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GOLDEN EFFIE 2004TBWA\PRAHA CZECH REPUBLIC: 

GOLDEN EFFIE 2004 TBWA\PRAHA CZECH REPUBLIC KIEV, NOVEMBER 2005

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AGENDA TBWA\ introduction Mission Philosophy Guseppe case study Background Strategy Results

TBWA\MISSION: 

To make our clients famous for the ideas they stand for. Fame way beyond just having a good campaign - that famous idea that can drive a company forward for years. Lee Clow Chairman & Chief Creative Officer TBWA\MISSION

AGENT\CHANGE: 

We are hired when clients need a change, because change is in our DNA. Change is our working methodology and in our language we call it DISRUPTION. Because we believe that doing the same thing over and over again and expecting different results is a sign of insanity. AGENT\CHANGE Jean-Marie Dru President & CEO, TBWA Worldwide

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One cannot win on the market provided that he adheres to its conventions

DISRUPTION - PHILOSOPHY: 

Disruption is about what makes for an effective communication Communication ideas that lead to ganing a larger share of the brand’s future Disruption is about what kind of co-operation we offer to our clients Looking at the problem as a whole, not only at the communication Taking the situation as an opportunity for the whole client’s organization Creating new market opportunities DISRUPTION - PHILOSOPHY Jean-Marie Dru, President and CEO TBWA\Worldwide

HOW DISRUPTION WORKS: 

HOW DISRUPTION WORKS Way to change the market rules which helps realizing the company vision Where we are NOW, identification of conventions CONVENTION DISRUPTIVE IDEA VISION Where we want to be TOMORROW, identification of company vision

A TOOL WE USE WHEN PLANNING EFFECTIVE INTEGRATED COMMUNICATION IS „CONNECTIONS PLANNING“ : 

A TOOL WE USE WHEN PLANNING EFFECTIVE INTEGRATED COMMUNICATION IS „CONNECTIONS PLANNING“ A tool to find the most effective way of communication with a customer While Disruption deals with strategic issue „WHAT“ to communicate, Connections Planning deals with a question „WHERE“, „WHEN“ and „HOW“ to communicate Connections Planning enables us to choose from a wide array of communication tools, both media and non-media, and to select the ones that are the most relevant ones for a given brand

RESULTS: 

RESULTS Since 1985, TBWA\ has won 10 Grand Effies awarded for advertising effectiveness - seven more than our closest competitor. 1985 1986 1987 1989 1990 1997 1999 2000 2001 2003

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CASE STUDY FROZEN PIZZA

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WHERE WE WERE?

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BACKGROUND Guseppe was launched in Czech Rep in 1993 and established a market leading position in a growing market of „ready meal“. Leading market position lasted till 2001. Communication support of Guseppe in media was limited and unfocused. In 2000 Ristorante (by Dr. Oetker) entered Czech market supported by the strong media investments behind the brand. In 2002 it became no.1 on the market. Support has been allocated to TV only – using the same copy in the rest of Europe. Guseppe was continually loosing it‘s market share, being on the same level as local private labels market position. In the half of 2003 SOM Ristorante was 28,2% vs Guseppe 16,1% STAGNANT MARKET WITH SIGNIFICANT DOMUNANCE OF DR. OETKER WITH RISTORANTE, THANKS TO MEDIA INVESTMENT

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Guseppe was loosing market share in Czech Republic due to several reasons: Continuous heavy media spending on Dr. Oetkers Ristorante Lacking media spending on Guseppe brand Loss of distributor Nowaco to Dr. Oetker autumn 2001 lead to reduced in-store impact Attempts to drive Guseppe sales through launch of new variants did not prove successful Consumer preference towards product quality has changed in parallel with increased penetration of Ristorante - making Guseppe pizza inferior BACKGROUND

VALUE SHARE DEVELOPMENT: 

