Wrigley Wellness Case Study

UK - BoC Regional Retail Test September – October 2008

Contacts: Sas Horscroft

Opportunity:

• To test the impact of Benefits of Chewing weight management consumer messaging on sales, amongst the lapsing 25-44 year old age group.

Strategic Rationale:

• Rapid decline of consumptions after 25 years of age - making it a necessity to provide older chewers with new reasons to chew.

• Social acceptance of gum acts as a barrier.• Identified retail partner, Sainsbury’s, because shoppers have a generally healthy outlook on life

and are likely targets for the weight management consumer messaging.

Objectives & Strategies:

•Test the Benefits of Chewing weight management messaging as a category growth sales driver by increasing communication to consumers through eight-week retail initiative including 360 marketing activity.

•Communication strategies:•Creating branded awareness of the benefits of chewing gum.

•Increase positive perceptions of gum.•Generate increase in intention-to-purchase, chew gum.

Tactical Components: Total $1.1MM Spend incl research

•Retail test included a variety of integrated marketing tactics in-store, including:

–Shelf highlighter flags, shelf stripping and aisle end units with the message “Chew More, Snack Less.”

–350,000 Extra branded store leaflets promoting a wellness contest offering consumers a chance to win a luxury spa trip for two or one of 60 de-stress pampering kits.

–In-store radio ads promoting wellness contest.–Branded petrol pump nozzles at Sainsbury’s

convenience stores with message “Chew More, Snack Less.”

•Additional tactics, included:–TV Ads with complimentary messaging (ran three weeks

from mid-September to mid-October).–Direct mail to 80,000 consumers with product sample.–PR stunt featuring a giant pack of Extra dueling a Tea

Lady (ala Gladiators), showcased ability to combat snack cravings.

Results:

• Awareness:– TV advertising is cutting through and snacking message is clear, POS is recalled at shop exit.– Branding is clear.

• Perception:– Amongst light/lapsing chewers, message is less relevant and less believable. – Amongst older female heavy/medium chewers, ad message is more relevant and believable.– Branding: BoC is not adding to Extra’s BF brand equity.

It appears that any noticeable brand activity can improve bonding.• Persuasion:

– Poor amongst light/lapsing chewers.– Some indication that heavy/medium chewers will increase frequency of purchase/chew.– In terms of sales impact,

• Central Region,( 8 wks pre Vs during) TV has had no Net impact on total Wrigley sales but Extra is +1.6%ppt.• In JS, (yoy pre Vs yoy during):

Total Wrigley sales in test stores +1.7%ppt Vs controlTotal Extra +0.9ppt Vs control

.

Recommendations: • Results do not support a national roll out of regional Test.

–“ Chew More, Snack Less” message does not motivate light/lapsing chewers to purchase• BoC (Chew More, Snack Less) is still a potential opportunity worth communicating to 25+ years

medium/heavy chewers.– Potential to extend usage/frequency and hence drive category growth medium/long term with

appropriate targeted media.• BoC (Chew More, Snack Less) should be branded as the Wrigley range or Extra.

– From a claims perspective, more defensible when branded as Wrigley we can only make brand

specific claims on weight management and Dental pillar.• Further explore how to motivate older, light/lapsing chewers to keep chewing.

Key Learnings: • Attitude changing comms is unlikely to lead immediate sales.

– UK consumers hold strong opinions on gum….often barriers• A potential opportunity still exists to extend gum chewing amongst heavy/medium chewers through

new occasions/need states.• Weight management (and Stress) are secondary benefits of gum and is not a motivating reason for

light/lapsing chewers to re-engage with gum chewing.• Due to its impulse nature, gum category benefits from saliency building activity such as POS.

6

Appendix

7

Key Result Metrics at a glance

Total TV In-Store/POS

Spontaneous Awareness (of campaign)

Low Med Low

Prompted Awareness (of Campaign)

Med Med Med

Recognition of Message Low High Low

Recognition - CBA High High High

Engagement Low Med Low

Understanding of Main Message High High High

Message Credibility Low Low Low

Message Believability Low Med Low

Message Relevance Low Low Low

Impact on Social Barriers None None None

Impact on Brand Equity Low Damage Low Damage Low Damage

Impact on Purchase Intent None None None

9

Multipack fixture surround

Shelf highlighters

Petrol nozzle

Shelf strip

Aisle end shroud

Q13a. Do you remember having seen this promotional material for Extra in store today or on any recent visits to this or other stores?

Pre%

Post%

Awareness: At shopper exit, total awareness of the point of sale material has significantly increased. Bigger pieces of POS noticed.

Seen any POS material

Base: (445) (399)

50

17

43

4

27

28

11

23

5

7

38 72

Instore

* Significant to 95% reliability pre v post

*

*

*

*

Millward Brown

10Base Total Respondents – Extra (160) A/B - Significantly different at the 95% confidence levelIPSOS

Awareness/Message: Prompted results showed snack replacement message is very clearly coming through

Media

76Helps you snack less

Total post%

CAWITracking

norm%

65

PerformanceVs

norms

Millward Brown

11

Awareness/Branding: Millward Brown confirms the ad was sufficiently branded

%

Base Total Respondents – Extra (160) A/B – Significantly different at the 95% confidence level

Ipsos & Millward Brown

media

Branding (top box)

Total post%

CAWITracking

norm%

2420

PerformanceVs

norms

=

Millward Brown

12

38

7

40

9

3

Q14. How easy was it to tell which brand of chewing gum this was for?

Couldn’t fail to remember it was for Extra

Pre%

Base (seen material):

Post%

It’s quite good at making me remember it is for Extra

It is not all that good at making me remember

It could have been for any brand of chewing gum

It could have been for almost anything

Mean score:

45

7

37

6

3

(169) (289)

4.07 4.11

Awareness/Branding: Prompted with POS, clarity of ‘Extra’ Branding appears to be at good levels Instore

Millward Brown

13

Perception/Engagement: Results showed the ad is entertaining and engagement is high

Base Total Respondents – Total 480 for finished film; Total 200 for the animatic version. A/B – Significantly different at the 95% confidence level

media

Enjoyment

Engagement

Total post%

CAWITracking

norm%

60

4.58

60

6.79

PerformanceVs

norms

=

14

35

56

37

56

35

49

61

58

65

37

48

59

53

52

35

New info.

Different info

Relevant

Credible

Better than others

PerceptionCAWI

Tracking norm %

53

45

49

71

49

Total post

%

Perception/Credibility: Regional test also confirms credibility as an issue, particularly amongst light/lapsed chewers. Credibility less of an issue amongst 25-44 year old, female heavy chewers.

media

* Significant to 95%

* Caution: low base

39

57

47

52

30

Light/ lapsed

%

HeavyUsers

%45

58

57

65

40

Male Users

%41

55

46

58

30

Female Users

%

43

61

58

60

40

42

58

52

59

35

*

*

*

Base: (19 ads*) (245) (255)(248) (252)

New info.

Different info

Relevant

Credible

Better than others

Perception 16 - 24 post

%

25 – 44 post

%

45+ post

%

Base: (158) (63)(79)

=

Perf. Vs norms

Millward Brown

15

Perception: Impact on social barriers

• No shifts in attitudes or perceptions over the 8 week test period.

– We don't’ know if there is a potential for longer term shift.

media

16Base Total Respondents – Extra (160), Control Cell (160), A/B

– Significantly different at the 95% confidence level

Perception/Branding: Focus on snack replacement message results in some drop in breath freshening benefits of Extra. Ad helps to modernise the Extra brand

Medium/heavy Light/Lapsing

Pre test

Ipsos

Brand image (Top Box of 5pt scale) %

Extra

(a)

Control

(b)

+ / - Extra

(a)

Control

(b)

+ / - Extra

(a)

Control

(b)

