Invest in Brands

With extensive experience in branded consumer goods, Moot will help you make sound commercial decisions when considering how best to invest in brands.

• A large footwear business faced a growing margin squeeze in difficult market conditions
• Moot conducted a strategic review resulting in a decision to re-invest in failing brands
• A new collection launched Spring 2016

Often when the market is difficult, business leaders tend to tighten their belts and hold down costs to ride out the storm. When there is pressure on retail prices and production costs are steadily increasing, the squeeze can be felt in the middle. Businesses dealing in branded consumer goods are the lucky ones – brands have equity which can command a premium and when times are tough, such premiums provide an essential buffer. Deciding to invest in brands could be the smartest decision you make.

So how do you assess the likelihood of success and where do you start?

What was the problem?
Like many companies importing goods into the UK, our client faced a growing margin squeeze and wanted to explore the potential to invest in two dormant footwear brands. Originally premium brands, both had become devalued over time through a lack of active brand-management, with the focus on driving volume over other considerations. Despite lacking significant equity, a decision was taken to explore a relaunch and repositioning of both brands.

What did Moot do?

Whether you’re looking to invest in a new brand, or revitalising a tired brand, it’s vital to create a proposition which builds real brand equity.

Moot lead all aspects of the brand evaluation and update; from market research through to completion of the new product collection, with supporting advertising concepts and point of sale.  Beginning with a strategic review of competitive brands in both segments Moot used a research methodology which plotted pricing architecture against market positioning. An extensive review of competitor product offerings enabled the build of a database of relative pricing and product features identifying the price and positioning footprint of each competitor brand.

The results of the review, in conjunction with an economic-forecast modelling, enabled management to conclude that plans to restore their brands to their former premium positioning would be both risky and expensive. As an alternative however, the study illustrated that a revised positioning could be achieved, which would deliver improved brand-differentiation without entailing the same degree of risk. It was decided to re-invest in the brand, revisiting the brand strategy, investing in the design of a new collection and rethinking the sales and marketing strategy.

What were the results?
Moot brought new perspective, backed by evidence from historical sales and market research to senior directors, so that they were able to make an informed decision about the right approach to go forward for this business.  The result was a decision to re-invest in the lapsed brands, with a complete identity make-over for one brand.   Moot were invited to continue with this brand makeover, resulting in a spring collection launch-ready.