L’Oreal Regional TV case study November 2011. RTM is the marketing bureau for Regional free to...

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L’Oreal Regional TV case study November 2011

Transcript of L’Oreal Regional TV case study November 2011. RTM is the marketing bureau for Regional free to...

Page 1: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

L’Oreal

Regional TV case study

November 2011

Page 2: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

www.regionaltvmarketing.com.au

RTM is the marketing bureau for Regional free to air TV

Page 3: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

RTM reviewed L’Oreal regional skin care sales and TV ROI for 13 months to July

• 33% of L’Oreal and Garnier sales come from regional markets and up to 37% for mature age brands – in line with regional population

• L’Oreal regional BDI improved 10% vs. metro following increased share of TV $ to RTV

• RTV demonstrably more effective when used at same weights to metro

• RTV driving 40% to 50% of launch sales

Page 4: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

PLAY TALKING REGIONAL VIDEO

Page 5: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Regional TV covers all areas outside capital

cities and reaches 36% of

populationQLD

NNSW

SNSW

TAS

VIC

REG. WA

DIARY

Page 6: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Regional TV coverage

includes large cities and fast

growing coastal suburbs

Newcastle & Central Coast

Gold Coast

Wollongong & Illawarra

Canberra

Page 7: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Populations of major regional TV markets are comparable with the metros

SydneyMelbourne

Reg NSWBrisbane

PerthReg QLDAdelaideReg VIC

DiaryWATAS

0m 1m 2m 3m 4m 5m

4,6354,528

3,4892,982

1,8561,764

1,4081,171

969585

510

People

Source: ATR & OZTAM 2011, Nielsen Media Research 2010

NNSW 2,079

SNSW 1,410

Page 8: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Population Increase: 2001 vs. 2011

Source: ATR & OZTAM 2011

Australian population moving North and to the coast. Over 30% growth in 10 years in some regional areas

MARYB

MACKA

YBRIS

NOR RIV

CAIRNS

TOW

NS

PERTH

ROCK

TOOW

CANB

GIPPS M

EL

TAM/T

AR

ALBURY

WOLL

BALLSY

DADEL

NEWC

HOBART

BEND

LAUNCE

SHEP

P

O/D/W

0%5%

10%15%20%25%30%35%40%45%

National average

QLD NSW VIC TAS METRO

Page 9: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Urbanisation and high population growth changing the profile of regional Australia

• Seachange: Baby boomers and young families

• Lower cost of living and lifestyle are main attractions

• Rural populations moving to regional hub towns

• Less than 4% of households depend on farming

Page 10: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Regional consumers’ willingness to spend grew this year slightly this year against “national” trend

2006 2007 2008 2009 2010 20110

50

100

150

200

250

300

350

Metro

Spending per discretionary $1000

Source: foreseechange 2005 – 2010 annual average, 2011 June & November 2011 survey

average

Page 11: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Average household incomes in regional TV markets are within 10% of national average

Regional Metro

NNSW $89,690 Sydney $112,380

SNSW $102,500 Melbourne $101,840

Victoria $84,470 Brisbane $104,970

Queensland $95,080 Adelaide $91,530

Tasmania $84,170 Perth $119,600

Rural $106,690

Source: Roy Morgan Single Source (12mths to Mar 2011 )

P25-54: Average household Income

Page 12: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Regional consumers are more optimistic about their current financial outlook…

…and are more likely to spend on discretionary items over the coming year.

Page 13: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Regional women attitudes and purchasing of

skincare are the same as metro

Source: Roy Morgan Single Source (12mths to March 2011)

Women aged 25-39: Met Reg

Children in Household 59% 70%

I have favourite brands for most things I buy 70% 69%

Sun Protection Factor (important criteria for skin care)

33% 33%

Moisturising Benefits (important criteria for skin care)

37% 41%

Purchased skincare P6M 73% 71%

Page 14: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Metro Regional0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

15% 16%

17% 16%

11% 11%5% 5%6% 6%5% 5%6% 5%4% 3%3% 3%5% 5%

24% 25%Other BrandsVaselineClean&ClearJohnson'sNeutrogenaClearasilGarnierDoveL'OrealNivea BrandOlay