VALUE SHARE DEVELOPMENT Guseppe decrease started in the autumn of 2000, but has later stabilised around 18 % Ristorante is market leader with 26 % value share Maestro market share remains stable - but is currently being challenged by new value brands Bon Giorno relaunch in the autumn of 2001 was not successful

Value Curve Ristorante vs Guseppe: situation in the end of 2003: 

Value Curve Ristorante vs Guseppe: situation in the end of 2003

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WHERE WE WERE? WHY WERE WE THERE? Key insights about: Consumers Brand Communication Category

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KEY INSIGHTS ABOUT CONSUMERS Mothers use to prepare pizza for kids and themselves, that‘s why kids have an important influence during the shopping. Consumers do not differentiate between Italian and American pizza, they don‘t care. Guseppe pizza is acceptable for whole family because of the taste and sufficient size. Pizza is informal meal (way of consumption) Frozen pizza is good value (comparing to pizza in Pizzeria)

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KEY INSIGHTS ABOUT THE BRAND While Ristorante positioned itself as a replacement of „the real pizza from an Italian pizzeria“ in convenient form (and it is becoming the category reference), Guseppe didn‘t stand for anything valuable in the „pizza world“.

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KEY INSIGHTS ABOUT COMMUNICATION Since 2000 there were no media investments behind Guseppe On the other side – the main competitor Ristorante is on air continually, using the communication which established the brand as the category reference – pizza which taste great (just like if it was made in a real Italian pizzeria)

RISTORANTE TVC: 

RISTORANTE TVC

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KEY INSIGHTS ABOUT THE CATEGORY/MARKET Overall convenient food category is growing Main market players in frozen pizza segment were Ristorante (market leader), Guseppe, Bon Giorno and Maestro 80% of distribution focused in international chains Market is polarized on „real tasty pizza“ (Ristorante) vs „filled“ pizzas (Maestro, local brands). Guseppe and Bon Giorno are somewhere in the middle Guseppe (American) pizza is perceived as having insufficient topping (asking to add something on the top) Frozen pizza is perceived as being very convenient (easy to prepare, fast and no dishes requiring.

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WHERE WERE WE? WHY WERE WE THERE? WHERE WE WANTED TO GET?

WHERE WE WANTED TO GET ?: 

Business goals: Increase value market share to 22% = regain leading position on the Czech Market Marketing goals: Inform consumers about the product quality improvement in order to support trial and re-purchase Communication goals: Increase communication indexes UBA above 23% ABA above 45% To build brand image as a family pizza for every day To achieve a quality brand perception by consumers WHERE WE WANTED TO GET ?

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Regain TOP position on Czech market in ready meal category

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WHERE WERE WE? HOW DID WE GET THERE? WHY WERE WE THERE? WHERE WE WANTED TO GET?

RELAUNCH OF GUSEPPE PROJECT : 

RELAUNCH OF GUSEPPE PROJECT Goal Relaunch Guseppe American range in Czech Rep and Slovakia and regain no 1 position Mandate Improve product quality and communicate this improvement to consumers through new packaging design and TV ad Critical Success Factors - Assure substantial product improvements - Develop single minded communication

GUSEPPE POSITIONING : 

GUSEPPE POSITIONING Existing core idea “Guseppe pizza is the complete meal provider that is substantial and „popular” Well suited for building total market and establishing Guseppe in the popularity position (need for everyday meal solutions that everybody in the family can share and enjoy) “Completeness” may not be the best way to make pizza more relevant New core idea “Guseppe pizza has more of the good stuff that all youngsters love” Simple and relevant message that should be able to generate trial

NEW MARKETING MIX: 

NEW MARKETING MIX Product Packaging Communication Pricing Recipe changes Weight changes New variants New design New TV ad Increased price per kilo and unit

NEW PRODUCT ASSSORTMENT: 

NEW PRODUCT ASSSORTMENT Core assortment: Ham 480 g, 300 g Champignon 480 g, 300 g Ham & Spinach 480 g Mexicana 460 g 4 Cheese 460 g Multi-pack: Ham 2x450 g Ham/Champignon 2x450 g Variants to be developed: Hawaii 480 g Bacon 480 g

