promotion strategy for timotei (quarterfinal of case competition "changellenge russia...
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CaseBusters
Timotei promotion strategy
Yuriy Kotikov
Ilya Kuznetsov
Maksim Sofronov
Maxim Fedotov
Consumption per customer
Our primary objective is to increase Timotei market share by 1% through promotion activities by June 2014
Revenue
Items sold
Average price per item
Number of customers
Market Overview and Project Goals
Marketing
Campaign
Product line
External factors
Problem Structure
5%
77%
8%
4,5%
7%
To achieve this goal Timotei is to capture 4,5% of the Russian shampoo market by June 2014
Shamtu
Others
Shauma
Timotei
Pure line
• The market is highly saturated which means market share gain can be achieved only by stealing share from competitors
• Timotei is in the middle price segment. Its main competitors are Pure line, Shamtu and Shauma, with Pure line being a part of Unilever’s portfolio
• Timotei has reached maturity and needs promotion campaign to retain customers migrating to other segments
1 249
1 078
916
2012
+36%
2013 2014
This implies a 36% increase in revenues, million rub.
Major Events Continuous
Advertising Activities
• media co-branding
• accompanying events
• accompanying
advertising activities
advertisements through:
•TV
•Internet
•Print Media
•Metro, etc.
Marketing is one of the factors driving revenues through changing the number of customers and consumption per customer
Sources: Case «Changellenge: Russia 2012», analysis by CaseBusters
Timotei promotion strategy Changellenge Russia 2012 CaseBusters
In developing the promotion strategy we have analyzed the co-branding opportunities on the Russian Market with regard to film releases
Sources: Case «Changellenge: Russia 2012», analysis by CaseBusters * see appendices 2,3 for analysis
Co-branding Rationale
0,80 0,85 0,90 0,95 1,00
Strategic fit*
0,9
0,8
0,7
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0,5
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0,2
1,0
Movies Index*
10
Ice age 4
8
7
6 Madagasсar 3
4
Monsters University
Brave
1
Strategic fit of Timotei with the film release is essential for ensuring successful promotion campaign
A Movies Index reflects the potential of a film to cover the target audience and shows the most attractive films in terms of co-branding opportunities
Brave is a family cartoon featuring a girl with bright red hair, which is the best fit for Timotei. Besides, we have already successfully cooperated with Disney
Ice Age 4 featuring beloved characters, viz. Scrat, will attract broad audience and boost sales.
Monsters University
story may be used to promote Timotei through charismatic characters
Madagascar 3 will ensure the commercial success as the characters are well-known to the audience and will boost brand loyalty
Disney
Paramount Pictures
20th Century
Universal Pictures
Warner
Sony
1. Planes
4. Snow White
6. Rise of the Guardian
7. How to train your Dragon 2
8. Hobbit
10. Hotel Transylvania
Legend
0,150,15
0,150,10
0,150,20
0,10
1,00
Franchise Stars involved
Target Audience
Film Expectancy
rate
Genre Budget Release Date
Index
Targeted films
Timotei promotion strategy Changellenge Russia 2012 CaseBusters
Analysis reveals that Timotei’s primary promotion channels shall be TV, Print media, Internet and Subway
Promotion Channels
Timotei’s target audience: moderate income families and bachelors (mainly women)
Shampoo consumers can be divided on the basis of several criteria: price sensitivity, importance of brand and quality
0,0
0,1
0,2
0,3
0,4
0,5
0,6
0,7
0,8
0,9
1,0
0,0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1,0 1,1
Price sensitivity
Elderly people
Moderate income families
Wealthy families
Moderate income bachelors
Wealthy bachelors
Importance of brand and quality
Internet
73
Print Media
70
Radio
50
TV
65
Cinema
Audience coverage
Utility
Popularity growth
Perception
Affinity 53
Subway
75
OOH**
58
Promotion channel efficiency index*
Channel efficiency is a function of such factors as affinity, audience perception, information utility, channel popularity and audience coverage
Subway
Internet
Print Media
TV Enormous TV audience outweighs moderate watchers’ perception and affinity
Print media is an equally attractive promotion channel in all respects considered
Subway provides extreme concentration of target audience and its decent perception
Internet’s penetration has been constantly growing lately with reasonable affinity and perception
Sources: Case «Changellenge: Russia 2012», analysis by CaseBusters * - see Appendix 4, ** - worth considering
Timotei promotion strategy Changellenge Russia 2012 CaseBusters
Two co-branding campaigns with films «Brave» and «Monsters’ University» by Disney will lead to Timotei’s significant increase in market share
Co-branding Campaigns
Buy stickered Timotei
Get a prize for 2 stickers
Register sticker on the web site
Get a better prize and a chance to win iphone for 5
Final family event
Take part in the video contest
• 1,6mln SKU will participate in promotional campaign with uplift accounting for 680k SKU.
• Main contest will involve sending a clip about a brave thing you have done with a trip to Scotland as the
ultimate prize
• More than 40000 low-priced and 15000 middle-priced prizes at participant’s option as well as 165 iPhones and
a trip to Edinburgh will be awarded
• Final family event will include funny competitions, family activities and iphone winners announcement
Promotion channel efficiency index*
Joint advertising campaign with Disney’s film «Monsters’ University» will result in 150m. rub. sales growth
Co-branding with Disney’s film «Brave» in Summer 2012 will increase Timotei sales by additional 115m. Rub.
1 Jun 2012 20 Aug 2012
Buy stickered Timotei
Get a prize for 2 stickers
Register sticker on the web site
Get a chance to gain a better prize for 4
Brochure with best photos
Take part in the photo contest
• 2,15mln SKU will participate in promotional campaign with uplift accounting for 780k SKU.
• Main contest will involve sending photos with people dressed like monsters with a family car as the main prize.
• More than 53000 low-priced and 26000 higher-priced prizes as well as a family car will be awarded
• When the campaign is over the photo gallery will be created in Flickr to capture memorable moments
1 Jun 2013 1 Aug 2013
H
TV
Internet
Print Media
Subway
• Total number of broadcasts will
be around 850 distributed
among Ch1, Russia 1, NTV,
TNT
• Extensive banner and
contextual advertising through
social networks and most visited
sites like Yandex.ru and mail.ru
• Double-page spreads in
Cosmopolitan and Liza
magazines as well as ads in
other printed media sources
targeted at our prospective
buyers
• Placing banners with film
characters at advertising boards
above escalators and inside
metro cars will allow Timotei to
reach its target audience
Sources: Case «Changellenge: Russia 2012», analysis by CaseBusters
Timotei promotion strategy Changellenge Russia 2012 CaseBusters
Continuous advertising activities require 40 million rubles a year that will be distributed among the four major advertising channels
TV Channel (2012-2013)
№ of ads Cost, rubles
1TV 146 9 396 000
Russia1 94 3 523 500
NTV 99 3 523 500
TNT 248 5 872 500
Domashniy 109 1 174 500
Total 696 23 490 000
2014
91%
9%
2010
94%
6%
Others
Timotei
TV shampoo ad market share is to be increased to 9% and 23.5 m and 21.6 m respectively is allocated for these purposes
Timotei TV shampoo ad share
Internet is growing in popularity and 4.8 m is allocated yearly to advertising through this channel
Mail.ru
Odnoklassniki
Vkontakte
Internet advertising
60%
27%
13% * Vkontakte – 10 m targeted appearances throughout 6 months Sept-Jan each year * Odnoklassniki – 24 packages of 1.2 m weekly appearances (6 months total) * Mail.ru – package Russia 45 m 4 times (before bank holidays)
Print Media will remind the customers about our brand, with 7,8 m and 7,2 m distributed each of the two years.
Subway is an effective means of targeting current/would-be customers and 3.9 m and 3.6 m will be allotted to this means of advertising
• Lisa attracts our customers. Advertising in this magazine is highly targeted • Buying 1/3 column for 26 issues (6 months, autumn-winter) will smoothen the drop in demand for Timotei after the Major Event set for Summer
2012-2013 2013-2014
1/3 column
270000 270000
Weeks 26 26
Cost 7.02 m 7.02 m
Budget 7.83 m 7.2 m
Koltsevaya Line 2012-2013 2013-2014
Number of cars to use 35 32
Places in car 106 106 Number of places 3710 3392
Cost per place (BEND) 955 955
Total cost for ads 3543050 3239360
Number of ads sets 37,1 33,92
Cost of set 8580 8580
Total costs for sets 318318 291033,6
Reminder 53632 69606,4
Sources: Case «Changellenge: Russia 2012», analysis by CaseBusters * see appendix 5 for analysis
Timotei promotion strategy Changellenge Russia 2012 CaseBusters
Spending 200m. rub. on co-branding and continuous promotion will allow Timotei to boost its sales to 1250m. rub. and to capture a 4,5% market share by June 2014
Promotion Cost
Economic Effect
124 850 000
Promotion cost
200 000 000
3 750 000 7 500 000
7 500 000
15 000 000
41 300 000 75 050 000 3 750 000
9 200 000 9 200 000
18 300 000
50 500 000
33 000 000
Prizes
Continuous promotion
TV Print Media Internet Subway Others
1 200
0
900
2014 2013 2012 2011
Continuous promotion
Base-line
Co-branding • By June 2014 co-branding and continuous
promotion will contribute 250m. rub. and 100m. rub. respectively to the Timotei revenue
• Proposed promotion campaign will ensure
meeting project goals by June 2014
1250
Promotion campaign contribution to sales, m. rub.
Timotei promotion costs structure, rub.
