“HOW TO CLIMB OUT OF A BLACK HOLE”

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					                         “HOW TO CLIMB OUT OF A BLACK
                                    HOLE”




AFA Advertising Effectiveness Awards 8 – Lipton Black Tea
                  “How to Climb Out of a Black Hole”



                                   Executive Summary



This unique case demonstrates the role that advertising played in protecting an iconic brand with
decades of history, from its own costly mistake. While most companies would have buried all
evidence of the mistake deep in their archives, Unilever has graciously allowed us to share their
learnings of how to overcome such a potentially devastating event.

How could just one word “Black” bring one of Australia’s favourite brands to its knees?

The case outlines the strategic rationale that led to the catastrophe and how a deep understanding
of consumers and how they interact with the brand led to a highly effective advertising campaign
that lifted the brand back to health in an amazingly short period of time. This is especially so,
considering that most people expected that because of the barriers that the communications faced,
that it should have taken years for the brand to recover.

The advertising strategy clearly communicated; that because Lipton was so obsessed with tea, they
simply forgot that most people “just enjoy a good cuppa and don’t care about silly things like
technical tea terminology”. This successful approach hit the mark with consumers and resulted in
the recovery of lost sales as well as ensuring that confused consumers returned to the brand not
only as trialists, but as repeat purchasers.




Agency                            JWT, Sydney

Author                            Kris Constantoulas

 Team                             Andrew McCowan, Sarah Voss, Erica Williams, Mark
                                  Stephenson, Geoff Fischer, Simon Collins


Client                            Unilever Australasia
 Team                             Louisa Turner, Jody Gould




          AFA Advertising Effectiveness Awards 8 – Lipton Black Tea
  BUSINESS CONTEXT
  A Cultural Shift
  Australia’s historical tea drinking culture has over the past few decades been replaced by a vibrant
  coffee/café culture. This cultural shift has resulted in the long-term decline of everyday teas total
  share of consumers hot beverage consumption while at the same time has driven the strong growth
  of coffee consumption. The youth market in particular has been enticed into this new culture and
  has turned away from tea as their regular hot beverage of choice.

  The Changing Face of Tea
  This is not to say that Australians are not drinking tea, their tastes however, have qualitatively
  changed. These changes have resulted in category growth being restricted to a few areas, namely
  the specialty teas segment, particularly green teas and fruit/herbal teas. It is everyday tea that has
  bore the brunt of the impact of consumers increasing preference for specialty teas and in just four
  years volume declined by 186 million cups.

          6000

          5000
Million                                                                              Decline of
          4000
Cups                                                                                186mm cups
          3000

          2000

          1000

              0
                     Mainstream         Flavoured/Health         Premium             M A T To 15/08/99
                                                                                     M A T To 10/08/03




  Lipton - Ushering in a new generation of tea drinkers
  As the global leader in tea Lipton’s long-term strategy has always been to own the position as the
  true market driver in the tea category, built upon a continuous stream of innovation. While the new
  range of contemporary teas (herbal, green) have benefited from this change in consumer taste, the
  product (Yellow Label) that delivers volume and funds their ability to innovative has been in danger
  of losing relevance with consumers. As the category leader, if action wasn’t taken, Lipton would risk
  losing its mass appeal and be forced to play in a niche segment.

  In response to this trend, Lipton embarked on a youth recruitment strategy aimed at enticing
  younger consumers back to tea. Since 2000, Lipton’s strategy has been to contemporise their
  everyday tea range and usher in a new generation of tea drinkers. The role of the Lipton brand has
  become one of youth recruitment in the tea category.

  Following on from their successful relaunch and advertising campaign to the youth market in 2001,
  the brand team decided to implement a packaging change as part of their image overhaul. Several
  research projects were conducted to gain an understanding of how to they could successfully
  execute the changes.


             AFA Advertising Effectiveness Awards 8 – Lipton Black Tea
         Summary of the Research Findings




                                   Rebranding
                                                     “It may be
                                   of herbals
                                                     necessary for
                                   to
                                                     Lipton to             Jiggler is generic to
             Consumers             infusions
                                                     introduce new         teabags
             felt ‘let             without
                                                     vocab to the          but name is important to
             down’ by the          negative
                                                     market”               visual identity on old
             conservatism          consumer
                                                     *Project Star         Jiggler packs.
             of the                response.
                                                                           *Project Star.
             designs
             tested.
             *Project Pan 2
                                                                           “Lipton is average, mass, down market” *Project Pan 1

Key elements of Lipton pack are:                                               Magazine
         Lipton brand                           Why Black
                                                  Tea?                         coverage
         Pack colour                                                           relating to
         Teabag tags                                                           the 4 types of
         Black panel                                                           tea: green,
*Project Star                                                                  black, oolong,
                                                                               herbal eg
                                                                               Good Medicine,
            Education
                                                                               SMH
            through
            Unilever’s
            internal tea
            academy that tea         “the difficulty in                    Breadth of range is aspirational *Project Pan 2
            is like wine             describing the improved
            (which has a             blend appears to stem           Coffee has
            distinct vocab to        from a lack of vocabulary       interesting
            add quality cues)        to talk about tea”              varieties & styles -
                                     *Project Star                   lattes, cappuccino
                                                                     etc.




         After analysing the combined results the brand team arrived at the following conclusion;

         The Key Insight: The target market (18 to 29 year olds) perceives Lipton as an average, mass, down
         market brand and finds a descriptor is critical to the packs visual identity.

         Action: Re-launch Lipton Yellow’s packaging with a design that communicates strong quality cues
         and has a descriptor to assist with differentiation.




                    AFA Advertising Effectiveness Awards 8 – Lipton Black Tea
Packaging Design Evolution

            Lipton Jiggler                                  Lipton Yellow
                 2000                                            2002




                                       Lipton Black
                                         Nov 2002

                                                                   3

                                                            2
                1



The modifications to the packaging were as follows;

1. Change in the overall pack design
2. A new name for the product ‘Black tea’
3. A flash on the pack saying NEW Smoother Premium blend.




          AFA Advertising Effectiveness Awards 8 – Lipton Black Tea
A Completely Unexpected Response

Despite the seemingly small changes, the combination of above three elements, proved deadly! Not
only did consumers wonder what the hell black is (2), but the pack told them that it’s new and
different! (3).

In essence, the brand team did not foresee the immediate and complete dominance that the word
black would have and how it would in effect, replace the ubiquitous Lipton yellow message
replacing it with something utterly foreign to consumers.


The Evidence

Evidence from the trade started to flow back to the brand team that consumers were getting
confused at the shelf; they couldn’t find their regular Lipton tea, baseline sales were down by up to
50% and calls were coming into the consumer hotline;

        “Is this black tea the same as my regular Lipton Tea?”
        “Where is my regular Lipton tea?”

Consideration, among the target audience (Eighteen to Twenty-Nine Year Olds) also plummeted
from 82% to 69%:




                     82%                                            69%

                                        Source * ATP Nov 2002 N.B. measured before packs on shelf


In mid November the Lipton team decided to enlist JWT’s assistance. A command centre was set up
in JWT’s boardroom where the full team met to decide what could be done to save Lipton from a
spectacular overnight demise.




           AFA Advertising Effectiveness Awards 8 – Lipton Black Tea
Potential Responses
The team considered all communication channels/mediums ranging from infomercials, Brand
Power, public relations versus mainstream advertising strategy.


But given the difficult obstacles that the communications needed to overcome:


•      An 80% reach and two+ frequency objective.

•      A potentially boring message - new pack/name but your same Lipton Tea.

•      Operating in a low involvement category.

•      The need to have high cut through with many obstacles to overcome.

•      A cluttered environment.


Only two real options emerged;


       1. A $7 million write off. However, it was decided that the underlying costs involved would
          have been enormous. In addition to the $7 million write off cost, the incalculable non-
          financial costs would have included; damaging relationships with the trade, supply
          chain/out-of-stock issues and harm to decades of brand equity and credibility. A write off
          would also serve to undermine the brands secondary strategy of establishing Black tea as
          an innovation platform. The chief innovation being the Flavoured Black Tea range that was
          due to be launched later that year. The more viable option was;


       2. To educate consumers as the necessary way out of crisis. This was assumed to be better
          value at a cost of approx $1.3 million1 versus a write-off of $7 million plus. Post research
          indicated that consumers could understand that black tea was normal/regular tea when it
          was explained to them. This indicated that we could communicate our way out of the
          confusion. However, given the obstacles above, this was not as cut and dry as it seemed. In
          embarking on this option the communications needed to be highly effective and there was
          only one chance to get it right. If they failed to meet their objectives, sales would continue
          to plummet and an iconic brand with decades of history in the local market could have
          been slugged with a highly expensive rescue bill and encounter damage to the brand that it
          may never fully recover from.




1
    Please see Appendix (Table 1) for a breakdown of the costs.


              AFA Advertising Effectiveness Awards 8 – Lipton Black Tea
TARGET AUDIENCE AND CONSUMER INSIGHTS

The effectiveness of the campaign was dependent upon our answers to three key questions;


    1. Who do we talk to?
    2. Why were consumers getting so confused?
    3. What type of language do we use?


1. Who do we talk to?

Even though Lipton had been focused on recruiting twenty to twenty-nine year olds, we knew that
the bulk of everyday tea volume (79.9%) was driven by an older demographic (thirty five + year olds).
Therefore, the core target for the Black crisis communications were thirty-five to fifty-five year olds
who were loyalists who had known and loved Lipton for years. However, the challenge was, how to
target the 35-55 year olds without alienating or confusing the core target (18-29 year olds) and
undermining the brands youth recruitment strategy. This was not a departure from their long-term
strategy but rather a tactical move to protect the brands core volume, essential for the brands long
term success.



Demographics - Distribution of Buyers vs Distribution of Volume
39 Weeks To 28/09/2002
                                                        NAT-Mainstream Tea Buyers


                                                                           41.9
                                                                 36.8


                       22.3
                               18.9                 17.8                                       18.2
                                           16.3                                       16.7
                                                                                                        12.6    11.5      10.9    11.7
    8.0
            3.1


  LS Young Singles   LS Young Families   LS Older Families     LS Older Singles    LS Adult Household Female 20-29 Yes   Male 20-29 Yes
    and Couples                                                  and Couples
                                                            NAT-Lipton MST Buyers
                                                                           40.7
                                                                  34.5

                       24.9    23.5
                                           16.0      15.7                              15.8    13.8      12.8
                                                                                                                10.6       11.6    11.3
     8.8
            6.2


  LS Young Singles   LS Young Families   LS Older Families      LS Older Singles   LS Adult Household Female 20-29 Yes    Male 20-29 Yes
    and Couples                                                   and Couples

                                                  Distribution of Buyers   Distribution of Volume




            AFA Advertising Effectiveness Awards 8 – Lipton Black Tea
Why were they getting so confused?
To answer this question we launched into a round of qualitative research to gain a deeper
understanding of how consumers were responding to and interpreting the new language we were
using.

Our fist key discovery was that black has many interpretations:

“Why black tea. I put milk in it. Why couldn’t I add milk?”
“The tea I use at the moment isn’t black, it’s brown. This is different!”
“It makes it a bit special. Oh, black tea, a good quality tea bag. Like black china tea.”
“I thought it might have been a stronger tea”
“Strength, stand the spoon in it. A good, stiff drink.”
“Maybe darker colour or without milk.”

It was also discovered that for those who thought that black probably meant ‘normal’ there was still
a high degree of uncertainty

                           ...“Why would they change the name?”

        Consumer responses from a Qualitative Research Project conducted by Bread Butter Research in late
                                                                                        November 2002

From this we concluded that the main issue consumers had was with the word ‘black’ and the
degree of uncertainty it created. Consumers needed reassurance that it was still the same old Lipton
that they had known and loved for years.

They needed to know that it wasn’t

    •    A strange new tea
    •    Something you should drink black
    •    A different variety of Lipton

That essentially it isn’t something new, that it was the same kind of tea they are used to…and
therefore it will taste like the tea they have always enjoyed.

So while consumers could understand when it was explained that ‘black tea’ was their normal Lipton
tea and that the only change was the name/pack, they were still resistant to accept such a radical
change to the tea they’ve known and loved for years.

They needed an explanation of WHY Lipton had made such a seemingly unnecessary decision. They
couldn’t understand it. So to really clarify it, we needed to stress that the pack was new, so
consumers can say to themselves…


   Ok, the pack looks different, but they are telling me there’s been a pack
                             change…that’s all.




           AFA Advertising Effectiveness Awards 8 – Lipton Black Tea
Although there was still the challenge of discovering what language we could use to communicate
this without undermining the strategic intent behind what the packing change intended to
communicate in the first instance. Allow me to reiterate; communicate strong quality cues with a
descriptor to assist with differentiation.


3. What type of language do we use?

We explored the language that consumers used to describe the tea they drink with milk everyday
and we found was that it was a bit ordinary, especially when you measure it against the evocative
language used to describe the different styles of coffee that they were drinking everyday (latte,
espresso macchiato etc...). Consumers’ used words like...Regular, Normal, and Standard to describe
their ‘everyday’ tea. But this was at odds with the key strategic thrust behind the packing change,
QUALITY. The language that consumers were using made Lipton tea sound dull or less than high
quality.

One of the words that described tea that was of the regular everyday type, but also could encompass
Lipton’s quality dimension was TRADITIONAL. While the word traditional clearly communicates
that it’s the type of tea you have milk with it also acted to support the quality credentials of the
product rather than undermining them.


Advertising Objectives

Despite the obvious and overarching objective of recovering lost sales and consumers, the
communications also had a few challenges that they would need to overcome and be measured
against. Therefore more specific objectives were set;

The campaign needed to;


    •    Recover lost sales and get back to 80% of volume by June 2003.

    •    Communicate that black tea is just another name for everyday tea.

    •    Convert trial consumers into repeat purchase.

    •    Ensure brand health was not damaged.

    •    Ensure that communications don’t undermine the youth recruitment strategy.




           AFA Advertising Effectiveness Awards 8 – Lipton Black Tea
Advertising Strategy & Creative Solution

Advertising Strategy
The advertising strategy was built upon two key pillars;

1. Reassurance

The communications needed to reassure consumers that the product was still the same old Lipton
that they had known and loved for years and that only the pack had changed.

2. Explanation

As well as communicating that the pack had changed we also needed to explain to them why Lipton
had made the change. This was a product that consumers had been buying habitually and loyally for
years and years and although tea is a low involvement category there is a strong affiliation that has
been up between the brand and consumers.

The advertising idea that flowed from the aforementioned strategic platform was;


              “Lipton Black Tea seemed like a good idea at the time”

The idea clearly communicated: That because Lipton is so obsessed with tea that they forgot most
people “just enjoy a good cuppa and don’t care about silly things like technical tea terminology”.



The Creative Solution
The creative solution was based on the insight that Australians love to have a laugh when someone’s
down, especially the big boys, (tall poppy syndrome) or at other people’s misfortunes (i.e: Funniest
Home Videos). But equally, Australians respect honesty. The strategy assumed that respect would be
earned by being honest and confident enough to admit a mistake.

It was decided that the campaign would employ self-deprecating humour, based on the platform;
‘Lipton are the tea experts with an obsession for tea’. This platform was critical to the strategy’s cut-
through and believability versus a traditional staid crisis management approach.

The look and feel of the campaign was also reassuringly Lipton. The TVC’s were created using an
original Lipton ad from the 1970’s with a ‘Monty Pythonesque’ voice dubbed over the top. Using
these symbols helped us strengthen the emotional bonds with our target as well as dialing up the
traditional element of the message. This look and feel was a common thread throughout the
campaign and was continued on into both the print and the radio creative executions.




           AFA Advertising Effectiveness Awards 8 – Lipton Black Tea
Campaign Description
The campaign included mass media communications, point of sale and a price promotion. The
point of sale solution was developed initially as an immediate response to try and prevent sales from
dropping further and further and to give the team some time to prepare an effective creative
solution. Another measure to try and reduce the rate at which sales were dropping was the
implementation of a rolling price promotion to encourage pantry stocking. However, these two
measures were met with mixed success and due to the logistics involved only a small percentage of
the stock was stickered prior to the launch of the mass media campaign. There was also a second
stage of stickering that extended the core message of the mass media campaign: “Black is just the
technical term for the tea you love’.

Stickering - Neutralise the Confusion and Educate Consumers in Store

                Neutralise                                           Educate




               Dec 2002                                             Feb 2003
              Stage One                                            Stage Two
 Core message: It’s the same Lipton Tea           Core message: It’s the same Lipton Tea and
                                                         ‘black’ is just a technical term




        The stickering provided consumers with reassurance on
                           pack and at shelf

Mass Media Campaign (27th of Jan to 9th March 2003)
The mass media campaign involved the following;

                 •    TV
                 •    Press
                 •    Radio
                 •    Live Reads



          AFA Advertising Effectiveness Awards 8 – Lipton Black Tea
Hairy Friend TVC - Version 1




 Open on the parents entering their        Cut to a wider shot as the parents make
 daughter’s house                          themselves at home
 MUM: Is your hairy friend here?




 Cut to a wider shot as the parents make
                                           DAUGHTER: Yes mum.
 themselves at home.
 MUM: How about a cup of tea?




 Mum shuffles about in the background.     DAUGHTER: Yes mum.
 MUM: Of course, Lipton has always been
 black tea.




              AFA Advertising Effectiveness Awards 8 – Lipton Black Tea
Cuts to a CU of the tea bag being pulled out       Cut to a wide shot of the daughter jiggling
of the pack.                                       the tea bags in cups.
MUM: Black tea’s just the technical term for       MUM: Don’t forget the milk!
                                                   DAUGHTER: Yes mum
ordinary tea.
DAUGHTER: Yes mum




                                                  Cut to a CU of the daughter and freeze frame.
Dissolve to mum drinking her tea whilst the
                                                  DAUGHTER: Yes mum
daughter fusses about.
MUM: Ahh, beautiful! Call it what you like it’s
still a top drop.




Dissolve to pack and super: It’s the technical
term for the tea you love.
VO: Lipton Black Tea. It’s the technical term
for the tea you love.



          AFA Advertising Effectiveness Awards 8 – Lipton Black Tea
Hairy Friend TVC - Version 2




 Open on the parents entering their        Cut to a wider shot as the parents make
 daughter’s house                          themselves at home
 MUM: Oh, my feet are killing me?




 Cut to a wider shot as the parents make
                                           DAUGHTER: Yes mum.
 themselves at home.
                                           MUM: I still can’t believe Lipton Tea changed
 MUM: How about a cup of tea?              its name to Lipton Black tea.




 Mum shuffles about in the background.
                                            MUM: Some fast-talking marketing man’s idea I’ll
 DAUGHTER: Yes mum.
                                            bet.
                                            DAUGHTER: Yes mum.




          AFA Advertising Effectiveness Awards 8 – Lipton Black Tea
 Cuts to a CU of the tea bag being pulled out       Cut to a wide shot of the daughter jiggling
 of the pack.                                       the tea bags in cups.
 MUM: I could have told him it was totally          MUM: Silly Sausage!
                                                    DAUGHTER: Yes mum.
 stupid. for ordinary tea.
 DAUGHTER: Yes mum




                                                   Cut to a CU of the daughter and freeze frame.
 Dissolve to mum drinking her tea whilst the
                                                   DAUGHTER: Yes mum
 daughter fusses about.
 MUM: Ahh, beautiful! Call it what you like it’s
 still a top drop.




 Dissolve to pack and super: It’s the technical
 term for the tea you love.
 VO:
PressLipton Black Tea. It’s the technical term
 for the tea you love.



           AFA Advertising Effectiveness Awards 8 – Lipton Black Tea
       Press




       Radio

               Title: Mr Davis’s Nuts                             Title: Mrs Johnson’s Root

SFX:            Shop bell                                   SFX          Shop bell.
                                                            Woman        Morning Mr Davis.
Woman:          Morning Mr Davis.
                Morning Mrs Johnson – got some nice         Shopkeeper   Morning Mrs Johnson. What would you
Shopkeeper:
                Macadamia nuts in today.                                 like?
                Actually I just dropped by to say you       Woman        Some ginger root and a pack of Lipton tea
Woman:          were right about Lipton Black Tea – it is
                the same as ordinary Lipton Tea.                         please.
                Yes, they’ve just changed the name.         Shopkeeper   Here’s your tea…
Shopkeeper:     Some smarty-pants marketing man’s           Woman        Lipton Black Tea? That’s not my usual!
                idea, I expect.
                They should have asked me – I’m good        Shopkeeper   Wrong Mrs Johnson! Lipton is now called
Woman:
                at names.                                                black tea. It sounds fancy, but black tea is
                That reminds me – how is young                           just the technical term for ordinary tea.
Shopkeeper:
                Hannibal?
                She’s very well, thank you, Mr Davis.       Woman        Oh, same taste?
SFX:            Now then, let’s have a look at your         Shopkeeper   My word yes.
                nuts.                                       Woman        What a relief. Now, how about that root?
                Lipton Black Tea. It’s the technical term
MVO:                                                        MVO          Lipton Black Tea. It’s the technical term for
                for the tea you love.
                                                                         the tea you love.




                AFA Advertising Effectiveness Awards 8 – Lipton Black Tea
Radio – Alan Jones Live Reads
Live reads were used as an extension of the radio campaign. It was decided that Alan Jones was the
perfect personality to deliver the message due to the candid and honest approach that he takes to
the presentation of current issues.


Live Read 1
                 It seemed like a good idea at the time, but now the people at Lipton would like to
                 apologise for confusing everyone.
                 When Lipton changed the name of their world-class tea to Black Tea, a lot of people
                 wondered what had happened to their favourite tea.
                 And the answer is: absolutely nothing…!
                 Black Tea is the technical term for the ordinary, everyday tea that you know and love.
                 So don’t be confused… It says Lipton Black Tea on the box… But inside, is the quality
                 Lipton tea that you’ve always enjoyed.
                 Same great Lipton taste.
                 It just has a new name.
                 Lipton Black Tea; it’s the technical term
                 for the tea you love…!


Live Read 2

                 Lipton love tea.
                 It’s true… The people at Lipton are obsessed with making the very best tea. So when
                 Lipton changed the look of their packaging, they also changed the name. And as any
                 Lipton tea lover will tell you,
                 that was pretty confusing…!
                 The technical name for the tea you know and love is Black Tea – and that’s the name
                 you’ll now see on every box of Lipton tea.
                 You still get the same wonderful Lipton taste.
                 It just has a new name.
                 So whilst the box may say Lipton Black Tea,
                 you can be sure that inside is ordinary tea.
                 Lipton Black Tea; it’s the technical term
                 for the tea you love…!




          AFA Advertising Effectiveness Awards 8 – Lipton Black Tea
                   Campaign Evaluation

                   To meet the objectives, the campaign needed to;

                          •   Recover lost sales and get back to 80% of volume by June 2003.
                          •   Communicate that black tea is just another name for everyday tea.
                          •   Convert trial consumers into repeat purchase.
                          •   Ensure brand health was not damaged.
                          •   Ensure that communications don’t undermine the youth recruitment strategy.


                   Sales Results - Objective achieved!
                   During the campaign period sales had bounced back to within 6% of levels prior to the crisis.


                   •      After introducing the revised packaging sales volumes plummeted 38.4%.
                   •      Immediately after the campaign period (26/01/03 - 09/03/03) sales had recovered to within 6% of
                          pre “black” packaging measures2.
                   •      By August 2003 sales were back to normal levels again.



                                                           Total Black Tea Sales

                   270.0

                   260.0

                   250.0

                   240.0
Dollars (000's)




                   230.0

                   220.0

                   210.0

                   200.0
                                                                                          Campaign Launched
                   190.0

                   180.0
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                              /1

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                        /E




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                                                                                                                            Series1




                   2
                       Source: Indexed baseline Unilever Australasia Foods Sales data.


                                AFA Advertising Effectiveness Awards 8 – Lipton Black Tea
Indexed Baseline Sales (%)
                                                                                  Change from
                                        Decline After                          Baseline Sales Prior
                                     Introducing Packs   After Advertising    to Packaging change

Total                                              -38                   55                      -6



Communicating “Black Tea” – Technical Term – Objective Achieved!
Communicating that “black tea” was simply the technical name for everyday tea was arguably the
most important objective of the campaign. Improved sales and brand health measures indicated
success, although the tracking information on educational dimensions proved that consumers were
learning.



