SCHWEPPES ANTIOX

Launch of a new product

Market: Italy

SCHWEPPES ANTIOX 2

REASON WHY

Schweppes Brand Strategy

• Tonic water captures an adult consumer and builds high

loyalty.

• Orange and lemonade broadens the consumer base.

• Product Development: Brand expand via launches of "straight drinking" flavours.

SCHWEPPES ANTIOX 3

REASON WHYBrand situation

Litres per capita

0

50

100

150

200

8 12 16 20 24 28 32 36 40 44 48 52age

Reg Cola

0

50

100

150

8 12 16 20 24 28 32 36 40 44 48 52age

Schweppes light

Schweppes

• Younger image

• Balances lifestyle

35-50

“Tradition & Leisure”

Customerretention

Source: Canadean

SCHWEPPES ANTIOX 4

REASON WHY

Brand opportunity:

• Mantains its attraction and acceptance: line extension.

Innovation meets a social trend:

• Every day people want to look, feel and even be younger.

• Cellular damage, pathway for aging

• Free radicals can damage important cellular components.

• Antioxidants can safely interact with free radicals.

• The principle micronutrient (vitamin) antioxidants are vitamin E, beta-carotene, and vitamin C.

SCHWEPPES ANTIOX 5

REASON WHYThe Opportunity

POPULATION ITALY

60.3 MM

14.4

MM

45.9

MM

Rest

35-50

24%

Schweppes Penetration

45%

55%concerned

healthy lifestyle/young image

20%

chooses

Schweppes light

15%

open to20%Other

categories

Water

Flavoured water

Functional drinks

Juices

RTD teaSources: Eurostat, TNS

SCHWEPPES ANTIOX 6

THE PRODUCTSchweppes Antiox

ANTIOX

Emotional

territory

Sophisticated

Attractive & Modern

packaging

“Straight

drinking”

SCHWEPPES ANTIOX 7

THE PRODUCTTarget

“I am always very busy. With a demanding job I only have time for a quick brunch. I like going out with friends

after work. And then a little reading trying to prepare something light and natural for dinner. I’d like to be

younger. I often wish I could STOP TIME. I only find

solace in the gym or at the spa. Oh, and when I have my Schweppes Antiox”.

Schweppes Antiox. Stop time.

(Positioning statement)

SCHWEPPES ANTIOX 8

THE PRODUCTTarget

“I am always very busy. With a demanding job I only have time for a quick brunch. I like going out with friends

after work. And then a little reading trying to prepare something light and natural for dinner. I’d like to be

younger. I often wish I could STOP TIME. I only find

solace in the gym or at the spa. Oh, and when I have my Schweppes Antiox”.

Schweppes Antiox. Stop time.

(Positioning statement)

• 35-50 years old.

• Mainly women and modern men.

• Busy people with plenty of social activity.• Body and mental wellness.

• Reserve mixers for when they go out.• What to choose as a “straight drink”.

• Feel guilty.

SCHWEPPES ANTIOX 9

THE PRODUCTRole in the portfolio

ANTIOX

Schweppes:- Complementary.

- Brand Rejuvenation.

Champomy (children)

Orangina (18-35)- Substitute when older.

- As healthy but +refreshing.

Oasis (joy & fun)

- Sophisticate

Energade (reenergizes, +volume)

- Vs aging, fast food.

60% additional volume.

30% cannibalism Schweppes

10% “ rest.

Premium price �

greater profit.

SCHWEPPES ANTIOX 10

THE BOTTLERPortfolio issues

fun care

adult

child

ANTIOXSCHWEPPES

CHAMPOMY

ORANGINA

OASIS

ENERGADE

SCHWEPPES ANTIOX 11

LAUNCH PLANWhere & What

Channels:

- Home: Ideal to drink at home at a relaxing moment.

Supermarkets and Groceries.

- On Premise: Ideal to drink with friends or colleague after work.

Coffee-shops, modern & fashionable bars.

