Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 2
A welcome note
For most beer producers in Russia promotion activities account for a considerable part of total marketing spends. In Y2009 spring to autumn season 17 national-level campaigns have been carried out in beer category; in June 12 promotions were run simultaneously. It’s a time when it is becoming more and more difficult to get a consumer attention and succeed in getting a positive ROI.
With this in mind, Bojole research – an expert in promo measurement – in Y2009 initiated a massive consumer research among Russian beer consumers with a specific objective to evaluate all the promotions in the category. The study was conducted on a continuous basis April-09 to October-09 covering the most heavy season in promo activities of beer producers.
Attached is the report summarizing performance of one of the beer promo campaigns - Löwenbräu Oktoberfest national promotion. We are sharing this sample report on a free basis with all beer producers. Similar analytical reports could be purchased for any beer brand under promotion in Y2009.
The standard report covers promotion performance compared to industry norms in terms of traditional metrics (awareness level, participation level, overall likeability, uniqueness, relevance, ease to understand, trustworthiness, word-of-mouth and fit to brand, prizes relevance and uniqueness) as well as three exclusive Bojole PromoIndex™ metrics developed to measure ROI: incremental volume generated by a promotion, sources of incremental volume and derived importance of promo prizes.
We hope you enjoy this report. Please feel free to give feedback on this study, as we will continue this in Y2010 and want to make sure that it is addressing the needs of all our clients and partners.
Alex Lomizov, Research Director For more information please contact me at: [email protected] or +7 495 662-8928 ext.101
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 3
Contents
Executive summary 4
Promotion details 7
Awareness, participation and business effect Promo awareness, participation, intention to participate Incremental volume in transactions and per cent of sales volume Modeling at 30%, 40%, 50% awareness levels Sources of incremental volume
9
Promo performance Overall liking, Uniqueness, Relevance, Ease to understand, Trustworthiness, Word-of-mouth, Fit to brand
21
Performance of promo prizes Overall liking, Uniqueness, Relevance, Mechanics liking Derived importance of promo prizes
38
Methodology 49
Terms referenced in the study 50
Contacts 51
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 4
Executive Summary (1/3)
For details, see slide:
— Löwenbräu promotion has started under strong competitive pressure — Four more beer promotions were launched the same week — Thirteen promotions overlapped with Löwenbräu within May-June
— As a result of promo efforts, 28% of May-June Löwenbräu sales could be attributed to the Oktoberfest promotion
— Business effect is at average level in volume terms — Keeping in mind size of the brand the outcome is substantial, though far below
the best results demonstrated by … and … — Incremental has been mainly sourced from Baltika 3, Heineken and Stary Melnik
— Löwenbräu promotion achieved 17% awareness at national level — This is below average observed in May-June and far below three leading
promotions (17% vs. 45%-48%) — Lower awareness resulted in rather low participation (1%) — However, those who are aware of the promo show participation and participation
intent rates comparable to the leaders; therefore, lack of awareness is the major weakness of the promotion
— Worth to note, participation intent rates among those who are aware are flat across gender, age and cities groups
7
16 19 18
10 12 15 14
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 5
Executive Summary (2/3)
For details, see slide:
— In terms of concept and execution Löwenbräu promotion performs rather well, achieving industry average level with most indicators:
— Excellent connection with the brand (78% Top2Boxes vs. 73% avg) — Acceptable relevance and trustworthiness
(relevance: 36% Tob2Boxes vs. 33% avg; trustworthiness: 50% Top2Boxes vs. 49% average)
— As for the prizes, six-packs appeared to be the main drivers for participating in the promotion; in terms of attractiveness Löwenbräu six-packs are ranked 7th among all 61 secondary prizes across all Y2009 promos
— At the same time the main prize—trip to Oktoberfest—which have been used as a core of Löwenbräu promotions for several years, lacks relevance and uniqueness
— Main prize performance obviously constrains overall promo performance; having the main prize perceived outdated, the promotion concept as well lacks novelty and uniqueness
37 35 29 31 47 44 42 25
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 6
Executive Summary (3/3)
— Löwenbräu has to reinvent and redevelop Oktoberfest concept which is the core of current promotion and of the main prize. Traveling in general and travel to Oktoberfest in particular becomes less and less exciting and unique, and therefore less capable to inspire consumers and generate incremental sales.
— Beer per se is the obvious winner in relevance for a beer consumer. Besides, the major source of Löwenbräu six-packs success as secondary prize in Y2009 promotion is the unique size of the prize (180 cans and 600 cans) and reasonable prize pool. Therefore, this design could be recommended for further promotions.
— High promo awareness is the key to achieve high incremental volume. Awareness is a weak point of Löwenbräu Y2009 promotion. Incremental modeling shows that even with current concept and execution awareness uplift of 13pts would have doubled incremental volume, awareness uplift of 33pts would have increased incremental by four times.
— Early start of a promotion is a clear advantage under heavy competitive pressure. And each week matters. While planning a promotion for a heavy season, creative media communication and up-to-date and unique concept/prizes become of a particular importance.
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 7
44 43 42 41 40 39 38 37 36 35 34 33 32 31 30 29 28 27 26 25 15 14
Sep Aug July June May Apr Oct 24 23 22 21 20 19 18 17 16
Stary Melnik
Klinskoe
Baltika 3
Kaltenberg
Zlaty Bazant
Stella Artois
Tuborg
PIT
Bavaria
BagBier
Carlsberg
Ochakovo
Tolstyak
Brahma
Löwenbräu
Sibirskaya korona
Velkopopovicky kozel
17 on-season promotions have been running in Y2009
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 8
Description of Löwenbräu Oktoberfest promo
Timing
SKUs under promo
Löwenbräu main prize
Secondary prizes
01.05.2009 till 30.06.2009
Glass bottle 0.5l
Prize: 7-days trip to Oktoberfest (Munchen) for two persons Mechanics: Collect max codes
Prize: Branded mug Mechanics: Collect & get (30 codes) Prize pool: 4 500 prizes
Prize: Branded T-shirt Mechanics: Collect & get (50 codes) Prize pool: 2 000 prizes
Prize: 30 Löwenbräu six-packs Mechanics: Contest (internet game) Prize pool: Draw each week
Prize: 100 Löwenbräu six-packs Mechanics: Contest (internet game) Prize pool: Draw once at the end of promo
Prize: 100RUB on mobile Mechanics: Collect & get (collect 20 codes among first 500) Prize pool: 500 winners each week
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 10
Promo awareness A performance comparison to industry norms
0%
10%
20%
30%
40%
50%
60%
June-09
18%
May-09
16%
Max level: 48% Max level: 45%
Min level: 9%
Min level: 15%
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 11
Promo awareness A performance within subgroups
0%
10%
20%
30%
40%
50%
60%
18% 17% 14%
18%
25-34 YO
19%
35-45 YO
16%
Capitals
18%
Regions
17%
18-24 YO Females Males Total sample
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 12
Promo participation A performance comparison to industry norms
Max level: 4% Max level: 3%
0%
5%
10%
15%
20%
June-09
0,3%
May-09
1,4%
Base: all beer consumers
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 13
Promo intention to participate A performance index comparison to industry norms
Max level: 22%
Max level: 18%
30%
20%
10%
0%
June-09
6%
May-09
14%
5%
15%
25%
Min level: 5%
Min level: 8%
Base: aware of Löwenbräu promo
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 14
Promo intention to participate A performance index within subgroups
0%
10%
20%
30%
10%
Total sample
11%
Males
10%
Females
11%
18-24 YO
8%
25-34 YO
11%
35-45 YO
11%
Capitals
9%
Regions
Base: aware of Löwenbräu promo
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 15
Awareness and participation in May-June A performance comparison to industry norms
Participation among
aware of promo
Promo awareness
Sibirskaya korona
17%/5% Löwenbräu
Industry avg. in May-June
Industry avg. in May-June
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 16
Incremental volume generated by promo campaign in average number of transactions per beer consumer per month
0,310,09
0,22
Total Löwenbräu
volume (May-June)
Löwenbräu incremental
volume
Löwenbräu base
volume (May-June) due to Oktoberfest
promotion
Löwenbräu Oktoberfest promotion has generated incremental volume of 0.09 transactions per beer consumer per month that accounted for 28% of total Löwenbräu sales in May-June
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 17
Löwenbräu incremental volume estimation at 30%, 40% and 50% awareness levels
0,22 0,22 0,22 0,22
0,28E
0,42E
Base volume
Incremental volume
0,59E
0,37E
0,50E
0,09 0,20E 0,31
50%40%
30%17%
Awareness
Actual achieved
in May-June
E E E
Total volume
The modeling provides estimation of potential ROI on media spends.
At 30% promo awareness Löwenbräu could always double base volume in May-June.
At 50% awareness Löwenbräu promo could increase brand sales volume in May-June almost three times.
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 18
Sources of Löwenbräu incremental volume
Base volume
Incremental volume
Löwenbräu volume in May-June
0,31
0,22
0,09
27%20%
Baltika 3
37% Other
17%
Heineken
Stary melnik
Total volume
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 19
Promo Incremental Volume in transactions A performance comparison to industry norms in May-June
0,010,03
0,06
0,090,11
0,29
0,32
May-June Industry avg
0,13
Löwenbräu
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 20
Promo Incremental Volume as % of total brand sales A performance comparison to industry norms in May-June
17%
28%32%
41%46%
56%57%
May-June Industry avg
40%
Löwenbräu
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 22
Promo overall likeability A performance comparison to industry norms
52%
Industry avg 53%
Max 63%
Löwenbräu
Min 42%
Top2Boxes on 5-point scale
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 23
Promo overall likeability A performance within subgroups
Top2Boxes
Top1Box 5%
52%
Total sample
6%
55%
Males
4% 6%
51%
25-34 YO
6%
50% 53%
3%
Females
46%
4%
52%
Regions
52%
6%
Capitals 35-45 YO
18-24 YO
5-point scale
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 24
Promo overall likeability A performance compared to industry average in subgroups
-5pts
-4pts
-9pts
-8pts
-4pts
-7pts
Capitals Regions
Males Females
18-24 YO 25-34 YO 35-45 YO
Light users Medium users
+4pts Heavy users
Low income +8pts Mid-high income
Secondary education High education
Married Single
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 25
Promo uniqueness A performance comparison to industry norms
67%Löwenbräu
Industry avg 61%
Max 78%
Min 42%
Top2Boxes on 5-point scale
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 26
Promo uniqueness A performance within subgroups
Top1Box
Top2Boxes
Regions
64%
7%
Capitals
71%
17%
35-45 YO
69%
13%
25-34 YO
67%
8%
18-24 YO
65%
15%
Females
61%
13%
Males
70%
11%
Total sample
67%
12%
55%
5-point scale
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 27
Promo relevance A performance comparison to industry norms
36%
Industry avg 33%
Löwenbräu
Max 41%
Min 24%
Top2Boxes on 5-point scale
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 28
Promo relevance A performance within subgroups
Top1Box
Top2Boxes
Regions
9% 2%
Males 18-24 YO
Capitals
36%
5%
Total sample
33% 36% 39%
30%
40%
25-34 YO
30%
Females
44%
7% 3% 6% 5% 4%
35-45 YO
5-point scale
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 29
Promo ease to understand A performance comparison to industry norms
78%
Min 72%
Löwenbräu
Max 81%
Industry avg 77%
Top2Boxes on 5-point scale
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 30
Promo ease to understand A performance within subgroups
21%
78%
Total sample
23%
74%
Males
17%
84%
Females
69%
35-45 YO
30%
88%
Capitals
12%
69%
Regions
Top2Boxes
Top1Box
77%
18%
18-24 YO
86%
24% 20%
25-34 YO
5-point scale
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 31
Promo trustworthiness A performance comparison to industry norms
50%
Industry avg 49%
Löwenbräu
Min 38%
Max 58%
Top2Boxes on 5-point scale
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 32
Promo trustworthiness A performance within subgroups
Males
10%
51%
Females
12%
49%
18-24 YO
11%
49%
63%
39%
Top1Box 20%
Capitals Regions 35-45 YO
25-34 YO
4%
Top2Boxes
11%
46%
Total sample
50%
11%
53%
12%
5-point scale
