This advertising campaign is a proposal for Guinness. It details the proposal for a marketing strategy, and an advertising and communication campaign to help Guinness strengthen its position on the market
Table of contents
Table of contents........................................................................................................................p.1
2 List of table apendice..............................................................................................................p.2
3 Executive summary.................................... ............................................................p.3
4 Introduction .....................................................................................................p.4
MARKET OVERVIEW
5 SWOT for Guinness.................................................................................................................p.5
6 Guinness products....................................................................................................................p.5
7 Critical issue.............................................................................................................................p.7
8 Competition..............................................................................................................................p.7
MARKETING STRATEGY
9 Marketing strategies..................................................................................................p.8
0 Mission...................................................................................................................................p.8
1 Target Audience.........................................................................................................p.8
2 Marketing objectives.......................................................................................p.9
3 Marketing mix strategies...................................................................................p.11
4 Marketing Research.......................................................................................p.12
CREATIVE AND POSITIONNING
5 Positionning of Guinness...................................................................................p.14
6 The advertising agency...........................................................................................p.15
7 Themes of the advertising campaign...................................................................p.16
COMMUNICATION PLAN
8 Objectives..........................................................................................................p.18
9 Media schedule..........................................................................................................p.20
20 Media selection and format.............................................................................p.22
BUDGET AND MEASUREMENT
21 Return on investment......................... ...............................................................p.25
22 Costs table...............................................................................................................p.26
23 Conclusion.............................................................................................................................p.27
24 References and bibliography..............................................................................p.28
LIST OF TABLES APPENDICES
Executive summary
This advertising campaign is a proposal for Guinness. It details the proposal for a marketing strategy, and an advertising and communication campaign to help Guinness strengthen its position on the market and to increase brand loyalty amongst its consumers.
This project identifies the following:
* The market overview, which includes a study of Guinness products, a SWOT analysis and an overview of Guinness' competitors
* Guinness' target audience for this campaign are mainly the adopters (switch them to adorers) and the adorers (increase brand loyalty)
* Guinness has a unique selling proposition; it portrays itself as having inner strength, self-belief and bonhomie, as well as being an Irish drinking experience.
The core message of the campaign will be to
- Express that consumers can enjoy a pint or a can of Guinness even when out with friends that don't drink Guinness
- It can be drunk on any occasion rather than on special occasions.
Media activities include the use of:
- 2 Television ads
- 1 Magazine ad
- 1 Poster ad dedicated to pubs
The budget has been set to £ 10,000,000 and the campaign will use £ 9,509,858 over a 12 months period starting in July 2005 and ending in June 2006. A table representing the budget and the media scheduling are included in the report.
INTRODUCTION
The aim of this assignment is to produce an advertising plan that will favor the gain of marketshares in UK for Guinness products and consolidate the awareness and loyalty of consumers towards the brand.
Guinness was founded in Dublin in 1795. Arthur Guinness purchased St James Gate for £100, with a 9000-year lease!
John Gilmore produced the first national Guinness advert in 1930s. It was the first in a series of 'Zoo keeper and animal' poster adverts:
John Gilmore also coined the famous phrases "Guinness is good for you" and "Guinness for strength"
The first television advert for Guinness was aired in 1955 during the first night of television commercials. In 1998, Guinness produced the most expensive television advert ever. It was part of the 'Good things come to those who wait' campaign. It was voted the most popular advert ever by the British public.
MARKET OVERVIEW
SWOT for Guinness
* Strengths
- Number one in the world for Stout and currently 4th place in the GB beer category
- Sponsorship of major sports i.e. Rugby Six Nations Tournament
- Release of new television advertisement in December 2004
* Weaknesses
- Is up against several brands of lager and ale
- More Adopters than Adorers
* Opportunities
- To increase the number of adorers by targeting adopters
- Promoting Guinness on special occasions and in general
- Expand sponsorship of sport to football
* Threats
- Tough competition from lager and ale manufacturers with large market shares.
- Decrease in on-trade sales in Ireland due to public smoking ban --> risk that the same thing could occur in Uk after the smoking ban takes effect in 2005
- Other leading brands sponsor sports particularly football
Guinness Products
The BCG (Boston Consulting Group) matrix allows us to position the situation of all Guinness' products. Thanks to this table, we can have an overview of the weaknesses and strengths of each product:
Star product:
> Guinness Draught
The UK's best-selling black beer, the most famous product of Guinness. Strong market in GB, Ireland and USA.
Aspects: surge and creamy smooth head, available in Extra Cold or regular, takes 119.5 seconds to pour the perfect pint
> Guinness Draught in Can
"Home version" of the star product, people enjoy drinking at home with a can rather than going to the pub. "Family focused" segmentation. Same market than Guinness Draught.
Aspects: new can design which makes GDIC smoother and creamier than before, won the Queen's Award for Technological Advancement in 1991
> There is also a bottle version of the Draught
"Question mark" product: Foreign Extra Stout
High market share abroad (40% of Guinness sold), especially African and Caribbean's markets
Aspects: First launched in 1802 as West Indies Porter, strongest in taste and alcohol
"Cash cow": Guinness Extra Stout
This is one of the most famous Guinness' beers after the unassailable Draught. It has a good position in the UK.
Aspects: Stronger in taste and strength, with its distinctive toasted bitter flavour, and longer matured than GUINNESS Draught, GUINNESS Extra Stout is a carbonated stout first brewed in the late eighteenth century by Arthur Guinness and in those days known as 'Porter'
"Dog product": Guinness Original
This is the classic Guinness immortalised by toucans and slogans such as 'GUINNESS is good for you' and 'GUINNESS for strength'.
Aspects: stronger in taste and strength and longer matures than Guinness, the original Guinness perfected by Arthur Guinness
Critical issue
All advertising must be compliant with the ASA rules of advertising and alcohol, and the Portman's Group Code of Practice. Such restraints include:
o Advertisements must not suggest that the success of a social occasion depends on the presence or consumption of alcohol.
o Advertisements must not show, imply or encourage immoderate drinking. This applies both to the amount of drink and to the way drinking is portrayed.
o Children must not be seen or heard and no-one who is, or appears to be, under 25 years old may play a significant role in advertisements for alcoholic drinks. No one may behave in an adolescent or juvenile way.
http://www.asab.org.uk/asa/codes/tv_code/tv_codes/Revised+Alcohol+Advertising+Rules.htm
Competition
Guinness faces tough competition from Lager & Ale Manufacturers. In all of the following GB beer sales, Stout ranks lowest, with lowest market share and lowest value.
The current competitors are Carling, Fosters and Stella Artois who rank in the top three, with potential threats from Carlsberg, John Smiths, Heineken, Kronenbourg, Budweiser and Tennants.
The Total Great Britain Beer Sales rank Stout as lowest with 6.6% Market share overall compared with Standard Lager with top a market share of 34.4%. see app fig 4
Stout has a market share of 6.8% in the On-Trade (pubs/clubs/hotels) category compared to 35.7% of Standard Lager. Stout ranks lowest in the market share category. See app fig 5
Stout has a total of 4.2% market share in the take-home category. Again it ranks lowest compared to Premium Lager. See app fig 6
Guinness ranks 4th place in the Top Great Britain Beers On-Trade category, having been in third place the previous year. The total value is £810m compared to Carling with a value of £1459m. See app fig 17
Guinness ranks 5th place in the Top Great Britain Beers category for Take-home. The total value is £83m with no increase on the previous year, compared to Stella Artois in top place with a value of £388m.see app fig 18
Marketing strategy
Marketing Strategy
The strategies that Guinness intends to develop to achieve its marketing plan goals for UK should be considered the following way:
In this context, Guinness intends to concentrate its forces mainly in the expansion of the existing markets with the existing products (refer to Ansoff's matrix). Guinness will also increase the sales of new packaged products within the existing markets. These are low risk strategies. Guinness accepts the need for new products and product improvement but more work must be done to identify the needs. The main products to consider are Guinness Draught/ Guinness Draught Extra Cold/ Guinness Draught in a Can, because they are the more profitable. Guinness is going to carry out client/competitors questionnaires during the next six months in order to define market needs for new products. Then products will be developed.
Mission
Guinness' mission is to attract more consumers in order to show them its values (passionate about consumers, freedom to succeed, proud of what they do and be the best) its vision ("celebrating life, every day, everywhere") and its goal which is that every adult should love the brand.
The customers' expectations need to be exceeded but always by acting with the highest standards of integrity and social responsibility.
Target audience
Our customers are in majority males (90%) and they can be divided into 2 main groups:
* The "Up for its" ...
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Mission
Guinness' mission is to attract more consumers in order to show them its values (passionate about consumers, freedom to succeed, proud of what they do and be the best) its vision ("celebrating life, every day, everywhere") and its goal which is that every adult should love the brand.
The customers' expectations need to be exceeded but always by acting with the highest standards of integrity and social responsibility.
Target audience
Our customers are in majority males (90%) and they can be divided into 2 main groups:
* The "Up for its" are younger, unattached blokes; always up for a night out with boys, and would always prefer a pint or two down the local with boys watching sport than staying at home. Favourite drink--> Guinness Draught and Draught Extra Cold
* The "Family focused" are over 35 years old and setting down; probably owns a house and has a young family. Still loves to get out to the pub, but on much lower energy occasions, and much less frequently. Far more likely to spend Saturday night in with the family, perhaps having a can of Guinness in front of a good film. Favourite drink--> Guinness Draught in a Can
Then in both groups can be segmented into 5 levels of loyalty towards the brand:
* Adorers: they are the most loyal to Guinness, they are Guinness' perfect customers, and they are drinking Guinness because it is the only beer that they really enjoy.
* Adopters: It is intended to reach this segment with this campaign. They can be described as people who really enjoy drinking Guinness, but along with others. They are playing a very important role because they are among the last stage of loyalty. We can also add that they have already a taste of Guinness, they really like drinking Guinness to some specific occasions such as St Patrick Day, Rugby matches, Christmas... Cannibalising other brands volumes in their drinking repertoire can increase their consumption of Guinness.
* Acceptors: They rarely drink Guinness and are not very fond of it.
* Available: They know a bit about the brand but they never tried it.
* Rejecter: They didn't hear about the brand, nor do they want to.
Marketing objectives
Guinness' marketing objectives for this 12 months campaign are to:
* Increase product awareness among the Adorers (10% of them are making the step down and become Adopters. This figure must be reduced to 5%.) and all consumers in general.
* Strength the affinity of existing Adopters. In detailed facts and figures, we are expecting (for the existing Adopters) an increased of 2.5 pints per month and 1 can per month over a one-year period. That can also allow us to establish a relation with other groups --> Acceptors, Available and eventually Rejecter.
* Increase our PR and develop sponsorships in specific events such as St Patrick's Day and sports (Football and Rugby). 20% of our Adopters like football and 30% of them like Rugby, we should increase each figure by 10%, which means 30% and 40% respectively.
Marketing mix strategies
Product Differentiation - line expansion
It is a strategy that attempts to make a clear distinction between products serving the same market segment (through innovative design, packaging, positioning, etc.). By improving its products, Guinness shows its customers it cares about giving them the best and satisfying their needs.
* New packaging: The package of Guinness Draught will be renewed and more innovative; especially for the St Patrick Day
* New design: even if the cans are already dinstinctive (won the Queen's Award for Technological Advancement in 1991), their design should be improved.
* Improve the life cycle of the drink once the beer is served.
