Measuring ROI for Social Marketing Campaigns

Chivas Regal 18 Espritu de Progreso Latino

Cause-Related Integrated Marketing Program

Carlos Santiago
President & Chief Strategist Santiago ROI

May 12, 2010

Business Situation Analysis

Guided PRUSA with intelligence and knowledge about
the size and profitability of their current Hispanic franchise and where there was room for growth across to build their brands.

We developed and executed a

brand portfolio prioritization, S-T & L-T opportunity sizing and trends-insights scan.

Insights Discovery From Strategic Perspectives

Market
Volume Opp, Share & Competitive Strength

Category
Distributor & Retailers
Contribution, Share & Efficiency

Segment Brand
SKU

Consumer
Buyer Profile, Growth & Purchase Behavior

Communications
Influencers, Traditional Media, New Media
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Hispanic Growth Opportunity Mapping vs. Non-Hispanic

The volumetric for key brands identified a 10-30% upside S-T volume opportunity from the Hispanic segment
representing the biggest engine of immediate profit growth for PRUSA overall.
Brand K

1.25

16.9
Brand I

10.1

1.2
Growth Momentum (Brand, Category, Pop Growth)
Brand G

1.15
Brand M

28.1

Brand E
226.1

27.5

1.1
Brand H

Hispanics represent 13% of Bev As overall brand volume

Brand A
194.6
Brand B

1.05

40.9

90.7

1
Brand L

19.6

Brand J

Brand C

35.5

120.4
Brand F

0.95

Brand D

154.3

125.7

0.9 -0.5 0 0.5 1 1.5 Competitive Dominance Index (Brand vs. Category Leader/Closest Competitor) 2 2.5

Sample Target Segmentation Hierarchy

Potential incremental volume growth 89,424 58,978 20,440 18,701 28,079 13,029 30,037 14,130 12,886 2,846 4,941 1,889 19,106 8,822 23,328 21,785 63,295 Rank

Total Men Women Sp Dom Bilingual Eng Dom 21-24 25-29 30-34 35-39 40-49 50+ Northeast Southeast Midwest Southwest West

Define your sub-target profile based on volume growth opportunity as in this example
The primary source of volume would be region = West Gender is next most influential =Men Age is third most influential = 2124 Language is fourth most important = Bilinguals Greatest gain is among foreign born Transplants

#2

#4 #3

#1
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Cause-Related Marketing Program Strategy

73% more likely to purchase brand As a differentiating strategy, associated with a Cause the planning team took a novel approach building the Chivas Regal franchise by
defining a true Voice of what the brand believes in while shaping a Cause rooted in a genuine, strong and culturally relevant belief system.

Developed a flexible and scalable cause-related marketing (CRM) platform that would add
a unique spiritual dimension to PRUSAs Chivas Regal brand and an emotional reward to Latino drinkers.
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Ownable Insight for Cause

Assessing B-I-C CRM programs, independent studies of Latino community needs and overlaying OWNABLE consumer insights from in-situ observations, a significant white space was identified: Economic Progress through Workforce Development. Our resulting Cause was anchored in Chivas Regals brand DNA of success and aspiration and our uncovered ownable insight: Latinos want to be recognized for their strong values and the work ethic they apply in their constant pursuit of economic progress, rather than being victimized for immigrating, or their parents having immigrated, to the US.
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Ownable Insight for Cause

The CRM program was titled Espritu de Progreso Latino (EDPL), or Spirit of Latino Progress. Our EDPL Cause is built on the inspirational platform of workforce development, touching all Hispanics acculturation levels and countries of origin, by elevating and saluting Latinos cultural pride of strong work ethic and actions to continuously improve their skills, to reach their full potential and attain the American Dream.

Selection of Cause Community Partners

Based on the EDPL program objectives, Santiago ROI researched and recommended non-profit, community-based organizations (CBOs) as partners and beneficiaries of the program. The search centered on the NYC & LA metro area, which represented the largest and lowest hanging growth volume opportunity.

The chosen organizations have a long-standing reputation of helping Hispanics attain their American dreams of economic progress through employment training, education and career development, with a special focus on advancing entrepreneurs.
Non-profit partners included:
NALIP Latino Business Association Hispanic Federation Audubon Partnership for Economic Development ACCION USA
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Target and Objectives

Bicultural Entrepreneurs in their 30-40s were identified as a key tribe of influencing super-premium Scotch whiskey drinkers. Armed with powerful insights and a CRM program strategy in place, the planning team set the objective for years 1 through 3 as:
Establish Cause & Spread Message

Year 1

Year 2

Transform Cause into Transactions

Year 3

Expand Viral Engagement

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Creative Concept
An identity was developed for EDPL that incorporated the programs name, the co-branding sponsor (Chivas Regal 18) and the unifying figure of a youthful individual reaching for the stars. The identitys co-branded effect between Chivas Regal and EDPL reinforces their shared values of success and personal progress. While aspirational, the EDPL identity portrays an approachable and inspiring image to its US Hispanic audience striving for success.

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Creative Concept
The creative concept for EDPL in 2009 was anchored in four components: 1) the Brands new focus Chivas Regal 18 as its halo product (super premium Scotch Whisky at $60/bottle) and the Brands key attributes of success and personal progress 2) the Insight Latinos desire of recognition for their pride of strong work ethics and constant pursuit of progress 3) the Cause economic progress through workforce development grants to specific community-based organizations that train Hispanic entrepreneurs to succeed 4) and Consumer involvement sharing formulas or keys to Latino success so that others may advance more rapidly Hence the theme for the 2009 campaign: The 18 Golden Keys of Success
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Integrated Communications Plan

Ad campaign and editorial support across targeted Print, national Magazines, Radio and Online channels

Retail promotion in key Hispanic off-premise accounts displaying POS and Chivas Regal 18 ambassadors Tastings

Integrated communications plan encompassed Grassroots, Print, Retail Activation, Digital & Social Networking
Digital/Social Marketing including banner ads, contextual ads, E-Blasts, SEO and Social Media Networks, Consumer Generated Content Coordinated Viral Support from communitybased organizations through E-Blasts, Facebook, links to Microsite and sponsored events

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Digital & Social Communications Plan

WEBSITE & Facebook promoting the 18 Golden Keys of Success was directed to todays Hispanic entrepreneur & upwardly moving Bilingual-Bicultural Latinos. DIGITAL ADVERTISING with timely messaging, Pase lo que pase. [Whatever happens.], reflected the actual economic crisis of 2009 and the employment insecurity acutely felt in Hispanic communities. TESTIMONIALS as keys of success contributed by real Entrepreneurs helped by the participating CBOs to inspire success and stimulate economic progress.

ONLINE VOTING was by participants was encouraged to rank their favorite keys of success & share their own personal stories with others.

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Medium: Online Social Media Facebook Wall & Custom Voting App

Medium: Web
Dedicated micro-engagement Site

Traditional Communications Plan

POS

Print Retail Activation

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Scorecard Metrics
Association of National Advertisers Multicultural Excellence Awards
Only Hispanic Campaign Finalist of 2009 Outstanding Results Category

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Volume Growth Impact

Baseline Negative 12% YOY trend on Non-Campaign Accounts > +55% Lift Achieved by 2nd Year Accounts
EDPL Chivas Regal 18 Campaign Volume Impact Off-Premise Accounts Volume vs. Year Ago
50% 40% 30% 20% 10% 0% Control Group Orig Test Group
% Change FY10 v FY 09

Full Test Group

> +35% Lift on 1st Year Accounts

-10% -20%

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EDPL Social Media/Digital Metrics

78K Total Visitors in 2009

6K engaged as Facebook Fans and Voting for Favorite Keys of Success Apps Content Targeting generated two thirds of digital visitors at cost below $0.40 cents per visitor
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Perception of Cause & Program

84% very good-good rating of EDPL CRM

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Brand Equity Enhancement

67% improved opinion of the sponsored Chivas Regal 18

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Gracias!! Santiago ROI

Los Angeles, CA 91604 323-463-4648 carlos@SantiagoROI.com www.SantiagoROI.com

Available at: www.SantiagoROI.com/News