Below the line marketing in russia and germany

Analysis of the differences in Below-the-line-Marketing in Russia and GermanyAs a part of Capstone’s research, presented to the Faculty of European University for the Degree: MBA in International Marketingsupported by COMBERA GROUP

Ekaterina Svirina, October 2013

COMBERA Group European Sales Solutions 2

Table of content

Executive summery Description of the research Results- Surveys participants- Industries’ coverage- Belongingness of activities to BTL-/ATL-/TTL-marketing- Popularity of BTL-activities across all industries- Popularity of usage of digital tools for different BTL-activities- The most popular industries for BTL-marketing- Popularity of Promotion actions in the main FMCG channels of sales- The most common days for Promotion actions- The parties, which execute Merchandising- The parties, which execute Consumer Research- The parties, which execute Trade audit Appendix


Appendix

Popularity of BTL-marketing in tobacco industry

Popularity of BTL-marketing in alcohol (except beer) industry

Popularity of BTL-marketing in beer industry

Popularity of BTL-marketing in food and soft beverages industry

Popularity of BTL-marketing in beauty, healthcare and hygiene products industry

Popularity of Trade-incentive programs in Russia for FMCG-sector in the main channels of sales


Executive summery

The aim of the research: To find out how BTL-marketing is organized in Russia and Germany and whether there is a different practice in these countries

In online survey took part 29 marketing professionals from Russia and 28 experts from Germany

The Hypothesis test reveals, that the practice of BTL-marketing in Russia and in Germany is the same in 69% of cases

For further research more respondents with experience in non-FMCG industries, events, trade-incentive programs should be involved


Methodology

Method: 2 on-line questionnaires (in Russian and in German language) were published on the platform www.surveymonkey.com

Sample frame: marketing experts from agencies (Account Directors, Account Managers, Managing Directors), manufacturers (Brand Managers, Trade-marketing Managers, Product Managers, Key Account Managers and other marketing specialists) and other professionals

Sample size: 29 experts from Russia, 28 experts from Germany

Timing of data collection: 28.05.13 -15.07.13

http://www.surveymonkey.com/


Procedure of checking the Hypotheses

Answers of experts

Majority of experts chose

the same answer

Z-test for two proportions

Hypothesis is supported, there’s no difference

Hypothesis is rejected, there’s

a difference

Majority of experts chose

different answer

Hypothesis is rejected, there’s

a difference

In total 142 Hypotheses


Terms and translation

Point of Sales materials (POSm): Point of Sales Materialien

Merchandising: Merchandising Training: Training Direct Marketing: Direktmarketing Sales force: Sales force Trade-incentive programs:

Motivationsprogramme für den Handel

Promotions: Verbraucherpromotion Customer loyalty club: Loyalty

Programm Competitions and gambling for the

customers: Preisausschreiben und Gewinnspiele

Free in/on/off pack offer: ‘In-/On-pack’ Aktionen und Zugaben

Events: Events Sponsoring: Sponsoring Guerrilla marketing: Guerrilla

marketing Consumer research:

Konsumentenerhebung Trade audit: POS-Erhebung


Survey’s Participants

Germany

Russia

* As ‘Others’ the experts in most cases indicated to be individual marketing consultants


Industries’ coverage

Beer

Beauty, health care and hygiene products

Tobacco

Food and soft beverages

Alcohol (except beer)

Household appliances and consumer electronics

Household chemicals

Financial/banking/insurance

Do-It-Yourself

Telecommunication

Cloth and accessories

0 2 4 6 8 10 12

11

11

10

10

9

7

5

5

5

1

10

10

10

11

11

4

2

3

3

3

Germany Russia

*Number of experts who answered, that they had experience in these industries in the past 2 years


Components of BTL according to the majority of experts from both groups

BTL-MarketingPoint of Sales Materials

(POSm)Consumer Promotion

MerchandisingEvents

TrainingLoyalty programs for

consumersContests and gambling for

consumersTrade-incentive programs

Direct MarketingGuerrilla Marketing

Sales-force Free in/on/off pack offer

ATL-MarketingSponsoring

Z-test rejected the Hypothesis;Russian experts have stronger

opinion about it (89,7% of Russian experts vs 53,6% of

German experts)