Co-branding
Sources: Case «Changellenge: Russia 2012», analysis by CaseBusters
Timotei promotion strategy Changellenge Russia 2012 CaseBusters
CaseBusters
Yuriy Kotikov Ilya Kuznetsov Maksim Sofronov Maxim Fedotov
• Last year students of Economic faculty of MGIMO
Changellenge Moscow 2011 winner
Changellenge Moscow 2011 winner
McKinsey Business Diving 2012 semifinalist
McKinsey Business Diving 2012 semifinalist
Appendix 1 Projected growth of the market and Timotei vs. Competitors (incl. Marketing Strategy)
Source: Case «Changellenge: Russia 2012», analysis by CaseBusters
Timotei promotion strategy Changellenge Russia 2012 CaseBusters
Brands Value (RUR)/Year(2011) Projected Value
(RUR)/Year(June 2012) Projected Value
(RUR)/Year(June 2013) Projected Value
(RUR)/Year(June 2014)
Timotei 889140000 915814200 1078044144 1249183652
Чистая линия 2032320000 2093289600 2111169782 2128238814
Shauma 1778280000 1831628400 1841658746 1850642447
Shamptu 1270200000 1308306000 1302636674 1295449713
Total competitors 5969940000 6149038200 6333509346 6523514626
Value (RUR)/Year(2011) Projected Value
(RUR)/Year(June 2012) Projected Value
(RUR)/Year(June 2013) Projected Value
(RUR)/Year(June 2014)
Russian Market 25404000000 26166120000 26951103600 27759636708
Assumptions:
Market growth rate 3% per annum
Inflation of prices 0%
Appendix 2 Movies Index and Strategic fit analysis
Factor Description Weight
Release date reflects whether a film is running in the seasonal peak (holidays, summer etc.) 10%
Budget matters as an indicator of how much is spent on marketing 20%
Genre shows whether a film fits the co-branding purposes 15%
Film Expectancy Rate is the percentage of people waiting for the film release 10%
Target audience determines what kind of audience the film will capture 15%
Stars involved attract additional attention 15%
Franchise depending on its previous success may influence the further popularity 15%
Total 100%
Factors considered Description
Character Image Will the characters of a film be suitable for advertising Timotei?
Plot peculiarities What a film is about. Is the plot fit for the advertising purposes?
Style Will a film encourage positive attitude towards the ad of Timotei?
Synergies with studios
Have we been developing mutual relations with the studio that released a film?
Source: Case «Changellenge: Russia 2012», analysis by CaseBusters
Timotei promotion strategy Changellenge Russia 2012 CaseBusters
Studio Film Name Release Date Release Budget Genre Expectancy Rate Target Audience Stars Involved Franchise Rating
Disney Wreck-it-Ralph November 1st, 2012 0,1 0,15 0,15 0,097 0,15 0,05 0,1 0,797
Disney Beauty and the beast Spring, 2012 0 0,05 0,15 0,092 0,15 0,05 0,15 0,642
Disney Planes August 31st, 2012 0,1 0,2 0,15 0,088 0,15 0,05 0,1 0,838
Disney Brave June 21st, 2012 0,1 0,2 0,15 0,085 0,15 0,15 0,1 0,935
Disney Monsters University June 21st, 2013 0,1 0,2 0,15 0,089 0,15 0,15 0,15 0,989
Disney Frankenweenie October 4th, 2012 0,05 0,15 0,15 0,085 0,1 0,15 0,1 0,785
Universal Pics Snow white June 14th, 2012 0,1 0,2 0,1 0,083 0,1 0,15 0,15 0,883
Universal Pics Battleship April 19th, 2012 0 0,15 0,05 0,044 0,1 0,1 0,05 0,494
Paramount Pics Titanic April 1st, 2012 0 0,2 0,05 0,087 0,15 0,15 0,15 0,787
Paramount Pics The Avengers May 3rd, 2012 0 0,2 0,1 0,092 0,1 0,15 0,15 0,792
Paramount Pics Madagascar June 7th, 2012 0,1 0,2 0,15 0,083 0,15 0,15 0,15 0,983
Paramount Pics Fun size October 11th, 2012 0,05 0,15 0,15 0,096 0,1 0,1 0,05 0,696
Paramount Pics Katy Perry Jule 5th, 2012 0,1 0,1 0,05 0,078 0,1 0,1 0,05 0,578
