign touting the company's whole grain oats.The event, which took place in New York’s Times Square, marks the first time the company will kick off an integrated campaign linking all of its oat products—including Life cereal and Chewy granola bars—under the health and wellness category.

The campaign is dubbed “Go Humans Go.”Former Oprah Winfrey chef Art Smith was on site in Times Square for the breakfast giveaway, which included hot oatmeal and energy smoothies. The promotion coincided with Quaker Oats' renewed emphasis on cause marketing, as the brand steps up its hunger awareness project with charitable partner Share Our Strength.

Today's event also featured an on-site food donation drive, hunger awareness bloggers and bicyclists using “pedal power” to blend their own smoothies.Outdoor elements of the campaign have started appearing on Quaker Oats’ Web site, and on bus and taxicab ads in the Big Apple and other major metropolitan cities. The bulk of the effort begins March 16, with television ads elaborating on the “oat as a nutritious fuel” theme. The ads were created by Quaker Oats’ new lead agency, Goodby, Silverstein & Partners.

Print ads will appear in April in consumer publications.In an interview with Brandweek, Quaker Oats CMO Annie Young-Scrivner said the company chose to focus on the oat because “it’s not just a grain. It’s a super grain that powers your day and helps you do amazing things.

It lifts you physically and emotionally and makes you feel good knowing you did something good for someone and yourself, and it’s one of the most nutritious grains.”Quaker Oats, which spent $50 million on advertising last year (not including online initiatives), per Nielsen Monitor-Plus, may be onto something, said Harry Balzer, vp at the NPD Group’s Chicago office.

Calling attention to oats' wholesome, filling properties is indicative of a larger consumer trend: The shift from meat-based to grain-based meals, Balzer said. “It’s a way of moderating food costs,” he added, noting that grain-based meals are usually cheaper.