Outdoor Works at Driving Sales

Page 05 // July 2009

JCDecaux OneWorld brings you 4 Case Studies showing that Outdoor is effective at driving sales.

SUPERMARKET NETWORKS BOOST SALES

JCDecaux UK’s Destination Tesco net-work is an attractive choice for adver-tisers, offering a large audience of pot- ential consumers throughout the day, coupled with close proximity to point-of-sale and the moment when purchase decisions are made. The Tesco network offers a powerful channel of communica-tion, able to reach consumers with well positioned, timely and effective messages.

To quantify the direct affect of Outdoor advertising on sales, JCDecaux UK carried out a series of studies comparing sales in a group of test stores against sales in a group of control stores. Sales were monitored in 30 test stores and com-pared against sales in 30 control stores. The only difference between the test and control groups was that test campaigns were posted in the test stores but not in the control stores. Scanned sales data was provided by Tesco for both test & control stores before, during and after the test campaigns.

UK CASE STUDy 1 // DANONE

Background:

Danone Actimel used a mixed media campaign consist-ing of Outdoor, TV and Radio to advertise a promotion for its Actimel drink which included a money-back reward. The objective of the campaign was to promote the habit of drinking a bottle of Actimel every day. Every house-hold was eligible for a full month’s money-back reward if it bought a certain quantity of Actimel drink within the campaign period.

The Outdoor campaign ran across 4 weeks and con-sisted of two bursts of activity in the test stores – the 1st burst was nationwide and the 2nd burst was only in top-selling Actimel stores. The Outdoor campaign was not posted in the control stores.

Sales Result:•There was a greater uplift in sales in those stores with Act imel advert is ing compared against those stores with no Actimel advertising - +31%.

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Outdoor Showcase // Research

• This uplift in sales was still in evidence 7 weeks post campaign (Fig 1).

The effect of the advertising also created a halo effect on other Actimel products, with sales comparatively higher in campaign stores (Fig 2).

Fig 2: Comparative Uplift in Sales of all Actimel products in test vs. control stores

During Campaign( 2 weeks for each

burst)

Post-Campaign(7 weeks after)*

Nationwide Burst +21% +10%

Top Stores Burst +5% +3%

* 5 weeks post campaign for 2nd burst

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Fig 1: Comparative Uplift in Sales of advertised Actimel in test vs. control stores

During Campaign( 2 weeks for each

burst)

Post-Campaign(7 weeks after)*

Nationwide Burst +31% +20%

Top Stores Burst +11% +7%

* 5 weeks post campaign for 2nd burst

Background:

Red Bull’s Energy Drink is a well known brand in the UK. In the spring of 2008, the company launched a brand new product into the highly competitive cola market – a natural cola drink called Red Bull Simply Cola. This new drink was launched nationwide using TV and Outdoor. The Outdoor campaign ran for 2 weeks in the Tesco’s test stores.

• Sales were still 15% higher comparatively in the test stores 8 weeks after the end of the outdoor campaign (Fig 3).

CASE STUDy 2 // REDBULL

Verdict:The outdoor advertising was effective in driving up sales within the campaign stores. Sales increased the most in those stores that were not already among the top-selling Actimel stores.

Overall an excellent sales result was delivered as the Outdoor campaign drove sales in both bursts. The purchase activity also continued beyond the 4-week campaign period, indicating that the cam-paign objective of creating the habit of daily drink-ing of Actimel may well have been achieved. The campaign also delivered a bonus for Actimel by creating a halo effect on the other Actimel prod-ucts, demonstrated by the increase in their sales within the test stoes.

This study clearly demonstrates the ability of a supermarket network to deliver a call-to-action message at the right place and at the right time that translates directly into sales.

Verdict:This study clearly shows the positive effect of an Outdoor campaign in driving sales. The Red Bull Simply Cola campaign resulted in a direct increase of sales of +63% in the test stores. The uplift in sales was even sustained over the 8 weeks following the campaign. Sales of direct competitor Coca-Cola fell over the 10 week period, whilst Pepsi introduced a drastic price cut (80 pence down to 60 pence) in an effort to maintain its sales.

