| MI-WADI |
 |
From the brink to market leader |
Agency:
Client:
|
Cawley Nea TBWA
C&C (Ireland) Ltd |
| Team: |
Jane Fortune
Jimmy Murphy |
SUMMARY
The following is a remarkable story
of a brand being saved from extinction
and returned to the top of its category
thanks to the vision of a marketing
team.
Cawley Nea/TBWA and C&C entered
Mi-Wadi in the ADFX Awards in 1998.
The entry was awarded a silver for a
study entitled ‘From The Brink to The
2nd Biggest’. Not a company to rest on
its laurels, C&C continued to invest in
advertising. We are delighted to reenter
the ADFX Awards with a small
but significant amendment to the title: ‘Mi-Wadi. From The Brink To The
Market Leader’. This accomplishment is
a testimony to the power of consistent,
long-term investment in advertising. In
the period 1996-2004, Mi-Wadi went
from 16.4% to 37.4% market share
(Source Canadean) making it the
number one cordial brand. It has
consolidated its position by adding
varieties and developing line
extensions such as Mi Juice Boost. Not
only has this growth ensured the
health of the brand but also it has
maintained the health of the category
as a whole, which grew at 3% over the
period (Source Canadean).
BACKGROUND
Mi-Wadi is a seminal Irish brand.
Trusted by mothers and loved by
children since its launch in 1927, it was
the pioneer and, in many ways, the
category standard. Mi-Wadi means
cordials as much Ballygowan means
water and Tayto means crisps.
However, by the mid-nineties, Mi-Wadi
had been under attack for some time.
UK brands like Robinson’s and Kia Ora
had invested heavily in this market and
had pushed Mi-Wadi into third spot.
By 1995, it was a brand teetering on the edge. It was a rapidly declining line in a gradually declining category. Under-investment in marketing and fierce market competition left Mi-Wadi at the bottom of the cordial
pile.
The multinational competitors had
the advantage of high quality, UK
produced advertising copy and the
market just didn’t seem big enough for three major lines. There was significant internal debate as to whether the required investment levels were warranted. |
 |
| C&C was streamlining its business. The multiples were getting
impatient. A review to assess the
viability of the Mi-Wadi brand was
undertaken. |
Following this review, C&C made a
strategic decision that Mi-Wadi was a
viable brand and put in place a
marketing programme to allow it to
fulfil its potential. This represented a
significant risk at the time.
MARKETING OBJECTIVES
In order to maintain relevance to
the big trade buyers and consumers,
Mi-Wadi needed heavy investment in
marketing and a considered, but
ambitious, marketing plan. It was
agreed that it needed to be at least a
number two player in the category.
Advertising was identified as a key
lever in the effort to reinstate the
strong connection the brand once had
with Irish families.
Therefore, the marketing objectives
were simple:
-
To rescue the Mi-Wadi brand. This meant re-connecting with consumers by rejuvenating the image while amplifying the significant equities that remained in the brand.
-
To secure a strong number two position. To bring the fight to the multinational competitors and
increase sales.
-
To build a long-term future for Mi- Wadi. Because the investment required was significant, continuing success would be required to repay the investment and allow for future endeavours.
THE STRATEGIC SOLUTION
TARGETING
The key to the success of the brand
would lie, as always, with the
consumer. But whom were we talking
to? Mums, kids, mums & kids?
Focussing on the correct audience
became a critical decision.
THE APPROACH
And when we identified the
audience, what was the most relevant
thing we could say?
Extensive qualitative and qualitative
research was conducted to identify...
• The most relevant audience and to
gauge the influence of mothers (still
the traditional gatekeeper) over
their children’s decision process
making and vice versa.
• Motivating insights to connect
emotionally with the audiences.
Research demonstrated that,
although pester power was a factor;
the mother was still the key decision
maker when it came to cordial
purchase.
Not surprisingly, we also discovered
that mums’ primary motivation was for
a quality product - one they could trust
to be good for their kids. Also, it must
deliver on taste and the proper
ingredients.
However, it was essential that the
brand be one that kids would accept
(or even better, one they would seek
out).
This conclusion was singularly the
most important decision to the success
of the communication programme. It
gave us focus for both the creative and
media strategy allowing the
investment to work harder.
ADVERTISING STRATEGY
PHASE ONE - 1996-1999 BUILDING A
PLATFORM
An advertising strategy was
developed to establish a quality
platform that would allow Mi-Wadi to
demonstrate its product credentials to
mums. From there it had to move on
to engage both audiences with more
emotionally connected executions on
the desirability of Mi-Wadi for all
generations.
THE IDEA
The creative platform used the line ‘Mi-Wadi, Mi-goodness’
to deliver on the motivating consumer
promise of ‘you can trust this brand’,
an essential ingredient for success with
mothers.
