Marketing - October/November

OCTOBER/NOVEMBER 2013 AU$8.95 NZ$9.95

DAVID SCRIBNER VIRGIN MOBILE'S MARKETER IN CHARGE PROFILED: THE 125-YEAR-OLD AUSSIE BRAND WITH THE POLAR BEAR MASCOT AND 86% MARKET SHARE 4 CASE STUDIES MEDIA SPECIAL: WE NEED TO TALK ABOUT EMMA OUTDOOR OLD MEETS MOBILE NEW INFOGRAPHIC: MEDIA AND ENTERTAINMENT TRENDS AND SPENDS DEBATE: WHAT'S THE VALUE OF A CATCH-UP TV VIEWER?

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6 10 HE SAID / SHE SAID: The B2B Lab Edition 16 INFOGRAPHICS: Media use and ad spend trends

CASE STUDIES

Editor Peter Roper peter@marketingmag.com.au Editorial assistant Rebecca Hagan rebecca@marketingmag.com.au Sub editor Madeleine Swain

28 Visualising the perfect espresso

Art director Keely Atkins

30 There’s no place like home

Production manager Julia Garvey julia.garvey@niche.com.au

32 Building a master brand 34 An apple a day

OPINION 36 BRAND TALK 40 BLOG – MOST READ: The 10 commandments of marketing in challenging times 42 BLOG – MOST SHARED: The future of social selling 44 BLOG – EDITOR’S CHOICE: 10 things all marketers can learn from a search geek 46 BLOG – MOST COMMENTED: The key reasons CRM implementations fail

Digital pre-press Davin Lim Editorial illustration Stevie Rodger stevier.com Advertising enquiries Business development manager Linuccia Meinsma Tel: +613 9948 4987 advertising@marketingmag.com.au Subscription enquiries Tel: 1800 804 160 subscriptions@niche.com.au www.marketingmag.com.au Marketing is a publication of Niche Media Pty Ltd ABN 13 064 613 529.

142 Dorcas Street, South Melbourne, VIC 3205 Tel +613 9948 4900 / Fax +613 9948 4999

48 AN OPEN LETTER TO… media strategists: be not afraid of programmatic advertising 50 B2B TODAY: The year of the mobile has come and gone

CAREERS 53 THEIR CAREERS: All the career moves that mattered 54 A CAREER: David Scribner, company head, Virgin Mobile Australia

Chairman Nicholas Dower Managing director Paul Lidgerwood Commercial director Joanne Davies Content director Dave Bullard

64 THE DEBATE: Are catch-up TV viewers worth less?

66 THE WAY OUT

Financial controller Sonia Jurista Printing Southern Colour (VIC) Pty Ltd Tel: (03) 8796 7000 Accounting software SapphireOne www.sapphireone.com

Marketing ISSN 1441–7863 © 2012 Niche Media Pty Ltd. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, internet, or otherwise, without the prior written permission of the publishers. While every effort has been made to ensure the accuracy of the information in this publication, the publishers accept no responsibility or liability for any errors, omissions or resultant consequences including any loss or damage arising from reliance on information in this publication.

The views expressed in this publication are not necessarily endorsed by the editor, publisher or Niche Media Pty Ltd.

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MARKETING | OCTOBER/NOVEMBER 2013 | www.marketingmag.com.au

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BRAND PROFILE

THE RUM DIARIES There aren’t many Australian brands that have enjoyed a 125-year history, but this November marks the anniversary of Bundaberg Distilling Company first producing a liquid that, since 1888, has gone on to become an Aussie icon and, with overwhelming dominance of the local spirits market, it has plenty to celebrate.

MARKETING | AUGUST/SEPTEMBER 2013 | www.marketingmag.com.au

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his year marks the 125th anniversary of the Bundaberg Distilling Company, and the iconic Queensland brand, Bundaberg Rum, or ‘Bundy’, is looking pretty good for its age. It’s responsible for almost 85 percent of all rum sales in Australia; almost one million Bundaberg drinks are sold every single day.

It is without question the biggest stand-alone brand in beverage giant Diageo Australia’s range, and is referred to as ‘the prized jewel’ of the company’s portfolio.

