Mapping Categories and Brands to the Beverage Landscape

The Way of Shopper Marketing Classified - Internal use

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Mapping Categories and Brands to the Beverage Landscape

David Schmidt - Group Director, Portfolio Insights & Trends, Marketing Knowledge and Insights

[email protected]

CATEGORY AND BRAND MAPS

Category and Brand Maps is the art within Portfolio Strategy/Brand Role. The purpose of Category and Brand Maps is to understand people’s lives—their emotions, needs, desires, and relationships; this will inform our decision to position and expand existing categories and brands, or develop new ones.

HIGHLIGHTS

As our work around Category and Brand Maps has evolved for DNA 3.0, we’ve added a category/brand benefit segmentation to more quantifiably assert a brand’s potential to deliver against Consumer needs.

The Category and Brand Maps process helps us uncover the core emotional and physical Consumer benefits that our brands and competitor’s brands must deliver to capitalize on market opportunities. This process also provides an initial volume sizing for each opportunity.

Category and Brand Maps are used in conjunction with Profit Maps to break down the business imperatives coming from Business Growth Strategies and develop these into profitable portfolio strategies and distinct category/brand roles.

Confidential - Internal Use Only

CategoryBrandMaps_dwnld — pg. 1/14

CONTEXT

MAPPING EMOTIONS

MARKETS HAVE HUMAN FOUNDATIONSThe markets we play in are fundamentally shaped by people—their hopes, desires, and motivations. Category and Brand Maps benchmark categories and brands against these human foundations.

BRANDS CANNOT BE FORCED ON CONSUMERSPeople invite brands into their lives. The objective facts of consumption—who consumes what, when, how much, and so on—are important, but they are not enough to create outstanding brands.

CONNECTING TO PEOPLE’S LIVESBy understanding the roles our brands play in people’s lives, we gain insight into how we can deepen our bonds with Consumers and deliver the features and benefits that will resonate with them on several levels.



FRAMEWORK: CATEGORY AND BRAND MAPS

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MATURE ADULTS

The work of Category and Brand Maps is to produce and analyze a variety of maps and axes, searching for the combination that provides the best insight into opportunity. This example is need states/demographics. By mapping a brand’s ability to address a need state for a Consumer segment, we identify the brand’s epicenter and any opportunities to expand the relevance of the brand. We also illuminate white space opportunities in the market. Another alternative, mapping categories/brands on a need state/occasion basis portrays an execution lens.

NEED STATES

TEENS

YOUNG ADULTS

Category/ Brand D

Category/ Brand C

Category/ Brand B

Category/ Brand E

Category/ Brand A



PROCESS: CATEGORY AND BRAND MAPS

DEFINE AND MAP BEVERAGE LANDSCAPE



UNCOVER THE ESSENCE OF AND MAP BEVERAGE CATEGORIES

MAP TCCC AND COMPETITIVE BRANDS WITHIN THE BEVERAGE LANDSCAPE

INTEGRATE CATEGORY AND BRAND MAPS AGAINST EXECUTIONAL LEVERAGE POINTS (OCCASIONS, DEMOGRAPHICS, DAYPARTS, CHANNELS)

DETERMINE AND PRIORITIZE EXPANSION, COMPETITIVE AND WHITE SPACE OPPORTUNITIES

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A. CBL MAPS BEVERAGE BENEFITS TO PEOPLE’S UNDERLYING FUNCTIONAL AND EMOTIONAL NEEDS

Fundamentally, beverages play a functional and emotional role in many aspects of people’s lives by addressing abroad range of Consumer needs.

B. DIVIDE THE BEVERAGE LANDSCAPE INTO FOUR AREAS

Each area is characterized by an underlying set of benefits sought and delivery solutions required.

