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THE MARKET<br />

The home entertainment market in <strong>Australia</strong> is big<br />

business and that business is being driven by the<br />

DVD format. <strong>Australia</strong>ns embraced the DVD format<br />

faster than any other technological or entettainment<br />

format in history. Since hitting the market in 1998,<br />

the DVD format has grown to over 5 I per cent<br />

penetration into households.<br />

The entertainment product now available on<br />

DVD is widely varied with movies representing 72<br />

per cent of all sales. The movie category isn't just<br />

driven by the big ticket new release films like 'X­<br />

Men 2' and 'Daredevil', the real growth area has<br />

been catalogue product or films in home<br />

entertainment release for four months or longer.<br />

Catalogue product at the end of 2003 represented a<br />

69 per cent growth in shipped units year on year<br />

proving that <strong>Australia</strong>ns are avid collectors as well<br />

as renters. 20th Century Fox Home Entertainment<br />

has a very strong back catalogue of films from the<br />

classics like 'The Sound of Music' to new famil y<br />

favourites like 'Ice Age' .<br />

Other product categories showing excellent<br />

growth are Music and Television programming. 20th<br />

Centmy Fox Home Entettainment is the market leader<br />

in the rapidly growing television DVD sub categ01y.<br />

Key brands include Buffy the Vampire Slayer, Angel,<br />

The Simpsons, Futurama and 24.<br />

In addition to the rapid growth in the retai l area,<br />

the rental market remains very strong with<br />

<strong>Australia</strong>ns still the world' s biggest renters of video<br />

and DVD per capita. Rental outlets still number<br />

over 2000 nationwide with a large number of outlets<br />

both selling and renting product to a dedicated<br />

consumer base.<br />

At the end of 2003 the total rental market was<br />

valued at $236.5 million while the retail market had<br />

grown to over $800 million. Fox's revenue has<br />

grown in that period by more than 40 per cent across<br />

the market with an average market share in rental of<br />

16.34 per cent placing it in the top three of software<br />

distributors and at the top of retail sales with an<br />

average 15.9 per cent market share.<br />

ACHIEVEMENTS<br />

The growth of Fox Home Entertainment has been<br />

spectacular. Sales in fiscal 1995 were $28 million<br />

with sales in fiscal2003 forecast at over $ 140 million.<br />

Fox has been listed by BRW as one of <strong>Australia</strong>'s<br />

I 00 fastest growing companies and also as one of<br />

the top employers listed in the 'Best Companies To<br />

Work For In <strong>Australia</strong>' as published by Allen &<br />

Unwin. As prut of an international organisation,<br />

the <strong>Australia</strong>n Fox subsidiary has tended to grow<br />

faster than many others around the world and now<br />

ranks 5th in Fox Home Entettainment internationally.<br />

Fox Home Entettainment has fostered lucrative<br />

distribution partnerships with other major<br />

international studios such as MGM and Regency<br />

Films, as well as high-profile <strong>Australia</strong>n<br />

independents like Palace Films. These prutnerships<br />

have allowed Fox to distribute some of the most<br />

highly regru·ded and commercial films outside of its<br />

own studio's production facilities.<br />

As a company born out of the development of<br />

new technologies, Fox continually embraces their<br />

use to become more competitive and cost effective<br />

in its trading environment. Fox has adopted a<br />

flexible approach to sales, marketing and distribution<br />

that has made it an agent of change in a highly<br />

competitive environment.<br />

The greatest strength Fox has is its relationship<br />

with the major retailers in both the rental and retail<br />

channels. This is partly due to the focus Fox<br />

maintains on achieving profitable and sustainable<br />

gains for all its business partners. Relationship<br />

marketing is a key strategy and, as a result, trading<br />

relationships are robust and co-operative.<br />

Fox mru·keting sets standards both at home and<br />

internationally earning multiple awards and<br />

industry recognition for innovative and effective<br />

campaigns within both the rental and retai l<br />

channels.<br />

The competitive advantage Fox enjoys is due<br />

not only to a well-developed understanding of<br />

these channels but also to the implementation of<br />

sophisticated Electronic Data Interchange (EDI)<br />

processes. Retail inventory management at Fox is<br />

handled by the VISION system, and world's best<br />

practice supply chain processes are being<br />

introduced with leading retailers. The use of EDI,<br />

POS scan data and scan picking and production of<br />

shipping cattons enables error-free and paperless<br />

supply.<br />

HISTORY<br />

20th Century Fox Home Entertainment has a long<br />

hi story of successful distribution in <strong>Australia</strong>,<br />

beginning before 1983 when Magnetic Video<br />

evolved into an international joint<br />

'Jiiii~;:::;;,j:=;-::;;jiiiiiil<br />

venture between CBS-<br />

~ Fox and the studio.<br />

The studio took<br />

complete control in<br />

1991 and, as a result,<br />

the relationship was<br />

strengthened further.<br />

Fox became a retail<br />

channel distributor in<br />

1996 and has since<br />

gained market<br />

leadership through<br />

the use of superior<br />

technology, experienced<br />

sales and<br />

mru·keting personnel<br />

and the development<br />

df close retai ler<br />

relationships.<br />

In 1999, the<br />

122


<strong>Australia</strong>n offices of 20th Century Fox Home<br />

Entettainment relocated to the Fox Studio at the<br />

site of the old Sydney Show ground.<br />

THE PRODUCT<br />

Over 70 per cent of the DVDs sold in <strong>Australia</strong> ru·e<br />

live action movies, and Fox has established mru·ket<br />

leadership in the mru·keting, promotion, sales and<br />

distribution of feature films.<br />

Fox has adopted a p01tfolio management style<br />

to platform each ru·ea of its product offering. From<br />

new release films for the rental market to a catalogue<br />

of over 400 films on both formats to the retail mru·ket,<br />

Fox has enjoyed outstanding distribution<br />

successes and many record breaking results.<br />

With a mix of outstanding 'evergreen' films such<br />

as 'Braveherut', 'Titanic', 'The Sound of Music',<br />

'Fight Club', and 'X-Men' to mention only a few,<br />

Fox has one of the strongest video and DVD<br />

catalogues available. Complementing the individual<br />

films are the strong film and television franchises<br />

including the TV hits The Simpsons, X-Files, Buffy­<br />

The Vampire Slayer and Angel as well as many<br />

others.<br />

In addition to an outstanding new release lineup,<br />

Fox will continue to drive category growth via<br />

the extensive catalogue.<br />

RECENT DEVELOPMENTS<br />

New release highlights in 2004<br />

include Peter Weir's epic<br />

masterpiece ' Master and<br />

Commander' (nominated for l 0 '<br />

Academy Awards and winner of<br />

two Oscars plus the BAFTA<br />

Awmd for BestDirector), 'The Day<br />

After Tomorrow', a special-effects<br />

packed mega-event picture from<br />

the director of 'Independence<br />

Day' (Roland Emmerich), the sci-fi<br />

thriller 'I, Robot' starring Will<br />

Srnith, the action packed 'Alien vs<br />

Predator' (whoever wins, we lose!),<br />

and Bill Murray brings the frunous<br />

crutoon-strip fat cat to life on the<br />

big screen in 'Garfield'! The most<br />

requested DVD ever will also be<br />

released in September 2004 when<br />

the Star Wars Trilogy comes to<br />

D VD for the fu·st time'<br />

The development and ;,?---------------<br />

consumer acceptance of DVD has<br />

created enormous growth in both<br />

the rental and retail channels.<br />

What was old is new and exciting<br />

again with DVD Special <strong>Edition</strong><br />

releases of films as diverse as<br />

'Independence Day' and 'The ~<br />

Sound of Music'. The excitement<br />

of this new format is growing at ~<br />

an unbelievable rate with DVD ~<br />

driving the consumer to rent and !I<br />

purchase with new enthusiasm. ~<br />

20th Century Fox will continue ~<br />

to invest in the growth of the Ill<br />

Home Entertainment category by<br />

working closely with rental and "<br />

retail prutners. The goal is to make<br />

DVD easily accessible to every<br />

<strong>Australia</strong>n via gold standmd in-<br />

..<br />

store execution and a marketing<br />

activity plan that will include<br />

heavy above-the-line media<br />

investment and long<br />

promotional partnerships.<br />

PRO MonON<br />

Fox spends both strategically<br />

and aggressively on mru·keting,<br />

specifically in the areas of<br />

consumer advertising, point of<br />

sale, retail execution, publicity<br />

and promotions and retailer<br />

specific promotions.<br />

Consumer advertising is<br />

targeted to reach the individual<br />

product's main demographic<br />

segment. The primmy choice for<br />

new release and re-promoted<br />

product is terrestrial television,<br />

Pay TV, specialist press and radio<br />

advertising, supplemented<br />

by other forms of media<br />

such as database mailers<br />

and in-store point of<br />

purchase materials.<br />

The Fox publicity and<br />

promotions team works<br />

with both rental and retail<br />

product to create a<br />

competlttve edge,<br />

concentrating on several<br />

!!!.---key strategies to position<br />

Fox product for both the<br />

industry and consumers.<br />

Fox has driven<br />

RENEE ZELLWEGER EWAN McGREGOR enormous market growth<br />

with seasonal catalogue<br />

Dowfi WiT"tt l.PVE campaigns such as X­<br />

tremeDVD, Father's Day<br />

and Best of the Best.<br />

These promotions have<br />

generated mru·ket leading<br />

sales results. Fox will<br />

continue to drive these<br />

campaigns using a broadbased<br />

media strategy and<br />

catalogue marketing<br />

expertise to attract<br />

promotional prutners and<br />

drive category growth.<br />

The team maximises<br />

sales potential through<br />

cross promotions,<br />

product tie-ins and public<br />

relations; develops longterm<br />

third party partner<br />

relationships; and<br />

engineers and implements<br />

strong relationships with<br />

key members of the press.<br />

The team also plans and<br />

implements talent tours,<br />

interviews and press<br />

opportunities; creates<br />

event marketing plans<br />

including PR events and<br />

trade and retail specific<br />

launches; and develops<br />

retail campaigns to drive<br />

sales and increase retail<br />

presence.<br />

As a News Corp<br />

company, 20t" Centwy Fox<br />

Home Entertainment has<br />

formed unprecedented<br />

alliances with Fox<br />

theatrical, television,<br />

Foxtel cable television and<br />

News Corp publications.<br />

This has created a strong<br />

corporate synergy which<br />

gives all the organisations<br />

involved a competitive<br />

edge in their respective<br />

markets. Promotional<br />

partnerships with News<br />

publications, entertainment<br />

affil iates and<br />

allied firms like Harper<br />

Collins in publishing ru·e<br />

especially effective.<br />

BRAND VALUES<br />

Fox Home Entettainment<br />

carries the name and<br />

iconography of its parent<br />

20th Century Fox, one of the oldest and most<br />

recognised film studios in the world. As a distributor<br />

of entertainment and some of the best-loved films<br />

of all time Fox represents memoties, laughter, drama,<br />

songs and emotion to every generation. Fox is<br />

committed to delivering high quality replication of<br />

these films on VHS and DVD, which conform to the<br />

high standru·ds expected by the consumer.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

201H CENTURV FOX HOME ENTERI'AINMENT<br />

0 The 20t" Century Fox Home<br />

Entettainment team is relatively small,<br />

witl1 only 39 full time members.<br />

0 The blockbuster hit film, 'Titanic', has<br />

sold neru·ly I million units into the<br />

<strong>Australia</strong>n mru·ketplace across the<br />

video and DVD formats ... that's I in 6<br />

households.<br />

0 The production line which assembles<br />

Fox videos automatically opens tl1e<br />

video box, inserts the slick, drops in the<br />

cassette, closes tl1e box and adds a<br />

price label at the rate of 1700 boxes per<br />

hour.<br />

123


ABC<br />

THE MARKET<br />

One of <strong>Australia</strong>'s most valued and<br />

trusted brands, the ABC operates<br />

across a range of platforms, ensuring<br />

that as many people as possible are<br />

able to access the ABC content and<br />

services available nationally and<br />

internationally.<br />

In an average week an estimated<br />

75 per cent of <strong>Australia</strong>ns use ABC<br />

services.<br />

ACHIEVEMENTS<br />

ABC Television is <strong>Australia</strong>'s only<br />

national, commercial-free public<br />

television broadcaster. Innovative<br />

and quality programming has always<br />

been the hallmark of ABC TV On<br />

average, more than eighty new<br />

programs are launched each year<br />

providing the viewer with a rich mix<br />

of locally produced and overseas<br />

material. The emphasis continues to<br />

be on <strong>Australia</strong>n productions with<br />

60 per cent <strong>Australia</strong>n content in<br />

prime time- 6 pm to midnight.<br />

ABC Radio reaches <strong>Australia</strong>ns<br />

through five tenestrial networks and<br />

Internet radio, and listeners in the Asia Pacific<br />

region through its international network Radio<br />

<strong>Australia</strong>.<br />

ABC New Media and Digital Services<br />

coordinates all the ABC's online activities and<br />

websites as well as developing content for<br />

new and emerging platforms and initiatives '<br />

such as broadband, digital TV, interactive<br />

TV (iTV) SMS, wireless and datacasting.<br />

ABC Online consistently rates as one of<br />

the fifteen most popular sites in<br />

<strong>Australia</strong>. In 2003, ABC Online had an<br />

average monthly reach of 1.2 million<br />

<strong>Australia</strong>ns, representing an<br />

average of 13.2 percentoftheactive<br />

<strong>Australia</strong>n Internet population.<br />

ABC News and Cunent Affairs<br />

provides the most comprehensive<br />

news and cunent affairs coverage<br />

of any <strong>Australia</strong>n media<br />

organisation. More than 24,000<br />

hours of news and current affairs are<br />

broadcast annually across radio,<br />

television and online.<br />

ABC Enterprises creates, licenses,<br />

markets and retails quality consumer<br />

products which reflect and extend the scope of ABC<br />

programs and services. ABC Enterprises operates<br />

37 ABC Shops and 85 ABC Centres, the net revenue<br />

from which goes directly into further ABC<br />

programming initiatives. In 2002-2003, ABC<br />

Enterprises provided $9.83 million to the<br />

Corporation.<br />

HISTORY<br />

The ABC was inaugurated in 1932 by<br />

then Prime Minister Joseph Lyons.<br />

Twelve radio stations were brought<br />

together under the banner of the<br />

<strong>Australia</strong>n Broadcasting<br />

Commission.<br />

Until 1935 all programs<br />

went to air live. Over half the<br />

early programs were music<br />

and in 1936 the ABC began<br />

establishing studio<br />

broadcasting orchestras in all<br />

States. These provided the<br />

foundation for the state<br />

symphony orchestras which<br />

m the late 1990s<br />

progressively became<br />

independent subsidiary companies<br />

of the ABC.<br />

In 1947 the ABC established its<br />

own independent news service and<br />

in 1950 Radio <strong>Australia</strong> finally came<br />

under full control of the ABC. In 1956<br />

ABC Television began transmission<br />

in Sydney and Melbourne. In 1965<br />

the ABC logo came into use, in 197 4<br />

the first ABC shop opened and in<br />

1983 the ABC became a Corporation.<br />

From 1985 ABC Television could<br />

transmit programs nationally via the<br />

Aussat satellite and in 1995 the<br />

ABC's Multi Media (now New<br />

Media and Digital Services) division<br />

was established.<br />

THE PRODUCT<br />

ABC TV programs continue to win<br />

viewer and critical acclaim with the<br />

highest ever free-to-air audience<br />

share. Programs of all geru·es are also<br />

winning major peer-voted national<br />

and international awards. Free to air<br />

commercial channels vie to acquire<br />

concepts, programs and<br />

personalities pioneered by ABC TV<br />

Stories broken by programs such as Four<br />

Corners, <strong>Australia</strong>n Story and Andrew Denton's<br />

Enough Rope regularly receive major press<br />

exposure. Characters from some ABC TV programs<br />

such as Mother and Son, SeaChange, Bananas in<br />

Pyjamas and Kath & Kim have become <strong>Australia</strong>n<br />

icons. Three generations of <strong>Australia</strong>ns know the<br />

words to the Play School song.<br />

ABC Radio National plays a unique role in the<br />

<strong>Australia</strong>n radio market, with specialist information<br />

programs that touch on every aspect of life<br />

including health, politics, religion, science and the<br />

arts - giving a breadth of ideas and analysis. A<br />

10


number of the network's programs including The<br />

Science Show and Singers of Renown have enjoyed<br />

record-breaking longevity, maintaining audience<br />

interest over many years.<br />

ABC Classic FM, <strong>Australia</strong>'s only national<br />

classical music station offers an eclectic mix of<br />

music and music information. The network plays a<br />

key role in fostering the work of <strong>Australia</strong>n<br />

composers and performers as well as bringing<br />

<strong>Australia</strong>ns conceit pe1formances from around the<br />

world.<br />

The ABC's youth network triple j targets an<br />

audience of 18-24 year olds. The network gives<br />

significant support to new <strong>Australia</strong>n music with a<br />

play list that is more than 40 per cent <strong>Australia</strong>n. Its<br />

programs explore issues of interest and concern to<br />

young <strong>Australia</strong>ns.<br />

ABC NewsRadio provides a continuous news<br />

and information service and can be heard in all<br />

capital cities plus Northern Tasmania, Newcastle,<br />

the Gold Coast and Gosford. When Federal<br />

Parliament is in session NewsRadio crosses to<br />

Canberra for live coverage while the regular<br />

programming continues to be streamed on the<br />

Internet.<br />

ABC Local Radio provides an outlet for local<br />

information, news and views through a network of<br />

nine metropolitan and 51 regional stations. It offers<br />

a mix of news, cun·ent affairs, talkback, sport music<br />

and rural matters.<br />

dig is an Internet radio station offering a diverse<br />

range of non-stop music, as well as music news,<br />

reviews, concerts and interviews, for a 30-plus<br />

audience. Its non-stop music stream is also<br />

broadcast as an audio service on digital television.<br />

ABC News and Cun·entAffairs provides the most<br />

comprehensive news and current affairs coverage<br />

of any <strong>Australia</strong>n media organisation. It includes<br />

analytical and investigative reporting of the<br />

nation's business, community and political affairs<br />

with award-winning programs such as the 7.30<br />

Report, 4 Corners, Lateline and <strong>Australia</strong>n Story as<br />

well as Insiders and Landline on TV and AM and<br />

PM on radio.<br />

ABC New Media and Digital Services is a leader<br />

in developing and creating high quality, innovative<br />

content across multiple platforms as well as<br />

extending and enhancing the prograrruning of ABC<br />

Radio and Television. It provides a distinctly<br />

<strong>Australia</strong>n perspective on local, national and<br />

international activities to online and new media<br />

users throughout <strong>Australia</strong> and internationally.<br />

The four business units of ABC Enterprises-­<br />

ABC Consumer Publishing, ABC Retail, ABC<br />

Content Sales and ABC Resource Hire - are<br />

responsible for selling and distributing<br />

programming and content, the hiring of resources<br />

and developing and retailing \<br />

products relating to ABC<br />

programming or Charter roles.<br />

RECENT<br />

DEVELOPMENTS<br />

ABC New Media and Digital<br />

Services' innovative broadband<br />

service was established in 2001 and<br />

enables audiences to interact with<br />

high quality rich media content ~ 1 •<br />

on demand. The ABC 121 p ~ 1<br />

Broadband service offers several r-'1 :..J<br />

channels including News, Kids,<br />

cooking, comedy and music.<br />

As the digital environment evolves NM&DS is<br />

at the forefront of developments, producing<br />

content for emerging platforms including wireless<br />

and some of <strong>Australia</strong>'s first iTV programs, helping<br />

to shape the format of this new platform. NM&DS<br />

is also actively involved in datacasting and digital<br />

radio trials.<br />

Launched on December 31, 2001 ABC Asia<br />

Pacific is the ABC's free-to-air international satellite<br />

television service catering to the Asia-Pacific region.<br />

Drawing on the expertise of the ABC's network of<br />

reporters, programs take a daily look at issues and<br />

events across the region as well as considering<br />

global issues from a regional standpoint<br />

dig, the ABC's first Internet radio station, was<br />

launched in 2002.<br />

At the end of 2003, ABC Radio began<br />

broadcasting digital radio trials in Sydney and<br />

Melbourne.<br />

PROMOTION<br />

Press coverage and cross promotion in its own<br />

output provide most of the promotion of ABC<br />

programs and publications. Cross promotion varies<br />

from on-air mentions to scripted promos and TV<br />

voiceovers.<br />

A recent high-profile advertising campaign<br />

'enemy of average' aimed to reposition the youth<br />

radio network triple j in the 18-24 year market.<br />

ABC TV's station identification campaign<br />

'everyone's ABC', launched in 2003, was designed<br />

to give a feeling of involvement among viewers<br />

and show faces and images that reflect <strong>Australia</strong>'s<br />

diversity.<br />

Involvement in community activities is an important<br />

way of keeping the ABC brand in the public eye and<br />

giving a 'human face' to the national brooclcaster. The<br />

ABC's exhibition trailer travels around the country to<br />

local events. It offers the <strong>Australia</strong>n public an<br />

interactive hands-on experience of ABC programs,<br />

personalities and services.<br />

BRAND VALUES<br />

The vision for the ABC is to be both valued and<br />

integral to <strong>Australia</strong>'s culture, and its mission is to<br />

engage its audiences with an independent,<br />

distinctive and appealing mix of prograrruning<br />

and content, delivered via multi-platform<br />

services.<br />

The ABC is guided by these values:<br />

Editorial Excellence - aspiring to the<br />

highest standards of accuracy, impartiality<br />

and independence, in reflecting a balanced<br />

and broad range of views and interests<br />

through adherence to editorial policies and<br />

guidelines.<br />

Innovation and Creativity - striving for<br />

excellence in the development and<br />

presentation of distinctive information and<br />

cultural programming content.<br />

Universal Access- ensuring that all <strong>Australia</strong>ns<br />

can access services that provide the knowledge<br />

required in a modern information-based society.<br />

Our People - providing opportunities for the<br />

ABC's people to grow, personally and<br />

professionally, during their time with the<br />

Corporation.<br />

Good Governance - demonstrating accountability<br />

for the efficient and effective use of public<br />

resources.<br />

Shared Commitment - accepting the shared<br />

obligation to act responsibly and with a commitment<br />

to fairness and justice.<br />

Courage - encouraging the leadership and<br />

vision to adapt to change with flexibility, integrity<br />

and decisiveness.<br />

0<br />

0<br />

0<br />

0<br />

0<br />

0<br />

0<br />

0<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

THE ABC<br />

The ABC is <strong>Australia</strong>'s largest radio<br />

and television network, covering 98 per<br />

cent of the <strong>Australia</strong>n continent.<br />

99 out of the top l 00 children's (0-12)<br />

programs on <strong>Australia</strong>n TV, in 2003<br />

were broadcast on ABC TV.<br />

More than 190 countJies buy ABC<br />

Television programs from ABC Content<br />

Sales; the revenue earned is fed back<br />

into program making.<br />

You would have to stay awake for over<br />

250 days to hear the more than 500,000<br />

news stmies that ABC NewsRadio<br />

broadcasts every year.<br />

triple j is AustJ·alia' s greatest suppmter<br />

of home grown music. Grinspoon,<br />

Killing Heidi and Endorphin were<br />

'unearthed' on the National Youth<br />

Network that keeps AustJ·alian music<br />

alive.<br />

When ABC Online was first launched<br />

in July 1995, it was a collection of6<br />

websites. Today, ABC Online carries<br />

more than 1.5 million individual web<br />

pages and the site consistently ranks<br />

in the top fifteen websites accessed by<br />

<strong>Australia</strong>ns.<br />

More than 1 million <strong>Australia</strong>ns visit<br />

ABC Online each month and around<br />

2.5 1nillion visit over a quarterly period.<br />

ABC Asia Pacific satellite coverage<br />

extends from Bangladesh in the west,<br />

Korea in the north ar1d as far· east as<br />

the Cook Islands.<br />

11


THE MARKET<br />

The <strong>Australia</strong>n Gas Light<br />

Company (AGL) is the largest<br />

retail energy supplier in<br />

<strong>Australia</strong>, offering gas and<br />

electricity services to around 3<br />

million customers. The<br />

company 's interests are<br />

concentrated in the populous<br />

south-eastern corner of<br />

<strong>Australia</strong>, where AGL has been<br />

operating since 1837 when it<br />

was establ ished to light the<br />

streets of Sydney with town gas.<br />

From these humble<br />

beginnings, AGL has exp


In 1976, AGL introduced natural gas, and growth<br />

continued through the 1990s. In recent yeru·s, the<br />

privatisation of the Victorian and South <strong>Australia</strong>n<br />

energy industries has enabled AGL to expand its<br />

business for the first time into electricity through<br />

the addition of new customers and network<br />

infrastructure. Retail competition in SA, Victoria and<br />

NSW has also added a new element of challenge<br />

for AGL which will define the company' s future as<br />

it moves into thi s new century.<br />

THE PRODUCT<br />

Customers' changing energy requirements continue<br />

to define AGL, which has developed a full suite of<br />

competitive gas and electricity products, tailored<br />

to suit customer needs. As well as having the<br />

capability to offer customers the convenience of<br />

electricity and gas from one provider, AGL also is<br />

now catering for those customers with a green<br />

preference. AGL has introduced a suite of green<br />

products under the banner of AGLGreen Choice,<br />

including AGL Green Balance which is the first<br />

<strong>Australia</strong>n Greenhouse Friendly product to be<br />

officially certified by the <strong>Australia</strong>n Greenhouse<br />

Office.<br />

Beyond the supply of gas and electricity AGL<br />

also provides a range of additional services to meet<br />

the needs of consumers. AGL's Energy Shop<br />

franchises have been established in South <strong>Australia</strong><br />

and New South Wales to provide value and advice<br />

on energy efficient appliances. AGL also offers<br />

commercial and residential gas appliance repair,<br />

electrical repairs and maintenance, and hot water<br />

repair or replacement services tlu·ough AGL Assist<br />

in New South Wales, Victoria and South <strong>Australia</strong>.<br />

AG L infrastructure and services compru1y,<br />

Agility, provides operational and maintenance<br />

services to AGL Gas Networks for both natural gas<br />

and electricity di stribution. It also provides the<br />

diverse ski lls of its personnel to other asset owners<br />

and developers. Services include project<br />

commercialisation; design, construction and<br />

commissioning; commercial and technical asset<br />

management and regulatory support; and a<br />

comprehensive range of field operating services<br />

including maintenance, communications and<br />

business systems.<br />

RECENT DEVELOPMENTS<br />

The largest single change in <strong>Australia</strong>'s energy<br />

mmket came with the move to deregulation. This<br />

began in 1994 when Professor Fred Hilmer's report<br />

suggested that major economic benefits could<br />

arise from the creation of a free and<br />

deregulated energy mru·ket.<br />

Energy mru·ket reform began in August<br />

1997 with deregulation of the natural gas<br />

industry in New South Wales.<br />

The deregulation of the electricity<br />

market in New South Wales, Victoria and<br />

South <strong>Australia</strong> occurred in parallel with the<br />

corporatisation of state-owned utilities. In<br />

1995, AGL acquired 50 per cent of one of<br />

the Victorian electricity distribution and<br />

retailing companies, Solaris Power. In<br />

Jmmru·y 1998, AGL acquired the remaining<br />

half share in Solmis Power, which is now<br />

branded as AGL.<br />

Similru·Iy, AGL acq uired the retail ru-m of<br />

The Electricity Trust of South <strong>Australia</strong>,<br />

ETSA Power, in Jm1uru·y 2000 and Pulse<br />

Energy, a Victorian gas and e lectricity<br />

retailer, in 2002.<br />

These acquisitions have led to AGL's<br />

emergence as the nation's largest combined<br />

energy transmission, distribution, energy<br />

retailing and marketing company with $4.5<br />

billion worth of assets in <strong>Australia</strong> and New<br />

Zealand.<br />

AGL is now focused on further growing the<br />

business both organically and through appropriate<br />

investments in power generation and renewable<br />

energy. AGL is specifically seeking investments<br />

which will deliver appropriate returns and fmther<br />

diversify the company's portfolio of downstreaiTI<br />

energy assets.<br />

PROMOTION<br />

In 1974 AGL transformed its linage in prepru·ation<br />

for the new fuel, natural gas. The company adopted<br />

a new logo symbolising the change to<br />

environmentally friendly natural gas. The 'Living<br />

Flame' advertising caiTipaign in 1979 signalled a new<br />

beginning as AGL set out to recapture its historic<br />

position of dominance in the energy mmket.<br />

A number of other campaigns, including the<br />

highly-recognised Mimi the Mouse campaign, were<br />

introduced during the next decade. More recently,<br />

AGL launched a new campaign to better reflect the<br />

needs and aspirations of <strong>Australia</strong>ns. This cmnpaign<br />

shows slices of everyday life- capturing some true<br />

moments in life that everyone can relate to - and<br />

demonstrates how AGL' s range of energy products<br />

and services me an integral part of that.<br />

All of these campaigns have been successful in<br />

making AGL one of the most recognised gas and<br />

electricity companies in <strong>Australia</strong>.<br />

BRAND VALUES<br />

In all that it does, AGL helps people to get<br />

on with their lives. Every day, the<br />

company strives to provide customers<br />

with value, expertise ru1d friendly service.<br />

The brand values, including being<br />

<strong>Australia</strong>n, dependable and expe1t, reflect<br />

AGL's long hi story while propelling the<br />

company into the future. AGL is uniquely<br />

<strong>Australia</strong>n because the company was there<br />

more than 165 yew-s ago when <strong>Australia</strong><br />

was beginning to take its present shape.<br />

Its presence made an enormous difference<br />

to the everyday I i ves of people and<br />

business. AGL is dependable because it<br />

knows what to do when the going gets<br />

tough - people can depend on AGL<br />

whether it's fixing a gas hot water heater or<br />

helping them during a crisis.<br />

And the company uses its wide-ranging<br />

expertise to solve the really hru-d problems­<br />

AGL believes in energy know-how as a<br />

strength in all of its people.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

AGL<br />

0 AGL provided the engineering<br />

expe1tise that designed and built the<br />

burner for the Olympic flame at the<br />

Sydney 2000 grunes.<br />

0 In 1959,AGLbecruneoneofthefirst<br />

compm1ies in <strong>Australia</strong> to employ<br />

computerised record-keeping systems.<br />

0 In 1871 ,AGLwasoneofthefirst<br />

companies listed on the Sydney (now<br />

the Australim1) Stock Exchange.<br />

0 AGL is the second-oldest company in<br />

<strong>Australia</strong> still trading under its 01iginal<br />

name.<br />

0 AGL was the first gas and electricity<br />

retailer to offer a greenhouse-friendly<br />

product, Green Balance TM, approved<br />

by the Austra1im1 Greenhouse Office.<br />

13


The Official Card of the <strong>Australia</strong>n Open.<br />

THE MARKET<br />

American Express International is a world leader in<br />

travel and financial services including charge and<br />

credit cards, Travellers Cheques, financial planning,<br />

investment products, insurance and international<br />

banking.<br />

Through its family of Corporate Card and<br />

business travel services, American Express helps<br />

companies manage their travel, entertainment and<br />

purchasing expenses.<br />

As the world's largest travel agency, American<br />

Express offers travel and related consulting services<br />

to individuals and corporations around the world.<br />

In <strong>Australia</strong>, American Express competes in a<br />

highly competitive and dynamic industry. The<br />

company dominates the Corporate Card market with<br />

58 per cent; 85 per cent of charge Cardmembers<br />

and 45 per cent of credit Cardmembers are enrolled<br />

in its Membership Rewards TM loyalty program.<br />

ACHIEVEMENTS<br />

American Express was the first company to offer a<br />

loyalty program and the company recently<br />

reaffirmed its commitment to the program by<br />

launching in the <strong>Australia</strong>n market, Rewards<br />

Maximiser , a new credit card designed for<br />

consumers who want to accumulate and redeem<br />

more rewards points - faster.<br />

All Ame1ican Express Credit Cards- including<br />

American Express Gold Credit Card, American<br />

Express Blue Credit Card and the various cobranded<br />

credit cards - rated by CANNEX, an<br />

independent retail financial research company, have<br />

been awarded 'five stars' in its benchmarking of<br />

225 credit card products from over 70 financial<br />

institutions in <strong>Australia</strong>. Sta.J· ratings are not only<br />

used as an independent indicator of value but are<br />

recommended by the <strong>Australia</strong>n Consumers<br />

Association to consumers as a measure of product<br />

performance.<br />

CANNEX also rated American Express as the<br />

number one Credit Card for both high and moderate<br />

users.<br />

American Express was named the 2002 Credit<br />

Card Provider of the Year in the Personal Investor<br />

Magazine Awards.<br />

American Express received a ' 2003 Best<br />

Employer to Work for in <strong>Australia</strong>' award, published<br />

in the Financial Review's Boss Magazine in March<br />

2003.<br />

The Corporate Research Foundation chose<br />

American Express as one of only 29 organisations<br />

to be cited as the Best Companies to Work for in<br />

<strong>Australia</strong>. American Express was also once again<br />

one of the companies to receive the Employer of<br />

Choice for Women title. This is awarded to<br />

companies with a proven track record of advancing<br />

the status of women in the workforce.<br />

HISTORY<br />

The express and freight forwarding business upon<br />

which American Express was founded was an<br />

essential service, and its stagecoach, express<br />

wagon and railway car staff were rugged individuals<br />

whose duties were romanticised by the public.<br />

During the latter half of the 19' 11 Century, as<br />

Americans developed an intense appetite for travel,<br />

the company expanded its freight forwarding<br />

services into Europe. Americans abroad began to<br />

rely on the company for travel advice, and American<br />

Express increasingly became a travel services<br />

company.<br />

With World War I, American Express'<br />

international growth plans were quashed. When<br />

the United States entered the war in 1917, the<br />

railroads were commandeered for government<br />

purposes and the express and freight companies<br />

were consolidated into a single entity, known as<br />

the American Railway Express Company.<br />

However, with its strong money order sales<br />

and the introduction of the Travellers Cheque in<br />

1891, American Express had diversified its<br />

businesses enough to separate its growing travel<br />

and financial operations from the freight and<br />

express businesses and the company thrived<br />

despite the loss of its core business. In time the<br />

travel business flourished, and the company's<br />

14


financial businesses also performed well.<br />

By the early 1950s, American Express had<br />

solidified its position as one of the world's<br />

premier travel companies. Its offices around<br />

the globe - like the famous I I, rue Scribe<br />

site in Paris-were every American traveller's<br />

"home away from home." The company's<br />

travellers cheques became the best-selling<br />

product of their kind in the world, a position<br />

they still hold. American Express'<br />

international banking business expanded,<br />

and the company' s contracts with the U.S.<br />

government to provide banking services to<br />

military personnel and their families stationed<br />

outside the United States following World<br />

War II helped build a broader customer base<br />

for the company.<br />

But the 1950s also brought about another<br />

dramatic transformation of American<br />

Express, including the beginning of a<br />

continued presence in <strong>Australia</strong>. In 1954, the<br />

company opened a travel office located in a<br />

department store in Sydney. In the US in<br />

1958, American Express launched the<br />

American Express Card, which became the<br />

touchstone for the company's next<br />

transformation. The Card business, which<br />

had been viewed as a supplemental business<br />

unit, quickly became the company's core<br />

business.<br />

In 1974, <strong>Australia</strong>'s dollar became only<br />

the 16' 11 currency to have its own<br />

denominated card. In the 1970s and early 1980s,<br />

American Express diversified its holdings through<br />

acquisitions and became what the business press<br />

dubbed a 'financial supermarket'.<br />

During the early 1990s, American Express<br />

reinvented itself and focused almost singlemindedly<br />

on the brand and its application to<br />

those businesses. The company's U.S. financial<br />

planning unit was rebranded in 1995 as American<br />

Express Financial Advisors. In the late 1990s as<br />

the company experienced a period of market<br />

share gains across several of its businesses,<br />

American Express launched the world's first card<br />

rewards program, Membership Miles (later called<br />

Membership RewardsTM), which has spawned a<br />

host of followers.<br />

The company also began the process of<br />

extending its brand through<br />

a broad range of<br />

partnerships with companies<br />

sharing its core brand<br />

attributes of Quality,<br />

Customer Commitment,<br />

Security, Trust and Integrity<br />

which has seen American<br />

Express enter the new<br />

millennium with a strong and<br />

visible brand that is<br />

meaningful and respected by people a.J·ound the<br />

world.<br />

THE PRODUCT<br />

American Express values diversity and its products<br />

and services a.J·e as diverse as the company itself.<br />

The company's principal lines of business are<br />

organised into four groups: The Global Financial<br />

Services Group (which includes American Express<br />

Financial Advisors and American Express Bank);<br />

americanexpress.com.au<br />

CARL W VOLCKMANN<br />

29 NURSERY RD<br />

HUNTINGTON STAN<br />

the U.S. Consumer and Small Business Services<br />

Group (which includes its Credit and Charge Card<br />

businesses); the Global Corporate Services Group<br />

(which includes the company's Corporate Card and<br />

Corporate Travel businesses); and the Global<br />

Establishment Services and Travellers Cheque<br />

Group.<br />

Through these four groups, American Express<br />

serves the broad needs of its global customer base.<br />

Whether you are a student booking a tour through<br />

a travel service office, a small business owner or a<br />

multinational corporation, American Express'<br />

commitment to delivering a superior Customer<br />

Experience means customised service designed to<br />

meet your unique needs.<br />

RECENT DEVELOPMENTS<br />

In 2003, American Express<br />

acquired Rosenbluth<br />

International, a leading<br />

global travel management<br />

company with corporate<br />

travel operations in 15<br />

counu·ies and 2002 global<br />

business travel volume of<br />

more than $US3 billion. The<br />

combined 2002 volume of<br />

the two firms, $US 18.5<br />

billion, builds on American Express' global<br />

leadership position in corporate travel management.<br />

Also in 2003, Ame1ican Express and Travelscene<br />

announced a lead franchise agreement that will<br />

create one of the largest travel networks in Ausu·a!ia<br />

with more than 650 offices across every state and<br />

territory. Travel scene is a wholly owned <strong>Australia</strong>n<br />

travel franchise.<br />

Travelscene took on the day-to-day<br />

management of the American Express Travel Service<br />

network, while American Express continues<br />

to provide strategic direction, marketing and<br />

training support. The deal is intended to<br />

improve services for members of both<br />

networks, and to allow Travelscene to<br />

continue its outstanding growth.<br />

American Express also recently<br />

purchased the AMP credit card portfolio<br />

in <strong>Australia</strong> and New Zealand, adding<br />

some 160,000 new Cardmembers.<br />

PROMOTION<br />

American Express has long been known<br />

for its inventive advertising. From 'Mr<br />

Wong' and 'Don' t leave home without it'<br />

to the 'Membership Has Its Privileges'<br />

campaign of the 1980s or the highly visible<br />

participation of Jeny Seinfeld and Tiger<br />

Woods as American Express spokesmen<br />

in the 1990s and beyond, advertising has<br />

long played a role in American Express'<br />

sustained recognition.<br />

American Express takes an holistic and<br />

strategic view of its brand positioning and<br />

today's ' Long Live Dreams' brand<br />

campaign which was launched in 2002 in<br />

<strong>Australia</strong> reflects the company' s wide<br />

range of products and business solutions<br />

and the company's commitment to help its<br />

customers achieve their dreams by making<br />

the most oflife's possibilities.<br />

BRAND VALUES<br />

American Express has set itself the vision of<br />

becoming the world's most respected service brand.<br />

American Express is committed to making a<br />

positive difference in its clients' lives. No matter<br />

how they choose to define 'success,' whatever their<br />

aspirations, whatever they choose to accomplish,<br />

wherever their dreams take them, the company's<br />

will to win and sense of personal accountability<br />

will ensure that American Express is there to help.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

AMERICAN EXPRESS<br />

American Express has an outstanding tradition<br />

of assisting customers, but few people know<br />

just how outstanding!<br />

0 While on board a cruise ship in<br />

<strong>Australia</strong>, a Cardmember found that<br />

someone had removed the last ten<br />

pages of a novel she was reading. The<br />

Cardmember contacted Ame1ican<br />

Express, who faxed her a copy of the<br />

missing pages.<br />

0 A Platinum Cardmember wanted to buy<br />

two Siamese kittens. American Express<br />

found them after searching va.Jious<br />

breeders throughout <strong>Australia</strong> and<br />

delivered them straight to their new home.<br />

0 During a mission in the First Gulf Wa.J·,<br />

a Royal Air Force (RAF) pilot needed<br />

to make an unscheduled landing in<br />

Saudi Arabia to refuel. The petrol<br />

station attendant happily cha.J·ged the<br />

14,000 liu·es of fuel to the pilot's<br />

America.J1 Express Card.<br />

15


nse<br />

THE MARKET<br />

Ansell Limited is principally engaged in the<br />

worldwide manufacture and marketing of latexdipped<br />

and other natural and synthetic rubber<br />

products. Ansell operates in tlu·ee broad market<br />

segments, being Professional healthcare (surgical<br />

and examination gloves), Occupational healthcare<br />

(industrial hand protection) and Consumer<br />

healthcare (condoms, personal lubricants and<br />

household I DIY gloves). Ansell is recognised<br />

across the Americas, Europe, Middle East, Africa<br />

and the Asia Pacific region.<br />

Ansell<br />

chekmate<br />

12 ~UBR I CATED CONDOMO<br />

Extra Se nsitive<br />

with the community values of the day.<br />

Eric Ansell, (born in London in 1878) was at the<br />

time employed in the engineering section of the<br />

Dunlop factory. Under his direction, the condom<br />

plant was di sassembled. Eric Ansell purchased the<br />

machine and resigned from Dunlop to begin hi s<br />

own production of condoms in a small rented<br />

house in Richmond, Melbourne.<br />

In 1919, Ansell decided to expand into the<br />

production of rubber goods other than condoms.<br />

He leased bigger factory<br />

ACHIEVEMENTS<br />

In 2005, Ansell will be celebrating its centenary.<br />

From humble origins as a small, one-man operation<br />

in Richmond, Melbourne, Ansell has become one<br />

ofthe world's largest manufacturers and marketers<br />

of natural and synthetic latex gloves and natural<br />

latex condoms. Ansell cunently employs over 12,000<br />

people in more than 20 countries and is still<br />

growing. In I 00 years Ansell has become a truly<br />

global organisation, positioned as an innovative<br />

leader of latex technologies and able to move<br />

successfully into the twenty-first century.<br />

During the early 1960s, Ansell launched the<br />

Chekmate condom which has become an <strong>Australia</strong>n<br />

icon. In the 1980s, Ansell began selling the extensive<br />

LifeStyles condom range. Of all current condom<br />

users, 97 per cent 1 are aware of at least one of the<br />

Ansell Chekmate and LifeStyles brands. In 2003,<br />

Ansell's share of the total <strong>Australia</strong>n condom market<br />

was approximately 70 per cent. 2<br />

Ansell's household gloves have been an<br />

ongoing force in the marketplace since 1925.<br />

and the patriotic 'green & gold' Ansell Super Glove,<br />

together hold an approximate 28 per cent mar·ket<br />

share 4 in the regular glove segment, where there<br />

are six competing 'super' brands, plus private<br />

labels - totalling over l 00 different gloves.<br />

HISTORY<br />

In 1905, the Dunlop factory ceased the manufacture<br />

of condoms, a decision perhaps made in keeping<br />

In 2003, Ansell was the --~~~~"'=""'-~~~~'so;;:::--::-.:~~~<br />

market leader of gloves in<br />

grocery with an<br />

approximate 42 per cent3<br />

market share. The iconic<br />

Ansell 'Pink' Silverlined<br />

premises in Richmond to produce toy balloons.<br />

By 1925, the smalJ company was producing surgical,<br />

household and work gloves.<br />

ln the USA, interest in Ansell 's products had<br />

increased to such a degree that a local company<br />

was formed to service clients, and in 1967, Ansell<br />

won the <strong>Australia</strong>n Government's Export Award.<br />

On 6 June, 1969, Ansell was acquired by Pacific<br />

Dunlop (then called Dunlop <strong>Australia</strong>), with the<br />

company's assets being valued at $ 12.5 million. The<br />

acquisition by Dunlop provided Ansell with both<br />

the finance and expertise to expand its global<br />

activities. The first major breakthrough was the<br />

successful establishment of a glove factory in<br />

Melaka, Malaysia in 1975, based on the efficiencies<br />

of building a factory near to the source of the basic<br />

raw material - natural rubber.<br />

Since then, Ansell has continued<br />

to grow and develop in both the<br />

<strong>Australia</strong>n market, and in markets<br />

in the Americas, Europe, the<br />

Middle East, Africa and Asia<br />

Pacific, through acquisitions,<br />

factory establishment and<br />

innovative product development<br />

and marketing.<br />

16


THE PRODUCT<br />

Ansell focuses on providing high quality healthcare<br />

barrier protection against injury, infection and<br />

contamination. Ansell's products are used by<br />

millions of people in the healthcare industry,<br />

the home and other special environments,<br />

such as food preparation and<br />

microelectronics.<br />

In the consumer market segment,<br />

Ansell offers 22 branded<br />

household glove variants in the<br />

range of regular, disposable and Do It<br />

Yourself gardening gloves. Ansell also<br />

produces an extensive range of over four<br />

brands of condoms with eight flavours, four<br />

fragrances, seven colours, three textures and five<br />

different shapes to provide comfott and variety for<br />

the users of the product.<br />

RECENT DEVELOPMENTS<br />

Ansell continues to explore and develop<br />

new ways of providing the best<br />

possible healthcare barrier<br />

protection, and strives to raise<br />

market awareness of its<br />

products and services.<br />

Newly launched<br />

glove products<br />

contain<br />

moisturisers<br />

which<br />

actively<br />

benefit the<br />

wearer's skin quality<br />

during use. The new Ansell<br />

'Handy Care' disposable glove<br />

combines proven moisturising agents -<br />

chamomile and glycerine - to help improve the<br />

condition of the wearer's hands, while the soothing<br />

qualities nourish the wearer's skin through a<br />

specially formulated dry lining. In 2000, Ansell<br />

launched its innovative 'Fresh 'n' Dry' glove which<br />

is a general use, foamlined household glove<br />

providing enhanced perspiration absorption and<br />

comfmt. With the increase in popularity ofD IY jobs,<br />

Ansell supplies a range of DIY garden gloves, which<br />

provide strength, durability, comfmt and protection<br />

for the wearer.<br />

Technological innovations have allowed Ansell<br />

to create a number of different condom shapes, to<br />

make them easier to put on and for extra comfort<br />

during use. The Xtra Pleasure condoms have a<br />

generous oversized tip, to intensify stimulation for<br />

both partners. All Ansell condoms in <strong>Australia</strong> have<br />

been endorsed by "Sexual Health and Family<br />

Planning <strong>Australia</strong>" - one of the leading bodies<br />

promoting safe sex and STI prevention.<br />

PROMGnON<br />

In addition to above-the-line advertising, Ansell<br />

promotes its range of condoms and household<br />

gloves tluuugh its active participation in trade show<br />

exhibitions as well as direct representative contact<br />

with retail<br />

trade channels<br />

across <strong>Australia</strong>.<br />

One of Ansell's<br />

priorlttes is to offer<br />

educational, promotional<br />

a n d<br />

condom<br />

product<br />

support to the<br />

public healthcare<br />

community. Ansell has developed close<br />

relationships with the Sexual Health and Farnily<br />

Planning Association, Sex Worker Organisations<br />

and Sexual Health Education Providers, AIDS<br />

Councils, and is the longest standing suppmter of<br />

the AIDS Trust <strong>Australia</strong>. Ansell's partners in the<br />

public healthcar·e community provide important<br />

feedback which assists Ansell in producing the best<br />

products for its customers.<br />

In March each year Ansell suppmts the 'Clean<br />

Up <strong>Australia</strong>' campaign by supplying 30,000 pairs<br />

of gloves and cash for contribution.<br />

Ansell sponsors the website free-condomstuff.corri<br />

which has constantly updated<br />

competitions, free downloads, games, news and<br />

interesting information to help people select the<br />

right product. The site encourages people to take a<br />

responsible approach to sex while being at the same<br />

time fun and non-judgmental.<br />

Ansell sponsors a number of youth oriented<br />

events including surfing and snow boar·ding. It also<br />

actively promotes the proper use of condoms<br />

through targeting activity to relevant risk groups<br />

and by suppmting the work of important sexual<br />

health organisations.<br />

BRAND VALUES<br />

Ansell's vision is to<br />

be a global leader in<br />

broad-based healthcare protection, providing<br />

exceptional solutions, products and value to its<br />

customers. It already has the support and<br />

commitment of leading customers in over 100<br />

countries, and continues to expand its business.<br />

In the Professional Healthcar·e mmket (Medical<br />

Gloves), Ansell is recognised as a premium-quality<br />

manufacturer and product innovator, with leadingedge<br />

science and technology. In addition, Ansell is<br />

the recognised global leader in Occupational Health<br />

and Safety gloves, and its Consumer Healthcme<br />

division is recognised for bringing unique and<br />

innovative household gloves and condom products<br />

tommket.<br />

www.ansell.com<br />

1<br />

Roy Morgan. July 2003<br />

~Co mbin ed Aztec & Ansell data Ju ly 2003<br />

·'Ansell MAT 26/ 10/03<br />

'Ansell MAT 26/ I 0/03<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

ANSELL<br />

0 In the late '40s Ansell produced latex<br />

castrating tings for sheep.<br />

0 Ansell produces custom-made medical<br />

gloves for surgeons with special hand<br />

requirements.<br />

0 The old factory far;:ade in Richmond,<br />

Melbourne is still star1ding and is now<br />

occupied by a grocety wholesaler.<br />

0 Ansell broke the world record for the<br />

single biggest shipment of condoms,<br />

with 213,600,000 sent to Brazil in 2003.<br />

0 Ansell was an official provider at the<br />

2000 Sydney Olympics and<br />

approximately 100,000 condoms were<br />

supplied to the athletes' village.<br />

0 Ansell was a sponsor of the Gay<br />

Garnes in Sydney 2002.<br />

0 Ansell's household gloves are<br />

mar·keted throughout the world under<br />

a long-standing relationship with<br />

Freudenberg & Co, a leading<br />

European consumer products<br />

company.<br />

17


THERE IS NO SuBSTITUTE<br />

FOR QUAliTY<br />

THE MARKET<br />

Biscuits and snacks are two oflife's little<br />

pleasures. We offer them to our<br />

friends when they pop in for<br />

a visit, or we treat ourselves<br />

to a nibble on a quiet night<br />

in.<br />

For over 135 years,<br />

Arnott' s has been making<br />

great food that everyone loves,<br />

every day, and will continue<br />

to do so for generations to<br />

come.<br />

Arnott's is the market leader of the<br />

<strong>Australia</strong>n biscuit category and the number<br />

two player in the <strong>Australia</strong>n snack foods category.<br />

Arnott' s grows the biscuit category through<br />

product and flavour innovation, and by offering<br />

consumers great-tasting foods that suit any<br />

occasion.<br />

As the palate of the <strong>Australia</strong>n population<br />

evolves, Arnott's has anticipated emerging trends<br />

and created a range of biscuits and snack foods<br />

that cater to consumer tastes.<br />

Two trends currently affecting the biscuit market<br />

are the demand for snacks that are 'better for you',<br />

and can be eaten on-the-go.<br />

Trends cun·ently affecting the snack food market<br />

are the demand for more 'exotic' flavour<br />

combinations and the demand for snacks with a<br />

distinct 'flavour hit'.<br />

Anticipating and responding to trends is<br />

Arnott's strength. With its product and<br />

flavour innovation, and commitment to<br />

making delicious foods, Arnott's has<br />

been one of <strong>Australia</strong>'s favourite food<br />

companies for more than a century.<br />

ACHIEVEMENTS<br />

Millions of <strong>Australia</strong>ns have<br />

grown up with Arnott' s<br />

over the past 135<br />

years. For them,<br />

Arnott's is more<br />

than a biscuit<br />

company - it's a<br />

piece of <strong>Australia</strong>' s<br />

history and a<br />

national icon. The<br />

famous parrot<br />

trademark has a<br />

place in 97 per cent<br />

of <strong>Australia</strong>n<br />

households, and the<br />

leading<br />

Arnott's chocolate<br />

biscuit brand, Tim Tam,<br />

is a particular favourite<br />

with 27 million packs<br />

bought each year.<br />

In 2002, Arnott's<br />

acquired Snack Brands<br />

<strong>Australia</strong>, and added a<br />

number of <strong>Australia</strong>'s<br />

favourite snack brands<br />

to its portfolio -<br />

Cheezels, Thins<br />

andCC's.<br />

William Arnott began selling pies<br />

to ships docking in Newcastle<br />

in 1865, Arnott's has grown<br />

steadily, with more than<br />

50,000 <strong>Australia</strong>ns<br />

working<br />

for Arnott's<br />

over the past<br />

century. Today,<br />

Arnott's<br />

employs more<br />

than 3,300<br />

people <strong>Australia</strong>-wide,<br />

operates six<br />

bakeries and<br />

kitchens in<br />

<strong>Australia</strong> and<br />

invests more than $145 million per year on locally<br />

produced ingredients to make its biscuits and snack<br />

foods.<br />

With additional bakeries at Lae and Port Moresby<br />

in Papua New Guinea, and in Bekasi in<br />

Indonesia, Arnott's ranks among the<br />

world's largest food companies.<br />

HISTORY<br />

In 1865, WilliamArnottopened<br />

a biscuit bakery in Hunter<br />

Street, Newcastle, baking pies<br />

and biscuits to sell to coal<br />

ships that docked at the port.<br />

In 1877, the bakery moved to<br />

new premises and within three<br />

years employed 50 people and<br />

produced 1.5 tonnes of biscuits daily.<br />

By the following decade, Arnott' s was<br />

distributing to Sydney. In 1892 it began its first<br />

major advertising campaign, inviting parents to<br />

submit photographs of healthy children fed on<br />

Arnott's biscuits. The<br />

campaign, ' Living<br />

Pictures' , ran for more<br />

than 60 years.<br />

Demand for Arnott's<br />

biscuits grew rapidly,<br />

and in 1908 the<br />

company opened a new<br />

bakery on a two-hectare<br />

site at Homebush in<br />

Sydney, part of which is<br />

still occupied by<br />

Arnott's Asia Pacific<br />

regional headquarters.<br />

During World War ll, Arnott's helped feed the<br />

armed forces of both <strong>Australia</strong> and the United<br />

States, producing a range of sweet, energy-giving<br />

biscuits for the army and thick, dry biscuits for the<br />

navy that would keep for months at sea. Production<br />

of biscuits for civilian consumption was severely<br />

restricted, with just 19 varieties offered.<br />

In 1997,Arnott's becameapartoftheCampbell<br />

Soup Company family.<br />

With the 2002 acquisition of Snack Brands<br />

<strong>Australia</strong>, the number two player in the savoury<br />

snacks market, Arnott's added a diverse range of<br />

snack foods to its portfolio. The products span a<br />

number of segments in the snack food category<br />

including Adult Indulgence, Family Favourites and<br />

Better for You.<br />

18


THE PRODUCT<br />

Arnott's offers consumers greater choice than ever<br />

before, with a range of more than 120 varieties of<br />

sweet and savoury biscuits and crackers, and more<br />

than 60 varieties of savoury snack foods. Many of<br />

these great Arnott' s products are exported to more<br />

than 25 countries, including Canada and the UK.<br />

In <strong>Australia</strong>, the Arnott's name is synonymous<br />

with quality. Its best-selling chocolate biscuit<br />

varieties, Tim Tam and Mint Slice biscuits, are<br />

market leaders in the adult indulgence segment of<br />

the biscuit category, while Scotch Finger biscuits,<br />

Jatz and Savoy crackers and many others remain<br />

firm family favourites.<br />

Arnott's Shapes is the biggest Arnott's brand,<br />

with annual sales of almost $100 million- that's<br />

almost 60 million packs of Shapes sold a year!<br />

Arnott's Thins are market leaders of the thinsliced<br />

chip segment, and Cheezels is an <strong>Australia</strong>n<br />

favourite, joining Tim Tam biscuits in many 'care<br />

packs' sent to relatives overseas.<br />

All Arnott' s products are made using the finest<br />

ingredients. Wherever possible, Arnott's<br />

supports local growers, buying potatoes from<br />

various locations around the eastern seaboard of<br />

<strong>Australia</strong>, wheat from south-eastern New South<br />

Wales and northern Victoria, and sugar from the<br />

central coast of Queensland.<br />

Arnott's is the largest user of 'soft' flour in<br />

<strong>Australia</strong> and has supported the wheat<br />

industry by assisting to develop<br />

strains of wheat which produce high<br />

yields and are resistant to drought and<br />

disease.<br />

RECENT DEVELOPMENTS<br />

During 2003, Arnott's launched<br />

exciting new products into the biscuit<br />

and snack food categories.<br />

In December 2002, the Snack Right<br />

range was relaunched with new pack<br />

designs and delicious new flavours.<br />

The range of fruity flavours is<br />

available in Fruit Rolls, Fruit Bars, Fruit<br />

Slices and Fruit Bites, and all contain<br />

more than 35 per cent real fruit.<br />

Arnott's Emporio Cafe Selection,<br />

launched in 2001 , has grown the premium sweet<br />

biscuit category. In May 2003, Emporio went one<br />

step further with the Emporio Savoury Selection, a<br />

premium range of savoury biscuits perfect for any<br />

entertaining occasion.<br />

Continuing with savoury innovation, Tiny<br />

Teddy Savoury hit supermarket shelves in<br />

November 2003. The range, designed specifically<br />

for kids, is available in three mild but tasty flavours<br />

-Cheese, Pizza, and Cheese & Bacon.<br />

Not only is Tiny Teddy pioneering the kids'<br />

biscuit market with its savoury range, but the brand<br />

is exploring a new world of licensing. Four Tiny<br />

Teddy books are now available<br />

in Woolworths and newsagents<br />

around <strong>Australia</strong>, and a range of<br />

six Tiny Teddy plush toys was<br />

launched into stores in early<br />

2004.<br />

In July 2003, Arnott's Dippers<br />

were launched in Victoria and<br />

Tasmania, and are now available<br />

nationally. The range of eight<br />

products combines favourite<br />

Arnott' s biscuits with delicious<br />

cheese and salsa dips. Arnott's<br />

Dippers are great snacks to have<br />

on the go, anytime.<br />

Arnott' s recently<br />

relaunched two key<br />

snack food brands -<br />

Arnott's Thins and<br />

CC's. The Arnott's<br />

Thins relaunch<br />

introduced three new<br />

flavours into the range - Honey &<br />

Soy,SweetChilli&SourCream,andHoney 'n' Ham,<br />

giving chip lovers an exotic new flavour hit.<br />

CC' s were launched over 20 years ago, and<br />

remain an <strong>Australia</strong>n favourite. In September 2003,<br />

the packaging was given a facelift and now includes<br />

recipes on pack, making this a sociable, entertaining<br />

and versatile product.<br />

PROMOTION<br />

Innovation underpins Arnott's products and<br />

marketing. Arnott's invests in advertising not only<br />

new products but old favourites as well, a tradition<br />

that started with the long running advertising<br />

campaign,<br />

'L iving<br />

Pictures'.<br />

New products<br />

are promoted<br />

through<br />

an integrated<br />

combination of<br />

advertising,<br />

public relations<br />

and sampling, to name but a few<br />

channels of communication.<br />

This allows consumers to hear<br />

about products in a number of<br />

different ways, and to try before<br />

they buy!<br />

During 2003, Arnott's two<br />

biggest biscuit brands ran major<br />

consumer promotions. During<br />

March, Shapes launched the<br />

Tongue Test promotion, where<br />

consumers could win prizes from<br />

a prize pool worth more than $2<br />

million.<br />

In May 2003, the Tim Tam<br />

Win a Wish promotion hit the<br />

supermarket shelves, where<br />

consumers had the chance to win<br />

one of hundreds of prizes<br />

instantly, including everyone's<br />

favourite wish - a $5000<br />

holiday!<br />

A favourite with consumers are<br />

Arnott's Christmas tins. Few companies<br />

can create a market specifically for their<br />

own brand packaging, but Arnott's has<br />

done exactly that each Christmas for the<br />

past 100 years by releasing a range of<br />

special commemorative biscuit tins. The<br />

company's instantly identifiable parrot<br />

logo and characteristic bright red<br />

coloming lift brand recall, and its elegant<br />

packaging adds weight to the company's<br />

famous motto, "There is No Substitute<br />

for Quality".<br />

BRAND VALUES<br />

Arnott's continues to live by the motto<br />

introduced by William Arnott in 1906, "There is No<br />

Substitute for Quality". The biscuits are made from<br />

high quality ingredients and Arnott's employs some<br />

of the best bakers and food experts in the country.<br />

Arnott's offers its people the opportunity to work<br />

in a company that is vibrant, exciting and committed<br />

to continued growth in <strong>Australia</strong> and overseas.<br />

But most of all, Arnott's is committed to<br />

continuing to provide <strong>Australia</strong>ns with delicious<br />

food that will be enjoyed every day.<br />

www.arnotts.com<br />

I<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

ARNOn'S<br />

0 Arnott's famous Milk Arrowroot was<br />

first baked in 1888.<br />

0 In the <strong>Australia</strong>n War Memorial,<br />

Canberra, there is an Arnott's biscuit<br />

tin on which is a handwritten message<br />

from a World War I soldier to his loved<br />

ones.<br />

0 How did the SAO get its name? Some<br />

believe it's the name of a ship that<br />

sailed into Newcastle, others that it<br />

stands for 'Salvation Army Officer' -a<br />

reference to William Amott's son,<br />

Arthur, who was a committed Salvo.<br />

0 More than 900 million Tiny Teddy<br />

biscuits are eaten every year!<br />

19


THE MARKET<br />

<strong>Australia</strong>'s messaging and delivery marketplace has<br />

changed dramatically over the last decade, creating<br />

a range of competitive pressures and new busi ness<br />

challenges for <strong>Australia</strong> Post in its core markets.<br />

In essence, <strong>Australia</strong> Post is focused on tlu·ee<br />

main markets:<br />

•<br />

•<br />

•<br />

delivering letters<br />

handling parcels<br />

retailing (including financial services).<br />

The corporation's business strategy remains<br />

relatively straightforward - it is to defend its position<br />

in these core markets and extend into<br />

complementary or substitute business areas where<br />

there is the potential for growth and profits.<br />

<strong>Australia</strong> Post's main challenge has come from<br />

new electronic messaging and distribution<br />

technologies, such as email and the Internet. The<br />

corporation is responding to this challenge by<br />

establishing a leadership position in substitute<br />

markets (such as electronic bill presentment and<br />

payment, through Postbillpay) and by leveraging<br />

its core competencies in new business areas (such<br />

as the establishment of an integrated logistics<br />

service, called Post Logistics).<br />

ACHIEVEMENTS<br />

Over the last I 5 years, <strong>Australia</strong> Post has<br />

transformed its image, corporate culture and<br />

operati ons to emerge as one of <strong>Australia</strong>' s most<br />

successful and reputable businesses. The modern<br />

transformation of <strong>Australia</strong> Post effectively began<br />

in 1989 when <strong>Australia</strong> Post became a Government<br />

Business Enterprise (GBE).<br />

As a GBE, the newly formed corporation began<br />

to implement an intensive program to streamline<br />

and upgrade all aspects of operations and to<br />

strengthen the <strong>Australia</strong> Post brand. As a result,<br />

profitability has increased more than seven times<br />

since 1989 and the corporation's productivity<br />

improvements have been double the national<br />

average over the same period.<br />

<strong>Australia</strong> Post's improved commercial and<br />

customer focus is most clearly evident in its<br />

nationwide network of post offices. The<br />

corporation's post offices have been transformed<br />

over the last decade into modern, profitable, salesoriented<br />

retail outlets.<br />

Significantly, the commercial transformation of<br />

<strong>Australia</strong> Post has been achieved without<br />

sacrificing the corporation's reputation as a trusted<br />

and reliable provider of community services. Today,<br />

the corporation is regularly rated among the most<br />

reputable organisations in the country. In the Good<br />

Reputation Index, published in Fairfax newspapers,<br />

<strong>Australia</strong> Post has been rated first (in 200 I) and<br />

second (in 2002) out of <strong>Australia</strong>'s top I 00<br />

corporations.<br />

Internationally, <strong>Australia</strong> Post is among the<br />

western world's best pe1forming postal enterprises,<br />

providing the highest level of service while<br />

maintaining one of the lowest basic letter rates in<br />

the world.<br />

HISTORY<br />

The Post Office is the oldest surviving conunercial<br />

organisation in <strong>Australia</strong>. Its origins can be traced<br />

back to 1809 when former convict Isaac Nichols<br />

was appointed as the fu·st Postmaster and opened<br />

a post office in his home in George Sb·eet, Sydney.<br />

Ausb·alia Post's formal conunercial origins lie in<br />

the first postal act of 1825, which enabled the New<br />

South Wales governor to fix postage rates and<br />

appoint postmasters outside of Sydney.<br />

With the Federation of <strong>Australia</strong>n colonies in<br />

1901 , a nationally integrated Postmaster General's<br />

Department (the PMG) was establi shed, with<br />

responsibility for the nation's mail and telephone<br />

services. <strong>Australia</strong> Post itself was established in<br />

1975 out of the PMGto provide the nation's postal<br />

service.<br />

It was the <strong>Australia</strong>n Postal Corporation Act of<br />

1989 d1at made Post a GBE, with a board of directors<br />

and a cha.Jter to operate conunercially while meeting<br />

a range of Community Service Obligations (CSOs).<br />

Under the CSOs, <strong>Australia</strong> Post is conunitted to<br />

providing a standard letter service to all <strong>Australia</strong>ns<br />

at a uniform price. To ensure that these obligations<br />

are met, the corporation is required to achieve a<br />

number of petformance standards relating to public<br />

access to the postal service and the frequency and<br />

reliabi li ty of delivery. In 2002-03, the costs<br />

associated with meeting the CSOs are estimated to<br />

have been $90.5 1nillion.<br />

THE PRODUCT<br />

<strong>Australia</strong> Post provides a full range of letter and<br />

parcel services to all pa.Jts of the nation, including<br />

rural and remote 3.1·eas. It also provides a range of<br />

related services, including electronic bulk mail<br />

handling, bill payment, financial services, office<br />

products, Internet fulfilment services, express<br />

delivery services, and philatelic products and<br />

services.<br />

20


<strong>Australia</strong> Post handles an average of 19 million<br />

mail articles every working day and sets the<br />

international benchmark for reliable letter deli very<br />

petformance. In 2002-03, Post delivered 96.5 per<br />

cent of letters early or on time.<br />

Post also runs the nation's most extensive retail<br />

network, serving an average 1.09 million customers<br />

every business day. Tlu·ough this retail network,<br />

the corporation handles more than 170 million billpayment<br />

transactions and 33 million banking<br />

transactions each year.<br />

RECENT DEVELOPMENTS<br />

The face of <strong>Australia</strong> Post has changed significantly<br />

over recent years with many of its nea.J·Iy 4,500 postal<br />

outlets relocated, reconfigured and re-equipped<br />

with purpose-built electronic counter technology.<br />

The introduction of Post's new counter technology,<br />

netPOS, is increasing real-time, on-line transaction<br />

processing capabi li ty and opening up new<br />

business opportunities.<br />

The corporation has adapted its bill-pay ment<br />

service, Postbillpay, by adopting new payment<br />

methods, such as telephone and Internet-based<br />

payment. Thirty-five new bill pay principals joined<br />

the Postbillpay system in 2002--03, taki ng the total<br />

number of principals to 5 II. During the yea.J·, the<br />

corporati on processed over 170 million bills worth<br />

a staggering $73 billion.<br />

Banking is another imp01tant aspect of <strong>Australia</strong><br />

Post's complementary services business. Post is<br />

not a bank, but through its giro Post banking service<br />

Post handles deposits, withdrawals, credit card<br />

payments, account balance inquiries and new<br />

account applications for 76 participating financial<br />

institutions. In 2002--03 alone, more than 33 tnillion<br />

giroPost transactions were handled nationwide.<br />

With mail volumes plateauing over recent yea.J·s,<br />

<strong>Australia</strong> Post has invested heavily in overhauling<br />

its mail processing equipment to reduce costs,<br />

improve productivity and ensure that physical mail<br />

remains a price-competitive option in the messaging<br />

ma.J·ket.<br />

In the mid-1990s, the corporation emba.J·ked on<br />

its FuturePost program to equip its mail centres<br />

with machinery that automated the address reading,<br />

sorting and handling of small letters. In 2003, Post<br />

completed the in stallation of world-leading<br />

machinery that automates the processing of la.J·ge<br />

letters. The progra.Jn to completely overhaul Post's<br />

mail-processing equipment will be completed in<br />

2004, with the installation of three new parcelhandling<br />

machines in Melbourne, Sydney and<br />

Brisbane.<br />

PROMOTION<br />

Over the last two years,<br />

Post has focused on<br />

segment and marketspecific<br />

promotion,<br />

pa.Jticu!a.J·!y in relation to<br />

key products and subbrands,<br />

such as<br />

Express Post, Postpak<br />

and Postbillpay.<br />

A hi gh level of<br />

awareness of <strong>Australia</strong><br />

Post's offering<br />

continues to be<br />

reinforced through<br />

corporate and productspecific<br />

television<br />

campaigns, as well as<br />

customer-focused campaigns using all forms of<br />

media.<br />

In conjunction with its brand image campaign,<br />

Post also runs specific campaigns, usually in the<br />

press, to provide the conununity with information<br />

on its delivery record, financial pe1formance and<br />

compliance with the Customer Service Cha.Jter.<br />

BRAND VALUES<br />

The <strong>Australia</strong> Post logo remains one of the nation's<br />

most pervasive and widely recognised corporate<br />

brands. It was designed in 1975 when the<br />

Postmaster General's Depa.Jtment was split to create<br />

Telecom and <strong>Australia</strong> Post. The logo shows a<br />

postal horn, once used by European 'posties' to<br />

announce mail delivery, and a circle illustrating the<br />

global reach of the postal service. The colour red<br />

has long been associated with postal services in<br />

Commonwealth countries.<br />

It is a brand that represents trust, convenience,<br />

integrity, responsibility and value. It is also seen as<br />

a quintessentially <strong>Australia</strong>n brand. It is perceived<br />

as quiet, reliable, honest and conununity-minded.<br />

Leveraging these very pos iti ve brand<br />

characteristics and building on its core<br />

competencies, <strong>Australia</strong> Post aims to continue to<br />

create new products and services that meet the<br />

needs of all <strong>Australia</strong>n consumers, conununities and<br />

business customers.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

AUSTRALIA POST<br />

0 Post's annual tmnover in 2002--03 of<br />

$3.97 billion generated an operating<br />

profit before tax of$462 million.<br />

0 Post delivered 5.26 billion mail atticles<br />

in 2002--03 to 9.4 million Ausb·alian<br />

addresses.<br />

0 Post delivered 96.5% of letters on time<br />

orea.J·ly.<br />

0 Post's cumulative labour productivity<br />

improvement over the last five years<br />

has been 23.3 per cent, which is double<br />

the national average.<br />

0 Over two-thirds of Post's profit comes<br />

from its non-reserved services<br />

(products and services outside of the<br />

monopoly on letters).<br />

0 Post employs 35,427 full -time and pa.Jttime<br />

staff.<br />

2 1


THE MARKET<br />

Tourism contributes approx $31.8 billion<br />

(4.5 per cent) to the economy each year<br />

and provides over 549,000 jobs ( 6 per cent<br />

of total employment and more than any<br />

other sector, except manufacturing).<br />

In the last few years the industry has<br />

suffered from the effects of terrorism,<br />

bushfires, droughts, the collapse of<br />

Ansett, the threat of SARS and more. Best<br />

Western <strong>Australia</strong> was well positioned to<br />

weather these times because domestic<br />

travel increased and people rediscovered<br />

the traditional driving holiday - a key<br />

market, with the majority of Best Western<br />

<strong>Australia</strong> properties located on popular<br />

driving routes.<br />

Great <strong>Australia</strong>n Drives was<br />

developed along with other special<br />

interest products to cater to the diverse<br />

interests of guests.<br />

While traditionally the corporate market<br />

represented over half of Best Western <strong>Australia</strong><br />

guests, the leisure market has recently grown<br />

strongly.<br />

ACHIEVEMENTS<br />

In 46 years, the organisation has grown from 11 to<br />

more than 260 prope1ties and now Best Western is<br />

the most recalled accommodation brand in<br />

<strong>Australia</strong>.*<br />

Almost 90 per cent of guests were "very<br />

satisfied" or "satisfied" with their guest room on<br />

their last visit to a Best Western <strong>Australia</strong> property,<br />

compared to the AEC <strong>Australia</strong>n accommodation<br />

benchmark of 77 per cent.* Meanwhile, the brand<br />

equity of Best Western for 2002/03 increased 20.7<br />

per cent compared to the previous year':' and<br />

combined revenue generated by marketing<br />

programs for Best Western properties increased 50<br />

per cent.<br />

Compared to competitor establishments, both<br />

business and leisure travellers indicated that Best<br />

Western <strong>Australia</strong> establishments were of a higher<br />

standard of quality and provided better service. In<br />

addition, Best Western <strong>Australia</strong> was rated to have<br />

a better appearance and to be less expensive.*<br />

Since 2002, all Best Western properties around<br />

the globe offer BestRequests - frequently<br />

requested guest amenities and services in addition<br />

to the already stringent global Quality Assurance<br />

program which involves over 200 quality checks.<br />

Best Western launched the hotel industry's most<br />

extensive and complete listing of properties on the<br />

Internet in 1995, making it the largest hotel brand<br />

represented on the global computer network. Today,<br />

more than 35 per cent of the company's total<br />

bookings are made via the Best Western website.<br />

Best Western <strong>Australia</strong> pioneered swipe<br />

technology in the hotel sector in 1998, providing<br />

the benchmark for all competitors.<br />

In 2002 Best Western was voted as the "Best<br />

Hotel Chain" by UK travel agents at the Travel<br />

Weekly awards in London and by Europe's<br />

Recommend magazine readers choice awards.<br />

HISTORY<br />

In 1957, eleven moteliers formed a standards<br />

organisation called the Motel Federation of<br />

<strong>Australia</strong> (MFA). Foundation President, Lou<br />

Pimblett stated that it was "only the forerunner of<br />

very big things in motels". This vision was more<br />

prophetic then they could ever have imagined.<br />

In 1975, the name "MFA Homestead" was<br />

introduced and The Travel Club, Best Western's<br />

first loyalty program, was launched.<br />

In the same year a proposal was<br />

received from Best Western in the USA<br />

as it took the first step toward global<br />

expansion. In 1981, Homestead Motor Inn<br />

formally affiliated with Best Western. The<br />

name change from Homestead to Best<br />

Western was gradual. First came<br />

"Homestead- Best Western", then "Best<br />

Western Homestead" and finally Best<br />

Western <strong>Australia</strong> was born on 15'h March<br />

1989. This put the 'International' into 'Best<br />

Western International' and began the<br />

process that would eventually make Best<br />

Western one of the pre-eminent names in<br />

global hospitality.<br />

Best Western remains a unique<br />

association owned by its members. As a<br />

co-operative, revenue is spent on<br />

developing and enhancing the Best<br />

Western brand and promoting properties<br />

as well as offering increased services to members,<br />

rather than generating profit for external<br />

shareholders.<br />

THE PRODUCT<br />

Best Western is the world's largest hotel company<br />

operating under a single brand with more than 4000<br />

independently owned and operated hotels. It offers<br />

309,562 quality guestrooms in over 80 countries.<br />

Through Best Western, independent operators<br />

have access to benefits such as branding, sales<br />

...,<br />

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and marketing, suppo1t services and government<br />

and industry lobbying.<br />

In <strong>Australia</strong>, Best Western offers approximately<br />

260 three- to four-and-a-half star hotels, motels,<br />

resorts and apartments. Every Best Western<br />

property is unique, which provides a range of<br />

packages to meet all tastes.<br />

Best Western <strong>Australia</strong> participates in the Qantas<br />

Frequent Flyer program, is the only hotel chain to<br />

offer Fly Buys points and provides guests with its<br />

own program (Gold Crown Club International)<br />

offering rewards at any Best Western property<br />

worldwide.<br />

All Best Western properties undergo a stringent<br />

quality assurance program and<br />

are required to offer<br />

BestRequests. Through<br />

research, Best Western identified<br />

the most frequently requested<br />

amenities and services. The<br />

standard is designed to provide<br />

reassurance that guests will<br />

receive the same amenities without changing the<br />

character of individual properties.<br />

RECENT DEVELOPMENTS<br />

Best Western <strong>Australia</strong> launched the 'Gold Crown<br />

Club International' loyalty program in 2003. This is<br />

a global frequent guest program designed to reward<br />

business and leisure guests for their loyalty. It<br />

comprises three tiers - Gold, Platinum and<br />

Diamond.<br />

Best Western <strong>Australia</strong> unveiled a new look<br />

website in late 2003. Features include a clean fresh<br />

new look, easier navigation, a newsroom and a<br />

career opportunities section, plus the presentation<br />

of new properties to the Best Western chain in<br />

<strong>Australia</strong> on the homepage.<br />

In April 2003, Best Western <strong>Australia</strong><br />

announced sponsorship of See <strong>Australia</strong>. The<br />

core objective is "to stimulate growth in domestic<br />

tourism and in particular regional tourism". Only<br />

60 per cent of <strong>Australia</strong>ns took a holiday in 1991.<br />

The campaign helped to increase this to 70 per<br />

cent in 2002. An impressive 80 per cent of<br />

<strong>Australia</strong>ns recall its brand and message - "Go<br />

on. Get out there. See <strong>Australia</strong>.".<br />

All But Western accom modation must<br />

Juu ~ a ll<br />

go through ZOO qu alit y checks.<br />

Ill 779 o r Yh lt .. ·ww.bu twu urn.com.au<br />

Wi: 'll tMk e cart o f )·o u<br />

Best Western <strong>Australia</strong> launched Wine<br />

Discovery, which offered cellar door specials at over<br />

100 wineries, followed by the Kids Discovery Club<br />

to make those family road trips less stressful. The<br />

most recent addition is Golf Discovery.<br />

In 2002, Best Western rolled out MemberWeb<br />

globally - an internet based reservation system so<br />

property owners and managers could adjust rates<br />

and inventory at anytime from anywhere. Another<br />

component of this was BestCheque, a global<br />

guaranteed travel agent commission payment<br />

system which strengthens ties with the travel<br />

industry and grows business from this sector.<br />

PROMOTION<br />

Anyone driving across<br />

<strong>Australia</strong>, watching a movie,<br />

doing the weekly shopping,<br />

going to the beach, reading a<br />

paper or just staying at home in<br />

front of the television is bound<br />

to come across a Best Western<br />

<strong>Australia</strong> promotion. As a co-operative<br />

organisation, Best Western <strong>Australia</strong> is committed<br />

to promoting the brand and prope1ties to all market<br />

segments including consumers, travel agents,<br />

wholesalers and operators.<br />

Regional radio campaigns, cinema ads and<br />

newspaper advertising promote products and<br />

services to consumers. Best Western <strong>Australia</strong> is<br />

the prefen·ed accommodation partner of <strong>Australia</strong>'s<br />

most watched television travel program 'Getaway'.<br />

Partnerships with organisations such as the<br />

Great <strong>Australia</strong>n Gazetteer and Avis Car Rentals<br />

ensure Best Western promotions reach a range of<br />

markets. Valuable brand exposure and revenue is<br />

achieved through strategic sponsorships such as<br />

NSW Country Rugby Union and Victorian Country<br />

Football League.<br />

Best Western <strong>Australia</strong> also conducts<br />

promotions through loyalty programs, and<br />

individual properties promote specials through<br />

targeted direct mailings to Best Western Gold Crown<br />

Club International cardholders.<br />

Best Western <strong>Australia</strong> often participates in joint<br />

promotions with other brands such as American<br />

Express and Bushells. The chain is the preferred<br />

accommodation partner of Travelmate and utilises<br />

this successful website to showcase its products<br />

and services. The Best Western <strong>Australia</strong> website<br />

includes mini websites for each property so they<br />

can promote their own special 'Hot Deals'.<br />

Participating in the 'World's Largest Thank<br />

You', a global Best Western initiative in which staff<br />

visit and thank local business who suppmt them,<br />

Best Western works closely with travel agents,<br />

wholesalers and operators. Advertising in trade<br />

publications, a presence at trade shows and<br />

brochure suppmt ensure exposure.<br />

An ongoing PR campaign targeted at<br />

newspapers and travel media ensures Best Western<br />

is mentioned in a range of publications.<br />

Best Western for a Better World is an annual<br />

global event. Best Western staff and properties give<br />

something back to the communities in which they<br />

do business by doing things like helping to build a<br />

playground for local children in Alice Springs or<br />

donating Kids Discovery packs to children's<br />

hospitals across the country at Christmas. Best<br />

Western <strong>Australia</strong> also supports charities like the<br />

CanTeen LifeCycle, Flight for Sight, Leukaemia<br />

Foundation and Cure our Kids.<br />

Adve1tising and PR Toolkits ar-e provided to all Best<br />

Western properties to assist them with their own<br />

individual promotional activities, saving time and money<br />

while allowing them to leverage national efforts and<br />

deliver the brand in a consistent and cohesive<br />

fashion.<br />

BRAND VALUES<br />

Globally Best Western is known as the World's<br />

Lar·gest Hotel Chain, but in <strong>Australia</strong> the brand<br />

represents the essence of <strong>Australia</strong>n hospitality.<br />

Nurhlred locally on the goodwill, local knowledge,<br />

humour and tenacity of the group's har·dworking<br />

independent owner/operators, Best Western<br />

<strong>Australia</strong> is an ongoing success story.<br />

Its history and the member culture drive Best<br />

Western <strong>Australia</strong> brar1d values. Best Western<br />

<strong>Australia</strong> strives to create engaging relationships<br />

(with guests, members, staff, business partners).<br />

This is reflected by a global quality assurance<br />

program, loyalty programs and above all genuine,<br />

warm hospitality. It is these values that differentiate<br />

Best Western <strong>Australia</strong> from competitors and these<br />

values are used for marketing and strategic<br />

planning.<br />

The 2002 Best Western <strong>Australia</strong> tagline "We' II<br />

take care of you" encompasses Best Western<br />

<strong>Australia</strong>'s core values.<br />

., AEC Market Research 2002 & 2003.<br />

Thanks to Life Members Trevor Anderson and Jim White (<strong>Australia</strong>n Hospitality<br />

