NOMINATION BALLOT

2010 Chairman’s Award for

Quality Client Service

L’acqua di Fiori

April 9

How to renew a brand

using social media

Edelman Brazil | Rua Joaquim Floriano, 820 – 20º Andar – Itaim Bibi – São Paulo / SP – CEP: 04534-003

Nomination Ballot | 2010 Chairman’s Award for Quality Client Service | L’acqua di Fiori

Quality Client Service Award Submission ........................................ 03

The beginning of the partnership ..................................................... 05

L'acqua di Fiori returns to the spotlight ............................................ 08

L'acqua di Fiori and the relationship with franchisees ....................... 11

ROI: return over investment ............................................................. 13

The real outcome: change in consumers behavior ……………....... 14

Nomination Ballot | 2010 Chairman’s Award for Quality Client Service | L’acqua di Fiori - 3 -

Team Member’s Names

Ronald Mincheff, Managing Director, Sao Paulo

Thiane Loureiro, Regional Director, Edelman Digital Latin America

Thais Silva, Assistant Account Executive, Sao Paulo

Office Location(s) of Team

Sao Paulo, Brazil

Name of Client Company and Client Contact

L’acqua di Fiori

Patrícia Magalhães, Sales Manager

Name of Program or Campaign

L’acqua di Fiori: How to renew a brand using new media

Nominated by

Thiane Loureiro, Regional Director, Edelman Digital Latin America

Nomination Ballot | 2010 Chairman’s Award for Quality Client Service | L’acqua di Fiori - 4 -

The change of focus from product sales to the consumers’ needs reflects a change in the way of thinking. Companies must think from the outside to the inside, as the new consumers tell

us what they want and how they want it.

For L'acqua di Fiori the work done by Edelman was significant. The development of online actions and the effective monitoring resulted in excellent outcome. It is worth

emphasizing the efficiency of the team responsible for the care and development of strategies. A partnership focused on

results is only possible with compromised people.

Patrícia Magalhães, Sales Manager, L’acqua di Fiori

Nomination Ballot | 2010 Chairman’s Award for Quality Client Service | L’acqua di Fiori

Almost three years ago, Edelman Brazilbegan the digital movement in the SãoPaulo office. Pioneer in the market, it wasthe first PR agency in Brazil to join thequality of the communication servicesand the power of new media. In 2009,Edelman Digital team was presented tothe challenge of developing a Valentine’sDay job to L’acqua di Fiori, a nationalperfume and cosmetics producer founded30 years ago. Throughout thedevelopment of the proposal, we heardthe same comments: “L’acqua di Fiori?But does this company still exist?”

Since the 1980s, Brazilian consumershaven’t heard about L’acqua di Fiori. Thecompany, famous in the past for theperfume production, was away frompeople’s mind. With all these signals,Edelman decided to do a research tosupport the proposed actions, whichconfirmed the comments above:

:: 100% remembered the brand

:: 51% never used its products

:: 49% didn’t know the products

:: 28% considered the brand popular

:: 14% thought the brand was declining

Some findings were also important so theclient could have a clear notion of itsimage in the market:

With the approval of the proposal, wedeveloped an online communicationstrategy for L’acqua di Fiori, whichincluded the generation of content for theValentine’s Day hotsite, creation ofcultural contest, management of officialchannels on Twitter, Orkut and YouTube,besides the creation of relationship withthe beauty blogosphere.

It is important to say that in Brazil thebeauty blogosphere reached animportant level of influence, equivalent tothe traditional media. The bloggers arerespected as specialists and brands treatblogs as important communicationvehicles.

ACHIEVEMENT: Responsibly identifies the client’s objectives and assembles the right mix of skills and resources to meet them.