Appendix


Components of BTL according to Russian experts

Sponsoring

Guerrilla Marketing

Direct Marketing

Events

Training

Sales-force

Contests and gambling for consumers

Point of Sales Materials (POSm)

Loyalty programs for consumers

Free in/on/off pack offer

Trade-incentive programs

Consumer Promotion

Merchandising

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

24.1%

55.2%

58.6%

69.0%

69.0%

75.9%

79.3%

86.2%

89.7%

89.7%

93.1%

96.6%

100.0%

48.3%

10.3%

17.2%

6.9%

24.1%

24.1%

13.8%

20.7%

13.8%

13.8%

20.7%

10.3%

10.3%

6.9%

6.9%

10.3%

10.3%

17.2%

10.3%

BTL ATL TTL Don't know


Components of BTL according to German experts

Sponsoring

Direct Marketing


Guerrilla Marketing

Events


Training


Sales-force


Consumer Promotion


Merchandising

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

17.9%

42.9%

46.4%

50.0%

53.6%

53.6%

59.3%

67.9%

71.4%

75.0%

75.0%

75.0%

82.1%

50.0%

39.3%

35.7%

7.1%

3.6%

10.7%

11.1%

14.3%

7.1%

14.3%

17.9%

10.7%

10.7%

25.0%

14.3%

17.9%

39.3%

42.9%

35.7%

14.8%

17.9%

14.3%

10.7%

7.1%

10.7%

7.1%

7.1%

3.6%

3.6%

14.8%

7.1%

3.6%



The most popular industries for BTL-marketing

Alcohol (e

xcept b

eer)Beer

Food and so

ft bevera

ges

Tobacco

Beauty, health

care

and hygiene pro

ducts

Household ch

emicals

Household applia

nces a

nd consu

mer electr

onics

Do-It-Yourse

lf

Cloth and accesso

ries

Telecommunica

tion

Financia

l/bankin

g/insu

rance

Others

27 27 26 2624

1311

96 6

41

18 18

25

17 1612

7

24

11

31

Russia, # of answers Germany, # of answers


Popularity of Digital tools

Russia Germany


Often 82,8% Often 64,3%



Consumer Promotion Often 58,6% Often 39,3%

Guerrilla Marketing Often 34,5% Sometimes 39,3%

Direct Marketing Often 31,0% Often 55,6%

Events Sometimes 58,6% Often 50,0%

Training Sometimes 55,2% Sometimes 57,1%

Trade-incentive programs Sometimes 44,8% Seldom 57,1%

Sales-force Sometimes 44,8% Sometimes 50,0%

Sponsoring Sometimes 31,0% Sometimes 39,3%


Seldom 65,5% Seldom 50,0%

Merchandising Seldom 55,2% Sometimes 53,6%

Free in/on/off pack offer Seldom 37,9% Seldom 57,1%


Popularity of Digital tools according to Russian experts


Merchandising


Sales-force

Training


Events

Sponsoring

Direct Marketing

Guerrilla Marketing

Consumer Promotion



0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

6.9%

6.9%

6.9%

10.3%

13.8%

20.7%

24.1%

27.6%

31.0%

34.5%

58.6%

69.0%

82.8%

13.8%

17.2%

17.2%

44.8%

55.2%

44.8%

58.6%

31.0%

27.6%

13.8%

27.6%

24.1%

13.8%

65.5%

55.2%

37.9%

24.1%

20.7%

31.0%

10.3%

10.3%

27.6%

27.6%

13.8%

6.9%

3.4%

