The Teabag Battle
The power of advertising could last for over couples of decades that ‘PG tips’ has rooted into British tea culture just as Coca-cola to carbonates drinks. This case study of branding is quite old but still classical and have profound influences until now.
The idea of using chimps as its “celebrity” came from a copy writer who visited Regent’s Park Zoo and saw a tea party held by the chimpanzees. It received an overwhelming popularity within two years and lifted PG tips to the brand leader. Apart from creativity of the ads,how to keep consistency from the ads, PR campaigns to the brand image turned out to be the major mission of the teabag battle. To keep fashionable and deliver continuous delights to the consumers, the chimps have experienced various events according to the changing of the society and they always spoke the most up-to-date slang.
(The First TV ads of PG Tips)
Well, it’s also a good example on how to measure and distinguish the add-value brought solely by the intangible BRAND.
1. Blind test that.
Although consumers claimed that PG tips tasted better, in the blind test of ten labels from big player Typhoon to supermarket own products, the subjects couldn’t tell the difference. A cup of tea is only a cup of tea, maybe they have added too much milk and sugar:p
2.Demand Elasticity
In the economic analysis chart, the flat curve showed that consumers are less sensitive towards the price change of PG tips. That is to say, not like the fluctuated demand to other brands, they won’t stop buying or switch to other products even if PG tips has raised its price. PG Tips had of course enjoyed the price premium and also was the price leader in the market.
3. Advertising weight
Tetly, the other teabag brand was shown to be very vulnerable in loyalty that the demand would easily plunge if they reduce the advertising intensity. In contrast, PG Tips’ brand equity was strong enough to survive a couple of months of no advertising. It kept having a robust performance of about 25% market shares, beating all the rivals with less marketing investment.
4. Qualitative Research in perception of the brand
PG Tips was “loved” by the subjects, and they responded instantly with the slogan in the chimps advertising. Therefore, besides the high brand awareness, consumers had also built a strong and sentiment relationship with the brand, which is admirable for all the advertisers.
In recent years PG tips’ position is challenged by Unilivers’ ‘ignorance’ after acquiring and also by ever-growing substitutes such as coffee and green teas. It is still a mystery that how far the brand could go, while the fact that the chimps has brought PG tips half a century of leader in the UK tea market is already a miracle.
