Marketing Case Study

DespatchesKey sources: Own despatches, BCCCA, MANX, Financials

System: SAP/BW, Merlin (tbc)Key Measures: Volume, NPS (despatches only), Value, Share (MANX/BCCCA), Margin/EBITA etc (Financials)Key Splits: By channel, customer & category splits (limited on BCCCA/MANX)Time Periods: Weekly (despatches), 4 weekly (MANX/BCCCA)

Retail Market MeasurementKey sources: Nielsen 1 weekly

• TNS Brand Equity (Brand Image, Consideration, claimed usage),

Purchasing Panel Key sources: Nielsen Homescan (households/Eat Later/Gifting), TNS Impulse (individuals/Eat Now)

System: Nitro (Homescan), Excel (Impulse)Key Measures: Penetration, FOP, WOP, Purchaser demographics, Heavy/Medium/ Light buyers, % on promotion (Homescan)Key splits: By channel/account (Homescan) and by category/sub-categoryTime Periods: 4 weekly (Homescan), Yearly purchase (TNS Impulse)Points to note: Nielsen launching an Impulse Panel – may include other snack categories. Sample sizes means can’t look at some SKUs. Pick up rate = 50-70%Special Analysis: Switching, depth of trial

Consumption Panel Key sources: TNS Family Food Panel

System: PowerviewerKey Measures: Individual meal occasions/servings (not expenditure), consumption profiles, day of week, time of day, occasions, where consumed (OOH), complementary analysisKey splits: OOH, In home, Lunchbox, VendedTime Periods: Yearly purchase (TNS Impulse)Points to note: Can only look at total brand and some may be too small. Many other categories/sub categories including drinks

Other market data: Market reports. IGD, Consumer Services,Ad hoc.Stats

System: MerlinKey Measures: Consumer Volume, Value, Distribution, WROS, Price, % on promotion, facings (quarterly)Key splits: By channel and by category, SKU level, customer level data for some accountsTime Periods: Weekly & 4 weeklyPoints to note: Pick up rate = 65-90%, IRI are Nielsen competitors

Other data sources:

• TGI data (claimed penetration, H/M/L buyers, media usage)

• Gifttrack (claimed gifting levels, profile of givers, brand detail (from Apr 05)• Dunhumby – Tesco Clubcard

(similar to Homescan)• Media expenditure (monthly

by brand)

We use a lot of ad hoc research to answer specific

questions

Quantitative provides the bones

and

qualitative the flesh

Qualitative & Quantitative surveys are different . . .

Qualitative Quantitative

Answers: What? Why? How come?

How many? How much?

Useful for: Development Evaluation

Development of NPD

Understanding the brand &

where it can goDeveloping advertising

Evaluating communication

on airSizing NPD

Key steps taken to understand the reasons

for sales decline, all firmly rooted with consumers

Focus groups

In-depth interviews Analysing calls

into Consumer Services

Brand sales data

Analysing & interpreting major

socio-economic trends

CompetitorperformanceAnalysis of

confectionerymarket

Brand Image

Data

Socio-Economic trends: 3 Main Macro Trends Impacting on Snacks &

Confectionery

Indulgence & ConnoisseurshipRaising the Pleasure

Bar

Busy LivesMaking

confectionery more

convenient to shop & consume

Nutrition, Health & Wellness

Making Confectionery

more permissible/

healthier snacks

Source: Nestle trends 2005, Leatherhead Food international 2004

Result = negative impact on core business, and its profitability

Market analysis: commoditisation makes it

harder to grow share profitablyFierce

competition

Commoditisation

Availability/ Visibility declining

Higher % on Promotion

Majority of innovation is

variation

Low inflation environment

Diminishing salience of category

Fragmentation of Demand

Brand Equity diminishing

In confectionery, big blocks and big bags are the two areas in strong growth

0100200300400500600700800900

Choc

Mul

tipac

ks

Sugar

Multi

packs

Snack

size

Min

is

Block

s

Choc

HB

Sugar

HB

Choc

sing

les

Kids

& Suga

r sin

gles

Source: Nielsen (2004/2001)

-0.4%

+/-% -10% -2%

+29%+39%

+8%

+5% +5%

Investigation starts close to home with historical brand

performance data

Value, volume,

unit sales over time

Market share evolution

Performance by pack format

Performance by flavour

Rate Of Sale of each product

Distribution of each product

Can be measured at “total market” level, by sales channel and sometimes even by customer

Key competitors: which other brands are Aero

consumers buying and why?

Understanding:• Brand size (value, volume, units, market share)• Consumers (who are they? Age, lifestage, lifestyle?)• Need-state & consumption occasion (when, why?)• Benefit and brand positioning

Brand Equity/Image: What do consumers think about the

brand? What would we like them to think?

Monthly surveys completed by several hundred people, administered by an external agency: TNS

Measuring:Brand awarenessPurchase & Consumption BehaviourDisposition towards the brandBrand ImageBrand Personality

Consumer Services plays an important role of keeping us in

touch with consumers on a daily basis

Nestlé Careline is used to:

Take direct feedback from consumers:Product congratulationsProduct disappointmentsOpinions on advertising

Gain quantitative feedback through telephone surveys:New product ideasNew packaging ideasCurrent perceptions of a brand

Focus groups enable us to explore target consumers’ feelings towards the brand

in more depth

Regular focus groups enable us to stay in touch with what consumers are thinking:

We speak to ‘loyal’ and ‘lapsed’ users

We receive feedback on current perceptions of the brand and how this may have changed over time

Consumers evaluate new product and packaging ideas and provide feedback on how they could be improved

Outputs & learnings led to brand repositioning

in 2005

Full renovation & innovation plan in 2005

Brand redesign

Improved recipe

New indulgent products

Entry into growing bitesize market

Aero was the fastest-growing top 20 confectionery brand in 2005:

Sales up 33% versus 2004

Aero was the fastest-growing top 100 Grocery brand

Aero’s growth added more money to the confectionery market than any other brand in 2005 (an extra £19m)

Brand equity scores (consumer perception of the brand) improving

Increased trust & credibility with customers

Outstanding success in 2005