Hovis: Packaging redesign
Packaging: Branded - Food
Jones Knowles Ritchie
Turnaround at A Critical Moment
The packaged bread market is large but mature, with modest volume growth and the leading brands locked in a vicious battle for share.
In mid 2008, Hovis was in serious trouble, having lost leadership to Warburtons 18 months earlier. So grave was the rate of decline, if the trend were to continue for another year, Hovis would hold less than half of Warburtons’ share.
By the end of 2009, Hovis had pulled off a remarkable turnaround, with sales up 14% and a 5% recovery in market share.
This £57m increase in grocery sales mode Hovis Britain's fastest growing FMCG brand in 2009.
The recovery began with new packaging design which provided a 30:1 ROI, credited by the company with ‘stopping the rot and laying the foundations of a glorious turnaround’.