Orrefors-Kosta Boda — Two separate brands
After more than forty years in America, with promotional spending in the millions, these brands had more than a decade of flat sales and recognition levels lower than a cellar. European business consultants had advised the parent company to blend Orrefors product with Kosta Boda product, for what seemed like good reasons:
•Brands are both Swedish,
•Both are designed by artists known in Sweden,
•They have similar price points
•Both are sold to a customer base that appears to be identical, and sold within parallel distribution plans.
Here is an encapsulated version of MEIER involvment:
Research and analysis: Should they do the obvious and save promotional money by blending the two brands?
Our Answer: No.
Our research and anlysis: Our staging of primary research and analysis of secondary research, suggested that there are actually two buying impulses in U.S. crystal and glass purchasing which are diametrically opposed in terms of consumer behavior.
Self-Purchases in the Crystal, Glassware, and Art Glass categories are overwhelmingly based on a strong and unique emotional response to:
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Price: Eiether very expensive or a real bargain. These are very personal triggers.
•Styling: the kind of ideosyncratic piece that speaks to consumers. A piece of art. Something that carries personal style or attitude.
Kosta Boda was not inexpensive, but it was very Art Glass-aggressive in its design, and therefore very capable of creating an emotional response. Kosta Boda was a brand perfectly positioned for Self-Purchase at the high end.
Commemorative Gifts are those given at weddings, anniversaries, job promotions, Mothers/Valentines/etc Day. Crystal shows up, in all research, among the top choices across the country for these event-gifts. The important issues in commemorative gift-giving are:
•Status: brand recognition and aspiration are essential here. Think Tiffany box.
•Neutrality: Neutral gifts can go into homes the gift-giver may not have visited. Neutral gifts can withstand fashion trends.
•Price Appropriateness: Commemorative gifts are culturally priced between $150 and $350.
Orrefors could certainly be made to fit the bill on all counts for Commemorative Gift Giving.
Our Strategy: Aggressively position brands to stake claims in each of these areas through consumer advertising. Graphics and mode of presentation were deliberately chosen as different approaches that might support our strong and differing brand positions.
Media was chosen to reflect the psychological and style differences of the end-users at time of purchase. As a note, the Orrefors campaign won the ADDY award for the best print campaign of the year and sales for both brands increased by 30% within 18 months.
We developed coordinated programs of materials that amplified both brand positions at retail. Because we feel so strongly that the voice of the brand needs to be consistent and clear wherever the consumer might encounter it, we hope to control the management of what we call "points of impact." We designed everything from the ads, to retailer ad slicks, to post cards, to brochures, to displays, to sales training, reinforcing the message of each brand - at every point of impact.
Photo Credit for Orrefors: Ken Skalski |
Photo Credit for Kosta Boda: Eric Richards