1

The ProofThe business case for newspaper advertising as part of the media mix

2

Schweppes ran newspaper ads throughout 2009 supporting both the master brand and individual products. dunnhumby analysis of Tesco Clubcard data showed that the campaign created both a short-term and long-term sales effect.

Why newspapers for Schweppes?

2009 sales data demonstrates that frequent national newspaper readers spend 44% more on Schweppes than heavy TV viewers. Quality newspaper readers account for 21% of all Schweppes Tonic sales.

Newspapers drive an immediate sales increase

The first phase of advertising (which ran March-June 2009) drove an immediate 11.5% increase in Schweppes sales. Over the entire campaign (March – mid-October) newspaper ads boosted sales by 9.5%, and a further 5.8% post-campaign.

Newspapers motivate trial and increase penetration

Trial was boosted by 18% by the cartoon campaign and penetration rose 12%.

SchweppesHeadline results

†Estimates are based on the purchasing behaviour of people buying a newspaper from Tesco with the Schweppes advertising, compared to a control group (matched purchasing behaviour) who did not buy a newspaper in Tesco, although they may have bought one elsewhere. Sample size: 291,157.

Sales uplift

Source: dunnhumby†

11.5%

3

SchweppesTest Hypothesis: Newspapers build brands and sales

Newspapers are the perfect environment for Schweppes ads, as they provide a large, highly engaged and responsive audience who spend heavily on the brand

Newspapers create a strong emotional response among readers, which helps build brands and influence buying decisions

Relevant editorial heightens audience engagement and interest

Newspapers’ immediacy drives sales response

4

SchweppesTest detail

Media Plan

Mar 09

Apr 09

May 09

June 09

July 09

Aug 09

Sep 09

Oct 09

£m

MediaTarget

Audience:Adults 25+

National Newspapers

0.5

0.1

0.3

Research Dates

Millward Brown

Pre-wave

Post wave

Continuous from Dec 08 to

Dec 09

Panel Sample: 1106 adults 25+ regular readers of Guardian,/Observer ,Times/Sunday Times, Telegraph/Sunday Telegraph pre-campaign, 1231 post campaign

Media Source: NMR/NRS

Cartoon campaign 168 GRPs

Campaign objective

To create an ongoing dialogue with consumers and bring to life Schweppes' point of view on why experience matters in today's society...with the ultimate aim of attracting new buyers

Lemonade/Tennis

52 GRPs

Abbey Well 132 GRPs

5

SchweppesThe Creative Work

Newspaper ‘Cartoon’ creative

Schweppes Cartooncampaign

During/post Total campaign

42

20

Recognition – Newspaper ads

% recognising

Source National newspaper reader panel data

6

SchweppesThe Creative Work

Newspaper Lemonade and Abbey Well creative

7

SchweppesThe Findings

8

SchweppesNational newspaper readers spend heavily on Schweppes brands

Expenditure on Schweppes

£ per household 2009

£3.41£3.09

£4.45

£3.45

Total Market

Heaviest 3rd TV viewers

Frequent Newspaper

readers

Frequent Magazinereaders

Kantar Worldpanel 52 weeks to Dec 2009. Population 000s. All households 25200. Heaviest third TV viewers = 7208. Frequent newspaper readers = 7212. Frequent magazine readers = 6973. Heaviest third of TV is 29% of TV

9

Schweppes

Readers of quality titles spend 95% more per household on Schweppes than heavy TV viewers

£3.41£3.09

£4.45

£6.02

£5.33

£3.04

Expenditure on Schweppes

£ per household 2009

Total Market

Heaviest 3rd TV viewers

Frequent Newspaper

readers

Frequent Quality NPs

Frequent Mid-market NPs

Frequent Popular NPs

Kantar Worldpanel 52 weeks to Dec 2009. Population 000s. All households 25200. Heaviest third TV viewers = 7208. Frequent newspaper readers = 7212. Frequent magazine readers = 6973. Regular qualities =1623. Regular mids = 2136. Regular pops = 2692. Heaviest third of TV is 29% of TV

10

Schweppes

Frequent quality readers account for 21% of Schweppes Tonic salesExpenditure on Schweppes Tonic

£ per household 2009

£1.19

£0.77

£1.82

£3.89

£2.33

£0.69£0.55

£1.13

£2.27

£1.43

£0.50 £0.22£0.69

£1.62

£0.90

Total Heaviest 3rd TV viewers

Frequent Newspaper

readers

Frequent Quality NPs

Frequent Mid-market NPs

Kantar Worldpanel 52 weeks to Dec 2009. Population 000s. All households 25200. Heaviest third TV viewers = 7208. Frequent newspaper readers = 7212. Frequent magazine readers = 6973. Regular qualities =1623. Regular mids = 2136. Regular pops = 2692. Heaviest third of TV is 29% of TV

Schweppes Tonic

Schweppes Slimline Tonic

Total Schweppes Tonic

11

SchweppesNewspapers more flexible for matching to brand profile

Profile of Schweppes users

%

Source TGI 2010 Q1

Schweppes users Heavy Qual/Mids NP readers Heavy TV viewers

16 14

37

4846

49

36 40

14

AB

C1C2

DE

12

Cartoon campaign drives 11.5% sales increase

Schweppes

Newspaper advertising effect on Schweppes sales

% increase

Source dunnhumby

11.5

9.5

5.8

DuringCartoon campaign

Mar- June 09

DuringTotal campaign

Mar-Oct 09

PostCampaignOct-Dec 09

13

SchweppesHighest sales impact at 4 OTS

Source dunnhumby

Newspaper advertising effect on

Schweppes sales at different OTS

% increase

1 OTS duringCartoon

campaign

4 OTS duringCartoon

campaign

1 OTS during Total

campaign

4 OTS during Total

campaign

10.1

17.3

8.1

11.8

14

SchweppesNewspapers stimulate trial

Newspaper advertising effect on

Schweppes trial

% increase

During Cartooncampaign

During/post Total campaign

18

10

Source dunnhumby

15

SchweppesNewspapers boost Schweppes penetration

Newspaper advertising effect on

Schweppes penetration

% increase

12

9

5

During Cartooncampaign

During Totalcampaign

Post Totalcampaign

Source dunnhumby

16

SchweppesGood impact and branding for Cartoon campaign

Source National newspaper reader panel data

Newspaper ads

% agreeing

46

61

47

73

81

52

Schweppes Cartoon campaign

Millward Brown Norm

Definitely remember ad was

for Schweppes

Very eye-catching

I’d stop and look rather than turn

the page

17

SchweppesHighly engaging and original advertising

Newspaper involvement diagnostics

Distinctive

Interesting

Soothing

Pleasant

Gentle

Weak

Dull

Boring

Irritating

Unpleasant

Disturbing

Involving

Millward Brown NP Norm

Recognise ‘Cartoon’ ads

(Each axis 0-80%)

Source National newspaper reader panel data

18

SchweppesNewspaper campaign communicates powerfully

Newspaper advertising strongly suggests% answering

Source National newspaper reader panel data

51

55

57

60

Millward BrownUK LINK norm: Key Message = 40%

Schweppes has a sense of humour

Schweppes is an experienced brand

Schweppes is a quality brand

Schweppes is a premium brand

19

SchweppesNewspapers prompt strong re-appraisal

Advertising measuresTop 2 Box %

Source National newspaper reader panel data

3.6 3.8

27

37

44

58

Call to actionGives me a reason to go out and buy

Depth of informationGives me enough information to decide

Emotional brand valuesHelps me connect and identify more strongly

Re-appraisalSurprising and gets me to think differently