SWISSE WELLNESS

ASIA PACIFIC WORLD SPORT & WOMEN

Monday October 27th 2014 1  

AGENDA

1.  The Vitamin Market Trend

2.  Company Overview – George Livery, Commercial Director - Swisse History - Swisse Brand

3. Contribution to Science and Research

4.  The Celebrate Life Foundation & Netball Australia case study

5. A Segment of One – marketing to each female individually

2  

THE VITAMIN MARKET TREND •  According to the latest findings from Roy Morgan Research in Australia &

New Zealand, the vast majority of people who buy vitamins (80% in Australia and 82% in New Zealand) say they’re ‘feeling well and in good health’

•  Medicines Australia report from March 2013 noted that 59.7% of consumers are using complementary medicines daily. 42.7% of which take one or 2 daily and 17.1% take 3 or more

•  The ABS statistics shows that 94% of Australians are not getting enough fruit and vegetables

3  

 Morgan  R,  2014,  How  Vital  Are  Vitamins,  viewed  on  1st  May  2014    h=p://roymorgan.com/findings/5503-­‐how-­‐vital-­‐are-­‐vitamins-­‐201403252241  

Australian  Bureau  of  StaJsJcs  (ABS).  Australian  Health  Survey:  Updated  Results,  2011-­‐12.  4338.0  -­‐  Profiles  of  Health,  Australia,  2011-­‐13  h=p://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/4338.0~2011-­‐13~Main%20Features~Daily%20intake%20of%20fruit%20and%20vegetables~10009  

02// COMPANY OVERVIEW GEORGE LIVERY, COMMERCIAL DIRECTOR

4  

SWISSE HISTORY •  Kevin Ring went to Switzerland

in the 1960s to learn about the latest developments in natural medicine and was inspired to develop his own range of herbal and vitamin supplements in Australia.

•  The first product in the Swisse range was pollen tablets and he sold them from his organic bakery.

•  The name Swisse was inspired by Switzerland’s attitude to healthy living. The ‘e’ was added to accommodate naming rights legislation.

5  

TOP SELLING PRODUCTS

AZTEC  Sales  Data  MAT:  10/08/2014  (pharmacy  &  grocery  combined).  

CONSUMERS ARE SPENDING MORE ON VITAMINS THAN 12 MONTHS AGO

More than 12 months

ago 31%

Less than 12 months

ago 8%

Same as 12 months ago

61%

Customer  spending  in  comparison  to  prior  year  (%)   •  On  average,  31%  of  consumers  are  spending  more  on  vitamins  compared  with  the  prior  12  months  –  key  drivers  were  found  to  include  

•  Change  in  health  (45%)  

•  RecommendaJon  from  doctor  /  health  professional  (29%)  

•  Another  member  in  the  household  has  started  taking  vitamins  (24%)  

•  Increase  in  discreJonary  income  (12%)  

•  AdverJsement  driven  (11%)  

•  8%  of  consumers  are  spending  less  than  they  were  12  months  ago  –  key  drivers  were  found  to  include  

•  Decrease  in  discreJonary  income  (42%)  

•  Buying  less  vitamins  (33%)  

•  View  that  vitamins  were  not  working  well  (13%)  

•  Switched  to  cheaper  brands  (13%)  

•  Change  in  health  (12%)  

•  Pricing  of  vitamins  in  general  has  reduced  (5%)  

7  

Purpose: Swisse is devoted to making the world healthier and happier. Overall Equity

Inspire people to live healthier & happier

Brand Character Aspirational, happy and credible

Comprehensive formulas made with premium quality ingredients.

Based on the latest scientific research and traditional evidence.

Trusted and recommended by top healthcare professionals, elite sporting bodies, athletes and entertainers that inspire.

Brand values/beliefs: People, principals and passion come before….profit. Celebrate Life Every Day

Building Blocks (PODs)

THE  

Con8nue  to  target  the  right  audience  Primary  Audience    -­‐  Investors  in  Health  

VMS  use  is  an  addiJonal  boost  on  top  of  a  healthy  lifestyle  to  help  delay  ‘gedng  old’  

VMS  are  regarded  as  a  necessity  –  a  criJcal  combinaJon  with  diet,  exercise,  and  harmony  for  good  health;  carry  a  high  emoJonal  value  

Want  high  quality  VMS  supplements  and  willing  to  pay  a  premium  

“I  want  to  keep  my  general  health  good  so  I  can   s5ll  do   the   things   I   like   to  do  when   I’m  70!”  

