Y2009 Lowenbrau National Promo Effectiveness

781 views

Published on

A sample report on promo effectiveness prepared upon our on-going tracking of all national-level beer promotions in Russia

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
781
On SlideShare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
12
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Y2009 Lowenbrau National Promo Effectiveness

  1. 1. Löwenbräu Y2009 Oktoberfest promotion PromoIndex™ Sample report on promo effectiveness
  2. 2. A welcome note For most beer producers in Russia promotion activities account for a considerable part of total marketing spends. In Y2009 spring to autumn season 17 national-level campaigns have been carried out in beer category; in June 12 promotions were run simultaneously. It’s a time when it is becoming more and more difficult to get a consumer attention and succeed in getting a positive ROI. With this in mind, Bojole research – an expert in promo measurement – in Y2009 initiated a massive consumer research among Russian beer consumers with a specific objective to evaluate all the promotions in the category. The study was conducted on a continuous basis April-09 to October-09 covering the most heavy season in promo activities of beer producers. Attached is the report summarizing performance of one of the beer promo campaigns - Löwenbräu Oktoberfest national promotion. We are sharing this sample report on a free basis with all beer producers. Similar analytical reports could be purchased for any beer brand under promotion in Y2009. The standard report covers promotion performance compared to industry norms in terms of traditional metrics (awareness level, participation level, overall likeability, uniqueness, relevance, ease to understand, trustworthiness, word-of-mouth and fit to brand, prizes relevance and uniqueness) as well as three exclusive Bojole PromoIndex™ metrics developed to measure ROI: incremental volume generated by a promotion, sources of incremental volume and derived importance of promo prizes. We hope you enjoy this report. Please feel free to give feedback on this study, as we will continue this in Y2010 and want to make sure that it is addressing the needs of all our clients and partners. Alex Lomizov, Research Director For more information please contact me at: a.lomizov@bojole.ru or +7 495 662-8928 ext.101 Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 2 sample report
  3. 3. Contents Executive summary 4 Promotion details 7 Awareness, participation and business effect Promo awareness, participation, intention to participate Incremental volume in transactions and per cent of sales volume Modeling at 30%, 40%, 50% awareness levels Sources of incremental volume Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 3 sample report 9 Promo performance Overall liking, Uniqueness, Relevance, Ease to understand, Trustworthiness, Word-of-mouth, Fit to brand 21 Performance of promo prizes Overall liking, Uniqueness, Relevance, Mechanics liking Derived importance of promo prizes 38 Methodology 49 Terms referenced in the study 50 Contacts 51
  4. 4. Executive Summary (1/3) Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 4 sample report For details, see slide: — Löwenbräu promotion has started under strong competitive pressure — Four more beer promotions were launched the same week — Thirteen promotions overlapped with Löwenbräu within May-June — As a result of promo efforts, 28% of May-June Löwenbräu sales could be attributed to the Oktoberfest promotion — Business effect is at average level in volume terms — Keeping in mind size of the brand the outcome is substantial, though far below the best results demonstrated by … and … — Incremental has been mainly sourced from Baltika 3, Heineken and Stary Melnik — Löwenbräu promotion achieved 17% awareness at national level — This is below average observed in May-June and far below three leading promotions (17% vs. 45%-48%) — Lower awareness resulted in rather low participation (1%) — However, those who are aware of the promo show participation and participation intent rates comparable to the leaders; therefore, lack of awareness is the major weakness of the promotion — Worth to note, participation intent rates among those who are aware are flat across gender, age and cities groups 7 16 19 18 10 12 15 14
  5. 5. Executive Summary (2/3) Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 5 sample report For details, see slide: — In terms of concept and execution Löwenbräu promotion performs rather well, achieving industry average level with most indicators: — Excellent connection with the brand (78% Top2Boxes vs. 73% avg) — Acceptable relevance and trustworthiness (relevance: 36% Tob2Boxes vs. 33% avg; trustworthiness: 50% Top2Boxes vs. 49% average) — As for the prizes, six-packs appeared to be the main drivers for participating in the promotion; in terms of attractiveness Löwenbräu six-packs are ranked 7th among all 61 secondary prizes across all Y2009 promos — At the same time the main prize—trip to Oktoberfest—which have been used as a core of Löwenbräu promotions for several years, lacks relevance and uniqueness — Main prize performance obviously constrains overall promo performance; having the main prize perceived outdated, the promotion concept as well lacks novelty and uniqueness 37 35 29 31 47 44 42 25