* Larger multi-packs i.e pack of 24.
* Keep improving the fast pouring system (perfect pint in 25 seconds instead of 119.5 seconds).
Price Lead - aggressive pricing for share
The logic way of pricing should be an aggressive pricing share but it can be dangerous for Guinness to decrease its prices too much, it could lead to the brand losing value on its image and the perception of the consumers over the quality of the beer could be altered. Therefore, instead of decreasing prices, the volume of beer per can will be increased. By this way, we are going to develop a sale promotion (only for the off-trade) campaign by offering consumers the chance to sample: 4 cans for the price of 3. This policy of sales promotion will be intensify during the biggest events such as St Patrick's Day and the Rugby Six Nations Tournament)
Promotion Aggressive marketing
Aggressive marketing strategy is required in the segment chosen in order to avoid the decrease of market shares.
* Collateral Marketing: newsletters and e-mails, in order to keep the stakeholders informed concerning the evolution and the aim of the campaign
* Promotional activity:
- Sponsorship: sportive events and associations' sponsorship have to be developed.
- Trade Shows: Six Nations Tournament, Cheltenham Gold Cup, Celtic League, Boat Show and especially St Patrick's Day. According to Mintel (2004) "The occasion drinking is the key success of the future"!
- Give-aways (e.g. mugs and other promotional gifts with Guinness logo) and free samples
* Media Relations Campaigns about alcohol in order to show that Guinness is aware and feel responsible for helping resolve the problem of alcohol in the society --> press releases, press kits and public service announcements.
* Intense Advertising through different medias such as TV, billboards, newspapers and magazines
Distribution Broaden distribution
Guinness has to improve its performance in the on- (Pubs, Nightclubs, bars) and off-trade (off-licences and supermarkets). Off-trade should particularly be developped because sales become more and more important in this trade. Between 1999 and 2004, sales in on-trade have decreased by 31.4% while in off-trade sales have increased by 15.9%. Consumers are still consuming more in pubs, bars and nightclubs but these figures could be the opposite in the next few years.
Marketing Research
Research is an important part of Guinness' marketing strategy. It offers the company a better understanding of the products' performances and of the impact of branding. It is essential to know what the expectations of the target audience we want to reach for this campaign (the Adopters) are. It is also determinant to get an opinion of consumers towards products of competitors. By continually collecting and analysing this information, Guinness will be able to implement adequate activities.
CREATIVE AND POSITIONING
Positioning of Guinness
Positioning of a brand means emphasising its difference and what makes it unique based on characteristics that are relevant to the potential or actual customer. Guinness' taste is unique; none of its competitors have a comparable beer (even in the stout market). That constitutes for Guinness a unique selling proposition. It is also important to say that Guinness' products have a long and strong history (story which goes back to 227 years ago). But Guinness's core values are inner strength and self-belief, as well as Irish drinking experience and bonhomie. It conveys the idea that Guinness is an experienced company on the market.
The following position map shows how Guinness positions itself within the beer and stout market compared to competitors:
Source: www.marketingiq.com/ help/software/positioning/
This positioning map represents the way Guinness is actually positioned and perceived by their audience, concerning its characteristics
The advertising agency
As Guinness' past advertising activities have been coordinated by the advertising agency Abbott Mead Vickers.BBDO, it has been decided to keep working with them. We are relying on the success of past campaigns that have been realised with them. The creative expression of self-belief, bonhomie and friendship will be captured in an extensive media campaign and supported by relevant advertising activities. The agency will be charged to provide Guinness with producing the audiovisual supports and helping to organise the campaign. The agency has a greater knowledge to schedule medias and to collect information about them, so they will carry out his part of the campaign in order to gain a more effective campaign with better post campaign analysis. (see apendice 2 for the creative brief)
Account managers
Their role for this campaign will be to handle the liaison between the agency and Guinness. They will study the targeted consumers, and they will plan and control the creatives' work to be sure it fits with Guinness' target objectives.
The creatives
They will be responsible for creating a well-planned brief, which will save time and confusion during the development stage. The will also develop the words used in the campaign, and they will have to maintain a good communication with Guinness' managers of the project, in order to revise and improve the work constantly until the final creative is agreed.
Production
They will be responsible for the production of the supports for the specialist media such as printed press and TV. They are responsible for turning the campaign ideas into tangible elements for the agreed deadlines.
Media planning & buying
They will purchase time and space in the required media and have good negociating skills to meet deadlines. Media research and analysis will be done to define the most accurate vehicle and time scale to reach the client's target.
Themes of the advertising campaign
The campaign will be consumer orientated, and it will involve a strong emotionnal appeal to attract consumers' attention and to get closer to them, to emotionally touch them. It aims at making drinkers of Guinness feel closer to the brand and feel more disposed to buying it, as well as appealing and communicating Guinness' core values to the target audience. There will be two TV ads, one to be broadcasted regularly throughout the year, and another one especially for St Patrick's day, as well as two printed ad, one to be published in men targeted magazines and another to be printed as a poster and displayed in pubs. The actors or models used for these activities will represent the target audience, from the physical and behavioural point of view. The message communicated by these activities is similar:
--> Broadcasted TV ad to be diffused on TV throughout the year: (CD file)
It will show a man in his mid 30s, dressing in a black suit and walking in a chaotic city environment (overcrowded tube, busy streets, overactive and stressful working place). Noises of city are accentuated (cars, buses, metro, conversations...). Then the image changes and we can see him pack his suitcase. The next image shows him and two friends sitting on a rock, in a fabulous Irish style landscape. Soft music in the background. They all look dreamily at the horizon, sipping a Guinness. The first man takes a sip of his can and there is a flash back, with elements of Guinness history (1). The second man takes a sip and there is another flash back, with elements of Guinness history (2). The third man finally takes a sip, and once again there's a flash back with elements of Guinness history (3). The ad ends showing the three men staring at the beauty of nature without a word. Screen changes and displays the phrase: once you have tasted better, can you really go back to the ordinary?
