In 2010, Frucor’s ‘crown jewel’ V, which clocks up sales of $250 million in Australasia, was becoming a victim of its own success. It had been very effective in growing consumption with existing customers, but as it already had 55 percent of the traditional energy drink market, there was little room for growth and it was a long way from the rates required to meet budget.
70 percent of V is consumed between 11am-3pm, so extending time of day consumption and taking energy into different beverage categories was a big opportunity for the brand. Health was also a major barrier, with 43 percent saying they don’t drink energy drinks because they’re unhealthy. So, to keep the momentum going, Frucor launched its hybrid strategy and developed two new products.
Frucor aimed to get 10 percent share in each of the new categories it had entered. But it surpassed all expectations. V Iced Coffee quickly became the number one flavoured milk SKU, smashed its budget for 2011 in just two months and pushed the whole impulse flavoured milk category into growth well ahead of previous periods, while V Isokinetic reached a peak of 17.5 percent share after launch and, according to ad tracking, Colenso’s V ladders campaign to promote it was the most engaging V effort yet.
Youtube VideoCrucially, the new products have also been beneficial to the core brand, with a positive impact in the preference, relevance, premiumness and coolness of V.
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THE PEOPLE: Iaan Buchanan, Sean Wiggans, Debbie Fell, Ursula Wiig, Natalie Beaton
THE PARTNERS: Colenso BBDO, Futurescape Research
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