Promotional and Advertising Strategy for Bold (P&G's Cinch) -- Presentation
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Promotional and Advertising Strategy for Bold (P&G's Cinch) -- Presentation

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  • Functional benefits: More effectiveSaves time and effortLimits need to scrub and scourNon-abrasive scrubbing systemParity cleaning when dilutedEmotional benefits: “Saves me time for family”“Cleaning dishes should be easy, not a chore”“Trusted friend, supports my family”Self-expressive benefits: “I am a woman who wants to spend time with my family, not my dishes”“I work hard. I deserve the best stuff and I refuse the settle for less”“I’m a mother, not a housewife.”
  • Gestalt Model
  • Style/ToneIn general, ads should have environments and situations that emphasize family and our target customer. They should often emphasize the functional benefits, the time/effort saved, and the associated emotional benefits of this extra free time. The actresses should be women that our target market can identify with to heighten the self-expressive benefits.
  • Prime-time and Day-timeCable and Network
  • Prime-time and Day-timeCable and Network
  • Note: cost takes into account the actual materials for the billboards. Assumption $500/month per billboard for leasing
  • We will plan aggressive product placement in cooking shows such as those that were on PBS during the 1980’s. The cooks will wash their dishes with Bold dishwashing liquid and will occasionally plug the product subtly.Cost: $2,000,000Rationale: We can use a form of judo brand diversion to gain valuable associations with consumers who watch these shows and have grown to trust the cooks that run them. Customers can also constantly see Bold in action.
  • Prime-time and Day-timeCable and Network
  • Prime-time and Day-timeCable and Network
  • Meet bold is a campaign where 25 vans decked out in Bold Branding criss-cross nationwide setting up product demonstrations and giveaways. Each van does 800 giveaways a day and spend 30 minutes to 1 hour at each location. They give out trial size products of Bold as well as t-shirts. Also, they will conduct informal market research to assist in advertising/promotion efforts for the rest of the year
  • “Bold to the Rescue” is a campaign we’ve devised to help create an association as a trusted family friend as we look to next year. On thanksgiving, around 5:00pm we will deploy/outsource cleaning teams to 20,000 households. 10,000 will be as a mail-in prize, 10,000 will be random. The cleaning crews will enter the houses and take over cleaning duty for thanksgiving so that families can spend more time together on Thanksgiving.
  • Details:First 6 months we used events to trigger trial.Last 6 months we used events to cause repeat purchases.Avoided Dawn where possible as it’s primarily performance.
  • Details:First 6 months we used events to trigger trial.Last 6 months we used events to cause repeat purchases.Avoided Dawn where possible as it’s primarily performance.
  • Details:First 6 months we used events to trigger trial.Last 6 months we used events to cause repeat purchases.Avoided Dawn where possible as it’s primarily performance.
  • Details:First 6 months we used events to trigger trial.Last 6 months we used events to cause repeat purchases.Avoided Dawn where possible as it’s primarily performance.
  • All brands advertising, but necessary for first month. There needs to be a quick injectionfor efficient trial generation (not subject to incremental trial). Event 1A:Calculation was derived from $2.70 X 105 (statistical cases).Necessary expenditure for first 3 months as given in case.Event 1B:Cost: 40 million households at 41 cents/sampleTrial: 40 million households X 35% (given usage rate)Event 1C:Sent to the remaining 40 million households of the market.Calculations from spreadsheet, given 17.4% redemption rate and $0.20 face value.
  • Large event chosen as Dawn was not present (who has a performance benefit and at highest risk for cannibalization).Event 2A:Trade allowance continues from previous month, as per case requirements. Event 2B:Assumption: trial size has similar margins to P&G of 32% Gross MarginAssumption: 25% of volume for the month would through trial size (some cannibalization of other sizes)Calculation: [105,000 (stat. cases) X .25 (volume) X 48 (bottles per case)] X $0.12On-Pack premiums gain attention and often get special placement in stores. Will cause trial and repeat.Assumption: $2.00 sponge (in 2011 dollars) has a reverse-inflation adjusted retail cost of ~$0.80 in 1983Assumption: P&G would buy at wholesale and achieve economies of scale in purchasingCalculation: $0.50 (per sponge) X 1,260,000 (units sold)Trial HH Calulation: 1,260,000 (units sold) X .50 (incremental trial rate for second event)
