Published on January 21, 2008
THE KETCHUP CASE: THE KETCHUP CASE Does Newspaper Advertising Works? The largest advertisers: The largest advertisers TV Dansk Tipstjeneste Procter & Gamble Arla Foods L'oreal Coca Cola Carlsberg Newspapers Hewlett-packard SAS Bilka Philipson Wine Magasin Klasselotteriet An Italian ketchup: An Italian ketchup And a Challenge: And a Challenge The largest advertisers and agencies have (had?) lost faith in newspaper advertising Does newspaper advertising really work…and how? Lack of documentation of effects Difficult to establish case studies with advertisers and their media agencies The Story Framework: The Story Framework Create our own case study A campaign, where the advertising effect could be isolated Set the agenda: No warfare against TV! Introduce a completely unknown brand Establish a cooperation with an advertiser Find a professional advertising agency Document the effect – also on sales! The Case: The Case A clinical laboratory test! No other marketing activities at all! A large newspaper campaign in all daily titles of JP/Politikens Hus A/S and our advertising partners Extensive research The product: Ketchup!! Why Ketchup?: Why Ketchup? An Average Mutti: An Average Mutti Been on the market for 8 years Distributed in supermarkets and specialty shops Priced as Heinz and other major competitors Nor a premium or a discount product Just an average ketchup Mutti – Dal 1899 Solo Pomodore, but: Mutti – Dal 1899 Solo Pomodore, but Awareness 0.8% Advertising spending 0 Price promotions 0 In store activities 0 With a Taste of More: With a Taste of More With a Taste of More: With a Taste of More With a Taste of More: With a Taste of More With a Taste of More: With a Taste of More With a Taste of More: With a Taste of More The Media Plan: The Media Plan The Media Plan: The Media Plan 13 participating papers 10 insertions in each paper, full page 4-colour 3 week campaign period (sep – oct 2003) 4 insertions first week 3 insertions second and third week First insertion 2 full pages Target group of campaign: 25 – 55 years, who buys groceries The Media Plan: The Media Plan Reach per insertion 45% In the target group 44% Reach of the campaign 77% In the target group 79% The campaign delivered 590 TRP In the target group 580 TRP Gross price of 4.9 mill. DKK (660 000 EURO) Slide19: Even though the ”pros” had warned that there would be reactions already after the first ad, I was surprised to get them already from the start of the day. Do people in advertising sit up all night to be on the forefront of events? From the diary of Karen Søgaard, importer of Mutti …soon after SuperGros were on the field. Of course I wasn’t particular popular with this customer either. She had almost gone crazy seeing such a big ad without she knew anything about the campaign. So now she was thinking about a job as a guard in an auto museum. She wanted a quotation right away. From the diary of Karen Søgaard, importer of Mutti And the Figures Showed …: And the Figures Showed … Those who had seen the Campaign: Those who had seen the Campaign 87% believe they have seen the ad in a newspaper - 10% on tv. 35% believe the ad tells it is quality ketchup. 58% would stop and look at the ads, if they see them again 53% would like to try the product Panic at the retailers…: Panic at the retailers… An unexpected BtB-effect: All the leading retailers contacted the importer in the first week The purchasing managers at the retailers also reads newspapers…! More distribution channels – and more to come! The shelf space was more than doubled And the figures showed …: And the figures showed … 4 4 2% Sales increase We Did a Follow-up: We Did a Follow-up One week advertising (week 10) 4 insertions, same ads, same newspapers 59 GRP per insertion and 240 GRP total 235 TRP in the target group Price promotion in week 10 & 11 in Irma, a supermarket chain in Copenhagen In week 11 advertised in flyer Awareness: Awareness And Sales: And Sales 285% sales increase in the period Irma in a league of its own 147% sales increase in january/february 782% sales increase during price promotion 190% sales increase after campaign Best selling ketchup brand Mustard goes with Ketchup: Mustard goes with Ketchup Was Mutti just a lucky punch or … A number of smaller case studies in Denmark Procter & Gamble (Pampers) Job & Liv (trade union) 112nu (security) Rahbek Fisk (ready to eat meals) IBM Tænk + test (consumer magasine) A large scale ”copy” in Norway with mustard The Smaller Danish Cases: The Smaller Danish Cases Wide variance in campaign sizes Some newspaper only – some multimedia All cases – except one – shows very positive results Higher awareness Higher sales Results above advertiser expectation The Mustard Case: The Mustard Case Inspired by the ketchup case, the Norwegian Media Business Association made the mustard case Same basic idea – take a relatively unknown product and advertise it exclusively in newspapers The Mustard Case: The Mustard Case Our choice was Edmond Fallot Dijon Mustard A somewhat narrower product category And an even narrower sub category Dijon mustard represents only 15% of the mustard market in Norway! And a product carrying a somewhat hard to remember name … Mustard Market Shares: Mustard Market Shares The Mustard Ads: The Mustard Ads The Mustard Ads: The Mustard Ads The Mustard Ads: The Mustard Ads Ad Recall (brand aided): Ad Recall (brand aided) Campaign Period Campaign start (Friday 13 Nov–week 46) Post campaign Campaign ended (Friday 3 Des–week 49) Brand Awareness: Brand Awareness Post campaign (Friday 3 Des–week 49) Campaign Period (Friday 13 Nov – week 46) Market Shares in Distributed Stores: Market Shares in Distributed Stores And the Sales …: And the Sales … 2 0 6% Sales increase THE KETCHUP CASE: THE KETCHUP CASE Newspaper Advertising Works!