Hecto GrowLaunch Evaluation

Case Study

Hecto Grow, a growing up milk (GUM) product, was launched into the Joka market in April Y3.

As the brand’s manager, you are required to assess Hecto Grow’s performance, chalk out plans and initiatives, and set objectives and targets for the brand for the next financial year.

The questions to address include: ­ How effective was the brand’s launch and what is its market

potential? ­ What needs to be done to further grow the brand and

enhance its equity?

Background: Growth Opportunities for Hecto Grow

White Malt Drinks Market

Y0 Y1 Y2 Y3

16.6

14.3

12.1

10.1

Million Cups

Growing Up Milks – some basic market measures

Year 3

Retail sales estimate 4,150,000 Kg/yearPenetration 25 % for yearVolume per household 11,067 gm/yearPurchase vol per trip 1,150 gmTrips per houshold 9.6 per yearAverage purchase cycle 1.2 months

Launch of Hecto Grow Launch Evaluation

81

1

2

114

TV Press Magazine Radio Cinema Bus/Taxi Hoarding

Advertising Spend – Growing Up Milk

Media (%)

TV Spend (%)

Hecto Grow 28 33Gain 28 30Dumex 19 17Neslac 12 5Nespray 5 4Grow 3 4Pediasure 2 3Promise 2 2Mead Johnson 1 2

Year 3 Media Spend: $ 17.3M(All Growing Up Milks)

Advertising Awareness

%

Hecto Grow

Gain

Dumex

Neslac

Nespray

Grow

Pediasure

Promise

58

56

44

30

26

20

19

16

30

27

34

14

9

7

4

8

16

18

17

10

3

4

1

4

TOMSpontaneousTotal

Share of Voice(% $ spent)

Y3 (full year)

28%

28%

19%

12%

5%

End Year 3 (Dec Y3)

See explanation of Share of Voice in notes below

Brand Awareness

Gain

Dumex

Neslac

Grow

Nespray

Hecto Grow

Pediasure

Promise

99

98

97

97

97

96

94

93

60

35

26

25

18

35

34

10

18

10

8

8

5

10

7

2

T-O-M

Spontaneous Awareness

Total Awareness

% End Year 3 (Dec Y3)

Value Share

Jan Y2

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Y2

Jan Y3

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Y3

18.5

17.1

18.4 18.5

17.5 17.516.8 16.7 16.7 16.5 16.6

17

15.7 15.4

16.3 16.5

15.3

14

15.1

16.3 16.215.7 15.9

16.6

11.911.5

12.3

13.412.9

14.1

11.8 11.8

10.8 10.9 10.810.1

11.3 11.5 11.7 11.510.7 10.9 10.8

9.6

10.7 11 10.9

8.9

7.88.5

7.56.9 6.6

7.46.9

7.5

9 8.8 8.59.2 9.4 9.3

8.18.8

9.69

8.6

9.79.1

8.4 8.2

1.6

5.9

7.4 7.5 7.87.1

6.3 6.3 6.1

Dumex Gain Neslac Hecto Grow

Hecto Grow Packs – Sales in Kg in Supermarkets and HypermarketsW

14

W15

W16

W17

W18

W19

W20

W21

W22

W23

W24

W25

W26

W27

W28

W29

W30

W31

W32

W33

W34

W35

W36

W37

W38

W39

W40

W41

W42

W43

W44

W45

W46

W47

0

1,000

2,000

3,000

4,000

Hecto Grow 200gm Hecto Grow 400gm Hecto Grow 750gm

Week 32Deep price off at leading

Supermarket

Wk41 Y3: Hecto Grow GUM 400gm + Hectomalt 400gmC.Storage: FP: $9.50

Weeks 14 to 47 of Year 3

Supermarket / Hypermarket - Sales (kg)

Hecto Grow: Source of Growth in volume

HectoGrow

Gain

Gain-loss analysis (% volume)Jan -Jun Y3 vs Jul-Dec Y3

Neslac

Nespray

Pediasure

Grow

18.5%

6.9%

5.4%

6.5%

2.7%

Dumex48.4%

All Others

11.6%

Gains (Interaction) index of Hecto Grow with Neslac, Dumex and Gain

Neslac

Gain

Dumex

6.5

18.5

48.4

Hecto Grow: % Switching Gain (volume) GainIndex

198

245

41

Jan -Jun Y3 vs Jul-Dec Y3.

