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THE KETCHUP CASE THE KETCHUP CASE Does Newspaper Advertising Works?

The ketchup case

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Page 1: The ketchup case

THE KETCHUP CASE

Does Newspaper Advertising Works?

Page 2: The ketchup case

THE KETCHUP CASE

Newspapers are under pressure

Circulation are decreasing in most European countries

Advertising has dropped drastically

Page 3: The ketchup case

THE KETCHUP CASE

On the other hand

The fragmentation is worse in tv, internet, radio etc.

Newspapers are still a mass medium in many places

Free papers means than more people than ever are reading newspapers

Page 4: The ketchup case

THE KETCHUP CASE

Then why are the largest advertisers

In TVDansk Tipstjeneste

Procter & Gamble

Arla Foods

L'oreal

Coca Cola

Carlsberg

In NewspapersHewlett-packard

SAS

Bilka

Philipson Wine

Magasin

Klasselotteriet

Page 5: The ketchup case

THE KETCHUP CASE

Perhaps?

The largest advertisers and agencies have (had?) lost faith in newspaper advertising

Does newspaper advertising really work…and how?

Lack of documentation of effects

Page 6: The ketchup case

THE KETCHUP CASE

The Story Framework

Create our own case study

A campaign, where the advertising effect could be isolated

Introduce a completely unknown brand

Establish a cooperation with an advertiser

Find a professional advertising agency

Document the effect – also on sales!

Page 7: The ketchup case

THE KETCHUP CASE

The Case

A clinical laboratory test!

No other marketing activities at all!

A large newspaper campaign in all daily titles of JP/Politikens Hus A/S and our advertising partners

Extensive research

The product: Ketchup!!

Page 8: The ketchup case

THE KETCHUP CASE

Why Ketchup?

Page 9: The ketchup case

THE KETCHUP CASE

An Italian ketchup

Page 10: The ketchup case

THE KETCHUP CASE

An Average Mutti

Been on the market for 8 years

Distributed in supermarkets and specialty shops

Priced as Heinz and other major competitors

Nor a premium or a discount product

Just an average ketchup

Page 11: The ketchup case

THE KETCHUP CASE

Mutti – Dal 1899 Solo Pomodore, but

Awareness

0.8%

Advertising spending

0

Price promotions

0

In store activities

0

Page 12: The ketchup case

THE KETCHUP CASE

With a Taste of More

Page 13: The ketchup case

THE KETCHUP CASE

With a Taste of More

Page 14: The ketchup case

THE KETCHUP CASE

With a Taste of More

Page 15: The ketchup case

THE KETCHUP CASE

With a Taste of More

Page 16: The ketchup case

THE KETCHUP CASE

With a Taste of More

Page 17: The ketchup case

THE KETCHUP CASE

Page 18: The ketchup case

THE KETCHUP CASE

The Media Plan

Page 19: The ketchup case

THE KETCHUP CASE

The Media Plan

13 participating papers

10 insertions in each paper, full page 4-colour

3 week campaign period (sep – oct 2003)

4 insertions first week

3 insertions second and third week

First insertion 2 full pages

Target group of campaign:

25 – 55 years, who buys groceries

Page 20: The ketchup case

THE KETCHUP CASE

The Media Plan

Reach per insertion 45%

In the target group 44%

Reach of the campaign 77%

In the target group 79%

The campaign delivered 590 TRP

In the target group 580 TRP

Gross price of 4.9 mill. DKK (660 000 EURO)

Page 21: The ketchup case

THE KETCHUP CASE

Even though the ”pros” had warned that there would be reactions already after the first ad, I was surprised to get them already from the start of the day. Do people in advertising sit up all night to be on the forefront of events?

From the diary of Karen Søgaard, importer of Mutti

…soon after SuperGros were on the field. Of course I wasn’t particular popular with this customer either. She had almost gone crazy seeing such a big ad without she knew anything about the campaign. So now she was thinking about a job as a guard in an auto museum. She wanted a quotation right away.

From the diary of Karen Søgaard, importer of Mutti

Page 22: The ketchup case

THE KETCHUP CASE

And the Figures Showed …

0%

2%4%

6%8%

10%12%

14%16%

18%20%

11-0

9-20

03

12-0

9-20

03

13-0

9-20

03

14-0

9-20

03

15-0

9-20

03

16-0

9-20

03

17-0

9-20

03

18-0

9-20

03

19-0

9-20

03

20-0

9-20

03

21-0

9-20

03

22-0

9-20

03

23-0

9-20

03

24-0

9-20

03

25-0

9-20

03

26-0

9-20

03

27-0

9-20

03

28-0

9-20

03

29-0

9-20

03

30-0

9-20

03

01-1

0-20

03

02-1

0-20

03

03-1

0-20

03

04-1

0-20

03

05-1

0-20

03

06-1

0-20

03

07-1

0-20

03

08-1

0-20

03

09-1

0-20

03

10-1

0-20

03

11-1

0-20

03

12-1

0-20

03

13-1

0-20

03

14-1

0-20

03

15-1

0-20

03

16-1

0-20

03

17-1

0-20

03

Awareness Ad recall

Sour

ce: W

EB

POL

4 d

ay a

vera

ge, 5

0 on

-lin

e in

terv

iew

s pe

r da

y

Page 23: The ketchup case

THE KETCHUP CASE

Those who had seen the Campaign

87% believe they have seen the ad in a newspaper - 10% on tv.