--> Broadcasted St Patrick's day TV ad: (CD file)
Back in the 50's. A group of 3 young men in their mid-twenties are celebrating the end of their studies around a pint of Guinness. Then a jump on time and we find the same men, in their 40's celebrating a birthday around a pint of Guinness. Another jump on time and we find the same men, in their 60's celebrating St Patrick's day around a pint of Guinness. A last jump on time: one of the men, looking very old sits on a wheelchair, watching celebrations of St Patrick's Day
(1), (2) and (3)--> this section will be left for the agency to create
alone in his empty house. Someone knocks on the door and 3 young men enter the house, pushing the two friends of the old man on a wheelchair, they all wear green clothes and carry packs of Guinness on their knees. The lonely old man smiles widely. The video ends on an image of the six men, old and young, cheering to St Patrick's Day. Gives an impression of joy, of energy. Entertaining music.
"Why not share it together on St Patrick's Day?"
--> Printed ad to be published in men targeted magazines
Rugby team celebrating around their cup, full of Guinness after victory. Everybody is filling his pint from the cup.
Same team, casual clothes, in front of TV looking at rugby game, exited (one man in nearly standing up by excitement)
On the table in front of them, cans of Guinness
SOME PLEASURES ARE NOT LIMITED TO SPECIAL OCCASIONS... Guinness
--> Printed ad dedicated to pubs:
Herd of white sheep in front of a crossroad. They are all engaged in one way, but a three black sheeps are heading the other way.
The core message transmited through these ads is you can enjoy a pint or a can of Guinness even when you are out with friends that don't drink Guinness and that drinking Guinness shouldn't be reserved to special occasions. The campaign theme enhances the aspect of friendship with the three friends, the rugby team or the three sheeps and it also highlights the quality typically associated with drinking Guinness, which is sharing a moment of pleasure and relaxation. This is consistent with the core values of the brand
COMMUNICATION PLAN
Communication objectives
The time span is over a one-year period and the budget is set at £10 million. Types of media that will be used include television advertisements, printed advertisements (magazines) and activities/advertising in pubs.
The aims of the objectives can be met by using the right media tools to target the adopters. The budget can be spread out to cover different methods of advertising
The campaign will run over a twelve-month period starting from July 2005 to June 2006.
Keep up consumer awareness of Guinness
Specific: Keep up consumer awareness of Guinness
Measurable: Constant consumer research to verify that the percentage of population's awareness of the brand is stable or increases
Achievable: Will use existing data from Guinness database and previous consumer researches
Resource: Will use internal market research staff
Timetable: Will be conducted at the beginning, in the middle and at the end of the campaign
Raise understanding of Guinness and its core values
Specific: Raise understanding of Guinness and its core values
Measurable: Constant consumer research to analyse the perception of Guinness' core values and determine its evolution.
Achievable: Will use the resource and knowledge of the agency to achieve raising the understanding of Guinness' core values. They will be provided with previous data from Guinness' database.
Resource: Will use the agency staff to carry out fieldwork and will also use Guinness current database as a guide.
Timetable Will be conducted at the beginning, in the middle and at the end of the campaign
Create a desire to consume Guinness on more than special occasions and increase overall market share
Specific: Create a desire to consume Guinness on more than special occasions and increase overall market share
Measurable: Analysis of on trade and off trade sales within the targeted audience
Achievable: Will closely look at both on trade and off trade distribution as well as the evolution of market shares
Resource: Will use external market research and product demand
Timetable: To be conducted at the beginning and at the end of the campaign
Guinness communication plan aims at providing a framework for managing, coordinating and evaluating the various communication activities (external as well as internal) implementated during the 2005 campaign.
It presents the key messages, communication channels, complementary resources, timing, budget, control and other important elements.
This framework will allow the company to make sure at anytime during the project that the campaign is developped correctly, from its creation to its measurement.
The communication plan is particularly important to the project as it will assure its coherency, consistency, its integration in the different company's levels (corporate, strategic and tactic). It will also make sure that the schedule is respected and that the complementary communication tools are properly used to fit with the campaign.
By achieving all the above elements, the success of the campaign will be enhanced.
Media selection and format
In order to reach the right target audience, the selection of the right media is essential. The campaign will therefore use television and magazine advertising for the off-trade advertising and will also use in trade advertising with pubs posters. This will help keeping a high level of brand awareness within the specific target audience. Television is a good way to create and keep a good brand image and magazines as well, as they are highly selective and allow choosing the specific target audience that needs to be reached.
TV
Television is and has always been the most dominant advertising medium for companies wishing to reach a large part of the population, and in general consumers tend to remember TV ads more easily. According to Sally Ford-Hutchinson and Annie Rothwell (2002), the reason for televisions dominance comes from its ubiquity, its entertainment value and the generally important role that television plays in people's lives. It is the most popular medium in terms of bringing the brand to the forefront.
