Case Study Whiskas

1
Case Study - Whiskas

• 2002 IDM Business Performance Award - Highly
  Commended

2
Background

• Declining wet cat food market
• Whiskas faced increasing competition. By 1998
  Whiskas could no longer claim that 8 out of 10
  cats preferred their product
• A strategic decision was made to create a product
  extension, replacing tins with a pouch design.
  The pouch increased profit margins and gave
  Whiskas a unique selling proposition

3
Background (2)

• Initial pouch launch followed a classic FMCG
  approach
• Target segments for sampling were selected from
  the Whiskas database and cold lists
• After 18 months pouches had failed to break
  through as a main stream alternative to tins
• Time pressure mounted as competitors would obtain
  the capability to mass-produce pouches

4
Main Objectives

• Two main objectives
• To regain Whiskas' position as the market leader
  in the short term
• To replace traditional tins with a new pouch
  format in the long term

5
Business Objectives

• To increase pouch penetration by 50
• To encourage trial amongst non-users
• To convert regular users of tins to regular users
  of pouches
• To increase frequency among current users

6
Business Objectives (2)

• To overcome the 'treat' image and position
  pouches as a daily product
• To overcome the perceived high value of pouches
  which needed to be offset against the fact that
  they are convenient, there is no waste and cats
  love them

7
Whiskas Taste Challenge 2000

• Cat research revealed 3 days of feeding (6
  pouches) was usually sufficient to change feeding
  preference
• Cats prefer pouches to tins because the food is
  served at room temperature and doesnt dry out
• Cat owners dont like to be told what to feed
  their pet

8
Whiskas Taste Challenge 2000 (2)

• The Taste Challenge asked owners to let their
  pets decide if they preferred pouches to tins
• Direct mail pack enclosed six pouches, a feeding
  diary, a questionnaire, money off coupons and
  recommend a friend
• The feeding diary engaged owners with their pets
  feeding process
• The questionnaire provided vital feedback

9
Direct Mail and Door Drop
10
Whiskas Taste Challenge 2000 (3)

• Multi-media communications appeared on regional
  TV, regional radio and shopping trolley
  advertisements, phased to allow for fulfilment

11
Results 2000

• Cat food purchasing habits were affected for six
  months after the mailing
• The unincentivised feeding diary achieved a 14
  percent response. The feedback allowed Whiskas to
  create a stronger message for 2001
• Direct mail replaced advertising as the main
  marketing model for the first time in Whiskas
  history

12
Results 2000 (2)

• 100 increase in market penetration was achieved
  against an objective target of 50

13
Cats Online

• An online response mechanism was set-up,
  partially to alleviate fulfilment handling issues
  from the high response volumes
• Online response handling is cheaper than offline
• TV and press images featured on the website and
  were available to download as screen savers
• Online registration linked directly to the
  database
• Data processing filters were put in place

14
Data Processing Diagram
15
Follow-up Campaign 2001

• A more focused and integrated approach was
  adopted for 2001
• The message positioned pouches as a mainstream
  alternative to tins 90 percent of cats prefer
  Whiskas pouches to tins

16
Customer Targeting Strategy

• 35 of the UKs cat owners were data captured by
  2000
• The Taste Challenge was initially despatched to
  1.4 million households
• Households with 2 cats were de-selected
• Following the first database and cold list
  mailings, new ways had to be found to target more
  cat owners

17
Customer Targeting Strategy (2)

• Door drops were selected as offering the best
  means of reaching high numbers of cat owners
• Postcode sectors were profiled using the Whiskas
  database
• A combination of distribution methods were chosen
  to reach the target audience News Share, Royal
  Mail and solus door drops
• Data processing filters were used for fulfilment

18
Customer Targeting Strategy (3)

• Targeting became increasingly sophisticated as
  the campaign progressed
• A tightly targeted promotion with a leading
  supermarket produced a significantly higher
  response rate than for previous promotions
• Supermarket cat food customers were matched with
  the Whiskas database of cat owners and the
  de-duplicated individuals were mailed

19
Results 2001

• 50 of the cat owning population have been
  sampled
• 25 of cat owning households in the UK now use
  Whiskas pouches
• Market leadership position has been regained and
  enhanced
• Value of pouch sales has exceeded tin sales and
  the cat food market is increasing in value

20
Key Points

• How a new product launch should be organised
• How a product extension strategy can be used to
  regain market leadership
• How to set clear campaign objectives
• The value of customer research, even when your
  customers are cats

21
Key Points (2)

• The steps involved in implementing a high volume
  FMCG campaign
• How product sampling and door drops can be used
  to generate high volumes of new business
• The importance of targeting
• The importance of controlling distribution to
  ensure smooth fulfilment handling