Thirty-four brands made it to the final of the “Brand of the Year 2017” competition organized by “Verslo žinios” and the research company “Nielsen.” The winners, along with the most effective marketing campaign, will be announced at the annual “Password 2017” conference in mid-March.
The majority of the finalists in the “Brand of the Year 2017” competition are brands from four fast-moving consumer goods (FMCG) categories that recorded the strongest sales and the biggest year-over-year growth: food and groceries, beverages, personal care, and home care products.
The jury selected the finalists based on their market share in Lithuania and its change, calculated in units and in value for 2016 compared with 2015. It also took into account whether the entire product category grew or declined. Nielsen collects this data from retail chains and the largest cosmetics, hygiene, and home care product sellers. The only company that does not provide data to Nielsen is Lidl Lietuva.
“This retail chain does not disclose data in many countries, and Lithuania is no exception,” says Artūras Urbonavičius, Nielsen’s Head of Retail Analytics for Eastern Europe and chair of the “Brand of the Year 2017” competition. However, Lidl’s entry into the market has brought undeniable changes.
More favorable toward private labels
“On the one hand, we can see that Lithuanian consumers are beginning to trust private retail brands more. Lidl likely contributed to this as well, since most of its products are private labels. On the other hand, both retail chains and major food brands—traditionally at the top of the FMCG rankings by sales volume—have had to accept greater or smaller losses,” says Mr. Urbonavičius.
The current situation also explains the decline in sales of the food brands with the highest sales. Looking at the top ten of such companies in 2016, only two brands—Dvaro and Rokiškio—recorded higher sales both in value and in volume.
And in 2015, compared with the previous year, as many as six food brands managed to increase at least one of the mentioned indicators. In 2016, the major beverage producers also more often saw declines than growth.
Looking at the competition’s six-year statistics, only Coca-Cola has always made it to the finalists, meaning that throughout those years the brand recorded sales growth. Likewise, Dvaro and Grite enjoyed growth for five years, and Vilkyškių, Volfas Engelman, and Stumbras for four years (the latter did not qualify this time because their sales declined in 2016).
Among the selected finalists, the smaller brands recorded the fastest sales growth in value in 2016: Zigmas, Akvilė, and Pasaka. In terms of sales volume, the strongest growth was seen by Pols, Akvilė, Zigmas, and Aistė.
Next stages
The next evaluation criterion for the competition’s finalists is a survey by the market research company Rait, which will assess the selected brands’ awareness, appeal, recommendation index among consumers, and other data. The market research company Baltmi will analyze the selected finalists’ penetration in households (i.e., what share of households bought the brand at least once during a certain period).
The finalists’ marketing moves, creativity, and innovation will also be assessed. Another winner criterion is the communication effectiveness and image of the brands in traditional and social media, as researched by the media monitoring company Mediaskopas. The selection of the winners will also take into account the year-over-year change in the finalists’ advertising spending — this data is provided by the market research company Kantar TNS.
The main competition title is “Brand of the Year 2017.” The most successful international brand in Lithuania will also be chosen, the most original design solutions will be recognized, and the most interesting marketing moves by small companies will be highlighted. As usual, readers of vz.lt will also be able to vote for their favorite brand and choose their audience favorite brand (voting will start at the end of February).
Finalists of the 2017 Brand of the Year
(The brand, its owner, or representative in Lithuania
1. “Aistė” (“Tukuma Piens” and “Varėnos pienelis”
2. “Akvilė” (“Birštono mineraliniai vandenys”
3. “Air Wick” (“Reckitt Benckiser”
4. “Ariel” (“Procter & Gamble”
5. “Bajorų” (“Vilniaus degtinė”
6. “Bioderma” (“Bioderma Laboratoire Dermatologique”
7. “Biržų duona” (“Biržų duona”
8. “Borjomi” (“IDS Borjomi International”
9. “Bref” (“Henkel”
10. “Coca-Cola” (“Coca-Cola HBC Lietuva”
11. “Dadu” (“Vikeda”
12. “Daivida” (Rokiškis Meat Factory
13. “Dvaro” (“Pieno žvaigždės”
14. “Ecodenta” (“Biok Laboratory”)
15. “Grite” (“Grigeo Grigiškės”)
16. “Kakė Makė” (“Alma littera”)
17. “Lavazza” (“Amoka”)
18. “Lays” (“Pepsico”)
19. “Magic” (Žemaitijos Milk)
20. “Malsena” (“Malsena Plus”)
21. “Maybelline” (“L'Oreal”)
22. “Oho” (“New Nevėžis”)
23. “Paulig” (“Paulig”)
24. “Fairytale” (“Pieno žvaigždės”)
25. “Pols” (“Premia KPC”)
26. “Rasa” (“Biok Laboratory”)
27. “Red Bull” (“Red Bull”)
28. “Rokiškio” (“Rokiškio Cheese”)
29. “Švyturys” (“Carlsberg Baltic”)
30. “Taffel” (“Orkla Group”)
31. “Torres” (“Miguel Torres”)
32. “Utenos” (“Carlsberg Baltic”)
33. “Žemaitijos” (“Žemaitijos Pienas”)
34. “Zigmas” (“Iceco Fish”)
Last year’s competition was won by Vilniaus Paukštynas, which became the “Brand of the Year 2016.” This brand increased sales and managed to reach younger buyers, and one of the company’s key changes is considered to be the decision to create the “Vištiena kitaip” brand.
Most Effective Awards
As with the “Brand of the Year” competition, the awards for the most effective marketing campaigns are an integral part of the “Password” conference. Companies are currently invited to submit their most effective marketing projects — applications must be completed by February 20.
This year’s competition accepts marketing solutions implemented in 2016 and completed no later than mid-February 2017. Works may be submitted in all seven categories, competing in both the large-budget and small-budget segments.
After evaluating the applications, the jury will announce the finalists in each category at the beginning of March. They will present their marketing campaigns at the “Password 2017” conference. Then, the winners in each category will be selected from among the candidates and awarded, and one grand prize winner will be chosen from among them.
The main evaluation criteria for the most effective marketing campaign remain the same: insight (30%), execution (30%), and results (40%). The greatest emphasis is placed on the results.
Read more: http://vz.lt/rinkodara/2017/02/07/tarp-metu-prekes-zenklo-finalininku-34-zenklai