Sales Result:• Sales of Red Bull Simply Cola rose by 9% within the test stores during the 2-week campaign period and were +63% higher compared to sales in the control stores (with no Red Bull advertising).

Fig 3: Comparative Uplift in Sales in test vs. control stores

During Campaign( 2 weeks Sales

Effect*)

Post-Campaign(8 weeks)

Sales Effect*

Red Bull +63% +15%

Pepsi** +3% +16%

Coca-Cola -2% -6%

*Test Stores compared to control stores**Pepsi ran a price reduction promotion over the 10 week period

Outdoor Works at Driving Sales

JCDecaux France commissioned the research company Marketingscan to conduct an ongoing ROI analysis of the efficiency of Outdoor campaigns. Changes in supermarket sales and household retail purchases are tracked and compared with outdoor activity. These data are tracked using a retail sales panel and a household consumer panel respectively.

Marketingscan use a test vs. control meth-odology for this study, using 2 matched French cities. Sales achieved from super-markets in both cities during test campaign and post-campaign periods are indexed against sales achieved during the 2 weeks prior to the test campaign period. The ef-fectiveness of the Outdoor campaign is calculated by comparing the sales indices of the test city against the control city.

Page 07 // July 2009

FRANCE

Background:

Bonne Maman wanted to boost short term sales as well as increase awareness of its Madeleines product. To achieve its objectives, the advertiser decided on a 2-week Out-door solus campaign posted in the test city.

CASE STUDy 3 // BONNE MAMAN

Sales Result:Bonne Maman was interested in the sales performance of its Madeleines from the start of the 2-week campaign through to 4 weeks after the campaign.

Looking at this 6-week period, the advertised product Bonne Maman Madeleines gained a +29% uplift in sales in the test city compared to sales in the control city. In addition to this sales increase, sales of other Bonne Maman products, Bonne Maman Financiers and Bonne Maman Gamme Rouge also experienced an uplift in sales. (Fig 4).

Key competitors in the patisserie category were hit in the 6-week sales period, with Madeleines St Michel showing a decrease of 24% in sales and Madeleines Morina showing flat sales.

Verdict:The Outdoor campaign successfully achieved Bonne Maman’s objective of increasing short term sales. The Outdoor campaign resulted in an increase in sales of both the Bonne Maman’s advertised product and also other Bonne Maman products in the range.

Fig 4: Sales of patisserie products in test vs. control cities

During and Post-Campaign(6 weeks)

Bonne Maman Madeleines +29%

Bonne Maman Financiers +21%

Bonne Maman Biscuits Gamme Rouge

+4%

Pâtisserie Competitors

Madeleines St Michel -24%

Madeleines Morina 0%

ROADSIDE NETWORKS BOOST SALES

Outdoor Showcase // Research

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Sales Result:The 2 week solus outdoor campaign generated an immediate sales increase (+17%) of the advertised product in the test city. The affect continued into the post-campaign period with sales 6% higher com-pared to sales in the control city (Fig 5).

Another Carte Noire product, Paquets also benefited from the Outdoor campaign with a 14% boost in sales compared to sales in the control city. This halo effect lasted beyond the 2-week campaign, continuing for the 4 weeks post campaign period.

During the 2-week Outdoor campaign, Carte Noire’s com-petitors suffered a greater decrease in sales in the test city compared to sales in stores in the control city.

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Fig 5: Sale of dosettes in test vs. control cities

During Campaign(2 weeks)

During and Post-Campaign(6 weeks)

Carte Noire Dosettes +17% +6%

Carte Noire Paquets +14% +6%

Dosettes Competitors

Senseo Dosettes -8% -5%

Velours Noir Dosettes -12% +4%

CARTE NOIRE - CREATIVES

Verdict:A solus Outdoor campaign drove a sales increase of +17% for Carte Noire Dosettes. The campaign also boosted sales of another of Carte Noire’s product range while causing a dent in the sales of its competitors at the same time. This study is testament to the power of outdoor to drive sales even in the highly competitive sector of coffee.

Background:

Carte Noire is a regular user of Outdoor and decided to launch their new Dosette product on Outdoor using a 2-week solus campaign posted in the test city.

CASE STUDy 4 // CARTE NOIRE