Speaking at Advertising Week Europe, Tyrrells global marketing controller Dan Winslet, shared how their investment in the brand as opposed to lowering prices to drive growth.
In 2018, Tyrell’s was confident in the high value and quality of their crisps, consistently outperformed competitors in taste tests, but also knew that people were not prepared to pay a premium price tag and owners KP Snacks knew it had to get off “the short term drug of promotions”.
In 2019, Tyrrells increased the price of products by around 30%, and saw sales drop. However, holding their nerve, the brand team were confident that brand building would be a long-term venture to see sustainable growth. “We were looking to create a brand that matched the quality of products that we had,” said Dan Winslet.
Building a brand which stood out from the competition, Tyrrell’s drew from its Herefordshire farm roots, building on the English character of Tyrrells launching the “Tyrrellbly Tasty” advertising campaign. In a 2-year period Tyrrells Sharing Crisps has grown 40% including its share of the premium sharing crisps market to 15.3% from 12.6%.
Winslet said that crisps are not a luxury product, the price increase that Tyrrells made saw it being sold at around £1.50 versus around £1 previously. However, it took an investment in brand to convince consumers that this new price was worth paying. “People are prepared a little bit more for a brand that has a brilliant product and a brilliant equity,” he said.
Tyrells represents another great example, one of many recently, of brands realising that value is not just about price and that you need to engage with, and explain your brand to people to create or maintain leadership. It is obvious really. If you want sustainable long-term growth for a brand you need to invest in building it. As Tyrells explain, brands are not just for Christmas either. Equity and product quality/distinctiveness need to be constantly presented to consumers to build and maintain mental availability. THERE HAS NEVER BEEN A SHORT CUT. Price promotion or short-term sales activation investment is important, but it cannot do what brand building does. Further, and the data completely supports this, when we hit challenging economic times, the brands that have invested in equity over the long-term fare much better than those that have not. Tyrells clearly get this.
The British Brand Group 2022 Brand Lecture ‘Falling in Love Again’ delivered by Peter Field is a brilliant explanation of this fundamental truth.