2. Project background

Spear & Jackson’s headquarters are in Sheffield, the home of steel, and its roots go back to the 1760s; the company now has divisions throughout England, France and Australia.

However, globalisation and the domination of Far Eastern economies continue to take their toll on UK manufacturing. Many companies, unable to compete on price, seek every possible method of reducing costs in order to remain competitive. Meanwhile, the government seeks to place a premium on British products, urging manufacturers to find new efficiencies and to increase investment in research and development (R&D). Some British manufacturers have gone under; some have found outsourcing or relocation to be the only way to stay afloat. Few have found success.

Amidst all this, Spear & Jackson’s wood saw division was in decline. With a turnover of just £675k and with its reputation and viability on the line, the R&D department was under pressure to bring a profitable new product to market in just six months. Costs had been pared down to the minimum; turnaround had to come from increased revenue, delivered through clever marketing, new products or new markets.

Spear and Jackson’s marketing director contacted Propaganda and tasked us with turning around the wood saw division. Together, we developed a set of objectives:
• To research the market to identify new product opportunities
• Based on the findings, to have the R&D team develop a new product, appealing to both existing and new (possibly younger) consumer groups
• To develop a unique name, brand and market proposition for that product
• To devise a strategy for successfully taking the product to market
• To ensure that any gain in market share would be at the expense of the competition, not other Spear & Jackson products
• To sell 30,000 units in the first year

The project had to be completed in six months, from commencing research to launch in March 2004. All Propaganda departments were involved: the planning team led the Discovery process; the creative director and chairman led brand planning and proposition development; Creative Services developed campaign strategies; Client Services coordinated implementation, and PR delivered launch communications.

3. Approach proposed by consultants

Propaganda’s planning team led a fast-track Discovery project into market dynamics and trends, the competition, and – crucially – the psychological and emotional processes which tradesmen go through when purchasing a saw.

We found that tradesmen were loyal to the brands they used on a regular basis, which they selected according to comfort, weight, balance, quality, speed and durability. Saws are replaced every 2-4 weeks and, while quality and efficiency were essential, price was a significant factor - the average wood saw costs around £5. Propaganda’s ambition for Spear and Jackson was to challenge the traditional mind-set, break habitual purchasing behaviour, and persuade tradesmen not just to switch brands - but to pay twice as much. Nothing like this had ever been attempted in the wood saw market.

Based on our recommendations, Spear & Jackson’s R&D team developed an idea for a new universal hardpoint, non-resharpenable wood saw. The rigid 0.91mm blade would minimise whip and vibration, making cutting more efficient. A soft-feel grip and finger guides would make for safety and accuracy, and the saw’s deep gullet would allow cut material to be removed more quickly. Overall, the saw would offer greater comfort and speed whilst increasing longevity.

Independent tests on the prototype, carried out by CATRA (Cutlery and Allied Trades Association), showed that it lived up to expectations, and even offered a 20% decrease in wear compared with other saws. With product design now approved, Propaganda’s task was to take it to market.

For the wood saw to be a success, we needed a marketing campaign just as innovative and exciting as the product itself. Propaganda recommended moving the marketing campaign away from traditional promotional activities, where the competition is fierce, to product differentiation whilst leveraging the equity in Spear & Jackson’s name.

Propaganda had highlighted two key purchase factors - speed and durability - so Spear & Jackson’s product had to be seen to be the fastest, most durable saw available. An additional insight was professionalism: tradesmen wanted to buy from professionals; builders’ merchants only wanted to sell professional products. This suggested the proposition ‘the best professional product that you can buy in any category’. Most importantly, in addressing a traditional and even cynical consumer group, we felt that all collateral, from advertising to packaging and point of sale (POS), had to reference tangible research findings in order to substantiate the product’s premium price. This was the foundation and provided increased credibility for all communication.

Most saws on the market had dull names. Our name had to personify the brand essence – speed, quality, durability – and engage with a younger generation of tradesmen as well as age 45+ Spear & Jackson loyalists. Propaganda’s naming workshop recognised a product that was at the top of its ‘food chain’; thus, Predator was born.

Predator cost more to make, and had to be more expensive to live up to its premium brand positioning. A price point of £9.99 demonstrated added vale, but remained realistic.