Digest) for contributing much of the hi s10rical informmion.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

BEST WESTERN<br />

0 An average of 4,166 page impressions<br />

ar·e viewed on the Best Western<br />

<strong>Australia</strong> website<br />

(www.bestwestern.com.au) every hour.<br />

0 To visit every Best Western prope1ty<br />

in the world for one night would take<br />

over 11 years, and to stay at least one<br />

night in every Best Western room in<br />

<strong>Australia</strong> would take 24.66 year·s.<br />

0 There ar·e 120 recognised wine regions<br />

in <strong>Australia</strong>; Best Western has<br />

prope1ties in 102 of them.<br />

0 There are over 16,000 companies in<br />

<strong>Australia</strong> using the Best Westem Gold<br />

Crown Club International program.<br />

0 Best Western guests use 78,840<br />

kilograrns (78.84 tonnes) of soap each<br />

year· at Best Western prope1ties in<br />

<strong>Australia</strong>.<br />

0 Each night 1.23 million pillows, 1.29<br />

million towels and 315,000 televisions<br />

are at the disposal of Best Western<br />

guests.<br />

23


THE MARKET<br />

<strong>Australia</strong>ns read as many<br />

magazines per capita as any other<br />

nation in the world. Since 1990<br />

alone, more than 350 new titles<br />

have appeared in newsagents and<br />

supermarkets. As almost nine in<br />

every I 0 <strong>Australia</strong>ns regularly read<br />

one or more titles, it's not surprising<br />

that sales of magazines climbed<br />

steadily over the past decade, with<br />

magazine publishing one of the<br />

country's boom retail<br />

industries.<br />

Better Homes and Gardens<br />

has been leader of the<br />

homemaker magazine pack<br />

since launching in <strong>Australia</strong> in<br />

1978. Successfully transfening<br />

the homemaker ingredients<br />

which made it a publishing star<br />

in the US, Better Homes and<br />

Gardens is today part of the<br />

<strong>Australia</strong>n landscape.<br />

ACHIEVEMENIS<br />

Better Homes and Gardens<br />

enjoyed success with<br />

<strong>Australia</strong>ns from its inception,<br />

ranking among <strong>Australia</strong>' s top<br />

I 0 selling magazines since<br />

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~=~~~~~~IJ!S;---'IIIlB••making its Down Under debut. In February 1995,<br />

j.l<br />

the magazine made worldwide news when it<br />

launched its own national 30-minute show on<br />

prime-time television. Astonishingly, the show was<br />

produced by a magazine publishing company with<br />

no previous experience in television production!<br />

The credibility of the magazine content<br />

translated well to the small screen. Viewers tuned<br />

in to watch original hosts John Jarratt and Noni<br />

Hazlehurst show and tell how they got the most<br />

out of hearth and home. More recently, Noni<br />

Hazlehurst has held the hosting role and is joined<br />

by various expe1ts who present specific specialist<br />

segments.<br />

The show, which first aired on commercial<br />

television on Tuesday nights at<br />

7.30pm, was an<br />

instant success,<br />

enjoying the kind of<br />

ratings that make<br />

network executives<br />

preen. It was no<br />

surprise, therefore,<br />

when the show<br />

walked off with<br />

the Logie Award<br />

for Best Lifestyle<br />

Program of 1995,<br />

1996, 1997, 1998<br />

and again in<br />

1999. From<br />

2000-2003 the<br />

continued<br />

its<br />

popular run<br />

and in 2004 the TV show has been given a onehour<br />

spot, every Saturday night at 7.30pm. This is<br />

further testament to the strength of the program, as<br />

it becomes a weekend staple for more than a million<br />

viewers.<br />

Sales of the magazine initially soared by nearly<br />

60 per cent as Better Homes and Gardens went<br />

down in history as the most successful mastheadpublishing<br />

venture in the world.<br />

Today, more than 1.2 million <strong>Australia</strong>ns<br />

participate in the Better Homes and Gardens<br />

experience every week by watching the television<br />

show, 300,000 purchase the magazine monthly and<br />

186,000 visit the website each month, making it the<br />

world's most successful multimedia brand per<br />

capita.<br />

The magazine and television staff continue to<br />

sit side by side in their cross-media teams. In every<br />

sense, the Better Homes and Gardens multimedia<br />

experience has been a watershed event in television,<br />

both locally and worldwide. "Having a top-rating<br />

television show is evidence of how hot Better<br />

Homes and Gardens is," declared Murdoch<br />

Magazines' m


In <strong>Australia</strong>, Better Homes and Gardens has<br />

enjoyed 25 years of successful operation with an<br />

unstinting focus on home, gardening, decorating,<br />

food, DIY and crafts.<br />

In 1991 , after witnessing the success of service<br />

journalism in the United States, Matt Handbury<br />

bought the <strong>Australia</strong>n publishing rights to two of<br />

the most successful publications of this ilk, namely<br />

Better Homes and Gardens and family circle, from<br />

Rupert Murdoch.<br />

By the early '90s-as word of 'cyberspace' and<br />

'information technology' began to spread - the<br />

company's multimedia dream for its successful<br />

homemaker titles began to take shape. "<strong>Australia</strong>ns<br />

throughout the '90s focused on the home, and<br />

service providers like Better Homes and Gardens<br />

have never been more relevant," noted Handbury.<br />

Most importantly, publishers on both sides of<br />

the Pacific have never underestimated the<br />

intelligence of Better Homes and Gardens readers,<br />

aiming rather to enhance the audience's spirit of<br />

home and family. The result is a we!Hoved brand<br />

that continues to grow in popularity and nmture<br />

<strong>Australia</strong>ns' involvement in their home life.<br />

THE PRODUCT<br />

Abundant, involving, personal, affordable,<br />

achievable, empowering- these are the magazine's<br />

and television show's core brand values. Experts<br />

in their field share their passion for gardening,<br />

decorating, cooking, DIY and crafts with an<br />

inexhaustible enthusiasm and attention to readers'<br />

and viewers' needs. Armed with ideas, information<br />

and inspiration, people thus turn to the home for<br />

self-expression, creativity and harmony. With its<br />

clear manifesto to provide better ideas, and<br />

inspiration, Better Homes and Gardens encourages<br />

and empowers people to revel in their home and<br />

homelife.<br />

At the core of the magazine and television<br />

show' s editorial strength is a commitment to service<br />

journalism. This is a way of providing readers with<br />

ideas and information that will inspire them to action.<br />

Magazine and readers enjoy a two-way relationship<br />

based on reliability and trust.<br />

Handbury emphasises the impmtance of every<br />

editorial and television-show staffer aligning his or<br />

her creativity and know-how with this purpose, to<br />

support the high in volvement positioning of Better<br />

Homes and Gardens.<br />

RECENT DEVELOPMENIS<br />

In 2000 the magazine launched its<br />

own website to fmther enhance the<br />

Better Homes and Gardens<br />

experience with monthly hits<br />

peaking at more than 186,000 unique<br />

visitors per month in 2003, and well<br />

over a million page impressions.<br />

The magazine has also led the<br />

way with its contribution to the<br />

community. In 1995,theHandburys,<br />

together with Meredith<br />

Corporation, bought a 100-hectare<br />

farm south of Sydney with a mission<br />

to get street kids off the street.<br />

Better Homes F


e BIACK&DECKER®<br />

THE MARKET<br />

Many factors affect the health of the DIY<br />

(Do-It-Yourself) market; from the state<br />

of the housing market and the<br />

performance of the economy, to<br />

weather conditions and the media. The<br />

buying and selling of houses has<br />

significantly helped to sustain the DIY and<br />

decorating market and encouraged more activity<br />

within the sector.<br />

Gardening andDIYare now among the nation's<br />

favourite leisure activities. This upsurge in fortunes<br />

has been aided by media coverage of DIY programs<br />

such as The Block, Changing Rooms, Burke' s<br />

Backyard, Better Homes & Gardens, DIY Rescue<br />

and Hot Auctions.<br />

In 2002, the <strong>Australia</strong>n power hand tool market<br />

enjoyed $535 million in retail sales, a 4 per cent<br />

increase on 2001. Power garden tools were not far<br />

behind this with retail sales of $335 million, also up<br />

4 per cent. Four key segments accounted for 87 per<br />

cent of these sales; Saws with 27 per cent and<br />

Cordless Tools, Corded Drills and Grinders with 20<br />

per cent each 1 •<br />

Continuing trends within the market primarily<br />

relate to developments in technology and<br />

minimising the number of brands and stock keeping<br />

units (SKUs) by retailers. Women are an increasing<br />

growth segment of the power tool industry in<br />

<strong>Australia</strong> and indeed throughout the world.<br />

Research commissioned by Black & Decker in 2003<br />

shows that 77 per cent of women surveyed had<br />

purchased a power tool or garden tool within the<br />

last 12 months and of these purchases, 28 per cent<br />

were items for their own use. Forty-five per cent of<br />

too Is<br />

purchased by<br />

women were drills 2 •<br />

ACHIEVEMENTS<br />

Black & Decker is the biggest<br />

manufacturer of power tools in the<br />

world with an unsurpassed global<br />

distribution network. It is also one<br />

of the leading manufacturers of<br />

power tool accessories and<br />

handheld vacuum<br />

cleaners.<br />

The brand<br />

continues to<br />

place emphasis<br />

on the<br />

importance<br />

of design,<br />

innovation,<br />

research and<br />

development. As<br />

well as introducing<br />

new tools to the market place, old favourites from<br />

its range are updated to meet ever-increasing<br />

consumer demand.<br />

Black & Decker was the frrst company to develop<br />

cordless tools and the classic Workmate®<br />

Workbench in 1975.<br />

In 1971 Black & Decker founded the famous<br />

hand-held vacuum Dustbuster® and has since<br />

expanded its cleaning range to include 13<br />

competitive products.<br />

These ground-breaking products set new<br />

industry standards and helped build the brand's<br />

health. Research indicates that Black & Decker is<br />

the number one power tool brand in awareness<br />

with 48 per cent unaided recall. It was the only<br />

brand to register 100 per cent recall when compared<br />

to other brands 3 .<br />

HISTORY<br />

Black & Decker began life in 1910 when two young<br />

Americans, Duncan Black and Alonzo Decker,<br />

formed their own manufacturing company. To raise<br />

the initial capital, Duncan Black sold his treasured<br />

Maxwell-Briscoe car and Alonzo<br />

Decker borrowed an equal sum.<br />

With their US$1200<br />

investment they leased<br />

premises in Baltimore and<br />

began contract machine work.<br />

Early Black & Decker<br />

products ranged from equipment<br />

for the US Mint to bottle capping<br />

machinery. In 1914 they patented the frrst handheld<br />

power drill with a pistol grip, trigger switch<br />

and universal motor. Black & Decker had now<br />

begun to produce the goods for which it would<br />

become world-renowned.<br />

The outbreak of World War II proved a<br />

testing time for the business. The scarcity of<br />

metals forced a rethink in the design of tools<br />

and products were soon being manufactured<br />

with plastic housings.<br />

In 1946, the possibility of creating a<br />

home tools market came to Black &<br />

Decker's attention. The company<br />

decided to make tools specifically aimed<br />

at this market including the world's first<br />

popularly priced drills as well as<br />

accessories such as drill bits - a major<br />

decision that was to change the face of<br />

the company and create what is now<br />

known as the DIY market.<br />

In 2004, Black & Decker celebrates its<br />

75'h Anniversary in <strong>Australia</strong>. Black & Decker<br />

(Australasia) was established in 1929 in Sydney.<br />

The subsidiary was a wholly owned assembly,<br />

motor winding, sales, service and warehousing<br />

operation. In 1955 the corporation built a plant in<br />

Victoria and three<br />

years later Black<br />

1929·2004<br />

fl BlACK&DECKER®<br />

26


& Decker New Zealand opened in Auckland. The<br />

1960s were also exciting times for Black & Decker<br />

with the opening of new branches in Scandinavia<br />

and UK and also the introduction of the world's<br />

first cordless electric drill and cordless Hedge<br />

Trimmec<br />

At the end of the 1960s, Black & Decker<br />

turned to 'space development' in association<br />

with the National Aeronautical and Space<br />

Agency (NASA). Black & Decker devised a<br />

cordless zero-torque space tool, used on the<br />

Gemini project, and in the early 1970s, a Black<br />

& Decker moon drill was used to remove core<br />

samples from the lunar surface.<br />

The focus for the company in<br />

2004 will be to build on the<br />

past 75 years of power and<br />

innovation.<br />

THE PRODUCT<br />

As well as power tools, Black & Decker's<br />

product range includes power garden and<br />

cleaning tools and accessories.<br />

The power tool range targets three key<br />

groups of consumers. The Jade coloured<br />

range is the entry price point range -<br />

affordable but well specified. The Intense<br />

Orange range is the premium range of tools<br />

with more product innovation,<br />

specifications and features. The third<br />

category is a sub-brand known as<br />

Firestorm which targets the more<br />

serious DIYer. Firestorm products are<br />

the highest quality and highest spec<br />

products of the Black & Decker range.<br />

Innovative products developed<br />

over recent years include the award<br />

-winning Mouse® in 1998. This is<br />

a compact tool which sands<br />

surfaces like paint and varnish<br />

and cleans and polishes metal<br />

and plastic surfaces. It can also<br />

be used for rust removal.<br />

In <strong>Australia</strong> in 2001, Black &<br />

Decker launched the Scorpion®<br />

powered hand saw making a<br />

traditionally hard working tool into a<br />

safe and efficient one with three blades for different<br />

sawing needs.<br />

Black &Decker's garden range includes hedge<br />

trimmers, line trimmers, chainsaws, shredders and<br />

blower vacs. Black & Decker owns the term<br />

Whipper Snipper typically used to describe line<br />

trirruners and released its latest range of 400, 500<br />

and 600 Watt units in August 2003.<br />

For the home, Black & Decker<br />

produces a range of Dustbuster®<br />

hand held vacuum cleaners.<br />

Double filtration and extending<br />

hose and brush make the<br />

Dustbuster® perfect for<br />

cleaning jobs around the<br />

home. Over 50 million<br />

Dustbusters® are sold<br />

worldwide each year,<br />

and the range<br />

continues to find new<br />

audiences with<br />

consistent<br />

improvements<br />

in power, attachments and colour.<br />

Another Black & Decker<br />

innovation is the new submersible<br />

Scumbuster with versatile<br />

accessories making it easy to clean<br />

surfaces such as the bath and<br />

shower, tiles, glass and other<br />

surfaces typically hard to reach or<br />

clean.<br />

Black &Decker's extensive accessory<br />

range has over 250 products including drill<br />

bits, saw blades, screw driving sets, battery<br />

packs, sanding discs and much more.<br />

RECENT DEVELOPMENTS<br />

Product innovation and development is at the heart<br />

of the Black & Decker brand. New products include<br />

The Bullseye laser level I stud finder and the<br />

MegaMouse.<br />

Research indicates that consumers want to feel<br />

more comfortable when using power tools and less<br />

fatigued after using them for a long time. They also<br />

want better grip to help maintain control over<br />

the product and allow them to<br />

concentrate on the job at hand. To<br />

address these concerns Black &<br />

Decker has been the first power tool<br />

company to introduce GEL TECH ®<br />

grip technology. Gel pods on the<br />

handle and grip of the tool provide<br />

greater comfort, lessen user fatigue<br />

and provide shock absorption.<br />

PROMGnON<br />

Black & Decker began product<br />

promotion as far back as 1928. A specially<br />

made six-person monoplane was used as<br />

a flying showroom to<br />

demonstrate how Black &<br />

Decker power tools could be used in<br />

the reconditioning of aircraft<br />

engines.<br />

The company's US television<br />

advertising began in 1955 with a<br />

series of ads for power tools.<br />

Black & Decker <strong>Australia</strong> has used<br />

a combination of television advertising,<br />

in-store promotions, publicity campaigns, product<br />

catalogues, point-of-sale material, female<br />

information evenings and in-store "How to Do"<br />

clinics and information videos. This is backed up<br />

with extensive public relations and media efforts<br />

such as sponsorship of major sports on the<br />

Austereo network. Key times in Black & Decker's<br />

promotional strategy include the lead up to<br />

Fathers' Day and Christmas.<br />

The most recent promotional highlight for Black<br />

& Decker was in the form of product endorsement<br />

with theNineNetwork's renovating program 'The<br />

Block'. This was filmed at Bondi Beach in Sydney,<br />

featuring four couples competing to renovate one<br />

of four identical apmtments in hope of achieving<br />

the best resale price for their apartment. The Block<br />

was the number one TV show nationally with<br />

outstanding ratings of 2 million viewers on<br />

average each week and over 1.1 million<br />

visitors to its website within the first 3<br />

weeks. The show created extensive<br />

national exposure and excitement<br />

for Black & Decker in a vm·iety of<br />

media inc! uding national<br />

newspapers, industry magazines,<br />

life style magazines, radio, TV talk<br />

shows and websites.<br />

Of the show's nine sponsors, Black &<br />

Decker was the third most recalled of the<br />

nine brands with a total 71 per cent brand<br />

recall 4 .<br />

BRAND VALUES<br />

Black & Decker prides itself on being able<br />

to offer innovative products and value for<br />

money, while maintaining high quality.<br />

As well as offering quality and innovation, Black<br />

& Decker reassures uncettain customers by offering<br />

an unprecedented 4 Yem· WmTanty on all cordless<br />

products with the exception of Dustbuster®. This<br />

is an industry frrst. The warranty demonstrates the<br />

confidence Black & Decker has in its products and<br />

the quality it provides to customers, giving them<br />

peace of mind. The remainder of the range is covered<br />

by a full2 yem· warranty.<br />

Being a visionary, customer focused brand, Black<br />

& Decker aims to ensure that its products are both<br />

exciting and challenging, but remain the best tools for<br />

the job. Black & Decker stands for the values of<br />

integrity, lea::lership, teamwork and results.<br />

www.blackanddeckei:com.au<br />

!.Archer Market Research: 2003. 2.Millward Brown: 2002. 3.Mill ward Brown:<br />

2002. 4. Roy Morgan: 2003. 5.Millward Brown: 2002.<br />

0<br />

0<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

BLACK & DECKER<br />

TheNineNetwork'sDIY reality<br />

program, The Block, achieved record<br />

ratings of 4.4 million viewers for its<br />

final episode which was the highest<br />

progrmn rating since the 2000 Sydney<br />

Olympic Games.<br />

Resem·ch shows that 60 per cent of<br />

both males and females use some sort<br />

of power tool at least once a week 5 .<br />

27


designed to make a difference<br />

THE MARKET<br />

Braun GmbH is a world-wide manufacturer of small<br />

electric appliances based in Kronberg, near<br />

Frankfurt (Main), Germany. Braun products are<br />

universally recognised for the quality of their design<br />

and manufacture, as well as their high level of<br />

innovation.<br />

The brand's worldwide range includes over 200<br />

products in eleven sectors. Braun is the worldwide<br />

leader in five of these sectors: electric razors,<br />

epilators, electric toothbrushes, blenders and<br />

thermometers. The company is also the European<br />

leader in hair driers.<br />

In <strong>Australia</strong> Braun dominates the electric<br />

toothbrush and electric toothbrush refill markets.<br />

Braun also has a strong presence with high-quality<br />

products in other market segments including electric<br />

shavers, epilators and kitchen appliances.<br />

ACHIEVEMENTS<br />

From Braun's early days, success has come<br />

through innovation, supported by the quality and<br />

the design of the products. The company has led<br />

its various industries in a variety of ways and has<br />

frequently introduced revolutionary appliances. In<br />

1929, for example, Braun was first to include the<br />

receiver and speaker in a single radio device to<br />

create the radio receiver as we know it today. In<br />

1932, Braun came up with another innovative idea<br />

and combined a radio and a phonograph to create<br />

the first radiogram.<br />

The company also kept looking to<br />

new and interesting industries, and<br />

in fact created more than one<br />

product category all by itself. In<br />

19SO, Braun launched the first<br />

electric razor, the 'S SO ' . This<br />

employed a set of oscillating blades<br />

and a very fine steel grate- a major<br />

innovation which resulted in vastly<br />

improved precision. The principle is<br />

still used today, although it has<br />

evolved tremendously since Braun<br />

created it.<br />

In 19S6, in quite a different<br />

industry, Braun launched the first<br />

totally automatic 3S mm slide<br />

projector. This was the 'PA I'. In<br />

1963, the company created the<br />

electric toothbrush, 'Mayadent',<br />

and in 1971 Braun launched the<br />

first pocket lighter. In the year<br />

2000 it was the turn of the first<br />

in-car electric razor.<br />

The razor<br />

'Activator' and<br />

the electric<br />

toothbrush '3D<br />

Excel' are other<br />

examples of the<br />

many innovative<br />

technical designs<br />

Braun has created<br />

and produced. The<br />

reputation of the<br />

brand and its<br />

products has been<br />

suitably enhanced by<br />

a long series of<br />

international<br />

exhibitions,<br />

including one at<br />

the Museum of<br />

Modern Art<br />

(New York) and<br />

another at the<br />

Center Pompidou<br />

(Paris).<br />

Braun has<br />

never stopped<br />

innovating and<br />

creating<br />

products in<br />

response to<br />

the needs of<br />

the consumers.<br />

HISTORY<br />

Braun has come a long way from designer of<br />

radio transmitters in an out-of-the-way part of<br />

Europe to global leader in the manufacture<br />

of small appliances. In 1921 , the engineer<br />

Max Braun (born in 1890 in the east of<br />

what was then Prussia) established his<br />

business to build radio<br />

transmitters.<br />

Two years later, Braun<br />

began making components to<br />

supply the radio industry,<br />

then in its infancy. In 192S,<br />

the company began to<br />

specialise in the large-scale<br />

production of items like dial<br />

faces and buttons, thanks<br />

to Braun's invention of<br />

effective and efficient<br />

plastic presses. By 1929,<br />

that production had grown<br />

to include complete radios. Braun soon became the<br />

leading German radio manufacturer.<br />

The Braun brand itself was finally born in l93S<br />

and a year later, Max Braun conceived hi s first<br />

portable, battery-powered radio. Its principal<br />

characteristics were convenience, utility, simplicity<br />

and the functional form of the case.<br />

It did not take long for international recognition<br />

to atTive. Braun received the prize 'Pour realization<br />

exceptionnelle en Phonographie' for thi s<br />

innovation at the time of the Universal<br />

Exposition of Paris in 1937.<br />

In 1947, Braun initially focused<br />

production efforts on the<br />

company's principal products: the<br />

radio sets and pocket lamps<br />

'Manulux'.<br />

But Braun could not sit still,<br />

and began to diversify again.<br />

The company made a major<br />

breakthrough with the<br />

development of the first electric<br />

razor under the direction of Max<br />

Braun, assisted by his son<br />

Artur. In l9SO, Braun launched<br />

mass production of the electric<br />

razor 'S SO ' as well as<br />

developing a line of kitchen<br />

appliances<br />

under the<br />

brand name of<br />

'Multimix'.<br />

Max Braun's<br />

sons, Artur and<br />

Erwin, succeeded<br />

him at his death in<br />

19S ! .. Faithful to the<br />

innovative spirit of<br />

their father, they<br />

launched into<br />

photographic<br />

electronics in<br />

19S2. Theirfirst<br />

new product<br />

was the<br />

electronic<br />

camera flash<br />

'Hobby'.<br />

A key time<br />

for Braun<br />

BRAUn<br />

()<br />

!<br />

olf<br />

28


was to begin in 19S3. Artur and Erwin Braun<br />

demonstrated timeliness in the market where they<br />

were already the leader - radios. To distinguish<br />

the brand from its competitors, they presented<br />

'devices more inexpensive, more different and more<br />

functional', vastly improved over the conventional<br />

radios of the time with their gilded edges and high<br />

speakers.<br />

Product improvements in this and other<br />

categories continued, and eventually, in December<br />

1967, The Gillette Company became the majority<br />

shareholder in Braun.<br />

In 1988, Braun's epilator division purchased<br />

the French Silk-epil. The launch of the electric<br />

toothbrush 'Piak ContTol' with a circular oscillating<br />

head revolutionised the market in 1991. More<br />

diversification came in 1996 when<br />

Braun bought the American<br />

business ThermoScan, then the<br />

market leader in infrared<br />

thermometers.<br />

THE PRODUCT<br />

Today, Braun markets 200<br />

products in eleven<br />

categories: dental hygiene,<br />

electric razors, epilators,<br />

blenders, coffee makers,<br />

irons, citrus fruit juicers,<br />

hair driers and curling irons,<br />

thermometers, alarms and ~-·······<br />

calculators.<br />

Outstanding products include the Syncro with<br />

its Clean and Charge unit which cleans the shaver<br />

in alcohol, dries it and<br />

charges it ready for<br />

use. The Syncro also<br />

offers a Smart Logic<br />

battery management<br />

system. The Braun<br />

Independent Steam<br />

Cordless Straightner<br />

makes salon quality<br />

straight hair possible<br />

anywhere, and the<br />

ThermoScan ear thermometer<br />

makes it easy<br />

to take children's<br />

temperatures without<br />

waking the child.<br />

Ten factories in<br />

sRRun<br />

release of a protective lotion. This innovative<br />

concept was developed in pa1tnership with Gillette.<br />

In 2003 Braun launched a new range with the<br />

'Silk-epil SoftPe1fection ... the softest and most<br />

effective of the epi lators', to the three million users<br />

of electric epilators.<br />

Always aware of domestic products, Braun also<br />

launched the 'Multiquick Advantage', a poweJful<br />

high-performance blender, in 2003. The brand 's<br />

success with blenders in a maturing market has<br />

been outstanding, with Braun developing and<br />

growing the market in the premium category through<br />

increases in power and design.<br />

PROMGnON<br />

Braun promotes its brand and products in a wide<br />

variety of ways. Strategic television campaigns<br />

generally focus on the brand, using premium<br />

products to convey the brand slogan 'Better by<br />

Design' .<br />

Seasonal promotions feature premium-branded<br />

gifts with purchases, and recently during a shaver<br />

promotion Braun offered buyers the opp01tunity<br />

to put in some 'Hot Laps' with the companysponsored<br />

Team Braun Porsche, which<br />

competes in the high-profile Carrera Cup.<br />

Subsequently Braun even gave away a<br />

Porsche Boxster to a lucky purchaser<br />

in a popular Clu·istmas promotion.<br />

In quite a different element,<br />

superstat· swimmer Michael Klim is the<br />

face of electric shaving for Braun. Klim<br />

has held world records and has won<br />

gold medals at an international level,<br />

and personally recommends Braun<br />

electric shavers.<br />

A recent Father's Day promotion offered<br />

buyers up to five free EA grunes.<br />

BRAND VALUES<br />

Braun believes that brand image is a major<br />

factor in the company's success. This is based<br />

on the principal values that innovation, design,<br />

and quality give rise to demand.<br />

"We strive to fulfil the consumer's true needs<br />

with products that distinguish themselves through<br />

meaningful innovative features and benefits, high<br />

quality standards in pe1forniance and durability and<br />

ergonomic, distinctive and aesthetic design", said<br />

Bernhru·d Wild, President of Braun.<br />

Braun refuses any compromise on quality. Severe<br />

tests ru·e carried out on a lru·ge scale in the Braun<br />

laboratories in order to guarantee that all products<br />

attain the highest standards of security, solidity<br />

and longevity. The key to Braun's success has been<br />

the strict demand for a functional design of the<br />

highest quality.<br />

Braun's design elements are originality,<br />

functionality, ergonomic simplicity, integrity,<br />

aesthetics and durability. For Braun, design is a<br />

philosophy that penetrates all aspects of life.<br />

www.braun.com<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

BRAUN<br />

network allows Braun to supply<br />

mru·kets right ru·ound the world with<br />

its many products.<br />

RECENT DEVELOPMENTS<br />

In 2000, Braun launched the<br />

'Syncro System', the world's first<br />

self-cleaning electric razor<br />

followed by 'FreeGlider' in<br />

2002, which includes the<br />

0 Today's shavers use the srune basic<br />

foil and cutter technology as the first<br />

electric shaver ever invented, by Max<br />

Braun in 19SO.<br />

0 In I 929, Braun was first to include the<br />

receiver and speaker in a single radio<br />

device.<br />

0 Braun is the worldwide leader in five<br />

product sectors: electric razors,<br />

epilators, electric toothbrushes,<br />

blenders and thermometers.<br />

0 Braun created the radiogram by<br />

combining radio and phonograph in<br />

1932.<br />

0 Braun employs close to 9,000 people<br />

ru·otmd the world.<br />

29


THE MARKET<br />

<strong>Australia</strong>ns love confectionery.<br />

They annually consume 5.7kg<br />

per person, making confectionery<br />

the most popular snack<br />

food in <strong>Australia</strong>.<br />

Chocolate accounts for more<br />

than 7 5 per cent of all<br />

confectionery sales in <strong>Australia</strong><br />

with a retail value of over $1.3<br />

billion every year. Cadbury is the<br />

biggest player in chocolate<br />

confectionery, with market<br />

leadership across all major<br />

product segments.<br />

Forty-seven percent of<br />

confectionery is purchased on<br />

impulse, and almost 50 per cent<br />

of all chocolate buyers are within<br />

the 25 - 49 year age group.<br />

Women generally buy more<br />

chocolate than men, but in most<br />

cases they are buying for their<br />

families. In fact men in the 35-49 year<br />

age group are the highest buyers of chocolate bars<br />

and blocks, usually for themselves.<br />

The <strong>Australia</strong>n confectionery market continues<br />

to grow year on year with volume increasing by<br />

double digits over the past five years.<br />

ACHIEVEMENTS<br />

Cadbury is one of the largest chocolate producers<br />

in the world. Since the merger with Schweppes in<br />

1969, Cadbury Schweppes has become a major<br />

force in international markets. This<br />

position has more recently been<br />

fortified by the acquisition of<br />

Adams Confectionery and The<br />

Natural Confectionery<br />

Company.<br />

Cadbury spans the<br />

globe from its British<br />

base, and operates<br />

factories in <strong>Australia</strong>, New<br />

Zealand, Malaysia,<br />

Indonesia, India, China,<br />

Poland and several patts of Africa.<br />

It owns subsidiary companies in<br />

France, Germany, Spain, Argentina and<br />

Holland and has franchise agreements in the US<br />

and Canada.<br />

In <strong>Australia</strong>, Cadbury brands lead the<br />

confectionery mat·ket with Cad bury's flagship Dairy<br />

Milk wo1th over $95 million annually. Cadbury Nut<br />

Break represents the most<br />

successful block chocolate<br />

launch in the last year, selling<br />

more than $13 million worth in<br />

the first 12 months. Three<br />

generations of <strong>Australia</strong>ns have<br />

grown up with the Cadbury<br />

range.<br />

HISTORY<br />

The Cadbury story started in a<br />

small grocery shop 111<br />

Birmingham, England, opened in<br />

1824 by John Cadbury, a Quaker.<br />

The shop's most popular<br />

product was cocoa and this led<br />

John Cadbury to move into<br />

chocolate manufacturing.<br />

Realising the potential of his<br />

business, John Cadbury and his<br />

brother Benjamin formed a<br />

company, Cadbmy Brothers. In<br />

1853, they received the Royal<br />

WatTant as manufacturers to Queen<br />

Victoria. The company has continued to hold Royal<br />

Warrants of Appointment to this day.<br />

John Cadbury's sons George and Richard took<br />

control of the business in 1861 and in 1866,<br />

introduced a new method for pressing the cocoa<br />

butter from cocoa beans to form cocoa essence,<br />

which was advertised as 'Absolutely pure -<br />

therefore best'. They produced<br />

many new kinds of<br />

chocolates, including<br />

the first assortments<br />

sold in<br />

boxes.<br />

Richard Cadbury introduced ambitious and<br />

attractive designs from his own paintings for his<br />

gift boxes. He used children as models and<br />

sometimes depicted flowers or scenes from holiday<br />

journeys.<br />

In 1905 came the launch of Cadbury's Dairy<br />

Milk, now the company's flagship brand. It was<br />

manufactured by a unique process which used fresh<br />

milk in greater quantities than previously. Of the<br />

three names considered for this new brand -<br />

'Jersey' , 'Highland Milk' and 'Dairy Maid'- the<br />

last two were amalgamated to form 'Dairy Milk'.<br />

The Cadbury purple and gold house colours were<br />

introduced at the beginning of the century and are<br />

now firmly established as Cadbury's corporate<br />

colours.<br />

In 1918, Cadbury merged with<br />

the well-known confectionery ftrm<br />

of J.S. Fry. The alliance was an<br />

outstanding success, and the new<br />

company expanded internationally.<br />

In the 1920s, Cadbury and<br />

Fry decided to build a factory in<br />

<strong>Australia</strong> and were joined by<br />

Pascal!, another well-known<br />

confectionery maker. This new<br />

<strong>Australia</strong>n company was called 'Cadbury­<br />

Fry and Pascali'. Claremont in Tasmania was<br />

chosen for the company' s <strong>Australia</strong>n factory,<br />

because it was close to Hobart and to the finest<br />

30


market at Easter.<br />

Cadbmy also licenses its brands to dedicated<br />

producers of ice creams, dairy desserts, cream<br />

liqueur, biscuits and baking products.<br />

dairy pasture in <strong>Australia</strong>, and enjoyed<br />

pure air and moderate temperatures.<br />

Cadbmy became the official supplier<br />

of chocolate to the <strong>Australia</strong>n Armed<br />

Forces in World War II. The supply of<br />

chocolate to the troops and civilians<br />

required a tremendous effort from<br />

Cad bury's workers. The Claremont<br />

factory worked throughout the day and<br />

well into the night, but the civilian<br />

population still suffered from chocolate<br />

shmtages, and stores sometimes went<br />

without chocolate for months at a time.<br />

In 1967 Cadbury acquired<br />

MacRobertsons, a respected <strong>Australia</strong>n<br />

confectionery manufacturer founded in<br />

1880. This move gave Cadbury a major<br />

manufacturing base at Ringwood,<br />

Victoria and a range of unique brands including<br />

Cherry Ripe and Freddo Frog, which have become<br />

household names.<br />

In 1969, Cad bury merged with Schweppes<br />

<strong>Australia</strong> to create Cadbury Schweppes. Since then,<br />

Cad bury has acquired the Red Tulip confectionery<br />

company, founded in Melbomne in 1942, and has<br />

expanded its range of fine products including the<br />

Europe range of health bars, the enormous atTay of<br />

Red Tulip Easter lines, and famous confectionery<br />

brands including After Dinner Mints.<br />

THE PRODUCT<br />

Cadbury's core product is top quality chocolate.<br />

The Cadbmy Dairy Milk block is the company's<br />

flagship brand, but there are many other favourites<br />

including Fruit & Nut, Hazel Nut, Snack and Nut<br />

Break, as well as Old Gold in dark chocolate and<br />

Dream in white. Cadbury produces a variety of<br />

boxed chocolate assortments, most notably Roses<br />

and Favourites.<br />

Children's lines include<br />

<strong>Australia</strong>'s long time favourites<br />

Freddo Frog, Caramello Koala<br />

and Yowie. Famous Cadbury<br />

bar lines such as CheiTY Ripe,<br />

Picnic, Crunchie, Flake and<br />

Turkish Delight meet the<br />

demand for impulse purchases.<br />

New products such as Flake<br />

Noir and rotational Picnic<br />

variants such as Picnic<br />

Honeycomb keep the market<br />

stimulated each year.<br />

Cadbury produces a vast<br />

array of seasonal lines, with<br />

Christmas and Easter being the<br />

two largest selling occasions<br />

for the year. Cadbury leads both<br />

seasons with Magical Elves<br />

being key in the market at<br />

Christmas and Cadbury Creme<br />

Eggs and Mini Eggs driving the<br />

RECENT DEVELOPMENTS<br />

Cadbmy Chocettes, first launched in 2003, have<br />

taken <strong>Australia</strong> by storm. The concept of<br />

"mindless munching" came to the fore<br />

in recent times and necessitated a bitesized<br />

offering that could meet the needs<br />

of varied eating occasions. Chocettes<br />

can be shared amongst family and friends<br />

or be a 'portion controlled' option for<br />

one.<br />

Chocettes capitalise on some of<br />

Cadbury's most successful bar and<br />

moulded chocolate brands including<br />

Cherry Ripe, Cmnchie, Picnic, Dream, Top<br />

Deck and Dairy Milk. Over $13 million<br />

worth of Chocettes were sold in the first<br />

six months. New variants being<br />

introduced in the second half of 2004<br />

promise to add even more excitement to<br />

the segment and give consumers the<br />

opportunity to enjoy their favourite<br />

brands in a novel and convenient format.<br />

Dark chocolate appeals to the mature and more<br />

discerning consumer. Though this consumer group<br />

had become more<br />

prevalent, dark block<br />

chocolate sales had<br />

waned.<br />

Cadbury Old Gold<br />

was re-launched in April<br />

2003 and has created a<br />

resurgence 1!1 dark<br />

chocolate. Prior to therelaunch,<br />

the dark chocolate segment was relatively<br />

stagnant with growth levels at around 15 per cent<br />

and generating $28 million a year. Post-launch, dark<br />

chocolate is growing at 67 per cent and sold more<br />

than $44 million in 2003.<br />

PROMOTION<br />

The taste of Cadbury's chocolate has long been<br />

the focus of Cad bury's advertising in <strong>Australia</strong> and<br />

New Zealand. This has been supported by the<br />

slogan 'a glass and a half of full<br />

cream milk in every 200grams',<br />

accompanied by a picture of<br />

milk pouring into a block of<br />

Cadbury Dairy Milk<br />

chocolate. This was a<br />

tremendous advertising coup<br />

and served the brand well for<br />

more than 50 years.<br />

The "Masterbrand" corporate<br />

umbrella advertising campaign<br />

"Choose happiness ...<br />

choose Cadbury" takes<br />

chocolate consumption to a<br />

'permissibility' platform in the<br />

consumer's mind that will<br />

unlock growth for the future.<br />

Building on this, the<br />

"Wouldn't it be nice"<br />

campaign which fust aired in<br />

2002 with its 'Surfte', 'Soccer'<br />

and ' Postie' clay-mation<br />

commercials explored different motivations for<br />

consuming chocolate such as enjoyment, fun,<br />

sharing and family quality time. This was fmther<br />

fostered in 2003 with 'Car Trip' . All advertisements<br />

were hugely popular and deemed a great success<br />

in conveying the core Cadbury values.<br />

BRAND VALUES<br />

Cadbury's mission statement says simply<br />

'Cadbury means quality'; this is the promise. The<br />

company's reputation is built upon quality; a<br />

commitment to continuous improvement will ensme<br />

that this promise is delivered.<br />

Cadbury has established itself as a company of<br />

fairness and integrity, which always<br />

'::~d~~~~~i55;::;0i\:iii~socially<br />

responsible<br />

business. This commitment to consmners has been<br />

encompassed by involvement with vatious chatities,<br />

with a signiftcant commitment made to the children's<br />

charity 'The Clown Doctors' inearly2004.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

CAD BURY<br />

0 <strong>Australia</strong>ns give more chocolate Easter<br />

Eggs than anyone else in the world -<br />

they give eggs valued at more than<br />

$178 million.<br />

0 <strong>Australia</strong> holds the world record for the<br />

lmgest Easter Egg ever produced. In<br />

1992 Red Tulip produced at1 egg<br />

weighing 4,755kg and measming 7.1<br />

metres in height.<br />

0 Dental resemchers have discovered<br />

that tannin, found in all cocoa<br />

products, inhibits the key enzyme in<br />

the formation of plaque.<br />

0 Over I 00 million Ft·eddo Frogs m·e<br />

produced annually.<br />

0 Chocolate is the only word of Aztec<br />

origin used regularly in English.<br />

Xocoatl was a 'bitterwater' drink made<br />

from the cocoa bean by the Aztecs.<br />

0 Cocoa butter, the fat of which<br />

chocolate is composed, melts<br />

completely at temperatures between 32<br />

at1d 35C and begins to soften at<br />

between 25 and 27C. So keep your<br />

chocolate cool!<br />

31


THE MARKET<br />

Everyone has fond memories of growing<br />

up with cordial. <strong>Australia</strong>n cordial<br />

consumption in 2003 was 6.8 litres per<br />

capita. This translates to every <strong>Australia</strong>n<br />

drinking more than 27 litres of diluted<br />

cordial each year. More than 75 per cent of<br />

households regularly purchase cordial,<br />

which is viewed as refreshment to be<br />

enjoyed mostly in the afternoon or after<br />

school.<br />

Cordial is a product that is primarily<br />

consumed by families with two or more<br />

children aged 5-12 years. Cottee's is<br />

<strong>Australia</strong>'s clear market leader in the $191<br />

million Cordial market, and has<br />

demonstrated the value of having a strong<br />

brand name and market position by the 2<br />

per cent growth it experienced in 2003.<br />

The jam industry is valued at $115 million, and<br />

Cottee's is a m~or player. While the category<br />

continues to be loved especially by older target<br />

markets, around 80 per cent of households buy jam<br />

at least once a year.<br />

The $37.4 million topping category is enjoying<br />

both value and volume growth, and<br />

together Cottee's and Cadbury lead<br />

the category. Topping is complementary<br />

to Ice Cream and bought by<br />

the average household every 12 weeks<br />

as a pantry filler. This mature category<br />

is driven by innovation and the launch<br />

of new products.<br />

Jelly is a fun dessert that is simple<br />

to make and easy to always have on<br />

hand. ln 2003 Cottee' s experienced<br />

the largest market growth in value<br />

terms of all competitors in this $23<br />

million category. Cot tee's was<br />

able to achieve this growth by<br />

capitalising on successful<br />

promotional strategies.<br />

ACHIEVEMENIS<br />

Since being acquired by Cadbury<br />

Schweppes in 1984, Cottee' s has<br />

grown to become one of<br />

<strong>Australia</strong>'s top 25 food umbrella<br />

brands (AC Nielson).<br />

The success of the Cottee's<br />

brand is based on a focus on the<br />

quality of each product, achieved<br />

by improving the fruit credentials<br />

of jam, jellies and cordials.<br />

Cottee' s massive participation in the cordial<br />

category in <strong>Australia</strong> is largely credited to the unique<br />

Coola flavoured cordial that firmly occupies the<br />

top spot as '<strong>Australia</strong>'s favourite' with sales of more<br />

than 64 million litres every year. In addition, Cottee' s<br />

is market leader in toppings and holds a strong<br />

position in both the jam and jelly categories.<br />

HISTORY<br />

Cottee's began making qual ity food<br />

products in <strong>Australia</strong> in 1910. To this day<br />

the Cottee's brand remains an <strong>Australia</strong>n<br />

icon and the range can be found in almost<br />

every supermarket. The company was<br />

started by Spencer Cottee, a dairyman.<br />

When faced with hard times in dairying in<br />

the early 1900s, he began to grow and<br />

process passionfruit. Along the way he<br />

developed the now famous 'Passiona' soft<br />

drink brand. The instant success of<br />

Passiona prompted Spencer to expand the<br />

business <strong>Australia</strong>-wide and create a host<br />

of other beverages under the Cottee' s<br />

brand. So came the bilth of Cottee's fruit<br />

mixes and cordial products in the 1920s.<br />

A growing demand for Cottee' s<br />

products led to the establishment of Cottee' s<br />

second factmy i11 Leichhardt (Sydney), which paved<br />

the way for Spencer Cottee to launch into yet more<br />

categories of jams, jellies and even peanut butter.<br />

During WWII, Cottee's was commissioned to<br />

produce jams, juices and concentrates for the army<br />

and some of these contracts are still in place today.<br />

After the war the company diversified further into<br />

soft drinks, toppings and frozen foods. Increasing<br />

demand for pre-prepared desserts in the 1950s<br />

inspiJ·ed Cottee' s to develop its mnovative instant<br />

pudding in 1958.<br />

In I 970, General Foods Corp USA<br />

and Cottee's Ltd merged to form<br />

Cottee' s General Foods Limited.<br />

Cadbury Schweppes Pty Ltd<br />

then acquired Cottee's Foods<br />

in 1984, undertaking a massive<br />

expansion of business and<br />

facilities at Liverpool, NSW,<br />

with new product<br />

development and the<br />

acquisition of a number of<br />

major food brands. Cottee' s<br />

now expmts its products to<br />

numerous countries around<br />

the world including New<br />

Zealand, the USA, Egypt,<br />

Chile, India and Sri Lanka<br />

as well as South East Asia<br />

and the Pacific Islands. The<br />

current export range<br />

includes jams and<br />

marmalades, fmit cordials,<br />

fruit and other flavoured<br />

toppings, maple syrup,<br />

32


hazelnut spread, j e ll y crystals and in stant<br />

puddings.<br />

The major relaunch oftheCottee's brand in2002<br />

has ensured Cottee' s success as one of <strong>Australia</strong>'s<br />

favourite family brands. To ensure Cottee's<br />

continued movement with the times a new logo,<br />

new pack designs and a new advertising campaign<br />

were launched. The new-look range has greater<br />

consistency, a more contemporary im age and<br />

improved shelf stand-out.<br />

THE PRODUCT<br />

There are a number of contributing reasons why<br />

Cottee's is a leader in <strong>Australia</strong> 's food industry.<br />

The most important is the quality of the products<br />

the company manufactures. The Cottee's range of<br />

products is produced at state-of-the-art<br />

manufacturing facilities at Liverpool,<br />

NSW and Tullamarine, Victoria.<br />

Cottee's has an extensive range of<br />

products in both retail and food<br />

service pack sizes. The range<br />

includes jams and marmalades, 19<br />

flavours of fruit cordial, fruit<br />

sauces, fruit syrups, fruit and<br />

flavoured toppi ngs, maple<br />

syrup, spreads, bellywashers,<br />

soft drinks, jell y crystals and<br />

instant pudd ings. Each of<br />

these products varies in<br />

size, and composition.<br />

Some ranges include<br />

Cottee' s Diet products,<br />

which are distinguished<br />

by a light blue label and<br />

li d which clearly<br />

differentiate them from<br />

the Cottee' s regu lar<br />

range.<br />

T he Cottee' s All<br />

Natural range, including<br />

cordials, fruit juice syrup,<br />

and jelly, offers consumers<br />

high frui t content with no<br />

artificial flavours, colours or preservatives.<br />

RECENT DEVELOPMENTS<br />

The new millennium has brought significant change<br />

to the Cottee' s brand. In 200 I Cottee' s<br />

fruit sauces were launched to<br />

complement the ever-popular<br />

topping range. While<br />

traditional toppings were still<br />

perfect for pouring over ice<br />

creams, the new fruit sauces<br />

were developed to make<br />

Cottee's topping stretch<br />

across a wider variety of<br />

uses; smothering over<br />

cheesecake, adding real<br />

flavour to pavlova or adding<br />

a touch of flavour to pancakes.<br />

In 2002, Cottee's<br />

introduced its new soft drink<br />

range - a natural extension of<br />

the existing range of cordials.<br />

'Cottee's now has bubbles ' was<br />

the message for families .<br />

Cottee' s jam has been<br />

reinvigorated by the launch of<br />

Cottee's Be Organic, a new range of organic<br />

jams to appeal to a more modern consumer.<br />

Cottee' s packaging has undergone a<br />

complete reinvention with the introduction<br />

of a new jam jar, squeeze topping bottle<br />

and a revolutionary user-friendly<br />

cordial jug pack. Building on the jug<br />

pack's success, Cottee's launched<br />

refills, encouraging more<br />

consumer cordial flavour<br />

rotation.<br />

Adding to the<br />

makeover was the<br />

replacement of the old<br />

rigid, square Cottee' s logo<br />

by a more fluid and fun<br />

redesign ready for the<br />

relaunch of the entire<br />

product range in 2002<br />

under the banner of the<br />

'That I Like Best' advettising<br />

campaign.<br />

PROMOTION<br />

Cottee's recognised early in its hi story that<br />

adverti sing and promotion were essential to<br />

remaining a competitive market<br />

leader.<br />

Through the '50s, 'See the<br />

fruit in it', 'Everyday is a<br />

Cottee'skindofday', 'Cottee's<br />

festival of fun ' and 'Always<br />

keenly priced' touted the<br />

virtues of the extensive<br />

Cottee's product portfolio.<br />

But no Cottee's adverti sing<br />

slogan or promotion ever<br />

made such an impact as the<br />

' My Dad picks the fruit'<br />

television commercial of the<br />

early to mid 1980s. It remail1s<br />

a mil estone in Cottee's<br />

marketing history, because it<br />

encapsulated the values that<br />

defined the company since its<br />

beginnings - fun, fam il y,<br />

quality and trust.<br />

In 2002 all Cottee' s brands<br />

were promoted through the master brand and the<br />

emotional connection that consumers had with the<br />

'My Dad' TVC, in the 'That I Like Best' campaign.<br />

BRAND VALUES<br />

Cottee' s success has been built on hard work,<br />

integrity and the ability to anticipate the<br />

changing needs of <strong>Australia</strong>n families. These<br />

cornerstones continue to form the foundation<br />

of Cottee's today. Cottee's loyal consumer<br />

base has grown fro m the company's<br />

commitment to quality products that meet<br />

the needs of <strong>Australia</strong>n families. This<br />

achievement was made possible by the<br />

continuous evoluti on of the product<br />

range and an ability to connect with the<br />

<strong>Australia</strong>n culture.<br />

In everything Cottee's does going<br />

forward, it will be clear that regardless<br />

of the product category, it is one brand<br />

with one promise. That promise is that<br />

Cottee's foods are of a high, trusted<br />

quality, with a great taste. In most<br />

categories they are also market leaders -<br />

which clearly makes them the products 'that I like<br />

best' .<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

conEE'S<br />

0 Cottee' s founder, Spencer Cottee,<br />

originally beg


CRJICKET AUSTRALIA<br />

Over the past five years, Cricket <strong>Australia</strong> has<br />

generated a 95 per cent increase in revenue. This<br />

has largely come from increases in sponsorship<br />

and media rights income, but the other core revenue<br />

stream, gate receipts, has also grown strongly.<br />

In the 2002-2003 season, Cricket <strong>Australia</strong><br />

generated total revenue of $87.1 million.<br />

THE MARKET<br />

Summer means cricket for <strong>Australia</strong>ns all around<br />

the nation. Players, officials, venue managers,<br />

volunteers, local councils, media, families, suppliers<br />

and fans gear up for their respective roles in what<br />

is <strong>Australia</strong>'s biggest genuine national sport.<br />

At an elite level, <strong>Australia</strong>'s summer features<br />

Tests and one-day games for the men's and<br />

women's teams. Elsewhere, the world's strongest<br />

domestic fu·st-class cricket competition, the Pura<br />

Cup, one-day interstate INGCup and the Women's<br />

National Cricket League, build on their traditions.<br />

And across the nation,<br />

hundreds of thousands of<br />

men and women, boys and<br />

girls, are taking to the field<br />

at all levels of international,<br />

interstate, local, community<br />

and school cricket.<br />

Countless more will roll their<br />

arm over in the backyard or<br />

on the beach.<br />

Cricket has a distinct<br />

place in <strong>Australia</strong>n society<br />

and history. The game has<br />

played a significant role as<br />

an element in <strong>Australia</strong>'s<br />

national identity.<br />

<strong>Australia</strong>ns pride<br />

themselves on playing the<br />

game hard but fair, and<br />

<strong>Australia</strong> is currently and<br />

also historically the world's<br />

most successful cricketing nation.<br />

Embracing the spirit of the game means<br />

participating fairly, either as a player or as an official,<br />

and exhibiting respect for other players and officials<br />

and the game's traditional values such as<br />

graciousness in defeat and humility in victory.<br />

ACHIEVEMENTS<br />

During the 2002-2003 season, independent market<br />

research confirmed that cricket is <strong>Australia</strong>'s<br />

favourite team sport.<br />

Cricket <strong>Australia</strong>'s revenue continues to grow.<br />

HISTORY<br />

The first central administrative body for cricket in<br />

<strong>Australia</strong> was estab]jshed in March 1892, when<br />

delegates from the state associations of New South<br />

Wales, South <strong>Australia</strong> and Victoria complemented<br />

growing federalist fervour by establishing the<br />

Australasian Cricket Council.<br />

The Council disbanded only seven ye3.1·s later,<br />

but the void was filled when the <strong>Australia</strong>n Board<br />

of Control for International Cricket was formed in<br />

1905 with two representatives from New South<br />

Wales and Victoria. A delegate from Queensland<br />

joined later the same year; and in 1906 another<br />

representative from New South Wales and Victoria<br />

attended, along with three from SA.<br />

Tasmania was permitted one representative from<br />

1907, while Western <strong>Australia</strong>n representation<br />

became a reality from 1913. The only other changes<br />

to the number of delegates provided by the states<br />

were made in 1914 and 1974 respectively, when<br />

Queensland and Western <strong>Australia</strong>n representation<br />

increased to two each.<br />

The organisation again changed its title in 1973<br />

- this time to the <strong>Australia</strong>n Cricket Bolli·d.<br />

Arguably the biggest period of transition in its<br />

operations occurred in the<br />

late 1970s, when the advent<br />

of World Series Cricket<br />

prompted a number of<br />

important changes in the<br />

areas of marketing,<br />

commercial affairs and media<br />

involvement in cricket.<br />

In 2001 Bob Merriman<br />

became the 34th person to<br />

oversee the Board's<br />

activities as its Chairman<br />

when he replaced Denis<br />

Rogers.<br />

Among tl1e wide range of<br />

developments to which<br />

these men have been forced<br />

to respond in their roles as<br />

the Board's figureheads,<br />

some of the more notable<br />

have been: the 1912 dispute<br />

34


etween officials and a group of the<br />

country's senior players; the outrage<br />

prompted by the 'Body line' series of<br />

1932-33; the onset of World Series<br />

Cricket in the late 1970s; the staging<br />

of rebel tours to South Africa during<br />

the 1980s; and the threat of strike<br />

action launched by the nation's<br />

players in 1997.<br />

The longest serving Chairmen<br />

were Allen Robertson (1930-33, 1936-<br />

45, l948-5l)andAubrey0xlaie(l927-<br />

30, 1933-36, 1945-48, 1952-52), while<br />

arguably the best-known was Sir<br />

Donald Bradman ( 1960-63, 1969-72).<br />

James Sutherland became the<br />

organisation's 12th Secretary/Chief<br />

Executive Officer in 2001 when he<br />

succeeded Malcolm Speed.<br />

THE PRODUCT<br />

Through growth, development and promotion,<br />

Cricket <strong>Australia</strong> brings the game of cricket to the<br />

people of <strong>Australia</strong>.<br />

It is Cricket <strong>Australia</strong>'s role to attract, develop<br />

and keep people in the game by building skills,<br />

p3.!ticipation levels and cricket pathways such as<br />

the MILO development programs that introduce<br />

young children to the basic skills of cricket through<br />

a modified version of the game.<br />

At the elite level, Cricket <strong>Australia</strong> provides high<br />

quality traini ng facilities and development<br />

programs to ensure the future success of the<br />

<strong>Australia</strong>n men 's and women's cricket teams and<br />

various representative sides.<br />

Cricket <strong>Australia</strong> takes a leadership role in<br />

actively promoting the codes and policies of the<br />

game, both locally and internationally.<br />

consolidates revenueraising<br />

and new<br />

business activities for r-!~"'-~<br />

<strong>Australia</strong>n cricket.<br />

Cricket Operations<br />

manages <strong>Australia</strong>n<br />

teams at international<br />

level, administers the<br />

country's premier<br />

domestic competitions,<br />

the Pura Cup and the<br />

lNG Cup and the<br />

Women's National<br />

Cricket League, and<br />

oversees all first-class<br />

umpiring.<br />

Finance and Administration<br />

manages<br />

<strong>Australia</strong>n cricket's finances and administers its<br />

internal operations.<br />

Game Development is responsible for<br />

overseeing all cricket development activity<br />

from the g3.1ne' s highest level through to its<br />

grass roots.<br />

Legal and Business Affairs<br />

provides in-house legal counsel, and<br />

ensures that the organisation adheres<br />

to sound legal practice.<br />

Public Affairs plans and implements<br />

RECENT DEVELOPMENTS<br />

In 2002, the <strong>Australia</strong>n Cricket Bolli·d published<br />

a strategic plan for <strong>Australia</strong>n cricket called<br />

'From Backyard to Baggy Green', identifying<br />

four strategic priorities: to strengthen and<br />

protect the spirit of cricket; to thrive at<br />

the elite level; to attract, develop and<br />

keep people in the game; and to ensure<br />

that cricket has a strong and<br />

sustainable financial base.<br />

On 1 July 2003, theAustra]jan Cricket the organisation's strategic<br />

Board changed its name to Cricket<br />

communications programs, ensuring that<br />

<strong>Australia</strong>, in order to build a more<br />

cricket's stakeholders are kept informed<br />

coordinated approach to branding<br />

about the game.<br />

throughout <strong>Australia</strong>n cricket. A range of new<br />

Cricket <strong>Australia</strong> became fully integrated<br />

<strong>Australia</strong>n cricket logos has been developed with Women's Cricket in 2003. The integration<br />

along a sinul3.1· shape to make them instantly<br />

will help develop clear pathways for female<br />

recognisable as part of <strong>Australia</strong>n cricket ~~==~ players from junior programs like CricHit<br />

branding. This move was designed to<br />

through to <strong>Australia</strong>n representation.<br />

ensure an integrated look and voice<br />

Today, <strong>Australia</strong>'s national women's<br />

across all levels of the game, and to<br />

team, the Commonwealth bank<br />

enhance the strength of the brand<br />

Southern St3.!·s, serve as role<br />

val ue.<br />

models for thousands of<br />

Cricket <strong>Australia</strong> administers the<br />

young girls taking up the game<br />

game of cricket usi ng a wide range of<br />

each year.<br />

resources. In addition to the Executive<br />

depmtment, which manages the day-today<br />

PROMOTION<br />

operations of the Chief Executive<br />

Cricket<strong>Australia</strong>'s 'GoAussieGo'<br />

Officer and Directors, Cricket <strong>Australia</strong><br />

brand campaign conveys the message that<br />

operates six other departments.<br />

cricket is a sport for all <strong>Australia</strong>ns reg3.1·dless<br />

Commercial Operations drives and of age, gender, race or occupation. It is about the<br />

traditions of the game and recognises<br />

past and present heroes. The<br />

'GoAussieGo' campaign has been<br />

running for some six years, and<br />

follows the success of the previous<br />

campaign, 'C'mon Aussie C ' mon',<br />

which was first introduced in the<br />

1978179 season during the World<br />

Series Cricket era.<br />

The highly successful MILO<br />

Cricket programs see nelli·ly half a<br />

million primary and second3.1·y school<br />

students experience the game every<br />

year by means of tailored matches,<br />

clinics and other activities. MILO<br />

Kanga Cricket, Have-A-Go and Super<br />

8s all aim to raise aw3.1·eness 3.!1d draw<br />

p3.!ticipants to the game.<br />

Of course cricket is self-promoting to a large<br />

extent. On television both Test and one-day<br />

international cricket consistently rate higher than<br />

any other sport. Market research has also<br />

confirmed that cricket is <strong>Australia</strong>'s favourite sport<br />

to listen to on radio and to read about in<br />

newspapers.<br />

BRAND VALUES<br />

Cricket <strong>Australia</strong>'s mission statement is to advance<br />

cricket as <strong>Australia</strong>'s national sport by growing<br />

pmticipation and interest in the game; fostering<br />

the success of <strong>Australia</strong>n teams; and striving for<br />

commercial excellence, in a manner that upholds<br />

the tradition, integrity and spirit of cricket.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

CRICKET AUSTRALIA<br />

0 There 3.1·e 436,000 registered c1icket<br />

pmticipants in <strong>Australia</strong>.<br />

0 Women's cricket at intemationallevel has<br />

adopted the same baggy green cap as<br />

men's Ciicket with a slightly different logo.<br />

0 In Ap1il 2004, the Ciicket Centre of<br />

Excellence opened in Btisb3.!1e.<br />

0 In the 2002-2003 season, Cricket<br />

<strong>Australia</strong> generated total revenue of<br />

$87.1 million.<br />

0 The first recorded women's cricket<br />

match in <strong>Australia</strong> took place in 1874.<br />

35


THE MARKET<br />

It will be no surprise to readers of th is<br />

book to learn that the a lcohol<br />

beverage market has changed<br />

almost beyond recognition over the<br />

past ten years. Historically our<br />

alcohol consumption patterns were<br />

pretty well set. We had a beverage of<br />

choice and stuck to it. It is a different<br />

story today with consumers broadening<br />

their repettoire of alcohol beverages and regularly<br />

shifting between beer, wine, spirits and pre-mixed<br />

drinks.<br />

Believe it or not, that's aU good news for premium<br />

beer because people choose their drinks based on<br />

their mood and the occasion and, since they have<br />

more spending money in their pockets, they are<br />

not averse to paying a little bit more for something<br />

that represents quality and status.<br />

In the past five years alone, around 52 new<br />

premium beers have been launched into the<br />

<strong>Australia</strong>n market. Of the total beer market,<br />

premium beer accounts for 6.2 per cent- and it<br />

is growing at around I 0 per cent per year.<br />

ACHIEVEMENTS<br />

One premium beer that has been around a lot<br />

longer than any other- fifty years to be precise ­<br />

is Crown Lager.<br />

Crown Lager has held onto the number one<br />

premium beer spot for five glorious decades and<br />

in spite of competition from a whole range of<br />

imported and new domestic bra1ids, Crown keeps<br />

growing its share of the premium beer market and<br />

proving itself to be the epitome of <strong>Australia</strong>'s Finest.<br />

Over the years Crown has been rewarded with many<br />

accolades including Premium Beer of the Year at<br />

the 2002 <strong>Australia</strong>n Liquor Industry Awards.<br />

HISTORY<br />

Without a doubt, Crown Lager is one of <strong>Australia</strong>'s<br />

most iconic brands. It is the country's original<br />

premium beer and continues to outsell any other<br />

premium beer on the market.<br />

Crown Lager had an auspicious start. It was<br />

launched to the <strong>Australia</strong>n consumer in June 1953<br />

to celebrate the coronation of Queen Elizabeth II.<br />

Prior to that it was available only to an exclusive<br />

group of individuals made up of diplomats and<br />

visiting dignitaries.<br />

But once in the hands of the public, the brand<br />

took off and has never looked back. Fifty years<br />

on, people with something to celebrate - no<br />

matter how big or small the occasion - still<br />

mark the moment with a Crown Lager.<br />

Crown's signature cone-shaped<br />

bottle and foil label have changed little<br />

in the 50 years. Only four times over<br />

five decades has the packaging been<br />

altered- a testament to the enduring<br />

strength of the brand. The last change<br />

was the development of a full gold<br />

foil neck label to commemorate tl1e 50' 11<br />

anniversary in 2003.<br />

Exactly how does an iconic brand li ke Crown<br />

Lager, a brand which symbolises celebration in the<br />

hearts and minds of <strong>Australia</strong>n beer consumers<br />

everywhere, honour its own<br />

golden anniversary? By hosting<br />

the party of the year at another<br />

A u stra li an<br />

icon - the Sydney Opera House.<br />

On July 3R 1 2003, Crown's 50' 11 anniversary was<br />

celebrated in style in the fashionable Sydney<br />

Opera House restaurant, Guillaume at<br />

Bennelong. The venue was bathed in golden<br />

light, the glow from which could be seen from<br />

the long approach along Circular Quay. Guests<br />

included the who's who from the worlds of<br />

fashion , art, media, te levision, sport,<br />

hospitality and, of course, the Carlton &<br />

United Breweries staff who helped make<br />

Crown Lager the success it is today. A<br />

spectacular stage show featuring music and<br />

dance from Crown's five glorious decades<br />

entertained more than 500 guests who<br />

managed to pruty on until the eru·Jy hours<br />

of the follow ing morning. It was a fitting<br />

tribute to commemorate Crown' s five<br />

decades as <strong>Australia</strong>'s Finest premium<br />

beer.<br />

THE PRODUCT<br />

Crown Lager is renowned for its creamy<br />

fruitiness and rich, malty mid palate. It is<br />

brewed pure ly to deliver premium<br />

enjoyment ·and is crafted from the<br />

choicest <strong>Australia</strong>n malt and the season's<br />

best 'Pride of Ringwood' hops.<br />

Coincidentally, 'Pride of Ringwood'<br />

also celebrates 50 great yeru·s in 2003. It<br />

was developed by a CUB research team<br />

and by the end of the 1950s, this hardy<br />

36


and hi gh yielding hop<br />

variety had transformed<br />

the <strong>Australia</strong>n<br />

brewing industry. For<br />

a whi le it featured in<br />

every CUB beer and<br />

remains the c lassic<br />

bittering hop in<br />

Crown Lager.<br />

RECENT<br />

DEVELOPMENTS<br />

One of Crown Lager's<br />

success factors is consistency. Over the decades<br />

very little has changed. Cettainly the recipe, a closely<br />

·TJu·: Hf'l"t' :-.~'!"\I 'd al pn·ci ~t ·l: lilt' t ·i~!Jt l c•Jl ljlt'I'HIIIIT.<br />

So \HTt' tlw o:·stcr)"o:·<br />

guarded secret, is the same now as it was back in<br />

1953.<br />

Where Crown has changed is in its mru·keting.<br />

Going back to our struting point about the fickle<br />

alcohol consumption habits oftoday's consumers,<br />

the people behind the brand have recognised the<br />

importance of Crown being seen in the right hands<br />

and ri ght places outs ide of mainstream advertising<br />

and promotion.<br />

Crown Lager is the first choice of a number of<br />

<strong>Australia</strong>'s elite sp01ting personalities who celebrate<br />

their victories with Crown. Such is the association<br />

with cricket a11d <strong>Australia</strong>11 Rules footbal l in<br />

pruticular, that Crown Lager<br />

now has a formal<br />

re lationship w ith Cricket<br />

Austra li a and the AFL<br />

through its s upport and<br />

sponsorship of the Allan<br />

Border and Brownlow<br />

medals. Underpinning all<br />

this activity is ongoing<br />

support for smaller but<br />

equally exclu sive and<br />

influential events in the<br />

world of art, fashion,<br />

sport and entertainment.<br />

While Crown's<br />

packaging has been<br />

altered only four times in<br />

50 years again<br />

maintaining<br />

consistency over a<br />

long period - prut of<br />

the 50' 11 anni versru·y<br />

celebrations was a<br />

national competition<br />

among Austra lia's<br />

leading tertiary<br />

design colleges to<br />

design a special 50' 11<br />

anniversary Crown<br />

Lager label.<br />

Hundreds of<br />

students from all over the country vied for the prize<br />

-an Apple i-book computer plus a pallet of Crown<br />

Lager, packaged in their own design, for them to<br />

shru·e with their college mates. The project attracted<br />

a huge amount of interest and, importantly for the<br />

brand, Crown Lager benefited from having a high<br />

profile among the key influencers of tomorrow.<br />

PROMGnON<br />

As the Crown Lager bottle and the packaging have<br />

evolved over time, so has the advertisi ng. One<br />

reason for this is the fact that only one agency has<br />

ever been responsible for developing adverti sing<br />

for the brand. George Patterson Bates has been<br />

responsible for devising the creative content of<br />

Crown's advettising for most of the brand's 50<br />

yeru·s. And whi le CUB has been careful to maintain<br />

the brand's consistency, the agency has worked<br />

hru·d to make sure the


THE MARKET<br />

<strong>Australia</strong>'s growing appetite for pizza is<br />

fuelling a $1.4 billion industry. More than<br />

133 million pizzas are sold in <strong>Australia</strong><br />

every year - that's more than seven for<br />

every <strong>Australia</strong>n man, woman and child.<br />

At least four in five <strong>Australia</strong>ns buy<br />

and eat a pizza in any tlu·ee-month period,<br />

with the majority of pizza consumers aged<br />

between 25 and 44 years. Couples with<br />

children at home consume the most pizza,<br />

while young single males are the most<br />

frequent purchasers. In <strong>Australia</strong>,<br />

Domino's Pizza sells about 34 million<br />

pizzas each year making it one of the<br />

country's top pizza makers.<br />

Founded in 1960, Domino's is the<br />

recognised world leader in pizza delivery,<br />

operating a network of more than 7,300<br />

stores in more than 50 countries.<br />

Domino' s Pizza <strong>Australia</strong>, a 100 per cent<br />

<strong>Australia</strong>n-owned company with the <strong>Australia</strong>n and<br />

