Australia’s Sipahh Straws has long been something of a local category and packaging success story on the back of its fun straws, through which young consumers could flavour their milk without the mess of spooning powdered flavourings into a glass and stirring.
Its innovation has been credited with creating growth and sales in a crowded product category without taking share from market competitors by drawing new consumers to the modified milk market segment through a 21st century approach to milk consumption.
The company’s novelty straw has over the years earned the brand a host of international awards and led to the design being adopted and sold in more than 100 countries.
In recent years in its home Australian market, however, the boom appears to have faltered and put the brand at risk.
Declining market share, in both volume and value, and the possibility of losing its spot on the shelves of at least one major retailer, forced the company, by then acquired by specialist FMCG marketing company Club Trading and Distribution (CTD), to seriously consider how to bring its fortunes on the upswing again.
It turning to Melbourne branding agency Zoo Advertising, which identified packaging as a key tool to re-ignite the brand’s appeal through a clever tweak to broaden its target audience.
“Sipahh has always been positioned and perceived as the novelty treat in the category. The market dynamics have shifted so we needed to determine the right way to position the brand for the long term,” strategist and FMCG specialist at Zoo, Sarah Spiteri says.
She says that the brand’s initial success had been built on its “fun” appeal, and its re-assurance to parents that it was a healthy alternative to other modified milk products.
“Originally targeted at children, as the ‘Treat Mum Could Say Yes To’ the range has ridden on a success born of innovation itself – the process of modifying milk – made fun,” she says.
“And with less than half a teaspoon of sugar, each Sipahh recyclable straw contains 100 per cent naturally flavoured Tapioca beads, designed to complement the goodness of pure, fresh milk,” Spiteri adds.
She explains, however, that the very things that powered its initial success was now causing it to struggle. In other words, the novelty had worn off, and “pester power” – its main sales generator – was no longer effective.
Even more ominous, it appeared that at least one retailer was considering whether or not to continue carrying the brand.
“It was disengaged and wanted to see a growth plan in order to provide more facings,” she says.
Initial attempts refresh the brand only produced lacklustre results, far from what was expected or needed to stave off the sales decline.
A strategy was devised that involved a total re-positioning of the brand to increase both the number of potential consumers and the frequency of product usage.
The biggest change in the strategy involved switching the product’s appeal to a new target audience. It involved pitching the branding away from the consumers – kids – to the ultimate purchaser instead – the mums.
The new packaging, thus, aimed to simplify and consolidate the new brand identity, involving both the structural and graphic elements of the pack.
For the pack itself, a new milk carton that reflects more of the fresh milk category was adopted. This was further refined by the introduction of black and white typography for key messages, with more space, and less on pack communication, to let the product tell the story.
The newly-packaged brand was re-launched in September 2012, and achieved immediate results. One of its “at-risk” retail channels, Woolworths, re-affirmed its commitment to carrying the brand.
And the new brand owner, CTD, is confident the refreshed identity would help it double sales over the next three years and achieve sales of more than 20 million straws in the next year.
The packaging for Australia's Sipahh straws has been successfully re-designed to lift flagging sales.