Brand shares of total category sales: June 2010 to July 2011

L’Oreal average regional and metro share of total skin care sales are the same

Source: Scan Data (4 W/E 04/7/10 to 31/7/11) Coles /Woolworths/Bi Lo (Excludes NT)

Page 15: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

33%of all L’Oreal

Australian Skincare sales are from

regional consumers

Source: Scan Data (4 W/E 04/7/10 to 31/7/11) Coles /Woolworths/Bi Lo (Excludes NT)

Page 16: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

L’Oreal share of skin care in Reg. NSW and TAS is above average

Total L’Oreal share of total skin care category sales: June 2010 to July 2011

SYD

MEL BR

IAD

EPE

R

NNSWSN

SW VIC

QLD TAS

SA/W

A0%

2%

4%

6%

8%

10%

12%

14%

Source: Scan Data (4 W/E 04/7/10 to 31/7/11) Coles /Woolworths/Bi Lo (Excludes NT)

Page 17: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

L’Oreal regional sales are 33% of national total – but Reg. NSW is more significant & TAS/WA/SA value above ADE

SYD

BRI

PER

VIC

TAS

$0.0m $1.0m $2.0m $3.0m $4.0m $5.0m $6.0m $7.0m $8.0m

7564

6907

4593

1622

3466

5286

1377

2605

730

1284

Total L’Oreal Skin Care sales: June 2010 to July 2011

Source: Scan Data (4 W/E 04/7/10 to 31/7/11) Coles /Woolworths/Bi Lo (Excludes NT)

Page 18: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

W/E 04/07/10

W/E 01/08/10

W/E 29/08/10

W/E 26/09/10

W/E 24/10/10

W/E 21/11/10

W/E 19/12/10

W/E 16/01/11

W/E 13/02/11

W/E 13/03/11

W/E 10/04/11

W/E 08/05/11

W/E 05/06/11

W/E 03/07/11

W/E 31/07/11

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

$0.0m

$0.2m

$0.4m

$0.6m

$0.8m

$1.0m

$1.2m

Metro TV Regional TV Metro

4 weeks to W/E

Total L’Oreal share of total Skin care sales vs. TV Spend

June 2010 – July 2011Total TV: $6.5mReg share: 14%

L’Oreal share of regional markets improved relative to national trend over the year

Source: Scan Data (4 W/E 04/7/10 to 31/7/11) Coles /Woolworths/Bi Lo (Excludes NT), Adquest Millennium

Cate

gory

share

by

valu

eTV

spend

Page 19: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

W/E 04/07/10

W/E 01/08/10

W/E 29/08/10

W/E 26/09/10

W/E 24/10/10

W/E 21/11/10

W/E 19/12/10

W/E 16/01/11

W/E 13/02/11

W/E 13/03/11

W/E 10/04/11

W/E 08/05/11

W/E 05/06/11

W/E 03/07/11

W/E 31/07/11

0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%4.5%

$0.0m

$0.2m

$0.4m

$0.6m

$0.8m

$1.0m

$1.2m

Metro TV Regional TV Metro

4 weeks to W/E

L’Oreal Youth Code share of total Facial Moisturisers/Specialist sales vs. TV Spend

June 2010 – July 2011Total TV: $2.1mReg share: 16%

L’Oreal Youth Code drove much of the growth and regional consumers particularly responsive to TV.

Source: Scan Data (4 W/E 04/7/10 to 31/7/11) Coles /Woolworths/Bi Lo (Excludes NT), Adquest Millennium

Cate

gory

share

by

valu

eTV

spend

Page 20: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

W/E 04/07/10

W/E 01/08/10

W/E 29/08/10

W/E 26/09/10

W/E 24/10/10

W/E 21/11/10

W/E 19/12/10

W/E 16/01/11

W/E 13/02/11

W/E 13/03/11

W/E 10/04/11

W/E 08/05/11

W/E 05/06/11

W/E 03/07/11

W/E 31/07/11

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

$0.0m

$0.2m

$0.4m

$0.6m

$0.8m

$1.0m

$1.2m

Metro TV Regional TV Metro

4 weeks to W/E

L’Oreal Revitalift share of total Facial Cleanser/Moisturisers/Specialist sales vs. TV Spend

June 2010 – July 2011Total TV: $1.4mReg share: 24%

L’Oreal Revitalift share declined but was very responsive to higher TV activity in 2011

