Showing posts with label Trending. Show all posts
Showing posts with label Trending. Show all posts

Friday, May 3, 2013

Ball and Its Mason Jars Get Better With Age -- Thanks to Pinterest, DIY

Ball and Its Mason Jars Get Better With Age -- Thanks to Pinterest, DIY

 A Recognizable Name, a New Approach to Marketing and a Perfect Storm of Trends Has Jarden's Jars Riding High.
(Article written by Agency Editor for Advertising Age and can be located here.)
Thousands of people across America are eagerly awaiting a case of the blue Balls.

Jarden Home Brands -- which licenses one of the oldest brands in America, Ball Home Canning -- has released a limited-edition "Heritage Collection" line to mark the centennial of the innovation commonly known as the mason jar. A commemorative note etched onto each pale cyan glass container is marked with "100 Years of American Heritage" and the year 1913, denoting the date the Ball Brothers, a group of five U.S. industrialists, integrated the construction of the jars so it was no longer a lid made by one person and a jar made by another.

This homage to old-school jars is just the latest way that Ball, a brand more than 125 years old yet experiencing its best sales in history, is catering to a fervent fan base. More than ever, Americans are eager to rediscover the art of canning.

The brand revival began a few years ago when Ball realized it was in, er, a bit of a jam.

It may sound like a homey little brand, but Ball is acutally part of a huge consumer products company based in Rye, N.Y. The $6.7 billion portfolio for Jarden spans outdoor and kitchen products including Marmot, Coleman, CrockPot, Mr. Coffee, Oster and Sunbeam. (Jarden does not break out sales for Ball.)
With over 96% brand awareness, name recognition wasn't a problem for Ball. But research showed there were many misperceptions about canning that prevented people from trying the process -- including worries that it was time consuming, too complex and unsafe. There was also the matter of fighting off competition from the likes of big private labelers like Walmart and other retailers. With the help of its agency of record, Kansas City, Mo.-based Barkley, and 360 Public Relations, Ball has gotten its bearings on a low budget.
Over the past two years, it's undertaken social-media campaigns and online canning demonstrations to expand its reach. It has modernized communication, leaping from the pages of Good Housekeeping to Pinterest and Facebook, and in the past year has devoted attention to developing new products to connect with a younger audience.

Timing helped. The recession fueled a resurgence in home canning and DIY projects while Americans' focus on healthy homemade and artisan foods made with fresh ingredients has been a boon for Ball. And as a heritage brand, it's riding the throwback trend -- when not used for actual canning, the jars often serve as simple centerpieces at outdoor weddings or as glasses at comfort-food restaurants.

Peruse Pinterest and the fandom is evident. There you'll find all manner of ideas of novel ideas for repurposing Ball Jars, including one page dedicated to 101 different uses. They range from making layered salads in a jar; creating a hanging light; making a DIY air-freshener; and using Ball Jars as a bathroom accessory to hold cotton balls and swabs.

Traditionally, there were two main brands when it came to mason jars: Ball and Kerr, with Ball being used primarily east of the Mississippi River and Kerr being used west of it. Both are licensed by Jarden, so they're not quite competitors. But the most loyal and passionate fans over the years have been for Ball, and it's where the majority of the marketing support has gone as the brand migrates across the country.

Passing the passion around

For a sense of how passionate home canners are about Ball, go back to 1992. At the time, there was a Twinkie-like run on the jars when news reports about a spin-off prompted worries the company was in trouble. Ball had to publicly reassure its stockpiling consumer base that it was going to be around for a long time to come.

While Ball was a trusted brand, back then it wasn't growing or innovating. Sales of home-preservation products were flat through the 1990s, and there wasn't much new in product strategy or innovation.
Chris Carlisle, senior director-marketing for the Ball home-canning products, said the trick is to strike a balance between keeping relationships with longtime fans and bringing millennials into the fold.
"We want to preserve the authenticity of Ball, but you have to show that you're moving forward," he said, noting that the company has been focused on a product strategy that simultaneously shows where Ball "has been historically and where we want to go."

That thinking bred a new appliance called the "FreshTech Automatic Jam & Jelly Maker." Users can just dump in some fresh fruit, sugar and pectin, and jam is created in under 30 minutes, cooking and stirring the ingredients for you. "We understand [cooking is] time sensitive today and the making of fresh jams and jellies is a bit of a lost art," Mr. Carlisle said. "Our job is to pass the passion around."