Secondary  Audience  –  Seeking  Targeted  Benefits  

Con8nue  to  target  the  right  audience  

Clear  and  focused  VMS  use  –  specific  product  to  help  with  specific  benefit  

Highly  invested  in  the  VMS  category  –  tailoring  daily  intake  to  maximize  efficacy  

“When  I  have  a  cold  I  take  Vitamin  C.    When  I  can’t  sleep  I  take  Valerian.”  

Leverage  the  insight  that  drives  our  cause  Research  shows  that  health    is  the  new  status  symbol  

and  beacon  of  aspira8on.    Health  is  seen  as  an  achievement  with  Australians  working  to  at  least  be  

perceived  as  having  a  healthy  body  and  mind.  

The  key    trends  are:  A  move  towards  ‘Health  Esteem’    ‘Healthy  Selfies’  all  over  social  media  

People  earning  their  treats  rather  than  indulging  People  favouring  of  natural  ingredients    People  moving  away  from  gluten,  hormones,  dairy  or  wheat  A  move  towards    customisable,  personalised  health  products  

Increased  usage  of  complementary  medicines  Increased  usage  of  natural  therapies  

Remain  Authen8c  to  the    Swisse  Masterbrand  Iden8ty  and  

Posi8oning  Consumers  recognise  Swisse    

and  know    what  Swisse  offers  versus  compe8tors  

03// CONTRIBUTION TO SCIENCE AND RESEARCH

13  

SCIENTIFIC ADVISORY BOARD •  The Swisse Wellness Scientific Advisory Panel consists of world-class medical

professors and academics. •  The panel assists NPD through identification of new science (e.g. green lipped

mussels) and EPD through advising on evolving science and ingredients. •  Swisse are part way through putting 80% of existing product portfolio through clinical

trials. •  All research is published on the Swisse website – we are the only Australian company

in our Wellness space to do this.

Professor  Avni  Sali  Director  NaJonal  

InsJtute  of  IntegraJve  Medicine  

Andrew  Papingas  Faculty  of  Life  and  Social  Sciences  –  

Swinburne  University  

Karen  Reid  Research  Director  at  The  NaJonal  InsJtute  of  IntegraJve  Medicine  

14  

Gerald  Quigley  PracJcing  Community  

Pharmacist  &  Accredited  Herbalist    

Dr.  Valerie  Malka  Surgeon  &  former  Director  of  trauma  

services  at  Westmead  Hospital  

SCIENTIFIC  ADVISORY  PANEL  

SWISSE RESEARCH •  Over  the  last  3  years,  we  have  invested  $6.85mil  in  research  and  development  

•  Swisse  has  undertaken  extensive  discussions  with  the  leading  research  universiJes  across  Australia  to  establish  a  unique  research  centre  focused  on  complementary  medicines  

•  Transparently  manage  and  report  on  research  of  exisJng  and  new  products  

•  Collaborate  with  leaders  in  the  field  (naJonally  and  internaJonally)  to  drive  new  levels  of  complementary  medicine  research  

15  

INDUSTRY & RESEARCH IS THE FUTURE •  Australia’s own Chief Scientist, Professor Ian Chubb has said

recently ... “We must get people to accept that if we don’t translate ideas into goods and services the future is not going to be as rosy as we would like.”

•  Prime Minister Tony Abbott recently told an audience that science is “absolutely critical” for the progress of humanity, calling scientists the “explorers and adventurers of our age”.

•  Opposition Leader Bill Shorten has called for a national commitment to science and innovation amid a wave of manufacturing job losses, highlighting that “an innovation-led growth plan must support all budding industries, whether they have a focus on agriculture, or defense or the automotive industry, financial services or health and education services.”

16  

AUSTRALIANS SUPPORT VITAMINS •  It has been estimated that complementary medicine use in Australia

is as high as 75% with almost four times as much out of pocket dollars spent on complementary medicines rather than on pharmaceuticals.

•  Australians spend 12.5% of their total medicines and devices sector on complementary medicines, which equates to an estimated spend in excess of $1.8 billion each year.

•  In fact Swisse is ‘the fastest growing over the counter brand in the world over the past five years’. Lets celebrate it !!!

