NESCAFÉ: Case Study

3,617 views

Published on

CrossMedia(TM) return on investment analysis reveals how national newspapers helped re-launch the coffee brand.

Published in: Design, News & Politics, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
3,617
On SlideShare
0
From Embeds
0
Number of Embeds
174
Actions
Shares
0
Downloads
72
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

NESCAFÉ: Case Study

  1. 1. The Proof The business case for newspaper advertising as part of the media mix
  2. 2. 2 National newspapers played a distinct and cost-effective role in NESCAFÉ’s successful multimedia campaign, demonstrating specific strengths in driving sales and building both purchase intent and emotional involvement brand metrics: Why newspapers for NESCAFÉ? Both the heaviest commercial TV viewers and frequent newspaper readers spend heavily on instant coffee – making the two media ideal and complementary partners for advertising. Frequent newspaper readers are the heaviest category buyers, spending £28.59 per household in 2009. Newspapers – the most cost-effective medium to drive brand measures •  Newspapers delivered the highest overall return on investment for NESCAFÉ, with TV second •  Newspapers were the most efficient medium for driving brand consideration •  Newspapers were twice as efficient as TV in creating emotional brand involvement •  TV and newspapers worked in complementary ways to build brand image. NESCAFÉ Headline results sales uplift Newspapers drive 2.6% sales increase Rising to 7.5% sales uplift among those exposed to 5 newspaper ads. Newspapers enhance TV ad performance The NESCAFÉ TV ad worked harder and was more engaging if seen alongside the newspaper campaign.
  3. 3. Expenditure on instant coffee £ per household 2009 TV viewers and national newspaper readers spend heavily on instant coffee Kantar Worldpanel 52 weeks to Dec 2009. Population 000s. All households 25200. Heaviest third TV viewers = 7208. Frequent newspaper readers = 7212. Frequent magazine readers = 6973. Heaviest third of TV is 29% of TV £25.75 £28.22 £28.59 £27.27 Total market Heaviest 3rd TV viewers Frequent newspaper readers Frequent magazine readers
  4. 4. Expenditure on NESCAFÉ £ per household 2009 Readers of mid-market and popular newspapers are the heaviest spenders on NESCAFÉ Kantar Worldpanel 52 weeks to Dec 2009. Population 000s. All households 25200. Heaviest third TV viewers = 7208. Frequent newspaper readers = 7212. Frequent magazine readers = 6973. Regular qualities =1623. Regular mids = 2136. Regular pops = 2692. Heaviest third of TV is 29% of TV £13.08 £15.21 £15.05 £12.91 £16.32 £15.87 Total market Heaviest 3rd TV viewers Frequent newspaper readers Frequent quality NPs Frequent mid-market NPs Frequent popular NPs
  5. 5. Expenditure on NESCAFÉ GOLD BLEND £ per household 2009 Mid-market & Quality newspaper readers spend most on NESCAFÉ GOLD BLEND® Kantar Worldpanel 52 weeks to Dec 2009. Population 000s. All households 25200. Heaviest third TV viewers = 7208. Frequent newspaper readers = 7212. Frequent magazine readers = 6973. Regular qualities =1623. Regular mids = 2136. Regular pops = 2692. Heaviest third of TV is 29% of TV £3.59 £3.84 £4.36 £4.35 £4.79 £4.09 Total market Heaviest 3rd TV viewers Frequent newspaper readers Frequent quality NPs Frequent mid-market NPs Frequent popular NPs
  6. 6. 10 15 14 14 8 39 Zero OTS 1-2 OTS 3-4 OTS 5-7 OTS 8-9 OTS 10+ OTS Frequency distribution for NESCAFÉ TV campaign National newspapers A perfect partner to TV Source: BARB analysis of NESCAFÉ TV campaign – Adults Low weights of TV exposure are less effective The optimum OTS High weights of TV exposure suffer diminishing returns
  7. 7. NESCAFÉ TV campaign Analysis of heavy TV viewers by social grade % Heavy TV viewers more DE than brand profile Source: BARB analysis of NESCAFÉ TV campaign – Adults/TGI 2009 Q3 NESCAFÉ Instant Coffee Adult user profile AB C1 C2 DE 41 23 21 22 24 29 14 26 Heavy TV viewers social class NESCAFÉ Instant Coffee TGI profile
  8. 8. 124 117 186 108 142 Men 16-24 AB C1 London TV: Profile % 43 10 15 26 16 NPs: Profile % 53 12 28 28 23 Newspaper audience delivery indexed against commercial TV Newspapers’ audience profile complements TV with a profile that is relatively young, ABC1 and London Source : BARB Jul – Dec 2009 / NRS Jul – Dec 2009
  9. 9. To quantify the effects of individual communications channels in a multi-media campaign for the NESCAFÉ brand. To establish the efficiency of each medium in building brand measures – what is the return on investment? To measure the sales impact of adding newspapers to the mix. To understand the synergistic effect of TV and newspaper ads working together. Test Objectives