It's also expanding beyond jams, jellies and pickling with fresh-food innovations such as a wet herb keeper that extends the life of fresh herbs.

Private-label competition

Keeping at the forefront of product development is crucial at a time when Ball's core product faces competition from private labelers. Walmart has launched a line of private-label products under its Mainstays brand, while the upmarket Williams Sonoma has been

Kilner jars from England. Ball jars retail for $12 a dozen, while Kilners can run as high as $25 for four.
"Part of our protection as a brand is the notion of authenticity and what that means -- particularly to younger consumers -- is staying true to our roots," said Mr. Carlisle. "Our jars and lids are still made in the USA, and if you look across the competitive set … they are sourcing their jars from China. (Ball jars are predominantly made in Indiana, with some production also occurring at plant in Salem, N.J). He added: "None of those other brands have a communication strategy that facilitates storytelling, while our consumers get to participate in a two-way conversation."

Ball has changed its media-allocation strategy to largely shift from marketing in cooking magazines toward social media and events. (According to Kantar in 2012, measured media was $1 million, but digital spending takes the figure much higher.) The company hired Barkley in 2010, which has since launched a campaign called "Shine Through," indicating that an individual's personality and creativity can shine through with the use of Ball products. The strategy involves a total revamp of the Ball website, renaming it freshpreserving.com; a streamlined e-commerce interface; and an easy-to-use recipe section.

"Ball's challenge was to re-energize the category as the category leader, and take share -- and that's tough to do -- but they did it," said Jeff Fromm, exec VP at Barkley and co-author of "Marketing to Millennials," which is due in July. He attributes much of the growth to paying attention to the ways that younger consumers may want to interact with the brand. "Some of the interesting things we know about millennials is that they are interested in being enviro-friendly and they like sharing things with their friends. That trait is shareworthiness. It's not about the brand, it's about them. If you enable their sharing and self-expression, then they like your brand."

How did Ball make itself shareworthy? An expanded social strategy on Facebook allowed new canners to learn from experienced ones. Ball also held events with well-known canners and launched national "Can-It-Forward" day events at farmers markets where canning demonstrations were held concurrently in person and online.

Over the holidays, Barkley ran a promotion on Facebook called the 25 days of anti-gift cards. Each day running down to Christmas, the campaign offered new uses for the jar, for example, as part of a vodka-infusing kit or way to store keepsakes from favorite vacations.

In the span of a year, Facebook fans increased by 40% and website visits increased by 30%, bringing the company firmly back into the conversation again. And on one of the ultimate sharing sites, Pinterest, Ball is approaching 4,000 fans. With the help of 360 Public Relations, Pinterest is now one of the top 10 referral sites to freshpreserving.com for e-commerce, which it only began in earnest in 2011.

But most important, this can-do attitude has led to strong sales. Mr. Carlisle said "2012 was far and away our best sales year ever -- we grew 20%. It changed the profile of the brand and we saw a big leap in our sales growth." Not bad for a brand born before the advent of touch typing. And Ball thinks the future looks even brighter. "We continue to see momentum in 2013," said Mr. Carlisle, anticipating the company's biggest volume months ever this June, July and August.

Or in Ball terminology, he believes the brand will shine through.

Wednesday, April 24, 2013

U.S. Consumer-Packaged-Goods Winners Identified in New Ranking

Study by The Boston Consulting Group and Information Resources, Inc. (IRI) Shows That Price Increases and Distribution Gains Drive Performance of Large Consumer-Packaged-Goods Leaders, While Share Gains Propel Small and Midsize Stars


Study Is the First of Its Kind for CPG Companies and the Result of a New Collaboration Between BCG and IRI to Assess and Report on Ongoing Trends Shaping the Industry


CHICAGO, April 22, 2013—A new study by The Boston Consulting Group (BCG) and Information Resources, Inc. (IRI) has identified the top-performing companies in the U.S. consumer-packaged-goods (CPG) industry. It is the first study to compare both public and private CPG companies using a combination of three metrics—dollar sales growth, volume sales growth and market share gains—based on comprehensive retail- and consumer-market tracking data.

BCG and IRI analyzed the 2012 performance of more than 400 CPG manufacturers with annual U.S. revenues of at least $100 million. Recognizing that players in different size categories face different opportunities and challenges, the research team generated three distinct top-ten lists of winning companies: small ($100 million to $1 billion in retail sales), midsize ($1 billion to $5 billion in retail sales), and large (more than $5 billion in retail sales).

Among large companies, the top three performers—ranked on a combination of dollar sales growth, volume sales growth, and market share growth—were Lorillard, the Hershey Company, and Anheuser-Busch InBev. The top-performing midsize companies were Green Mountain Coffee Roasters, Inc., Chobani, and Starbucks. And the top-ranked small companies were TalkingRain, Idahoan, and Handi-foil.

The analysis is the first result of a new collaboration between BCG and IRI to assess and report on ongoing trends shaping today’s CPG industry.

“Our research with IRI shows that there is no single formula for success in the CPG industry,” said BCG’s Jeff Gell, a Chicago-based senior partner. “Companies are winning in various ways—through superior execution of their base businesses, innovation, and better management of price-volume tradeoffs. We are excited about working with IRI to bring distinctive analyses and compelling insights to the marketplace.”
The findings reveal that most winning companies are successfully growing their base businesses through gains in distribution. Pricing, however, is a key source of dollar sales growth for many of the large-company leaders, with growth in dollar sales outpacing volume sales growth. In contrast, growth in volume sales is a key source of dollar sales gains for small and midsize stars, suggesting that a more sustainable rise in consumer demand is powering performance.

These drivers of growth underscore a significant trend in the CPG industry: small and midsize companies are increasingly taking market share from large competitors. All top ten small and midsize companies gained market share in 2012, with eight of the small-company winners grabbing at least 1.0 percentage points. Since 2009, large companies as a group have ceded 1.4 percentage points in market share, a drop that amounts to more than $10 billion in lost sales.

“From this joint research, we’ve uncovered that small and midsize manufacturers’ growth at the expense of large manufacturers is significant,” said Dr. Krishnakumar (KK) Davey, managing director at IRI Consulting. “Small and midsize manufacturers are in a unique position to strengthen relationships with their retail customers as they drive growth in many categories. They are expected to garner greater attention from retailers through increased shelf space and merchandising activity.”

“We believe that our collaboration with BCG will continue to deliver great insight and, most importantly, foresight for our clients and the industry at large,” Davey added.

Other findings from the research:
  • Among large-company winners, only three are growing from both their base businesses and innovation. Steps such as launching innovations that are incremental and do not detract from the existing portfolio can help balance growth from both parts of the business.
  • Small- and midsize-company winners are generally concentrating on a few product categories in which they have a competitive advantage and experience strong consumer demand. They are also driving trends in the marketplace and developing first-mover advantage.
  • Small and midsize companies are gaining significant share from larger players, suggesting that there are advantages to focused portfolios and small-company agility. There is an opportunity for larger companies to drive growth through more effective portfolio-mix management—by expanding into categories with high growth potential (through acquisition or new product development) or by reevaluating existing categories to prioritize focus where opportunity is greatest.
To request a copy of the study, “The BCG-IRI Momentum Report,” or to arrange an interview with one of the authors, please contact Alexandra Corriveau at +1 212 446 3261 or corriveau.alexandra@bcg.com, or John McIndoe at +1 312 474 3862 or john.mcindoe@IRIworldwide.com.

About IRI
IRI is a leader in delivering powerful market and shopper information, predictive analysis and the foresight that leads to action. We go beyond the data to ignite extraordinary growth for our clients in the CPG, retail and over-the-counter healthcare industries by pinpointing what matters and illuminating how it can impact their businesses across sales and marketing. Move your business forward at iriworldwide.com.

About bcgperspectives.com
Bcgperspectives.com features the latest thinking from BCG experts as well as from CEOs, academics, and other leaders. It covers issues at the top of senior management’s agenda. It also provides unprecedented access to BCG’s extensive archive of thought leadership stretching back 50 years to the days of Bruce Henderson, the firm’s founder and one of the architects of modern management consulting. All of our content—including videos, podcasts, commentaries, and reports—can be accessed by PC, mobile, iPad, Facebook, Twitter and LinkedIn.

About The Boston Consulting Group
The Boston Consulting Group (BCG) is a global management consulting firm and the world's leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 78 offices in 43 countries.