C. REFRESH THE CBL FOR YOUR MARKET BY MAPPING CURRENT VOLUMES AGAINST THE DATABASE

STEP 1: DEFINE AND MAP BEVERAGE LANDSCAPE

STAT

US/M

ASTE

RY

VITALIT

Y/ENERGY

FUN/EXCI T MENT CONNECTING/BONDING

CARE/ CO

MF

O RTT

Using beverages to release tensions

E

SENSORY PLEASURE

VIBRANT & ALIVE

ENERGY KICK

SUSTAINING ENERGY

ACTIVE REFRESHMENT

PURPOSEFUL NUTRITION

BODYPURIFICATION

CONFIDENCE/ INDIVIDUALITY

WEIGHT MANAGEMENT

ENJOY THE

MOMEN

T

CONNECTING

WITH OTHERS

COMPLEMENT FOOD

RELIEVE HUNGER

MENTAL RENEWAL

AID DIGESTION

RELAXED AND AT EASE

COPING WITH

STRESS

COMFORT

ROUTINE REFRESHMENT

Using beverages to afi rm

myself

S

Using beverages to control certain

tensions

Using beverage

s to integrate myself

DISTINCTION/INDIVIDUALITY CONTROL / TABILITY TRANQUILITY/RELAXATIO

N

DEFINE AND MAP



MAP THE LANDSCAPE

UNCOVER THE ESSENCE

INTEGRATE MAPS

DETERMINE AND PRIORITIZE


D. CREATE OPPORTUNITY AND RISK MAPS TO UNDERSTAND BUSINESS LANDSCAPE

CORE STRENGTHS: GREATER THAN AVERAGE VOLUME AND SHARE > 120 INDEX; ALSO AREA OF GREAT RISK IF WE LOSE SHARE

Note: Teens and Young Adults arestrongholds to defend

SPACES WHERE WE ARE UNDER- DEVELOPED AND INCREMENTAL OPPORTUNITY IS GREATER THAN AVERAGE; LARGER SPACES FOR PORTFOLIO EXPANSION

Note: OTG consumption is not large in volume, but we have strength in this profitable occasion and need to grow

OTHER STRENGTHS: SHARE> 120 INDEX, HOWEVER, LESS THAN AVERAGE VOLUME; SMALLER SPACES TO DEFEND AND GROW

Note: OTG consumption is not large in volume, but we have strength in this profitable occasion and need to grow

Work, Study,

Routine at Home

Total (12-69)

Age 12-19

Age 20-29

Age 30-39

Age 40-49

Age 50-59

Age 60-69

Breakfast At Home

Total

NABand TCCC

Share

Leisure Away From Home

Other Leisure at

HomeAt Work

Lunch Dinner

Snack at Home

On The GoAt

SchoolWatching

TV at Home

Eating Away From Home

Away From Home

TCCC Index > 120 Total Bev Vol > Average

(Core Strengths)

TCCC Index > 120 Total Bev Vol < Average

(Other Strengths)

TCCC Index < 90 Total Bev Vol > Average

(Opportunity)

SOURCE: Jan 2007—CBL databases for 35 countries projected tototal world (ages 12- 69) and TCCC Industry Estimates. Total Non- Alcoholic Beverages (RTD and NRTD) annual unit case volume in billions and KO share. Excludes tap water, alcohol, and dairy used for non- beverage purposes and non- commercial beverages.

At Home



171.5 22.2 28.1 27.7 23.9 26.9 2.9 21.0 4.3 8.9 5.610% 3% 14% 6% 9% 7% 18% 10% 24% 15% 18%

29.7 4.3 5.4 3.7 4.4 5.1 1.9 1.1 0.7 2.2 1.013% 3% 17% 8% 13% 10% 19% 15% 25% 20% 18%

38.1 4.8 6.1 5.3 5.1 5.9 0.7 5.0 1.2 2.5 1.412% 3% 17% 7% 11% 8% 15% 13% 24% 17% 19%

33.9 4.0 5.2 5.6 4.5 4.8 0.1 5.8 1.0 1.5 1.210% 3% 16% 6% 9% 8% 15% 11% 24% 13% 19%

31.0 3.8 4.9 5.4 4.2 4.8 0.1 4.8 0.7 1.3 1.08% 2% 13% 6% 7% 6% 15% 9% 23% 12% 16%

24.0 3.1 3.8 4.7 3.5 3.8 0.1 3.0 0.5 0.8 0.67% 2& 10% 4% 7% 5% 13% 8% 23% 10% 17%

14.9 2.2 2.7 2.9 2.2 2.5 0.0 1.3 0.3 0.5 0.35% 1% 8% 3% 5% 5% 10% 6% 21% 10% 12%


STEP 2: UNCOVER THE ESSENCE OF AND MAP BEVERAGE CATEGORIES

Map the footprints of beverage categories based on CBL.

PERFORMING

LIBERATING

MYSTICAL UNDEFINED

SPECIFIC PURPOSE BASED

PRACTICAL AND EASY

FAMILIAR

UNCOMPLI-CATED

SENSORIAL UPLIFTING RICH

VITALIZING

SOOTHING

INTENSIFYING

RITUALIZED SACRED

CALMING

SPECIFIC BENEFIT BASED

RESTORING

HEALING

STAT

US/M

ASTE

RY

VITALIT

Y/ENERGY

FUN/EXCI TEMENT CONNECTING/BONDING

CARE/ CO

MF

O RTT

DISTINCTION/INDIVIDUALITY CONTROL /STABILITY TRANQUILITY/ RELAXATION

Sports Drinks

Tea

Waters

FruitJuices

SparklingBeverages

CoffeesTea

Energy Drinks

Soya

The world of Coffee-based drinks is strongly linked to easing life’s intensities and finding inner strength.

The world of Tea-based drinks is strongly linked to maintaining a balanced state of mental andphysical well-being both for yourself and your companions.

The world of Water beverages is strongly linked to the purification of the body and maintaining yourself/family.

The world of Energy Drinks The world of Sports Drinks is strongly linked

to dominance, cultivating power or control.

The Sparkling beverage world is strongly linked to spontaneous pleasurewhich in turn is associated with the universe of being youthful and carefree.

The world of Fruit Juice drinks is strongly linked to pleasurable sensations of goodness from nature.

is strongly linked to an eagerness to perform and the desire to transform or unleash yourself.

DEFINE AND MAP



MAP THE LANDSCAPE

UNCOVER THE ESSENCE

INTEGRATE MAPS



STEP 3: MAP TCCC AND COMPETITIVE BRANDS WITHIN THE BEVERAGE LANDSCAPEA. BRAND ASSESSMENT

Each brand in the portfolio is evaluated to understand its current performance and long- term potential.

ASSESSMENT AREAS DATA POINTS

EVO LNDAR B

1.Brand Love/Preference

2. Loyalty3. Brand Vision4. Brand Awareness5. Brand Relevance6. Brand Personality7.Brand Landscape

Metrics:1.Favorite Brand Score2. Brand Personality

IndicatorsData Sources:1. B3 Brand

Performance Indicator

2. CBL3. SPAN

E LUA VNDAR B

1.Brand Profitability

2. Brand S ize3. Brand Growth4. Market S hare5. Brand Premium

Metrics:1.Economic Profit

Generated2. Volume Generated3. Brand Contribution /

DME4. Refuel Rate5. Market ShareData Sources:1.Brand Financials,

Brand Contribution Tool

2. Market Insights

EC N

NDM

AARRO BF

ER P

1. Brand Extendibility2. Brand Business Fit3. Brand Equity

Transferability4. Possibility to be merged

withother Brands

5. Iconic S tatus of Brands: Cultural/ Emotional/Available

Metrics:1. Potential Volume/Revenue/ Profit

Data Sources:1. CBL2. B3 Database3. S PAN

BR

AN

D L

OVE

BR

AN

D

VALU

EB

RA

ND

PO

TEN

TIA

LDEFINE AND MAP



MAP THE LANDSCAPE

UNCOVER THE ESSENCE

INTEGRATE MAPS



BRAND LOVE

BRAND VALUE



AREA QUESTIONSBrand Love/ Preference/ Loyalty

What are the brand conversion rates?

Brand Vision What is the vision and objective for the brand? (see BVA)

Brand Awareness/Reputation What is the brand’s awareness level? Is the brand well regarded in the marketplace? Does it have high perceived quality?

Brand Relevance Is there a perceived need or desire by the Consumer for a product category or sub- category defined by some combination of attributes or other distinguishing characteristics?Is the brand among the set considered by that Consumer to be relevant for the product category or sub- category?

Brand Differentiation/ Personality

What are the points of differentiation in imagery and equity?

Brand Domain/Landscape To what demographic, need state and occasion is the brand targeted?

AREA QUESTIONSBrand Pro fitability What has the brand’s profitability been? What is its

forecast profitability?

Brand Size How much volume does the brand generate?

Brand Growth What is the brand’s growth forecast?

Market Share What is the brand’s market share?

Brand Premium Does the brand command a premium vs. its competition?


