Schweppes Antiox business case


Published on

Launch of a product. Market: Italy

Published in: Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Schweppes Antiox business case

  1. 1. SCHWEPPES ANTIOXLaunch of a new product Market: Italy
  2. 2. REASON WHYSchweppes Brand Strategy• Tonic water captures an adult consumer and builds high loyalty.• Orange and lemonade broadens the consumer base.• Product Development: Brand expand via launches of "straight drinking" flavours. SCHWEPPES ANTIOX 2
  3. 3. REASON WHY Brand situation“Tradition & Leisure” Litres per capita 200 Reg Cola Schweppes light 150 Schweppes Customer 100 retention 50 0 age 8 12 16 20 24 28 32 36 40 44 48 52 35-50 • Younger image Source: Canadean • Balances lifestyle SCHWEPPES ANTIOX 3
  4. 4. REASON WHYBrand opportunity:• Mantains its attraction and acceptance: line extension.Innovation meets a social trend:• Every day people want to look, feel and even be younger.• Cellular damage, pathway for aging• Free radicals can damage important cellular components.• Antioxidants can safely interact with free radicals.• The principle micronutrient (vitamin) antioxidants are vitamin E, beta-carotene, and vitamin C. SCHWEPPES ANTIOX 4
  5. 5. REASON WHY The Opportunity24% POPULATION ITALY 14.4 60.3 MM 55% MM concerned Rest healthy lifestyle/young image 45.9 35-50 MM 20% 15% 20% chooses open to Other categoriesSchweppes Penetration Schweppes light 45% Water Juices Flavoured water Sources: Eurostat, TNS RTD tea Functional drinks SCHWEPPES ANTIOX 5
  6. 6. THE PRODUCT Schweppes Antiox Emotional Attractive & Modern territory packaging ANTIOX “StraightSophisticated drinking” SCHWEPPES ANTIOX 6
  7. 7. THE PRODUCT Target“I am always very busy. With a demanding job I onlyhave time for a quick brunch. I like going out with friendsafter work. And then a little reading trying to preparesomething light and natural for dinner. I’d like to beyounger. I often wish I could STOP TIME. I only findsolace in the gym or at the spa. Oh, and when I have mySchweppes Antiox”. Schweppes Antiox. Stop time. (Positioning statement) SCHWEPPES ANTIOX 7
  8. 8. THE PRODUCT Target • 35-50 years old.“I am always very busy. With a demanding job I only • Mainly women and modern men.have time for a quick brunch. I like going out with friendsafter work. And with plenty of reading trying to prepare • Busy people then a little social activity.something light and wellness.for dinner. I’d like to be • Body and mental naturalyounger. I often wish when they go out. • Reserve mixers for I could STOP TIME. I only findsolace in thechoose as a “straight drink”. when I have my • What to gym or at the spa. Oh, and • Feel guilty.Schweppes Antiox”. Schweppes Antiox. Stop time. (Positioning statement) SCHWEPPES ANTIOX 8
  9. 9. THE PRODUCT Role in the portfolioSchweppes:- Complementary.- Brand Rejuvenation.Champomy (children) ANTIOX 60% additional volume.Orangina (18-35) 30% cannibalism Schweppes- Substitute when older. 10% “ rest.- As healthy but +refreshing.Oasis (joy & fun)- Sophisticate Premium price greater profit.Energade (reenergizes, +volume)- Vs aging, fast food. SCHWEPPES ANTIOX 9
  11. 11. LAUNCH PLAN Where & WhatChannels:- Home: Ideal to drink at home at a relaxing moment.Supermarkets and Groceries.- On Premise: Ideal to drink with friends or colleague after work.Coffee-shops, modern & fashionable bars.- Niche: At those moments in which you are thinking about your wellness.Gyms, SPA/wellness centers, healthfood stores.Formats:- 25cl bottle aluminum.- 25cl can.- Multi-pack 6 can.- On-the-go plastic 33cl bottle (to be tested).Flavours: Blackcurrant, Raspberry (both slightly carbonated). SCHWEPPES ANTIOX 11
  12. 12. LAUNCH PLAN How• Partners: Presentation to the sales team, sales material, motivation plan.• Customers: Presentation to strategic customers, kit Antiox deluxe. – VIP party held in a venue most relevant to the target’s social life.• Consumer in the POS: – Sampling: selected gyms, healthfood stores and in the street (business areas). – Activation of every channel (merchandising POS, coolers). Special plan for gyms. – In supermarkets Antiox will be placed on shelves next to Schweppes Orange.• Promotional activity (proposal to trade).• Advertising Research: – Pretest: 4 focus groups (women social life, women work, women fitness, men). – Postest: Quantitative research based on personal interviews.• Production: high quality aspirational production overseen by a good producer.• Media planning: – TV: Special attention to affinity (TV programs according to life style). – Outdoor. – Internet: special ad formats at specific sites for wellness, business women, trying to be viral (links to an internet serial, calls to a jogging event) and Google Adsense. SCHWEPPES ANTIOX 12
  13. 13. LAUNCH PLAN When & How much FEB MAR APR MAY JUN JUL SEP-NOVPresentation to partnerPresentation to customersLaunching (pipe line) Pipe linePOS activationPromotional activity to customersTV Pretest 1000 Postest 500 PostestInternet and OutdoorSamplingSpecial plan Gyms/Spa/WellnessJogging eventPromotional activity to consumer SCHWEPPES ANTIOX 13
