Lucky Me dislodges Nescafé, now top PH brand
The insatiable desire of time-starved Filipino consumers for greater convenience combined with effective marketing and communication campaigns helped catapult Lucky Me of Monde Nissin Corp. to the top of the list of fast moving consumer goods brands (FMCG) in the Philippines.
According to the recently released 2014 Brand Footprint report of multinational research firm Kantar Worldpanel, Lucky Me was the most purchased brand in the Philippines in 2013, reaching almost all Filipino households, each of which bought at least once a week.
It toppled previous leader Nescafé of Nestlé Corp., which dropped to second place in 2013, as Filipino shoppers patronized other local coffee brands, particularly Universal Robina Corp.’s Great Taste that penetrated the top 10 list for the first time as more shoppers turned away from traditional black ‘pure’ coffee and bought three-in-one coffee mixes.
Completing the top 10 list are Surf with 565 million consumer reach points, Palmolive (475 million), Milo (471 million), Bear Brand (452 million), Ajinomoto (416 million), Safeguard (398 million) and Oishi (388 million).
Consumer reach points, on which the Brand footprint’s ranking is based, are computed using two measures: How many households purchased the brand at least once during the year (penetration), and the average number of times they purchased it (frequency).
The Brand Footprint’s 2014 ranking covers over 200 FMCG categories tracked by Kantar Worldpanel from October 2012 to October 2013.
Kantar Worldpanel also noted in its latest report that Great Taste was the fastest rising brand in the Philippines in 2013, with a hefty 72.6-percent increase in its consumer reach, thus explaining its climb of 12 places in the ranking of top brands.
A far second is Unilever’s personal care product Dove, which saw a 35.3-percent growth in consumer reach, which was enough to make it go up 16 places to end 2013 as the 37th most purchased brand.
Other names that made it to the list of 10 Top Rising Brands in the Philippines are Bonux 3-in-1 with a 35.2 percent increase in consumer reach from 2012 to 2013, Downy (21.1 percent), Piattos (20 percent), Sunsilk (15.3 percent), Maggi (8.3 percent), Knorr (7.8 percent), Zonrox (7.6 percent) and Palmolive (6.3 percent).
The 2014 Brand Footprint report noted that, across the 35 countries covered by the study, the top 50 brands are “masters at solving functional needs, making life easier and bringing significant value beyond consumption.”
Kantar Worldpanel said there was a continuous quest for a healthy life, which translates to growth in demand for healthier options and greater transparency about ingredients and nutrition labeling. Manufacturers have responded, the report said, by putting out products with added health benefits such as lactose-free variants and products using natural sweeteners.
The report added that consumers would pay for convenience, as the middle class around the world continues to grow.
Technology, along with changing work and social patterns, is making professional and personal lives busier than ever, the report said. Thus, brands have capitalized on this trend by coming up with new format meal solutions and culinary aids to make cooking easier and quicker.
There is also a marked trend toward the use of health and beauty products that combine these attributes.
Unilever, for example, developed a Vaseline Spray and Go moisturizer, which may be applied rapidly and evenly without the need for it to be rubbed in.
Kantar Worldpanel also said that in emerging markets, brands that want to increase their consumer reach have to consider providing a new kind of affordability.
“Smart sizing—such as small packets or sachets—is essential for brands to succeed in southeast Asia and rural Latin America since larger pack sizes are often beyond the average person’s budget,” the report said.
Kantar Worldpanel likewise shared “golden rules” for brands with international aspirations:
Be global. Have one name around the world, with relevant translations, to maintain strength of global identity. Support this with global marketing campaigns that may be adapted locally.
Be available. Make access easier with affordable packs and smart sizing tailored to the needs of different global consumers. By doing so, a brand can ensure it is present everywhere its consumers are shopping.
Be agile. Do not just embrace local cultures and festivities, from Chinese new year to Holloween, but develop knowledge of local preferences and tailor products and positioning accordingly.
Be across categories. Explore strong brand equity that can aid in penetrating new markets wherever relevant. Lifebuoy, for example, capitalized on its health and hygiene profile to penetrate haircare, hand and body wash categories.
Partner and cooperate. Leverage leadership by collaborating with retailers, prominent food outlets, airlines and hotel chains.
Have a social mission. Brands that tackle important issues have the opportunity to make stronger connections with consumers. Obesity, dental care for children and hand-washing are examples where brands are leading the conversation.
Don’t ignore digital. Global, transparent and interactive communication should be at the heart of any FMCG brand strategy. The forward-thinking brands are using social media to connect with, and better understand, their consumers.
Build a smart portfolio. Manufacturers should look at all brands in their portfolio, complementing existing ones with newer brands that solve the needs of consumers who are not yet being reached. This can mean adding brands in complementary or competing categories, and looking out for opportunities to acquire strong local brands.