For this reason, we chose to display the TV ads on two channels according to the amount of audience they reach in terms of the campaign's target audience (see apendice 1): ITV and Sky Sport. Although BBC 1 and BBC 2 have a big share of the total viewing, they can not be considered for the Guinness adverting campaign because commercial advertising on these channels is not acceptable. ITV holds the UK broadcast rights for the UEFA Champion's League, screening games on Tuesday and Wednesday evenings. Terrestrial television "remains the most commonly used medium for consuming sports coverage, with 41% of all adults and 60% of active sport followers viewing on a weekly basis at least." (Mintel, 2003)
Magazines
The magazines have been carefully chosen, considering the target audience. According to the Website Media Week, magazines are very carefully chosen by consumers to meet very specific requirements. They really do have a unique relationship with their consumers. They are trusted, they are chosen carefully by consumers and well-executed magazine advertising has a real advantage in speaking through the pages of a consumer's favourite magazine. (http://www.mediaweek.co.uk/articles/2004/3/QuantumArticle-2004-03-23000029) There has been a boom in men targeted magazines publications in the last few years, and the key factors that have already encouraged the growth of men's lifestyle magazines are men's greater awareness and interest in personal style, their interest in gadgets and new technology, and the growing importance of health and fitness. (Mintel, 2004) This represents a possibility to reach some significant quantity of the target audience. The PPA (Periodical Publishers Association) has created an Advertising Awareness Model that demonstrates that advertising awareness can be improved by more than 20% across a 12 months period through magazine advertising. (Darwen, T., 2004)
The rugbymen printed ad will be published in the monthly magazine Arena at a reason of 1 ad per publication during 12 months, from date to date. Arena's readership age is over 25 in average and the alcohol advertising represents 9% of their total space available for advertising. It will also be published in the monthly magazine Men's Health at a reason of 1 ad per publication during 12 months (representing 10 publications), from the beginning of the campaign in June 2005 until the end in July 2006. 35 % of Men's Health readers are aged 35-54, and men's growing interest in health and fitness leaded our choice concerning this magazine.
Pubs posters
The sheeps printed ad will be distributed in 2/3 of UK pubs and bars (40 000/60 000 according to http://news.bbc.co.uk/1/hi/uk/3537290.stm) depending on the geographic and demographic repartition of the population on the UK territory. Through this it is tried to aim at consumers that would rather consume lager when out with their friends than Guinness. The aim is to prevent them from brand switching and to increase their loyalty to Guinness and the ad carries the idea that as a special consumer and a special person, the consumer should think for himself and not always follow the mass. The fact that this ad is displayed at the point of sale should influence the consumer at the moment of buying.
On-trade sales have slightly fallen since 1998 but are still more important than off-trade ones as they represent around 65% of the total alcool sales.
Pubs are not only important for sales, they are also an efficient way of targeting.
Pubs are versatile social institutions in which British like to go in several occasions, from an informal lunch with colleagues to a football match with friends (Mintel Pub visiting UK, 2003). As most of the men (62% of them) and young adults (77% of the 18-24 category and 70% of the 25-34's) are pub goers, add displays should have a great impact, especially on Guinness adopters who tend to switch brands to follow their friends while sharing a moment outside. Moreover, according to Mintel (2003), 9.1 million of sport viewers claimed to have watched sport on television in a pub or bar in 2002.
BUDGET AND MEASUREMENT
The budget will be shared out among the Television (ITV 1 and Sky Sport), magazines and pubs/bars. (Refer to cost table)
The television is the primary and the most expensive media. The choice of only two channels (ITV and Sky Sport) is justified by its high cost. Moreover, TV advertising represents one-third of the total expenditure.
Advertising on ITV is important because of its impact regionally as well a nationally. Moreover, the channel acquired the UEFA rights until 2007 and to advertise during this event seems critical for Guinness campaign. The broadcasting will be between 8p.m and 11p.m because of the large number of viewers.
The television advertising on satellite will be represented by Sky Sport. This channel is essential for sponsorship of sports (rugby and football); therefore the advertisement will be mostly chronic as it will be more intense during the rugby six nations tournament (February and March 2006).
Pubs and bars activities will be attributed nearly 10% of the budget. They will be distributed posters to display and plastic table cards at the beginning and in the middle of the campaign (July 2005 and December 2005)
Magazine advertising is the third media and it will complement television advertising. Costs are low quite low (2% of the total budget) and the possibility of targeting quite high. Arena and Men's Health magazines will be used to reach our masculine main audience.
Measurement
The measurement methods (consumer research, sales evolution, market researches...) quoted in the communication objectives will be used to evaluate the campaign.
Moreover, it is advised to Guinness and/or the agency to use the following technics (some approximations are also given) to get a more specific view of the results.
Figure 1. TV Ads Measurement Table
Assessment Area
Coverage
Daily, ITV covers 39.9% of male's(16+) population, 44.2% of female's (16+) population, while Sky Sport covers 9.1% of male's (16+) of population and 5.1% of female's (16+) population.) (Source: Marketing Pocket Book 2003, WARC, pp13, 139 & 142)
Content
TVRs
84.5%
C.P.T.
£467.07
Reach
Daily reach 23.67 million TV audiences across the country.
Frequency
Basically to display Guinness Ads on these two channels every day in the advertising peak hours from 5:30pm - 11:00pm, in March more ads will be displayed.
Targeting
20,000,000 Guinness consumers
Impact
328,652,928 is the actual number of separate times that viewers were exposed to the transmission
of a commercial break or programme.
(Source: Television Price Index Q1 03,Guerillascope TV)
Figure 2. Magazines Measurement (Source: BRAD p262, & p264)
Assessment Area
Coverage
Urban based across the UK
Content
Arena Circulation
32,000 BRAD p. 262
Frequency
Monthly exposure (12 publications)
Men's health Circulation
220,000
Frequency
Monthly exposure (10 publications)
Targeting
Arena
20-35, male 75%, female 25%
Men's health
25-44, men mainly
Figure 3. Pubs advertising (Source: Pub visiting - UK Auguest 2004, Mintel, pp27)
Assessment Area
Coverage
40,000 / 60,000 pubs across the country.
Market
Share
Reach
Tenanted/leased pubs
36%
Free houses
33%
Targeting
20,000,000 consumers
Overall Cost Budgetting
This talbe lists all the cost we need for this adverting campaign, especially, the inflation factor has been considered while calculating.
Definitions and Calculation
) TVRs - Television Ratings measuing reach on TV. Example on Adopters.