  10. 10. Aug 09 Sep 09 Oct 09 Nov09 Dec 09 £m Media Target Audience: 18-65 hot beverage drinkers TV 3.2 Newspapers 0.9 Outdoor 0.7 Online 0.3 Research Dates Millward Brown CrossMedia™ Tracking 10 NESCAFÉ: Test detail Media Plan 1004 TVRs Pre Campaign objective Relaunch the NESCAFÉ brand 418 GRPs Pre Post
  11. 11. NESCAFÉ: The creative work Newspaper creative
  12. 12. NESCAFÉ: The creative work Newspaper creative
  13. 13. NESCAFÉ: The creative work Outdoor creative TV newspaper creative Online creative
  14. 14. The findings 14 NESCAFÉ
  15. 15. Newspaper advertising effect on NESCAFÉ sales % increase Immediate 2.6% sales uplift from newspapers Source: dunnhumby 2.6 During campaign
  16. 16. Newspaper advertising effect on NESCAFÉ sales at different OTS % increase Newspapers drive 7.5% sales increase at 5 OTS Source: dunnhumby 1.7 2.6 4.5 4.9 7.5 1 OTS 2 OTS 3 OTS 4 OTS 5 OTS
  17. 17. Newspaper advertising effect on NESCAFÉ trial % increase Newspaper campaign encourages trial Source: dunnhumby 2.6 NP during and 12 weeks post campaign
  18. 18. Newspaper advertising effect on NESCAFÉ penetration % increase Newspapers drive penetration Source: dunnhumby 2.7 2.0 NP during NP post
  19. 19. Tesco Clubcard lifestyle profile Newspaper buyers who bought NESCAFÉ indexed against average Tesco Clubcard user profile Newspaper readers less price sensitive Source: dunnhumby 78 124 Convenience 100 Price sensitive
  20. 20. 41 23 21 22 24 29 14 26 % of uplift % of cost Contribution to overall uplift in NESCAFÉ brand measures versus cost of media % Both Newspapers and TV punch above their weight Source: Millward Brown CrossMedia™ modelling Total uplift in brand measures driven by media activity 5% uplift Online Outdoor Newspapers TV
  21. 21. Overall uplift across brand measures per £1m invested % Newspapers deliver the highest return on investment 1.2 1.1 0.2 0.4 Newspapers TV Outdoor Online
  22. 22. Cost of 1% uplift across NESCAFÉ brand measures £m Newspapers most cost-efficient for building brand health 0.86 0.94 6.36 2.56 Newspapers TV Outdoor Online
  23. 23. Uplift in brand involvement per £1m invested Someone I’d like % Newspapers twice as efficient as TV at creating emotional brand involvement 2.2 0.9 Newspapers TV
  24. 24. Uplift in brand commitment per £1m invested Likelihood to choose % Newspapers most cost-effective at driving consideration 1.8 1.0 0.2 Newspapers TV Outdoor
  25. 25. Brand image uplift % endorsing NESCAFÉ TV & Newspapers strengthen brand image +3.2 +4.0 +4.0 +4.1 +4.2 +5.6 +7.3 +8.0 Fame Everyday Appeal Quality Premium Stature Sociability Taste
  26. 26. Uplift in brand image per £1m invested % endorsing NESCAFÉ Multimedia campaign strengthens brand image 0.8 1.0 0.2 0.5 Newspapers TV Outdoor Online
  27. 27. Recognition – Newspaper ads % recognising Strong creative impact leads to good recognition 33 20 NESCAFÉ Millward Brown print norm (326 ads)
  28. 28. Newspaper ads % agreeing Strong impact and branding ensures engagement 54 63 47 73 92 68 I'd stop and look rather than turn the page Very eye-catching Definitely remember ad was for NESCAFÉ NESCAFÉ Millward Brown Norm
  29. 29. Distinctive Interesting Soothing Pleasant Gentle Weak Dull Boring Irritating Unpleasant Disturbing Involving Norm: 61 NP ads Recognise NP (Each axis 0-80%) Newspaper involvement diagnostics Newspaper ads engage very strongly
  30. 30. Adding newspapers enhances TV performance Response to TV ads % agreeing 42 51 51 50 56 43 +16 +24 +25 +17 +17 +17 Made me more likely to buy NESCAFÉ Made brand more appealing Points made were believable Points made were relevant Contained different information Contained new information 45 48 68 59 43 52 TV solus Added effect of NP Millward Brown norm
  31. 31. Distinctive Interesting Soothing Pleasant Gentle Weak Dull Boring Irritating Unpleasant Disturbing Involving Norm: 698 TV ads Recognise TV solus (Each axis 0-80%) Recognise TV + NP TV involvement diagnostics TV ad more engaging when seen alongside newspapers
  32. 32. Advertising measures – Re-appraisal Surprising and gets me to think differently Top 2 Box % Adding newspapers builds re-appraisal 49 66 77 TV solus TV + 1 newspaper ad TV +4/5 newspaper adsRecognise:
  33. 33. Advertising measures – Brand values Helps me connect and identify more strongly Top 2 Box % TV plus newspapers boosts emotional impact 50 69 77 TV solus TV + 2/3 newspaper ads TV +4/5 newspaper adsRecognise:
  34. 34. Advertising measures – Depth of information Gives me enough information to decide Top 2 Box % Depth of information builds across campaign 53 60 71 79 TV solus TV + 1 newspaper ad TV + 2/3 newspaper ads TV +4/5 newspaper ads Recognise:
  35. 35. Advertising measures – Call to action Gives me a reason to go out and buy Top 2 Box % TV + newspapers partnership drives powerful call to action 46 63 73 TV solus TV + 2/3 newspaper ads TV +4/5 newspaper adsRecognise:

×