In the 90s, Tango became an iconic British brand, outstripping sales of Coca-Cola's Fanta by almost two to one. This decade, however, things have been very different. Sales figures released last week by Tango's parent, Britvic, highlight the soft-drink's woes: its sales fell 19% in 2004 to £51m, down from £64m in 2003. Fanta now outsells Tango by three to one (Marketing, March 23).
If this were the first time Tango's sales had dipped, Britvic would have nothing to worry about. After all, soft-drink sales are tied to hot weather and last year's appalling summer did not help. However, it was not just last year. Tango's sales have been slipping steadily since 1999. And, despite spending millions on brand extensions, repackaging and glossy, high-profile advertising campaigns, Britvic seems unable to stop it.
In an attempt to reverse the brand's decline, Britvic is launching Tango Clear to take on Volvic's Touch of Fruit and Coca-Cola's Oasis. It is hoping that the 'no added sugar' clear, fizzy drink will appeal to consumers looking for a credible alternative to the existing fruit carbonate offerings, and that its sales will help to reverse the brand's fortunes.
Health concerns
The launch of a clear drink is a sensible start. The heart of Tango's problems, according to industry experts, is the fact that orange-coloured fizzy drinks are considered unhealthy and are avoided by increasingly health-conscious consumers. This is evident in sales of Fanta, which plummeted last year by 11%, from £185m to £162m.
'The question is, what do these drinks represent and what do they substitute?' asks Bobby Hui, head of strategic planning at Saatchi & Saatchi and a former European advertising director at Coca-Cola. 'There is a trend among consu-mers towards healthier products, and they will be thinking of shifting from orange fizzy drink to orange juice.'
Coca-Cola's decision to put proper support behind Fanta in the UK has certainly contributed to Tango's decline. The soft-drinks giant has greater clout in distribution and has eroded its rival's market share. Six years ago, Tango's sales were £90m and Fanta's just £51m. Since then, Tango's sales have almost halved, while Fanta's have more than tripled.
Rainey Kelly Campbell Roalfe/Y&R group account planning director Emer Howard, who oversees its Danone account, argues that brands such as Tango have been caught out by the trend for consumers to look for additional functional benefits from drinks. 'Five years ago, taste was enough,' he says. 'Now consumers want to know what else they can get from a drink.'
Belated innovation
As well as pointing to last year's poor summer weather, Adrian Troy, Britvic's brand controller for Tango, says the decrease in sales can be blamed on lack of innovation and, in particular, the failure to focus on a 'no added sugar' strategy in the fruit carbonates sector. He adds that Britvic is now addressing this with the £7m launch of Tango Clear, which will target 18- to 30-year-old women.
Although Britvic hopes Tango Clear will be the start of the brand's revival, in the past it has had little success in moving Tango into new categories. In 1995 the company launched Tango Still, which it ditched after just three years, and last year it axed juice and milk-based drink Tango Strange Soda, originally called Freekee Soda.
Troy believes that consumers viewed Tango Still as a 'strong squash'.
Tango Clear, he insists, recognises that the market has changed and Britvic has to app-eal to the health-conscious.
Marketing challenge
One senior drinks marketer believes the launch will not be easy because, traditionally, the Tango brand has not been targeted at the health-conscious market. 'Tell me what proposition can support Tango's original position alongside this healthier, clear brand,' he says.
Troy admits that there will be a significant marketing challenge, but says he is tackling it by positioning Tango Clear differently from the core brand.
In particular, the range will not use the irreverent, surreal ad strategy that has promoted Tango since the 90s.
Experts say they will be interested to see how Britvic markets the clear variant, as advertising has always played a major role in Tango's success - much of its growth in the 90s is attributed to the famous ad featuring an orange man slapping a Tango drinker.
Two years ago, as part of its strategy to take on Fanta and revive sales, Britvic appointed Clemmow Hornby Inge to handle its advertising. The agency produced a new take on the brand's old campaigns and reintroduced the well-known strapline 'You know when you've been Tango'd' after an eight-year break.
Richard Huntington, planning director at HHCL/Red Cell, the agency that originally came up with the line, is not impressed with the latest efforts. 'Tango has lost its iconic status and the solution of reliving past glories has not worked,' he argues.
Huntington is not entirely correct. Britvic did briefly manage to turn the tide in 2003. Combined with a hot summer, the launch of the ads helped to increase Tango's sales by £4m to £64m.
Troy says the company also credits that year's growth to its decision to slash the Tango range from 15 variants to five. It is ironic, then, that its hopes of revival rest on one of its most ambitious launches to date.
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