Read Case Study - Continental Outdoor

CONTINENTAL OUTDOOR
MEDIA – ROMItrack
HUGGIES – control / test store analysis
1
INTRO…
•
ROMI – Return on Media Investment
•
Marketers generally advertise to sell product!
•
Campaign awareness vs ROMI:
•
the term "ROMO" for Return-On-Marketing-Objective reflects the idea that marketing
campaigns may have a range of objectives, where the return is not immediate sales or
profits. For example, a marketing campaign may aim to change the perception of a brand.
2
ROMITRACK EXCLUDES…
•
Costs not applied in ROMItrack are:
•
•
•
•
•
•
Creative costs
Printing costs
Technical costs (such as email platforms, website coding, etc to engineer
conversations from OOH platforms)
Management time
Cost of sales
We assume that national/regional TV, Radio, Print are equally impactful in each
homogenous comparative area
3
METHODOLOGY
How it works?
•
•
•
We evaluate the sales volume impact of proposed new marketing initiatives on a small and cost-effective
scale under real life conditions in order to make educated decisions
The approach matches stores/households based on similar past sales patterns in order to make the test
vs. control comparison “fair”*
We evaluate the impact of changes in-store (price, assortment, NPD) or out of store (media) under
managed and controlled “real life conditions” in order to optimize performance prior to wider rollout.
Compare test sales against a statistically matched
control group
Quantify the impact to make fact-based decisions
4
AGENDA
1 Business Question & Solution
2 Scope
4 Volume drivers
5 Results & Insights
6 Summary of findings
5
BUSINESS QUESTIONS
• How efficient was the Huggies Billboard campaign in Limpopo?
• How much of product sales increased during and after the campaign?
• What is the ROI?
BUSINESS SOLUTION
The activity achieved a 10% net uplift
6
SCOPE
Target brand:
• Huggies
Test Area:
• Tzaneen (LM)– 20km radius
Competitors:
• Pampers
• Cuddlers
• Private label
Control Area:
• Phalaborwa (LM) – 20km radius
Campaign Period:
Market Breakdowns:
• Start date: 01 August 2013
• End date: 31 November 2013
• Pick n Pay
• Shoprite
• Checkers
7
CONTROL AND TEST AREAS
8
TZANEEN
82715-01
Old Station Road opposite Tzaneng Mall and bus terminus.
Facing shopping complex, bus terminus entrance and exit, hawking stalls.
9
MARKET CONTEXT – VALUE LOCATION 2013
NWLMMP is a large region for Diapers Sales
Most of sales come through Majors
Huggies holds 36% of market Value
17% 9%6%
29%
24%
14%
E CAPE
FREE STATE/N CAPE
GAUTENG
KWAZULU NATAL
NWLMMP
W CAPE
13%
87%
Majors
8% 12%
Non-Majors
CUDDLERS
HUGGIES
45%
36%
PAMPERS
OTHERS
10
CATEGORY VOLUME DRIVERS – SA MAJORS
Total Diapers sales are growing at over 4%, mainly driven by Pampers
Huggies in decline
Total Diapers – SA Majors
Sales Value (millions)
10
1,171
-
2012
CUDDLERS
4.1%
28
49
1,220
19
HUGGIES
PAMPERS
OTHER
2013
11
CATEGORY VOLUME DRIVERS – SA MAJORS
Total Diapers sales are growing flat during the test period
Huggies in decline
Sales Value (millions)
Total Diapers – SA Majors
11
14
-
-
0%
12
9
-
408
Aug-Nov 12
CUDDLERS
HUGGIES
PAMPERS
408
OTHER
Aug-Nov 13
12
IMPACT OF OUTDOOR CAMPAIGN
13
STORE MATCHING – TOTAL HUGGIES
Control Stores always a bit higher that the test stores in pre-test period.
Since Test starts, sales of test stores grow and overtake vs. control.
