— Attessa Bradley, Stonyfield Brand Manager
When it comes to yogurt I have no brand allegiance. Whatever brand happens to cross my line of vision that does not look like it will taste like creamy acid, I will grab. Granted, I don’t eat much yogurt, so I have no problem in brand continuity. Same thing with milk, whatever the house brand is at the grocery store near my home at the moment is the one I buy. For a while, in the halcyon economic times of 2007, we bought organic milk. Prior to writing this post, if you had asked me what brand of organic milk I bought I would not have been able to tell you. It was only as I was going through Stonyfield Farm’s web site that I realized the $5 gallon of milk I had been buying was Stonyfield Farms. This is not a knock on this particular brand but perhaps just my perception of the dairy category: A blurry landscape of cows, prairies and fruit drawings. Most likely, I’m not the target audience. Having said all this, Stonyfield Farm stands out from the crowd as a cow- and earth-conscious company since its modest beginning in 1979 as The Rural Education Center until 1983 when they began (pun alert!) milking their expertise and killer yogurt recipe as a consumer product. Today it is one of the most successful organic dairy product lines in the market, and it recently launched a new identity and packaging designed by Webb Scarlett deVlam
In 2007, Gary Hirshberg, Stonyfield’s CEO decided to embark on an initiative to update the relevance and aesthetic of Stonyfield’s key messages, look, feel, tone, and equities as well as explore new campaign ideas, and new media. These would involve a new brandmark, packaging design, web site and advertising campaigns. The challenge was to create a distinct yet relevant point of difference within the yogurt category.
We started with research. Our analysis included a deep dive with consumers, key stakeholders and distilling needs and perceptions into brand truths and aspirations. Our design strategy was to bring consumers to the farm, so we photographed and printed the farm on the pack. Despite excellent quantitative test results, this execution took an extraordinary leap of faith for Stonyfield.
[The] the brand had lost the ‘Farm’ in the brand name. Our research concluded it wasn’t essential to the identity of the brand. Hence, Stonyfield Farm became Stonyfield.
The old logo had been in use since the early 1990s, with a few modifications over the years, and for the most part it remains the same but in a decidedly more contemporary execution. Dropping the “Farm” allowed for a non condensed type treatment, which made the old logo look a little bit dated. The new typography is very nicely executed, especially that “yfi” ligature. The cow (more on her later) is a little smaller, which I’m not sure if it’s good or bad, and the word “Organic” feels more subtle and less like a commandment that must be followed. The colors are richer and, for lack of a better term, yummier.
While I do like the logo, I don’t like the packaging as much. The photographic approach makes it feel more ordinary somehow. Too colloquial. And I’m no packaging expert by any means but I feel the hierarchy of the information was easier to access on the old one, even though the information in the new one is more consistently executed. As a metaphor for my contradiction: The old product information was like a hipster with clashing colors and textures, and the new one is like an Ivy college professor, even tones from head to toe. But I digress, before the digressions become too much. The flat colors in the old packaging were more energetic and that’s probably what I’m reacting to.
A comparison of old and new
In 1992, Stonyfield held a contest to name their cow. Elizabeth Malakie of Church Falls, Virginia suggested “Gertie” so that when she was called she would respond to “Yo! Gert!”. Stonyfield took it one step further and named the cow “Gurt.” Yes, as in “Yo! Gurt!”. Throughout the packaging line of yogurts, Gurt appears in a bevy of accessories like a beret for the French Vanilla flavor. Above is a small sampling from nearly 30 options.
With the flavored yogurt market losing its momentum, Yoplait zaps the end of the family meal with its new yogurt, which can be eaten without a spoon, and therefore away from the table.
Who? Yoplait
What? To become brand leader in the standard flavored yogurt market.
How? The launch of Zap, the first yogurt in a sachet
With what? TV and poster advertising campaign
With whom? McCann Erickson (advertising) and Logic Design (packaging)
How much? FFr16 million gross on advertising
Result? +12.7% in Yoplaits turnover on the flavored yogurt market in one year.