10.3%

17.2%

31.0%

13.8%

3.4%

0.0%

3.4%

3.4%

3.4%

10.3%

3.4%

3.4%

6.9%

6.9%

6.9%

3.4%

27.6%

10.3%

13.8%

Often Sometimes Seldom Never Don't know


Popularity of Digital tools according to German experts

Merchandising


Training



Sponsoring

Sales-force

Guerrilla Marketing

Consumer Promotion


Events

Direct Marketing


0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

7.1%

7.1%

10.7%

10.7%

14.3%

21.4%

25.0%

35.7%

39.3%

46.4%

50.0%

55.6%

64.3%

53.6%

17.9%

57.1%

10.7%

32.1%

39.3%

50.0%

39.3%

32.1%

28.6%

42.9%

29.6%

17.9%

32.1%

57.1%

21.4%

57.1%

50.0%

35.7%

10.7%

17.9%

25.0%

21.4%

7.4%

14.3%

3.6%

7.1%

3.6%

14.3%

7.1%

10.7%

7.1%

7.1%



Popularity of BTL-activities in total

Russia Germany



Merchandising Often 79,7% Often 58,5%


Free in/on/off pack offer Often 50,7% Often 54,5%

Contests and gambling for consumers Often 50,0% Often 64,1%

Trade-incentive programs Often 50,0% Often 48,4%

Loyalty programs for consumers Often 39,2% Often 31,3%

Sales-force Often 31,5% Often 60,9%


Sponsoring Sometimes 40,5% Often 47,8%


Direct Marketing Seldom 35,1% Often 28,1%

Guerrilla Marketing Seldom 40,5% Seldom 41,8%


Popularity of BTL-activities in Russia in total

Guerilla Marketing

Direct Marketing

Events

Sponsoring

Training

Sales-force

Loyalty ptograms for consumers




Consumer Promotion

Merchandising


0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

5.4%

13.5%

25.7%

27.0%

30.1%

31.5%

39.2%

50.0%

50.0%

50.7%

59.5%

79.7%

83.6%

10.8%

13.5%

44.6%

40.5%

39.7%

23.3%

39.2%

20.3%

25.7%

24.7%

25.7%

10.8%

12.3%

40.5%

35.1%

23.0%

14.9%

12.3%

15.1%

14.9%

25.7%

12.2%

8.2%

12.2%

4.1%

9.5%

10.8%

4.1%

2.7%

2.7%

9.5%

11.0%

33.8%

27.0%

5.4%

13.5%

16.4%

27.4%

5.5%



Popularity of BTL-activities in Germany in total

Guerrilla Marketing

Training

Direct Marketing


Events

Sponsoring



Merchandising

Sales-force


Consumer Promotion


0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

14.9%

25.0%

28.1%

31.3%

44.8%

47.8%

48.4%

54.5%

58.5%

60.9%

64.1%

80.6%

83.6%

25.4%

40.6%

26.6%

29.7%

34.3%

28.4%

31.3%

9.1%

15.4%

23.4%

15.6%

10.4%

10.4%

41.8%

18.8%

21.9%

17.2%

16.4%

19.4%

4.7%

25.8%

12.3%

1.6%

9.4%

4.5%

3.0%

6.0%

7.8%

9.4%

3.1%

6.1%

4.7%

11.9%

14.1%

15.6%

12.5%

12.5%

4.5%

12.3%

14.1%

6.3%



Consumer promotion actions for FMCG in the main channels of sale

Russia Germany

Hypermarkets (e.g. Real) Often 77,8% Often 84,8%

Supermarkets (e.g. Rewe) Often 57,8% Often 51,5%

Discounters (e.g. Lidl) Often 52,2% Never 39,4%Impulse channels (e.g. kiosks), incl. data for

