Thursday, February 15, 2007

Advertising versus Design - What impacts more on a brand's bottom line

That's the debate going on over at Heinz. This Brandweek story details how in 2004, Heinz pulled the plug on ketchup advertising, yet after a 2006 ketchup bottle redesign, ketchup consumption went up 78%.

But now, Heinz is about to embark on "one of the largest TV campaigns behind the flagship Heinz Ketchup brand since the 'Anticipation' spots of the 1970s."

Food analyst John McMillin of Prudential Securities welcomed the move. "Advertising is the lifeblood of brands. The lack of it represents a risk for long-term success," he said. "I'm pleased that Heinz is having success with in-store promotions. But you're only as good as your next promotion."

Still, the power of packaging can't be underestimated, said Ghansham Panjabi, a packaging analyst at Wachovia Securities: "When consumers see the Heinz logo on the fridge door every time they open it, it's taking marketing inside homes."

TMBC is silly with anticipation on how this will play out.

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