17  

A MULTIVITAMIN IS THE ULTIMATE INSURANCE POLICY

18  

h=p://www.hsph.harvard.edu/nutriJonsource/mulJvitamin/  

•  Dietary  deficiencies  are  wide  spread,  we  are  not  a  ‘well  nourished’  populaJon  •  Harvard  U,  School  of  Public  Health,  recommend  a  daily  mulJvitamin-­‐mineral  (MVM)  

supplement  as  an  inexpensive  insurance  policy  to  fill  nutrient  gaps  •  A  strong  body  of  evidence  shows  that  MVM  may  help  lower  risk  of  chronic  diseases  and  

reduce  risk  of  cancer  •  No  reports  of  death  associated  with  MVM  use  •  Long  term  use  of  MVM  use  NOT  associated  with  any  adverse  health  effects  

THE REAL FACTS There have never been reports of death from multivitamin use.

The largest randomised, double-blind placebo controlled trial on multivitamin mineral use ever conducted found no that long-term

multivitamin mineral use is not associated with any adverse health effect. (Gaziano, 2012)

19  

Gaziano,  J.  M.,  Sesso,  H.  D.,  Christen,  W.  G.,  Bubes,  V.,  Smith,  J.  P.,  MacFadyen,  J.,  et  al.  (2012).    

PHARMACEUTICAL MEDICINES

20  

04// NETBALL AUSTRALIA & SWISSE CELEBRATE LIFE FOUNDATION – CASE STUDY

21  

CELEBRATE LIFE FOUNDATION THE FOUNDATION •  $3 million dollars raised through our activities •  23 Charities Supported •  6 Key Projects Supported •  2500 Health Care Professionals Reached

THE COLOR RUN •  $6.57 million Media Generated Nationally •  300,000 Runners Participating •  362,000 Facebook likes Nationally

22  

NETBALL AUSTRALIA COMMUNITY PARTNERSHIP WITH NETBALL AUSTRALIA

•  A Foundation based Community Partnership with Netball Australia

•  $108,000.00 donated to NA through the Celebrate Life Foundation annually

•  PR and Marketing support through leveraging Netball Australia activities

•  Associating NA with The Swisse Color Run leveraging the 70% of entrants that are female

•  Media and PR activation in the Trans-Tasman league series

•  Final competition round called the H&H round – the Celebrate Life round – played with coloured netballs – a world 1st

•  Full activation of the netball tests - i.e. The 4 on now in October – cross promoting the color run overall, specific offers and the foundations mandate and 4 pillars

•  Lead partner for Netfest - 2000 people event over a weekend playing round robin netball in in a knock out comp

•  Major engagement for The World Cup in Sydney (Aug 7-16) in 2015

23  

NETBALL AUSTRALIA

24  

A  LONG  STANDING  RELATIONSHIP    AMBASSADOR  AUDITIONS  CAMPAIGN    

NETBALL AUSTRALIA

25  

Match  program  ads  designed  specifically  targeJng  products  for  players  and  fans    

NETBALL AUSTRALIA

26  

IntegraJng  our  retail  promoJon  with  a  strong  18-­‐35  female  bias  into  the  Test  Match  program  

NETBALL AUSTRALIA

27  

IntegraJng  our  community  assets  into  game  day  court  borders  and  banners  

05// A DEMOGRAPHIC SEGMENT OF ONE

28  

A SEGMENT OF ONE MARKETING STRATEGY CONSIDERATIONS FEMALE BIA SEGMENTS

•  Campaigns should feel like that they are targeting every consumer as a segment

of one

•  Don’t limit yourself to demography

•  Don’t be influenced by stereotypes

•  Do be on the look-out for unintended consequences of all of your campaigns

and maximise them

•  Always stay true to your brand values

•  Find a way to integrate your campaign into a retailer opportunity

•  Maximise PR opportunities and integrate into your campaigns

29  

A DEMOGRAPHIC OF ONE

30  

Liz  Cambage  Olympic  campaign  

A DEMOGRAPHIC OF ONE

31  

Liz  Cambage    PR  IntegraJon    

A DEMOGRAPHIC OF ONE

32  

RICKY PONTING ORIGINAL CAMPAIGN

•  Ground-­‐breaking  campaign  

•  Swisse’s  first  360degree  IntegraJon  Strategy  implementaJon  

•  Challenging  gender  roles  

•  Appealing  to  both  genders    

•  Sport  bias  

•  Sales  impact  across  both    men's  and  women's  range  

•  The  Priceline  unintended  consequence  

A DEMOGRAPHIC OF ONE

33  

RICKY PONTING ORIGINAL CAMPAIGN TVC

THANK YOU AND REMEMBER TO

CLED

34