Friday 17 September 2010

The Inexorable Rise of Brand Response in the ‘00s

The IPA Effectiveness Awards at 30

The Inexorable Rise of Brand Response in the ‘00s

By Neil Dawson

In the book Built to Last, Collins and Porras talk about how companies get caught in what they call ‘The Tyranny of the OR’. The belief that you cannot live with two seemingly contradictory ideas at the same time, that you can have change or stability, you can be either conservative or bold, you can have low cost or high quality, but you can never have both. They found that successful, visionary companies all operate in what they call ‘The Genius of the AND’, driven by the “ferocious insistence” that they can and must have both at once.

Marketers and their agencies have long been caught in their own ‘Tyranny of the OR’ as they have wrestled with how to achieve the right balance of brand-building and response-driving, tactical activity within campaigns. Terms such as ‘Theme and scheme’ or ‘Strategic promotions’ have been variously used to describe this ongoing challenge.

Brand Response is the marketing communications industry’s Genius of the And. It sounds too good to be true. It asks us to live with two apparently contradictory ideas at the same time. It can be simply defined as a strategic and executional campaign approach where brand-building drives response and this response in turns build the brand in a virtuous circle of effectiveness.

Analysis of the IPA Databank indicates there has been a change in the nature of the campaigns on show over time. Brand Response emerged as a significant force in the ‘00s and the trend looks set to continue. This has had significant implications for strategy, creative, media and evaluative approach. While this may risk over-simplification, marketing communications seems to have moved through three distinct phases in the lifetime of the Awards.

1.Brand or Response

Marketers make a choice between two discrete activities. Brand-building and other longer term activities are separate from short-term sales or response-driving activities. They are generally delivered by different campaigns through different channels. Typically TV used for ‘brand’ and direct marketing used for response. The majority of the IPA cases from the 1980s reflect this thinking.

2. Brand and Response

The two elements are treated as distinct but complementary activities within a campaign assisted by some executional links. The Grand Prix-winning Tesco case of 2000 used Every Little Helps and a consistent tone of voice across different campaigns for brand and tactical work.

3. Brand Response

A seamless blend of both types of activity is delivered through a single campaign. The purpose of all activity is to drive response (both short and longer term) while building the brand. Building brands and driving sales are no longer mutually exclusive activities, they are now symbiotic. Critically the two elements create a powerful virtuous circle where brand helps build response, and the response itself helps build the brand. (Specific examples of how this works are given below).

Support for this thesis of the rise of Brand Response comes from analysis of the types of campaign by decade using the new IDOL tool (IPA Databank online). http://idol.ipa.co.uk/

Brand Response is not exclusively a ‘00s phenomenon. There were significant portents in the ‘90s – the definitive case being Direct Line and the famous red telephone. At the time it was regarded as being a sector-specific success rather than as a broader breakthrough in approaches to marketing communications.

The growth of Brand Response has been fuelled by multiple factors:

• Since the mid ‘90s the growth of the Internet has disrupted the business models of existing sectors and created new business sectors such as aggregators. The ability to measure and model consumer ‘response’ has increased dramatically and continues apace. (The commercial value of this ‘response’ remains a matter of ongoing debate).

• Most businesses now operate in a relentlessly short-term environment. Daily, weekly and monthly targets are the norm, the quarterly report has for many become a long-term perspective.

• The downward pressure on marketing budgets of the last decade means that marketers simply cannot afford to divide the Brand and Response tasks in the way they used to.

• Consumers have become more ‘responsive’. It is easier than ever for them to engage with relevant marketing campaigns. They are more willing than ever to respond to the right offer. Social networks have created new opportunities for response in the form of participation and comment without invitation from brands.

• Over the last decade, the marketing communications industry has consistently promoted the value and virtues of joined-up or integrated thinking and execution. Setting aside well-documented interdisciplinary turf wars, this has created an environment where Brand Response has been likely to flourish.

Below are three of the best exemplars of Brand Response. Interested readers are invited to download the full papers from at warc.com. The accompanying commentary is not intended as a summary of the case but rather to show how it demonstrates a Brand Response approach. Data shown are entirely subjective highlights.

Each case approaches the task from both a strategic and executional perspective.
And in each there is a powerful demonstration of the virtuous circle where brand aids response and the response itself is part of the brand-building relationship.

O2 – Brand Response through Total Integration

This is the story of a corporate transformation from ‘troubled’ Cellnet to thriving O2. The new brand was launched into a mature and ferociously competitive market. They faced the significant challenge of building a brand while gaining short-term sales as quickly as possible. Over 80% of investment was sales-driving. The paper describes how O2 adopted a brand-centric approach to all activity.