Hecto Grow: Ever Tried (based on Households buying Growing Up Milks)

Apr Y3 May Jun Jul Aug Sep Oct Nov Dec Y3

1.2

5.2

8.1

9.8

13.213.7

14.515.5

16.3

0.7

2.3

4.5

6.8

8.9

10.5

11.512.1

12.613.1

13.614.4

15

Trial %

Trial (%): Cumulative Penetration as % of Category Buyers

May Y3 Jun Jul Aug Sep Oct Nov Dec Y3

31.2

3537.8 37.3 36.2

34.7 34.8 35.3

% of triallists making repeat purchases

Repeat Buyers: % trialists who repeat buy

Hecto Grow% conversion from trial to repeat purchase

Repeat Buying Rate (RBR) for Hecto Grow

Repeat Buying Rate for Hecto Grow (GUM%)

1 2 3 4 5 6 7 8

44.4

40.1

33.0 34.332.7 32.6 33.2

31.5

Buying Index = 105%

period after initial trial

Refer notes pane for explanation

25

13

10

8

6

4

-

-

21

71

What consumers dislike about Hecto Grow

40

23

14

12

10

4

1

1

25

49

Product (any)

Child does not like taste

Limited choice of flavours

Child not like sweetness level

Child prefers regular brand

Does not dissolve easily

Expensive / Regular brand is cheaper

Nothing

Not as nourishing as regular brand

Too malty

Total Lapsed Buyers Repeat Buyers

60

37

20

17

14

3

3

3

31

20

What (if anything) do you dislike about Hecto Grow? (open-ended question)

Refer notes pane for explanation

Hecto Grow and Hectomalt

To what extent does it help grow Hecto heritage and brand equity

Perceptions of Hecto’s range of drinks, after launch of Hecto Grow

3 3 3 3 3 3

27 22

38

25

49

29

5656

45

58

43

28

12 17 12 115

35

1 1 2 1 1 5

“prefer Hecto drinks more now”

Strongly Agree

%

Base : All who are aware of Hecto Grow

Strongly Disagree

“meets child’s nourishment needs better”

“healthiernow”

“better health throughout

life”

“confused by what Hecto stands for”

“better suited for growing children”

Agree

Neither agree,nor disagree

Disagree

Refer notes pane for explanation

Brand Equity IndicesHealth Food Drinks and Growing Up Milks

NA

Health Food Drinks

Growing Up Milks

Gain Dumex Neslac Nespray Grow Hecto Grow Pediasure Promise

1.51.6

0.8 0.8

0.40.6

0.5

1.6

1.31.1

0.80.7

0.60.5

0.4

Y2 Y3

Milo Hectomalt

3.8

2

4.3

1.5

4.5

1.5

Y1 Y2

Y3

Top of mind awareness – for Hectomalt in Health Food Drinks over the years

Y(-3) (Y-2) Y(-1) Y0 Y1 Y2 Y3

1110

98

7 7

8.5

Hectomalt: Top of Mind Awareness in Health Food Drinks

Y(-3): 3 years before Y0

Hecto Grow and Hectomalt Drinkers – Usage Overlap Analysis

63 2215Duplicators

Hectomalt 78%

Hecto Grow 37%

Hecto GrowYear 3Duplication Analysis

Base: All households consuming Hectomalt/Hecto Grow Hectomalt & Hecto Grow = 100%

100

120

55

40

182

180

153

10

0

100

102

94

105

93

78

95

103

105

Total

Chinese

S$4,000 & below

Hecto Grow *

Race

H/H Income

Mixed Family

Older Family

Demographics (Index)

Hectomalt and Hecto Grow Malt Drinkers Demographic profile

Hectomalt

S$4,001 & above

Adult Households

Young Family

Life Stage

* small base

Other

Year 3 (full year analysis)

Young family – Families with children aged below 10 yearsMixed family – Some children aged below 10, some above 10Older family – Families with children aged above 10 years

Growing Up Milk Brands bought by Hectomalt Drink buyers

Others

Neslac

Gain

Dumex

Hecto Grow

50.5

9.9

21.0

62.2

45.9

Cross-Purchase analysis: Jul-Dec Y3

What brands of Growing Up Milks do Hectomalt buyers purchase?

% buying

Base: Hectomalt buyers in homes with one or more child aged below 10 years

26.9

5.2

11

32.5

24.4

% share

Evaluation of Hecto Grow’s launch

Plans and Initiatives to strengthen Hecto Grow

Objectives and Targets for Y4