Launch of a product. Market: Italy

1. SCHWEPPES ANTIOX
Launch of a new product
Market: Italy

2. REASON WHY
Schweppes Brand Strategy
• Tonic water captures an adult consumer and builds high
loyalty.
• Orange and lemonade broadens the consumer base.
• Product Development: Brand expand via launches of
"straight drinking" flavours.
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3. REASON WHY
Brand situation
“Tradition & Leisure”
Litres per capita
200 Reg Cola
Schweppes light
150 Schweppes
Customer
100 retention
50
0
age 8 12 16 20 24 28 32 36 40 44 48 52
35-50
• Younger image
Source: Canadean • Balances lifestyle
SCHWEPPES ANTIOX 3

4. REASON WHY
Brand opportunity:
• Mantains its attraction and acceptance: line extension.
Innovation meets a social trend:
• Every day people want to look, feel and even be younger.
• Cellular damage, pathway for aging
• Free radicals can damage important cellular components.
• Antioxidants can safely interact with free radicals.
• The principle micronutrient (vitamin) antioxidants are vitamin E,
beta-carotene, and vitamin C.
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5. REASON WHY
The Opportunity
24%
POPULATION ITALY
14.4
60.3 MM
55%
MM concerned
Rest healthy lifestyle/young image
45.9 35-50
MM
20% 15% 20%
chooses open to Other
categories
Schweppes Penetration Schweppes light
45%
Water
Juices Flavoured water
Sources: Eurostat, TNS RTD tea Functional drinks
SCHWEPPES ANTIOX 5

6. THE PRODUCT
Schweppes Antiox
Emotional Attractive & Modern
territory packaging
ANTIOX
“Straight
Sophisticated
drinking”
SCHWEPPES ANTIOX 6

7. THE PRODUCT
Target
“I am always very busy. With a demanding job I only
have time for a quick brunch. I like going out with friends
after work. And then a little reading trying to prepare
something light and natural for dinner. I’d like to be
younger. I often wish I could STOP TIME. I only find
solace in the gym or at the spa. Oh, and when I have my
Schweppes Antiox”.
Schweppes Antiox. Stop time.
(Positioning statement)
SCHWEPPES ANTIOX 7

8. THE PRODUCT
Target
• 35-50 years old.
“I am always very busy. With a demanding job I only
• Mainly women and modern men.
have time for a quick brunch. I like going out with friends
after work. And with plenty of reading trying to prepare
• Busy people then a little social activity.
something light and wellness.for dinner. I’d like to be
• Body and mental natural
younger. I often wish when they go out.
• Reserve mixers for I could STOP TIME. I only find
solace in thechoose as a “straight drink”. when I have my
• What to gym or at the spa. Oh, and
• Feel guilty.
Schweppes Antiox”.
Schweppes Antiox. Stop time.
(Positioning statement)
SCHWEPPES ANTIOX 8

9. THE PRODUCT
Role in the portfolio
Schweppes:
- Complementary.
- Brand Rejuvenation.
Champomy (children) ANTIOX
60% additional volume.
Orangina (18-35) 30% cannibalism Schweppes
- Substitute when older.
10% “ rest.
- As healthy but +refreshing.
Oasis (joy & fun)
- Sophisticate Premium price
greater profit.
Energade (reenergizes, +volume)
- Vs aging, fast food.
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10. THE BOTTLER
Portfolio issues
adult
ANTIOX
SCHWEPPES
ENERGADE
ORANGINA
fun care
OASIS
CHAMPOMY
child
SCHWEPPES ANTIOX 10