Source: Scan Data (4 W/E 04/7/10 to 31/7/11) Coles /Woolworths/Bi Lo (Excludes NT), Adquest Millennium

Cate

gory

share

by

valu

eTV

spend

Page 21: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

W/E 04/07/10

W/E 01/08/10

W/E 29/08/10

W/E 26/09/10

W/E 24/10/10

W/E 21/11/10

W/E 19/12/10

W/E 16/01/11

W/E 13/02/11

W/E 13/03/11

W/E 10/04/11

W/E 08/05/11

W/E 05/06/11

W/E 03/07/11

W/E 31/07/11

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

$0.0m

$0.2m

$0.4m

$0.6m

$0.8m

$1.0m

$1.2m

Metro TV Regional TV Metro

4 weeks to W/E

L’Oreal Age Perfect Clean share of total Facial Cleanser sales vs. TV Spend

June 2010 – July 2011Total TV: $497kReg share: 16%

L’Oreal Perfect Clean achieved exceptional launch success in regional markets from TV advertising

Source: Scan Data (4 W/E 04/7/10 to 31/7/11) Coles /Woolworths/Bi Lo (Excludes NT), Adquest Millennium

Cate

gory

share

by

valu

eTV

spend

Page 22: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

RO 3Ix

L’Oreal skin care

Annual sales

TV Spend

ROI

Metro $24.2 $5.6m $4.32

Regional $11.3m $883k $12.80

Cost efficiency and ROI from L’Oreal regional TV is 3 times better than metro TV

Source: Scan Data (4 W/E 04/7/10 to 31/7/11) Coles /Woolworths/Bi Lo (Excludes NT), Adquest Millennium

Page 23: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

L’Oreal TV advertising ROI by market

Markets Annual sales

TV Spend ROI

SYD $7.6m $2.3m $3.29

MEL $6.9m $1.5m $4.55

BRI $4.6m $910k $5.05

ADE $1.6m $427k $3.80

PER $3.5m $474k $7.31

NNSW $2.7m $316k $8.51

SNSW $2.6m $247k $10.51

VIC $1.4m $70k $19.68

QLD $2.6m $224k $11.63

TAS $730k $0 --

Source: Scan Data (4 W/E 04/7/10 to 31/7/11) Coles /Woolworths/Bi Lo (Excludes NT), Adquest Millennium

Page 24: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Total Garnier regional sales are 32% of national

SYD

BRI

PER

VIC

TAS

$0.0

m

$0.5

m

$1.0

m

$1.5

m

$2.0

m

$2.5

m

$3.0

m

$3.5

m

$4.0

m

$4.5

m

Total Garnier Skin Care sales: June 2010 to July 2011

Source: Scan Data (4 W/E 04/7/10 to 31/7/11) Coles /Woolworths/Bi Lo (Excludes NT)

Page 25: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Garnier share of regional skin care varies only slightly by market but TAS below average

Total Garnier share of total skin care category sales: June 2010 to July 2011

SYD

MEL BR

IAD

EPE

R

NNSWSN

SW VIC

QLD TAS

SA/W

A0%

1%

2%

3%

4%

5%

6%

7%

Source: Scan Data (4 W/E 04/7/10 to 31/7/11) Coles /Woolworths/Bi Lo (Excludes NT)

Page 26: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

W/E 04/07/10

W/E 01/08/10

W/E 29/08/10

W/E 26/09/10

W/E 24/10/10

W/E 21/11/10

W/E 19/12/10

W/E 16/01/11

W/E 13/02/11

W/E 13/03/11

W/E 10/04/11

W/E 08/05/11

W/E 05/06/11

W/E 03/07/11

W/E 31/07/11

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

$0.0m

$0.2m

$0.4m

$0.6m

$0.8m

$1.0m

$1.2m

Metro TV Regional TV Metro

4 weeks to W/E

Total Garnier share of total Skin care sales vs. TV Spend

June 2010 – July 2011Total TV: $3.2mReg share: 16%

Garnier share of regional skin care grew strongly in 2011

Source: Scan Data (4 W/E 04/7/10 to 31/7/11) Coles /Woolworths/Bi Lo (Excludes NT), Adquest Millennium

