On 5th October 2018, Sotheby’s sold a painting at an auction.
It was sold for an artist record price of £1.04 million.
The painting was called ‘Girl with Balloon’. It was by an artist called Banksy. You may have heard of him.
Within seconds of the gavel dropping, the attendees were gasping. Something extraordinary was happening.
The canvas began sliding out of the bottom of the frame and shredded itself to the sound of a siren. The shredder stopped when the canvas was halfway through.
After the shredding there was a negotiation with the buyer to confirm the sale. Three days later it was agreed that the sale would go ahead at the full original price.
The buyer made a pretty good decision. On 14th October 2021, the piece was back at auction with Sotheby’s. The guide price was £4-6 million.
It sold for £18.58 million.
The stunt worked. It generated huge publicity AND huge value for this (and other Banksy…) artwork.
Banksy had broken the rules yet again.
Why are we talking about this? In the FMCG world we often follow a set of rules.
A few of these rules are explicit. For instance, a retailer says you need a specific case configuration.
But many more of these rules are implicit. For instance, you always launch new products with a price promotion.
Nobody is telling you to follow these rules but you do so anyway. Maybe because it’s what you’ve always done. Maybe because everyone else does it. Maybe because it’s the easiest thing to do.
But when everyone follows the same set of rules, it means everyone ends up doing similar things.
Think branded bays. You get your one rolled out this week. Then your competitor gets their one rolled out next week.
Think loyalty card prices. You promote this week. Your competitor promotes next week.
It turns into a zero-sum game.
To drive growth, you need to be different. To be different, you need to do different things. To do different things, you need to break the rules.
The FMCG equivalent of shredding a painting.
So, how can you do this?
Understand the current rules. First identify the implicit rules that you are following.
For instance, a ‘rule’ on promotions that most brands follow is that the incentive to buy is a price discount. Most promotional activity follows this rule. A ‘rule’ for most display units is that they are rectangular. Most display units follow this rule. A rule for new product launches is to launch with a big 2-3 week burst in store. Most new product launches follow this rule.
Flip the rules. Once you’ve identified the ‘rules’, consider flipping them.
Most promotions give shoppers a price discount as the incentive to buy. Flip it. What if you gave shoppers a different (non price) incentive to buy? Most display units are rectangular. Flip it. What if you use more differentiated and disruptive shapes? Most new products launch with a big 2-3 week burst in store. Flip it. What if you extended the launch window?
Develop differentiated activities. Use your ‘new rules’ to do new and different things.
Your new rule on promotions is to give shoppers a different (non price) incentive to buy. So, you might develop an activation campaign. The latest “Share a Coke” campaign or “Find the purple can” Diet Coke activity in Sainsbury’s are great examples.
Your new rule on display units might be to use differentiated shapes. So, you might have a display unit in the shape of your pack. Some of the Red Bull impulse units are a great example. Or a display unit that brings to life the product. The Campo Viejo display units that are shaped (and look like…) a wine barrel are a great example.
Your new rule on new product launches might be to extend the launch window. So, you might prime shoppers in advance. Use some communication at shelf before you launch, to tell shoppers what to look out for and when. The recent Avène suncare launch (using one shelf – presumably their future shelf space – to do this) is a great example.
We’re all playing the FMCG game. It’s a game where most people are following the same set of rules. Even if they don’t realise they’re doing so.
So, take a step back. Understand the rules. Then break them.
Don’t play the game, change the game.
Feel free to forward. Have a great weekend. Speak to you in a fortnight.