11. LAUNCH PLAN
Where & What
Channels:
- Home: Ideal to drink at home at a relaxing moment.
Supermarkets and Groceries.
- On Premise: Ideal to drink with friends or colleague after work.
Coffee-shops, modern & fashionable bars.
- Niche: At those moments in which you are thinking about your wellness.
Gyms, SPA/wellness centers, healthfood stores.
Formats:
- 25cl bottle aluminum.
- 25cl can.
- Multi-pack 6 can.
- On-the-go plastic 33cl bottle (to be tested).
Flavours: Blackcurrant, Raspberry (both slightly carbonated).
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12. LAUNCH PLAN
How
• Partners: Presentation to the sales team, sales material, motivation plan.
• Customers: Presentation to strategic customers, kit Antiox deluxe.
– VIP party held in a venue most relevant to the target’s social life.
• Consumer in the POS:
– Sampling: selected gyms, healthfood stores and in the street (business areas).
– Activation of every channel (merchandising POS, coolers). Special plan for gyms.
– In supermarkets Antiox will be placed on shelves next to Schweppes Orange.
• Promotional activity (proposal to trade).
• Advertising Research:
– Pretest: 4 focus groups (women social life, women work, women fitness, men).
– Postest: Quantitative research based on personal interviews.
• Production: high quality aspirational production overseen by a good producer.
• Media planning:
– TV: Special attention to affinity (TV programs according to life style).
– Outdoor.
– Internet: special ad formats at specific sites for wellness, business women, trying to be viral
(links to an internet serial, calls to a jogging event) and Google Adsense.
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13. LAUNCH PLAN
When & How much
FEB MAR APR MAY JUN JUL SEP-NOV
Presentation to partner
Presentation to customers
Launching (pipe line) Pipe line
POS activation
Promotional activity to customers
TV Pretest 1000 Postest 500 Postest
Internet and Outdoor
Sampling
Special plan Gyms/Spa/Wellness
Jogging event
Promotional activity to consumer
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14. LAUNCH PLAN
When & How much
Marketing Communication
Pretest 3.000
Postest 10.000
Production 200.000
ATL 2.800.000
TV 1.500.000
Internet 800.000
Outdoor 500.000
BTL 300.000
Sampling 250.000
Big boards 50.000
Materials 200.000
TOTAL 3.513.000
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15. P&L
Sales Target
litres cl units un cases
Total 8.000.000 100% 34.000.000 1.500.000
home 5.200.000 65% 0,25 20.800.000 24 866.667
on premise 2.000.000 25% 0,20 10.000.000 20 500.000
niche 800.000 10% 0,25 3.200.000 24 133.333
Prices & Costs
Retail Bottler Orangina
price incomes margin price incomes margin price incomes margin costs
Total 1,08 36.640.000 112,8% 0,51 17.220.000 22,0% 0,42 14.120.000 42,3% 0,292 9.920.000
home 0,55 11.440.000 37,5% 0,40 8.320.000 5,3% 0,38 7.904.000 35,7% 0,28 5.824.000
on premise 1,80 18.000.000 176,9% 0,65 6.500.000 30,0% 0,50 5.000.000 56,3% 0,32 3.200.000
niche 2,25 7.200.000 200,0% 0,75 2.400.000 97,4% 0,38 1.216.000 35,7% 0,28 896.000
Orangina Schweppes Bottler
Income 14.120.000 Income 17.220.000
Product cost -9.920.000 -70% Product cost -14.120.000 -82%
Marketing * -1.756.500 -12% Sales&Marketing -1.356.500 -8%
Operating profit 2.443.500 17% Operating profit 1.743.500 10%
Structure -300.000 -2% Sales&Structure -100.000 -1%
Financial -100.000 -1% Financial -10.000 0%
Before Taxes 2.043.500 14% Before Taxes 1.633.500 9%
Taxes -613.050 -4% Taxes -490.050 -3%
Bottom line 1.430.450 10% Bottom line 1.143.450 7%
* 50% charged to the bottler
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16. THE BOTTLER
Sell the project
- Schweppes Antiox is aimed to a need we hadn’t satisfied. Its launch leads
to a higher share of throat and share of customer.
- Helps to develop a channel (Gym) and open new ones (Wellness centers,
healthfood shops).
- Emblematic product to access current non buyers (future opportunity to sell
tonic water and citrics).
- Strong brand support by advertising, refreshing global brand awareness.
- Makes Schweppes brand closer to today’s consumer aspiration and
balances market penetration among women vs men.
- More profitable premium price product (consumer willing to pay up to 1.5 times
the price of a regular drink) for customers and bottler.
- As it completes the brand portfolio it reduces logistics costs per case.
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17. THE BOTTLER
Proposal to trade
• Activation POS: materials (quantities adjusted by the bottler).
• Presentation to sales teams and customers.
• Launching the product to all channels at a time. Niche -> image.
Supermarkets -> awareness. On Premise -> trial.
• Samplings and parties in top-100 customers (chosen by the bottler).
• Competition among sales teams: win an anti-aging weekend treatment.
• Competitive pricing policy to customers during the launching (e.g. 50% off,
sell one flavour, give the other for free; never leave it for free).
• Promotions to consumer:
– Home: Buy 1 flavour, get other free. Limited edition bottles.
– All channels (under the cap/ring): Send a SMS and win a SPA session for 2
people (immediate prize).
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18. THE BOTTLER
Portfolio issues
Mineral & flavoured waters:
- Home: direct competitor, +profit
- OP: direct competitor Alice, “
Fruit drinks
-Battik Succoso: children.
ANTIOX - Tropico: still thirst-quenching (Oasis), not aimed to wellness care.
Tea (San Benedetto, Guizza)
- For families vs individual / selfish use.
Carbonated (San Benedetto, Guizza)
- Big format, no worry, party cheap drinks.
Camomile (baby drink)
Aperif Ben’s (bitter, ginger)
- Different consumption time. Complementary.
Bottler: San Benedetto SCHWEPPES ANTIOX 18

19. THE BOTTLER
adult Portfolio issues
BEN’S
ANTIOX
SCHWEPPES
M.WATER
F.WATER
ENERGADE
ORANGINA
TROPICO
fun care
TEA
OASIS
CARBONATED
BATTIK
CHAMPOMY
CAMOMILE
child
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20. How to measure
SUCCESS
- Brand awareness, preference and loyalty (TNS).
- Brand positioning: more modern keeping reliable (TNS).
- Advertising recordance (3CAT consumer tracking).
- Market share (Nielsen): total Schweppes brand among soft drinks and
Antiox.
- Numeric distribution and, above all, weighted distribution (Nielsen).
- On Premise: number of references bought at the Top-100
(transactional data).
- Home: rotation, out-of-stock, shelves linear centimeters.
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21. Support from the
GLOBAL MARKETING TEAM
• All the research before, during and after the launch.
• Get the brand name and packaging designed.
• Choose materials, get its decoration designed and negotiate with suppliers.
• Work with the agency to find the core message and create the campaigns.
• Negociate with media buyers.
• Plan every activity (sampling, parties).
• Prepare the presentation to the bottler.
• Coordinate activities with the bottler (customer selection, daily data of the
launching results).
• Measure success in person along with the bottler’s sales people.
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22. Support from the
PARTNER MARKETING DPT
• Select special customers.
• Choose quantities for every material.
• Negotiate the introduction of the new product and promotions with
big stores, special On Premise customers, big Gyms or reputable
SPA centers.
• Check the materials are properly set on premise / in stores.
• Local permissions for the samplings.
• Invite important customers and VIP to the launching party.
• Extract data about the launching (transactional, Nielsen, IRI).
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23. Thank you for your attention
Alfonso Gadea
February 2011