RADIO & BEVERAGE (ALCOHOL) EFFECTIVE SECTOR COMMUNICATION

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1 RADIO & BEVERAGE (ALCOHOL) EFFECTIVE SECTOR COMMUNICATION

2 In the wine market, the competition between New Zealand and Australian brands has became intense. Research suggests that the selection process of a typical wine consumer is largely determined by three criteria: brand image, price segment and wine style. The beer market is also highly competitive and fragmented. There has been a rapid rise in new products and innovation with mega brands, seasonal beers, and brand extensions. As a result, consumers have become more discerning and knowledgeable and are increasingly likely to switch between brands. There are a huge number of alcoholic drinks brands clamouring for the attention of consumers, in many cases with very little to differentiate them apart from packaging. In a relatively static market, where share gain is vital to brand growth, a clear brand identity and finding ways to stand out from the crowd are crucial components to success SO HOW CAN RADIO HELP? RADIO INCREASES SHARE OF VOICE & MIND Historically, alcohol beverage brands have heavily relied on visual media, a tendency which has contributed to a high degree of competitive clutter. The level of competitive activity on radio is significantly lower and as this graph demonstrates, a reasonable budget secures a far higher share of voice on radio than on other media. In addition, beverage advertising tends to skew seasonally to summer months, when people are more likely to be out of home and not watching TV. Share of voice that $500K buys among Beverage Brands 7% 1% 3% TV Radio Press* *Press includes Newspapers&Magazines combined/source: RADIOS T1-2011

3 RADIO COMPLETES THE MEDIAMIX Today s consumers are increasingly switching between media. By relying on one or two visual media, alcohol beverage brands could be missing out on a significant part of their target market.. RADIO 32% MAGAZINES 3% NEWSPAPER 6% DVD/VIDEO 6% INTERNET 4% TV 49% Consumer Daily Media Consumption RADIO IS TARGETED AND CAN DELIVER HIGH REACH Radio stations target specific age groups and lifestyles, enabling advertisers to engage with audiences that match their target markets both demographically and psychographically. Alcohol brands tend to be associated with very specific psychographic groups; using radio brands that are designed to appeal to your target market will significantly reduce wastage and improve the effectiveness of your campaign week 4 weeks Commercial radio Reach for 1wk vs 4wks Source: T RADIO OFFERS LOW ADVERTISING AVOIDANCE The two media with the lowest avoidance scores are cinema and radio. This makes it easier for alcohol beverage brands to ensure that their message is received at the consumer level, especially if talking to out-of-market consumers. % Who are ad avoiders by medium 68% 61% 52% 44% 16% 8% TV N'paper M'gazine Direct mail Cinema Radio Source: Initiative Media 2011

4 RADIO REACHES PEOPLE IN SHOPPING MODE HIGH COVERAGE ON IMPORTANT SHOPPING DAYS / BUILD UP TO WEEKEND As a real-time medium, radio is effective at communicating with audiences on fixed days and at fixed times. This is particularly beneficial for retail brands that wish to communicate with consumers at times when they are more likely to be planning or involved in a shopping trip. Over 50% of major grocery shopping trips still take place Thursday to Saturday. Commercial radio allows alcohol beverage brands the chance to speak to high numbers of customers on these important shopping days as well as influencing purchasing habits over the weekend. RADIO BRAND VALUE HELP BUILD AFFINITY WITH CONSUMERS Unique amongst broadcast media, radio can help alcohol beverage brands connect to consumers. This is because listeners spend many hours each week loyally listening to a small number of stations. The result is that there is a warm personal relationship between station and listener. The media effect of this is to convey the feeling that Alcohol beverage brands advertised on radio are for people like me. Radio delivers high coverage on key shopping days Thur-Sat Fri-Sat Sat All 10+ HHS Source: Radio T1-2011

5 If you are interested in talking to TRB confidentially about how you can extend the effect of your media campaign or best practice for alcohol brands then contact your nearest TRB office: Auckland Wellington Christchurch For more Radio inspiration, resources, tips and research: Visit trb.co.nz

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