FIZZ AND CHIPS SCORE BIG IN INDIA’S WORLD CUP WIN

By: Raj Hosahalli, Executive Director, Nielsen

The echo of India’s victory at cricket’s biggest prize, the World Cup a few months ago still resonates across the sub continent. For marketers, it was a tournament that can be compared to the Super Bowl in the US - as a must-do event. With the game’s immense popularity across Commonwealth nations, the Cricket World Cup (CWC) drew sponsors from a range of multinational and local companies, from the auto industry to the fast moving consumer goods industry. And for good reason: it is estimated that 1 billion people in 180 territories tuned in to the tournament on TV, online, via mobile phones or on the radio.

Nielsen recently did a comparative study across the key countries participating in the CWC using econometric modeling techniques to measure impact of advertising on sales in select impulse categories. As is seen most often, competitive pressures drive advertisers to invest in these types of events, but rarely do they know if this was well spent and benefited their brands. This research by Nielsen gives clear guidelines and helps set the right expectations for advertisers on the return on investments for such events in the future. In the analysis, which was conducted in South Africa, India (who were co-hosts of this year’s tournament), New Zealand, Australia and the U.K., Nielsen found that there was an average sales boost of 3.5 percent, with Indians being the most reactive.

Winning Categories

Amongst the categories studied, carbonated soft drinks and potato chips were the biggest gainers overall, although some categories were more popular than others based on location. India and New Zealand were the two markets with the most reaction to the CWC 2011: in India, there was an average uplift of 25 percent and in New Zealand, 12 percent, in the categories under consideration during the tournament. A large portion of these sales can be attributed to increased media investment and improved efficiency (ROI).

• Soft drinks: Thanks to a 66 percent increase in media spend during the CWC quarter compared to the same period a year prior, sales of sodas grew 10 percent in India, with media contributing 5 percent of total sales. In South Africa, sales rose 6 percent during the CWC.

• Potato chips and salty snacks: New Zealand saw the biggest growth in this category with sales up 11 percent; ROI increased by 8 percent. Indians also ate more crisps, with the category posting a 3 percent sales increase and an ROI rise of 3 points. Indians gobbled up other salty snacks, with the category posting a 38 percent sales increase and the ROI was up 4 points versus the previous year.

• Beer: Denizens down under quaffed more beer during the tournament. In New Zealand, sales rose 8 percent, driven by a 43 percent increase in media spend. Media contributed about 3 percent to sales during this period. Australians bought roughly 6 percent more beer, with ad spending rising 13 percent. In South Africa, media spending rose 65 percent while sales grew 2 percent.

• Chocolate: Sales grew most in New Zealand and India, 24 percent and 22 percent, respectively. In the former, much of this growth can be linked to a surge in ad spending, with some chocolate brands relating themselves to cricket. In India, media had less of an impact, contributing to just 1 percent to sales.

With such a huge audience, advertisers can not only reach millions of people around the world and boost brand awareness, but also drive real sales growth. Media proved twice as effective during the event compared to normal advertising. The brands that did the best were those that linked themselves to the game and the event. These lessons can help companies determine budgets and identify which categories might see the greatest sales uplift during future global sporting events such as the 2012 Olympics.

No doubt advertisers from around the world are waiting for 2012 Olympics as the Next Big Thing!

About Nielsen

Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and related properties. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA and Diemen, the Netherlands. For more information, please visit www.nielsen.com

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