+ / -

Base: Total Respondents 160 160 61 61 99 99

Is an exciting gum 13 13 0 20 19 1 8 9 -1

Is a product I want to try 27 21 6 34 30 4 23 16 7

Is appealing because of its flavours

29 236 35 32 3 26 18 8

Is a cool brand 28C 26 2 37 30 7 23 24 -1

Appeals to me because it gives me a fresh mouth

35C 39-4 50 47 3 25 34 -9

Helps my chances with the opposite sex

9 72 18 8 10 3 6 -3

Has a fresh taste and flavour 37C 37 0 43 46 -3 33 32 1

Appeals to me because it would be a unique chewing experience

11 15-4 18 17 1 7 13 -6

Helps you feel confident about getting close to others

13 24A-11 13 32A -19 13 19 -6

Is a modern brand 33C 25 8 40 28 12 29 24 5

Plays a role for adults 18 20 -2 27 22 5 13 19 -6

Offers more than just freshness 19 21 -2 30 27 3 12 17 -5

Freshens your breath 37C 45 -8 46 50 -4 31 42 -11

Has a very good taste 41C 41 0 50 44 6 36 38 -2

Helps you to release nervous energy

16C 17 -1 23 26 -3 11 11 0

Total Sample

17

Central ROC

Advantage

Relevance

Presence

Bonding

77%

74%

45%

20%

Pre Post Pre Post

79%

76%

45%

26%

79%

73%

43%

29%

80%

78%

45%

23%

Perception/Branding: In regional test, for Extra we see growth in both regions – and a growth in bonding only in Central

Millward Brown

media

18

Q12. Please give your impressions of these brands, whether or not you’ve TRIED them yourself.

Are good quality

Gives you what you want from a chewing gum

Appeal to you more than other brands

Taste better than other brands

Is the most popular brand of chewing gum

More acceptable price than other brands

Are growing more popular

Offer something different to other brands

Total Image Change (Extra)

Total Image Change (other brands)

Central%

ROC%

63

52

44

39

35

28

19

14

Base (Heard of): (245)

67

52

48

42

39

31

21

14

67

63

47

47

43

28

26

10

65

57

46

41

37

30

20

10

(251)

Pre Post Pre Post

(168) (169)

+20 -25

-7 +11

Perception/Branding: Visibility driving improved perception of brand equity – not due to BOC message media

19

The only brand I would consider

One of 2 or 3 brands I'd consider

One of several brands I'd consider

A brand I might consider

A brand I would not consider

Mean score:

Central%

ROC%

13

39

24

21

4

Base: (245) (168)(251) (169)

Pre Post Pre PostQ10. The next time you buy chewing gum, how likely are you to consider choosing …(BRAND)?

10

41

24

21

4

14

36

21

22

7

12

39

25

21

3

3.36 3.283.32 3.36

Persuasion: In central, consideration shows little change for Extra Gum – even when cut by heavy/medium/light, male/female media

20

Q3. Which of these brands of chewing gum did you buy in store today?

Extra Gum

Extra Ice

Airwaves

Orbit Complete

Extra Fusion

Trident Splash

Wrigley’s Spearmint

Trident Soft

Wrigley’s Doublemint

Juicy Fruit

Trident Sweet Kicks

Hubba Bubba

Mentos Pure Fresh

Base: Bought today

16

14

9

0

3

7

3

0

2

1

2

40

2

Pre%

Post%

(130)

14

17

7

1

3

5

2

0

0

1

0

44

5

(121)

Persuasion: However there is limited evidence that purchase of Extra has increased amongst those who bought gum on the day

Instore

21

Persuasion: TV has had no incremental impact in Central Vs total coverage but Extra value sales is ahead by +1.6%ppt in Central Vs total

Total Coverage Regional Breakdown: Total Wrigley Value Sales 8wks of BoC Trial Vs Previous 8wks

Source ACNielsen Answers data: Pre Trial data 8wks to w/e 30.08.08. Trial data 8wks to w/e 25.10.08.

Value Sales 8wks to w/e

30.08.08

Value Sales 8wks to w/e

25.10.08Value Sales

% ChgValue Sales Actual Chg

Total Coverage £33,475,973 £35,498,910 6.0% £2,022,938Central £4,683,708 £4,962,889 6.0% £279,181North East £1,667,537 £1,863,921 11.8% £196,384Yorkshire £3,347,114 £3,618,904 8.1% £271,790Lancs and English Border £4,218,481 £4,530,928 7.4% £312,448East of England £2,317,537 £2,486,218 7.3% £168,681Wales & West £2,901,990 £3,084,592 6.3% £182,602Scotland £3,679,405 £3,901,806 6.0% £222,401London £6,767,387 £7,055,034 4.3% £287,646South & South East £2,823,748 £2,928,818 3.7% £105,071South West £1,069,067 £1,065,801 -0.3% -£3,266