New Zealand master franchise for the brand,<br />

operates more than 280 company-owned and<br />

franchised stores. Domino's Pizza <strong>Australia</strong> leads<br />

in the majority of its markets around <strong>Australia</strong>.<br />

ACHIEVEMENTS<br />

Since its inception, Domino's Pizza <strong>Australia</strong> has<br />

delivered a series of products and innovations<br />

which have revolutionised the <strong>Australia</strong>n pizza<br />

industry.<br />

In 1980 Domino's Pizza <strong>Australia</strong>, then trading<br />

as Silvio's Dial-A-Pizza, was the fu·stin Aust:ralia to<br />

introduce home pizza delivery. This<br />

concept proved extremely popular,<br />

prompting competitors to follow<br />

suit. Today, Domino's delivers ten<br />

million pizzas to <strong>Australia</strong>n<br />

households each year.<br />

Introduced in 2000, Hot Cell is<br />

<strong>Australia</strong>'s first electronic hot bag<br />

for pizza delivery. Using a patented<br />

state-of-the-art heating element and<br />

special insulation material, Domino' s<br />

Hot Cell works like a portable oven<br />

ensuring pizza is delivered up to 20<br />

per cent hotter.<br />

Designed to fill the gap between<br />

Deep Pan and Thin 'n' Crispy bases,<br />

the Classic Crust is a pizzeria-style<br />

crust which now accounts for almost<br />

half of all Domino's Pizza <strong>Australia</strong><br />

sales. Introduced in 2002, the<br />

Classic Crust dough was originally developed by<br />

Domino's Pizza <strong>Australia</strong> CEO Don Meij for use in<br />

an apple turnover product. He cooked the dough<br />

in a pan to create a baked crust and the Classic<br />

Crust was born.<br />

All Domino' s staff receive proper t:raining from<br />

the minute they set foot inside a Domino' s store.<br />

This covers customer service, product quality and<br />

occupational health and safety. Domino's Pizza<br />

College is the company's management training<br />

program, helping to transform today' s pizza delivery<br />

drivers into tomorrow' s management team. It gives<br />

employees a qualification which is recognised<br />

internationally and helps young guns launch a<br />

career in the industry.<br />

The Partners Foundation is a nonprofit,<br />

non-compulsory fund to which all<br />

employees are encouraged to donate.<br />

The purpose of the foundation is to<br />

provide financial assistance to employees<br />

and their families who have fallen on hard<br />

times. The foundation has helped over<br />

100 people at a cost of approximately<br />

$96,000 since its inception on 30th June<br />

1997.<br />

HISTORY<br />

Domino's Pizza <strong>Australia</strong> began in the<br />

Brisbane suburb of Red Hill in 1978 as<br />

Silvio's Dial-A-Pizza. Founded by two<br />

enterprising brothers, Silvio and Fe!<br />

Bevacqua, Silvio's embarked on a rapid<br />

expansion throughout <strong>Australia</strong> and by<br />

1993 had more than 70 stores in<br />

Queensland, New South Wales, Western <strong>Australia</strong>,<br />

Tasmania and the Northern Territory.<br />

In 1993, Silvio's Dial-A-Pizza bought the<br />

<strong>Australia</strong>n and New Zealand master franchise for<br />

the international Domino's brand. Between 1995<br />

and 1996, theDomino's and Silvio's groups merged<br />

and all stores were branded as Domino's.<br />

With almost 30 years of local experience and a<br />

new, aligned, fighting, entrepreneurial spirit,<br />

Domino's Pizza <strong>Australia</strong> began heading for market<br />

leadership.<br />

In Apri I 2001 , Don and Esme Meij and Grant and<br />

Sandy Bourke, two of <strong>Australia</strong>' s largest<br />

franchisees, merged their 25 franchised stores into<br />

the master franchise and purchased<br />

23 per cent of Domino' s Pizza<br />

<strong>Australia</strong>. They remain the operating<br />

shareholders of the company.<br />

Today, Domino's Pizza <strong>Australia</strong><br />

employs more than 8,000<br />

<strong>Australia</strong>ns, operates more than 280<br />

stores and sells more than 34 million<br />

pizzas each year.<br />

IttookDomino's Pizza<strong>Australia</strong><br />

23 years to achieve a turnover of<br />

$ 150 million. Two years later the<br />

company broke through the $200<br />

million mark and during the next 18<br />

months it expects to pass $250<br />

million.<br />

THE PRODUCT<br />

When it comes to pizza, Domino's<br />

Pizza <strong>Australia</strong> has proven that<br />

38


choice is supreme.<br />

Domino's continually researches new<br />

topping combinations and new pizza bases.<br />

It develops about 10 pizza concepts a week,<br />

but only about one in 30 ends up on the<br />

menu.<br />

Every few months, a range of new tastes<br />

is introduced for a limited time to cater to<br />

the ever-evolving tastebuds of <strong>Australia</strong>n<br />

pizza-lovers. No pizza topping is left<br />

untasted, with the recent Double Bacon<br />

Cheeseburger pizza the first in <strong>Australia</strong> to<br />

feature mayonnaise. It quickly proved<br />

popular and won a permanent place on the<br />

Domino's pizza menu.<br />

Domino's also conducts regular taste<br />

test focus groups to trial the new pizza<br />

toppings and bases. New pi zzas have to<br />

succeed here if they are to make it into the stores.<br />

With the company's move into New Zealand in<br />

mid 2003, Domino's realised that different<br />

nationalities have their own tastes. The Kiwi Kev<br />

is the frrst in a planned series of pizzas specifically<br />

designed for New Zealand taste buds.<br />

Sourcing fresh products is one of the keys to<br />

Domino' s continued success. It is one of the few<br />

<strong>Australia</strong>n pizza-makers to use vine-ripened instead<br />

of gas-ripened tomatoes, along with sun-dried<br />

tomatoes to enhance the flavour of the pizza.<br />

More than 94 per cent of Domino's Pizza<br />

<strong>Australia</strong>' s expenditure is spent on sourcing<br />

<strong>Australia</strong>n products. It spends $61 million each<br />

year on <strong>Australia</strong>n ingredients like yeast, plain flour,<br />

chicken, pizza sauce, cheese, beef, ham, pepperoni,<br />

bacon, mushrooms, capsicums, tomatoes and<br />

OniOnS.<br />

RECENT DEVELOPMENTS<br />

In the 2002/03 financial year, Domino' s increased<br />

store numbers by almost a qmuter to 245. Soon<br />

after that, Domino's opened its 250'" <strong>Australia</strong>n store<br />

in the Sydney suburb of N01th Strathfield. By the<br />

end of2003, Domino's had more than 280 <strong>Australia</strong>n<br />

stores- well on its way to achieving its long-term<br />

goal of having 500 stores by 2008. The company<br />

had also launched its first stores in Victoria,<br />

previously the only <strong>Australia</strong>n state without a<br />

Domino's presence.<br />

Following strong domestic growth, Domino's<br />

Pizza <strong>Australia</strong> moved into its first international<br />

market in 2003. In July, Domino's opened in New<br />

Zealand and by the end of 2003 had more than I 0<br />

stores operating in the country. The first New<br />

Zealand store in Johnsonville, Wellington, sold<br />

5, 134 pizzas in its first week - believed to be the<br />

fowth highest number of pizzas ever sold in the<br />

opening week of any of Domino's stores worldwide.<br />

At its busiest times the store was making up to four<br />

pizzas a minute.<br />

PROMOTION<br />

Domino's Pizza <strong>Australia</strong> is one of the most<br />

recognised brands in <strong>Australia</strong>. Its catchy tagline<br />

"I've got the hots for what's in the box with the<br />

dots" is also frrmly etched in the minds of <strong>Australia</strong>n<br />

pizza-lovers thanks to a series of television<br />

advertisements.<br />

Other pizza companies operating in <strong>Australia</strong><br />

have used their advertising to criticise their<br />

competition. But capturing the fun and youthorientated<br />

nature of the company, Domino's<br />

advertisements focus simply on the company 's<br />

expe1tise in making and delivering the freshest and<br />

best-tasting pizza on the market.<br />

Domino's also has regular adve1tisements aimed<br />

at informing <strong>Australia</strong>ns about its latest products,<br />

such as the Classic Crust and new menu items.<br />

Another way Domino's Pizza <strong>Australia</strong> has<br />

helped promote its fun approach to life is by<br />

launching a range of research measuring the social<br />

pulse of <strong>Australia</strong>. In 2003 Domino' s customers<br />

predicted the 2003 Gold Logie winner, Rove<br />

McManus, and the Big Brother Series 3<br />

winner, Reggie.<br />

BRAND VALUES<br />

Twenty-five years ago, Domino's Pizza<br />

<strong>Australia</strong> began delivering fresh, hot and<br />

great-tasting pizza. While times may have<br />

changed, this core mission has remained<br />

the same. More than ever, Domino's<br />

remains the pizza making and delivery expert.<br />

Willie Domino's offers customers pizza<br />

accompaniments like soft drinks and garlic<br />

bread, its focus remains finnJy on pe1fecting<br />

the perfect pizza.<br />

Domino's Pizza <strong>Australia</strong> is also<br />

committed to creating a fun team culture<br />

and helping youth develop a career with<br />

Domino's. This has been achieved tlu·ough<br />

Pizza College and a range of other initiatives which<br />

help young team members to become store<br />

managers, store owners and more.<br />

Through its products, innovations and staff<br />

incentives, Domino's PizzaAust:ralia is etched firmly<br />

in <strong>Australia</strong>n minds as a company that is committed<br />

to delivering the best-quality pizzas and playing a<br />

pivotal role in the development of the local pizza<br />

industry.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

DOMINO'S PIUA AUSTRALIA<br />

0 Each year Domino's uses more than<br />

3,720 tonnes of pizza sauce and 5,600<br />

tonnes of cheese to cook about 40<br />

million pizzas.<br />

0 The NRL State of Origin, September<br />

school holidays, Easter and the<br />

Christmas-New Year period are the<br />

busiest times of the year for Domino's<br />

pizza delive1ies.<br />

0 Any Domino's team member who<br />

nominates a new pizza topping<br />

combination that makes it onto the<br />

menu earns a$ 1,000 bonus.<br />

0 CtllTentDomino's Pizza <strong>Australia</strong> CEO<br />

Don Meij began working as a<br />

Domino's pizza delivery d1iverin 1987<br />

while st11dying to be a high school<br />

teacher. Fifteen years later, after being<br />

a store manager and franchisee, Don<br />

became the CEO of tl1e company.<br />

0 Domino's drivers make more than<br />

92,000 pizza deliveries each week.<br />

0 Residents of the regional New South<br />

Wales city of P01t Macquarie lay clain1<br />

to eating the most Domino's pizzas in<br />

one day. On December 6, 2003,<br />

Domino's Port Macquarie sold 4,890<br />

pizzas - more pizzas than the average<br />

Domino's store sells in one week !<br />

0 Adelaide is home to <strong>Australia</strong>'s fastest<br />

pizza makers. A team of four Adelaide<br />

Domino's team members won the 2002<br />

National Pizza Make Off after making<br />

six pe1fect pizzas in just 77.58 seconds.<br />

0 Domino's bi-annual World Wide Rally,<br />

held in Las Vegas, attracts over 5,000<br />

pizza franchisees and managers from<br />

around the world.<br />

39


Dulux®<br />

;·<br />

'-·· . . -· ·.. ·. ·- .<br />

THE MARKET<br />

Painting and home decorating have become<br />

increasingly popular in <strong>Australia</strong>. Global<br />

unce1tainty has channeled people's energy into<br />

areas where they feel relaxed and comfmtable,<br />

with a greater sense of control: areas such as<br />

the family home. Boosted by the phenomenal<br />

success of DIY television shows, people are<br />

using colour and effect to express who they<br />

are and to transform their homes.<br />

Since 2001 , boosted by the introduction of<br />

the GST, strong residential construction<br />

combined with the emergence of a strong DIY<br />

sector has resulted in above average growth in<br />

both Retail and Trade markets. The continued<br />

increase in DIY consumer confidence and a<br />

strong local economy will keep demand<br />

growing.<br />

The paint season tends to be between<br />

September and Easter to coincide with warmer<br />

weather and holidays. Weather conditions have<br />

a significant impact on the paint market,<br />

pmticularly the demand for exterior paints. The<br />

paint market is also affected by trends in<br />

housing construction and renovation, as well<br />

as consumer confidence in the economy.<br />

ACHIEVEMENTS<br />

When <strong>Australia</strong>ns think paint, they think Dulux.<br />

The Dulux name is recognised by more than 80 per<br />

cent of <strong>Australia</strong>ns. Dulux has em·ned its reputation<br />

through its commitment to research and<br />

development and its emphasis on high quality<br />

products. Dulux employs more than 70 scientists<br />

and specialists who work on developing the next<br />

generation in Slllface coatings.<br />

Recent exciting developments in paints include<br />

Dulux Mouldshield®, a revolutionary polymer latex<br />

that was able to provide superior performance with<br />

high levels of mould-inhibiting zinc oxide, and Dulux<br />

Aquanamel, a water-based enamel paint that uses<br />

new polymer technology developed by the Dulux<br />

R&D team. This technology enabled a significant<br />

reduction in the usage of volatile organic<br />

compounds.<br />

HISTORY<br />

Dulux is an entirely <strong>Australia</strong>n-owned and<br />

manufactured brand. In July 1997, ICI <strong>Australia</strong><br />

Limited became an independent company when its<br />

British parent divested itself of its majority<br />

shareholding interest in its <strong>Australia</strong>n operations.<br />

To recognise the new independence the company<br />

name, ICI <strong>Australia</strong> Ltd, was changed to Orica Ltd<br />

in February 1998.<br />

Orica is the largest chemical company in the<br />

region, employing I 0,000 people around the world.<br />

Orica manufactures and markets industrial and<br />

specialty chemicals, agricultural chemicals and<br />

fe1tilisers, explosives and mining chemicals, plastics<br />

and paints. Through its Consumer Products<br />

Division, based in <strong>Australia</strong>, Orica manufactures a<br />

comprehensive range of paints and is <strong>Australia</strong> ' s<br />

Jm·gest manufacturer and supplier of surface<br />

coatings. With manufacturing sites and a worldclass<br />

paint technology centre in Am;tral ia (plus<br />

sites in New Zealand, Fiji and Papua New<br />

Guinea), Dulux is recognised as the cornerstone<br />

of Orica's paint business and the number one<br />

brand in the industry.<br />

THE PRODUCT<br />

Over the past 40 yem·s, Dulu x has made some<br />

of the most significant contributions to the paint<br />

industry. For example, in the 1960s Dulux<br />

launched the first water-based paints. This new<br />

type of paint was much easier to apply than<br />

solvent paint and is, in pm·t, credited with the<br />

continuing strength of the Do-It-Yourself paint<br />

mm·ket in <strong>Australia</strong>.<br />

In the 1970s, Dulux improved its water-based<br />

paints to meet consumer demand for durability<br />

and stain resistance. This led to the introduction<br />

of WeathershieJd® X I 0 with its I 0-year<br />

guarantee and Wash & Wear I 0 I® with its<br />

patented stain-resistant properties.<br />

Wash & Wem I 0 I is regarded as one of the<br />

most successful product launches in <strong>Australia</strong>.<br />

In-depth understanding ofthe mm·ket, a strong<br />

communication package and an outstanding,<br />

differentiated proposition that addressed a key<br />

consumer need resulted in substantially<br />

increased market share. Wash & Wem I 0 I also set<br />

the standard for all other interior topcoat paints.<br />

Dulux is renowned for its outstanding customer<br />

service. This has been recogni sed within the<br />

industry and by customers. In 2003, the Paint<br />

Specialist Association of <strong>Australia</strong> awarded Dulux<br />

with the 2003 Best Customer Service Depm·tment.<br />

In the same year, Du lu x was recognised by one of<br />

the leading hmdwme chains in <strong>Australia</strong>, being<br />

40


named Mitre lONational Supplier of the Year.<br />

Dulux offers a comprehensive range of high<br />

quality prepcoats, interior topcoats, exterior<br />

topcoats and specialty paint products at the<br />

premium end of the market.<br />

RECENT DEVELOPMENTS<br />

Dulux has consistently offered the widest range of<br />

colours suitable for both interior and exterior<br />

applications. Easy to use colour tools and the<br />

outstanding Dulux Customer Service help line have<br />

given the consumer confidence when using Dulux<br />

products.<br />

Choosing the right colour and deciding on a<br />

suitable colour scheme can be one of the most<br />

difficult parts of the painting<br />

process. Dulux has a number<br />

of excellent tools available<br />

for customers to make<br />

this choice easier.<br />

The Dulux Colour<br />

Consultancy is a service<br />

avai lable for clients<br />

wishing to have<br />

professional Colour<br />

Consultant come into their<br />

home and develop a unique<br />

colour scheme for their<br />

house.<br />

The recent upgrade of<br />

the Dulux Mycolour system<br />

enables users to input their<br />

own digital image and<br />

develop new colour<br />

schemes with confidence. This<br />

system is available on CD ROM and<br />

through an Internet site, www.dulux.com.au .<br />

The use of bold colour, texture and effect<br />

continues to grow in <strong>Australia</strong>. The ongoing<br />

strength of Dulux Suede and more recently Dulux<br />

Metallic, Glimmer, Pem·Justre and Sands wept Effects<br />

is evidence of increased consumer confidence and<br />

a sense of fun when it comes to decoration.<br />

There is also a strong trend towm·ds creating<br />

li ving spaces outdoors. Outdoor colour finishes<br />

such as Dulux Weathershield Garden Shades and<br />

Tuscan Effects are being used on traditional<br />

outdoor smfaces but also increasingly on feature<br />

walls, gmden furniture and pots.<br />

Helping the environment and its customers,<br />

Dulux have launched a water-based enamel, Dulux<br />

Aquanamel. New polymer technology developed<br />

by Dulux <strong>Australia</strong> R&D delivers unique application<br />

and flow out properties that provide the gloss and<br />

flow of an enamel with water wash-out, and non<br />

yellowing properties much liked in water-based<br />

products. Growth of this low YOC product will<br />

supp01t safer working conditions for users and see<br />

a net decrease in the amount of greenhouse gas<br />

emissions from paint.<br />

The difficulty associated with painting ceilings<br />

has recently been addressed by Dulux "Never<br />

Miss" One Coat Ceiling White. This innovative<br />

paint applies pink and dries white enabling users<br />

to see where they have been as they are painting<br />

so they don't notice (after they've finished) that<br />

they missed a spot.<br />

For customers looking for a luxurious finish to<br />

their home, Dulux recently launched a new premium<br />

paint, Designer Silk'flvl . Designer SilkTM offers<br />

customers a smooth luxurious low sheen finish.<br />

From the most delicate of whites to the boldest of<br />

colours, the Dulux Designer SiLkHvl range has been<br />

designed to reflect a customer's sense of style and<br />

taste.<br />

PROMOTION<br />

As mmket leader, Dulux always aims to dominate<br />

shm·e-of-voice in the paint category. The consistent<br />

use of television adverti sing has contributed to<br />

Dul ux' s sustained share-of-mind.<br />

The recent Pe1fect Reel & Pe1fect Blue campaigns<br />

and the Dulux Nevermiss advertisements<br />

reinforced brand dominance in the mm·ket place.<br />

The strong DIY trend is also reflected in the<br />

immense popularity of home<br />

decorating television<br />

programs (and their spin-off<br />

magazines and web sites).<br />

Backyard Blitz, Hot<br />

Property and Ground<br />

Force have rated among<br />

the Top 10 regular<br />

programs offered on<br />

commercial television stations<br />

in2003.<br />

The Channel 9 series,<br />

"The Block" which is a reality<br />

TV show about four couples<br />

who were each given the task<br />

of renovating an apartment in<br />

a block of flats, was the<br />

highest rating show in<br />

<strong>Australia</strong> in 2003.<br />

In addition, Dulux spends<br />

millions of dollars every year providing<br />

colour chips and colour cards to consumers via<br />

hm·dware stores and paint specialists. More than<br />

two-thirds of paint buyers use colour cm·ds or chips<br />

to make their selection. About one-third of DIY<br />

painters use sample pots. Dulux was the first brand<br />

to introduce and promote sample pots on a national<br />

basis.<br />

BRAND VALUES<br />

Brand tracking consistently confirms that Dulux is<br />

regarded by <strong>Australia</strong>n DIY painters as the most<br />

innovative paint company offering a quality range<br />

of paints, including the most washable and<br />

scrubbable interior paint. Consumers also regm·d<br />

Dulux as the leading brand of paint. The brand has<br />

strong family values and is a respected and trusted<br />

brand.<br />

In October of 2003, a brand new television<br />

campaign designed to build a strong association<br />

for the Dulux brand with colour was launched<br />

nationally. The new Dulux Colour Perfection<br />

campaign is based on the idea of what inspires us<br />

to have a favourite colour. The campaign consisted<br />

of two advertisements. Both are a celebration of<br />

colour and the role it plays in our lives. The public's<br />

NeverMiss· ceiling paint.<br />

G oes on pink, dries white.<br />

response to these advertisements was extremely<br />

positive with brand awareness jumping to just over<br />

85 percent.<br />

The recent Dulux Never Miss and Dulux Suede<br />

Effects television adverti sements m·e a fun but very<br />

effective way of promoting product with the muchloved<br />

'Dulux Dog' taking centre stage. The 'Dulux<br />

Dog' is an Old Engli sh sheepdog, and has been<br />

associated with the brand since the 1960s.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

DULUX<br />

0 The well-knownDulux tagline, Worth<br />

doing, Wmth Dulux 0 was first<br />

introduced in the 1970s.<br />

0 The Old English sheepdog is so solidly<br />

entrenched as a branding device that<br />

many people refer to the breed as<br />

"Dulux clogs". All but one of the dogs<br />

featured in the advertising campaigns<br />

have been breed champions and five<br />

have won a 'Best of Show' prize.<br />

0 There me some 1200 jelly bem1s in a 4-<br />

litre can of Dulux Jelly Beans (one of<br />

Dulux's very successful promotions).<br />

0 In-store colour tinting was introduced<br />

in the 1950s.<br />

41


ALKALINE BATTERIES<br />

THE MARKET<br />

Duracell, a division of The Gillette Company, is<br />

the world's leading manufacturer and marketer<br />

of high-petformance alkaline batteries. When<br />

consumers around the world buy Duracell<br />

batteries, they are buying more than high-quality<br />

portable power. They are buying freedom because,<br />

increasingly, batteries power a mobile lifestyle in<br />

which consumers use and enjoy an ever-growing<br />

number of devices that formerly required 'plug-in'<br />

power.<br />

Batteries are the power source for millions of<br />

consumer, business,<br />

medical, military and<br />

industrial devices worldwide.<br />

Demand is huge<br />

and growing. More<br />

than 20 billion<br />

batteries are consumed<br />

annually across<br />

the world. In <strong>Australia</strong><br />

the annual consumption<br />

is estimated to be over 200<br />

million cells, with alkaline<br />

batteties accounting for over<br />

60 per cent of this.<br />

The average household has<br />

more than twenty battery-operated<br />

appliances including remote controls,<br />

alarm clocks, radios, smoke alarms, cameras<br />

and CD players. However, one third of all devices<br />

lie idle for want of a battery, even though batteries<br />

are one of the most widely distributed products.<br />

Batteries are available in a vast array of retail outlets<br />

from grocery stores to petrol stations and<br />

newsagents to electrical outlets.<br />

there technology moved fast, simultaneously<br />

reducing the cell size and increasing its capacity.<br />

The story of Duracell began in the early 1920s<br />

with an inventive scientist named Samuel Ruben<br />

and an eager manufacturer of tungsten filament<br />

wit·e named Philip Rogers Mallory. Ruben and<br />

Mallory united inventive genius with<br />

manufacturing muscle to create Duracell<br />

International, revolutionising battery technology.<br />

In the 1950s, Samuel Ruben went on to improve<br />

the alkaline manganese battery, making it more<br />

compact, durable, and longer-lasting than anything<br />

before it. At about the same time,<br />

Eastman Kodak introduced<br />

cameras with a built-in flash<br />

unit that required more<br />

power than zinc carbon<br />

cells could provide. The<br />

cameras needed alkaline<br />

manganese cells but in a<br />

new size, the AAA. This<br />

put alkaline cells on the<br />

map and the Duracell brand<br />

was introduced in 1964. It was<br />

not long before the consumer<br />

market for Duracell batteries<br />

rocketed.<br />

THE PRODUCT<br />

When Duracell arrived in <strong>Australia</strong>, it increased<br />

competition in the local battery market. Consumers<br />

began switching to Duracell to satisfy the<br />

requirements of the more complex devices which<br />

required alkaline batteries' genuine longer-lasting<br />

qualities versus zinc. The personal stereo alone<br />

HISTORY<br />

The twenty-first century marked the 200th bitthday<br />

of the battery, which was invented in 1800 by<br />

Alessandro Volta who described it as a<br />

'constmction of an apparatus ... of unfailing charge,<br />

of perpetual power. .. '<br />

Early batteries were hardly the neat cylinders<br />

we know today. The 'Voltaic Pile' battery, based on<br />

Volta' s design, constructed in 1813 by Sir Humphrey<br />

Davy in the cellars of the Royal Institute in London,<br />

covered 889 square feet.<br />

The first portable batteries were seen at the turn<br />

of the last century where they were used in<br />

conjunction with flashlights, so called because the<br />

battery power could only sustain an intermittent<br />

light. By World War I, batteries were being used<br />

extensively in communication equipment and from<br />

ALKALINE BATTERIES<br />

CUARAilEfO<br />

AlfSH<br />

TlfiOUGH<br />

2010<br />

42


saw the demand for AA alkaline batteries escalate<br />

beyond anyone's wildest marketing plans. The<br />

constant evolution of today's devices such as<br />

digital cameras and MP3 players towards ever<br />

smaller and more power-hungry units has<br />

continued to drive growth.<br />

Duracell does not just manufacture alkaline<br />

batteries. The brand was at the forefront of lithium<br />

technology used primarily for photographic<br />

applications, which allowed the surges of instant<br />

power required to operate several features<br />

simultaneously. Today, well over half of all new<br />

battery-operated cameras use lithium power.<br />

Duracell also offers a range of zinc-air hearing aid<br />

batteries, NiMH rechargeable batteries and<br />

rechargers, zinc-oxide watch and calculator<br />

batteries, and a range of indoor and outdoor<br />

torches.<br />

RECENT DEVELOPMENTS<br />

In 2000 Duracell launched the Ultra range in<br />

<strong>Australia</strong>. The Ultra range is designed specifically<br />

for power-hungry, high-drain devices offering 'more<br />

energy, more efficiency and more power' versus<br />

regular Duracell batteties in these devices.<br />

In 2003 Duracell introduced its colour coding<br />

system to help educate consumers to use colour in<br />

the correct selection of battery sizes. This<br />

involved a fully coordinated approach<br />

involving packaging, point-of-sale matetial,<br />

promotions and advertising.<br />

PROMOTION<br />

Duracell has consistently promoted itself<br />

as a long-lasting battery brand. The line<br />

"No ordinary battery looks like it or lasts<br />

like it" was used in a long mnning statement<br />

in which consumers had great confidence.<br />

Now Duracell simply states "Duracell.<br />

Quality that Lasts.". However, the overall<br />

message remains constant and it is this<br />

single-minded proposition used across all<br />

advertising, which despite the varied<br />

treatments of its campaigns has remained<br />

unchanged. Research by Millward Brown<br />

has shown that 79 per cent of people consider<br />

Duracell to be the longest-lasting battery and 70<br />

per cent said it is "in<br />

a class of its own".<br />

In <strong>Australia</strong> the<br />

Duracell brand is<br />

synonymous with the ever-energetic<br />

Bunny. The Duracell icon has been constantly<br />

reinventing itself since its first appearance as the<br />

longest-lasting Drumming Bunny in the 1980s. It<br />

has continued to outlast 'ordinary carbon zinc<br />

batteries' at soccer, kayaking, mountai n climbing<br />

and, most recently, running.<br />

Duracell <strong>Australia</strong> has strong links to community<br />

initiatives, most notably the annual Fire Services<br />

campaign to ensure household smoke alarms are in<br />

working order. The <strong>Australia</strong>n Fire<br />

Services recommend the use of an<br />

alkaline 9V battery in the most<br />

important of household devices,<br />

the smoke alarm, leading to the<br />

partnership with Duracell, which<br />

involves advertising, public<br />

relations, promotion and product<br />

donations. In 2004 this relationship<br />

has been fmther strengthened, with<br />

Duracell commissioning a<br />

campaign TV commercial,<br />

using a hard-hitting<br />

message to fmther raise<br />

consumer awareness of<br />

this impmtant message.<br />

BRAND VALUES<br />

Duracell is a pioneer of new battery technology<br />

and has many groundbreaking technology<br />

launches to its name. The brand strives to ensme<br />

that consumers associate it with providing reliable,<br />

longer-lasting batteries.<br />

The purpose of all Duracell 's efforts is to<br />

understand the fast-moving technology driving its<br />

business and to apply that knowledge in the<br />

company's pmsuit of excellence. That has always<br />

been Duracell's greatest strength and it is the key<br />

to its remaining the leader in the global marketplace<br />

for packaged power.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

DURACELL<br />

0<br />

0<br />

0<br />

The smallest Duracell battery is the 317<br />

Watch battery weighing in at 0.19<br />

grams and measmingjust 5.5mm by<br />

1.6mm.<br />

Despite all the hundreds of different<br />

battery sizes available, just five sizes<br />

account for over 95 per cent of all<br />

batteties consumed - AA, AAA, C, D<br />

and 9V.<br />

In 2003 the Duracell Bunny celebrated<br />

its 30th Birthday.<br />

43


8J Electrolux<br />

THE MARKET<br />

No market more accurately reflects our changing<br />

needs than that for domestic appliances. Refrigerators,<br />

vacuum cleaners and lawnmowers evolve<br />

quickly to till the demands of discerning and critical<br />

homemakers.<br />

The whitegoods market alone is valued at more<br />

than $2.5 billion per year in <strong>Australia</strong> and continues<br />

to grow in tandem with <strong>Australia</strong>ns' love affair with<br />

residential property investment, and particularly the<br />

family home which is exempt from capital gains tax.<br />

This in turn has promoted increased entertaining<br />

in the home and open plan living- trends which<br />

affect appliance design. While the building sector<br />

appears set for a period of consolidation in 2004/<br />

05, property investment, including the additions<br />

and renovations sector, continues to surge and<br />

underpin the domestic appliance market.<br />

ACHIEVEMENTS<br />

The Electro lux Group is the world's largest producer<br />

of powered appliances for kitchen, cleaning and<br />

outdoor use, such as refrigerators, washing<br />

machines, cookers, vacuum cleaners, chainsaws,<br />

lawnmowers and garden tractors. Estimated full year<br />

Group sales in 2003 were A$22.3 billion and the<br />

total workforce numbers 82,000. Each year,<br />

customers in more than !50 countries buy 55 mi ll ion<br />

Electrolux Group products for both domestic and<br />

professional use. The Swedish-based Electrolux<br />

Group includes such world-famous brands as<br />

Electrolux, AEG, Zanussi,<br />

Frigidaire, Eureka and<br />

Husqvarna.<br />

Electrolux Home Products<br />

(EHP) is <strong>Australia</strong>'s biggest<br />

manufacturer and distributor of<br />

whitegoods with ann ual sales<br />

in the region of A$1 billion. The<br />

combined EHP brands -<br />

Electrolux Gallery, Electrolux<br />

Chef, Electrolux Dishlex,<br />

Electrolux Kelvinator,<br />

Westinghouse, Simpson and<br />

Hoover-dominate kitchen and<br />

laundry sales in Australasia<br />

and market share is among the<br />

highest in Electrolux global<br />

operations.<br />

HISTORY<br />

The Electrolux story began in 1912 with the<br />

manufacture of its first vacuum cleaner, the 'Lux 1 ',<br />

at Lilla Essingen, in Stockholm- though the name<br />

Electro lux wasn't coined until seven years later, in<br />

1919, when company president Axel Wenner-Gren<br />

laid firm foundations for the company's future and<br />

introduced sales staff to the concept of door-todoor<br />

sell ing.<br />

By 1928, the company had five manufacturing<br />

plants, 20 subsidiaries, and 350 offices worldwide.<br />

About one rnillion vacuum cleaners were produced<br />

during the year.<br />

Diversification followed. During the 1940s and<br />

1950s the Electrolux product range expanded to<br />

include the ' Assistent' foodmixer, its first washing<br />

machine (1951) and first compressor-driven<br />

refrigerator ( 1956). By the advent of the Swinging<br />

Sixties, Electrolux offered a comprehensive range<br />

of domestic appliances, including cookers, freezers<br />

and a new line of washing machines.<br />

The age of acquisition began in 1967, with the<br />

appointment of Han s Werthen as<br />

president. During the following decade,<br />

the company became the world's largest<br />

manufacturer of floor care products by<br />

acquiring National Union Electric/Eureka<br />

in the United States of America.<br />

Fellow Swedish company Husqvarna<br />

joined the Electrolux portfolio in 1978,<br />

strengthening its position on the home<br />

market and laying the foundation for the<br />

group to emerge as world leader in<br />

chainsaws.<br />

During the 1980s, Electrolux added<br />

several prestige names to its portfoli o. A<br />

majority shareholding in Italian white<br />

goods manufacturer Zanussi came in<br />

1986, while the acquisition of American<br />

White Consolidated Industries the same<br />

year added such names as Frigidaire,<br />

Kelvinator and White-Westinghouse.<br />

Another household name, AEG, came in 1994.<br />

One of Europe's leading appliance makers, AEG<br />

employed some 9000 people in 16 countries.<br />

44


Electrolux began <strong>Australia</strong>n operations in 1925<br />

and, in New Zealand the following year.<br />

Manufacturing in <strong>Australia</strong> began in 1934, in a small<br />

factory in West Melbourne. The company moved<br />

to South Yarra two<br />

years later and<br />

remained at that site<br />

for almost half a<br />

century.<br />

The Electrolux<br />

Group's 2001<br />

acquisition of Email<br />

Major Appliances<br />

operations included<br />

such favoured and<br />

trusted names as<br />

Westinghouse,<br />

Kelvinator and<br />

Simpson, Hoove1~<br />

Chef and Dishlex,<br />

further strengthening<br />

the company's<br />

position as the world's favourite supplier of<br />

powered domestic and garden appliances.<br />

In 2004, Electrolux employs 4,400 people in<br />

Australasia.<br />

THE PRODUCT<br />

Across about 20 product lines- ranging from lawnmowers<br />

to refrigerators- Electro lux is the world's<br />

largest appliance manufacturer and one of the<br />

world's largest industrial companies. The company<br />

ranks among the I 00 largest corporate employers<br />

in the world.<br />

In <strong>Australia</strong>, the range of products is among the<br />

broadest in the market. In whitegoods alone,<br />

Electrolux offers all major kitchen and laundry<br />

appuances; from Electrolux Kelvinator reti"igerators<br />

and freezers to Electrolux Dishlex dishwashers,<br />

Simpson and Hoover washing machines, Electro lux<br />

Cheland Westinghouse cookers and cooktops and<br />

Westinghouse fridges. The Electrolux whitegoods<br />

division in <strong>Australia</strong>, EHP, also impotts from Europe<br />

the Electrolux Gallery range of kitchen appliances<br />

and Electrolux range of laundry<br />

products. - - ·-<br />

The Electrolux Floorcare and<br />

Outdoor Products division also<br />

has an extensive range under<br />

s uch brands as Electrolux,<br />

Volta, Flymo, Poulan,<br />

McCulloch and Weedeater.<br />

Another fully owned<br />

division of Electrolux in<br />

<strong>Australia</strong> is Electrolux Laundry<br />

Systems, which specialises in<br />

the mm·keting, distribution and<br />

after-sales support of industrial<br />

laundry and dry-cleaning<br />

equipment.<br />

Electrolux <strong>Australia</strong>'s<br />

Commercial Cleaning Equipment<br />

Division produces and mm·kets<br />

the Euroclean range of<br />

products, wh ich includes<br />

industrial vacuum cleaners, wet<br />

cleaners, scrubbing<br />

and poli shing<br />

machines, and carpet<br />

washers.<br />

Electro l ux<br />

Professional Food<br />

Service appliances are<br />

used extensively in<br />

leading hotel a nd<br />

restaurant kitchens<br />

across the world, including<br />

the well-known<br />

Tetsuya's restaurant in<br />

Sydney.<br />

RECENT<br />

DEVELOPMENTS<br />

Electrolux is now focused on rationalising its stable<br />

of brands and establishing Electro lux as its premier<br />

brand in domestic appliances around the world. In<br />

line with this is, consumer insights gained from<br />

extensive research in key international markets will<br />

drive Electrolux product design and development.<br />

At the same time, Electrolux will retain its<br />

traditional position at the forefront of incorporating<br />

true innovation and high technology into household<br />

appliances as reflected by the 2003 release in<br />

<strong>Australia</strong> of the Trilobite "robotic" vacuum cleaner.<br />

PROMOTION<br />

Elect:rolux marketing and advertising campaigns<br />

build true brand strength and drive mass market/<br />

trade awareness of brand positioning. Integrated<br />

campaigns utilise media with pmticular relevance<br />

to product category and the ability to reach specific<br />

target markets.<br />

Marketing and<br />

promotional<br />

campaigns are ">' • .<br />

~-::~) . . -. . · .<br />

developed to support<br />

the achieve­<br />

. . ."'.:r· .<br />

..t;..;·~...-. _.~ 6<br />

ment of mm·ket shm·e<br />

and margin<br />

objectives while<br />

building brand awareness<br />

and loyalty of trade<br />

customers and consumers in<br />

the longer term.<br />

Television and print<br />

campaigns, high profile poster<br />

sites, Internet and public<br />

relations are all part of the<br />

ongoing brand media strategies<br />

along with consumer<br />

promotions to help drive<br />

product sales. News media<br />

events, PR initiatives and<br />

niche market sponsorships<br />

complement more traditional<br />

mass market communication<br />

- brochures, point-of-sale and<br />

advertising - to promote the<br />

-<br />

brand message tlu·ough retail<br />

distribution channels.<br />

8) The Electrolux Group. The world's No.1 choice.<br />

KITCHEN, CLEANING AND OUTDOOR APPLIANCES<br />

BRAND VALUES<br />

The Electrolux brand name gives consumers<br />

confidence in the group's products and services in<br />

a complex, crowded world.<br />

"Electrolux wil l be a leader in world-class<br />

products that make everyday I ife more comfmtable,<br />

easier and safer," says the Electrolux Mission<br />

Statement.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

ELECTROLUX<br />

0 The EW 1620N front-load washer has a<br />

unique inclined drum, making it easier<br />

to load and unload than conventional<br />

ti·ont loaders. Spin speeds up to<br />

l600rpm provide maximum water<br />

extraction and minimise drying times.<br />

0 The 'Automower' is a self-driven<br />

lawnmower that cuts grass<br />

automatically. When the battery runs<br />

low, the Automower navigates itself<br />

back to the chm·ging station and<br />

returns to the lawn full of life. There is<br />

also a solm·-powered version of the<br />

Automower that automatically<br />

rechm·ges itself while in the sun.<br />

0 The Turin Opera House chose 'Aqua<br />

Clean' from Electro lux Laundry<br />

Systems, not only because it uses<br />

biodegradable detergent, but also<br />

because it removes unpleasmlt odours<br />

from clothing - something ordinm·y<br />

dry-cleaning doesn't do.<br />

0 The Electrolux 'Wascator WE66MP'<br />

has reduced laundry costs by 60 per<br />

cent during the past lO yem·s.<br />

0 The 'Santo Super 1872' holds the<br />

record for the least energy-consuming<br />

refrigerator, using only as much as a<br />

I OW light bulb.<br />

0 Using a new Electrolux washing<br />

machine compm·ed to a 10-yem·-old<br />

model can save I 00 bathfuls of water<br />

peryem·.<br />

0 Exhaust air that passes through the<br />

filterofthenew 'Oxygen' vacuum<br />

cleaner is I 00 times cleaner than the air<br />

in Antm·ctica.<br />

0 The Trilobite vacuum cleaner from<br />

Electrolux is listed in the Guinness<br />

Book of Records as the world's most<br />

advanced domestic robot.<br />

45


THE MARKET<br />

<strong>Australia</strong>ns are unplugged. They play,<br />

communicate, calculate and plan all with the help<br />

of portable power. Energizer® batteries<br />

power the lifestyle of th.is on-thego<br />

society. In fact, the average<br />

<strong>Australia</strong>n household owns more<br />

than ten battery-operated<br />

devices, and that number<br />

continues to climb. In a<br />

technological game ofleapfrog,<br />

devices evolve as battery<br />

power improves to make way<br />

for the next generation of<br />

gadgets and gizmos.<br />

More devices with<br />

added bells and wh.istles<br />

are certainly one trend<br />

that drives the category.<br />

Smaller devices are<br />

another. For example,<br />

music machines once the<br />

size of a small suitcase<br />

now fit in the palm of the<br />

hand. This trend toward<br />

miniaturisation has made AA<br />

and AAA size batteries the<br />

workhorses of the category,<br />

making up more than half of<br />

the battery market.<br />

In short, there is an ever<br />

increasing demand for reliable<br />

batteries that can keep pace<br />

with today's mobile lifestyles.<br />

Energizer continues to be<br />

the leading premium alkaline<br />

power source that "never<br />

says die".<br />

ACHIEVEMENTS<br />

Energizer invented alkaline<br />

batteries in the late 1950s<br />

and has continued to<br />

enhance them over the<br />

years. Since 1960, the se1vice<br />

life of an Energizer battery has<br />

improved dramatically. Anticipating<br />

the trend toward h.igh-tech devices, Energizer led<br />

the industry in designing batteries to meet the<br />

power requirements of these sophisticated devices.<br />

The company continues to innovate in all<br />

segments of the battery category. Energizer was<br />

the first company to design and introduce a super<br />

premium battery, the Energizer® eZfM; Energizer<br />

was the fust to harness the power of lithium in a<br />

AA cell size; and the first to revolutionise the<br />

rechargeable category when it introduced highpowered<br />

nickel metal hydride (NiMH)<br />

cells.<br />

Energizer is the world's largest<br />

manufacturer of batteries and<br />

portable lighting products.<br />

Energizer products are<br />

distributed in more than 160<br />

countries and the company<br />

manufactures nearly one out of<br />

three batteries sold in the world.<br />

the Eveready<br />

Battery Company - and<br />

pmtable power - were planted.<br />

Hubert acquired the patent<br />

for the first Eveready® "electric<br />

hand torch" in 1898. His first<br />

flashlights were handmade,<br />

consisting of a dry cell battery,<br />

a bulb, and a rough brass<br />

reflector inside a paper tube. By<br />

1900, his flashlights were being<br />

HISTORY<br />

More than a century ago in the<br />

1890s, Joshua Lionel Cohen<br />

began selling his latest<br />

invention. This was a tiny<br />

battery-and-bulb device<br />

used to illuminate flowers<br />

in a pot, and Conrad<br />

Hubert, who operated a<br />

New York City restaurant,<br />

was so impressed that he<br />

quit his job to sell the devices<br />

for Cohen. When the power<br />

failed in a restaurant where<br />

Hubert had just installed<br />

the flowerpots, he had an<br />

inspiration-put the<br />

"flowerpot lights" in<br />

people's<br />

hands.<br />

And the<br />

seeds for<br />

sold in London, Montreal, Paris, Berlin- and Sydney.<br />

Hubert's company became American Ever<br />

Ready in 1905 to emphasise the dependability of<br />

its flashlight products and merged in 1914 with<br />

National Carbon Company. The newly formed<br />

company, which was the only manufacturer<br />

specialising in both battery and lighting products,<br />

merged with Union Carbide Company three years<br />

later, and, as it expanded, the company's<br />

"Eveready" brand name became synonymous with<br />

power and reliability.<br />

Over the course of several decades, the company<br />

continued to grow, focusing upon its strong<br />

reputation as the dependable battery that a<br />

consumer could trust.<br />

The batteries were certainly reliable, but one<br />

young, persistent scientist knew they could be<br />

better, and his work launched a new era for the<br />

company. Assigned to an existing Eveready<br />

division in 1957, Lew Urry soon began to focus on<br />

an entirely new chemical system-a system known<br />

today as alkaline.<br />

Urry made a mock-up of an alkaline battery from<br />

an empty flashlight shaft, inserted it into a toy car<br />

and tested it on the cafeteria floor - and the rest is<br />

history! Today alkaline batteries are the top-selling<br />

standard battery in <strong>Australia</strong>.<br />

The history of the Ever Ready business goes<br />

back over 100 years in <strong>Australia</strong> as well. The<br />

manufacture of batteries in <strong>Australia</strong> commenced<br />

in 1901 in a small factory in Rowe Street, in the<br />

centre of Sydney. A few moves followed until the<br />

factory was finally set up in Rosebery,<br />

Sydney, in the mid 1950s. In 1999, the<br />

company offices moved to Sydney Olympic<br />

Park and the company name was changed<br />

to Energizer.<br />

THE PRODUCT<br />

Energizer offers a unique, complete<br />

pottfolio of products designed to meet the<br />

distinct needs and expectations of different<br />

consumer groups. The flagship brand,<br />

46


EVEREADX<br />

(f{f)1JJJ})~<br />

ALKAliNE ALCALINE ALCALINA<br />

Energizer, offers premium,<br />

long lasting battery<br />

pelformance fuelled<br />

by a continuous<br />

commitment to<br />

product<br />

improvement.<br />

At the top<br />

end, Energizer e 2<br />

established the<br />

super- premium<br />

category. Advanced<br />

titanium technology and cell<br />

construction resulted in a super longlasting<br />

battery specifically developed for<br />

high-drain devices, while the introduction<br />

of the Energizer e 2 lithium<br />

represented another fust for the company<br />

with the introduction of the world's only<br />

lithium AA battery, and the world's<br />

longest-lasting AA battery in digital<br />

cameras.<br />

However, not every electronic device<br />

is h.igh-drain, and not every consumer<br />

needs the power of a lithium battery. To<br />

cater for these consumers the company<br />

produces value for money zinc-carbon<br />

and alkaline batteries under the Eveready<br />

brand. Eveready' s Super Heavy Duty<br />

and Heavy Duty zinc-carbon batteries<br />

and the recently launched Eveready Gold<br />

alkaline battery provide excellent value<br />

for money without compromising the<br />

company's commitment to quality.<br />

In addition to primary batteries,<br />

Energizer manufactures miniature<br />

batteries for hearing aids, watches, car<br />

and door remote controls, and other<br />

devices. In the rechargeable battery<br />

segment, Energizer provides nickel metal<br />

hydride batteries that are very suitable<br />

for high-drain devices, as they can be<br />

charged up to 1,000 times, which makes<br />

them exceptional value over time.<br />

Energizer is also still the market leader<br />

in <strong>Australia</strong> in flashlights, with the<br />

Eveready Dolph.in being the number one<br />

selling light in <strong>Australia</strong>.<br />

RECENT DEVELOPMENTS<br />

Energizer continues to pioneer concepts that set<br />

new standards for innovation. To ensure that its<br />

products provide the peiformance required for<br />

today's advanced hi-tech devices, Energizer<br />

introduces new products and consistently<br />

enhances the existing range.<br />

PROMOTION<br />

In 1986 Energizer took on board a well known<br />

'larrikin' footballer Mark Jackson, and for the next<br />

ten years he told <strong>Australia</strong>ns on television the<br />

benefits of Energizer batteries. In the mid 1990s<br />

Mr Energizer, the current animated battery character<br />

was launched.<br />

Mr Energizer is synonymous with the slogan<br />

"Never say die", which embodies the attitude of<br />

the brand. TV advertisements depict Mr Energizer's<br />

stamina in a number of situations - on the tennis<br />

comt with Michael Chang and later<br />

with Patrick Rafter, battling a<br />

sumo wrestler, refusing to<br />

give up the secret of<br />

long life to aliens,<br />

bench pressing in<br />

a gymnasium, all<br />

to the theme of<br />

"Don't you ever<br />

give up?" "Nup". Mr<br />

Energizer's latest<br />

escapade is set at a<br />

wedding where he comes<br />

to save the day for the<br />

wedding photographer,<br />

~<br />

~<br />

NEVER<br />

SAY<br />

DlEwhose<br />

batteries run out at the critical moment. Th.is<br />

advertisement exemplifies both Mr Energizer' s<br />

dynamic personality and the brand's dependability<br />

when you need it most.<br />

Eveready brand batteries, both Gold Alkaline,<br />

and the Heavy Duty and Super Heavy Duty zinc<br />

carbon, stand for quality at an affordable price ...<br />

thus the slogan "The Smart Choice".<br />

Dolphin is another well known brand from<br />

Energizer. This battery-operated lantern was<br />

designed in <strong>Australia</strong> nearly forty years ago. The<br />

lantern has had five updates over this time, but has<br />

always stood for a strong dependable batteryoperated<br />

lantern, and has always been true to its<br />

slogan "It Takes a Lot of Beating".<br />

BRAND VALUES<br />

Energizer has a unique place in the <strong>Australia</strong>n<br />

market, as the only battery manufacturer which can<br />

supply the complete battery solution, no matter<br />

what the need. Its goal is to match consumer wants<br />

and needs with the most meaningful, reliable, longlasting<br />

product offerings. As a result, Energizer<br />

offers the broadest product line-up in the industry.<br />

Energizer e 2 , Energizer, Eveready, Eveready Gold ;md Eveready Dolphin arc<br />

registered trademarks of Energizer <strong>Australia</strong> Pty Ltd.<br />

0<br />

0<br />

0<br />

0<br />

0<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

ENERGIZER<br />

Energizer manufactures nearly one out<br />

of every three batteries sold in the<br />

world.<br />

More than 25 chemical reactions take<br />

place with.in an Energizer battery in the<br />

fraction of a second it takes to turn on<br />

a device and have it strut working.<br />

The Eveready brand has been selling<br />

in <strong>Australia</strong> since 1901.<br />

Energizer produces the world's<br />

longest-lasting AA battery ... Lithium<br />

AA.<br />

1999 marked the 40' 11 anniversary of<br />

Energizer's invention of the alkaline<br />

battery.<br />

47


Energy A ustra /iaTM<br />

,}.~ ~~ ~-+;;A. • Who's got<br />

Jtt:*~~~=~f tw1ce the energy?<br />

THE MARKET<br />

Energy <strong>Australia</strong> is one of <strong>Australia</strong>'s largest energy<br />

retailers, supplying energy to more than 1.4 million<br />

homes and businesses in New South Wales, the<br />

ACT, Victoria, Queensland and now South<br />

<strong>Australia</strong>.<br />

Prior to the strut of industry deregulation in 1996,<br />

a customer' s electricity supplier was determined<br />

purely by the location of their premises. Prices were<br />

fixed, service was basic and service provision was<br />

determined by geographical monopoly.<br />

The deregulation process in New South Wales<br />

and Victoria took several years and the timing wa~<br />

determined by the customer' s level of energy<br />

consumption.<br />

For large commercial customers it began in 1996,<br />

for smaller commercial customers in 200 I, and for<br />

everyone else (including residential and small to<br />

medium enterprises) in January 2002- the strut of<br />

'full retail competition'. That meant that residential<br />

Gas and electricity from .,.4-~r/11 Energy<strong>Australia</strong>·<br />

and small business customers in New South Wales<br />

and Victoria were able to choose their electricity<br />

and gas supplier for the first time.<br />

Mru·ket deregulation resulted in a significant<br />

increase in competition, putting pressure on prices<br />

and margins. It marked the beginning of an entirely<br />

new era for the energy industry.<br />

ACHIEVEMENTS<br />

Since the start of full retail competition, the<br />

challenge for Energy <strong>Australia</strong> has been to protect<br />

its established customer base while winning new<br />

customers from its competitors.<br />

The results so far have been very positive. Retail<br />

profitability has delivered above-average results<br />

for Energy <strong>Australia</strong>, in a very challenging market.<br />

In February 2003 the company signed its<br />

l 00,000' 11 contestable energy contract. This was<br />

achieved just 12 months after the strut of full retail<br />

competition, with most customers signing three yeru·<br />

contracts for 'dual fuel ' (electricity and gas).<br />

This milestone was the result of a targeted sales<br />

and marketing campaign which helped strengthen<br />

an already well-known and trusted brand.<br />

The company developed a sales model which<br />

set new industry benchmru·ks, as well as attracting<br />

the interest of other utilities and government<br />

agencies.<br />

The campaign was a success, something<br />

attributed to the transparent, non-aggressive and<br />

user-friendly approach the company had taken,<br />

ensuring that customers had the right information<br />

to make informed decisions about whom they<br />

wanted to be their energy provider.<br />

This approach helped Energy<strong>Australia</strong> to<br />

consolidate its market position as 'energy experts'.<br />

From 1996 to 2003 the company recorded sizeable<br />

gains in brand recognition, general awru·eness and<br />

brand preference.<br />

provision of electricity for the Sydney ru·ea was<br />

controlled by the respective councils.<br />

Energy <strong>Australia</strong> is now one of the largest energy<br />

services companies in <strong>Australia</strong>, providing broadbased<br />

energy solutions ranging from electricity and<br />

gas supply, to energy management and renewable<br />

energy alternatives.<br />

2004 mru·ks the Centenruy of Electricity -I 00 yeru-s<br />

since the Sydney Municipal Council first<br />

introduced electric streetlights in Sydney. On this<br />

important anniversru·y, Energy <strong>Australia</strong> is taking<br />

the time to reflect on where it has come from and<br />

where it is going.<br />

THE PRODUCT<br />

Energy<strong>Australia</strong>'s product offering has evolved<br />

significantly over the past six years - responding<br />

to changing customer demands, a rapidly growing<br />

population and the need to be more environmentally<br />

aware.<br />

The company has moved from simply supplying<br />

electricity to become a multi-faceted energy services<br />

company with individual business units. These are<br />

responsible for providing and managing electricity<br />

infrastructure for the Sydney, Central Coast and<br />

Hunter regions ; purchas ing and supplying<br />

electricity and gas; purchasing and supplying<br />

energy ti·om "green" sources; electrical contracting<br />

and engineering; connecting customers; local<br />

repairs; and major capital works.<br />

As the population increases and demands on<br />

HISTORY<br />

Energy<strong>Australia</strong> was established in March 1996<br />

after an amalgamation including Sydney Electricity<br />

and Orion Energy (Newcastle). Prior to this, the<br />

48


the electricity network grow, so too has the need<br />

increased for consumers to use their energy more<br />

efficiently. This has led Energy <strong>Australia</strong> to<br />

introduce a range of new products which provide<br />

more of its customers with a realistic opportunity<br />

to make a difference.<br />

Reducing greenhouse gas emissions remains<br />

one of the company's biggest challenges. It is<br />

meeting this challenge in a number of ways. It is<br />

encouraging customers to choose low-emission or<br />

renewable energy sources (eg: solar, wind, hydro<br />

and landfill gases). It is also promoting energy<br />

efficiency by providing customers with the<br />

knowledge and tools they need to make informed<br />

decisions, including promoting better design for<br />

buildings and appliances. Finally, it is calling for<br />

expressions of interest from companies able to<br />

provide Energy<strong>Australia</strong> with renewable energy<br />

investment oppmtunities in the future.<br />

RECENT DEVELOPMENTS<br />

In 2003, Energy<strong>Australia</strong> opened its $60 million<br />

state-of-the-art City Central Zone Substation as<br />

prut of its multi-million dollar program to upgrade<br />

the electricity supply to the Sydney CBD.<br />

The new substation is the first major project to<br />

be completed as part of the upgrade program, which<br />

aims to increase network capacity and reliability<br />

and allow for future demand as Sydney grows.<br />

In late 2003, a key project in Energy <strong>Australia</strong>'s<br />

multi-million dollar· upgrade for the NSW Central<br />

Coast electricity supply network began supplying<br />

power to homes and businesses in the region. The<br />

$10 million Gosford to Ourimbah high capacity<br />

powerline runs between major substations at<br />

Gosford, West Gosford and Ourimbah, bolstering<br />

supply to the Central Coast.<br />

The Central Coast is one of the fastest growing<br />

regions in Energy <strong>Australia</strong>'s franchi se ru·ea, with<br />

demand increasing by mound 4.5 per cent a yem.<br />

The company will spend another $ 178 million on<br />

infrastructure on the Central Coast over the next<br />

five years.<br />

At the beginning of 2004, Energy<strong>Australia</strong><br />

welcomed its largest intake of apprentices for more<br />

than 20 yeru·s as the company prepmed to invest<br />

around $2 billion on improving its network and<br />

meeting growth in demand for power.<br />

A total of 102 new recruits started their cru·eers<br />

with Energy <strong>Australia</strong>- more than twice the number<br />

of apprentices taken on in recent years. This<br />

reflected the company's comnlitment to developing<br />

the skills needed to maintain and improve one of<br />

the largest distribution networks in the electr·icity<br />

industry.<br />

Also in eru·ly 2004, Energy <strong>Australia</strong> begar1 selling<br />

electricity to householders in South <strong>Australia</strong> - a<br />

move that will increase competition in that State' s<br />

energy mru·ket.<br />

PROMOTION<br />

Before 1998 the Energy <strong>Australia</strong> brand lacked<br />

definition. It was simply 'the name on the bill'.<br />

Market research helped the company identify<br />

the key values it needed to convey to its customers<br />

-that Energy <strong>Australia</strong> is: useful, genuine, helpful,<br />

effective, flexible ru1d caring. To support this<br />

position the tagline 'Who' s Got The Energy?' was<br />

developed and the company logo updated. The<br />

' Who's Got The Energy?' crunpaign was launched<br />

with a series of press adve1tisements and outdoor<br />

billboards in Sydney and Newcastle in 1998.<br />

This was followed by the very populru· 'Tall Man/<br />

Short Man' campaign which helped give the<br />

company a more 'humru1 ' persona. The tall man (an<br />

Energy <strong>Australia</strong> electrician) represented the<br />

company's core values (friendly, informed, caring<br />

and useful), while the short man represented a<br />

typical customer (trusting, but always seeking a<br />

little more fi·om his energy provider). The cru.npaign<br />

was extremely well received, resulting in an<br />

unprompted awmeness level of 86 per cent within<br />

its tr·aditional mar·ket.<br />

The success of the 'Tall Man/Short Man '<br />

campaign paved the way for the next high-profile<br />

It's the e ~peritnc e we h:tWl gain ed from helping end ru ult ;, ;t eomplete energy $Olution. But it<br />

businen t'l1:ry day th;at ha$ ;allowed us to pn:wide<br />

doun'tju:;;t bend•! St::ulium Auslralia. The ski ll s<br />

effective energy aoh11ions fill' St adium Auitr~li~ . and e~11erience we liN= !


FR~~DOfvl<br />

THINK OUTSIDE THE SQUARE YOU LIVE IN<br />

Silver awards in the Australasian Catalogue<br />

Marketing Awards and a Bronze in the <strong>Australia</strong>n<br />

Direct Marketing Effectiveness Awards. Expansion<br />

into New Zealand and the brand's local longevity<br />

and continued sales growth are further testament<br />

to the great brand that continues to connect with<br />

customers' hearts and minds.<br />

THE MARKET<br />

"Any damn fool can put on a deal, but it takes<br />

genius, faith and perseverance to create a brand."<br />

So said David Ogilvy on the occasion of The<br />

Adve1tising Research Foundation 50' 11 Anniversary<br />

in 1986.<br />

Freedom has built a successful brand and<br />

business in a market that is cluttered with constant<br />

promotional discounting.<br />

This is understandable considering the<br />

combination of large established retailers and<br />

numerous independent traders that compete for<br />

<strong>Australia</strong>'s highly lucrative furniture market.<br />

Research conun.issioned by Freedom in 1998<br />

reported the following:<br />

"Consumers .find making choices difficult with<br />

few signposts as to brand character and quality.<br />

The reductionist style ofmostfurniture promotion,<br />

i. e. deals galore, buy-now-pay-later-interest}ree<br />

packages and hire purchase that make these<br />

relatively large purchases accessible to customers<br />

todayfail to add any real differentiating emotional<br />

value to brands".<br />

This constant focus on "deals" continuously<br />

pressures retailer margins and educates customers<br />

to seek out lower prices.<br />

Today however furniture purchasing is<br />

increasingly a high-interest activity and the ratings<br />

success of numerous home renovation and prope1ty<br />

programs is testament to this. People's desire to<br />

create their own unique version of "the great<br />

<strong>Australia</strong>n dream" is at an all time h.igh and furniture<br />

is integral to this.<br />

Freedom uniquely taps this trend by<br />

understanding the integral role furniture and home<br />

decor plays in our lives. That is, it has the potential<br />

to significantly affect both physical and emotional<br />

well-being by creating not only a practical and<br />

pragmatic sense of comfmt but more importantly<br />

to deliver an inner sense of gratification by<br />

providing an avenue for self-expression.<br />

ACHIEVEMENTS<br />

Early in 1998 Freedom conducted qualitative<br />

research into the home decor market needs of women<br />

in the 25 to 39 year age group in theAB demograph.ic.<br />

It revealed an unmet customer need, namely "the<br />

fashion conscious and l(festyle aware exuded a<br />

strong desire for a unique in-store experience that<br />

was all about ideas and inspiration". In March<br />

they launched the "Think outside the square you<br />

live in" campaign with the objective to embellish<br />

Freedom's leadership as a lifestyle retailer by<br />

owning the territory of "inspiration for the home".<br />

This differentiated strategy has been leveraged<br />

both externally and internally throughout the<br />

organisation, reinforcing the team focus on<br />

customer service and innovation and increasing<br />

long-term brand equity while still competing week<br />

in, week out at the retail coalface.<br />

Accolades awarded to Freedom celebrating<br />

these achievements include a number of Gold and<br />

HISTORY<br />

Freedom commenced business with its first store<br />

in St Leonard's, Sydney, in 1981. It lau nched with a<br />

business platform based on "affordable homelifestyle<br />

solutions, more than just the ability to buy<br />

a new sofa".<br />

At the point of purchase this meant stores were<br />

designed to deli ver high quality retail experiences<br />

that were abreast of customers' changing needs.<br />

Merchandising incorporated price, quality and<br />

range and presented product as "room-solutions"<br />

rather than "silos of fabric and timber". This<br />

approach decreased consumers' angst, as it was<br />

no longer left solely up to them to envisage the<br />

look and feel they were trying to create in their<br />

home.<br />

This lifestyle proposition driven by style and<br />

affo rdability, a clear and tangible category<br />

innovation, was the impetus to establishing a<br />

successful business based on providing a<br />

constantly changing palette of visual ideas. Th.is<br />

allowed Freedom to capture the leading position in<br />

its target market segment by 1991, and then to list<br />

on the <strong>Australia</strong>n Stock Exchange in 1996, the same<br />

year its first New Zealand store opened. By 2000,<br />

52


the Freedom Group boasted 84 stores across<br />

<strong>Australia</strong> and New Zealand.<br />

THE PRODUCT<br />

Freedom has always been passionate about its<br />

products, and over time has evolved from being<br />

solely about range and value to being more about<br />

the values its customers espouse. That is, shopping<br />

for furniture at Freedom is not merely solution-led,<br />

as in "I need a couch and a coffee table", but rather<br />

inspiration-dri ven, namely "Wow ' Let's create our<br />

version of that look in our lounge room". Where<br />

competitors are simply offering products, Freedom<br />

breaks thi s category convention by delivering<br />

integrated solutions in the form of fresh lifestyle<br />

ideas that are an accessible vehicle for change and<br />

renewal in the home and an outlet for the customers'<br />

desire to self-express.<br />

Freedom's target customers place a high<br />

emphasis on quality, style, value and convenience.<br />

Stores have a contemporary look that is colomful<br />

and refreshing and offer co-ordinated whole-room<br />

home decor solutions that are innovative and stylish<br />

and appeal to the young at heart.<br />

The catalogue covers in these pages - from the<br />

left: Winter 1983, Autumn 1988, Summer 1996 and<br />

Sununer 2003 - show the evolution of the brand.<br />

As a result, shopping at Freedom is an<br />

emotionally rewarding experience rather than just a<br />

bland process of elimination and selection. The<br />

combination of the aesthetic appeal and fashion<br />

C l 0 S E 5 T H A P R I l<br />

sense speaks more to the heart of shoppers and<br />

invites them to take risks, have fun and experiment<br />

with their home furnishing possibilities.<br />

RECENT DEVELOPMENTS<br />

Most recent] y, Freedom's product offer has evolved<br />

to include culture and authenticity, providing<br />

customers with "global theme merchandise -<br />

products inspired by our world", such as African<br />

and Oriental goods. It is this type of innovation<br />

that imbues Freedom with sophistication and<br />

contemporary appeal emphasised by its ability to<br />

deli ver inspiring ideas from around the world,<br />

making it possible for anyone to create their dream<br />

home today.<br />

Further organisational developments have<br />

centred on Freedom's desire to make a difference<br />

with.in the <strong>Australia</strong>n community thereby becmn.ing<br />

a brand with soul and substance, more than just a<br />

furniture company. Freedom's contributions to The<br />

Children's Cancer Institute <strong>Australia</strong> predominantly<br />

consist of actual community initiatives such as<br />

Billycart Day, S1n.iley Mug and the Touring Art<br />

Show rather than simple financial grants. This is<br />

Freedom's way of heeding The Business Council<br />

of <strong>Australia</strong>'s call for businesses to reconcile profit<br />

with social responsibility.<br />

It is these developments that are allowing<br />

Freedom to continue to break category conventions<br />

..... FR~ ~DOM ,........<br />

IN~PIRATIONS FOR liV I NG<br />

and offer the vision of "Delivering the world's best<br />

retail experience, every place, every time".<br />

PROMOTION<br />

Retailing is a fast-paced, intensely competitive<br />

environment where shifting product out the door<br />

and maintaining margins often supersedes the<br />

impmtance of romancing customers. This is no<br />

different in the home decor market which is laden<br />

with catalogues, full-page magazine and print ads<br />

and 15 second television commercials screaming<br />

"deals, hurry, more deals" to customers.<br />

The traditional sales, at the end of Summer,<br />

Winter and the financial year, have educated many<br />

customers to patiently shop around for the best<br />

price, rationalising their decision to "what deal can<br />

I get". This, along with many retailers taking the<br />

"who can 'shout' the loudest" approach, often<br />

results in a frustrating and confusing sea of<br />

sameness that skews the importance of price in<br />

customers' buying decisions. This in turn far too<br />

often increases their post purchase unhappiness if<br />

they find a better deal elsewhere or get lured into<br />

buying a cheaper product that doesn't quite create<br />

the intended look.<br />

As Jack Trout suggests in hi s best seller,<br />

Positioning, "price is rarely a sustainable<br />

differentiating idea". Freedom has long since<br />

recognised the impo1tance of emotive positioning<br />

and has approached retail marketing through its<br />

core brand values thereby effecti vely driving<br />

product sales tlu·ough brand-led conununications.<br />

Freedom breaks the category convention by<br />

positioning the brand on an emotive platform of<br />

"fresh thinking that inspires great ideas" rather than<br />

FRf f DOI"I<br />

ove1tly focusing communications on simple points<br />

such as 'range and value', which lead to margin<br />

erosion.<br />

Over time this has proven more effective than<br />

simply following the category norm of focusing<br />

promotion purely on product range and price.<br />

BRAND VALUES<br />

Freedom's brand positioning is a function of the<br />

company's corporate ideal. That is, "At Freedom,<br />

we believe that everyone in the world should be<br />

free to access the lifestyle they dream of Freedom<br />

empowers us to dream as well as providing us<br />

with the means to make our dreams possible."<br />

This led to the unique positioning of "Think<br />

outside the square you live in" wh.ich inspired great<br />

ideas for people to customise their home's look<br />

and feel. Millward Brown research confirms that<br />

customers perceive Freedom as being empowering<br />

and inspiring - "a place for great ideas that help<br />

you attain the home you always dreamt of but<br />

didn't believe possible" - and charming and<br />

spontaneous.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

FREEDOM<br />

0 A year's supply oft11e fab1ic Freedom<br />

uses to upholster sofas is enough to<br />

stretch from Sydney to LA.<br />

0 Freedom's first product range included<br />

a combination of beanbags, raw pine<br />

furnitme, Indian cotton sofas and ball<br />

lamps.<br />

0 Freedom's longest serving employee<br />

has been with t11e company for 19<br />

years.<br />

0 In December 2003, Freedom was taken<br />

off the <strong>Australia</strong>n Stock Exchange and<br />

became a private company.<br />

0 Freedom has a team of buyers who<br />

travel t11e world, several times a year, in<br />

search of new innovative lifestyle<br />

trends and du:ection.<br />

0 Freedom has been in operation in<br />

<strong>Australia</strong> for 23 years.<br />

0 Freedom sells 220,000 Anna Tea<br />

Towels each year.<br />

53


THE MARKET<br />

In its broadest sense, Gatorade competes<br />

in the beverage market. However the<br />

functionality and pe1iormance benefits of<br />

the product narrow this field to what the<br />

company refers to as the' Active Thirst<br />

Market'.<br />

It has been estimated that<br />

approximately one in seven or 15<br />

per cent of beverages are bought<br />

to quench an 'active thirst'. That<br />

is, a thirst resulting from exercise,<br />

physical hard labour, sports, etc.<br />

Gatorade has been scientifically<br />

formulated to quench an active<br />

thirst better than any other<br />

beverage due to the physiological<br />

changes that occur in the body<br />

following exercise. Once the human<br />

body becomes active it starts to<br />

sweat and becomes dehydrated<br />

resulting in a change in taste<br />

preference.<br />

Research undertaken at the<br />

Gatorade Sports Science Institute<br />

(GSSI) proves that once an<br />

individual becomes active, a<br />

physiological change takes place<br />

and the body will actually prefer the<br />

taste of lightly flavoured and sweetened, noncarbonated<br />

drinks like Gatorade over full sugar<br />

carbonated beverages.<br />

ACHIEVEMENTS<br />

The sports drink market was created in 1965 when<br />

Gatorade was invented by scienti sts at The<br />

University of Florida, for the Florida 'Gators' football<br />

team. From such humble beginnings the brand has<br />

grown to become the world's leading sports drink.<br />

The introduction of Gatorade helped change the<br />

fluid-replacement practices of athletes across the<br />

United States and around the world including<br />

<strong>Australia</strong>. Instead of discouraging fluid intake<br />

during training and competition, as had been the<br />

practice, coaches started to understand the<br />

necessity of consuming fluids during exercise to<br />

avoid dehydration, heat illness and early fatigue.<br />

Built on a solid scientific platform, Gatorade<br />

prides itself on being the most thoroughly studied<br />

consumer food product on the market, in terms of<br />

human physiology research. When food company<br />

Quaker Oats acquired Gatorade in 1983, they<br />

-------<br />

founded the GSSI, a research entity dedicated to<br />

enhancing and sustaining human<br />

peiformance and health through nutrition.<br />

The GSSI and Gatorade Sports<br />

Science Exchange (GSSE) are worldrenowned<br />

resources among coaches,<br />

trainers and nutritionists. It's this<br />

dedication to sports science research<br />

and product performance that<br />

can't be matched and is why<br />

Gatorade is used by so many of<br />

the world's top athletes.<br />

In January 2000, Gatorade flew<br />

Brad Beven, five times <strong>Australia</strong>n<br />

Champion Triathlete, to the GSST<br />

in Chicago for three days of<br />

intensive testing. The tests he<br />

undertook were to provide him<br />

with valuable information for<br />

future training and race<br />

preparation to help him gain a<br />

competitive edge. These tests<br />

included a cardiac stress test,<br />

sweat test, maximal oxygen<br />

consumption and nutritional<br />

consultation. He explains his time<br />

at the Gatorade Sports Science<br />

Institute by saying "''m trying to<br />

get every bit of information I need<br />

to go faster. Just picking up<br />

information like dehydration and<br />

sodium deficiencies are all pmt of achieving that<br />

aim. The purpose of doing this with the GSSI was<br />

to gain an extra couple of per cent to get the edge<br />

to cross the line quicker. .. " In July 2002, Gatorade<br />

flew Brett Lee to the GSSI for two days of intensive<br />

testing, which also exposed Brett to a windgate<br />

power test. Brett loses just over I litre of sweat per<br />

hour during extensive exercise, which is typical for<br />

an athlete of his_level.<br />

HISTORY<br />

In the early 1960s, the University of Florida research<br />

team began development of a drink that would<br />

rapidly replace body fluids and help prevent the<br />

severe dehydration caused by hot weather and<br />

physical exertion. Under the direction of Dr Robert<br />

Cade, the group began testing a formula on ten<br />

members of the University of Florida football team<br />

whose members were experiencing significant fluid<br />

loss during practice and games.<br />

The drink's formulation of carbohydrates and<br />

electrolytes was based on the latest scientific<br />

resem·ch and the supposition that 'Gator' athletes<br />

could benefit by replacing the fluid, energy and<br />

electrolytes lost during exercise. This test beverage<br />

became known as "Gatorade".<br />

That season, the Gators enjoyed a winning<br />

record and became well known as the "second half<br />

team" by outplaying their opponents during the<br />

54


latter half of the game. The team 's coach recognised<br />

the advantages of having his players drink<br />

Gatorade, noticing that they had fewer problems<br />

with dehydration and showed greater endurance.<br />

In fact, on January 1, 1967, when the Gators beat<br />

Georgia Tech in the Orange Bowl, Georgia Tech<br />

head coach Bobby Dodd told Sports Illustrated<br />

magazine that the reason for his team's loss was<br />

that "We didn't have Gatorade. That made the<br />

difference".<br />

The story has become legend and the drink<br />

became Gatorade.<br />

THE PRODUCT<br />

Gatorade is the No. 1 selling sports drink brand in<br />

the world. In August 200 I , the US based Quaker<br />

Oats Company, owner of the Gatorade brm1d,<br />

merged with the Pepsico, Inc. group of companies<br />

to complement that company's portfolio of<br />

powerhouse brands.<br />

From the inception of the product, science has<br />

been used to ensure that no other beverage replaces<br />

lost fluids, energy and electrolytes faster than<br />

Gatorade. Gatorade pioneered the 6 per cent<br />

carbohydrate solution, which is now used by other<br />

isotonic sports drinks. Tt is the optimal level to<br />

ensure the fastest possible absorption. In fact no<br />

other beverage speeds fluids, minerals and energy<br />

to the body faster than Gatorade.<br />

Gatorade is formulated on the premise that if<br />

an ingredient doesn't improve pe1formance<br />

or rehydration, then it has no place in<br />

Gatorade.<br />

Gatorade is not carbonated, as<br />

carbonation can cause gastro-intestinal<br />

distress and it does not contain<br />

preservatives, which can cause 'throat<br />

burn'.<br />

Gatorade is hot filled in PET bottles,<br />

with a wide mouth to allow gulping.<br />

Gatorade is also formulated with a light<br />

sweetness and flavour profile to<br />

accommodate taste preference<br />

changes that occur with exercise.<br />

RECENT DEVELOPMENTS<br />

In Summer 2003 Gatorade launched a<br />

700ml bottle with spmts cap to allow<br />

for consumption before, during and<br />

after exercise or throughout an<br />

endurance activity such as cycling. At<br />

the same time a new variant,<br />

Watermelon Chill, was launched. It is<br />

specifically designed to deliver extreme<br />

refreshment during the hotter summer<br />

months. The flavour was launched<br />

with the support of a heavyweight<br />

sampling campaign at beaches and<br />

spmts venues throughout the summer.<br />

PROMOTION<br />

The launch ofGatorade in <strong>Australia</strong> was suppmted<br />

by one of the most memorable TV campaigns of all<br />

time, "Be Like Mike". The catchy jingle and<br />

inspirational images of Jordan, helped to catapult<br />

the brand to clem· market leadership within four<br />

weeks following the launch. Indeed the<br />

endorsement of Gatorade by Michael Jordan, the<br />

world's highest profile and best loved athlete, has<br />

taken the brand to new heights and ensured<br />

immediate high level awareness for the brand<br />

following each new market entry.<br />

The phrase 'scientifically developed, athletically<br />

proven' , is true ofGatorade and is why the brand's<br />

distinctive orange cooler bins and green cups<br />

can be seen on the sidelines of the world's<br />

top sports teams and competitions.<br />

In <strong>Australia</strong> many top spmting teams<br />

and competitions have adopted Gatorade<br />

as their official spmts drink including the<br />

<strong>Australia</strong>n Cricket Team, National Rugby<br />

League including State of Origin temns,<br />

<strong>Australia</strong>n Rugby Union and many<br />

of the top V8 racing em· drivers, as<br />

well as many of the nation's leading<br />

triathletes and endurance runners.<br />

BRAND VALUES<br />

When Gatorade was first<br />

developed, the resemchers relied<br />

upon the latest discoveries in<br />

medical science to guide the<br />

formulation of this unique beverage.<br />

This commitment to scientific<br />

research has continued to be a<br />

hallmark of Gatorade. Gatorade<br />

scientists me constantly looking for<br />

new ways to make Gatorade an<br />

even more effective fluid, energy<br />

and electrolyte replacement<br />

beverage.<br />

This ongoing resemch is often<br />

conducted in co-operation with<br />

some of the top sports scientists in<br />

the world to make ce1tain that the<br />

Gatorade formula remains optimal. In <strong>Australia</strong>,<br />

Gatorade works closely with the country's leading<br />

sports doctors and dietitians and is a founding<br />

sponsor of SDA, the Sports Dietitians <strong>Australia</strong><br />

group. Together with SDA, Gatorade <strong>Australia</strong> has<br />

been instrumental in developing guidelines for fluid<br />

replacement in spmt for both coaches and athletes.<br />

Expertise in spmts nutrition is one of the unique<br />

and distinguishing attributes of the Gatorade<br />

brand. This massive resem·ch effmt is the reason<br />

Gatorade' s formulation has never been bettered and<br />

why so many top athletes and sporting<br />

organisations trust only Gatorade to provide that<br />

performance edge.<br />

In fact, Gatorade now works with the <strong>Australia</strong>n<br />

Institute of Spmt (AIS) to ensure athletes receive<br />

optimal rehydration and replenishment for maximum<br />

performance. The AIS and Gatorade work on joint<br />

research projects to continuously improve athlete<br />

nutrition.<br />

Gatorade also runs tailored educational<br />

programs throughout <strong>Australia</strong> for both school<br />

children (SWEATFORCE) and coaches (The<br />

Coaches Edge), sharing the learning from the<br />

science projects in a continuous learning process.<br />

Darren Lockye r nnd Brett Lee Metrolite photos by Sean Izzard.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