40000
Test period
Pre-test period
35000
Post-test
period
Average Sales Value per store
30000
25000
20000
15000
10000
5000
0
Control Stores
Test Stores
14
Average Sales Value per store
Test vs. Control
15000
-5000
14-Apr-13
21-Apr-13
28-Apr-13
05-May-13
12-May-13
19-May-13
26-May-13
02-Jun-13
09-Jun-13
16-Jun-13
23-Jun-13
30-Jun-13
07-Jul-13
14-Jul-13
21-Jul-13
28-Jul-13
04-Aug-13
11-Aug-13
18-Aug-13
25-Aug-13
01-Sep-13
08-Sep-13
15-Sep-13
22-Sep-13
29-Sep-13
06-Oct-13
13-Oct-13
20-Oct-13
27-Oct-13
03-Nov-13
10-Nov-13
17-Nov-13
24-Nov-13
01-Dec-13
08-Dec-13
15-Dec-13
22-Dec-13
29-Dec-13
05-Jan-14
TEST VS. CONTROL GAP – TOTAL HUGGIES
Control, stores always during pre-test period.
Since Test starts, sales of test stores grow vs. control.
20000
Pre-test period
Test period
Post-test
period
10000
5000
0
-10000
-15000
-20000
Gap
15
IMPACT OF OUTDOOR CAMPAIGN
NORMALIZING FOR CATEGORY GROWTH
16
STORE MATCHING – TOTAL DIAPERS
Control Stores
05-Jan-14
22-Dec-13
24-Nov-13
10-Nov-13
27-Oct-13
13-Oct-13
29-Sep-13
01-Sep-13
18-Aug-13
04-Aug-13
21-Jul-13
07-Jul-13
23-Jun-13
09-Jun-13
26-May-13
12-May-13
28-Apr-13
100000
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
14-Apr-13
Post-test period
Test period
08-Dec-13
Pre-test period
15-Sep-13
Average Sales Value per store
Total Diapers also grow in the test period
This COULD BE Huggies driving the total category
But at this extent, unlikely
Test Stores
17
INDEX OF TEST VS. CONTROL
PRE-TEST VS. TEST PERIOD
Category and key brands grow c50% into test period
Huggies grows much faster at 92% at the expense of Pampers (20% slower than
category)
Index of Test vs. Control
Index
Test vs.
Pre Test
1.51
1.53
1.31
1.92
2.04
1.71
1.55
1.42
1.13
0.28 0.43
Total Diapers
1.53
Private Label
Pampers
Pre-Test
1.03
0.74
0.67
Huggies
Cuddlers
Test
18
TEST SALES MINUS CONTROL SALES
Average Sales Value per store/week
During the pre-test period (before advert) the control stores were always higher than
test. When the advert starts, the test stores overtake the control stores
R5844
extra
sales per
store /
week
8000
6000
4000
1,279
0
-2000
5,844
5,393
2000
-4,565
-4000
-6000
Pre Test
With Advert
With Advert Category
Normalised
Difference, with
Category
Normalised
19
Understanding the impact of outdoor media on sales
Advertised Brand Name
Huggies Diapers
Manufacturer
KC
Type of Advertising
Billboard
Location of Advertising
Tzaneen, Limpopo
Store Selection Criteria
Pick n Pay, Shoprite, Checkers in 20km radius
Date of Execution
Start
Aug 2013
End
Nov 2013
Investment
Sales Uplift
Revenue
Generated
Return on Investment
(ROI)
R59,200
32%
R935,040
R15.80
Benchmark for Similar Execution
R7.98
Source of Benchmark
Above Expected
SA Diapers Non-TV
Expected
Below Expected
20
SUMMARY
•
Category is growing over time, bug Huggies is in decline
•
Test vs. Control stores see a positive impact in Test Area (Tzaneen)
•
This is also seen across the category
•
Huggies grows faster than the category, at the expense of Pampers
Normalizing for category impact
•
This is a large 32% uplift per store /week
•
This equates to R5844 per store/week additional sales
•
Which yields an ROI of R15.80
21
BENCHMARK DATABASE
Brand
Location
Spend
Uplift
Revenue
ROI
Brand
Share
Brand Size
(M Rand per
year)
Ariel
Tzaneen &
Mokopane
R117k
48%
R220k
R1.88
19% (3
R192
months) (Projected)
Grandpa
Soshanguve R41.1k 3.5%
R83k
R2.02
39%
Allsome
Motherwell
R58.5k 19%
R73.6k
R1.26
2.8%
Huggies
Tzaneen
R59.2k 32%
R935k
R15.80 36%
R1099
22
THANK YOU
23