Ariel

University of Bern, Nov. 2009

Agenda

• Introduction• Ariel Case – Applying P&G brand building

framework– Landscape– Who– What– How

P&G at a glanceThe No 1. Fast Moving Consumer Goods Company in the World

• - $79 billions in sales• - Offices in 80 countries, Products sold in 160 countries• - More than 300 brands• - 135,000 employees • Industry sector leader in Dow Jones Sustainability Index

for 7 out of 9 years

3 billion times a day P&G products touch the live of consumers all over the world

P&G Western Europe

• P&G Geneva Office:– Headquarter for Europe,

Africa, Middle and Far East

– 2650 employees from 70 different nationalities

– Represents one quarter of P&G business

– Home to 18 of P&G’s 23 “Billion Dollar Brands”

– 34’500 employees

Agenda

• Introduction• Ariel Case – Applying P&G brand

building framework– Landscape– Who– What– How

ARIEL AND SUSTAINABILITY-

Making a brand more relevant

Case Study

• Launched in 1989 - first liquid detergent in Nordic.

• In 2003 successfully introduced Ariel sensitive.

• In 2006 we came with the new Ariel Cool Clean Formula, designed for washing also in low temperatures

• In 2008 Ariel launched new formula, with competitive performance and solubility.

Background - Ariel in Nordic

Sustainability and Ariel?

• The Nordic consumer is the most environmentally concerned in WE and the region is in the forefront of sustainability thinking

• Insights from recent equity scan and focus groups were that Ariel lacked consumers trust. Ariel in Nordic is the 2nd or 3rd player in the market (depending on the countries).

Background – Sustainability in Nordic

Conclusion was that we found an opportunity around the enviromental issues and that Ariel lacked consumer trust

• Consumer preferences prevented inherent P&G strengths linked to scale • European Pipeline of Innovation

• External Stakeholder Requirements, Asthma & Allergy Assoc., Nordic Swan

• Geographical challenges• Different Water Standards (Soft Water)

Background – Previous challenges

Local constraints and limitations = Brand in decline

Background – Consequences

VALUE SHARE TOTAL NORDIC

1994

2007

26%

15%

The Opportunity: Grow Ariel to be market leader

Procter & Gamble committed to win in the category

Global agreement• 2008 Decision to revive the brand – Opportunity for new formula, and a Megabrand strategy

Local Action• Build trust with the Nordic consumer behind an initiative and leverage endorsers to drive credibility of the sustainability message

Introvert Extrovert

Modern

Traditional

The DYNAMIC consumerPerformance, Innovation


The ESTABLISHED consumerPerformance


The ETHICAL consumerEnvironment, Gentleness


The EMOTIONAL consumerFresh, Scented


29%

19%

19%

22%

Consumer needs – Laundry segment

P&G Consumer Research 2004-05

Introvert Extrovert

Modern

Traditional









29%

19%

19%

22%

Ariel product portfolio to meet consumer needs was…

Leadership Commitment…• “We are committed to helping solve the

world’s sustainability challenges. We do this through product innovations, improving the environmental profile of our operations and through our contributions to help children live, learn and thrive. Companies like P&G can be a force for good in the world. This is a responsibility and an opportunity that we embrace.”

A. G. Lafley,Chairman of the Board

Sustainable Development• Requires a balance between

• Environmental Protection– Waste Prevention & Management– Sustainable Resources Management

• Economic Development & Responsibility– For consumers & society– Economics within P&G

• Social Responsibility– Consumer understanding– Products which improve quality of life– Improve life in Developing Economies

SocialSocial

Econ

omic

Econ

omic Environm

entalEnvironm

ental

Our Sustainability Strategies1. Delight the consumer with sustainable innovations that

improve the environmental profile of our products

2. Improve the environmental profile of P&G’s operations

3. Improve lives through P&G’s social responsibility programs

4. Engage and equip all P&G’s employees to build sustainability thinking and practices into their everyday work

5. Shape the future sustainability agenda to ensure our freedom to innovate and operate in a responsible way

Lifecycle Assessment

Energy consumption

Water consumption

Solid waste

Global warming

Ozone depletion

Human toxicity

Summer smog

Acidification

Eutrophication

Aquatic ecotoxicity

Confidential P&G Information – not to be copied, shared, or disclosed without the expressed written permission of P&G

Brand assesment as to where P&G can make their products relevant in creating a more sustainable enviroment.

Analysis shows that detergent i.e Ariel have a huge enviromental impact through higher solubility.

Agenda



The 1st step = Assess the local Landscape

Assessing the landscape

Objective: - Identify opportunities that take us back on the growth track

- Our starting point was to thoroughly assess the laundry landscape

- Consumer and Social Context (trends, unmet consumer needs)- Competition (who plays where, who is growing – why / how)- Customer / Shopper considerations

Assessing the landscape

Consumer insight:Top 2 purchase drivers for laundry

detergents in Denmark are

1) Cleaning performance

2) Environmental performance

Internal insights:

1) The new formula works even better in cold water, thanks to

better solubility (Cleanning Perfomance)

2)The biggest climate gain for P&Gis to change the laundry habit

of consumers (Enviromental performance)

Ariel product statement:Sustainable cleaning

with superior performance

Agenda



Defining the consumer target

Who to target?Understanding the target group: “CONSUMER IS BOSS!”

• Understand consumer needs, desires, attitudes, aspirations

• Decide a strategic target and prime prospect

ST: Where is the majority of the (potential) brand users?

PP: Who represents the greatest growth and volume potential within the ST?

All households

Strategic target

Prime prospect

The Consumer Trend

There is growing momentum around breaking the global challenge into “everyday” tasks

Environmentally concerned consumers dominate the population in WE, especially in Nordic!

•Deep Greens

• Altruistic minority who believe they can make an impact with their individual efforts

• Prepared to spend significant time to support the environment- politically and socially active

•22% of Consumers

Bandwagon Greens

• Aren’t prepared to make an effort because others aren’t.

• Believe that responsibility lies with government and large

corporations not individuals

• Average 10% (highest in Spain & Portugal)

6% of Consumers

Community Greens• The majority who make an effort but believe it will only have an impact if

others do the same

• Includes people who support environmentalism with their wallets

but are too busy to change their lifestyle. This group is not willing to compromise on time or performance

63% of Consumers

Dirty Browns

• Either don’t know what to do to help or simply don’t believe that

environment problems are an

issue

6% of Consumers

Defining WHO to target

REGIONALLY DEFINED => NORDIC• Strategic Target (broad target group)

• Women 35+

• Prime Prospect• Community Greens

Laundry is a low involvement productThe opportunity is to make the product more relevant to the consumer

The Ariel user => Community Greens

The Ariel user - Lifestyle• She is a confident woman who pays attention to looks and appearances• She likes to get out of her comfort zone, take risks and embrace change• She is a first mover, looking for, and trying new experiences and products

The Ariel user - Demographic• Women 30+, living in mid-sized city, with above normal income and education

Ariel in the mind of Nordic consumers• Makes laundry process simpler• Quality conscious• Authority on care of fabrics• Protects colors and keep clothes look like new• Superior stain removal

Agenda



WHAT are we communicating/selling?

WHAT - The launch/initiative concept

INSIGHT (accepted consumer belief)• Defining an issue and the tension connected with that

BENEFIT (what the proposition delivers)• What does it give that I have not already got?• Must be meaningful and relevant (why do I need it?)

REASON TO BELIEVE (why the benefit is real)• Why should I believe you

INSIGHT:“We all hear about global warming and want to do something to help but it can be hard to know what to do about it”

WHAT is the Ariel concept?

BENEFIT:“With Ariel you can wash at 30 degrees and get

great results. By turning down the temperature on your washing machine you can do your bit to help keep the worlds temperature down”

REASON TO BELIEVE:Endorsement from WWF (World Wildlife Fund)(Ariel “owns” superior cleaning)

KEY VISUAL: Helena Christensen and Turn to 30SELLING LINE: “Brilliant Cleaning, less energy”

Agenda



HOW will we go to market?

OBJECTIVE OF THE MARKETING PROGRAM

⇒ To develop a trustful relationship between your brand/product and the consumer (Build Brand Equity)

⇒ Engage Consumer into a conversation with the brand

HOW - Developing our marketing program

Engage in a conversation

with her

“TRIAL”

Conversation leads to a

relationship

“USAGE”

Successful Relationship

leads to loyalty

“LOYALTY and ADVOCACY”

Credentialing with Sustainability Endorsements- WWF- Nordic Swan

Local celebrity Influencer- Helena Christensen

TV – Linking sustainability to Ariel- Dials- Turn to 30- Bosch Partnership

Ariel: Drive credibility on sustainability

Magazine Print- Ariel- Ariel + WWF- Ariel + Helena Christensen

Internet- Future Friendly concept – tips for the consumers how to save energy

Partnership (Bosch)- Help create BiC instore visibility- POS material- Demo personnel in-store

Ariel: Drive credibility on sustainability

How – PR and communication

Ekstra Bladet

Femina

Launch TV copy

Dials

Making it all come together

Making it all come together

WHO?

Disproportionately delight

Community Greens

HOW?Making enviromental awareness

the center of our mediaplan

LANDSCAPE:Cleaning and Enviromental

WHAT?“Brilliant Cleaning,

less energy”

EXECUTION IN-STORE

RESULTS – Denmark Shares

- Inspiration for further innovation...

- Share growth + 25% Y1+Y2

- Past 6 Months => 5.0 pts up vs. Year ago- Driven by Ariel relaunch- Instore theater- Future Friendly concept

Communication Idea:“Ariel Excel Gel gives you all the cleaning benefits of hot in cold

water”

…Cold is the new hot

Imagine, mid September 2008 Imagine, mid September 2008 in the UK ...in the UK ...

Pre-launch (press)

Pre-Launch (outdoor)

Pre-launch (national outdoor)

Pre-launch (regional outdoor)

Followed by the reveal as of Followed by the reveal as of October...October...

TV – Copy

Launch (press)

Launch (outdoor)

Launch (Internet)

Launch (PR Event)

The results

– Ariel Excel Gel is now the biggest Ariel form

– Sales and share + 20% and NPV +50% vs. target

– Best Ariel copy in 5 years

– Top persuasion, visibility and branding

– Marketing plan reapplied in 12 WE countries

Key Learnings and Take Aways- Clear Objective: Be clear on what you want to achieve

- Follow the Brand Building Framework Process:

1) Assess the landscape

2) Delight your WHO

3) Focus on your points of difference in WHAT you communicate

4) Be effective in HOW you communicate by engaging in a conversation with your WHO

- Track your results learn adjust improve continuously

THANK YOU!

Ariel

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Transcript of Ariel