GATORADE<br />

0 l.n the 2003 City to Smfin Sydney,<br />

60,000 runners consumed more than<br />

75,000 litres ofGatorade along the 14<br />

kmcourse.<br />

0 The nan1e Gatorade derives from the<br />

Gators but it was originally called<br />

Cade' s Cola or Cade' s Ade. When<br />

Quaker Oats acquired the brand in 1985<br />

they wanted to call it 'Quinch', but<br />

mm·ket research revealed that people<br />

ab·eady knew the drink as Gatorade and<br />

so the name remained.<br />

0 During the famous '67 Orange Bowl<br />

match, Gators player Lany Smith ran an<br />

amazing 94 ym·ds, with his pants falling<br />

down, to make a touchdown that won<br />

the game. He crossed the line with the<br />

ball in one hand and his pants in the<br />

other. After the game his mother was<br />

hem·d to say, "Gee coach, can 't you get<br />

my boy some pm1ts that fit". LmTy<br />

Smith's touchdown is still a record<br />

today.<br />

0 In terms of human physiology<br />

resemch, Gatorade is the most<br />

thoroughly studied consumer food<br />

product on the mm·ket.<br />

55


THE MARKET<br />

The male blades and razors category is now worth<br />

A$190 million in <strong>Australia</strong> alone, an increase of 4 7<br />

per cent since 1995, making it one of the fastest<br />

growing sectors within the toiletries market.<br />

The main catalyst for spectacular growth has<br />

been a fundamental change in men' s attitudes to<br />

the grooming process over the last decade. The<br />

rise in popularity of 'lad mags' and a defined male<br />

culture has evolved into an awareness of health<br />

and well being. This trend has resulted in a massive<br />

influx of male grooming products onto store<br />

shelves.<br />

Female grooming is also maturing into a very<br />

important patt of the health and beauty category. It<br />

now amounts to 18 per cent of the total blades and<br />

razors sector and delivers retail sales of more than<br />

A$34 million - up a massive 210 per cent since 1995,<br />

driven predominantly by the launch of Gillette for<br />

Women Venus in 2001 .<br />

ACHIEVEMENI'S<br />

The millennium heralded Gillette's centenary year.<br />

The core of the wet shaving category remains<br />

blades and razors, of which Gillette has a 71 per<br />

cent value shat·e of the male and a 60 per cent value<br />

shru·e of the female market.<br />

Gillette has a long established position as the<br />

most populru· brand and is market leader in the two<br />

principal wet shaving categories - blades and razors<br />

and shave preps.<br />

For men who wet shave, shave preps go handin-hand<br />

with shaving. The male shave prep market<br />

is wmth more than A$34. 7 million (up from A$24.2<br />

million in 1995) of which Gillette holds a 51 per cent<br />

share.<br />

The company's strong focus on technological<br />

advancement has created new market<br />

opportunities. Mat1y of Gillette' s pioneering<br />

innovations have become industry standat·ds: from<br />

adjustable razors, fully contained cartridges,<br />

pivoting heads, lubrastrips, flexible microfins and<br />

spring-mounted twin blades, to the first razor<br />

designed specifically for the shaving needs of<br />

women.<br />

Venus has driven the female blades and razor<br />

market and reinforced Gillette for Women as a<br />

worldwide leader in the female shaving market.<br />

Since tlle razor's launch, female shaving has become<br />

the fastest growing patt of the Gillette Grooming<br />

portfolio. Venus has established its role as a<br />

favourite with female shavers, which has driven<br />

yeat· on yeat· growth on Venus replacement blades<br />

to over 20 per cent.<br />

Gillette for Women also holds a strong position<br />

in the other two areas of the female shaving<br />

category: Satin Care holds a 95 per cent value share<br />

of the A$4.3 million female shave prep mat·ket and<br />

Gillette maintains a 35 per cent value shme of the<br />

A$12.2 million female disposables sector.<br />

HISTORY<br />

100 yeru·s ago, US travelling salesman King<br />

C Gillette had the idea of developing a safe<br />

and easy to use razor- an idea which was<br />

to revolutionise the shaving mat·ket. His<br />

frustration with traditional cut-throat<br />

shaving led him to statt work on a model<br />

razor, and so the Gillette Company was<br />

founded in Boston in 1901.<br />

Gillette's early success was built on strong<br />

technological foundations. The "wafer thin"<br />

metal needed to make the razor blade was even<br />

dubbed by Thomas Edison to be a "technical<br />

impossibility" . However, Gillette broke new<br />

ground with the<br />

development<br />

of new<br />

processes<br />

f o r<br />

tempering<br />

hardening<br />

produced<br />

1903 the<br />

a n d<br />

mas s<br />

steel. In<br />

Gillette<br />

Safety Razor was finally<br />

launched.<br />

In spite of a slow statt (only<br />

51 razors and 168 blades were<br />

sold in the first year) more than<br />

90,000 Americans possessed a<br />

safety razor by the end of<br />

Gillette's second yeat· of trcrling.<br />

The safety razor had already<br />

become a hit. It changed the<br />

face of a nation. The rapidly<br />

growing company established<br />

a factory in South Boston in<br />

1905 under the new name of the<br />

Gillette Safety Razor Company.<br />

Strong domestic growth<br />

prompted international<br />

expansion.<br />

Overseas operations<br />

commenced in 1905 , with a<br />

manufacturing plant just outside<br />

Pat·is and a sales office in London.<br />

Annual blade sales had risen to more<br />

than 40 million units before the outbreak<br />

of World Wat· I.<br />

The Great War saw Gillette become the first<br />

supplier of razors to the US Army when, in 1918,<br />

the US Government decided to issue each of its<br />

servicemen with his own shaving equipment. 3.5<br />

million Safety Razors and 36 million blades were<br />

duly supplied.<br />

The company has come a long way since its<br />

first patent in 1904. Techmatic, tlle first system razor,<br />

was introduced in l967.1ts 'continuous band' meant<br />

that consumers would no longer have to touch the<br />

blade. This was followed in 1 97 1 by the Gil, the<br />

world's first twin-bladed system. The first twin<br />

bladed disposable razor followed in 1976 and<br />

Contour, the first razor with a pi voting head, atTi ved<br />

in 1977.<br />

While developments in the 1960s and 1 970s<br />

focused mainly on blades, tlle 1980s and 1990s saw<br />

improved features for a smootller, more comfortable<br />

shave. The Contour Plus in 1985 heralded the first<br />

lubrastrip and 1990 saw the company's first ever<br />

56


the period of the 2003 Rugby World Cup.<br />

Additionally Gillette was the sponsor of<br />

Collingwood Football Club for the 2003<br />

season.<br />

Historically, Gillette has used sport as a<br />

major promotional vehicle and embmked on<br />

its first sponsorship deal with a radio<br />

broadcast of the US World Series back in 1939.<br />

There remains a strong association due to the<br />

performance-focused and highly aspirational<br />

nature of spmt.<br />

BRAND VALUES<br />

Gillette is dedicated to driving superior<br />

technology that will develop atld produce hair<br />

removal products tllat deliver a superior shave<br />

with superior pe1formance.<br />

Its male image is spmty, masculine, clean<br />

and immaculately groomed. The female image<br />

is modem, energising and understanding of<br />

women's needs. Gillette's success has been<br />

Pan-Atlantic launch with the introduction of<br />

Sensor in sixteen countries. This razor featured<br />

the first spring-mounted blades and shellbearing<br />

pivot. Then, three years later, the<br />

SensorExcel was launched with soft, flexible<br />

microfins. The MACH3 arrived in 1998,<br />

introducing the revolutionary triple-bladed<br />

shaving system, which in January 2002 was<br />

given a boost in performance resulting in<br />

Gillette's best razor ever- the MACH3Turbo.<br />

There had been little development in the<br />

female shaving market before the 1990s.<br />

Gillette introduced the first ever razor for<br />

women called 'Milady Decollete' in 1915 and<br />

the first disposable for women called Gillette<br />

Daisy in 1975. The groundbreaking Gillette<br />

for Women Sensor arrived in 1992, which was<br />

then surpassed by the new and very much<br />

improved SensorExcel for women.<br />

In 2001 Gillette for Women launched Venus- a<br />

unique triple-blcrle razor, designed specifically<br />

for how and where women shave. Venus<br />

combines pioneering innovation and proven<br />

technology to offer a far superior shave, outpe1forming<br />

even SensorExcel for Women by a 3-to-<br />

1 mmgin.<br />

Venus revolutionised the female shaving<br />

experience, ensuring skin stays smoother for longer<br />

with a single stroke.<br />

THE PRODUCT<br />

The company's biggest technological<br />

breakthrough in recent yems has also been Gillette's<br />

biggest success story to<br />

date - the MACH3<br />

shaving system. The<br />

creation of MACH3<br />

involved more than a<br />

decade of reseru·ch and<br />

development, the involvement of hundreds of<br />

Gillette scientists and engineers and financial<br />

investment of over US$750 million.<br />

The New Gillette Series Range has been<br />

reformulated to provide a fully integrated grooming<br />

solution for men. It now consists of eleven new<br />

products from shaving gel and foam, after-shave<br />

cooling gel, after-shave balm and splash to antiperspirants,<br />

deodorants and shower gels. Shaving<br />

gels and foams have been enhanced with 'antifriction'<br />

lubricants for ultra razor<br />

glide and specially<br />

formulated with skin<br />

comfmt ingredients for five<br />

different skin cme needs - sensitive,<br />

moisturising, protection, conditioning and<br />

clean skin.<br />

RECENT DEVELOPMENI'S<br />

Consumer testing among men established that<br />

MACH3Turbo is the best-performing shaving<br />

system ever with performance increased further<br />

when used in conjunction with the new Gillette<br />

Series shave gels and conditioners. In the US, five<br />

million men have already upgraded to the<br />

MACH3Turbo 'ultimate shaving experience'.<br />

In terms of product innovation within female<br />

shaving, nothing can rival Venus: in designing<br />

Venus, Gillette for Women 'threw out the book'.<br />

Acknowledging that women weren't completely<br />

satisfied with the wet shaving process, Gillette<br />

addressed women's complaints when designing<br />

Venus.<br />

Venus operates under 50 separate patents<br />

combining advances created for MACH3 and<br />

Sensor with others unique to Venus. These special<br />

features account for the unprecedented consumer<br />

test results - 73 per cent of women preferred Venus<br />

to any other female razor - for<br />

perspective the pe1formance<br />

of Venus amongst women is<br />

even more dramatic than the<br />

performance of MACH3<br />

atnong men. In Gillette's 1 00<br />

year history, this is the<br />

strongest performance of a Gillette shaving product<br />

in this type of test - Venus sets an entirely new<br />

standard in female shaving.<br />

PROMOTION<br />

Gillette' s advertising campaign for the<br />

MACH3Turbo continues with the 'Best A Man Can<br />

Get' theme but uses creative imagery of outer space.<br />

MACH3Turbo's advertising has focused on<br />

'turning the shaving world upside down' and draws<br />

parallels between the zero-gravity factor in space<br />

and the option of using the MACH3Turbo to shave<br />

against the grain.<br />

Sponsorship plays a large pmt in promoting<br />

the brand. In 2003 Gillette was a sponsor<br />

of George Oregan, the captain of the<br />

<strong>Australia</strong>n Wallabies. This<br />

sponsorship was leveraged<br />

with an integrated retail<br />

promotion running during<br />

its ability to make men and women look and feel<br />

their very best by continually developing<br />

technologically superior grooming products.<br />

In essence, the Gillette Company celebrates<br />

world-class products, world class brands and world<br />

class people. It is committed to growth through<br />

innovation to maintain the company's position as<br />

a world leader in consumer products.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

GILLmE<br />

0 In the Stone Age, women used<br />

shatpened rocks atld shells to scrape<br />

off unwanted hair.<br />

0 On average, men' s beru·ds have the<br />

satne number of hairs as a woman' s<br />

legs and underatms combined.<br />

However, women shave an ru·ea that is<br />

approximately nine times Jru·ger than<br />

men's.<br />

0 Beat·d hair, when dry, is the satne<br />

strength as the same gauge of copper<br />

wire.<br />

0 On average, a man's beru·d grows<br />

1511 OOOths of an inch a day and 5.5<br />

inches a yeru·.<br />

0 During his lifetime, a man will spend<br />

approximately 3,350 hours removing<br />

27.5 feet of whiskers from his face.<br />

57


THE MARKET<br />

The <strong>Australia</strong>n food service hot drinks (hot drinks<br />

consumed out of home) market is currently valued<br />

at about $1 .8 billion, of which coffee is estimated to<br />

represent 82 percentor$1.45 billion. Branded coffee<br />

chain stores are the fastest growing segment of the<br />

food service market and in 2002 represented 6.4 per<br />

cent of this market by volume. Trends suggest that<br />

the food service market will continue to increase in<br />

future as socialising and entertainment patterns put<br />

more <strong>Australia</strong>ns in cafes and out of the kitchen<br />

(www.aasca.com, October 2002).<br />

Gloria Jean ' s Coffees makes a considerable<br />

contribution to this market, roasting and selling<br />

over 400 tonnes of coffee every year. This means<br />

that Gloria Jean's Coffees customers consume over<br />

70 rn.illion cups of coffee per year.<br />

ACHIEVEMENtS<br />

Gloria Jean ' s Coffees is the fastest growing branded<br />

specialty coffee store chain in <strong>Australia</strong>. Since<br />

opening the first store in Sydney in 1996, Gloria<br />

Jean's Coffees has added more than 185 stores in<br />

every state and territory.<br />

In 2003, Gloria Jean ' s Coffees annual turnover<br />

was $85 million and this provided jobs for over<br />

3,500 <strong>Australia</strong>ns.<br />

Local success was internationally acclaimed in<br />

2003 when Gloria Jean's Coffees <strong>Australia</strong> opened<br />

the most new stores of any country in the Gloria<br />

Jean's Coffees international market.<br />

Gloria Jean's Coffees in <strong>Australia</strong> is committed<br />

to supporting the economy by ensuring most of<br />

the key products and ingredients are manufactured<br />

locally. The ultimate aim is to ensure that all<br />

products the stores use are manufactured in<br />

<strong>Australia</strong>.<br />

The success of the company can be attributed<br />

to a commitment to always use prern.ium ingredients<br />

for all products, provide ongoing training and<br />

operational support to franchisees and constantly<br />

educate the <strong>Australia</strong>n marketplace about the<br />

specialty coffee industry. Gloria Jean's Coffees also<br />

has a strong dedication to research, development<br />

and innovation.<br />

HISTORY<br />

In 1995, Nabi Saleh, a businessman internationally<br />

regarded for his coffee knowledge and expertise,<br />

and Peter Irvine, former Managing Director of<br />

advertising agency DDB Needham, visited the<br />

United States to experience first hand the Gloria<br />

Jean's Coffees brand. Nabi and Peter identified the<br />

opportunity for this unique brand in <strong>Australia</strong> and<br />

saw the chance to provide <strong>Australia</strong>n consumers<br />

with high quality coffee and consistent service in<br />

accessible locations.<br />

Together they established Jireh International Pty<br />

Ltd, the company that now holds the right to<br />

franchise Gloria Jean's Coffees in <strong>Australia</strong>.<br />

Nabi' s expertise in the coffee and tea industries<br />

combined with Peter' s background in franchising,<br />

marketing and adve1tising created the pe1fect recipe<br />

for a successful prutnership.<br />

In late 1996, Jireh International Pty Ltd opened<br />

the first Gloria Jean ' s Coffees store in Miranda,<br />

Sydney. Two weeks later m1other opened in<br />

Eastgardens, also in Sydney. These stores were<br />

set up to thoroughly test the concept in the<br />

<strong>Australia</strong>n market.<br />

In early 1998, Gloria Jean's Coffees franchised<br />

its first store and within six years had opened 185<br />

stores - all locally owned and operated by more<br />

than I 00 franchisees. In 2003, the company opened<br />

a franchise in Darwin, meaning that the brand was<br />

now established in every state and territory.<br />

The continued growth of Gloria Jean's Coffees<br />

is a result of an effective franchising model, stable<br />

management practices and a committed and<br />

enthusiastic team who are passionate about coffee<br />

and satisfying customers.<br />

Jireh International Pty Ltd is a wholly <strong>Australia</strong>n<br />

owned company. Nabi Saleh is the Chairman and<br />

Peter Irvine is the Managing Director.<br />

THE PRODUCT<br />

Gloria Jean's Coffees offers consumers a complete<br />

58


coffee experience. Retail stores are located in iconic<br />

metropolitan areas, shopping centres, transport<br />

hubs and entertainment districts.<br />

Ranging from sit-down cafes to streetside coffee<br />

bru·s, Gloria Jean's Coffees stores offer consumers<br />

a wide range of more than 150 products including<br />

hot and cold blended espresso drinks, fresh<br />

premium coffee beans and teas, pastries, and coffee<br />

related merchandise.<br />

Gloria Jean ' s Coffees uses only the finest quality<br />

selected top tier Arabica coffee beans which ru·e<br />

meticulously roasted to exact specifications<br />

ensuring customers receive the same delicious cup<br />

every time. The range of premium and specialty<br />

coffee beans is available directly to customers<br />

through Gloria Jean's Coffees stores.<br />

Gloria Jean's Coffees also produces a range of<br />

high-quality tea products offering customers an<br />

array of flavours, herbals, and fruit infusions from<br />

the world's top tea growing regions.<br />

Each month a special promotional drink is<br />

featured. A recent partnership between Gloria Jean ' s<br />

Coffees ru1d another iconic <strong>Australia</strong>n brand,<br />

Arnott's, saw the introduction of the Arnott's Tim<br />

TanfMGourmet Iced Chocolate drink.<br />

RECENT DEVELOPMENtS<br />

The expansion ofGloriaJean's Coffees in 2003 has<br />

also seen two new stores open in New Zealand.<br />

The New Zealand coffee market is growing at a<br />

similru· rate to <strong>Australia</strong>' s and a number of additional<br />

Gloria Jean 's Coffees stores are expected to open<br />

there this yeru·.<br />

Gloria Jean ' s Coffees hosted its inaugural<br />

convention in Sydney in 2003 which was a true<br />

indication of the growth in stores and franchisee<br />

numbers. The landmark event attracted over 250<br />

<strong>Australia</strong>n and international Gloria Jean's Coffees<br />

franchisees and industry experts. It exposed<br />

pruticipants to the latest industry trends, product<br />

training, and merchandising and skill development<br />

workshops in local store mru·keting.<br />

Gloria Jean ' s Coffees marketleadership was<br />

further exemplified by the<br />

prutnership in2003 with Optus and<br />

the in stal lation of ' Optus<br />

Wireless Connect' WiFi services<br />

in stores in Sydney, Newcastle,<br />

Melbourne, Brisbane, Adelaide<br />

and Pe1th. This service enables<br />

customers to access highspeed<br />

internet service while<br />

enjoying their coffee.<br />

Gloria Jean's Coffees also<br />

extended its customer<br />

product offerings in 2003<br />

when it launched a premium<br />

tea range including 23<br />

specialty tea varieties<br />

sourced from ru·ound the<br />

world.<br />

Gloria Jean's Coffees<br />

I S committed to<br />

providing community<br />

support at a corporate<br />

and franchise level. In<br />

2003, it announced a<br />

major community<br />

partnership with<br />

Mercy <strong>Australia</strong>.<br />

Mercy <strong>Australia</strong> is a chru·ity<br />

established in 2000 to help<br />

women who are dealing with<br />

eating disorders, unplanned<br />

pregnancies, abuse and other life<br />

controlling issues. The unique<br />

program is designed for young<br />

women aged 16-28 years who<br />

participate in a 6 to 12 month<br />

residential-based program at a<br />

Mercy home. Gloria Jean's Coffees<br />

will aim to raise at least$ I million for<br />

Mercy <strong>Australia</strong> over the next two<br />

PROMOTION<br />

Coffees invests<br />

significantly in both above and below<br />

the line mru·keting. In 2002, the company<br />

launched a new brand position Escape<br />

the Daily Grind® supported with<br />

national TV, radio, print and outdoor<br />

advertising.<br />

Research has shown that the campaign<br />

has contributed significantly to the differentiation<br />

of the Gloria Jean ' s Coffees brand from other<br />

branded specialty coffee store chains.<br />

Gloria Jean's Coffees maintains an ongoing<br />

consumer public relations program promoting new<br />

products, promotions, store openings and<br />

company news. Over the past 12 months Gloria<br />

Jean ' s Coffees has been profiled in a number of<br />

women's and lifestyle magazines and has also been<br />

featured in major metropolitan newspapers.<br />

Gloria Jeans Coffees is regulru·ly asked by the<br />

media for expert comment on the Australiru1<br />

speciality coffee industry.<br />

All franchisees are trained in local store<br />

mru·keting and ru·e provided with ongoing store<br />

marketing support and resources.<br />

BRAND VALUES<br />

Gloria Jean's Coffees is a community-minded brand<br />

in every sense. The stores provide an 'oasis' for<br />

the coffee lover- an escape from the 'daily grind'<br />

where customers can feel welcome ru1d comf01table,<br />

meet friends or just soak up the unique coffee store<br />

atmosphere.<br />

The company is driven by the desire to be the<br />

most loved and respected coffee house in <strong>Australia</strong><br />

and to be keenly regru·ded by consumers for its<br />

quality coffee, coffee know-how, professional,<br />

friendly approach and relaxed store atmosphere.<br />

As <strong>Australia</strong>'s leading branded speciality coffee<br />

store chain, Gloria Jean's Coffees is committed to<br />

building a unified frun.ily, consistently serving the<br />

highest quality coffee and providing outstanding<br />

service in a vibrant store atmosphere.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

GLORIA JEAN'S COFFEES<br />

0 Gloria Jean's Coffees is <strong>Australia</strong>n<br />

owned and operated.<br />

0 Gloria Jean's Coffees uses only top tier<br />

I 00 per cent Arabica coffee.<br />

0 There are cunently more than 185<br />

Gloria Jean's Coffee stores in every<br />

state and tenitory.<br />

0 Gloria Jean 's Coffees is the Jru·gest<br />

branded specialty coffee store chain in<br />

<strong>Australia</strong>.<br />

0 There ru·e more Gloria Jeru1 ' s Coffees<br />

stores in <strong>Australia</strong> than anywhere else<br />

in the world.<br />

0 In 2003 Gloria Jeru1' s Coffees sold over<br />

70 million cups of coffee and roasted<br />

and sold over 400 tonnes of coffee.<br />

59


Hills,.<br />

THE MARKET<br />

Styles and models have changed over the<br />

years, but Hills has remained at the<br />

forefront of design technology in its<br />

mru·kets. The latest range of fo lding or<br />

removable clotheslines continues to make<br />

laundry chores easier and reflects the<br />

tre nd towards small er gardens. The<br />

original "Hills Hoist" revolutionised<br />

washdays and its current successor, the<br />

Foldaline Compact Plus, is the pride of<br />

the washday scene today in <strong>Australia</strong> and<br />

many overseas countries.<br />

Since 1946, the range of products made<br />

by Hills Industries has g rown and<br />

continues to expand. Today, almost sixty years<br />

since the Hills Hoist was introduced, Hills<br />

Industries manufactures a wide range of<br />

clotheslines and indoor laundry equipment. Every<br />

day, fanulies in <strong>Australia</strong> and m·ound the world use<br />

a Hills product somewhere at home, school, work<br />

or at play.<br />

llills Industries also manufactures and mm·kets<br />

a growing range of home and gru·den products<br />

including ladders, wheelbarrows, woodworkjng<br />

equipment, garden sprayers, children's swings and<br />

slides, trampolines, hand trucks and trolleys and<br />

screen and security doors.<br />

But these home and hardwru·e products now<br />

constitute just one pmt of the Hills business. The<br />

company is developing businesses in three<br />

segments : Home and Hardware Products,<br />

Electronics, and Building and Industrial Products.<br />

Products m·e expmted m·ound the world from<br />

factories in Adelaide, Brisbane, Perth and<br />

Melbourne and from a<br />

quality-accredited<br />

plant in the United<br />

Kjngdom. Hills has a<br />

substantial share of<br />

many markets.<br />

ACHIEVEMENIS<br />

Hills' success has been<br />

achieved through innovation<br />

and marketing<br />

know-how. The company<br />

has the abil ity to change<br />

with the times, responding<br />

to consumer demands with<br />

products that are designed<br />

to complement today's busy<br />

lifestyle. These changes have<br />

been reflected in many products manufactured by<br />

llills Industries but none more so than in the rotary<br />

clothesline.<br />

The Hills Hoist is so essentially <strong>Australia</strong>n that<br />

it featured in the closing ceremony of the 2000<br />

Sydney Olympics, celebrating its status as an<br />

emblem of <strong>Australia</strong>n enterprise and an icon of<br />

Australi an culture. The photograph of the Hills<br />

Hoist in the burning backyard of a Canberra<br />

property in 2002 typifies this iconic status.<br />

Hills is also now <strong>Australia</strong>'s le


THE PRODUCT<br />

The name llills immediately identifies the<br />

company with its national icon, the rotary<br />

clothesline. Efficient and user-friendly<br />

means of drying clothes outdoors ru·e<br />

still central to the Hills philosophy. But<br />

while a galvanised version of the original<br />

model is still produced, a complete new<br />

range has also been developed to suit<br />

the needs of modern day consumers.<br />

And of course the name lliJJs is no longer<br />

representative simply of drying<br />

equipment.<br />

For larger families, rotating<br />

clotheslines remain the most popular<br />

providing plenty of space for family<br />

washdays. With less space increasin gly being<br />

provided for backyru·ds, Hills also has ru1 extensive<br />

range of compact folding and retractable clotheslines<br />

designed for balconies and comtyru·ds. The indoor<br />

laundry is also catered for with ironing boru·ds,<br />

mobile clothes stands and space-saving clothes<br />

airers.<br />

Hills also makes <strong>Australia</strong>'s largest range of<br />

ladders and wheelbarrows, manufactured to<br />

withstand the rigours of the professional trade and<br />

demands of the do-it-yourself mru·ket.<br />

Ladders and wheelbruTows ru·e sold under brand<br />

names: Bailey, Oldfields Ladders, Ladderweld and<br />

Kelso, all renowned for their quality and reliability.<br />

Hills also produces handcmts, trolleys and a vm·iety<br />

of gm·den sprayers. The company has an impo1tant<br />

role in the home protection mm·ket with top quality<br />

screen and security doors mm·keted under the Hills<br />

name. For children it produces a range of gm·den<br />

swing sets, slides and t:ra111polines under the Playtime<br />

label.<br />

A recent addition to the Hills group of companies<br />

is Fielders, a name synonymous with roofing for<br />

more than I 00 yem·s. Initially providing roofing<br />

materi als, it now manufactures and supplies steel<br />

doorframes, Centenm·y cru·pmts, verandas, sheds,<br />

fencing and steel flooring systems as wel l as<br />

providing comprehensive support in all aspects of<br />

building and construction.<br />

Hills subsidim·y On·con, in the Industrial Products<br />

Division, supplies a complete range of steel tubing<br />

to industry, from small dimneter precision tube for<br />

fencing and ft.1rniture to Jm·ge structural steel sections<br />

used in construction. In addition, On·con has<br />

recently commissioned a tube mill to supply<br />

pressure pipe for gas.<br />

Another recent addition is the K-Cm·e Group in<br />

Perth. K-Care manufactures and di stributes a<br />

supe1ior and comprehensive range of specialised<br />

mobility equipment making life more pleasant for<br />

senior citizens and people with a disability.<br />

In the emly 1 990s Hills identified electronic<br />

security as a long-term growth oppmtunity. By a<br />

combination of acquisition and organic growth,<br />

Hills' electronic security businesses,DirectAJm·m<br />

Supplies and Pacific Communications, have grown<br />

to be the mmket leaders in <strong>Australia</strong> and New<br />

Zealand. Hills represents the world's leading<br />

security companies in these mm·kets, and carries<br />

products rang ing from simple domestic<br />

applications to access control and CCTV systems<br />

suitable for high security applications such as<br />

casinos and prisons.<br />

In October 1999 the famous Triton range of<br />

innovative woodworking products for DIY<br />

enthusiasts was added to the list of consumer<br />

items. Together with the Triton Series 2000<br />

Workcentre, they ru·e further exmnples of Hills<br />

commitment to hi gh quality <strong>Australia</strong>n-made<br />

products.<br />

The combined total of products from tills group<br />

of companies has broadened Hills' business<br />

interests and widened the traditional customer<br />

base.<br />

RECENT DEVELOPMENIS<br />

Hills is and remains the industry leader in multi<br />

channel 1llicrowave antennas, but the company<br />

now also enjoys strong sales to pay TV operators<br />

in <strong>Australia</strong>.<br />

As the leading manufacturer and mm·keter of<br />

clotheslines in the UK,Hills recently entered into a<br />

joint venture to manufacture and market its<br />

innovative range of new products and indoor<br />

clothes dryers throughout Europe, featuring its<br />

patented VarioProtect hidden line rotary<br />

clotheslines.<br />

Hills' electronic security division recently<br />

released the Hills Home Hub, the gateway to home<br />

automation using the range of Hills products<br />

including security, internet access, lighting control<br />

and a range of other lifestyle applications.<br />

PROMOTION<br />

In 2003, the company introduced a new styl ised<br />

logo to better capture the contempormy nature of<br />

the business. The colours red and blue, adopted<br />

long ago, have been retained in keeping<br />

with Hills' long and successful heritage.<br />

Continuing market research has<br />

demonstrated extre mely hig h bra nd<br />

recognition and survey results have shown<br />

unprompted awm·eness of the Hills brand<br />

at 82 per cent and total recognition at<br />

almost I 00 per cent.<br />

Among other brands under the Hills<br />

umbrella, the Bailey and Kelso brands are<br />

a lso gaining brand recognition. The<br />

company's promotional activity is focused<br />

on retail customers to maximise sales<br />

opportunities. This strategy has resulted<br />

in a strong association with major retailers<br />

around <strong>Australia</strong> and a growing consumer<br />

demand for the products.<br />

Brand awm·eness is a major consideration in the<br />

company's marketing mix and media ca111paigns<br />

providing the endorsement link between Hills and<br />

its sub-brands have been launched.<br />

BRAND VALUES<br />

The Hills name and brand are key assets. In<br />

November 2002, a review was conducted among<br />

major stakeholders to establish words or images<br />

associated with the Hills brand name. Several<br />

hundred employees, shm·eholders and customers<br />

were surveyed. Words most commonly associated<br />

with Hills were 'clotheslines', '<strong>Australia</strong>n', 'quality'<br />

and 'conservative'_<br />

Hills Industries remains a solid, dependable<br />

<strong>Australia</strong>n company with technical superiority and<br />

many clever products and services - in fact the<br />

clothesline was just the first of many clever Hills<br />

products. Long-term success depends on the high<br />

quality of all Hills products. Commitment,<br />

innovation, research and development and<br />

advanced technology m·e taking the company into<br />

a progressive new era.<br />

Hills' strategy is to continue developing<br />

competitive businesses in its three main industry<br />

segments. The aim is to be product innovators and<br />

mm·ket leaders and to achieve a sensible level of<br />

diversification within each industry segment to<br />

minimise the impact of short-term changes in<br />

mm·kets and economies.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

HILLS INDUmiES<br />

0 In 1994, Hills celebrated the sale of its<br />

five Illillionth Hills Hoist, a11 event the<br />

whole country recognised as a<br />

Illi1estone. The Hills Rotm-y Hoist had<br />

become an emblem of AustTa1ian<br />

enterprise.<br />

0 To celebrate the first 50 years of the<br />

Hills company, the Adelaide Festival of<br />

Alts chose the Hills Rotru-y Hoist as a<br />

symbol to promote and market the 1996<br />

progran1 of cultural events to the<br />

world.<br />

0 During the closing ceremony of the<br />

Sydney 2000 Olympic Gmnes, the Hills<br />

Hoist was prominent, a tribute to the<br />

significant role that Hills products<br />

have played in <strong>Australia</strong>n culture.<br />

61


HONDA<br />

The Povver of Dreams<br />

THE MARKET<br />

Honda, the world's largest engine manufacturer, is<br />

involved in many different market segments in<br />

<strong>Australia</strong>. They range from prestige cars via<br />

motorcycles, outboard engines and power<br />

equipment to general purpose engines for original<br />

equipment manufacturers.<br />

Offering state-of-the-art technology, scrupulous<br />

quality, safety and superb performance, Honda sells<br />

more than 200,000 products each year into the<br />

<strong>Australia</strong>n market and 15 null ion products globally.<br />

The remarkable penetration of the Honda brand<br />

in <strong>Australia</strong> has been made possible by the variety<br />

of products and the sales and service dedication of<br />

over a thousand retail outlets and 280 OEMs. The<br />

great range of products means that customers are<br />

constantly introduced to the Honda brand at many<br />

different points.<br />

ACHIEVEMENTS<br />

The Honda brand can list many m


Honda <strong>Australia</strong> started officially on February 4' 11 ,<br />

1969 in a rented flat.<br />

Honda grew enormously during the following<br />

decades and in October 1991 Honda MPE was<br />

established. Dedicated to Honda Motorcycles,<br />

Power Equipment and Marine, and separate from<br />

Honda cars, the company was formed to focus<br />

attention on the many opportunities in the<br />

<strong>Australia</strong>n market.<br />

THE PRODUCT<br />

The strength of the Honda brand derives from the<br />

simple fact that each Honda product is designed,<br />

engineered and manufactured to be the leader in its<br />

field, delivering optimum performance, reliability,<br />

economy and world leading enlission levels.<br />

Honda's advanced engineering has created the<br />

world's best engines, and as a result, Honda is the<br />

world's largest and most successful engine<br />

manufacturer.<br />

Honda's first product, the A-type bicycle<br />

engine, was produced in small quantities<br />

in 1947. Today, in <strong>Australia</strong>, more than<br />

80,000 engines are sold each year to<br />

Original Equipment Manufacturers.<br />

These engines power the likes of icons<br />

such as Victa, Rover, Onga and Davey,<br />

who badge their own products powered by<br />

these outstanding Honda engines.<br />

Honda' s commitment to the environment and<br />

quality motor vehicle manufacturing has been<br />

thoroughly demonstrated by the introduction of<br />

the unforgettable Civic, Accord, Legend, NSX, CRY,<br />

S2000, MDX and, more recently, the Insight which<br />

is a hybrid motor vehicle.<br />

The GB30 outboru·d engine was released in 1964,<br />

and today Honda offers the lru·gest and cleanest<br />

range of four-stroke engines in the world, ranging<br />

fi·om 2 to 225hp.<br />

The first Honda power product, the F-150 Tiller,<br />

was released in 1959 followed in 1965 by the E300<br />

portable generator. Today, Honda is a market leader<br />

in the Power Equipment market in <strong>Australia</strong> with<br />

products ranging from lawn mowers to<br />

brushcutters, generators, tillers and pumps.<br />

RECENT DEVELOPMENTS<br />

Honda has brought the world a myriad of leading<br />

edge technologies, such as the CYCC (Compound<br />

Vottex Controlled Combustion), fitted to the first<br />

automobile engine to meet the US Clean Air Act<br />

requirements. More recently, Honda led the world<br />

in bringing to market a fuel cell vehicle, the FCX.<br />

Honda's ongoing efforts in research and<br />

development play a central role in helping create<br />

original, innovative products that meet both the<br />

expectations of customers and the needs of society.<br />

Honda' s Wako Research Centre focuses on<br />

fundamental research in the fields of electronics,<br />

biotechnology and new materials. Four facilities<br />

share the initiative in developing new products for<br />

tomorrow, with a focus on increased durability,<br />

reliability and performance.<br />

Honda was the first company in the world to<br />

develop a humanoid robot capable of autonomous,<br />

bipedal motion. Honda's advanced robot, ASIMO,<br />

incorporates artificial intelligence enabling the<br />

robot to understand and independently respond<br />

to body language and gestures. Honda's goal is to<br />

create a robot that will be a true partner to<br />

humankind.<br />

Honda is also taking aim at the sky. Two of<br />

Honda's recent challenges include the development<br />

of a compact business jet and a piston aircraft<br />

engine. Honda's US R&D operation has already<br />

created a prototype of the jet, which is entering the<br />

test flight phase.<br />

Established<br />

111 Japan, the US<br />

and Germany in 2003, Honda Research Institute<br />

(HRI) has been chru·ged with fundamental reseru·ch<br />

and is working closely with local scientific<br />

COITLinunities. HRl is applying reseru·ch in the field<br />

of rutificial intelligence to enhance automotive<br />

safety and to develop advanced robots, and is using<br />

new materials research to supp01t the development<br />

of ultra-lightweight materials and new catalysts for<br />

fuel cells. In the ru·ea of biotechnology, HRI is also<br />

investigating the feasibility of deriving automotive<br />

fuel from plants.<br />

PROMOTION<br />

Honda utilises a mixture of television, radio, press,<br />

outdoor and electronic advertising. Supporting the<br />

promotion of the brand is the racing program, with<br />

Honda participating both domestically and<br />

internationally.<br />

A fundamental component of supp01ting brand<br />

awru·eness is corporate identification; with over<br />

I ,000 retail outlets, Honda has a very strong external<br />

presence within <strong>Australia</strong>.<br />

BRAND VALUES<br />

Since its foundation, Honda has been powered by<br />

dreams. The ongoing dream is to provide genuine<br />

satisfaction to people everywhere. Products of the<br />

highest quality at a reasonable price are the core of<br />

"The Power of Dreams" which encapsulates<br />

Honda's core values.<br />

Honda's mission is to offer products,<br />

technologies and services that<br />

contribute to society and improve<br />

people's lives. Dreams are<br />

central to all activities and<br />

Honda's respect for people<br />

and their individual<br />

differences has led to a free,<br />

vital corporate culture that<br />

encourages creativity.<br />

To ensure that Honda<br />

.....Sii:lii:i~<br />

meets local needs, the company has gone beyond<br />

establishing local sales networks. Many products<br />

are not only manufactured but also developed in<br />

the regions where they ru·e used. Honda has more<br />

than 120 manufacturing facilities in 29 countries<br />

outside Japan, producing motorcycles, automobiles,<br />

and power products that bring Honda in contact<br />

with over 15 million customers each yeru·.<br />

At the same time, Honda recognises<br />

its social responsibility as a corporate<br />

citizen. Honda is working to reduce the<br />

impact on the global environment at all<br />

stages of its operations, from development<br />

and production to sales. This involves<br />

improving the efficiency with which the<br />

company uses energy and other natural<br />

resources, reducing harmful emissions and<br />

increasing the fuel efficiency of its products, as<br />

well as creating green factories to help solve the<br />

world's environmental problems.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

HONDA<br />

0 The Honda Collection Hall in Japan<br />

houses 50 yeru·s of Honda innovation<br />

from the motorised bicycle built by<br />

Soichiro Honda in 1948 to a prototype<br />

jet aircraft engine now under<br />

development.<br />

0 The Collection Hall includes a priceless<br />

link with <strong>Australia</strong>n history: Sir Jack<br />

Brabhrun' s Honda-powered Formula 2<br />

cru· in which he won the 1966 European<br />

title with a record number of victories.<br />

0 Honda's indoor cm-to-cru·<br />

omnidirectional crash test facility, the<br />

world's first, was completed in 2000<br />

and provides collision simulation<br />

conducted under real world<br />

conditions.<br />

0 Honda has built more than 300,000<br />

lawnmowers at Honda Manufacturing<br />

<strong>Australia</strong> (HMA) in Melbourne.<br />

0 Honda <strong>Australia</strong> Roadcraft Training<br />

(HART) provides rider and driver<br />

training to more than 12,000 riders and<br />

drivers each yeru·.<br />

0 Honda <strong>Australia</strong> Riders Club (HRCA)<br />

has more than 75,000 members ru1d<br />

organises events such as ride days,<br />

track days and Moto GP hospitality.<br />

0 In December 2002 Honda began to<br />

deliver the FCX motor vehicle,<br />

powered by a revolutionru·y fuel cell, to<br />

Japanese customers. This<br />

demonstrates Honda's co1TL111itment to<br />

the environment in engineering ru1d<br />

manufacturing.<br />

63


EnergyAustrafia·<br />

Extra. FRE:E:DOI"I Gillefle<br />

--- · ~• o RO - o o• o ......... . ~ . ..


JURLIQ1JE<br />

The Purest Sk .<br />

tb®<br />

zn Care on Ear<br />

THE MARKET<br />

<strong>Australia</strong>n born Jurlique<br />

International enjoys a global<br />

reputation for producing The Purest<br />

Skin Care on Earth®, and not<br />

without good reason. The company<br />

is wholly dedicated to creating a<br />

line of pure, natural products that<br />

are rich in antioxidants and<br />

organically grown herbs that<br />

revitalise, nourish and strengthen<br />

the skin.<br />

The lu xu rious textures and<br />

uplifting natural aromas for which<br />

it has become famous form the<br />

foundation of a range that spans<br />

everything from skin and body care<br />

treatments to hair products, aromatherapy massage<br />

and body oils, men' s care, baby care, natural<br />

fragrances, foundation and lipsticks and herbal<br />

organic teas and alternative medicine. There is even<br />

a range designed to cater for the beauty within.<br />

Today, Jurlique International is exp01ted to over 20<br />

countries with an annual turnover of $ 100 million<br />

dollars as a result of a more than I ,000 per cent<br />

increase in sales since 1996.<br />

ACHIEVEMENTS<br />

The Jurlique range aims to promote healthy,<br />

glowing skin and body regardless of age or<br />

climate. All products are I 00 per cent naturally<br />

based and rich in active, organic herbal extracts<br />

that enhance personal beauty and radiance. They<br />

are high in natural antioxidants, vitamins and<br />

herbal ingredients that promote health and<br />

wellbeing, while remaining hypo-allergenic and<br />

pH balanced, which means they are suitable for<br />

all skin types regardless of age.<br />

Produced without the use of petro or coal tar<br />

chemicals, artificial colours or fragrances, each<br />

product is created using the unique 3-step<br />

BiointrinsicTM extraction method that captures the<br />

' li fe-force' of plants, enhancing their potency.<br />

Jurlique is not only kind to the skin, it is also<br />

kind to animals and the environment. More than 95<br />

per cent of all herbs used in Jurlique products are<br />

grown on the company-owned organic and<br />

biodynamic herb fru·m ,<br />

guru·anteeing that no<br />

synthetic<br />

A<br />

JURUQ!,JE<br />

Pure Rosewater<br />

Freshener<br />

SPRAY<br />

VAPOR!SATEUR<br />

REPRAi CHISSANT<br />

6<br />

jURLIQ\)E<br />

66


pesticides, herbicides or fertilisers are used. No<br />

product is tested on animals and they are all fully<br />

biodegradable. Even the packaging is recyclable,<br />

made primarily fi·om cardboard, aluminium and glass.<br />

Active, organic, <strong>Australia</strong>n; when it comes to<br />

natural products Jurlique is the best in the world.<br />

HISTORY<br />

Jurlique began life with the marriage of Dr Jurgen<br />

Klein, a chemist, naturopath and authority on<br />

alternative medicine, and Ulrike Fischer, herself a<br />

botanist and horticulturalist. Between them they<br />

dreamed of developing a total skin and health care<br />

system that combined the ancient ruts of alchemy,<br />

herbal medicine and homeopathy with state-of-theart<br />

technology and research.<br />

While the KJeins knew this dream was within<br />

their reach, Germany was not conducive to realising<br />

it and so they began looking for a new home. They<br />

searched the world for a less polluted environment<br />

in which to grow nature's herbs and flowers, and<br />

they found it in a town si tuated in the pristine<br />

Adelaide Hills of South <strong>Australia</strong>. Having emigrated,<br />

the KJeins set up their herb farm in Mount Bru·ker in<br />

1985 and began developing their range.<br />

The J urlique collection has grown considerably<br />

since then to include more than 250 products.<br />

Supporting this expansion, Mount Barker now<br />

houses not only the organic herb farms<br />

but also a research laboratory, factory<br />

and head office. Initially products were<br />

sold only in health food stores and<br />

beauty salons and the company was<br />

relatively unknown in the mainstream<br />

cosmetic industry. Today, however,<br />

Jurlique supplies retail outlets ru·oLmd the<br />

world, and has more than 30 concept<br />

stores and spas <strong>Australia</strong>-wide, another<br />

40 overseas and an extensive distribution<br />

network in the international beauty spa,<br />

beauty therapy, department store,<br />

pharmacy and health food industries.<br />

THE PRODUCT<br />

While there are far too many<br />

to mention, the myriad<br />

JURUQ11E<br />

eckSerUJil<br />

lnten.Mvc:: trcaunt:P 1<br />

30mL . !.0 f] .OZ·<br />

Jurlique products available have all been designed<br />

to help combat the physical and emotional tolls<br />

associated with today' s hectic pace of city life.<br />

The Pure Rosewater Freshener contains<br />

BiointrinsicTM organic herbal rose extracts and is<br />

an excellent pick-me-up for a tired or dehydrated<br />

complexion. The Herbal Recovery Gel is Jurlique's<br />

premium moisturiser, and is a potent all-botanical<br />

concentrate suitable for both day and night. The<br />

rich gel works deeply to firm, tone, restore, hydrate<br />

and harmonise your skin. It is often referred to as a<br />

Face Lift in the Bottle©. And the Eye Gel is a light,<br />

potent, herbal antioxidant gel that helps reduce<br />

puffiness and dark circles while gently firming the<br />

delicate eye ru·ea. Together with the strong Neck<br />

Serum, these three products are often known as<br />

the "Liquid Gold" of Jurlique.<br />

RECENT DEVELOPMENTS<br />

J mlique' s dedication to skin and health care extends<br />

well beyond its actual product range, and the<br />

company has also established many Jurlique Day<br />

Spas around the world. An important element of<br />

the company's holistic approach to inner beauty,<br />

these spas provide a wide range of facials,<br />

massages, full body treatments and hydrotherapy,<br />

using exclusively Jurlique' s pme, natural and highly<br />

effective spa products to revitalise both skin and<br />

psyche.<br />

In 2003, Jurlique extended the number of Day<br />

Spa and Wellness Sanctua.ties within <strong>Australia</strong> to<br />

include the locations of Oxford Stand Mosman in<br />

Sydney and Chadstone, Melbourne. Significant<br />

expansion was also seen internationally with<br />

developments throughout the Asia Pacific<br />

region and in the US.<br />

PROMOTION<br />

The best promotional tool for Jurlique is<br />

the range itself. The integrity of the<br />

product, its pure and natural ingredients<br />

and the proven results of the entire range<br />

on the skin of every Jurlique customer is<br />

the basis of Jurlique's promotional<br />

strategy.<br />

Promotional<br />

activity a! ways<br />

brings consumers<br />

back to their<br />

relationship with<br />

Jurlique, focusing<br />

on Hero products<br />

and Jurlique' s 5 Step Ritual to Healthy and Radiant<br />

Skin. Providing a range of products to answer every<br />

customer's individual needs strengthens this<br />

strategy. By continually developing new products<br />

in order to keep ahead of market requirements,<br />

J urlique reinforces its presence as the international<br />

leader in natural skincare, health and wellbeing.<br />

BRAND VALUES<br />

But products alone don't make a luxury Superbrand,<br />

and Jurlique's philosophy goes some way to<br />

explaining what makes it so unique. The company<br />

centres its vision on three main principles. The<br />

Purity of the product is vital and J urlique stands by<br />

its promise to deliver only plant-based products<br />

and herbs grown<br />

organically and biodynamically<br />

from sustainable<br />

resources.<br />

The compru1y's Integrity<br />

is valued highly and<br />

ethical, honest, sincere and<br />

direct communication with<br />

each other, staff, customers<br />

and the public in general<br />

makes them one of the most<br />

customer-focused companies<br />

in the world. And finally,<br />

Jurlique Cares sufficiently<br />

about the individual and the<br />

environment to protect<br />

them at all costs.<br />

This philosophy is<br />

coupled with a passion for perfection that is<br />

displayed in every facet of Jurlique's business. From<br />

tilling the soil and planting the seed to hru·vesting,<br />

extracting, formulating, manufacturing, packaging<br />

and distributing the end product - the company<br />

strives to create an effective and vital health care<br />

system for everyone.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

JURLIQUE<br />

0 The na.tne Jmlique is the combination<br />

of the christia.t1 na.tnes of the founders,<br />

Jurgen and Ulrike.<br />

0 The Jurlique logo reflects the Jurlique<br />

vision petfectly and symbolically. The<br />

spheroid triangle represents the<br />

triangle of Jurlique principles: purity,<br />

integrity a.t1d ca.t·e. The three symbols<br />

within it represent the three ancient<br />

stills that Jurlique utilises, symbolising<br />

the bio-intrinsic process made up of<br />

sepmating, pmifying and re-uniting.<br />

0 Jmlique's Herb Fru·ms in South<br />

<strong>Australia</strong> now produce 95 percent of<br />

the herbs and plants necessa.t·y for<br />

inclusion in Jurlique' s extensive Skin<br />

Ca.t·e and Health Ca.t·e range.<br />

0 Jurlique expettise is not restricted to<br />

skin and health products. The<br />

company also offers a hand-made and<br />

highly successful pottery ra11ge that<br />

combines over 20 yeru·s of expetience<br />

in creating fine handcrafted pottery<br />

and superb high-fired stonewa.t·e.<br />

67


THE MARKET<br />

There are Kraft products on the market<br />

for all members of the family and a<br />

variety of meal and snack occasions.<br />

Generations of <strong>Australia</strong>ns have grown<br />

up on Kraft Singles':', Cheestiks*,<br />

Vegemite* and Kraft Peanut Butter*.<br />

New products are constantly being<br />

developed to serve Kraft's consumers.<br />

Philadelphia Spreadable* with half<br />

the fat of butter is meeting the changing<br />

eating habits of adult <strong>Australia</strong>ns and<br />

extending the market for Philadelphia<br />

Cream Cheese* far beyond its<br />

traditional role in cheesecakes. New<br />

Philadelphia Spreadable flavours are<br />

now also available in tubs and pmtions.<br />

New varieties of Kraft salad dressings<br />

are launched each spring to provide consumers<br />

with salad inspiration.<br />

Kraft also markets confectionery and coffee<br />

in <strong>Australia</strong> with brands like Toblerone*,<br />

Terry's ' 1 ' and Maxwell House*, as well as a<br />

range of Nabisco biscuits including In a<br />

Biskit*, Oreo*, Ritz, Premium, Chips Ahoy<br />

and Captains Table*.<br />

ACHIEVEMENTS<br />

Kraft is a household name in <strong>Australia</strong>, synonymous<br />

with foods of the highest quality. Kraft<br />

ensures that its range of products caters to the<br />

ever-changing tastes and desires of <strong>Australia</strong>n<br />

taste buds. Since 1926, generations of <strong>Australia</strong>n<br />

families have grown up<br />

enjoying the great tastes of<br />

Kraft brands. Kraft has<br />

worked hard to ensure that<br />

its products ar·e a big pa1t<br />

of <strong>Australia</strong>n life.<br />

Kraft <strong>Australia</strong> contributes<br />

millions of dollars every year to the<br />

<strong>Australia</strong>n economy. In addition to selling<br />

directly to <strong>Australia</strong>n retailers, the<br />

company exports consumer products to<br />

many countries. The company employs<br />

around 1700 people in <strong>Australia</strong> and over<br />

the past 75 years has employed more than<br />

50,000 <strong>Australia</strong>ns. Many of these jobs<br />

are in country <strong>Australia</strong>, consolidating the<br />

close relationship between Kraft and rural<br />

communities involved in the dairy<br />

industry.<br />

Kraft <strong>Australia</strong> has provided<br />

countless recipes, cookbooks and<br />

advice direct from the Kraft Kitchens.<br />

A new Philadelphia cookbook<br />

encourages the increasing use of<br />

Philadelphia in meal preparation.<br />

The Kraft <strong>Australia</strong> website<br />

www.kraft.com.au provides meal ideas<br />

and product information to thousands<br />

of people each month.<br />

Kraft Foods Inc operates in 65<br />

countries and Kraft brands are sold<br />

in more than 150 countries world<br />

wide. Kraft Foods Inc employs<br />

I 09,000 people. Kraft is the second<br />

largest food company in the world<br />

with a host of trusted brands that date<br />

back as far as 1767.<br />

HISTORY<br />

The history of Kraft in <strong>Australia</strong> begins with<br />

Melburnian Fred Walker. In 1903, at the age of nineteen,<br />

he established Fred Walker and Company in<br />

Hong Kong, importing <strong>Australia</strong>n goods and<br />

exporting Asian goods to <strong>Australia</strong>. After gaining<br />

sound business experience and a good reputation,<br />

he returned to Melbourne in 1908 and started exporting<br />

<strong>Australia</strong>n goods, especially dairy<br />

products, to Asia. By 1910 he was exporting<br />

canned butter and cheese to Asia<br />

and the Middle East<br />

under the Red<br />

Feather label.<br />

Walker's<br />

entrepreneurial<br />

interest in the<br />

production of food<br />

saw him introduce a<br />

number of food innovations.<br />

One of them<br />

was the introduction of<br />

Vegemite, created in 1923<br />

by the chief chemist of the<br />

Fred Walker Company, Dr<br />

Cyril Callister, from yeast<br />

produced during brewing at Carlton & United<br />

Breweries.<br />

But before that, in 1916, Chicago businessman<br />

James L Kraft had taken out a patent describing the<br />

process of halting the natural maturing of cheese<br />

during processing. This new method would allow<br />

cheese to be stored for extended periods of time<br />

and was acknowledged as one of the greatest<br />

advances in cheese-making history.<br />

68


In 1925 Walker travelled to the USA to meet<br />

J. L. Kraft, and obtained the <strong>Australia</strong>n rights<br />

for Kraft processed cheese. In I 926 the Kraft<br />

Walker Cheese Company Pty Ltd, the parent<br />

company of Kraft Foods Limited, was formed<br />

in Melbourne and the first blue packets of<br />

processed Kraft Cheddar Cheese came off the<br />

production line. The cheese was a success<br />

because it did not need refrigeration at a time<br />

when fridges were rare. It was a good<br />

alternative to meat, which was expensive,<br />

especially during the Depression years.<br />

In the early days the Kraft Walker Cheese<br />

Company bought<br />

cheese from cheese<br />

factories and<br />

processed it. But<br />

these factories<br />

couldn't supply !<br />

enough high quality<br />

cheese. In 1934, the<br />

company leased a<br />

factory atAllansford,<br />

near Wan·nambool in<br />

Victoria. The factory was developed into one of the<br />

best-equipped and technologically advanced<br />

cheese factories in Austmlia.<br />

In 1948, foil lining was pe1fected as the best<br />

packaging medium for keeping Kraft processed<br />

cheddar fresh. The cheese was shipped to export<br />

markets in blue cans.<br />

The year 1950 marked a new era in cheese<br />

making, when Kraft became the first company in<br />

<strong>Australia</strong> to manufacture and market rindless<br />

cheese.<br />

The first cheese slice (unprocessed Swiss<br />

cheese) was sold in 1957 in 4 oz and 8 oz packets<br />

and the Deluxe Processed Cheese Slices were put<br />

into production two years later.<br />

Kraft has launched many more famous<br />

<strong>Australia</strong>n brands through the years including<br />

Vegemite in 1923, Kraft Peanut Butter in 1931, Kraft<br />

Mayonnaise*, Cheddar Portions* and Cracker<br />

Barrel Cheese* in 1954 and Philadelphia Cream<br />

Cheese in 1956. Cheestiks and Thousand Island<br />

Dressing* were launched in 1965 and Italian, French<br />

and Coleslaw Salad Dressings*as well as Kraft<br />

Sandwich Spread* in 1970,<br />

followed by Kraft Cheese<br />

Singles* in 1976.<br />

By the end of the 1980s, Kraft<br />

had become the second largest<br />

food company in the world.<br />

In response to the growing<br />

demand for lighter options Kraft<br />

became one of the first<br />

companies in <strong>Australia</strong> to offer<br />

low-fat products. Light and<br />

Extra Light Singles and Light<br />

Philadelphia were all launched in<br />

the early to mid 1990s, Free<br />

Singles*, which are 97 per cent<br />

fat free, followed in I 997. Kraft<br />

Light Peanut Butter was<br />

launched in 2001 and Kraft Light<br />

Parmesan in 2003.<br />

In 200 I , Kraft <strong>Australia</strong> took<br />

back ownership of Maxwell<br />

House and Tang and also<br />

acquired a range of Nabisco<br />

branded biscuits including Oreo, Ritz<br />

and In a Biskit. In 2003, Kraft<br />

combined two great brands and<br />

produced new Vegemite In a Biskit.<br />

THE PRODUCT<br />

The Kraft business spans five core<br />

sectors: snacks, beverages, cheese,<br />

grocery and convenience meals.<br />

As well as the vast range of Kraft<br />

products available in most <strong>Australia</strong>n<br />

supermarkets, there is also a strong Away<br />

from Home side to the business which brings all<br />

the popular brands of Kraft to out-of-home venues.<br />

RECENT DEVELOPMENTS<br />

The charitable program Kraft Cares was born a few<br />

years ago as a way offormalising Kraft's commitment<br />

to the community. Kraft Cares is a major<br />

sponsor ofFoodbank<strong>Australia</strong>. Foodbank operates<br />

in NSW, Victoria, Queensland, South <strong>Australia</strong> and<br />

Western <strong>Australia</strong> and provides food to various<br />

charities.<br />

The Heartwell Fitness Fund is<br />

a physical and social<br />

rehabilitation program for children<br />

who are suffering from a serious<br />

illness or accident. Kraft Car·es<br />

sponsorship currently allows 13<br />

children to take part in this very<br />

important program.<br />

Additionally, Kraft Cares<br />

supports the Bone Marrow<br />

Donors Institute's (BMDI)<br />

Community Awareness Week and<br />

Red Ale1t Day. These two events<br />

help to raise the awareness and<br />

importance of the Bone Marrow<br />

Donor Registry, a register that<br />

assists in finding a match donor<br />

for sufferers of serious illness<br />

such as leukemia.<br />

PROMOTION<br />

Kraft is a major television advertiser<br />

and also uses print and outdoor<br />

advertising quite regularly. It seeks<br />

to isolate a real point of difference<br />

or insight into each product to give<br />

consumers a valid reason to choose<br />

Kraft.<br />

Its massive portfolio of brands<br />

has given rise to many adve1tising<br />

classics such as the Happy Little<br />

Vegemites song and the line "coffee,<br />

tea or Bonox".<br />

Kraft Cheese Spread campaigns<br />

revolve around "Any excuse'll do" and<br />

Kraft Peanut Butter's campaign is built<br />

on a preference for the best with "Never<br />

oily. Never dry".<br />

The Philadelphia Heaven series of<br />

adve1tisements which first went to air in<br />

2000, depict the light and heavenly taste<br />

of Philadelphia. The advertisements<br />

feature the Philadelphia angel in a variety<br />

of heavenly settings.<br />

BRAND VALUES<br />

Kraft is a part of the everyday<br />

<strong>Australia</strong>n lifestyle because it<br />

satisfies consumers' everchanging<br />

needs and tastes. Each<br />

Kraft brand is built on a firm<br />

foundation of trust, quality and<br />

convenience.<br />

Wholesome goodness,<br />

coupled with great taste and product<br />

innovation, are the keys to the Kraft brand<br />

in <strong>Australia</strong>.<br />

*Trademark Kraft Foods Limited (ACN 004 125 07 1).<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

KRAFT<br />

0 Kraft Foods Inc is the second biggest<br />

food company in the world.<br />

0 The history of Kraft in <strong>Australia</strong> dates<br />

back to 1903 and its 19 year-old<br />

founder, Fred Walker.<br />

0 Fred Walker was repmtedly the first<br />

<strong>Australia</strong>n employer to introduce<br />

morning tea breaks for his workers in<br />

1928. The employees responded with<br />

increased production output.<br />

0 The first blue cheddar cheese boxes<br />

rolled off the production line in 1926.<br />

0 In 1971 a special language called<br />

Kooglese was created to adve1tise<br />

Koogle, a peanut butter and chocolate<br />

combination.<br />

0 In 1950 Kraft was the first <strong>Australia</strong>n<br />

company to manufacture and market<br />

1indless cheese.<br />

0 In 1917 James Kraft supplied the first<br />

batch of Kraft canned cheese to the US<br />

Armed Forces.<br />

0 During the war Kraft made up special<br />

gift boxes containing an assmtment of<br />

Kraft canned meat products, cheese<br />

and Vegemite for relatives to send to<br />

soldiers and sailors.<br />

69


L.J. HOOKER®<br />

THE MARKET<br />

<strong>Australia</strong>ns have an enduring love affair with real<br />

estate. Home ownership is affordable, largely<br />

spurred on by the entry into the marketplace of<br />

non-bank mortgage "lenders, lower interest rates,<br />

and Government incentives to first home buyers.<br />

Non-bank lenders have provided fierce<br />

competition for banks in the home loan business,<br />

offering competitive interest rates, greater flexibility<br />

and fewer charges and penalties to consumers.<br />

The low interest rates and competitive mortgage<br />

packages, coupled with taxation laws, significant<br />

changes to superannuation laws and first home<br />

owner grants have seen a significant increase in<br />

market activity.<br />

These market forces all contribute to <strong>Australia</strong>ns<br />

having one of the highest levels of home ownership<br />

in the world.<br />

ACHIEVEMENTS<br />

L.J. Hooker is one of <strong>Australia</strong>' s earliest and longest<br />

running franchised businesses in all market sectors.<br />

The original real estate business was established<br />

in 1928 in Maroubra, Sydney, NSW.<br />

Today L.J. Hooker is the largest franchised real<br />

estate network in Australasia and the fifth largest<br />

in the world. It boasts a network of over 650<br />

franchises throughout <strong>Australia</strong>, Papua New<br />

Guinea, Hong Kong, Indonesia and New Zealand.<br />

The L.J. Hooker franchising system has twice<br />

won the Franchisors' Association of <strong>Australia</strong> and<br />

New Zealand 'Franchising Excellence Award'<br />

including the ultimate accolade when L.J. Hooker<br />

was named 'Franchisor of the Year' across all<br />

sectors.<br />

For the last 15 years L.J. Hooker has<br />

commissioned the independent research company<br />

Newspoll to conduct a national brand awareness<br />

and attitude study to determine the company's<br />

strength in the marketplace. Every year the<br />

Newspoll study has revealed L.J. Hooker continues<br />

to be the real estate name best known and most<br />

chosen across <strong>Australia</strong>. The latest News poll study<br />

revealed the L.J. Hooker name has well over twice<br />

the recall of any other national real estate brand<br />

and twice as many people nominate using L.J.<br />

Hooker for buying or selling property ahead of any<br />

other national real estate agent.<br />

HISTORY<br />

Leslie Joseph Hooker opened the first office ofL.J.<br />

Hooker in Maroubra, Sydney on September 20,<br />

1928.<br />

Threatened with collapse of the business during<br />

the Great Depression, Leslie Hooker set about<br />

maximising his marketing dollar. He was always a<br />

great believer in signs and with money at a minimum<br />

during these years, he set about developing a<br />

promotional system. The famous red and yellow<br />

colours, which remain today, were originally<br />

developed by Leslie Hooker to maximise the impact<br />

of his signboards and save on advertising costs.<br />

The first city office of L.J. Hooker opened at 12<br />

O'Connell Street, Sydney in 1935.<br />

By 1936 the business had expanded into<br />

Kensington, Kingsford and Randwick. In 1938 L.J.<br />

Hooker purchased H.L. Cross and Co. and relocated<br />

to the basement of the E.S. and A. Bank Building<br />

on the corner of Martin Place and Pitt Street,<br />

Sydney.<br />

L.J. Hooker continued to prosper. In this period<br />

the team were "breaking into Sydney" and worked<br />

through the night on many occasions. So much so,<br />

that their office became known as the "light-house"<br />

in Pitt Street.<br />

During the Second World War, L.J. Hooker was<br />

run by a skeleton team as many employees joined<br />

the armed forces. By the late 1940s, approximately<br />

ten years after the opening of the company' s first<br />

auction rooms, L.J. Hooker had begun to challenge<br />

the established auctioneers of the city. L.J. Hooker<br />

Limited was successfully floated on the Stock<br />

Exchange on July l, 1947, paying dividends of up<br />

to 25 per cent. By 1956 the dividend had risen to 50<br />

per cent.<br />

64


In 1958 Leslie Hooker established L.J. Hooker<br />

Investment Corporation Limited as a vehicle for<br />

expanding the horizons of the Company.<br />

In the years that followed, L.J. Hooker Investment<br />

Corporation diversified into other areas including<br />

the hotel and leisure industry, land and building<br />

trusts, pastoral holdings and housing and land<br />

subdivision. L.J. Hooker Limited opened offices<br />

progressively across the country, completing its<br />

national network with the opening of the Perth<br />

office in 1960. In 1964 the Company's first<br />

franchised offices in Bankstown, Miranda and<br />

Newport were opened. In the same year, the name<br />

of the parent Company was changed to Hooker<br />

Corporation Limited.<br />

Leslie Hooker was knighted in 1973 for his<br />

services to business and commerce.<br />

In 1989, the real estate agency business of the<br />

Hooker Corporation was sold to the Queensland<br />

financial institution, SUNCORP (now known as<br />

Suncorp Metway Limited).<br />

THE PRODUCT<br />

L.J. Hooker operates a network of over 650 offices.<br />

L.J. Hooker franchises are locally owned and<br />

operated by licensed real estate agents who have<br />

extensive local market knowledge and have the<br />

added advantage of the resources, support and<br />

experience of the Franchisor.<br />

L.J. Hooker has a variety of products which span<br />

the real estate spectrum. Products for residential,<br />

commercial and rural buyers and sellers, landlords<br />

and tenants, development and project marketing,<br />

have been designed to reflect L.J. Hooker's<br />

'Customer tor life' philosophy.<br />

The L.J. Hooker After Sales Service program<br />

maintains contact with the buyers and sellers of<br />

property after the transaction is complete. At<br />

various stages throughout the ensuing years, the<br />

local L.J. Hooker office and L.J. Hooker as<br />

Franchisor, continue to 'stay in touch' with the<br />

client. As part of the program, clients are also<br />

provided with a national toll free telephone number<br />

to call if they require any further assistance or<br />

advice with real estate matters.<br />

L.J. Hooker's customer reward<br />

program is unique to the Company and<br />

provides a competitive edge in the<br />

marketplace in terms of obtaining<br />

listings.<br />

Home owners who list and sell their<br />

home exclusively through L.J. Hooker<br />

are eligible to eam Reward Points on<br />

either Telstra Visa Card or through the ----=<br />

Qantas Frequent Flyer Program.<br />

L.J. Hooker revolutionised the tenant/landlord<br />

relationship with the launch of the L.J. Hooker A 1<br />

Tenant Card. L.J. Hooker, through the A I Tenant<br />

Card, is the first national real estate network to<br />

officially recognise valuable tenants who have met<br />

specified L.J. Hooker criteria. In addition, if the<br />

tenant moves to another area or state they can show<br />

their A 1 Tenant Card to any L.J. Hooker agent, who<br />

will give them priority treatment, whether they want<br />

to rent, buy or sell.<br />

The L.J. Hooker Priority Card is another initiative<br />

for all tenants to pay rent and other utilities<br />

electronically, or by direct debit, saving time and<br />

money for the tenant.<br />

RECENT DEVELOPMENTS<br />

With marketplace competition becoming<br />

increasingly fierce, L.J. Hooker has extended its<br />

brand of real estate services to incorporate L.J.<br />

Hooker Financial Services, L.J. Hooker Business<br />

Services, L.J. Hooker Business Solutions and L.J.<br />

Hooker Commercial.<br />

In seizing the latest technology,<br />

L.J. Hooker was the first <strong>Australia</strong>n<br />

real estate network to have a home<br />

page on the Internet some years ago and<br />

continues to maintain the largest single<br />

brand real estate web site in <strong>Australia</strong> and<br />

New Zealand. Internet users can view<br />

properties for sale, as well as access real<br />

estate tips and information. Exciting<br />

additions to the Internet site are the<br />

direct email alert service, My<br />

PropertyWatchand the Lifestyle &<br />

Luxury site. Registered members of<br />

My PropertyWatch receive<br />

automatic email notification of every<br />

newly listed prope1ty which matches their<br />

stated criteria while the Lifestyle & Luxury<br />

site offers vendors the opportunity to<br />

showcase their property on their own multi-page<br />

website through the L.J. Hooker site.<br />

PROMOTION<br />

The popularity of the signature TV campaign,<br />

featuring the little girl saying "Thank you, Mr<br />

Hooker" has been instrumental in building and<br />

raising awareness of the L.J. Hooker brand.<br />

The 'nobody does it better' campaign has been<br />

successful in demonstrating L.J. Hooker' s<br />

commitment to total client care. The campaign has<br />

also been produced in another six languages, taking<br />

the L.J. Hooker message to <strong>Australia</strong>'s many<br />

culturally diverse communities through the SBS<br />

network.<br />

Overall, research shows awareness of L.J.<br />

Hooker advertising is twice the level of any other<br />

national real estate agent.<br />

In addition to advertising, L.J. Hooker has a<br />

strong public relations arm, largely<br />

responsible for generating editorial<br />

aimed at reinforcing L.J. Hooker's<br />

position as an industry leader and<br />

maintaining brand awareness. L.J.<br />

Hooker currently receives four times<br />

the editorial coverage of its<br />

competitors.<br />

L.J. Hooker is also actively involved<br />

in the community as National Sponsor<br />

of the Cystic Fibrosis Foundation. In addition the<br />

Company makes available branded marquees and<br />

the Mr Hooker Bear suit to schools and community/<br />

sporting groups free of charge.<br />

BRAND VALUES<br />

The name L.J. Hooker is synonymous with real<br />

estate in <strong>Australia</strong>.<br />

The size and reputation of the L.J. Hooker<br />

network, coupled with its international expansion<br />

strategy and presence in every state and territory<br />

throughout <strong>Australia</strong>, inspires feelings of trust and<br />

security in clients. The network size also portrays<br />

to clients high levels of expertise and<br />

professionalism and enforces L.J. Hooker's position<br />

as industry leader. In addition, the strength of the<br />

L.J. Hooker name allows sellers to feel confident<br />

more buyers will inspect their property.<br />

The pioneering spirit of Sir Leslie Hooker in<br />

building the Company out of nothing and the fact<br />

it remains wholly <strong>Australia</strong>n owned today, also<br />

endears the Company to many <strong>Australia</strong>ns.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

L.J. HOOKER<br />

0 The L.J. Hooker theme music is based<br />

on a song from the James Bond movie<br />

"The Spy Who Loved Me".<br />

0 Prior to opening the first L.J. Hooker<br />

office, Leslie Hooker had a variety of<br />

jobs including selling newspapers,<br />

working on a merchant trading ship<br />

and opening a se1ies of wine saloons.<br />

0 One in five <strong>Australia</strong>n families has<br />

purchased a property through L.J.<br />

Hooker.<br />

0 L.J. Hooker sells a home every five<br />

minutes of every working day.<br />

65


MACQYARIE<br />

UNIVERSITY --.. S Y 0 N E Y<br />

THE MARKET<br />

There are 39 universities in <strong>Australia</strong>, with a total of<br />

some 795,000 students. Of these, nearly 600,000 are<br />

undergraduates, just over 140,000 are doing<br />

postgraduate coursework and about 40,000 are<br />

engaged in higher degree research. Some 650,000<br />

are domestic <strong>Australia</strong>n students and 145,000 are<br />

from overseas.<br />

Macquarie is a medium to large research<br />

university with 29,000 students. Strongly<br />

positioned at the top end of the market, it earns 5<br />

stars in the Good Universities Guide for 'student<br />

demand' and does not pursue growth as an end<br />

in itself, focusing instead on attracting the highest<br />

quality students. With exceptional demand by<br />

top quality <strong>Australia</strong>n students for Macquarie' s<br />

undergraduate courses, it has been the only<br />

university to fill all undergraduate places in the<br />

first entry round, 1999- 2003.<br />

Global challenges highlight the risks in<br />

depending on patticular countries as a source of<br />

students. Macquarie thus balances 'mature<br />

markets' in Asia with 'emerging markets' such as<br />

Latin America, where it attracts <strong>Australia</strong>'s biggest<br />

market share from Mexico. Its source countries are<br />

deliberately diversified, the Jru·gest being China,<br />

Hong Kong, Indonesia, Singapore, the USA,<br />

Thailand, Korea, Japan, Malaysia, Norway, India<br />

and Sweden.<br />

ACHIEVEMENTS<br />

Macquarie is consistently a leader in domestic and<br />

overseas fee-paying postgraduate markets, as well<br />

as in its research-based<br />

ethos, its professional<br />

profile and industry links<br />

and its international<br />

markets. Half of its<br />

overseas students are<br />

postgraduates. With a<br />

postgraduate progression<br />

rate (successful students<br />

as a percentage of total<br />

students) of 94 per cent,<br />

Macquarie has ranked 1st,<br />

2nd or 3rd nationally<br />

every year since 1995 on<br />

this measure.<br />

It is also one of the<br />

world's most international<br />

universities, with 28 per<br />

cent of its student<br />

numbers from overseas. It<br />

is <strong>Australia</strong>' s biggest<br />

recipient of students from China. In 200 I, it won<br />

the NSW /Hong Kong Export Award (Services).<br />

The highly employable graduates are flexibly<br />

skilled, with the increasing use of work placements<br />

and industry internships. Macquru·ie is the only<br />

university to remain at the top of the ratings scale<br />

for 'graduate statting salru·ies' for eight consecutive<br />

years, regularly winning 5 stars in the Good<br />

Universities Guide.<br />

By lSI's citation impact, 1995-99, the major<br />

international measure for science and technology<br />

research, Macquarie ranks 1st in <strong>Australia</strong> in<br />

engineering and technology; I st in chemistry/<br />

biochemistry; and 4th overall.<br />

HISTORY<br />

Sydney' s third metropolitan university, described<br />

at the time as '<strong>Australia</strong>' s most radical and<br />

unconventional university', and now as '<strong>Australia</strong>'s<br />

Innovative University', was established in 1964.<br />

Macquarie is exceptionally fortunate in its<br />

location. Established on 135 hectares alongside<br />

Lane Cove National Pat·k, it is now a metropolitan<br />

campus in a beautiful spacious parkland setting. It<br />

has natural waterways alive with bird life, and its<br />

lake provides refills for heli-tankers fighting<br />

bushflres in the northern suburbs.<br />

As '<strong>Australia</strong>'s Innovative University in<br />

<strong>Australia</strong>'s Most Innovative City', Macquarie was<br />

patt of the reason for the development of <strong>Australia</strong>'s<br />

'Silicon Gully', extending from North Ryde toNo1th<br />

Sydney. It continues to be a strategic component.<br />

The University's Vice-Chancellor, Professor Di<br />

Yerbury, made higher education history as<br />

<strong>Australia</strong>'s first woman Vice-Chancellor when she<br />

was appointed in January 1987. Now <strong>Australia</strong>'s<br />

longest-serving VC, she is President of the<br />

<strong>Australia</strong>n Vice-Chancellors Comrnittee, 2004-5.<br />

THE PRODUCT<br />

Macquarie's products are teaching programs and<br />

graduates; research and its commercialisation; and<br />

community outreach.<br />

In Macquarie's community outreach, eight<br />

dominant themes, all linked to strengths in research,<br />

and research-based teaching, stand out. They are<br />

technology transfer and commercialisation;<br />

entrepreneurship and management, environment<br />

and sustainable development; community health;<br />

internationalisation; English language; career<br />

development and life-long learning; ruts, culture<br />

and museums.<br />

It was Macquarie (naturally enough) which<br />

developed the Macquarie Dictionary, now an icon<br />

with a host of spin-offs including on-line products.<br />

Linguistics continues to be cutting edge, and is<br />

sought after as a pattner in delivery of postgraduate<br />

programs worldwide.<br />

In science and technology alone, Macquru·ie has<br />

at least eight world-class groups: lasers; fluorescent<br />

systems and flow cytometry; proteomics;<br />

astrobiology; industrial enzymes; aspects of<br />

semiconductors, including quantum dots; genesis<br />

and metallogeny of continents; and cognitive<br />

neuropsychology.<br />

The University has won many national centres<br />

~,-----:~~~r~fl~~JU~~~ of excellence and world-<br />

~ best major national<br />

reseru·ch facilities, which<br />

attract first class research<br />

students.<br />

The <strong>Australia</strong>n Centre<br />

for Astrobiology is one of<br />

only two in the world to<br />

be accepted by NASA as<br />

atl Associate, and the<br />

Ancient History Documentru·y<br />

Centre, with its<br />

exceptional collection of<br />

papyri, has been explicitly<br />

used as the model for a<br />

similar centre at Oxford<br />

University.<br />

Macquarie's tenants in<br />

its R & D Park include<br />

Siemens, Becton Dickenson,<br />

Goodman Fielder,<br />

70


CISCO Systems' Radiata, and Dow<br />

Corning, with a new building for NOtte!<br />

currently under construction.<br />

Macquarie Graduate School of<br />

Management (MGSM) is ranked first<br />

in Australasia and Asia by the<br />

Economist Intelligence Unit' s 'Which<br />

MBA?' survey, and best in the world<br />

for quality of students. The Applied<br />

Finance masters program is the biggest<br />

in the world by a factor of four.<br />

RECENT DEVELOPMENTS<br />

The National Quality Review 2002-3<br />

observed that Macquarie's reseat-ch<br />

outcomes support its claim 'to be<br />

nationally and internationally<br />

recognised as a leader in selected areas<br />

of research'. The Good Universities<br />

Guide gives it 5 stars for ' resemch<br />

grants' and 'research intensity' . It<br />

ranks 7th for <strong>Australia</strong>n Research<br />

Council ' Discovery Grants' (both<br />

number and total value).<br />

The same review also noted 'strong<br />

suppmt from staff and students about<br />

the flexibility of its programs', and<br />

commended Macquarie for 'ongoing commitment<br />

to ... flexible leru·ning, and for ... using innovative<br />

technologies to enhance student learning'.<br />

Macquarie was al so highly commended in the<br />

national survey, ' Preparing graduates for an e­<br />

world' .<br />

A key factor in Macquarie' s comparative<br />

advantage now is the development of excellent<br />

transport links by rail (with a railway station on<br />

campus in 2007), bus and motorway to Sydney' s<br />

CBD and major population growth centres. These<br />

will provide Macquarie with the best public<br />

transpmt access of any university in <strong>Australia</strong>.<br />

PROMOTION<br />

With reviews by LD & A and MacGregor Marketing,<br />

Macquru·ie introduced its new slogan '<strong>Australia</strong> ' s<br />

Innovative University' in 1996, backed by a new<br />

logo and style manual.<br />

An Open Day/Advising Day campaign by<br />

LD&A, based on parts of the face ('It raises some<br />

eyebrows' ; 'It' s worth hearing about'; etc), won<br />

So don't.<br />

With so many areas of study to sink your tt."eth into ifs no wondf'r you·re going<br />

round in circles trying to choose the right oneJ Macquarie's flexible degree programs<br />

give you the freedom to try a rangf" of subjects in your first yet~r, so you won't end<br />

up locked into a program you might not like. Even if you know what you want<br />

now, Macquarit" gives you the rreedom to change your mind later on. So. •f you·re<br />

worried you'll choose the wrong degree. don't be. Just stan at Macquarie<br />

Come to Macquarie University Open Day<br />

Saturday 13 Seprernber !OtnOr/')"t~..:M< ~-~<br />

ll"'fom'uuon011hr f'*""'*'G¥N~ QI ~~eJ.It.Cf'<br />

.,.,_<br />

- ~nu.w · ~;n~~<br />

-~ • Sde!Y.lt',1n(l~<br />

the 1999 (American) Goldfish Award for design.<br />

Macquarie also won the 1999 National Print Award<br />

for an Acrobat Corporate Print design.<br />

The 200 I Advising Day catnpaign, which ran<br />

under the tagline, 'Life' s unfair until you get a<br />

Macquarie degree' , scooped the advertising<br />

industry' s three m~or newspaper advettising prizes<br />

at the Cannes, Caxton and AWARD Awru·ds in 200 I.<br />

The campaign, created by George Patterson<br />

Bates Sydney and executed by Acrobat Corporate<br />

Print, won <strong>Australia</strong>' s first Gold Lion award at the<br />

200 I International Advertising Festival in Cannes<br />

in the print and poster section of the Commercial<br />

Public Services category. It also won seven awards<br />

at the Caxton Awmds for newspaper advertising -<br />

one for best newspaper ad campaign, three in the<br />

corporate, government and public services<br />

category, and three for photography. It also won<br />

the bronze awmd for 'print- newspapers, colour' at<br />

the AWARD Awards - the only award given in the<br />

' newspaper, colour' category as no gold and silver<br />

awards were presented.<br />

Macquarie's newspaper inse1ts for Open Days<br />

and Advising Days have been much-copied. The<br />

September 200 I insert for Open Day, for example,<br />

continued the tag-line, 'Life' s unfair ... until you get<br />

a Macquarie degree' and highlighted the<br />

University ' s exceptional flexibility, using<br />

photographs and brief details of real-life students,<br />

eg, ' Business or Psychology?' (with the 'or'<br />

crossed out and replaced with 'and' ): 'I do both at<br />

Macquarie'.<br />

This 'flexibility' campaign resulted in<br />

unprecedented demand for undergraduate degrees<br />

in Arts, General Science and Education, with<br />

Macquarie attracting the highest entry cut-offs in<br />

NSW and the ACT for all three areas ever since.<br />

The Management School, MGSM, won an<br />

<strong>Australia</strong>n Marketing Institute' s Award for<br />

Excellence in 2002, and a commendation for<br />

'consumer insight' in 2003.<br />

BRAND VALUES<br />

Macquarie's founding vision highlighted<br />

innovation; research; postgraduate studies<br />

including research degrees; inter-disciplinarity;<br />

multi-mode access, including by distance education<br />

and new technologies; flexibility; and industry<br />

links. These values are strongly associated with<br />

Macquarie today. Macquru·ie positions itself also<br />

as 'high tech' , entrepreneurial and international.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