Educational Measures amongst strategic
target

It contained new information                    56% Above normal scores
Points made in ad were believable               70% Above normal scores
It contained different information               41% Above normal scores

Source: Millward Brown Tracking Data. September 2003


Another factor that points to success on this measure was the success of the Lipton Flavoured Black
Teas that were launched in May 2004. The launch was an outstanding success and although there
are other factors that contributed to this it does however suggest that Black Tea Crisis campaign was
successful in establishing educating consumers about “black” tea and creating a future innovation
platform. Awareness objectives for the flavoured black tea range were exceed by (+43%) and met on
trial and repeat conversion3 and is now an important part of the “Lipton black” range. This just
further strengthens that the objectives were met and exceeded beyond the short-term recovery of
the sales.


Brand Health Measures - From trial to repeat purchasers – Objectives
Achieved!

The brand faced a potential erosion of brand equity and credibility. However brand health measures
(September 03) indexed against previous measures (October 02) declare that Lipton had not only
bounced back from the black crisis but had stabilised at stronger levels than previously (October 02).




3
    AC Nielsen online omnibus – Data collected over 23 & 25 July 2004.


             AFA Advertising Effectiveness Awards 8 – Lipton Black Tea
Brand Health Measures

Total Awareness                      No Change
Consideration                        Increase of 12%
Total Unaided Awareness              Increase of 14%
Use Regularly                        Increase of 23%
Bought Last                          Increase of 33%


Source: Millward Brown Tracking Data. September 2003.


This proves that the consumers were not only returning to the brand as trialists, but repeat
purchasers.


Youth Recruitment Strategy – Objective Achieved!
Although the communications were not targeted at the strategic audience of 20-29 year olds we
needed to ensure that the brands youth recruitment strategy wasn’t undermined. To confirm that
we had met this objective this we examined the brand health measures against this target.

Millward Brown’s conclusions from the 2003 tracking study confirmed that we had achieved this
objective.

“The 18-29 year olds are more positively pre-disposed to Lipton. They have higher levels of ad
awareness, stronger more differentiated brand perception and stronger brand health scores.”



The Advertising Investment – Financial Outcome

One simple way of looking at the financial outcome of the advertising investment would be to
calculate the cost of taking this option against the only other viable option: a write off at a cost of $7
million. As the campaign cost approx $1.3 million we would be looking at a difference of $5.7 million.
Although the cost of a write off was valued at $7 million short term financial cost to the brand to
replace the packaging, it would be almost impossible to calculate the non-financial costs that would
have been incurred if the brand was left with this option only. The non-financial costs would have
included: damaging relationships with the trade, supply chain/out-of-stock issues and harm to
decades of brand equity and credibility. A write off would also have served to undermine the brands
secondary strategy of establishing Black tea as an innovation platform and could have prevented the
launch of a successful flavoured black tea business.

However, putting together an accurate costing of these events is near impossible. The conclusion
that we have arrived at is that the financial outcome of Lipton’s advertising investment was:

                               A household name was saved!



           AFA Advertising Effectiveness Awards 8 – Lipton Black Tea
Discounting of Other Variables
Was Lipton’s recovery a factor of the following?

Price Cuts/Promotion - NO
Although Lipton utilized trade activity to drive trial

          –             Price cuts
                            – 200s Normal price $6.99/ Promo Price $5 - 1 week
                            – 100s Normal price $3.99/ Promo Price $2.48 - 2 weeks
                            – 50s Normal price $2.69/ Promo Price $1.48 - 1 week
                            – 25s Normal price $1.48/ Promo Price 99c - 4 weeks

The price cuts were never intended as a complete solution but were implemented as an immediate
response mechanism used to jolt consumer’s behaviour and encourage pantry stocking before the
advertising broke. The price cuts however could not address the underlying consumer issues and as
such could never fully contribute to the campaigns objectives.

