Y2009 Lowenbrau National Promo Effectiveness
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Y2009 Lowenbrau National Promo Effectiveness

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

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

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    Y2009 Lowenbrau National Promo Effectiveness Y2009 Lowenbrau National Promo Effectiveness Presentation Transcript

    • Löwenbräu Y2009 Oktoberfest promotion PromoIndex™ Sample report on promo effectiveness
    • 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.
      • Olga Makarova, Research Director at Bojole For more information please contact me at: o.makarova@bojole.ru or +7 495 662-8928 ext.102
    • Contents 7 Promotion details 51 50 49 38 21 9 4 Contacts Terms referenced in the study 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 Methodology Performance of promo prizes Overall liking, Uniqueness, Relevance, Mechanics liking Derived importance of promo prizes Promo performance Overall liking, Uniqueness, Relevance, Ease to understand, Trustworthiness, Word-of-mouth, Fit to brand Executive summary
    • Executive Summary 7 16 19 18 10 12 15 14
      • 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
      For details, see slide:
    • Executive Summary 37 35 29 31 47 44 42 25
      • 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 7 th 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
      For details, see slide:
    • Implications
      • 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.
    • 17 on-season promotions have been running in Y2009 1 44 43 42 41 40 39 38 37 36 35 34 33 32 31 30 29 28 27 26 25 15 14 Sep Aug July June May Apr Oct 24 23 22 21 20 19 18 17 16 Stary Melnik Klinskoe Baltika 3 Kaltenberg Zlaty Bazant Stella Artois Tuborg PIT Bavaria BagBier Carlsberg Ochakovo Tolstyak Brahma Löwenbräu Sibirskaya korona Velkopopovicky kozel
    • 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
    • Awareness, participation and business effect
    • Promo awareness A performance comparison to industry norms % June-09 18% May-09 16% Max level: 4 8 % Max level: 45% Min level: 9% Min level: 15%
    • Promo awareness A performance within subgroups % 18% 17% 14% 18% 25-34 YO 19% 35-45 YO 16% Capitals 18% Regions 17% 18-24 YO Females Males Total sample
    • Promo participation A performance comparison to industry norms % Max level: 4% Max level: 3% June-09 0,3% May-09 1,4% Base: all beer consumers
    • Promo intention to participate A performance index comparison to industry norms 2 Max level: 22% Max level: 18% 30% 20% 10% 0% June-09 6% May-09 14% 5% 15% 25% Min level: 5% Min level: 8% Base: aware of Löwenbräu promo
    • Promo intention to participate A performance index within subgroups 10% Total sample 11% Males 10% Females 11% 18-24 YO 8% 25-34 YO 11% 35-45 YO 11% Capitals 9% Regions % Base: aware of Löwenbräu promo
    • Awareness and participation in May-June A performance comparison to industry norms ä Participation among aware of promo Promo awareness Sibirskaya korona 17%/5% Löwenbräu Industry avg. in May-June Industry avg. in May-June
    • Incremental volume generated by promo campaign in average number of transactions per beer consumer per month T Total Löwenbräu volume (May-June) Löwenbräu incremental volume Löwenbräu base volume (May-June) due to Oktoberfest promotion 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
    • Löwenbräu incremental volume estimation at 30%, 40% and 50% awareness levels 0,28 E 0,42 E Base volume Incremental volume 0,59 E 0,37 E 0,50 E 0,09 0,20 E 0,31 Awareness Actual achieved in May-June E E E Total volume 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 .
    • Sources of Löwenbräu incremental volume 1 Base volume Incremental volume Löwenbräu volume in May-June 0,31 0,22 0,09 20% Baltika 3 37% Other 17% Heineken Stary melnik Total volume
    • Promo Incremental Volume in transactions A performance comparison to industry norms in May-June u May-June Industry avg 0,13 Löwenbräu
    • Promo Incremental Volume as % of total brand sales A performance comparison to industry norms in May-June u May-June Industry avg 40% Löwenbräu
    • Promo performance
    • Promo overall likeability A performance comparison to industry norms Industry avg 53% Max 63% Löwenbräu Min 42% Top2Boxes on 5-point scale u
    • Promo overall likeability A performance within subgroups Top2Boxes Top1Box 5% 52% Total sample 6% 55% Males 4% 6% 51% 25-34 YO 6% 50% 53% 3% Females 46% 4% 52% Regions 52% 6% Capitals 35-45 YO 18-24 YO 0 5-point scale
    • Promo overall likeability A performance compared to industry average in subgroups Capitals Regions Males Females 18-24 YO 25-34 YO 35-45 YO Light users Medium users + 4pts Heavy users Low income + 8pts Mid-high income Secondary education High education Married Single -
    • Promo uniqueness A performance comparison to industry norms u Min 42% Max 78% Industry avg 61% Löwenbräu Top2Boxes on 5-point scale