Cate

gory

share

by

valu

eTV

spend

Page 27: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

W/E 04/07/10

W/E 01/08/10

W/E 29/08/10

W/E 26/09/10

W/E 24/10/10

W/E 21/11/10

W/E 19/12/10

W/E 16/01/11

W/E 13/02/11

W/E 13/03/11

W/E 10/04/11

W/E 08/05/11

W/E 05/06/11

W/E 03/07/11

W/E 31/07/11

0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%9.0%

$0.0m

$0.2m

$0.4m

$0.6m

$0.8m

$1.0m

$1.2m

Metro TV Regional TV Metro

4 weeks to W/E

Garnier Body Intensive 7 Days share of total Body Moisturisers sales vs. TV Spend

June 2010 – July 2011Total TV: $602kReg share: 13%

Garnier Body Intensive was a successful launch in regional markets – approx. 50% of sales growth from RTV

Source: Scan Data (4 W/E 04/7/10 to 31/7/11) Coles /Woolworths/Bi Lo (Excludes NT), Adquest Millennium

Cate

gory

share

by

valu

eTV

spend

Page 28: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

W/E 04/07/10

W/E 01/08/10

W/E 29/08/10

W/E 26/09/10

W/E 24/10/10

W/E 21/11/10

W/E 19/12/10

W/E 16/01/11

W/E 13/02/11

W/E 13/03/11

W/E 10/04/11

W/E 08/05/11

W/E 05/06/11

W/E 03/07/11

W/E 31/07/11

0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%9.0%

$0.0m

$0.2m

$0.4m

$0.6m

$0.8m

$1.0m

$1.2m

TAS TV Regional TV TAS

4 weeks to W/E

Garnier Body Intensive 7 Days share of total Body Moisturisers sales vs. TV Spend

June 2010 – July 2011Total Reg TV: $78K

RTV not used for Garnier Body Intensive in TAS – launch share half of active markets and appears to be declining

Source: Scan Data (4 W/E 04/7/10 to 31/7/11) Coles /Woolworths/Bi Lo (Excludes NT), Adquest Millennium

Cate

gory

share

by

valu

eTV

spend

Page 29: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

RO 2.5IxCost efficiency and ROI from Garnier regional TV is 2.5 times better than metro TV

Garnier skin care

Annual sales

TV Spend

ROI

Metro $12.9m $2.7m $4.78

Regional $6.1m $518k $11.78

Source: Scan Data (4 W/E 04/7/10 to 31/7/11) Coles /Woolworths/Bi Lo (Excludes NT), Adquest Millennium

Page 30: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Garnier: ROI by Metro + Agg Markets

Markets Annual sales

TV Spend ROI

SYD $3.9m $1.3m $2.89

MEL $3.8m $861k $4.37

BRI $2.6m $514k $5.15

ADE $907k $198k $4.58

PER $1.7m $261k $6.46

NNSW $1.5m $174k $8.52

SNSW $1.3m $144k $9.06

VIC $830k $92k $9.02

QLD $1.5m $175k $8.76

TAS $317k $0 --

Source: Scan Data (4 W/E 04/7/10 to 31/7/11) Coles /Woolworths/Bi Lo (Excludes NT), Adquest Millennium

Page 31: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Guthy Renker

Olay

L'Oreal

Nivea

Neutrogena

Garnier

Clean&Clear

Vaseline

Clearasil

Dove

Grand Total

48%

18%

14%

18%

15%

16%

20%

14%

0%

8%

20%

MTV% RTV%

Regional TV share of skin care brands’ national TV budgets has grown but opportunities remain

Regional TV share of skin care brands’ national TV budgets has grown but opportunities remain

Source: Nielsen Media Research AdExCategory: Skin Care - All

Total TV Spend

$5.4m

$5.1m

$6.5m

$5.9m

$3m

$3.2m

$358k

$2m

$926k

$1.6m

$34m

Period: w/c 13/6/10 to w/c 31/7/11

Page 32: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

W/E 04/07/10

W/E 01/08/10

W/E 29/08/10

W/E 26/09/10

W/E 24/10/10

W/E 21/11/10

W/E 19/12/10

W/E 16/01/11

W/E 13/02/11

W/E 13/03/11

W/E 10/04/11

W/E 08/05/11

W/E 05/06/11

W/E 03/07/11

W/E 31/07/11

0.0%2.0%4.0%6.0%8.0%

10.0%12.0%14.0%16.0%18.0%

$0.0m

$0.2m

$0.4m

$0.6m

$0.8m

$1.0m

$1.2m

Metro TV Regional TV Metro

4 weeks to W/E

Olay share of total Skin care sales vs. TV Spend

June 2010 – July 2011Total TV: $5.1mReg share: 18%

Olay maintains higher share of regional skin care sales through consistently strong suppport

