In 10 weeks sales increased by 100%

(3) It started in the wheat bread category, where Schulstad had a series known as “Denmark’s loveliest”. It was a high-quality product but had an anonymous name and packaging. Customers’ awareness had dwindled and their experience of the bread’s quality had little to do with the facts.

(4) In 1995 we tested a series of concepts. Customers reacted very positively to the notion of raising Schulstad’s brand profile. Kunde & Co.’s strategic advice to Schulstad was therefore to go ‘back-to-basics’ and focus on the key values in the product series – the carefully selected raw ingredients. The tests showed us that two important relationships to the brand should be changed: the plastic packaging and the name.

(5) This resulted in Kunde & Co – together with Schulstad – developing paper packaging for the bread shelves. The name was also changed to “The good wheat bread”. We then initiated a focused and consistent marketing plan. 10 weeks after the re-launch sales increased by 100% - and after three years the market share had increased to 25%.

A new category within rye breads

(6) Tests also showed that it was time to start work in the revitalization of Schulstad’s profile. With the introduction of “The good wheat bread” a platform had been established from which to attack new categories.

(7) In the light of the success it was decided that Schulstad should put their efforts into traditional Danish rye bread. In four simple stages we succeeded in setting a new standard within the rye bread category.

1. We went against the trend for sliced rye bread and produced a whole loaf to achieve higher quality.

2. We created a soft kernel rye bread - a rye bread with softness similar to that of a good white loaf.

3. We packaged the loaves into the still innovative paper bags.

4. We made a creative solution utilizing modern visual techniques in which the loaf became the hero.

(8) The results were quick to come. In a short time, “The good rye bread” became a market leader, with Schulstad experiencing an annual growth rate of 25%. The competition couldn’t just sit back and witness this success and before long, an entirely new bread category was created.

(9) With the launch of the concept “The good”, a platform was established that - thanks to constant development – became Denmark’s largest bread brand with a market share close to 20%.

The good creates growth

(10) During the years following the launch, Schulstad’s sales and marketing share grew. A previously stagnant category suddenly became a rapidly growing category. Schulstad’s growth during these years was 25% per annum on rye bread, 41% on white bread and 22% on rolls. The growth continues.

(11) With “the good” we strengthened the quality experience within the bread category. Schulstad has done this by making what they consider to be the best bread in whichever category they enter. There’s no ‘me-too’ products here – there’s already enough of those around. Each new launch had its own particular characteristics, its own unique history.

The good story

(12) Schulstad spends considerable time on product development – and that’s a good story to be told. Our communication concept therefore focused quite simply in telling what we had done to create the best bread and to create refreshed interest in the category among consumers.

(13) At Kunde & Co we think that getting attention is important, but that involvement is equally valuable. It’s precisely this that Schulstad achieved through their communication for “the good”. Even though others make more noise, Schulstad still managed to achieve the greatest sales results in the bread market.

The pleasure of bread

(14) Together with Schulstad, Kunde & Co built up the concept “Bread with character”. “Bread with character” is bread that stands out, both for its quality and its ability to deliver new exciting experiences to the consumer. It wasn’t enough for Schulstad to simply improve a category as they did with “the good”. As market leader it’s important to drive the category and to remain innovative.

(15) In the period that Schulstad and Kunde &Co worked together between 1995 and 2002 when we created a strategy and marketing concepts for bread producers’ products, the bread category has developed explosively. Bread’s share of total grocery sales has grown from 2.6% to 3.8% - that’s by 50%! Schulstad has driven this development and reaped the fruits of their labors.

(16) The trade has acquired a dynamic new category with a higher market share. This can be seen directly in income. All this, simply because customers have increased their visits to the bread racks because it’s become a more inspiring experience. At Kunde & Co we call this a win-win situation.

►Read the case, define and classify analytical competences (ex. brand and customer auditing) that Schulstad and Kunde & Co have followed in the brand building, and discuss these competencies’ applicability to marketing other goods and services.

►Make a talk on how Schulstad, with the help of Kunde & Co, acquired the brand success and succeeded by addressing the following questions:

• Who are you?

• Why are you here?

• How are you unique?

• How can you make dramatic difference?

• Who cares? Do you care?

►Choose a product from among those well-known on the local market but seemingly generic and not so popular. Build up a strong and credible market position for the product by climbing the following steps:

• Analyze the existing brand profile (use BCG analysis)

• Suggest the product development

• Suggest the brand development by devising the right communicative intention, concept behind the brand and the logo

• Use visual aids to support you quest

‘BATTLE’ POINT

►Team up with your classmate and start to develop your arguments about the following statement:

‘Brand equity is everything you say? Don’t make me laugh. Whatever quality a product is of, price is a determining factor. Ask a consumer if you think otherwise.’