Global Perspectives: Schweppes Mixes it Up

This is one of 31 case studies presented in the Path to Purchase Institute’s “Global Perspectives on Shopper Marketing,” which was published in conjunction with Coca-Cola, Unilever and Geometry Global. The book is available on Amazon.com.Campaign Name: “Perfect Partners”Companies: Coca-Cola GB; DiageoAgency: Saatchi & Saatchi XRegion: Great BritainProgram Type: Cross-Category SolutionWHY IT MATTERSCollaboration – from the corner office through the field – put the sparkle in Schweppes’ simple idea.BUSINESS LANDSCAPEPart of Coca-Cola GB’s portfolio, Schweppes was the leading mixer brand in the UK, but sales were sluggish and the category overall was not very dynamic.Coca-Cola had a relationship with Diageo for years, but past efforts to activate it never reached scale or sales goals. One-off promotions (like a new recipe) didn’t change behavior or deliver results. Was it worth continuing the relationship?OBJECTIVESStrategic investment in shopper marketing at grocery would help drive top-line sales and profitability for all the stakeholders. The business objectives were:Get current Schweppes users to make one incremental purchase during the year.Drive new-occasion consideration and measurable volume growth.Transform the way Coca-Cola uses cross-category partnerships.Coca-Cola and Diageo’s partnership was an under-used asset. Together, the companies could bring more method and leadership to retail by rethinking how best to activate their categories together – because the products are consumed together. UK bottler Coca-Cola Enterprises (CCE) was a key third partner because it handles Coca-Cola sales and has the relationships with retailers.INSIGHTSWhen they looked at the entire category (and across the aisles), Coca-Cola, CCE and Diageo recognized two simple truths.First, spirits are rarely consumed without being mixed, yet they were merchandised separately and managed by retailers as two separate categories with different buyers.Second, grocery was the crucial channel for both categories because mixers and spirits are pre-planned – almost always purchased as part of a big shop when people are planning to entertain. If those items weren’t on the shopping list, shoppers weren’t even walking down those aisles.Coca-Cola and Diageo wanted to get out of their traditional aisles. Special displays at end-aisle and store entrances would put product in the path of more shoppers.The opportunity: Create connections with adult occasions, a first for Coca-Cola and CCE. The challenge: Shoppers in Great Britain prefer wine and beer. Because spirits are comparatively expensive, consumers are reluctant to spend more and take the risk that their bartending skills will fall short.The solution: Activate Schweppes and Diageo together to create “the easy and affordable mixed drink,” and attach mixed drinks to relevant seasonal events in order to increase frequency of purchase among light and medium shoppers.STRATEGYCoca-Cola and Diageo retooled their partnership to promote easy and affordable mixed drinks, positioning Schweppes as the mixer of choice with Diageo spirits.Based on consumer preferences and historic sales data, lemonade provided the biggest opportunity.Coca-Cola redefined its target audience as adults over 40, then developed an awareness campaign and activation centered on serving lemonade-based mixed drinks during three seasonal occasions: summer, Christmas and Easter.EXECUTIONAs lead occasion for the campaign, Coca-Cola, Diageo and CCE chose summer, the second-biggest season for mixed drinks behind Christmas – but a distant second, with purchase and consumption at least 66% lower. Coca-Cola and Diageo wanted to promote the relevance of refreshing mixed drinks during the season, when adults have more social occasions with friends.Under this structure, Coca-Cola, Diageo and CCE crafted the “Perfect Partners” campaign under the headline “Together for a Better Summer.” Corrugated shippers offered a ready-made deal: £10 for Diageo spirits and Schweppes, with perfect pairings merchandised together: gin and tonic, ginger ale and vodka, and Pimm’s with lemonade.The displays – and the creative at all touchpoints, including print ads and out of home – showcased completed drinks to convey the ease of preparation. Visuals and copy reinforced the message of fun, persuading shoppers not to miss out on the right choice for social occasions.For media, the strategy was to reach consumers as close as possible to shopper mode. Out-of-home ads targeted commuters in the post-work moment when they’re thinking about a drink. Ads on the exit gates of London Underground stations reached the highest concentration of commuters heading home; print ads in the free Evening Standard (read by 70% of commuters) reached them as they contemplated shopping for the evening meal.Billboards were placed in proximity to supermarkets. Radio spots, slated for afternoon drive-time, were triggered by the weather: more ran during warm, pleasant evenings when people are more inclined to be social.In stores, the campaign used end-aisle, gondola-end and upfront pallet drops, with secondary merchandising via freestanding units at the end of traditional spirits and soft drink aisles.Coca-Cola, Diageo and CCE intentionally designed all creative to show a visible link between the brands: one look, one voice, and one shared solution.The team started talking with retailers 11 months out. Sell-in began by announcing the partnership: combined expertise from two category leaders to promote mixed drinks as a delicious alternative to beer, wine and cider for social occasions. CCE executed the campaign in-market on behalf of Coca-Cola; Diageo’s sales force executed for the spirits brands.Coca-Cola, Diageo and CCE worked hard to create a well-coordinated message for retail customers – one story, one vision, one objective. Joint sell-in efforts benefitted from aligned story decks and execution while individually leveraging key contacts. The partners communicated weekly about which retail customers had or hadn’t bought in, to let the other partner try an alternative path.SUCCESS MEASURESCoca-Cola, Diageo and CCE sold in the program to top retailers Sainsbury’s, Tesco, ASDA and Morrisons. The campaign is now in its fourth year, as retailer and shopper measures continue to improve:Continual increase in cross-basket spending and frequency of light shoppers.Incremental households (1.2 million) and shopping trips (1.98 million) in year one.Schweppes and Diago have demonstrated how shopper-centric solutions keep the party going.Key LessonMulti-company initiatives require alignment on deliverables and responsibilities from the outset to achieve maximum results for all players.

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