The Key Equity Components That Drive Consumption Frequency

The Way of Shopper Marketing Classified - Internal use 1

The Key Equity Components That Drive Consumption Frequency

[email protected]

Rita Houston Director, Marketing Capability Development,

Marketing Capabilities

Classified - Internal use

From Brand Love to Brand Value


I’VE HEARD OF BRAND LOVE…but what is it?…why should I care?…and how do we create it?

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|Classified - Internal use

What is Brand Love?

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LOYALTY BEYOND

REASON


Source: B³ 2012 13-64 yr olds, Relationship Pyramid

Brand Love is Good Business…love you = drink you

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Avg Drinks Per Person Per Week –

All Main BrandsAverage Drinks Per Person Per

Week

Know not Accept

Accept not Like

Like not Love

Love not Exclusive

Love

Exclusive Love

0.1

1.0 1.3

3.0

7.5

Know not Accept

Accept not Like

Like not Love

Love not Exclusive

Love

Exclusive Love

6.5

11.1

9.8

4.4

5.4

Coca-ColaDiet CokeCoke ZeroFantaSprite

|Classified - Internal use 6

201212-49yr olds

Coc

a-C

ola

Bra

nd P

refe

renc

e (A

ll B

ever

age

Cat

egor

ies)

Latin AmericaTop 5 Markets

Source: B³ USA, 12-49 yr olds, 2010, & CSD Reg Unhealthy Perception.Percaps represents Avg. Drinks per person per year from B³.

Coca-Cola Drinks / Year

NO

YES

Claimed Regular SSDsare “Unhealthy

NO

YES 261 265

55 60C

oca-

Col

aB

rand

Pre

fere

nce

(All

Bev

erag

e C

ateg

orie

s)

NO

YES NO

YES 336 301

128 158

Coca-Cola Drinks / Year

Claimed Regular SSDsare “Unhealthy

…Regardless of what consumers rationally “think” about us


Creating Brand Love is A Combination of Science and Art…

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…Which We Have Codified Into A Cohesive Doctrine For Marketing

SCIE

NC

E

AR

T

8


The DNA Model Incorporates the Major Stages of a Business Planning Process…

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ASSESS OPPORTUNITIES

DEVELOP STRATEGIES

DEVELOPPLANS

EXECUTE


…embedding Key Commercial Components At All Stages

ASSESS OPPORTUNITIES

DEVELOP STRATEGIES

DEVELOPPLANS

EXECUTE

Shopper

Occasion, Brand, Channel

PITA

Package

Retail Activation


Fusion Point 1

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MARKET INSIGHTS HUMAN & CULTURAL INSIGHTS