On this supermarket aisle there is hustle and bustle According to studies, 95% of hyper-market customers go to this aisle every visit (1) and not just to look, as 80% leave with at least one product in their trolley. Chilled desserts, a sector with FFr23 billion in turnover in 1996 represents a very dynamic market with a year on year growth rate of 5.3% in comparison to 1995.
An interesting sector, as new products are frequently being launched onto the market. But there is one problem: yogurt, the biggest segment of dairy products in France, with a turnover of FFr8.8 billion in 1996, sales were sliding. Or to be more exact, the flavored yogurts, which represented 11.9% of the yogurt markets sales. In fact sales were in free fall, down 10% compared to 1995. 'However flavored yogurts remain the second market segment of fresh dairy products', explains Hlne Roux, Product Manager for Zap from Yoplait. 'Unfortunately retailers own brands continue to increase their market influence and the major brands, Yoplaits Fructos, Danones Kid and Nestls Yoco only compete during promotions, robbing the market of any exciting competition'. As a direct consequence, investment in advertising is stagnant, increasing across all brands in 1996 to FFr19.4 million gross
Flavored yogurts, 75% of which are purchased by households with children, were gradually losing interest. This was as much the case for consumers as for retailers. Although bought mainly for children 50% of flavored yogurts are consumed by adults. The major brands have tried as well as can be expected to give more punch to the sector. Danone introduced a 'creative' version of Kid, with an accompanying small dish containing chunks of fruit or cereal; Fructos repositioned itself as the only yogurt flavored with fruit juice; Senoble joined forces with Haribo to launch the strawberry flavored yogurt Tagada In short, each one tried to differentiate itself from the others on the market.
In vain: the market remained stable, with no increase in the number of consumers and the brands retained their positions, only making an impact on the competition during price promotions. In 1997 the flavored yogurt market collapsed even more, only just reaching 21 000 tons and turnover of FFr960 million (-8.7% in volume and
6.7% in value)
The time had come for existential questions: Stay or go? Not an easy decision as Yoplait did have a good market share, as was the case for the three major brands (2). Yoplaits Fructos accounted for 28.8% of the market in terms of volume in 1996, whilst Danones Kid had 18.7% and Nestls Yoco 21.5% (respectively 28%, 20.1% and 21.6% in financial terms).
'We therefore had no choice if we wanted to remain in the market than to create market value by trying, once and for all to become market leaders', continues Hlne Roux.
With a clear aim in mind, it only remained to find a solution. Having completed some studies, two strong tendencies in French society leapt out at Yoplait: the increasing amount of snacking and the explosion of the mobile phone market. Nothing to do with yogurt? 'Wrong' comments Jacques Hervouet, Commercial Director at McCann Erickson.
'In fact this indicated the presence of a McDonalds generation, ready to break free from eating traditions'. 'We then only had to create a new product which would correspond with these tendencies towards snacking and being on the move', continues Hlne Roux.
'This all came back to adding value in two ways: habit and pleasure', continues Renaud Degon, Director of Strategic Planning at McCann Erickson. So with added value, the price per kilo of the product would rise and so there would be an increase in turnover
Snacking and being on the move: the two main sales features of the product were established. Yoplait had experience in this area already, having launched the Petits Filous with straws on the petit-suisse sector (that were now called Petits Filous Tubs), and in the yogurt drinks segment, they had launched Yop. These products were aimed at different target groups, with the former for small children and the latter for adults. As for the 'medium' sized (aged between 7 and 12), they found themselves 'orphans' in the yogurt world.
Not for long - as Yoplait decided to launch a product aimed at them. The aim: a yogurt, not to drink, but to swallow, greedily, without a spoon. The yogurt sachet weighing 90g (compared to 125g for a pot) is born.
'We originally envisaged launching under the brand name Pocket Fructos so that we could capitalize on our brand. But this posed a problem: we risked reducing the added value of this new product. To fully optimize the novelty, we decided to create a new brand: Zap', explains Hlne Roux. Zap as in to zap, of course Price per kilo: FFr22 compared with an average of FFr6 for standard flavored yogurts.
