THE KETCHUP CASE

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THE KETCHUP CASE
Does Newspaper Advertising Works?
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Newspapers are under pressure

• Circulation are decreasing in most European
  countries
• Advertising has dropped drastically

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On the other hand

• The fragmentation is worse in tv, internet, radio
  etc.
• Newspapers are still a mass medium in many places
• Free papers means than more people than ever are
  reading newspapers

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Then why are the largest advertisers

• In TV
• Dansk Tipstjeneste
• Procter Gamble
• Arla Foods
• L'oreal
• Coca Cola
• Carlsberg

• In Newspapers
• Hewlett-packard
• SAS
• Bilka
• Philipson Wine
• Magasin
• Klasselotteriet

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Perhaps?

• The largest advertisers and agencies have (had?)
  lost faith in newspaper advertising
• Does newspaper advertising really workand how?
• Lack of documentation of effects

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The Story Framework

• Create our own case study
• A campaign, where the advertising effect could be
  isolated
• Introduce a completely unknown brand
• Establish a cooperation with an advertiser
• Find a professional advertising agency
• Document the effect also on sales!

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The Case

• A clinical laboratory test!
• No other marketing activities at all!
• A large newspaper campaign in all daily titles of
  JP/Politikens Hus A/S and our advertising
  partners
• Extensive research
• The product Ketchup!!

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Why Ketchup?
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An Italian ketchup
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An Average Mutti

• Been on the market for 8 years
• Distributed in supermarkets and specialty shops
• Priced as Heinz and other major competitors
• Nor a premium or a discount product
• Just an average ketchup

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Mutti Dal 1899 Solo Pomodore, but

• Awareness
• 0.8
• Advertising spending
• 0
• Price promotions
• 0
• In store activities
• 0

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With a Taste of More
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With a Taste of More
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With a Taste of More
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With a Taste of More
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With a Taste of More
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(No Transcript)
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The Media Plan
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The Media Plan

• 13 participating papers
• 10 insertions in each paper, full page 4-colour
• 3 week campaign period (sep oct 2003)
• 4 insertions first week
• 3 insertions second and third week
• First insertion 2 full pages
• Target group of campaign
• 25 55 years, who buys groceries

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The Media Plan

• Reach per insertion 45
• In the target group 44
• Reach of the campaign 77
• In the target group 79
• The campaign delivered 590 TRP
• In the target group 580 TRP
• Gross price of 4.9 mill. DKK (660 000 EURO)

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soon after SuperGros were on the field. Of
course I wasnt particular popular with this
customer either. She had almost gone crazy seeing
such a big ad without she knew anything about the
campaign. So now she was thinking about a job as
a guard in an auto museum. She wanted a quotation
right away. From the diary of Karen Søgaard,
importer of Mutti
Even though the pros had warned that there
would be reactions already after the first ad, I
was surprised to get them already from the start
of the day. Do people in advertising sit up all
night to be on the forefront of events? From the
diary of Karen Søgaard, importer of Mutti
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And the Figures Showed
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Those who had seen the Campaign

• 87 believe they have seen the ad in a newspaper
  - 10 on tv.
• 35 believe the ad tells it is quality ketchup.
• 58 would stop and look at the ads, if they see
  them again
• 53 would like to try the product

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Panic at the retailers

• An unexpected BtB-effect
• All the leading retailers contacted the importer
  in the first week
• The purchasing managers at the retailers also
  reads newspapers!
• More distribution channels and more to come!
• The shelf space was more than doubled

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And the figures showed
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4
2
Sales increase
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We Did a Follow-up

• One week advertising (week 10)
• 4 insertions, same ads, same newspapers
• 59 GRP per insertion and 240 GRP total
• 235 TRP in the target group
• Price promotion in week 10 11 in Irma, a
  supermarket chain in Copenhagen
• In week 11 advertised in flyer

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Awareness
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And Sales

• 285 sales increase in the period
• Irma in a league of its own
• 147 sales increase in january/february
• 782 sales increase during price promotion
• 190 sales increase after campaign
• Best selling ketchup brand

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Mustard goes with Ketchup

• Was Mutti just a lucky punch or
• A number of smaller case studies in Denmark
• Procter Gamble (Pampers)
• Job Liv (trade union)
• 112nu (security)
• Rahbek Fisk (ready to eat meals)
• IBM
• Tænk test (consumer magasine)
• A large scale copy in Norway with mustard

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The Smaller Danish Cases

• Wide variance in campaign sizes
• Some newspaper only some multimedia
• All cases except one shows very positive
  results
• Higher awareness
• Higher sales
• Results above advertiser expectation

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The Mustard Case

• Inspired by the ketchup case, the Norwegian Media
  Business Association made the mustard case
• Same basic idea take a relatively unknown
  product and advertise it exclusively in newspapers

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The Mustard Case

• Our choice was Edmond Fallot Dijon Mustard
• A somewhat narrower product category
• And an even narrower sub category
• Dijon mustard represents only 15 of the mustard
  market in Norway!
• And a product carrying a somewhat hard to
  remember name

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Mustard Market Shares
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The Mustard Ads
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The Mustard Ads
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The Mustard Ads
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Brand Awareness
Post campaign (Friday 3 Desweek 49)
Campaign Period (Friday 13 Nov week 46)
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Market Shares in Distributed Stores
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And the Sales
2
0
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Sales increase
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THE KETCHUP CASE
Newspaper Advertising Works!