YOU ASKED FOR IT

"He who laughs last thinks slowest."

—Unknown

July 3, 2012GETTING SENTIMENTAL

BRAND OBSERVATIONS OF THE DAYFrom my random collection of info sources, here are some highlights related to the brands of our times...

• Panera Bread’s non-profit arm has introduced “Pay-What-You-Can” concept stores. They find that customers who can pay more will, while those who can’t pay can work for an hour in return for food. Would I be willing to pay more for my favorite bacon and spinach quiche and help someone out in the process? Probably. Maybe they’re on to something.

• Nielsen’s new study compared the effectiveness of more than 4,000 ads over the past four years. Funny ads still win, but sentimental ads are gaining. On a related note, Kleenex has reported a proportional increase in sales over the same time period.

JIM HUEBNERj imh@huebnerpetersen.comCELLULARTELEPHONE970-420-3382

Hmmm.

Brought to you by popular demand of a client, my mom, and some folks I met at a church potluck

From the remaining gray matter of Jim Huebner

Information that will make you smile, groan or think...

Saw this on the bulletin board in my

mother-in-law’s kitchen. I think it

was the “free house” that caught her eye.

© 2012 Hmmm by Jim Huebner

Those who know me best, know that I really like cereal. Years ago my personalized notepads didn’t say “From the desk of Jim Huebner”. They literally said “From near the cereal bowl of Jim Huebner.” I’m serious about cereal. That’s probably why I was so interested to read an article on BrandChannel last week that discussed the rise in market share of Malt-O-Meal and its numerous “knock off ” cereal brands.

The article states that Malt-O-Meal (recently renamed MOM Brands) has made substantial gains in sales over the last decade. Specifically, they’ve grown from sales of $300 million in 2001 to $750 million in 2011. The company claims the growth is due to improved taste and the increasing frugality of the consumer. I truly don’t doubt either of these notions.

But here’s the problem.

Even at $750 million in sales during the worst economic conditions since the Great Depression (precisely when you’d think everyone would be looking to save money on less expensive foods), this generic cereal market is STILL just 9% of the total cereal market. That means 91% of the consumers are willing to pay more for the brand names. Why?

It all comes down to brand trust.

For too long, the generic brands just didn’t taste as good as the branded cereal. Believe me, I tried them...many of them! But Kellogg and Post were on to something from the beginning—when

you ensure the product is right first, price becomes a secondary issue. Then, couple better taste with consistent advertising over a long period of time, and you find the classic laws of marketing in action—1) Familiarity breeds trust; and 2) Trust creates an opportunity to charge a premium your product.

So more power to ya Cocoa Dyno-Bites. Move over Apple Zings. This cereal connoisseur (as well as millions upon millions of others) will be sticking with Cocoa Krispies and Apple Jacks...at least until your product is significantly better and you let us know about it through some aggressive advertising.

Jim Huebner is President of HuebnerPetersen Marketing Communications.The firm was established in 1989 and specializes in helping make manufacturers heroes to their dealer and distribution networks through strategic brand positioning, integrated marketing, and front lines marketing services. You can reach Jim at jimh@HuebnerPetersen.com or on LinkedIn.

WORDS TOLIVE BY

The way of a foolmay seem right to him,

but a wise manlistens to advice.

–Philippians 4:8

Is Malt-O-Meal a cereal killer? Nah...

...and straight from the HuebnerPetersen blog...! PAGE2