1. July 2011 Newspaper Creative Benchmark Report ‘Bread Wars’

2. It’s a component of the Newspaper Effectiveness Metric which is run by the newspaper industry marketing body, The Newspaper Works. A monthly study designed; To measure and identify the effectiveness of newspaper creative To help improve understanding of how to use newspapers effectively To improve the understanding of the roles newspaper advertising can play To improve the standard of newspaper creative To provide a consistent metric that is accepted as the industry standard Coles was included in the July 2011 study

3. Pre/post effectiveness studies, measuring in-market effects and how newspaper work with Television Comparison of creative against category averages Comprehensive analysis of how newspapers can best be used to influence purchase behaviour The Newspaper Works’ effectiveness partner:

4. Recognised industry measures + Newspaper measures Proprietary newspaper measures The Newspaper Works’ effectiveness partner: Ad Recognition Brand Linkage Message Comprehension Brand Equity Impact Role Map Action Map Newspaper Creative Diagnostics

5. Let’s look at the Coles ad first

6. Because we all buy bread Market: Sydney Size: FPC Position: News Tested: July 2011 Ad benchmarked

7. Coles was one of nine ads tested in Sydney Sample: Australians 16+ Sample size: 111 Fieldwork: 20-26 th July 2011 Conducted online by Ipsos MediaCT Benchmarks used: Retail Average (see appendix for details)

8. Retail Averages The creative diagnostics results paint an overwhelmingly positive picture, with the ad doing well on presented a strong offer, in a clear manner. This ad jumps to #1 ranking within our Supermarket category database for ‘Makes it easy to see what is on offer’

9. The ad performs significantly well against all three top line measures with strong recognition and interest Note: Ad Recognition and Brand Linkage can be affected by weight of campaign and timing of research Significantly different to Retail Average at 90% c.l. Retail Averages +40 +29 +24 Branding removed

10. The ad performs significantly well against all three key brand equity measures. Significantly different to Retail Average at 90% c.l. Retail Averages +15+19 +18

11. Overall message comprehension is about as good as it gets with 97% of respondents generally correct about the main message of the advertising

12. What did the respondents say about the ad? Simple, makes its point, not trying too hard Well it's only Homebrand bread and that doesn't interest me. I don't rate home bread that highly so the use of the word quality is lost on me It shows that Coles are doing something about pricing Good specials make you want to go back to the store for more Simple and positive Helping the consumer Driving down prices In the case of Coles, it is easier to remember its ads after it uses ‘down down’ red hand Its positive news for households trying to pay for groceries but I do wonder what the impact is to Coles suppliers Compared to other ads, the Coles ad is much more eye catching and this is perhaps due to the red hand pointing downwards.

13. Significantly high scores have been achieved on 4 out of 6 of the key strategic roles. Respondents clearly link the ad back to the Coles’ TV campaign, and have responded with strong retail intentions Retail Averages Significantly different to Retail Average at 90% c.l.

14. As expected, the ad generates a significantly strong call to action with strong retail intentions. % scores Retail Averages Significantly different to Retail Average at 90% c.l.

15. Comparison with Woolworths

16. Take a slice off your grocery bill Market: Sydney Size: FPC Position: News Tested: July 2011 In direct competition

17. Retail Averages The creative diagnostics results paint an overwhelmingly positive picture, with the ad doing well - presenting a strong offer, in a clear manner. The ad is highly attention grabbing and it’s hard to see how the message could be any more clear

18. The ad scores significantly high results in both recognition and interest. Brand linkage performs above averages. Interesting to note that most of the remaining 30% of respondents nominated Coles as the likely brand. Note: Ad Recognition and Brand Linkage can be affected by weight of campaign and timing of research Significantly different to Retail Average at 90% c.l. Retail Averages +20 +24 Branding removed

19. The ad did well to increase familiarity / understanding and achieved strong relevance, while scores for differentiation was above average. Significantly different to Retail Average at 90% c.l. Retail Averages +14 +19

20. Very strong message comprehension with 94% generally correct with understanding the main message of the ad. What hasn’t come up, is the word ‘fresh’ which traditionally is closely associated with Woollies produce ads.

21. What did the respondents say about the ad? Eye catching and simple, the kind of ad I like. It gets to the point quickly Similar to other ads from Supermarkets It's the same as what Coles offer Simple ad competing against similar ads by its competitors Simple and clear Competing with Coles…’me too’ Questions about quality I had not seen it before but it reminded me of Coles who also have 1 dollar loaf on sale It looks cheap and then makes you think the bread is of poor quality Cheap white bread doesn't interest me, whether it's from Woolworths or Coles. I go for more nutritious bread with quality ingredients

22. Both ‘$1 Bread’ ads follow a similar Role Map pattern and both perform very well. Clearly though, reactions to the Coles’ ad, are stronger, possibly benefitting from a strong TV campaign (‘down down’) and the use of the highly recognisable ‘red hand’ Retail Averages

23. While the ads achieve very different scores in some areas, the overall Action Map results are much the same with negligible differences. Strong results for both. % scores Retail Averages

24. We tested the $1 Bread ads for both Woolworths and Coles, to see if respondents were influenced differently by what is essentially the same message There was a clear relationship to the Coles ‘Down Down’ TV campaign, which helped this ad make a strong impact on key measures, and drive a strong Call to Action Respondents appreciated the simplicity of the message and many interpreted Coles as presenting important information to the Public Agenda, reflecting the need to address family pressures over the increasing price of groceries Interestingly, Coles was seen as the leader of this issue, whilst the ad from Woolworths was seen more as jumping on the bandwagon Most respondents were very positive about the ‘Down Down’ campaign in general Both ads are high performing ads based on our Creative Benchmarking results, however this test gives the edge to Coles in delivering the $1 Bread offer to market in the most complete and compelling way possible

26. Established in 2006 by the major Australian newspaper publishers: – News Limited – Fairfax Media (including Rural Press) – APN News and Media – West Australian Newspapers Represents paid national, metropolitan, regional and community titles. Primary aims: – To promote newspapers as a powerful medium for advertisers – To ensure that newspapers are perceived as being contemporary and relevant in a transforming media landscape

27. Testing of randomly selected and hand picked newspaper display ads Over 7,000 ad observations in total 36 test ads (27 randomly selected, 9 hand picked) 100+ observations per ad Population representative sample of the five mainland state capitals Conducted online by Ipsos Media CT, July-August and October – November 2008 Sample size 2,475

28. Newspapers are a powerful medium to utilise across a broad range of strategic roles. Six strategic advertising roles have been validated both qualitatively and quantitatively, resulting in the creation of Role Map, one of two proprietary newspaper metrics. Role Map demonstrates how consumers connect with newspaper advertising across the six roles, comparing the performance of creative against a footprint of all ads tested. Retail average Statements are tailored to be appropriate to the advertising category.

29. Newspapers are recognised as an effective medium for delivering a Call to Action. Action Map, the third proprietary newspaper metric, expands on this strategic role to provide an understanding of the types of action a newspaper ad inspires. Measured via forced exposure, people are asked about the actions they would consider taking (or have taken) as a result of seeing the ad. New measure introduced in March 2010, norm not yet available.

30. Another proprietary newspaper metric provides a set of creative diagnostics unique to the attributes of newspaper advertising. They’ve been developed to help identify areas for improvement where results across other brand and advertising measures may require further analysis and interrogation. Retail average Statements are tailored to be appropriate to the advertising category.