BRAND POTENTIAL

B. ASSESS VERSUS THE GLOBAL BRAND/BENEFIT SEGMENTATION (A.K.A. LAND GRAB STUDY)

Use this to quantifiably assert a brand’s credentials to deliver against Consumer needs.

Source: CBLConfidential - Internal Use Only


AREA QUESTIONSBrand Extendibility Does the brand have potential to extend to other areas?

Can it be a platform for growth?

Brand Business Fit Does the brand drive a business that fits in strategically with the direction of the Company?

Brand Equity Transferability Could the brand equity can be leveraged to capture an opportunity in the portfolio?

Possibility to be Merged withOther Brands

Could the brand be aggregated with other brands in the portfolio to form one brand?

Iconic Status of Brands:Cultural/ Emotional/ Available

What is the iconic status of the brand?


C. BRAND MAPPING WITHIN THE BEVERAGE LANDSCAPE

Then, we map brands into the beverage landscape.

M

STAT

US/

MAS

TERY

VITALIT

Y/ENERGYFUN/EXCI TE ENT CONNECTING/BONDING

CARE/COM

FOR T

Category X

Brand A




STEP 4: INTEGRATE ALL CATEGORY AND BRAND MAPS AGAINST EXECUTIONAL LEVERAGE POINTS (OCCASIONS, DEMOGRAPHICS, DAYPARTS, CHANNELS)

A. MAP ALL CATEGORY AND BRAND FOOTPRINTS AGAINST CONSUMER TARGETS AND DO FURTHER ITERATIONS AGAINST OCCASIONS, DEMOGRAPHICS, DAYPARTS, CHANNELS

This step brings together a full marketplace picture by integrating all categories and brands—our own and our competitors’.

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NEED STATES

Brand B

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Brand D

Brand E

Brand I

Brand J

Brand K

Brand L

Brand H

Brand G

Brand F

Brand A

DEFINE AND MAP



MAP THE LANDSCAPE

UNCOVER THE ESSENCE

INTEGRATE MAPS



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B. THIS MAPPING ALLOWS US TO IDENTIFY CATEGORY AND BRAND-SPECIFIC OPPORTUNITIES. THESE OPPORTUNITIES ARE EITHER: EXPANSION OPPORTUNITIES, COMPETITIVE OPPORTUNITIES OR WHITE SPACES

Brand Stretch = Opportunity to exploit latent equities or target new Consumers

White Space = Opportunities that our current portfolio is unable to capitalize on, but which are accessible through brand extension, repositioning, or acquisition

NEED STATES

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TEENS

YOUNG ADULTS

ADULTS

Brand EBrand K

MATURE ADULTS

White space opportunities: Brand extension, repositioning, acquisition

Brand stretch opportunities

Brand A Brand B

Brand D

Brand F

Brand G

Brand H

Brand J

Brand IBrand C

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STEP 5: DETERMINE AND PRIORITIZE EXPANSION, COMPETITIVE AND WHITE SPACE OPPORTUNITIES

Here we overlay Profit Maps to inform Portfolio Strategy. While Category and Brand Maps identify equity opportunities, Profit Maps provide the value/volume quantification of those equity opportunity spaces. This combination uniquely informs our portfolio decisions.It is important to convene relevant cross- functional team members for a workshop to determine and then prioritize opportunities and risks.

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TEENS 17 81 2 44 21 80 97 38 18 11 52 32 60 23

Brand H

82 15 26 71 39

YOUNG ADULTS

5 13 63 27 4058

Brand C

Brand B

36 459

77 30 12 9618 3

Brand G

23 56 29 13 35

29 51 20 19

ADULTS 37 22 2Brand D

47 34 61 37 90 27 79 14 10 26 70

MATURE 80ADULTS18 24 67 55 95 33 76 6 69 41 19 99 46 93 31 83 65 4

Brand A Brand B

Brand D

Brand E

Brand F

Brand G

Brand H

Brand J

Brand K

Brand IBrand C

White space opportunities: Brand extension, repositioning, acquisition

Brand stretch opportunities

NEED STATES

Brand A

Brand EBrand K

Brand F

Brand J

Brand I

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TS: D

EM

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ICDEFINE AND MAP



MAP THE LANDSCAPE

UNCOVER THE ESSENCE

INTEGRATE MAPS


Documents

Mapping Categories and Brands to the Beverage Landscape