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 33
Promo word-of-mouth A performance comparison to industry norms
23%Löwenbräu
Industry avg 24%
Min 15%
Max 35%
Top2Boxes on 5-point scale
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 34
Promo word-of-mouth A performance within subgroups
5%
24%
Males
5%
20%
Females
5%
28%
9%
35%
Capitals
2%
35-45 YO
5%
23%
Total sample
6%
25-34 YO
21%
Top2Boxes 12%
Regions
Top1Box 4%
18-24 YO
19%
5-point scale
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 35
Promo fit to brand A performance comparison to industry norms
78%
Min 50%
Industry avg
73%
Löwenbräu
Max 82%
Top2Boxes on 5-point scale
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 36
Promo fit to brand A performance within subgroups
Total sample
76%
Males Females 18-24 YO
25-34 YO
19%
76%
35-45 YO
24%
79%
21%
Capitals
78%
20% 20% 26%
76% 81%
17%
80%
Top1Box 15%
Top2Boxes
76%
Regions
5-point scale
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 37
Promo performance Summary of key indicators vs. industry average
Löwenbräu performance vs. industry average
Löwenbräu place in rating
Overall likeability, Top2 -1pts 9th out of 17
Uniqueness, Top2 +6pts 5th
Relevance, Top2 +3pts 7th
Ease to understand, Top2 +1pts 6th
Trustworthiness, Top2 +1pts 7th
Word-of-mouth, Top2 -1pts 10th
Fit to brand, Top2 +5pts 5th
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 39
Löwenbräu main prize—trip to Oktoberfest Summary of key indicators
Top1Box
Top2Boxes
Mecha- nics
liking
53%
21%
Rele- vance
74%
34%
Unique- ness
86%
48%
Overall liking
47%
81% Top2 Industry avg: 86%
82%
52%
82%
5-point scale
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 40
Löwenbräu main prize liking A performance comparison to industry norms
82%Löwenbräu
Max 93%
Min 68%
Industry avg
86% Top2Boxes on 5-point scale
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 41
Löwenbräu main prize A performance within subgroups
84%
Males
42%
78%
Females
47%
89%
18-24 YO
51%
80%
25-34 YO
41%
74%
47%
82%
Total sample
50%
35-45 YO
57%
84%
Top2Boxes
Top1Box
Regions Capitals
79%
39%
5-point scale
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 42
Löwenbräu main prize relevance & uniqueness A performance comparison to industry norms
Löwenbräu
Relevance, Top2boxes
Tolstyak PIT
Uniqueness, Top2boxes
74%/86%
Zlaty Bazant
Industry avg.
Industry avg.
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 43
Löwenbräu secondary prizes Summary of key indicators
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
12% 100RUB on mobile 50% 13%
30 beer packs 72% 29% 100 beer packs 38%
42% T-shirt
63% 52%
27% 26% 27%
100 beer packs 30 beer packs
100RUB on mobile Mug
T-shirt
27% 21%
9% 9% 12%
64% 64%
54% 47%
41%
27% 100 beer packs 30 beer packs
100RUB on mobile Mug
T-shirt
25% 17%
15% 16%
54% 54%
52% 51%
Top2Boxes
100 beer packs 30 beer packs
Top1Box
Mug 13%
46%
100RUB on mobile Mug
T-shirt
19% 18%
16% 14% 13%
76%
Liking
Uniqueness
Relevance
Mechanics liking
Top2 industry avg: 55%
45%
55%
48%
5-point scale
47%
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 44
Löwenbräu secondary prizes liking A performance comparison to industry norms
42%
46%
50%
72%76%
Min 28% Industry avg
55% Max 83%
T-shirt
Mug
100RUB on mobile
30 beer packs
100 beer packs
Top2Boxes on 5-point scale
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 45
Löwenbräu secondary prizes relevance & uniqueness A performance comparison to industry norms
Relevance, Top2boxes
Uniqueness, Top2boxes
T-shirt Mug
100RUB on mobile
30 beer pack
100 beer pack
Industry avg.