Source: Scan Data (4 W/E 04/7/10 to 31/7/11) Coles /Woolworths/Bi Lo (Excludes NT), Adquest Millennium

Cate

gory

share

by

valu

eTV

spend

Page 33: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

W/E 04/07/10

W/E 01/08/10

W/E 29/08/10

W/E 26/09/10

W/E 24/10/10

W/E 21/11/10

W/E 19/12/10

W/E 16/01/11

W/E 13/02/11

W/E 13/03/11

W/E 10/04/11

W/E 08/05/11

W/E 05/06/11

W/E 03/07/11

W/E 31/07/11

0.0%2.0%4.0%6.0%8.0%

10.0%12.0%14.0%16.0%18.0%20.0%

$0.0m

$0.2m

$0.4m

$0.6m

$0.8m

$1.0m

$1.2m

Metro TV Regional TV Metro

4 weeks to W/E

Nivea share of total Skin care sales vs. TV Spend

June 2010 – July 2011Total TV: $5.9mReg share: 18%

Nivea share recovered in 2011 especially in regional with boost in RTV

Source: Scan Data (4 W/E 04/7/10 to 31/7/11) Coles /Woolworths/Bi Lo (Excludes NT), Adquest Millennium

Cate

gory

share

by

valu

eTV

spend

Page 34: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Garnier Body Intensive

Garnier Pure Active

Garnier UltraLift

Age Re-Perfect

DE Revitalift

DE UV Perfect

Men Expert

Perfect Clean

Youth Code

Grand Total

13%

17%

14%

21%

24%

12%

0%

16%

16%

14%

MTV% RTV%

Regional TV share higher for L’Oreal youth and mature brandsRegional TV share higher for L’Oreal youth and mature brands

Source: Nielsen Media Research AdExCategory: Skin Care - All

Period: w/c 13/6/10 to w/c 31/7/11

Total TV Spend

$602k

$2.3m

$815k

$308k

$1.4m

$653k

$1.6m

$497k

$2.1m

$10.3m

Page 35: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Regional women 55+ are affluent consumers

and just as engaged with skincare

Women aged 55+ Met Reg

Favourite brands for most things 65% 68%

Moisturising Benefits (criteria for skin care)

48% 47%

Anti-aging Benefits (criteria for skin care)

27% 25%

Purchased skincare P6M 70% 67%

Source: Roy Morgan Single Source (12mths to March 2011)

Page 36: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

L’Oreal Revitalift regional sales are 35% of national

SYD

BRI

PER

VIC

TAS

$0.0m $0.5m $1.0m $1.5m $2.0m

Total L’Oreal Revitalift Skin Care sales: June 2010 to July 2011

Source: Scan Data (4 W/E 04/7/10 to 31/7/11) Coles /Woolworths/Bi Lo (Excludes NT)

Page 37: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Garnier Ultra Lift regional sales are 37% of national

SYD

BRI

PER

VIC

TAS

$0.0

m

$0.1

m

$0.2

m

$0.3

m

$0.4

m

$0.5

m

$0.6

m

$0.7

m

$0.8

m

$0.9

m

Total Garnier Ultra Lift Skin Care sales: June 2010 to July 2011

Source: Scan Data (4 W/E 04/7/10 to 31/7/11) Coles /Woolworths/Bi Lo (Excludes NT)

Page 38: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Men aged 18-39 Met Reg

Household income $50k+ 50% 56%

Children in Household 38% 45%

Favourite brands for most things I buy 66% 68%

Moisturising Benefits (criteria for skin care) 16% 18%

Purchased skincare P6M 37% 33%

Source: Roy Morgan Single Source (12mths to June 2011)

