The Power of Branding

Powerful Brands: Unveiling the Journey of Lucozade and Ribena

For many Britons, Lucozade and Ribena evoke cherished memories of childhood – an era when Ribena arrived in glass bottles, undiluted, and Lucozade was a remedy reserved for the unwell.

The Origin of a Power Brand

Today’s news of both brands being acquired by a Japanese drinks company for a staggering £1.35 billion may stir a sense of nostalgic loss among a certain generation. But how did we arrive at this moment?

What they are buying

In my branding training I reveal how a ‘brand is a promise’ – shorthand for a promise of a collection of benefits that the consumer will receive. In essence, an answer to the question ‘why?’ – why should I invest in your promise?

It is never about the logo. Brands can change their logo dozens of times without any significant change. A strong brand has a relevant promise that is delivered consistently. And this consistency allows the brand to grow – should it want to.

This is where the story of the phenomenal growth of Ribena and Lucozade begins. Those of us old enough to remember will think back to the 1980’s when something started happening to these family favourites. Lucozade realised their market growth was limited by the number of sick people at any one time and Ribena realised that undiluted juice means you must drink at home.

What They Are Acquiring

In my branding training, I emphasise that a ‘brand is a promise.’ It encapsulates a commitment to a set of benefits for the consumer, answering the crucial ‘why?’ question. Contrary to popular belief, a brand transcends its logo; it thrives on a relevant promise delivered consistently. This consistency is the catalyst for a brand’s growth.

The fascinating journey of Ribena and Lucozade began in the 1980s, when both brands underwent a transformative process. Lucozade, once associated primarily with sickness, made a pivotal decision to reposition itself as an energy and sports drink. This shift was marked by advertising campaigns featuring sports icons like Daley Thompson and the Adamski N R G branding initiative.

On the other hand, Ribena, tracing its roots back to 1936, initially gained recognition for fruit syrups. However, it was the revelation of high vitamin C content that transformed it into a nutritional aid during World War II. Ribena, too, broadened its horizons through strategic branding campaigns and became the first brand to be delivered in ready-to-drink cartons.

Future Brand Growth: A Strategic Horizon

The monumental £1.35 billion acquisition of Lucozade and Ribena not only reflects their current brand value but also holds the promise of a strategic journey towards future growth. The new custodians, Suntory, are undoubtedly eyeing a horizon of opportunities within the current market channels, envisioning a continued ascent in the brands’ trajectory.

The Current Brand Value

The substantial figure attached to this acquisition is not merely a testament to the present stature of these iconic brands. It serves as a financial benchmark, encapsulating the intrinsic value built over the years and signaling a solid foundation upon which future endeavors can be launched.

Potential for Innovation

Suntory’s investment extends beyond the immediate gains, encapsulating a belief in the potential for innovation and expansion within the brand portfolio. The acquisition opens doors to explore novel avenues, product lines, and market segments that align with the ethos of Lucozade and Ribena.

Strategic Market Penetration

The new owners, well-versed in the intricacies of the beverage industry, are likely strategizing on how to leverage the existing market channels to penetrate deeper into the UK market. This strategic approach involves capitalizing on the brands’ established presence while exploring new avenues for engagement.

Global Brand Presence

Beyond the confines of the UK, Suntory may envision a global footprint for Lucozade and Ribena. This could involve entering new markets, forging international partnerships, and adapting the brands to resonate with diverse cultural landscapes, thereby unlocking new avenues for growth on a global scale.

Innovation in Marketing and Product Development

The future growth trajectory may involve a renewed focus on marketing strategies that resonate with evolving consumer preferences. Suntory might explore innovative product development, aligning with current health and wellness trends, sustainability initiatives, and other factors that shape consumer choices.

Evolving Consumer Dynamics

Understanding and adapting to evolving consumer dynamics will be pivotal for future brand growth. Suntory may conduct thorough market research to identify emerging trends, preferences, and demands, allowing Lucozade and Ribena to stay at the forefront of consumer consciousness.

