FMCG effective communication drivers

Sergey Matveyuk, Analytics & Insights DirectorBrandscience

FMCG from Media point of view

The consumer considers an initial brands, based on brand perceptions and exposure to recent touch points

Consumers add subtract brands as they evaluate what they want

After purchasing a product or service, the consumer builds expectations based on experience to inform the next decision journey

Ultimately, the consumer select a brand at the moment of purchase

Info search playsa small role in grocery

~12%did some researchprior to purchase

Product purchase cycle

Package | Brandname

Impulse | planned purchase

Retail | Private labels

…

Brand Awareness (TOM)Recency or Flighting

FMCG from Media point of view

The consumer considers an initial brands, based on brand perceptions and exposure to recent touch points

Consumers add subtract brands as they evaluate what they want

After purchasing a product or service, the consumer builds expectations based on experience to inform the next decision journey

Ultimately, the consumer select a brand at the moment of purchase

Product purchase cycle

Package | Brandname

Impulse | planned purchase

Retail | Private labels

…

FMCG from Media point of view

Brand Awareness (TOM)Recency or Flighting

The consumer considers an initial brands, based on brand perceptions and exposure to recent touch points

Consumers add subtract brands as they evaluate what they want

After purchasing a product or service, the consumer builds expectations based on experience to inform the next decision journey

Ultimately, the consumer select a brand at the moment of purchase

Product purchase cycle

Package | Brandname

Impulse | planned purchase

Retail | Private labels

…

FMCG from Media point of view

Product demonstrationVideo + Audio

Brand Awareness (TOM)Recency or Flighting

FMCG from Media point of view

Product purchase cycle

Package | Brandname

Impulse | planned purchase

Retail | Private labels

…Impulse

FMCG

Occasional

Consumer Durables

RoutinePlanned Brand Awareness (TOM)Recency or Flighting

Product demonstrationVideo + Audio

FMCG from Media point of view

Product purchase cycle

Package | Brandname

Impulse | planned purchase

Retail | Private labels

…Impulse

FMCG

Occasional

Consumer Durables

RoutinePlanned Brand Awareness (TOM)Recency or Flighting

Product demonstrationVideo + Audio

FMCG from Media point of view

Product purchase cycle

Package | Brandname

Impulse | planned purchase

Retail | Private labels

…Impulse

FMCG

Occasional

Consumer Durables

RoutinePlanned

Brand Awareness

Rational benefits

Quality reassurance

Brand Awareness

Differentiation from competitors

Reminder

OOH

VNP CinemaOnline

Special projectVNP

TV

Brand Awareness (TOM)Recency or Flighting Product demonstrationVideo + Audio

Multymedia Image building (rational or emotional)

Impulse

FMCG

Occasional

Consumer Durables

RoutinePlanned

Brand Awareness

Rational benefits

Quality reassurance

Brand Awareness

Differentiation from competitors

Reminder

OOH

VNP CinemaOnline

Special projectVNP

TV

Pri

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Lab

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Mar

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Total FMCG - Private Label (PL) Share and Evolution

PL VALUE share 2012 and share evolution vs. year ago PL UNIT share 2012 and share evolution vs. year ago

FMCG from Media point of view

Product purchase cycle

Package | Brandname

Impulse | planned purchase

…Retail | Private labels

http://www.iriworldwide.eu/Portals/0/articlepdfs/PrivateLabel/PrivateLabel_2012_FullReport_Final.pdfhttp://www.pwc.ru/ru_ru/ru/retail-consumer/assets/private-labels-eng-may2011.pdf

Brand Awareness (TOM)Recency or Flighting Product demonstrationVideo + Audio

Multymedia Image building (rational or emotional)

Pri

vate

Lab

el S

har

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f To

tal

Mar

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Total FMCG - Private Label (PL) Share and Evolution

PL VALUE share 2012 and share evolution vs. year ago PL UNIT share 2012 and share evolution vs. year ago

FMCG from Media point of view

Product purchase cycle

Package | Brandname

Impulse | planned purchase

Retail | Private labels

…

Private Labels discount vs. Branded

~30%

The level of penetration

of Private Labels in Russia doesn’t exceed

3%

Multymedia Image building (rational or emotional)

Brand Awareness (TOM)Recency or Flighting Product demonstrationVideo + Audio

Communication / Reminder close to POS

FMCG from Media point of view - IMPLICATIONS

Multymedia Image building (rational or emotional)

Brand Awareness (TOM)Recency or Flighting Product demonstrationVideo + Audio

Communication / Reminder close to POS

IMPLICATIONS – Insight Focused

Multymedia Image building (rational or emotional)

Brand Awareness (TOM)Recency or Flighting Product demonstrationVideo + Audio

Communication / Reminder close to POS

• Energy drinks MARKET was OCCUPIED mostly by 3 strong players and few others cheap analogues;

• Players were mostly communicated in sport, extreme and creative/fun areas;

• There was launched new brand at the end of 2012 – E-ON – that is about dynamic lives in megapolis, full of EXPERIENCEs, emotions and VITALITY;

• So it was a key challenge to SET UP a new NICHE for the product and keep there leadership position;

• To succeed challenge, communication strategy was separated on two parts: BUILDing brand AWARENESS and CREATing right brand POSITIONING.

E-ON. LIFE’S ONlaunch of new energy drink

NATIONAL TV Perviy channel, STS, TNT, NTV

NONAIR TVRBC, Moscow-24, Russia-24, Rain, Discovery Channel and others

INTERNETEsquire, Slon, Timeout, Afisha, Facebook and others

PRINTForbes, Harvard Business Review, Esquire, GQ and other

OOH

E-ON. LIFE’S ONSTAGE I: build brand awareness

NATIONAL TV: Perviy channel - integration with sponsor spots into “Gorodskie pijoni”

INTERNET: LookAtMe - Creating unique branded stream ‘Move on’ with regular posting about people who gain the goal

EVENTS – PARK LIVECreating multifunctional zone ‘E-ON Smart Park’ where people can look though relevant TA magazines, get detailed info about fest and use ON gadgets

EVENTS – PICNIC.AFISHAExecuting special multimedia space in collaboration with Hopes & Fears and Silver Rain

E-ON. LIFE’S ONSTAGE II: create right brand positioning

IMPLICATIONS – Video Neutral Planning

Multymedia Image building (rational or emotional)

Brand Awareness (TOM)Recency or FlightingProduct demonstrationVideo + Audio

Communication / Reminder close to POS

Brand Health & Ad Performance Monitoring

IMPLICATIONS – Data Driven

Image building (rational or emotional)

Brand Awareness (TOM)Recency or Flighting Product demonstrationVideo + Audio

Communication / Reminder close to POS

Insight FocusedMedia Optimized

Data Driven

Video Neutral Planning

Video Neutral Planning

Video Neutral Planning

Video Neutral Planning

Video Neutral Planning

PROCTER & GAMBLE 25,6%

DANONE 17,3%

MARS-RUSSIA 10,9%

UNILEVER 8,7%

L'OREAL 6,6%

MONDELEZ 5,7%

HENKEL GROUP 5,3%

PHILIP MORRIS 3,6%

BEIERSDORF 2,9%

JAPAN TOBACCO INC. 2,7%

Other 10,7%

Video Neutral Planning

8%Share of FMCG

spends in digital