MACQUARIE<br />

0 <strong>Australia</strong>' s Innovative University was<br />

first in the world to introduce a full<br />

science degree by distance education,<br />

and an Acturu·ial Studies degree.<br />

0 Macquarie pioneered the electronic<br />

tutorial. It is the first and only<br />

<strong>Australia</strong>tl university with a Natural<br />

Language Technology degree.<br />

0 The 24 hour, 7 day 'Follow the Sun' IT<br />

Help Desk is a world first. Set up jointly<br />

with London School of Economics, it<br />

has won a 'Good Practice Award ' and a<br />

national commendation. Each<br />

university services the desk in its own<br />

daytime.<br />

0 In this entrepreneurial university<br />

(whose Vice-Chancellor was NSW<br />

Telstra Businesswoman of the Year,<br />

2002), non-Government income<br />

accounts for over 70 per cent of<br />

revenue.<br />

0 Macquat·ie established <strong>Australia</strong>' s first<br />

(and still the only) privately funded oncampus<br />

R&D Pru·k, in partnership with<br />

Baulderstone Hornibrook.<br />

0 Radiata, a spin-off company<br />

commercialising Macqmuie/ CSIRO<br />

microelectronics research, was sold to<br />

CISCO Systems Ltd in 2000 for $600m,<br />

in <strong>Australia</strong>' s biggest-ever private IT<br />

deal.<br />

0 It was a Macquarie resemcher who<br />

coined the word 'proteomics', now one<br />

of the world' s key technologies of the<br />

21st century with its focus on<br />

breakthroughs in gene research.<br />

71


THE MARKET<br />

Dining out has always been a popular social<br />

activity. These days, it's a part of everyday life<br />

which many of us take for granted. However, it's<br />

easy to forget that a meal in a restaurant was once<br />

an occasional indulgence enjoyed by a privileged<br />

few. The popular food service revolution of the last<br />

50 years changed all that.<br />

Today, dining out is enjoyed every day all over<br />

the world by people of all ages and backgrounds.<br />

McDonald's is proud to be part of this growing<br />

trend, serving more than a rillllion customers every<br />

day across this nation alone.<br />

ACHIEVEMENTS<br />

In 2002 McDonald's <strong>Australia</strong> recorded the highest<br />

sales and profitability in its 32 year history.<br />

McDonald's <strong>Australia</strong> sales were at a record high<br />

of $1.8 billion, and <strong>Australia</strong> was also the best<br />

performing country in the Asia Pacific, Middle<br />

Eastern and African regions. McDonald ' s<br />

continues to lead the quick service restaurant<br />

market in <strong>Australia</strong>.<br />

McDonald's <strong>Australia</strong> has 730 stores with more<br />

than 56,000 employees, serving one million<br />

customers daily and is one of the largest purchasers<br />

of <strong>Australia</strong>n products.<br />

McDonald's has become a citizen of the world<br />

and is committed to being a good corporate citizen.<br />

Ronald McDonald House Charities (RMHC) has<br />

awarded more than $250 million in grants to<br />

children's programs worldwide since 1984.<br />

The cornerstone of RMHC is the Ronald<br />

McDonald House program, which provides<br />

"homes-away-from-home" for families of seriously<br />

ill children being treated at nearby hospitals.<br />

The first Ronald McDonald House in <strong>Australia</strong><br />

opened in 198 1 at Camperdown in Sydney, near the<br />

Royal Alexandra Hospital for Children. 20 years<br />

later there are now 10 Ronald McDonald Houses in<br />

this country, with another House due to be built at<br />

Townsville in 2004.<br />

HISTORY<br />

The McDonald's story began 47 years ago in San<br />

Bernadino, California. Ray Kroc was a salesman<br />

...... ~--.-~i;;;t drive-in restaurant run by two<br />

~~~~fiJi~i;t::a-::l:i.!M- supplying milkshake multi-rillxers to a<br />

1<br />

brothers, Dick and Mac<br />

McDonald. Kroc,<br />

calculating from his own<br />

figures that the<br />

restaurant must be<br />

selling over 2,000<br />

milkshakes a month,<br />

was intrigued to<br />

know more about<br />

the secret behind the<br />

success of the<br />

brothers' thriving<br />

business.<br />

He visited the<br />

restaurant, which<br />

promised its<br />

c u stomers<br />

"Speedee Service"<br />

and watched in awe as restaurant stafffilled orders<br />

for fifteen-cent hamburgers with fries and shakes<br />

every fifteen seconds.<br />

Kroc saw the massive potential and decided to<br />

get involved. The McDonald brothers accepted<br />

Kroc's offer to become their fu·st franchisee. On<br />

April 15, 1955, he opened his first McDonald's<br />

restaurant in Des Plaines, a suburb just n01th of<br />

Chicago.<br />

McDonald' s served more than 100 million<br />

hamburgers within its first three years of trading<br />

and the l OOth McDonald ' s restaurant opened in<br />

1959.<br />

In 1961 Kroc paid $2.7 mj]lion to buy out the<br />

McDonald brothers' interest and in 1963 the<br />

billionth McDonald's hamburger was served li ve<br />

on prime-time TV.<br />

More than thirty years ago in December in 1971<br />

McDonald's <strong>Australia</strong> opened its first restaurant<br />

at Yagoona and served 3,000 customers a month.<br />

Today there are more than 730 restaurants<br />

throughout <strong>Australia</strong>, serving more than one million<br />

customers a day. McDonald's employs more than<br />

55,000 people in <strong>Australia</strong> and injects $120 million<br />

in capital expenditure .<br />

The ope rung of a McDonald's restaurant creates<br />

up to I 00 new jobs in the local area. It also creates<br />

many opp01tunities for the local construction and<br />

building industry, stimul ating the growth of<br />

numerous small businesses through subcontracting<br />

relationships with McDonald ' s.<br />

THE PRODUCT<br />

From its early roots as a small, family-run hamburger<br />

restaurant, McDonald's has evolved into a multibillion<br />

dollar quick service restaurant industry.<br />

While hamburgers and fries remain the mainstay of<br />

McDonald's business, an instinctive ab ility to<br />

anticipate and fulfil real consumer needs has been<br />

central to McDonald ' s success.<br />

A prime example of this approach is the Filet-0-<br />

Fish sandwich, which was conceived by Lou Groen,<br />

a Cincinnati-based franchi see with a restaurant<br />

72


located in a predominantly Catholic area.<br />

Groen noticed that hi s business was slow on<br />

Fridays, which was then a day on which many<br />

Catholics abstained from meat. He developed a fishbased<br />

product to meet the needs of the local<br />

community. The Filet-0-Fish sandwich was<br />

launched in 1963 and went on to become a popular<br />

menu item in many of McDonald' s international<br />

markets.<br />

Another franchi see, Jim Deli gatti from<br />

Pittsburgh, was responsible in 1968 for the creation<br />

of McDonald' s most successful menu item ever,<br />

the Big Mac sandw ich. Nine years later, the same<br />

franchisee was the dri ving force behind the<br />

development of McDonald's breakfast menu - a<br />

move that would change the breakfast habits of<br />

millions of people.<br />

Innovation has played an important part in<br />

McDonald's growth. The company has invested<br />

heavily in technology to continually improve the<br />

consumer experience at McDonald' s. One of the<br />

biggest breakthroughs came in 1975 with the<br />

opening of the first drive-thru restaurant in Sierra<br />

Vista, Arizona. Once again, the idea sprang from<br />

the need to solve a local sales problem when<br />

servicemen from a nearby Army base were<br />

forbidden to get out of their cars in military fatigues.<br />

The drive-thru concept was an immediate success.<br />

Today, drive-tlm1 accounts for more than half of<br />

McDonald's business in <strong>Australia</strong>.<br />

McCafe was the first of its kind in the world<br />

when it was introduced into the Swanston Street<br />

McDonald's in Victoria in 1993. TheMcCateconcept<br />

was des igned and created by McDonald ' s<br />

<strong>Australia</strong>n representatives. Today there are about<br />

100 McCafes across <strong>Australia</strong> and they are also<br />

operating in countries like Japan, France, Austria<br />

New Zealand and the USA.<br />

McDonald's McOz burger originated from a<br />

group of licensees from northern NSW. Today the<br />

popular McOz burger is a permanent men u item.<br />

McDonald's serves its customers top-quality<br />

food. The best raw ingredients are purchased from<br />

long-time suppliers. Food is prepared to a<br />

consistently high standard in the restaurant.<br />

McDonald's menu is continually reviewed and<br />

enhanced to ensure that it meets - and wherever<br />

possible exceeds - customer expectations.<br />

RECENT DEVELOPMENTS<br />

McDonald's was the first quick-service restaurant<br />

to make publicly available a complete ingredient<br />

listing and detailed nutritional analysis of all its<br />

products. In 2003, McDonald's <strong>Australia</strong> launched<br />

a new menu range called Salads Plus, which<br />

boasts salads, yoghlllt and ti-uit. The eight<br />

Salads Plus launch items all feature 10<br />

grams of fat or less a serve and their sugar<br />

and salt levels have been carefull y<br />

considered during<br />

product development.<br />

As part of this new<br />

range, McDonald 's<br />

delivered a Q ui ck-Service<br />

Restaurant industry first by corrunitting<br />

to nutritional labelling on packaging forfom<br />

of the new menu items.<br />

McDonald's is continuing to review<br />

packaging of the regular menu items with<br />

a long term goal of including nutritional<br />

information on the packaging, tTaymats<br />

or takeaway bags for these items. This<br />

information is currently available<br />

from the nutri tional<br />

brochure in restaurants or<br />

on the web.<br />

T hi s new menu takes<br />

McDonald' s into the future. It is the most<br />

imp01tant product launch in its business hi story to<br />

date. Salads Plus isn't about changing who<br />

McDonald's are but about extending the range.<br />

PROMOTION<br />

From the earliest days, McDonald' s recogrused the<br />

key role of marketing in the brand-building process.<br />

As Ray Kroc put it: "There' s something just as<br />

basic to our success as the hamburger. That<br />

something is marketing, McDonald 's style. It's<br />

bigger than any person or product bearing the<br />

McDonald' s name."<br />

Adve1tising is certainly not the only cause of<br />

McDonald's success. It is, however, inseparable<br />

from it. To this day, a fixed proportion of restaurant<br />

sales is reinvested into advertising and sales<br />

promotion in every market in which McDonald's<br />

operates.<br />

McDonald's displays a rare abi lity to act like a<br />

retailer while thinking like a brand; delivering sales<br />

for the immediate present while building and<br />

protecting its long-term brand reputation. Television<br />

adve1tising has been instrumental in transforming<br />

McDonald's brand image from that of a multinational<br />

corporation to prut of the fabric of society.<br />

Through high-profile brand advertising,<br />

McDonald's has developed a powe1ful emotional<br />

relationship with its customers based on trust and<br />

a fundamental warmth and humanity unmatched<br />

by its competitors.<br />

McDona ld 's is<br />

also involved in<br />

sports sponsorship.<br />

The company uses its<br />

association with<br />

prestigious global sporting<br />

events such as the World Cup and the<br />

Olympic Games to reinforce its<br />

international brru1d stature, whi le tailormade<br />

sponsorship programs ru·e used<br />

to address local market needs.<br />

In addition to national adve1tising<br />

and promotional campaigns,<br />

McDonald's is strongly committed to<br />

Ray Kroc' s passionate belief that<br />

McDonald's should contribute to the<br />

communities that it serves. Local activity<br />

takes many different forms, ranging from<br />

social mornings for senior citizens to<br />

fundraising work with local schools, youth<br />

groups, and hospitals.<br />

BRAND VALUES<br />

Founder Ray Kroc developed his brand vision for<br />

McDonald ' s around a simple but effective<br />

consumer-driven premise of quality, service,<br />

cleanliness, and value. Kroc' s winning formula was<br />

quickly shortened to QSC&V- an acronym that<br />

would become and remain an enduring cornerstone<br />

of the brand.<br />

If QSC& V is the cornerstone of the McDonald' s<br />

brand, then trust is its bedrock. To its customers,<br />

McDonald's is a brand that can be trusted; placing<br />

the customer at the centre of its world; knowi ng<br />

the right thing to do.<br />

The key to McDonald's success has been its<br />

capacity to touch universal consumer needs with<br />

such consistency that the essence of the brand<br />

has somehow always been relevant to the local<br />

culture, no matter how different that culture might<br />

be from McDonald's origins. With one ofthe most<br />

powerful brands in the world, McDonald's looks<br />

set to enjoy healthy growth far into the future.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

McDONALD'S<br />

0 On average, McDonald's opens a new<br />

restamant every four hours.<br />

0 The sun never sets on the Golden<br />

Arches. The most northerly<br />

McDonald' s is right on the Arctic<br />

Circle in Rovaniemi, Finland, while the<br />

southernmost is in Invercru·gill, New<br />

Zealand.<br />

0 Every day, McDonald's serves 45<br />

million customers, but on any one day,<br />

even as the industry leader,<br />

McDonald' s sti ll serves less than one<br />

per cent of the world's population.<br />

0 McDonald's has sold well over 100<br />

billion hamburgers.<br />

0 Neru·ly two and a half million people<br />

work for McDonald's.<br />

0 More than 5000 people lined up for a<br />

burger on a freezing midnight when<br />

McDonald' s opened its first restaurant<br />

in Minsk, Belru·us - its I OOth country.<br />

73


THE MARKET<br />

In an increasingly sophisticated youth market,<br />

MILO, <strong>Australia</strong>'s number one Energy Food Drink,<br />

has become an instantly recognisable icon for<br />

generations of <strong>Australia</strong>ns.<br />

With a strong sp01ting tradition and focus on<br />

youth activity, MILO continues to gain high<br />

exposure across a broad range of age groups, with<br />

a predominance in the 8-14 year old youth market.<br />

ACHIEVEMENTS<br />

Since its introduction 70 years ago, MILO has<br />

become a part of everyday life in <strong>Australia</strong>. With<br />

slogans that are as recognisable as the now famous<br />

'green can ', MILO is now a part of <strong>Australia</strong>n<br />

culture. The brand slogans 'It's marvellous what a<br />

difference MILO makes', 'You've gotta be made of<br />

MILO' and now 'Go and Go and Go with MILO' are<br />

as familiar to most <strong>Australia</strong>ns as the expression<br />

'G'Day Mate'.<br />

MILO is now sold in over 30 countries world<br />

wide. In 2003 <strong>Australia</strong>ns drank over 400 nlillion<br />

glasses of MILO.<br />

HISTORY<br />

Since its launch at the Sydney Royal Easter Show<br />

in 1934, MILO Energy Food Drink has established<br />

itself to become a staple at the table of generations<br />

of <strong>Australia</strong>ns.<br />

MILO Energy Food Drink was created by a<br />

Nestle technology team, headed by the late Thomas<br />

Mayne of Sydney, New South Wales. It took the<br />

team almost four years of development and fine-<br />

tuning before coming up<br />

with the unique taste of<br />

MILO.<br />

Since its creation, MILO<br />

has been manufactured at<br />

the Nestle plant at<br />

Snlithtown near Kempsey<br />

in New South Wales.<br />

The name MILO is<br />

derived from the name of<br />

one of the great athletes of<br />

ancient Roman mythology.<br />

Milon, a champion athlete<br />

from Croton, an Archean<br />

Greek colony in southern<br />

Italy, was famous for his<br />

feats of strength at the<br />

Pythian Games and the<br />

Olympics. A legend in his<br />

time, Milon' s name was<br />

adopted (and slightly modified)<br />

because the MILO<br />

brand was to be positioned<br />

as a beverage that provided<br />

energy and helped build a<br />

strong and healthy body.<br />

The MILO brand now<br />

enjoys the enviable market position of being a true,<br />

unquestionable <strong>Australia</strong>n icon. This is obviously<br />

a position that bodes well for future growth.<br />

MILO Energy Food Drink is a product that many<br />

<strong>Australia</strong>ns have grown up with, a product<br />

everyone can feel good about. MILO conjures up<br />

happy memories of childhood and reminds even<br />

SINCE1934<br />

CELEBRAnNG 70 YEAR<br />

750g<br />

grown-ups of the good times in the kitchen with<br />

the fanlily. Fanliliarity with the product, combined<br />

with the sporting heritage associated with MILO<br />

and continuing quality marketing initiatives, have<br />

ensured continued success for the product and<br />

consistent growth in the marketplace.<br />

74


THE PRODUCT<br />

For most <strong>Australia</strong>ns, and now global<br />

consumers, MILO, the Nutritious Energy Food<br />

Drink needs little introduction. Essentially a malt<br />

extract beverage, it has always been aligned with<br />

nutrition, energy and well-being. Considered by<br />

many to be an important component of a balanced<br />

diet, MILO contains six essential vitamins and<br />

minerals.<br />

The taste of MILO is the result of a<br />

combination of malt extract (made from malted<br />

barley and other cereals), full cream nlilk powder,<br />

cocoa, sugar, mineral salts and vitamins.<br />

A glass of MILO and milk as part of a balanced<br />

diet contains essential nutritional components.<br />

A glass of MILO and milk has the additional<br />

advantage of having a low Glycaemic Index.<br />

RECENT DEVELOPMENTS<br />

2004 will mark 70 years since MILO was first<br />

launched by Nestle at the Royal Easter Show in<br />

Sydney in 1934. A program of activities has been<br />

developed to celebrate this special <strong>Australia</strong>n<br />

birthday, including TV advertising and in-store<br />

events.<br />

The MILO famil y has grown over the 70 years<br />

with MILO products expanding into other<br />

categories including MILO breakfast cereal, a MILO<br />

confectionery chocolate bar, chilled dairy snack,<br />

ice cream and a ready-to-drink product.<br />

MILO is associated with a wide range of sp01ting<br />

endeavours, with particular emphasis on the<br />

promotion of grassroots youth sports activities.<br />

This has made it an instantly recog1lisable name in<br />

sp01ts promotion and produced high exposure for<br />

the MILO brand.<br />

MILO is involved in many programs aimed at<br />

encouraging young people to adopt a more active<br />

lifestyle. These include MILO Cricket, with<br />

sponsorship of Cricket <strong>Australia</strong>'s national junior<br />

development programs; MILO Temlis, working with<br />

Tennis <strong>Australia</strong> to promote the game to the youth<br />

of <strong>Australia</strong>; and MILO Junior Snow programs. This<br />

includes sponsorship of junior snow programs in<br />

both the New South Wales and Victorian ski resorts.<br />

These include calcium, an essential element for<br />

growing healthy teeth and bones; Vitamin A,<br />

which makes for healthy skin and eyes; Vitamin<br />

B I , for energy and the functioning of the nervous<br />

system; Vitamin 82, also for healthy skin and<br />

e nergy ; and Vitamin C, to improve iron<br />

ab sorption. As well as these vital, he althpromoting<br />

constituents, MILO also contains<br />

iron, which is important in oxygen transport to<br />

help prevent fatigue; essential minerals, which<br />

are vital to ensure that children grow up strong<br />

and healthy; and malt extract with its energy<br />

producing carbohydrates.<br />

The association with sport provides admirable<br />

role models for <strong>Australia</strong>'s youth. Nestle believes<br />

that, for a healthy lifestyle, every child should be<br />

encouraged to ' have a go' through active<br />

participation in their chosen sport. This message<br />

can often be conveyed best through sporting<br />

heroes such as those with whom the MILO brand<br />

is aligned.<br />

PROMOTION<br />

The MILO brand enjoys high visibility via its strong<br />

allegiance to sport. This suppo1t has been a natural<br />

adjunct to the core health and energy message.<br />

BRAND VALUES<br />

Since its introduction, MILO with milk has been<br />

established as a nutritious energy food drink that<br />

encourages a healthy lifestyle as it provides<br />

energy. As a result, the ad vertising campaigns<br />

that have been created to promote the MILO<br />

brand have always focused on health, energy<br />

and related themes.<br />

The MILO brand has always been associated<br />

with the fanlily. This combination of health, sport<br />

and family unity has been one of the factors that<br />

has made the brand so popular with both adults<br />

and children.<br />

Photos courtesy of Cricket <strong>Australia</strong>, Te nnis Au stralia,<br />

Kosciu sko Thredbo and Mt. Selwyn Snowfields.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

MILO<br />

0<br />

0<br />

0<br />

0<br />

MILO energy food drink was created<br />

by a Nestle technology team, headed<br />

by the late Thomas Mayne of Sydney,<br />

New South Wales.<br />

The MILO name was based on that of<br />

a famous Ancient Greek athlete.<br />

MILO is not only associated with toplevel<br />

sp01ts people but also with<br />

youngsters. The brand is associated<br />

with MILO Cricket, MILO Tennis and<br />

the MILO Junior Snow programs.<br />

In <strong>Australia</strong> alone, children and adults<br />

drank over 400 million glasses of MILO<br />

last year.<br />

75


THE MARKET<br />

The <strong>Australia</strong>n attitude toward hardware has<br />

undergone a remarkable change since the midnineties.<br />

The word hardware no longer simply<br />

evokes images of DIY fix-itjobs and 'must get to'<br />

projects around the home. Consumer perception<br />

has now expanded to one which sees the hardware<br />

store as holding the key to living standard and<br />

Lifestyle improvement.<br />

The hardware market in <strong>Australia</strong> is estimated at<br />

$20 billion a year and is experiencing rapid growth,<br />

due in part to the explosion of interest in do-ityourself<br />

home projects by both male and female<br />

consumers.<br />

Recognising a change in the needs of the<br />

hardware consumer, Mitre I 0 has increased its retail<br />

offer tlu·ough the Generation 21 format of its stores<br />

which offer more choice, price advantage and advice<br />

than ever before.<br />

HISTORY<br />

The move to set up a cooperative group of hardware<br />

stores originated at a meeting held in Victoria in<br />

June 1959 by five men who<br />

would become Mitre lO' s<br />

founding fathers: Tom Molomby,<br />

Tom Danaher, Reg Buchanan,<br />

Jack Womersley and Ian Nisbet.<br />

The move was designed to<br />

maximise funds and energy with<br />

10/10<br />

ADVICE<br />

regards to advertising and promotions and to<br />

demonstrate that independent operators offered<br />

service, advice and competitive prices. The group<br />

quickly grew in membership to the point where it<br />

required a full-time management team.<br />

The new company expanded its operations,<br />

with 15 New South Wales members joining the<br />

Group by February 1961. Queensland soon<br />

followed with seven retailers joining in January 1962<br />

under the chairmanship of Arthur Scurr, followed<br />

by a fmther sixteen members from Newcastle in<br />

October the same year. With the company<br />

successfully operational in the three Eastern states<br />

by the end of 1962 and South <strong>Australia</strong> and Western<br />

<strong>Australia</strong> soon running their own state-based<br />

cooperatives, attention turned to crossing the<br />

Tasman. After discussions in Auckland, Mitre I 0<br />

New Zealand was established on June 20, 1974.<br />

Today, the Mtre 10 Hardware Group has more<br />

than 900 stores throughout <strong>Australia</strong> and New<br />

Zealand.<br />

In 2000, the business announced a complete<br />

overhaul of its store format and branding, designed<br />

to keep the business at the forefront of <strong>Australia</strong>'s<br />

hardware industry and attract a new generation of<br />

customers. In the same year, it also commenced<br />

plans for the Mitre I 0 Mega concept.<br />

Under the title Generation 21, Mitre I 0 began<br />

rebranding all of its Mitre I 0 and True Value<br />

Hardware stores as one offour new Mitre I 0 store<br />

brands to spearhead the co-operative's growth in<br />

the 21st Century. Incidentally, True Value<br />

Hardware stores are more able to move to a Mitre<br />

l 0 brand under this structure. Each store type<br />

offers a distinct market proposition.<br />

Mitre I 0 Handy: conven iently located<br />

hardware stores providing a<br />

quick and easy shopping trip for<br />

products required for the repair,<br />

maintenance and everyday<br />

functioning of urban homes;<br />

Mitre I 0 Solutions: a new<br />

style hardware store offering<br />

products, ideas and advice to assist consumers in<br />

expressing their individual styles;<br />

10/10<br />

CHOICE<br />

ACHIEVEMENTS<br />

Mitre lO 's success in <strong>Australia</strong> and New Zealand<br />

has been enviable, with its members fostering and<br />

enjoying a close-knit sense of unity and membership<br />

-the 'spirit of Mitre 1 0' . However, there is more to<br />

Mitre I 0 than simply a successful legacy. The<br />

company has also made a significant contribution<br />

to <strong>Australia</strong>'s state-based economies and<br />

conummities by becomjng one of the country's<br />

largest small business employers.<br />

The Mitre IOGroup is one of <strong>Australia</strong>'s largest<br />

enterprises supporting privately owned retailers<br />

and is regularly included in various 'Top l 00<br />

Company' listings compiled by state and national<br />

business media.<br />

76


Mitre I 0 Home and Trade: comprehensive<br />

products and services for the building trade and<br />

serious DIYers who need successful building,<br />

renovation and project outcomes; and<br />

Mtre 10 Mega: the ultimate home improvement<br />

store, offering a one-stop-shop for all tradespeople,<br />

DIYers and consumers, for big jobs at great prices.<br />

Existing Mtre I 0 and nomjnated True Value<br />

Hardware stores have been re-branded according<br />

to the Generation 21 strategy as Handy, Solutions,<br />

or Home and Trade, with Mega stores mainly built<br />

on a select number of greenfield sites across<br />

<strong>Australia</strong>.<br />

THE PRODUCT<br />

The name Mitre 10 is synonymous with hardware,<br />

building products, expert advice, knowledge and<br />

service and has become more to consumers than<br />

simply an outlet for 'nuts and bolts'. Mitre l 0 has<br />

maintained its leadership of the hardware retail<br />

market for more than 40 years, with a strong<br />

emotional attachment from consumers.<br />

In addition to maintaining relationships with<br />

<strong>Australia</strong> and the world's most powetful hardware<br />

product brands, Mitre I 0 is also enjoying strong<br />

growth with its range of own-brand DIY and home<br />

improvement products including Warrior,<br />

Dimension and Accent brands. Mitre 10 donates a<br />

percentage of the sale price of its Mitre 10 brand to<br />

Landcare <strong>Australia</strong> for local environmental<br />

improvement projects.<br />

marketing campaigns, printed flyers and catalogues,<br />

sponsorship, communications and public relations<br />

strategies, and television and radio campaigns. With<br />

the mammoth surge in Internet usage, any<br />

computer user is now free to browse Mtre lO's<br />

website to receive tips and advice on DIY, find their<br />

closest store or download handy hints and DIY<br />

project guides called MitrePlans.<br />

Mtre 10' s first national campaign was launched<br />

in 1990, with the theme 'Ask Mitre 10, they've got<br />

the lot'. Today's national slogan, 'You can't Beat<br />

10/ I 0-Mitre 10', showcases Mitre 10' s commitment<br />

RECENT DEVELOPMENTS<br />

Competition in the marketplace is proving more and<br />

more fierce, with the introduction to the industry of<br />

barn-style hardware super stores. Industry research<br />

indicates that home owners, rather than 'selling<br />

up', are choosing to remain in their homes longer,<br />

opting instead for improving their lifestyle by 'doit-yourself<br />

renovation and tiling on increasingly<br />

impressive home projects. Serious renovators want<br />

to be able to purchase everything required to finish<br />

their job under the one<br />

roof. However, these<br />

consumers are unwilling<br />

to sacrifice their need for<br />

personalised service and<br />

to '1 Oil 0 choice, advice and price' and complete<br />

product and service offering. From fixing a tap to<br />

building a house, Mitre 10 offers the three<br />

fundamental elements required for customer<br />

satisfaction - product choice, advice and service,<br />

and the right price to achjeve a I 0/ l 0 result.<br />

Demonstrating the strength of the Mitre 10<br />

brand, and the success of its marketing program,<br />

independent research shows Mitre 10' s brand<br />

awareness is at an all-time high of more than 80<br />

per cent.<br />

While both print and<br />

television media have<br />

been used extensively to<br />

promote the group since<br />

expert knowledge and<br />

its inception, ties<br />

advice for nothing more than a large product<br />

between Mitre 10 stores and local<br />

range.<br />

As most Mitre 10 stores are still owned<br />

communities have always proved invaluable.<br />

Many Mitre 10 stores are active participants<br />

and operated by 'hardware families' -<br />

in their local communities through<br />

business people who have worked l. h t h<br />

sponsorship of local sport, charities<br />

within the industry for generations - I g 0 U S e and community support programs.<br />

Foundation<br />

store management and staff have<br />

Mitre 10 has partnered Landcare<br />

accumulated a depth of knowledge unsurpassed<br />

by their competitors.<br />

Mitre 10 recognises the emergence and viability<br />

of large store formats and has launched its Mega<br />

flagship stores, coupled with its complementary<br />

new smaller store formats, to maintain its number<br />

one position in the independent hardware market.<br />

Mtre 1 O's Generation 21 vision of segmented<br />

store offerings operating under a powetful umbrella<br />

brand was meticulously researched, with extensive<br />

consumer and trade studies linked with market<br />

mapping technology.<br />

<strong>Australia</strong> under the banner of '<strong>Australia</strong>'s biggest<br />

home improvement' to improve the environmental<br />

health of the country. In 2003, Mtre 10 joined<br />

Land care <strong>Australia</strong> to start the Mtre 10 Junior<br />

Landcare Grants Program which helps to provide<br />

the necessary funding for schools and youth<br />

groups nationally to conduct their own projects to<br />

help create a sustainable future across <strong>Australia</strong>.<br />

More recently, Mitre 10 also formed a partnership<br />

with the Lighthouse Foundation, an organisation<br />

conunitted to supporting disenfranchised young<br />

people in the community by providing holjstic care,<br />

in a family-like setting, within a stable family home<br />

PROMOTION<br />

environment.<br />

Mitre IO' s marketing strategy consists of direct The company logo can also be found<br />

emblazoned around various sporting grounds<br />

throughout the country. Mtre 10 has a long history<br />

of involvement with the <strong>Australia</strong>n Football League<br />

-sponsoring various clubs and supporting an elite<br />

list of champion players.<br />

BRAND VALUES<br />

Mtre 10 is the most recognised hardware chain in<br />

the country. The company has provided literally<br />

millions of home owners with ways of acrueving<br />

their home project aspirations.<br />

The values of the Mitre 10 brand include a<br />

conunitment to customers that they will pay no more<br />

for unsurpassed service by knowledgeable staff,<br />

along with advice and a comprehensive range of<br />

products and related services. This will ensure<br />

satisfaction as well as providing a deep sense of<br />

commuruty.<br />

The Mitre 10 brand continues to evolve with<br />

time, and is supported by a thorough<br />

understanding of the fast-changing face of the<br />

home improvement industry. Mitre I 0 has<br />

development plans in place to sustain its dominant<br />

and respected position in the <strong>Australia</strong>n retail<br />

landscape.<br />

www.mitrelO.com.au<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

MITRE 10<br />

0 Mitre 10 is the largest independently<br />

owned hardware chain in Australasia,<br />

with local stores within reach<br />

everywhere.<br />

0 All stores are ptivately owned and<br />

operated businesses.<br />

0 Otiginally there were only eight<br />

members of the fledgling company,<br />

although the group was confident the<br />

number would be increased to ten<br />

before long. "Mitre I 0" simply<br />

sounded more lyrical than "Mitre 8" or<br />

"Mitre 11 "!<br />

0 Ruth Guy created Mitre 10 history<br />

when she became the first woman to be<br />

elected to a Mitre I 0 board in 1988.<br />

0 Mt:re I 0 launched its first Mega store<br />

in 2004 in Chelsea Heights, Victoria.<br />

77


)les"<br />

OPT US<br />

also provides a full telecommunication<br />

solution for these customers.<br />

In the bu sin ess, corporate and<br />

government markets, Optus<br />

Business provides services to<br />

around 90 per cent of <strong>Australia</strong> 's<br />

top one hundred companies. In 2003<br />

Optus successfu lly launched the C I<br />

Satellite which will see the company<br />

continue to deliver innovative<br />

services to customers.<br />

THE MARKET<br />

The <strong>Australia</strong>n telecommunications market has<br />

never been more fiercely contested.<br />

In spite of market trends, Optus continues to<br />

increase its share of the market, with new Internet<br />

and telecommunications packages, and by creating<br />

an ever more sophisticated range of products for<br />

the home, business, corporate and government<br />

sectors.<br />

ACHIEVEMENTS<br />

The Optus mobile digital network continues to<br />

expand every year and now connects more than 5<br />

million customers, or 34 per cent of the total market.<br />

But the growth of Optus goes beyond its mobile<br />

network. Optus is now <strong>Australia</strong>'s 2"d largest<br />

provider of dial up Internet access. With more than<br />

525,000 customers - an increase of over 125 per<br />

cent in twelve months - Optus is one of the fastest<br />

growing dial up providers in the country. As well<br />

as dial-up Internet, Optus also offers broadband<br />

Internet to homes and businesses across the<br />

country. In recent years the small to medium<br />

enterprise market (SME) has emerged and Optus<br />

HISTORY<br />

Optus was establi shed in 1992,<br />

winning the second carrier licence<br />

to become the first private sector<br />

company to challenge Tel stra' s<br />

monopoly on <strong>Australia</strong>n telecommunications.<br />

In 1998, Cable & Wireless PLC,<br />

which had been a significant shareholder<br />

since the company started,<br />

became the majority shareholder. On<br />

November 17 of that year, the<br />

company was listed on the<br />

<strong>Australia</strong>n Stock Exchange as Cable<br />

& Wireless Optus Limited.<br />

The company petformed profitably over the next<br />

two years. However, by 2000, Cable & Wireless<br />

PLC's long term strategy had shifted away from<br />

supplying broad-based telecommunications<br />

products and CWO was therefore no longer a core<br />

business.<br />

On September 18' 11 200 I, Singtel , the Singaporebased<br />

Asia Pacific regional telecommunications<br />

leader, became the new owner of CWO and<br />

announced that the company would trade in<br />

<strong>Australia</strong> under the Yes Optus banner. Today, Optus<br />

Let's talk about agility for your business.<br />

By implementing an Op t us IP Solution, one of <strong>Australia</strong>'s leading regional construction companies signifiCantly reduced administrative overheads and 1ncreased<br />

their network's flexibility. Using an IP VPN they now tink 3 business divisions across 45 sites throughout <strong>Australia</strong>. The one common platform consol1dated their<br />

b1ltmg . network and support con tracts mak1ng them ready to respond lo change. To frnd out how Optus IP Solutions. in partnership with ~"OCISCO<br />

C1sco Systems. can help yo ur company. speak to your Optus Business Account Executive or call 1800 555 937. optusbusiness.com.au --<br />

78


is a significant member of a large and successful<br />

regional telecommunications group operating<br />

throughout Australasia.<br />

Optus Phone & Net. Get the power of two working for you.<br />

Optus competes with other DSL and cable<br />

providers, OptusNet holds majority marketshare.<br />

Optus' success in broadband and dial-up Internet<br />

is due to the quality and reliability of these products<br />

PROMOTION<br />

The success of Optus as a brand begins with the<br />

development of accessible products that meet deep<br />

and genuine consumer needs.<br />

Through the use of animal metaphors, Optus<br />

advertising then delivers information about these<br />

products through simple, engaging communications.<br />

Research shows that the entire Optus<br />

customer base, from teenagers purchasing pre-paid<br />

mobiles to tradesmen, company executives and Iru·ge<br />

corporates, can all relate to the an imals and natural<br />

metaphors in the advertising, and respond to the<br />

advertising on both a rational and an emotional<br />

level.<br />

THE PRODUCT<br />

In the mobile phone sector Optus is strongly<br />

challenging Telstra for market leadership, with 94<br />

per cent of <strong>Australia</strong>'s population now covered by<br />

the Opt us network. What's more, Opt us is<br />

committed to constantly improving coverage, call<br />

quality and data transmission capability. Between<br />

2002 -2004 Optus plans to invest $330 million on<br />

new base stations across <strong>Australia</strong>. In fact, since<br />

1999 Optus has, on average, opened one new base<br />

station every day.<br />

Other breakthroughs in the mobile arena include<br />

Optus Zoo, information and entertainment on the<br />

move, launched in 2003.This mobile data service<br />

was the first in <strong>Australia</strong> to offer li ve TV on<br />

compatible mobile handsets.<br />

In long-distance telephony, Optus has<br />

introduced a pricing strategy that allows customers<br />

to call long distance for a fixed amount- negating<br />

the fear of cost-per-minute calls.ln local calls, Optus<br />

also delivers competitive pricing.<br />

Optus Internet services cover 99 per cent of the<br />

<strong>Australia</strong>n population and provide reliable service<br />

to more than 525,000 dial-up customers and over<br />

125,000 broadband subscribers. In areas where<br />

as well as innovative pricing and bundling.<br />

In the business market, Optus offers innovative<br />

packaging of services and provides integrated<br />

voice, data, mobile, satellite and e-business<br />

solutions.<br />

RECENT DEVELOPMENTS<br />

There is a revolution taking place in the mobile<br />

phone market and Optus is right at the centre of it.<br />

Text messaging has already led a significant shift<br />

from voice traffic to data traffic on the Optus mobile<br />

network, with SMS text traffic increasing to an<br />

average of I 00 million short text messages per<br />

month, compared to 9 million messages per month<br />

two years ago. At the corporate level, Optus is a<br />

leader in Internet and e-business solutions.<br />

Pat1nership with leading suppliers of hru·dwru·e and<br />

softwru·e delivers a comprehensive range of e-business<br />

services for corporate and government clients.<br />

Optus and Nokia, the world's most successful<br />

mobile phone manufacturer, have formed a<br />

pattnership to build a 3'u Generation mobile network<br />

in <strong>Australia</strong>. This will provide direct connection<br />

from the mobile phone to the desktop, bringing the<br />

mobile office even closer to reality.<br />

BRAND VALUES<br />

Optus looks at communications through the eyes<br />

of its customers. The company is therefore focused<br />

on providing solutions which are practical,<br />

accesible, flexible and creative.<br />

The Optus brand has been built on the<br />

empowerment of customers to access and use the<br />

latest communications technology.<br />

This goes back to what has been the core of the<br />

Optus brand since the beginning- the philosophy<br />

of 'yes'.<br />

www.optus.com.au<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

OPrUS<br />

0 Optus has almost 5,000 high-rise<br />

buildings connected directly to the<br />

network - ru·oLmd I ,000 per cent more<br />

than the next competitor. This puts<br />

Optus in a favoured position to<br />

supply services to these prime<br />

locations.<br />

0 Optus is a major sponsor of community<br />

events, helping to sustain the<br />

<strong>Australia</strong>n communities which sustain<br />

it. Sponsorships include major spotting<br />

bodies such as Tennis <strong>Australia</strong>; the<br />

<strong>Australia</strong>n Brandenburg Orchestra;<br />

and Bell Shakespeare Youth +<br />

Education.<br />

0 Optus is the major sponsor of<br />

<strong>Australia</strong>'s only free, anonymous and<br />

professional counselling service for 5<br />

to 18 year olds - Kids Help Line.<br />

79


powered<br />

by<br />

THE MARKET<br />

The success ofOrai-B lies in its ability to introduce<br />

and enhance technological leadership and<br />

innovation in the oral care business. 75 years ago,<br />

Orai-B invented one of the world's first modern<br />

toothbrush bristling machines and was the first<br />

company to use nylon bristles in<br />

toothbrushes. The company also introduced<br />

end-rounded bristles for better protection<br />

of teeth and gums. Tills innovative spirit,<br />

together with a close pmtnership with the<br />

dental community, set new standards in<br />

preventive dentistry and ensured business<br />

progress.<br />

Oral-B became a pmt of The Gillette<br />

Company in 1984. This allim1ce enables Oral­<br />

B to share in Gillette' s sophisticated<br />

laboratories, world-class engineering talents<br />

and facilities to enhance research<br />

capabilities. Together with Braun, another<br />

Gillette bus iness, Oral-B created the<br />

revolutionary electric Oral-B plaque remover.<br />

Today, Oral-B is a global business. Its<br />

products m·e sold in 60 countries worldwide<br />

including North America, Latin America,<br />

Europe, Asia-Pacific, the Middle-East, Africa,<br />

West Asia and North Asia (China). Oral-B is<br />

a key player in the oral care industry with<br />

leadership status in the toothbrush market<br />

worldwide.<br />

Building on its many successes, Oral-B<br />

continues to believe in innovation, excellence and<br />

pmtnership with the dental community. In this way,<br />

products will continue to meet the stringent needs<br />

of the dental community and provide real benefits<br />

to customers.<br />

ACHIEVEMENTS<br />

Founded in 1950 in California, Oral-B has been<br />

providing outstanding oral care products to<br />

consumers, dental professionals, and retailers<br />

worldwide. German-based Braun, which later<br />

teamed up with Oral-B to create power<br />

toothbrushes ,<br />

stmted honing its skills to create state-of-the-a1t<br />

small appliances more than 80 years ago.<br />

The Oral-B and Braun Oral-B brands have helped<br />

The Gillette Company become the worldwide leader<br />

in the total toothbrush mm·ket. The Oral-B brand is<br />

the clem leader in the A$124 million <strong>Australia</strong>n<br />

toothbrush category, with a 47 per cent share<br />

(source GFK and AC Nielsen 2003). Oral-B has<br />

achieved thi s by marketing toothbrushes for<br />

children and adults, as well as dental floss. The<br />

Braun Oral- B brand includes power toothbrushes<br />

for adults and children, as well as interdental<br />

products such as water irrigators. Power<br />

toothbrushes, the foundation and lm·gest<br />

category of The Gillette Company's thriving<br />

oral care bu siness, are used by more<br />

dentists and consumers than any other<br />

power brand across many international<br />

mmkets.<br />

In <strong>Australia</strong>, Oral-B is the leader in<br />

toothbrushes and it is the brand most<br />

dentists use themselves.<br />

HISTORY<br />

It all stmted with a dentist, back in 1950,<br />

who created the first Oral-B toothbrush and<br />

its soft, end-rounded nylon bristles. Dr<br />

Robert Hutson, a Californian periodontist,<br />

designed and patented the first Orai-B<br />

toothbrush. He also created the Oral-B<br />

brand name and called his first innovation<br />

the 'Oral-B 60'.<br />

In 1967, The Gillette Company<br />

purchased Braun, one ofthe world's leading<br />

smalJ-appliance brands. At this point, the product<br />

portfolio covered populm· small appliances like<br />

radios, cameras, shavers, and mixers. As the<br />

business grew, additional sizes of Oral-B<br />

toothbrushes were added, and print advertising<br />

began. Through the 1960s and 1970s, business<br />

continued to grow at a rapid pace. Oral-B products<br />

=<br />

=<br />

80


expanded to many international mm·kets in Europe,<br />

Latin America, and Asia Pacific.<br />

In 1978, Braun began the first mass production<br />

of a power toothbrush. Called D l , this power<br />

toothbrush was created using Braun's technology,<br />

simulating manual side-to-side movements. This<br />

innovation was sold predominantly in Europe,<br />

where it became a huge success. Three years later,<br />

Oral-B 's first angled toothbrush, the Orai-B Right<br />

Angle, was introduced. Oral-B took the children's<br />

mm·ket by storm in 1984 with the launch of Star<br />

Wm·s, the first successful character toothbrush for<br />

children in the United States, and distributed<br />

under the first Oral-B<br />

chm·acter licensing<br />

agreement. In the<br />

same year, Braun<br />

introduced the first power<br />

toothbrush to combine vertical and horizontal<br />

movements, a simulation of the dentistrecommended<br />

Bass brushing method. The D3 was<br />

successful in highly developed European oral cme<br />

markets like Denmark, Finland, Holland, and<br />

Germany.<br />

Nineteen eighty-seven saw Oral-B introduce the<br />

Oral-B Ultra Plus- the first new generation Oral-B<br />

toothbrush in over thirty yems. Launched globally,<br />

it was the first Oral-B product designed in<br />

pmtnership with Braun. The Oral-B Ultra Plus was<br />

a highly innovative design that featured a rounded<br />

head, longer handle, thumb grips, and a nmrower<br />

'porch', or mea between the edge of the brush<br />

head and the outermost row of bristles. Within a<br />

year, the Orai-B toothbrush had gained its<br />

reputation as 'the brand more dentists use'.<br />

Nineteen ninety-one saw Braun and Oral-B<br />

combine forces to develop and launch the Braun<br />

Orai-B Plaque Remover, the D5 . It was the first<br />

Braun Oral-B power toothbrush clinically<br />

proven to clean better than a manual<br />

toothbrush, quickly becoming a best-seller<br />

worldwide. From then onwm·ds, Oral-B has<br />

continued its tradition of producing yearly<br />

innovations, adding better features to its<br />

toothbrushes.<br />

The company later widened its business<br />

segments, producing not only manual and<br />

power toothbrushes, but adding other oral<br />

cm·e products such as toothpastes, mouth<br />

rinse and dental floss.<br />

THE PRODUCT<br />

Oral-B bas always been well-known for its<br />

range of oral cme products, particulm·ly<br />

its manual and power toothbrushes. At<br />

the beginning of the 1990s, a groundbreaking<br />

innovation was introduced<br />

with the Braun Oral-B power toothbrush.<br />

It featured an oscillating brushing<br />

system with a small, round brushhead<br />

and heralded a major technological<br />

advance for power toothbrushes. In<br />

extensive clinical tests this product<br />

was shown to be unsurpassed in<br />

removing plaque and reducing gingivitis, cleaning<br />

better than a manual toothbrush with no difficult,<br />

tedious brushing method to master.<br />

Used as directed, the Braun Oral-B power<br />

toothbrush automatically employed the proper<br />

brushing technique and was simple, convenient<br />

and pleasant to use. Braun Oral-B is the leading<br />

power toothbrush brand in the world and is<br />

recommended by more dental professionals than<br />

any other power toothbrush brand. In 1999 the<br />

Braun Oral-B 3D power toothbrush was launched,<br />

improving personal oral cme once again.<br />

Unlike any other power toothbrush,<br />

the Braun Oral-B 3D power<br />

toothbrush incorporated a patented<br />

technology that combined<br />

high-speed in-and-out pulsations<br />

with side-to-side oscillations to<br />

provide a brushing result clinically<br />

superior not only to a manual toothbrush,<br />

but even to emlier Braun Oral-B models.<br />

RECENT DEVELOPMENTS<br />

The most recent power innovation is the Oral-B<br />

ProfessionalCare, a top-of-the-line power<br />

toothbrush featuring advanced<br />

technology that leaves teeth<br />

with a remmkably clean, fresh<br />

feeling similar to that<br />

experienced after a professional<br />

cleaning.<br />

The Oral-B ProfessionalCme<br />

power toothbrush outperforms<br />

ordinary toothbrushes in the key<br />

areas of plaque removal, gingivitis<br />

reduction and the reduction of<br />

gingival bleeding. This product<br />

builds on the innovations<br />

pioneered by the Braun Oral-B 3D,<br />

doubling the number of pulsations<br />

from 20,000 to 40,000 per minute,<br />

while the brush head oscillates from<br />

side to side at a rate of 8,800<br />

movements per minute. At 40,000<br />

pulsations per minute, the Oral-B<br />

ProfessionalCare is the fastest<br />

pulsating power toothbrush available.<br />

On the Oral-B manual side the Cross<br />

Action Toothbrush is a unique<br />

toothbrush that utilises crisscross<br />

bristles for better tooth brushing. The<br />

Cross Action Toothbrush is specially<br />

designed with Power Tip bristles which<br />

m·e extra long to help clean hard-to-reach<br />

places, and are angled in opposing<br />

directions to lift out and sweep away plaque.<br />

The indicator bristles me based on patented<br />

technology that fades half way, based on<br />

brushing twice a day for a total of three<br />

months. The ergonomically designed handle<br />

with a rubber grip features front and back<br />

thumb stops for firmer grip and extra control<br />

to complete the innovative look of this<br />

product.<br />

There is no doubt that users can be<br />

confident that the Cross Action Toothbrush<br />

surpasses other manual toothbrushes. It has<br />

been clinically proven to remove more plaque<br />

than leading toothbrushes and is the leading<br />

brand among dentists worldwide.<br />

PROMOTION<br />

Oral-B is committed to promoting its technologically<br />

advanced high-peiformance branded<br />

products through consistent and heavyweight<br />

mm·keting progra111s.<br />

These initiatives include the 'Change of<br />

Toothbrush' Campaign, an annual thematic<br />

promotion that educates and encourages consumers<br />

to change their toothbrush every three months.<br />

Clinical studies show that a new toothbrush<br />

removes more than 30 per cent more plaque than a<br />

three-month-old toothbrush and this is the message<br />

that Oral-B puts across to the general public. The<br />

promotion is suppotted with consumer promotion<br />

value packs, advertising and in store point of<br />

purchase materials that communicate the<br />

educational message. Retail audit shows that<br />

cmrently <strong>Australia</strong>ns change their toothbrush less<br />

than 1.5 times a yem·, and this initiative will help<br />

promote cleaner, healthier teeth.<br />

BRAND VALUES<br />

Oral-B is a brand that is comrnitted to improving<br />

oral hygiene through its ground-breaking<br />

innovations and educational initiatives and, in<br />

pmtnership with the dental community, to setting<br />

new standm·ds in preventive dentistry.<br />

The brand is a world leader, not just in producing<br />

manual and power toothbrushes but across the<br />

whole range of oral cme products, wruch consumers<br />

m·ound the world know they can trust.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

ORAL·B<br />

0 At 40,000 pulsations per minute, the<br />

Oral-B ProfessionalCm·e power<br />

toothbrush is the fastest pulsating<br />

toothbrush in the world.<br />

0 Oral-B toothbrushes were on bom·d the<br />

Apollo 11 mission, the first to land on<br />

the moon.<br />

0 Clinical studies show that a new<br />

toothbrush removes 30 per cent more<br />

plaque tba11 a three-month-old<br />

toothbrush a11d this is the message of<br />

Oral-B's annual 'Change of<br />

Toothbrush' Ca111paign.<br />

81


THE MARKET<br />

The healthy outdoor lifestyle enjoyed by most<br />

<strong>Australia</strong>ns has historically led to an above average<br />

incidence of dog ownership in <strong>Australia</strong>. Our rate<br />

of pet ownership is one of the highest in the world<br />

surpassing even traditional pet strongholds such<br />

as the US and UK.<br />

The pace and instability of modern life has<br />

further accentuated the relevance of owning a dog.<br />

Dogs are a welcome counterbalance to our stressful<br />

lives and are seen by many to be a symbol of family<br />

stability. It should therefore come as no surprise<br />

that many people are keen to ensure that their dogs<br />

receive the best care and attention in order to help<br />

improve the quality and length of their dog's life.<br />

Looking after man ' s best friend is big business<br />

in <strong>Australia</strong>. In 2002 the <strong>Australia</strong>n petcare market<br />

was worth over $2.6 billion with dog food<br />

accounting for over 40 per cent of this figure.<br />

With the rewards of owning a dog comes<br />

responsibility. Feeding a dog a well balanced diet<br />

is clearly necessary to keep him fit and healthy and<br />

dog owners have a huge variety of products to<br />

choose from in order to maintain their dog's health.<br />

As with human food trends, there is increasing<br />

demand for innovation within the category, such<br />

as functional foods that have specific health<br />

benefits.<br />

The PEDIGREE® range is at the very forefront<br />

of innovation in dog care constantly striving to<br />

develop products that deliver dogs the best<br />

possible chance at a healthy and happy life.<br />

ACHIEVEMENTS<br />

PEDIGREE is arguably one of <strong>Australia</strong>'s most<br />

successful iconic brands, coming in 12' 11 in AC<br />

Nielsen Top 100 <strong>Australia</strong>n Brands in the 2001<br />

survey. It is undoubtedly the leading pet food brand<br />

in <strong>Australia</strong>. It holds a commanding market share,<br />

has unprecedented brand awareness and is seen<br />

as a leader in nutrition and pet care.<br />

When MasterFoods <strong>Australia</strong> New Zealand<br />

Petcare division, formerly known as Uncle Ben's of<br />

<strong>Australia</strong>, began making prepared food for pets,<br />

only 5 per cent of <strong>Australia</strong>' s dogs and cats were<br />

fed some type of prepared food. Most people were<br />

in the habit of feeding their pets on food scraps.<br />

Today, prepared dog food offers complete nutrition<br />

and the vast majority of dog owning households<br />

feed their dog such meals.<br />

The company now has a market share of over 50<br />

per cent in the grocery market for petcare, and exports<br />

to more than 45 countries including markets as diverse<br />

as Japan, Canada, Switzerland and New Zealand.<br />

PEDIGREE PAL® has close to universal brand<br />

awareness among <strong>Australia</strong>n customers. It is<br />

known that PEDIGREE PAL is associated with<br />

expert recommendation, a company that leads the<br />

way in developing dog food and that it is an<br />

authority in Petcare. The product offers complete,<br />

balanced nutrition, and the PEDIGREE brand is<br />

instantly recognisable on the shelf with its strong<br />

yellow packaging.<br />

When PEDIGREE was first launched in<br />

<strong>Australia</strong> it offered a portfolio of products<br />

catering to different lifestyles of dogs. These<br />

included, among others, working dog and<br />

breeder formulas. In the early '90s the PEDIGREE<br />

'umbrella' brand was launched with the backing<br />

of Waltham Centre for Pet Care and Nutrition.<br />

PEDIGREE has continued to extend its portfolio<br />

of dog foods to cater for all kinds of feeding and<br />

snacking solutions necessary for puppies and<br />

adult dogs.<br />

HISTORY<br />

In the early days of domestication,,------;-----------------,--------:::---:-:-::--..<br />

the ancestors of pet dogs may well<br />

have been offered leftovers from<br />

human meals. They would have<br />

supplemented that through a<br />

combination of hunting, scavenging<br />

and foraging. In this way, they would<br />

have achieved a balanced diet. Today,<br />

of course, that is no longer possible<br />

- or at least it would be distinctly<br />

unpopular with the neighbours- and<br />

manufactured dog food has become<br />

the standard.<br />

Uncle Ben's of <strong>Australia</strong> first<br />

marketed products in <strong>Australia</strong> in<br />

1965. The success of this initial<br />

exercise resulted in the building of<br />

the company's Wodonga plant. The<br />

first <strong>Australia</strong>n-produced "PAL"<br />

(known as PEDIGREEPALsince the<br />

1990s) became available in 1967. The<br />

Uncle Ben' s of <strong>Australia</strong> dog food<br />

portfolio has grown rapidly since then.<br />

82


PEDIGREE is, in fact, the history of typesofdogs.Whateverageorsizeofdog,beit<br />

manufactured dog food in <strong>Australia</strong>.<br />

puppy, adult, mature, big or small, it should be<br />

fed a diet that suits its specific development<br />

THE PRODUCT<br />

needs.<br />

All products in the PEDIGREE meal range are 100<br />

per cent complete and nutritionally balanced.<br />

PEDIGREE products provide a complete and<br />

balanced diet specifically designed to ensure that<br />

the dog receives all the nutrients it needs to be<br />

happy and healthy.<br />

PEDIGREE PAL is the original 'dog food' and<br />

with recent product improvements is now even<br />

better thanks to tastier, meaty chunks that dogs<br />

really love. For the greatest breakthrough ever in<br />

dry dog food , PEDIGREE added moist meaty<br />

chunks to PEDIGREE MEATY-<br />

BITES®.<br />

RECENT DEVELOPMENTS<br />

Everyone is quite aware of the fact that a newborn<br />

baby or even a toddler does not eat exactly the<br />

same food as his parents. In the early stages of<br />

growth and development it is very important that<br />

puppies, like humans, get the nutrition they<br />

require to develop properly. Learning, playing<br />

and growing can be hard work. That is why<br />

puppy food must contain an appropriate mix of<br />

vitamins and minerals as well as the required<br />

energy levels.<br />

The PEDIGREE PUPPY<br />

PEDIGREEoffers arangeofhigh<br />

Pf]fQOD ONlY<br />

range has been specially<br />

quality foods to help dogs lead<br />

formulated to meet the<br />

happy, healthy lives. PEDIGREE<br />

nutritional requirements of L__ ____________________j<br />

contains meat because it 's a<br />

growing puppies and to loved first and foremost for what their owners<br />

natural source of protein that not<br />

only maintains strong muscles<br />

but also offers a taste that dogs<br />

encourage optimal growth and<br />

development. Each product<br />

also contains a unique blend<br />

perceive to be their unique personalities. The three<br />

most recent advertisements focus on the<br />

personalities of the lead dogs and in doing so<br />

love. PEDIGREE has<br />

of natural antioxidants that highlight one of the most rewarding aspects of<br />

developed Yitacoat®, a unique<br />

help maintain the immune owning a dog.<br />

blend of minerals and essential MINI MEATY-BITES4!> system, g iving puppies The first featured a boxer dog stealing a string<br />

100\ COMPlETE NIJIRITION FOR SMAll DOGS<br />

oils designed to help promote<br />

greater protection at this of sausages that he gave up for a can of PEDIGREE<br />

skin and coat health. PEDIGREE<br />

important time in their lives. PAL. The second saw an Hungarian Vizla so<br />

"''" BEEF & J·. . i<br />

also delivers an optimal balance<br />

VEGETABlES<br />

1 Puppies' specific nutritional impressed with the packaging benefits of<br />

& MINI MOIST<br />

of vitamins and minerals for<br />

MEA;UNK~ . .·· ,...,<br />

needs have been identified PEDIGREE Pouch that he buried a bone in an empty<br />

' . l'J .; -c"' .<br />

strong teeth and bone<br />

~- .,/~ .; 1-_<br />

quite clearly. It is very pouch. The most recent featmed a sniffer dog beagle<br />

development. Natural dietary<br />

~ N~§ I _ ' important to feed them a at the airport losing control at the discovery of<br />

fibre leads to a healthy digestion<br />

specially formulated puppy some PEDIGREE MEATY-BITES. These executions<br />

and smal ler stools. Finally,<br />

have proved to be most impactful and involving<br />

PEDIGREE helps to strengthen the immune system<br />

amongst the PEDIGREE target market.<br />

with a unique combination of antioxidants.<br />

All PEDIGREE foods are developed with<br />

Waltham® the world's leading authority on pet<br />

care and nutrition and has an established reputation<br />

amongst pet owners, breeders, veterinarians and<br />

academics alike. Waltham is committed to the<br />

advancement of the health, longevity and wellbeing<br />

of dogs worldwide, applying expe1tise to the<br />

development of innovative, high pe1formance dog<br />

foods.<br />

PEDIGREE has a wide range of products for all<br />

food because puppies need up<br />

to one-and-a-half times the energy of adult dogs of<br />

the same size. Young dogs also require special<br />

vitamins and minerals for strong teeth and bones,<br />

while higher protein levels are needed for strong<br />

muscles and growth. Additionally their immune<br />

systems need strengthening at this vulnerable time<br />

of growth.<br />

The company has also developed PEDIGREE<br />

Senior products especially to give older dogs the<br />

quality of life they deserve during their golden years.<br />

PEDIGREE Senior products provide a nutritionally<br />

balanced diet that responds to an older dog's<br />

developing needs, including lower<br />

activity levels and a more sensitive<br />

digestive system.<br />

PROMOTION<br />

PEDIGREE promotions for many<br />

years have been synonymous with<br />

the slogan 'Top Breeders<br />

Recommend It'.<br />

PEDIGREE advertising has<br />

consistently communicated its<br />

understanding of what dogs need<br />

and want in order to thrive. The<br />

company's outstanding knowledge<br />

and insight into a dog's nutritional<br />

needs means that it has been at the<br />

forefront of product innovation for<br />

this category. In 2002, PEDIGREE<br />

research indicated a need to make<br />

communications with the market<br />

more contemporary.<br />

In discussions with customers it<br />

was recognised that family dogs are<br />

BRAND VALUES<br />

The PEDIGREE brand vision is to be the brand of<br />

choice through superior delivery of the mainstream<br />

customer's wish to have a healthy, happy dog for<br />

life. PEDIGREE understands the friendship that<br />

exists between the owner and the dog and enhances<br />

this relationship by knowing dog and owner better.<br />

PEDIGREE goes beyond pure science to<br />

observe and understand what dogs need and want<br />

to thrive, including their relationship with people.<br />

PEDIGREE translates this unique knowledge and<br />

insight into foods that deliver a superior<br />

combination of visible health and enjoyment.<br />

®Registered Trademarks of Master Foods <strong>Australia</strong> New Zealand. ©MasterFoods.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

PEDIGREE<br />

0 PEDIGREE has been a major sponsor<br />

for <strong>Australia</strong>n Guide Dogs for the past<br />

35 years.<br />

0 Over half of all households which buy<br />

dog food, purchase PEDIGREE.<br />

0 There are approximately 3.97 million<br />

dogs in <strong>Australia</strong>.<br />

0 Pet owners make fewer annual doctor<br />

visits and spend less time in hospital.<br />

0 The average life of a dog is 11 years.<br />

0 There are currently 260 registered dog<br />

breeds in <strong>Australia</strong>.<br />

0 Labradors are the most registered dog<br />

breed in <strong>Australia</strong>.<br />

83


THE MARKET<br />

The global carbonated soft drinks market is one of<br />

the most hotly contested of all, with worldwide retail<br />

sales of Trade Mark Pepsi-Cola alone reaching $20<br />

billion annually. The popularity of PepsiCo<br />

products is stronger than ever with more than one<br />

out of every ten soft drink products sold worldwide<br />

being a PepsiCo product- totalling 44 billion lit.res<br />

per annum.<br />

In the United States, annual per capita<br />

consumption of carbonated soft drinks equals 188<br />

litt·es, making these the country's most popular<br />

beverage.<br />

In Western Europe, annual per capita<br />

consumption of carbonated soft drinks is closer to<br />

76 litres, but is growing steadily. Austt·alians'<br />

fondness for carbonated soft drinks is reflected in<br />

annual per capita consumption of 166 litt·es with<br />

carbonated soft drinks representing 55 per cent of<br />

total soft drink consumption.<br />

ACHIEVEMENTS<br />

Pepsi Cola beverages can be found around<br />

the globe in more than 195 countt·ies. Key<br />

markets include the US, China, India and<br />

Scandinavia. PepsiCo International also<br />

has a presence in emerging markets such<br />

as the Czech Republic, Hungary and<br />

Russia.<br />

The company prides itself on<br />

offering <strong>Australia</strong>n teens an<br />

oppmtunity to interact with some<br />

of the world' s and <strong>Australia</strong>'s<br />

biggest music artists and<br />

celebrities through its innovative<br />

music promotions. This included<br />

the unique music program, Pepsi<br />

Live, which aired for four years<br />

in <strong>Australia</strong>. The format has been<br />

used in a number of countries<br />

globally.<br />

Pepsi has been successfully<br />

positioned as a credible relevant<br />

cola choice for youth.<br />

The Pepsi logo, together with<br />

its famous globe icon, is ranked<br />

as one of the most recognisable<br />

logos in the world.<br />

HISTORY<br />

Mr Caleb Bradham could not<br />

possibly have expected Pepsi's<br />

future success when he<br />

developed his digestive aid in<br />

1886 made from carbonated water,<br />

sugar, vanilla and rare oils. It was<br />

sold locally in North Carolina as<br />

' Brad's Drink', but in 1898<br />

Bradham renamed his refreshing,<br />

energising beverage 'Pepsi Cola'<br />

and took it to a larger audience.<br />

The brand fared well over the<br />

next two decades but then<br />

shmtages of sugar and transportation,<br />

among other things, in<br />

World War I forced the company<br />

into bankruptcy. Charles Guth, the<br />

president of soda fountain chain<br />

Loft Industries, purchased a<br />

majority stake and put Pepsi into<br />

his stores. To economise, he used<br />

12 ounce beer bottles as<br />

containers. These initially sold for<br />

10 cents when the standard soft drink<br />

was a six-ounce and sold for<br />

five cents, a nickel. To boost sales, Guth cut<br />

his price to a nickel but kept Pepsi in the 12<br />

ounce bottles.<br />

In 1938, Walter Mack became president<br />

of Pepsi Cola and introduced new<br />

advertising backing the 12 ounce bottle<br />

with the jingle, "Nickel Nickel". The song<br />

became so popular that it was recorded<br />

in 55 languages. Renamed "Pepsi<br />

Cola Hits the spot", the tune was<br />

named immmtal by Life magazine<br />

in 1940.<br />

After World War II and into the<br />

1950s, Alfred Steele presided over<br />

an extended period of growth.<br />

Pepsi adopted standard pricing and<br />

a strategy to achieve a world class,<br />

sophisticated image, developing<br />

the distinctive "swirl" bottle and a<br />

new ad campaign, "Be Sociable,<br />

Have a Pepsi". This was the first<br />

Pepsi campaign to focus on young<br />

people.<br />

The stage was set for another<br />

advertising breakthrough. The<br />

baby-boom generation was<br />

heading into the future with<br />

optimism. Pepsi captured that spirit<br />

with a theme that stood the test of<br />

time - the Pepsi Generation. For<br />

more than 30 years, it was the<br />

common thread running through<br />

some of the most popular<br />

advertising around. The Pepsi<br />

Generation also introduced Diet<br />

Pepsi in 1964 with its own catchy<br />

jingle "Girlwatchers". That hit the<br />

Top40.<br />

As the '60s gave way to the<br />

'70s, Pepsi began to close the gap<br />

on its largest competitor.<br />

Innovations under CEO Don<br />

Kendall included the development<br />

of the fu·st two-litre bottle, along<br />

with plastic bottles that were lighter<br />

and stronger than glass.<br />

In the mid '70s, the Pepsi Taste<br />

Challenge was born. Consumer<br />

tests revealed that more people<br />

preferred the taste of Pepsi over the<br />

largest brand of cola, and soon the<br />

Challenge made its way into<br />

advertising.<br />

A long list of superstar·s have lent<br />

their magic to Pepsi including Michael<br />

Jackson, Tina Turner, Michael J Fox, Ray Charles,<br />

Cindy Crawford and more recently Kylie Minogue,<br />

Madonna, Britney Spears, Ricky Martin, Robby<br />

Williams, Enrique Iglesias and Beyonce Knowles.<br />

In 1998, Pepsi celebrated its 100' 11 anniversary<br />

and unveiled a new logo for the new millennium- a<br />

84


three dimensional globe against an ice blue<br />

background, which unifies the brand's graphic<br />

identification across the world.<br />

Today, the three dimensional globe has grown<br />

in its graphic presence on a new look logo on a<br />

"shard" background, themed across the entire Pepsi<br />

range to create a di stinctive Pepsi-look.<br />

THE PRODUCT<br />

PepsiCo International's focus on becoming the<br />

"Total Beverage Company" is the major<br />

reason for its success around<br />

the world, and the<br />

company sees huge<br />

potential for growth in<br />

the years to come while<br />

it reaches for this<br />

pinnacle.<br />

PepsiCo products in<br />

<strong>Australia</strong> include Pepsi,<br />

Diet Pepsi, Pepsi Max, 7UP,<br />

Diet 7UP, Caffeine Free Diet<br />

Pepsi, Mountain Dew,<br />

Gatorade and Propel.<br />

Internationally, best sellers are<br />

Pepsi, Pepsi Max, Diet Pepsi,<br />

Mountain Dew, 7UP and Gatorade.<br />

Other mar·kets have even wider portfolios. In<br />

the United States, PepsiCo also offers Sierra Mist,<br />

Wild Cherry Pepsi, Aquafina, Tropicana Juices and<br />

Sobe to name a few.<br />

RECENT DEVELOPMENTS<br />

In 1998, Pepsi launched its most aggressive attack<br />

on the $4.4 billion <strong>Australia</strong>n cola market- asking<br />

one rnillion young <strong>Australia</strong>ns to reassess their cola<br />

preference.<br />

The Pepsi Taste Challenge took to the<br />

streets that year with its blind, side-by-side<br />

taste test between Pepsi and its largest<br />

competitor. This youth-focused, streetbased<br />

sensory experience involved<br />

entertainment, interactive games,<br />

giveaways and highly visible vehicles.<br />

The Challenge was supported by the<br />

already famous "Let your Taste<br />

Decide" tagline.<br />

In <strong>Australia</strong>, PepsiCo<br />

International joined forces with<br />

Cadbury Schweppes in October<br />

2000, placing Pepsi in a strong<br />

position for growth on the back of<br />

the established distribution<br />

network, sales and manufacturing<br />

systems of the bottler. The<br />

partnership holds a 30 per cent<br />

shm-e of the <strong>Australia</strong>n carbonated<br />

soft drink market.<br />

At the beginning of 2001 ,<br />

PepsiCo International acquired<br />

Quaker Oats, adding the Gatorade<br />

and Tropicana brands to the<br />

international po1tfolio, bringing the<br />

company closer to becoming the<br />

world' s number one "Total<br />

Beverage Company".<br />

The company is now<br />

internationally and locally<br />

focusing on creating engaging<br />

and exciting advertising and<br />

promotional campaigns through its second to none<br />

line up of international stars: soccer player David<br />

Beckham, music artists Shakira, Britney, Pink and<br />

Beyonce.<br />

Pepsi in late 2003 signed up <strong>Australia</strong>n celebrities<br />

Holly Valance, HarTy Kewell and Chloe Maxwell to<br />

join the international line up, the locals featuring in<br />

the country's biggest-ever outdoor advertising<br />

campargn.<br />

Today, Pepsi Max is the focus of<br />

a new advertising and street<br />

sampling campaign focusing on<br />

20 to 30-something consumers.<br />

PROMOTION<br />

Staying on the leading edge<br />

of adve1tising and consumer<br />

promotions is the hallmark of<br />

PepsiCo International. In<br />

fact, the company is<br />

recognised worldwide as<br />

a leader in advertising,<br />

marketing, sales and<br />

promotional initiatives.<br />

Pepsi uses consumer promotions to deliver<br />

access to the best and biggest artists around the<br />

world, including the hottest <strong>Australia</strong>n talent, for<br />

its target: teens and young adults.<br />

The "Choose your music" promotion, in<br />

partnership with record company EMI and web<br />

company Excite, gave consumers the opportunity<br />

to create a personalised CD by choosing their<br />

favourite songs. The offer was a huge success,<br />

with 90,000 CDs distributed in just 12 weeks.<br />

The following summer, Pepsi offered consumers<br />

the opportunity to win tickets to major music<br />

festivals and concerts in the "We'll take<br />

you there" promotion.<br />

In 2003, Pepsi recorded another world<br />

first with its Pepsi stick-its promotion,<br />

offering teens the opportunity to collect<br />

ten stickers of international music artists<br />

featured on the inside of the label of<br />

600ml bottles of Pepsi, Pepsi Max and<br />

Diet Pepsi.<br />

BRAND VALUES<br />

Pepsi is about taste, choice and<br />

a feeling of youthful optimism.<br />

Daring its consumers to ask for<br />

moreoutoftheirown lives, being<br />

fun and bold is what Pepsi is all<br />

about.<br />

To ensure Pepsi remains the<br />

"coolest" brand in the eyes of<br />

teens, the company maintains a<br />

strong connection with<br />

something very important in<br />

their lives: music and<br />

aspirational celebrities.<br />

Through celebrities, Pepsi<br />

can connect with all kinds of<br />

teens in all walks of life. Pepsi<br />

makes this involvement credible<br />

by delivering the hottest and<br />

most relevant international and<br />

local music artists and<br />

celebrities. Such associations<br />

are strengthened through<br />

campaigns like the "Dare for<br />

More" outdoor adve1tising that ties into activity<br />

with radio partner DMG's Nova radio stations and<br />

on Pepsi's own progressive website<br />

www.pepsi.com.au. Pepsi has always been a little<br />

younger, more hip and more relevant than any of<br />

its competitors. That is what has helped keep it<br />

what it is today -simple, joyful refreshment.<br />

0<br />

0<br />

0<br />

0<br />

0<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

PEPSI<br />

In 1908, Pepsi-Cola became one of the<br />

first companies to switch its delivery<br />

fleet from horse-drawn car·ts to motor<br />

vehicles.<br />

A bottle of Pepsi took centt·e stage in a<br />

Cold War· summit in 1959 between<br />

Soviet premier Nikita Khrushchev and<br />

US vice-president Richar·d Nixon. The<br />

two men shar·ed a Pepsi at ar1<br />

international trade fair in Moscow. The<br />

meeting was photo-captioned in US<br />

media as 'Khruschchev Gets Sociable'<br />

in line with Pepsi's ad slogan at the<br />

time.<br />

In 1985, Pepsi made its first trip on the<br />

Space Shuttle, carried in a specially<br />

designed 'space can'.<br />

The winner of the Pepsi Space<br />

competition run in 1998/99 will be the<br />

first Austt·alian civilian to go into<br />

space. This Austt·alian comp was<br />

picked up by Pepsi all over the world.<br />

Pepsi has created more than 16 world<br />

firsts with the Pepsi Max Team tour,<br />

including one World Record officiated<br />

by the Guinness Book of Records -<br />

the most ever consecutive back flips<br />

on a vett ramp.<br />

85


THE MARKET<br />

3M created an entirely new market when it launched<br />

Post-it® Notes in 1980. It is hard to know how<br />

offices survived before 'Repositionable Notes'<br />

were invented. Go into any office today and<br />

computer terminals, doors, desks, and folders will<br />

be dotted with the familiar brightly-coloured notes.<br />

They have become an essential element of our<br />

working - and home - lives. Whether they are<br />

reminding us of the address for the next meeting or<br />

to 'Call Dave at 5 pm', the Post-it® Note is an<br />

example of a product we didn' t realise we needed<br />

until it was invented.<br />

Doing away with the need to scribble on pieces<br />

of paper and attaching notes with paper clips, Postit®<br />

Notes target any business which needs to<br />

remember, communicate and organise information.<br />

In other words, every business. According to 3M's<br />

research, secretarial is the largest slice of the Postit®<br />

Note market, with big users including education,<br />

management training and the small office/home<br />

office (SOHO) sector.<br />

Despite what everyone says about e-mail doing<br />

away with the hand-written word, 75 per cent of<br />

~ Notes!Notas 3M<br />

adults are described as 'note writers' or<br />

'messagers'. Of these, 56 per cent are heavy users<br />

of repositionable notes, 30 per cent are light users<br />

and 14 per cent don 't use them at all. Curiously, 71<br />

per cent of heavy repositionable note users are<br />

women. Women also go for the brighter coloured<br />

notes more than men, which partly explains why<br />

Post-it® Notes are now available in many more<br />

colours than the original Canary® Yellow.<br />

ACHIEVEMENTS<br />

The Post-it® Note was a genuinely<br />

important invention. Fortune Magazine<br />

recently recognised this when, in<br />

November 1999, it ranked the Post-it®<br />

(<br />

Note in its Products of the Century<br />

League. Alongside the paper<br />

clip, the Xerox photocopier<br />

and fax machine, the Intel<br />

microprocessor and the<br />

Apple Macintosh, 3M's<br />

adhesive note was judged<br />

to be a product that has<br />

helped to revolutionise<br />

the workplace.<br />

As with other brand names<br />

in the Fortune league - like Xerox and<br />

Hoover- the Post-it® is one of those rare trademarks<br />

which has gained fame the world over and is<br />

immediately identified with 3M's innovative<br />

repositionable yellow notes. That in itself is an<br />

enviable achievement and a formidable marketing<br />

position for any brand.<br />

Not surprisingly, brand awareness is very high,<br />

with 62 per cent spontaneous and 95 per cent<br />

prompted awareness.<br />

The Post-it® Note, and its inventor, Art Fry, have<br />

been suitably honoured over the years. Fry recei ved<br />

the Outstanding Alumni Award from the University<br />

of Minnesota, the Premio Smau Industrial Design<br />

Award from the Italian Design Association and was<br />

voted one of the best I 00 people in the world by<br />

Esquire Magazine. The product has even been<br />

celebrated in a book, called 'Rapid Problem Solving<br />

with Post-it® Notes'.<br />

HISTORY<br />

In the 1970s, 3M scientist Art Fry used to sing in a<br />

church choir on Sundays. His idea for the Post-it®<br />

Note came when he was looking for a way of<br />

organising musical scores and song sheets for the<br />

service. Making do with marks made from small<br />

slips of paper, he began to think of how he ideally<br />

needed a bookmark that would attach and detach<br />

lightly, stick without falling off and not damage the<br />

paper.<br />

Remembering an adhesive di scovered a few<br />

years earlier by another 3M scientist, Dr. Spencer<br />

Silver, Fry started to form his idea. Silver had been<br />

working on a project to create an extra strong<br />

adhesive, but, in the process, had inadvertently<br />

discovered a new 'low tack' glue. It had the peculiar<br />

characteristics of having a low adhesive capacity,<br />

yet was able to stick to paper pe1fectly and could<br />

be stuck and re-stuck without leaving a trace of<br />

adhesive behind.<br />

Fry ordered some of the adhesive and<br />

experimented putting some on the<br />

edge of a paper to make<br />

bookmarks. During the<br />

early stages of<br />

development, Fry stuck<br />

one of his new marks to a<br />

document, wrote a<br />

message on it, and sent it<br />

to hi s boss. His boss<br />

wrote a reply, and sent it<br />

back, attached to some other<br />

work. Later, the two realised<br />

they had inadvertently in vented<br />

a new communication tool.<br />

Thanks to a 3M policy of<br />

encouraging its employees to spend up to I 5 per<br />

cent of their time working on personal projects, Fry<br />

was able to concentrate on developing hi s idea,<br />

and, after eighteen months, presented it to the<br />

marketing department. As he had come up with a<br />

product that nobody realised they needed, the<br />

marketers needed some persuading. For a start, they<br />

had no idea how to test market it. Indeed, when it<br />

86


was test marketed in four US cities in 1977, the<br />

results were not good. However, some stores had<br />

seen extremely high sales. It turned out these were<br />

at places where samples had been given away free<br />

- al lowing people to try the<br />

product first.<br />

This persuaded 3M to<br />

launch a heavy<br />

consumer sampling<br />

campaign. The results<br />

showed that 90 per cent<br />

consumers who had tried Post-it® Notes<br />

said they would buy them. Soon after, in 1980, 3M<br />

launched the product nationwide in the US and<br />

followed with a launch into Europe.<br />

THE PRODUCT<br />

Nowadays, there is a lot more to the Post-it® Brand<br />

than yellow squares of sticky paper. There is now<br />

an entire product pmtfolio underthe Post-it® Brand<br />

name, offering a range of time saving solutions to<br />

meet various needs in the office and home.<br />

The original Post-it® Notes now come in square<br />

or rectangle-shaped, large or small format, pastel or<br />

neon colours, in pads, printed cubes or dispensers.<br />

Post-it® Flags evolved from the original Postit®<br />

Note idea and were launched in <strong>Australia</strong> in<br />

1988. Rather than being used as a communication<br />

tool, 3M found that some consumers were ripping<br />

up their Notes and using them to mark specific<br />

pages. With the introduction of Post-it® Flags, the<br />

task of organising, marking, colour coding, tabbing<br />

and filing paperwork became a whole lot easier.<br />

Post-it® Easel Pads turn walls into writing<br />

surfaces. They are giant sheets that can be stuck<br />

and re-stuck on walls without leaving traces, and<br />

are ideally used in group work sessions and<br />

brainstorms.<br />

Post-it® Memoboards are designed to keep<br />

documents within handy reach and important<br />

information within view without needing drawing<br />

pins or magnets to position them.<br />

Post-it® Cover-up and<br />

Labelling Tapes are white ';---: -':.-- c:c -:-::::<br />

repositionable adhesive tape, "'<br />

used for correcting<br />

documents or to cover<br />

sections before photocopying.<br />

Although the core<br />

business in the original<br />

Camuy® Yellow colour note<br />

remains strong, 3M is seeing , .,<br />

a lot of growth with other<br />

0<br />

Post-it® Products.<br />

RECENT DEVELOPMENTS<br />

The introduction of Post-it®<br />

Pop-up Notes is one of the biggest<br />

developments of the Postit®<br />

concept in recent<br />

years. Pop-up Notes are<br />

easy to use with one<br />

hand. When a single note<br />

is pulled out, another<br />

pops up ready for use.<br />

They come in a variety<br />

of dispensers, including a<br />

sturdy, weighted design that is<br />

less likely to 'walk' from the desktop<br />

than a normal pad of Post-it®<br />

Notes.<br />

The latest addition to the Postit®<br />

Branded Note stable is a range<br />

of products called "Super Sticky."<br />

Post-it® Notes were originally<br />

designed for use on paper based<br />

items, however due to our desire to<br />

place them on all kinds of smfaces like<br />

computer monitors, doors,<br />

telephones, car dashboards<br />

and household<br />

appliances, a note with 'more<br />

stick' was required. Post-it® Super<br />

Sticky has a new adhesive<br />

technology that provides greater<br />

adhesion to vertical surfaces like<br />

those mentioned above while still<br />

allowing for multiple clean removals.<br />

PROMOTION<br />

When Post-it® Notes were first<br />

launched, the dilemma of how to<br />

market a product nobody knew<br />

they needed was to turn to<br />

sampling. That way, people could<br />

see the benefits for themselves. After the success<br />

of large-scale sampling in the US , the UK was used<br />

as a test market in 1981 , with Post-it® Notes<br />

flooding London's business districts. They were<br />

received just as enthusiastically and the initiative<br />

spring-boarded the product's launch across<br />

<strong>Australia</strong> in 1984.<br />

More recently, 3M has used advertising in bold<br />

campaigns positioning Post-it® Brand as the brand<br />

of preference in terms of quality, leadership and<br />

emotional value to the end user. Now that there are<br />

several other repositionable note competitor brands,<br />

3M aims to invest in the integrity and 'miginalleader'<br />

position of its Post-it® Brand.<br />

Backing the promotional campaigns and product<br />

innovations such as Super Sticky and the Premium<br />

?;.,--------:--~==~-:o----...;;or----------------,<br />

ColourNoterange, is 3M's extensive use of<br />

market research. User interviews and<br />

focus groups are used to shed<br />

light on how people use the<br />

product. Recent research<br />

commissioned to gather<br />

information about colour<br />

preferences, for example,<br />

told 3M how hundreds of<br />

users rated and used<br />

different colour palettes.<br />

BRAND VALUES<br />

The Post-it® Brand promise is to provide products<br />

that deliver fast, friendly, repositionable<br />

communication and organisation tools to help get<br />

the job done.<br />

They are designed to meet specific needs, such<br />

as not forgetting anything, accessing information,<br />

communicating quickly and managing the paper<br />

