Johnson & Johnson Regional market review April 2011
Mar 31, 2015
Johnson & Johnson
Regional market reviewApril 2011
Regional markets continue to offer above average growth and ROI opportunities to J&J
• Affluent consumers that share the values and attitudes relevant to J&J
• Growth opportunities exist in regional for most J&J brands
• Case studies prove double rate of return from RTV investment
• FTA TV IS more dominant in regional and has grown its audience by 20% YOY
RTM EYEBALLS 60 sec video
Regional TV covers all areas outside capital
cities and reaches 36% of
populationQLD
NNSW
SNSW
TAS
VIC
REG. WA
DIARY
Regional TV coverage
includes large cities and fast
growing coastal suburbs
Newcastle & Central Coast
Gold Coast
Wollongong & Illawarra
Canberra
Diary markets: A diverse mix of urban and rural
Regional WA
Port Pirie/ Broken
Hill
Satellite
Griffith
Mildura
Darwin
Loxton/Mt Gambier
Populations of major regional TV markets are comparable with the metros
SydneyMelbourne
Reg NSWBrisbane
PerthReg QLDAdelaideReg VIC
DiaryWATAS
0m 1m 2m 3m 4m 5m
4,6354,528
3,4892,982
1,8561,764
1,4081,171
969585
510
People
Source: ATR & OZTAM 2011, Nielsen Media Research 2010
NNSW 2,079
SNSW 1,410
Population Increase: 2001 vs. 2011
Source: ATR & OZTAM 2011
Australian population moving North and to the coast. Over 30% growth in 10 years in some regional areas
MARYB
MACKA
YBRIS
NOR RIV
CAIRNS
TOW
NS
PERTH
ROCK
TOOW
CANB
GIPPS M
EL
TAM/T
AR
ALBURY
WOLL
BALLSY
DADEL
NEWC
HOBART
BEND
LAUNCE
SHEP
P
O/D/W
0%5%
10%15%20%25%30%35%40%45%
National average
QLD NSW VIC TAS METRO
Urbanisation and high population growth changing the profile of regional Australia
• Lower cost of living and lifestyle are main attractions
• Rural populations moving to regional hub towns
• Less than 4% of households depend on farming
Seachange…
… for baby boomers
…for families
“Typical” Seachanger
Ryan, 36. Wollongong NSW
Made the seachange from the “Shire” to the “Gong”. Owns a small business in building trade
Above average income & primary focus is kids and lifestyle.
Loves footy , cars and teaching kids surfing.
Source: Roy Morgan Single Source (12mths to Dec 2010)
% of people 25-54 Metro Regional
Employed Full Time 56% 53%
Employed Part Time 23% 22%
Household Income $80K+ 41% 42%
More than one income in household 64% 58%
Children in household 50% 52%
Own or Paying Off Home 59% 61%
Regional consumers have similar
demographic profile to metro
Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-100%
5%
10%
15%
20%
25%Metro Regional
People 18-54 with HHI $130k+ or Investments $500K+
Doubling in number of wealthy people living in regional Australia in past five years
Source: Roy Morgan Single Source (12mths to Sep 2010, 2009, 2008, 2007, 2006, 2005 )
Why has regional spending been more stable and the
outlook more positive?
• Lower cost of living – less debt• Huge investment in infrastructure • Population growth driving
development of local economies• Resources growth impacting
many parts of regional: NSW, QLD, WA, SA.
Culturally Australia is a divided nation: Regional is representative of the majority
ExperientialInternationalLibertarian
ExperientialInternationalLibertarian
PracticalCommunitarian
Self Reliant
PracticalCommunitarian
Self Reliant
Upwardly MobileMaterialist
Family Focused
Upwardly MobileMaterialist
Family Focused
PragmaticFunctionalPatriotic
PragmaticFunctionalPatriotic
YouthfulTechnological
Energetic
YouthfulTechnological
Energetic
ConservativeInstitutional
Self-Controlled
ConservativeInstitutional
Self-Controlled
InnerMetro23%
Outer Metro41%
Regional36%
www.regionaltvmarketing.com.au
According to David Chalke social
researcher….