In conclusion, the £1.35 billion investment not only secures the present but also positions Lucozade and Ribena for a dynamic and strategically guided future. Suntory’s stewardship represents not just ownership but a commitment to nurturing and enhancing the legacy of these beloved brands in the ever-evolving landscape of the beverage industry.

For a brand training course that helps you identify future growth look here…

Brand Strategy

Brand Strategy and Growth: Navigating the Path to Brand Brilliance

In the realm of business, brand strategy isn’t merely a set of guidelines; it’s a compass that directs a brand towards sustained growth and enduring success. In our comprehensive brand training, we delve into the intricacies of crafting and implementing strategies that not only define a brand but also propel it towards new heights.

The Essence of Brand Strategy

At its core, brand strategy encapsulates the art of defining a brand’s unique promise. It’s not confined to catchy logos or superficial aesthetics; rather, it’s an intricate tapestry woven from the threads of purpose, values, and a distinctive proposition. A brand strategy serves as a roadmap, guiding every facet of the brand’s journey, from product development to marketing endeavors.

Strategic Brand Extensions

One aspect we explore in-depth is the art of brand extensions – a delicate dance between expanding a brand’s offerings and maintaining the integrity of its core identity. A successful brand extension isn’t just about introducing new products; it’s about aligning those extensions seamlessly with the brand’s fundamental promise. By understanding and preserving the core, we empower brands to organically grow into new markets and product categories without diluting their essence.

Building a Recognizable Core

A brand’s core is its heartbeat, the essence that resonates with consumers. Using renowned examples like Kit Kat, we emphasize the importance of establishing a recognizable and consistent core. This core becomes the anchor that allows a brand to navigate through market shifts, trends, and the passage of time. A strong core is not just a foundation; it’s a platform for innovation and expansion.

The Strategic Long-Term View

Brand managers often grapple with short-term gains at the expense of long-term success. In our training, we advocate for a strategic long-term perspective, where each decision contributes to the enduring prosperity of the brand. We provide tools and insights to help brand managers see beyond immediate trends and foster a brand’s resilience over time.

Avoiding the Pitfalls of Misguided Extensions

While brand extensions can be powerful tools for growth, they come with risks. Through case studies like Tango’s ill-fated foray into shower gel, we highlight the potential pitfalls of misguided extensions. Participants learn to discern between strategic expansions that enhance a brand and those that threaten to erode its established core values.

Strategic Marketing in the Digital Era

In an era dominated by digital interactions, our training also covers strategies for effective digital marketing. From social media engagement to online brand presence, we equip brand managers with the tools to navigate the dynamic digital landscape and ensure that their brands remain not only relevant but also influential.

In essence, our brand strategy and growth training offer a holistic perspective – blending traditional wisdom with contemporary insights. We empower brand managers to craft strategies that transcend the ordinary, fostering brands that not only survive but thrive in an ever-evolving business landscape.

The Core of Your Brand

Unveiling the Heartbeat of Success

In the intricate tapestry of brand development, the core stands as the pulsating heart, orchestrating the symphony of consumer perception and loyalty. In our exploration of the essence of a brand – a journey central to our brand training – we unearth the profound significance of nurturing and preserving this indispensable core.

Defining the Brand Core

The core is not a static entity; it’s a dynamic force that encapsulates the fundamental identity of a brand. It is the distilled essence that consumers recognize and connect with on a profound level. Beyond mere products or services, the core articulates a brand’s purpose, values, and the unique promise it makes to its audience.

Kit Kat as an Exemplar

For a tangible illustration of a well-defined core, we turn to the iconic Kit Kat. Ask individuals to define Kit Kat, and a consensus emerges – thick chocolate with a wafer middle. This uniform understanding signifies a well-crafted core that has permeated the collective consciousness. Kit Kat’s success lies not just in its product range but in the unwavering recognition and consistency of its core identity.

