&
One-to-One Strategy meets media integration:
Launch of Tropicana Essentials Vitamine C+




                                               1
Agenda



   Setting the Stage

   The Briefing

   The Approach

   The Results

   Conclusion




                       2
PepsiCo at a glance



     $111 billion market cap... listed on NYSE since 1965

     185,000 employees, operating in 200 countries

     World’s second largest food and beverage
     company worldwide

     Retail sales estimated at $92 billion

     17 billion-dollar brands, 5 generating
     annual retail sales of more than $5 billion

     Portfolio of over 200 brands



                                                            3
PepsiCo has 4 sites in Belgium and a number of
strong brands

                                   PepsiCo Sites in Belgium




 Tropicana Zeebrugge          Zeebrugge

                         Veurne

                                      Brussel
 Veurne Snack Foods
                                                  Borgloon




    Looza Borgloon



                         Net Revenue:
                         EUR 140,000MM
                                                              PepsiCo Belgium
Commercial HQ Zaventem                                        • 967 Employees


                                                                                4
Tropicana at a glance: Not all juices are equal



                                                 100% pure
                             100% pure           squeezed
                             squeezed

                      no added water, colour,     no added water, colour,
                      sugar or preservatives.     sugar or preservatives.


                                                    gently pasteurized for
                Unpasteurized
                                                    longer life vs. Freshly Squeezed.
                <5 days shelf life

             Between 1% and 99%
             Juice                                         100% pure juice
                                                      Water evaporated off
                   added water sugar,
                   flavouring,                    After transport, juice
                     & preservatives.             reconstituted &
                                                  pasteurized.
                         chilled or long life.
                                                 chilled or long life.




                                                                                        5
Tropicana at a glance: From Mass to Targeted



           Awareness                                             80


           Penetration     14



    Media Spendings Tropicana 2008          Media Spendings Tropicana 2009

                         Others         DM & E- Mail             Others
                          11%              25%                    7%
 Outdoor                                                                     Print
  34%                                                                        26%




                                   TV
                                                       Outdoor
                                  55%                   42%


                                                                               6
Tropicana at a glance: Why to start a loyalty
program?


  A strong growth of PL                                                                Other
                                                                         49
                        53.3
  50.3        51.9              50.8
                                                                               81
                                                                                    A share of
                                                                                    voice under
                               + 24%                                                our market
                                                                         51
                                26.8                                                share
                        21.4
  18.8        18.5
                                                                               19      Tropicana
                               PLB’s
  2006       2007       2008   2009F
                                                                        A message
                                                                        about purity &
            8.5
                                                                        pleasure
           21.2
  50                                                                    which is not
                                                                        unique anymore
                     HU = ca. 95.000 HH
                     households             A need to improve VFM
  30       70.3
                     >> Better targeting   perception in a decreasing
                     is needed              buying purchase power
  20


 % TPP   % TPP Vol
 users



                                                                                                   7
The Approach



            Phase 1 : consideration   Phase 2 : engagement     Phase 3 : conversion


Objective      Create awareness          Create relevancy       Activate participation /
                   & impact                & credibility      identification & purchase




                                                                 Phase 4 : loyalty


                                                             Reinforce ambassadorship
                                                             Drive emotional band with
                                                                     Tropicana
                                                                 Drive repurchase




                                                                                      8
More in details…




                   9
The Approach: Phase 1


         Phase 1 :       Objective       Create awareness & impact
       consideration
                         Connections         Strong Media Support


                       JAN             FEB                      MAR




       OUTDOOR




       MAGAZINE




          PR




                                                                      10
The Approach: Phase 2


       Objective            Objective           Create relevancy & credibility
         Phase 2 :
       engagement                               Strong Presence Vitamine C+
                            Connections          in “Savoure Le jour”program

                          JAN             FEB                         MAR




        DIRECT MAILING




          E-MAILING




       WWW.TROPICANA.BE



                                                                                 11
The Approach: Phase 2


        Target Group Program
   Target Group                                   Program Communication Strategy