This work broke on posters and
press and delivered all of the original
marketing objectives and an ADFX
award in 1998.
PHASE TWO - 1999-2004 DEEPENING
THE EMOTIONAL CONNECTION
With the decline reversed and the
brand now growing, the challenge
became one to ensure long-term
viability by strengthening the bond
between both audiences in an
emotional sense. This led to our most
disruptive strategy.
A DISRUPTIVE APPROACH
Accepted wisdom was that real
success came from focussing on either
audience i.e. mums or kids. By
speaking in the real, train-of-thought
style of a kid we were able to connect
with them and with the mothers who
recognised the all too familiar logic of
the average seven year olds thinking.
Much like successful children’s programming, the language of the commercials operated on two levels.
This convention breaking approach allowed a push strategy to mothers with a greater degree of acceptance from kids.
Growing from the platform positioning, C&C invested further in high quality TV advertising that could
live comfortably with (and even surpass) the high production values of the international competitors.
The tone of the language used has been consistent for nine years i.e. Childlike and fun. The commercials we developed were set in a children’s world, universal enough to be recognised by children of most ages, yet strongly evocative for parents everywhere.
‘It’s not your Wadi – it’s Mi-Wadi’ |
 |
became the rallying call of disaffected
pre-teens around Ireland. 2 x 30
second TV commercials re-enforced the
quality credentials of the brand and
cemented the emotional proposition.
THE CONNECTIONS STRATEGY
The media/connections strategy for
the Mi-Wadi brand has been
characterised by two touchstones –
focus and consistency. The brand has
been invested in every year of the
period.
The primary vehicle for the product
phase of the campaign was outdoor.
This allowed for high levels of visibility
and pack recognition in the early
phases of activity. It allowed us to
concentrate on simple, product
focused messaging and encouraged
single-minded communication.
In the subsequent phase, TV was
utilised to ensure a more emotional
connection could be made with
consumers. Although this meant a
relatively high production investment,
Ireland’s comparatively inexpensive
airtime allowed for high visibility in
key crossover programming and
justified this investment over time.
THE RESULTS
After 9 years of consistent
advertising investment, Mi-Wadi is
currently the market leader in cordials
with a 37.4% market share (Source
Canadean), a 128% increase moving it
from number three position to market
leader.
- Gross Margin After Distribution
(excluding marketing costs) is 84%.
(Source: C&C Ireland)
- Total Net Brand Margin including
marketing has grown by 55% over the same period.
(Source:
C&C Ireland)
- Return on Investment from 1996-2003
is running at 400%
(Source: C&C
Ireland)
Mi-Wadi’s growth has continued to
out perform the category.
ISOLATING THE ADVERTISING
VARIABLE.
In order to isolate the advertising
variable, we must examine the other
elements of the marketing mix.
SPACE SHARE
Mi-Wadi continues to perform to
this standard despite being under
represented in in-store space.
PROMOTION
The category features significant
promotional activity. All of the players
use value promotions as part of their
overall marketing strategy. Although
brands in this sector react well to this
type of activity, C&C’s policy of
pursuing profitable volume only results
in less promotional activity. The Mi-
Wadi brand does just 2-3 value
promotions a year - significantly less
activity than Robinson’s. Mi-Wadi’s
growth rates far outstrip that of the
market. Mi-Wadi, despite running
lower levels of promotional activity,
continues to gain market share.
.
DISTRIBUTION
Despite its relative
underperformance in terms of Space
Share, Mi-Wadi has 99% distribution
(Source: Canadean). This is the
historical level and in line with the
major branded competitors.
PRICING
Mi-Wadi has the same price level as
Kia Ora and a slight price advantage
over Robinson’s. However, this had
been historically the case and did not
change in the featured period. The
brand has continued to gain share
despite increasing price elasticity in the
economy resulting from a ten-year
boom and despite the growth of
premium own label brands.
LINE EXTENSIONS/NPD
The sector has seen significant
activity in terms of formats and flavour
variants. No Added Sugar, new
flavours, single serve options etc.
However, Mi-Wadi has not introduced
any product improvements or
innovations ahead of the market.
Again, the relatively modest growth of
the sector as a whole and the fact that
no innovations were exclusive to Mi-
Wadi discounts this as a factor in Mi-
Wadi’s success relative to competitors.
CONCLUSION
The Mi-Wadi case study is as pure an
example of the value of advertising as
you will find. Taking a low interest
garden variety FMCG product; a longterm
outlook, a sound strategy and
consistent investment has allowed a
local ‘David’ to stand up to the
multinational ‘Goliath’ and deliver
long term profitability.
"The Mi-Wadi story is as true a test of
the power of advertising as you’ll find.
Our continuing investment in the
brand is a testimony to our belief in its
effectiveness"
Michael McArdle, Marketing Director, C&C
(Ireland) Ltd.
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