1. MAKING THE SALE BEFORE THE SALE

2. IN NOVEMEBER 2011 TVNZ worked with our Agency Partners, Retailers and Colmar Brunton to design a piece of research that would allow us to understand: – When purchase decisions occur – The role of brand and – How each media influences behaviour

3. THE RESEARCH APPROACH 123 : high involvement :mid involvement:low involvement Purchase behaviours and timelines. Influences on purchase and retailer decisions (incl. media). *Sample sourced from CBClique Panel Fieldwork conducted 24 Nov – 5 Dec 2011. 20 minute interview. C. 300 sample in each category. Total n=912 ONLINE SURVEY OF RECENT PURCHASERS : LAST 3 MONTHS : n=912

4. THE RESEARCH APPROACH CHOICE-BASED CONJOINT APPROACH Consumers were shown a number of different competitive pricing scenarios and are asked to make a preference or choice between the competing options / retailers. THE 3 PRODUCTS TESTED WERE; TV BBQKettle A Sony 40” TV with Freeview Priced between $850–$999 A Masport 6 Burner BBQ Priced between $539–$599 A Breville 1.7L Cordless Electric Kettle Priced between $120–$139

5. EXAMPLE OF CHOICE-BASED CONJOINT APPROACH

6. Insight One

7. PRE-DEMAND INFLUENCES Perceptions prior to and distinct from specific price messaging. ACTIVATION INFLUENCES Direct influence as a result of exposure to a price/advertising offer. Price/promo Specific price advertising Price perceptions Previous experience/ recommendations Staff/service Range Location Loyalty programmes REASON FOR STORE CHOICE CAN BE BROKEN INTO DISTINCT TYPES OF INFLUENCE

8. Main reasons for store choice TELEVISION OUTDOOR ITEM KETTLE/TOASTER PRE-DEMAND INFLUENCES ACTIVATION INFLUENCES MORE THAN HALF OF STORE DECISIONS ARE DRIVEN BY PRE DEMAND INFLUENCES

9. TV Purchase – main reason for store choice BRAND ABRAND BBRAND C PRE-DEMAND INFLUENCES ACTIVATION INFLUENCES Base: Bought TV from Retailer. Brand A (n=60); Brand B (n=61); Brand C (n=30) THE LEVEL OF PRE-DEMAND DIFFERS SIGNIFFICANTLY FROM RETAILER TO RETAILER

10. Insight Two

11. Base: Product Purchasers; TV (n=308) – Strong pre-demand is my first choice of store or one of several stores I would strongly consider shopping at. FOR THE TV CATEGORY PRE-DEMAND CLOSELY MIRROR STORE VISITATION PRE-DEMAND FOR STORES STORES VISITED & PURCHASED FROM CONVERSION

12. Insight Three

13. KNEW WHICH STORE TO BUY FROM BEFORE LEAVING HOME Base: product bought; TV (n=308), Outdoor (n=296), Kettle/toaster (n=308); BUYER AWARENESS IS HIGH – THEY KNOW WHO THEY ARE GOING TO BUY FROM WHEN THEY LEAVE THE HOUSE

14. DECIDED WHICH STORES TO VISIT Base: product bought; TV (n=308), Outdoor (n=296), Kettle/toaster (n=308); PRE DEMAND DRIVES DECISIONS. RETAILER DECISIONS ARE MADE UP TO A MONTH OUT FROM PURCHASE – MORE SO FOR HGH INVOLVEMENT PRODUCT

15. Insight Four

16. PRICE ELASTICITY – 40” TV Base: product bought; TV (n=308), CBC Modelling BRANDS WITH HIGHER PRE DEMAND ACHIEVES HIGHER PRICE POINTS

17. IN THINGS REMAINING EQUAL – THERE WAS 6% DIFFERENCE IN THE ‘ACCEPTABLE’ PRICE POINT BETWEEN BRAND A AND BRAND C PRICE ELASTICITY – 40” TV Base: product bought; TV (n=308), CBC Modelling

18. Insight 5

19. HYGIENE FACTOR – ALL MEDIUMS COMMUNICATION EFFECTIVELY ON PRICE Base: product purchasers; TV (n=308) – Kettles/Toasters tend to be more price driven and less involved so not used, noticed TV advertising (n=45); noticed newspaper advertising (n=78) Information noticedPrice/sale information by medium

20. EMOTIVE COMMUNICATION - TV IS THE MOST EFFECTIVE MEDIUM AT BUILDING PRE DEMAND Base: purchase TV (n=308); noticed TV advertising in lead up to purchase (n=45); noticed newspaper advertising in lead up to purchase (n=78) TV Ads noticed for: - Store benefits - Which store to visit - Which stores deliver an enjoyable experience - Which stores are for people like me - General Sales Press Ads noticed for: - Which store has the best price - General store info (hours, location) Both noticed for: - Sale of specific product - Stores offering lowest prices in general - Product info - Best range - Best staff / service - Stores I can trust - Stores that are experts / leaders EMOTIONAL FUNCTIONAL

21. EMOTIVE COMMUNICATION – TV IS THE BEST MEDIUM IN WHICH TO COMMUNICATE EMOTIONAL BENEFIT Base: product purchasers; TV (n=308) – Kettles/Toasters tend to be more price driven and less involved so not used, noticed TV advertising (n=45); noticed newspaper advertising (n=78)

22. EMOTIVE COMMUNICATION – TV IS THE BEST MEDIUM IN WHICH TO COMMUNICATE EMOTIONAL BENEFIT Base: product purchasers; TV (n=308) – Kettles/Toasters tend to be more price driven and less involved so not used, noticed TV advertising (n=45); noticed newspaper advertising (n=78)

23. Insight Six

24. PROGRAMME INTEGRATION HAS BEEN PROVEN TO SHOW STRONG LIFTS IN PRE- DEMAND MEASURES Colmar Brunton Post Analysis around Noel Leeming integration into Wheel of Fortune – September 2008