The Crucial Role of Consistency

Consistency is the linchpin that sustains a brand’s core over time. We emphasize that a recognizable and consistent core isn’t a restrictive force; rather, it’s a catalyst for innovation and growth. Kit Kat, for instance, seamlessly extended its brand to include variations like Kit Kat Chunky and Kit Kat Minis, all anchored in the unchanging core identity.

Brand Extensions with Integrity

In our training, we delve into the delicate art of brand extensions, underscoring the imperative of preserving the core. Successful extensions are not mere diversions from the core; they are organic progressions that align seamlessly with the brand’s fundamental promise. Participants gain insights into how strategic extensions can enhance a brand’s reach without compromising its foundational identity.

The Risks of Straying from the Core

We caution against the pitfalls of deviating from the core, citing instances like Tango’s improbable venture into shower gel. Such misguided moves risk eroding established core values and can result in a short-lived boost that jeopardizes long-term profitability. This cautionary tale serves as a reminder of the importance of staying true to the essence that forms the bedrock of brand success.

Crafting a Resilient Future

In essence, our training equips brand managers with the tools to not only identify their brand’s core but also to nurture it judiciously. A resilient core becomes the linchpin for weathering market shifts, consumer trends, and the evolving business landscape. Through this holistic understanding, brand managers can navigate the complexities of brand development with a strategic vision that ensures enduring success.

When A Brand Extension Goes Awry

Navigating the Hazards of Misguided Expansion

In the dynamic realm of brand management, the strategic art of brand extension is a delicate dance that, when executed with finesse, can propel a brand into new heights. However, our brand training places a spotlight on cautionary tales, such as the perils encountered when a brand extension goes awry. This exploration serves as a valuable lesson on the hazards of misguided expansion and the critical importance of aligning extensions with the core identity of a brand.

The Dynamics of Misguided Extensions

In our discussions, we dissect instances where brands, driven by a desire for diversification, take an unexpected leap into unrelated territories. One such notable example is Tango’s improbable foray into the realm of shower gel. The seemingly bizarre expansion raises questions about the strategic coherence of associating a brand primarily known for soft drinks with an entirely unrelated product category.

The Disconnect with Consumer Perception

Consumer perception plays a pivotal role in brand success. When a brand extends into a domain far removed from its established identity, confusion and skepticism among consumers are inevitable. Our analysis emphasizes the stark contrast between consumer expectations – where Tango is synonymous with a soft drink and the color orange – and the incongruous association with shower gel, a product completely unrelated to the brand’s core essence.

The Erosion of Established Core Values

The inherent risk in such misguided extensions is the potential erosion of established core values. Brands invest years in cultivating positive associations and core values, which can be jeopardized by ill-conceived expansions. In the case of Tango, the unconventional leap into the world of shower gel not only confuses consumers but also undermines the established core value of being a soft drink.

Short-Term Gains versus Long-Term Sustainability

While a brand extension may yield short-term attention and novelty, our training underscores the critical importance of long-term sustainability. A momentary boost in sales should not come at the expense of the brand’s enduring profitability. We caution against compromising the established core for fleeting gains, emphasizing the need for a strategic, well-aligned approach to brand extension.

Preserving Brand Integrity

Through the Tango shower gel example, we underscore the broader lesson: a brand’s core identity should be safeguarded with meticulous care. Any extension, no matter how innovative, should align harmoniously with the brand’s core values and consumer expectations. A short-term spike in sales should not overshadow the potential long-term damage to the brand’s integrity and resonance.

Strategic Decision-Making in Brand Management

Our training offers brand managers a strategic framework for decision-making, guiding them through the complex landscape of brand extensions. By learning from cautionary tales, participants gain insights into the nuanced balance required between innovation and brand integrity, ensuring that every extension contributes positively to the brand’s enduring success.

Brand Training: Nurturing Success

Understanding brand strategies and mastering techniques for extending a brand while preserving its core is crucial. Our brand training course covers the essence of a brand, discovering the brand core, and pursuing long-term successful brand strategies.

If you’re eager to explore these concepts with your team in-house, feel free to call us. Let’s discuss your branding questions and tailor a free training proposal to meet your requirements.

by Carl Duncker