Fusion Point 2

12

PROFIT MAPS BRAND/CATEGORY MAPS


NEED STATES

ROUTINE REFRESHMENT

HUNGER AND DIGESTION

SENSORY PLEASURE AND FOOD ENHANCEMENT

HAVING A GOOD TIME

COMFORT AND RELAXATION

SELF CONFIDENCE AND INDIVIDUALITY

ENERGY/STIMULATION

ACTIVE REPLENISHMENT

MENTAL RENEWAL

HEALTH, BEAUTY, AND NUTRITION

ROUTINE REFRESHMENT

RELIEVE HUNGER

AID DIGESTION

SENSORY PLEASURE

COMPLEMENT FOOD

ENJOY THE MOMENT

CONNECTING WITH OTHERS

COMFORT

RELAXED AND AT EASE

COPING WITH STRESS

SELF CONFIDENCE AND INDIVUALITY

VIBRANT AND ALIVE

ENERGY KICK

SUSTAINING ENERGY


MENTAL RENEWAL

PURPOSEFUL NUTRITION

BODY PURIFICATION

WEIGHT MANAGEMENT

CONSUMER SEGMENTS

TEENS

YOUNG ADULTS

ADULTS

MATURE ADULTS

Brand/Category Maps Allow Us To Develop Footprints Against Consumer Segments

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TCCC BRANDBRAND J

BRAND K

TCCC BRAND

BRAND E

BRAND I

BRAND A BRAND B

BRAND D

NEW TCCC


Overlaying Profit Maps Enables Us To Prioritize Those Opportunities

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NEED STATES

ROUTINE REFRESHMENT

HUNGER AND DIGESTION

SENSORY PLEASURE AND FOOD ENHANCEMENT

HAVING A GOOD TIME

COMFORT AND RELAXATION

SELF CONFIDENCE AND INDIVIDUALITY

ENERGY/STIMULATION


MENTAL RENEWAL

HEALTH, BEAUTY, AND NUTRITION

ROUTINE REFRESHMENT

RELIEVE HUNGER

AID DIGESTION

SENSORY PLEASURE

COMPLEMENT FOOD

ENJOY THE MOMENT

CONNECTING WITH OTHERS

COMFORT

RELAXED AND AT EASE

COPING WITH STRESS

SELF CONFIDENCE AND INDIVUALITY

VIBRANT AND ALIVE

ENERGY KICK

SUSTAINING ENERGY


MENTAL RENEWAL

PURPOSEFUL NUTRITION

BODY PURIFICATION

WEIGHT MANAGEMENT

CONSUMER SEGMENTS

TEENS 17 81 2 44 21 86 97 38 18 11 52 32 60 23 82 15 26 71 39

YOUNG ADULTS

5 13 63 27 40 58 36 45 9 77 30 12 96 18 3 29 51 20 19

ADULTS 37 22 2 47 34 61 37 90 23 56 29 13 35 27 79 14 10 26 70

MATURE ADULTS

30 18 24 67 55 95 33 76 6 69 41 19 99 46 93 31 83 65 4

TCCC BRANDBRAND J

BRAND K

TCCC

BRAND E

BRAND I

BRAND A BRAND B

BRAND D

NEW TCCC


BRAND GROWTH STRATEGY

Fusion Point 3

BRAND VISION AND ARCHITECTURE

USA version being updated


PITA Is a Key Component of the Brand Growth Strategy

Brand Ambition

Consumer Target

Shopper Target:

Mom and Established Adults:Move from “Coke is around”

(ubiquity) to Coca-Cola is unique and special to me (and everybody)Teens: Engage with teens in a relevant and impactful way to

become the #1 teen brand

Transcend diet category by becoming the drink for moments, activities and

events where guys will be guys

Reframe Diet Coke from a 1980’s weight

management tool to a smart boost for self-defined achievers

Growth Drivers:

Sources of Growth:Primary source Mom and EA: Drive frequency

among category and brand users

Teens: Drive Incidence among category users

Majority of recruitment expected outside diet category

Majority of recruitment expected within diet category

Competitive source of volume Mom and EA: Regular SSD

Teens: Regular SSDRegular Sparkling and Still brands no direct competitor from a sourcing perspective

Diet Pepsi expected to account for significant volume

sourcing + Diet SSDs

Key sourcing Occasion(s)Mom and EA: Meals and

snacksTeens: On the Go, Home C.Out

Away from Home: Night out with the guys e.g. after work

with foodAt Home Consumption: Guy “chill-out time” – e.g. gaming,

watching sports

Away from Home (Break at work/college, On-The-Go,

With Food)At Home Consumption: “On” moments, (i.e entertainment)

Main Competitive drains Mom: Water, DrPEst. Adults: Water, JuiceTeens: Water, SSD

SSD diets, Water, Sports Drinks Energy Water, diet SSD

Brand Vision statementThe universal icon of

happiness

The ability to have it all (Possibilities)

The Badge of Achievement for “A” Gamers

20yo (male) skew male

Teens: 13-18YA: 19-24Boomers: 45-64Moms 24-49 w/kids <19

25yo (female/Male)skew female

teens Mom & EA


We Employ a Detailed Version of PITA to Derive Our Objectives…

Life-stage

A

IT

PGrowth Lever

Cohort Effect

Recruit into the Category through Coke

Recruit from other brands into Coke

Maintain current Coke consumer base

Increase frequency of current Coke drinkers

Opportunity Size 2013-2020 (Mucs)

Retain current Coke drinker frequency

25 14 35 11 37

10 10 6 5 10

18 24 10 10 12

27 32 2 35 22

15 17 15 18 13

15 21 16 15 18

- - - - -

12-19 20-29 30-39 40-49 50+

Growth Strategy

Retain & build frequency of consumption across the entire drinkership.

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Recruit next 2 generations by 2020. Refreshing & expanding the user base

1

Source: RFR tool, FY 2010, ‘maintain current base’ + ‘retain current drinker frequency’ are loss avoidance

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Maintain current Coke amount per serving 4 7 6 5 7


BRAND AND PORTFOLIO PLANS

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PRODUCT, PACKAND EQUIPMENTAGENDA

COMMUNICATION AND

CONNECTION AGENDA

Classified - Internal use 19

Once we build our plans, how do we bring them to life?

Business Objective

Strategic Imperatives

Business Strategies

Communications Objectives

Communications Strategy (Pathways) Success Metrics

To increase transactions among Moms 25-49with kids under 18 vs YAGO

Get more Moms to serve Coke more often to her family

1) Reposition Coke from being a drink that Mom restricts to a drink that marks any day celebrations for her family

2)OWN MOMENTS OF JOY (seasons and occasions) where Coke is welcomed

-Summer-Everyday/ Spontaneous (can include Meals)-Holidays-Big Events

3) Drive frequency at retail through focused brand partnerships and package offerings where together with Coke, Mom can create an any day celebration

Shift moms’ perception of Coke from a drink for special occasions, to a brand that marks moments of joy any day.

