The Nestlé Approachto Consumer Engagement    in a Digital World               Tom BudayHead of Marketing & Consumer Commun...
Part of the story    94M                                 3.7M                        +100%    Fans of Nestlé              ...
Source: Andy Sernovitz, Hugh MacLeod3
Message quality matters most in driving ROBBI1               High    ROBBI1               Low                      Low    ...
Missing the Point?5
Our view    • Platforms don’t ‘work’ (or not)    • Brand campaigns and      messages do6
Message quality matters now more than ever       High                         Social platforms and                    cons...
The Nestlé Way                 Minimize avoidance and rejection              Maximize impact, sociability and sharing     ...
Maximizing impact - Nestlé TV copy effectivenessBase: All Nestlé aired ads 2009 (141 ads), 2010 (227), 2011 (151) and YTD ...
A large proportion of viral viewing is predictable based on creative power                                                ...
2012 all advertisers WARC Effie Effectiveness Index
2012 food advertisers WARC Effie Effectiveness Index
Scaling impact capability
Scaling impact capability                 Gerber                                  Milo                 Nescafé            ...
Maximizing sociability 15                      15
Scaling sociability                Do’s                                               Don’ts  Thank Mavens for wonderful,...
Sociability framework well applied17
The benefits of sociability                       Impressions (000)                        Proportion of Total Impressions...
Sociability in action                        •   No Paid Media Support                        •   Reach 85,034            ...
Sociability in action                        • Paid media support                        • Reach 286,636                  ...
Skinny Cow – Retail Dollar Sales - US                                TOTAL SKINNY COW - US (xAOC+C-Store) Dollar Trends (M...
Maximizing sharing                      22
Strong message quality       Copy Effect            Total             Women 30-49         Women 50-65         Index*      ...
Success with sharing               16 million views on YouTube, 12 million earned               #1 video viewed in Septe...
Contrex market share in France                                                                      8.0       7.9         ...
We are learning rapidlyBRAND                 FACEBOOK RESULTS                  OTHER METRICSGerber USA            ROI $3.9...
The Nestlé Way                  Minimize avoidance and rejection               Maximize impact, sociability and sharing   ...
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Tom Buday - Nestlé head of Marketing and Consumer Communication: The Nestlé Approach to Consumer Engagement in a Digital World

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Presentation given by Tom Buday at the Credit Suisse European Media Seminar in London, September 4 2012

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Tom Buday - Nestlé head of Marketing and Consumer Communication: The Nestlé Approach to Consumer Engagement in a Digital World