Minimarkets* Seldom 42,2% Seldom 36,4%



Russia

Impulse channels, incl. Minimarkets

Discounters

Supermarkets

Hypermarkets

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

13.3%

52.2%

57.8%

77.8%

13.3%

19.6%

33.3%

15.6%

42.2%

23.9%

4.4%

30.0%




Germany

Impulse channels

Discounters

Supermarkets

Hypermarkets

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

12.1%

18.2%

51.5%

84.8%

24.2%

18.2%

33.3%

36.4%

21.2%

24.2%

39.4%

12.1%

12.1%



The most common days for Consumer promotion actions

Monday Tuesday Wednesday Thursday Friday Saturday Sunday

6

1 1

17

19 19

1

Russia Germany

* This question was answered by 26 Russian experts and 20 German experts


The parties, which organize merchandising for FMCG sector

Retailer Agency Manufacturer0

2

4

6

8

10

12

14

16

01

00 0 01

01

2

4

0

14

9

12

3

67

Don't know Never Seldom Sometimes Often Very often

Retailer Agency Manufacturer0

2

4

6

8

10

12

14

1

0 00

1

0

1

2

00

1

0

1

8

5

13

4

11

Don't know Never SeldomSometimes Often Very often

Russia Germany


Trade Audit

Marketi

ng age

ncies, s

peciali

zed in

resea

rch

Marketi

ng and re

search

depart

ment o

f a m

anufac

turer

Ordinary

mark

eting a

gency

Retaile

r

Don't know

Others0

2

4

6

8

10

The parties, which execute Trade audit in most cases

# of answers Russia# of answers Germany

*All Hypotheses were supported, except for Marketing and research department of a manufacturer


Popularity of BTL-marketing activities in tobacco industry

Russia Germany

Consumer PromotionOften 90% Often 50,0%

Merchandising Often 80% Often 60,0%


Often 70% Seldom/Never 30,0%


Often 70% Often 70,0%

Trade-incentive programs Often 70% Sometimes 40,0%

Events Often 60% Often/Sometimes 40,0%

Sponsoring Often 50% Often 60,0%

Training Often 50% Sometimes 50,00%

Free in/on/off pack offer Often 40% Seldom/Never 40,0%


Sometimes 50% Never 50,0%

Direct Marketing Don't know 50% Seldom 40,0%

Guerrilla Marketing Don't know 50% Often 40,0%

Sales-force Don't know 40% Often 70,0%



Direct Marketing

Guerilla Marketing

Sales-force



Sponsoring

Training

Events




Merchandising

Consumer Promotion

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

10%

10%

10%

40%

40%

50%

50%

60%

70%

70%

70%

80%

90%

10%

0%

30%

20%

50%

10%

30%

20%

10%

10%

10%

10%

10%

20%

40%

20%

10%

10%

10%

10%

10%

20%

10%

10%

20%

10%

10%

20%

50%

50%

40%

20%

20%

10%

10%


Russia



Germany


Direct Marketing



Training


Events

Guerrilla Marketing

Consumer Promotion

Merchandising

Sponsoring


Sales-force

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

10.0%

20.0%

20.0%

20.0%

20.0%

30.0%

40.0%

40.0%

50.0%

60.0%

60.0%

70.0%

70.0%

20.0%

20.0%

50.0%

40.0%

40.0%

10.0%

20.0%

20.0%

30.0%

40.0%

40.0%

20.0%

10.0%

10.0%

10.0%

20.0%

30.0%

40.0%

30.0%

10.0%

30.0%

20.0%

40.0%

50.0%

10.0%

10.0%

10.0%

30.0%

10.0%

10.0%

10.0%

10.0%

10.0%

10.0%

10.0%

10.0%



Popularity of BTL-marketing activities in alcohol industry (without beer)