Sales

Value Sales 8wks to w/e

30.08.08

Value Sales 8wks to w/e

25.10.08Value Sales

% ChgValue Sales Actual Chg

Total Coverage £23,471,316 £25,064,058 6.8% £1,592,742Central £3,212,558 £3,481,229 8.4% £268,671North East £1,183,046 £1,332,683 12.6% £149,637Yorkshire £2,327,567 £2,538,026 9.0% £210,459Lancs and English Border £3,049,774 £3,289,565 7.9% £239,791East of England £1,611,033 £1,722,333 6.9% £111,300Scotland £2,707,079 £2,877,422 6.3% £170,343Wales & West £2,069,054 £2,196,199 6.1% £127,145London £4,545,611 £4,778,363 5.1% £232,752South & South East £2,026,240 £2,109,546 4.1% £83,306South West £739,353 £738,691 -0.1% -£662

Total Coverage Regional Breakdown: Extra Brand : Value Sales 8wks of BoC Trial Vs Previous 8wks

22

Persuasion: Within JS, yoy % growth trends, Tot Wrigley performance is +1.7%ppt, ahead of control and +2.5% ppt ahead of total coverage but behind total grocery mults.

Source ACNielsen DME data to w/e 25.10.08. ACNielsen Answers data to w/e 25.10.08

YoY Value Sales % Chg 8wks pre trial w/e 30.08.08

YoY Value Sales % Chg 8wks trial

w/e 25.10.08 DifferenceTotal Coverage -9.3% -9.9% -0.7%Grocery Multiples -5.2% -0.9% 4.3%JS Control Stores 11.4% 11.5% 0.1%JS BoC Stores 6.0% 7.8% 1.8%

JS Control Stores -2.5% -5.2% -2.7%JS BoC Stores -11.9% -18.1% -6.2%

JS Control Stores 19.7% 25.7% 6.0%JS BoC Stores 13.6% 20.2% 6.6%

JS Control Stores 56.4% 34.8% -21.6%JS BoC Stores 36.0% 35.0% -1.0%

JS Control Stores 18.5% 16.5% -2.1%JS BoC Stores 11.6% 10.4% -1.2%

JS Control Stores -0.1% 13.6% 13.7%JS BoC Stores -8.6% 11.0% 19.6%

JS Control Stores 15.7% 7.8% -8.0%JS BoC Stores 13.4% 11.1% -2.3%

JS Control Stores 14.6% 23.5% 8.9%JS BoC Stores 3.0% 9.3% 6.3%

Total Extra Brand

Total Airwaves Brand

Total Orbit Brand

Total Extra Peppermint

Total Wrigley

Wrigley Singlepack

Wrigley Multipack

Wrigley Bottlepack

Has The Performance in the BoC Stores being better than the Control Stores?

Sales

Total Extra +0.9%ppt ahead of controlPoor performance in single packs reflects move away from gondola ends (only at Kiosks).

23

Persuasion: Comparing performance in JS pre and during shows total Wrigley

sales in BoC Stores +4.7% pts compared to the remainder of the estate

12.1%

-1.8%

18.7% 17.8%12.8%

1.2%

14.4%

0.3%

29.4%

11.8%

-2.8%

19.0%

7.8%5.3%

15.0%

7.4%

Total Wrigley WrigleySinglepack

WrigleyMultipack

WrigleyBottlepack

Total Extra TotalAirwaves

Total Orbit Total ExtraPeppermint

B.O.C CONTROL

• Total Wrigley Value Sales in BOC Stores increased by +12.1% in the 8wks of the trial compared to the 8wks prior.

– This is +4.7% higher than the increase achieved by the remainder of the estate.– If rolled out nationally a +4.7% would be worth +£744k in JS p.a.

• Alternatively if rolled out to the whole Grocery Channel this +4.7% is worth +£4.6M p.a.

Source ACNielsen DME data: Pre Trial data 8wks to w/e 30.08.08. Trial data 8wks to w/e 25.10.08. ACNielsen Answers data to 25.10.08

Sainsburys Stores Value Sales % Chg: 8wks of Trial Vs Previous 8wks

+4.7% pts+12.5% pts +5.0% pts

+10.4% pts

+4.0% pts

+2.6% pts-2.1% pts

+3.7% pts

Sales