Andrex is starting to experience some wear and tear. The Kimberly-Clark-owned brand, sits at the top of the bath-room-tissue category. However, in the first quarter of 2009 the FMCG company said Andrex had contributed to falling sales volumes in its consumer tissue portfolio.
Andrex is best-known for its golden labrador mascot, introduced in 1972. Its puppy may remain as playful as ever, but the brand itself has lost some of its bounce. In the first quarter of 2009, Kimberly-Clark's European consumer tissue sales were down by nearly 21% compared with 2008. Sales volumes had dropped more than 6%.
The company claimed this was mainly due to lower sales of Andrex, blaming higher production costs and continued 'softness' in category sales, especially in the UK.
Rising pulp and energy costs are undoubtedly having a negative impact on the bathroom tissue sector. Environ-mental issues, too, are a concern. Andrex has attempted to tackle such problems by rolling out more added-value products and a range of green initiatives.
On the upside, in spite of the recession, Andrex seems unlikely to face the problem of consumers trading down. In past downturns, toilet tissue is one product shoppers have proved unwilling to compromise on.
What can Andrex do to address overall weakening sales? We asked Neil Quick, joint managing director of Publicis, and Nick Britton, brand manager at Evian, for their views.
Neil Quick joint managing director, Publicis
The paper aisle in the supermarket is shopped in - on average - 10 seconds flat. That's pretty much at a jog. Don't even think: just lob the usual, cheapest or on-offer rolls in your trolley.
This is why a lot of the usual stuff that brands rely on breaks down. Andrex must have expected great results from its recent innovations: a kids' moist paper, a mini on-the-go pack for when you are caught short in a venue offering only the greaseproof variety and a lovely shea butter-impregnated paper with a bravely dark-brown pack.
But, so far, it seems the shopper hasn't slowed down enough to take notice. The recession means the proportion who 'lob in the cheapest' has increased compared with those who 'lob in the usual'.
Andrex is the most usual toilet paper of all. A household standard: loved, trusted, and with that nice puppy.
What's more, it is what your mum used.
I worry that the real problem is that simply isn't enough any more, as own-label products get better, and no one has really cracked the model of how to innovate in the category.
Remedy
- Innovate on the base product which, to be honest, isn't all that good compared with Velvet or Charmin. Don't flit around the edges - consumers will notice and buy the brand more often.
- Think about what value means for consumers. It's not enough to just be nice, soft and familiar. Sow the seeds of doubt about the cheap competition. Is it, perhaps, a false economy?
- Understand the consumer journey. It's not just seeing a TV ad and then, some time later, having a leisurely browse at the shelf. It is vital to get to people just before they break into that jog down the aisle.
Nick Britton brand manager, Evian, Danone Waters UK
Toilet tissue/paper/loo roll - we all use it several times a day, everyday, so you would think the category would be pretty safe during a recession. I honestly can't see the public deciding to cut back and plunge themselves back into the Middle Ages (or perhaps people are switching to the use of bidets... I think not).
So how can it be that the market-leading golden labrador brand is posting declines? The answer - false economies.
There are two things I have never compromised on: first beans, and second loo roll. Yet Andrex is losing out and wrongly so.
Buying the super-cheap versions is just a waste of money: a quarter of the price, yet six times the amount of sheetage required. So the choice comes down to brand versus a 'quality' own-label offering.
In a bid to save money, consumers are going for own-labels, yet in the retailer I visited today it was 30p more for its own-brand 12 rolls than the Andrex 12 (which admittedly was an 'extra value' pack; a standard pack contains nine rolls).
Remedy
- Reassert the reasons why it is still good value to buy Andrex - soft, strong and very long. You really do get what you pay for, and Andrex has a superior product offering, which does do the job more effectively.
- Focus on the emotional. Yes, the product benefit needs to be reaffirmed, but there is nothing more powerful than wanting to do the right thing for your family.
- Re-engage the principal shopper and reassure that by buying Andrex you are doing the best for your family. And, yes, keep the puppy to do this.
- Buy shares in bidet manufacturers, just in case.