  6. 6. Executive Summary (3/3) — Löwenbräu has to reinvent and redevelop Oktoberfest concept which is the core of current promotion and of the main prize. Traveling in general and travel to Oktoberfest in particular becomes less and less exciting and unique, and therefore less capable to inspire consumers and generate incremental sales. — Beer per se is the obvious winner in relevance for a beer consumer. Besides, the major source of Löwenbräu six-packs success as secondary prize in Y2009 promotion is the unique size of the prize (180 cans and 600 cans) and reasonable prize pool. Therefore, this design could be recommended for further promotions. — High promo awareness is the key to achieve high incremental volume. Awareness is a weak point of Löwenbräu Y2009 promotion. Incremental modeling shows that even with current concept and execution awareness uplift of 13pts would have doubled incremental volume, awareness uplift of 33pts would have increased incremental by four times. — Early start of a promotion is a clear advantage under heavy competitive pressure. And each week matters. While planning a promotion for a heavy season, creative media communication and up-to-date and unique concept/prizes become of a particular importance. Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 6 sample report
  7. 7. 17 on-season promotions have been running in Y2009 Apr May June July Aug Sep Oct 16 17 18 19 20 21 22 23 24 14 15 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Bavaria PIT BagBier Tuborg Stella Artois Velkopopovicky kozel Sibirskaya korona Löwenbräu Brahma Tolstyak Ochakovo Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 7 sample report Klinskoe Stary Melnik Baltika 3 Kaltenberg Zlaty Bazant Carlsberg
  8. 8. Description of Löwenbräu Oktoberfest promo Timing SKUs under promo Löwenbräu main prize Secondary prizes 01.05.2009 till 30.06.2009 Glass bottle 0.5l Prize: 7-days trip to Oktoberfest (Munchen) for two persons Mechanics: Collect max codes Prize: Branded mug Mechanics: Collect & get (30 codes) Prize pool: 4 500 prizes Prize: Branded T-shirt Mechanics: Collect & get (50 codes) Prize pool: 2 000 prizes Prize: 30 Löwenbräu six-packs Mechanics: Contest (internet game) Prize pool: Draw each week Prize: 100 Löwenbräu six-packs Mechanics: Contest (internet game) Prize pool: Draw once at the end of promo Prize: 100RUB on mobile Mechanics: Collect & get (collect 20 codes among first 500) Prize pool: 500 winners each week Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 8 sample report
  9. 9. Awareness, participation and business effect
  10. 10. Promo awareness A performance comparison to industry norms 60% 50% 40% 30% 20% 10% 0% 16% Max level: 48% Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 10 sample report 18% June-09 May-09 Max level: 45% Min level: 9% Min level: 15%
  11. 11. Promo awareness A performance within subgroups 60% 50% 40% 30% 20% 10% 0% Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 11 sample report 17% 18% 14% 18% 25-34 YO 19% 35-45 YO 16% Capitals 18% Regions 17% Total Males Females 18-24 YO sample
  12. 12. Promo participation A performance comparison to industry norms Base: all beer consumers Max level: 4% Max level: 3% 20% 15% 10% 5% 0% 1,4% Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 12 sample report 0,3% June-09 May-09
  13. 13. Promo intention to participate A performance index comparison to industry norms Base: aware of Löwenbräu promo Max level: 22% Max level: 18% 30% 25% 20% 15% 10% 0% 14% Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 13 sample report 6% June-09 May-09 5% Min level: 5% Min level: 8%
  14. 14. Promo intention to participate A performance index within subgroups 30% 20% 10% 0% 10% Total sample 11% Males 10% Females 11% 18-24 YO 8% 25-34 YO 11% 35-45 YO Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 14 sample report 11% Capitals 9% Regions Base: aware of Löwenbräu promo
  15. 15. Awareness and participation in May-June A performance comparison to industry norms Participation among aware of promo Löwenbräu Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 15 sample report Sibirskaya korona Promo awareness 17%/5% Industry avg. in May-June Industry avg. in May-June
  16. 16. Incremental volume generated by promo campaign in average number of transactions per beer consumer per month 0,09 0,31 0,22 Total Löwenbräu volume (May-June) Löwenbräu incremental volume Löwenbräu base volume (May-June) due to Oktoberfest promotion Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 16 sample report Löwenbräu Oktoberfest promotion has generated incremental volume of 0.09 transactions per beer consumer per month that accounted for 28% of total Löwenbräu sales in May-June
  17. 17. Löwenbräu incremental volume estimation at 30%, 40% and 50% awareness levels 0,50E 0,28E 0,42E 0,59E 0,37E 0,20E 0,31 0,09 0,22 0,22 0,22 0,22 Total volume Incremental volume Base volume 50% 40% 30% 17% Awareness Actual achieved in May-June E E E Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 17 sample report The modeling provides estimation of potential ROI on media spends. At 30% promo awareness Löwenbräu could always double base volume in May-June. At 50% awareness Löwenbräu promo could increase brand sales volume in May-June almost three times.