PRODUCT DEVELOPMENT: 

PRODUCT DEVELOPMENT Crust - reduced thickness from 15 to 9 mm - whole grain crust on 4 Cheese Topping - different cutting on ham - change of topping sequence - more vegetables - more meat - more sauce - new pepperoni - new sauce with more tomato flavour - extensive use of herbs Weight - reduced on all variants Diameter - remains 26 cm

PACKAGING: 

PACKAGING Packaging design challenge: - communicate improved product quality - assure strong branding and maintain design properties - differentiate clearly between variants - facilitate freezer impact - enable use of multilanguage packaging - improve preparation guidelines

PRICE: 

PRICE Average hypermarket retail price points Per unit Per kilo Existing Guseppe Ham 520 g 55 CZK 106 CZK Ristorante Prosciutto 330 g 64 CZK 194 CZK Bon Giorno Ham 510 g 60 CZK 118 CZK Maestro Ham 500 g 45 CZK 90 CZK Private Label 500 g 38 CZK 76 CZK New Guseppe Ham 480 g 60 CZK 125 CZK The new price level: represents 9 % increase of invoice value per SKU assumes a higher willingness to pay due to improved quality, new packaging and media support differentiates Guseppe more clearly from value brands and PL

COMMUNCATION: 

CONVENTION VISION Problem: Guseppe lost its market leadership position to Dr. Oetker after it entered the market with its Ristorante brand, supporting it with a heavy media support. DISRUPTIVE IDEA COMMUNCATION

COMMUNCATION: 

Pizza on the table with a happy family enjoying it CONVENTION DISRUPTIVE IDEA VISION Problem: Guseppe lost its market leadership position to Dr. Oetker after it entered the market with its Ristorante brand, supporting it with a heavy media support. COMMUNCATION

COMMUNCATION: 

Pizza on the table with a happy family enjoying it CONVENTION DISRUPTIVE IDEA VISION Guseppe is the most popular family pizza Problem: Guseppe lost its market leadership position to Dr. Oetker after it entered the market with its Ristorante brand, supporting it with a heavy media support. COMMUNCATION

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WHAT WOULD SUPPORT THE VISION? Product improvement (including new varieties and weight changes) New packaging design New communication

Value Curve Ristorante vs Guseppe: critical value improvement: 

Value Curve Ristorante vs Guseppe: critical value improvement

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FIRST GOAL Make consumers to TRY improved Guseppe pizza. BY Giving them relevant reason WHY? Make product present on market Improve visibility of the brand Build emotional bond between brand and consumers

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WHO WERE WE TALKING TO? Primary: Urban working mothers with kids (8 – 18). They prepare supper for kids and themselves after coming back from work while fathers usually stay at work late. Frozen food is an integral part of their „cooking repertoire“. While they value the convenience of frozen food (pizza) they are not ready to compromise quality and taste. Secondary: Young/teenagers

WHERE WAS THE ROLE OF ADVERTISING?: 

To create BIG IDEA for Guseppe, that would be: Simple, with broad impact Truth (for both product and brand) Unique for Guseppe Timeless Media neutral Accepted by current consumers Positive and attractive WHERE WAS THE ROLE OF ADVERTISING?

CREATING „RELEVANT VALUE“ = REASON WHY:: 

CREATING „RELEVANT VALUE“ = REASON WHY: Differentiation (versus competitors) Relevance (for target audience) Wasted Effort NEED TO BE HERE! Noticed, but so what? Consumers care, but parity!! Fulfill consumers dreams Give them what they are hungry for

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GUSEPPE BRAND LADDER TOM Benefits Territory Values Role Atributs Thinner crust Lots of good topping Urban family table-fun Family, time spent together, humor Family Pizza expert Good taste, Please all family, especially kids Pizza from Guseppe

COMMUNCATION: 

Pizza on the table with a happy family enjoying it CONVENTION DISRUPTIVE IDEA VISION Guseppe is the most popular family pizza Guseppe pizza is so tasty, that you will forget about the world around you Problem: Guseppe lost its market leadership position to Dr. Oetker after it entered the market with its Ristorante brand, supporting it with a heavy media support. COMMUNCATION

BIG IDEA: 

„THANKS TO THE GREAT TASTE OF GUSEPPE PIZZA YOU WILL FORGET ABOUT THE WORLD AROUND YOU“ BIG IDEA

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COMMUNICATION STRATEGY Guseppe has to win back consumers from Ristorante and to grow the whole segment by becoming a reference themselves. To achieve this tactically Guseppe will try to own the differentiations of abundant topping, family consumption and everydayness. From the strategic point of view, however, additional brand leverage has to be developed to support Guseppe‘s „pizza competence“.

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CREATIVE STRATEGY To avoid cliché in communication that is usually used by other brands in FMCG/food category – happy people sitting round the family table and being satisfied because of product using. Creative solution based on communication of brand values (family, time spent together, humor) in combination with product benefits and attributes in original, genuine, humorous and memorable story that would attracts TG. Unexpected reactions of acting people end up humorous, funny and human-touching Building of emotional bond between product and consumers Appetizing shots supporting rational benefit – quality improvement

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MEDIA STRATEGY Limited budget didn't allow to run multimedia strategy. 100% media budget was allocated to TV due to effective reach of target group. Improved product features could be best communicated through TV Various forms of TVC – 40 sec, 2x 15 sec in order to get high frequency Media budget – 10,7 mio CZK in gross

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GUSEPPE TVC 35“

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GUSEPPE TVC 15“

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GUSEPPE TVC 15“

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WHERE WERE WE? HOW DID WE GET THERE? WHY WERE WE THERE? WHERE WE WANTED TO GET? DID WE GET THERE?

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BUSINESS RESULTS: Source: AC-Nielsen FM04 AFTER THE COMMUNICATION CAMPAIGN GUSEPPE PIZZA BECAME A CZECH MARKET LEADER NSV YTD (1-5/04) vs. LY: +51%

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COMMUNICATION RESULTS: Source: GFK 1/04 – Omnibus research

SPONTANEOUS VS. PROMPTED AWARENESS OF SELECTED FROZEN PIZZA BRANDS AMONG THE WHOLE POPULATION: 

SPONTANEOUS VS. PROMPTED AWARENESS OF SELECTED FROZEN PIZZA BRANDS AMONG THE WHOLE POPULATION Base = whole sample N = 500 % Q.1 - Which brands of frozen pizza do you know, even if only by name? Q.2 - I will read you several brands, which brands of them do you know, even if only by name?

AWARENESS OF THE GUSEPPE BRAND BY AGE: 

AWARENESS OF THE GUSEPPE BRAND BY AGE Base = whole sample N = 500 Q.1 - Which brands of frozen pizza do you know, even if only by name? Q.2 - I will read you several brands, which brands of them do you know, even if only by name? %

BRANDS OF FROZEN PIZZA CONSUMED IN THE HOUSEHOLD: 

BRANDS OF FROZEN PIZZA CONSUMED IN THE HOUSEHOLD Base = pizza consumers only N = 232 Q.4a - Which brands of frozen pizza do you buy and eat in your household? Q.4b - Which brands of frozen pizza do you buy and eat in your household most often? %

BRANDS OF FROZEN PIZZA CONSUMED IN THE HH GUSEPPE VS. RISTORANTE: 

BRANDS OF FROZEN PIZZA CONSUMED IN THE HH GUSEPPE VS. RISTORANTE Base = pizza consumers only N = 232 Q.4a - Which brands of frozen pizza do you buy and eat in your household? GUSEPPE consumers in total 42 % RISTORANTE consumers in total 23 % GUSEPPE consumers only (no Ristorante) RISTORANTE consumers only (no Guseppe] BOTH brands consumed (Guseppe + Ristorante)] other brands