  • Cost Calulation:25 vans for 28 days cross-country.Cost per van:3 employees at $10/hourvan rental $100 a day (rationale: rentals cost ~$25-50 now and when adjusted for inflation would be ~$10-22 in1983. Premium in placedue to need to decorate vans with decals (thus decal costs and higher rental fee)Gas $40 a day (rationale: avg. $1.24 gas prices)800 trial sizes given away at $0.30 for $240 a day800 t-shirts given away at $4.00 for $3200 a dayMiscellaneous expenditures (food costs, sponges, activities) of $150 a dayTotal costs per van, per day: $4,020 X 25 (# of vans) X 28 (# of days) = $2,814,000Trial Calculation: (800 (trial bottle giveaways) X 25 vans X 28 days) X 25% incremental
  • Cost Calculation: Volume per size (10% for 48 oz., 30% for 32, 45% for 22 and 15% for 12 oz.) X 420,000 stat cases X # of bottles in each statistical case by size of bottles = # of bottles sold per size for June X 10% discount on retail price on each bottle + $300,000 delivery costsMultiplied by the 15% redemption rateTrial Calculation: # of bottles sold for month X 15% redemption rate X 25% incremental trial
  • Cost Calculation: Sum of volume sold per size multiplied by discountTrial Calculation: # of bottles sold for month (stat cases X volume sold per size X # bottles in case) X 25% incremental
  • Cost Calulation: $125 per kitchen, for 20,000 households

Promotional and Advertising Strategy for Bold (P&G's Cinch) -- Presentation Promotional and Advertising Strategy for Bold (P&G's Cinch) -- Presentation Presentation Transcript

  • Core & ExtendedIdentity Statement Scrubbing Liquid Advert. system Materials Uses Innovative Herbal smell Superiority Users Efficiency “Do life, POS not dishes” Family Displays Brand Colors Packaging Distribution P&G Channels
  • More effective and efficient.Functional Limits need to scrub and scrub while non-abrasive. Benefits scrubbing system. Parity cleaning when diluted. “Saves me time for my family.”Emotional “Cleaning dishes should be easy, not a chore.” Benefits “Trusted friend, supports my family and I.” “I am a woman who wants to spend time with my Self- family, not my dishes.”Expressive “I work hard, I deserve the best stuff and I refuse to Benefits settle for less.” “I’m a mother, not a housewife.”
  • Thinking: “Bold is a high Feeling: “Bold is the top-of-the-performance LDL that limits the line cleaning solution to myneed to scrub and scour dishes, problems with tough caked-onand saves time and effort while dishes. It frees up time andalso being non-abrasive through energy that I can spend on more our proprietary scrubbing important things like my family system.” and myself.” “Do life, not dishes.”
  • “Bold is the solution to all your problems with tough to clean dishes. It uses its innovative and non-abrasive scrubbing system to assist in tough cleaning jobsand is superior to any other system in the market. Now you can spend less time in the kitchen, and more time with more important things. Do Life, Not Dishes.”
  • Television Product Magazine Ads Billboards Buzz MarketingAdvertisements Placement
  • Cost: $10 MillionReach: ~1500 ads in1983 dollarsTarget: Family oriented shows(e.g. Family Matters, Brady Bunch)Prime-time and Day-timeCable and Network
  • 1500
  • Cost: $10 MillionReach: ~1500 ads in1983 dollarsTarget: Family oriented shows(e.g. Family Matters, Brady Bunch)Prime-time and Day-timeCable and Network
  • • Cost: $3 million• 20 womens/ family- centric magazines• Emphasize our brand positioning• Bold, Creative, Interactive, Stand Out from the Crowd
  • We chose to do billboard advertising due to itscost/effectiveness and its consistent highexposure. Whereas TV advertisements are one-time affairs for 30 seconds, a billboard can be24/7 365 days a year. We will place thesebillboards in close proximity to the 27% ofgrocery stores that account for 75 of salesvolume (footnote 18 in case)Cost: $3,000,000 for 400 billboards
  • Cost: $2 millionSee Product in usageJudo Brand Diversion
  • “Meet Bold”“Bold to the Rescue!”
  • Thanksgiving Mail-in Promotion/Guerilla MarketingCleaning crews to 20,000 household. 10,000 winners, 10,000 randomPut more strength behind family brand positioning going into the next year
  • January February March Trade Allowance Trade Allowance Trade Allowance $2.70 per statistical case $2.70 per case $2.70 per caseCost $ 283,500.00 $ 283,500.00 $ 756,000.00# of - - -HH Trial Size 6 oz. for $0.40 + Sample (1.5 oz. to 40 million HH) Ext. Co-Op $0.50 premium spongeCost $ 16,400,000.00 $ 478,800.00 $ 2,543,600.00# of 14,000,000 630,000 1,566,000HH Single Brand Mail Coupon (40 million HH)Cost $ 6,383,600.00# of 6,264,000HH
  • April May June Demonstration vans (25 for 4 weeks, across country). They do product demos, giveaway trial size and muscle On-pack coupon 10% off on t-shirts with slogan. 9am-5pm every all sizes (on your next day, three people at $10/hour vans purchase) (valid until august cost $100 rental gas $40 a day, 1st) (mail-in details for giveaways 800 Bold per day ($0.30), November dish cleaning) 800 t-shirt ($4.00), miscellaneous expense ($20 a day). Gather survey dataCost $ 2,814,000.00 $ 427,990.80# of 140,000.00 216,247.50HH
  • July August September Trade Allowance Bonus Pack 12 oz. free with the $2.70 per case purchase of a 48 oz.Cost $ 1,134,000.00 $ 168,932.40# of 73,937.50HH Price Pack 20% off all sizesCost $ 1,722,798.00# of 1,441,650.00HH
  • Oct. November December Deployment of cleaning teams Mail-in for a $15 gift card with $5 nationwide $125 per house on of purchases in Bold items (first thanksgiving (20000 houses) (mail-in 100,000) (mail in-process ends prize, mailing-in process begins in June December 1st, cards sent out 8th)Cost $ 2,500,000.00 $ 1,030,000.00# ofHH
  • Trial Goal 20,000,000Trial Reached 24,331,835Budget Available $37,000,000Budget Used $36,926,721Advertising Budget Available $18,000,000Advertising Budget Used $18,000,000
  • Thanks from !Chalisa Poolvoraluck, Nitya Sahni, Ross Simons, and Youssef Talaat
  • • Event 1A Rationale: – $2.70 trade allowance ($283,500) • Trade allowance will insure that product gets stocked in• Event 1B stores at good line of sight. – 1.5 oz. sample to 40 million • 1.5 oz. sample has high trial- households generating ability and can be – Cost: $16,400,000 sent out for good value/trial – 14,000,000 HH trial • Single brand chosen for its• Event 1C ability to avoid being lost in – Single brand mail coupon to sea of other brands and for it’s remaining 40 million households higher redemption rates. Also, – Cost: $6,383,600 this allows us to perform brand positioning. – 6,264,000 HH trial
  • • Event 2A Rationale: Trade – $2.70 trade allowance ($283,500) allowance continues.• Event 2B – 6 oz. Trial Size + on-pack sponge Trial size most liked for $0.40 total device for consumers – Trial size: $0.12 revenue per sale buying a brand never for total $151,200 revenue used before and sponge – Sponge: $0.50 times 1,260,000 sold items gains extra attention and – Total Cost: $478,800 special placement. – 630,000 HH trial (50% incremental)
  • • Event 3A Rationale: Necessary trade allowance – $2.70 TA cont. ($756,000) continued from prior• Event 3B months. Co-op – Ext. Co-op couponing couponing events can event only be done in month 3 and 7. Good – Cost: $2,543,600 value per trial #. Used – Trial HH: 1,566,000 (25% instead of POS price incremental) pack to limit Dawn cannibalization.
  • Event 4A:April is the rollout of a big guerilla marketing promotionalstrategy (titled “Meet Bold”) involving productdemonstrations, giveaways and 25 decorated Bold vansthat hold events cross-country.• Cost: $2,814,000• Trial HH: 140,000• Primary Goal: awareness and “buzz” behind brand• Secondary Goal: Market Research
  • May does not have promotional events. Thiswas decided for a couple of reasons: the first is avoid overabundance of promotion. Thesecond reason was to avoid promoting when Dawn is doing a trade allowance and FSI couponing. It’s important that we avoid promotion with Dawn where possible as Dawn’s primary benefit is performance andstands to receive a disproportionate amount of cannibalization if we are not careful
  • • Event 5A Rationale: Due to high trial – On-pack coupon for 10% levels, the remainder of the year off all sizes to be used on we are looking to drive repeat next purchase. rates and do promotional events – Cost: $427,990 that implant our brand CVP in – Trial HH: 216,247 the consumer’s mind. There is• Also attached: details on more on the mail-in offer on the our “Bold to the November slide. Rescue” mail-in offer
  • There is nothing new scheduled in July toavoid competition with Dawn and to avoidoverabundance of promotional events. On- pack coupons from previous month can still be redeemed in the month of July.
  • • Event 6A: Rationale: Trade – Trade allowance of $2.70 allowance and price pack ($1,134,000) chosen to get preferred• Event 6B stocking and line of sight – Price Pack for 20% off all in distribution channels. sizes. Price pack chosen for it’s – Advertising for “Bold to excellent ability to drive the Rescue” continues. repeat purchases. – Cost: $1,722, 800 Advertising continues to – Trial HH: 1,441,650 keep promotion relevant
  • • Event 7A Rationale: Chosen –Bonus Pack: to draw attention, –12 oz. free with gain better 48 oz. placement in stores –Cost: $168,932 and to encourage –Trial HH: 73,937 repeat purchases
  • No promotion chosen for October tolimit cannibalization of Dawn and toavoid overabundance of promotional events. There is also a break to continue preparation for thanksgiving promotion.
  • • Event 8A Rationale: At this point we – Deployment of have large trial points and thanksgiving dinner sustained repeat. This cleaning teams nationwide promotion is to drive that enter houses and word-of-mouth and to clean up after thanksgiving dinner for free using Bold. hammer home our brand 10,000 mail-in winners, positioning of saving 10,000 random houses female HOH time so they chosen also. can spend it on more – Cost: $2,500,000 important things (e.g.• Mail-in process for family on holidays). December promotion begins.
  • • Event 9A Rationale: Event chosen to – Mail-in event drive repeat and continue – $5 in proof of purchase Bold’s movement into a for a $15 gift card to trusted friendship role in family-oriented stores our target market’s eyes – 100,000 households – Cost: $1,030,000 ($30,000 delivery fee)