Cover Story: Penguin returns to on-pack

Penguin's first on-pack campaign since 2003 targets mums. It rolls out during the autumn back-to-school period and, according to Jessica Lamb, McVitie's group brand manager, rewarding loyalty is the top objective, followed closely by re-engagement.

The strategy appears sound: Penguin may have been quiet on the marketing front for a few years, but it has certainly managed to deliver on volumes and contribution. It trails behind Kit-Kat and Twix at a respectable number three in the chocolate biscuit market and is worth more than £20 million in retail sales value. Penetration stands at around 30 per cent, with more than seven million households buying around 25 million packs a year, equating to 300 million individual bars.

Seeking shelf standout

But the category is nothing if not fiercely competitive and, for Lamb, the on-pack promotion will give mums "another opportunity and reason to think about the brand". Standout on the shelf is a paramount objective, regardless of the brand's relative strength. As Lamb acknowledges: "We know 90 per cent of purchaser decisions are made at fixture. For a category such as chocolate biscuit bars, we know they're on mums' shopping lists, but they won't decide which brand to buy until they get to the shelf. This promotion gives us a point of difference and a reason for mums to choose Penguin over its competitors."

The promotion is being driven by a 10-week "sweepstake" involving eight million of the brand's nine, 18, 27 and variety pack products in grocery and convenience stores. The total prize fund is £75,000; consumers who find a winning golden Penguin wrapper inside 75 promotional packs will win £1,000. A second prize of 7,500 Penguin money boxes will also be up for grabs.

Lamb believes the sizeable cash fund will create a big bang in the category. "£75,000 is a big sum of money. The smaller cash prizes are also a way of dividing up the fund while still maximising the chances of winning," she says. "The cash reward will appeal to mums while the money boxes will get kids excited."

But isn't Penguin concerned that its golden wrapper is uncomfortably close to Kit-Kat's golden ticket promotion in conjunction with Channel 4's Big Brother last year? The Nestle brand caused a brouhaha when ticket winner Suzie Verrico's house entrance prompted the Advertising Standards Authority to investigate accusations that the BB ticket draw was actually fixed.

Neil Laidler, business director at Catalyst, the agency behind the Penguin push, states there is no comparison: "This promotion will be randomly seeded by an independent company, and there is no behind-the-scenes activity going on here."

And he insists that the golden wrapper will appeal to mums because of its simplicity. "Consumers are asked to do more and more with complicated promotional mechanics, and there is something to be said for a promotion that's straightforward," he adds.

The golden wrapper will be jostling alongside price promotions, which are a category staple. "BOGOFs and price promotions are traditionally the types of activity that go on in the market," concurs Lamb. "We are usually on gondola ends several times a year and we've managed to get some of our price promotion activity aligned with the on-pack push in order to create a big splash."

The promotion kicks off at a turbulent time for the chocolate biscuit sector. In 2006, year-on-year value growth for chocolate biscuits slowed from two per cent to one per cent, according to market researcher ACNielsen. This is in sharp contrast with the "healthy biscuit" sector, which saw sales grow by 10 per cent to reach £331 million in 2006 and now represents 18 per cent of sales in the total biscuit market.

In response to this consumer demand for healthier snacks, Penguin is featuring a "no-artificials" splash on the front of packs later this year. "We haven't had artificial colours or flavours in Penguin for some time, but it's something we've decided is important to shout about in this fixture. We know from research that it reassures mums," says Lamb.

This year will also see a redesign of the inner packaging of Penguin bars from its various patterns to a more traditional image. And the revamp will see the penguin image return to the front of the pack. "(The penguin on the inside of our packs) will be fun and younger looking - more iconic and in the style of the image on the front of the packs," says Lamb.

Nostalgia and the present

Previous activity for Penguin has included a £1.5 million below-the-line campaign to support the launch of spin-offs Chukka and Splatz in 2003. The sampling push targeted teenagers and sought to add "coolness" via an association with skateboarding. This year's activity, however, is aimed at the family.

While Lamb won't reveal budgets or expected ROI, she says she will be monitoring performance through her internal sales data. She will also measure how many people respond to the "no purchase necessary" prize-draw mechanic.

For a brand with so much history, Lamb believes it is important to balance heritage, nostalgia and established credentials, while remaining modern without trying too hard to be trendy. She says: "The nostalgia factor for Penguin is enormous, but it's not something we always intend to trade on. While this activity may help us re-engage with lapsed purchasers, we've got a very strong and loyal customer base that we intend to reward first."

IN MY VIEW - 6 OUT OF 10

I'm a chocolate biscuit fan. The office at Brahm shows no sign of the general decline in consumption and every tea run showcases some new flavour or limited edition. It's great that a brand such as Penguin is celebrating its 75th birthday. That's real heritage.

On face value, I like this promotion. The promotional packaging is a treat: simple and with impact. The major prizes are clear, relevant to the anniversary and, all things being equal, likely to encourage that all- important switch purchase.

A £1,000 cash windfall is a pleasant experience for just about anybody. But it's a prize any brand could have offered and doesn't really convey how special this brand is.

I don't think there are any major issues with the "golden ticket" mechanic, apart from the impending squabbles over the kitchen table as to who found it first.

The money-box draw is an attempt to create pester power, but perhaps misses the mark. I fondly remember the NatWest piggies that I got as a kid with my first account. But that was from a bank, not a chocolate bar. The rational act of saving money doesn't quite fit with chomping a choccie bic. Would a link to the latest penguin flick, Surf's Up, have been a better choice for the kids?

Delivering successful on-pack promotions in a supermarket presents many other challenges, however. Upon being asked to critique this promotion, I went to my local supermarket. I couldn't find a Penguin among the puffins and robins. And there lies a problem. This promotion feels like a little fish in a big pond. I'm reminded of Nemo, swimming lonely and lost in the Pacific. If you can't see the brand, and subsequently the on-pack offer, how will you buy it?

The point of purchase in a supermarket starts from the minute you step into the car park. Posters, trolley ads, sampling, in-store radio and TV, magazines, shelf barkers, floor graphics, display units ... the list of store media is endless. The best on-pack promotions use a combination of these to build awareness. That way, mum arrives at the fixture with your brand promotion at the top of her shopping list, and may well be inclined to look further.

- Paul McGann is associate director of promotional marketing at Brahm.