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Connecting with our consumers
via Creative Family, Nestlé relationship program…




                              Marketing day – march 2008
The consumer has changed

• He is more informed, more confident, more demanding
• This confidence to challenge and
  question can be found in consumer
  changing views towards marketing,
  brands and advertising
• People are wising up…
The consumer is dictating
                             when he wants to be spoken to
                              by brands and how he wants
                                    to be spoken to

         There are 58mm people
          were registered at the
           National Do not call
                 registry
                                                                33% of adults had their
                                                                 name removed from
                                                                 mailing lists in 2003
                                                               compared to 16% in 1998
          87% of people felt they
          got too much junk mail
            (+18%pts in 3yrs)



       Consumers also want to know more than just the brand’s benefit

Source: Yankelovich Inc. Reengaging resistant consumers 2004
To be successful,
     the brands have to rethink
the way they are talking to consumers


     Consumers want deeper relationships
Creative family a way to engage
          and connect with our consumer

       A cross channel program targeted towards the family with children




         in home               out of home                        online
         magazine              couponing                          website
                               brands actions




A behavioral database that allows us to develop deeper relationship with our consumers and to better
target our marketing activities
Business objectives
• Increase awareness of our brands
• Drive loyalty with our existing consumers
• Increase usage opportunities for our
  products
• Encourage purchase
• Gain deeper consumer actionable insights
• and of course to build a relationship with
  our consumers
The priority target


Nestlé is one of the sole food companies for whom households with
   young
children are one of the main target groups for a series of brands

                               Nesquik
                         Herta Home baking
                                Knacki
                                Galak
                       Nestlé breakfast cereals
                            Maggi Frozen
                          Nestlé Ice cream
                                 …

   Families with children aged under 12 represent about 520 000 homes
   source : GFK
Why should the consumer
         wish to engage with us?

• Why would the consumer interact with my
  brand?
• What value am I adding to their life
• Product information is not enough to justify
  the relationship
Call out
    What’s important / of
  interest to mom’s about
       their children?
Our starting point is the
     consumer…
To build up a coherent and relevant proposition we have to better
                  understand our target group.




     Consumer insight:
      mothers with children of this age are very busy.
       Nevertheless they want to share special moments with
       them and establish an emotional bond.
      this happens through the activities that they are doing with
       their kids such as DIY, cookery, walks, outings
Consumer proposition



Creative Family is a trusted partner of the
parents. It will help them to share emotional
and caring moments with their children by
giving original, creative and easy to do ideas.
• The creative idea: share emotional
  moments with your children
• The values: family, conviviality, sharing,
  emotion
The magazines…


Two mailings in 2007 (April and October)

      written content relevant to the target
      a brand info section
      discount coupons
      a call-to-action pointing to the
       www.creativefamily.be website




Sent to 100 000 families with children aged 4 to 12
  who are heavy or medium users of A brands
In the shops…
Online…
Online activities

www.CreativeFamily.be

Launched: May 2007

  Main activities:

       Quality content
       exclusive advantages for
        members
       a new contest each month
       Monthly newsletter
Quality content & advantages

      Website Content in line with offline magazine

      Main sections:
            Family outdoors activities
            Creative Home activities
            Children books & DVDs
            Creative recipes family/children oriented

      Exclusive advantages
        for members
Contests and Brands’ actions
    in CreativeFamily.be
Monthly Newsletter

 Newsletter content:

 First Section:

 Editorial
 Monthly novelties of the 4 main
   sections


 Second Section:

 Exclusive advantages
 Brands’ contests
 Products’ information
 ‘Have your say’ Call2Action
The central piece:
 The DataBase
The main challenge:




    Avoid silos!
DB Approach: 360° Insights
      of Nestlé’s consumers

Integrate Offline and
Online data from the 3
different sources in
order to provide Nestlé
with Insights about their
customers and their
behaviours.
Integrate data into a
       Unique Consumer DB
In home                  Out of home
magazine                 couponing
                         brands actions




                        Online
                        Website &
                        eMarketing activities
What do we measure?

• Magazine DB: NAL
• Coupons: Matching with Mag DB
  – Online coupons will allow to go a step further
• Online (most measurable):
  – Socio-demographic information
    eg: Number and age of children
  – Behavioral information linked to profiles
    eg: Visits, contest participation, content consumption,
    cross brands engagement, …
Some results….
Impact of the mailings on our
        brands
NESTLE PILOT SET UP

                                   Wave 1: May                                              Wave 2: October

                             •Group 1: Control
                             •No mailing (customers never received
• Short-term impact of       “Creative Family")
  “Creative Family"          •Exposed to current media mix of Nestlé
  magazine on
  participating brands       participating brands
  awareness and
  perception, sales
  activation, media
  perception                 •Group 2: 1 Creative Family n°1                  •Group 3: Creative Family n°1 & 2
• Comparison of              •Direct Mail including Magazine, coupons and     •Second Direct Mail including Magazine,
  "Creative Family" vs.      letter                                           coupons and letter
  website rating             •Also exposed to current media mix of Nestlé
                             participating brands



                                                    • Long-term impact of “Creative Family" magazine on
Level of confidence :                                 participating brands awareness and perception,
G1 - N = 597  4%                                     sales activation, media perception
G2 - N = 559  4,15%


500    Number of phone interviews of 15-20 Min
HERTA
Base : Total

                        •   Brand funnel - Herta
    G
                        Exposed person    •Media recall
                                            Awareness              Trial               Loyalty


                                              Do you know    Have you ever          Do you intend to
                                              Herta DIY      tried this             buy this product in
      Media received                          Cakes?         product ?              the next weeks ?

    Group 3 : October
                                 100     79          79     58      46         60           27
    Magazine
    (n=554)
                                                                           + 84%*
                                                                                                          + 80%*

                                 100     79          79     44      35         77           27

                                                                                                           + 80%*
                                                                            + 40%*


    Group 1 : Control
                                 100     63          63     40      25         61           15
        (n=554)
                                                                                                              * Sign. Diff
GALAK

Base : Total


                             Brand funnel - Galak

                             Exposed person                  •Media recall
                                                               Awareness               Trial                   Loyalty
      Group 2 : May
                                                                                       M
                                                                 Do you know the      Have you ever
                                                                                       a                   Do you intend to
                                                                 white chocolate of   tried this
                                                                                       g                   buy this product in
         Media received                                          Galak?               product ?
                                                                                       a                   the next weeks ?
                                                                                     z
                                                                                     i
                                                      100   93           93       67 n         62     65           41
                                                                                     e

                                                                                     (
                                                                                     n                                           + 64%*
                                                                                     =
                                                      100   86           86       57           49     51           25
                   (n=554)
                                  Group 1 : Control
                                                                                     5
                                                                                     5
                                                                                     4
                                                                                     )

                                                                                                                                     * Sign. Diff
Recall of the magazine
Base : Group 2&3 (n=1.109) Spontaneous – One answer
            «Do you remember having received a magazine with ideas, recipes, and informations about food
                products? »
                                                      Group 3 : October Magazine
             Group 2 : May Magazine (n=554)
                                                                 (n=554)
                        Yes:              46                       +17%*            Yes:              54

                                                                                                                                         * Sign. Diff



Base : Remember receiving a mailing (n=555) Spontaneous + Aided – Several answers

   •     « What was the content of this mailing? »
           • Group 2 : May Magazine                                                        • Group 3 : October Magazine
                    (n=256)                                                                  (n=298)
       Coupons             33                  43        76         +10% Spont.                  36                  38        74



       Magazine                39              28   67             +36%* Spont.                            53             27        80



          Letter   10               30                              +20% Spont.             12         28       40
                                          40                                                                                        Spontaneous

                                                                                                                                    Aided
          Other     16                                                                     8



           89% of people mentioned al least one element                                    95% of people mentioned al least one element
Recall of the magazine
Base : Group 2&3 (n=1.109)   Aided – Several answers


            « Among the following magazines, which ones do you receive? » & « Which one have you already
            read? »

                                    • Group 2 : May                                  • Group 3 : October
                                        Magazine                                          Magazine
                                         (n=554)                                           (n=554)

              100 Façons / 100                                          49                                       42
                   Ideeën                                          44                                     36

             Le Lion / De Leeuw                                   41                                           40
                  (Delhaize)                                35                                         34

                                                             37              +38%*                                    51
                Creative Family
                                                     26                      +46%*                          38

           Envie de Plus / Zin in                      27                                         24
                  meer                          21                                           19

                                                   24                                       16
                 Best Shopping
                                              19                                       12



                                                                                                   Received
                                                                                                                           * Sign. Diff
                                                                                                   Read
COUPONS’ REDEMPTION

Base : Remember magazine and/or coupons (n=481) Aided – Only one answer


            « What did you do with the coupons of Creative Family? »
                            • Group 2 : May                                                       • Group 3 : October
                          Magazine (n=237)                                                          Magazine (n=244)


         Used all coupons* 3                                                        2



     Used several coupons              37
                                                                   89                        29                                   85

      Kept coupons to use
                                            49                                                        54
           them later

            Gave them to
                         2                                                          4
           somebody else


         Throuw them away      11                                                       16




      *: The percentage of “Used all coupons” is relatively low because the survey happens only 2 or 3 days after receiving the
      mailing.
THE OCTOBER MAGAZINE CONSOLIDATES
                                  THE RECALL OF THE BRANDS
Base : Remember Creative Family Spontaneous + Aided – Several answers


            « Can you quote all the brands that are in the Creative Family magazine? »

                                                                                                    Group 3 : October
                                                                                                    Magazine (n=282)
          Nesquik          19                 32                                   Nesquik total             21                        43
                                                                                Nesquik (sirop)         15                  26

     Herta (cake)          19            23                                   Nesquik (poudre)          14                  28
                                                                                      Herta total            22                         46
La Laitière (rice /                                                                Herta (cake)          18                       37
                           16          24
   chocolate)                                                                   Herta (cookies)         14                   32
                                                                                La Laitière total            24                        40
         Mousline      9          29                               La Laitière (rice / chocolate)            21                   30
                                                                            La Laitière (cream)         13             21                    Spontaneous
      Nescafé
                       8            37                                                 Mousline         12                  32               Aided
     Cappuccino
                                                                          Nescafé Cappuccino            13                   35
                                                                                          Maggi     4             29
            Galak          19               28
KEY MESSAGES

This Pilot identified a clear impact of the Creative Family concept on:

– Top Of Mind and Spontaneous Awareness: most participating brand benefits from an
  increase in awareness vs. control group

– The groups having received the DM has a much higher intention to buy than the
  group without DM

– High and growing recall and reading rates of the Magazine between May and
  October, and an increasing reading quality

– The Magazine perception is good: respondents like the magazine, find it interesting
  and think it gives good tips. They are particularly interested in the recipes and do it
  yourself subjects

– A lot of interviewees already used their coupons when we called them and a large
  majority intend to use them later
Creative Family
               a relevant program?
Creative Family is relevant for mothers

   it gives ideas linked to what is relevant to them when talking about
   activities with children : cookery, walks, outings
   the members of the Creative Family community will get exclusive advantages

 Creative Family is a trusted partner for mothers

   it is about well known Nestlé brands and products

 Creative Family is relevant for Nestlé

   increase the awareness of our brands
   develop our consumer loyalty and usage frequency by introducing new
    consumption usages with our products
   introduce new products to consumers and give them the opportunity to try
   increase the sales (through couponing and developing usage frequency)
   get feedback from our consumers and to generate consumer insights
Key factors for success
A relevant relationship proposition that is sufficiently
engaging for the target group to register in our database

A high value added content (service)

A consumer-centric approach: “the brands have understood
me”

Credibility: known brands and the Nestlé guarantee

Long-term vision, important to use the relationship (database)

An Internet platform that reflects the positive image we wish to
give to our consumers

An integrated and segmented database

Commitment from the management and the marketeers : it’s
a company program
Thank you for your attention
      Questions?
                        Contact:
    Diane Faynsztein - Market Intelligence Manager
                    Nestlé Belgilux
           Diane.Faynsztein@be.nestle.com

  René Dechamps Otamendi – Client Service Director
           OX2 - An LBi Group company
           Rene.Dechamps@lbigroup.be

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Creative Family (Nestlé Belgium) case

  • 1. Connecting with our consumers via Creative Family, Nestlé relationship program… Marketing day – march 2008
  • 2. The consumer has changed • He is more informed, more confident, more demanding • This confidence to challenge and question can be found in consumer changing views towards marketing, brands and advertising • People are wising up…
  • 3. The consumer is dictating when he wants to be spoken to by brands and how he wants to be spoken to There are 58mm people were registered at the National Do not call registry 33% of adults had their name removed from mailing lists in 2003 compared to 16% in 1998 87% of people felt they got too much junk mail (+18%pts in 3yrs) Consumers also want to know more than just the brand’s benefit Source: Yankelovich Inc. Reengaging resistant consumers 2004
  • 4. To be successful, the brands have to rethink the way they are talking to consumers Consumers want deeper relationships
  • 5. Creative family a way to engage and connect with our consumer A cross channel program targeted towards the family with children in home out of home online magazine couponing website brands actions A behavioral database that allows us to develop deeper relationship with our consumers and to better target our marketing activities
  • 6. Business objectives • Increase awareness of our brands • Drive loyalty with our existing consumers • Increase usage opportunities for our products • Encourage purchase • Gain deeper consumer actionable insights • and of course to build a relationship with our consumers
  • 7. The priority target Nestlé is one of the sole food companies for whom households with young children are one of the main target groups for a series of brands Nesquik Herta Home baking Knacki Galak Nestlé breakfast cereals Maggi Frozen Nestlé Ice cream … Families with children aged under 12 represent about 520 000 homes source : GFK
  • 8. Why should the consumer wish to engage with us? • Why would the consumer interact with my brand? • What value am I adding to their life • Product information is not enough to justify the relationship
  • 9. Call out What’s important / of interest to mom’s about their children?
  • 10. Our starting point is the consumer… To build up a coherent and relevant proposition we have to better understand our target group. Consumer insight:  mothers with children of this age are very busy. Nevertheless they want to share special moments with them and establish an emotional bond.  this happens through the activities that they are doing with their kids such as DIY, cookery, walks, outings
  • 11. Consumer proposition Creative Family is a trusted partner of the parents. It will help them to share emotional and caring moments with their children by giving original, creative and easy to do ideas.
  • 12. • The creative idea: share emotional moments with your children • The values: family, conviviality, sharing, emotion
  • 13. The magazines… Two mailings in 2007 (April and October) written content relevant to the target a brand info section discount coupons a call-to-action pointing to the www.creativefamily.be website Sent to 100 000 families with children aged 4 to 12 who are heavy or medium users of A brands
  • 16. Online activities www.CreativeFamily.be Launched: May 2007 Main activities:  Quality content  exclusive advantages for members  a new contest each month  Monthly newsletter
  • 17. Quality content & advantages Website Content in line with offline magazine Main sections: Family outdoors activities Creative Home activities Children books & DVDs Creative recipes family/children oriented Exclusive advantages for members
  • 18. Contests and Brands’ actions in CreativeFamily.be
  • 19. Monthly Newsletter Newsletter content: First Section: Editorial Monthly novelties of the 4 main sections Second Section: Exclusive advantages Brands’ contests Products’ information ‘Have your say’ Call2Action
  • 20. The central piece: The DataBase
  • 21. The main challenge: Avoid silos!
  • 22. DB Approach: 360° Insights of Nestlé’s consumers Integrate Offline and Online data from the 3 different sources in order to provide Nestlé with Insights about their customers and their behaviours.
  • 23. Integrate data into a Unique Consumer DB In home Out of home magazine couponing brands actions Online Website & eMarketing activities
  • 24. What do we measure? • Magazine DB: NAL • Coupons: Matching with Mag DB – Online coupons will allow to go a step further • Online (most measurable): – Socio-demographic information eg: Number and age of children – Behavioral information linked to profiles eg: Visits, contest participation, content consumption, cross brands engagement, …
  • 25. Some results…. Impact of the mailings on our brands
  • 26. NESTLE PILOT SET UP Wave 1: May Wave 2: October •Group 1: Control •No mailing (customers never received • Short-term impact of “Creative Family") “Creative Family" •Exposed to current media mix of Nestlé magazine on participating brands participating brands awareness and perception, sales activation, media perception •Group 2: 1 Creative Family n°1 •Group 3: Creative Family n°1 & 2 • Comparison of •Direct Mail including Magazine, coupons and •Second Direct Mail including Magazine, "Creative Family" vs. letter coupons and letter website rating •Also exposed to current media mix of Nestlé participating brands • Long-term impact of “Creative Family" magazine on Level of confidence : participating brands awareness and perception, G1 - N = 597  4% sales activation, media perception G2 - N = 559  4,15% 500 Number of phone interviews of 15-20 Min
  • 27. HERTA Base : Total • Brand funnel - Herta G Exposed person •Media recall Awareness Trial Loyalty Do you know Have you ever Do you intend to Herta DIY tried this buy this product in Media received Cakes? product ? the next weeks ? Group 3 : October 100 79 79 58 46 60 27 Magazine (n=554) + 84%* + 80%* 100 79 79 44 35 77 27 + 80%* + 40%* Group 1 : Control 100 63 63 40 25 61 15 (n=554) * Sign. Diff
  • 28. GALAK Base : Total Brand funnel - Galak Exposed person •Media recall Awareness Trial Loyalty Group 2 : May M Do you know the Have you ever a Do you intend to white chocolate of tried this g buy this product in Media received Galak? product ? a the next weeks ? z i 100 93 93 67 n 62 65 41 e ( n + 64%* = 100 86 86 57 49 51 25 (n=554) Group 1 : Control 5 5 4 ) * Sign. Diff
  • 29. Recall of the magazine Base : Group 2&3 (n=1.109) Spontaneous – One answer «Do you remember having received a magazine with ideas, recipes, and informations about food products? » Group 3 : October Magazine Group 2 : May Magazine (n=554) (n=554) Yes: 46 +17%* Yes: 54 * Sign. Diff Base : Remember receiving a mailing (n=555) Spontaneous + Aided – Several answers • « What was the content of this mailing? » • Group 2 : May Magazine • Group 3 : October Magazine (n=256) (n=298) Coupons 33 43 76 +10% Spont. 36 38 74 Magazine 39 28 67 +36%* Spont. 53 27 80 Letter 10 30 +20% Spont. 12 28 40 40 Spontaneous Aided Other 16 8 89% of people mentioned al least one element 95% of people mentioned al least one element
  • 30. Recall of the magazine Base : Group 2&3 (n=1.109) Aided – Several answers « Among the following magazines, which ones do you receive? » & « Which one have you already read? » • Group 2 : May • Group 3 : October Magazine Magazine (n=554) (n=554) 100 Façons / 100 49 42 Ideeën 44 36 Le Lion / De Leeuw 41 40 (Delhaize) 35 34 37 +38%* 51 Creative Family 26 +46%* 38 Envie de Plus / Zin in 27 24 meer 21 19 24 16 Best Shopping 19 12 Received * Sign. Diff Read
  • 31. COUPONS’ REDEMPTION Base : Remember magazine and/or coupons (n=481) Aided – Only one answer « What did you do with the coupons of Creative Family? » • Group 2 : May • Group 3 : October Magazine (n=237) Magazine (n=244) Used all coupons* 3 2 Used several coupons 37 89 29 85 Kept coupons to use 49 54 them later Gave them to 2 4 somebody else Throuw them away 11 16 *: The percentage of “Used all coupons” is relatively low because the survey happens only 2 or 3 days after receiving the mailing.
  • 32. THE OCTOBER MAGAZINE CONSOLIDATES THE RECALL OF THE BRANDS Base : Remember Creative Family Spontaneous + Aided – Several answers « Can you quote all the brands that are in the Creative Family magazine? » Group 3 : October Magazine (n=282) Nesquik 19 32 Nesquik total 21 43 Nesquik (sirop) 15 26 Herta (cake) 19 23 Nesquik (poudre) 14 28 Herta total 22 46 La Laitière (rice / Herta (cake) 18 37 16 24 chocolate) Herta (cookies) 14 32 La Laitière total 24 40 Mousline 9 29 La Laitière (rice / chocolate) 21 30 La Laitière (cream) 13 21 Spontaneous Nescafé 8 37 Mousline 12 32 Aided Cappuccino Nescafé Cappuccino 13 35 Maggi 4 29 Galak 19 28
  • 33. KEY MESSAGES This Pilot identified a clear impact of the Creative Family concept on: – Top Of Mind and Spontaneous Awareness: most participating brand benefits from an increase in awareness vs. control group – The groups having received the DM has a much higher intention to buy than the group without DM – High and growing recall and reading rates of the Magazine between May and October, and an increasing reading quality – The Magazine perception is good: respondents like the magazine, find it interesting and think it gives good tips. They are particularly interested in the recipes and do it yourself subjects – A lot of interviewees already used their coupons when we called them and a large majority intend to use them later
  • 34. Creative Family a relevant program? Creative Family is relevant for mothers it gives ideas linked to what is relevant to them when talking about activities with children : cookery, walks, outings the members of the Creative Family community will get exclusive advantages Creative Family is a trusted partner for mothers it is about well known Nestlé brands and products Creative Family is relevant for Nestlé increase the awareness of our brands develop our consumer loyalty and usage frequency by introducing new consumption usages with our products introduce new products to consumers and give them the opportunity to try increase the sales (through couponing and developing usage frequency) get feedback from our consumers and to generate consumer insights
  • 35. Key factors for success A relevant relationship proposition that is sufficiently engaging for the target group to register in our database A high value added content (service) A consumer-centric approach: “the brands have understood me” Credibility: known brands and the Nestlé guarantee Long-term vision, important to use the relationship (database) An Internet platform that reflects the positive image we wish to give to our consumers An integrated and segmented database Commitment from the management and the marketeers : it’s a company program
  • 36. Thank you for your attention Questions? Contact: Diane Faynsztein - Market Intelligence Manager Nestlé Belgilux Diane.Faynsztein@be.nestle.com René Dechamps Otamendi – Client Service Director OX2 - An LBi Group company Rene.Dechamps@lbigroup.be

Notas del editor

  1. Overlap?