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Improving our marketing model to drive growth

From the 2024 Annual Report

Several of our brands made further progress this year thanks to a step-up in marketing investment. We have taken a careful approach to developing and delivering our marketing campaigns, resulting in greater brand awareness and market penetration.

The best example of this is at Twinings, now enjoyed in more than 120 countries and where we see further scope to grow our consumer base. We have invested significantly in advertising to build our brand and achieve our growth ambitions in key markets including the US, Canada, UK, France and Australia. Consumer-centricity is important to us, from product development through to advertising, so we have taken a thoughtful approach to ensure our messaging engages and resonates with consumers to achieve maximum impact.

An image from a US TV advert, profiling the 50+ delicious varieties of Twinings teas and infusions available in North America An image from a US TV advert, profiling the 50+ delicious varieties of Twinings teas and infusions available in North America

This approach involves initial qualitative testing of our messages, followed by small trials of the advertising campaigns where we can gauge their effectiveness using data. Only then do we go live on a regional basis in our markets while continuing to monitor the response via leading independent research companies to confirm that we are getting a strong return on our investment. In the US, for example, we began in New Jersey and Connecticut before rolling out across the rest of the East Coast once we had seen proven results from that first trial.

Our US advert was adapted from an earlier French version, taking the most successful elements from the campaign in France and capitalising on the two markets’ similar consumer objectives and brand positioning. This meant our US campaign development costs were much lower and we were able to invest more in the placement of the adverts in target media.

Our approach is working well. The latest Twinings advert was in the top 1% of adverts tested by Kantar, the market insight company, which assesses adverts for short-term sales uplift and long-term brand impact. It reached 85% of our intended audience in the US. We are growing household penetration in both black and herbal teas and we are the top selling tea brand on Amazon. Looking at the top 10 tea brands in the US at a total market level, Twinings has had the greatest increase in ‘repeat rate purchasing’ in the past year – which is the key measure of consumer loyalty to a brand.*

*numerator Panel Insights, Top 10 Tea Category Brands, 52 weeks ending 26 May 2024.

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