35% believe the ad tells it is quality ketchup.

58% would stop and look at the ads, if they see them again

53% would like to try the product

Page 24: The ketchup case

THE KETCHUP CASE

Panic at the retailers…

An unexpected BtB-effect:

All the leading retailers contacted the importer in the first week

The purchasing managers at the retailers also reads newspapers…!

More distribution channels – and more to come!

The shelf space was more than doubled

Page 25: The ketchup case

THE KETCHUP CASE

And the figures showed …

442%Sales increase

Page 26: The ketchup case

THE KETCHUP CASE

We Did a Follow-up

One week advertising (week 10)

4 insertions, same ads, same newspapers

59 GRP per insertion and 240 GRP total

235 TRP in the target group

Price promotion in week 10 & 11 in Irma, a supermarket chain in Copenhagen

In week 11 advertised in flyer

Page 27: The ketchup case

THE KETCHUP CASE

Awareness

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

26-0

2-20

04

27-0

2-20

04

28-0

2-20

04

29-0

2-20

04

01-0

3-20

04

02-0

3-20

04

03-0

3-20

04

04-0

3-20

04

05-0

3-20

04

06-0

3-20

04

07-0

3-20

04

08-0

3-20

04

09-0

3-20

04

10-0

3-20

04

11-0

3-20

04

12-0

3-20

04

13-0

3-20

04

14-0

3-20

04

15-0

3-20

04

16-0

3-20

04

17-0

3-20

04

18-0

3-20

04

19-0

3-20

04

20-0

3-20

04

MuttiWEBPOL - Mutti - base: Alle - ca. 75 on-line interviews pr. dag

Campaign period Flyer Irma

Page 28: The ketchup case

THE KETCHUP CASE

And Sales

285% sales increase in the period

Irma in a league of its own

147% sales increase in january/february

782% sales increase during price promotion

190% sales increase after campaign

Best selling ketchup brand

Page 29: The ketchup case

THE KETCHUP CASE

Mustard goes with Ketchup

Was Mutti just a lucky punch or …A number of smaller case studies in Denmark

Procter & Gamble (Pampers)Job & Liv (trade union)112nu (security)Rahbek Fisk (ready to eat meals)IBMTænk + test (consumer magasine)

A large scale ”copy” in Norway with mustard

Page 30: The ketchup case

THE KETCHUP CASE

The Smaller Danish Cases

Wide variance in campaign sizes

Some newspaper only – some multimedia

All cases – except one – shows very positive results

Higher awareness

Higher sales

Results above advertiser expectation

Page 31: The ketchup case

THE KETCHUP CASE

The Mustard Case

Inspired by the ketchup case, the Norwegian Media Business Association made the mustard case

Same basic idea – take a relatively unknown product and advertise it exclusively in newspapers

Page 32: The ketchup case

THE KETCHUP CASE

The Mustard Case

Our choice was Edmond Fallot Dijon Mustard

A somewhat narrower product category

And an even narrower sub category

Dijon mustard represents only 15% of the mustard market in Norway!

And a product carrying a somewhat hard to remember name …

Page 33: The ketchup case

THE KETCHUP CASE

Mustard Market Shares

Maille12,8 %

Bergbys9,7 %

S&W0,6 %

Colman's1,8 %

Slotts5,9 %

Edmond Fallot1,8 % Other brands

1,0 %

Idun66,5 %

Page 34: The ketchup case

THE KETCHUP CASE

The Mustard Ads

Page 35: The ketchup case

THE KETCHUP CASE

The Mustard Ads

Page 36: The ketchup case

THE KETCHUP CASE

The Mustard Ads

Page 37: The ketchup case

THE KETCHUP CASE

Brand Awareness

Post campaign

(Friday 3 Des–week 49)

Campaign Period (Friday 13 Nov – week 46)

19,821,6 21,9

29,9

42,2

34,6

0

5

10

15

20

25

30

35

40

45

50

Week 45 Week 46 Week 47 Week 48 Week 49 Week 50

Page 38: The ketchup case

THE KETCHUP CASE

Market Shares in Distributed Stores

8,37,1 7,6

12,6

14,0

9,710,9

6,5 6,25,6

8,5

5,3

6,35,7

3,5 3,2

0

2

4

6

8

10

12

14

16

Week 47- 50 Week 51-52/1-2 Week 47- 50 Week 51-53+1

Mar

ket

shar

e (%

)

Total Chain A Chain B Chain C

Page 39: The ketchup case

THE KETCHUP CASE

And the Sales …

206%Sales increase

Page 40: The ketchup case

THE KETCHUP CASE

THE KETCHUP CASE

Newspaper Advertising Works!