Integration was delivered at two levels:

1) Visual – to deliver cut-through, which helped drive awareness and led to efficiencies.
2) Strategic – to deliver product and tactical propositions such as Pay and Go, Bolt-Ons and Home which successfully drove sales and longer term consideration.

Econometric modelling shows a short-term payback of 6.3:1 and an ultimate payback of 62:1.

What is so impressive about the case is the speed at which the results were achieved. Significant savings were delivered by the rapidity with which O2 established itself in the market. The Accenture chart shows the length of time each mobile brand took to achieve spontaneous awareness and at what cost. No other brand achieved their goals as quickly or as cost-effectively during this period. In just two years O2 became the most salient brand in the market.

Importantly strategic and tactical propositions created a brand-building experience – Pay and Go, Home and Bolt-Ons completed the virtuous circle of brand response by being distinctive and relevant to the consumer.

Sainsbury’s – Brand Response as an Organising Thought

The Sainsbury’s case is a significant example of a campaign evolution into a Brand Response model. Previous successful campaigns had featured Jamie Oliver and the famous recipe cards. The new strategy was founded on a clear definition of the business problem – a target of £2.5bn extra sales was translated into £1.14 extra per shopping trip. Try Something New Today was created to interrupt ingrained shopper behaviour and drive incremental purchase. The idea has since guided all communications, store design, merchandising, product innovation and company culture. It works with Jamie Oliver in TV ads and on the recession-busting Feed Your Family for a Fiver initiative instore.

Significantly the idea of Try Something New Today was not simply about building brand while driving purchase, the experience of creating and eating something new is a brand-building experience from Sainsbury’s in its own right.

The total effects of this campaign are £1.9bn incremental revenue over two years. Of particular note is the modelling proof, which highlights the value of the Try Something New Today idea at £550m in increased revenue. In other words Try Something New Today led to behaviour change unrelated to media spend which had a huge impact on sales.

118 118 – Brand Response as Cult Phenomenon

This is a great example of highly effective Brand Response activity in a sector land-grab. The deregulation of directory enquiries does not seem like an inspirational subject, yet the cult- like phenomenon of the runners propelled an unknown brand to market leadership and public affection in a short time. The task of driving immediate calls and building a distinctive and motivating brand could not be divided. As well as creating a famous brand, response was key to building the brand via behaviour and ingraining a new directory enquiries habit.

A bold strategy included spending £2m of the marketing budget on getting the so-called ‘golden double’ of 118 118 and beginning to advertise several months ahead of switch-off. This delivered 17 million calls at a time when there was no reason to call 118 118 other than the communications campaign.

The campaign idea was amplified by innovative media approaches which made the runners and their ‘Got Your Number’ catchphrase become a part of popular culture – appearing on Question of Sport, even celebrating the retirement of the elderly 192. The runners became the poster-boys for all journalistic coverage of the deregulation issue bringing high engagement to this dull subject. 118 118 thus owned a new category.

Post switch-off 118 118 dominated the market and charged a significant premium vs. competitors. Market share rose to 44% compared to long-established BT’s 34%.

So we have seen that Brand Response is a significant theme of the IPA Effectiveness Awards in the ‘00s. Two historically separate and apparently contradictory elements have been united in some of the most effective campaigns of the last decade.

Brand Response has generated new learning about strategic and executional approaches to business problems. By definition it is highly relevant to retailers and other service brands where the consumer experience is critical in fuelling brand perceptions. However sectors such as FMCG are not immune – the recent Walkers ‘Do Us A Flavour’ campaign seems to be inspired by Brand Response principles.

F. Scott Fitzgerald once said that the test of a first rate mind was the ability to hold two opposing ideas in the mind at the same time and still retain the ability to function.

Successful marketing communications in the ‘00s passed this test as it increasingly embraced Brand Response. And there is no sign of this trend abating.

Please get in contact with us to hear more about Brand Response.

The Rise of Brand Response or "Why take two bottles into the shower"

Greg Grimmer, partner, Hurrell Moseley Dawson & Grimmer, on why we should all take note of Brand Response...

This week I have had the honour of speaking at Nokia World - a collection of the finest brains in the mobile business - and the privilege of attending Conde Nast Digital's take on the multi platform world. Two high profile well-attended events, both fronted by the most senior executives in their respective companies.