Regional men are just as relevant to L’Oreal skincare

Page 39: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Male skin care category development in Reg QLD, SNSW and rural in line with Sydney / Melb

SYD

MEL BR

IAD

EPE

R

NNSWSN

SW VIC

QLD TAS

Diary

0%5%

10%15%20%25%30%35%40%45%

% of Men 18-39 who purchased skincare P6M

Source: Roy Morgan Single Source 12 months to June 2011

Page 40: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

W/E 04/07/10

W/E 01/08/10

W/E 29/08/10

W/E 26/09/10

W/E 24/10/10

W/E 21/11/10

W/E 19/12/10

W/E 16/01/11

W/E 13/02/11

W/E 13/03/11

W/E 10/04/11

W/E 08/05/11

W/E 05/06/11

W/E 03/07/11

W/E 31/07/11

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

$0.0m

$0.2m

$0.4m

$0.6m

$0.8m

$1.0m

$1.2m

Metro TV Regional TV Metro

4 weeks to W/E

L’Oreal Men Expert share of total Facial Cleanser/Moisturisers/Specialist sales vs. TV Spend

June 2010 – July 2011Total TV: $1.6mReg share: 0%

L’Oreal Men Expert is less popular in regional

Source: Scan Data (4 W/E 04/7/10 to 31/7/11) Coles /Woolworths/Bi Lo (Excludes NT), Adquest Millennium

Cate

gory

share

by

valu

eTV

spend

Page 41: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

W/E 04/07/10

W/E 01/08/10

W/E 29/08/10

W/E 26/09/10

W/E 24/10/10

W/E 21/11/10

W/E 19/12/10

W/E 16/01/11

W/E 13/02/11

W/E 13/03/11

W/E 10/04/11

W/E 08/05/11

W/E 05/06/11

W/E 03/07/11

W/E 31/07/11

0%

1%

2%

3%

4%

5%

$0.0m

$0.2m

$0.4m

$0.6m

$0.8m

$1.0m

$1.2m

Metro TV Regional TV Metro

4 weeks to W/E

Nivea Men share of total Skin care sales vs. TV Spend

June 2010 – July 2011Total TV: $733kReg share: 4%

Nivea Men has similar share in regional to metro

Source: Scan Data (4 W/E 04/7/10 to 31/7/11) Coles /Woolworths/Bi Lo (Excludes NT), Adquest Millennium

Cate

gory

share

by

valu

eTV

spend

Page 42: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

W/E 04/07/10

W/E 01/08/10

W/E 29/08/10

W/E 26/09/10

W/E 24/10/10

W/E 21/11/10

W/E 19/12/10

W/E 16/01/11

W/E 13/02/11

W/E 13/03/11

W/E 10/04/11

W/E 08/05/11

W/E 05/06/11

W/E 03/07/11

W/E 31/07/11

0.0%

0.1%

0.2%

$0.0m

$0.2m

$0.4m

$0.6m

$0.8m

$1.0m

$1.2m

Metro TV Regional TV Metro

4 weeks to W/E

Dove Men Care share of total Skin care sales vs. TV Spend

June 2010 – July 2011Total TV: $518kReg share: 18%

Dove Men Care had widespread regional TV support and achieved similar market share as metro

Source: Scan Data (4 W/E 04/7/10 to 31/7/11) Coles /Woolworths/Bi Lo (Excludes NT), Adquest Millennium

Cate

gory

share

by

valu

eTV

spend

Page 43: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Increasing regional TV share of national budget will boost sales growth and advertising ROI

• Adding new regional markets will boost growth

• ROI for regional TV will boost overall campaign return

• Equal weights in all markets would require approx. 23% of total TV budget

• …and will deliver 35% or more of national sales and 40% or more of national growth

Page 44: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Vaseline case study objectives

• Identify key media drivers of sales.• Measure response to media activity in Regional vs. Metro

areas• Generate predictive models enabling insight into budget

allocation across channels and regions.• Measure impact of Vaseline price and distribution.• Identify competitive impact:

– Price/Distribution– Advertising

Page 45: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Project Scope

• Product: Vaseline Hand and Body Range

• Key Metric: Total Vaseline baseline sales in Woolworths

• Time Period: 2008 through to end of 2010

• Interval: Weekly

• Number of Periods:148

• Geography: Sydney, NNSW, SNSW, Melbourne, Regional VIC, Brisbane, Regional QLD, Tasmania

Page 46: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Key findings summary

• The study found a re-alignment of TV market investment using the same 2010 TV budget could increase annual TV generated sales by 38%.

