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One-to-One Strategy meets media integration: Launch of Tropicana Essentials Vitamine C+

&

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Agenda

Setting the Stage

The Briefing

The Approach

The Results

Conclusion

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PepsiCo at a glance

$111 billion market cap... listed on NYSE since 1965

185,000 employees, operating in 200 countries

World’s second largest food and beverage company worldwide

Retail sales estimated at $92 billion

17 billion-dollar brands, 5 generating annual retail sales of more than $5 billion

Portfolio of over 200 brands

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PepsiCo has 4 sites in Belgium and a number of strong brands

BrusselBrussel

VeurneVeurne

BorgloonBorgloon

ZeebruggeZeebruggeTropicana Zeebrugge

Veurne Snack Foods

Looza Borgloon

Commercial HQ Zaventem

PepsiCo Sites in BelgiumPepsiCo Sites in Belgium

PepsiCo BelgiumPepsiCo Belgium•• 967 Employees967 Employees

Net Revenue:Net Revenue:EUR 140,000MMEUR 140,000MM

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Tropicana at a glance: Not all juices are equal

100% pure squeezed

no added water, colour, sugar or preservatives.

gently pasteurized for

longer life vs. Freshly Squeezed.

100% pure squeezed

<5 days shelf life

Unpasteurized

no added water, colour, sugar or preservatives.

Between 1% and 99% Juice

chilled or long life.

added water sugar, flavouring,

& preservatives.

100% pure juice

After transport, juice reconstituted & pasteurized.

Water evaporated off

chilled or long life.

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Tropicana at a glance: From Mass to Targeted

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80

Penetration

Awareness

Others11%

TV55%

Outdoor34%

Media Spendings Tropicana 2008

Others7%

Outdoor42%

DM & E-Mail25%

Print26%

Media Spendings Tropicana 2009

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50.3 51.9 53.350.8

18.8 18.521.4

26.8

2006 2007 2008 2009F

A strong growth of PL

A share of voice under our market share

A message about purity & pleasure which is not unique anymore

HU = ca. 95.000 HH households >> Better targeting is needed

A need to improve VFM perception in a decreasing

buying purchase power

+ 24%51

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49

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Tropicana at a glance: Why to start a loyalty program?

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70.3

50

8.5

30

21.2

% TPPusers

% TPP Vol

PLB’s

Other

Tropicana

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Phase 1 : consideration Phase 2 : engagement Phase 3 : conversion

Phase 4 : loyalty

Create awareness & impact

Create relevancy & credibility

Activate participation /identification & purchase

Objective

The Approach

Reinforce ambassadorshipDrive emotional band with

TropicanaDrive repurchase

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More in details…

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The Approach: Phase 1

JAN

OUTDOOR

MAGAZINE

PR

Phase 1 : consideration

Create awareness & impact

Connections

ObjectiveStrong Media Support

FEB MAR

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Strong Presence Vitamine C+ in “Savoure Le jour”program

Objective

The Approach: Phase 2

Phase 2 : engagement

Objective Create relevancy & credibility

Connections

DIRECT MAILING

E-MAILING

WWW.TROPICANA.BE

JAN FEB MAR

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The Approach: Phase 2

35 – 60 yearHigh social classCityHouseholds no kids / little kids < 5 yearsInterests : Wine, ski, golf, tennis, hockey, thalasso, travelling

2009 = Launch CRM Umbrella

Target GroupTarget Group Program Program Communication Strategy

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Call to action/Offer : Personalized Reduction Coupons in DMRegistration online (contest as incentive)

Registration via response cardOn pack contest

POS Visibility

The Approach: Phase 3

Activate participation / identification & purchasePhase 3 : Conversion

Objective

Outcome

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Reinforce ambassadorshipDrive emotional band with TROPICANA

Drive repurchase

Continue on further the “Savoure Le jour” CRM program

Phase 4 : Loyalty

The Approach: Phase 4

APR

DIRECT MAILING

E-MAILING

WWW.TROPICANA.BE

MAY JUNE JULY AUG SEPT OCT NOV DEC

OUTDOOR

Objective

Next Steps

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The Results: Impact Direct Mailing

% of respondents (n=600) – 100% of the respondents

Recall having received it Opened it Recall content

(content or message) Intent to act

“Do you remember

receiving a DM?”“What did you do

with the DM?”“Can you

describe the DM?”

“Do you have the intention to

react?”

Read it

Average nB2C = 16

61 85 5087

Average nB2C=16

63 36 31 1841

55 4866 94 8383 51 4094Users TOTAL n=300

High recall rate

+Average opening

rateHigh reading rate:

content appeal Good content recall Very good direct activation

+ + + +

Intent to buy and/or to use coupon

(top boxes)

“Do you have intention to buy Tropicana?

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Communication Funnel

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Top 3 1. Reduction Coupons2. New Flavour in the series Essentials : Vitamine C+3. Tropicana contains extra Vitamine C

“Extra resistance and Vitality During the winter” had high scores

The Results: Impact Direct Mailing

Content Recall

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0% 20% 40% 60% 80% 100%

Recall rate

Act

iva

tion

rate

Average(43.6%)

Avg (65.3%)

Efficient

Strong activation caseLimited recall mailing

Strong recall caseLimited reaction level

Do it againImprove attention

Improve action

Tropicana

N B2C=16

Activation rate = 50% * intention to react (base=people having read mail) + 50% * intention to purchase (base = people recalling ad)

Recall – Activation Matrix

The Results: Impact Direct Mailing

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8,7% On Average by coupon17% On Average by household

The Results: Couponing Use

Redemption

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HH no kids50 +Highest social groupsBrussels

= confirmation of GFK profile

Mailing respondents are representative for the Tropicana target

The Results: Couponing Use

Profile Analyse Coupon Users

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The Results: E-newsletter

Vitamine C+ Content

12,15 % clicked versus Total(vs. IAB Benchmark FMCG 11,10%)

12% of total CTR on Vitamine C+ (Top 3)

Delivered Opened Clicked/Opened Clicked/Total

Newsletter Tropicana 86,96% 25,13% 48,33% 12,15%Benchmark IAB 93,20% 23,80% 11,10%

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Participants

The Results: Contest Participation

5,9%of Total

e-newsletter

6% of Total mailing

22% overlapping contacts

43% DM & E-news

57% Other sources

(ON-PACK / POS / WOM)

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The Results: Savoure le Jour Registration

Through registration card = 0,026%

Through packaging and others sources = 41%

Who received DM = 34%

Who received e-newsletter = 24%

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Conclusion

Direct Marketing efforts needs to be integrated in a broader story and put the consumer at the heart of the program

Through Direct Marketing integration into our campaign, Tropicana was able to leverage the efficiency of a new product launch

Direct Mailing has created relevance and credibility for our product and amplified our outdoor and print message

Transfer from classic mass media to one-to-one communication has improved the ROI of the campaign

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Thank you for your attention

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