Another point to note was that Lipton had implemented a pricing/promotional strategy in 2002 that
they did not want to undermine. As Lipton was to stand for quality they could not embark on price
cutting as a regular practice as this would devalue the brand causing repeat purchase to be driven by
price rather then by brand preference.

The whole objective of the price cuts in this instance was to stimulate some trial, never repeat
purchase.



                                                   Total Black Tea Sales
                            270.0

                            260.0

                            250.0
                                                     2 Was very short lived
                            240.0
    Dollars (000's)




                            230.0

                            220.0

                            210.0


                                    1 Initial jolt due to                   3 Campaign Launched
                            200.0

                            190.0
                                      price cuts
                            180.0
                             24 /02

                        W 1/1 2
                             0 /02

                        W 5/1 2
                             2 /02

                        W 9/1 2
                             0 /02

                        W 2/0 3

                        W 9/0 3

                        W 6/0 3
                             0 /03

                        W 9/0 3
                             1 /03

                        W 3/0 3
                             0 /03

                        W 9/0 3
                             1 /03

                        W 3/0 3
                             30 /03
                                     03
                             0 /0



                             1 /0



                             2 /0



                             1 /0

                             1 /0

                             2 /0



                             0 /0



                             2 /0



                             0 /0



                             2 /0


                                   3/
                                   1

                                   1

                                   2

                                   2

                                   2

                                   2

                                   2

                                   1

                                   1

                                   1

                                   1

                                   2

                                   2

                                   2

                                   2

                                   3

                                   3

                                   3

                                   3
                                /1

                                /1



                        W 8/1



                        W 2/1



                        W 5/0




                        W 2/0



                        W 6/0



                        W 2/0



                        W 6/0



                                /0
                             17
                       /E

                              /E

                         /E

                          /E

                         /E

                          /E

                         /E

                          /E

                         /E

                          /E

                          /E

                          /E

                         /E

                          /E

                          /E

                          /E

                         /E

                          /E

                         /E

                          /E
                      W

                            W

                        W




                                                                                                   Series1




                             AFA Advertising Effectiveness Awards 8 – Lipton Black Tea
Increased Distribution - NO
Distribution remained unchanged throughout the period examined


Increased share of media spend - NO

For a number of years Lipton has been outspent by its major competitor, Tetley. This did not change
in 2003. Their share of voice was also proportionally less in 2003 than 20024.



Conclusion

The “Lipton Black Tea Crisis” campaign demonstrates that effective advertising can work in many
ways and not only acts to build a brand but can also save it from massive losses. In this case the
successful campaign resulted in the recovery of lost sales as well as ensuring that confused
consumers returned to the brand not only as trialists, but as repeat purchasers. Although the
campaign was designed to recover sales in the short-term the effects of the advertising laddered
into a long-term future for Lipton. This campaign made it possible for the brand to grow from
strength to strength. This can be seen in the successful launch of the Flavoured Black Tea range,
which would not have been possible without establishing the black tea platform.




4
    Please see Appendix (Chart 1) for a breakdown.


             AFA Advertising Effectiveness Awards 8 – Lipton Black Tea
Appendix

Chart 1.

Share of Tarps 2002 vs. 2003

                                            Nerada
                               Tw inings      1%
                                 13%                          Lipton
                                                               26%




                          Tetley
                           33%                                  Bushells
                                                                  14%

                                                     Dilmah
                                                      13%

                                      Share of Tarps 2002


                                     Twinings                   Lipton
                                       12%                       16%




                                                                           Bushells
                                                                            22%
                            Tetley
                             37%



                                                              Dilmah
                                                               13%
                                           Share of Tarps 2003



Table 1
   Campaign Costs
                                   Press             TV                Radio           Total

   Production                      12,731.91    62,993.89              9,295.79         85,021.59
   Media                            255,430       793,193              202,905          1,251,528

   Total                      268,161.91 856,186.89                212,200.79         1,336,549.59



           AFA Advertising Effectiveness Awards 8 – Lipton Black Tea

				
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