Beginning of Technology
Reorganize elements already practiced:
So far, specialists have segmented the discipline around two lines of thinking: strategic marketing – including positioning – and operational marketing, in which the marketing mix is found. A too limited vision, according to Thierry Tryant-Démaretz.
“Design marketing is not new, it’s been practicing for years without being named,” he says. For example, the gravitational force existed before it was so named. To name it, to give it the status of object of study, then made it much better to describe and understand it. In the same way, the book only highlights and reorganizes elements that were practiced in strategic and operational marketing, but which were drowned in the mass, indistinct and confused. This penalized the development of the various components of the design, including the identification of systemic interactions between these components. “In fact, the consultant has been practicing design marketing with his clients for years but also teaching his students.
Concrete marketing cases:
The book is aimed at both students and professionals and is particularly suitable for companies facing the challenges of marketing innovation. “But it can be useful for auditing existing offers,” adds Thierry Tryant-Démaretz. Through fifteen or so famous marketing cases (Ptit Louis, Kinder Pingui, Tahiti Douche, Gillette, Pouss ‘Mouss’, Breton Farmed Butter …) the author analyzes what design marketing is and gives some tips for integrate it into the strategy. An effective way for him to return to key concepts of marketing such as Consumer Insight, the difference between concept and idea or the need to understand his target before launching a new product or a new offer.
As a highlight of this book focused on design marketing, here is a case where will meet and meet most of the concepts that we have discussed over the pages. This is the case of Pikifou, which we will put in perspective with two cousin cases, P’tit Louis and Kinder Pingui. This is to better identify variant and invariant elements, to better perceive the marketing gymnastics at work throughout this case. From CCS strategic orientation to operational implementation, ballet positioning options and marketing mix interrelations, everything is there, everything depends on everything.
Initial strategic context:
1. P’tit Louis:
At the time, the company Fromarsac, Bongrain group, is in enviable situation. Happy holder of the brands Tartare, Saint Môret and Chavroux, the excellence of its marketing ensures growth and prosperity.
Only one real problem: these three brands are roughly speaking the same target (adults, without further clarification) for the same consumption situation (the classic cheese moment). The company very legitimately wishes to continue its growth by developing new offers. To imagine one on the same target for the same moment of consumption would surely lead to a strong cannibalization of the three brands mentioned above. Probable additional benefit: lean compared to efforts and investments.
The strategic concession granted by the Bongrain Group to Fromarsac is that of cheese specialties made using “fresh pasta” technology (versus “soft pasta” such as Camembert, “pressed pasta” such as Emmental or “marbled pasta” such as Roquefort, for those less fond of cheese erudition). If we add to this starting point the double objective of broadening the targeting and / or the circumstances of consumption, here we are faced with a clear and precise Strategic Terms and Conditions (CCS) when re launching the innovation process. wish.
2. Kinder Pingui:
At the time of the events, the strategic context for Pingui’s baptismal font is as follows: growth and prosperity are also at the rendezvous for Ferrero , a proud owner of brands such as Nutella, Ferrero Rocher and Kinder. The concern for Kinder: essentially dedicated to the taste of children, the brand has a genetic attribute potentially dilemma term: chocolate. The epoch is to healthy nutrition in general and to taste it in particular: milk, yes; fruits, yes; of the cereal intake, again yes. Chocolate? In the best case, its consumption of snack will stagnate and with it will stagnate the future growth of Kinder.
To this concern is added an opportunity for Kinder: in supermarkets, the brand is presently present in the dry grocery department. The cool ray is an attractive goal:
Better image of freshness, of course (another societal trend of the time, “who says fresh says healthy …”); – better image often translated by a premium freshness in the price; – possibility of achieving different sensations in the mouth and interesting; – not to mention that the number of refrigerated shelves is higher than those of the dry grocery store; – and at home the refrigerator door is opened ten times where the cabinet doors are only once, resulting in a sharp increase in product exposure to consumers.
For Kinder, the CCS is at this stage just as clear and precise as that of the future P’tit Louis: developing an offer maximizing milk and cereal while minimizing chocolate, also offers spearheading a conquest of the fresh ray for the first time in the life of the brand.
The design marketing responses to these CCS:
1. P’tit Louis:
As this is not the subject of this case of synthesis, we will not dwell here on the long development of P’tit Louis, development particularly rich in twists and turns. Let’s just notice that made with a technology of fresh pasta, it targets a target children for a moment of non-meal consumption and in this sense it responds well to the objectives and constraints of its initial CCS. The three key keys to marketing success are: clear strategic directions, flawless design, and outstanding marketing. All in synergy.
2. Kinder Pingui:
Like P’tit Louis, based on the clear and ambitious CCS assigned to him, served by a particularly professional and inspired design and marketing, Kinder Pingui meets with success. Or just like, because there is a catch: flawless CCS P Product and P Price, the brilliant mechanics Kinder flu in the articulation Place / Promotion. No consumer will have the idea to pick up a Kinder product from the fresh dairy department. Drowned in the midst of hundreds of long-standing, incongruous, unseen competitors, who would give the cute little penguin’s life dear if the Promotion P did not come through the advertising powerfully activate the pullover to attract a consumer ignorant of his existence,
And there is a second problem: no longer in the friction of the mix, but further downstream, at the level of the commercial organization implied by this brilliant strategy. Ferrero does not have a sales force dedicated to the fresh department. However, in supermarkets, the store managers are not the same as those in the dry grocery store. Here, the devil is the commercial extra cost that will have to be agreed to support in its new radius … a single and unfortunate penguin with insufficient sales potential to justify this debauchery of dedicated means.