   35 – 60 year
   High social class
   City
   Households no kids / little kids < 5 years
   Interests : Wine, ski, golf, tennis, hockey,
   thalasso, travelling




                  2009 = Launch CRM Umbrella

                                                                               12
The Approach: Phase 3


                           Objective   Activate participation / identification & purchase
    Phase 3 : Conversion
                                                    Call to action/Offer :
                           Outcome        Personalized Reduction Coupons in DM
                                          Registration online (contest as incentive)
                                              Registration via response card
                                                      On pack contest
                                                        POS Visibility




                                                                                       13
The Approach: Phase 4


                                     Objective          Reinforce ambassadorship
                                                  Drive emotional band with TROPICANA
                                                             Drive repurchase
         Phase 4 :   Loyalty
                                                         Continue on further the
                                     Next Steps      “Savoure Le jour” CRM program

                     APR       MAY     JUNE   JULY     AUG     SEPT     OCT      NOV    DEC



  DIRECT MAILING




    OUTDOOR




    E-MAILING




WWW.TROPICANA.BE


                                                                                        14
The Results: Impact Direct Mailing


                                                          Communication Funnel


                                                                                                                                                   Intent to
                              Recall having                                                       Recall content                                buy and/or to
                                                      Opened it                   Read it                                 Intent to act
                               received it                                                       (content or message)                            use coupon
                                                                                                                                                    (top boxes)




                                          “Do you                                        “Can you           “Do you have the
                                                               “What did you do                                                             “Do you have intention
                                         remember                                       describe the           intention to
                                                                with the DM?”                                                                 to buy Tropicana?
                                      receiving a DM?”                                     DM?”                  react?”

 Users
                               83        66              55        94             51        94         48         83           40                     61
 TOTAL       n=300




 Average
                               63                        41                       36                   31                      18
              nB2C=16




 Average
                                         61                        87                       85                    50
             nB2C = 16


               +                                  +                         +                           +                           +
                                    Average opening           High reading rate:                                    Very good direct
           High recall rate                                                            Good content recall
                                          rate                 content appeal                                          activation

                                                                                                                  % of respondents (n=600) – 100% of the respondents


                                                                                                                                                           15
The Results: Impact Direct Mailing


                                 Content Recall


     Top 3
      1. Reduction Coupons
      2. New Flavour in the series Essentials : Vitamine C+
      3. Tropicana contains extra Vitamine C


     “Extra resistance and Vitality During the winter” had high scores




                                                                    16
The Results: Impact Direct Mailing


                                                      Recall – Activation Matrix

                              100%
                                                                                                         Strong activation
                              90%                                                                        case
                                                                                                                             Efficient
                                                                                                         Limited recall
                              80%                                                                        mailing
                                                                                         Tropicana
                              70%                                                                                            Strong recall case
                                                                                                                             Limited reaction
  Activation rate




                              60%                                                                                            level


                              50%
                    Average
                    (43.6%)
                              40%
                                                                                                         Improve attention Do it again
                              30%

                              20%                                                                                            Improve action

                              10%

                               0%
                                     0%   20%           40%           60%          80%          100%

                                                                 Avg (65.3%)

                                                         Recall rate                                                                     N B2C=16


         Activation rate = 50% * intention to react (base=people having read mail) + 50% * intention to purchase (base = people recalling ad)

                                                                                                                                           17
The Results: Couponing Use


                         Redemption




                 8,7% On Average by coupon
                 17% On Average by household




                                               18
The Results: Couponing Use


                       Profile Analyse Coupon Users

      HH no kids
      50 +
      Highest social groups
      Brussels

   = confirmation of GFK profile

   Mailing respondents are representative for the Tropicana target




                                                                 19
The Results: E-newsletter




     12,15 % clicked versus Total
      (vs. IAB Benchmark FMCG 11,10%)

                                                                 Vitamine C+ Content
     12% of total CTR on Vitamine C+
     (Top 3)




                               Delivered   Opened   Clicked/Opened   Clicked/Total
    Newsletter Tropicana         86,96%    25,13%       48,33%          12,15%
    Benchmark IAB                93,20%    23,80%                       11,10%




