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Ocean Spray

Ocean Spray. The power of TV advertising proves its mettle with Ocean Spray’s sales. The challenge. Ocean Spray faced a problem over supply in the market where demand was flat.

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Ocean Spray

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  1. Ocean Spray The power of TV advertising proves its mettle with Ocean Spray’s sales

  2. The challenge • Ocean Spray faced a problem over supply in the market where demand was flat. • But while this company dominated, cranberry is in over-supply , and so in the UK and other markets the Ocean Spray brands had to generate short term volume sales.

  3. Tough market conditions • With own label juice products dominating the market - accounting for 64% of overall category volume, persuading consumers to buy a brand seemed a tough task. • Consumers are used to ‘own brands’ being 15-20% cheaper than branded juices which meant that the latter had to work very hard in order to justify their premium price. • Ocean Spray had no branded competitors in the UK market and as a cranberry brand had a high awareness level of over 80 per cent. • The threat was own-label cranberry drinks, which were becoming more and more powerful

  4. The strategy • Ocean Spray used its £923,000 media spend on television advertising as well as in-store promotions • ITV1 regions were selected where there was a high index for Ocean Spray drinkers - other television channels were used to gain national coverage. ITV’s share of the TV budget accounted for 31.4%. • Retail promotions were used across all grocery retailers before, during and after the advertising period.

  5. Results • Although category growth was flat Ocean Spray bucked the trend, with volume sales for the brand growing by 28 per cent during the campaign period. • Brand share rose from 41 per cent to 45 per cent and volume sales increased 42 per cent compared to the same period the previous year. • For every £1 spent on TV advertising with promotions generated £3.03 in revenue. • ITV, which accounted for just under a third of advertising spend (31.4 per cent) • Advertising led to additional revenue of £2,596,867, while promotions brought in £2,218,145. This means that advertising was 45 per cent more effective in generating revenue per £1 expenditure, than sales promotions

  6. IPA and WARC • This case study is drawn from the IPA Effectiveness Awards, the most rigorous examination of successful advertising in the world. For more information visit www.ipa.co.uk • All 700 IPA case studies are available in full at www.WARC.com, alongside 25,000 documents from 30 other authoritative sources. The WARC database includes the world's largest collection of published studies on media and marketing effectiveness

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