University of Bern, Nov.

2009
Agenda

• Introduction
• Ariel Case – Applying P&G brand building
framework
– Landscape
– Who
– What
– How
Agenda

• Introduction
• Ariel Case – Applying P&G brand building
framework
– Landscape
– Who
– What
– How
P&G at a glance
The 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

Î 3 billion times a day P&G products touch the live of

consumers all over the world
P&G Western Europe
– Represents one quarter of P&G business
– Home to 18 of P&G’s 23 “Billion Dollar Brands”
– 34’500 employees

• P&G Geneva Office:

– Headquarter for Europe,
Africa, Middle and Far East
– 2650 employees from 70 different
nationalities
Agenda

• Introduction
• Ariel Case – Applying P&G brand
building framework
– Landscape
– Who
– What
– How
 Case Study
ARIEL AND SUSTAINABILITY
-
Making a brand more relevant
 Background - Ariel in Nordic

• 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 – Sustainability 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).

Conclusion was that we found an opportunity around the

enviromental issues and that Ariel lacked consumer trust
 Background – Previous challenges

• 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 – Consequences
Local constraints and limitations = Brand in decline

1994

26%

15%

2007
VALUE SHARE TOTAL NORDIC
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
 Consumer needs – Laundry segment
Modern

The
TheDYNAMIC
DYNAMICconsumer
consumer
Performance,
Performance,Innovation
Innovation

The
TheETHICAL
ETHICALconsumer
consumer
Environment,
29%
Environment,Gentleness
Gentleness

19%

Introvert Extrovert

The
TheESTABLISHED
ESTABLISHEDconsumer
consumer
Performance
Performance

19%

The
TheEMOTIONAL
EMOTIONALconsumer
consumer
Fresh, Scented
Fresh, Scented 22% Traditional

P&G Consumer Research 2004-05

 Ariel product portfolio to meet
consumer needs was…
Modern

The
TheDYNAMIC
DYNAMICconsumer
consumer
Performance,
Performance,Innovation
Innovation

The
TheETHICAL
ETHICALconsumer
consumer
Environment,
29%
Environment,Gentleness
Gentleness

19%

Introvert Extrovert

The
TheESTABLISHED
ESTABLISHEDconsumer
consumer
Performance
Performance

19%

The
TheEMOTIONAL
EMOTIONALconsumer
consumer
Fresh, Scented
Fresh, Scented 22% Traditional
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
Econo mic

Enviro

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

• Economic Development & Responsibility

– For consumers & society
tal

Social – Economics within P&G

• Social Responsibility
– Consumer understanding
– Products which improve quality of life
– Improve life in Developing Economies
Our Sustainability Strategies
1. 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

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

• Introduction
• Ariel Case – Applying P&G brand
building framework
– Landscape
– Who
– What
– How
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

Internal insights:
Consumer insight:
Top 2 purchase drivers for laundry 1) The new formula works even
detergents in Denmark are better in cold water, thanks to
better solubility (Cleanning Perfomance)
1) Cleaning performance
2)The biggest climate gain for P&G
is to change the laundry habit
2) Environmental performance
of consumers (Enviromental performance)

Ariel product statement:

Sustainable cleaning
with superior performance
Agenda

• Introduction
• Ariel Case – Applying P&G brand
building framework
– Landscape
– Who
– What
– How
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!

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

• Altruistic minority who others do the same

• Aren’t prepared to make an • Either don’t
believe they can make effort because others aren’t. know what to do
an impact with their to help or simply
individual efforts • Includes people who support don’t believe that
• Believe that responsibility environment
environmentalism with their wallets lies with government and large problems are an
• Prepared to spend but are too busy to change their corporations not individuals issue
significant time to
support the lifestyle. This group is not willing to
• Average 10% (highest in 6% of Consumers
environment- politically compromise on time or performance Spain & Portugal)
and socially active

•22% of Consumers 63% of Consumers 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 product

The 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

• Introduction
• Ariel Case – Applying P&G brand
building framework
– Landscape
– Who
– What
– How
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
WHAT is the Ariel concept?

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”

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 30
SELLING LINE: “Brilliant Cleaning, less energy”
Agenda

• Introduction
• Ariel Case – Applying P&G brand
building framework
– Landscape
– Who
– What
– How
HOW will we go to market?
HOW - Developing our marketing program
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

Engage in a Conversation Successful

conversation leads to a Relationship
with her relationship leads to loyalty

“TRIAL” “USAGE” “LOYALTY and

ADVOCACY”
Ariel: Drive credibility on sustainability

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
How – PR and communication
Femina

Ekstra Bladet
Launch TV copy

Dials
Making it all come together
Making it all come together
WHO?

Disproportionately
delight
Community Greens

LANDSCAPE: HOW?
Cleaning and Making enviromental awareness
Enviromental the center of our mediaplan

WHAT?
“Brilliant Cleaning,
less energy”
EXECUTION IN-STORE
 RESULTS – Denmark Shares

- Past 6 Months => 5.0 pts up vs. Year ago

- Driven by Ariel relaunch
- Instore theater
- Future Friendly concept

- Share growth + 25% Y1+Y2

- Inspiration for further innovation...

…Cold is the new hot

Communication Idea:
“Ariel Excel Gel gives you all the
cleaning benefits of hot in cold
water”
Imagine, mid September 2008
in the UK ...
Pre-launch (press)
Pre-Launch (outdoor)
Pre-launch (national outdoor)
Pre-launch (regional outdoor)
Followed by the reveal as of
October...
TV – Copy
TV – Copy
Launch (press)
Launch (outdoor)
Launch (Internet)
Launch (PR Event)
Launch (PR Event)
The results

– Ariel Excel Gel is now the biggest Ariel form

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

– Top persuasion, visibility and branding

– Marketing plan reapplied in 12 WE countries

– Best Ariel copy in 5 years

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 Æ learn Æ adjust Æ improve continuously

THANK YOU!