                                                                                     20
The Results: Contest Participation




                             Participants




                                                 43% DM & E-news
                                                    22% overlapping
                                                       contacts
           57%
       Other sources
                                                                     5,9%
     (ON-PACK / POS / WOM)                  6% of Total
                                                                  of Total
                                            mailing
                                                              e-newsletter




                                                                             21
The Results: Savoure le Jour Registration



    Through registration card = 0,026%


    Through packaging and others sources = 41%


    Who received DM = 34%


    Who received e-newsletter = 24%




                                                 22
Conclusion



   Direct Marketing efforts needs to be integrated in a broader story
   and put the consumer at the heart of the program


   Through Direct Marketing integration into our campaign,
   Tropicana was able to leverage the efficiency of a new product
   launch


   Direct Mailing has created relevance and credibility for our
   product and amplified our outdoor and print message


   Transfer from classic mass media to one-to-one communication
   has improved the ROI of the campaign


                                                                  23
Thank you for your attention




                               24
25

Discovery 7 Tropicana Case

  • 1.
    & One-to-One Strategy meetsmedia integration: Launch of Tropicana Essentials Vitamine C+ 1
  • 2.
    Agenda Setting the Stage The Briefing The Approach The Results Conclusion 2
  • 3.
    PepsiCo at aglance $111 billion market cap... listed on NYSE since 1965 185,000 employees, operating in 200 countries World’s second largest food and beverage company worldwide Retail sales estimated at $92 billion 17 billion-dollar brands, 5 generating annual retail sales of more than $5 billion Portfolio of over 200 brands 3
  • 4.
    PepsiCo has 4sites in Belgium and a number of strong brands PepsiCo Sites in Belgium Tropicana Zeebrugge Zeebrugge Veurne Brussel Veurne Snack Foods Borgloon Looza Borgloon Net Revenue: EUR 140,000MM PepsiCo Belgium Commercial HQ Zaventem • 967 Employees 4
  • 5.
    Tropicana at aglance: Not all juices are equal 100% pure 100% pure squeezed squeezed no added water, colour, no added water, colour, sugar or preservatives. sugar or preservatives. gently pasteurized for Unpasteurized longer life vs. Freshly Squeezed. <5 days shelf life Between 1% and 99% Juice 100% pure juice Water evaporated off added water sugar, flavouring, After transport, juice & preservatives. reconstituted & pasteurized. chilled or long life. chilled or long life. 5
  • 6.
    Tropicana at aglance: From Mass to Targeted Awareness 80 Penetration 14 Media Spendings Tropicana 2008 Media Spendings Tropicana 2009 Others DM & E- Mail Others 11% 25% 7% Outdoor Print 34% 26% TV Outdoor 55% 42% 6
  • 7.
    Tropicana at aglance: Why to start a loyalty program? A strong growth of PL Other 49 53.3 50.3 51.9 50.8 81 A share of voice under + 24% our market 51 26.8 share 21.4 18.8 18.5 19 Tropicana PLB’s 2006 2007 2008 2009F A message about purity & 8.5 pleasure 21.2 50 which is not unique anymore HU = ca. 95.000 HH households A need to improve VFM 30 70.3 >> Better targeting perception in a decreasing is needed buying purchase power 20 % TPP % TPP Vol users 7
  • 8.
    The Approach Phase 1 : consideration Phase 2 : engagement Phase 3 : conversion Objective Create awareness Create relevancy Activate participation / & impact & credibility identification & purchase Phase 4 : loyalty Reinforce ambassadorship Drive emotional band with Tropicana Drive repurchase 8
  • 9.
  • 10.