The distillery at Bundaberg was established when a group of sugar millers met in 1885 to decide what to do with the waste molasses from the region’s abundant sugarcane farms. Difficult to transport, molasses is good for little else, so the decision was made to distil it into rum. With a capital of £5000, the original board of directors saw the first Bundaberg rum produced in 1888.

The distillery still occupies the original site, but the business side of things, and the numbers involved, have changed dramatically. Bundaberg Rum has been under Diageo’s stewardship since 2000. The British drinks giant currently controls 26 percent of the $507 million Australian spirits market and rum makes up a hefty 38 percent of that market, according to industry reports by IBISWorld, when bottled and ready-todrink variants are combined.

Andy Oughton, marketing manager, rum, leads marketing efforts for Diageo’s rum brands in Australia. That means, largely, Bundaberg. Oughton says that although the Bundaberg brand has taken various forms over the years, being distributed under various labels and marketing campaigns, the core values of the brand return to its founding fathers.

“It always comes back to that strong brand based on the ingenious creation of this handful of very clever sugar millers back in the day,” he tells Marketing.

Between 2009 and 2010, Diageo Australia expanded its Bundaberg range of dark rum, introducing the new premium brands Bundaberg Red, Bundaberg 101 and Bundaberg Reserve.

It’s responsible for almost 85 percent of all rum sales in Australia; almost one million Bundaberg drinks are sold every single day.

With Bundaberg Rum already the most successful Australian spirit on the market, both as an export and domestically, the new brands are expected to encourage a segment of drinkers to try spirits for the first time, and raise rum’s share of the spirit market even further.

The introduction of these new ‘highbrow’ products within the Bundaberg range raises the question: is Diageo trying to entice a more sophisticated drinker?

Although an extremely popular and vastly consumed brand, Bundaberg Rum isn’t known for being a particularly swanky drop. Stereotypical drinkers are labelled ‘yobbos’, and in 2005 media reports circulated of bar owners in Brisbane refusing to stock the brand due to the abuse suffered by staff at the hands of aggressive drinkers.

Oughton says Diageo takes its responsibilities regarding the sensible consumption of alcohol very seriously. “We want adults to enjoy our products in a responsible way,” he says. “The way that we do that is we have a strict marketing code that we market our products to a high standard and in a responsible manner and adhering to really strict guidelines that we govern everything through.”

The focus for Bundy now, says Oughton, is expanding its appeal to new audiences, with the new products under the Bundaberg name pushing the brand into a new and exciting space: “It’s a brand that requires constant evolution and constant innovation to be able to continue to progress it.

“It has a large loyal base of consumers that love it, and love it passionately. The big focus for us now is continuing to evolve the brand to bring new consumers into it as well,” Oughton says.

These new innovations are starting to receive international attention, with the distillers picking up a bronze medal at the San Francisco International Spirit Awards for the release of the Master Distillers’ Collection Double Barrel variant.

While rum has been flowing from Bundaberg since 1888, Oughton says that the distillery has been making some “phenomenal liquids” that haven’t been released previously. With investment in facilities, the brand can turn out more speciality products.

“We’ve been spending a lot of money on the site, up-scaling our production capabilities into small batch, super premium and deluxe rums that are starting to be recognised, not only by our fan base, but internationally as well.”

www.marketingmag.com.au | OCTOBER/NOVEMBER 2013 | MARKETING

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MEDIA Global consumption & ad spend forecast

Forecast of global consumer spend on content (and access to content) and advertising spend.

For consumers, content includes subscriptions and purchases of books, movies, music, newspapers, magazines, video games and internet access. For advertising, segments include all digital and traditional advertising media. Figures on this page are in US dollars.

