Yesterday morning I visited the Twinings HQ in Andover for
a session of ‘sharing and leveraging experiences’ with various members of their
International Markets team. Twinings is part of Associated British Foods (ABF)
and is, at the moment, one of ABF’s star companies in terms of marketing.
As a B2C product, Twinings do a lot of promotional
marketing in order to connect with consumers and ultimately change their buying
behaviour. This promotional marketing includes trade shows, shop floor
sampling, coupons, and competitions. Sounds like
common sense, doesn’t it? But how can you be sure that all the money you spend
on promotional activity is actually having a positive effect on your profit?
About 2 years ago Twinings decided that they needed to
start measuring the return on investment of promotional activities. Comments
such as ‘oh well, we’ve always done this trade show so it must bring value to
the business’ were no longer cutting the mustard.
Twinings now spend an enormous amount of money on buying
data and information about their different consumers and markets so that they
can perform both pre and post evaluations of each promotional activity. The
post evaluations include short term uplift, long term uplift and price
elasticity (when price isn’t the driver of the sale – the price can be high and
could continue to increase but people still buy it because of the brand equity
and the relationship the consumer has with the brand). They have a dedicated promotional evaluation
team and rely heavily on the feedback and sales reports from their sales teams.
It really struck me how market insights and data lie at the centre of
developing a more sophisticated, efficient and measurable marketing approach.
I’d like to force this fact on people who believe marketing is just making a
pretty advert and formatting slides!
It’s true that insights and data are vital in marketing as they
can demonstrate the value of your marketing in numbers and figures (directors
love this). These are the tangible measurables of marketing. With branding, and
the relationship the consumer has with a product, things become much more
intangible but are still important.
Intangible effects of good brand equity could be ‘I like to
buy Twinings tea because it shows other people that I have good taste’ or ‘I
buy Twinings because I like the look of the packaging in my cupboard’. How can
you measure that?! It’s very difficult but it still impacts on sales and
growth. I spoke with the Nordic Region General Manager who was actually
initially employed to embed the more measured approach to the company
marketing, and he is now keen for Twinings to implement a way of measuring
brand equity and its effects on consumers. Good luck!
Food for thought:
Doing something is pointless if you aren’t going to measure
it.
Nothing changes if nothing is measured.