1. The Proof The business case for newspaper advertising as part of the media mix

2. 2 National newspapers played a distinct and cost-effective role in NESCAFÉ’s successful multimedia campaign, demonstrating specific strengths in driving sales and building both purchase intent and emotional involvement brand metrics: Why newspapers for NESCAFÉ? Both the heaviest commercial TV viewers and frequent newspaper readers spend heavily on instant coffee – making the two media ideal and complementary partners for advertising. Frequent newspaper readers are the heaviest category buyers, spending £28.59 per household in 2009. Newspapers – the most cost-effective medium to drive brand measures Newspapers delivered the highest overall return on investment for NESCAFÉ, with TV second Newspapers were the most efficient medium for driving brand consideration Newspapers were twice as efficient as TV in creating emotional brand involvement TV and newspapers worked in complementary ways to build brand image. NESCAFÉ Headline results sales uplift Newspapers drive 2.6% sales increase Rising to 7.5% sales uplift among those exposed to 5 newspaper ads. Newspapers enhance TV ad performance The NESCAFÉ TV ad worked harder and was more engaging if seen alongside the newspaper campaign.

3. Expenditure on instant coffee £ per household 2009 TV viewers and national newspaper readers spend heavily on instant coffee Kantar Worldpanel 52 weeks to Dec 2009. Population 000s. All households 25200. Heaviest third TV viewers = 7208. Frequent newspaper readers = 7212. Frequent magazine readers = 6973. Heaviest third of TV is 29% of TV

4. Expenditure on NESCAFÉ £ per household 2009 Readers of mid-market and popular newspapers are the heaviest spenders on NESCAFÉ Kantar Worldpanel 52 weeks to Dec 2009. Population 000s. All households 25200. Heaviest third TV viewers = 7208. Frequent newspaper readers = 7212. Frequent magazine readers = 6973. Regular qualities =1623. Regular mids = 2136. Regular pops = 2692. Heaviest third of TV is 29% of TV

5. Expenditure on NESCAFÉ GOLD BLEND £ per household 2009 Mid-market & Quality newspaper readers spend most on NESCAFÉ GOLD BLEND ® Kantar Worldpanel 52 weeks to Dec 2009. Population 000s. All households 25200. Heaviest third TV viewers = 7208. Frequent newspaper readers = 7212. Frequent magazine readers = 6973. Regular qualities =1623. Regular mids = 2136. Regular pops = 2692. Heaviest third of TV is 29% of TV

6. Frequency distribution for NESCAFÉ TV campaign National newspapers A perfect partner to TV Source: BARB analysis of NESCAFÉ TV campaign – Adults Low weights of TV exposure are less effective The optimum OTS High weights of TV exposure suffer diminishing returns

7. NESCAFÉ TV campaign Analysis of heavy TV viewers by social grade % Heavy TV viewers more DE than brand profile Source: BARB analysis of NESCAFÉ TV campaign – Adults/TGI 2009 Q3 NESCAFÉ Instant Coffee Adult user profile AB C1 C2 DE

8. TV: Profile %4310152616 NPs: Profile %531228 23 Newspaper audience delivery indexed against commercial TV Newspapers’ audience profile complements TV with a profile that is relatively young, ABC1 and London Source : BARB Jul – Dec 2009 / NRS Jul – Dec 2009

9. To quantify the effects of individual communications channels in a multi-media campaign for the NESCAFÉ brand. To establish the efficiency of each medium in building brand measures – what is the return on investment? To measure the sales impact of adding newspapers to the mix. To understand the synergistic effect of TV and newspaper ads working together. Test Objectives

10. Aug 09Sep 09Oct 09Nov09Dec 09£m Media Target Audience: 18-65 hot beverage drinkers TV3.2 Newspapers0.9 Outdoor0.7 Online0.3 Research Dates Millward Brown CrossMedia™ Tracking 10 NESCAFÉ: Test detail Media Plan 1004 TVRs Pre Campaign objective Relaunch the NESCAFÉ brand 418 GRPs PrePost

11. NESCAFÉ: The creative work Newspaper creative

12. NESCAFÉ: The creative work Newspaper creative

13. NESCAFÉ: The creative work Outdoor creative TV newspaper creativeOnline creative

14. The findings 14 NESCAFÉ

15. Newspaper advertising effect on NESCAFÉ sales % increase Immediate 2.6% sales uplift from newspapers Source: dunnhumby

16. Newspaper advertising effect on NESCAFÉ sales at different OTS % increase Newspapers drive 7.5% sales increase at 5 OTS Source: dunnhumby

17. Newspaper advertising effect on NESCAFÉ trial % increase Newspaper campaign encourages trial Source: dunnhumby

18. Newspaper advertising effect on NESCAFÉ penetration % increase Newspapers drive penetration Source: dunnhumby

19. Tesco Clubcard lifestyle profile Newspaper buyers who bought NESCAFÉ indexed against average Tesco Clubcard user profile Newspaper readers less price sensitive Source: dunnhumby Convenience 100 Price sensitive

20. Contribution to overall uplift in NESCAFÉ brand measures versus cost of media % Both Newspapers and TV punch above their weight Source: Millward Brown CrossMedia™ modelling Total uplift in brand measures driven by media activity 5% uplift Online Outdoor Newspapers TV

21. Overall uplift across brand measures per £1m invested % Newspapers deliver the highest return on investment

22. Cost of 1% uplift across NESCAFÉ brand measures £m Newspapers most cost-efficient for building brand health

23. Uplift in brand involvement per £1m invested Someone I’d like % Newspapers twice as efficient as TV at creating emotional brand involvement

24. Uplift in brand commitment per £1m invested Likelihood to choose % Newspapers most cost-effective at driving consideration

25. Brand image uplift % endorsing NESCAFÉ TV & Newspapers strengthen brand image

26. Uplift in brand image per £1m invested % endorsing NESCAFÉ Multimedia campaign strengthens brand image

27. Recognition – Newspaper ads % recognising Strong creative impact leads to good recognition

28. Newspaper ads % agreeing Strong impact and branding ensures engagement NESCAFÉMillward Brown Norm

29. Norm: 61 NP ads Recognise NP (Each axis 0-80%) Newspaper involvement diagnostics Newspaper ads engage very strongly

30. Adding newspapers enhances TV performance Response to TV ads % agreeing 45 48 68 59 43 52 TV solusAdded effect of NPMillward Brown norm

31. Norm: 698 TV ads Recognise TV solus (Each axis 0-80%) Recognise TV + NP TV involvement diagnostics TV ad more engaging when seen alongside newspapers

32. Advertising measures – Re-appraisal Surprising and gets me to think differently Top 2 Box % Adding newspapers builds re-appraisal Recognise:

33. Advertising measures – Brand values Helps me connect and identify more strongly Top 2 Box % TV plus newspapers boosts emotional impact Recognise:

34. Advertising measures – Depth of information Gives me enough information to decide Top 2 Box % Depth of information builds across campaign Recognise:

35. Advertising measures – Call to action Gives me a reason to go out and buy Top 2 Box % TV + newspapers partnership drives powerful call to action Recognise: