TASSIMO

Off to a Good Start (SILVER)
Best Integrated Program (SILVER)

Client Credits: Kraft Canada
Chris Bell, VP Grocery and Beverage, Kraft Canada
Doug Pritchard, Director of Marketing, Beverages, Kraft Canada
Luke Cole, Product Manager, Tassimo, Kraft Canada
Ashley Hahn, Associate Brand Manager, Tassimo, Kraft Canada
Lauren Jankowski, Brand Assistant, Kraft Canada
Kristian Gravelle, Senior Manager, Consumer Insights and Strategy, Kraft Canada
Alice Hammond, Marketing Coordinator, Beverages, Kraft Canada

Agency Credits: Ogilvy
Nancy Vonk, Chief Creative Officer, Ogilvy Toronto
Julie Markle, Art Director, Ogilvy Toronto
Chris Dacyshyn, Copy Writer, Ogilvy Toronto
Michael Szego, Senior Planner, Ogilvy Toronto
Kristi Karens, Group Account Director, Ogilvy Toronto
Coby Schuman, Managing Supervisor, Ogilvy Toronto
Terri Mattucci, Account Executive, Ogilvy Toronto
Lucinda Williams, VP Client Service, Match Experiential Marketing
Cathy Quinton, Group Strategy Director, Mediavest
Dave Collie, Armstrong Partnership

Crossover Notes:
Crossover Notes: All winning cases contain lessons that cross over from one case to another. David Rutherford has been identifying these as Crossover Notes since CASSIES 1997. The full set for CASSIES 2012 can be downloaded from the Case Library section at www.cassies.ca

Crossover Note 11. The Eureka Insight.
Crossover Note 12. Changing the Goalposts.
Crossover Note 16. When a campaign stumbles.
Crossover Note 18. Keeping it Simple.

To see creative, click on the links that are embedded in the case.

Section I — BASIC INFORMATION

Business Results Period (Consecutive Months):	January 2010 – December 2010.
Start of Advertising/Communication Effort:	May 1 2010.
Base Period as a Benchmark:	Calendar 2009.

Section II — SITUATION ANALYSIS
a) Overall Assessment
Introduced into North America ten years ago, the single serve brewing category experienced slow growth compared to Europe, where some countries saw up to 70% penetration. In Canada, it was a relatively new category, and all the players sounded alike to our target. Easy to use, lots of beverages described them all. Lifestyle advertising promoted this different way of enjoying hot beverages at home.

Canada had been adapting global TASSIMO creative for several years. However it was becoming clear that the global work was not working hard enough. [Crossover Note 16] It promoted the category and bypassed TASSIMO’s unique point of difference — patented barcode technology that had the potential to make the competition appear obsolete.

With low brand awareness and increasing competition from Dolce Gusto and Keurig, TASSIMO Canada broke away from the global strategy. We had the opportunity to reposition the brand as a game changer. [Crossover Note 12] “The barcode brews it better” campaign has succeeded beyond all goals; Bosch can’t make brewers fast enough to meet demand.

b) Resulting Business Objectives
TASSIMO set a long-term objective to increase brewer penetration in Canadian households to 10% by 2012. For 2010, this meant:

> Selling 200, 000 brewers, versus the 110,000 sold in 2009.

> growing T-DISC revenue by 60%.

c) Annual Media Budget
$4 – $5 million

d) Geographic Area
National, Canada

Section III — STRATEGIC THINKING
a) Analysis and Insight
Our “aha moment” came from watching the reaction of consumers when the penny dropped for them during product demonstrations and research groups [Crossover Note 11] While other brewers essentially pour the same amount of hot water through every beverage disc, TASSIMO’s patented system means each brand’s exact specifications are followed. So every brand tastes the way it was meant it to be. Like all TASSIMO beverages, their exact brew time, pressure and temperature could be read by the machine through the barcode on their T-DISC. Once people understood this unique barcode technology, they were sold.

b) Communication Strategy
While our competitors generically built the category, we went with a story that no one else could tell. Our communication strategy had 3 objectives:

1) to frame the brand as a game changer by bringing the barcode technology to life in a graspable, compelling way

2) to make the competition appear obsolete by comparison

3) to close the deal in store with tactics that reinforced the barcode advantage and iconography. Our target came into stores asking for “the one with the barcode” and we equipped salespeople to point them to TASSIMO and tell her more.

Section IV — KEY EXECUTIONAL ELEMENTS
a)Media Used
1) Full page print along with a 1/3 page companion ad, placed in magazines during the gifting season. The larger unit used educational long copy to explain the barcode story in detail. The smaller ad was used to reinforce beverage variety.

2) Two 30 second spots broadcast nationally in television and in cinema to communicate multiple benefits that come with the choice of the barcode brewer. (Please view the broadcast creative, Exhibits C and D.)

3) POS, sampling, demos, and brand ambassador programs at the retailer level.

4) eCRM in the form of TASSIMO eNewsletters to deepen the consumer relationship, as well as create ambassadors through the sharing of news. The eNewsletters were deployed throughout the year and designed to make the reader feel special through exclusive promotional offers and “first to know” news. TASSIMO.ca was redesigned to provide product information and sell T-DISCs. We also showcased recipes for beverages that could be made using TASSIMO. The website provided all the information needed to complete the purchase cycle.

5) We engaged consumers and online social media influencers to generate online word of mouth, dominate share of conversation (vs competition), drive traffic to web and foster our digital communities (Twitter/Facebook). This was done in two phases: (1) a two week Twitter/Facebook daily brewer giveaway during a key purchase period, Mother’s Day; (2) Asking 500 of Canada’s top social media influencers if they wanted to receive a free TASSIMO brewer and T-DISC package, which we then sent directly to their homes. No catch. Once they received the brewer they could do or say what they wanted.

6) PR used product placement and a BT Sponsored event called “Cash for Clunkers,” a brewer give-away/exchange. The first 100 people who brought in their old coffee makers received a free brand new TASSIMO brewer in exchange. People lined up the night before for their big upgrade.

b)Creative Discussion
Consumers don’t line up to hear about dry technology stories. We had a fairly complicated story to tell and it was critical to connect the dots between the barcode and perfect beverages, made exactly the way the brands instructed. [Crossover Note 18]

We risked a “barcode, so what?” reaction if we got it wrong, but cracked the code with an idea that made the barcode literally come to life. In television and every other space, we revealed the barcodes (if you look reaaaally closely) are made up of people wearing black or white. And they have a lot to say about the job of creating their beverage perfectly.

Ironically, the barcodes had historically been retouched off the T-DISCs in advertising. Now it became the icon of the brand in Canada. Our hope was that people would seek out “the one with the barcode”, and that’s exactly what happened.

c)Media Discussion
Mass Media – (TV, Cinema) In TV we needed to incite a “buy now” and “must have” attitude about our product, just when the target was beginning to think about gifting. The TV and cinema strategy used a movie launch approach to gain this response within a 4-6 week window. This was a very different approach to planning TV for a traditional CPG company.

Mass Media – (Print) In print, we went into more detail to explain how the technology worked – all by reading a little barcode. We used multiple executions in high reaching, upscale magazines that speak to our target’s primary interests (food, entertaining, home décor). The full page ad educated her about the barcode technology, and a smaller unit on the next page underscored TASSIMO’s beverage variety. The print buy was aimed at increasing exposure just before the gifting season.

Social Media – We built on our 2009 social media strategy by focusing engagement tactics during key sales periods, like Mother’s Day and Father’s Day. The first contest launched on Twitter for Mother’s Day.

The second social campaign used Listening Post software (Radian6) to identify 500 of Canada’s top social media influencers. And, as noted above, we asked if they wanted to receive a free TASSIMO brewer and T-DISC package. We knew that once they tried a TASSIMO they’d love it. And they did.

Section V — BUSINESS RESULTS
a) Sales/Share Results
For 2010, brewer sales were up 114%, with 235,805 brewers sold, and this more than doubled 2009. Retailers sold out and Bosch (maker of the TASSIMO machines) couldn’t make the brewers fast enough to keep up with demand in Canada. In addition, T-DISC sales grew 66% — an increment of $13 million over 2009. (See the blue-shaded 2209/2010 Exhibit below.)

As a result of this TASSIMO became Canada’s favourite single serve brewing system, achieving a four point share increase. By year end, TASSIMO had a 53% share of market. In the same time frame, Keurig, our main competitor, dropped 3 share points for a 42% market share. Furthermore, in HH Penetration, TASSIMO saw an increase of 1.81 percentage points compared to 2009, with more than half of the market’s 7% at 3.65%. (See “On Demand Market” chart below.)

TASSIMO Ad tracking outperformed the competition and was among the best in Kraft Canada history, with overall brand awareness increasing from 59% in Q4 2009 to 75% in Q4 2010 (Exhibit N). The message was clear – everyone wanted the one with the barcode. (See “Kraft TNS Coffee Tracking” below.)

TASSIMO continues to struggle in the US and around the world. Canada is the only market where TASSIMO owns share of conversation and share of mind. We reached a 60% share of conversation with 90% of all conversations being positive. And for over 2 weeks (during the festive gifting season) TASSIMO appeared as the number 1 trending topic in Canada on trends map, even above the #Movember hashtag. (See Radian 6 charts below.)

Based on the success of the barcode campaign and corresponding in market business and tracking results, TASSIMO Canada was recently awarded the most effective Global campaign within Kraft Worldwide. This has lead to our barcode strategy being adopted by the global team.

b) Consumption/ Usage Results

c) Other Pertinent Results

d) Return on Investment

Section VI — CAUSE & EFFECT BETWEEN ADVERTISING AND RESULTS
a)General Discussion
Our TV and print advertising that ran during Q4 2010 substantially improved the TASSIMO brand awareness, our key communication objective. Specifically, aided awareness of TASSIMO is up +14% since Q2/2010. (See the Brand Awareness Chart below.)

Our communication has driven brand experience. We know that intent to purchase a TASSIMO system among non-users is substantially beyond the market average. Of those who don’t currently own an on demand system, approximately one in five consumers (19%) are likely to purchase a system in the next 3 months. Among them, TASSIMO is the brand with strongest levels of purchase interest, and is 4 points ahead of Keurig, the market leader from an equity perspective. This tells us that TASSIMO has significant brand momentum. (See the Liklihood of Purchasing Chart below.)

Within the category of on demand systems, TASSIMO dominates in terms of advertising awareness, with 59% aware of our recent advertising. Keurig is second at 27%. This suggests advertising has had strong cut through. (See the “Branded on Demand Chart below.)

For “Espresso Guy”, ad awareness was 63% and brand linkage was 51%. For “Milk Moustache”, ad awareness was 65% and brand linkage was 45%. (The norms are 30% and 12% respectively.) As well, both ads tracked very well on likeability and persuasion vs. industry norms. (See TV Tracking Results below.)

Print registered strong scores across all key dimensions. Awareness and brand linkage of both print ads were very strong: the vertical execution had 31% ad awareness and 43% brand linkage. The horizontal execution had 17% ad awarenes and 42% brand linkage — results that are well above norms. (See the Print Trancking Chart below.)

Finally, the TASSIMO advertising is also driving usage. Significant improvements are evident across the purchase funnel, with a higher rate of usage (18%) among those recalling the advertising, compared to the norm and non-recallers. (See the Brand Funnel Chart below.)

b)Excluding Other Factors
Spending Levels: These did increase in 2010 but the investment was rewarded by the $13 million in incremental T-DISC sales. Our total A&C; (advertising and communication) budget for 2009 was $2.6 million with $370,000 in working media. In 2010 our budget increased to $4.7 million with $3.0 million in working media.

Pricing: (T-DISC): In July 2010, TASSIMO underwent a price increase on T-DISCs of 10-25%, depending on the sku. This was driven by industry-wide commodity cost increases.

(Brewer): TASSIMO brewers were funded down during key selling periods – Mother’s Day, Back to School and Festive. The T20 was funded down to $99 (originally $169) and the T45 was funded down to $139 (originally $219).

Distribution Changes: ACV went up on T-DISCs by 12.1 pts from 2009. But ACV on brewers remained relatively flat with full distribution beginning in January.

Unusual Promotional Activity: The only promotional activity was funding down on brewers during key selling periods of Mother’s Day, Back to School and Festive (per the above).

Other Potential Causes: None to our knowledge.