  14. 14. LAUNCH PLAN When & How much Marketing CommunicationPretest 3.000Postest 10.000Production 200.000ATL 2.800.000 TV 1.500.000 Internet 800.000 Outdoor 500.000BTL 300.000 Sampling 250.000 Big boards 50.000Materials 200.000 TOTAL 3.513.000 SCHWEPPES ANTIOX 14
  15. 15. P&L Sales Target litres cl units un casesTotal 8.000.000 100% 34.000.000 1.500.000home 5.200.000 65% 0,25 20.800.000 24 866.667on premise 2.000.000 25% 0,20 10.000.000 20 500.000niche 800.000 10% 0,25 3.200.000 24 133.333 Prices & Costs Retail Bottler Orangina price incomes margin price incomes margin price incomes margin costsTotal 1,08 36.640.000 112,8% 0,51 17.220.000 22,0% 0,42 14.120.000 42,3% 0,292 9.920.000home 0,55 11.440.000 37,5% 0,40 8.320.000 5,3% 0,38 7.904.000 35,7% 0,28 5.824.000on premise 1,80 18.000.000 176,9% 0,65 6.500.000 30,0% 0,50 5.000.000 56,3% 0,32 3.200.000niche 2,25 7.200.000 200,0% 0,75 2.400.000 97,4% 0,38 1.216.000 35,7% 0,28 896.000 Orangina Schweppes Bottler Income 14.120.000 Income 17.220.000 Product cost -9.920.000 -70% Product cost -14.120.000 -82% Marketing * -1.756.500 -12% Sales&Marketing -1.356.500 -8% Operating profit 2.443.500 17% Operating profit 1.743.500 10% Structure -300.000 -2% Sales&Structure -100.000 -1% Financial -100.000 -1% Financial -10.000 0% Before Taxes 2.043.500 14% Before Taxes 1.633.500 9% Taxes -613.050 -4% Taxes -490.050 -3% Bottom line 1.430.450 10% Bottom line 1.143.450 7% * 50% charged to the bottler SCHWEPPES ANTIOX 15
  16. 16. THE BOTTLER Sell the project- Schweppes Antiox is aimed to a need we hadn’t satisfied. Its launch leads to a higher share of throat and share of customer.- Helps to develop a channel (Gym) and open new ones (Wellness centers, healthfood shops).- Emblematic product to access current non buyers (future opportunity to sell tonic water and citrics).- Strong brand support by advertising, refreshing global brand awareness.- Makes Schweppes brand closer to today’s consumer aspiration and balances market penetration among women vs men.- More profitable premium price product (consumer willing to pay up to 1.5 times the price of a regular drink) for customers and bottler.- As it completes the brand portfolio it reduces logistics costs per case. SCHWEPPES ANTIOX 16
  17. 17. THE BOTTLER Proposal to trade• Activation POS: materials (quantities adjusted by the bottler).• Presentation to sales teams and customers.• Launching the product to all channels at a time. Niche -> image. Supermarkets -> awareness. On Premise -> trial.• Samplings and parties in top-100 customers (chosen by the bottler).• Competition among sales teams: win an anti-aging weekend treatment.• Competitive pricing policy to customers during the launching (e.g. 50% off, sell one flavour, give the other for free; never leave it for free).• Promotions to consumer: – Home: Buy 1 flavour, get other free. Limited edition bottles. – All channels (under the cap/ring): Send a SMS and win a SPA session for 2 people (immediate prize). SCHWEPPES ANTIOX 17
  18. 18. THE BOTTLER Portfolio issues Mineral & flavoured waters: - Home: direct competitor, +profit - OP: direct competitor Alice, “ Fruit drinks -Battik Succoso: children. ANTIOX - Tropico: still thirst-quenching (Oasis), not aimed to wellness care. Tea (San Benedetto, Guizza) - For families vs individual / selfish use. Carbonated (San Benedetto, Guizza) - Big format, no worry, party cheap drinks. Camomile (baby drink) Aperif Ben’s (bitter, ginger) - Different consumption time. Complementary.Bottler: San Benedetto SCHWEPPES ANTIOX 18
  20. 20. How to measure SUCCESS- Brand awareness, preference and loyalty (TNS).- Brand positioning: more modern keeping reliable (TNS).- Advertising recordance (3CAT consumer tracking).- Market share (Nielsen): total Schweppes brand among soft drinks and Antiox.- Numeric distribution and, above all, weighted distribution (Nielsen).- On Premise: number of references bought at the Top-100 (transactional data).- Home: rotation, out-of-stock, shelves linear centimeters. SCHWEPPES ANTIOX 20
  21. 21. Support from the GLOBAL MARKETING TEAM• All the research before, during and after the launch.• Get the brand name and packaging designed.• Choose materials, get its decoration designed and negotiate with suppliers.• Work with the agency to find the core message and create the campaigns.• Negociate with media buyers.• Plan every activity (sampling, parties).• Prepare the presentation to the bottler.• Coordinate activities with the bottler (customer selection, daily data of the launching results).• Measure success in person along with the bottler’s sales people. SCHWEPPES ANTIOX 21
  22. 22. Support from the PARTNER MARKETING DPT• Select special customers.• Choose quantities for every material.• Negotiate the introduction of the new product and promotions with big stores, special On Premise customers, big Gyms or reputable SPA centers.• Check the materials are properly set on premise / in stores.• Local permissions for the samplings.• Invite important customers and VIP to the launching party.• Extract data about the launching (transactional, Nielsen, IRI). SCHWEPPES ANTIOX 22
  23. 23. Thank you for your attention Alfonso Gadea February 2011