promotions strategy group 3 hbr article

CREATIVITY IN ADVERTISINGWhen It Works and When It Doesn’tBy Werner Reinartz and Peter Saffert

Submitted by-Group- 3

Shubhra(PGP30283)|Pankaj(PGP30262)|Parul(PGP30328)

Creativity…More memorableLonger lastingLess media spending Build fan community

Creativity ……………….. ?

Is this Creativity ?

The ability to find unusual and non obvious solutions to a problem

Elaboration : 1.32

Artistic value : 1.19

Originality : 1.06

Flexibility : 1.03

Synthesis : 0.45

Varying influence level of dimensions on Sales

Predicting an Ad’s effectiveness

• Consumer respondents are asked to score(1-7) the ads on each dimension by answering the questions under each dimension

• Overall creativity rating= Average of scores of each dimension

ORIGINALITY

Is the ad “out of the ordinary”? Does it depart from stereotypical thinkingIs it unique?

COCA COLA “HAPPINESS FACTORY”

FLEXIBILITY

Does the ad contain ideas that move from one subject to another? Does it contain different ideas? Does it shift from one idea to another?

JACOBS KRONUNG “TIME FOR CHATTING”

ELABORATION

Does the ad contain numerous details?Does it extend basic ideas and make them more intricate? Does it contain more details than expected?

EHRMANN YOGURT “STRAWBERRY TONGUE”

SYNTHESIS

Does the ad connect objects that are usually unrelated? Does it contain unusual connections?Does it bring unusual items together?

WRIGLEY’S JUICY FRUIT SQUISH “JUICY FRUIT RANCH”

ARTISTIC VALUE

Is the ad visually or verbally distinctive? Does it make ideas come to life graphically or verbally? Is it artistic in its production?

DANONE FANTASIA “FLAVOR TRIP”

USE OF CREATIVITY DIFFERS BY CATEGORY

Easily understood products- Out of the ordinary approach Eg.- Cola drink

Functional products- Important to deliver factual proof points. Eg.- Shampoo

IS MORE CREATIVITY BETTER?Mainly depends on product category’s

sensitivity to creativity

Product Category Additional creativity Sales impact

Shampoo and detergent

Yes + 4%

Body lotion and face care

Yes - 2%

Shavers and coffee Yes Nearly + 8%

Colas and yogurts Yes Less than + 1%

MEASURING CAMPAIGN EFFECTIVENESS

CAMPAIGN- A CAMPAIGN- B

CREATIVITY INDEX RATING

3 3.5

BUDGET ALLOCATED

€ 500,000 € 400,000 (less than A due to more cost of

creation)

MEASURING CAMPAIGN EFFECTIVENESS

WEEK % OF SALES IMPACT OF CAMPAIGN- B HIGHER THAN CAMPAIGN- A (Measured through Hierarchical Sales Response Model)

1 1.07

2 1.93

3 2.63

4 3.19

MEASURING CAMPAIGN EFFECTIVENESS

Diverting money from the airtime budget to creative advertising, will result in a more effective ad

Hierarchical Sales Response Model shows that the company could cut airtime spending to 330,000 euros before the negative impact of reduced airtime outweighed the positive effect of creativity