  18. 18. Sources of Löwenbräu incremental volume Incremental volume Base volume 0,31 0,09 0,22 Löwenbräu volume in May-June 20% 27% Baltika 3 37% Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 18 sample report Heineken Other 17% Stary melnik Total volume
  19. 19. Promo Incremental Volume in transactions A performance comparison to industry norms in May-June Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 19 sample report 0,01 0,03 0,06 0,09 0,11 0,29 0,32 May-June Industry avg 0,13 Löwenbräu
  20. 20. Promo Incremental Volume as % of total brand sales A performance comparison to industry norms in May-June Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 20 sample report 17% 28% 32% 41% 46% 57% 56% May-June Industry avg 40% Löwenbräu
  21. 21. Promo performance
  22. 22. Promo overall likeability A performance comparison to industry norms Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 22 sample report Industry avg 53% 52% Max 63% Löwenbräu Min 42% Top2Boxes on 5-point scale
  23. 23. Promo overall likeability A performance within subgroups Top2Boxes 52% Top1Box 5% Total sample 55% 6% Males 51% 46% 4% 6% 25-34 YO Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 23 sample report 50% 6% 53% 3% Females 52% 4% Regions 52% 6% 35-45 Capitals YO 18-24 YO 5-point scale
  24. 24. Promo overall likeability A performance compared to industry average in subgroups -4pts Medium users Heavy users +4pts Mid-high income +8pts -4pts -5pts -7pts -8pts -9pts Capitals Regions Males Females 18-24 YO 25-34 YO 35-45 YO Light users Low income Secondary education High education Married Single Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 24 sample report
  25. 25. Promo uniqueness A performance comparison to industry norms Industry avg 61% Löwenbräu 67% Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 25 sample report Max 78% Min 42% Top2Boxes on 5-point scale
  26. 26. Promo uniqueness A performance within subgroups Top2Boxes Top1Box 67% 8% 65% 15% 61% 13% 70% 11% 5-point scale 67% 55% 12% Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 26 sample report 64% 7% Regions 71% 17% Capitals 69% 13% 35-45 YO 25-34 YO 18-24 YO Females Males Total sample
  27. 27. Promo relevance A performance comparison to industry norms Industry avg Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 27 sample report 36% 33% Löwenbräu Max 41% Min 24% Top2Boxes on 5-point scale
  28. 28. Promo relevance A performance within subgroups Top2Boxes Top1Box Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 28 sample report Regions 9% 2% Males 18-24 YO Capitals 36% 5% Total sample 36% 33% 39% 30% 40% 25-34 YO 30% Females 44% 6% 4% 5% 3% 7% 35-45 YO 5-point scale
  29. 29. Promo ease to understand A performance comparison to industry norms Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 29 sample report Industry avg 77% 78% Min 72% Löwenbräu Max 81% Top2Boxes on 5-point scale
  30. 30. Promo ease to understand A performance within subgroups 78% 21% Total sample 74% 23% Males 84% 17% Females 69% 24% 20% 35-45 YO 86% Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 30 sample report 88% 30% Capitals 69% 12% Regions Top2Boxes Top1Box 77% 18% 18-24 YO 25-34 YO 5-point scale