• And improve ROI by 43%• The model recommends 40% share of

total TV budget should be allocated to regional markets to achieve this outcome

• TV flighting patterns in regional are optimal with continuous lower weights

Page 47: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Media Investment Summary 2008 – 2010

Eastern Regional Aus

Page 48: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Variables Tested Strong Sales Influencer?

TV

Magazines

Radio

Press

Digital

Vaseline Price

Vaseline Distribution

Competitive Advertising

Competitive Price

Competitive Distribution

Weather Indicators

Economic Indicators

Public Holidays

Catalogue Placements

Consumer Competitions

These variables

help explain

over 80% of

Woolworths sales

variation.

Variables Tested

aaa

aaaaaaa

a

a

Page 49: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Model vs. ActualModel is highly accurate: Sales 90.7%

4/02/2008 2/06/2008 29/09/2008 26/01/2009 25/05/2009 21/09/2009 18/01/2010 17/05/2010 13/09/2010-40000

-20000

0

20000

40000

60000

80000

100000

120000

140000

Outlier Actual Model

Sale

s $

NSW, VIC, QLD & TAS

Page 50: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

TV drives the majority (67%) of advertising generated Vaseline sales

4/02

/200

8

21/0

3/20

08

6/05

/200

8

21/0

6/20

08

6/08

/200

8

21/0

9/20

08

6/11

/200

8

22/1

2/20

08

6/02

/200

9

24/0

3/20

09

9/05

/200

9

24/0

6/20

09

9/08

/200

9

24/0

9/20

09

9/11

/200

9

25/1

2/20

09

9/02

/201

0

27/0

3/20

10

12/0

5/20

10

27/0

6/20

10

12/0

8/20

10

27/0

9/20

10

12/1

1/20

100

5

10

15

20

25

TV Mags Radio Digital OOH In-Store

Sale

s ($

‘000)

TV Radio OOHMagazine

s Digital Press

% of Adsales 67% 8% 4% 14% 7% NA

% of Budget 79% 2% 2% 12% 4% 0.3%

2008 2009 2010

Page 51: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Over the period of the study regional areas deliver 38% of advertising generate sales for only 16% of budget and hence better ROI compared to metro areas.

Melbourne and Sydney have a greater capacity to generate high volume sales but require large levels of spend

Region Spend Sales Generated ROI

Overall 4.9 mill 100% 100

Sydney 1.96 mill 26% 71

Melbourne 1.2 mill 21% 86

Brisbane 891K 15% 86

NNSW 197K 7% 186

SNSW 190K 11% 286

RQLD 200K 11% 271

RVIC 142K 6% 214

Tasmania 74K 2% 143

Page 52: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Adstock investment in regional areas during trial was less than optimal

020

0040

0060

0080

00

1000

0

1200

0

1400

0

1600

0

1800

0

2000

0

2200

0

2400

0

2600

0

2800

0

3000

0

3200

0

3400

0

3600

0

3800

0

4000

0

4200

0

4400

0

4600

0

4800

0

5000

00

200

400

600

800

1000

1200

1400

1600

1800

Predicted sales driven by weekly TV Adstock levels

Sydney Melb Bris NNSW SNSW RQLD RVIC TAS

Weekly Adstock

Sa

les $

= Average Weekly Adstocks

Page 53: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Adstock investment in regional areas should be increased to maximise total advertising generated sales.

