Nutella: accidental brand or cult sensation?

A Twitter conversation last night instigated by Olivier Blanchard and carried on ad nauseum elsewhere, sales reminded me of a long-time guilty pleasure: Nutella. Just typing the word makes me salivate – and I have to restrain myself from running upstairs to slather some of that rich hazelnutty goodness on melba toast. And apparently I’m not alone: in additon to Twitter fetishists, Nutella has 3.5 million fans on Facebook.

French Vs German Nutella

So why all the nuts?

Hagelslag
Dutch Hagelslag: The chocolate-on-bread option I grew up with.

I didn’t grow up with Nutella. As a Dutch-Canadian kid, if we wanted chocolate on bread, by golly, we just put chocolate on bread. “Hagelslag” (pronounce the g as if you are lightly hacking up a small furball) or “chocolate hail” or just “sprinkles” were always available at my Oma’s house. My first Nutella purchase came as a student, when my room-mate had to have it in the house, and I in turn have had my own jar on the shelf ever since. And now, although we don’t let the kids have it (far too precious), my pregnant wife is currently making sure we stay stocked up.

But I wasn’t conscious of where it comes from (Italy), or its fascinating history, which Wikipedia has done a much better job of than I could manage in a blog post. Basically, it comes from a war-time innovation by Pietro Ferrero to produce a cheaper alternative to chocolate using cocoa and the hazelnuts that were plentiful in that region. Nutella in its present form emerged in 1964, with 179,000 tons produced in Italy every year.

Building a fan base

But I can’t remember seing an ad for Nutella, and can’t recall a single in-store promotion or Point-of Purchase display. It was always just there on the shelf alongside the Peanut Butter, calling “Dennis! DEEEENNNNISS!”. <more saliva> But I digress.

Apparently Ferrero does do some advertising – particularly in Europe, as in this nicely toned French ad that promises that Nutella will give you the energy of a child. But according to this site, Ferrerro USA only spent $300,000 on advertising in 2008.

It’s interesting that the positioning is built around “energy” and “youthfulness” rather than being explicitly “healthy”. In Canada, Nutella labels feature a boy kicking a soccer ball to highlight their support for amateur soccer, while in Italy, the connection with futbol was made even clearer in one commemorative package (right).Soccer jar

But in the UK, the “energy” positioning has gotten Nutella into hot water as misleading for a product that contains so much sugar and fat (thanks to @kaitli for the tip!).

The secret to Nutella’s long term success seems to be consistency, living up to the promise by just being there, and by the affectionate devotion of its fans who carry a craving for that taste well into their adult lives. And not just consumption, but even geeky fixation.

Just do a quick YouTube search on Nutella, and you’ll find hundreds of fans geeking out on all aspects of the product. Check out this clip from a German television show that compares the consistency of French Nutella with German Nutella in agonizing (and entertaining) detail. But note that when they actually call Ferrero in this clip, the brand-er doesn’t do much to help the geeks in question with their free advertising.

So the question for you DIFFER brand geeks: what should Ferrero be doing to capitalize on all these nuts who obviously want to help them spread the love? Social Media campaigns? More traditional media advertising? Just staying out of the way? Looking for your comments as always.

Shop local: is it better to brand from the inside?

A recent Twitter friend of mine, ask David Olinger, who is the Manager of Marketing and Communications at the small Alberta City of Grande Prairie (population 50,000) has just announced the winning bidder for a branding project for Grande Prairie: a company from Seattle that specializes in tourism destination branding Great Destination Strategies . Was there great rejoicing in Grande Prairie? Um. Not exactly.

Grande Prairie 2

The response:

This was the grumpy and YIMBY (Yes In My Back Yard) response to the project from the editor of the local newspaper The Daily Herald Tribune:

FULL EDITORIAL HERE: Shop local doesn’t always apply to city

A few quotes to give you the gist:

The old saying, “a picture is worth a thousand words” can sometimes be even more important when it comes to picking just one image that is supposed to identify an entire community. Such is the challenge the City of Grande Prairie finds itself in right now as it embarks on a new “branding” campaign.

So with such a sensitive job one would think it would be important to consult with people from this region, lifelong residents and newcomers alike. But instead, Grande Prairie’s brand will be made in the U.S.A. in some Seattle offices 1,304 km away.

Will an American company know who Alexander Forbes was? Will they know what the Stompede is? … Will they know how to spell Muskoseepi without having to look it up everyday?

The Muskoseepi dilemma

Now, without knowing anything about the company in question or very much about Grande Prairie (I thought it was in South-Eastern Alberta, not North-Western), and certainly having no clue what a “Muskoseepi” is (?) this debate raises an interesting question for brand managers everywhere:

Is branding better done by insiders (people who live, breathe, and bleed the brand every day), or by outsiders (people who come in “cold” and learn about the brand)?

I’ll let you think about that for a moment.
[pause, soft music plays]

The answer:

My own take on this: neither one. You need both insiders and outsiders for a great branding campaign to succeed.

The insiders:

The process and outcome have to be driven and owned by insiders – and particularly by leaders with enough 1) power (and courage) to make the big changes that a whole-brand approach will require, and 2) humility to truly listen to the voices of outsiders (by which I mean customers). If the insiders abdicate this responsibility, the brand will be defined by outsiders, and not necessarily with the best intentions or proper perspective.

The outsiders:

Because a brand is a promise that is actually owned by its customers, successful branding can’t ever be an internal exercise only. Otherwise it’s just an exercise at best (like an orchestra rehearsing without an audience), a time-wasting navel-gazing as middle ground (executive retreat anyone?), or at worst, a spectacular public blunder (like Pizza The Hut or last week’s Syfy debacle).

That’s not to say you need to hire an expensive American firm to do your work for you. A sensibly priced Canadian firm would be better, but even that isn’t strictly necessary. This role could be played by your Board of Directors or a panel of advisors, or if you have a really active customer base, include some real customers in the process.

The most important things are 1) to make sure somebody at the table is speaking for the customers. That is, they give themselves permission to challenge you, ask “dumb outsider” questions, and maybe even tell you that your customers don’t care about things you hold very dear (e.g. Is the “Stompede” really that important? Really?), and 2) to make sure somebody on the “insider” side of the table is listening.

Bon Courage Grande Prairie!

I’m so mad at Switzerland!

A Rant about Canadian Brands for Canada Day 2009

So you ask: “Mad at Switzerland? What could anyone possibly have against the Swiss” – those lovely Alp-ine purveyors of Rolex watches, visit this Nestle chocolate, and fastidiously discreet banking services? Sorry Switzerland. It’s not about you. It’s about you beating the pants off Canada in the global branding arena.

And to be fair, in the rant video attached you’ll note that I have equal opportunity anger issues against Sweden, Finland, and even my own ancestral homeland the Netherlands. And as you’ll see, it’s all because of their brands. Each of these countries punches far above their weight in the contest for the global brand belt. As you’ll see in the stats below, these countries even beat the heavyweight in the ring – the USA – when you take their population into account.

Global 100 chart

So why the anger?

Okay, I’m a Canadian. I’m not actually angry per se: just hurt, frustrated, envious, mildly apologetic, etc.

Actually, I want Canadian brand managers to stand up and take notice. We need to get more internationally respected / recognized brands. In this deck on SlideShare, you’ll find some supporting data (from Interbrand / Business Week) and my challenge to Canadian Brand Managers.

Go Canada!

What Canadian brands are Global candidates?

Fortunately, the good folks at Interbrand also published a helpful guide in 2008 for that as well.

Interbrand report on Canadian Brands.

The top ten

  1. Blackberry
  2. RBC
  3. TD Canada Trust
  4. Shopper’s Drug Mart
  5. Petro Canada
  6. Manulife
  7. Bell
  8. Scotiabank
  9. Canadian Tire
  10. Tim Horton’s