MAKING THE SALE BEFORE

THE SALE

IN NOVEMEBER 2011

TVNZ worked with our Agency Partners, Retailers and Colmar Brunton to design a piece of research that would allow us to understand:

– When purchase decisions occur– The role of brand and – How each media influences behaviour

THE RESEARCH APPROACH

1 2 3: high involvement :mid involvement :low involvement

Purchase behaviours and timelines. Influences on purchase and retailer decisions (incl. media).

*Sample sourced from CBClique Panel Fieldwork conducted 24 Nov – 5 Dec 2011. 20 minute interview. C. 300 sample in each category. Total n=912

ONLINE SURVEY OF RECENT PURCHASERS : LAST 3 MONTHS : n=912

THE RESEARCH APPROACH

CHOICE-BASED CONJOINT APPROACH

Consumers were shown a number of different competitive pricing scenarios and are asked to make a preference or choice between the competing options / retailers.

THE 3 PRODUCTS TESTED WERE;

TV BBQ Kettle

A Sony 40” TV with FreeviewPriced between $850–$999

A Masport 6 Burner BBQPriced between $539–$599

A Breville 1.7L Cordless Electric KettlePriced between $120–$139

EXAMPLE OF CHOICE-BASED CONJOINT APPROACH

Insight One

PRE-DEMAND INFLUENCES

Perceptions prior to and distinct from specific price messaging.

ACTIVATION INFLUENCES

Direct influence as a result of exposure to a price/advertising offer.

Price/promoSpecific price advertising

Price perceptionsPrevious experience/ recommendationsStaff/serviceRangeLocationLoyalty programmes

REASON FOR STORE CHOICE CAN BE BROKEN INTO DISTINCT TYPES OF INFLUENCE

Main reasons for store choice

TELEVISION OUTDOOR ITEM KETTLE/TOASTER

PRE-DEMAND INFLUENCES

ACTIVATION INFLUENCES

MORE THAN HALF OF STORE DECISIONS ARE DRIVEN BY PRE DEMAND INFLUENCES

TV Purchase – main reason for store choice

BRAND A BRAND B BRAND C

PRE-DEMAND INFLUENCES

ACTIVATION INFLUENCES

Base: Bought TV from Retailer. Brand A (n=60); Brand B (n=61); Brand C (n=30)

THE LEVEL OF PRE-DEMAND DIFFERS SIGNIFFICANTLY FROM RETAILER TO RETAILER

Insight Two

Base: Product Purchasers; TV (n=308) – Strong pre-demand is my first choice of store or one of several stores I would strongly consider shopping at.

FOR THE TV CATEGORY PRE-DEMAND CLOSELY MIRROR STORE VISITATION

PRE-DEMAND FOR STORES STORES VISITED & PURCHASED FROM CONVERSION

Insight Three

KNEW WHICH STORE TO BUY FROM BEFORE LEAVING HOME

Base: product bought; TV (n=308), Outdoor (n=296), Kettle/toaster (n=308);

BUYER AWARENESS IS HIGH – THEY KNOW WHO THEY ARE GOING TO BUY FROM WHEN THEY LEAVE THE HOUSE

DECIDED WHICH STORES TO VISIT

Base: product bought; TV (n=308), Outdoor (n=296), Kettle/toaster (n=308);

PRE DEMAND DRIVES DECISIONS. RETAILER DECISIONS ARE MADE UP TO A MONTH OUT FROM PURCHASE – MORE SO FOR HGH INVOLVEMENT PRODUCT

Insight Four

PRICE ELASTICITY – 40” TV

Base: product bought; TV (n=308), CBC Modelling

BRANDS WITH HIGHER PRE DEMAND ACHIEVES HIGHER PRICE POINTS

IN THINGS REMAINING EQUAL – THERE WAS 6% DIFFERENCE IN THE ‘ACCEPTABLE’ PRICE POINT BETWEEN BRAND A AND BRAND C

PRICE ELASTICITY – 40” TV

Base: product bought; TV (n=308), CBC Modelling

Insight 5

HYGIENE FACTOR – ALL MEDIUMS COMMUNICATION EFFECTIVELY ON PRICE

Base: product purchasers; TV (n=308) – Kettles/Toasters tend to be more price driven and less involved so not used, noticed TV advertising (n=45); noticed newspaper advertising (n=78)

Information noticed Price/sale information by medium

EMOTIVE COMMUNICATION - TV IS THE MOST EFFECTIVE MEDIUM AT BUILDING PRE DEMAND

Base: purchase TV (n=308); noticed TV advertising in lead up to purchase (n=45); noticed newspaper advertising in lead up to purchase (n=78)

TV Ads noticed for:- Store benefits

- Which store to visit- Which stores deliver an

enjoyable experience- Which stores are for people like me

- General Sales

Press Ads noticed for:- Which store has the best price

- General store info (hours, location)

Both noticed for:- Sale of specific product

- Stores offering lowest prices in general

- Product info- Best range

- Best staff / service- Stores I can trust

- Stores that are experts / leaders

EMOTIONAL

FUNCTIONAL

EMOTIVE COMMUNICATION – TV IS THE BEST MEDIUM IN WHICH TO COMMUNICATE EMOTIONAL BENEFIT

Base: product purchasers; TV (n=308) – Kettles/Toasters tend to be more price driven and less involved so not used, noticed TV advertising (n=45); noticed newspaper advertising (n=78)

EMOTIVE COMMUNICATION – TV IS THE BEST MEDIUM IN WHICH TO COMMUNICATE EMOTIONAL BENEFIT

Base: product purchasers; TV (n=308) – Kettles/Toasters tend to be more price driven and less involved so not used, noticed TV advertising (n=45); noticed newspaper advertising (n=78)

Insight Six

PROGRAMME INTEGRATION HAS BEEN PROVEN TO SHOW STRONG LIFTS IN PRE- DEMAND MEASURES

Colmar Brunton Post Analysis around Noel Leeming integration into Wheel of Fortune – September 2008