020

0040

0060

0080

00

1000

0

1200

0

1400

0

1600

0

1800

0

2000

0

2200

0

2400

0

2600

0

2800

0

3000

0

3200

0

3400

0

3600

0

3800

0

4000

0

4200

0

4400

0

4600

0

4800

0

5000

00

200

400

600

800

1000

1200

1400

1600

1800

Predicted sales driven by weekly TV Adstock levels

Sydney Melb Bris NNSW SNSW RQLD RVIC TAS

Weekly Adstock

Sa

les $

= Average Weekly Adstocks

Page 54: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

RegionCurrent Adstock

Possible Mix% of weekly

budget

Sydney 42K 20K 18.59%

Melbourne 28K 24.6K 22.86%

Brisbane 19.5K 19K 17.66%

NNSW 4.8K 10K 9.29%

SNSW 3.9K 10K 9.29%

RQLD 4.9K 13K 12.08%

RVIC 3.2K 7K 6.51%

Tasmania 1.3K 4K 3.72%

Total 108K 108K

Optimum allocation to Regional TV is 41% of total TV budget

Page 55: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Using 2010 TV, the model suggests that annual TV generated sales could be increased by 38% by adopting a more continuous flighting pattern and improving spend allocation by region. ROI would improve by 43%

0

1000

2000

3000

4000

5000

6000

7000

0

20000

40000

60000

80000

100000

120000

140000

Proposed Flighting and TV Budget Split – Compared to 2010Investment Projected TV Sales2010 TV Sales

Sale

s $

Investm

en

t $

Syd Melb Bris NNSW SNSW RQLD RVIC TASTotal

Spend ROI

2010 Spend 43% 23% 17% 4% 4% 4% 4% 1% 1.78mill 100

Potential Spend 19% 23% 18% 9% 9% 12% 7% 4% 1.78mill 143

41% annual increase

Page 56: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Due to higher decay in regional areas, a continuous flighting pattern may be more appropriate. Whereas in Sydney where advertising decay is lower, a large burst followed by shorter ones is most efficient.

Region

2010 Spend

2010 Rev.

2010 ROI

Poss.Spend

Approx

Rev.ROI

Sydney

762K 36K 0.047c 331K 16K 0.048c

Region

2010 Spend

2010 Rev.

2010 ROI

Poss.Spend

Approx

Rev.ROI

NNSW 71K 9.6K 0.14c 165K 22.8K 0.14c

Region2010 Spend

2010Rev.

2010ROI

Poss.Spend

ApproxRev. ROI

SNSW 70K 14.6K 0.21c 166K 33K 0.2c

Region2010 Spend

2010 Rev.

2010 ROI

Poss.Spend

ApproxRev. ROI

TAS 25K 2.8K 0.11c 66K 7K 0.11

Invest

men

t

Sale

s

Week Number

Invest

men

t

Sale

s

Week Number

Invest

men

t

Sale

s

Week Number

Invest

men

t

Sale

s

Week Number

Page 57: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Region2010 Spend

2010 Rev.

2010 ROI

Poss.Spend

ApproxRev. ROI

Melb 408K 26K 0.063c 407K 27.5K 0.07c

Region2010 Spend

2010 Rev.

2010 ROI

Poss.Spend

ApproxRev. ROI

Bris 306K 19.1K 0.063c 314K 22.9K 0.07c

Region2010 Spend

2010 Rev.

2010 ROI

Poss.Spend

ApproxRev. ROI

RVIC 65K 9.3K 0.14c 116K 17.7K 0.15c

Region2010 Spend

2010 Rev.

2010 ROI

Poss.Spend

ApproxRev. ROI

RQLD 75K 14.5K 0.19c 215K 39K 0.18c

Melbourne may also benefit from shorter more concentrated bursts of activity resulting from higher point of diminishing returns compared to Brisbane and regional areas.

Invest

men

t

Sale

s

Week Number

Invest

men

t

Sale

s

Week Number

Invest

men

t

Sale

s

Week Number

Invest

men

t

Sale

s

Week Number

Page 58: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Overall Radio achieved the strongest ROI but this is based on limited data points. Total media return on investment is $0.08 (NB WW sales only). Regional TV achieved the next best ROI after Radio.

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35

$0.08

$0.32

$0.14 $0.13

$0.09$0.07 $0.06

$0.16

Return on Investment SummaryWW Sales Only

Dollars

Potential ROI from optimised TV investment

is $0.10

Page 59: L’Oreal Regional TV case study November 2011.  RTM is the marketing bureau for Regional free to air TV.

Key findings summary

• The study found a re-alignment of TV market investment using the same 2010 TV budget could increase annual TV generated sales by 38%.

• And improve ROI by 43%• The model recommends 40% share of

total TV budget should be allocated to regional markets to achieve this outcome

• TV flighting patterns in regional are optimal with continuous lower weights