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> BRANDED
‘One of the traditional marketing conundrums is how to grow market
share when your brand is already quite dominant. We did this by
anticipating segmentation that was going to take place
addressed over the next 10 years were how to explain the addition, Liam Shanahan, president of the Irish Exporters
unique benefits of porridge oats to a younger audience and how Association, said the judging panel “was particularly impressed
to make products available in a friendlier format,” he recalls. with Flahavan’s continued strong focus on research and its abil-
The January 1998 decision by the Food and Drug ity to identify customer trends in its markets”.
Administration (FDA) in the US allowing a health claim to be Noonan, who won the Marketer of the Year title himself last
made on the labels of foods containing soluble fibre from whole year, says: “We have spent a lot of time and money on con-
oats gave Flahavan’s a leg up with the first challenge. sumer research for all kinds of things from product development
“After the FDA decision, the science was there to allow us to to radio ads to packaging. We’re mindful that even though we
talk more clearly about benefits such as reducing cholesterol as might consider ourselves experts in oats, we want to bring an
part of a low-fat diet and slow release of energy – both of which understanding around where the consumer is at to bear on any
are more relevant to younger people than simply saying por- decisions we make. We continually look at where we feel the
ridge is ‘good for you’,” says Noonan. market and trends are going to evolve and work hand-in-hand
“Porridge had a prominent part to play in various health with Bord Bia, which has a terrific research department.”
trends that came from the US, which started with the Atkins diet When Flahavan’s started on the journey of repositioning the
and evolved into other trends such as a focus on the glycemic brand, it already had a high market share of 60pc, which it has
index or wholegrains. Flahavan’s worked closely with public managed to grow to about 65pc of the hot porridge oats sec-
’
relations [PR] agencies anticipating trends coming across the tor, valued in 2009 to be around €20m.
water that might be relevant in Ireland, which meant we were “One of the traditional marketing conundrums is how to grow
well positioned.” market share when your brand is already quite dominant. We
Regarding the product format, Noonan says when Flahavan’s did this by anticipating segmentation that was going to take
looked at why people weren’t buying porridge, lack of conven- place. The convenience segment began to emerge; we
ience – not taste – was one of the main the reasons. “We decided launched early into that segment and now have an 80pc share,
to broaden the portfolio, introducing the Quick Oats range, start- as well as a 73pc share of the organic segment.”
ing with the drum in 2003, then sachets a year later and pots the
following year.”
Setting the brand up for life
Regarding the marketing mix, Noonan says Flahavan’s uses two
Award-winning formula
elements quite strongly: PR and advertising. It hired Irish
The company’s successful product development strategy was International BBDO to create a series of radio and TV ads and
commended when it won Exporter of the Year last year. In Walsh PR to undertake a major public relations campaign.
30 Marketing Age Volume 4 Issue 1 2010
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