  31. 31. Promo trustworthiness A performance comparison to industry norms Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 31 sample report Industry avg 49% 50% Löwenbräu Min 38% Max 58% Top2Boxes on 5-point scale
  32. 32. Promo trustworthiness A performance within subgroups 49% Males 51% 10% Females 49% 12% 18-24 YO 11% 46% 50% 11% Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 32 sample report 63% 39% Top1Box 20% 35-45 Capitals Regions YO 25-34 YO 4% Top2Boxes 11% Total sample 53% 12% 5-point scale
  33. 33. Promo word-of-mouth A performance comparison to industry norms Industry avg 24% Min 15% Löwenbräu 23% Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 33 sample report Max 35% Top2Boxes on 5-point scale
  34. 34. Promo word-of-mouth A performance within subgroups 24% Top2Boxes 12% 5% Males 20% 5% Females 28% 5% 23% 21% Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 34 sample report 35% 9% Capitals 2% 35-45 YO 5% Total sample 6% 25-34 YO Regions Top1Box 4% 18-24 YO 19% 5-point scale
  35. 35. Promo fit to brand A performance comparison to industry norms Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 35 sample report 78% Min 50% Industry avg 73% Löwenbräu Max 82% Top2Boxes on 5-point scale
  36. 36. Promo fit to brand A performance within subgroups Total sample 76% Top2Boxes 76% Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 36 sample report 76% Males Females 18-24 YO 25-34 YO 19% 35-45 YO 24% 79% 21% Capitals 78% 20% 20% 26% 76% 81% 17% 80% Top1Box 15% Regions 5-point scale
  37. 37. Promo performance Summary of key indicators vs. industry average Löwenbräu performance vs. industry average Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 37 sample report Löwenbräu place in rating Overall likeability, Top2 -1pts 9th out of 17 Uniqueness, Top2 +6pts 5th Relevance, Top2 +3pts 7th Ease to understand, Top2 +1pts 6th Trustworthiness, Top2 +1pts 7th Word-of-mouth, Top2 -1pts 10th Fit to brand, Top2 +5pts 5th
  38. 38. Performance of promo prizes
  39. 39. Löwenbräu main prize—trip to Oktoberfest Summary of key indicators Top2Boxes Top1Box 74% 34% 86% 48% 47% Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 39 sample report 53% 21% Mecha-nics liking Rele-vance Unique-ness Overall liking 81% Top2 Industry avg: 86% 82% 52% 82% 5-point scale
  40. 40. Löwenbräu main prize liking A performance comparison to industry norms Löwenbräu 82% Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 40 sample report Max 93% Min 68% Industry avg 86% Top2Boxes on 5-point scale
  41. 41. Löwenbräu main prize A performance within subgroups 84% 50% Males 78% 42% Females 89% 47% 18-24 YO 80% 51% 25-34 YO 74% 41% 82% 47% Total sample 35-45 YO Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 41 sample report 84% 57% Top2Boxes Top1Box 79% 39% Capitals Regions 5-point scale
  42. 42. Löwenbräu main prize relevance & uniqueness A performance comparison to industry norms Löwenbräu Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 42 sample report Relevance, Top2boxes Tolstyak PIT Uniqueness, Top2boxes 74%/86% Zlaty Bazant Industry avg. Industry avg.
  43. 43. Löwenbräu secondary prizes Summary of key indicators 100 beer packs 38% Top2Boxes 30 beer packs 29% 72% 100RUB on mobile 13% 50% 12% T-shirt 42% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 43 sample report 63% 52% 27% 26% 27% 100 beer packs 30 beer packs 100RUB on mobile Mug T-shirt 27% 21% 9% 9% 12% 64% 64% 54% 47% 41% 100 beer packs 27% 30 beer packs 100RUB on mobile Mug T-shirt 25% 17% 15% 16% 54% 54% 52% 51% 100 beer packs 30 beer packs Top1Box Mug 13% 46% 100RUB on mobile Mug T-shirt 19% 18% 16% 14% 13% 76% Liking Uniqueness Relevance Mechanics liking Top2 industry avg: 55% 45% 55% 48% 5-point scale 47%
  44. 44. Löwenbräu secondary prizes liking A performance comparison to industry norms 42% 46% 50% 100 beer packs 30 beer packs 100RUB on mobile Mug Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 44 sample report 72% 76% Min 28% Industry avg 55% Max 83% T-shirt Top2Boxes on 5-point scale
  45. 45. Löwenbräu secondary prizes relevance & uniqueness A performance comparison to industry norms 100 beer pack Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 45 sample report Relevance, Top2boxes Uniqueness, Top2boxes T-shirt Mug 100RUB on mobile 30 beer pack Industry avg. Industry avg.
  46. 46. Löwenbräu secondary prizes A performance within subgroups Total sample Males Females 18-24 YO 25-34 YO Top2Boxes on 5-point scale Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 46 sample report 35-45 YO Capitals Regions 100 beer packs 76% 86% 58% 74% 76% 78% 80% 72% 30 beer packs 72% 82% 55% 73% 72% 72% 77% 68% 100 RUB on mobile 50% 51% 48% 57% 51% 39% 56% 45% Mug 46% 51% 36% 49% 46% 41% 58% 36% T-shirt 42% 49% 29% 45% 45% 31% 54% 31%
  47. 47. Derived importance of promo prizes Contribution of each prize into generation of incremental volume Incremental volume generated by Löwenbräu Oktoberfest promotion Main prize— trip to Oktoberfest 39% Beer six-packs (100 and 30) 43% Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 47 sample report 100 RUB on mobile 8% Mug, T-shirt 10%
  48. 48. Appendix: Methodology Terms referenced in the report Contacts
  49. 49. Methodology Method: Face2face in-home interviews Random route sampling Continuous data collection on weekly basis Fielding occurred 13/04/09 – 08/11/09 Sample: 4510 interviews Minimum 150 interviews per week Beer consumers aged 18-45 — 30% are 18-24YO, 40% are 25-34YO, 30% are 35-45YO — 60% are male, 40% are female — Capitals (30% live in Moscow, 17% in St.Petersburg) and regions (13% live in Ekaterinburg, 13% in Samara, 13% in Novosibirsk, 13% in Rostov-on-Don) — 23% are heave users (drink beer min 3 times per week), 47% are medium frequency users (1-2 times per week), and 30% are light users (less than once a week) Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 49 sample report
  50. 50. Terms referenced in the report Promo or promotion: a national-level promo campaign with prize draws stimulating product purchase communicated on pack, in-store, in media (e.g. TV, radio, press, outdoor, internet) Promo awareness: a number of respondents who when exposed to a color card which presents a promo concept, prizes visuals, name, slogan and a pack under promotion, recalled that they were aware of a promotion Participation: a number of respondents who recalled that at the moment of interview they have already been involved into activities required by a promo rules to be qualified for a prize draw, i.e. registering promo codes via SMS or Internet or participating in creative contest Intention to participate performance index: a number of respondents who are likely to participate in a promotion calculated upon standard 5-point intention scale Transaction: single purchase occasion of a brand Brand volume in transactions: an approximation of total number of transactions with a brand occurred per month divided by total number of beer consumers Total brand volume: an approximation of brand volume achieved in a given month Base brand volume: an approximation of brand volume in a given month which would have been achieved if there were no promotion running in this given month Incremental brand volume: a difference between total brand volume and base brand volume in a given month; i.e. net volume attributed to an effect of a given promotion in a given month Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 50 sample report
  51. 51. Contacts Bojole research have prepared similar reports for each of 17 beer promotions which have been running in Y2009. If you would like a copy of this report or if you have any questions or comments about this research report or if you would like to purchase a report on another promotion, please feel free to contact us: Alexander Lomizov +7 (495) 662 8928 ext.100 +7 (909) 911 9570 a.lomizov@bojole.ru Olga Makarova +7 (495) 662 8928 ext.102 +7 (909) 993 1058 o.makarova@bojole.ru Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ 51 sample report

×