Russia Germany

MerchandisingOften 100,0% Often 54,5%







Events Often 44,4% Often 81,8%





Sponsoring Often 33,3% Often 54,5%


Guerrilla Marketing Don't know 33,3% Sometimes/Seldom 27,3%

Direct Marketing Don't know 44,4% Sometimes 27,3%



Russia

Direct Marketing

Guerilla Marketing

Training


Sales-force

Sponsoring

Events





Consumer Promotion

Merchandising

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

11.1%

22.2%

22.2%

33.3%

33.3%

33.3%

44.4%

44.4%

44.4%

66.7%

75.0%

77.8%

100.0%

11.1%

22.2%

33.3%

22.2%

22.2%

22.2%

22.2%

22.2%

33.3%

33.3%

25.0%

22.2%

22.2%

11.1%

22.2%

22.2%

22.2%

22.2%

22.2%

11.1%

11.1%

11.1%

11.1%

22.2%

44.4%

33.3%

22.2%

11.1%

22.2%

33.3%

11.1%

11.1%




Germany

Direct Marketing

Guerrilla Marketing

Training


Merchandising

Sales-force

Sponsoring



Consumer Promotion


Events


0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

18.2%

18.2%

27.3%

36.4%

54.5%

54.5%

54.5%

54.5%

72.7%

81.8%

81.8%

81.8%

90.9%

27.3%

27.3%

36.4%

18.2%

27.3%

27.3%

36.4%

9.1%

9.1%

9.1%

9.1%

9.1%

18.2%

27.3%

18.2%

27.3%

18.2%

9.1%

9.1% 27.3%

27.3%

18.2%

18.2%

18.2%

18.2%

9.1%

18.2%

9.1%

9.1%

9.1%

9.1%

9.1%



Popularity of BTL-marketing activities in beer industry

Russia Germany


Point of Sales Materials (POSm) Often 81,8% Often 100,0%


Contests and gambling for consumers Sometimes 54,5% Often 90,0%

Free in/on/off pack offer Sometimes 63,6% Often 80,0%

Loyalty programs for consumers Sometimes 54,5% Sometimes 50,0%

Consumer Promotion Sometimes 63,6% Often 90,0%

Sales-force Sometimes 63,6% Often 80,0%



Sponsoring Sometimes 72,7% Often 70,0%

Direct Marketing Seldom 63,60% Seldom 40,00%

Guerrilla Marketing Seldom 63,6% Sometimes 50,0%



Russia

Direct Marketing

Guerilla Marketing

Training


Sales-force

Sponsoring

Events





Consumer Promotion

Merchandising

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

11.1%

22.2%

22.2%

33.3%

33.3%

33.3%

44.4%

44.4%

44.4%

66.7%

75.0%

77.8%

100.0%

11.1%

22.2%

33.3%

22.2%

22.2%

22.2%

22.2%

22.2%

33.3%

33.3%

25.0%

22.2%

22.2%

11.1%

22.2%

22.2%

22.2%

22.2%

22.2%

11.1%

11.1%

11.1%

11.1%

22.2%

44.4%

33.3%

22.2%

11.1%

22.2%

33.3%

11.1%

11.1%




Germany

Direct Marketing

Guerrilla Marketing

Training


Merchandising

Sales-force

Sponsoring



Consumer Promotion


Events


0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

18.2%

18.2%

27.3%

36.4%

54.5%

54.5%

54.5%

54.5%

72.7%

81.8%

81.8%

81.8%

90.9%

27.3%

27.3%

36.4%

18.2%

27.3%

27.3%

36.4%

9.1%

9.1%

9.1%

9.1%

9.1%

18.2%

27.3%

18.2%

27.3%

18.2%

9.1%

9.1% 27.3%

27.3%

18.2%

18.2%

18.2%

18.2%

9.1%

18.2%

9.1%

9.1%

9.1%

9.1%

9.1%



Popularity of BTL-marketing activities in food and soft beverages industry

Russia Germany






Loyalty programs for consumers Often 70,0% Often 63,6%


Training Often 40,00% Sometimes 54,50%

Events Sometimes 60,0% Sometimes 45,5%

Sponsoring Sometimes 50,0% Sometimes/Often 36,4%

Trade-incentive programs Seldom 40,0% Often 72,7%

Direct Marketing Seldom/Don't know 40,0% Often 36,4%




Russia

Direct Marketing

Guerilla Marketing

Sponsoring


Events