This year the communication budget will aim to target approximately 20,000,000 persons. Therefore, our taget TVRs would be:
20,000,000 /the total TV audiences X 100=200,000 / 23,670,000 X 100 = 84.5%
2) C.P.T (Cost Per Thousand)
C.P.T. = Cost of TV Ads / No. of members of target X 1,000
= £9,341,390/ 20,000,000 X 1,000
= £467.07
3) Reach
Reach = the Numbers of the TV Ads exposed
4) Frequency
Frequency = The numbers of Guniness members are exposed to the
message
5) Impacts :
is the actual number of separate times that viewers were exposed to the
transmission of a commercial break or programme.
(Source: Television Price Index Q1 03,Guerillascope TV)
ITV Impacts + Sky Sport Impacts = 315,637,060 + 13,015,868 = 328,652,928
(Source: Television Price Index Q1 03,Guerillascope TV,Guerillascope 2004)
Return on investment
The return on investment will be calculated in percentage once the results of the campaign are known. It will be calculated the following way:
(Total Benefits provided by the campaign - Total costs of the campaign)
Total costs of the campaign
This will allow the company to realise how effective the campaign has been.
Overall Budget of Guinness AD Campaign July 2005 -June 2006
Date
Media
Year 2005
Year 2006
TOTALS
July
August
September
October
November
December
January
February
March
April
May
June
.1 Classic TV ad
.1) ITV (inc. GMTV), 30 secs
£47 850
£47 850
£47 850
£153 120
£153 120
£140 360
£95 700
£95 700
£95 700
£95 700
£47 850
£47 850
£1 068 650
.3) Sky Sport, 30 secs
£75 000
£75 000
£75 000
£75 000
£75 000
£75 000
£75 000
£200 000
£150 000
£75 000
£75 000
£75 000
£1 100 000
.2 St Patrick TV ad
.2) ITV (inc. GMTV), 30 secs
£395 560
£395 560
.3) Sky Sport, 30 secs
£620 000
£620 000
AD production (2 ads)
£15 000
£15 000
£15 000
£15 000
£15 000
£15 000
£15 000
£15 000
£15 000
£15 000
£15 000
£15 000
£180 000
SUBTOTAL
£137 850
£137 850
£137 850
£243 120
£243 120
£230 360
£185 700
£310 700
£1 276 260
£185 700
£137 850
£137 850
£3 364 210
2. Magazines
2.1) Arena
£8 800
£8 800
£8 800
£8 800
£8 800
£8 800
£8 800
£8 800
£8 800
£8 800
£8 800
£8 800
£105 600
2.2) Men's Health
£6 650,00
£6 650,00
£6 650,00
£6 650,00
£6 650,00
£6 650,00
£6 650,00
£6 650,00
£6 650,00
£6 650,00
£6 650,00
£6 650,00
£79 800
Origination
£18 000
£18 000
SUBTOTAL
£203 400
3. Pubs
3.1) 60,000 Guinness Posters
£5 785
£5 785
£11 570
3.2) 2,400,000 Table plastic cards
£360 000
£360 000
£720 000
Delivery costs
£80 000
£80 000
£160 000
SUBTOTAL
£891 570
Agency Fees
£125 000
£125 000
£125 000
£125 000
£125 000
£125 000
£125 000
£125 000
£125 000
£125 000
£125 000
£125 000
£1 500 000
TOTALS
£879 935
£416 150
£416 150
£626 690
£626 690
£1 046 955
£511 850
£761 850
£2 692 970
£511 850
£416 150
£416 150
£9 323 390
Note: Cost taking inflation into account: £9,341,390 X 1.02 = £9,509,857.8
CONCLUSION
Elaborating a new advertising campaign for Guinness is every time a new challenge for the creatives who work on the project. The quality of the image and of the suggestiveness that past campaigns have settled have built the reputation and the image of the stout and the consumers are now used to seeing extremely good ads. The failure to keep up with this quality standard could lead Guinness to a loss of interest for the brand by its consumers.
As the regulation are becoming stricter on alcohol advertising for ethical and responsability reasons, companies increase their efforts and Guinness competitors also show a lot of creativity and genius in their advertising campaigns, and the beer market is a highly competitive market, a market in which a "war between the brands for market shares" is taking place (Alcohol Concern Factsheet)
Another very important point on which Guinness might have to concentrate its efforts on future advertising campaigns is on the risk represented by the possible ban on smoking in bars and pubs. In Ireland, where this ban has already been put into effect, it is suspected that the loss of 6% of total sales volume of Guinness was probably caused by the ban on smoking. (Smoking ban 'hits Guinness sales', http://news.bbc.co.uk/2/hi/uk_news/northern_ireland/3621386.stm)
The future advertising campaigns for Guinnes will maybe then focus on increasing consumption at home rather than in bars and pubs, and this will be a real challenge considering all the actual barriers that the alcohol industry is facing nowadays.