Within the presentations though were two very conflicting messages. The theme of the mobile conference was that mobile must get ROI . It must deliver direct response to clients to change marketers perception of the channel (and crucially their spend behaviour). Over at Vogue House, they have invested for the long term by creating beautiful digital vehicles for their brands (mainly on beautiful Apple based products) and now have a long list of brands using these platforms for branding campaigns.

So here we are again - Brand or Response?

Many words have been written on this subject, normally by media proponents of one of these specialism's over the years, and usually with the conclusion that that they are totally separate disciplines. Instead of trying to add to these I have instead chosen to plagiarise my partner Neil Dawson's work on the subject. Being a researcher by training and an account planner by trade rather than write subjectively about the subject, Neil has done some thorough research using the IPA effectiveness award winners over the last 30 years to work out if Brand Response is a passing trend or something more important.

Brand Response sounds too good to be true. It asks us to live with two apparently contradictory ideas at the same time. It can be simply defined as a strategic and executional campaign approach where brand-building drives response and this response in turns builds the brand in a virtuous circle of effectiveness. Neil's analysis of the IPA Databank indicates there has been a change in the nature of the campaigns on show over time.

Brand Response emerged as a significant force in the '00s and the trend looks set to continue. This has had significant implications for strategy, creative, media and evaluative approach. While this may risk over-simplification, marketing communications seems to have moved through three distinct phases in the lifetime of the IPA Awards.

1.Brand or Response 80's

Marketers make a choice between two discrete activities. Brand-building and other longer term activities are separate from short-term sales or response-driving activities. They are generally delivered by different campaigns through different channels. Typically, TV is used for 'brand' and direct marketing. The majority of the IPA cases from the 1980s reflect this thinking.

2.Brand and Response 90's

The two elements are treated as distinct but complementary activities within a campaign assisted by some executional links. The Grand Prix-winning Tesco case of 2000 used Every Little Helps and a consistent tone of voice across different campaigns for brand and tactical work.

3. Brand Response 00's

A seamless blend of both types of activity is delivered through a single campaign. The purpose of all activity is to drive response (both short and longer term) while building the brand.

Building brands and driving sales are no longer mutually exclusive activities, they are now symbiotic. Critically, the two elements create a powerful virtuous circle where brand helps build response, and the response itself helps build the brand.

Support for this thesis of the rise of Brand Response comes from analysis of the types of campaign by decade.

Brand Response is not exclusively a '00s phenomenon. There were significant portents in the '90s - the definitive case being Direct Line and the famous red telephone. At the time, it was regarded as being a sector-specific success rather than as a broader breakthrough in approaches to marketing communications.

The growth of Brand Response has been fuelled by multiple factors:

  • Since the mid '90s the growth of the internet has disrupted the business models of existing sectors and created new business sectors such as aggregators. The ability to measure and model consumer 'response' has increased dramatically and continues apace. (The commercial value of this 'response' remains a matter of ongoing debate)
  • Most businesses now operate in a relentlessly short-term environment. Daily, weekly and monthly targets are the norm, the quarterly report has for many become a long-term perspective.
  • The downward pressure on marketing budgets of the last decade means that marketers simply cannot afford to divide the Brand and Response tasks in the way they used to.
  • Consumers have become more 'responsive'. It is easier than ever for them to engage with relevant marketing campaigns. They are more willing than ever to respond to the right offer. Social networks have created new opportunities for response in the form of participation and comment without invitation from brands.
  • Over the last decade, the marketing communications industry has consistently promoted the value and virtues of joined-up or integrated thinking and execution. Setting aside well-documented interdisciplinary turf wars, this has created an environment where Brand Response has been likely to flourish.

Whether it is Sainsbury's 'Try Something New', 02 bolt-ons, the 118 118 runners or the Russian Meerkat, some of the most iconic and effective campaigns over the last decade have been undoubtedly Brand Response.

It a significant theme of the IPA Effectiveness Awards in the '00s. Brand Response has generated new learning about strategic and executional approaches to business problems. By definition it is highly relevant to retailers and other service brands where the consumer experience is critical in fuelling brand perceptions.

However, sectors such as FMCG are not immune - the recent Walkers 'Do Us A Flavour' campaign seems to be inspired by Brand Response principles.

There is no sign of this trend abating, we should all take note...

See the article on MediaTel

Thursday 16 September 2010

HMDG joins Coty's roster of agencies
















The cosmetics and toiletries company Coty has appointed HMDG to its global roster of agencies. The agency landed the brief without a pitch.

HMDG will be responsible for the advertising for an Adidas product launch next year. Activity will run globally across online, point-of-sale and outdoor.