Industry avg.
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 46
Löwenbräu secondary prizes A performance within subgroups
Total sample Males Females 18-24
YO 25-34
YO 35-45
YO Capitals Regions
100 beer packs 76% 86% 58% 74% 76% 78% 80% 72%
30 beer packs 72% 82% 55% 73% 72% 72% 77% 68%
100 RUB on mobile 50% 51% 48% 57% 51% 39% 56% 45%
Mug 46% 51% 36% 49% 46% 41% 58% 36%
T-shirt 42% 49% 29% 45% 45% 31% 54% 31%
Top2Boxes on 5-point scale
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 47
Derived importance of promo prizes Contribution of each prize into generation of incremental volume
Incremental volume generated by Löwenbräu
Oktoberfest promotion
Main prize— trip to Oktoberfest
39%
Beer six-packs (100 and 30)
43% Mug,
T-shirt 10%
100 RUB on
mobile 8%
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 49
Methodology
Method: Face2face in-home interviews Random route sampling Continuous data collection on weekly basis Fielding occurred 13/04/09 – 08/11/09
Sample: 4510 interviews Minimum 150 interviews per week Beer consumers aged 18-45
— 30% are 18-24YO, 40% are 25-34YO, 30% are 35-45YO
— 60% are male, 40% are female
— Capitals (30% live in Moscow, 17% in St.Petersburg) and regions (13% live in Ekaterinburg, 13% in Samara, 13% in Novosibirsk, 13% in Rostov-on-Don)
— 23% are heave users (drink beer min 3 times per week), 47% are medium frequency users (1-2 times per week), and 30% are light users (less than once a week)
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 50
Terms referenced in the report
Promo or promotion: a national-level promo campaign with prize draws stimulating product purchase communicated on pack, in-store, in media (e.g. TV, radio, press, outdoor, internet)
Promo awareness: a number of respondents who when exposed to a color card which presents a promo concept, prizes visuals, name, slogan and a pack under promotion, recalled that they were aware of a promotion
Participation: a number of respondents who recalled that at the moment of interview they have already been involved into activities required by a promo rules to be qualified for a prize draw, i.e. registering promo codes via SMS or Internet or participating in creative contest
Intention to participate performance index: a number of respondents who are likely to participate in a promotion calculated upon standard 5-point intention scale
Transaction: single purchase occasion of a brand
Brand volume in transactions: an approximation of total number of transactions with a brand occurred per month divided by total number of beer consumers
Total brand volume: an approximation of brand volume achieved in a given month
Base brand volume: an approximation of brand volume in a given month which would have been achieved if there were no promotion running in this given month
Incremental brand volume: a difference between total brand volume and base brand volume in a given month; i.e. net volume attributed to an effect of a given promotion in a given month
Löwenbräu Y2009 Oktoberfest promotion — Bojole PromoIndex™ sample report 51
Contacts
Bojole research have prepared similar reports for each of 17 beer promotions which have been running in Y2009. If you would like a copy of this report or if you have any questions or comments about this research report or if you would like to purchase a report on another promotion, please feel free to contact us:
Alexander Lomizov +7 (495) 662 8928 ext.100 +7 (909) 911 9570 [email protected]
Olga Makarova +7 (495) 662 8928 ext.102 +7 (909) 993 1058 [email protected]