REFRAME Coke's role in mom's world as an any day treat. -Through iconic media TVC, OOH; as well as more intimate/conversational media DWOM/mommy blogger events

RITUALIZE Coke within the occasions mom already creates for her family.-Exclusive customer extensions, digital promotions

REMIND Mom to keep Coke on hand by INTERRUPTING her shopping trip with surprising bundle offers that put Coke back on her shopping list-Think beyond the soda aisle by creating partnerships with the products Mom already seeks -Create digital activations that interrupt Mom’s daily routine and inspire her to create any day celebrations

B3: Is a brand I love, favorite brand, Is OK for my family (2011: Fav Brand 16.2%: +0.7ppt; Brand I love: 30.8%: +0.7ppt; Is OK for my Family: 45.9%: -2.6ppt)

B3: Goes well with food, Fun times with family and friends,Is unhealthy (2011: GWWF: 55%; flat; Fun times w/ friends: 68.2%: +0.7ppt; Is unhealthy: 46.4%: -1.6ppt)

Millward Brown IMC Research (Benchmark: ONS above 110) / IMI Promo Research (Benchmark: Green zone)

Volume: 2012 plan goal: -2.3% vs. LY

Transactions: Exceed 2011 Transactions (2011 Benchmark: 5.1)

HH Penetration;Exceed 2011 HH penetration with HH’s w/ kids <18: 18.2%

To increase household penetration (purchase) among Moms 25-49with kids under 18 vs YAGO

P I T A

IMC Supports Brand Business Objectives

O B P P C

Coca-Cola: Moms IMC Framework

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…Based on An In-Depth Understanding of the Consumer And Shopper Target Audiences

• Precision target lapsed CSD buyers

• Ongoing message rotation/testing

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Classified - Internal use 22

We know what content will drive the business forward


Half of Consumption Frequency is Driven by Brand Affinity…

1. Every factor in this model has an impact on Consumption Frequency. Most have indirect impact (e.g. Company Image), and two have direct impact - Brand Affinity and New Packaging.

2. Numbers indicate the magnitude of impact from one factor to another.

3. Numbers range from 0 to 1, where 0 means no impact and 1 means complete impact.

4. Numbers can be compared. The larger the number, the greater the impact. For example, the impact of Brand Affinity on Consumption Frequency (0.48) is more than double the impact of New Packaging on Consumption Frequency (0.22).

THE BRAND EQUITY MODEL – COKE – MAGNITUDE OF IMPACT

Consumption Frequency

.48BrandAffinity

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…But Brand Affinity is Made up of Several Sub-Components…

PATH TO INFLUENCE CONSUMPTION FREQUENCY

1. Every factor in this model has an impact on Consumption Frequency. Most have indirect impact (e.g. Company Image), and two have direct impact - Brand Affinity and New Packaging.

2. Numbers indicate the magnitude of impact from one factor to another.

3. Numbers range from 0 to 1, where 0 means no impact and 1 means complete impact.

4. Numbers can be compared. The larger the number, the greater the impact. For example, the impact of Brand Affinity on Consumption Frequency (0.48) is more than double the impact of New Packaging on Consumption Frequency (0.22).

THE BRAND EQUITY MODEL – COKE – MAGNITUDE OF IMPACT


.48Brand Emotional

Image

Brand Connection with People

BrandAffinity

Brand Functional

Image

Company Image

Awareness of Communication

.65.22

.53.27.15

.46.35

.96

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• Coke is a refreshing drink

• Coke is great tasting

• Coke has a premium quality

• Coke really cares about customers and communities where they live

• Coke actively participates in recycling and environmental efforts

• Coke supports healthy, active lifestyles

• Aware of TV ads for Coke• Aware of Coke brand vending machines• Aware of Coke sponsoring sports,

community, culture, and charity events

…And We Know What Messages Will Drive Those Sub-Components Most Effectively

PATH TO INFLUENCE CONSUMPTION FREQUENCY

The three attributes under each factor are the most important ones in that area to help impact consumption frequency.


Brand Emotional

Image

Brand Connection with People

BrandAffinity

Brand Functional

Image

Company Image

Awareness of Communication

• Coke gives me enjoyment anytime

• Coke is an uplifting drink• Coke is cool

• Coke is for someone like me• Coke is a brand you love• Coke makes the moment

more fun

• Coke is worth what you pay for• Most likely to choose Coke• Coke is favorite CSD brand

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Before After

We Are Very Careful to Ensure that Our Communications Drive Brand Love


1.34

3.32

2.45

0.21

1.28

0.52

1.84

Break-even line1.66

* ROI = (Incremental EQ Volume * System Gross Profit) / Spend

System ROI * by Media Vehicle

PROPERTY TV FLEX TV DIGITAL CINEMA RADIO PRINT OOH/CDN OVERALL


Fusion Point 4

CHANNEL/CUSTOMEREXPERIENCES

BRAND EXPERIENCES


I’VE HEARD OF BRAND LOVE

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…but what is it? loyalty beyond reason

…why should I care?it drives volume

…and how do we create it?leverage the proven science and art of DNA

The Way of Shopper Marketing Classified - Internal use

THANK YOUFor additional information please visit the Shopper/Customer Marketing

Community at www.KOSCMarketing.com

The Key Equity Components That Drive Consumption Frequency

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