Jack’s New Home

Brown Forman just announced a revised and revamped package for Jack Daniel’s. Bloggers and industry observers are starting to weigh in on the pluses and minuses, so I thought I’d jump in as well.

Once upon a time, manufacturers were frightened of package changes. Concerns about loss of heritage and denigrating the brand’s equity were always the main “don’t do it” arguments. But the most damaging concern was “what will the consumer think.” Over the years, I’ve even heard it said that a package change would suggest a product change and result in erosion of appeal among consumers.

Baloney. Well, sort of.

If a packaging shift involves walking away from the key elements of a brand’s equity then it is doomed. The best recent example of that is the fiasco with Tropicana. The main icon, an orange with a straw, was removed in favor of a nondescript glass of juice. As you may recall, the package change effort was a disaster and Pepsico reverted to the original in a hurry.

However, if a manufacturer evolves or tweaks the packaging by removing the clutter, making it less wordy and updating the message, I believe it enhances the consumer relationship and brand equity. I haven’t seen the new package as yet but from what I’ve read, the new Jack Daniel’s look does just that. Good for you for making the brave call.

One last thought — I call it the chicken soup approach to marketing. Turning a brand’s performance around based on packaging changes, major or minor, is like chicken soup when you have a cold. It may not help but it can’t hurt.

Leave A Comment

“It will never sell” vs. “You never know”

I was chatting with James Espey the other day and the subject of Baileys Irish Cream came up. For those of you who don’t know him or of him, suffice to say that James is a legend in the spirits industry as a very senior manager that has successfully run companies, categories and brands. In addition to creating the Keepers of the Quaich (see Sept. 28, 2010 posting) James’ innovation history includes the invention of Malibu, significant involvement in Baileys and much more.

He is still at it with a range of new and unique ventures including Last Drop Distillers among other ventures.

Anyway, the subject turned to what it takes for a brand to withstand the naysayers (generally corporate types who are risk adverse and would rather buy than create) and the prognosticators (the self proclaimed experts at prediction of success and failure). James told me the story of a well known industry observer who took one look at the Baileys idea and proclaimed, “that s**t will never sell.” Well, the forecast was wrong but never mind, that gent went on to make millions in the industry anyhow.

The Baileys story I had heard came from the late Jerry Mann (former Seagram CEO) right after I took over new products. His advice began with a typical Jerry Mann comment. “Listen pal,” he said between puffs, “in this business, you just never know what will sell and what won’t.”

It seems that when Jerry was running a distributor operation in California a friend called and asked for a favor, which was to buy some 5,000 cases of this new cream liqueur. He thought it was doomed for failure but a friend asked a favor and Jerry complied. As he put it, “we stuck the crap in the back of the warehouse and forgot all about it.” Then one day out of the blue, a sales manager called and informed him that retailers were clamoring for “that crap at the back of the warehouse.”

7 million cases per year later, despite ups and downs, lower priced knock-offs and diet and weight concerns, Baileys is still going strong and a true global brand.

According to James, it was launched using a well thought out new product approach, a strong dedicated team, management commitment and an understanding of consumer needs and wants. Which I believe gave the brand its momentum. Once you get momentum, boys and girls, even a large bureaucratic behemoth can’t slow you down.

Just ask Seagram’s 7 Crown.

Leave A Comment

Super Bowl Ads

So by now, you’re over the game (pretty exciting by super bowl standards) and you’re tired of hearing the ad and marketing pundits give their views on the bad, the worst and the ugliest.

Got time for one more opinion — one that relates to the booze business?

In the past, the Budweiser ads were often more interesting than the game. Not this year.

Is it just me or has the quality, and therefore the effectiveness, of Budweiser advertising declined ever since InBev took over? I used to think that the international owners just didn’t understand the US market and that cost reductions were more important than brand building. I think I was wrong. The Budweiser ads were expensive to produce and cost a fortune to run. So it has to be something other than the owners.

Ad Age reviewed the Super Bowl ads and gave 3½ stars to a Motorola ad and none to A-B. Yet, both came from the same agency, Anomaly. So either Motorola got the better creative team or the marketing folks there are sharper.

There’s a company called Ace Metrix, which uses online panels of TV watchers to score the ads based on metrics such as persuasiveness and likeability, among others. They reported that the Dorito ad was #1 with 662 points (out of a possible 950) and Bud Light was #23 with 567.

So here’s my takeaway/insight – in the beer category, as in many others, consumers select brands on price, promotion and “group brand loyalty.” Inclusion in the group is based on many things, including image as a byproduct of communication or advertising.

Seems to me that the opportunity to reach the single largest audience at one time would compel a beer marketer to present ads that capture the audience’s attention and generate positive word of mouth.

But, then again, what do I know. I’m a spirits and wine guy. We can’t afford to advertise on the Super Bowl.

Leave A Comment