the key equity components that drive consumption frequency
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The Way of Shopper Marketing Classified - Internal use 1
The Key Equity Components That Drive Consumption Frequency
infoshoppermarketing@coca-cola.com
Rita Houston Director, Marketing Capability Development,
Marketing Capabilities
Classified - Internal use
From Brand Love to Brand Value
Classified - Internal use
I’VE HEARD OF BRAND LOVE…but what is it?…why should I care?…and how do we create it?
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What is Brand Love?
4
LOYALTY BEYOND
REASON
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Source: B³ 2012 13-64 yr olds, Relationship Pyramid
Brand Love is Good Business…love you = drink you
5
Avg Drinks Per Person Per Week –
All Main BrandsAverage Drinks Per Person Per
Week
Know not Accept
Accept not Like
Like not Love
Love not Exclusive
Love
Exclusive Love
0.1
1.0 1.3
3.0
7.5
Know not Accept
Accept not Like
Like not Love
Love not Exclusive
Love
Exclusive Love
6.5
11.1
9.8
4.4
5.4
Coca-ColaDiet CokeCoke ZeroFantaSprite
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201212-49yr olds
Coc
a-C
ola
Bra
nd P
refe
renc
e (A
ll B
ever
age
Cat
egor
ies)
Latin AmericaTop 5 Markets
Source: B³ USA, 12-49 yr olds, 2010, & CSD Reg Unhealthy Perception.Percaps represents Avg. Drinks per person per year from B³.
Coca-Cola Drinks / Year
NO
YES
Claimed Regular SSDsare “Unhealthy
NO
YES 261 265
55 60C
oca-
Col
aB
rand
Pre
fere
nce
(All
Bev
erag
e C
ateg
orie
s)
NO
YES NO
YES 336 301
128 158
Coca-Cola Drinks / Year
Claimed Regular SSDsare “Unhealthy
…Regardless of what consumers rationally “think” about us
Classified - Internal use
Creating Brand Love is A Combination of Science and Art…
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…Which We Have Codified Into A Cohesive Doctrine For Marketing
SCIE
NC
E
AR
T
8
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The DNA Model Incorporates the Major Stages of a Business Planning Process…
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ASSESS OPPORTUNITIES
DEVELOP STRATEGIES
DEVELOPPLANS
EXECUTE
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…embedding Key Commercial Components At All Stages
ASSESS OPPORTUNITIES
DEVELOP STRATEGIES
DEVELOPPLANS
EXECUTE
Shopper
Occasion, Brand, Channel
PITA
Package
Retail Activation
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Fusion Point 1
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MARKET INSIGHTS HUMAN & CULTURAL INSIGHTS
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Fusion Point 2
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PROFIT MAPS BRAND/CATEGORY MAPS
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NEED STATES
ROUTINE REFRESHMENT
HUNGER AND DIGESTION
SENSORY PLEASURE AND FOOD ENHANCEMENT
HAVING A GOOD TIME
COMFORT AND RELAXATION
SELF CONFIDENCE AND INDIVIDUALITY
ENERGY/STIMULATION
ACTIVE REPLENISHMENT
MENTAL RENEWAL
HEALTH, BEAUTY, AND NUTRITION
ROUTINE REFRESHMENT
RELIEVE HUNGER
AID DIGESTION
SENSORY PLEASURE
COMPLEMENT FOOD
ENJOY THE MOMENT
CONNECTING WITH OTHERS
COMFORT
RELAXED AND AT EASE
COPING WITH STRESS
SELF CONFIDENCE AND INDIVUALITY
VIBRANT AND ALIVE
ENERGY KICK
SUSTAINING ENERGY
ACTIVE REPLENISHMENT
MENTAL RENEWAL
PURPOSEFUL NUTRITION
BODY PURIFICATION
WEIGHT MANAGEMENT
CONSUMER SEGMENTS
TEENS
YOUNG ADULTS
ADULTS
MATURE ADULTS
Brand/Category Maps Allow Us To Develop Footprints Against Consumer Segments
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TCCC BRANDBRAND J
BRAND K
TCCC BRAND
BRAND E
BRAND I
BRAND A BRAND B
BRAND D
NEW TCCC
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Overlaying Profit Maps Enables Us To Prioritize Those Opportunities
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NEED STATES
ROUTINE REFRESHMENT
HUNGER AND DIGESTION
SENSORY PLEASURE AND FOOD ENHANCEMENT
HAVING A GOOD TIME
COMFORT AND RELAXATION
SELF CONFIDENCE AND INDIVIDUALITY
ENERGY/STIMULATION
ACTIVE REPLENISHMENT
MENTAL RENEWAL
HEALTH, BEAUTY, AND NUTRITION
ROUTINE REFRESHMENT
RELIEVE HUNGER
AID DIGESTION
SENSORY PLEASURE
COMPLEMENT FOOD
ENJOY THE MOMENT
CONNECTING WITH OTHERS
COMFORT
RELAXED AND AT EASE
COPING WITH STRESS
SELF CONFIDENCE AND INDIVUALITY
VIBRANT AND ALIVE
ENERGY KICK
SUSTAINING ENERGY
ACTIVE REPLENISHMENT
MENTAL RENEWAL
PURPOSEFUL NUTRITION
