SMART-Drop - New Covent Garden Soup

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SMART-Drop marketingusing targeted direct promotional

advertising leaflets to specific household types

around specific priority outlets

© 2012 Tel: 01483 20 20 55 e: [email protected]

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Summary - why do it?

3 key benefits of SMART-Drop advertising for today’s marketing mix strategy

– Cost effective method to increase sales through a target retailer without discounting at till

– Shopper marketing out of store versus in store media

– Complements shopper marketing in store spend with out of store targeted media


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* DMA Statistics – Published 2013

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Solves 4 key questions & challenges

1. How are you adding value to your price platform to strengthen your competitive edge?

2. How are you promoting new interest and sales at normal price, in both regional and account sweet spots?

3. How are you building residual revenue from promotional advertising?

4. How are you influencing the customer journey through joined up marketing that builds your opted in customer database for future low cost interaction?


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SMART-Drop Targeting benefit


Conventional targeting (red) by traditional post code sector of 2.5-3K households provides an overall index for each of those sectors

SMART-Drop targeting (red) provides far greater selectivity (average 150-200 target household ‘clusters’)

i.e. the right target household clusters around target stores

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SMART-Drop traction 1

– Voucher redemption PLUS advertising effect = TOTAL SALES EFFECT

– Voucher redemption 1%-3.5%

– Advertising effect 2-12 times (experience and market feedback, depends on timing, product proposition)

– So 1 in 50 to 1 in 3 households will buy

– SMART-Drop marketing is better – tighter targeting, less wastage (vs traditional door drop model) with themed occasion we’d judge advertising effect 6 x voucher redemption, between 1 in 5 and 1 in 15 households smart dropped buying

– Single brand payback - £20K for 200-250K A5 leaflet ads; 13K to 50K buying households ; £80K for 1.1m A5 leaflets; 73K to 220K households buying


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SMART-Drop traction 2Multi brand examples of payback:

– £36K = 200K A4 leaflet ads; 13-40K buying hholds (£12K for each of 3 brands)

– £57K = 500K leaflet ads; 33K to 100K buying hholds (£19K for each of 3 brands)

– £87K = 1 million A4 leaflet ads; 66K to 200K buying hholds (£29K for each of 3 brands)

– £162K = 2 million A4 leaflet ads: 132k to 400K buying hholds (£27K for each of 6 brands)

– £234K = 3 million A4 leaflet ads: 200K to 600K hholds buying (£39K for each of 6 brands)


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Residual lasting effect

Door drops have a much lower drop off rate

Following three slides sourced from DMA ‘Leaping off the Page’ seminar

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A promotion – a leaflet, envelope, sample, popped through the letterbox of carefully

selected households (type and area)

Remember what door drops are…

Remember what door drop marketing is…

It is advertising, targeted promotional advertising

If good, it will change consumer behaviour

Because it is ‘out of store’ before in store rush / no time


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SMART-Drop engages and intrigues more

than other Channels in Terms of Recall

33%

36%

40%

51%

51%

59%

60%

88%

Radio

Internet ads

Posters

Mail Direct

Newspaper/magazine ads

TV ads

Mail to occupier

Leaflets through door

Source: ITV/DMA research 2010


SMART-D

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Drop is the only marketing medium left where you fully control the targeting to achieve mass awareness amongst your target consumers for response and sales… through specific retailer outlets e.g.


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Objective – to drive sustainable sales growth in key stockists (increase hhold pen/trial & purchase frequency).

Activity - Promotional advertising leaflets were door-dropped to households targeted through Mosaic profiling and postal sector ranking in catchment areas of test Waitrose stores. Different voucher combinations & leaflet quantities were tested (1 x 30p, 2 x 30p, 1 x 50p, 2 x 50p: 10-20K leaflets per store). Total sales were measured in test stores versus control stores for the both the promotional period and a significant post promotional period to measure residual sales.

Results – varied by store from 8.3%-54.3% growth in the promotional period and, more importantly, 16%-50.3% in the residual period. This is very successful. The brand now has a powerful promotional formula to drive sales growth during the year.

"TBDA delivered an extremely effective

campaign, which was well targeted, planned and

implemented. Moreover, an identification of key

learnings combined with a thorough cost benefit

analysis has enabled us to plan for future activity with

a high degree of confidence as to its

success.“

Nick Munby, Marketing Manager, Daniels Chilled

Foods

Year 1-Waitrose


Proven by NCGS Management Accountants to create net extra profit

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Free to brand owners10 critical tips for creating successful door drop marketing:

Tip 1 – why do it (3 key benefits: media, trade/consumer, digital)

Tip 2 – internal positioning – choose right vocabulary

Tip 3 – targeting, who & why & where & when & how?

Tip 4 – what, ‘the message’, left-brain-right-brain?

Tip 5 – response, what do you want?

Tip 6 – shape, tactile (shaped leaflets, up to 6 x more response)

Tip 7 – online, new, use the leverage (e.g. QR codes)

Tip 8 – measure TOTAL sales (up to 8 x voucher % response)

Tip 9 – brief the supply chain to minimise ‘out of stocks’

Tip 10 – respect the environment (recycled or sustainable paper)

Extra free – once is not enough, strategic not tactical


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Emotive copy, 2 x time release vouchers for purchase urgency, digital online link – all 10 tips encapsulated

Year 2 - Waitrose

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Year 3 – Sainsbury’s (in Tesco catchment areas!)


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Other FMCG case studies


Two coupon values were tested, 50p off and a free jar (like a free sample). There were sales uplifts versus the control stores of between 16% and 270% over run rate

There was a 32% increase in Amoy sales in the 3 TV regions compared to the total country

Door-drop leaflets were distributed together with single serve samples.

In one area we tested TV (broadcast advertising) with Door-drop leaflets (direct advertising) and in another area Door-drop leaflets alone.

The former generated an extra 28% sales, the latter an extra 26% sales versus the ‘control’ stores,

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Customer / shopper marketing conundrum

In store

– Pos

– Till leaflets

– Posters

– Current dynamic – people living in smartphone!!

Out of store

– Store Magazine

– Door drop multi brand leaflets/coupons (not occasion based)

Engaging consumer needs combination of both PLUS occasion based emotional intrigue /identity with ‘occasion’ ,

for example…


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Occasion marketing examples

Sunday lunchAlfresco

BarbecueGirls night in

Entertaining etc.


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Occasion based targeted marketing - Summary 1

– SMART-Drop MARKETING & ADVERTISING

– Focus on retailer of choice

– Target households around that retailer

– Engagement & Traction metric

– More consumers using ‘occasion’

– Sense of urgency stimuli (voucher)

– (Online involvement integration)


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Which retailers do you want? Which households do you want? (Mosaic types)

Impulse is strong because higher margin - local purchase to trusted local outlet (national strategy, local implementation, pick all locals off)

Just down our street/road = local

Occasion based targeted marketing - Summary 2

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Conclusion - consumers still want traditional dm, despite what marketers think


353 marketers

1140 adults

SMART-Drop - New Covent Garden Soup

Business

Transcript of SMART-Drop - New Covent Garden Soup