The Irrationality of Measuring Brand PerformanceTMRE 2016 Presentation

Gabriel Aleixo & Alex HauboldBrainJuicer LatAm | Miami

Make sure this white line is copied from the master ONTO your slide ↓

How Coca-Cola deployed a highly predictive Brand Tracking model in Brazil to engage consumers in real time during Rio 2016 Olympic Games

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Improving the returns of Integrated Marketing Campaigns…

How to make marketing campaigns more effective, generating actual

impact on brand equity and business performance

?

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The answer is not bigger and more data(Your data is probably already big enough).

Nor is a more sophisticated model, algorithm, or modelling system.

It Does Not Involve More Data

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?

To understand the way consumer behavior and choices work in real life, not how we would like them to be or how the textbooks theorize.

The key is to look at consumers… FOR WHO THEY REALLY ARE

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We will show you how a new model of consumer behavior helped Coca-Cola produce some of the most successful campaigns during Rio 2016in Brazil

That’s exactly what Coca-Cola did…

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Need for a solution to track campaigns’ effectivenessin real time.

20132014 2016

Coca-Cola Brazil pilots a new brand tracking approach

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focus on System 2(slow, analytical part of

the brain)

Ad recallPurchase funnelBrand attributesAttitude statements(extensive)

EmotionsRecognition of

campaigns(focused)

TRADITIONALAPPROACHES

THE NEWAPPROACH

focus on System 1(fast, intuitive thinking

part of the brain)

VS.

Better aligned with Coca-Cola objectives

New approach to Brand Tracking

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The behavioral and marketing sciences tell us this is all we need to know

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FAMEIf a brand comes readily to mind, it must be a good

choice

FEELINGFLUENCYFEELING

If I feel good about a brand, it must be a good

choice

FLUENCY

If I recognise a brand quickly, it must be a good

choice

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With these three metrics we explain 85% of market share

Average correlation across the full set of 14 categories globally (over 150 brands)

10 20 30 40 50 60 70 80 90 1000

10

20

30

40

50

60

70

80

90

100

Correlation = +0.85

In-market performance

Fam

e, F

eein

g &

Flu

ency

Sta

r Per

centi

le

5

4

3

2

1

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Fame

FluencyFeeling

Fame

FluencyFeeling

Fame, Feeling & Fluency | The Difference Between Small and Big Brands

Fame, Feeling & Fluency Percentiles

FameFeelingFluency

Small Brands Medium Brands Big BrandsFame

FluencyFeeling

Small : Market Share up to 7% Medium: Market Share >7% < 15% Big: Market Share >15%

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Fame

FluencyFeeling

Fame, Feeling &Fluency | How Brands Grow and How Brands Decline

Fame, Feeling &Fluency Percentiles

FameFeelingFluency

Growing Stable Declining

Fame

FluencyFeeling

Fame

FluencyFeeling

Growing : >+2% Stable: +2% to -2% Declining: <-2%

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Fame

FluencyFeeling

Fame

FluencyFeeling

Fame, Feeling &Fluency | Commanding a Premium

Fame, Feeling &Fluency Percentiles

FameFeelingFluency

$ $$ $$$Fame

FluencyFeeling

£: Bottom 3rd on price within category brands tested ££: Middle third £££: top third %

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The battleground for even further brand growth and long-term success is Brand Feelings

It is distinct from other brands and has strong distinctive assets

Coca-Cola is a Super Brand5

Very good especially cold and together with a meal

Coca-Cola has a delicious taste, the more you

drink, the more you want!

The bubbles,

so delicious!

I like it so much, ice

cold. Coca-Cola is

Coca-Cola

How strong is the Coca-Cola brand in Brazil?

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Coca-Cola Brand Feelings are crucial for Market Share.

Correlation of Market Share and Brand Feelings when controlling for price and distribution

variablesImportance of Emotional Engagement for sales volumes

Shar

e of

Mar

ket a

djus

ted

for P

rice

and

Exec

ution

Emotional Engagement (standardized)

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Marketing Campaigns have a direct impact on Brand Feelings.

Coca-Cola Brand Feeling6 period Moving Average

Impact of Coca-Cola CampaignsEmotional Impact x Reach

Emotional Impact of Campaign X Reach determines long term effects

YEAR 1 YEAR 2 YEAR 3

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0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105 1100

10

20

30

40

50

60

70

80

90

100

% o

f Bra

zil I

ndiv

idua

ls re

ache

d

Average hours per month

TOTAL TV

INTERNET

Pesquisa Brasileira de Mídia, 2015

RADIO

Reach | Despite the relevance of digital (social media) and the time spent on this media, TV is still very much relevant.

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Aim for 5-Stars,don’t stop at 3! Think human truths and tie it to your brand for years to come.

Emotional Impact | The challenge is to always find powerful ideas that are able to strengthen the brand’s connection with consumers.

TVPRINTRADIO

COCA-COLATAKES OVER

RIO 2016

5-Star TV AdsReaching 3 out of 4 people in Brazil

https://www.youtube.com/watch?v=SW7Cuopu8No

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Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-162015

Coca

-Col

a Br

and

Feel

ings

(Ind

ex)

TOTAL

TEENS

Brand feelings increased dramatically during Olympics campaign, exceeding all benchmarks

©BrainJuicer® 222015 Games Period Brazil Games Period Rio

90

95

100

105

110

115

120

125Co

ca-C

ola

Bran

d Fe

elin

gs (I

ndex

)

Enough to potentially increase SOM by

1.5%

TOTAL

TEENS

Brand feelings went through the roof in the city of Rio de Janeiro

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Wave 1 Wave 2 Wave 3 Wave 4 Wave 5 Wave 6 Wave 7 Wave 8 Wave 9 Wave 10 Wave 11 Wave 12 Wave 13 Wave 14 Wave 150

20

40

60

80

Brand Number 2

Brand Number 3

Brand Number 4

Brand Number 5

% p

eopl

e m

entio

ning

bra

nd (u

naid

ed)

Coca-Cola more associated to the Olympic games than any other brand

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Three Takeaways

Decision making is fast & frugal. Three basic heuristics (Fame, Feeling, & Fluency)

explain all you need to know about your brand

Brand Tracker insights must lead to action. Timing and Focus are essential to maximize

impact of campaigns

Make Brand Trackers accountable. Equity measures are not enough,

must look for business results

The Irrationality of Measuring Brand Performancerequests@brainjuicer.com

The original presentation was given by Gabriel Aleixo in partnership with Coca-Cola at TMRE (The Market Research Event) in Boca Raton, Florida in October 2016.