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Nomination Ballot | 2010 Chairman’s Award for Quality Client Service | L’acqua di Fiori

Summary of the results to the Valentine’s Day job (22 days)

:: 23,364 visits to the hotsite on the campaign period

:: 13% increase on the new visits rate (71, 78%)

:: 781 entries on the cultural contest

:: 37 spontaneous posts in blogs about the campaign

:: 314 followers on Twitter

:: 36 spontaneous tweets about the campaign

:: Almost 3,000 views on the video channel

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Nomination Ballot | 2010 Chairman’s Award for Quality Client Service | L’acqua di Fiori - 7 -

Posts on the main Brazilian feminine blogs (click on the image to go to the post)

The results achieved on the web by the Valentine’s Day job opened L’acqua di Fiori doors for Edelman. The client was pleased about the results and asked for a retainer proposal, which was rapidly accepted and assured great results.

Nomination Ballot | 2010 Chairman’s Award for Quality Client Service | L’acqua di Fiori - 8 -

With the beginning of a continuous onlinerelationship work for L’acqua di Fiori,Edelman developed a long term strategy.In each internet universe, the work wasdone in a specific way, to optimize theresults and approximate the brand moreand more to its consumers.

Hotsites | 287,000 visits to 5 hotsites

During the second semester of 2009,Edelman developed five hotsites forL’acqua di Fiori. Three of them wererelated to products launches (make-up,male and female perfumes) and two wereassociated to commemorative dates(Valentine’s Day and Christmas). Together,the hotsites received more than 280,000visits, an extremely high number thatexceeded the average of visits in thesame period of 2008. All the hotsiteswere thought to have a relevant andinteractive content. Therefore, they havebecome attractive and users spent anaverage of 5 minutes online in thehotsites.

ACHIEVEMENT: Delivers informed analysis, strategic thinking, effective writing, breakthrough creative and sound measurement with intelligence and ingenuity, timeliness and accuracy.

Hotsites developed in 2009 (click in the image to go to the hotsite)

Nomination Ballot | 2010 Chairman’s Award for Quality Client Service | L’acqua di Fiori - 9 -

Cultural Contests | 4,500 entries

As a way to interact directly with theconsumers and increase even more theawareness of the brand, Edelman usedthe cultural contests. We received 750entries in each of the six contestsdeveloped on the hotsites, Twitter andOrkut. The majority of the prizes wereproducts kits, which reduced to almostzero the cost of the actions.

Blogosphere | More than 100 spontaneous posts

As we said before, the influence of thebeauty blogosphere became higher inBrazil over the last years. The bloggersform a network: they know each other,read and link each others’ blogs.Together, they have millions of readers.For that reason, our major onlinecommunication strategy for L'acqua diFiori was the individual approach with keybloggers. This way, they feel privileged bythe brand. By the time of productreleases, the bloggers receive the newproducts to test and, if they wish, writeabout them. Based on major blogs, otherbloggers end up posting about itspontaneously.

Spontaneous posts about L’acqua di Fiori(click in the image to go to the post)

Nomination Ballot | 2010 Chairman’s Award for Quality Client Service | L’acqua di Fiori - 10 -

Twitter | 1,245 followers

The Twitter’s profile is used to share newsand curiosities about the female world.The posts are not restricted to L'acqua diFiori and its products; the channel worksas a great source of information for thosewho want to keep posted about the worldof beauty, fashion and style. Twitterfollowers compliment L’acqua di Fiori forthe variety of information on the channel,which also honors the bloggers byspreading the contents of their blogs.

Orkut | 202 members

Orkut is the most popular social networkin Brazil and the first massive adopted bythe users. L’acqua di Fiori officialcommunity on Orkut hosts all theinformation and news about the brand injust one place. The users who want to beupdated about the launches, hotsites andother news can became members of thecommunity. The profile is used as arelationship tool with other communitiesrelated to the brand’s universe, likebeauty, perfumes and cosmetics.

YouTube | 10,450 views in 10 videos

L’acqua di Fiori channel on YouTube hoststhe campaign videos of the productslaunches. Each video was seen, inaverage, 1,000 times.