Paramount Pics Rise of the guardian 0,05 0,2 0,15 0,08 0,15 0,15 0,05 0,83
Paramount Pics The Guilt Trip 0,1 0,05 0,1 0,096 0,1 0,05 0,05 0,546
Paramount Pics Hansel and Gretel: 0,05 0,1 0,05 0,086 0,05 0,05 0,05 0,436
Paramount Pics Iron man 3 0,1 0,2 0,05 0,089 0,05 0,15 0,15 0,789
Paramount Pics Transformers 4 June 27, 2014 0,1 0,2 0,05 0,086 0,05 0,15 0,15 0,786
Paramount Pics How to Train Your Dragon 2 June 20th, 2014 0,1 0,2 0,15 0,094 0,15 0,05 0,1 0,844
Warner The Lucky One May 17th, 2012 0 0,05 0,05 0,081 0,1 0,1 0,05 0,431
Warner The Seventh Son February 14,2013 0,1 0,1 0,15 0,085 0,15 0,15 0,05 0,785
Warner The Hobbit: December 20th, 2013 0,1 0,2 0,1 0,093 0,1 0,15 0,15 0,893
20th Century Robopocalypse Jule 3, 2013 0,1 0,2 0,05 0,09 0,05 0,15 0,05 0,69
20th Century Leafmen 3D May 30, 2013 0,1 0,15 0,15 0,09 0,15 0,05 0,05 0,74
20th Century Parental Guidance November 22nd, 2012 0,05 0,1 0,15 0,094 0,1 0,05 0,05 0,594
20th Century Ice Age 4 Jule 12th,2012 0,1 0,2 0,15 0,086 0,15 0,1 0,15 0,936
Sony Hotel Transylvania Ocotber 18th, 2012 0,05 0,15 0,15 0,081 0,15 0,15 0,1 0,831
Sony The Pirates! Band of Misfits April 26th, 2012 0 0,1 0,15 0,092 0,15 0,15 0,1 0,742
Sony Premium Rush October 11th, 2012 0,05 0,1 0,05 0,086 0,05 0,15 0,05 0,536
Appendix 3 Movies Index calculation
Source: Case «Changellenge: Russia 2012», analysis by CaseBusters
Timotei promotion strategy Changellenge Russia 2012 CaseBusters
Appendix 4 Promotion channel efficiency index
Factor Scale Weight
Affinity 0 – 20% 20%
Perception 0 – 20% 20%
Utility 0 – 20% 20%
Channel’s popularity growth
0 – 20% 20%
Channel’s audience 0 – 20% 20%
Total 100%
Source: Case «Changellenge: Russia 2012», analysis by CaseBusters
Timotei promotion strategy Changellenge Russia 2012 CaseBusters
Channel Affinity Perception Utility Popularity growth Audience TOTAL
TV 14,5 9,1 15,0 6,5 20,0 65,1
Radio 15,1 15,6 4,0 5,2 10,0 49,9
Print media 16,5 17,8 20,0 2,9 13,3 70,5
Internet 14,6 13,1 12,0 20,0 13,3 73,1
OOH 17,0 18,2 8,5 5,7 8,3 57,8
Subway 20,0 20,0 15,0 11,8 8,3 75,1
Cinema 17,4 13,3 10,0 8,6 3,3 52,6
Appendix 5 TV efficacy analysis and benchmarking of competitors’ TV activities
Brand Total
Communication
TV Magazines Posters In-store Activity
H&S 65% 64% 7% 4% 10%
Pantene 63% 60% 9% 3% 9%
Clear 61% 60% 10% 4% 12%
Dove 60% 58% 11% 4% 12%
Timotei 58% 56% 8% 5% 11%
Sunsilk 56% 54% 8% 4% 11%
Gliss Kur 49% 46% 6% 2% 5%
Fructis 49% 47% 5% 2% 6%
Shauma 44% 42% 4% 1% 5%
Shamtu 39% 37% 3% 0% 4%
Media Correlation
Communication/Media Priority
TV 0,997391366 1
Magazines 0,852823035 4
Posters 0,87643039 2
In-store activity 0,862397187 3
TV is the most efficient tool in terms of communicating brand messages
to customers, billboards coming second together with in-store activities.
H&S and Pantene have been able to increase their market share
through extensive presence on TV. Benchmarking is a useful tool in
determining the TV advertising strategy Timotei should follow.
TV activity GRPs
2009 2010 Change
Dove 1500 2100 40%
Sansilk 3200 2350 -27%
Timotei 2000 3300 65%
Clear 5100 5100 0%
Pantene 5800 6950 20%
H&S 7050 7200 2%
Shamtu 2050 1500 -27%
Clairol 2700 1000 -63%
Fructis 7900 6100 -23%
Elseve 7200 6600 -8%
Garnier 0 3800 -
Nivea 3400 3550 4%
Shauma 3500 4100 17%
Gliss Kur 3500 4100 17%
Syoss 2000 3200 60%
Pure line 2375 5100 115%
Others 0 1700 -
Brand Share of TV shampoo
advertising market
Pantene 12%
H&S 11%
Timotei 6%
Source: Case «Changellenge: Russia 2012», analysis by CaseBusters
Timotei promotion strategy Changellenge Russia 2012 CaseBusters