Earlier this year, Adidas introduced a special edition of the male fragrance Pure Game, to celebrate the football fans and participants of this summer's World Cup.

Since its partnership with Coty in 1985, the brand has become a leader in the male fragrance market and is distributed across 82 countries.

In July, Coty hired JWT UK to handle the global digital advertising for Rimmel London after a three-way pitch.

The HMDG founder Nick Hurrell said: "Coty is a creative, commercial and hugely influential business working with many of the world's best-known brands. We are delighted to have joined its roster of agencies."

See the article at Campaign here

Wednesday 8 September 2010

Nestlé Milky Bar: Raisin & Biscuit variant’s launch ad successfully evoke grown-ups’ fond memories









By Nick Hurrell - Partner, HMDG

This is a very likable ad, which shows various, unlikely, members of the public auditioning (I guess) to appear in the next Milky Bar Kid ad.
There is something universal about the appeal of this approach to adults of a certain age, who, as children, will have dreamed about being cast in the role. I feel I have some authority to comment on the subject, because I have always had Milky Bar Kid specs and, as a child, also possessed the requisite amount of long blond hair. However, there were height restrictions, apparently, so I was not picked.

That said, a lot has changed since then – not least the fact that, in the marketing world, we are now plagued by endless TLA’s (Three-Letter Acronyms). Nowadays, they sell chocolate bars with BFY (Better For You) ingredients, as here; the ad breaks are dominated by POS (Punters On Screen), and the Milky Bar Kid (MBK) no longer seems to carry a gun.
Oh, and Nestles has changed its name to Nestlay.

If I were picky, I would say that we were getting lots of MBK in this ad, and insufficient Raisin & Biscuit SKU – but, be fair, the spot will prompt me to look out for the Milky Bars next time I’m in a CTN, and I might even pick up the BFY version, even though there’s no chance that it will taste as good as the original that I remember.

The ad relies on the ubiquitous crowdsourcing, or at least crowdcasting. (I’m starting to wonder just how actors are making ends meet now that they no longer get to appear in commercials.)

The thrust of the ad is that viewers should go to the website to audition, which I did – and a very nice site it is too. The prize is to get selected – which, again, I didn’t; but good luck to all those who do.

For me, the best new element in the campaign is the endline: ‘Ungrow up’. Reading back over what I’ve written, the ad has had exactly the effect on me that it was meant to: to make me reminisce about Milky Bars and get me back on the white stuff at the CTN.

Not just that, but the auditions are restricted to the over-16s, so the strategy is clearly to recruit MBGs (Milky Bar Grownups). This shouldn’t be too much of a struggle.

This ad may not guarantee that the Raisin & Biscuit variant’s launch breaks all records, but next time I’m being pestered for chocolate by my four MBK lookalikes, the Milky Bars will be on me.

View this article in Marketing magazine’s Adwatch, 8th September 2010.

Friday 3 September 2010

Auto Trader 'Auto Trader is now mobile' by HMDG

Auto Trader, the UK motoring website, has launched a new £2 million campaign to promote its mobile platform.

Created by Hurrell Moseley Dawson & Grimmer the ad features an animated robot named Auto, who personifies the characteristics and functionality of the Auto Trader brand for consumers.

In the ad, the robot appears as an advisory companion to customers who are deciding which car to buy. The TV campaign will launch during the England vs
Bulgaria game this Friday and is supported by digital and Out-Of-Home activity. John Messum, Creative Director of HMDG, said the robot would "freshen up the campaign".

Log in to Campaign Live to view this article

Kärcher Paper is Shortlisted for IPA Effectiveness Awards 2010









HMDG was pleased to find out that our submission to the 2010 IPA Effectiveness Awards has been shortlisted. Full details can be found here

Here’s a summary of the paper, looking at our 2009 campaign for Kärcher Pressure Washers.

Men Just Want To Have Fun: How getting to grips with the complex mind of man became the catalyst for growth for Kärcher Pressure Washers

Despite being available in the UK for many years, high pressure washers remained a relatively underdeveloped category. By assessing the male psyche, and employing brand advertising to a category with no history of it, Kärcher were able to deliver results. Carefully planned television slots were used to target the male audience, through exploring the playful satisfaction connected with power tools. Despite a small marketing budget, this campaign was a catalyst for strengthening Kärcher’s relationship with consumers and retailers. The campaign delivered a short-term payback of between three to five times the total 2009 budget of £570,000.

See the full TV ad, and other work, here