Promotion strategy for Timotei (Quarterfinal of Case Competition "Changellenge Russia 2012")

CaseBusters

Timotei promotion strategy

Yuriy Kotikov

Ilya Kuznetsov

Maksim Sofronov

Maxim Fedotov

Consumption per customer

Our primary objective is to increase Timotei market share by 1% through promotion activities by June 2014

Revenue

Items sold

Average price per item

Number of customers

Market Overview and Project Goals

Marketing

Campaign

Product line

External factors

Problem Structure

5%

77%

8%

4,5%

7%

To achieve this goal Timotei is to capture 4,5% of the Russian shampoo market by June 2014

Shamtu

Others

Shauma

Timotei

Pure line

• The market is highly saturated which means market share gain can be achieved only by stealing share from competitors

• Timotei is in the middle price segment. Its main competitors are Pure line, Shamtu and Shauma, with Pure line being a part of Unilever’s portfolio

• Timotei has reached maturity and needs promotion campaign to retain customers migrating to other segments

1 249

1 078

916

2012

+36%

2013 2014

This implies a 36% increase in revenues, million rub.

Major Events Continuous

Advertising Activities

• media co-branding

• accompanying events

• accompanying

advertising activities

advertisements through:

•TV

•Internet

•Print Media

•Metro, etc.

Marketing is one of the factors driving revenues through changing the number of customers and consumption per customer

Sources: Case «Changellenge: Russia 2012», analysis by CaseBusters

Timotei promotion strategy Changellenge Russia 2012 CaseBusters

In developing the promotion strategy we have analyzed the co-branding opportunities on the Russian Market with regard to film releases

Sources: Case «Changellenge: Russia 2012», analysis by CaseBusters * see appendices 2,3 for analysis

Co-branding Rationale

0,80 0,85 0,90 0,95 1,00

Strategic fit*

0,9

0,8

0,7

0,6

0,5

0,4

0,3

0,2

1,0

Movies Index*

10

Ice age 4

8

7

6 Madagasсar 3

4

Monsters University

Brave

1

Strategic fit of Timotei with the film release is essential for ensuring successful promotion campaign

A Movies Index reflects the potential of a film to cover the target audience and shows the most attractive films in terms of co-branding opportunities

Brave is a family cartoon featuring a girl with bright red hair, which is the best fit for Timotei. Besides, we have already successfully cooperated with Disney

Ice Age 4 featuring beloved characters, viz. Scrat, will attract broad audience and boost sales.

Monsters University

story may be used to promote Timotei through charismatic characters

Madagascar 3 will ensure the commercial success as the characters are well-known to the audience and will boost brand loyalty

Disney

Paramount Pictures

20th Century

Universal Pictures

Warner

Sony

1. Planes

4. Snow White

6. Rise of the Guardian

7. How to train your Dragon 2

8. Hobbit

10. Hotel Transylvania

Legend

0,150,15

0,150,10

0,150,20

0,10

1,00

Franchise Stars involved

Target Audience

Film Expectancy

rate

Genre Budget Release Date

Index

Targeted films


Analysis reveals that Timotei’s primary promotion channels shall be TV, Print media, Internet and Subway

Promotion Channels

Timotei’s target audience: moderate income families and bachelors (mainly women)

Shampoo consumers can be divided on the basis of several criteria: price sensitivity, importance of brand and quality

0,0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

0,8

0,9

1,0

0,0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1,0 1,1

Price sensitivity

Elderly people

Moderate income families

Wealthy families

Moderate income bachelors

Wealthy bachelors

Importance of brand and quality

Internet

73

Print Media

70

Radio

50

TV

65

Cinema

Audience coverage

Utility

Popularity growth

Perception

Affinity 53

Subway

75

OOH**

58

Promotion channel efficiency index*

Channel efficiency is a function of such factors as affinity, audience perception, information utility, channel popularity and audience coverage

Subway

Internet

Print Media

TV Enormous TV audience outweighs moderate watchers’ perception and affinity

Print media is an equally attractive promotion channel in all respects considered

Subway provides extreme concentration of target audience and its decent perception

Internet’s penetration has been constantly growing lately with reasonable affinity and perception

Sources: Case «Changellenge: Russia 2012», analysis by CaseBusters * - see Appendix 4, ** - worth considering


Two co-branding campaigns with films «Brave» and «Monsters’ University» by Disney will lead to Timotei’s significant increase in market share

Co-branding Campaigns

Buy stickered Timotei

Get a prize for 2 stickers

Register sticker on the web site

Get a better prize and a chance to win iphone for 5

Final family event

Take part in the video contest

• 1,6mln SKU will participate in promotional campaign with uplift accounting for 680k SKU.

