SMART-Drop - New Covent Garden Soup


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Rick Pullen's presentation accompanies the New Covent Garden Soup door drop case study, providing insight into how the distribution planning and implementation took place.

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  • In conclusion, there are 4 key questions we are asking packaged goods manufacturers, brand owners, retailers and intermediaries during this current price war climate: if you want more background on the relevant economic factors affecting these 4 key questions, ask me…
  • Here are the 10 steps, plus one extra free (think of the customer journey calendar over the year and where smart drop can plant content)
  • SMART-Drop - New Covent Garden Soup

    1. 1. SMART-DropSMART-Drop marketingusing targeted direct promotionaladvertising leafletsto specific household typesaround specific priority outlets© 2012 Tel: 01483 20 20 55 e:
    2. 2. SMART-Drop Summary - why do it?3 key benefits of SMART-Drop advertising fortoday’s marketing mix strategy– Cost effective method to increase sales through a targetretailer without discounting at till– Shopper marketing out of store versus in store media– Complements shopper marketing in store spend without of store targeted media© 2012 Tel: 01483 20 20 55 e:
    3. 3. SMART-DropSolves 4 key questions &challenges1. How are you adding value to your price platform tostrengthen your competitive edge?2. How are you promoting new interest and sales atnormal price, in both regional and account sweetspots?3. How are you building residual revenue frompromotional advertising?4. How are you influencing the customer journeythrough joined up marketing that builds your opted incustomer database for future low cost interaction?© 2012 Tel: 01483 20 20 55 e:
    4. 4. SMART-DropSMART-Drop Targeting benefit© 2012 Tel: 01483 20 20 55 e: targeting (red)by traditional post codesector of 2.5-3Khouseholds provides anoverall index for each ofthose sectorsSMART-Drop targeting(red) provides far greaterselectivity (average 150-200 target household‘clusters’)i.e. the right target household clusters around target stores
    5. 5. SMART-DropSMART-Drop traction 1– Voucher redemption PLUS advertising effect = TOTAL SALESEFFECT– Voucher redemption 1%-3.5%– Advertising effect 2-12 times (experience and market feedback,depends on timing, product proposition)– So 1 in 50 to 1 in 3 households will buy– SMART-Drop marketing is better – tighter targeting, lesswastage (vs traditional door drop model) with themed occasionwe’d judge advertising effect 6 x voucher redemption, between1 in 5 and 1 in 15 households smart dropped buying– Single brand payback - £20K for 200-250K A5 leaflet ads; 13Kto 50K buying households ; £80K for 1.1m A5 leaflets; 73K to220K households buying© 2012 Tel: 01483 20 20 55 e:
    6. 6. SMART-Drop SMART-Drop traction 2Multi brand examples of payback:– £36K = 200K A4 leaflet ads; 13-40K buying hholds(£12K for each of 3 brands)– £57K = 500K leaflet ads; 33K to 100K buying hholds(£19K for each of 3 brands)– £87K = 1 million A4 leaflet ads; 66K to 200K buying hholds(£29K for each of 3 brands)– £162K = 2 million A4 leaflet ads: 132k to 400K buying hholds(£27K for each of 6 brands)– £234K = 3 million A4 leaflet ads: 200K to 600K hholds buying(£39K for each of 6 brands)© 2012 Tel: 01483 20 20 55 e:
    7. 7. SMART-DropA promotion – a leaflet, envelope, sample,popped through the letterbox of carefullyselected households (type and area)Remember what door drops are…Remember what door drop marketing is…It is advertising, targeted promotional advertisingIf good,it will change consumer behaviourBecause it is ‘out of store’ before in store rush / no time© 2012 Tel: 01483 20 20 55 e:
    8. 8. SMART-DropSMART-Drop engages and intrigues morethan other Channels in Terms of Recall33%36%40%51%51%59%60%88%RadioInternet adsPostersMail DirectNewspaper/magazine adsTV adsMail to occupierLeaflets through doorSource: ITV/DMA research 2010© 2012 Tel: 01483 20 20 55 e:
    9. 9. SMART-Drop The reality is that SMART-Drop is the only marketingmedium left where youfully control the targetingto achieve massawareness amongst yourtarget consumers forresponse and sales…through specific retaileroutlets e.g.© 2012 Tel: 01483 20 20 55 e:
    10. 10. SMART-DropObjective – to drive sustainable salesgrowth in key stockists (increase hholdpen/trial & purchase frequency).Activity - Promotional advertisingleaflets were door-dropped tohouseholds targeted through Mosaicprofiling and postal sector ranking incatchment areas of test Waitrosestores. Different vouchercombinations & leaflet quantities weretested (1 x 30p, 2 x 30p, 1 x 50p, 2 x50p: 10-20K leaflets per store). Totalsales were measured in test storesversus control stores for the both thepromotional period and a significantpost promotional period to measureresidual sales.Results – varied by store from 8.3%-54.3% growth in the promotionalperiod and, more importantly, 16%-50.3% in the residual period. This isvery successful. The brand now has apowerful promotional formula to drivesales growth during the year."TBDA delivered anextremely effectivecampaign, which was welltargeted, planned andimplemented. Moreover,an identification of keylearnings combined witha thorough cost benefitanalysis has enabled us toplan for future activity witha high degree ofconfidence as to itssuccess.“Nick Munby, MarketingManager, Daniels ChilledFoodsYear 1-Waitrose© 2012 Tel: 01483 20 20 55 e: by NCGS ManagementAccountants to create net extra profit
    11. 11. SMART-DropFree to brand owners10 critical tips for creating successful door drop marketing:Tip 1 – why do it (3 key benefits: media, trade/consumer, digital)Tip 2 – internal positioning – choose right vocabularyTip 3 – targeting, who & why & where & when & how?Tip 4 – what, ‘the message’, left-brain-right-brain?Tip 5 – response, what do you want?Tip 6 – shape, tactile (shaped leaflets, up to 6 x more response)Tip 7 – online, new, use the leverage (e.g. QR codes)Tip 8 – measure TOTAL sales (up to 8 x voucher % response)Tip 9 – brief the supply chain to minimise ‘out of stocks’Tip 10 – respect the environment (recycled or sustainable paper)Extra free – once is not enough, strategic not tactical© 2012 Tel: 01483 20 20 55 e:
    12. 12. SMART-DropEmotive copy, 2 x time release vouchers for purchase urgency,digital online link – all 10 tips encapsulatedYear 2 - Waitrose
    13. 13. SMART-DropYear 3 – Sainsbury’s(in Tesco catchment areas!)© 2012 Tel: 01483 20 20 55 e:
    14. 14. SMART-DropOther FMCG case studies© 2012 Tel: 01483 20 20 55 e: coupon values were tested, 50p off and a free jar(like a free sample). There were sales uplifts versus thecontrol stores of between 16% and 270% over run rateThere was a 32% increase in Amoy sales in the3 TV regions compared to the total countryDoor-drop leaflets were distributed together with singleserve samples.In one area we tested TV (broadcast advertising) withDoor-drop leaflets (direct advertising) and in anotherarea Door-drop leaflets alone.The former generated an extra 28% sales, the latter anextra 26% sales versus the ‘control’ stores,
    15. 15. SMART-Drop Customer / shopper marketingconundrumIn store– Pos– Till leaflets– Posters– Current dynamic –people living insmartphone!!Out of store– Store Magazine– Door drop multibrandleaflets/coupons(not occasion based)Engaging consumer needs combination of bothPLUS occasion based emotional intrigue /identity with ‘occasion’ ,for example…© 2012 Tel: 01483 20 20 55 e:
    16. 16. SMART-Drop Occasion marketing examplesSunday lunchAlfrescoBarbecueGirls night inEntertaining etc.© 2012 Tel: 01483 20 20 55 e:
    17. 17. SMART-Drop Occasion based targetedmarketing - Summary 1– SMART-Drop MARKETING & ADVERTISING– Focus on retailer of choice– Target households around that retailer– Engagement & Traction metric– More consumers using ‘occasion’– Sense of urgency stimuli (voucher)– (Online involvement integration)© 2012 Tel: 01483 20 20 55 e:
    18. 18. SMART-Drop.© 2012 Tel: 01483 20 20 55 e: retailers do you want?Which households do you want?(Mosaic types)Impulse is strong because highermargin - local purchase to trustedlocal outlet (national strategy, localimplementation, pick all locals off)Just down our street/road = localOccasion based targetedmarketing - Summary 2
    19. 19. SMART-DropConclusion - consumers still want traditional dm,despite what marketers think© 2012 Tel: 01483 20 20 55 e: