Building FMCG Brands Online

1
IAB
Building FMCG Brands Online
2
Introduction
We need to re-invent the way we market to
consumers. We need a new model. It does not
exist. No one else has one yet. But we need to
get going now. A.G. Lafley, CEO, Procter
Gamble, November 2004
3
Online A new model?
Online should at least be considered as part of
any new model of communication - It is
consumer controlled - Information rich
engaging - Cost effective So why are some
brands so slow to join in?
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Today
Sorry, I havent got the answer! What I do plan
to do is to provide a strong case for using
online in FMCG brand building And hopefully
provide food for thought for anyone who
previously thought online had no role in brand
building
5
Agenda

• Introduction
• Growth of Online
• Building FMCG Brands Online
• A Case Study
• Summary

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2. The growth of online
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As an advertising medium
1 billion medium by mid- 2006 (IAB) First half
revenues for 2005 are 490.8m This represents an
increase of 211.4m year on year
8
Online is now bigger than outdoor
Source PricewaterhouseCoopers / Internet
Advertising Bureau / The Advertising Association
/ Radio Advertising Bureau / WARC
9
And growing at over 60
Total advertising market growth 3.0
Source PricewaterhouseCoopers / Internet
Advertising Bureau / The Advertising Association
/ Radio Advertising Bureau / WARC
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Adspend in all categories in growth
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3. Building FMCG brands online
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Brand Building New research study
AOL Henley Centre have recently compiled new
research to understand the role of online in FMCG
brand building It is based on the following data
sources - Forrester, Jupiter - AOL/ NOP
e-commerce study - Academic Research - American
Interactive Consumer Survey
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Online key to both on- offline purchases
74 of online consumers have personally
researched and looked for information about a
product or service before making a purchase.
ONLINE CONSIDERATION

PURCHASE ONLINE
PURCHASE OFFLINE
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Strong influence in certain categories
who bought offline after researching online
69
Cars
63
Garden/DIY products
62
Home furnishings
58
Mobile phones
57
Large home appliances
57
Consumer electronics
54
PC/Computer hardware
53
Small home appliances
53
Clothing/accessories
51
Health and beauty products
44
Computer games
40
Financial products or services

39
Food/groceries
0
10
20
30
40
50
60
70
80
Source Henley Centre/AOL 2004
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Internet improves purchase consideration
76 of online consumers feel that they are able
to make more informed purchase decisions With
73 spending more time researching products as
a result of the Internet And ultimately 77 of
online consumers have bought a product or service
online
Source Henley Centre/AOL 2004
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Implications for FMCG brands
This greater level of consideration around
purchase has the following implications -
Consumers will seek information online about
you - They will tell people what they find
out - What they find may make them change their
mind - Some categories particularly at risk So
if you dont feel your online activity is good
enough then beware, you may be losing out to the
competition!
Source Henley Centre/AOL 2004
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Consumers seek brand information
68
Visited a favourite retailer website
53
Visited an auction website
48
Visited a favourite brand website
44
Visited newspaper/magazine websites
38
Visited a price comparison website
Visited a specialist consumer review website
26

0
10
20
30
40
50
60
70
80
Source Henley Centre/AOL 2004
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And they pass it on
31
Subscribed to email newsletter by company/brand
Forwarded information on product/service to
friend/colleague
30
26
Given email feedback to product/brand website
21
Posted a message on online message board/computer
forum
19
Followed/took part in an online chat

0
30
20
10
Source Henley Centre/AOL 2004
19
They may even change their minds
I look more favourably on certain brands
56
I came across a new brand, which I was not aware
of before
53
I came across a new brand, which I then bought
(anywhere)
45
I decided not to purchase a certain brand or make
43
I changed my mind about a brand I was going to
buy and switched to a different brand
42

0
10
20
30
40
50
60
Base excl. dont know
Source Henley Centre/AOL 2004
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Some categories more at risk
consumers who bought a different brand from
the one you had intended to before you went on
the internet
Large home appliances
47
Financial products or services
39
Holidays and travel
31
Consumer electronics
29
Mobile phones
28
26
Cars
Small home appliances
24
Health and beauty products
24
Clothing/accessories
22
PC/Computer hardware
21
Computer software
18
Garden/DIY products
17
Home furnishings
6

0
5
10
15
20
25
30
35
40
45
50
Source Henley Centre/AOL 2004
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Summary
In summary, online is a critical channel of
consideration for both online and offline
purchases Consumers are likely to search for
information about you and this maybe good or
bad Theyll tell people about the information
they find ultimately it may make them change
their mind
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4. Case Study
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KitKat
Challenge How can we drive brand awareness and
help stimulate purchase. Solution Create an
online auction where wrappers are the currency
and can be exchanged for prizes.
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Creative Work
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Results
The campaign achieved an average click through
rate of 2.6, with best creative delivering
12.8 The total number of people who viewed this
ad in full was 51, one of the best performing
ads of 2005 The campaign helped to deliver over
1 million unique visitors to the auction site in
the first month
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5. Summary
Thank you.