trail.<br />

As the original brand in the<br />

repositionable notes sector, 3M<br />

attaches great importance to the<br />

integrity of its Post-it® Brand. The<br />

brand that appears on the<br />

packaging of every Post-it® Note<br />

is a symbol of reliability, quality and<br />

innovation. 3M has a tradition of<br />

innovation which is second to<br />

none and this value is strongly<br />

reflected in its most famous brand.<br />

For further information on the<br />

Post-it® Brand in <strong>Australia</strong>, contact 3M <strong>Australia</strong><br />

on 136-136 or access the web at www.3M.com.au.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

POST-IT®NOTES<br />

0 The formula for making the adhesive<br />

on Post-it® Notes is a closely guarded<br />

secret at 3M. Only a handful of<br />

scientists at the company know it.<br />

0 Over 400 Post-it® Note products are<br />

now sold in over 200 countries.<br />

0 The most common place to find a Postit®<br />

Note in an office is on a computer.<br />

0 A Post-it® Note travelled 4,800<br />

kilometres, through all weathers,<br />

attached to the back of a van.<br />

0 The original test marketing name of<br />

Post-it® Notes was the less catchy<br />

'Press and Peel Notes'.<br />

0 In Japan and China, Post-it® Notes are<br />

made in nruTow downwru·d stTips, to<br />

accommodate the writing styles.<br />

0 The most populru· Post-it® Note colour<br />

is ctmently neon pink.<br />

87


THE MARKET<br />

The <strong>Australia</strong>n milk market is worth<br />

approximately $2.8 billion a year. National<br />

Foods Limited leads both the white milk<br />

market and the flavoured milk market with<br />

38.2 per cent and 41.2 per cent volume<br />

shares respectively.<br />

There are four major segments in the<br />

<strong>Australia</strong>n milk market, based on<br />

butterfat content. 'Creamy' refers to<br />

milks with morethan4.2 percent fat while<br />

'milk' or 'regular' milk has a minimum<br />

requirement of3.2 per cent fat. 'Reduced<br />

fat' milk has less than 1.5 per cent fat<br />

and 'no fat' has less than 0.15 per cent<br />

fat.<br />

The average <strong>Australia</strong>n d1inks 96 litres of milk<br />

per annum, with 56 per cent of this being regular<br />

milk. Per capita consumption varies greatly between<br />

States, with South <strong>Australia</strong>ns consuming the most.<br />

Tasmanians consume the most regular milk per<br />

capita ( 66litres) and the most reduced fat milk (29<br />

litres). Queenslanders drink the most no fat milk<br />

per capita (8liu·es) and South <strong>Australia</strong>ns m·ink the<br />

most flavoured milks (25liu·es).<br />

ACHIEVEMENTS<br />

The Pura range commands 19.4 per cent volume<br />

share of total fresh white milk and dominates the<br />

reduced fat milk segment with 24.3 per cent volume<br />

share. Pura is the tenth highest performing grocery<br />

brand in <strong>Australia</strong> (Aztec 2003), making it the fourth<br />

largest food brand.<br />

Pura is the number one branded milk player in<br />

grocery with 16.6 per cent volume share of fresh<br />

white milk. Pura Light Start is <strong>Australia</strong>'s biggest<br />

selling reduced fat milk with a grocery<br />

volume market share of 19 per cent. Pura<br />

Tone is the nation's fastest growing no fat<br />

milk and the only brand of fresh white milk<br />

to be recommended by Weight Watchers.<br />

Leading the industry with innovation, National<br />

Foods launched PET recyclable milk bottles onto<br />

the <strong>Australia</strong>n milk market in December 1999. The<br />

1.1 litre recyclable bottle provides the benefit of<br />

pack clarity without the food safety issues of glass.<br />

Today Pura Milk, Pma Light Start, Pura Tone, Pura<br />

Gold and new Pma Boost are sold in this pack.<br />

National Foods owns some of <strong>Australia</strong>'s<br />

favourite, market-leading flavoured milk brands.<br />

Farmers Union Iced Coffee is <strong>Australia</strong>'s number<br />

one selling flavoured milk brand. Big M is the market<br />

leading flavoured milk in Victoria with a 61 per cent<br />

share, and is the largest flavoured milk brand on<br />

the east coast. Masters is the market leading<br />

flavoured milk brand in WA with a 60 per cent share.<br />

Classic leads Tasmania with 70 per cent market<br />

share. In South <strong>Australia</strong>, the brand is also strong<br />

with 22 per cent market share, second only to<br />

Farmers Union Iced Coffee.<br />

HISTORY<br />

The Pura brand was established in 1934<br />

when German farmer Albert Siebel<br />

purchased a dairy in Preston, Victoria and<br />

named it the Pura Dairy. From a one-cart<br />

dairy delivering to only a few streets, Pura<br />

grew to become the best known milk<br />

brand in Victoria. By 1964, Pura Dairy<br />

supplied 32 per cent of Melbourne's milk.<br />

In 1991 , the Pura Dairy combined with<br />

other food related entities to form National<br />

Foods Limited. Initially the company<br />

consisted of a number of dairy, juice and<br />

salt packaging businesses but it is now<br />

---~:'1 firmly focused on the dairy industry with<br />

a portfolio of leading brands in the milk,<br />

fresh dairy foods and specialty cheese markets.<br />

Today, National Foods is <strong>Australia</strong>'s largest and<br />

only national fresh milk processor, with an annual<br />

turnover in excess of $1.2 billion. It is li sted on the<br />

<strong>Australia</strong>n Stock Exchange and has production<br />

facilities and sales offices in every State.<br />

THE PRODUCT<br />

Pura offers the most extensive range of exciting,<br />

contemporary and nutritious milk products to meet<br />

the needs of all <strong>Australia</strong>ns.<br />

With its combination of natural vitamins, minerals<br />

and calcium, and containing less than 4 per cent<br />

fat, Pura Milk provides nourishment for the whole<br />

family.<br />

Pura Light Start, with only 1 per cent fat and 99<br />

per cent taste, offers healthy nourishment without<br />

compromising on taste. Just one glass of Pura Light<br />

Start provides nearly half of daily calcium<br />

requirements and the fresh taste makes it the<br />

preferred reduced fat milk in <strong>Australia</strong>. It has the<br />

tick of approval from the National Heart Foundation.<br />

There is no compromise on taste with Pura Tone.<br />

The brand combines no fat with a delicious, creamy<br />

88


flavour. Pura Tone is 40 per cent higher in both<br />

protein and calcium than regular milk, and offers<br />

the added benefit of 'no cholesterol.' It also has<br />

the Heart Foundation tick on every pack and is<br />

endorsed by Weight Watchers.<br />

Bone health has never been so important with<br />

<strong>Australia</strong>'s rapidly ageing population. In addition<br />

to calcium, Pura Boost contains Vitamin D and<br />

phosphorus - a unique combination of bone<br />

building nutrients designed to promote optimal<br />

bone strength. Ultra-high in calcium and low in fat,<br />

Pura Boost provides the natural benefits of dairy<br />

calcium and more with a delicious milk flavour.<br />

Pura Gold is the extra creamy milk that tastes<br />

deliciously rich. Pura Gold offers a creamy milk taste<br />

and is great for creamy coffee and baking.<br />

Pura Cafe makes a good coffee great. It is the<br />

milk developed exclusively to meet the specific and<br />

unique needs of discerning coffee lovers.<br />

Pura Classic is a distinctive brand of flavoured<br />

milk which is well known for its strong, smooth and<br />

real fl avours. Pura Classic is National Foods' only<br />

flavoured milk brand available in all States. There<br />

are 11 different Classic flavours available including<br />

two light products. A selection of these flavours is<br />

available in each State.<br />

Each year, <strong>Australia</strong>n flavoured milk drinkers<br />

consume in excess of 22 million litres of Farmers<br />

Union Iced Coffee. The Farmers Union Feel Good<br />

brand appeals to the health conscious consumer<br />

with its range of! ow fat flavoured milks that contain<br />

no added sugar.<br />

RECENT DEVELOPMENTS<br />

Pura Boost, the latest addition to the Pura brand,<br />

was launched in Western <strong>Australia</strong> in October 2002.<br />

This ultra-high calcium, low fat milk has captured<br />

over one-third of the growing calcium-enriched<br />

segment in this mar·ket, and is now also available in<br />

New South Wales and South <strong>Australia</strong>. The Pura<br />

Boost launch has been supported with a television<br />

commercial, and a heavy sampling and medical PR<br />

campaign that focuses on the impmtance of strong,<br />

healthy bones.<br />

A new television commercial was launched for<br />

Farmers Union Iced Coffee in August 2003. It<br />

features a crane driver going to extreme lengths to<br />

get his Far·mers Union Iced Coffee: 'It's a Farmers<br />

Union Iced Coffee or it's nothing'.<br />

The Masters Cows are back! A new Masters<br />

television commercial went to air in Western<br />

<strong>Australia</strong> in September 2003. It features the Masters<br />

cows working in a mechanics workshop called<br />

'Cowboys & Engines'.<br />

Big M has seen the launch of new products,<br />

new packaging and a new campaign. In October<br />

2003, Big M Light Chocolate and Iced Coffee<br />

var·iants were launched. These products ar·e 99 per<br />

cent fat free. New packaging maintains the boldness<br />

of the Big M logo, with a more vibrant look and<br />

feel.<br />

Finally, a new campaign was launched for Big M<br />

based ar·ound the idea that people feel as though<br />

they can do anything after<br />

consuming Big M<br />

flavoured milk. The<br />

commercials always<br />

feature a funny twist, and<br />

the tag line is " THINK<br />

BIG.. but not too big" .<br />

In line with the Classic<br />

promise and<br />

consumer interest in new<br />

flavours, French Vanilla<br />

Cappuccino was<br />

introduced in February<br />

2003. It is now one of the<br />

top selling Classic<br />

flavours nationally. The Classic packaging has been<br />

updated to strongly communicate<br />

the appetite appeal and the<br />

distinctiveness of each flavour<br />

variant. The new packaging<br />

maintains the strength of the<br />

Classic brand but offers a modern<br />

twist.<br />

PROMOTION<br />

National Foods invests in a broad range of<br />

adve1tising media to suppo1t the brands and build<br />

Waist not.<br />

brand values. Above-the-line media has seen<br />

contemporary television campaigns developed for<br />

Pura Light Start, Pura Tone, Pura Boost, Big M,<br />

Far·mers Union Iced Coffee, Classic and Masters.<br />

Pura Milk is the naming rights sponsor of<br />

<strong>Australia</strong>'s four day<br />

domestic cricket<br />

competition, the Pura<br />

Cup. Far·mers Union Iced<br />

Coffee and Masters<br />

sponsor AFL teams<br />

across <strong>Australia</strong><br />

including the Adelaide,<br />

Port Adelaide, West Coast<br />

Eagles and Geelong<br />

Football Clubs. In Rugby<br />

League, Pura Milk<br />

sponsors the Newcastle<br />

Knights and also has a<br />

strong relationship with<br />

NBL's Adelaide 36ers.<br />

National Foods also supports agricultural shows<br />

and lifestyle events such as the 'Melbourne Flower<br />

and Garden Show', 'Sydney in Bloom' and 'Floriade'<br />

in CanbeJTa.<br />

In 1993, Kieren Perkins signed a long-term<br />

sponsorship agreement to endorse Pura Light Start.<br />

This successful union has lead to the brand<br />

affectionately becoming known as 'Kieren' s milk.'<br />

Store level support is a major focus, with onpack<br />

promotions and point of sale displays. Pura<br />

store signage and point of sale material is seen<br />

across the nation in many milk bar·s, convenience<br />

stores and grocery outlets.<br />

BRAND VALUES<br />

Pura milks are founded on the core principles of<br />

freshness and quality. This is summed up clearly<br />

NATIONAL with 'Pure Fresh Pura.' St:rongfamily values<br />

FOODS of wholesome nounshment, trustwoJthiness<br />

"" •nd wellbeing ru-e reflected ;n the b"nd'<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

PURA<br />

0 Pura is Ausu·alia' s only national milk<br />

brand.<br />

0 National Foods has over one-third of<br />

the <strong>Australia</strong>n milk mar·ket- one in three<br />

<strong>Australia</strong>ns consumes a National<br />

Foods product each day.<br />

0 Approximately every fifth bottle or<br />

carton of fresh white milk sold in<br />

<strong>Australia</strong> is Pma.<br />

0 Pura Light Start is <strong>Australia</strong>'s leading<br />

reduced fat milk brand.<br />

89


THE MARKET<br />

Qantas is <strong>Australia</strong>'s leading domestic airline,<br />

operating more than 5,000 domestic flights a week<br />

and serving about 58 destinations in all states and<br />

mainland territories. Qantas operates nearly 540<br />

international flights every week, offering services<br />

to about 77 destinations in 32 countries. The airline<br />

serves major cities in the Asia/Pacific region, the<br />

UK, Europe, Nmth America, South America and<br />

southern Africa.<br />

International Air Transport Association (lATA)<br />

comparisons for the 2002 calendar year show that<br />

Qantas is the world 's I I ' 11 largest airline in terms of<br />

Revenue Passenger Kilometres (RPKs). The Qantas<br />

Group carried nearly 29 million passengers in 2003.<br />

It employs approximately 34,000 people worldwide.<br />

ACHIEVEMENTS<br />

Qantas has a widely acknowledged history of<br />

innovation. As early as 1958, it pioneered a roundthe-world<br />

service, with two Super Constellations<br />

circumnavigating the globe in opposite directions.<br />

In I 979 it was the first airline to introduce Business<br />

Class.<br />

Qantas has twice won the prestigious<br />

Cumberbatch trophy- awarded by the British Guild<br />

of Air Pilots and Air Navigators for safety and<br />

reliability.<br />

Qantas is committed to the highest standards of<br />

corporate social responsibility and is a proud<br />

financial and hands-on suppmter of a wide range<br />

of community, atts and sporting organisations. In<br />

April 2003, Qantas was awarded the inaugural<br />

Queensland Community Foundation Award in<br />

recognition of the company' s ongoing support of<br />

communities in need, with particular mention of<br />

Qantas' efforts following the tragic bombings in<br />

Bali in October2002.<br />

In 2003 Qantas and long-term partner UNICEF<br />

were awarded the <strong>Australia</strong>n Fi nancial<br />

Review Magazine's award for<br />

outstanding lo ng-term<br />

partnership.<br />

HISTORY<br />

Qantas was established by<br />

pioneer aviators Paul<br />

McGinness and Wilmot<br />

Hudson Fysh on their return<br />

from service with the <strong>Australia</strong>n<br />

Flying Corps in World War I,<br />

and grazier, Fergus McMaster.<br />

It was registered in Brisbane on<br />

I 6 November I 920. T he<br />

company takes its name from the<br />

initial letters in the words in<br />

the original registered title -<br />

Queensland and Northern<br />

Territory Aerial Services<br />

Limited. The company began<br />

its operations with joy rides<br />

and air taxi. flights. Regular<br />

scheduled airmail an d<br />

passenger services began<br />

on 2 November 1922, from<br />

Charleville to Cloncurry in<br />

rural Queensland. The<br />

journey of 923 kilometres<br />

took two days with an<br />

overnight stop at Longreach.<br />

In 1919 McGinness and<br />

Hudson Fysh were<br />

commissioned to find suitable<br />

landing grounds for a Great<br />

Britain-<strong>Australia</strong> air race. After<br />

completing the survey in a<br />

Model T Ford, they were<br />

convinced that air travel was the<br />

ideal alternative for crossing<br />

sparsely populated country<br />

where roads were almost nonexistent.<br />

McGinness soon<br />

pursued other interests, Fysh -<br />

later Sir Hudson - remained with the<br />

company for 46 yem·s. He was knighted<br />

in 1953 and retit-ed as Chainnan in 1966.<br />

Qantas has played a key role in the<br />

development of <strong>Australia</strong>n and<br />

international aviation. In 1928 it<br />

operated the first flying doctor service<br />

for the Reverend John Flynn' s<br />

<strong>Australia</strong>n Inland Mission. In 193 1<br />

Qantas made its first link with Imperial<br />

Airways (a predecessor<br />

of British Airways) when it<br />

catTied mail to Datwin as patt<br />

of an experimental <strong>Australia</strong>­<br />

UKservice.<br />

The yew· 1934 saw the<br />

formation of Qantas<br />

Empire Airways Limited,<br />

with Imperial Airways<br />

holding 50 per cent. The<br />

two airlines began regular<br />

<strong>Australia</strong>-UK services in<br />

December 1934, initially<br />

cm-rying only mail.<br />

A Qantas aircraft flew<br />

_ _, ••••• IJ:~....<br />

overseas fo r the first time in<br />

February 1935 when a DH86<br />

operated the Brisbane to<br />

Singapore section of the<br />

service, and the first Qantas<br />

overseas passenger left<br />

Brisbane for Singapore in<br />

April 1935. Four-engined<br />

Shorts 'Empire' flying boats<br />

brought new levels oflux.ury<br />

and comfort to the <strong>Australia</strong>­<br />

UKservicefromJuly 1938.<br />

THE PRODUCT<br />

All Qantas aircraft are<br />

maintained to the hi ghest<br />

standards and are flown by<br />

some of the world's most<br />

experienced pilots. Qantas<br />

also undettakes engineering,<br />

pilot and cabin crew training<br />

for customer airlines.<br />

Qantas' total fleet<br />

currently includes nearl y<br />

200 aircraft, with a core fleet<br />

of about 133 jet aircraft used<br />

on international and main<br />

national routes.<br />

With more than 3.8 million<br />

members, the Qantas Frequent<br />

Flyer Program is th e largest<br />

<strong>Australia</strong>n-based airline loyalty<br />

program. Frequent Flyer points can<br />

be redeemed for air travel on Qantas<br />

and pmtner oneworld airlines, hotel<br />

stays, and car hire companies.<br />

The Qantas Club progrmn provides<br />

members with access to a network of<br />

Qantas Club and associated lounges in<br />

<strong>Australia</strong> and m·ound the world. The<br />

lounges provide a quality environment for passengers<br />

to relax or do business before flying.<br />

In just five years, oneworld has established itself<br />

as the most global of the world's airline allimces. Cun-ent<br />

members comprise nine of the world's leading airlines<br />

- Qantas, Aer Lingus, American Airlines, British<br />

Airways, Cathay Pacific, Finnair, Iberia, LanChile and<br />

Swiss. The alliance provides services to some 575<br />

destinations in around 135 countries. In 2003, oneworld<br />

member airlines carried nem·ly 220 million passengers<br />

(equivalent to one in 30 of the world's population),<br />

flew some 2.25 billion miles (equivalent to around 12<br />

return trips to the sun) and operated around three<br />

million flights.<br />

90


The alliance's members work together to make<br />

travel across their combined networks as smooth<br />

as possible, through extensive codesharing and<br />

by locating close to one another at key connecting<br />

airports wherever possible. For more information,<br />

see www.oneworld.com<br />

Qantas Freight generates revenue in excess of<br />

A$700 million per annum. Qantas has been carrying<br />

freight since the airline' s inaugural service in<br />

November I 922 and uplifting international airmail<br />

since the airline's first international flight between<br />

Darwin and Singapore in February I 935.<br />

Freight capacity has been further increased on<br />

the Qantas network with the stmt-up of <strong>Australia</strong>n<br />

Air lines, an international, all economy class, full<br />

service CaiTier, in October 2002. <strong>Australia</strong>n Airlines<br />

flies to destinations in Japan as well as Singapore,<br />

Hong Kong, Indonesia and Malaysia.<br />

RECENT DEVELOPMENTS<br />

Qm1tas has invested in a $385 million dollar overhaul<br />

of its International Business Class, featuring the<br />

state-of-the-art sleeper seat, Skybed, and a range<br />

of other product and service<br />

enhancements that have set new<br />

stand ards for business travel.<br />

Skybed was designed by <strong>Australia</strong>n<br />

industri al designer Marc Newson<br />

and developed by USA-based<br />

manufacturer BE Aerospace in<br />

association with Qantas<br />

engi neering. It offers a sleek,<br />

contemporary design and a<br />

range of innovative features<br />

that provide maximum comfort,<br />

conveni e nce a nd flexibility for<br />

customers.<br />

In em·Iy 2004, Skybed won a ,<br />

Good Design Award from the<br />

Chicago Athenaeum Museum of<br />

Architecture and Design - one of the<br />

world's oldest and most prestigious<br />

international design awards.<br />

Qantas has also introduced a selfservice<br />

Business Bm·, again designed by<br />

Marc Newson, that offers a range of<br />

premium snacks and beverages, in<br />

addition to the regulm· meal services.<br />

A new mood lighting system has been<br />

designed exclusively for Qantas and is<br />

the first of its kind in the skies.<br />

Customers can also take advantage of<br />

the Qantas Short Message Service<br />

(SMS) system, also launched wi th the<br />

airline' s new International Business<br />

Class. The new Qantas system allows<br />

customers in all classes to send<br />

messages using their in-seat telephone<br />

handset, and also to receive replies - a<br />

service that is a world first. The service<br />

is being installed progressively on the<br />

airline's internationa1747-400s. Inflight<br />

customers can send messages of up to<br />

160 characters to any SMS compatible '--------~'--=~-------......~--='----___j<br />

mobile phone or email address. People receiving<br />

the messages on the ground can reply to the<br />

passenger inflight, using the normal reply facility<br />

on either their mobile telephone or e-mail function,<br />

with the reply automatically routed back to the<br />

originating seat. The new service gives customers<br />

access to fami ly, friends and business while flying.<br />

Other enhancements include new catering<br />

options designed by <strong>Australia</strong>n chef Neil Perry with<br />

health and express meal options, a "silver service"<br />

style of meal delivery, as well as a ran ge of<br />

refreshments available throughout the flight and<br />

prepared to order.<br />

Busi ness and First Class customers now also<br />

enjoy new luxury amenity kits. Qantas staff began<br />

wearing distinctive new uni forms designed by<br />

<strong>Australia</strong>n fashion designer Peter Morrissey<br />

in 2003. The uniforms m·e contemporm-y and<br />

stylish as well as durable, flexible and<br />

comfmtable. Balarinji Design Studio made<br />

an important contribution to the overall<br />

design with John a nd Ros Moriaty<br />

developing a new textile design, Wirriyarra.<br />

Balarinj i is the company behind the<br />

company's distinctive Aboriginal<br />

painted aircraft.<br />

BRAND VALUES<br />

Qantas is one of <strong>Australia</strong> ' s<br />

leading brands, with the<br />

kangm·oo symbol representing a<br />

proud history focused on reliability,<br />

safety, engineering excellence and<br />

customer service. These values have recently been<br />

recognised by many awards:<br />

Airline of the Year for 2004, leading international<br />

aviation magazine Air Transpmt World. Best Airline<br />

to the Pacific, New Zealand and Austral ia, the<br />

prestigious UK Travel Weekly Globe Awards. Best<br />

Airline (International, Domestic and Regional) and<br />

special awm·d for Outstanding Contribution by a<br />

Company, National Travel Industry Awm·ds (2003)<br />

and Best Airline (2002 and 1999). World Airline<br />

Entettai.nment Association Avion Awm·ds for Best<br />

Overall Inflight Entertainment (2003 and 2002).<br />

Wholesaler of the Year (Qantas Holidays), National<br />

Travel Industry Awm·ds (2003 and I 997-200 I). Best<br />

Cargo Airline to <strong>Australia</strong> by Air Cm·go News (2003 ).<br />

Best International Affi nity Card for the Qantas<br />

Telstra Visa Cm·d, Freddie Awm·ds (2002 and 2000).<br />

Best Airline in Australasia/Pacific, OAG UK Airline<br />

of the Year Awards (2002 and 2000). Banksia<br />

Environment Award to Qantas and Yisy for<br />

packaging and recycling of in-flight meals (2002).<br />

Airline with the best corporate image in both<br />

domestic and international categories by <strong>Australia</strong>n<br />

National Business Bulletin magazine (200 I).<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

QANTAS<br />

0 On average, a oneworld flight depm·ts<br />

or lands somewhere in the world every<br />

five seconds.<br />

0 A Qm1tas engineer invented the 'black<br />

box.' flight recorder.<br />

0 Hollywood superstar John Travolta<br />

became a Qantas staff member in<br />

June 2002, m1d em·ned hi s 747 wings.<br />

0 Qantas is the oldest continually<br />

operating airline in the world.<br />

0 The design on Wunala Dreat11.ing- the<br />

red Qantas 747-400 painted with an<br />

Aboriginal design- includes 1324<br />

irregulm· dots.<br />

0 A Qantas engineer invented the<br />

inflatable safety slide.<br />

91


HOME LOANS<br />

THE MARKET<br />

Buying a house is the biggest single<br />

purchase most people make and ,.,:;·,)':.,..,.,,:.._<br />

<strong>Australia</strong>'s rate of home ownership is<br />

among the world's highest. Currently,<br />

more than 70 per cent of the country's<br />

adult population is either buying a home<br />

or owns it outright.<br />

RAMS Home Loans was launched as<br />

a retail brand in 1995. Its prime objective,<br />

from the outset, was to give home buyers<br />

a competitive source of home finance.<br />

RAMS offered a flexible, customeroriented<br />

alternative to that provided by<br />

the banks which, at the time,<br />

monopolised the market and offered few<br />

if any loan options.<br />

Today, the <strong>Australia</strong>n residential<br />

mortgage market is one of the most<br />

competitive and innovative in the world.<br />

Since deregulation of the finance<br />

industry in the 1990s, mortgage<br />

specialists like RAMS Home Loans have .._--"-"-".::...:.t:'-"----"-.:__-"'"""'-'-----....::..:....=---...:!."---==~'----=<br />

excelled in this market by introducing<br />

unique and innovative products and g1vmg<br />

customers the options and service they have<br />

always wanted.<br />

ACHIEVEMENTS<br />

RAMS Home Loans has more than 70,000<br />

customers and a loan book of close to $7 billion.<br />

The Sydney-based company is now one of<br />

<strong>Australia</strong>'s largest non-bank home loan originators.<br />

The company prides itself on constant<br />

innovation, as expressed by the company's motto:<br />

A Better Way. This reflects its vigorous pursuit of<br />

a product portfolio relevant to customer needs,<br />

offering greater choice, more flexibility and easier<br />

access across the different sales channels.<br />

RAMS funds its loans through securitisation<br />

and was among the first in the <strong>Australia</strong>n and<br />

European markets to issue securities backed by<br />

<strong>Australia</strong>n residential mortgages. To date the<br />

company has undertaken 13 such issues. All<br />

RAMS' senior bonds have been awarded a triple­<br />

A rating by the rating agency Moody's - the<br />

highest attainable.<br />

HISTORY<br />

RAMS Home Loans was founded by John<br />

Kinghorn and an association of dynamic individuals<br />

with expertise in marketing and finance. The<br />

<strong>Australia</strong>n entrepreneur took the bold step of<br />

entering the home loans market when it was<br />

completely dominated by <strong>Australia</strong>'s big four banks.<br />

By 2000, RAMS was the only mm1gage supplier<br />

to originate, service and fund all of its loans within<br />

<strong>Australia</strong>.<br />

RAMS Home Loans initially operated through<br />

its call centre, 13-RAMS (13-7267), its website<br />

www.rams.com.au and a team of mobile home loan<br />

managers. However, in 2000 RAMS recognised the<br />

growth of alternative distribution channels and<br />

their expected impact on the home loan market. To<br />

take advantage of this new development, the<br />

company entered the mortgage broker market and<br />

set up a dedicated business channel to support<br />

and service mortgage brokers selling RAMS' home<br />

loans.<br />

In just three years, the channel<br />

has expanded rapidly and,<br />

through its relationships with the<br />

major broking groups in<br />

<strong>Australia</strong>, now delivers a<br />

significant share of RAMS' total<br />

business volume. The rapid<br />

growth reflects RAMS' ability to<br />

provide a demanding, competitive<br />

market with the very highest<br />

levels of service and product<br />

innovation.<br />

RAMS Home Loans is now<br />

poised to extend its reach into the<br />

high streets of <strong>Australia</strong>, building<br />

on its existing e-sales (telephone/<br />

Internet), mobile and mo11gage broker<br />

distribution channels.<br />

THE PRODUCT<br />

RAMS has always been an innovator in<br />

mortgage products and service. The<br />

company regularly reviews its range to<br />

ensure it remains highly competitive<br />

while providing real choice and value and<br />

meeting the needs of all home loan<br />

customers.<br />

At the time of publication, early 2004,<br />

the company's loan portfolio includes:<br />

RAMS SmartWay Home Loan: an<br />

award-winning 'all-in-one' home loan<br />

RAMS Better Offset Home Loan:<br />

enabling customers to save interest<br />

every day with a full I 00 per cent offset<br />

RAMS Basic Line of Credit Home<br />

Loan: providing customers with access<br />

to their available credit at low interest<br />

rates<br />

RAMS Easy Start Home Loan: a<br />

discounted variable rate for the first three years of<br />

the loan<br />

RAMS Low Doc Home Loans: a choice of<br />

two home loans- a fully featured standard loan or<br />

an all-in-one loan -helping customers to obtain a<br />

home loan with a minimum amount of paperwork<br />

and fuss<br />

RAMS Basic Home Loan: a no-frills, lowrate<br />

loan.<br />

A number of value-added features are avai lable<br />

across the po11folio including redraw, I 00 per cent<br />

offset, loan splitting, pm1ability, on-line access and<br />

lifestyle options.<br />

Through its Homextra range, RAMS also offers<br />

92


a range of complementary products and<br />

services. These include credit<br />

protection insurance, silver and gold<br />

RAMS credit cards, and alliances with<br />

two in -house (but separate)<br />

companies that offer property<br />

conveyancing and investment<br />

property consultation.<br />

RECENT DEVELOPMENTS<br />

In 2002 RAMS opened two Home Loans Centres in<br />

Sydney on a trial basis. They proved extremely<br />

popular with customers who appreciated the ability<br />

to discuss their needs face-to-face with a RAMS<br />

Home Loans Manager.<br />

The trial clearly demonstrated the potential of<br />

this style of customer service to enhance the reach<br />

of RAMS Home Loans products. This led to a<br />

comprehensive review ofthe business and in early<br />

2003, RAMS announced the rollout of a new<br />

network of franchise RAMS Home Loans Centres.<br />

The Centres operate from major suburban and<br />

regional locations across <strong>Australia</strong> and significantly<br />

increase the coverage and accessibility of RAMS'<br />

products.<br />

Run as franchises, the Centres are owned and<br />

operated by successful local lenders working in<br />

partnership with RAMS Home Loans. They are<br />

fully supp011ed by the strength of the RAMS brand.<br />

The RAMS franchise model is unique in the<br />

marketplace and places the emphasis on customer<br />

retention and ongoing customer relationships. This<br />

is consistent with RAMS' commitment to ensuring<br />

the highest standards of customer service, not just<br />

at the beginning but throughout the life of a loan.<br />

The Home Loans Centres complement and<br />

enhance the existing sales channels and<br />

demonstrate RAMS' commitment to growing its<br />

presence in the highly competitive home loan<br />

market.<br />

The high level of interest received from potential<br />

franchisees is a positive endorsement of the RAMS<br />

brand and of the way the company does business.<br />

As a result, RAMS is cmTently tracking<br />

well ahead of its plan to open some 50<br />

Centres across <strong>Australia</strong> by the end of<br />

2004.<br />

In 2002 RAMS also announced a<br />

strategic relationship with Unisys, the<br />

worldwide information technology<br />

services and solutions company. Unisys<br />

provides RAMS with a market-leading<br />

technology infrastructure and customer<br />

servicing to support the needs of the growing<br />

business. The relationship enables RAMS to offer<br />

customers an enhanced quality of service as well<br />

as improving RAMS' speed to market and<br />

operational efficiencies.<br />

PROMOTION<br />

RAMS uses television, radio and other media to<br />

communicate with its target markets. RAMS has<br />

adve11ised extensively on both television and radio<br />

and achieved an extraordinarily high level of recall<br />

for its campaigns. These use real RAMS<br />

customers, talking about their home ~""'":~--l!!!!!lll ....<br />

loan experiences with RAMS and<br />

what they like about RAMS' people<br />

and products, to illustrate the core<br />

message of RAMS -A Better Way.<br />

The iconic 'Raymond the Ram' and<br />

the fluffy RAMS sheep slippers are used to<br />

create unique, readily recalled imagery that<br />

communicates the warm and friendly brand values<br />

synonymous with RAMS Home Loans.<br />

The RAMS brand is fm1her reinforced by the<br />

presence of the franchise Home Loans Centres and<br />

their marketing activities within their local<br />

communities. This will continue to grow as the<br />

network expands over the next 18 months.<br />

Through its sponsorship program, RAMS Home<br />

Loans actively suppm1s a wide range of community<br />

organisations and RAMS Home Loans Centres are<br />

encouraged to participate at a local level.<br />

RAMS is a major sponsor of Surf Educate<br />

<strong>Australia</strong>, a company dedicated to teaching children<br />

of both primary and high school age surf awareness<br />

and safety skills. This practical community smf<br />

education program is coordinated through schools<br />

in New South Wales, Queensland, Victoria and<br />

Western <strong>Australia</strong>.<br />

RAMS is also the naming rights sponsor of<br />

Athletics New South Wales. By developing and<br />

promoting athletics within the state, Athletics New<br />

South Wales plays an active part in the community<br />

providing programs and competitions that<br />

encourage participation, fitness and a healthy<br />

lifestyle, whilst helping many<br />

talented young individuals<br />

achieve their sporting dreams.<br />

A number of smaller<br />

organisations across <strong>Australia</strong><br />

also benefit from the RAMS<br />

sponsorship program.<br />

BRAND VALUES<br />

In less than ten years, RAMS<br />

Home Loans has become one of<br />

<strong>Australia</strong>'s most trusted financial<br />

services brands. Independent<br />

research shows that RAMS<br />

consistently achieves high levels<br />

of awareness and consideration<br />

and compares strongly with the banks, which<br />

sometimes have over 100 years of history in the<br />

market.<br />

RAMS aims to help its customers achieve lasting<br />

security through home ownership, by providing<br />

unrivalled service in every aspect of home-related<br />

finance. RAMS offers consumers 'A Better Way'<br />

by tailoring its products to suit their exact needs<br />

and recruiting staff and franchisees who can<br />

demonstrate their commitment to<br />

the brand and to RAMS<br />

customers.<br />

The RAMS brand is seen<br />

as warm, friendly, innovative,<br />

straight-talking and easy to<br />

deal with. This message is<br />

consistently reinforced<br />

throughout all RAMS marketing<br />

communications - from loyalty programs for<br />

existing customers to radio and other adve11ising<br />

to potential new customers.<br />

The achievements of the RAMS brand, its staff<br />

and business partners have been recognised by<br />

many industry awards; in the past two years, RAMS<br />

has won a total of S <strong>Australia</strong>n Mm1gage Awards.<br />

In 2003, RAMS won 'Best Brand' and 'Most<br />

Effective Internet Presence' and in 2002 won 'Best<br />

Retail or Franchise Operation', 'Best Advertising'<br />

and 'Sales Manager of the Year' .<br />

I<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

RAMS<br />

0 The RAMS website www.rams.com.au<br />

receives over 100,000 hits a month and,<br />

in 2002, was ranked as the second most<br />

visited <strong>Australia</strong>n mo11gage industry<br />

site by <strong>Australia</strong>n Mortgage<br />

Professional.<br />

0 In October 200 I, RAMS issued<br />

<strong>Australia</strong>'s largest ever domestic<br />

Residential Mm1gage Backed<br />

Seetuities (RMBS) transaction - an<br />

A$1.45 billion bond issue. In August<br />

2003, RAMS also issued <strong>Australia</strong>'s<br />

largest ever Euro RMBS transaction - a<br />

US$1.1 billion (equivalent) bond issue.<br />

0 RAMS is an acronym meaning<br />

'Registered <strong>Australia</strong>n Mm1gage<br />

Securities'. It is one of <strong>Australia</strong>'s<br />

largest p1ivately owned <strong>Australia</strong>n<br />

finance companies.<br />

0 RAMS was the first financial<br />

institution to use an alpha-numeric<br />

phone number to create brand recall<br />

and ease of response - '13 RAMS,<br />

that's 13 7267'.<br />

93


ALWAYS RELY ON<br />

REFLEX<br />

THE MARKET<br />

Rapid advances in technology and the consequent<br />

growth of office and home printers have<br />

consistently enhanced the role of paper in business.<br />

Today, paper is more relevant to consumers than at<br />

any time in its history: <strong>Australia</strong> alone uses more<br />

than 200,000 tonnes of office paper annually- the<br />

equivalent of 80 mill ion individual reams.<br />

Paper has also successfully built on its flexible<br />

support role in businesses and homes. The unique<br />

physical propetties of paper allow people to use it<br />

in highly individual ways making it a very human<br />

technology.<br />

With so many benefits, paper may seem an<br />

obvious product to brand, but when Reflex was<br />

released in 1984, the market was almost<br />

undifferentiated in the minds of consumers.<br />

Reflex changed this thinking with the brand<br />

proposition that papers weren't all the same and<br />

that consistent petformance was relative to quality.<br />

Reflex now leads the office papers market in<br />

<strong>Australia</strong> in terms of both market share and<br />

awareness (close to I 00 per cent across business<br />

and home segments).<br />

ACHIEVEMENTS<br />

On the back of an aggressive marketing campaign,<br />

which included the world's first television<br />

commercials for paper, Reflex was an almost<br />

overnight success. Within two months of its<br />

launch, sales at Associated Pulp and Paper Mills<br />

(APPM) had lifted 172 per cent against the same<br />

quruter in the previous year, with the Reflex brand a<br />

driving influence.<br />

The early years also saw the beginning of<br />

Reflex ' s commitment to meeting chru1ging<br />

consumer needs. Within a year<br />

of its launch, a new range of<br />

Reflex Colours was released.<br />

This spirit of constant<br />

evolution also saw the release<br />

of Reflex Laser for high-speed<br />

equipment in 1991, Reflex<br />

UniJetfor ink jet printers in 200 I,<br />

and new lines including Reflex<br />

35 per cent Recycled in 2002.<br />

HISTORY<br />

Invented in ancient China,<br />

paper is a natural product,<br />

which is recyclable,<br />

biodegradable,<br />

and<br />

manufactmed<br />

from renewable resources. Over<br />

1800 years, it has been refined into<br />

one of the world's most useful tools<br />

for generating and communicating<br />

ideas.<br />

Reflex began life as '127N Copy Paper'<br />

made by APPM at the Burnie Mill in Tasmania in<br />

the eru·Iy 1980s. In 1984, APPM relaunched 127N<br />

Copy Paper as Reflex.<br />

From the beginning, the company was faced with<br />

significant challenges, as copy paper was generally<br />

considered to be a commodity product. For APPM,<br />

this meant communicating Reflex's benefits to a<br />

mru"ket that had previously seldom differentiated<br />

between papers.<br />

The answer was a powerful integrated mru·keting<br />

campaign and for the first time in <strong>Australia</strong>n history,<br />

the office paper industry had a product that<br />

customers were asking for by name.<br />

In 1993, APPM became known as <strong>Australia</strong>n<br />

Paper and is now a subsidiru·y of the PaperlinX<br />

group. Since 1994 Reflex has been<br />

made at the Maryvale Paper Mill<br />

Victoria which is<br />

<strong>Australia</strong>' s largest<br />

paper-making<br />

complex.<br />

With a turnover in<br />

the 2002/3 financial yeru· of<br />

$1.1 billion, <strong>Australia</strong>n Paper and<br />

its suppliers employ more than 1700 full<br />

time workers, and a significant number of others.<br />

THE PRODUCT<br />

Reflex's success wasn ' t simply the culmination of<br />

a clever marketing campaign. It lived up to its<br />

advertising claims.<br />

Reflex has always been extremely reliable - a<br />

feature that has since formed the basis of its<br />

personality. It was a reliable performer, widely<br />

available, and it offered a good level of whiteness<br />

and excellent consistency from ream to ream.<br />

Reflex has always placed a strong emphasis on<br />

quality control, demonstrated in Reflex's 100 per<br />

cent guru·antee. The stringent testing begins when<br />

Reflex is in the paper machine. A processing<br />

scanner automatically measures paper grammage,<br />

thickness, moisture, and colour, 311d feeds the<br />

information to a central computer. Samples from<br />

each finished batch are then tested on latest<br />

technology printers and copiers to ensure<br />

petformance to the required standards.<br />

Another key to the br311d's success has been<br />

Reflex's commitment to change. Eru·ly in its braJ1d<br />

life, Reflex recognized that different papers were<br />

required for different tasks. During the technology<br />

boom, when people began printing and copying<br />

more documents at home and in the office, Reflex<br />

continued to create new products to satisfy<br />

consumer needs.<br />

By 1991, Reflex was available in three different<br />

weights, a rlli1ge of six colours, ru1d specialist<br />

vru·iations for high- and medium-speed laser printing,<br />

94


presentation and archival<br />

use.<br />

Customer service also<br />

remains an important part of<br />

the company ethic through<br />

the Reflex consumer hotline<br />

and branded website.<br />

RECENT DEVELOPMENTS<br />

Reflex continues to be<br />

proactive in identifying<br />

customer needs, and<br />

tailoring products to meet<br />

them.<br />

In 2002, extensive mru·ket and consumer research<br />

into paper usage patterns and attitudes culminated<br />

in the trial and subsequent release of six new Reflex<br />

lines.<br />

Among other things, the research found that<br />

many consumers preferred to print drafts and make<br />

corrections on hard copy. This led to the<br />

introduction of Reflex Draft-an economical, lighter<br />

weight paper ideal for draft documents.<br />

Similarly, research indicated that many<br />

customers were concerned about waste, yet<br />

unwilling to compromise on paper quality. This<br />

resulted in the creation of Reflex 35 per cent<br />

Recycled.<br />

Other new products include Reflex AS (ideal for<br />

memos and notes), Reflex 300-Sheet Handy Pack<br />

(for low volume users), Reflex 700-Sheet Bulk Pack<br />

(for high volume users), and Reflex Presentation<br />

I OOgsm (ideal for proposals, school projects and<br />

other impOitant documents).<br />

New products flow from the evolution of<br />

technology as well as market reseru·ch. Reflex Inkjet<br />

paper is produced in prutnership with a leading<br />

Japanese ink jet paper manufacturer and is designed<br />

to give customers superior results with colour inkjet<br />

printers.<br />

The Reflex pack has also evolved.<br />

Protection from moisture is an essential<br />

function of the Reflex wrapper, and an online<br />

video monitoring system automatically<br />

rejects any packs which fail to meet the<br />

strict tolerances.<br />

In mid 2002, the Reflex packaging design<br />

was reviewed. Shaped by broad consumer<br />

reseru·ch, the new design is simpler and more<br />

strean1lined, yet still instantly recognisable<br />

as Reflex. On-pack information has been<br />

carefully selected and arranged to<br />

convey the pack's contents<br />

as well as the Reflex<br />

guru·antee, consumer hotline<br />

and <strong>Australia</strong>n origin.<br />

To keep the brand at the<br />

forefront of quality, Reflex<br />

has invested more than $300<br />

million in world-class<br />

technology in the MS paper<br />

machine at Mru-yvale Mill.<br />

Reflex also recently<br />

upgraded its website into a<br />

knowledge centre. Awarded<br />

the prestigious Melbourne<br />

Advertising and Design Club<br />

Bronze Prize for Best<br />

Consumer Website in May<br />

2003, the website offers<br />

extensive tips on<br />

creating impressive<br />

documents, printing<br />

photographs at home,<br />

and other ways to<br />

make the most of Reflex<br />

paper.<br />

PROMOTION<br />

Since its launch,<br />

innovative television<br />

advertisements have<br />

been an impmtant prut<br />

of the Reflex mru·keting<br />

strategy. Reflex was the first brand in the world to<br />

advertise office paper through television, and by<br />

promoting the Reflex message- 'always rely on<br />

Reflex' -directly to the public, the advertisements<br />

helped win the hearts and minds of <strong>Australia</strong>n<br />

consumers.<br />

By necessity, the first television commercials<br />

were extremely low budget. The Chairman, which<br />

screened in 1984, was<br />

designed to be quirky and<br />

idiosyncratic to the point<br />

of self-parody. Because<br />

Reflex was a new brand,<br />

the aim was to create a<br />

highly memorable,<br />

branded campaign, and<br />

The Chairman achieved<br />

this- attracting a genuine<br />

cult following.<br />

Also extremely<br />

Never rely<br />

on Jason ...<br />

successful were the 1986<br />

Reflex Action television<br />

commercials- the genesis<br />

of Reflex's famous<br />

'always rely on Reflex'<br />

tagline. Shot before the<br />

advent of digital special effects, the set of<br />

four commercials (including the 'spinning<br />

chair' and 'falling ladder') were visually<br />

stunning, and created a great deal of<br />

awareness of the Reflex braJ1d.<br />

In 1996, Reflex first broadcast the<br />

fan1ous bungee jump advertisement, in<br />

which an office worker soru·s through the<br />

central well of an office building to lift a<br />

pack ofReflex from a deliveryman' s trolley.<br />

It was one of the most popular Reflex<br />

can1paigns, and was brought back for an<br />

encore in 2001 when it once<br />

again achieved excellent<br />

results.<br />

More recently, Reflex<br />

televised a series of<br />

commercials based ru·ound<br />

the premise that people in<br />

·offices might be unreliable,<br />

but it is possible to 'always<br />

rely on Reflex'. Created by<br />

M&C Saatchi, these<br />

advertisements featuring<br />

Jason, Zena and Adam<br />

have won several awards,<br />

including the 2002 Young<br />

Guns award for Best<br />

Direction, two ATV 2003<br />

trophies including Best Humour<br />

and a fmther ATV commendation for Commercial<br />

of the Year.<br />

BRAND VALUES<br />

Reflex understands that paper is an essentially<br />

hum311 and practical technology, and Australi311<br />

Paper has created products designed to match<br />

people's ch311ging needs. The Reflex br311d is<br />

focused on providing customers with the optimum<br />

range of Reflex products to achieve their business<br />

and personal goals.<br />

As an employer of many <strong>Australia</strong>ns, Reflex<br />

strives to be a brand that customers and the wider<br />

community can truly rely on- not just for its high<br />

quality products, but for community support<br />

through projects such as the <strong>Australia</strong>n Paper<br />

Making Tracks Program, developed in prutnership<br />

with the Conservation Volunteers of <strong>Australia</strong>. As<br />

the home of Reflex, the Maryvale paper mill<br />

operates according to strict EPA and community<br />

guidelines and internationally recognised ISO<br />

accreditation.<br />

0<br />

0<br />

0<br />

0<br />

0<br />

0<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

REFLEX<br />

More than 20 billion sheets of Reflex<br />

are made evet-y year. That's about 6<br />

million kilometres, or enough to circle<br />

the world 7 times. Over the life of the<br />

mill, Reflex will produce enough paper<br />

to go to the sun and back!<br />

Reflex ranks with Vegemite, Qantas and<br />

other <strong>Australia</strong>n icons in terms of<br />

brand awru·eness.<br />

Most Reflex is made on a $300 million<br />

paper machine at the Mru·yvale Mill<br />

neru· Traralgon in East Gippsland in<br />

Victoria.<br />

One reel of Reflex paper at the end of<br />

the machine takes about an hour to<br />

make, is 7 metres wide, 45 kilometres<br />

long and can be cut into almost I 0,000<br />

reruns of Reflex.<br />

The M5 machine at the Mru-yvale Mill<br />

has a maximum speed of 900 metres per<br />

minute.<br />

Reflex is continually tested in many<br />

makes of new copiers, printers and<br />

other office equipment to ensure it<br />

meets its high pe1formance standru·ds.<br />

95


THE<br />

ROYAL DOULTON<br />

COMPANY<br />

THE MARKET<br />

Pottery and ceramics are a strong<br />

indicator of the art and lifestyle of a<br />

given age. Indeed, archaeologists rely<br />

on pottery fragments to establish the<br />

level of sophi stication of past<br />

ci viJisations.<br />

Today, consumers are more<br />

demanding and discerning than ever<br />

before.<br />

The rise in home entertainment has<br />

been matched by the introduction of<br />

contemporary, functional tableware.<br />

At the other end of the spectrum, the<br />

decrease in traditional family meals<br />

and rise in solo eating, TV dinners and<br />

convenience foods have seen the<br />

companies extend their casual<br />

tableware ranges.<br />

When it comes to gifts, despite<br />

many alternatives, the cerarnic form is<br />

sought after as offering true qualities<br />

of heritage, traditional craftsmanship<br />

and real, long-lasting value. In fact,<br />

ceramic giftware has enjoyed<br />

considerable growth - gift-giving,<br />

home decoration and investment<br />

being the main motivations.<br />

The key markets worldwide for<br />

premium ceramic tableware are the UK<br />

and Continental Europe, North<br />

America, Asia Pacific and Australasia. In total the<br />

global market is estimated to be wmth more than $4<br />

billion.<br />

ACHIEVEMENTS<br />

The Royal Doulton Company is one of the world's<br />

leading manufacturers and distributors of premium<br />

ceramic tableware and giftware. Its illustrious brand<br />

names include Minton, Royal Albert and the core<br />

Royal Doulton brand. Each of these<br />

brands enjoys a long history of royal<br />

patronage and holds at least one royal<br />

warrant.<br />

With almost 200 years of heritage,<br />

the Royal Doulton Company is a thriving<br />

global organisation, with around $350<br />

million annual turnover, employing<br />

around 3500 people in its UK factory,<br />

Indonesian factory and numerous<br />

distribution operations worldwide.<br />

Approximately half of all sales are<br />

generated outside the UK.<br />

Due to the company's reputation for<br />

excellence in quality and design, Royal<br />

Doulton has secured a high degree of customer<br />

loyalty.<br />

In total, the Royal Doulton Company produces<br />

a range of 30,000 different items across a broad<br />

range of product groups. As well as the company<br />

having provided Royal Doulton devotees with their<br />

treasured collection pieces, its Royal Albert design<br />

'Old Country Roses' has become the world's best<br />

selling bone china tableware pattern,<br />

with over 150 million pieces having<br />

been sold since its introduction in<br />

1962.<br />

HISTORY<br />

Royal Doulton has been producing<br />

ceramic items for almost 200 years. As<br />

far back as 1815 the company's<br />

founder, John Doulton, began<br />

producing practical and decorative<br />

stoneware from hi s pottery in<br />

Lambeth, south London.<br />

His son, Hemy built the business,<br />

relocating it 60 years later to Stokeon-Trent<br />

in Staffordshire, England, in<br />

the region known around the world<br />

as 'The Potteries' . By 1901 the quality<br />

ofDoulton's tableware had caught the<br />

eye of King Edward VII who allowed<br />

the company to add the 'Royal' prefix<br />

to its name and awarded it the Royal<br />

Warrant. Now called Royal Doulton,<br />

the company expanded its production<br />

facilities and by the 1930s was<br />

involved in the manufacture of<br />

figurines and giftware.<br />

Royal Doulton was awarded the<br />

Queen's Award for Technical<br />

Achievement in 1966, for its<br />

contribution to china manufacture- the first china<br />

manufacturer to be honoured with this award.<br />

During the 1960s and 1970s Royal Daulton sold<br />

its drainpipe production interests and acquired<br />

Minton, which had begun china production in 1793,<br />

and crystal manufacturer Webb Corbett.<br />

In 1972, Royal Doulton was bought by the<br />

Pearson conglomerate and merged with Allied<br />

96


English Potteries adding a number of key brands,<br />

including Royal Albert.<br />

In 1993, Royal Daulton separated from its parent<br />

and became a public company listed on the London<br />

Stock Exchange.<br />

Royal Daulton has been available in <strong>Australia</strong><br />

since the early 1800s through agency agreements.<br />

A wholl y-owned Royal Doulton subsidiary was<br />

established in Sydney in 1952.<br />

THE PRODUCT<br />

The Royal Doulton Company has three principal<br />

brands: Royal Doulton, Royal Albert and Minton.<br />

Under the Royal Doulton brand the company<br />

offers a broad range of domestic tableware, as well<br />

as giftware and collectable figurines. The Royal<br />

Doulton brand is also featured on an extensive<br />

range of crystal stemware and giftware.<br />

Targetin g the junior<br />

members of the household,<br />

Royal Doulton also<br />

produces nurseryware<br />

including the well-loved<br />

'Bunnykins' range and the<br />

' Winnie the Pooh' collection.<br />

Royal A lbert, which<br />

trace it origin back to<br />

1896, has become an<br />

internationally recognised<br />

brand with a distinctive style,<br />

offering domestic tableware,<br />

crystal and gift items.<br />

The Royal Doulton<br />

Company's oldest brand is Minton.<br />

Since its inception in 1793, Minton<br />

has won a worldwide reputation for<br />

innovative and exquisite design.<br />

Minton is also famous for its intricate<br />

gold designs and special<br />

commissions. Many of these unique<br />

works of rut ru·e bought as heirlooms.<br />

RECENT DEVELOPMENTS<br />

Royal Doulton is in an important<br />

period of change in its history,<br />

currently implementing a three brand<br />

master strategy as a first step in<br />

repositioning the company's brands.<br />

New product development, global<br />

merchandising systems, in-store<br />

environments, product packaging<br />

and point of sale have all been<br />

identified as key to the branded<br />

development.<br />

The Royal Doulton Company<br />

has continued to do what it does best<br />

- produce top quality chinaware<br />

collections. The new ranges of casual<br />

dining-wru·e ru·e stylish, functional and user friendly,<br />

designed for modern lifestyles.<br />

The Licensing Division, created in the mid-1990s<br />

to propel the Royal Daulton brand into new product<br />

sectors, has achieved considerable success.<br />

Inspired by the company's rich heritage and design,<br />

licensed products include textiles, toiletries and<br />

'Bunnykins' giftwru·e.<br />

In <strong>Australia</strong>, Royal Doulton opened its first,<br />

stru1d-alone Doulton & Company store at Chatswood<br />

Chase, Sydney, in July 2001. The store creates<br />

a new retail experience with product displayed in a<br />

lifestyle setting.<br />

PROMOTION<br />

Mmketing the Royal Doulton Company's brands<br />

involves a variety of promotional techniques<br />

including magazine and newspaper adve1tising, a<br />

public relations program,<br />

direct marketing, in-store<br />

promotions and special<br />

events such as store visits<br />

by Michael Doulton, who is<br />

the company's ambassador.<br />

The company also runs a<br />

very successful tableware<br />

promotion for brides<br />

through bridal registries in<br />

major deprutment stores.<br />

International collectors'<br />

clubs have been established.<br />

In <strong>Australia</strong>, these clubs<br />

operate through selected<br />

stores and keep collectors<br />

informed about product (including exclusive pieces)<br />

and special events.<br />

The Royal Daulton Company also has a global<br />

website (www.royaldoulton.com).<br />

BRAND VALUES<br />

Around the globe, the Royal Doulton Company's<br />

product is valued for its sense of heritage and<br />

Engli shness. As one of the oldest and bestrecognised<br />

chinaware brands in the world, Royal<br />

Doulton has earned itself a reputation for excellence,<br />

quality and distinctiveness of design- values which<br />

it intends to build on to take the brand forwru·d in<br />

the new millennium.<br />

Prized by collectors the world over, Royal<br />

Doulton product has an international reach<br />

extending way beyond its English roots. To sustain<br />

its position, the Royal Doulton Compru1y' s<br />

emphasis for future brand growth centres on its<br />

ability to focus on people, to understand its<br />

customers and then to provide products which me<br />

relevant to their needs and lifestyles.<br />

www.royaldoulton.com<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

ROYAL DOULTON<br />

0 A single Minton plate can cost more<br />

thru1 $ 10,000 and will take one person<br />

up to three weeks to complete the<br />

raised paste decoration.<br />

0 The lru·gest ru1d most expensive figure<br />

made by Royal Doulton is Princess<br />

Badoura. The figure takes more than<br />

160 hours to hand-paint ru1d costs<br />

ru·ound $50.000.<br />

0 Royal Daulton's best-selling<br />

nurseryware range, Bunnykins, was<br />

designed by a nun, Sister Mru-y<br />

Bru·bru·a (Barbru·a Vernon), who was the<br />

daughter of Cuthbett Bailey the<br />

General Manager of the Royal Daulton<br />

factm-y in the 1930s. Bunnykins has<br />

been in production for over 65 yeru·s.<br />

0 Royal Doulton was the first china in<br />

space. China plates were carried on the<br />

inaugural flight of the space shuttle<br />

Discove1y, in 1984.<br />

0 There are Royal Doulton ceramics in a<br />

time capsule inserted into the base of<br />

Cleopatra's Needle, on the Thru11es<br />

Embankment in London.<br />

97


THE HEALTH FOOD COMPANY<br />

m~<br />

®<br />

THE MARKET<br />

Since commencing business in 1898, Sanitarium<br />

Health Food Company has been at the forefront of<br />

encouraging healthy eating and producing foods<br />

that "not only taste good but are good for you".<br />

Sanitarium's desire is to help people 'learn to stay<br />

well ' - the meaning of the word 'Sanitarium'. The<br />

Company advocated vegetarianism before it<br />

became trendy and was the first to introduce the<br />

concept of health food shops. It took the vision and<br />

co mage of Sanitarium's founders to promote, produce<br />

and sell health foods dw·ing an era when <strong>Australia</strong>ns<br />

consumed foods low in nutiitional value.<br />

Today, Sanitarium is credited with changing<br />

the way <strong>Australia</strong>ns eat, particularly at breakfast<br />

and through its promotion of healthy eating and a<br />

vegetarian diet. Its philosophy to produce healthy<br />

foods low in fat, salt and sugar while maintaining<br />

the highest level of value and appeal establishes a<br />

benchmark within the <strong>Australia</strong>n food indusuy<br />

ACHIEVEMENTS<br />

The most recognised brand in the Sanitarium<br />

stable is undoubtedly Weet-Bix®, which has<br />

remained <strong>Australia</strong>'s most popular breakfast cereal<br />

for over 35 years, in a market category wo1th more<br />

than A$857 million per annum.<br />

In 1999, the Company led the way in the breakfast<br />

food category with the introduction of Up & Go®a<br />

"liquid breakfast". It was developed to meet the<br />

demands of consumers with a busy lifestyle who<br />

might regularly skip breakfast. Up & Go has the<br />

goodness of two Weet-Bix and milk.<br />

In 1986, Sanitarium launched So Good and two<br />

years later it received world recognition at the<br />

International Food Exposition in Paris with the Sial<br />

D'or award for the most innovative beverage. So<br />

Good has held the position of <strong>Australia</strong>'s leading<br />

soy milk since its launch. The So Good range now<br />

includes eight variants that are available in chilled<br />

or convenient UHT format and a range of low-fat<br />

soy ice-creams.<br />

Since launching So<br />

Good in 1999 to the<br />

Canadian market, So Good<br />

quickly became the<br />

country's leading soymilk.<br />

So Good is also fast<br />

becoming a successful<br />

brand in the UK.<br />

Sanitarium Development<br />

and Innovation,<br />

located at Cooranbong<br />

(NSW), is a renowned food<br />

research and development<br />

facility in the Asia Pacific<br />

regton.<br />

The Sanitarium<br />

Nutrition Service has a<br />

team of qualified nutritionists<br />

and dieticians who<br />

provide free advice to<br />

<strong>Australia</strong>'s health professionals and consumers on<br />

healthy eating choices and promote a diet high in<br />

fruit, vegetables, legumes, nuts and wholegrain<br />

foods. A range of leading Sanitarium vegetarian<br />

products supports this healthy living philosophy.<br />

HISTORY<br />

In the early 1800s a small group of Seventh-day<br />

Adventist immigrants began importing products<br />

from the then famous Battle Creek Sanitarium in<br />

Michigan, USA where Dr John Harvey Kellogg<br />

produced a range of health foods including cereals.<br />

As the popularity of these types of products grew,<br />

it was decided to establish the Sanitarium Health<br />

Food Company. In 1898, Edward Halsey was<br />

commissioned as Sanitarium's first baker, and from<br />

a rented bakery in Melbourne he commenced<br />

making the Company's first peanut butter which<br />

sold initially in tins and was originally marketed as<br />

'Betta' PeanutButter.<br />

A range of ready-to-eat breakfast cereals was<br />

quick to follow and included Granose (an<br />

unsweetened forerunner<br />

to Weet-Bix)<br />

and Granola (a cereal<br />

made from wheat, oats,<br />

maize and rye) which<br />

were unlike anything<br />

previously available to<br />

the consumer.<br />

Sanitarium Health<br />

Food Company was<br />

otlicially registered on<br />

April27, 1898.<br />

Later that year,<br />

with demand<br />

increasing rapidly,<br />

the fledgling company<br />

relocated to<br />

larger premises at<br />

Cooranbong, a<br />

rural area south of<br />

Newcastle in New<br />

South Wales.<br />

Edward Halsey<br />

installed the<br />

baking equipment<br />

in a large disused<br />

D No animal tal<br />

sawmill. The stage<br />

D High In calcium<br />

D No cholesterol<br />

was set for the<br />

Company to<br />

expand.<br />

In the following year, Edward Halsey was<br />

transferred to New Zealand where he began making<br />

the fu·st batches of Granola, Caramel Cereal (a coffee<br />

substitute) and bread in a small wooden shed in the<br />

Christchurch suburb of Papanui.<br />

In the 1920s, Sanitarium faced a challenge to<br />

Granose from a new sweetened flake biscuit called<br />

Weet-Bix, introduced by a company called Grain<br />

Products. In October 1928, the two companies<br />

decided to call a tiuce and Sanitarium acquired Grain<br />

Products, and made the Weet-Bix brand its own.<br />

During the 1920s, Sanitarium was the first to<br />

introduce <strong>Australia</strong>ns to a savoury yeast spread<br />

called Marmite. Originally impmted from the United<br />

Kingdom, it has been manufactured by Sanitarium<br />

since it secured the secret formula from the English,<br />

100


._<br />

just before World War II.<br />

Since those days the<br />

Company has grown until,<br />

today, it has 12 manufacturing<br />

and distribution sites<br />

throughout <strong>Australia</strong> and New<br />

Zealand making over I 00<br />

products and employing<br />

approximately 1700 people.<br />

THE PRODUCT<br />

Sanitarium offers a<br />

substantial range of<br />

health foods to the<br />

discerning, healthconscious<br />

consumer. Its<br />

range of breakfast cereals includes<br />

Weet-Bix (of course), Weet-Bix Crunch launched<br />

in 2004, Fruity Bix, Skippy Cornflakes, Light 'n'<br />

Tasty, Honey Weets and Ricies.<br />

So Good represents a range of soy milk products<br />

including So Good Ice-Cream. The Sanitarium range<br />

also includes Marmite and Peanut Butter, a range<br />

of prepared vegetarian foods and various speciality<br />

products.<br />

RECENT DEVELOPMENTS<br />

Sanitarium Health Food Company is unique among<br />

food manufacturers for its emphasis on nuu·ition<br />

and health education and its long-standing supp01t<br />

for the well-being of <strong>Australia</strong>n communities. The<br />

Company shares with its employees a commitment<br />

to retaining its original community support<br />

orientation.<br />

Sanitarium, established by the Seventh-day<br />

Adventist Church in <strong>Australia</strong> distributes its profits<br />

to the church for charitable purposes. The church<br />

in <strong>Australia</strong> operates medical and educational<br />

facilities and assists with community development<br />

and crisis response through the Adventist<br />

Development and Relief Agency (ADRA) and<br />

ADRAcare. Other community projects include<br />

family counselling and support for families in crisis;<br />

services for the blind including Summer Camps for<br />

children; 'stop smoking ' education, Aboriginal and<br />

Torres Strait Island community health support and<br />

education.<br />

In addition, Sanitarium gives generous<br />

donations, in-kind product support and encourages<br />

its staff to get actively involved in support of<br />

community activities.<br />

As part of its program to encourage a healthy<br />

community the Company conducts the Sanitarium<br />

Weet-Bix Kids TRYathlon series. The event is<br />

was done together with<br />

retailers, and consisted of little<br />

more than dressing<br />

windows and putting<br />

goods on display.<br />

The very first press<br />

advertisement for<br />

Sanitarium health<br />

foods appeared in<br />

Mel bourne's ' The<br />

Bible Echo' but in<br />

October of 1922, the<br />

decision was made to<br />

begin placing 'fair-<br />

~~ sized' advertisements<br />

in the leading<br />

newspapers in capital cities<br />

and some larger towns. The first official cm11paign<br />

began later that year. By the mid-1920s, the<br />

Sanitarium nmne had become a well-recognised<br />

pmt of the commercial world.<br />

A promotional practice, for which Sanitarium<br />

was to become famous, inserting collector cm·ds in<br />

boxes of Sanitarium Weet-Bix, began in 1942 and<br />

continues today. The cards, which were issued<br />

progressively to form series, were designed with<br />

an educational focus.<br />

Television advertising for Sanitarium products<br />

began appearing in the early 1960s. Mrs Joan<br />

Bateman presented weekly TV segments called<br />

' Taste for Food', demonsu·ating vegetm·ian cooking<br />

techniques using the Company's products.<br />

Television remains a major part of today's<br />

promotional activities for Sanitarium, with<br />

campaigns involving the <strong>Australia</strong>n Cricket Team.<br />

BRAND VALUES<br />

Sanitarium is more than just selling food and<br />

making a profit. Its core values are centred on<br />

encouraging people to enjoy happy, healthy lives.<br />

The Company remains u·ue to the reason it was<br />

established more than a century ago by the<br />

Seventh-day Adventist Church.<br />

www.sanitarium.com.au<br />

_<br />

............ _,_..,.. ...... -........ -.<br />

n.- .,~oo ... --.-.. _..~ .... _ ..<br />

.............. -~· ... ~ ... WU'I~1 ... ~ ... ~.at .... v ...<br />

... •. ..__ ........ .... "" ..... -ol<br />

........ _., ... ___ ~..._<br />

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... ............ -~- .... tV-1. .. .....<br />

..,. ... u..~o~ .... M.. . ....... -~...-.. .... -<br />

Wffl' __ .. ,......., .. _ .......,...._ ... ~<br />

WEET·BIX<br />

Vitamin Fortified whole wheat biscuits<br />

designed to provide a positive and fun sporting<br />

experience to encourage healthy living amongst<br />

kids. This fam.ily-orientated event attracts up to<br />

10,000 participants and many more supporters<br />

around <strong>Australia</strong> and was established in 1999.<br />

In 2004, the <strong>Australia</strong>n Red Cross and<br />

Sanitarium announced a pmtnership to expand<br />

nationally the Good Start Breakfast Club, a<br />

community progrm11 conducted by the <strong>Australia</strong>n<br />

Red Cross to provide a healthy breakfast each<br />

morning for kids in m·eas of most need.<br />

PROMOTION<br />

Since the very beginning, the Sanitarium Health<br />

Food Company's philosophy with advertising has<br />

been governed by the overriding principles of<br />

reliability, trustwo1thiness and good nutrition.<br />

ln the em·ly days, the best forms of promotion<br />

were word-of-mouth recommendations as well as<br />

referrals from doctors and chemists, since the foods<br />

were sold on their health benefits.<br />

Prior to 1920, most of Sanitarium's adve1tising<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

SANITARIUM<br />

0 Sanitarium is I 00 per cent Ausu·ali


Schic<br />

G<br />

ET REA<br />

D<br />

v<br />

THE MARKET<br />

The razor blade market in <strong>Australia</strong> is<br />

cwTently valued at approximately $163<br />

million split between replaceable razor<br />

blades ($89m), disposable razors ($57m)<br />

and razors ($16m). Around 143 million<br />

blades are used each year by the wet<br />

shaving population which is<br />

approximately 74 per cent of all male<br />

shavers.<br />

The past few decades have seen some<br />

fairly dramatic technological changes in<br />

the wet shaving market. In the early<br />

1960s the market was dominated by<br />

carbon steel double blades, slowly<br />

replaced by stainless steel towards the<br />

end of the decade. The 1970s saw the first systems<br />

products evolve and the introduction of the<br />

disposable razor. The first half of the 1980s was the<br />

era of the disposable as they became widely<br />

available in all forms- single blade, twin blade, fixed<br />

and swivel heads. The late 1990s welcomed the<br />

introduction of the triple blade in systems and<br />

disposable razors, and razor handles designed<br />

specifically for women. The new millennium has<br />

seen significant technological advancements, led<br />

by Schick, namely with the introduction of the<br />

world's firstALL-IN-ONErazorforwomen, which<br />

eliminates the need for shaving gels, foam or soap.<br />

ACHIEVEMENTS<br />

One of the early noteworthy accomplishments of<br />

the Schick Shaving Products Group was the<br />

development of a one-push cleaning feature to aid<br />

In removing debris from<br />

between blades. Clean blades<br />

mean longer lasting blades and<br />

a closer shave.<br />

Many razor systems<br />

produced by the Schick Shaving<br />

Products Group have a comfort<br />

or lubricating strip located on<br />

the cap above the blades. These<br />

strips, some of which contain<br />

aloe, are made from watersoluble<br />

polymer. When<br />

activated by water they provide<br />

lubrication that makes the shave<br />

more comfortable by reducing<br />

the friction between skin and<br />

blade. These innovative<br />

materials are safe to the<br />

consumer and effective in<br />

improving shaving comfort.<br />

In an effort to develop an<br />

extremely safe shaving system the blades in<br />

some products are wrapped with very thin wire.<br />

Patented Microfine Wire Wraps protect<br />

the skin from nicks, cuts and irritation<br />

while providing the closeness the shaver<br />

needs.<br />

Another major development in the<br />

shaving arena is the flexible cartridge. A<br />

sophisticated design and special materials allow<br />

the blades to flex to the contours of the area being<br />

shaved. The innovative flexing action of the twin<br />

blade cartridges shaves like no other system and<br />

conforms to the unique shape of every face.<br />

Closeness is the most cited criteria in the<br />

shaving process, and the introduction of triple<br />

blades to the razor category has tapped into this<br />

consumer need. This technological advancement<br />

ensures the three blades are positioned<br />

on the skin at the optimum cutting angle<br />

to ensure triple blade closeness with<br />

reduced irritation during the shaving<br />

process.<br />

The world fust ALL-IN-ONE shaver<br />

has created a shaving revolution for<br />

women, as it allows users to lather and<br />

shave in one simple step. After many<br />

years of research, this product delivers<br />

what women are looking for - a simplified<br />

shaving process.<br />

HISTORY<br />

Schick traces its origins to the inventive<br />

US Army Lieutenant Colonel Jacob<br />

Schick. He retired from the military in<br />

1910 but then returned to service at the<br />

staJt of World War I. In 1921, inspired<br />

by the army repeating rifle, Colonel<br />

Schick invented a new type of safety<br />

razor- the Magazine Repeating Razor. It<br />

had replacement blades stored in the<br />

handle ready to be fed into shaving<br />

position without the chore and danger<br />

of handling a sharp blade. Production of<br />

this innovative razor started in Jersey<br />

City in 1926. This razor was the<br />

forerunner to the famous Injector Razor.<br />

In 1927, Schick sold all his interest in the<br />

Magazine Repeating Razor Company to<br />

the president of the American Chain and<br />

Cable Company.<br />

In 1946, Eversha~·p, Inc. acquired the<br />

R a z o r<br />

Company and<br />

renamed it the<br />

Schick Safety<br />

R a z o r<br />

American<br />

and Cable manufactured<br />

when Schick set up its own manufacturing<br />

operations in Bridgeport, Connecticut. In 1961,<br />

Schick moved its manufacturing facilities into its<br />

present home in Milford, Connecticut, now the<br />

headquarters of the Shaving Products Group. The<br />

following yems were busy ones for Schick as it<br />

introduced many innovations. In 1963, Schick<br />

became the first US manufacturer to sell stainless<br />

steel blades coated with teflon. This non-stick<br />

material improved comfort by reducing friction<br />

during the shave. Five yea~·s later, Schick pioneered<br />

102


another innovation when scientists succeeded in<br />

depositing a thin layer of chromium to the blade<br />

edge, making it more durable. In 1970, Schick was<br />

acquired by Warner Lambert, where steady technical<br />

progress continued. In 1993 Warner Lambett Schick,<br />

merged with Wilkinson Sword, to create Schick<br />

Wilkinson Sword. Globally the dominant brand<br />

name in each country is used. In <strong>Australia</strong>, for<br />

example, it is Schick and in Europe it is Wilkinson<br />

Sword. In 2000, Pfizer Pharmaceuticals purchased<br />

Warner Lambett, and in 2003 sold off the Schick<br />

business to its current owners, the Energizer Battery<br />

Company.<br />

THE PRODUCT<br />

To obtain the very best in shaving products, it is<br />

essential that each process be carried out within<br />

closely specified limits. In all Schick manufactming<br />

sites this is ensured by strict quality checks carried<br />

out at each stage of the production process. The<br />

in spection procedures include visual and<br />

microscopic examinations, chemical and<br />

metallurgical testing, physical testing of blade<br />

strength and durability, and electronic video<br />

inspection systems.<br />

However, the final assessment of shave quality<br />

rests with the shaver. All shave testing is conducted<br />

using humans as test subjects. Thousands of men<br />

and women participate in shave testing of all<br />

product lines every day. Local shave panels<br />

evaluate the quality of the manufactured products<br />

before they leave the building on their way to the<br />

consumer. Other panels evaluate production from<br />

all manufacturing facilities to ensure consistent<br />

quality across plants.<br />

RECENT DEVELOPMENTS<br />

Approximately half of Schick's sales me derived<br />

from products introduced over the past ten years.<br />

The launch campaign, for the FX razor with flexible<br />

blades in 1991 , featured the chmacter 'blockhead'<br />

and the slogan 'Schick ... changing the face of<br />

shaving'. Abillia~·d ball was used as a demonstration<br />

device to show how the flexible blades follow the<br />

contours of the ball and hence of the shaver's<br />

face. This device is still recalled by<br />

consumers today.<br />

Schick entered the women's blade<br />

ma~·ket in 1995 with the Schick Silk<br />

Effects Razor. This razor featured<br />

I n t u t<br />

unique pivoting twin blades with<br />

microfine guard wires which guide the<br />

razor evenly over the skin to protect<br />

against nicks and cuts even over<br />

difficult areas such as<br />

knees, ankles and<br />

underarms. The razor<br />

was the first designed<br />

specifically to meet<br />

women's needs - not<br />

just an adaptation of a<br />

man' s razor.<br />

In 1996 the FX<br />

Performer was<br />

launched. A razor<br />

designed for<br />

extreme closeness<br />

and comfort, it<br />

introduced the<br />

revolu -tionary<br />

technology of a rubber<br />

'skin guard'. The patented 'skin guard' is<br />

designed to stretch the skin and cushion the impact<br />

of the blades, providing an even smoother, closer<br />

shave.<br />

In 2002, Schick introduced Xt:reme 3 Disposables,<br />

the world's first triple blade disposable razor, and it<br />

still is the only triple blade disposable in <strong>Australia</strong>.<br />

The Xtreme 3 razor kit with replaceable blades<br />

entered the ma~·ket in late 2002. The patented blade<br />

balance technology positions all the three blades<br />

on the skin at the optimum cutting angle for reduced<br />

iiTitation<br />

Most recently, 2003 saw the launch of the new<br />

women's razor: Schick Intuition, which lathers and<br />

shaves in one easy step with its Ali-In-One caJtridge.<br />

This world first contains triple blades swTounded by a<br />

Skin Conditioning Solid rich in cocoa butter, aloe vera<br />

and vitamin E. Water activates the conditioners in the<br />

solid, creating a light lather, so there's no need for<br />

shave gel, soap or body wash.<br />

PROMOTION<br />

The Schick pmtfolio always has a comprehensive<br />

mmketing program including above- and<br />

below-the-line activity. The key focus is<br />

on generating consumer awa~·eness<br />

I I 0 n<br />

Lathers and Shaves in One Easy Step<br />

TM of the brand through advertising and<br />

at pmnt of purchase. In<br />

recent yems Schick has<br />

invested heavily in<br />

TV advertising<br />

across the majors<br />

but has also<br />

extended into<br />

other media<br />

including radio,<br />

. .<br />

cmema, magazme<br />

and outdoor<br />

campmgns.<br />

In the retail<br />

environment Schick has<br />

concentrated on visibility to assist<br />

consumers in selecting the product most<br />

suitable to their patticular needs. This includes<br />

ensuring packaging is clem· and distinctive, the<br />

brand is displayed in a block on-shelf, and displays<br />

are eye-catching and consumer friendly.<br />

BRAND VALUES<br />

Throughout its history, Schick has been a company<br />

of continuous innovation. Today Schick is the name<br />

behind many of the razor enhancements that have<br />

made shaving a simpler, safer, closer and less<br />

irritating process.<br />

Keeping the consumer in mind, these advances<br />

have always been driven by different consumer<br />

needs and by the desire to deliver a shaving benefit<br />

greater than earlier products. These technological<br />

innovations have positioned Schick as a leader in<br />

the marketplace. Schick is a compa11y that<br />

constantly seeks new technologies to enhance the<br />

value and performance delivered to consumers<br />

through its products. This focus on technology as<br />

the key driver of product enhancements<br />

differentiates Schick from a typical packaged goods<br />

company.<br />

At Schick, only a patti culm· kind of technology<br />

will do - technology that clearly provides new,<br />

targeted benefits to the consumer, benefits the<br />

consumer can see and touch and feel. The Schick<br />

product line contains razors and blades to meet<br />

virtually any consumer need.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

SHAVING<br />

0 Shaving will not promote da~·ker , thicker<br />

or faster regrowth of hair on legs or<br />

undermms. Shaving removes hair on<br />

the surface of the skin m1d cannot<br />

affect the colour or the thickness of the<br />

hair. When an m·ea has been shaved<br />

m1d the hair shafts stmt to emerge from<br />

the follicle they appea~· to become<br />

coa~·se and bristly.<br />

0 Hair removal by women became<br />

popula~ · as fashions changed in the<br />

twentietl1 century m1d hemlines rose<br />

above the m1kles. Underm·m shaving or<br />

'smootl1ing' became fashionable ptior<br />

to World Wm· I.<br />

0 A tan cannot be removed by shaving.<br />

Tanning occurs at the lower levels of<br />

the skin, where the skin's pigment cells<br />

m·e located. Razor blades never come<br />

into contact with these cells.<br />

0 The average man will spend in excess<br />

of 3000 hours of his life, or 125 days, in<br />

the act of shaving.<br />

0 The average mm1 has about 25,000<br />

whiskers, which m·e as hm·d a11d tough<br />

as a piece of copper wire of the same<br />

thickness, and grow at a rate of twelve<br />

to fifteen centimetres per yea~·.<br />

103


THE MARKET<br />

Every <strong>Australia</strong>n drinks an average of 101 litres of<br />

carbonated soft drinks a year, which makes<br />

carbonated beverage consumption in <strong>Australia</strong><br />

second only to the USA. The <strong>Australia</strong>n market, at<br />

$4.2 billion, is the second largest for carbonated<br />

beverages in the world.<br />

Looking at the distribution side, it is clear that<br />

more than half of these beverages are sold through<br />

the Impulse Channel. Although the total Non<br />

Alcoholic Ready to Drink beverage market is<br />

growing, the carbonated beverage market has been<br />

relatively flat over the past couple of years. This is<br />

at least pattly due to the proliferation of different<br />

products.<br />

ACHIEVEMENTS<br />

The Schweppes brand is the number one<br />

mi xer brand nationally, in terms of both<br />

volume and value. It is also the leading<br />

mineral water brand in terms of value,<br />

ac ro ss the entire market. Schweppes<br />

Lemonade occupies the number two<br />

position in the market nationally.<br />

HISTORY<br />

In 1783 Jacob Sch weppes, a German<br />

born jeweller and an amateur<br />

scientist in vented a method<br />

of producing carbonated<br />

water on a commercial scale.<br />

This in vention set the<br />

foundations of a multibilliondollar<br />

soft drinks industry.<br />

Schweppes became a public<br />

company and quickly<br />

established a reputation for<br />

innovation a nd forward<br />

thinking. Several products<br />

launched around the World<br />

War I era are still around<br />

today - Schweppes Tonic<br />

Water, Schweppes Ginger<br />

Ale, Schweppes Ginger Beer<br />

and Schweppes Bitter Lemon.<br />

The company merged with<br />

Cadbury plc in 1969, leading<br />

to the formation of Cadbury<br />

Schweppes, a major force in<br />

international markets. Today<br />

the Schweppes brand is<br />

recognised worldwide fo r its<br />

qualjty and is available in more<br />

than 75 countries.<br />

THE PRODUCT<br />

Schweppes originaLly began with a<br />

portfolio centred around adult<br />

flavours such as Tonic Water. Today<br />

in <strong>Australia</strong> the range has diversified<br />

into mineral waters, family favourite<br />

flavours s uch as Schweppes<br />

Traditional Lemonade and the iconic<br />

Sch weppes Lemonade. Other<br />

products also appealing to adult<br />

beverage consumers are the range<br />

of Schweppes Twists (Soda Water<br />

in three flavours - lemon, berry and<br />

lime).<br />

RECENT DEVELOPMENTS<br />

2003 has seen Schweppes move beyond<br />

its traditional range and audiences to bring younger<br />

consumers to the category and the brand. The new<br />

branding, the packaging and the logo has been<br />

redesigned to keep pace with the ever-changi ng<br />

beverage market. T he new contemporary and<br />

vibrant design of the logo increased the dynamism<br />

and relevance of the Schweppes brand to today's<br />

consumers.<br />

It also coincided with the launch of some brand<br />

new rni xerflavours. Like traditional mixers such as<br />

Dry Ginger Ale, these flavours are designed to<br />

be consumed either on their own, or with<br />

alcohol.<br />

'Agrum', a special citrus flavour, was<br />

launched in <strong>Australia</strong> in 2002 on the heels of a<br />

successful launch in France and Spain. Agrum<br />

was backed by a sizeable TV, print and<br />

sponsorship campaign . It turned out to be a<br />

huge success and was followed by the launch<br />

104


of 'Ciata' (blood orange flavour) and 'Viage'<br />

(kalamansi lime flavour) in 2003.<br />

W hil e the new mixer flavours were<br />

revolutionising the market, packaging also entered<br />

a new dimension with the introduction of the 250ml<br />

slimline cans, a big hit with women in the 18-34 age<br />

PROMOTION<br />

Confide nce, sophi s­<br />

tication, maturity and<br />

humour have characterised<br />

Schweppes<br />

since the early 1900s.<br />

As in Jaco b 's day,<br />

advertising and<br />

promotion play a key<br />

role in the continuing<br />

popularity of<br />

Sc h weppes .<br />

Campa i gns<br />

such as the<br />

' Schweppervesce<br />

nc e'<br />

campaign<br />

launched in the<br />

UK in 1946<br />

foll owed five<br />

years later by<br />

the launch of the<br />

'Schweppshire'<br />

campaign with<br />

'Schweppshire'<br />

as a mythical<br />

land, and then<br />

the 'Schhh...<br />

INDIAN<br />

TONIC WATER<br />

14{~<br />

