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Benefits of Chewing Update

Benefits of Chewing Update. February 27, 2008. Update to ELT. Pleased with the core program and supportive of continued groundwork Enthusiastic about expanding and accelerating BoC programs with consumers and customers. Today’s Objective. Bring you up to date on BoC program

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Benefits of Chewing Update

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  1. Benefits of ChewingUpdate February 27, 2008

  2. Update to ELT • Pleased with the core program and supportive of continued groundwork • Enthusiastic about expanding and accelerating BoC programs with consumers and customers

  3. Today’s Objective • Bring you up to date on BoC program • Stimulate discussion about how regional marketing organizations can leverage BoC

  4. Benefits of Chewing Platform Gum is Good! Benefits of Chewing is an innovative, multi-year Wrigley program that over time can: • Change the way consumers think about chewing gum • Create new usage occasions for our brands

  5. Building the Benefits of Chewing Program Platform is built on: • Consumer feedback on health and lifestyle benefits they find from chewing gum • Benchmark studies to rank relevance and credibility of messaging • Emerging research • Diet/Weight management - 2 complete, 2 underway, 3 slated • Focus & Concentration - 3 complete, 2 underway, 3 slated • Stress Relief – 5 complete, 1 slated • Oral Health – 1 slated Focus, Concentration & Alertness Weight Management Stress Relief Oral Care

  6. Health and Wellness Influences Our World • The Benefits of Chewing is an initiative built around health and wellness trends • Taps into today’s consumer who seeks • Small changes that can make a big difference • Healthful alternatives that are convenient and taste great • Leverages interest in functional benefits

  7. BoC Message Roadmap

  8. BoC Core Program • Advancing the Science • Engaging Influencers • Newsletters, science meetings, published articles • Owning Benefits of Chewing in the media and online • Seeding stories in major dailies, magazines, TV and radio (615MM impressions to date) • Execute select U.S. PR and consumer promotions • Biggest Loser • College Campus Program • Wrigley Science Institute • Explore Research • Influencer Outreach • Public Relations • Creating consumer experiences • Using media and experts to influence consumers • Alignment with • Marketing • Execute in alignment with business plans and brand priorities • Consumer Research • Prioritization of target audience and benefit • Validation of messaging

  9. U.S.: College Outreach • Leverage 17-24 year olds interest in focus and concentration • Give target a new reason to stay in category • College Campus events, sampling • Online campaign • Website, e-cards, Facebook, pay per click advertising • Cornell BoC experiment with marketing students • Survey showed students who chewed 5 prior to and during test-taking had better grades • 2008 potential for driving a BoC connection with 5

  10. UK: BoC Core Program England • Defend the category and continue to create positive perceptions of chewing gum • More than 75% of coverage positive vs. only 35% in the six months preceding the BoC campaign (2007) • Gave key opinion leaders reasons to consider gum as more than nuisance • Offset negatives associated with gum residue and discussion of tax • Leveraged benefits to keep front-end distribution at Sainsbury in 2007 • Public Relations • Football stress league, From Pints to PhD quiz competitions, Office slump time, Smoking ban, Most stressful roads Ireland • Build foundation and introduce BoC to the marketplace while defend against litter issue • Educate influencers and consumers about BoC • Leverage key learnings and successes in the UK • Execute diet/weight management PR campaign: Wrigley conquers Irish Snack Time • Potential Weight Watchers partnership

  11. Asia: BoC Core Program • Break down social barriers to chewing gum and build category consumption • Own cognitive benefits for Wrigley • Focus on student performance (13-23) • Localize programming with on campus activities, brand ambassadors (China, Hong Kong, Taiwan & Vietnam) • China: promote the stress relief benefits via Wrigley Gum Bar events in office buildings • Consumer and customer marketing integration: • In-store feature displays (China, Hong Kong) • TV and print advertising (Hong Kong) • Brand alignment: • China: Doublemint, Cool Air & LangYi • Taiwan & Hong Kong: Airwaves • Vietnam & Philippines: Cool Air

  12. Germany, France & Spain: BoC Core Program Germany • Continue to build credibility foundation for BoC • Leverage expert spokespersons and research with media • Summer travel stress relief, smoking cessation • University outreach with smoking cessation France & Spain • Determining BoC PR opportunities and briefing agencies

  13. Leveraging Branded BoC Programs to the Consumer

  14. Current U.S. Program • Biggest Loser Season 5 (January – April) • Second season of custom BoC and Extra message integration • 8MM viewers per episode • Dedicated weight management creative run during integration • “Reveal the New You” public relations campaign with national sweepstakes tied to creative • Brand alignment: Extra • Biggest Loser integration, online, PR, media

  15. New Opportunity: Repositioning Extra in U.S. • Position: The long-lasting 5 calorie gum that can help you control your appetite • Identified through Extra Positioning Re-stager • Provides meaningful news to long-lasting benefit, ownable space, and organizational focus to lead category • 2008 Activity • Shift 1H creative to weight management copy • Explore participation in Biggest Loser Season 6 (Fall ’08) • Finalize new campaign • Conduct research • Qualitative to refine positioning • BASES Re-stager to quantify volume opportunity (fielded end of month) • Test current :15 TV spots (fielded February, Mid-April results) • Test of new campaign

  16. New Opportunity: UK Marketing Test • Test BoC with consumers in concentrated areas to measure impact • Showcase BoC to consumers, trade, government via Scotland breakfast show radio campaign • 7 radio stations • 8 months of activity (May-Dec) • 4: 1 week promotions • Online consumer tracking (OCT), pre and post testing • Pitch regional BoC in-store promotion test to Sainsbury • Merchandising, POS, in-store communication • BoC messages and brand alignment TBD

  17. New Opportunity: New Brand Test in Pacific • Developing new weight management brand in Pacific • One of the most compelling benefits from BoC work • Showed high appeal and differentiation vs. current Wrigley brand portfolio • Opportunity to create brand to connect with consumers emotionally • Pre-BASES Concept test for “Combat” and “W8” showed strong potential • “Controls food cravings/temptations” drove 77% purchase intent of those mentioning it as key driver • Believability strong with top2 box agreement at 65% • Idea Submission Form entered by Global team to develop products • Next steps: • BASES II (July/August 2008) • Aligning on test market in Pacific (February 2009 test)

  18. Opportunities to Market BoC with the Customer

  19. Wrigley Retail Solutions: BoC & Retail Activation • Front End Wellness Zone • Retailer-Specific Event Marketing • Secondary Placement 1 2 3

  20. Front End Wellness Zone 1 • Front End Wellness Zone: • Merchandise categories/products which promote health & wellness Sugar-Free Confections Front End (ICA – Norway) Sugar-Free Gum Front End Display Test with BOC (Sainsbury – Concept) Sugar-Free Gum Display with BOC Headers & Brochures (SuperQuinn – 2007 Test)

  21. Retailer-Specific Event Marketing 2 SuperQuinn Event Calendar: Example • Retailer-Specific Event Marketing: • Develop themed events tying in Wrigley’s BOC platform with retailer marketing events • Support with POS, sampling, displays, brochures • U.S. Test (key customers, multi-channel) • Weight Management and/or Back to School • Display, Tear-off Coupon, Educational elements on BOC, POS 2007 National Day Promotion - China: Feature/Display with BOC education (2,500 stores in 200 cities: 2,215M SSU) UK Display/Promo Tie in to “Quitting Smoking Campaign” (Morrison’s, July 2007)

  22. 3 Secondary Placement • Secondary Placement: • Place Wrigley Sugar-Free Gum Displays with BOC signage in key Health & Wellness locations throughout the store • Pharmacy/Health Clinic • Health & Beauty Care Department • Health Foods Section • Other complementary locations CVS Confections Pharmacy Display (Q4 2007 Execution) Lang Yi (Wellness Brand) In-Store Display & Sampling (Modern Trade – April-May 2007) Pharmacy Display (Albertson’s, Safeway, Kroger –2008) Orbit Balance Launch – Germany (6,500+ displays in Drug/Grocery – 2008)

  23. Customer Next Steps How to Capitalize on Opportunity: • Internal Education – 2008 • Learn from testing • Develop “best practices” • Develop selling modules • Train our people • Incorporate into 2009 Business Planning – integrated, long-term plan (consumer/customer) • Develop Global Best Practices

  24. Conclusion • Increasing BoC integration • 11 countries engaging in BoC work in 2008 • 6 countries in 2007 • 2 countries in 2006 • Multi-year efforts in U.S., UK and Asia • Foundational work starting in Ireland, Germany, France and Spain • New product testing in Pacific • Working to further leverage brand BoC programs to the consumer • Incremental consumer marketing investment to BoC programs in U.S., UK and Asia • BoC key learnings being shared with Category Management team in Dubai next week • Building toolkits for customers

  25. Discussion

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