  1. 1. The Nestlé Approachto Consumer Engagement in a Digital World Tom BudayHead of Marketing & Consumer Communication Nestlé S.A.
  2. 2. Part of the story 94M 3.7M +100% Fans of Nestlé Average weekly new Growth in fans of brands on fans of Nestlé brands Nestlé brands on Facebook1 on Facebook2 Facebook H1 ‘12 vs. YAG 16M >50% 43 Views for Contrex of Nespresso Markets using video on YouTube, capsules sold Nestlé standard the world’s most online listening tools shared video in Oct. ‘11 1Through August 26; not unduplicated 2July 14 – August 262
  3. 3. Source: Andy Sernovitz, Hugh MacLeod3
  4. 4. Message quality matters most in driving ROBBI1 High ROBBI1 Low Low Message Quality High 1Return on Brand Building Investment4
  5. 5. Missing the Point?5
  6. 6. Our view • Platforms don’t ‘work’ (or not) • Brand campaigns and messages do6
  7. 7. Message quality matters now more than ever High Social platforms and consumer sharing of brand 2012 content, powered by technology 2002 ROBBI Consumer avoidance and rejection, powered by technology Low Low Message Quality High7
  8. 8. The Nestlé Way Minimize avoidance and rejection Maximize impact, sociability and sharing Do it consistently, at scale8
  9. 9. Maximizing impact - Nestlé TV copy effectivenessBase: All Nestlé aired ads 2009 (141 ads), 2010 (227), 2011 (151) and YTD June 2012 (59).Numbers shown are percentage of ads scoring in the top quartile of Ipsos/Millward Browndatabase of all tested ads.
  10. 10. A large proportion of viral viewing is predictable based on creative power 130 r = 0.63 120 Views per week (index of Logged) 110 100 90 80 80 90 100 110 120 130 Creative Viral Potential10 Source: Creative determinants of viral video viewing, Duncan Southgate, Nikki Westoby and Graham Page, Millward Brown, Published in International Journal of Advertising, July 2010
  11. 11. 2012 all advertisers WARC Effie Effectiveness Index
  12. 12. 2012 food advertisers WARC Effie Effectiveness Index
  13. 13. Scaling impact capability
  14. 14. Scaling impact capability Gerber Milo Nescafé Dolce Gusto Guigoz Perrier Nescafé
  15. 15. Maximizing sociability 15 15
  16. 16. Scaling sociability Do’s Don’ts  Thank Mavens for wonderful,  Overuse cow puns – a few ‘’get moovin’’ references are ok, but stay positive posts away from referring to my Mavens as a ‘herd’ or any other cow stuff. (Use these sparingly – less than 5% of the time)  Acknowledge Mavens by their first name when responding  Give specifics around where I live or my family. Sometimes Mavens will want to know what pasture I live in or what my family is like. I  Sign off using my signature: just respond vaguely with something like – ‘’I couldn’t love my digs ‘’xoxo~Skinny.’’ more’’ or ‘’I <3 my family, thanks for asking.’’  Initiate or participate in any conversation involving religion, politics or sexual subjects. Everyone has their own beliefs and I like to stay neutral.  Publicly promise a Maven anything. Other Mavens will feel left out and ask for whatever you’re giving out and it could spiral out of control. If you want to give a coupon or anything else to a Maven, do it privately and directly.  Insult anyone, even jokingly. Avoid using any vulgar or offensive slang talking.  Coach or tell my Mavens what to do. 16
  17. 17. Sociability framework well applied17
  18. 18. The benefits of sociability Impressions (000) Proportion of Total Impressions Paid 364,733 65.6% Owned 167,460 30.1% Earned 23,723 4.3% Total 555,916 100.0% Note: contact points include TV, Facebook, and search. Data are for H1 201218
  19. 19. Sociability in action • No Paid Media Support • Reach 85,034 • Engaged users 4,675 • PTAT 3,804 • Success drivers: imagery, succinct messaging, timeliness (St. Patty’s day)
  20. 20. Sociability in action • Paid media support • Reach 286,636 • Paid 222,821 • Organic 89,614 • Earned 20,137 • Engaged users 7,863 • PTAT 3,827 • Success drivers: effective use of paid media to increase reach and engagement. Great image and copy; simple and to the point.
  21. 21. Skinny Cow – Retail Dollar Sales - US TOTAL SKINNY COW - US (xAOC+C-Store) Dollar Trends (Millions)3025201510 5 0 4W END 01/28/12 4W END 02/25/12 4W END 03/24/12 4W END 04/21/12 4W END 05/19/12 4W END 06/16/12 4W END 07/14/12 4W END 08/11/12 21 Market Definition US Expanded All Outlets = Food, Drug, Mass (5 retailers), Wal-Mart, Club (2 retailers), Dollar (3 retailers) and DeCA (Military) Mass = Target+Kmart+Shopko+Pamida+Alco Club = Sams+BJs Dollar = Dollar General+Family Dollar+Freds Copyright © 2011 The Nielsen Company. Confidential and proprietary.
  22. 22. Maximizing sharing  22
  23. 23. Strong message quality Copy Effect Total Women 30-49 Women 50-65 Index* Women 30-65 Non-buyers Contrex buyers Vélo 234 263 261 *CEI = Impact (Visibility/Link to the brand) and Persuasion (Purchase Intent). Source: Ipsos pre-test23
  24. 24. Success with sharing  16 million views on YouTube, 12 million earned  #1 video viewed in September in France  #1 video shared in October worldwide  In YouTube’s Top 20 most liked and viewed ever Sources: YouTube (metrics are for entertainment category); Mashable.com – October 2011 (does not include music videos, user-generated content or movie trailers)24
  25. 25. Contrex market share in France 8.0 7.9 7.9 7.9 7.7 7.8 7.7 7.8 7.8 7.2 7.3 6.7 6.4 6.0 P5 P6 P7 P8 P9 P10 P11 P12 P1 P2 P3 P4 P5 CC P5 2011 2012 Source: IRI hypermarkets + supermarkets, volume market share of bottled water
  26. 26. We are learning rapidlyBRAND FACEBOOK RESULTS OTHER METRICSGerber USA ROI $3.91 for every $1 spent 3.1M FansKit Kat UK ROI £1.31 for every £1 spent 11% of media-driven salesNescafé Philippines 10% Rise in Sales 1.25M New FansKit Kat Philippines No. 1 Local Brand PageButterfinger USA +6 pt inc brand favorability 90% Fans ReachedKit Kat Brazil +24-point increase in ad recall 80,600 Fans in 3 daysBaci Perugina 100K New Fans 1.5M ImpressionsNescafé India ~2M Fans in 2 yearsNestlé chocolate 55K Fans +15 incr in brand aware.TurkeyInfant Nutrition 7,000 Fans in 3 wks 40% engagement ratesGreeceNescafe Shake it Up 35K new Fans 7.7M ImpressionsNote: ROI = sales return on investment
  27. 27. The Nestlé Way Minimize avoidance and rejection Maximize impact, sociability and sharing Do it consistently, at scale27

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