GLO GLOBAL ENTERTAINMENT AND MEDIA MARKET WILL SEE GROWTH OF 5.6% ^

DIGITAL/NON-DIGITAL TIPPING POINT IS APPROACHING ^

CONSUMER SPEND SHIFTING FROM CONTENT TO ACCESS ^

80

$1.6 ttrillion

$2.2 trillion

47%

65%

70 60

47%

50

24%

2012

53%

30%

35%

40

41%

30

30% 29%

2017

20 10 0

2017

2012

Revenu of global market 2012-2017 Revenues Change: +5.6% CAGR Chang

Global total digital versus DIGITAL NON-DIGITAL non-digital spend by consumers and advertisers

GRO GROWTH OF DEV DEVELOPING MAR MARKETS DOUBLE GLO GLOBAL AVERAGE ^

5

10

15

Top 8’s share of global entertainment and media revenues

DIGITAL MEDIA USAGE INCREASES WITH EACH SUCCESSIVE GENERATION #

20

30

40

50

Total spend on entertainment and CONTENT media by consumers and advertisers ACCESS ADVERTISING (content and access)

2 S. KOREA

1

22%

0

10

THE WORLD'S BIGGEST B USERS OF DIGITAL DIGIT TAL MEDIA MED DIA #

INDONESIA 17% MIDDLE M EAST/NORTH AFRICA 16% INDIA 14% CHINA 12% BRAZIL 11% RUSSIA 10% MEXICO 10% 2017 17 ARGENTINA 10%

Top 8 fastest growing territories 2013-2017

by CAGR%

0

2017

2012

5

3 UK

AUSTRALIA

4

USA

JAPAN JAP PAN

20

12% % 2008

Consumers in four of the wor world's rld's largest med media dia economies average more than an 15 hours per week w using digital media in 2012

iGen (1995+)

30%

Millennials (1980 (1980-94) Gen X (1964-79)

20%

Boomers (1946-6 (1946-64) Greatt G G Gen (pre-1946).

Global digital media share of total media usage by generation

10% 2007

2008

MARKETING | OCTOBER/NOVEMBER 2013 | www.marketingmag.com.au

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2009

2010

2011

2012

2013

2014

2015

2016

2017

Infographic developed by Marketing (marketingmag.com.au) and Transmission (transmissiondesign.com.au). Sources this page: ^ PwC Global Entertainment and Media Outlook 2013-2017, www.pwc.com/outlook #PQ Media Global Consumer Usage of Digital Media Forecast 2013-17.

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CASE STUDY

Visualising the perfect espresso CLIENT: BREVILLE AUSTRALIA CAMPAIGN: THE NAKED ESPRESSO AGENCY: REBORN BACKGROUND Breville’s newly launched BES900 espresso machine is the only domestic dual boiler on the market giving everyday consumers the ability to achieve café grade results, in the comfort of their own homes and without a commercial price tag attached. Designed with Breville’s core design ethos ‘Simple moments of brilliance’ in mind, the dual boiler espresso machine had to be seen to be believed.

OBJECTIVES Our primary objective was to challenge consumer perceptions of the brand

in general and strategically position Breville and its dual boiler espresso machine in the highly competitive premium espresso market. To do this successfully, our aim was to showcase its technical brilliance with a focus on demonstrating the espresso machine’s precision and consistency when brewing an espresso.

STRATEGY To drive awareness about Breville’s BES900 espresso machine with a focus to grow its credentials as a brand that takes innovation and espresso extremely seriously, we started the process by analysing the premium espresso market in detail and understanding what drove them towards brand loyalty.

We conducted an extensive research piece that told us that the premium espresso consumer is complex and opinionated. Our research revealed these increasingly vocal enthusiasts, influential trendsetters and consumers were constantly seeking advice, making comparisons and discussing the intricacies of the different espresso machine specifications.

To engage with the espresso community and showcase the BES900 points of difference, we developed our approach to truly showcase the machine’s brilliance via a personalised experience that would ignite conversation with espresso enthusiasts.

Espresso for the ‘espresso snob’ is more than a cup of coffee, it is an art form and we needed to showcase this state of mind in the same light.

MARKETING | OCTOBER/NOVEMBER 2013 | www.marketingmag.com.au

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CAREER PROFILE

THE

STARTING QUARTERBACK David ‘Scribbles’ Scribner, now in the enviable position of being a marketer in charge of the company, reflects on the career path that got him here and the wisdom learned along the way.

MARKETING | OCTOBER/NOVEMBER 2013 | www.marketingmag.com.au

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