- Niche: At those moments in which you are thinking about your wellness.

Gyms, SPA/wellness centers, healthfood stores.

Formats:

- 25cl bottle aluminum.

- 25cl can.

- Multi-pack 6 can.

- On-the-go plastic 33cl bottle (to be tested).

Flavours: Blackcurrant, Raspberry (both slightly carbonated).

SCHWEPPES ANTIOX 12

LAUNCH PLANHow

• Partners: Presentation to the sales team, sales material, motivation plan.

• Customers: Presentation to strategic customers, kit Antiox deluxe.

– VIP party held in a venue most relevant to the target’s social life.

• Consumer in the POS: – Sampling: selected gyms, healthfood stores and in the street (business areas).

– Activation of every channel (merchandising POS, coolers). Special plan for gyms.

– In supermarkets Antiox will be placed on shelves next to Schweppes Orange.

• Promotional activity (proposal to trade).

• Advertising Research:– Pretest: 4 focus groups (women social life, women work, women fitness, men).

– Postest: Quantitative research based on personal interviews.

• Production: high quality aspirational production overseen by a good producer.

• Media planning: – TV: Special attention to affinity (TV programs according to life style).

– Outdoor.

– Internet: special ad formats at specific sites for wellness, business women, trying to be viral (links to an internet serial, calls to a jogging event) and Google Adsense.

SCHWEPPES ANTIOX 13

FEB MAR APR MAY JUN JUL SEP-NOV

Presentation to partner

Presentation to customers

Launching (pipe line) Pipe line

POS activation

Promotional activity to customers

TV Pretest 1000 Postest 500 Postest

Internet and Outdoor

Sampling

Special plan Gyms/Spa/Wellness

Jogging event

Promotional activity to consumer

LAUNCH PLANWhen & How much

SCHWEPPES ANTIOX 14

LAUNCH PLANWhen & How much

Marketing Communication

Pretest 3.000

Postest 10.000

Production 200.000

ATL 2.800.000

TV 1.500.000

Internet 800.000

Outdoor 500.000

BTL 300.000

Sampling 250.000

Big boards 50.000

Materials 200.000

TOTAL 3.513.000

SCHWEPPES ANTIOX 15

P&L

litres cl units un cases

Total 8.000.000 100% 34.000.000 1.500.000

home 5.200.000 65% 0,25 20.800.000 24 866.667

on premise 2.000.000 25% 0,20 10.000.000 20 500.000

niche 800.000 10% 0,25 3.200.000 24 133.333

Income 17.220.000

Product cost -14.120.000 -82%

Sales&Marketing -1.356.500 -8%

Operating profit 1.743.500 10%

Sales&Structure -100.000 -1%

Financial -10.000 0%

Before Taxes 1.633.500 9%

Taxes -490.050 -3%

Bottom line 1.143.450 7%

BottlerIncome 14.120.000

Product cost -9.920.000 -70%

Marketing * -1.756.500 -12%

Operating profit 2.443.500 17%

Structure -300.000 -2%

Financial -100.000 -1%

Before Taxes 2.043.500 14%

Taxes -613.050 -4%

Bottom line 1.430.450 10%

* 50% charged to the bottler

Orangina Schweppes

Retail Bottler Orangina

price incomes margin price incomes margin price incomes margin costs

Total 1,08 36.640.000 112,8% 0,51 17.220.000 22,0% 0,42 14.120.000 42,3% 0,292 9.920.000

home 0,55 11.440.000 37,5% 0,40 8.320.000 5,3% 0,38 7.904.000 35,7% 0,28 5.824.000

on premise 1,80 18.000.000 176,9% 0,65 6.500.000 30,0% 0,50 5.000.000 56,3% 0,32 3.200.000

niche 2,25 7.200.000 200,0% 0,75 2.400.000 97,4% 0,38 1.216.000 35,7% 0,28 896.000

Prices & Costs

Sales Target

SCHWEPPES ANTIOX 16

THE BOTTLERSell the project

- Schweppes Antiox is aimed to a need we hadn’t satisfied. Its launch leads

to a higher share of throat and share of customer.

