Not long ago, it did not take much of an exhortation to 'p ... p ... pick up a Penguin' to have consumers reaching for the chocolate biscuit bar in stores. However, in the face of ever greater competition, Penguin's sales have nose dived from 拢44m to 拢31m - a fall of nearly 30% - in the past two years.
Even more disturbing for brand owner McVitie's is that the overall UK sweet biscuit market has experienced turnover growth of more than 13% in the same period.
Increasing the pressure on the brand further has been the recent media focus on healthier snacks in schools. The chocolate biscuit market as a whole is struggling as a result, declining by 16% since 2003, according to Mintel.
Last year, McVitie's dropped French biscuit brand BN to focus on Penguin in the children's sector - but the market has declined by about 8% since 2000.
To counter this trend, Penguin bought promotional rights to blockbuster Spider-Man 2 in 2004, but again appears to have been pegged back, this time by the declining appeal of character merchandising, a problem attributed by Mintel to parents becoming more resistant to buying products they perceive as 'fads'.
The film tie-up has not been Penguin's only attempt to connect with a young audience, as it has launched several spin-off brands and limited editions in recent years.
In 2003, it embarked on the biggest promotional campaign in its 72-year history, to back the launch of Penguin Chukka and Penguin Splatz. These were followed by Penguin Snack Cakes and Mini Rolls.
In May, McVitie's sought to revitalise the brand by increasing its pack size to contain nine, rather than eight, biscuits.Yet none of these initiatives has yet turned around the brand's slump.
With the continuing surge in 'healthier' biscuits and cereal bars, there may be an opportunity for Penguin to extend its offering - yet there is nothing in its history to suggest it is positioned to take advantage of the trend.
We asked Richard Kelly, executive planning director at Euro RSCG London, which held the Jacob's account until United Biscuits (UB) bought the company, and Richard Williams, founding partner of Williams Murray Hamm, which handled the rebranding and packaging for Jaffa Cakes, how UB can reverse Penguin's failing fortunes.
DIAGNOSIS 1 - RICHARD KELLY executive planning director, Euro RSCG London
Penguins troop off to breed in the most inhospitable place in the world. They are cool, confident and focused creatures. So why does the brand that shares their name exhibit none of these qualities? Why did it get the name but not the magic?
Penguin biscuits used to be magic.
But then, like many in its sector, it came under attack from all sides: from confectionery, own-label and, most recently, 'healthier' alternatives.
There has been some innovation and communication, but it felt half-hearted and random: what is the link between 'Britain's favourite sandwich biscuit bar' and Spider-Man 2, for example?
Penguin needs to move beyond the declining category it has been playing in and deliver what the brand used to be about and - thanks to its name and iconography - still can be: fun. Two words that don't naturally sit together are 'focus' and 'fun' - but Penguin has lost its fun and its focus. Regaining the former is going to be about exercising some of the latter.
REMEDY
- Centre the brand in fun, not biscuits.
- Use bolder and more simple iconography.
- Think about the brand architecture: the classic product provides licence to have fun with limited editions and extensions.
- Target specific usage occasions in which Penguin can increase its share, and innovate on those terms.
- Reconnect with the generation of recent parents who grew up with Penguin.
DIAGNOSIS 2 - RICHARD WILLIAMS founding partner, Williams Murray Hamm
My assessment of Penguin? Compromised product plus diminished marketing support plus risk-averse management equals brand in freefall. This modern marketing equation could be applied to a host of brands, not just Penguin.
First, the category has undergone a massive upheaval in recent years: consumers are deserting it and a kid's definition of a treat has been redefined. Penguin hasn't responded.
Second, the product is disappointing. McVitie's might think that 'chocolatey' convinces us the brand is made of real chocolate, but it's not.
Third, the brand looks tired. In the late- 80s and early-90s, Penguin packaging set the standard with its witty inners and the bold decision to replace a logo with a Penguin. Since then it has rested on its laurels.
It's not just advertising that suffers burn-out; design does too.
Finally, UB's management must be scared. How can they reinvigorate Penguin in a way that won't be noticed by loyalists or investors? They want change, but not the discomfort that accompanies it.
REMEDY
- Reformulate an improved product.
- Expect packaging to work in a new and engaging way. A singular logo works when you have a massive advertising budget, but without it, it is difficult to build brand personality.
- Take risks, force a reaction. There is greater risk in avoiding risks. I'd like to see Penguin doing something as provocative as Yorkie's 'Not for girls' campaign.
That's what will get it noticed again.