Fresh Produce Promotional Campaign in the UK Market. Copyright to RED Communications Ltd 2009/10

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1 Fresh Produce Promotional Campaign in the UK Market Presentation to Justin Chadwick, CEO Citrus Growers Association Wednesday 14 th October 2009

2 Background In 2009 the South African plum industry launched its first campaign in the UK market. Uniquely, this campaign was joint-funded between the SA plum industry and the SA government The International Marketing Council of South Africa (Brand South Africa) has made the South Africa Alive with Possibility branding available for the campaign and this has been used as part of the campaign image and throughout all activity The integrated campaign included; in-pack booklets, sampling, retail media, consumer media, celebrity endorsement, holiday & wine offers, a press trip, campaign launch event and DVD as well as consumer and trade public relations The activity was a great success: plums become the top performing fresh produce category between January-March; South Africa market share improved; retailer relationships were strengthened; and goodwill was built for brand South Africa with both trade and consumers

3 An Introduction to RED Communications

4 We Understand UK Produce Retail RED Communications was founded in 1996 and is an integrated marketing services provider. We work with trade associations, embassies, importers and retailers. We specialise in marketing campaigns for own-label products within the fresh produce industry We understand UK fresh produce retail very well. We have excellent relationships with the buyers, importers, retail marketing teams and retail legal departments. We are frequently recommended by the retailers themselves to handle promotional activity We have worked with Foods from Spain for the past 9 years and have managed all of their promotional activity for the past five years RED understands the UK consumer well and are frequently commissioned by the multiples and their suppliers to conduct customer research projects

5 RED Specialises in Fresh Produce

6 The RED Proposition An Integrated Approach DVD Capabilities Advertorials Advertising Consumer PR Events Trade PR Customer Research Literature Photography Websites Retail Activity In-Store Recipe Development On-Pack Promotions

7 The Account Management Team John Valentine, Managing Director, has 25 years of retail, food and general marketing experience, including 12 years in senior marketing and buying roles at Tesco, five of which were in fresh produce. John first visited South Africa in 1990 when he was responsible for citrus buying at Tesco. John established Red Communications in 1996 Jenny Moore, Account Manager, has a marketing degree and has managed campaigns on behalf of Red Communications key fresh produce clients for four years. Jenny works with supermarket buyers and importers on a daily basis implementing promotional activity for our worldwide clients Dominic Weaver, Communications Manager, has nine years experience in fresh produce journalism, including three years as editor of the leading fresh produce publication the FPJ, and three years as acting editor of Checkout magazine, the key retail trade title

8 The Account Management Team Gemma Hughes, Account Manager, has worked in marketing, PR, and market research since graduating from university three years ago. Her role at RED has involved PR strategy development and implementation, with previous experience including corporate branding and communications Ana Lacuna, Account Executive, is a Spanish national with a degree in business management from Zaragoza University and a masters degree in e-commerce

9 The Account Management Team

10 The Account Management Team Media Buying Team Katherine Summers Kirsty Ogilvie Creative Team Geoff Hobbs John Moffett Steve Reed Account Director John Valentine Account Managers Jenny Moore & Gemma Hughes Promotions Mike Houghton Account Executive Ana Lacuna Communications Team Dominic Weaver Jenny Peacock Michaela Murray

11 UK Market Data

12 Market Data Volume (12 Weeks) Volume Change KG (%) 60 Plums Total Market Nectarine Peach Citrus Grape Total Fruit Apples Bananas Pears Melon Exotic Fruit TNS Superpanel Data 12 w/e 22 March 09

13 Market Data Value (12 Weeks) Spend Change (%) 15 Plums 10 Pears 5 Grape Total Market Apples Bananas Citrus Total Fruit Peach Nectarine Melon Exotic Fruit TNS Superpanel Data 12 w/e 22 March 09

14 Market Data Volume (52 Weeks) Volume Change KG (%) 10 Plums Grape 5 Nectarines 0 Citrus -5 Total Fruit Apples -10 Pears -15 Bananas Peach -20 Exotic Fruit -25 Melons Total Market TNS Superpanel Data 52 w/e 22 March 09

15 Market Data Value (52 Weeks) Spend Change (%) 15 Pears Grape 10 Citrus 5 Plums Total Fruit 0 Apples Bananas -5 Peach -10 Nectarine Melon -15 Exotic Fruit Total Market TNS Superpanel Data 52 w/e 22 March 09

16 Objectives Using the Football World Cup and trips to South Africa as a promotional mechanic, drive sales of South African fresh produce through leveraging market share and increased category sales Communicate the key South African USPs (unique selling points) to both the trade and UK consumers. Establish South African fresh produce as the preferred purchase for both consumers and retail buyers By using an integrated approach also promote South African tourism; South African wine and the South African brand Develop customised promotional campaigns for each retailer to leverage market share and deliver account specific and variety specific objectives By using in-store and on-pack mechanics accurately target activity and influence retailer and importer procurement decisions

17 Situation Analysis & Strategy

18 Situation Analysis Brand South Africa The plum campaign has demonstrated that South Africa commands goodwill from both the trade and consumers. We received an unprecedented over 39,000 entries for the holiday offer With the frenzy that will be the 2010 Football World Cup, in the UK there will be extraordinary media focus on South Africa over the next months The opportunity exists to convert this goodwill and media focus into increased demand for South African products via growth in the relevant markets and increased market share. Ultimately, increased demand will sell the crop quicker and put upward pressure on prices in all markets With government funding the campaign can grow demand for South African apples and pears; help promote South African Tourism and wine industries as well as enhance the awareness and reputation of South Africa as a brand

19 Tactics & Approach

20 Approach The approach we take with our integrated campaigns is an inclusive one, where we will present the plan individually to both importers and retailers well before the season is due to start We have excellent relationships with the suppliers, retail buyers and retail marketers. All stake holders are involved at all stages and we build a consensus of support This delivers what we describe as the chicken and egg effect. Sales go up because of the activity but they also go up because the retailer allocates more space, more promotions, more corporate support and favours their procurement strategy towards the promoted line We work from an agreed plan, we distribute results, coverage and adverts. A mid campaign report is produced and finally an end of campaign report. The final stage is to review results and take the learning points for the planning the following year

21 Tactics Our integrated approach will include above the line activity of trade and consumer PR and advertorials We will engage with all the supermarkets own magazines and websites to secure editorial coverage for South Africa and South African top fruit Retailer specific in store promotion packages will be developed and presented to all stake holders A launch event will be held in Central London and all importers and retailers invited Regular news updates, coverage and adverts in magazines will be circulated to the retail buyers We will link with Wines from South Africa and South African Tourism A press trip to South Africa will be organised for trade and key supermarket and consumer journalists

22 Tactics We will also develop competitions for store colleagues with prizes for the most successful South African top fruit promotions. Importers will also have a competition with a prize for the organisation that achieves the largest uplift in South African top fruit year on year In addition to World Cup competitions on pack we would also organise competitions in the media with holidays to South Africa and wine offers as prizes. Entrants can enter with proofs of purchase for South African apples and pears

23 Tactics Where possible, the Alive with Possibility logo will be incorporated within all promotional activities