September 1997: Zap appeared on the shelves for the first time. The launch of this yogurt in a sachet attracted major retailers. The availability in shops grew steadily and in December 1997 Zap was available in 60% of large retailers, which account for 74% of total retail turnover (3). In short, the time had come to launch the advertising campaign.
A double objective: image and volume
McCann Erickson performed studies to decide on which tactic to take. 'Two discoveries came out of our meetings with consumers: firstly that mothers can no longer manage to keep children at the table. So fairly often children skip the end of the meal and mothers feel guilty that they havent given their child enough milk', continues Renaud Degon. 'Now we had a product which would allow children to consume a dessert elsewhere and provides what mothers feel is most lacking in their childrens diets: milk', explained J. Hervouet.
Deciding against an evidential campaign (a film showing children eating Zap outside), McCann Erickson suggested the idea of symbolically showing the arrival of the sachet yoghurt on the market with a fact: the death of the spoon (the spoon is yesterdays news).
'The choice of media was self-evident: television to demonstrate the product and posters because, of course, it is an outdoor product', concludes Renaud Degon.
Zap appeared on the TV screens on the 16th January 1998, with two clips of 30 and 20 seconds directed by Pascal Chaumeil (production: Quad). The defunct little spoon, which is thrown out the window, plays the star part.
From 21st January 1998 the billboards displayed, along with the fossils of the yogurt spoon, two slogans which left nothing in any doubt: 'No future' and 'End of the reign' (165 showings of 30 and 20 second clips; 6236 boards, in pairs, in all towns with over 50 000 inhabitants). Total budget: FFr10.6 million for television and FFr5.4 million for the outdoor campaign (4).
'No other advertising campaign took place. We had planned a series of promotional events in stores, but they were not needed. Sales escalated from the appearance of the advertising to such an extent that we didnt need to use any other techniques', comments Hlne Roux.
On the shelves, Zaps arrival did not go unnoticed. Without doubt because McCanns advertising had been seen, by children as well as by mothers. The post-tests prove it (5). The recognition rates for the TV ads (interviewees claiming to have seen the campaign) were 78% amongst children and 52% amongst mums (average for children 81% and 46% for mothers). And those who had seen the clips didnt forget them: 54% of children and 30% of mothers remembered one or more details of the clip (average 35% for children and 15% for women).
It was the same story for the poster campaign: 54% of children and 23% of mums were able to recollect details (average 35% for children and 15% for mothers).
'We are all the more proud because this campaign did not resort to using the methods for reaching children, with neither comic book characters, nor cartoons', continues J. Hervouet. 'All the more proud because the appearance of the advertising campaign coincided with soaring sales (from 10 tons per day during the first week of January 1997 to 86 tons at the time of the outdoor campaign). And this development did not suffer a downturn, as in June 1998, sales were still at 74 tonnes per day' Had the launch of the sachet yogurt revitalized the flavored yogurt sales? too early to tell. The fact remains that Zap seems to be a real success (6). The new brand from Yoplait had gained a presence in the shops very quickly.
Available in 83% of French hyper-markets and supermarkets in August 1998 (accounting for 90% of total retail turnover), Zap alone holds 3% of the flavored yogurt market in terms of volume but when taking into account its price per kilo, in terms of value it holds 8.1%'. There was no noticeable cannibalization of Yop or the Petits Filous Tubs', concludes H. Roux. Final result: Zap made Yoplait market leaders on the flavored yogurt shelves (6). By the end of August 1998, taking into account all their brands, Yoplait held 37.5% of the flavored yogurt market in volume terms and 41.2% in terms of value, compared with 28.9% and 28.5% in 1997.
