Street traders represent nearly 90% of PepsiCo’s sales of Torcida snacks in Brazil but, before the campaign, engaging with a vast amount of informal traders and street vendors in a meaningful way was almost impossible. The objective of this campaign was to increase PepsiCo’s ‘share of pocket’ across this target market, where vendors traditionally purchase and retail lower end products, by offering direct and personal incentives to encourage increased purchases.
Working with Brandtone, PepsiCo was able to offer Torcida vendors free airtime via mobile redemption of codes printed on product shipper packaging – regardless of their handset or mobile network – in return for answering questions about their business needs and priorities.
In a country where there are as many mobile phones as there are people, this incentive proved highly effective, reaching a third of the target market and generating a significant sales uplift.
Through this approach, PepsiCo was able to gain an in-depth understanding of this key market for the first time, building a vast database of engaged customers with whom it can build on-going relationships.
The campaign entailed printing unique codes inside wholesale shipper boxes of Torcida Snacks, with a ‘call to action’ on the outside prompting buyers to text the code to Brandtone/PepsiCo to claim an instant personal reward.
The entire trade promotion, targeted at traders, was done completely via mobile and the cloud; the first time PepsiCo had done this in Brazil. Centring this campaign on mobile provided an efficient, direct communication channel to engage, understand and reward one of PepsiCo’s key target markets.
Through Brandtone’s arrangements with the telecoms networks, vendors could send the SMS on any network, free of charge and the reward of free airtime was instantly credited to their phone. Yet thanks to Brandtone’s deals with the networks, PepsiCo was charged a fraction of the retail price for each real airtime reward that was granted.
The value the rewards offered were significant: equivalent to a 10% discount on the shipper box. Unlike a discount, however, the incentive could not be absorbed by wholesalers further up the chain.
Furthermore, the approach was particularly effective because the rewards were targeted directly at the vendors themselves, offering a personal benefit in return for loyalty and increased purchases. This form of incentive gave PepsiCo a valuable advantage over the low-priced B-brands with aggressive price positioning that normally target informal traders.
Among the most significant results of the campaign:
- 7.4% sales increase compared with the same period in 2011
- Over 53,000 opted in profiled retailers
- 15% increase in consumption frequency compared with 2011
- Encouraged an even sell out phasing of 25%/week of the monthly volume
- Almost one third of the estimated informal traders in Brazil were reached