TYPES OF PRODUCTS ASSOCIATED WITH THE GUSEPPE BRAND: 

TYPES OF PRODUCTS ASSOCIATED WITH THE GUSEPPE BRAND Base = Guseppe consumers only N = 97 Q.5b - Which types of products do you link with the Guseppe brand? %

AWARENESS OF THE TV COMMERCIALGUSEPPE aware vs. GUSEPPE not aware: 

AWARENESS OF THE TV COMMERCIAL GUSEPPE aware vs. GUSEPPE not aware Q.7/8a/8b - Do you remember the last pizza Guseppe TV commercial? …. COMMERCIAL READ OUT … Is this the right commercial? Whole sample GUSEPPE aware GUSEPPE not aware Base = whole sample N = 500 Base = aware of Guseppe brand N = 326 Base = not aware of Guseppe brand N = 174

AWARENESS OF THE BRAND VS.AWARENESS OF THE TV COMMERCIAL: 

AWARENESS OF THE BRAND VS. AWARENESS OF THE TV COMMERCIAL Brand awareness in total aware of Guseppe brand 65 % not aware of Guseppe brand 35 % TV commercial awareness in total commercial remembered 84 % commercial not remembered 16 % Base = whole sample N = 500 Q.2 - I will read you several brands, which of them do you know, even if only by name? Q.7/8a/8b - Do you remember the last pizza Guseppe TV commercial? …. COMMERCIAL READ OUT … Is this the right commercial?

MESSAGE OF THE PIZZA GUSEPPE TV COMMERCIAL : 

MESSAGE OF THE PIZZA GUSEPPE TV COMMERCIAL Q.9 - In your opinion, what was the main message of this advertisement? % Base = aware of the TV commercial N = 422

EVALUATION OF THE COMMERCIAL: 

EVALUATION OF THE COMMERCIAL Top 2 Box (1+2) 70 % Low 2 Box (4+5) 14 % Mean value 2,1 % Q.10 - How did you like this commercial? Base = aware of the TV commercial N = 422

EVALUATION OF IMAGE STATEMENTS FOR THE GUSEPPE BRAND - OVERVIEW: 

EVALUATION OF IMAGE STATEMENTS FOR THE GUSEPPE BRAND - OVERVIEW Base = aware of brand or TV commercial N = 446 Q.12a-j - For each statement indicate, in which extent the statement applies to the Guseppe brand!

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GUSEPPE CAMPAIGN EVALUATION „Strategie“ – weekly magazine about media and marketing communication, issue 48/03 Regular column „Sujet Focus“ – TVC testing Top 10 TVCs evaluated in categories: awareness, likeability, association with the brand – Guseppe TVC achieved rank no 2. (after regional TVC adaptation) Guseppe TVC achieved best score in originality and creativity Awareness evaluation – no1 ranking (88%) - best awareness among spots aired in Oct. – Nov. 2003 2002 average awareness was 59% Likeability evaluation – no1 ranking (7 points within the scale 1 – 10) 2002 average was 5,7 pt Association with the brand – no2 ranking (44%), 2002 average was 31,1%

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GUSEPPE CAMPAIGN EVALUATION „Strategie“ – weekly magazine about media and marketing communication. Full page article about the campaign in marketing/communication professional weekly magazine positively evaluating unconventional advertising developed for Guseppe.

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GUSEPPE CAMPAIGN EVALUATION „Marketing & Media“ – weekly magazine for marketing, advertising and media, issue 48/03 Regular column „TVC evaluation“ Monthly evaluation of TV commercials in terms of creativity, execution and brand relevance. Guseppe TVC achieved ranking no 2

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GOLDEN EFFIE 2004 IN THE MOST PRESTIGIOUS FMCG CATEGORY FOR GUSEPPE

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THANK YOU FOR YOUR ATTENTION