Regional women start their family life younger and have more children
Women18-29 Metro Regional
Employed full/part time 64% 63%
Married/De facto 36% 43%
HHI $80k + 25% 29%
Children in the household 33% 45%
Have kids age 0-2 yrs 17% 29%
Have 2+ kids 14% 22%
Source: Roy Morgan Single Source (12mths to Dec 2010)
RTM case studies are an opportunity for OMD to demonstrate effective media strategy and improve client ROI
• Women’s Health (June 2009- May 2010)
• Listerine (Jan-Dec 2009)
• Skin Care (Sept 2007 – July 2008)
Examples
…RTM is open to discussing any regionally based research project
0%
2%
4%
6%
8%
10%
12%
$0.0m$0.2m$0.4m$0.6m$0.8m$1.0m$1.2m$1.4m$1.6m$1.8m$2.0m
Metro TV Regional TV Metro
Metro
Regional
Listerine Smart Rinse for Kids main driver of growth – Regional TV response higher
4 W/E Period
Listerine Smart Rinse for Kids share of total sales vs. TV Spend
Source: Scan Data (4 W/E 6/1/08 to 28/12/08) Coles /Woolworths/Bi Lo (Excludes NT)
40%of national Listerine sales
growth came from regional markets
Listerine sales additional sales post March 2008
Sales growth
Metro $4.4m
Regional $2.9m
RO 3Ix
Source: Aztec/Nielsen, Retail World , Adquest Jan - Dec 2008
Total Listerine ROI
Sales growth
TV $ ROI
Metro $4.4m $4.9m $0.89
Regional $2.9m $1.1m $2.63
Return from regional TV was positive by year end and 3 times rate of MTV
0%
10%
20%
30%
40%
50%
60%
70%
$0.0m$0.2m$0.4m$0.6m$0.8m$1.0m$1.2m$1.4m$1.6m$1.8m$2.0m
Metro TV Reg TV Metro Regional
Jan 2009 – May 2010Total TV: $968 kReg share: 20%
Share
TV
spend
Carefree liners share of Liners
Carefree Liners 2010: FTA TV had clear impact – regional response was as strong as metro
Carefree Liners 2010: FTA TV had clear impact – regional response was as strong as metro
NB: No data between Oct-Dec ‘09
Source: Scan Data (4W/E 25/1/09 – 30/5/10) Coles/ Woolworths/Bi Lo (EXCLUDES NT & TAS) NB: Tampons Excludes Coles data,
AdQuest Millennium Jan-May 2010
2010 Jan - MayTotal TV: $973kReg share: 21%
Carefree share of liners grew in every regional market YOY by 4% on average
SYD MEL BRI ADE PER NNSW SNSW VIC QLD TAS WA/SA
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
Carefree share point gain of liners YOYSource: Scan Data (4W/E 7/2/10 - 30/5/10) compared with (4 W/E 25/1/09 - 17/5/09)
Coles/ Woolworths/Bi Lo (EXCLUDES NT & TAS)
RO 1.5IxRate of return on investment from regional TV was 1.5 times rate of MTV
Source: Scan Data (4W/E 7/2/10 - 30/5/10) Coles/ Woolworths/Bi Lo (EXCLUDES NT & TAS), AdQuest Millennium Jan-May 2010
Jan- May 2011
Carefree liners sales
TV $ Jan – May 10
ROI
Metro $4.02m $771k $5.21
Regional $1.55m $197k $7.87
Reg. TV CPM is 45% below metro TV average and delivers double the cost efficiency and ROI
SYD MEL BRI ADE PER NNSWSNSW VIC QLD TAS40
60
80
100
120
140
160
180164
104
98
7989
71 70
5361
70
Ind
ex
TV market CPM indicesNational average CPM P18+ = 100
Source: Regional TV Agency Survey 2010
SYD19%
MEL19%
BRI12%
ADE6%
PER8%
Reg36%
SYD34%
MEL21%
BRI12%
ADE5%
PER7%
Reg23%
Share of national population
Share of national TV budget
Higher cost efficiency of regional TV means more can be invested to refine and target communications
Regional share of J&J TV budget has grown and is at upper range of competitive set – but not at full capacity
Aveeno
Benadryl
Codral
J&J Baby
Carefree
Compeed
Reach
Stayfree
Listerine
Neutrogena
Nicorette
Sudafed
Grand Total
19%
18%
17%
17%
13%
20%
13%
20%
18%
17%
20%
21%
18%
MTV% RTV%Total TV $
$2.8m
$858k
$1.9m
$1.5m
$1.5m
$1.6m
$1.2m
$1.5m
$3.8m
$4.2m
$1.5m
$991k
$23.3m
Source: AdQuest MillenniumJanuary – December 2010
Regional consumers more likely to watch FTA TV but otherwise have same media habits as metro
Women aged 18-39 Metro Reg
Watch 2hrs+ TV per day 49% 60%Listened to any commercial radio
weekday 65% 66%
Accessed the internet 85% 86%
Watch daytime TV 71% 74%
Own digital TV at home 85% 90%
Whether subscribe to Pay TV* 24% 23%
Source: Roy Morgan Single Source 12 months to Dec 2010, *AGB NMR Panorama 12 mths to Dec 2010
13/06/2010
27/06/2010
11/07/2010
25/07/2010
8/08/2010
22/08/2010
5/09/2010
19/09/2010
3/10/2010
17/10/2010
31/10/2010
14/11/2010
28/11/2010
12/12/2010
26/12/2010
9/01/2011
23/01/2011
6/02/2011
20/02/2011
6/03/2011
20/03/20110%
5%
10%
15%
20%
25%
Metro Regional
Launch week of 7mate &
Gem
Launch week of Eleven
Audience share of the new commercial “digital” channels has more than tripled since June 2010
Source: Mediaweek, Metro data from OzTAM and Regional data from Regoional TAM. All People 18:00 - 23:59
June 2010 Sept 2010 Dec 2010 March 2011
• Subscription TV audiences are down in all key dayparts for the Survey Year to Date• FTA viewing is up & commercial TV even more
Source: Regional TAM; Survey 1-2, 2011 vs. 2010; Consolidated Data
New commercial channels driving Free to air TV audiences up in 2011
Audience Year on Year % Change; Combined Agg Markets (QLD, NNSW, SNSW, VIC & TAS)
Total People; Sun-Sat; Survey 1-2, 2011 vs. 2010
• News & current affairs• Local TV ads• Promotions • Community sponsorships
Regional TV is part of the community… “We live here
too”
…means greater engagement
www.regionaltvmarketing.com.au
Local content reel…
Regional markets will continue to offer J&J higher growth and ROI from proportional share of TV spend
• Affluent consumers• Responsive to TV• Interested in brands and new ideas• Most cost efficient mass medium
available to Johnson & Johnson