And the brands played on

 

ideo.com

It all started at the end of summer. It must have been this story that sowed the seed - the much-shared latter-day Cautionary Tale of Nike. Massimo Giunco posted Nike: An Epic Saga of Value Destruction - I echoed the thoughts of many, muddled in with my own ...

 

Sacrifice human relationships, specialist knowledge, experience, informed judgement and insight - from employees to suppliers to customers to shoppers - on the altar of "data-driven”. This is a sad tale, brilliantly written (“a cannibal ecosytem”, “... less effective but easier to be measured vs. something that was more effective but less easy to be measured ...”). But not without hope that one of the greatest brands of our time can survive this self-inflicted malady

Hot on Nike’s heels, this came along - an article by Anders Indset on the theme of Marketing is dead - long live Marketing! The author starts by reflecting back to the glory days of German ad agencies in the early 2000s (a nice little nostalgia trip for me). And then, how brands faded into the background as years of CpCs, click-marketing, Customer Journeys and search optimisation took over. But, he concludes: The world of platforms and click-optimisation has reached its logical endpoint. When everyone’s on the stage, no-one watches any more.

 

So, what now, in the age of ChatGPT and LLMs? Anders hails a return to the good old marketing of Kotler and Aaker - investing in brands, the 4Ps, good ideas. I’m definitely all for this, and will even forgive Anders his rather bizarre inclusion of the “American” Kevin Roberts and his Lovemarks amongst the marketing and advertising greats.

 

The next thoughts that flitted into my consciousness were those of Paul Worthington of invencion, on Quantitative Destruction and The Efficiency Delusion. In these articles, he writes of “quantitative myopia” - a dangerous and arrogant myopia that ignores complex reality while focusing intently on a simplistic, quantitatively measureable model, which they believe represents everything that matters.

 

The “they” in all this, the quantitative myopics, are the executives rising to the top of companies. Nike is one example. Starbucks is another losing value in its aim to become a closed-system, “category of one”, where it doesn’t matter if customers have a rotten experience as they have no choice.

 

Meanwhile, all this is exacerbated by marketing budget cuts and “having to do more with less.” Anything to do with the customer - marketing, experience, branding - is now on a very thin shoestring.

 

All of this is opinion, of course. So I’ll bring in some data. I'm not against data. But it doesn’t drive me. Or even inform me - only humans do that. The 2024 McKinsey report on the state of Marketing in Germany is called Back to the Future. What are the big topics close to the hearts of Germany’s marketers in 2024? AI? Marketing ROI? Yes, these are important, but they don’t make the top three most important. And these represent a return to the core competencies of marketing:

1. Creative content - a renaissance of originality

2. Brand-building

3. Authenticity - in word and deed.

 

The evidence reels in thick and fast - the brands are back in town. System1 have recently demonstrated how creative consistency (which doesn’t mean matching luggage, by the way) leads to creative quality, stronger brands and greater profits.

 

Which brings me right up-to-date with Interbrand and The Best Global Brands 2024, celebrating its 25th anniversary. There’s plenty to celebrate, but also a warning or two: performance marketing tactics can drive short-term financial gains, but an increasingly short-term mindset has cost the world’s most valuable brands significantly.

 

Interbrand’s advice is good - look behind the clever-cleverness of this phrase: the fastest-growing companies are not branding their businesses - they’re businessing their brand.

 

So, there we are. Branding being back in business is in the air. I expect the quantitative myopics would explain all this through a mixture of the algorithm, the Extrawurst echo chamber and she-would-say-that-wouldn’t-she. 

 

But I prefer to put it down to synchronicity.

RETROWURST: Bionade October 2006

 

I wrote a piece about Bionade in October 2006, just as the soft drink brand with a difference seemed to demonstrate that “the only way is up.” Sales in 2004 had been 7 million bottles, in 2005 20 million and 2006 was looking to at least triple that.

Rather cheesily, I wrote that “this is the story of what happens if you follow your dreams, believe in your product and stay true to your roots.”

----------

Rather a lot of people in Germany are nursing hangovers at the moment, following the Oktoberfest and the celebrations in connection with the Tag der Deutschen Einheit on 3^rd October. And what better way to nurse a hangover could there be than with something healthy, refreshing and German? This is the success story of a new German brand – Bionade. 

 

Bionade is a non-alcoholic drinks brand that has taken Germany by storm in the last few years, interestingly, with very little traditional advertising investment. The story of Bionade is the story of what you can do if you follow your dream, believe in your product and stay true to your roots.

 

The Bionade story started twenty years ago, in the little 3,000 inhabitant town of Ostheim vor der Rhön, which is in the North-Eastern part of Bavaria: brewery country. In this area, there are, or were, numerous small, family-owned breweries. The Braumeister of one such brewery was the inventor of Bionade. The Peter-Brauerei was struggling in the 1980s and was not far-off bankruptcy. As a desperate measure, the family opened a disco on the brewery grounds which just about kept the business afloat. As he pulled pints – or half-litres – for bored young locals until 5am, the Braumeister Dieter Leipold dreamed of inventing a drink which would not just keep the brewery going but give the whole family a comfortable existence.

 

Herr Leipold’s dream was of an alcohol-free refreshing drink that would be like “Fanta without chemicals”. Using his skill in the processes of brewing and fermentation and his knowledge of organic ingredients, he started to experiment with fermenting organic barley and in 1995, Bionade was born.

 

The family were proud of their product and wanted to offer the licence to other breweries to ferment the product themselves, using their existing skills and equipment but, in the early days, no-one was particularly interested. So, the Peter-Brauerei started producing Bionade themselves. The other breweries are probably kicking themselves now, as Bionade has been a runaway success in the last three years with 7m bottles produced in 2004, 22m in 2005 and a projected 66m for 2006. The brand is estimated to be worth €100m.

 

Bionade is a simple enough idea – a soft drink made from fermenting organic barley and malt, then diluting and adding organic sugar and concentrated juice. The drink comes in a variety of flavours – Elderberry, Herb, Lychee and Ginger-Orange. Bionade got its real breakthrough in 1998 when the owner of the über-trendy Gloria Bar in Hamburg discovered the drink at a Gastronomic Fair and started offering it to the movers and shakers who frequented his bar. In fact, most of the marketing that Bionade has carried out is non-traditional. There were no glossy T.V campaigns, rather, the brand has relied on word-of-mouth, personal recommendation (face-to-face and via Internet) and guerilla activity (promotions in “happening” bars).

 

The success has been phenomenal: sometime last year, Bionade crossed from being cult to being mainstream but has lost none of its appeal. The major grocery retailers even dropped their normal listings fee, so keen were they to get Bionade on their shelves. 

 

The Peter-Brauerei is finding it difficult to cope with demand, but plans are afoot to substantially expand their premises. Perhaps one heart-warming side to the story is that success does not appear to have gone to the family’s heads. Unlike others in their position, they have not yet been tempted to sell-out, even though it is known that Coca-Cola has offered them a substantial sum. Herr Leipold still owns the patent and his wife and stepsons run the company. Behind their decision not to sell seems to be an acknowledgement of the jobs and prosperity that they have brought to their little corner of Germany and certainly the future plans seem to be to support local farmers by buying all the ingredients from the Rhön area and to expand abroad slowly and step-by-step.

 

Bionade is a drink that not only tastes good, but one has to feel good on hearing the success story of Herr Leipold and his family.

----------

It’s been a long time since I’ve had a bottle of Bionade. I may have had one last year - I can’t really remember. 2007 proved to be the peak in the brand’s sales, at 200 million bottles. In 2008, the brand had a price rise (maybe to fund the first real ad campaign, which was along the lines of The official beverage of a better world).

Sales started declining. In 2011, they were down to 60 million bottles. The brand was part- and then completely sold off to Radeberger in 2012. Dieter Leipold died in 2014. 

Plenty of factors contributed to Bionade’s fall from grace. Too many wannabes, trying to get in on the act? A perception that the brand had sold out? 

The brand made a fresh start in 2018, with its purchase by the Hassia Group. I couldn’t find any recent sales figures, but there seem to be signs of a slow comeback. Apparently sales did well during Covid and the brand is riding a little - shock horror - retro wave at the moment. 

And yet ... I feel as if it’s lost its quirkiness and bite. Ice Tea, Mate and various “cloudy” versions have joined the flavour line-up. The brand slogan is translated as The most honest fizzy drinks in the world. Bionade: Honestly Good.

But I still have a soft spot for this soft drink. It was new in Germany when I was. It was a sustainability pioneer among brands and had a well-deserved Golden Age around the time of the football Sommermärchen. I do hope it can find a sunny future.