Nomination Ballot | 2010 Chairman’s Award for Quality Client Service | L’acqua di Fiori

L’acqua di Fiori is a family business that

works with the franchise system. For that

reason, keeping a good relationship with

franchisees is as important as being close

to consumers. In a meeting with the

client, Edelman noticed fragility: the

franchisees still had doubts about the

quality of L’acqua di Fiori communication,

because they didn’t know all the work

that had been done. Besides that, they

ignored all the positive comments about

L’acqua on the media and especially on

the internet.

Edelman then suggested the creation of

an online newsletter to cover this gap and

get closer to the franchisees. The bulletin

“Por Dentro da L’acqua di Fiori” (Inside

L’acqua di Fiori) was received with joy and

compliments by the franchisees. In the

first edition of the newsletter, the links to

the articles were clicked 1,410 times.

ACHIEVEMENT: Values the client’s perspective and anticipates its needs.

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“I love it! It is very important for us to know the news, products launches and what is being said about L’acqua di Fiori. Congratulations on the initiative!”

“As a recent franchisee, I couldn’t understand why there wasn’t a communication channel as handy as this one you just adopt. Well, congratulations… better late than never.”

“Hi! Congratulations on this new communication channel. It’s a real proof of interaction between franchise / franchisee / customer.”

“We are writing this email to congratulate you on the initiative of creating L’acqua informative. It was a really great idea. We really missed something like that and now we

can feel part of L’acqua di Fiori.”

Nomination Ballot | 2010 Chairman’s Award for Quality Client Service | L’acqua di Fiori

One of the main goals of the digital

communication work developed by

Edelman was to impact the increase of

the sales in the L’acqua di Fiori virtual

store. The sales in the virtual store are

important to the company because the

profits go directly to the company,

without going through franchisees.

Using the Google Analytics tool installed

in L’acqua di Fiori website, Edelman

measured the amount of sales during the

period in which the online actions took

place (May 29 to December 31). In this

period, 7,096 sales were effective. In the

same period of 2008, 5,644 were

effective.

ACHIEVEMENT: Is consistently committed to the smart financial management of the client’s business.

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It is important to highlight that all work

was performed within the scope of the

contract and hasn’t impacted at any extra

cost to the client. Moreover, Edelman

managed to close a semester agreement

with the supplier of hotsites’ layout and

programming, which facilitated the

payment and reduced the unit cost of the

hotsites for L'acqua di Fiori.

Nomination Ballot | 2010 Chairman’s Award for Quality Client Service | L’acqua di Fiori

After six months of intense work for

L’acqua di Fiori, Edelman São Paulo digital

team is proud to have developed an

online communication program which

fully impacted on how the company is

seen in the market by its customers and

business partners. We can even see a

change of costumer behavior in relation

to the brand: daily, L'acqua di Fiori is

165% more spontaneously mentioned on

Twitter and 60% on blogs.

Besides that, Edelman’s work directly

impacted the number of visits to the URL

www.lacquadifiori.com.br, where the

hotsites were hosted during a period and

the virtual store was in the first plane for

the rest of the time.

ACHIEVEMENT: Produces results that go beyond media relations, for example, increased third party alliances, product sales or share of market, target audience behavior change, expanded contract fees for Edelman, extended work to other Edelman practices or offices, outstanding E2s, etc.

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These results demonstrate that the brand

has achieved its primary goal, to engage

the consumers and enhance its

mindshare. Daily, bloggers and consumers

come to us searching for news,

information about releases and to

compliment the brand and the quality of

its products.

The launch of the new makeup line,

developed primarily on the internet, was

a huge success and put L'acqua di Fiori

next to international brands like MAC and

L'Oreal.

At the end of six months, the client

responded the E2 Review with an average

score of 8.59, more than 9 points for

performance, service and people. For all

that, L'acqua di Fiori has renewed its

contract with Edelman for 2010, with a

22% increase in monthly fee.

Moreover, because of the 30th birthday

of the company to be celebrated in 2010,

the client asked for a full public relations

proposal, which also includes Consumer

practice.

Edelman Brazil | Rua Joaquim Floriano, 820 – 20º Andar – Itaim Bibi – São Paulo / SP – CEP: 04534-003