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<strong>kinder</strong> <strong>Brand</strong> <strong>Case</strong> <strong>Study</strong><br />

HOW TO DESTROY BRAND EQUITY STEP-BY-STEP<br />

EFFECTS OF THE PACKAGE-DESIGN RELAUNCH<br />

OF FERRERO‘S „<strong>kinder</strong> SCHOKOLADE“<br />

Serjoscha Gerhard & Katja-Maria Prexl<br />

CCM.3053 Management of Communication<br />

Spring Term 2007<br />

Gerhard, Prexl | 2007


60%<br />

care about Kinder<br />

Chocolate.<br />

Question: How connected do you feel to Kinder Chocolate?<br />

16.6% are highly, 41.6% are slightly involved.<br />

2 Gerhard, Prexl | 2007


The Big 5 in the Market<br />

| Kraft Suchard (Milka) (26,2 Mrd. €)<br />

| Nestlé (5,2 Mrd. €)<br />

| Ferrero (4,7 Mrd. €)<br />

| Lindt & Sprüngli (1,2 Mrd. €)<br />

| Zentis (55 Mio. €)<br />

3 Gerhard, Prexl | 2007


Market Changes<br />

| Lost-in-the-Middle<br />

| Market Stagnation<br />

| Highly Competitive<br />

| Fast-Moving<br />

4 Gerhard, Prexl | 2007


Main Categories<br />

5 Gerhard, Prexl | 2007


What is it?<br />

6 Gerhard, Prexl | 2007


<strong>kinder</strong> <strong>Brand</strong> Family<br />

Line extensions<br />

Bars of<br />

Chocolate<br />

Refrigerated<br />

Chocolate<br />

Concept extensions<br />

Chocolate<br />

Snacks<br />

Surprise Line<br />

Chocolate Bars<br />

7 Gerhard, Prexl | 2007


Positioning Model<br />

8 Gerhard, Prexl | 2007


1<br />

2<br />

Relaunches<br />

| Beispieltext<br />

| Beispieltext<br />

9 Gerhard, Prexl | 2007<br />

3<br />

4


Research<br />

| Not representative<br />

| 224 E-Mail-Questionnaires, 48 valid returned<br />

| Two versions of a Questionnaire (A, B)<br />

| Asked for associations and buying behaviour<br />

10 Gerhard, Prexl | 2007


11 Gerhard, Prexl | 2007


Market Changes<br />

12 Gerhard, Prexl | 2007


Associations<br />

| Changed significantly from positive to negative<br />

| New package-design is not related to childhood<br />

and experiences<br />

| Loss of <strong>Brand</strong> Equity<br />

| No change of product quality: the same<br />

13 Gerhard, Prexl | 2007


Is there a difference?<br />

14 Gerhard, Prexl | 2007


There should be differences<br />

| “<strong>kinder</strong> SCHOKOLADE” for children<br />

| “<strong>kinder</strong> RIEGEL” for ‘young adults’ (kidults)<br />

| Different packages<br />

| Different advertisements (1) (2)<br />

| 16.6% answered they see no difference, 50%<br />

slightly differences and 31.25% high differences<br />

--> but only in terms of packaging<br />

15 Gerhard, Prexl | 2007


But there are non!<br />

| Almost nobody changed his or her buying<br />

behaviour because of the relaunch<br />

| People did not switch to “<strong>kinder</strong> RIEGEL”<br />

| Consumers buy more “<strong>kinder</strong> SCHOKOLADE”<br />

and even more frequently<br />

| Consumers: no children<br />

but adults (Age: 18 - 35)<br />

16 Gerhard, Prexl | 2007


Results<br />

| There is a loss of <strong>Brand</strong> Equity<br />

| No proof that consumers changed buying<br />

behaviour<br />

17 Gerhard, Prexl | 2007


What<br />

do?<br />

to<br />

18 Gerhard, Prexl | 2007


<strong>kinder</strong> <strong>Brand</strong> <strong>Case</strong> <strong>Study</strong><br />

| Beispieltext<br />

| Beispieltext<br />

19 Gerhard, Prexl | 2007


Possible Solutions<br />

| Completely remove the face<br />

| Return of the Günther<br />

| Keep Kevin<br />

20 Gerhard, Prexl | 2007


Remove the face<br />

| (-) Not recognisable anymore<br />

| (-) Confuses consumers<br />

| (-) Loss of brand personality<br />

| (+) No negative associations with Kevin<br />

| Possible short-time strategy<br />

| Might be even worse than the latest relaunch<br />

21 Gerhard, Prexl | 2007


Return of the Günther<br />

| (+) Stay in the niche of Retro<br />

| (+) Re-establish brand equity<br />

| (-) Retro <strong>Brand</strong> can not develop<br />

| (-) Not modern<br />

| (-) Further changes seem difficult<br />

| (-) Looks artificial<br />

| (-) Problem artificial vs. health association<br />

22 Gerhard, Prexl | 2007


Keep Kevin<br />

| (+) Form a more modern brand image<br />

| (-) Weaker brand equity (loyalty and image)<br />

| No action necessary?<br />

23 Gerhard, Prexl | 2007


Action<br />

| Keep Kevin<br />

| Adjust the marketing and especially the<br />

advertising strategy<br />

| Use other arguments of the brand image, such<br />

as quality<br />

| Do not concentrate the advertisements on Kevin<br />

| Afterwards personalise Kevin<br />

24 Gerhard, Prexl | 2007


Questions & Discussion<br />

?<br />

25 Gerhard, Prexl | 2007

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