- Helps to develop a channel (Gym) and open new ones (Wellness centers,

healthfood shops).

- Emblematic product to access current non buyers (future opportunity to sell

tonic water and citrics).

- Strong brand support by advertising, refreshing global brand awareness.

- Makes Schweppes brand closer to today’s consumer aspiration and

balances market penetration among women vs men.

- More profitable premium price product (consumer willing to pay up to 1.5 times

the price of a regular drink) for customers and bottler.

- As it completes the brand portfolio it reduces logistics costs per case.

SCHWEPPES ANTIOX 17

THE BOTTLERProposal to trade

• Activation POS: materials (quantities adjusted by the bottler).

• Presentation to sales teams and customers.

• Launching the product to all channels at a time. Niche -> image.

Supermarkets -> awareness. On Premise -> trial.

• Samplings and parties in top-100 customers (chosen by the bottler).

• Competition among sales teams: win an anti-aging weekend treatment.

• Competitive pricing policy to customers during the launching (e.g. 50% off,

sell one flavour, give the other for free; never leave it for free).

• Promotions to consumer:

– Home: Buy 1 flavour, get other free. Limited edition bottles.

– All channels (under the cap/ring): Send a SMS and win a SPA session for 2

people (immediate prize).

SCHWEPPES ANTIOX 18

THE BOTTLERPortfolio issues

ANTIOX

Mineral & flavoured waters:- Home: direct competitor, +profit

- OP: direct competitor Alice, “

Fruit drinks-Battik Succoso: children.

- Tropico: still thirst-quenching (Oasis), not aimed to wellness care.

Tea (San Benedetto, Guizza)

- For families vs individual / selfish use.

Carbonated (San Benedetto, Guizza)

- Big format, no worry, party cheap drinks.

Camomile (baby drink)

Aperif Ben’s (bitter, ginger)

- Different consumption time. Complementary.

Bottler: San Benedetto

SCHWEPPES ANTIOX 19

THE BOTTLERPortfolio issues

fun care

adult

child

ANTIOXSCHWEPPES

CHAMPOMY

ORANGINA

OASIS

ENERGADE

M.WATER

F.WATER

BATTIK

TROPICO

TEA

CARBONATED

CAMOMILE

BEN’S

SCHWEPPES ANTIOX 20

How to measure

SUCCESS

- Brand awareness, preference and loyalty (TNS).

- Brand positioning: more modern keeping reliable (TNS).

- Advertising recordance (3CAT consumer tracking).

- Market share (Nielsen): total Schweppes brand among soft drinks and

Antiox.

- Numeric distribution and, above all, weighted distribution (Nielsen).

- On Premise: number of references bought at the Top-100

(transactional data).

- Home: rotation, out-of-stock, shelves linear centimeters.

SCHWEPPES ANTIOX 21

Support from the

GLOBAL MARKETING TEAM

• All the research before, during and after the launch.

• Get the brand name and packaging designed.

• Choose materials, get its decoration designed and negotiate with suppliers.

• Work with the agency to find the core message and create the campaigns.

• Negociate with media buyers.

• Plan every activity (sampling, parties).

• Prepare the presentation to the bottler.

• Coordinate activities with the bottler (customer selection, daily data of the

launching results).

• Measure success in person along with the bottler’s sales people.

SCHWEPPES ANTIOX 22

Support from the

PARTNER MARKETING DPT

• Select special customers.

• Choose quantities for every material.

• Negotiate the introduction of the new product and promotions with

big stores, special On Premise customers, big Gyms or reputable

SPA centers.

• Check the materials are properly set on premise / in stores.

• Local permissions for the samplings.

• Invite important customers and VIP to the launching party.

• Extract data about the launching (transactional, Nielsen, IRI).

Thank you for your attention

Alfonso Gadea

February 2011