It was vital to differentiate the Predator on the shelf; innovative packaging was required. Our insight into tradesmen’s ‘touching and feeling’ process, plus a requirement to guard the blade, led us to develop multipurpose packaging, which doubled as an aid to measuring and drawing:

Propaganda’s strategic PR programme targeted professional tradesmen’s and merchants’ publications. We created collateral in support of Predator, including a giveaway of 200 saws, and generated a highly positive review in Professional Builder by industry guru Roger Bisby.

Our compelling trade advertising campaign focused on the differentiating benefits of the saw; they defied the conventional thinking of marketing in the sector, and provided quality assurance by focusing on the Spear & Jackson name.

The campaign to launch the Predator challenged the convention of the industry in every respect; from design innovation to the marketing launch tactics. The deliberate, advance creation of a sub-brand for a wood saw had never been done before; most companies simply rely on their own brand name and the predictable, commodotised purchasing behaviour of tradesmen.

4. Success factors and challenges

The primary challenge was to break tradesmen’s repetitive buying behaviors. To do this, Propaganda created a strategy which would encourage trial. Firstly, we introduced a first-in-sector money-back guarantee, shown on the packaging and in a first-in-sector counter-top merchandiser:

Secondly, we sought the endorsement of independent body CATRA, thereby providing peace of mind for the buyer.

Thirdly, we created a powerful brand proposition which, based on solid understanding of buyer behaviour, made Predator the must-have tool for every serious tradesman.

Lastly, supported by Propaganda, Spear & Jackson’s marketing director had the confidence and vision to drive a strategy and gain backing from the Spear & Jackson board for a branding and marketing programme that was unconventional for an industry steeped in traditionalism.

Working together, Propaganda and Spear & Jackson achieved the following results with Predator:
• Against a first-year target of 30,000 units, Spear & Jackson sold 38,000 in the first 16 weeks post-launch. Over 200,000 units were sold in the first year.
• Their wood saw division increased its turnover from £675,000 to £1,765,000 within a year. It expects to turn over £3,000,000 in its second year.
• Predator’s success created new jobs at Spear & Jackson’s Sheffield base; headcount increased from 19 to 34.
• £350,000 was invested in additional machinery to meet demand for the Predator. As of September 2005, capacity has again been reached, and further investment is anticipated for 2006.
• The success of the Predator has necessitated the launch of 4 further products under the Predator brand name, and all of them are now listed in B&Q.
• Break-even point was reached within 20 weeks of launch.
• Not only did sales of other Spear & Jackson wood saw products not suffer; due to the ‘halo effect’, their sales actually increased.

Further benefits include:
• Greater publicity and goodwill for the Speak & Jackson name.
• Spear & Jackson is increasingly seen as an innovative and contemporary brand.
• Greater pride and motivation amongst all employees and associates.

The project demonstrated the need for a clear and integrated strategy extending from before product development begins all the way through to post-launch. Additionally, Propaganda demonstrated that planned, controlled success can only be achieved when founded on a deep understanding of the market and its buyers. In a traditional industry such as this, ground-breaking work can only follow the breaking of conventional attitudes and behaviors – on the parts of buyers, sellers and manufacturers.

5. The client/consultant relationship

Propaganda has had a retained relationship with Spear & Jackson for three years. Propaganda reports directly into Spear & Jackson’s marketing director; however, the relationship between both parties is based on a mutual understanding of the importance of strategic branding and marketing communications. Fundamentally, the client’s marketing director had the vision and confidence to work with consultants in an industry that has a conventional approach to communications.

The success of the Predator launch helped to cement the client relationship. Propaganda continues to work with Spear & Jackson on a retained basis as its specialist branding and communications consultancy; spanning brand, marketing and public relations. A Propaganda consultant also works in-house at Spear & Jackson three days a week.

“In a sector not known for dynamic marketing, where cost-cutting is seen as the most effective solution to profitability, it was a political risk to bring in consultants with a different approach. However, Propaganda’s discovery process and ability to unearth real industry and consumer insights ensured that while the strategy was seen as unconventional, it was always grounded in fact. This minimised our risk and enabled us to develop a new product range and a campaign strategy. The result delivered by Propaganda defied the state of the market, and turned Spear & Jackson’s wood saw operation around.”

Derek Thomas, marketing director, Spear & Jackson