    The Approach: Phase1 Phase 1 : Objective Create awareness & impact consideration Connections Strong Media Support JAN FEB MAR OUTDOOR MAGAZINE PR 10
  • 11.
    The Approach: Phase2 Objective Objective Create relevancy & credibility Phase 2 : engagement Strong Presence Vitamine C+ Connections in “Savoure Le jour”program JAN FEB MAR DIRECT MAILING E-MAILING WWW.TROPICANA.BE 11
  • 12.
    The Approach: Phase2 Target Group Program Target Group Program Communication Strategy 35 – 60 year High social class City Households no kids / little kids < 5 years Interests : Wine, ski, golf, tennis, hockey, thalasso, travelling 2009 = Launch CRM Umbrella 12
  • 13.
    The Approach: Phase3 Objective Activate participation / identification & purchase Phase 3 : Conversion Call to action/Offer : Outcome Personalized Reduction Coupons in DM Registration online (contest as incentive) Registration via response card On pack contest POS Visibility 13
  • 14.
    The Approach: Phase4 Objective Reinforce ambassadorship Drive emotional band with TROPICANA Drive repurchase Phase 4 : Loyalty Continue on further the Next Steps “Savoure Le jour” CRM program APR MAY JUNE JULY AUG SEPT OCT NOV DEC DIRECT MAILING OUTDOOR E-MAILING WWW.TROPICANA.BE 14
  • 15.
    The Results: ImpactDirect Mailing Communication Funnel Intent to Recall having Recall content buy and/or to Opened it Read it Intent to act received it (content or message) use coupon (top boxes) “Do you “Can you “Do you have the “What did you do “Do you have intention remember describe the intention to with the DM?” to buy Tropicana? receiving a DM?” DM?” react?” Users 83 66 55 94 51 94 48 83 40 61 TOTAL n=300 Average 63 41 36 31 18 nB2C=16 Average 61 87 85 50 nB2C = 16 + + + + + Average opening High reading rate: Very good direct High recall rate Good content recall rate content appeal activation % of respondents (n=600) – 100% of the respondents 15
  • 16.
    The Results: ImpactDirect Mailing Content Recall Top 3 1. Reduction Coupons 2. New Flavour in the series Essentials : Vitamine C+ 3. Tropicana contains extra Vitamine C “Extra resistance and Vitality During the winter” had high scores 16
  • 17.
    The Results: ImpactDirect Mailing Recall – Activation Matrix 100% Strong activation 90% case Efficient Limited recall 80% mailing Tropicana 70% Strong recall case Limited reaction Activation rate 60% level 50% Average (43.6%) 40% Improve attention Do it again 30% 20% Improve action 10% 0% 0% 20% 40% 60% 80% 100% Avg (65.3%) Recall rate N B2C=16 Activation rate = 50% * intention to react (base=people having read mail) + 50% * intention to purchase (base = people recalling ad) 17
  • 18.
    The Results: CouponingUse Redemption 8,7% On Average by coupon 17% On Average by household 18
  • 19.
    The Results: CouponingUse Profile Analyse Coupon Users HH no kids 50 + Highest social groups Brussels = confirmation of GFK profile Mailing respondents are representative for the Tropicana target 19
  • 20.
    The Results: E-newsletter 12,15 % clicked versus Total (vs. IAB Benchmark FMCG 11,10%) Vitamine C+ Content 12% of total CTR on Vitamine C+ (Top 3) Delivered Opened Clicked/Opened Clicked/Total Newsletter Tropicana 86,96% 25,13% 48,33% 12,15% Benchmark IAB 93,20% 23,80% 11,10% 20
  • 21.
    The Results: ContestParticipation Participants 43% DM & E-news 22% overlapping contacts 57% Other sources 5,9% (ON-PACK / POS / WOM) 6% of Total of Total mailing e-newsletter 21
  • 22.
    The Results: Savourele Jour Registration Through registration card = 0,026% Through packaging and others sources = 41% Who received DM = 34% Who received e-newsletter = 24% 22
  • 23.
    Conclusion Direct Marketing efforts needs to be integrated in a broader story and put the consumer at the heart of the program Through Direct Marketing integration into our campaign, Tropicana was able to leverage the efficiency of a new product launch Direct Mailing has created relevance and credibility for our product and amplified our outdoor and print message Transfer from classic mass media to one-to-one communication has improved the ROI of the campaign 23
  • 24.
    Thank you foryour attention 24
  • 25.