REFERENCES AND BIBLIOGRAPHY
* REPORTS
* DIAGEO Annual Review - 2004
* IAS FACTSHEET Alcohol and advertising - Institute of Alcohol Studies - 5 November 2004
* ICAP REPORTS 9 Self regulation of beverage Alcohol Advertising - International centre for alcohol policies - January 2001
* MINTEL Ales and stouts - UK - May 2004
* MINTEL Canned Lager - UK - January 2000
* MINTEL Lager - UK - June 2003
* MINTEL Men's magazines - UK - September 2004
* MINTEL Pub Visiting - UK - August 2004
* MINTEL Spectator Sports - UK - April 2003
* MINTEL Sport and the media - UK - May 2003
* MINTEL Weekend vs Weekday Drinking habit - UK - December 2002
* REPORT by the department of Health - Sensible drinking- the report of an inter-department working group - December 1995
* REPORT FOR THE ADVERTISING STANDARS AUTHORITY - The public's perception of advertising in today's society - Ford-Hutchinson, S. & Rothwell, A. - February 2002
* THE PORTMAN GROUP Code of practice on the naming, packaging and promotion of alcoholic drinks - 3rd edition - september 2002
* ACADEMIC JOURNALS
* Joseph, K. & Richardson, V.J. (2002): Free Cash Flow, Agency Costs, and the Affordability Method of Advertising Budgeting.; Journal of Marketing; Jan2002, Vol. 66 Issue 1, p94
* INTERNET
* http://media.guardian.co.uk/site/story/0,14173,1298150,00.html "Could Minghella be good for you?"; The Guardian, Monday 6th September 2004. (accessed on 25.11.04)
* http://news.bbc.co.uk/2/hi/uk_news/northern_ireland/3621386.stm "Smoking ban hits Guinness sales" - september 2004-11-28 -(accessed on 25.11.04)
* http://www.adlawbyrequest.com/international/Alcohol122203.shtml Hernigan, D. (2003): UK threatens ban on alcohol advertising (accessed on 01.12.04)
* http://www.alcoholconcern.org.uk/files/20040506_085240_Advertising%20factsheet%20April%202004.pdf (accessed on 22.11.04)
* http://www.alcoholsummit.nsw.gov.au/fact_sheets (accessed on 22.11.04)
* http://www.allaboutbranding.com/index.lasso?article=94 (accessed on 20.11.04)
* http://www.asa.org.uk/the_codes/show_codes.asp?clause_id=1716 (accessed on 22.11.04)
* http://www.bcentral.co.uk/issues/marketing/marketingmethods/advertisingstrategy.mspx (accessed on 17.11.04)
* http://www.computerweekly.com/Article21539.htm - Vowler, J. (2000): Pure genius: Guinness drinks to successful reorganisation; IT Management: Supplier Relationship Management (accessed on 01.12.04)
* http://www.brandchannel.com/features_effect.asp?pf_id=19 Thornton, N. (2001): Globalized Guinness draws half pint at home (accessed on 06.12.04)
* http://www.dgr.nsw.gov.au/IMAGES/PUBLICATIONS/Liquor%20%26%20Gaming/Fact%20Sheets/6_1_Advertising.pdf (accessed on 22.11.04)
* www.diageo.com (accessed through all preparation)
* http://www.diageo.com/pageengine.asp?site_id=0§ion_id=0&page_id=690&status_id=3000 (accessed on 20.11.04)
* http://www.direct.gov.uk/Newsroom/NewsArticle/fs/en?CONTENT_ID=4015000&chk=JvzowX - Watchdog to tighten alcohol advertising rules; 19 July 2004 (accessed on 01.12.2004)
* http://www.fastcompany.com/online/58/marketing.html: Kirsner, S. (2002) - Brand Marketing: Guinness; Fast Company; issue 58, p. 92 (accessed on 17.11.04)
* www.guinness.com (accessed through all preparation)
* http://www.ias.org.uk/factsheets/advertising.pdf (accessed on 25.11.04)
* http://www.jointogether.org/sa/news/alerts/reader/0,1854,569898,00.html (accessed on 17.11.04)
* http://www.marketing.ie/feb02/article1.htm (accessed on 17.11.04)
* http://www.marininstitute.org/take_action/alerts_diageo.htm (accessed on 17.11.04)
* http://www.mediaweek.co.uk/articles/2004/2/QuantumArticle-2004-02-17070053 - - Media strategy (accessed on 01.12.04)
* http://www.mediaweek.co.uk/articles/2004/3/QuantumArticle-2004-03-23000029 Darwen, T. (march 2004): Advertisers: harness that bond between readers and magazines (accessed on 01.12.2004)
* http://www.ofcom.org.uk/consultations/past/psb/psb/sup_vol_1/tvb/section2/?a=87101 (accessed on 01.12.2004)
* http://www.othermedia.com/go/Article_33.html Briggs, J. (2002): Guinness in black and web (accessed on 17.11.04)
* http://www.pacemicro.com/corporate/content.asp?id=281&template=0 (accessed on 01.12.2004)
* http://www.portman-group.org.uk/ (accessed on 20.11.04)
* http://www.ppa.co.uk/# (accessed on 01.12.2004)
* http://www.strategy.gov.uk/su/alcohol/alcohol_harm07.htm#a (accessed on 20.11.04)
* http://uk.news.yahoo.com/041118/325/f6urb.html 18th November 2004
*
DEB
www.diageo.com
www.interbrewmarketreport.co.uk/2003/interbrewmarketreport2003.pdf
http://en.wikipedia.org/wiki/Guinness
http://www.thetoucan.com
GLOBALIZED GUINNESS DRAWS HALF PINT AT HOME
2001
THORNTON NICK
BRAD, April 2003, p15,28, 268, 560, & 564
Guide to Advertising on ITV, p19 & 24
Marketing Pocket Book 2003, WARC, pp13 & 139
Pub visiting - UK Auguest 2004, Mintel, pp27
Television Price Index Q1 03,Guerillascope TV,Guerillascope 2004
Website: http://news.bbc.co.uk/go/pr/fr/-/1/hi/business/4054351.stm
Visited:6th December 2004 at 1:00pm
http://news.bbc.co.uk/1/hi/uk/3537290.stm Drink yob blitz sparks fine rise
* BOOKS
* Yale, D.R. (1991): "The publicity handbook - How to maximise publicity for Products, Services & Organizations"; NTC Business Books, Lincolnwood, Illinois USA
* McCorkell, G. (1990): "Advertising that pulls response"; The John Fraser-Robinson direct marketing series; Mc Graw; Hill book company
APPENDICES
Average weekly viewing February 03, UK Multi-Channel homes
Channel
Av weekly viewing (Hrs:Mins) per person
Share of total viewing %
Weekly reach %
All / Any TV
27:58
00.0
94.6
BBC 1 (Incl. Brfast News)
5:24
9.3
86.8
BBC 2
:52
7.0
71.8
Total BBC
7:21
26.3
89.5
ITV(Incl.GMTV)
5:34
9.9
84.4
Channel 4/S4C
:45
6.3
69.9
Five
:18
4.7
54.9
Total/Any Comm TV
8:37
30.8
90.4
Sky One (Incl. Sky Sport)
0:58
3.5
42.0
Other Viewing
2:01
42.9
87.0
Source: BRAD, April 2003, pp28
Project Summary:
To come up with a creative brief that will increase the number of occasions in which consumers drink Guinness as well as promoting the company's unique approach and vision to a global audience. Currently the most popular times when Guinness is consumed most include St Patrick's Day and whilst watching sport.