• Main contest will involve sending a clip about a brave thing you have done with a trip to Scotland as the

ultimate prize

• More than 40000 low-priced and 15000 middle-priced prizes at participant’s option as well as 165 iPhones and

a trip to Edinburgh will be awarded

• Final family event will include funny competitions, family activities and iphone winners announcement

Promotion channel efficiency index*

Joint advertising campaign with Disney’s film «Monsters’ University» will result in 150m. rub. sales growth

Co-branding with Disney’s film «Brave» in Summer 2012 will increase Timotei sales by additional 115m. Rub.

1 Jun 2012 20 Aug 2012

Buy stickered Timotei

Get a prize for 2 stickers

Register sticker on the web site

Get a chance to gain a better prize for 4

Brochure with best photos

Take part in the photo contest

• 2,15mln SKU will participate in promotional campaign with uplift accounting for 780k SKU.

• Main contest will involve sending photos with people dressed like monsters with a family car as the main prize.

• More than 53000 low-priced and 26000 higher-priced prizes as well as a family car will be awarded

• When the campaign is over the photo gallery will be created in Flickr to capture memorable moments

1 Jun 2013 1 Aug 2013

H

TV

Internet

Print Media

Subway

• Total number of broadcasts will

be around 850 distributed

among Ch1, Russia 1, NTV,

TNT

• Extensive banner and

contextual advertising through

social networks and most visited

sites like Yandex.ru and mail.ru

• Double-page spreads in

Cosmopolitan and Liza

magazines as well as ads in

other printed media sources

targeted at our prospective

buyers

• Placing banners with film

characters at advertising boards

above escalators and inside

metro cars will allow Timotei to

reach its target audience



Continuous advertising activities require 40 million rubles a year that will be distributed among the four major advertising channels

TV Channel (2012-2013)

№ of ads Cost, rubles

1TV 146 9 396 000

Russia1 94 3 523 500

NTV 99 3 523 500

TNT 248 5 872 500

Domashniy 109 1 174 500

Total 696 23 490 000

2014

91%

9%

2010

94%

6%

Others

Timotei

TV shampoo ad market share is to be increased to 9% and 23.5 m and 21.6 m respectively is allocated for these purposes

Timotei TV shampoo ad share

Internet is growing in popularity and 4.8 m is allocated yearly to advertising through this channel

Mail.ru

Odnoklassniki

Vkontakte

Internet advertising

60%

27%

13% * Vkontakte – 10 m targeted appearances throughout 6 months Sept-Jan each year * Odnoklassniki – 24 packages of 1.2 m weekly appearances (6 months total) * Mail.ru – package Russia 45 m 4 times (before bank holidays)

Print Media will remind the customers about our brand, with 7,8 m and 7,2 m distributed each of the two years.

Subway is an effective means of targeting current/would-be customers and 3.9 m and 3.6 m will be allotted to this means of advertising

• Lisa attracts our customers. Advertising in this magazine is highly targeted • Buying 1/3 column for 26 issues (6 months, autumn-winter) will smoothen the drop in demand for Timotei after the Major Event set for Summer

2012-2013 2013-2014

1/3 column

270000 270000

Weeks 26 26

Cost 7.02 m 7.02 m

Budget 7.83 m 7.2 m

Koltsevaya Line 2012-2013 2013-2014

Number of cars to use 35 32

Places in car 106 106 Number of places 3710 3392

Cost per place (BEND) 955 955

Total cost for ads 3543050 3239360

Number of ads sets 37,1 33,92

Cost of set 8580 8580

Total costs for sets 318318 291033,6

Reminder 53632 69606,4

Sources: Case «Changellenge: Russia 2012», analysis by CaseBusters * see appendix 5 for analysis


Spending 200m. rub. on co-branding and continuous promotion will allow Timotei to boost its sales to 1250m. rub. and to capture a 4,5% market share by June 2014

Promotion Cost

Economic Effect

124 850 000

Promotion cost

200 000 000

3 750 000 7 500 000

7 500 000

15 000 000

41 300 000 75 050 000 3 750 000

9 200 000 9 200 000

18 300 000

50 500 000

33 000 000

Prizes

Continuous promotion

TV Print Media Internet Subway Others

1 200

0

900

2014 2013 2012 2011

Continuous promotion

Base-line

Co-branding • By June 2014 co-branding and continuous

promotion will contribute 250m. rub. and 100m. rub. respectively to the Timotei revenue

• Proposed promotion campaign will ensure

meeting project goals by June 2014

1250

Promotion campaign contribution to sales, m. rub.