At the same time, Danone retained 22.8% of volume and 24% of value (compared with 20.8% and 23.8%). And Nestl pulled out of the market. So Zap re-launched its campaign with repeats in September 1998 for FFr9 million gross.
| Ave. | Children | Ave. | Women | |
| Total score | 77 | 85 | 38 | 38 |
| Specific score | 35 | 54 | 15 | 30 |
| Proved score | 44 | 56 | 21 | 34 |
| Recognition | 81 | 78 | 46 | 52 |
| Ave. | Children | Ave. | Women | |
| Specific Score | 35 | 54 | 15 | 23 |
| |||
This is a scandal that still reverberates throughout the world for claiming the lives of six Chinese infants and making 300,000 others ill with kidney-stone-related diseases. Even as recently as mid-February 2009, a quick Google search brings up articles fervently pursuing the issue of melamine and broader quality-control issues in China’s milk industry. It was clearly the kind of public relations nightmare a company could never shake. But nearly six months on, shake it did. Mengniu, which had its shares trading suspended on the Hong Kong Stock Exchange on Sept. 17, 2008, is now trading again at sustainable levels. Though nothing like pre-melamine highs of US$ 3.00–3.50, it is now hovering around the US$ 1.00–1.20 mark, after dropping drastically to lows of US$ 0.20–0.50 (Reuters, March 2009). “Mengniu’s sales are currently reported to be at roughly 70 percent of pre-melamine volumes, and come summer this year, they are expected to make a full recovery,” says Philippe Chan, Asia Manager for beverage industry consultants Canadean. Unfair though it may seem to turn this into a “branding” or “public image” exercise for Chinese dairy companies, for similar fledgling export-driven industries China-wide, this is essentially what the crisis represents. Quality-control issues are not new for Chinese companies, but having to deal with them on an international stage is. Mengniu has emerged healthy on the other side of this crisis, both from a quality standpoint as well as an image perspective. How did they do it, and are there lessons for other aspiring export-driven mainland companies in the Chinese F&B sector to learn? Background check Mengniu was ranked No. 3 among dairy enterprises in Asia in the Top 500 Brands poll of 2006 and was named “The Most Creative Enterprise” of China in March of the same year. Along with brand recognition, China Mengniu Dairy’s stock has appeared on a Morgan Stanley list of Global Top 50 Blue Chip Stocks until 2012. Of Mengniu’s branding efforts, Chan says, “Mengniu wants to be a global player, and is interested in projecting a more international image.” They have an effectively bilingual website up and running, a move that has proven tricky for other similar-sized companies in China, that includes prudent information for consumers, trade customers and other interested users. Dealing with the crisis This, Mengniu did promptly and sincerely. On Sept. 28, 2008, the news page on the Mengniu website featured a release titled: “Solemn Guarantees From Mengniu Group,” and it proceeded to “genuinely apologize for the physically and psychologically affected consumers.” It guaranteed: - a recall of all tainted baby formula A dedicated crisis hotline was also set up in the immediate aftermath of the scandal to enable affected consumers to reach and receive assistance as soon as possible. There also exists a general information line that customers can contact with any queries regarding Mengniu’s products. This openness is very unusual in a mainland company, but also refreshing. Normally you are lucky to find any contact information on an official website, and if it works, you may as well head out and buy a lottery ticket! This “open policy” has the twin benefits of building trust with consumers who do use the service and building goodwill among those who do not. Company spokeswoman and VP Zhao Yuanhua has also appeared frequently in the media, urging consumers to restore their confidence in Mengniu and also being open about the measures being taken to combat the crisis. In a November 2008 press release, she is quoted as saying, “we are going to guarantee the safety of raw milk…and build Mengniu (into a) time-honored brand.” Late last year, Mengniu organized a site visit for consumers, journalists and health officials to its key Beijing facility, walking them through the improved proceedings and explaining in great detail how processes have changed since the scandal. Measures like this have certainly helped improve the Mengniu brand, at least in the eyes of the domestic market. Opportunities in the aftermath Mengniu, however, was not without its own opportunities in the aftermath. As per its corporate vision, “…building a world famous brand is a steadfast pursuance for Mengniu Dairy Group” and that it will continue to do, not just by upholding safety and quality standards but certainly also by milking a PR opportunity or two when it presents itself. As it readily admits in a recent press release, “During the crisis, people also see a brand new image of the Chinese dairy industry that has a stronger sense of responsibility and credit standing of trust.” |
