The Nestlé Approach to Consumer Engagement in a Digital World Tom Buday Head of Marketing & Consumer Communication Nestlé S.A.
Part of the story 94M 3.7M +100% 16M >50% 43 Fans of Nestlé brands on Facebook1 Views for Contrex video on YouTube, the world s most shared video in Oct. 11 1Through August 2 Average weekly new fans of Nestlé brands on Facebook2 of Nespresso capsules sold online 26; not unduplicated 2July 14 August 26 Growth in fans of Nestlé brands on Facebook H1 12 vs. YAG Markets using Nestlé standard listening tools
3 Source: Andy Sernovitz, Hugh MacLeod
Message quality matters most in driving ROBBI1 High ROBBI1 Low Low 4 1Return Message Quality on Brand Building Investment High
Missing the Point? 5
Our view Platforms don t work (or not) Brand campaigns and messages do 6
Message quality matters now more than ever High 2012 Social platforms and consumer sharing of brand content, powered by technology 2002 ROBBI Consumer avoidance and rejection, powered by technology Low Low 7 Message Quality High
The Nestlé Way Minimize avoidance and rejection Maximize impact, sociability and sharing Do it consistently, at scale 8
Maximizing impact - Nestlé TV copy effectiveness Base: All Nestlé aired ads 2009 (141 ads), 2010 (227), 2011 (151) and YTD June 2012 (59). Numbers shown are percentage of ads scoring in the top quartile of Ipsos/Millward Brown database of all tested ads.
A large proportion of viral viewing is predictable based on creative power r = 0.63 Views per week (index of Logged) 130 120 110 100 90 80 80 10 90 100 110 Creative Viral Potential 120 130 Source: Creative determinants of viral video viewing, Duncan Southgate, Nikki Westoby and Graham Page, Millward Brown, Published in International Journal of Advertising, July 2010
2012 all advertisers WARC Effie Effectiveness Index
2012 food advertisers WARC Effie Effectiveness Index
Scaling impact capability
Scaling impact capability Gerber Milo Nescafé Dolce Gusto Guigoz Perrier Nescafé
Maximizing sociability 15 15
Scaling sociability Do s Thank Mavens for wonderful, positive posts Acknowledge Mavens by their first name when responding Sign off using my signature: xoxo~skinny. Don ts Overuse cow puns a few get moovin references are ok, but stay away from referring to my Mavens as a herd or any other cow stuff. (Use these sparingly less than 5% of the time) Give specifics around where I live or my family. Sometimes Mavens will want to know what pasture I live in or what my family is like. I just respond vaguely with something like I couldn t love my digs more or I <3 my family, thanks for asking. Initiate or participate in any conversation involving religion, politics or sexual subjects. Everyone has their own beliefs and I like to stay neutral. Publicly promise a Maven anything. Other Mavens will feel left out and ask for whatever you re giving out and it could spiral out of control. If you want to give a coupon or anything else to a Maven, do it privately and directly. Insult anyone, even jokingly. Avoid using any vulgar or offensive slang talking. Coach or tell my Mavens what to do. 16
Sociability framework well applied 17
The benefits of sociability Paid Owned Earned Total Impressions ('000) 364,733 167,460 23,723 555,916 Proportion of Total Impressions 65.6% 30.1% 4.3% 100.0% Note: contact points include TV, Facebook, and search. Data are for H1 2012 18
Sociability in action No Paid Media Support Reach 85,034 Engaged users 4,675 PTAT 3,804 Success drivers: imagery, succinct messaging, timeliness (St. Patty s day)
Sociability in action Paid media support Reach 286,636 Paid 222,821 Organic 89,614 Earned 20,137 Engaged users 7,863 PTAT 3,827 Success drivers: effective use of paid media to increase reach and engagement. Great image and copy; simple and to the point.
Skinny Cow Retail Dollar Sales - US TOTAL SKINNY COW - US (xaoc+c-store) Dollar Trends (Millions) 30 25 20 15 10 5 0 4W END 01/28/12 4W END 02/25/12 4W END 03/24/12 4W END 04/21/12 4W END 05/19/12 4W END 06/16/12 4W END 07/14/12 4W END 08/11/12 21 Market Definition US Expanded All Outlets = Food, Drug, Mass (5 retailers), Wal-Mart, Club (2 retailers), Dollar (3 retailers) and DeCA (Military) Mass = Target+Kmart+Shopko+Pamida+Alco Club = Sam's+BJs Copyright 2011 The Nielsen Company. Confidential and proprietary. Dollar = Dollar General+Family Dollar+Fred's
Maximizing sharing 22
Strong message quality Copy Effect Index* Total Women 30-65 Women 30-49 Non-buyers Women 50-65 Contrex buyers Vélo 234 263 261 *CEI = Impact (Visibility/Link to the brand) and Persuasion (Purchase Intent). Source: Ipsos pre-test 23
Success with sharing 24 16 million views on YouTube, 12 million earned #1 video viewed in September in France #1 video shared in October worldwide In YouTube s Top 20 most liked and viewed ever Sources: YouTube (metrics are for entertainment category); Mashable.com October 2011 (does not include music videos, user-generated content or movie trailers)
Contrex market share in France 7.9 7.7 7.8 7.8 7.7 8.0 7.9 7.9 7.8 P4 P5 CC P5 7.3 7.2 6.7 6.4 6.0 P5 P6 P7 P8 2011 P9 P10 P11 P12 P1 P2 P3 2012 Source: IRI hypermarkets + supermarkets, volume market share of bottled water
We are learning rapidly BRAND FACEBOOK RESULTS OTHER METRICS Gerber USA ROI $3.91 for every $1 spent 3.1M Fans Kit Kat UK ROI 1.31 for every 1 spent 11% of media-driven sales Nescafé Philippines 10% Rise in Sales 1.25M New Fans Kit Kat Philippines No. 1 Local Brand Page Butterfinger USA +6 pt inc brand favorability 90% Fans Reached Kit Kat Brazil +24-point increase in ad recall 80,600 Fans in 3 days Baci Perugina 100K New Fans 1.5M Impressions Nescafé India ~2M Fans in 2 years Nestlé chocolate Turkey 55K Fans +15 incr in brand aware. Infant Nutrition Greece 7,000 Fans in 3 wks 40% engagement rates Nescafe Shake it Up 35K new Fans 7.7M Impressions Note: ROI = sales return on investment
The Nestlé Way Minimize avoidance and rejection Maximize impact, sociability and sharing Do it consistently, at scale 27