In summary, millions of euros to invest in media for several years in order to constantly work presence in the mind of the consumer – “yes yes, Kinder Pingui is to look at the fresh department, Madam”, and additional commercial costs on the ground. In perspective, a ROI (Return On Investment) for the least problematic that should have made run the implementation of this strategy. Who should have decided Ferrero to put the book back on the job? Why did Ferrero persevere? Why is Kinder Pingui still a success? This is what we understand after a short detour by the cousin case: Pikifou.
1. Background of the birth of Pikifou:
After the success of P’tit Louis, the author and his team continue benignly the strategic line of Fromarsac exposed at the beginning of this chapter. New targets, new benefits, new moments of consumption. Point.
But for the better and for the worse comes one day in the mind of the author the following flash: and if we rinsed the machines that make the P’tit Louis (machines transposed analogically from the pharmaceutical universe, machines to … suppositories, yes, if), if we used this same long-developed industrial tool to make the first Little Swiss child that we can “eat directly with the fingers”? Some time later, the offer is ready, with results in full mix quantitative test (cf chapter on the subject) close to perfection: more than 90% target purchase intentions. A performance even more impressive than that of P’tit Louis, certainly less disruptive on its market (versus Kiri, etc …).
2. The Weaknesses of Pikifou Design Marketing and Its Consequences in Implementation:
Praised in full mix test, how such an apparent diva, Pikifou, she could well be removed from the market after a few years of relentless therapeutic? The answer: for Pikifou, two positions are possible (see the Chewing Gum case in chapter 1.3.1), none of which can find synergy in the mix and / or in the action in the field:
Concept that comes with an insight oriented towards the practicality, the cleanliness of the child, etc …, of the profits pointed towards “finished the spots of Petit Suisse on the shirt” or “more fun to eat”, or ” no spoon, no dishes “. And in front of the reference universe of the little Swiss, of course.
The problem: the price / kilo of Pikifou can not come out cheaper than that of P’tit Louis because of the economic model Fromarsac (models of high margins rather than large sales) and the cost price of the product in pharmaceutical industrial technology transposed . As a result, a price around 12 € / kg. The average price of small Swiss flavored children (P’tits Musclés, P’tits Filous …) does not pass the threshold of 4 € / kg. When we compare the benefits of Pikifou and the price differential (4 times more expensive), a first hiatus appears.
Another problem therefore: to situate itself in the reference universe of the Little Swiss has in this specific case of meaning only pursued by a P of Place in the radius of the same Little Swiss. It is therefore amplifying the comparison of price comparison with consumers, since Pikifou is then directly next to its direct competitors.
With another consequence a third problem, the same difficulty as Kinder Pingui: in supermarkets, the managers of ultra-fresh dairy (yogurt, small Swiss …) are not the same as those responsible for the cheese department. How then commercialize Pikifou, how to make profitable a dedicated sales force (whether it is in own or multi-card), in addition to the formidable sales forces of Danone or Yoplait who will not let trample in react? And all this for if not a poor little lonely penguin, here a poor little shell of flavored fresh cheese?
Invert the positioning problem: Pikifou is now “the first small shell of sweet flavored sweet cheese that can be enjoyed anywhere at tea time”. Concept built in differential to P’tit Louis, in the world of fresh cheese in portions, with for insights and main benefits a speech on nomadism, freedom.
The hicks: now back home to his original reference universe, fresh cheeses, now located in the same fresh cheese department next to his big brother protector P’tit Louis (P de Place), Pikifou is no longer magically exposed at a direct price comparison with the Swiss children (it takes a mental process to remember a prize in such a department and another price in another department), and Pikifou magically no longer needs a dedicated sales force or work overload for the existing Fromarsac sales force. Everything is back in the order, it seems.
But where is the problem? Well the problem is now the same as that of Kinder Pingui: who will think come to seek a fresh taste flavored cheese shelf, radius marked by salty and evoked consumption circumstances disconnected from the problematic taste? What we save in budget and terrain hazards, we must now invest in push pull to constantly maintain Pikifou in the presence of mind (advertising, pull) and presence under the eyes (promotion, push). Just like for Kinder Pingui, the economic model equation does not hold. Regardless of the positioning angle chosen, the Pikifou building is deteriorating due to the impossibility of synergizing its mix components and their consequences for operational implementation.
Everything is in the report to the CCS, the strategy:
– For Ferrero, Pingui is a bridgehead, the first step of a voluntarist international strategy: the milk chocolate to taste fresh ray, because of the PESTEL which we swept a few points higher in this case analysis. Whatever the initial losses to Pingui, they are imagined as investments that prepare for a fresh launch in the coming years. Below the reality of the “Kinder Corner” in fresh dairy department in supermarket today:
– For Fromarsac, there is no strategy to conquer the ultra-fresh dairy ray. There is no concession from the trusteeship group, Bongrain, to go in this direction. There is certainly a great opportunity to design offer (at the time of the facts, Little Swiss suck do not exist), there is certainly a nice declination of industrial process at low cost