BODY PURIFICATION
WEIGHT MANAGEMENT
CONSUMER SEGMENTS
TEENS 17 81 2 44 21 86 97 38 18 11 52 32 60 23 82 15 26 71 39
YOUNG ADULTS
5 13 63 27 40 58 36 45 9 77 30 12 96 18 3 29 51 20 19
ADULTS 37 22 2 47 34 61 37 90 23 56 29 13 35 27 79 14 10 26 70
MATURE ADULTS
30 18 24 67 55 95 33 76 6 69 41 19 99 46 93 31 83 65 4
TCCC BRANDBRAND J
BRAND K
TCCC
BRAND E
BRAND I
BRAND A BRAND B
BRAND D
NEW TCCC
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BRAND GROWTH STRATEGY
Fusion Point 3
BRAND VISION AND ARCHITECTURE
USA version being updated
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PITA Is a Key Component of the Brand Growth Strategy
Brand Ambition
Consumer Target
Shopper Target:
Mom and Established Adults:Move from “Coke is around”
(ubiquity) to Coca-Cola is unique and special to me (and everybody)Teens: Engage with teens in a relevant and impactful way to
become the #1 teen brand
Transcend diet category by becoming the drink for moments, activities and
events where guys will be guys
Reframe Diet Coke from a 1980’s weight
management tool to a smart boost for self-defined achievers
Growth Drivers:
Sources of Growth:Primary source Mom and EA: Drive frequency
among category and brand users
Teens: Drive Incidence among category users
Majority of recruitment expected outside diet category
Majority of recruitment expected within diet category
Competitive source of volume Mom and EA: Regular SSD
Teens: Regular SSDRegular Sparkling and Still brands no direct competitor from a sourcing perspective
Diet Pepsi expected to account for significant volume
sourcing + Diet SSDs
Key sourcing Occasion(s)Mom and EA: Meals and
snacksTeens: On the Go, Home C.Out
Away from Home: Night out with the guys e.g. after work
with foodAt Home Consumption: Guy “chill-out time” – e.g. gaming,
watching sports
Away from Home (Break at work/college, On-The-Go,
With Food)At Home Consumption: “On” moments, (i.e entertainment)
Main Competitive drains Mom: Water, DrPEst. Adults: Water, JuiceTeens: Water, SSD
SSD diets, Water, Sports Drinks Energy Water, diet SSD
Brand Vision statementThe universal icon of
happiness
The ability to have it all (Possibilities)
The Badge of Achievement for “A” Gamers
20yo (male) skew male
Teens: 13-18YA: 19-24Boomers: 45-64Moms 24-49 w/kids <19
25yo (female/Male)skew female
teens Mom & EA
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We Employ a Detailed Version of PITA to Derive Our Objectives…
Life-stage
A
IT
PGrowth Lever
Cohort Effect
Recruit into the Category through Coke
Recruit from other brands into Coke
Maintain current Coke consumer base
Increase frequency of current Coke drinkers
Opportunity Size 2013-2020 (Mucs)
Retain current Coke drinker frequency
25 14 35 11 37
10 10 6 5 10
18 24 10 10 12
27 32 2 35 22
15 17 15 18 13
15 21 16 15 18
- - - - -
12-19 20-29 30-39 40-49 50+
Growth Strategy
Retain & build frequency of consumption across the entire drinkership.
2
Recruit next 2 generations by 2020. Refreshing & expanding the user base
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Source: RFR tool, FY 2010, ‘maintain current base’ + ‘retain current drinker frequency’ are loss avoidance
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Maintain current Coke amount per serving 4 7 6 5 7
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BRAND AND PORTFOLIO PLANS
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PRODUCT, PACKAND EQUIPMENTAGENDA
COMMUNICATION AND
CONNECTION AGENDA
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Once we build our plans, how do we bring them to life?
Business Objective
Strategic Imperatives
Business Strategies
Communications Objectives
Communications Strategy (Pathways) Success Metrics
To increase transactions among Moms 25-49with kids under 18 vs YAGO
Get more Moms to serve Coke more often to her family
1) Reposition Coke from being a drink that Mom restricts to a drink that marks any day celebrations for her family
2)OWN MOMENTS OF JOY (seasons and occasions) where Coke is welcomed
-Summer-Everyday/ Spontaneous (can include Meals)-Holidays-Big Events
3) Drive frequency at retail through focused brand partnerships and package offerings where together with Coke, Mom can create an any day celebration
Shift moms’ perception of Coke from a drink for special occasions, to a brand that marks moments of joy any day.
REFRAME Coke's role in mom's world as an any day treat. -Through iconic media TVC, OOH; as well as more intimate/conversational media DWOM/mommy blogger events
RITUALIZE Coke within the occasions mom already creates for her family.-Exclusive customer extensions, digital promotions
REMIND Mom to keep Coke on hand by INTERRUPTING her shopping trip with surprising bundle offers that put Coke back on her shopping list-Think beyond the soda aisle by creating partnerships with the products Mom already seeks -Create digital activations that interrupt Mom’s daily routine and inspire her to create any day celebrations
B3: Is a brand I love, favorite brand, Is OK for my family (2011: Fav Brand 16.2%: +0.7ppt; Brand I love: 30.8%: +0.7ppt; Is OK for my Family: 45.9%: -2.6ppt)
B3: Goes well with food, Fun times with family and friends,Is unhealthy (2011: GWWF: 55%; flat; Fun times w/ friends: 68.2%: +0.7ppt; Is unhealthy: 46.4%: -1.6ppt)
Millward Brown IMC Research (Benchmark: ONS above 110) / IMI Promo Research (Benchmark: Green zone)
Volume: 2012 plan goal: -2.3% vs. LY
Transactions: Exceed 2011 Transactions (2011 Benchmark: 5.1)
HH Penetration;Exceed 2011 HH penetration with HH’s w/ kids <18: 18.2%
To increase household penetration (purchase) among Moms 25-49with kids under 18 vs YAGO
P I T A
IMC Supports Brand Business Objectives
O B P P C
Coca-Cola: Moms IMC Framework
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…Based on An In-Depth Understanding of the Consumer And Shopper Target Audiences
• Precision target lapsed CSD buyers
• Ongoing message rotation/testing
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We know what content will drive the business forward
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Half of Consumption Frequency is Driven by Brand Affinity…
1. Every factor in this model has an impact on Consumption Frequency. Most have indirect impact (e.g. Company Image), and two have direct impact - Brand Affinity and New Packaging.
2. Numbers indicate the magnitude of impact from one factor to another.
3. Numbers range from 0 to 1, where 0 means no impact and 1 means complete impact.
4. Numbers can be compared. The larger the number, the greater the impact. For example, the impact of Brand Affinity on Consumption Frequency (0.48) is more than double the impact of New Packaging on Consumption Frequency (0.22).
THE BRAND EQUITY MODEL – COKE – MAGNITUDE OF IMPACT
Consumption Frequency
.48BrandAffinity
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…But Brand Affinity is Made up of Several Sub-Components…
PATH TO INFLUENCE CONSUMPTION FREQUENCY
1. Every factor in this model has an impact on Consumption Frequency. Most have indirect impact (e.g. Company Image), and two have direct impact - Brand Affinity and New Packaging.
2. Numbers indicate the magnitude of impact from one factor to another.
3. Numbers range from 0 to 1, where 0 means no impact and 1 means complete impact.
4. Numbers can be compared. The larger the number, the greater the impact. For example, the impact of Brand Affinity on Consumption Frequency (0.48) is more than double the impact of New Packaging on Consumption Frequency (0.22).
THE BRAND EQUITY MODEL – COKE – MAGNITUDE OF IMPACT
Consumption Frequency
.48Brand Emotional
Image
Brand Connection with People
BrandAffinity
Brand Functional
Image
Company Image
Awareness of Communication
.65.22
.53.27.15
.46.35
.96
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• Coke is a refreshing drink
• Coke is great tasting
• Coke has a premium quality
• Coke really cares about customers and communities where they live
• Coke actively participates in recycling and environmental efforts
• Coke supports healthy, active lifestyles
• Aware of TV ads for Coke• Aware of Coke brand vending machines• Aware of Coke sponsoring sports,
community, culture, and charity events
…And We Know What Messages Will Drive Those Sub-Components Most Effectively
PATH TO INFLUENCE CONSUMPTION FREQUENCY
The three attributes under each factor are the most important ones in that area to help impact consumption frequency.
Consumption Frequency
Brand Emotional
Image
Brand Connection with People
BrandAffinity
Brand Functional
Image
Company Image
Awareness of Communication
• Coke gives me enjoyment anytime
• Coke is an uplifting drink• Coke is cool
• Coke is for someone like me• Coke is a brand you love• Coke makes the moment
more fun
• Coke is worth what you pay for• Most likely to choose Coke• Coke is favorite CSD brand
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Before After
We Are Very Careful to Ensure that Our Communications Drive Brand Love
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1.34
3.32
2.45
0.21
1.28
0.52
1.84
Break-even line1.66
* ROI = (Incremental EQ Volume * System Gross Profit) / Spend
System ROI * by Media Vehicle
PROPERTY TV FLEX TV DIGITAL CINEMA RADIO PRINT OOH/CDN OVERALL
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Fusion Point 4
CHANNEL/CUSTOMEREXPERIENCES
BRAND EXPERIENCES
Classified - Internal use
I’VE HEARD OF BRAND LOVE
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…but what is it? loyalty beyond reason
…why should I care?it drives volume
…and how do we create it?leverage the proven science and art of DNA
The Way of Shopper Marketing Classified - Internal use
THANK YOUFor additional information please visit the Shopper/Customer Marketing
Community at www.KOSCMarketing.com
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