Timotei promotion costs structure, rub.

Co-branding



CaseBusters

Yuriy Kotikov Ilya Kuznetsov Maksim Sofronov Maxim Fedotov

• Last year students of Economic faculty of MGIMO

Changellenge Moscow 2011 winner

Changellenge Moscow 2011 winner

McKinsey Business Diving 2012 semifinalist

McKinsey Business Diving 2012 semifinalist

Appendix 1 Projected growth of the market and Timotei vs. Competitors (incl. Marketing Strategy)

Source: Case «Changellenge: Russia 2012», analysis by CaseBusters


Brands Value (RUR)/Year(2011) Projected Value

(RUR)/Year(June 2012) Projected Value


(RUR)/Year(June 2014)

Timotei 889140000 915814200 1078044144 1249183652

Чистая линия 2032320000 2093289600 2111169782 2128238814

Shauma 1778280000 1831628400 1841658746 1850642447

Shamptu 1270200000 1308306000 1302636674 1295449713

Total competitors 5969940000 6149038200 6333509346 6523514626

Value (RUR)/Year(2011) Projected Value



(RUR)/Year(June 2014)

Russian Market 25404000000 26166120000 26951103600 27759636708

Assumptions:

Market growth rate 3% per annum

Inflation of prices 0%

Appendix 2 Movies Index and Strategic fit analysis

Factor Description Weight

Release date reflects whether a film is running in the seasonal peak (holidays, summer etc.) 10%

Budget matters as an indicator of how much is spent on marketing 20%

Genre shows whether a film fits the co-branding purposes 15%

Film Expectancy Rate is the percentage of people waiting for the film release 10%

Target audience determines what kind of audience the film will capture 15%

Stars involved attract additional attention 15%

Franchise depending on its previous success may influence the further popularity 15%

Total 100%

Factors considered Description

Character Image Will the characters of a film be suitable for advertising Timotei?

Plot peculiarities What a film is about. Is the plot fit for the advertising purposes?

Style Will a film encourage positive attitude towards the ad of Timotei?

Synergies with studios

Have we been developing mutual relations with the studio that released a film?



Studio Film Name Release Date Release Budget Genre Expectancy Rate Target Audience Stars Involved Franchise Rating

Disney Wreck-it-Ralph November 1st, 2012 0,1 0,15 0,15 0,097 0,15 0,05 0,1 0,797

Disney Beauty and the beast Spring, 2012 0 0,05 0,15 0,092 0,15 0,05 0,15 0,642

Disney Planes August 31st, 2012 0,1 0,2 0,15 0,088 0,15 0,05 0,1 0,838

Disney Brave June 21st, 2012 0,1 0,2 0,15 0,085 0,15 0,15 0,1 0,935

Disney Monsters University June 21st, 2013 0,1 0,2 0,15 0,089 0,15 0,15 0,15 0,989

Disney Frankenweenie October 4th, 2012 0,05 0,15 0,15 0,085 0,1 0,15 0,1 0,785

Universal Pics Snow white June 14th, 2012 0,1 0,2 0,1 0,083 0,1 0,15 0,15 0,883

Universal Pics Battleship April 19th, 2012 0 0,15 0,05 0,044 0,1 0,1 0,05 0,494

Paramount Pics Titanic April 1st, 2012 0 0,2 0,05 0,087 0,15 0,15 0,15 0,787

Paramount Pics The Avengers May 3rd, 2012 0 0,2 0,1 0,092 0,1 0,15 0,15 0,792

Paramount Pics Madagascar June 7th, 2012 0,1 0,2 0,15 0,083 0,15 0,15 0,15 0,983

Paramount Pics Fun size October 11th, 2012 0,05 0,15 0,15 0,096 0,1 0,1 0,05 0,696

Paramount Pics Katy Perry Jule 5th, 2012 0,1 0,1 0,05 0,078 0,1 0,1 0,05 0,578

Paramount Pics Rise of the guardian 0,05 0,2 0,15 0,08 0,15 0,15 0,05 0,83

Paramount Pics The Guilt Trip 0,1 0,05 0,1 0,096 0,1 0,05 0,05 0,546

Paramount Pics Hansel and Gretel: 0,05 0,1 0,05 0,086 0,05 0,05 0,05 0,436

Paramount Pics Iron man 3 0,1 0,2 0,05 0,089 0,05 0,15 0,15 0,789

Paramount Pics Transformers 4 June 27, 2014 0,1 0,2 0,05 0,086 0,05 0,15 0,15 0,786

