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

2 Schweppes ran newspaper ads throughout 2009 supporting both the master brand and individual products. dunnhumby analysis of Tesco Clubcard data showed that the campaign created both a short-term and long-term sales effect. Why newspapers for Schweppes? 2009 sales data demonstrates that frequent national newspaper readers spend 44% more on Schweppes than heavy TV viewers. Quality newspaper readers account for 21% of all Schweppes Tonic sales. Newspapers drive an immediate sales increase The first phase of advertising (which ran March-June 2009) drove an immediate 11.5% increase in Schweppes sales. Over the entire campaign (March – mid-October) newspaper ads boosted sales by 9.5%, and a further 5.8% post-campaign. Newspapers motivate trial and increase penetration Trial was boosted by 18% by the cartoon campaign and penetration rose 12%. Schweppes Headline results †Estimates are based on the purchasing behaviour of people buying a newspaper from Tesco with the Schweppes advertising, compared to a control group (matched purchasing behaviour) who did not buy a newspaper in Tesco, although they may have bought one elsewhere. Sample size: 291,157. Sales uplift Source: dunnhumby† 11.5%

3 Schweppes Test Hypothesis: Newspapers build brands and sales Newspapers are the perfect environment for Schweppes ads, as they provide a large, highly engaged and responsive audience who spend heavily on the brand Newspapers create a strong emotional response among readers, which helps build brands and influence buying decisions Relevant editorial heightens audience engagement and interest Newspapers’ immediacy drives sales response

4 Schweppes Test detail Media Plan Mar 09 Apr 09 May 09 June 09 July 09 Aug 09 Sep 09 Oct 09 £m Media Target Audience: Adults 25+ National Newspapers Research Dates Millward Brown Pre-wave Post wave Continuous from Dec 08 to Dec 09 Panel Sample: 1106 adults 25+ regular readers of Guardian,/Observer,Times/Sunday Times, Telegraph/Sunday Telegraph pre-campaign, 1231 post campaign Media Source: NMR/NRS Cartoon campaign 168 GRPs Campaign objective To create an ongoing dialogue with consumers and bring to life Schweppes' point of view on why experience matters in today's society...with the ultimate aim of attracting new buyers Lemonade/Tennis 52 GRPs Abbey Well 132 GRPs

5 Schweppes The Creative Work Newspaper ‘Cartoon’ creative Schweppes Cartoon campaign During/post Total campaign Recognition – Newspaper ads % recognising Source National newspaper reader panel data

6 Schweppes The Creative Work Newspaper Lemonade and Abbey Well creative

Schweppes 7 The Findings

8 Schweppes National newspaper readers spend heavily on Schweppes brands Expenditure on Schweppes £ per household 2009 Total Market Heaviest 3 rd TV viewers Frequent Newspaper readers Frequent Magazine readers Kantar Worldpanel 52 weeks to Dec Population 000s. All households Heaviest third TV viewers = Frequent newspaper readers = Frequent magazine readers = Heaviest third of TV is 29% of TV

9 Schweppes Readers of quality titles spend 95% more per household on Schweppes than heavy TV viewers Expenditure on Schweppes £ per household 2009 Total Market Heaviest 3 rd TV viewers Frequent Newspaper readers Frequent Quality NPs Frequent Mid- market NPs Frequent Popular NPs Kantar Worldpanel 52 weeks to Dec Population 000s. All households Heaviest third TV viewers = Frequent newspaper readers = Frequent magazine readers = Regular qualities =1623. Regular mids = Regular pops = Heaviest third of TV is 29% of TV

10 Schweppes Frequent quality readers account for 21% of Schweppes Tonic sales Expenditure on Schweppes Tonic £ per household 2009 TotalHeaviest 3 rd TV viewers Frequent Newspaper readers Frequent Quality NPs Frequent Mid- market NPs Kantar Worldpanel 52 weeks to Dec Population 000s. All households Heaviest third TV viewers = Frequent newspaper readers = Frequent magazine readers = Regular qualities =1623. Regular mids = Regular pops = Heaviest third of TV is 29% of TV Schweppes Tonic Schweppes Slimline Tonic Total Schweppes Tonic

11 Schweppes Newspapers more flexible for matching to brand profile Profile of Schweppes users % Source TGI 2010 Q1 AB C1C2 DE

12 Cartoon campaign drives 11.5% sales increase Schweppes Newspaper advertising effect on Schweppes sales % increase Source dunnhumby During Cartoon campaign Mar- June 09 During Total campaign Mar-Oct 09 Post Campaign Oct-Dec 09

13 Schweppes Highest sales impact at 4 OTS Source dunnhumby Newspaper advertising effect on Schweppes sales at different OTS % increase 1 OTS during Cartoon campaign 4 OTS during Cartoon campaign 1 OTS during Total campaign 4 OTS during Total campaign

14 Schweppes Newspapers stimulate trial Newspaper advertising effect on Schweppes trial % increase During Cartoon campaign During/post Total campaign Source dunnhumby

15 Schweppes Newspapers boost Schweppes penetration Newspaper advertising effect on Schweppes penetration % increase During Cartoon campaign During Total campaign Post Total campaign Source dunnhumby

16 Schweppes Good impact and branding for Cartoon campaign Source National newspaper reader panel data Newspaper ads % agreeing Schweppes Cartoon campaign Millward Brown Norm Definitely remember ad was for Schweppes Very eye- catching I’d stop and look rather than turn the page

17 Schweppes Highly engaging and original advertising Newspaper involvement diagnostics Millward Brown NP Norm Recognise ‘Cartoon’ ads (Each axis 0-80%) Source National newspaper reader panel data

18 Schweppes Newspaper campaign communicates powerfully Newspaper advertising strongly suggests % answering Source National newspaper reader panel data Millward Brown UK LINK norm: Key Message = 40% Schweppes has a sense of humour Schweppes is an experienced brand Schweppes is a quality brand Schweppes is a premium brand

19 Schweppes Newspapers prompt strong re-appraisal Advertising measures Top 2 Box % Source National newspaper reader panel data Call to action Gives me a reason to go out and buy Depth of information Gives me enough information to decide Emotional brand values Helps me connect and identify more strongly Re-appraisal Surprising and gets me to think differently