    • Promo uniqueness A performance within subgroups 4 Top1Box Top2Boxes Regions 64% 7% Capitals 71% 17% 35-45 YO 69% 13% 25-34 YO 67% 8% 18-24 YO 65% 15% Females 61% 13% Males 70% 11% Total sample 67% 12% 55% 5-point scale
    • Promo relevance A performance comparison to industry norms Industry avg 33% Löwenbräu Max 41% Min 24% 24% Top2Boxes on 5-point scale
    • Promo relevance A performance within subgroups Top1Box Top2Boxes Regions 9% 2% Males 18-24 YO Capitals 36% 5% Total sample 33% 36% 39% 30% 40% 25-34 YO 30% Females 44% 7% 3% 6% 5% 4% 35-45 YO 5-point scale
    • Promo ease to understand A performance comparison to industry norms Min 72% Löwenbräu Max 81% Industry avg 77% Top2Boxes on 5-point scale
    • Promo ease to understand A performance within subgroups 21% 78% Total sample 23% 74% Males 17% 84% Females 69% 35-45 YO 30% 88% Capitals 12% 69% Regions Top2Boxes Top1Box 77% 18% 18-24 YO 86% 24% 20% 25-34 YO 5-point scale
    • Promo trustworthiness A performance comparison to industry norms Industry avg 49% Löwenbräu Min 38% Max 58% Top2Boxes on 5-point scale
    • Promo trustworthiness A performance within subgroups Males 10% 51% Females 12% 49% 18-24 YO 11% 49% 63% 39% Top1Box 20% Capitals Regions 35-45 YO 25-34 YO 4% Top2Boxes 11% 46% Total sample 50% 11% 53% 12% 5-point scale
    • Promo word-of-mouth A performance comparison to industry norms Löwenbräu Industry avg 24% Min 15% Max 35% 23% Top2Boxes on 5-point scale
    • Promo word-of-mouth A performance within subgroups 5% 24% Males 5% 20% Females 5% 28% 9% 35% Capitals 2% 35-45 YO 5% 23% Total sample 6% 25-34 YO 21% Top2Boxes 12% Regions Top1Box 4% 18-24 YO 19% 21 5-point scale
    • Promo fit to brand A performance comparison to industry norms Min 50% Industry avg 73% Löwenbräu Max 82% 0 Top2Boxes on 5-point scale
    • Promo fit to brand A performance within subgroups Total sample 76% Males Females 18-24 YO 25-34 YO 19% 76% 35-45 YO 24% 79% 21% Capitals 78% 20% 20% 26% 76% 81% 17% 80% Top1Box 15% Top2Boxes 76% Regions 5-point scale
    • Promo performance Summary of key indicators vs. industry average 6 th +1pts Ease to understand, Top2 5 th +5pts Fit to brand, Top2 10 th -1pts Word-of-mouth, Top2 7 th +1pts Trustworthiness, Top2 7 th +3pts Relevance, Top2 6 th +6pts Uniqueness, Top2 9 th out of 17 -1pts Overall likeability, Top2 Löwenbräu place in rating Löwenbräu performance vs. industry average
    • Performance of promo prizes
    • Löwenbräu main prize—trip to Oktoberfest Summary of key indicators 3 Top1Box Top2Boxes Mecha- nics liking 53% 21% Rele- vance 74% 34% Unique- ness 86% 48% Overall liking 47% 8 0% Top2 Industry avg: 86% 8 1% 52% 82% 5-point scale
    • Löwenbräu main prize liking A performance comparison to industry norms Löwenbräu Max 93% Min 68% Industry avg 86% 0 Top2Boxes on 5-point scale
    • Löwenbräu main prize A performance within subgroups 84% Males 42% 78% Females 47% 89% 18-24 YO 51% 80% 25-34 YO 41% 74% 47% 82% Total sample 50% 35-45 YO 57% 84% Top2Boxes Top1Box Regions Capitals 79% 39% 80 5-point scale
    • Löwenbräu main prize relevance & uniqueness A performance comparison to industry norms Löwenbräu Relevance, Top2boxes Tolstyak PIT Uniqueness, Top2boxes 74%/86% Zlaty Bazant k Industry avg. Industry avg.
    • Löwenbräu secondary prizes Summary of key indicators % 12% 100RUB on mobile 50% 13% 30 beer packs 72% 29% 100 beer packs 38% 42% T-shirt 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% 27% 100 beer packs 30 beer packs 100RUB on mobile Mug T-shirt 25% 17% 15% 16% 54% 54% 52% 51% Top2Boxes 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%
    • Löwenbräu secondary prizes liking A performance comparison to industry norms t Min 28% Industry avg 55% Max 83% T-shirt Mug 100RUB on mobile 30 beer packs 100 beer packs Top2Boxes on 5-point scale
    • Löwenbräu secondary prizes relevance & uniqueness A performance comparison to industry norms s Relevance, Top2boxes Uniqueness, Top2boxes T-shirt Mug 100RUB on mobile 30 beer pack 100 beer pack Industry avg. Industry avg.
    • Löwenbräu secondary prizes A performance within subgroups Top2Boxes on 5-point scale T-shirt Mug 100 RUB on mobile 30 beer packs 100 beer packs 72% 80% 78% 76% 74% 58% 86% 76% 31% 54% 31% 45% 45% 29% 49% 42% 36% 58% 41% 46% 49% 36% 51% 46% 45% 56% 39% 51% 57% 48% 51% 50% 68% 77% 72% 72% 73% 55% 82% 72% Regions Capitals 35-45 YO 25-34 YO 18-24 YO Females Males Total sample
    • 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% Mug, T-shirt 10% 100 RUB on mobile 8%
    • Appendix: Methodology Terms referenced in the report Contacts
    • 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)
    • 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
    • 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:
      • Olga Makarova +7 (495) 662 8928 ext.102 +7 (909) 993 1058 [email_address]
      • Alexander Lomizov +7 (495) 662 8928 ext.100 +7 (909) 911 9570 [email_address]