Immediate goals include creating more attraction to the brand and increased share of repertoire.
The most significant goal on the long term is to motivate adopters to switch to Guinness in more of their drinking occasions and to keep refreshing the brand's image as weel as increasing consumer's brand loyalty.
Target Audience:
90% of Guinness drinkers are males aged between 18 and 35.
We are currently targeting adopters and adorers. They can be described as people who really enjoy drinking Guinness but along with others. They are playing a very important role because they are among the last stage of loyalty. Adorers are the one for whom Guinness is the favourite beer and adopters are the one for whom it is just one of their favourite.
Key Messages:
That Guinness can be consumed on occasions other than special dates, and that even if sharing a good moment with friends, a consumer is a special person and as such he should make his own decisions about what to drink.
"Fancy a quiet pint in your local on a Sunday or a big night out on a Friday with your mates? Settling down to a meal at home or meeting up with a colleague for a quick pub lunch? Or all of the above? It appears that there's always an occasion to enjoy a glass of the black stuff..."
Guinness is very careful not to promote the misuse of alcohol amongst young people and does not sponsor individual sports players who may become icons to the younger generations.
Background/Competitive Positioning:
Guinness ranks 5th in the beer category in Great Britain and 1st in the world for stout. The main competitors of Guinness are: Fosters, Carling, Carlsberg, Stella Artois and John Smiths which are consumed on any occasion by young males who are on a night out or down the local. Guinness faces problems in this area because it is not perceived to be something you can drink a lot of.
Communication Strategy:
The ads will have to be bright and sophisticated, as well as touching the emotions. The overall design of the ad must be fresh, and reflect speed, fun and relaxation. Channels for Communication include:
* Two 30 sec. Television ads
* 80 000 posters (pubs) 35 x 50
* Prototype press advertisements (outside back cover)
* 2 400 000 Table cards (17 x 24)
The mediums actually chosen for this activity are mainly the television advertisement and the printed ads for pubs and magazines, in order to reach the largest amount of our target audience. It must reflect Guinness' spirit in accordance with the laws on alcohol advertising. It should convey the idea of community and sharing, but also of the consumer making his own decision even within the group.
Desired Message Tone:
Guinness is associated with "an Irish sense of craic, sociable, down to earth/genuine. Guinness speaks as you would expect your well-informed mate to do down the local."
Guinness is trying to promote a friendly and fun message to the target group as well as an active one (you can chose by yourself and you don't need special occasions to drink Guinness with your friends)
Project Timeline:
2 months have been allocated to the production and diffusion of the ads on the chosen advertising channels.(July 2005 to June 2006)
Anticipated Budget:
The total expenditure forecast is set to £ 9.5 million
Cost and Measurement
Overall Cost Budgetting
This talbe lists all the cost we need for this adverting campaign, especially, the inflation factor has been considered while calculating.
6) TVRs - Television Ratings measuing reach on TV.
This year all the marketing spend is going to be entirely focused on the exisiting Adopter group of 200,000 Guinness drinkers. Therefore, our taget TVRs would be:
200,000 / the totall TV audiances x 100% = ????
7) C.P.T (Cost Per Thousand)
C.P.T. = Cost of TV Ads / No. of members of target X 1,000
= ??? / 200,000 X 1,000
= ???
8) Reach
Reach = the Numbers of the TV Ads exposed
20 times a day in the peak hours in the evening (6pm - 11pm)
9) Frequency
Frequency = The numbers of Guniness members are exposed to the
message
Channel
Timing
Audience
Evaluation
Budget
TV
Normal:
ITV
Sky Sport
St Patrick's day:
ITV
Sky Sport
During UEFA Champion's League game break --> one ad
During the 6 Nations Tournament 2005 (rugby) game break --> one ad
Once a day during the whole month of March
Once a day during the whole month of March
Will target Sport Viewers, mainly males (90%), to encourage them to switch to Guinness whie wtaching their games
- Number of enquiries from the advert
- Levels of customer retention
- Comparison with previous data
--> £ 1 068 650
--> £ 1 100 000
--> £ 395 560
--> £ 620 000
MAGAZINES
Arena
Men's Health
Back cover page for every monthly publication (12)
Back cover page for every monthly publication (10)
Will target male consumers more generally. Age group between 25 and 54.
- Comparison with previous data
- Number of enquiries converted into sales
- Number of requests for further information
--> £ 105 600 (12 ads* £8 300)
--> £79 800 (10 ads* £10 395)
PUBS
Regular providing of printed ad (posters) and table plastic cards at the beginning and 6 months after the beginning of the campaign
Will target beer drinkers in Pubs, generally "followers" (that tend to switch brand when drinking with their friends) all age groups.
- Level of repeat purchases
- Comparison with previous data
- Number of enquiries converted into sales
--> £ 11 570 for 60 000 Guinness posters
--> £ 720 000 for 2 400 000 plastic cards
Guinness Advertising campaign - Campaign 2005 - 2006