~~~ You -<br />

300m!<br />

~ Know-<br />

Who '<br />

campaign<br />

in the<br />

1960s<br />

are still<br />

well-known


THE MARKET<br />

Television is the pre-eminent form for the delivery<br />

of information, entertainment and sports to<br />

<strong>Australia</strong>ns and Seven's objective is to build from<br />

this platform of strength to confirm its leadership<br />

in <strong>Australia</strong>'s evolving entertainment and<br />

communications landscape.<br />

And, Seven's ability to create programs<br />

<strong>Australia</strong>ns want to watch will continue to ensure<br />

that television is the leading platform for the delivery<br />

of content and the aggregation of audiences.<br />

Seven is taking the lead in the planning for digital<br />

television, with <strong>Australia</strong>'s first specially designed<br />

digital production and broadcast centres in<br />

Melbourne and Sydney- placing it at the forefront<br />

of the creation of content from the same servers for<br />

application in broadcast and subscription<br />

television, online, wireless and broadband.<br />

The company's strengths in television, the<br />

progress in defining its involvement in new<br />

communications technologies, the commissioning<br />

of technological architecture for digital and<br />

interactive television, and its developments in<br />

magazine publishing provide Seven with the<br />

framework for the company's future development.<br />

It is well placed to continue to re-energise and<br />

strengthen its brand in a crowded and competitive<br />

market, ensure its ongoing relevance with<br />

<strong>Australia</strong>ns, and play a key role in defining the<br />

future of media and communications in our country.<br />

ACHIEVEMENTS<br />

Seven is one of <strong>Australia</strong>'s most recognised brands<br />

- a brand built through Seven's commitment to<br />

<strong>Australia</strong>n programming and<br />

event sports television<br />

and reinforced<br />

through its<br />

development<br />

as a leading<br />

source of<br />

news and<br />

information for<br />

<strong>Australia</strong>ns.<br />

Seven's strength is built on a core strategy: to<br />

produce and deliver programming relevant to<br />

<strong>Australia</strong>ns. It is this strategy which will define<br />

Seven as it builds its media presence beyond<br />

broadcast television.<br />

Today, more than nine in ten <strong>Australia</strong>ns watch<br />

Seven's programming every week.<br />

And, as the company builds on this formidable<br />

capability with the introduction of digital<br />

technologies, it is also creating the framework for<br />

its future as an integrated media company with a<br />

leading presence in magazine publishing.<br />

HISTORY<br />

Seven is a founding partner in the creation and<br />

development of television in <strong>Australia</strong>.<br />

From the early days of television in 1956 to today,<br />

Seven has been a leader in media. The network has<br />

created the architecture for television -from those<br />

first days of locally produced drama and the first<br />

sports broadcast with its coverage of the Olympic<br />

Games in Melbourne, through to its award-winning<br />

coverage of the Olympic Games in Sydney.<br />

Through the decades, Seven has created<br />

programs which have touched the lives of all<br />

<strong>Australia</strong>ns. It has covered <strong>Australia</strong>'s success in<br />

sports and recorded those moments in news which<br />

have defined <strong>Australia</strong> and the world.<br />

THE PRODUCT<br />

Seven's strategy centres on the ongoing<br />

commissioning of new <strong>Australia</strong>n programs -<br />

complementing its existing strong franchises and<br />

enhancing its audience delivery in its core adult<br />

audience demographics.<br />

Today, much of Seven's<br />

programming is <strong>Australia</strong>n.<br />

The network believes that<br />

leadership in the creation of<br />

drama series and information<br />

and reality programming<br />

will allow it to meet<br />

the challenge of increasing<br />

competition from new<br />

viewing options - with the<br />

delivery of content that can<br />

only be seen on Seven.<br />

It is a strategy which<br />

has defined Seven for<br />

more than four decades -<br />

with programs such as<br />

Homicide, My Name's McGooley<br />

What's Yours?, The Mavis<br />

Bramston Show, A Country Practice, Fast<br />

Forward and Popstars.<br />

Today, Seven is building on its leadership in<br />

<strong>Australia</strong>n drama with Home and Away, All Saints<br />

and Blue Heelers, and creating new programming<br />

complementing the network's existing franchises<br />

and targeting the most important audiences for<br />

advertisers- adults 25-54.<br />

As pm1 of this strategy, the network is recognised<br />

as a leader in sports programming. Seven has<br />

brought <strong>Australia</strong>ns ten of the past twelve Olympic<br />

Games - including the Games of the XXVII<br />

Olympiad in Sydney - and as pm1 of a landmm·k<br />

agreement with the IOC, will broadcast the Summer<br />

Olympic Games in Athens in 2004 and in Beijing in<br />

2008 and the Winter Olympic Games in Torino in<br />

2CXXS.<br />

This leadership was further confirmed with<br />

Seven's selection as the host broadcaster for the<br />

Rugby World Cup in <strong>Australia</strong> - building on the<br />

network's coverage of the Wallabies' test<br />

campaigns and creating the international television<br />

coverage of the biggest sports event held t11<br />

<strong>Australia</strong> since the Olympic Games in 2000.<br />

RECENT DEVELOPMENTS<br />

Digital television is more than just a technology<br />

which delivers better quality pictures. It offers the<br />

106


opportunity for broadcast television to evolve<br />

from a single form of mass communication<br />

into one which also develops one-onone,<br />

interactive communications<br />

with viewers and<br />

delivers expanding<br />

opportunities<br />

for<br />

the deli very<br />

of programming<br />

content.<br />

Seven's leadership in digital<br />

technology with the commissioning of its<br />

new broadcast centres allows the<br />

company to drive the future of digital<br />

television in <strong>Australia</strong>.<br />

Digital television<br />

allows broadcast<br />

television to<br />

evolve from a single<br />

form of mass communication<br />

into one which<br />

expands opportunities for the<br />

delivery of programming content.<br />

Digital television will ensure that broadcast<br />

televis ion continues to maintain a strong<br />

connection with audiences, allow it to retain and<br />

build audiences and attract the major share of<br />

advertising despite the challenge of hundreds of<br />

channels in the emerging communications<br />

landscape.<br />

Seven's development will focus on broadcast<br />

television, and through new opportunities in<br />

publishing, online and broadband, the company is<br />

focusing on its future as an integrated media<br />

company - leveraging its content and ability to<br />

reach consumers across all major forms of media.<br />

As events on television form a key element in<br />

Seven's plans for television, they also create an<br />

important component in its development as a broadbased<br />

media and entertainment company.<br />

The cornerstone of this strategy is Seven' s<br />

management of Telstra Dome, <strong>Australia</strong>'s most<br />

technologically advanced multi-function spot1s and<br />

entertainment precinct. Seven's management<br />

encompasses naming, marketing, ticketing and<br />

seating rights.<br />

Telstra Dome creates a new presence for Seven,<br />

allowing the company to build new links with its<br />

audiences, focusing on events and closely aligned<br />

with the company's<br />

strengths in television and<br />

publishing.<br />

Telstra Dome is the home<br />

of the <strong>Australia</strong>n<br />

Football<br />

League<br />

and the<br />

<strong>Australia</strong>n<br />

Rugby Union in<br />

Melbourne and has created a<br />

series of world firsts. <strong>Australia</strong>n<br />

football matches, rugby union<br />

internationals, rugby league and<br />

international cricket matches, world<br />

wrestling and world title<br />

fights in boxing have all<br />

played under the world's<br />

largest closing roof. Bruce<br />

Springsteen, Barbra<br />

Streisand, Ricky Martin and<br />

Robbie Williams have<br />

selected Telstra Dome as their<br />

venue in Melbourne. Nearly<br />

two rn.illion people experience<br />

events at Telstra Dome each year.<br />

As Seven builds its media presence, it is<br />

leveraging its broadcast television content and<br />

brand beyond television. Telstra Dome forms one<br />

element and its move into magazine publishing is<br />

another.<br />

Through its ownership of Pacific Publications,<br />

Seven is aligning its television programs and<br />

audiences with some of <strong>Australia</strong>'s most significant<br />

magazine brands.<br />

Today, Pacific Publications publishes one in four<br />

magazines read by <strong>Australia</strong>ns - including two of<br />

the three biggest selling weekly titles: New Idea<br />

and That's Life. Four million <strong>Australia</strong>ns read<br />

Seven's magazines every month, including more<br />

than one in three women.<br />

Seven is committed to building on the success<br />

of Pacific Publications' core titles and driving the<br />

development of its magazines business through<br />

the acquisition and creation of magazine brands<br />

which add further depth to its portfolio.<br />

A key component in Pacific Publications' future<br />

is one of Seven's core strengths- the marketing<br />

and brand-building capabilities of the company's<br />

broadcast television business - as Seven aligns<br />

editorial and marketing across a number of<br />

television programs and magazines.<br />

Strength tn<br />

television and<br />

publishing provides<br />

significant<br />

opportunities for<br />

Seven to build its<br />

television audiences<br />

and enhance readership<br />

of its magazines.<br />

PROMOTION<br />

As Seven builds on<br />

its strengths in<br />

broadcast television, magazine<br />

publishing provides a key<br />

platform for Seven's future as a<br />

multi-faceted media and<br />

communications company - as it<br />

leverages its ability to reach all<br />

<strong>Australia</strong>ns, extend its brand and content, and<br />

create integrated marketing solutions for<br />

advertisers.<br />

This ability to reach all <strong>Australia</strong>ns defines a<br />

company commitment to create a major presence in<br />

<strong>Australia</strong>n life. These core values - of creating<br />

television progrmnming and magazines which reflect<br />

the lives of <strong>Australia</strong>ns- drive Seven's presence in<br />

major events of national importance.<br />

This all-encompassing involvement underlines<br />

the company's sponsorship of <strong>Australia</strong>'s foremost<br />

performing arts company, Opera <strong>Australia</strong>,<br />

associations with m


Sony Ericsson<br />

THE MARKET<br />

Two great brands have come together to create a<br />

super-force in mobile phone design, production and<br />

mat·keting.<br />

The joint venture established between<br />

consumer electronics powerhouse Sony<br />

Corporation and telecommunications<br />

leader Ericsson, brings together two of<br />

the most successful brands across<br />

these two industries to create a power<br />

brand - Sony E ri csson Mobile<br />

Communications.<br />

Mobile phones are now an integral<br />

patt of Life. A staggering number of close<br />

to 600 rni lli on handsets is expected to<br />

be sold worldwide this year. They are<br />

no longer a luxury but a necessity. Sony<br />

Ericsson is petfectly poised to take the<br />

I ion 's share of this burgeoning mat·ket.<br />

<strong>Australia</strong>ns are eru·Iy adopters of technology<br />

and have readily accepted the mobile phone as part<br />

of their daily life. In <strong>Australia</strong>, the number of mobile<br />

handsets has surpassed the number of fixed lines<br />

this year. It' s becoming a personal-phone, mobile<br />

world.<br />

The astonishing advances in technology have<br />

led to mat·ket opportunities and a pace of change<br />

unlike any other category in history. An example is<br />

GPRS (General Packet Radio Service)<br />

and 3G. This means that mobile<br />

communications are becoming faster,<br />

and are becoming instantly connected<br />

to other forms of technology.<br />

The lines between conventional<br />

electronics and telecommunications are<br />

becoming increasingly blurred and the<br />

landscape is rapidly evolving.<br />

Sony Ericss<br />

ACHIEVEMENTS<br />

Sony Ericsson is the product of two<br />

powetful parents, Sony and Ericsson.<br />

Their marriage has already shaken the<br />

mobile phone industry, a business that<br />

grows tougher by the hour. Rivals and<br />

consumers know the strengths each<br />

pattner brings to the patty.<br />

Ericsson is one of the<br />

pioneers of the<br />

telecommunications<br />

industry that helped<br />

to bring the mobile<br />

phone industry into<br />

existence. Its<br />

experience with<br />

carriers and operators all over the<br />

world is extremely valuable, and<br />

it stands at the cutting edge of<br />

the highlyspecialised<br />

telecom technology.<br />

Sony, one of the world's most<br />

popular brands, is envied for<br />

having successfully integrated<br />

electronics with entertainment,<br />

and is emulated whenever possible. No other<br />

company has given the world such a wealth of<br />

innovative products that changed the way<br />

everyone lives and enjoys life.<br />

More and more people me using mobile devices<br />

in increasingly inventive ways. In order to make<br />

this mobile world more interesting, more productive,<br />

Sony and Ericsson decided to pool their resources<br />

to create a stronger synergy between various<br />

technologies.<br />

The companies' strengths have been combined<br />

and a whole new category has evolved beyond<br />

telecommunications: 'mobile multimedia.'<br />

HISTORY<br />

Ericsson was founded by Lars Magnus Ericsson<br />

back in 1876 and is the world' s leading supplier of<br />

telecommunications equipment. Ericsson provides<br />

total solutions, from systems and applications to<br />

mobile phones and other communication tools.<br />

Sony has been at the cutting edge of new<br />

technologies since its launch in 1946 by Akio Morita<br />

and Masuru Ibuka. Sony' s creative approach to<br />

design and talent for innovative<br />

technology has driven the brand<br />

to produce a huge number of<br />

world firsts, such as the Sony<br />

Walkman, colour VCR and CD<br />

player.<br />

Sony Ericsson was formed in<br />

October 200 I and represents the<br />

merger of Ericsson Consumer<br />

Products Division with Sony<br />

Digital Telecommunications<br />

Network Company. Sony<br />

Ericsson has approximately 3,500<br />

employees globall y with its<br />

management headquat·ters based<br />

in London. The Asia Pacific<br />

regional office is based in<br />

Singapore and covers 14 mat·kets<br />

in the region, including <strong>Australia</strong>.<br />

Sony Ericsson is responsible<br />

for the entire product<br />

development process, from<br />

research, design and<br />

development to mmketing, sales<br />

and distribution as well as<br />

customer service.<br />

THE PRODUCT<br />

Sony and Ericsson both have a<br />

proven track record in terms of<br />

developing innovative products. Sony<br />

Ericsson Mobile Conununications is able to tap into<br />

Sony's knowledge of imaging, gaming and music,<br />

and Ericsson's communications technology and<br />

messaging capabilities.<br />

By utilising the technological experience gleaned<br />

108


from the parent<br />

companies, Sony<br />

Ericsson is setting the<br />

trends in terms of<br />

product performance<br />

and design and<br />

building the best<br />

petforming multimedia<br />

devices in the world.<br />

The Sony Ericsson<br />

product range includes<br />

a selection of mobile<br />

phones which cover<br />

everything from camera<br />

phones and fashion<br />

clamshell designs<br />

through to fully<br />

integrated PDA phones<br />

with MP3 and video<br />

recording capability.<br />

Products such as the P900<br />

and T630 combine stylish<br />

and funky design with<br />

high functionality.<br />

Style and functionality<br />

are the cornerstone of Sony Ericsson<br />

design.<br />

Sony Ericsson products are very<br />

much part of the new, connected world of<br />

technology from imaging, taking and sending<br />

pictures to friends with integrated cameras, to<br />

connectivity, being ab le to access and transfer<br />

information anywhere via Bluetooth, memory stick<br />

or infrat·ed, and of course to entertainment, the fun<br />

aspect. Games, ringtones, themes, wallpapers, video<br />

clips and music a~·e all there to encourage the user's<br />

creativity.<br />

RECENT DEVELOPMENTS<br />

Just as one example, Sony Ericsson has worked<br />

with the leading suppliers of mobile e-mail and<br />

security to offer mobile workers and the companies<br />

that rely on them a device which is ready to do<br />

business.<br />

The P900 smartphone features fully secure<br />

remote access to e-mail and office functions. In<br />

combination with its telephony, Internet access and<br />

open Symbian platform this makes it a fully-featured<br />

and connected mobile office. It features state-ofthe-art<br />

security, push e-mail and device<br />

management.<br />

Thanks to this,<br />

the P900 now<br />

can offer a<br />

fitting<br />

solution for<br />

any company, from<br />

' SOHO' (SmallOffice/<br />

HomeOffice) up to large<br />

corporations, covering the absolute majority<br />

of business needs. For the user, the benefit is<br />

fast, easy-to-use email access and<br />

for the IT depattment it<br />

satisfies the priority<br />

that it be fully secure<br />

and easy to manage.<br />

PROMOTION<br />

The Sony Ericsson<br />

promotional strategy<br />

reflects its innovative<br />

and leading edge<br />

products. The launch<br />

of the T61 0, for<br />

instance, utilised fresh<br />

highly visible advertising<br />

media to attract<br />

the key target<br />

audience ranging from<br />

early adopters to fun<br />

loving youth. Since<br />

this audience is<br />

constantly on<br />

the move and<br />

outdoors,<br />

such media<br />

as scooters,<br />

adluminates and highly visible billboat·ds and bus<br />

shelters were used to bring them the Sony Ericsson<br />

message in their natural surroundings. Mobile media<br />

for mobile communications.<br />

Alongside new advertising media, Sony<br />

Ericsson reaches the consumer and retail mat·kets<br />

with print advettising in fashion, lifestyle and trade<br />

magazines.<br />

The matTiage of Sony and Ericsson has meant a<br />

new look for a new brand.<br />

Sony Ericsson's strategy to establish the brand<br />

as a major player in the mat·ket has involved high<br />

coverage sponsorships and product placement in<br />

such a~·eas as Big Brother, Tropfest, the Adelaide<br />

Fringe Festival, <strong>Australia</strong>n Idol and the Bondi Shott<br />

Film Festival.<br />

BRAND VALUES<br />

Sony Ericsson understands that mobility is all about<br />

freedom. The freedom of having a world of<br />

information in a pocket. The freedom to be<br />

anywhere and to conununicate in any number of<br />

ways with friends, family and colleagues.<br />

The freedom of always being online and within<br />

reach.<br />

It's all about a new world<br />

where one's own<br />

colour pictures<br />

help you express thoughts and feelings in a way<br />

that words can't. A world where the phone is the<br />

camera to capture life and shme it. Or to add an<br />

absolutely personal touch to the display.<br />

It's about getting closer every day. And a whole<br />

new kind of interaction bringing people neat·er to<br />

each other and to the world around them. Sending<br />

messages and email in the blink of an eye. Or<br />

viewin g interactive WAP/Web pages and<br />

down loading much- .------ --­<br />

loved music in seconds.<br />

It's about having fun l•lllllllll<br />

in so many ways and in<br />

so many places. Playing<br />

a game while waiting for<br />

the bus. Sharing an<br />

animated joke with longdistance<br />

friends - or<br />

experimenting with<br />

L_------~~--~<br />

recordable ring signals<br />

that let users say whatever they want to say.<br />

And because things (like people) work better<br />

together than alone, mobility is also about devices<br />

that communicate with each other. So it is possible<br />

to take a picture with the camera and send it to<br />

friends, instantly.<br />

Sony Ericsson is stretching the boundat·ies of<br />

mobile communication. It is offering phones that<br />

a~·e easier to use than ever - with bigger screens,<br />

more intense colour and higher quality pictures. It<br />

is also offering a richer gaming experience with<br />

sought-after games and enhanced sound and<br />

sensations. There are new camera phones and video<br />

phones more music and extended connection<br />

between devices. In a word, there are lots of<br />

enhancements that will make mobile life easier, more<br />

productive- and much more fun.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

SONY ERICSSON<br />

0 Ericsson began in 1876, in a 13-squat·e<br />

meter repair workshop for telegraph<br />

instruments in downtown Stockholm.<br />

Coincidentally, it was the satne year<br />

that Alexander Graham Bell filed his<br />

patent application for a telephone in<br />

the United States.<br />

0 BluetoothTM was originally developed<br />

by Ericsson, but is now under the<br />

auspices of the Bluetooth Special<br />

Interest Group. Bluetooth TM is an open<br />

standat·d for two-way, short-wave<br />

radio communications between<br />

different devices, and it mat·ks the end<br />

of cables and cords between mobile<br />

phones, PDAs, pmtable PCs, printers<br />

and other equipment.<br />

0 In 2003 Sony Ericsson had 4,000<br />

employees across the globe working<br />

on reseat·ch, development, design,<br />

sales, mat·keting, distribution and<br />

support.<br />

0 The Sony Ericsson T61 0 camera phone<br />

was awat·ded the prestigious awat·d for<br />

'Best handset, terminal or device' at<br />

the GSM Association's 2004 Awards at<br />

the 3GSM World Congress in Cannes,<br />

France.<br />

109


Soul PaHinson Chemist<br />

for every body & soul<br />

THE MARKET<br />

Soul Pattinson operates in a fiercely competitive<br />

retail pharmacy environment. The retail pharmacy<br />

industry is continuing to fragment, with a<br />

proliferation of new 'brands' and different retail<br />

formats. The major retailers are looking to Health<br />

and Beauty, which are traditional pharmacy lines,<br />

as growth categories for themselves.<br />

Against that is the growing importance of<br />

established, trusted brands like Soul Pattinson.<br />

Because customers are bombarded with thousands<br />

of messages daily, a strong brand provides<br />

reassurance.<br />

ACHIEVEMENTS<br />

Consumer research conducted in Sydney and Perth<br />

establi shed that customers are aware of the<br />

longevity of the Soul Pattinson brand, it is<br />

considered trustworthy and provides value for<br />

money. Customers felt an increased level of<br />

assurance and security when dealing with a Soul<br />

Pattinson Chemist, and indicated that when they<br />

were shopping away from home, a Soul Pattinson<br />

Chemist would be their pharmacy of choice.<br />

The Soul Pattinson name has a high level of<br />

recognition. The strengths of the brand are its<br />

history, the t:rustits customers have in it, the service<br />

it offers including information and advice, and the<br />

credibility of its own brand products.<br />

HISTORY<br />

In 1872, when Caleb Soul and his son decided to<br />

set up a pharmacy in Sydney's Pitt Street, Caleb<br />

had no trouble coming up with a name. He called<br />

the shop, which offered general pharmaceutical,<br />

patent and other goods, after his son Washington<br />

Hanley Soul. Washington H. Soul, he thought,<br />

sounded like an honest name - and history has<br />

borne him out. Even today, one of the most<br />

outstanding characteristics of Soul Pattinson in<br />

customers' minds is its trustworthiness.<br />

That first shop was a single room which was<br />

soon too small. Within a year, Washington H. Soul<br />

and Co. moved down the road to larger premises.<br />

When the new shop burnt down, in 1886, it was<br />

rebuilt as the Phoenix building complete with a<br />

phoenix on top of the facade. Today this building<br />

is still the company' s head office, and holds one of<br />

<strong>Australia</strong>' s busiest Soul Pattinson Chenusts.<br />

In the early days there was more to Washington<br />

H. Soul and Co. than just medicines and general<br />

pharmaceutical goods. According to the A/dine<br />

Centennial History of New South Wales, the shop<br />

was known as 'the largest retail store of the kind in<br />

the colonies, becoming a fashionable res01t where<br />

ingeniously concocted and very palatable drinks<br />

are drawn'.<br />

The Souls realised early that they would need<br />

to establish a manufacturing arm to complement<br />

their retail business, and set up a factory to produce<br />

their own proprietary goods. One of the most<br />

popular of these was not a medicine at all. Soul's<br />

Relish was 'an absolutely delicious combination of<br />

onions, garlic, shallots, treacle, red wine vinegar<br />

and other spices', kept in a barrel and allowed to<br />

mature for six months.<br />

Business boomed, not least due to the Souls'<br />

determination to provide their goods 'at New York<br />

and London prices', considerably more cheaply<br />

than competitors. By 1888, Caleb Soul was able to<br />

calculate that in 16 years of business they had<br />

saved the residents of Sydney some 120,000<br />

pounds. The company continued to expand, and<br />

over the following decade opened shops 111<br />

Parramatta, Newcastle,<br />

Cessnock and Lithgow.<br />

Washington H. Soul<br />

and Co.' s fame spread<br />

remarkably widely. An<br />

Englishman called Lewy<br />

Pattinson read about the<br />

stores back in Northumberland,<br />

in England,<br />

and decided to take a look<br />

for himself He arrived in<br />

<strong>Australia</strong> in 1881 and<br />

initially set up a profitable<br />

business as a property<br />

developer. In 1886 he<br />

opened his ftrst pharmacy,<br />

and he soon had several<br />

shops. He also befriended<br />

the Souls, and their<br />

families became firm<br />

friends. His business<br />

grew so strongly that in<br />

1902 he was able to buy out the older firm.<br />

When the resulting entity was incorporated,<br />

Lewy Pattinson included the name Washington H.<br />

Soul out of respect. It became Washington H. Soul<br />

Pattinson and Co. Ltd.<br />

The company's growth since incorporation has<br />

been outstanding, and today there are more than<br />

210 Soul Pattinson pharmacies around <strong>Australia</strong>.<br />

THE PRODUCT<br />

Since its foundation in 1872, Soul Pattinson Chenilst<br />

has grown to become one of <strong>Australia</strong>' s leading<br />

pharmacy groups, and a name both recognised and<br />

110


espected by millions of <strong>Australia</strong>ns.<br />

This then, is the product: a group<br />

of thoroughly modern<br />

pharmacies that offer<br />

value for money, high<br />

quality advice and<br />

information, and 'oldfash<br />

ioned ' service,<br />

reliability and dependability<br />

as well as the other<br />

ancillaries customers want.<br />

The company's commitment<br />

to excellence has led<br />

Soul Pattinson Chemist to be<br />

one of <strong>Australia</strong>'s leading<br />

pharmacy groups. They<br />

proudly offer over 300 high<br />

quality Own Brand products in<br />

the following categories:<br />

Analgesics; Cough & Cold; Oral<br />

Hygiene; Bathroom Products; Hair Care Products;<br />

Antifungal preparations; Anti-inflammatory<br />

medications; GIT preparations; Baby products; Sun<br />

Preparations; Skin Care; and Nutritional<br />

Supplements.<br />

Soul Pattinson Chemist already boasts a very<br />

comprehensive range of products that are available<br />

to customers. A dedication to research and<br />

development of new products is the guarantee to<br />

expand this range.<br />

Confidence in Own Brand products allows the<br />

company to offer a full Money Back Quality<br />

Guarantee if customers are not satisfied with any<br />

of these products.<br />

Soul Pattinson has a manufacturing site at<br />

Kingsgrove, which is 1GA and GMP licensed. A<br />

dedicated team ensures that products meet quality<br />

specifications and are fully compliant with TGA<br />

regulations.<br />

RECENT DEVELOPMENTS<br />

Soulvision, launched in early 2004, aims to be a<br />

quality destination for vision testing and a premium<br />

provider of prescription spectacles, contact lenses<br />

and optical appliances to the public. Soulvision<br />

utilises existing stores and will build on customer<br />

b·ust of the Soul Pattinson name.<br />

Recent consumer research has indicated that<br />

customers would also like to see an additional range<br />

of services inb·oduced by Soul Pattinson, including<br />

such services as naturopathy, iridology and<br />

cholesterol and diabetes testing.<br />

lnb·oduced in 2003, the new Body Guard program<br />

addresses this and tells customers that their Soul<br />

Pattinson Chemist is a destination for advice on<br />

welJ-being. The program offers customers screening<br />

for hearing and bone density as well as blood<br />

testing for cholesterol, glucose, haemoglobin, blood<br />

pressure, Body Mass Index and body fat. It<br />

provides pharmacy staff with the tools and<br />

information needed to satisfy customers' need for<br />

advice and information. The program also supp01ts<br />

key health weeks including Quit Smoking and<br />

Breast Cancer Awareness.<br />

The Body Guard program is strongly<br />

supported by national television C:':;r;f!~<br />

advertorials on Good Morning<br />

<strong>Australia</strong>, national press adve1tising and<br />

local area marketing.<br />

Soul Pattinson is also ecologically<br />

aware. Nearly seven billion plastic bags<br />

are used by <strong>Australia</strong>n consumers each<br />

year. To be a good corporate citizen and to<br />

reduce this number, Soul Pattinson Chenilst has<br />

introduced a range of environmentally friendly and<br />

reusable bags.<br />

PROMOTION<br />

The mainstay of the Soul Pattinson marketing<br />

program is the range of retail focused catalogues.<br />

Apart from promoting product directly, catalogues<br />

drive business into stores for collateral sales. Fifty<br />

per cent of people visit stores as a direct result of<br />

receiving a catalogue. Research has also<br />

established that catalogues are the preferred source<br />

of advertising for 57 per cent of females, and that<br />

36 per cent of people use catalogues in letterboxes<br />

as the primary source of information on pharmacy<br />

products.<br />

Nearly three-quarters of recipients keep<br />

catalogues for more than four days.<br />

The fastest-growing pharmacy loyalty program<br />

in <strong>Australia</strong> is Soul Pattmson' s Special<br />

Privileges Club. It gains 21,000<br />

new members every<br />

month and has a<br />

database of some<br />

400,000 customers. The<br />

program is designed to be<br />

especially simple; joining<br />

involves simply filling out<br />

a forfiJ and receiving a card<br />

on the spot, and redemption<br />

is automatic. As soon as a<br />

customer accumulates 200<br />

points, the POS ternilnal in the<br />

store automatically generates a<br />

$10 gift voucher.<br />

Soul Pattinson's public relations<br />

program has established relationships<br />

with retail and health<br />

correspondents for key press titles in all regions.<br />

With these relationships and press releases tailored<br />

to individual stores and target markets, the program<br />

achieves $1 nilllion a year in free editorial. Its guiding<br />

concept is 'Think Global, Act Local' .<br />

The revitalised website is a major marketing tool<br />

for Soul Pattinson, as are e-mail and SMS marketing.<br />

All Soul Pattinson Chenilsts have the opp01tunity<br />

to have an individual web site managed for them.<br />

BRAND VALUES<br />

Soul Pattinson is committed to achieving<br />

success in the marketplace by<br />

anticipating the future with clear focus<br />

and a clear vision as a guide.<br />

The Soul Pattinson Vision is 'To be<br />

Pharmacy Proud, Providing Well Being<br />

Solutions for Mind, Body and Soul'.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

SOUL PAmNSON<br />

0 The first Soul Pattinson Chenilst began<br />

as a one room shop in 1872 in<br />

Sydney's Pitt Street. It had to move<br />

within a year because it was so<br />

successful that larger prenilses were<br />

required. That new shop remains<br />

today, and is one of the nation's<br />

busiest Soul Pattinson stores.<br />

0 The handyman who worked in the fmt<br />

Pattinson pharmacy in Balmain was<br />

William M01:ris Hughes -better known<br />

eventually as <strong>Australia</strong>n Prime Minister<br />

Billy Hughes.<br />

0 Soul Pattinson Chenilsts have been<br />

providing pharmacy services,<br />

professional care and value for money<br />

to the community for 132 years<br />

through Member-owned pharmacies.<br />

0 When Lewy Pattinson selected the site<br />

for a pharmacy in Maitland in 1904, he<br />

chose the highest point in the<br />

shopping area, above the level of<br />

Maitland's periodic floods. As a result<br />

the pharmacy has been spared.<br />

0 There are more than 210 Soul Pattinson<br />

Chemists nationwide.<br />

Ill


®<br />

The Rice Food Experts<br />

THE MARKET<br />

Rice enjoys a wide reputation as a nutritious and<br />

healthy food. This reputation is richly deserved.<br />

Rice, as an excellent source of carbohydrate, is a<br />

good energy supply, is low in fat and low in salt,<br />

contaillS no cholesterol, is low in sugar and contains<br />

no gluten, additives or preservatives.<br />

<strong>Australia</strong>ns are health conscious and active<br />

people who are becoming increasingly wel l<br />

educated about nutrition. These factors have<br />

certainly played their prut in the increase of rice<br />

consumption in <strong>Australia</strong> over the past few yeru·s.<br />

On average, each <strong>Australia</strong>n eats over ten kilogrruns<br />

of rice annually.<br />

SunRice is <strong>Australia</strong>'s leading rice food company<br />

and has experienced a decade of aggressive growth<br />

and value creation. Wholly owned by NSW rice<br />

farmers, SunRice exports 80 per cent of its<br />

production, representing 4 per cent of world trade.<br />

With annual exp01t sales of$400 million, SunRice is<br />

<strong>Australia</strong>'s largest ex porter of branded food<br />

products and the fourth lru·gest rice food company<br />

in the world. <strong>Australia</strong>n rice is marketed to<br />

over 60 countries with Papua New Guinea,<br />

Japan, Hong Kong and Saudi Arabia as the<br />

major mru·kets.<br />

ACHIEVEMENTS<br />

Consumption of rice has doubled in <strong>Australia</strong><br />

over the past ten years, and<br />

SunRice can take much of the<br />

credit for this. SunRice has<br />

played a major role in raising the<br />

awareness of the <strong>Australia</strong>n public<br />

to the benefits of ri ce as a hi gh<br />

energy food. A stream of new<br />

products and new flavours, the result<br />

of intensive breeding programs and mru·ket reseru·ch,<br />

has helped to promote public interest and to keep<br />

up with changing tastes and fashions. Today there<br />

is a greater interest than ever before in international<br />

rice-based foods, patticularly Asian, Middle Eastern<br />

and Mediterranean dishes.<br />

Rice in <strong>Australia</strong> is grown in southern New South<br />

Wales where conditions for the crop ru·e close to<br />

perfect. The limited size of the crop's geographical<br />

spread helps SunRice to maintain a product of<br />

consistent quality. At the sa111e time the excellence<br />

of <strong>Australia</strong>n growing conditions means that quality<br />

is not simply uniform, but consistently among the<br />

best in the world. Yields a~·e spectacular. <strong>Australia</strong>n<br />

rice farmers achieve an average yield of I 0 tonnes<br />

per hectare, which is one of the highest in the world.<br />

SunRice is leading the way with the development<br />

of innovative value-added rice based products in<br />

the area of quick-cooking rice meal solutions and<br />

rice based snack foods. SunRice now produces<br />

quick-cooking flavoured rice side dishes, three<br />

minute rice snacks and flavoured rice cakes.<br />

HISTORY<br />

Rice was introduced in <strong>Australia</strong><br />

in the 20th century, and was first<br />

cultivated by Isaburo (J o) Takasuka,<br />

a Japanese immigrant who aJTived<br />

in 1905 with his fam ily and I 5 bags<br />

of medium grain Japonica rice. In 19 14 Jo grew<br />

<strong>Australia</strong>'s first successful commercial crop neru·<br />

Swat1 Hill , Victoria. After hearing about the<br />

developing Murrumbidgee Irrigation Area (MIA),<br />

he sent his eldest son Sho to the Yanco experiment<br />

farm in New South Wales with bags full of grain<br />

from the crop. The seed was grown in rice trials in<br />

the MIA and this was the beginning of the<br />

<strong>Australia</strong>n rice industry.<br />

Today, <strong>Australia</strong>n rice is still grown in the<br />

Murrumbidgee Irrigation Area and the Murray<br />

Valley, both in New South Wales. Nowadays more<br />

than 2500 <strong>Australia</strong>n ricegrowers produce an annual<br />

crop of some 1.3 million tonnes from I 52,000<br />

hectares. SunRice is <strong>Australia</strong>'s most successful<br />

producer co-operative and the largest of its type in<br />

the world.<br />

THE PRODUCT<br />

SunRice offers a rice for every occasion as well as<br />

a wide range of value-added rice products. Core<br />

rice products include long-grain, medium grai n,<br />

white and brown, Parboiled, Jasmine, Arborio,<br />

Japanese-style sushi rice, Basmati, Doongat·a, Wild<br />

Blend and quick-cooking brown rice.<br />

SunRice value-added products include snacks<br />

and meal solutions. SunRice Rice Cakes and<br />

flavoured rice cakes, rice side dishes and eXpress<br />

3 minute rice packs and cups. SunRice rice is also<br />

widely used in breakfast cereals, most notably in<br />

Kellogg's Rice Bubbles, and in the manufacture of<br />

snack foods, frozen meals, convenience foods and<br />

rice 'milk' .<br />

RECENT DEVELOPMENTS<br />

The Australiru1 rice industry invests in a large<br />

amount of research to develop new and more<br />

112


efficient varieties of rice. SunRice now cultivates<br />

almost all varieties of rice in <strong>Australia</strong>, which are<br />

developed after several years of testing to ensure<br />

the rice has precisely the right flavour, combined<br />

with high nutrition and ease of cooking.<br />

<strong>Australia</strong>ns a~·e experimenting with and eating a<br />

larger variety of cuisines, and this trend continues<br />

to grow. This has also meant an increase in usage<br />

of "specialty" rice varieties. In pruticular Basmati,<br />

Jasmine and Arborio rice ru·e becoming more and<br />

more populru·, as consumers' palates take to Indian,<br />

Asian and Mediterranean cuisines. The key to<br />

success for many international dishes is the right<br />

rice for the right dish- therefore, the SunRice World<br />

Rices range assists in completing the perfect meal.<br />

SunRice World Rices help the consumer choose<br />

the "right rice" and this helps to enhance and<br />

complement the flavour of the meal.<br />

SunRice Basmati aromatic long grain rice is well<br />

suited to Indian and Middle Eastern dishes such<br />

as curries. SunRice Jasmine fragrant long grain rice<br />

is ideal for Asian dishes such as stir-fries. SunRice<br />

Arborio medium grain rice is used mainly for<br />

Mediterranean di shes such as risotto. SunRice<br />

Japanese-style sushi rice, a short grain rice, is<br />

petfect for creating authentic Japanese dishes.<br />

SunRice innovation has focused on improving<br />

and further developing its product offerings,<br />

keeping quality, convenience and taste all at the<br />

top of mind. In the meal solutions and convenience<br />

food categories, 2002 saw the successful re-launch<br />

of the SunRice Rice Side Dishes and the SunRice<br />

eXpress 3 minute rice range. More recently SunRice<br />

has extended its rice cake product portfolio and<br />

has launched a range of flavoured rice cakes.<br />

SunRice has led innovation in thi s category by<br />

offering the first product of its kind<br />

into the <strong>Australia</strong>n grocery mat·ket.<br />

SunRice has also launched "SunRice<br />

Pour & Store" which is <strong>Australia</strong>'s<br />

favourite Premium White Long<br />

Grain rice, in a convenient bottle<br />

pack. The lid also acts as a 1 /2<br />

cup measure, making it easier to<br />

cook the right amount of rice<br />

every time.<br />

PROMOTION<br />

The original SunRice rice<br />

sculptures campaign ran for ten<br />

yeat·s from 1989- 1999. Over the<br />

course of the campaign rice<br />

consumption doubled In<br />

<strong>Australia</strong>. The campaign was a major success for<br />

the brand and is recognised as having made<br />

SunRice famous. In 2002, SunRice re-visited the<br />

rice sculptures creative idea and re-vamped this<br />

campaign, in order to get rice at the top of<br />

consumers' minds once again. Three new rice<br />

sculpture ads were produced highlighting the health<br />

benefits of rice, the different varieties of rice SunRice<br />

produces and offering rice as an easy substitute<br />

for the sometimes labour intensive mash potatoes.<br />

The re-launched SunRice eXpress products and<br />

rice side dishes were supp01ted to achieve maximum<br />

awru·eness and communicate the key benefits of all<br />

the products. The campaign, which took place eat·ly<br />

2003, was titled "Perfect" which showed people<br />

doing not-so-petfect things with the message that<br />

"No-one's perfect, but SunRice eXpress cups/rice<br />

side dishes come close" This campaign<br />

communicated the key benefits of each product in<br />

a relevant, and slightly humorous way, helping to<br />

continually build SunRice as a contemporat·y food<br />

brand.<br />

The eXpress campaign<br />

was also extended to outdoor media and more<br />

recently (September 2003) a magazine campaign<br />

was run for the eXpress cup range<br />

demonstrating why SunRice eXpress cups ru·e<br />

a better way to fill gaps between meals, over<br />

common higher-fat noodle and<br />

pasta products.<br />

The launch of SunRice<br />

flavoured rice cakes was<br />

supported by an outdoor<br />

campaign, which was<br />

executed to generate<br />

awareness of the new<br />

product offering from<br />

SunRice. This campaign<br />

highlighted the flavour hit<br />

you get from the flavoured<br />

rice cakes and that "you<br />

just can't get enough".<br />

BRAND VALUES<br />

SunRice, the <strong>Australia</strong>n icon in rice, has historically<br />

been renowned for tl1e marketing of SunRice Calrose<br />

Medium Grain Rice. Today, the SunRice range<br />

includes a rice suited not only to many cuisines<br />

but also to many eating occasions, including<br />

snacks. Although the SLnlRice brand has extended<br />

its range beyond regula~· pillow bags of rice, the<br />

brand remains familiar and highly trusted across its<br />

entire range of products.<br />

The vibrant yellow and red 'sun colours' of the<br />

SunRice logo ru·e synonymous with wholesome,<br />

natural and pure food. SunRice, 'The Rice Food<br />

Experts', is a long established yet contemporat·y<br />

food brand. Steeped in the tradition of quality<br />

<strong>Australia</strong>n rice, SunRice now embodies both quality<br />

and innovation to suit the needs of the modern<br />

food mat·ket.<br />

~<br />

MEXICAN<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

SUNRICE<br />

0 Sun Rice was awat·ded the prize for Best<br />

Regional Exporter of the yeru· in 2003.<br />

0 The United Nations proclaimed 2004<br />

International Yeru· of Rice (IYR) at the<br />

fifty-seventh session of the United<br />

Nations General Assembly noting tl1at<br />

rice is the staple food of more tl1at1 half<br />

the world's population.<br />

0 In 200l/02, approximately 589 million<br />

tonnes of paddy rice was produced<br />

worldwide. China and India were the<br />

lmgest producers.<br />

0 Up to 40 million people eat <strong>Australia</strong>n<br />

rice a~·ound the world each day.<br />

0 <strong>Australia</strong>n rice growers have improved<br />

their water use efficiency by 60 per<br />

cent in tl1e past I 0 yeat·s.<br />

[ 13


THE MARKET<br />

Telecommunications remains a dynamic and<br />

exciting industry and will continue to have a<br />

significant impact on every <strong>Australia</strong>n and the well<br />

being and prosperity of this country.<br />

Mobile phones now outnumber fixed line<br />

connections. Telstra's national digital GSM and<br />

COMA networks provide more than 97 per cent of<br />

<strong>Australia</strong>ns with access to a mobile phone service.<br />

Most <strong>Australia</strong>ns have online access either at<br />

home or at work. The ABS figures to March, 2002<br />

reveal <strong>Australia</strong> had 4.2 million Internet subscribers<br />

- 3.7 million households and just over 0.5 million<br />

business and government.<br />

Since then, the amount of time <strong>Australia</strong>ns are<br />

spending online passed six billion minutes a month<br />

- a figure that is growing rapidly, encouraged by<br />

the availability of broadband connections.<br />

BigPond's Broadband subscribers increased to<br />

287,724 in the second half of2002, more than double<br />

CONN[CT AT 131GPOND COM OR CALl Ill ~S'J<br />

w It A T A II E y 0 u w A I T I N G F 0 II ? B I G E~ ... ~ ·<br />

the same period in 2001 , and are on track towards<br />

the overall target of one million subscribers by 2005.<br />

<strong>Australia</strong>ns make around one billion local phone<br />

calls a month and spend about four billion minutes<br />

a month talking on the phone<br />

SMS is becoming a recognised tool for<br />

businesses to improve productivity. SMS activity<br />

grew substantially in the second half of 2002, and<br />

in December alone ,<strong>Australia</strong>ns sent each other over<br />

250 million messages with almost !8 million sent<br />

across all mobile networks on New Year's Eve.<br />

ACHIEVEMENTS<br />

Recently, as Official Worldwide Telecommunications<br />

Partner, Telst.ra was responsible for<br />

providing telecommunications services for the<br />

Rugby World Cup 2003 tournament across all<br />

venues in <strong>Australia</strong> - helping to bring alive the<br />

excitement of one of 2003's biggest international<br />

sporting events.<br />

HISTORY<br />

In 1901 the Postmaster General's Deprutment (PMG)<br />

was established to manage all domestic telephone,<br />

telegraph and postal services. The year 1914 saw<br />

the debut of automatic telephony.<br />

In 1946 the Commonwealth established the<br />

Overseas Telecommunications Commission to<br />

manage <strong>Australia</strong>'s growing international<br />

telecommunications.<br />

The 1960s gave telephone users the<br />

convenience of automatic STD dialling. It was an<br />

era that saw PMG develop into one of the country's<br />

most significant construction companies, as<br />

technicians crossed the land connecting no1th to<br />

south and east to west; a massive automation<br />

project that reached completion almost 30 years<br />

later in Mudgee, west ofNSW's Blue Mountains.<br />

By 1975, the Commonwealth Government<br />

separated the functions of post office and domestic<br />

telecommunications, creating <strong>Australia</strong> Post and<br />

the <strong>Australia</strong>n Telecommunications Commission,<br />

trading as Telecom <strong>Australia</strong>. The Overseas<br />

Telecommunications Corporation continued to<br />

handle international access.<br />

In 1989 the Commission became the <strong>Australia</strong>n<br />

Telecommunications Corporation, and three years<br />

later OTC and Telecom <strong>Australia</strong> merged to create<br />

the <strong>Australia</strong>n and Overseas Telecommunications<br />

Corporation Limited (AOTC).<br />

By 1993 the deregulation of the domestic market<br />

was under way. On July I , 1995, the organisation's<br />

local trading name changed to Telstra.<br />

In early 2003, Telstra connected its 12 millionth<br />

mobile service and launched new technology which<br />

combines voice, data, internet access and<br />

computing functions in a single, hand-held mobile<br />

communication device, known as a BlackBerry.<br />

Today, Telstra faces the future confident in the<br />

achievements of a century of service, and<br />

continuing to lead the way in the evolution of<br />

telecommunications as <strong>Australia</strong>'s leading global,<br />

full service provider.<br />

THE PRODUCT<br />

Telstra has recently invested in developing and<br />

introducing new fixed-line products, launching<br />

state-of-the-aJt technology that enables customers<br />

to tell the phone what to do. The voice command<br />

system ' I # Telstra Feature Assistant' activates<br />

features such as Call Waiting and Call Forward.<br />

July 2003 saw the launch of 'Telstra Home Messages<br />

10 I TM' - a free message service for residential<br />

customers.<br />

A revolution is alrea:ly occurring in wireless data.<br />

Usage of traditional SMS is increasing, as are new<br />

wireless data applications such as entertainment<br />

and transaction, information and location services.<br />

As well as voice, today' s mobiles can transmit text<br />

messages, access the internet, download emails,<br />

buy a soft drink hom a vending machine and pay<br />

for parking. T he mobil e can be a phone, an<br />

organiser, a radio, an electronic wallet, a video<br />

camera, a still camera and an emai l centre all in one.<br />

The internet has increasingly become a natural<br />

part of how we work, study, li ve, relax and keep in<br />

114


touch. Reliable dial-up internet is available across<br />

<strong>Australia</strong> via a fixed telephone line. Broadband has<br />

become the next wave, taking <strong>Australia</strong>ns another<br />

step towards utilising the internet to its full potential.<br />

RECENT DEVELOPMENTS<br />

Telstra plays a critical role in influencing future<br />

communications technology, and is always looking<br />

for innovative ideas. In the future, Telstra sees a<br />

range of new applications, based on mobile data,<br />

interactive TV and voice technology:<br />

WLAN (Wireless Local Area Network): Telstra<br />

'Wireless Hotspots' deliver high-speed internet<br />

without wires. WLAN technology enables users<br />

to connect wirelessly to their existing home or office<br />

internet, potentially at speeds as fast as a home<br />

broadband connection, all through their laptop or<br />

handheld computer (where coverage allows).<br />

Customers can charge their usage directly to their<br />

Telstra mobile phone accounts.<br />

Lyrebird: Developed by Telstra Research<br />

Laboratories, Lyrebird is a tool for developers to<br />

rapid ly create a nd deploy<br />

complex and high-quality<br />

natural language speech<br />

applications, which enable<br />

people to speak naturally to a<br />

computer.<br />

SMS FIND: is a prototype<br />

service developed by Telstra<br />

Research Laboratories that will<br />

a llow users to search for<br />

facilities and services in a<br />

desired area. To find the nearest<br />

chemist, for example, users need<br />

only to type the word 'chemist'<br />

into their mobile phone and<br />

SMS FIND will respond via<br />

SMS with the information.<br />

Mobile EFTPOS: allows retail EFTPOS<br />

transactions (debit and credit) to take place over<br />

the Telstra GSM network using either GSM (Circuit<br />

Switch) or GPRS. The service gives identical<br />

functionality to a fixed EFTPOS service. It offers a<br />

payment option when there is no fixed phone line,<br />

such as in a taxi or at the markets.<br />

PROMOTION<br />

Telstra is committed to the <strong>Australia</strong>n community<br />

and this support extends to sport, arts and<br />

community sponsorships, enabling Telstra to<br />

connect with communities across a broad range of<br />

interests, supp01ting vital services for the benefit<br />

of the community and making the arts more<br />

accessible to the wider community. This is being<br />

achieved through a range of initiatives including<br />

free entry to exhibitions, online programs,<br />

workshops and regional tours.<br />

• Telstra introduced the Telstra and <strong>Australia</strong>n<br />

Governments' Small Business Awru·ds in 1992 to<br />

recognise the achievements and enterprising spirit<br />

of sma ll businesses across <strong>Australia</strong>. Telstra<br />

developed the awards to help profile <strong>Australia</strong>n<br />

small businesses.<br />

• The Telstra Business Women's Awards is a<br />

unique program designed to recognise and<br />

celebrate the remarkable achievements of <strong>Australia</strong>n<br />

business women. The awards were created by<br />

Telstra in 1995 and recognise the enormous<br />

contribution women make to both the business<br />

sector and the general<br />

community<br />

• Bangan·a Dance Company<br />

reflects the life experiences and<br />

attitudes of contemporary<br />

indigenous communities.<br />

• Telstra's association with<br />

The <strong>Australia</strong>n Ballet is now<br />

in its 20th year.<br />

• Telstra's sponsorship of<br />

the National Aboriginal and<br />

Torres Strait Islander Art<br />

Award has helped raise the<br />

profile of indigenous artists<br />

and has contributed to it being<br />

recognised as the most prestigious award for<br />

indigenous art in <strong>Australia</strong>.<br />

• Telstra's support of the MCA (Museum of<br />

Contemporary Art), located in Sydney, makes<br />

modern art accessible to more people by funding<br />

the free admission policy. Telstra' s support of<br />

regional tours and online chats with artists via<br />

Telstra.com has further widened MCA's ability to<br />

bring art to the people of <strong>Australia</strong>.<br />

• Telstra is Principal Prutner of the Sydney Cancer<br />

Centre as well as principal sponsor of the Sydney<br />

Cancer Centre's Telemedicine Outreach Program<br />

which aims to help enhance the delivery and<br />

improve the quality of care, access, education and<br />

research for cancer patients and families in rural<br />

<strong>Australia</strong>.<br />

• Telstra's suppOitofChild Flight enables medical<br />

retrieval when needed by sick babies and children.<br />

Each helicopter carries two intensive care units,<br />

four medical staff and two pilots and each has a<br />

faster response time than any other helicopter used<br />

for medical retrieval in New South Wales or the<br />

<strong>Australia</strong>n Capital Territory.<br />

• In 2001 , Telstra pledged $1.25 million over five<br />

years to the Victor Chang Cardiac Research Institute<br />

to assist a major research project on exploring<br />

muscle cell development and biology, and the<br />

moleculru· machinery regulating protein production<br />

in the hemt and other tissues.<br />

• Telstra's commitment to sport in <strong>Australia</strong><br />

covers a diverse range of sporting prope1ties, which<br />

includes suppmting the development of athletes,<br />

from the elite through to grassroots pruticipation.<br />

<strong>Australia</strong>n Swimming, <strong>Australia</strong>n Paralympic<br />

Committee, Athletics <strong>Australia</strong>, National Rugby<br />

League, and SUif Life Saving <strong>Australia</strong>. This also<br />

includes BigPond's sponsorship of the V8<br />

Supercru·s.<br />

Telstra also provides support to state-of-the art<br />

sporting and entertainment venues: Melbourne's<br />

Telst:ra Dome and Sydney's Telst:ra Stadium.<br />

Through Jl11tJatives such as Telstra<br />

HeroMessaging, hosting and development of<br />

official websites, development clinics, regional road<br />

shows, promotions and competitions, Telstra aims<br />

to provide Australiru1s with greater access to their<br />

sporting heroes, support community pmticipation<br />

in sp01t and enhance the development of sport in<br />

<strong>Australia</strong>.<br />

BRAND VALUES<br />

As <strong>Australia</strong>'s connection to the future, Telstra' s<br />

mission is to develop, design and deliver great<br />

communications solutions to every customer.<br />

To supp01t this business vision, Telstra's brand<br />

strategy focuses on three core brand messages -<br />

caring, clever and trustwOithy. Telstra strives to be<br />

caring by being warm, friendly and listening to<br />

customers needs; clever by delivering products/<br />

services which solve every day issues; and most<br />

of all trustworthy, by providing leadership, keeping<br />

promises and being community oriented.<br />

The focus is to ensure that Telstra delivers on<br />

each of these messages in every one of its customer<br />

touch-points.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

TELSTRA<br />

On a typical working day, Telstra' s people:<br />

0 connect ru·ound 30 million calls;<br />

0 receive approximately 130,000 retail<br />

customer enquiries;<br />

0 install more than 3,600 services; and<br />

0 receive more than 850,000 directory<br />

assistance calls.<br />

115


THE MARKET<br />

While <strong>Australia</strong> is a wealthy country,<br />

there is a growing sense of another class<br />

of people emerging, trapped in a cycle<br />

of poverty and despair.<br />

Homelessness, a crisis in our ability<br />

to care for older people, family<br />

breakdown and conflict, alarming levels<br />

of domestic violence and sexual abuse,<br />

inadequate provision for the mentally<br />

ill, and problems arising from drug,<br />

alcohol and gambling related addictions,<br />

are growing challenges faced by the<br />

community and The Salvation Army.<br />

ACHIEVEMENTS<br />

The Salvation Army - affectionately<br />

known as 'the Salvos' - is one of this<br />

country' s most loved organisations,<br />

with research revealing it is the most<br />

highly thought of charity in <strong>Australia</strong>.<br />

The Salvation Army's 'Christianity<br />

with its sleeves rolled up' ethos has<br />

endeared it to the <strong>Australia</strong>n public, in a<br />

country where religion has always<br />

struggled to gain acceptance.<br />

A reputation for being at the frontline<br />

of need was largely achieved through<br />

the strong presence of Salvation Army<br />

officers amongst <strong>Australia</strong>n armed<br />

forces in times of war. Assisting the troops, burying<br />

the dead, and dispensing cups of tea, the Salvos<br />

were considered to be as much a part of the fighting<br />

forces as the soldiers themselves.<br />

The battle has not ended, and in times of<br />

emergency and national disaster today, the Salvos<br />

are still there, offering comfort and suppott. Recent<br />

years have seen ordinary <strong>Australia</strong>ns facing<br />

extraordinary disasters including the worst drought<br />

on record and devastating bushfires that destroyed<br />

hundreds of homes in <strong>Australia</strong>'s Capital and in<br />

NSW and Queensland. Following the Canberra<br />

bushfires of January, 2003, teams of Salvation<br />

Army Emergency Services (SAES) volunteers fed<br />

more than 3,000 people, while others at the ACT<br />

Bush.fire Recovery Centre met displaced people,<br />

directed them to relevant<br />

agencies and provided a<br />

listening ear.<br />

TheSalvationArmy's<br />

commitment to being<br />

there for <strong>Australia</strong>ns in<br />

crisis was particularly<br />

evident following the<br />

tragic Bali Bombings of<br />

October 2002. SAES<br />

teams and chaplains<br />

were at Sydney<br />

International Airport, as<br />

well as other <strong>Australia</strong>n<br />

airports and hospitals,<br />

comforting and<br />

counselling victims and their families,<br />

tourists, airport and airline staff and<br />

emergency services personnel.<br />

The growing battle against povetty,<br />

addiction and despair rages daily for<br />

many <strong>Australia</strong>ns and their families, and<br />

probably the most important aspect of<br />

Salvation Army work is its provision of<br />

caring social and community services<br />

from day to day.<br />

Every year throughout <strong>Australia</strong> The<br />

Salvation Army:<br />

Assists 1.08 million people;<br />

Locates about 2,000 people through<br />

the Family Tracing Service;<br />

Meets more than 520,000 crisis<br />

requests;<br />

Assists more than 3,000 women<br />

through domestic violence services;<br />

Provides court and prison support<br />

to people at the rate of 440 every day;<br />

Accommodates 2,250 homeless<br />

people each night.<br />

HISTORY<br />

The Salvation Army was founded in 1865<br />

in the slums of London by a former<br />

Methodist minister, William Booth, who<br />

wanted to make the church more<br />

accessible to the whole community. At<br />

the time, many poor and working class people were<br />

excluded from the churches. Originally known as<br />

the Christian Mission, the name 'The Salvation<br />

Army' was adopted in 1878 and since then the<br />

organisation's structure has been based on military<br />

lines.<br />

Initially Booth's Christian Mission intended to<br />

gatherthe povetty-stricken multitudes of London' s<br />

East End and link them up with existing churches.<br />

However, as such people were regarded as outcasts<br />

and were not welcomed by the wealthy and<br />

respectable church members of the day, Booth was<br />

forced to provide a more permanent organisation<br />

for the ongoing spiritual care of his convetts.<br />

Booth' s concern for the destitute masses of<br />

England was not only spiritual. The more he learned<br />

of the plight of the thousands spurned by Britain 's<br />

industrial revolution, the more determined he was<br />

to see lasting social change.<br />

From the Army' s earliest days, various social<br />

programs had grown up alongside the mission's<br />

spiritual ministry, including food shops, shelters,<br />

and homes for 'fallen' girls.<br />

However, these were just the first elements in a<br />

98


oad scheme. In the early 1890s Booth published<br />

'In Darkest England' , an ambitious and complex<br />

plan to deliver England from its social woes. Soon<br />

Booth opened labour exchange services, which<br />

would place thousands of unemployed persons in<br />

jobs. Discovering that some 9,000 people dropped<br />

from sight in London each year, he established a<br />

missing persons bureau. He dreamt of a fatm colony<br />

where derelicts could be given honest labour and<br />

pleasant surroundings. He wanted to establish a<br />

poor man's bank; he offered legal aid to the destitute<br />

and he envisaged an emigration scheme which<br />

would develop a new overseas colony. Throughout<br />

the 1890s there was a need to find work for the<br />

jobless, so the Army created jobs by venturing into<br />

business itself.<br />

From this began a network of social service<br />

which continues today in I 08 countries of the world.<br />

On September 5, 1880, Edward Saunders and<br />

John Gore led the first Salvation Army meeting in<br />

<strong>Australia</strong> from the tailgate of a greengrocer's cart<br />

in Adelaide's Botanic Pru·k.<br />

When Gore said: "If there's a man here who<br />

hasn't had a square meal today, let him come home<br />

to tea with me," he was expressing the Army' s<br />

concern for a person's physical as well as spiritual<br />

needs.<br />

From this humble beginning, The Salvation<br />

Army grew rapidly in <strong>Australia</strong>. Surprisingly,<br />

pioneer Salvationists faced rowdy and sometimes<br />

violent opposition, with at least two members being<br />

fatally injured. However, by 1890 mob attacks had<br />

virtually disappeared and by 1901 Salvationists<br />

comprised more than 1 per cent of the population.<br />

THE PRODUCT<br />

Today, The Salvation Army' s network of caring<br />

services is as wide-ranging and diverse as the areas<br />

of need in the <strong>Australia</strong>n community.<br />

Areas of service include:<br />

Family and community welfare centres<br />

providing emergency assistance, including food,<br />

clothing, furniture, counselling and referral.<br />

Child care services and camps for<br />

economically disadvantaged children and single<br />

mothers.<br />

Hostels and supported accommodation<br />

facilities for homeless men, women, young people<br />

and families in crisis.<br />

Refuges for women and their children<br />

fleeing domestic violence situations.<br />

I<br />

Long term rehabilitation programs for those<br />

addicted to alcohol, drugs or gambling.<br />

Youth care centres and outreach programs<br />

for those living on the streets.<br />

Telephone counselling, financial and<br />

professional counselling, trauma management, grief<br />

and suicide support groups.<br />

Court and prison chaplaincy.<br />

Employment and training programs.<br />

Family tracing service to help find missing<br />

persons.<br />

Emergency services, providing assistance<br />

in times of disaster or emergency.<br />

Chaplains offering support to police, fire<br />

brigade, emergencies and defence forces personnel.<br />

Rural chaplains.<br />

Outback flying service.<br />

English speaking classes for migrants.<br />

Aged care services including nursing<br />

homes and hostel care.<br />

Social education, training and supported<br />

accommodation for intellectually disabled people.<br />

Visitation to hospitals, nursing homes and<br />

people 'shut-in' in their own homes.<br />

RECENT DEVELOPMENTS<br />

The Salvation Army in <strong>Australia</strong> is increasingly<br />

being regarded by governments and business as<br />

an effective, efficient, caring model for social welfare,<br />

recovery services and youth and family support.<br />

The Salvation Army Employment Plus, a central<br />

part of the Government's provision of employment<br />

services, continues to achieve outstanding success<br />

with more than 3,500 people each week assisted to<br />

find work.<br />

The Salvation Army's Bridge Program continues<br />

to lead the way in drug, alcohol and gambling<br />

rehabilitation, with the programs expanding<br />

significantly in recent years to accommodate<br />

increased demand. As part of a caring community,<br />

The Salvation Army continually provides and<br />

develops family and individual support, meeting<br />

present needs effectively and focusing on<br />

developing basic skills to overcome the 'traps and<br />

tensions' of modern society.<br />

PROMGnON<br />

Each year The Salvation Army launches an<br />

integrated communication campaign to promote its<br />

Red Shield Appeal fundraising drive, which<br />

includes a business appeal, direct mail campaign<br />

and a national doorknock weekend.<br />

The communication campaign utilises not only<br />

main media such as television, radio, press, outdoor,<br />

bus sides, magazine and cinema, but also links into<br />

other communication techniques such as ' J 3'<br />

telemarketing numbers, sales promotion ideas,<br />

McDonald's traymats, promotional videos and<br />

direct response mailing.<br />

All advertising time and space given to The<br />

Salvation Army is donated free of charge by the<br />

media which helps ensure that 83 cents in every<br />

dollar donated to the Army goes directly to the<br />

point of need.<br />

The overall public relations program of The<br />

Salvation Army underpins and supports the<br />

communication crunpaign to promote the Red Shield<br />

and Christmas appeals. The position of The<br />

Salvation Army on specific issues is communicated<br />

consistently to produce awareness of issues and<br />

solutions, as well as recognition of the one-to-one<br />

hope and care The Salvation Army offers to<br />

individuals, families and the community.<br />

BRAND VALUES<br />

Research reveals that the popular Salvation Army<br />

slogan 'Thank God for the Salvos' has almost total<br />

recognition amongst the <strong>Australia</strong>n public,<br />

achieving 93 per cent aided awareness.<br />

The Salvation Army consistently comes out in<br />

reseru·ch as the charity people would most like to<br />

donate to (named spontaneously).<br />

Similarly the Red Shield logo is widely<br />

recognised, even sought after by companies<br />

wishing to link their brand with this solid emblem<br />

of caring social service.<br />

The uniform also gives the Salvos a very visible<br />

presence, often creating a sense that they are<br />

'everywhere', although uniformed Salvationists are<br />

actually a very small percentage of the <strong>Australia</strong>n<br />

population.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

THE SALVAnON ARMY<br />

0 Eighty-three cents in every dollar<br />

donated to The Salvation Army goes<br />

directly to those in need. This is one of<br />

the most efficient rates of any chru·ity in<br />

<strong>Australia</strong>.<br />

0 It is thought that the name of the<br />

popular biscuit by Arnotts, SAO,<br />

stands for 'Salvation Army Officer'.<br />

0 The first moving pictme film in<br />

<strong>Australia</strong>, 'Soldiers of the Cross', was<br />

made by The Salvation Army.<br />

0 Red-tipped 'safety matches' were<br />

introduced by The Salvation Army in<br />

England during the 1890s at a time<br />

when matches were still produced<br />

using poisonous yellow phosphorus<br />

which caused the fatal disease 'Phossy<br />

Jaw' in poor factory workers.<br />

0 The Salvation Army successfully<br />

campaigned to have the age of consent<br />

in the UK raised from 13 years of age to<br />

16yearsdming 1885.<br />

0 'Strawberry Field' was a Salvation<br />

Army children's home where John<br />

Lennon of The Beatles spent time as a<br />

child.<br />

99


THE MARKET<br />

In a cluttered marketplace with many different<br />

messages and media vying for attention, it is the<br />

quality products and trusted brands that hold their<br />

own against the communications noise. TIME,<br />

which has been delivering authoritative information<br />

and balanced insight on the events that shape our<br />

world for more than 80 years, is one of those brands.<br />

The most well-known and trusted media brand<br />

around the globe, TIME boasts a worldwide<br />

circulation of5.4 million, with 30.1 million readers in<br />

over I 80 countries. This breadth of coverage is no<br />

small feat considering the challenges of<br />

transcending international borders and appealing<br />

to people of widely differing cultures. It is TIME' s<br />

rigorous reporting and fact-checking, along with<br />

its recognition that issues have different impacts<br />

in different regions, that have enabled it to achieve<br />

globaJ exposure and compete as successfully in<br />

regional markets as it does in the United States.<br />

TIME South Pacific has succeeded in rising to<br />

the challenge in extremely competitive AustraJian<br />

and New Zealand markets that in recent years have<br />

seen an unprecedented proliferation of<br />

magazines-from specialist to business,<br />

homemaker, lifestyle and food titles. Within this<br />

competitive magazine environment, TIME has<br />

maintained and enlarged its niche, creating strong<br />

brand loyalty among advettisers and readers alike.<br />

TIME enjoys a unique position in the South<br />

Pacific as the onJy international newsmagazine to<br />

offer advertisers exposure in both <strong>Australia</strong>n and<br />

New Zealand editions. Its corrunitment to the tried<br />

and tested TIME values of delivering in-depth,<br />

FI FTEEN CE1-.'TS<br />

TIME<br />

The \'V'eekly News-Magazine<br />

authoritative analysis and repotting to readers in<br />

different parts of the world has helped make it the<br />

leading magazine in its competitive set in both<br />

readership and circulation.<br />

ACHIEVEMENTS<br />

TIME has always been characterised by relevance<br />

and forward thinking, and the magazine' s original<br />

premise-to keep busy people well informed about<br />

world events - is as relevant today as it was in<br />

1923.<br />

In its SO-year career, TIME has built an unrivalled<br />

global reach that has allowed TIME repotters, and<br />

ultimately its readers, the oppottunity to meet with<br />

world leaders and be at the coalface of world events<br />

enabling them to experience the enormity of many<br />

history mak.ing moments. For example, TIME<br />

secured Mikhail Gorbachev' s first face-to face<br />

interview with Western media in 1985; contributor<br />

Hugh Sidey was riding SO metres behind President<br />

Kennedy on that fateful day in 1963; and Executive<br />

Editor Chris P01terfield was backstage at The Ed<br />

Sullivan Show when The Beatles made their first<br />

appearance in 1964.<br />

TIME has set the benchmark both in journalism<br />

and publishing practices with its focus on breaking<br />

news, photographic excellence and journalistic<br />

integrity. It is TIME's integrity and rep01t.ing savvy<br />

that has led to media outlets adopting its vernacular.<br />

In 1939TIME's Executive Editor, Frank Norris was<br />

credited with naming World War II. TIME also lead<br />

the way in the publishing arena when it created the<br />

first ever annual subscription in 1929 with its<br />

perpetual subscriptions priced at sixty dollars. In<br />

1965 the US post office honoured TIME for<br />

developing the zip code (a system that was<br />

developed to speed up TIME subscriptions<br />

deliveries).ln the South Pacific, TIME is one of the<br />

few magazines built on a subscription model,<br />

secunng more than 80 per cent of sales by<br />

subscription.<br />

HISTORY<br />

Over 80 years ago in 1923, TIME magazine printed<br />

its first edition, the brainchild of Yale graduates<br />

Briton Hadden and Henry Luce. It was a slender IS<br />

116


cent leaflet printed in black and white on newsprint.<br />

Within four years of its launch TIME had turned a<br />

profit and within six it had a circulation of200,000.<br />

The public seemed to enjoy Luce and Hadden' s<br />

rep01tage style which provided news but gave it<br />

the drama and narrative pace of a novel.<br />

By 1958 the magazine had more than 400<br />

reporters and 33locations worldwide. A network of<br />

bureaus remains at the core of the magazine's news<br />

gathering system today and the editorial process<br />

has changed little. Correspondents are sent out to<br />

gather facts , in-house reporters check them for<br />

accuracy and writers and senior editors shape them<br />

into vivid stories.<br />

ln its first decade, TIME established traditions<br />

that remain an intrinsic part of the magazine's<br />

identity today. In 1927 TIME introduced the<br />

trademark red border and the annual Man (now<br />

Person) Of The Year issue which names the person<br />

who most influenced the world for better or worse<br />

in the year just past.<br />

In 1961 TIME ran its first edition with local<br />

<strong>Australia</strong>n advettising but it wasn' t until 1986 that<br />

the first <strong>Australia</strong>n issue with local editorial pages<br />

was published.<br />

Today, TIME magazine continues to operate<br />

under Time Inc, which is the publishing arm of its<br />

parent company Time Warner, the world's leading<br />

media and entertainment company.<br />

TrME magazine is a remarkable illustration of<br />

how a good idea can shape history for decades<br />

and how a product can transform itself into one of<br />

the world's most recognised and trusted brands.<br />

THE PRODUCT<br />

From its humble beginnings TIME remains the<br />

world leader as the largest and most successful<br />

newsmagazine, renowned for its journalistic<br />

excellence and innovation.<br />

TIME is the only international newsmagazine<br />

with regional editors who customise editions,<br />

including the South Pacific, so they are relevant<br />

and meaningful to local readers. Regional editorial<br />

teams have the unique ability to draw on the<br />

advanced editorial resources of other international<br />

editions and other Time Inc. magazines such as<br />

Fortune and Sports Illustrated.<br />

TIME readers are also drawn to the product for<br />

its repotting across a broad spectrum of topics from<br />

technology to social science, business, the arts,<br />

history and fashion. Readers are informed and<br />

entertained with weekly sections such as<br />

Worldwatch, Arts & Entettainment and Essay and<br />

TIME's thought-provoking special editions<br />

including widely read annuals TIME 100, Coolest<br />

Inventions and Person of the Year.<br />

TIME's Person of the Year has become a<br />

landmark issue for TIME since 1927, eagerly<br />

awaited by readers and world media and confirming<br />

TIME's position as a credible authority on world<br />

events.<br />

TIME's sensitivity and understanding<br />

of regional difference is<br />

highlighted by the inclusion of<br />

News makers of the Year in intemational<br />

editions, including the recognition of<br />

their impact in their respective<br />

regions.<br />

RECENT DEVELOPMENTS<br />

TIME celebrated its 80th birthday<br />

in2003 with a special double issue<br />

focusing on the most pivotal day<br />

in each of the last 80 years. The<br />

issue relived those 80 years<br />

through the eyes of TIME's<br />

reporters, editors and photographers<br />

as well as several contributors highlighting how<br />

TIME's worldwide access has helped people<br />

understand world events across the decades.<br />

The strength of TIME's brand has enabled the<br />

magazine to continually evolve through brand<br />

extensions like the fashion supplement, Style &<br />

Design. TIME developed Style & Design to reach<br />

its most affluent and style conscious readers around<br />

the globe.<br />

TIME is committed to the development of the<br />

product and creation of new initiatives to ensure<br />

that the magazine continues to re-invent itself and<br />

remains relevant to all readers and regions around<br />

the globe.<br />

PROMOTION<br />

TIME's red border remains its most valuable<br />

marketing tool and has become synonymous with<br />

the brand around the world. The red border<br />

masthead has appeared on the cover of the magazine<br />

since 1927 and only one issue since then has<br />

appeared without it- TIME' s September 11<br />

Commemorative <strong>Edition</strong> was printed with a black<br />

border in memory of those who lost their lives on<br />

that historic day. The red border is the core of<br />

TIME' s current global advertising campaign.<br />

Strategic alliances are another promotionaJ tool<br />

used widely by TIME. The magazine's association<br />

with the Olympic Games is a perfect example of a<br />

global marketing initiative that creates a unique<br />

platform for TIME to deliver benefits to readers<br />

and advertisers.<br />

Editorially, TIME has covered the Olympic<br />

Games since the magazine's beginnings in the 1920s,<br />

and has enjoyed a long and successful<br />

association since signing on as<br />

a worldwide sponsor for the<br />

1984 Games in Los Angeles.<br />

BRAND VALUES<br />

TIME is the world's most interesting<br />

newsmagazine. It continues to build<br />

on its long tradition of excellence by<br />

reporting with authority and integrity<br />

on the people and events that shape<br />

the world.<br />

TIME is corrunitted to delivering<br />

in-depth world news on a broad<br />

spectrum of topics, both local and<br />

international, every week. It provides<br />

authoritative, unbiased and in-depth reporting and<br />

expert analysis to it readers, it is able to gain access<br />

to world events and world leaders and it reaches<br />

over 30.1 million readers world-wide.<br />

TIME is a trusted source of current affairs which<br />

are presented in an insightful and meaningful way<br />

provoking readers to think, and to keep them wellinformed<br />

in a complicated and changing world.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