Training

Sales-force



Consumer Promotion


Merchandising


0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

10.0%

10.0%

30.0%

30.0%

40.0%

40.0%

50.0%

70.0%

70.0%

100.0%

100.0%

100.0%

100.0%

10.0%

50.0%

20.0%

60.0%

30.0%

30.0%

20.0%

40.0%

70.0%

10.0%

40.0%

10.0%

10.0%

10.0%

40.0%

20.0%

10.0%

10.0%

20.0%

40.0%




Germany

Guerrilla Marketing

Training

Events

Direct Marketing

Sponsoring


Sales-force




Merchandising

Consumer Promotion


0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

18.2%

18.2%

27.3%

36.4%

36.4%

63.6%

72.7%

72.7%

81.8%

81.8%

81.8%

100.0%

100.0%

18.2%

54.5%

45.5%

27.3%

36.4%

9.1%

9.1%

18.2%

9.1%

18.2%

9.1%

45.5%

18.2%

27.3%

18.2%

27.3%

18.2%

9.1%

9.1%

9.1%

9.1%

9.1%

9.1%

9.1%

9.1%

9.1%

9.1%

9.1%



Popularity of BTL-marketing activities in beauty, healthcare and HP

Russia Germany






Loyalty programs for consumers Sometimes 54,5% Sometimes 50,0%

Trade-incentive programs Sometimes/Seldom 36,4% Sometimes 60,0%

Events Sometimes 72,7% Sometimes 50,0%


Sponsoring Sometimes 54,5% Sometimes 60,0%

Direct Marketing Seldom 36,4% Often 40,0%


Sales-force Don't know 54,50% Often 50,00%



Guerilla Marketing

Direct Marketing

Events

Sponsoring

Sales-force

Training



Consumer Promotion



Merchandising


0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

0.0%

9.1%

9.1%

9.1%

18.2%

18.2%

27.3%

27.3%

81.8%

81.8%

81.8%

100.0%

100.0%

9.1%

18.2%

72.7%

54.5%

54.5%

54.5%

36.4%

18.2%

18.2%

18.2%

36.4%

36.4%

18.2%

36.4%

27.3%

18.2%

18.2%

36.4%

27.3%

27.3%

27.3%

9.1%

54.5%

9.1%


Russia



Germany

Guerrilla Marketing

Sponsoring

Training

Events


Direct Marketing


Sales-force



Merchandising

Consumer Promotion


0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

10.0%

10.0%

20.0%

30.0%

30.0%

40.0%

40.0%

50.0%

60.0%

60.0%

80.0%

90.0%

90.0%

20.0%

60.0%

50.0%

50.0%

60.0%

40.0%

50.0%

40.0%

40.0%

10.0%

10.0%

10.0%

60.0%

30.0%

20.0%

20.0%

10.0%

20.0%

10.0%

10.0%

10.0%

10.0%

10.0%

10.0%

10.0%

10.0%

10.0%



Popularity of Trade-incentive programs in Russia for FMCG sector

Beauty salons, spas

Drogerie

Minimarkets

Gas stations

Hypermarkets

Supermarkets

Discounters

HoReCa

Impulse channels

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

15%

15%

10%

5%

15%

15%

5%

55%

60%

10%

10%

30%

25%

15%

25%

55%

10%

5%

10%

25%

35%

40%

40%

45%

15%

5%

5%

60%

20%

20%

20%

20%

10%

15%

15%

25%

5%

30%

5%

10%

10%

5%

10%

15%

5%



Sponsoring

Direct Marketing


Guerrilla Marketing

Events


Training


Sales-force


Consumer Promotion


Merchandising

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

17.9%

42.9%

46.4%

50.0%

53.6%

53.6%

59.3%

67.9%

71.4%

75.0%

75.0%

75.0%

82.1%

50.0%

39.3%

35.7%

7.1%

3.6%

10.7%

11.1%

14.3%

7.1%

14.3%

17.9%

10.7%

10.7%

25.0%

14.3%

17.9%

39.3%

42.9%

35.7%

14.8%

17.9%

14.3%

10.7%

7.1%

10.7%

7.1%

7.1%

3.6%

3.6%

14.8%

7.1%

3.6%


Components of BTL according to German experts

Below the line marketing in russia and germany

Data & Analytics

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