Paramount Pics How to Train Your Dragon 2 June 20th, 2014 0,1 0,2 0,15 0,094 0,15 0,05 0,1 0,844

Warner The Lucky One May 17th, 2012 0 0,05 0,05 0,081 0,1 0,1 0,05 0,431

Warner The Seventh Son February 14,2013 0,1 0,1 0,15 0,085 0,15 0,15 0,05 0,785

Warner The Hobbit: December 20th, 2013 0,1 0,2 0,1 0,093 0,1 0,15 0,15 0,893

20th Century Robopocalypse Jule 3, 2013 0,1 0,2 0,05 0,09 0,05 0,15 0,05 0,69

20th Century Leafmen 3D May 30, 2013 0,1 0,15 0,15 0,09 0,15 0,05 0,05 0,74

20th Century Parental Guidance November 22nd, 2012 0,05 0,1 0,15 0,094 0,1 0,05 0,05 0,594

20th Century Ice Age 4 Jule 12th,2012 0,1 0,2 0,15 0,086 0,15 0,1 0,15 0,936

Sony Hotel Transylvania Ocotber 18th, 2012 0,05 0,15 0,15 0,081 0,15 0,15 0,1 0,831

Sony The Pirates! Band of Misfits April 26th, 2012 0 0,1 0,15 0,092 0,15 0,15 0,1 0,742

Sony Premium Rush October 11th, 2012 0,05 0,1 0,05 0,086 0,05 0,15 0,05 0,536

Appendix 3 Movies Index calculation



Appendix 4 Promotion channel efficiency index

Factor Scale Weight

Affinity 0 – 20% 20%

Perception 0 – 20% 20%

Utility 0 – 20% 20%

Channel’s popularity growth

0 – 20% 20%

Channel’s audience 0 – 20% 20%

Total 100%



Channel Affinity Perception Utility Popularity growth Audience TOTAL

TV 14,5 9,1 15,0 6,5 20,0 65,1

Radio 15,1 15,6 4,0 5,2 10,0 49,9

Print media 16,5 17,8 20,0 2,9 13,3 70,5

Internet 14,6 13,1 12,0 20,0 13,3 73,1

OOH 17,0 18,2 8,5 5,7 8,3 57,8

Subway 20,0 20,0 15,0 11,8 8,3 75,1

Cinema 17,4 13,3 10,0 8,6 3,3 52,6

Appendix 5 TV efficacy analysis and benchmarking of competitors’ TV activities

Brand Total

Communication

TV Magazines Posters In-store Activity

H&S 65% 64% 7% 4% 10%

Pantene 63% 60% 9% 3% 9%

Clear 61% 60% 10% 4% 12%

Dove 60% 58% 11% 4% 12%

Timotei 58% 56% 8% 5% 11%

Sunsilk 56% 54% 8% 4% 11%

Gliss Kur 49% 46% 6% 2% 5%

Fructis 49% 47% 5% 2% 6%

Shauma 44% 42% 4% 1% 5%

Shamtu 39% 37% 3% 0% 4%

Media Correlation

Communication/Media Priority

TV 0,997391366 1

Magazines 0,852823035 4

Posters 0,87643039 2

In-store activity 0,862397187 3

TV is the most efficient tool in terms of communicating brand messages

to customers, billboards coming second together with in-store activities.

H&S and Pantene have been able to increase their market share

through extensive presence on TV. Benchmarking is a useful tool in

determining the TV advertising strategy Timotei should follow.

TV activity GRPs

2009 2010 Change

Dove 1500 2100 40%

Sansilk 3200 2350 -27%

Timotei 2000 3300 65%

Clear 5100 5100 0%

Pantene 5800 6950 20%

H&S 7050 7200 2%

Shamtu 2050 1500 -27%

Clairol 2700 1000 -63%

Fructis 7900 6100 -23%

Elseve 7200 6600 -8%

Garnier 0 3800 -

Nivea 3400 3550 4%

Shauma 3500 4100 17%

Gliss Kur 3500 4100 17%

Syoss 2000 3200 60%

Pure line 2375 5100 115%

Others 0 1700 -

Brand Share of TV shampoo

advertising market

Pantene 12%

H&S 11%

Timotei 6%



Promotion strategy for Timotei (Quarterfinal of Case Competition "Changellenge Russia 2012")

Business

Transcript of Promotion strategy for Timotei (Quarterfinal of Case Competition "Changellenge Russia 2012")