TIME<br />

0 TIME has over 30 million readers<br />

worldwide and is patt of the lat·gest<br />

media company, Time Wat·ner.<br />

0 TIME was co-founded by Yale<br />

graduates Henry Luce and Briton<br />

Hadden in 1922. The first issue of<br />

TIME was published on Mat·ch 3, 1923.<br />

0 In I 929 TIME offered readers Perpetuai<br />

Subscriptions for sixty dollat·s.<br />

0 In 1939, TIME Executive Editor, Frank<br />

Norris, was credited with natning<br />

World War II.<br />

0 In 1965 the US Post Office honow·ed<br />

TIME for developing the zip code ( a<br />

system that was developed to speed<br />

up TIME's subscription deliveries).<br />

0 The reel border first appeat·ed on the<br />

cover in 1927.<br />

0 The first TIME Man of the Yeat· was<br />

Chat·Ies A. Lindbergh ( 1927).<br />

0 In 1943 TIME was available for the first<br />

time in <strong>Australia</strong>.<br />

0 Albeit Einstein was named TIME' s<br />

Person of the Century in 2000.<br />

0 The first <strong>Australia</strong>n to appeat· on the<br />

cover of TIME was Datne Nellie Melba<br />

(1927).<br />

1!7


TOYOTA<br />

Today almost 40 per cent of all Toyotas are<br />

manufactured outside Japan and with the opening<br />

of vast new markets in China and India, as well as<br />

Europe, it is likely off shore manufacture will soon<br />

predominate.<br />

Toyota has taken the lead in many engineering<br />

developments which have guided world motor<br />

vehicle demand.<br />

It was the first truly mass-manufacturer to<br />

THE MARKET<br />

<strong>Australia</strong>ns are buying 900,000 new vehicles a year<br />

-an all-time record. A decade ago they bought fewer<br />

than 800,000.<br />

More than 200,000 all wheel drive vehicles are<br />

sold each year and it is likely that demand will grow<br />

even further. <strong>Australia</strong>n businesses are also<br />

investing in new, even safer and more car-like<br />

commercial vehicles. More than 150,000 are sold<br />

each year.<br />

Business confidence, favourable exchange rates,<br />

and financial stability have all contributed to the<br />

expanding automotive market.<br />

ACHIEVEMENTS<br />

Toyota <strong>Australia</strong> has been outright market leader<br />

for seven of the past twelve years. It has been<br />

instrumental in each of the major growth markets,<br />

leading sales in the light, small and medium<br />

passenger vehicle segments, the all wheel drive<br />

market and the light commercial vehicle sector.<br />

Toyota has become <strong>Australia</strong>'s leading expmter<br />

of motor vehicles. It exports more than 66,000<br />

<strong>Australia</strong>n-made Camrys, earning more than $1.5<br />

billion each year. That is more than 30 per cent of<br />

<strong>Australia</strong>'s total motor vehicle expmts.<br />

Globally, Toyota Motor Corporation, Japan's<br />

largest car maker, is committed to a target of<br />

achieving 15 per cent of all motor vehicle sales by<br />

the end of the decade. In <strong>Australia</strong> Toyota already<br />

claims more than 20 per cent of sales.<br />

The Toyota Modular Platform (TMP) technique<br />

pioneered on <strong>Australia</strong>n-made Carmy and Avalon<br />

has the potential to become a universal trend. TMP<br />

utilises the same, or similar, rolling chassis as host<br />

to a number of different vehicles. Toyota has<br />

demonstrated the versatility ofTMP with a special<br />

show vehicle, the locally designed all wheel drive<br />

Sportivo coupe which points to its <strong>Australia</strong>n<br />

design capability.<br />

ln 2003 Toyota Motor Corporation was for the<br />

fu·st time nominated the most admired company<br />

outside America in the annual Fmtune magazine<br />

poll of the world's top 50 corporations.<br />

The Fmtune poll found Toyota to be the world's<br />

most admired car company, significantly ahead of<br />

German and Japanese competitors.<br />

HISTORY<br />

Toyota Motor Corporation built its first car - the<br />

AA - in 1936, and its first exports occurred only<br />

four months later.<br />

The first Toyotas came to <strong>Australia</strong>n in the mid-<br />

1950s and the first distribution agreement was<br />

established in 1959 with construction magnate Sir<br />

Leslie Thiess, who used them on the Snowy<br />

Mountains HydroElectric Scheme. Thiess'<br />

LandCruisers sold to resource-based industries<br />

across <strong>Australia</strong>'s vast north and western regions<br />

helped open the outback.<br />

The first Toyotas built outside Japan were<br />

manufactured in Melbourne in the ear·ly 1960s.<br />

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It is committed to offering hybrid versions of all<br />

its major passenger models over the coming years.<br />

THE PRODUCT<br />

Toyota markets 20 different models in <strong>Australia</strong> in<br />

103 variants- more than any other vehicle company.<br />

It leads nine of the seventeen segments which make<br />

up the <strong>Australia</strong>n market.<br />

Toyota Camry and Toyota Avalon are both<br />

locally manufactured at Toyota's Altona, Victoria<br />

plant. Almost 120,000 me produced each year-.<br />

Toyota's four wheel drive range- LandCruiser,<br />

Prado, Hilux, and its all wheel drives RAV4 and<br />

Kluger are each well suited to local market<br />

conditions.<br />

LandCruiser, promoted as King Off the Road,<br />

accounts for better than 50 per cent of large 4x4<br />

demand. LandCmiser 78 series workhorse and Hi lux<br />

4x4 together make up 36 per cent of the 4x4 pickup<br />

market.<br />

Toyota's light, small and medium passenger<br />

motor vehicles - Echo, Corolla and Camry each lead<br />

their market segment and combined they out sell<br />

<strong>Australia</strong>'s top selling six cylinder fleet and family<br />

vehicle.<br />

Toyota's vehicles are well placed to meet the<br />

increasingly lower voluntary fuel consumption<br />

tar·gets agreed between the motor industry and the<br />

Federal Government.<br />

RECENT DEVELOPMENTS<br />

Toyota Motor Corporation has chosen <strong>Australia</strong><br />

as an important site for its global engineering<br />

expansion.<br />

A new technical centre is being built at Monash<br />

in Victoria to house up to 500 designers and<br />

engineers who will be engaged in development of<br />

cars for the region, and for the world.<br />

Toyota has committed to reinforcing its position<br />

as global automotive leader in technology. Its<br />

second generation hybrid Prius is a benchmar·k<br />

example. It develops more combined power, has 30<br />

per cent lighter battery storage and boosts onboar-d<br />

electric power by almost 50 per cent. That<br />

means the driver of new generation Prius can<br />

choose to use even more power or be even more<br />

energy efficient.<br />

By 20 I OToyota aims to have two million hybrids<br />

on the world's roads, and it will have launched its<br />

fu·st hydrogen/electric hybrid- a zero emission car·.<br />

Current Prius halves the fuel consumption of an<br />

equivalent petrol-only car and reduces emissions<br />

by up to 90 per cent (Based on testing to ADR81 /0 I<br />

on a similar· sized car). Technological development<br />

applies equally to safety and comfort.<br />

DAT (Driver Assist Technology) on some 4WD<br />

models delivers driver aids which include vehicle<br />

stability control (VSC), electronic brake force<br />

distribution (EBD), downhill assist control (DAC),<br />

traction control (TRC) and hill start control (HSC).<br />

The company has adopted GOA (Global<br />

Outstanding Assessment) to ensure that its<br />

vehicles comply with the most advanced passive<br />

safety standards of all countries.<br />

PROMOTION<br />

Lifestyle integration has been the highpoint of<br />

Toyota's thrust to become even a greater pmt of<br />

AustTalian culture.<br />

Toyota has always been part of the outback.<br />

When <strong>Australia</strong>'s post-2000 drought was at its most<br />

critical point it was Toyota which organised and<br />

underwrote the first publicly-funded drought relief<br />

prograrn. Toyota genuinely sought no recognition.<br />

Its goal was to support the community of which it<br />

was part.<br />

Toyota has been at the forefront of specifically<br />

tailored gender-spt>cific programs like Toyota<br />

Avenue and Safe 'N' Savvy- each recognising that<br />

women positively influence up to 80 per cent of all<br />

private automotive purchase decisions.<br />

The Toyota Community Spirit program, launched<br />

in 200 l is a central par·t of the company's aim of<br />

providing opportunities to work with local<br />

COI1U"l1Unities.<br />

Toyota is the principal sponsor of National Tree<br />

Day, an initiative of Planet Ark. At the most recent<br />

National Tree Day communities ar·oLmd <strong>Australia</strong><br />

planted 2.2 million trees- and the positive influence<br />

on young <strong>Australia</strong>ns was significant.<br />

A Toyota initiative to make it possible for school<br />

students to study mechanical engineering as pmt<br />

of their curriculum has expanded to become an<br />

industry-wide practice supported by most<br />

<strong>Australia</strong>n Departments of Technical and Fmther<br />

Education (TAFE). The T-3 program is expanding<br />

knowledge and creating car-eers.<br />

Toyota is pmt of <strong>Australia</strong>n sporting culture. It<br />

is principal sponsor of AFL. It enjoys a strong<br />

association with icon golfer Greg Norman and has<br />

its own motor racing team Toyota Team Racing<br />

which contests the <strong>Australia</strong>n Rally Charnpionship.<br />

Toyota's long term advertising slogan: "Oh<br />

What a Feeling" endures as one of the country's<br />

most recognisable and oft-repeated catchcries. But<br />

with time it is evolving and coming to represent far·<br />

broader based community values.<br />

BRAND VALUES<br />

QDR - Quality, Dependability and Reliability - is<br />

the cornerstone of Toyota's reputation. Add to that<br />

Innovation and Inspiration and the brand values<br />

which suppmt the company's evolving structure<br />

take shape.<br />

The development of leading technologies to aid<br />

safety, the environment and occupant enjoyment,<br />

ar-e driving Toyota to a new level of value in the<br />

community.<br />

Toyota entered Formula One motor sport as a<br />

means of inspiring its own people and its customers.<br />

When asked why his company had entered F1,<br />

Toyota president Fujio Cho said: "So that I can<br />

employ even better people".<br />

0<br />

0<br />

0<br />

0<br />

0<br />

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THINGS YOU DIDN'T KNOW ABOUT<br />

TOYOTA<br />

In <strong>Australia</strong>, Toyota encouraged its<br />

youngest employees to design their<br />

own car·. The RAW group ofunder-25<br />

staff members highly modified a<br />

Toyota Hilux utility and displayed it at<br />

the Sydney Motor Show.<br />

Toyota now has divisions building prefabiicated<br />

houses, boats, aircraft<br />

engines, and aids to intelligent<br />

t:rar1sport systems like electTOnic<br />

tollbooths.<br />

More than 6,300 multi-media electronic<br />

information terminals have been<br />

installed in convenience stores<br />

tJu·oughout Japa11 to allow customers<br />

to shop, request vehicle price estimates<br />

and make appointments with Toyota<br />

dealers.<br />

The Toyota PM (Personal Mobility)<br />

concept vehicle launched at the Tokyo<br />

Motor Show only allows access to the<br />

vehicle after a finger print check. The<br />

all-electric vehicle can compress its<br />

wheelbase to fit into tight par·king<br />

spots.<br />

Visitors to Expo2005 in Japan will be<br />

transpmted ar·mmd the giant site by<br />

driverless Toyota IMTS (Intelligent<br />

Multimode Transit System) vehicles.<br />

The IMTS vehicles can operate<br />

separ·ately, picking up and dropping off<br />

passengers at will, or join up in platoon<br />

fmmation.<br />

Toyota is cmmnitted to the concept of<br />

hybrid fL1el cell/ electric vehicles rather<br />

than pure fL1el cells envisaged by some<br />

other companies. Electricity made from<br />

hydrogen offers an amazingly high 83<br />

per cent theoretical efficiency and that<br />

is far· preferable to dependency on a<br />

single fuel source.<br />

Toyota has celebrated 40 yem·s of<br />

building cars in <strong>Australia</strong> and in 2004 it<br />

locally manufactmed its two millionth<br />

vehicle. Globally Toyota has now<br />

delivered more than 28 rnillion Corollas<br />

-the world's most popular· em- and<br />

nine million Cmmys. Its one tonne<br />

Hi lux utility- the world's most in<br />

demar1d light truck - has passed the 12<br />

rnillion production milestone.<br />

Toyota set a new sales record in 2003<br />

delivering 6.42 million vehicles globally.<br />

Almost 200,000 of these were in<br />

<strong>Australia</strong>.<br />

119


\!rrabtng f)ost<br />

THE MARKET<br />

The Trading Post is a specialised<br />

classified advertising publication<br />

with a national market. This<br />

superbrand is a leader in its field<br />

and a true Aussie icon. From<br />

Adelaide to the Gold Coast,<br />

Darwin to Hobart, <strong>Australia</strong>ns<br />

look first to the Trading Post<br />

when buying or selling.<br />

Aided by declining readership<br />

of daily newspapers, a company<br />

policy to provide value for<br />

money, and a highly successful<br />

and innovative internet site, the<br />

Trading Post continues to enjoy<br />

a rapidly expanding share of the<br />

classified market, and more<br />

recently the display adve1tising<br />

market.<br />

The Trading Post's major<br />

competitors - the daily metropolitan and regional<br />

newspapers- are weakened by a life expectancy of<br />

less than a day. The Trading Post's 16 weekly<br />

publications, plus the~w:e:b••·~~~~~~~1ffl~~<br />

site, benefit from •<br />

longer exposure to a<br />

targeted market and a<br />

high profile as the<br />

medium for bringing<br />

buyers and sellers<br />

together.<br />

1EIJP :>lilrlbournr<br />

\[ tJ!~ ,l!HJ ~ost<br />

is with the printers by II pm. By early Thursday<br />

morning it is on sale in newsagents all over the<br />

city.<br />

Integration is highly developed.<br />

Classified advertisements are keyed<br />

in only once. Along with pictures<br />

opening in the classified market<br />

for low-cost private advertising.<br />

By 1968, growth had been so<br />

strong that the initiators decided<br />

to divide the company into three<br />

and assign separate territories.<br />

As a result, individual<br />

Trading Posts were established<br />

in three States as The<br />

Melbourne Trading Post, The<br />

Personal Trading Post in<br />

Brisbane and The Trading Post<br />

in Sydney. This last one would<br />

eventually cover New South<br />

Wales, the <strong>Australia</strong>n Capital<br />

Territory and South <strong>Australia</strong>.<br />

It would be more than 30<br />

years before these three<br />

separate organisations would be<br />

reunited. That happened on the<br />

31st of May 2001, when the<br />

Trading Post Group acquired all three and combined<br />

them into a truly national network.<br />

THE PRODUCT<br />

The highly recognisable tabloid-size Trading Post<br />

publications were developed with customer<br />

satisfaction and value for money as<br />

priorities.<br />

Over the years market research<br />

conducted for the Trading Post dictated<br />

changes to reflect customer preferences.<br />

ACHIEVEMENTS<br />

The Trading Post has<br />

seen excellent growth in<br />

recent years. In 2002, the<br />

business grew by 39.9 per<br />

cent, of which 12.9 per<br />

cent was strong organic<br />

growth. Display sales<br />

showed an impressive 16.2<br />

per cent growth while call<br />

centre operations grew 34<br />

per cent over the previous<br />

year.<br />

Print production has been<br />

streamlined to an outstanding extent. Placement for<br />

display advertisements in Sydney, for instance,<br />

closes at 12 noon on Tuesday, but the call centres<br />

(which accept the classified advertisements) do not<br />

close until 8 pm. The first file is de]jvered to the<br />

printer at 8.30 pm, and the complete publication,<br />

which runs to an average of more than 200 pages,<br />

they are stored in<br />

the database and<br />

are called down<br />

as they are needed - for print or for the Internet.<br />

HISTORY<br />

The first Trading Post was launched in Melbourne<br />

in 1966 when a group of friends recognised an<br />

120


This resulted in category specification directed by<br />

the market to enhance accessibility. Full process<br />

colour printing was introduced to follow the trend<br />

in metropolitan newspaper printing. Display<br />

advertising, automotive and lifestyle editorial and<br />

promotional features were added to further increase<br />

service to customers.<br />

The various publications ofthe group now carry<br />

a range of colour magazines as insetts, themed on<br />

the one hand as car or motorcycle publications and<br />

on the other with a wider brief addressing 'Digital<br />

Living' or ' Renovation'. They were initiall y<br />

introduced as magazine-sized inserts, but The<br />

Trading Post has found that readers actually prefer<br />

the tabloid format, not just for the publication itself<br />

but also for the insetts.<br />

As well as enabling refinement of the product,<br />

market research was used to refine the core values<br />

of the product, develop communication and growth<br />

strategies and assist in promotion, particularly in<br />

new geographical areas. The addition of web site<br />

services has augmented the effectiveness of the<br />

printed publications. Internet content can be<br />

accessed through the main www.tradingpost.<br />

com.au portal wh ich gives access to the local<br />

markets and specialist sites. In 2002, these listed<br />

more than 150,000 items each week in 150<br />

categories, taken from the print publications.<br />

Outbound call initiatives have seen Trading Post<br />

call centres contacting clients and prospects with<br />

up-selling offers, options to repeat ads and a range<br />

of special pricing offers. This program is based on<br />

sophisticated database technology to support sales<br />

personnel with customer information.<br />

Commercial and display advertising are also<br />

high priority areas. This market segment is being<br />

further developed with the introduction of a<br />

national sales team focusing on national advertisers<br />

and agencies. Classified advertising growth is<br />

managed with continuous market research,<br />

underpinned by strong brand promotion at the point<br />

of sale.<br />

RECENT DEVELOPMENTS<br />

In 2002, Dutch-based Trader Classified Media<br />

purchased the remaining minority interests in the<br />

business and achieved 100 per cent ownership of<br />

the nationally recognised Trading Post brand. This<br />

consolidated the company' s position in <strong>Australia</strong>,<br />

and it now has complete coverage in New South<br />

Wales, Victoria, Queensland,<br />

Western <strong>Australia</strong>, South<br />

<strong>Australia</strong>, the Northern<br />

Territory and Tasmania.<br />

Since the acquisition, the<br />

company has been able to<br />

achieve a significant number of<br />

synergies among these<br />

operations. This has accelerated<br />

revenue growth; Sydney' s<br />

revenue growth, for instance,<br />

was up from 5 per cent to 13<br />

per cent.<br />

Additional synergies are<br />

expected to flow from the<br />

purchase of the Trading Post<br />

Group in early March 2004 by Sensis Pty Ltd, the<br />

advettising subsidiary of Telstra Corporation Ltd.<br />

This brings ownership of the Trading Post back into<br />

<strong>Australia</strong>n hands, where it belongs! Among other<br />

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1/a/vo//ne<br />

THE MARKET<br />

Times are changing for <strong>Australia</strong>n car owners.<br />

Consumer research has shown that most of them<br />

now have their car's oil changed by a professional<br />

mechanic. This dramatic swing towards DlFM (Doit-for-me)<br />

has been at the expense ofthe traditional<br />

DIY (Do-it-yourself) market. The growth in new car<br />

sales and the increase in extended warranties have<br />

clearly influenced this. So has the increase in the<br />

number of women purchasing- and maintainingtheir<br />

own vehicles. If that wasn't enough,<br />

<strong>Australia</strong>'s aging population has also contributed<br />

to the swing as they opt for professional attention<br />

to their car rather than doing it themselves.<br />

But motor oil is still the number one traffic<br />

generator for the automotive category ahead of<br />

batteries, seat covers and sound. The DIY (retail)<br />

market might represent a smaller percentage of the<br />

car population, but demand for packaged motor oil<br />

is still a significant segment whenever the consumer<br />

is directly involved in making the purchasing<br />

decision.<br />

Crankcase capacities are decreasing and service<br />

intervals are increasing, so the automotive lubricant<br />

market is a mature one. Volume is expected to decline<br />

over time. This change is making it more important<br />

than ever that the engine oil does its job well. In the<br />

long term it will inevitably increase the demand for<br />

premium, quality lubricants in both markets.<br />

ACHIEVEMENTS<br />

In a category where the customer can not taste,<br />

feel or interact with the product, the Valvoline brand<br />

is seen as a 'lubricant specialist' and has earned a<br />

high level of consumer trust. The brand is known<br />

for its high quality products and enjoys a high level<br />

of brand loyalty.<br />

ValvoLine has achieved its outstanding growth<br />

by offering superior value to consumers. In the<br />

DIY category, Valvoline was the first to introduce<br />

the successful six litre Value Pack. In 1993, it<br />

launched another packaging innovation - the eight<br />

litre oil drain pan. The bottle could be re-used as a<br />

drain pan and storage device for used oil.<br />

In future, m~or volume growth is expected to<br />

once again come from the DIFM channel as well as<br />

the commercial and industrial markets. Valvoline<br />

set up special divisions in 1998 in <strong>Australia</strong> to deal<br />

with the latter two. The company is working with<br />

the Cummins Engine Company worldwide to<br />

produce outstanding, cutting-edge on-road and offroad<br />

engine and other lubrication products.<br />

When Valvo line opened its state-of-the-art new<br />

product development laboratory in 1999, its goal<br />

was to have 25 percent of its earnings come from<br />

new products. Today, it is well on its way to<br />

achieving this goal, thanks to the teamwork and<br />

cooperation between marketing and the laboratory.<br />

Valvoline has demonstrated the powerful<br />

combination of strong marketing and technical<br />

teams with its successful new products like MaxLife<br />

Motor Oil and SynPower<br />

Oils and Chemicals.<br />

HISTORY<br />

Valvoline had its beginning<br />

in 1865, when Dr. John Ellis<br />

turned hi s attention to<br />

pharmacology and became<br />

fascinated with various<br />

claims relating to the<br />

medicinal value of crude oil.<br />

Although he quickly concluded that the medicinal<br />

claims were unfounded, Ellis became consumed<br />

with the notion that it might be possible to create a<br />

machinery lubricant from the crude oil. Ellis built<br />

the world's first mineral lubricating refinery in<br />

Binghamton, New York. Eight years later, in 1873,<br />

the product that he called Binghamton Cylinder Oil<br />

was given the first mineral lubricating trademark<br />

ever registered: Valvo line.<br />

Valvoline introduced the first ever all-season,<br />

all-purpose gear lubricant back in the 1930s. This<br />

became the first lubricating oil for diesel and peak<br />

loads in gasoline engines. In I 940, Valvo line became<br />

the first company to offer an unconditional moneyback<br />

guarantee on its motor oil. Valvoline was<br />

acquired by Ashland Oil in the late 1940s and is sti ll<br />

part of Ashland's portfolio.<br />

Valvo line was sold in <strong>Australia</strong>, through various<br />

distributors, as far back as 190 l.ln 1960, Valvoline<br />

set up a branch in <strong>Australia</strong> and took over the<br />

business from the Carrigan Brothers. Today,<br />

Valvoline<br />

owns<br />

124


and operates a manufacturing plant in Sydney and<br />

thirteen branches <strong>Australia</strong> wide. It also has more<br />

than sixty rural agents and distributors.<br />

THE PRODUCT<br />

Much has changed since Valvoline's founder<br />

produced hi s first barrels of 'cylinder oil' for use in<br />

industrial engines, but one thing that has not<br />

changed is Valvoline's commitment to quality.<br />

Today, Valvoline is a leading suppli er of high<br />

quality, high performance automotive and industrial<br />

lubricants in more than 140 countries. Valvoline<br />

markets a comprehensive range of motor oils<br />

including full synthetic, synthetic blends and<br />

boutique racing formulations. It also markets a<br />

complete range of automotive aftermarket products<br />

including high pe1formance gear oils, transmission<br />

fluids, greases and other lubricating products.<br />

Valvoline has been successful in leveraging its<br />

strong brand beyond lubricants into other areas of<br />

'under bonnet' products including automotive<br />

chemicals and filters.ln 1998, Valvo line introduced<br />

a complete range of high quality automotive filters<br />

into the market. The consumer response was<br />

fantastic. Many retailers reported<br />

that their sales ratio of oil to filters<br />

had actually increased when they<br />

merchandised Valvoline alongside<br />

the filter market leader. Valvoline also<br />

markets automotive chemicals under<br />

the SynPower and Pyroil brand<br />

names and automotive appearance<br />

products under the Eagle One brand<br />

name.<br />

RECENT DEVELOPMENTS<br />

Valvoline continues to launch new<br />

and innovative high quality<br />

products. Valvoline MaxLife<br />

Automatic Transmission Fluid was<br />

the first fluid specifically designed<br />

for higher mileage transmissions,<br />

while Valvo line VRJ Racing Engine oil was created<br />

for high-revv ing, high performance Japanese<br />

engines.<br />

The company's cutting-edge coolant<br />

technology has been adopted by leading original<br />

equipment manufacturers (OEM) around the world.<br />

They are<br />

products not only to deliver longer drain intervals<br />

but also to offer superior protection. Recent<br />

products along these lines include Valvoline G-05<br />

Coolant and Valvoline Heavy-Duty Extended Life<br />

Coolant, both carrying OEM approval.<br />

The filter business, meanwhile, continues to<br />

grow. The filters offer customers a high quality<br />

product with a natural fit with the engine oil.<br />

Valvoline has in vested in the best product<br />

technology and packaging and projects a high<br />

quality image in the market.<br />

PROMGnON<br />

The basic promotional philosophy is to invest in<br />

the brand with a consistent adve1tising message.<br />

Over time this has built Valvoline into the great<br />

brand it is.<br />

Valvoline's aggressive adve1tising campaigns<br />

in the 1990s with John Laws were responsible for<br />

the brand's growth in sales and awareness.<br />

'Valvo line, You Know What I Mean' remains in the<br />

minds of consumers and has high levels of<br />

consumer recall.<br />

Valvoline's association with motorsport<br />

sponsorship is part of its<br />

heritage. It is on the race<br />

track where Valvoline<br />

fulfils its promise of<br />

performance. Valvoline<br />

has a strong presence in<br />

both local and<br />

international race events.<br />

Steve Williams, Kiwi race<br />

car driver and caddy for<br />

golfing great Tiger<br />

Woods, is proudly<br />

sponsored by Valvoline,<br />

both on the race car track<br />

and on the golf circuit.<br />

This sponsorship has<br />

captured the attention of<br />

the sporting world and<br />

Valvoline has enjoyed world wide exposure as a<br />

result.<br />

ln the DIY market, Valvoline has conducted many<br />

exciting promotions. During the recent Instant Win<br />

V8 Super Car Game promotion, every customer<br />

received a sample of a new game featuring the<br />

Valvoline Car. This was a joint promotion,<br />

leveraging two marketing budgets to reach a<br />

common audience- the motor spmt fan. Valvo line<br />

added value to the oil and the marketers of the<br />

game gained access to Valvoline customers,<br />

producing a great result for both partners and<br />

consumers.<br />

Uniquely, Valvoline can cross-promote oil and<br />

filters. One recent example of this highly successful<br />

strategy was the $4 Oil and Filter Cash Back Deal.<br />

In the DIFM channel, Valvoline has taken a<br />

partnership approach with the installers in<br />

developing programs that help up-sell to its premium<br />

lubricants such as ProBlend, DuraB!end, MaxLife<br />

and SynPower. As engines become more<br />

sophisticated and driver habits place more stress<br />

on the engine, the mechanic or service attendant<br />

can be in strumental in personally selling the<br />

features and benefits of using premium products.<br />

This is a luxury not always available in the DIY<br />

channel, where consumers are on their own.<br />

BRAND VALUES<br />

Valvoline's brand values are driven by the company<br />

vision. Valvoline is committed to building premium<br />

brands and businesses.lt is committed to providing<br />

superior value to consumers as well as creating<br />

unique business solutions that enable business<br />

prutners to succeed with Valvoline. Valvoline is<br />

dedicated to developing its people through a<br />

culture that values teamwork, excellence and<br />

personal growth. The Valvoline Vision refers to a<br />

new word that Valvoline wants to own, which is<br />

"Premiumness." The Valvoline Vision ends with a<br />

powerful statement - "Premiumness" Is Our<br />

Business. Winning Is Our Passion.<br />

www.valvoline.com.au<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

VALVOLINE<br />

0 Valvo line' s founder Dr John Ellis<br />

produced America's first crude-based<br />

lubricating oil in 1866 and Valvo line is<br />

the oldest trademru·k in the entire<br />

petroleum industry.<br />

0 Valvoline products have had a vru·iety<br />

of looks over the yeru·s, but the nrune<br />

has not changed in more than a<br />

century.<br />

0 Valvoline is sold in more than 140<br />

countries ru·mmd the world.<br />

0 Valvoline.com was the first website in<br />

the motor oil category. Valvo line<br />

continues to lead the way, using<br />

technology to reach its customers.<br />

0 Valvoline's flagship Product<br />

Development Lab in KY, USA boasts<br />

the latest and most technically<br />

advru1ced equipment for product<br />

development and testing in both<br />

automotive and industrial fields,<br />

ensuring that Valvoline remains at the<br />

cutting edge of technology.<br />

0 Valvo line MaxLife Motor Oil won 200 I<br />

Lubricants World Product Of The Yeru·,<br />

and MaxLife ATF won the same awmd<br />

in2002.<br />

125


455g NET<br />

ONE 0 f VITAMIN 8<br />

fTHE WORLD'S RICHEST KNOWN SOURCES O<br />

THE MARKET<br />

In the <strong>Australia</strong>n market, Vegemite''' is an icon brand.<br />

It is the one spread that is introduced to the family<br />

almost as a duty, a ritual in the pattern that<br />

determines what makes an <strong>Australia</strong>n family.<br />

~ Vegemite fights with the<br />

~ men up North! If you are<br />

one of those who don't need<br />

Vegemite medicinally, then thousands of invalids<br />

are asking you to deny yourself of it for the time<br />

being. Extract ftvm a World War 2 advertisement.<br />

VEGEMITE iiM~tb~/<br />

Vegemite"', it seems, has always been around and<br />

families have always eaten it. Not that its enjoyment<br />

is restricted to family use: for example, Yegemite'''<br />

was alongside the diggers in the Second World<br />

War.<br />

Yegemite •:• is produced at Kraft Foods' Port<br />

Melbourne manufacturing facility which produces<br />

the 22 million '"' jars sold in <strong>Australia</strong> every year.<br />

ACHIEVEMENTS<br />

Mention Yegemite''' to any <strong>Australia</strong>n and you are<br />

likely to see instant recognition. There are<br />

interesting facts about Vegemite"', such as the fact<br />

that 70 percent of it is consumed at breakfast, and<br />

most is eaten on toast. But they cannot convey the<br />

full flavour of this unassuming black paste.<br />

Vegemite' is one of the world's richest known<br />

sources of B complex vitamins, especially thiamine,<br />

riboflavin, niacin and folic<br />

acid.<br />

HISTORY<br />

At the beginning of the<br />

1920s, the Fred Walker<br />

Company had a<br />

successful business<br />

making, selling and<br />

expmting food products.<br />

Its owner Fred Walker<br />

decided that it was time<br />

to tackle the concentrated<br />

yeast spread market, and<br />

in 1923 he hired Dr Cyril<br />

P. Callister to develop an<br />

<strong>Australia</strong>n yeast spread.<br />

In a laboratory at the<br />

Albert Park factory Dr<br />

Callister, who incidentally<br />

became <strong>Australia</strong>'s<br />

leading food technologist<br />

in the 1920s and ' 30s,<br />

experimented and worked<br />

on the Vegemite formula.<br />

By July 1923 he had<br />

developed the spread<br />

that Walker wanted. The<br />

product was ready but the<br />

name wasn ' t.<br />

Fred Walker turned to<br />

the <strong>Australia</strong>n public and<br />

launched a nationwide<br />

competition to find a<br />

name for his new food.<br />

The prize pool held a very<br />

tempting fifty pounds. The name selected was<br />

Vegemite'''.<br />

An English yeast spread dominated the<br />

<strong>Australia</strong>n market at the time, and shoppers were<br />

reluctant to add Vegemite''' to their baskets. Sales<br />

languished. The product was actually renamed only<br />

four years after its introduction, and relaunched as<br />

"Parwill". This was an attempted play on words: "If<br />

Marmite ... then Parwill" was the intended pun, but<br />

it didn't sell the product.<br />

Walker went back to his first choice of name<br />

when he became convinced that the problem was<br />

getting consumers to try the product. He launched<br />

a vigorous two year coupon redemption scheme<br />

and gave away a jar of Yegemite· with every<br />

purchase of another product in the Fred Walker<br />

Company range. The campaign worked: consumers<br />

tried the product, and loved it. Baby health centres<br />

l dddj l J<br />

C;o G;<br />

J I I F J<br />

dl<br />

we<br />

dl<br />

d IJJJJ I<br />

all enjoy our Veg-e-mite for breakfast lunch nd tea, our mummies say we 're<br />

t,,<br />

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across the nation were even recommending it as an<br />

ideal food supplement for both babies and nursing<br />

mothers. <strong>Australia</strong>ns of all ages continue to love<br />

Vegemite '' today. Its unique flavour could almost<br />

be called the taste of <strong>Australia</strong>.<br />

Just before the outbreak of the Second World<br />

War, Yegemite''' gained official<br />

endorsement from the British<br />

Medical Association. It was then<br />

being advertised in the <strong>Australia</strong>n<br />

Medical Journal, and doctors were<br />

increasingly recommending it as a<br />

nutritionally balanced food. During<br />

the War, supplies of Yegemite•:• to<br />

civilians were rationed as the Armed<br />

Forces bought it by the seven pound<br />

(3.2kg) container.<br />

During the post-war "baby<br />

boom", wartime goodwill translated<br />

into a boom in Vegemite''' sales. In<br />

1950, Vegemite ' came under the Kraft<br />

Foods Limited umbrella, and the company has<br />

consistently reinforced the food value and<br />

"<strong>Australia</strong>n-ness" of Vegemite'''·<br />

Soon after that, the song which was to secure<br />

Vegem ite' S''' place in the <strong>Australia</strong>n heart forever<br />

was introduced. This was the "Happy Little<br />

Vegemites'''" song.<br />

THE PRODUCT<br />

The original Vegemite''' concentrated yeast<br />

extract recipe devised by Dr Cyril Callister in<br />

1923 remains virtually unchanged. Yegemite•:• is<br />

rich in protein and minerals and a rich source of<br />

Vitamin B. B complex vitamins in Yegemite •:• are<br />

essential in the body's use of carbohydrates.<br />

RECENT DEVELOPMENTS<br />

Yegemite '' has become so identified with<br />

<strong>Australia</strong> that there has been a tongue-in-cheek<br />

proposal of its label as the new national flag.<br />

More recently Vegemite* has seen innovation<br />

with the launch of a Vegemite* ' Snackabouts'<br />

variant in 1999 which couples Yegemite''' with<br />

biscuits in a p01table format. In 2003 Vegemite<br />

broke the mould with the permanent ranging of the<br />

'Yegemite* Tube' travel pack and the munchable<br />

'Vegemite '' In A Biskit'.<br />

PROMOTION<br />

The first consumer promotion for<br />

Vegemite''' ran even before the<br />

product was called Vegemite ''. It was<br />

the national competition to create a<br />

name.<br />

Two years after the 1935 coupon<br />

campaign that saw Vegemite''<br />

accepted by shoppers, an intriguing<br />

limerick contest once again catapulted<br />

it into the national spotlight. Its success<br />

was at least pa.Itly due to the substantial<br />

prizes: imported Pontiac cars. Entries<br />

flooded in and sales multiplied.<br />

An inspired wa.Itime campaign made<br />

a virtue out of the enforced scarcity of<br />

Yegemite··; Kraft Walker' s


THE MARKET<br />

The home entertainment market has followed many<br />

paths over the past decades, most significantly from<br />

Video (VHS) tape to Digital Video Disc (DVD)<br />

technology.<br />

Video Ezy has continued to adapt to this<br />

changing marketplace in order to meet the demands<br />

of its members' rental and retail habits, and accepted<br />

this challenge early in the DVD revolution.<br />

DVDs have been in the <strong>Australia</strong>n marketplace<br />

since 1997 and DVD players are in nearly 60 per<br />

cent of households, with sales increasing by 80 per<br />

cent in the 2003 calendar year. Consumers are<br />

seeking prutners to satisfy their renting and buying<br />

needs and with the VHS mru·ket expected to dry up<br />

within four yeru·s, Video Ezy is well-placed to take<br />

on this rental and retail role. Video Ezy stores'<br />

ordering ratios in metro markets are now 70 per<br />

cent DVD and 30 per cent VHS. This is in sharp<br />

contrast to eru·Iy 2003, but it reflects the DVD retail<br />

mru·ket figures of2003.<br />

Video Ezy acknowledges that <strong>Australia</strong>ns are<br />

now, more than ever before, "cocooning"<br />

themselves at home. This trend presents a unique<br />

opportunity to connect with consumers on a<br />

personal level, as they custonuse their experiences<br />

to capitali se on their in-home entertainment<br />

systems.<br />

HISTORY<br />

Video Ezy was established in 1983 after identifying<br />

a gap in the <strong>Australia</strong>n entertainment<br />

industry to provide rental<br />

movies to the public. In its 21st<br />

year it ts the largest<br />

entettainment rentailer I retailer<br />

in <strong>Australia</strong>, with over 540<br />

stores nationwide.<br />

From a humble beginning of<br />

one local Sydney store in<br />

Hurstville, Mr. Robert<br />

Maidment, Video Ezy ' s<br />

Executive Chairman, soon had<br />

a vision to grow the business<br />

and provide customers with<br />

"what they want, when they<br />

want it", founding Video Ezy's<br />

brand essence, "Maximum<br />

enjoyment, made Ezy".<br />

Video Ezy's move into Asia<br />

has unlocked further growth<br />

opportunities in the region and<br />

in March 1999, Video Ezy<br />

opened its first Asia Pacific store in Bangkok,<br />

growing to 85 stores currently trading in Thailand.<br />

Conversions and openings are also occurring in<br />

Singapore with II stores, Malaysia with 13 stores<br />

and the 123rd store now open in Indonesia.<br />

Opportunities are currently being developed in<br />

Dubai, Taiwan, and Fiji.<br />

Whilst Video Ezy has grown to be one of the<br />

best brand names in <strong>Australia</strong>n home entettainment,<br />

team-member knowledge and customer service<br />

remain among its key success factors, along with<br />

the number of physical outlets<br />

compared to most<br />

traditional retail<br />

outlets. Hence,<br />

retail IS now<br />

another opportunity<br />

Video Ezy can<br />

nurture. It can be<br />

competitively placed<br />

to win mru·ket shru·e,<br />

Iru·gely due to the fact<br />

that rental stores stay<br />

open later than<br />

traditional retail outlets<br />

and there is a natural<br />

association between<br />

rental patterns and the<br />

purchase of home<br />

entertainment software.<br />

With this in mind,<br />

Video Ezy positioned<br />

itself as the most<br />

innovative of the video rental outlets and launched<br />

an enterprising franchisee pursuit to ensure the<br />

future of its resourceful approach to business. With<br />

the aim of becoming prut of the community, Video<br />

Ezy employed a local and knowledgeable teammember<br />

base to provide not just an entettainment<br />

outlet, but an operation where entettainment passion<br />

rang true.<br />

Video Ezy's philosophy is simple: provide a<br />

comprehensive, innovative and dynamic home<br />

entertainment option, having regard for quality,<br />

convenience, responsibility and value for money.<br />

Along with exceptional customer service and<br />

community integration, this has allowed Video Ezy<br />

to build the largest and most successful home<br />

entettainment organisation in this region.<br />

THE PRODUCT<br />

Video Ezy' s core business is in the rental mru·ket,<br />

but retail offers a wondetful growth opportunity<br />

and the 540 franchisees are making a real impact.<br />

Video Ezy has the competitive edge, being able to<br />

offer the customer an 'enjoy it any way you want it'<br />

advantage: rent it now, buy it now, or buy it later as<br />

a quality guru·anteed previously-viewed disc.<br />

As testament to this commitment to retail, Video<br />

Ezy was recently awru·ded '2003 DVD Retailer of<br />

the Year', at the celebrated <strong>Australia</strong>n Video<br />

Industry's AVI awards.<br />

In the pursuit of a competitive retail strategy,<br />

Video Ezy has been keen not to neglect the rental<br />

side of their business, and plans to grow both the<br />

rental and retail channels via strategically creative<br />

128


usiness methods. Video Ezy has also simplified<br />

ordering with its own dedicated warehouse, where<br />

orders ru·e filled from one location, saving on freight<br />

and allowing customer specia l orders to be<br />

delivered to stores. With over 12,000 titles in stock,<br />

stores reap the rewards of this immediately.<br />

RECENT DEVELOPMEN'IS<br />

Video Ezy's new Windows-based point-of-sale<br />

system, 'Ezy Retail', is the most advanced and<br />

powetful POS software system in the world. It has<br />

been des ig ned specifically for the home<br />

entettainment market, and to Video Ezy's specifications<br />

and offerings. It allows information to be<br />

centrally created and pushed down the line to the<br />

stores, both as real time and locally stored data. It<br />

provides comprehensive reporting capabilities,<br />

inventory management and collection abilities,<br />

giving Video Ezy one of the most comprehensive<br />

databases in retail history.<br />

The implementation of the Ezy Retail system has<br />

allowed Video Ezy to create a retail-first CRM<br />

(customer relationship management) system,<br />

offering the latest marketing technology and<br />

individual communications to the customer.<br />

Video Ezy can now customise offers, information,<br />

and rewru·ds at each customer transaction via the<br />

personalised 'Passport to Entertainment'. This<br />

allows stores to tailor offers to consumer spending<br />

and visit habits. Video Ezy believes that the key to<br />

the company' s future success lies in this new CRM<br />

system.<br />

At the beginning of 2004, the company is<br />

engaged in launching an e-commerce portal. Initially<br />

this wi II cater to the retail needs of the market, and<br />

position Video Ezy as a strong retail player in the<br />

online mru·ket. In time, Video Ezy plans to test a<br />

revolutionary online rental model which will<br />

fiElE<br />

*W(<br />

j.J ydors 1t<br />

Video Ezy is now developing significant points<br />

of difference in the mru·ketplace for franchisees with<br />

the recent 'Ezy Exclusive' releases. Award winning<br />

titles such as 'Dinotopia', winner of the 2003 award<br />

for best special feature DVD, and TV serials such<br />

as 'Will and Grace' and 'King Pin' will provide<br />

diversity of titles. The company has also<br />

secured an exclusive arrangement w ith<br />

Hallmru·k, who will supply a range of titles<br />

exclusively to Video Ezy.<br />

Video Ezy is constantly converting stores<br />

to the Video Ezy brand, and scouting for<br />

further conversions is under way. This<br />

seru·ch is not about the number of stores,<br />

but the quality of people and the position<br />

in the community.<br />

PROMOTION<br />

Video Ezy is known and valued for<br />

innovative marketing campaigns and<br />

first-mover advantage in the home<br />

entettainment industry. One of the best<br />

known campaigns is the Movie<br />

Guru·antee conceived in 1992 when<br />

the video industry was statting to<br />

build and players lacked any real<br />

point of difference.<br />

Through its relationships<br />

with distributors, Video<br />

Ezy could choose the<br />

biggest title of the month,<br />

and stock never-before-seen<br />

numbers, a nd offer the<br />

Movie Guarantee to<br />

customers: "get it first time<br />

or get it free".<br />

The Video Ezy brand relaunched<br />

in October 2003,<br />

and introduced a likeable<br />

character called "Marty".<br />

This new face of Video Ezy,<br />

along with the new 'Ezy does<br />

it' tag, aletts customers to the<br />

local and friendly aspects of<br />

the franchise organisation,<br />

and reaffmns the objective of<br />

delivering the best home<br />

entertainment package in<br />

<strong>Australia</strong>.<br />

The introduction of<br />

'Marty' is a major shift in<br />

Video Ezy's marketing<br />

direction and serves as an<br />

identifier in the cluttered<br />

entertainment market.<br />

Ezy does iL<br />

,.,..-<br />

BRAND VALUES<br />

As a brand, Video Ezy needs little introduction to<br />

the majority of <strong>Australia</strong>ns. Its aim has always been<br />

to understand cleru·Iy what the home entertainment<br />

customer wants, and deliver it better than anyone<br />

else. The brand's populru·ity shows how successful<br />

that has been.<br />

Video Ezy strives to present more than the<br />

generic movie offer with quality<br />

in-store presentation and simple<br />

language, which encourages<br />

positive consumer interaction with<br />

the environment they visit, and the<br />

offer with which they ru·e presented.<br />

This allows each customer to<br />

enjoy entertainment any way they<br />

want it - rent it now, buy it new, or<br />

buy it ex-rental.<br />

Video Ezy likes to inspire and<br />

empower customers with choice and<br />

information, and has built a team which<br />

embodies the brand values. Team<br />

members make a store visit a personal<br />

experience with their knowledge of<br />

product, their down-to-eruth attitude, their<br />

love of movies, their dedication to<br />

customers,


0 .<br />

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Where our<br />

expertise is<br />

still a family<br />

tradition.<br />

THE MARKET<br />

Based on a recent survey by market analysts BIS<br />

Shrapnel, the humble cappuccino has become<br />

<strong>Australia</strong>'s third most popular beverage with an<br />

estimated 370 million cups ($630m wo1th) being<br />

consumed every year out of home, primarily in<br />

cafes. Furthermore, retail sales of Pure Coffee<br />

(espresso) through supermarkets are now worth<br />

over $81 million pa, and this market is consistently<br />

growing faster than the instant coffee market.<br />

The Cantarella Group has played an integral part<br />

in pioneering Italian style espresso coffee in<br />

<strong>Australia</strong> for over 40 years, and its Vittoria Coffee<br />

brand is one of the few brands which has a strong<br />

presence in both the retail and food service<br />

channels.<br />

ACHIEVEMENTS<br />

Vittoria is clearly <strong>Australia</strong>'s No.1 Pure Coffee brand<br />

(ACNielsen- Scantrack MAT Jan. 2004) and has<br />

become an Austmlian icon. Sold in supermarkets,<br />

cafes and restaurants across the country, its<br />

success can be attributed to being crafted by<br />

experts, where expertise is a family tradition.<br />

The Vittoria name is synonymous with<br />

<strong>Australia</strong>'s cafe culture. Yittoria' s ongoing<br />

consumer education campaign is teaching coffee<br />

drinkers to appreciate pure coffee, whilst barista<br />

training sets new standards for coffee served<br />

throughout <strong>Australia</strong>.<br />

Vittoria also pioneered Italian style espresso<br />

through supermarkets in 1983. Criticised at the<br />

time, Vittoria took up the chall enge and soon<br />

brought to life the phrase ' take home the coffee<br />

they serve in cafes'.<br />

Every day, more than one in every three cups of<br />

pure coffee consumed in <strong>Australia</strong>n homes is a<br />

Cantarella brand (ACNielsen- Scan track MAT Jan.<br />

2004). The Cantarella Group, also markets a strong<br />

range of other food and beverage brands including<br />

Santa Vittoria and Aurora, with total retail sales<br />

exceeding $ 11 0 million a year.<br />

HISTORY<br />

The Cantarella Group was established in l 947 by<br />

two Italian brothers, Orazio and Carmelo Cantarella,<br />

HOW CAN YOU HAVE A CIVILISED SOCIETY<br />

WITHOUT ESPRESSO COFFEE<br />

S!IICI19lll . ·<br />

~ '~<br />

EDUCATING AUSTRALIA IN TilE ART OF ESPRESSO d.<br />

Vittoria Heritage press campaign 2003<br />

who recognised a need for European foods in<br />

<strong>Australia</strong> and opened a smal l retail outlet in<br />

Sydney's Haymarket.<br />

When it came to coffee they knew coffee tastes<br />

best when it's fresh- so they began roasting Vittoria<br />

Coffee in <strong>Australia</strong> in l 958. Today the roasting plant<br />

in Ryde, Sydney is one of the most modern roasting<br />

and packing faci lities in <strong>Australia</strong>.<br />

Over 50 years later, Vittoria is still a I 00 per cent<br />

<strong>Australia</strong>n private company, owned by direct<br />

descendants of Orazio Can tare !Ia- the Schirato and<br />

Winton families - with Les Schirato as CEO. The<br />

company is headqurutered at Si lverwater in Sydney<br />

and has branches in all <strong>Australia</strong>n States and in<br />

New Zealand. It is ranked in the top 500 privately<br />

owned <strong>Australia</strong>n companies.<br />

Les Schi.rato is recognised asAustTalia ' s 'Coffee<br />

King' , and is the face of the Yittoria brand. Heading<br />

the Cantarella Group for over 20 years, Les'<br />

entrepreneurial flair, energy and passion combined<br />

with sales and mru·keting expe1tise has contributed<br />

to the immense growth in espresso coffee in<br />

<strong>Australia</strong>.<br />

Les' achievements were formally acknowledged<br />

when he was awarded the national title of<br />

Entrepreneur of the Yeru· 2001 in the category of<br />

Retail, Consumer and Industrial Products.<br />

More recently, Les also featw·ed in a new reference<br />

text 'Marketing without Money' which highlights how<br />

20 of <strong>Australia</strong>'s top entrepreneurs cracked mru·kets<br />

using their minds instead of their wallets.<br />

As industry leader, Yittoria has instituted many<br />

firsts in coffee reseru·ch, roasting, packaging and<br />

bru·ista training. Understanding the local market,<br />

whilst staying in touch with international trends,<br />

Vittoria is able to tailor and launch such trends well<br />

ahead of competitors.<br />

130


The Yittoria Coffee College in Sydney-'where<br />

the experts train the professiona ls' - was<br />

established in 1995 amid growing demand from<br />

the industry to provide a resource dedicated to<br />

teaching the 'art and science' of coffee making.<br />

The College teaches baristas the j ourney of<br />

coffee from the tree to cup- from sourcing beans,<br />

to roasting and cupping (tasting), even to<br />

operation and maintenance of machinery.<br />

THE PRODUCT<br />

Yittoria uses only I 00 per cent Arabica beans<br />

sourced from the world's best coffee producers.<br />

These raw beans are combined locally to create<br />

Yittoria's distinctive blends, many of which have<br />

been developed over 40 years of experience in the<br />

market. Yittoria ground coffee is vacuum packed to<br />

retain maximum freshness with an extensive range<br />

of sizes and blends available to suit a varying range<br />

of consumer tastes.<br />

Vittoria has recently introduced innovations<br />

such as the 'Cafe Series' highlighting cafe icon<br />

areas around <strong>Australia</strong> such as Leichhardt; the<br />

'Restaurant Series' including Neil Perry Rockpool<br />

Blend; and 'Oro' designed especial ly for home<br />

espresso machines.<br />

RECENT DEVELOPMENTS<br />

One of the most significant recent initiatives by<br />

Yittoria has been the development of the 'Cafe at<br />

Home' di splay concept in conjunction with retailer<br />

Woolworths. Educational information, shelving,<br />

layout and leaflets all help the consumer to choose<br />

the 'right' pure coffee for their taste and occasion.<br />

Further, by actively promoting the growth of coffee<br />

making app liances and accessories, Yittoria remains<br />

committed to creating the cafe experience at home<br />

for the <strong>Australia</strong>n consumer.<br />

PROMOTION<br />

Proud of its Italian cu ltural<br />

heritage, Yittoria has sponsored<br />

several major events during<br />

2003/04 including the Italiani di<br />

Sydney Exhibiti on (celebrating<br />

the contribution of Italian<br />

migrants in Sydney); Caravaggio<br />

- 'Darkness and Light' Art<br />

Exhibition (Sydney, Melbourne)<br />

and Jose Carreras' Sydney<br />

Recital.<br />

Yittoria sponsors various<br />

industry awards such as the<br />

Good Food Guide (Sydney &<br />

Melbourne) and <strong>Australia</strong>n Food<br />

Med ia Awards, fostering<br />

<strong>Australia</strong>n cuisine and dining.<br />

The Yittoria Heritage press<br />

campaign was introduced in 2003<br />

with a series of historical black<br />

and white photographs<br />

capturing Yittoria's Italian<br />

migrant roots and the early<br />

evolution of espresso coffee in<br />

Australi a.<br />

Also highly successful has<br />

been Vittoria's award-winning<br />

restaurant campaign which<br />

focuses on award-winning<br />

restaurants that choose to serve<br />

restaurants have an<br />

unswerving commitment<br />

to the best and freshest<br />

ingredients.<br />

Adve1torials featuring<br />

particular award<br />

win ning restaurants<br />

complement the campaign.<br />

For over I 0 years Yittoria has<br />

been advertising with John Laws and<br />

Mike Cru·Jton on 2UE. Advertisements<br />

feature award winning cates and<br />

restaurants via live reads.<br />

Agooclpttlororurce•nll.ll«


0<br />

vodafone<br />

THE MARKET<br />

The use of mobile phones in <strong>Australia</strong> has grown<br />

dramatically in recent years with about 14.3 mmion<br />

people using a mobile phone. Mobile phone<br />

penetration is around 72 per cent and mobile phones<br />

now far outnumber fixed lines.<br />

The <strong>Australia</strong>n market is extremely competitive,<br />

with strong growth in pre-paid services - around<br />

three out of four new mobile phone services<br />

connected in 2002-03 were pre-paid rather than<br />

post -paid contracts.<br />

Customers are increasingly seeking multimedia<br />

services such as picture and video messaging, 3D<br />

games and polyphonic ringtones, with a<br />

corresponding increase in demand for compatible<br />

handsets. In addition, the new wave of data services<br />

is blurring the lines between telecom and IT. In<br />

short, mobile is changing the way people<br />

communicate every day and Vodafone is at the front<br />

of this revolution.<br />

ACHIEVEMENTS<br />

Since Vodafone launched its service in 1993, it has<br />

captured an 18 per cent share of <strong>Australia</strong>' s mobile<br />

market, with 2.67 million customers.<br />

Vodafone has continually led the <strong>Australia</strong>n<br />

mobile market with innovations such as:<br />

Vodafone live! - a unique series of nextgeneration<br />

colour and picture-based services such<br />

as real-time access to news, entertainment, sports,<br />

games and more, all in full colour.<br />

Simple competitive offerings - such as<br />

Vodafone red SIM, which gives customers the<br />

flexibility to tailor their mobile phone to suit their<br />

needs by choosing either great value call rates,<br />

free TXT or 365 day call credit expiry. Customers<br />

also get capped Vodafone to Vodafone calls.<br />

PXT and Video PXT - picture and video<br />

messaging to all networks.<br />

Per second billing.<br />

123 Vodafone's exclusive 2417 information<br />

service.<br />

IMEI blocking to protect customers from<br />

mobile theft.<br />

Removing handset subsidies and<br />

challenging the industry to cease locking pre-paid<br />

handsets.<br />

Mobile Connect Card- a wireless solution<br />

for businesses of every size allowing customers to<br />

access their company' s LAN, the Internet, collect<br />

and send emails and send TXT messages from their<br />

laptop computers.<br />

In 2003, Vodafone received <strong>Australia</strong>n Telecom<br />

Magazine' s Mobile Operator of the Year award.<br />

Vodafone is focused on simplifying offerings,<br />

providing customers with the flexibility to choose<br />

the services and prices that suit them.<br />

HISTORY<br />

VodafoneGroup Pic, a UK company, was originally<br />

formed as Racal Telecom to bid for a UK cellular<br />

licence and the right to offer mobile services. The<br />

licence was granted in April 1983 and the service<br />

opened on I January 1985 with a call made from<br />

London' s Trafalgar Square to Vodafone' s head<br />

office in Berkshire. In 1991 Vodafone demerged from<br />

Racal Electronics, and on 30 June 1999 merged with<br />

AirTouch Communications, a leading US-based<br />

international mobile business. In March 2000<br />

Vodafone AirTouch acquired German company<br />

Mannesmann and it was agreed that the company's<br />

name would return to Vodafone Group Pic to help<br />

create one of the ten largest companies in the world.<br />

Today, Vodafone Group Pic is the world's largest<br />

mobile communications company with equity interests<br />

in 26 countries, and pmtner networks in a further 13<br />

countries - leaving an unmatched global network<br />

footp1int. Vodafone Group Pic has more than 130.4<br />

million propmtionate customers worldwide.<br />

132


Vodafone <strong>Australia</strong><br />

acquired its mobile<br />

carrier' s licence In<br />

December 1992. In<br />

September 1993, it<br />

began operations as<br />

<strong>Australia</strong>'s third mobile<br />

licence holder, being at<br />

the time the only<br />

network committed to<br />

digital technology with<br />

a GSM service.<br />

Vodafone <strong>Australia</strong><br />

has a customer base of<br />

more than 2.67 million<br />

customers and is 100<br />

per cent owned by UK<br />

based Vodafone Group Pic.<br />

THE PRODUCT<br />

Vodafone <strong>Australia</strong>'s network covers 92 per cent of<br />

the population, delivering state-of-the-art mobile<br />

services to customers around the country.<br />

Vodafone' s network uses GSM technology, which<br />

is the global standard for mobile telecommunications.<br />

In <strong>Australia</strong>, over 95 per cent of mobile<br />

customers use GSM technology.<br />

Vodafone <strong>Australia</strong> is breaking new ground to<br />

deliver fi·eedom to customers. The company is doing<br />

this through innovative new products and services<br />

such as Vodafone live!, red SIM and wireless<br />

business solutions.<br />

Vodafone live! was launched in April 2003,<br />

bringing the world of pictures, games, ringtones<br />

and mobile Intemet to <strong>Australia</strong> for the first time.<br />

With over 4.5 million Vodafone live! customers<br />

worldwide, it is leading the world in multi-media<br />

mobile services. The global Vodafone live' inte1face<br />

provides customer access to real-time sports,<br />

enteitainment, horoscopes, news and weather- all<br />

in full colour, whenever and wherever they want.<br />

Customers can also send and receive picture and<br />

video messages and download the latest games<br />

and ringtones.<br />

Vodafone red SIM offers customers the choice<br />

of great-value call rates or lots of free TXT to<br />

everyone, anytime on any network. With red SIM,<br />

customers now have the choice of customising their<br />

mobile phone plan to their individual needs.<br />

123 is Vodafone's exclusive 2417 personal<br />

concierge information service, which provides<br />

customers with access to up-to-the-minute news,<br />

weather, movie guides and reviews, directions,<br />

sports scores, trivia and more.<br />

Vodafone <strong>Australia</strong> has increased its retail<br />

presence to more than I 0,000 points including<br />

Vodafone branded stores, specialist dealers and<br />

major retailers such as Tandy, Harvey Norman,<br />

Kmcut, and Price line.<br />

Vodafone's Mobile Connect Card is a wireless<br />

solution for businesses of every size. Business<br />

customers can now wirelessly access their<br />

company's LAN (Local Area Network), collect and<br />

send emails, access the Internet and send TXT<br />

messages from their laptop computers while on the<br />

move.<br />

By leveraging the company's global scale, scope<br />

and expertise, Vodafone <strong>Australia</strong> benefits from<br />

working with the world's best networks cu1d<br />

suppliers to develop a wide range of mobile<br />

products, services and applications.<br />

RECENT DEVELOPMENTS<br />

In February 2004, Vodafone live! reached a<br />

significant milestone with more than 100,000<br />

<strong>Australia</strong>n customers connected to the leading<br />

multi-media service since its April 2003 launch.<br />

There are currently more than 4.5 million live'<br />

customers worldwide.<br />

Vodafone red SIM has experienced success in<br />

the <strong>Australia</strong>n market with its simple and competitive<br />

offering allowing customers to personalise their<br />

mobile phone to their individual needs.<br />

Vodafone intends to be a leader in 3G technology<br />

globally. Within <strong>Australia</strong>, Vodafone recently<br />

announced a significant multimillion-dollar<br />

investment in the deployment of 3G services by<br />

mid-2005, following trials in Europe.<br />

PROMOTION<br />

Vodafone has built a strong brand presence in<br />

<strong>Australia</strong> with its successful adve1tising, marketing,<br />

PR and sponsorship campaigns.<br />

Vodafone shook up the <strong>Australia</strong>n mobile mcu·ket<br />

with the launch of the bold red SIM marketing<br />

campaign and also Vodafone live! . The integrated<br />

campaigns were executed through national TV,<br />

radio, cinema, press and outdoor adve1tising, as<br />

well as below-th- line and media relations suppmt.<br />

Through its global sponsorship of the Ferrm·i<br />

Formula One team, Vodafone has a strong<br />

association with the <strong>Australia</strong>n Grand Prix, which<br />

is held in Melbourne each yem·.<br />

Vodafone live! was the official paitnerofRobbie<br />

Williams' December tour of <strong>Australia</strong>. Vodafone live!<br />

customers were able to access a Robbie Willicuns<br />

mini-site with exclusive Robbie Williams polyphonic<br />

ringtones, backgrounds, and PXT greeting ccu·ds<br />

to personalise their mobile phones.<br />

The company also sponsors the AFL team Port<br />

Adelaide Power, the soccer team Pe1th Glory and<br />

the Vodafone Arena in Melbourne.<br />

Vodafone' s sports sponsorship w·mmd the world<br />

extends to some of the leading names in global<br />

sport including Manchester United football team,<br />

David Beckham, the England Cricket team and the<br />

Fen·ari Formula One team.<br />

BRAND VALUES<br />

What makes Vodafone <strong>Australia</strong> really special is<br />

that it is a values-based organisation. This means<br />

the core values of the company m·e the focal point<br />

for all operations and decision-making, with staff<br />

invited to regulm workshops to track progress and<br />

revisit how their behaviour aligns with bringing<br />

the values to life in the customer experience.<br />

The values w·e sepcu·ated into two categories.<br />

Foundation values (how you and I interact) -<br />

excellence, suppmtive, fair dinkum and fun, and<br />

inspirational values (how we differentiate ourselves<br />

from other businesses) - hungry, gutsy and<br />

different. These values me all linked together by<br />

the Vodafone Global drives of passion for people,<br />

customers, results and the world mound us.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

VODAFONE<br />

0 The ncune Vodafone was devised from<br />

the first two letters of the words 'voice'<br />

and 'data'. This is as relevant now as it<br />

was in 1985.<br />

0 A qumter of all the world's mobile<br />

users me connected to a Vodafone<br />

network.<br />

0 A Vodafone <strong>Australia</strong> employee, Jcu11es<br />

Trusler, holds the Guinness World<br />

record for TXT messaging. James set a<br />

new record of 2 minutes 6 seconds for<br />

a 160 chm·acter TXT message.<br />

0 The Vodafone <strong>Australia</strong> Foundation is<br />

a chmitable trust, which contributes<br />

approximately $1 million each yew· to<br />

help Vodafone and its people<br />

contribute to the <strong>Australia</strong>n<br />

community and make a difference to<br />

the world mound them.<br />

133


THE MARKET<br />

The WHISKAS® brand is the leading brand of cat<br />

food in <strong>Australia</strong>, partly because of its history but<br />

mainly as a brand consumers can trust. It also tastes<br />

great and is one of only a handful of cat foods that<br />

offer a complete and balanced nutritional diet.<br />

WHISKAS is also dedicated to providing<br />

consumers with quality cat care products for all<br />

occasions.<br />

A typical WHISKAS customer is hard to define.<br />

They represent all ages, both sexes and, in most<br />

cases, view their pet as a family member or<br />

companion! In fact, WHISKAS cat owners enjoy<br />

the knowledge that their cats lead an independent<br />

life. It means a great deal to them that their eat's<br />

natural instincts and need for freedom is respected.<br />

By developing a greater understanding of<br />

customer needs, WHISKAS has been able to<br />

generate strong growth_over the past five years<br />

through product and packaging innovations such<br />

as WHISKAS VITA-BITES®, the taste<br />

breakthrough cats 'go crazy for' and WHISKAS<br />

SINGLES®, the convenient fresh, single-serve meal<br />

for all occasions.<br />

In addition, WHISKAS continues to grow<br />

outside the main meal market in areas including<br />

snacks, treats and milk as cat owners become better<br />

educated about the health benefits offeeding from<br />

across the entire WHISKAS range.<br />

ACHIEVEMENTS<br />

WHISKAS is <strong>Australia</strong>'s and the world's favourite<br />

and therefore the largest cat food brand. WHISKAS<br />

is the leading authority on cats. In fact, its<br />

overwhelming market share makes it the most<br />

preferred brand for everyday feeding.<br />

The brand consistently strives to bring product<br />

and packaging innovations and new levels of<br />

understanding to all areas of cat care, often<br />

satisfying needs not even recognised by other<br />

brands.<br />

Its insight into the needs and behavioural<br />

characteristics of cats of all ages, as well as the<br />

benefits of cat ownership, stem from the knowledge<br />

accumulated during many years at the<br />

WALTHAM® Centre for Pet Nutrition.<br />

HISTORY<br />

WHISKAS cans were first manufactured in<br />

Wodonga, Victoria, in 1967. Production of the<br />

WHISKAS Dry range, originally known as<br />

WHISKETTES®,began in Bathmst,NSW, in 1974.<br />

Both were branded with a cat mask in the<br />

background and the word 'WHISKAS' or<br />

'WHISKETTES' over the top in white- the same<br />

iconography used today.<br />

Since the launch of both products, WHISKAS<br />

has continued development in all areas of main meal,<br />

snacks and treats. More recently this has also<br />

included pet care, with items such as collars, bowls<br />

and beds. Over the past three years the brand has<br />

become even more accessible to all age groups of<br />

cat lovers via the Internet.<br />

The WHISKAS brand major distTibution points<br />

m·e traditional outlets such as supermm·kets but, as<br />

the market grows and diversifies the brand is also<br />

becoming a prominent feature in agricultural stores.<br />

More recently it has also become available through<br />

a channel of mass merchandisers to ensure<br />

WHISKAS reaches customers in all geographic<br />

areas.<br />

There have been both major and minor changes<br />

to the packaging over the years, but the brand fl ag<br />

and the famous cat mask have remained relatively<br />

constant.<br />

One of the most dramatic changes was the<br />

change of branding colour from blue to purple in<br />

2000 - a change that was suppo1ted by the famous<br />

campaign "cats see purple" . At this time, the<br />

fmnous British Shorthair Silver Tabby was also<br />

incorporated into all the packaging. It has since<br />

statTed in the brand's highly popular television<br />

commercials.<br />

During this colour change the dry range also<br />

underwent significant change. It was rebranded as<br />

a WHISKAS product rather than WHISKETTES.<br />

Since then the populm·ity of the range has continued<br />

to grow. It is now available in a number of pack<br />

sizes and convenient forms such as the easy-pom<br />

box with spout.<br />

134


In 1999, WHISKAS became the first cat food<br />

brand to introduce single-serve meal sachets into<br />

the pet food category, with WHISKAS SINGLES.<br />

This was soon followed by other innovations in<br />

the snacks and treats range, with functional snacks<br />

such as WHISKAS DENTABITSTMfor teeth and<br />

taste sensations such as WHISKAS CRAVERS®<br />

In 2003, the brand flag ofWHISKAS was slightly<br />

modified from a red mask to a purple one as patt of<br />

a global move towards more<br />

consistent branding - but the ever<br />

famous Silver Tabby remains and is<br />

now even more consistent across all<br />

packaging and product formats.<br />

THE PRODUCT<br />

WHISKAS manufactures top quality<br />

cat food in three main meal groups.<br />

These are cans, containing a greattasting<br />

wet food that is both complete<br />

and balanced; WHISKAS SINGLES,<br />

delicious recipes gently cooked to<br />

pe1fection and sealed in foil to ensure<br />

a fresh taste and m·oma every time;<br />

and WHISKAS VITA-BITES, a<br />

delicious and nutritious dry food that<br />

is crunchy on the outside and deliciously tender<br />

on the inside.<br />

Outside these three main meal options there is<br />

also a great range of snacks and treats such as<br />

WHISKAS MILK PLUS®, a lactose-reduced milk,<br />

specifically developed for cats, that is gentle on<br />

sensitive stomachs; WHISKAS CRA VERS, a great<br />

tasting dry snack; and WHISKAS DENTABITS, a<br />

delicious, chewy snack that helps keep teeth clean.<br />

Each product also offers vm·ieties to suit different<br />

stages of a eat's life, whether it be the specially<br />

formulated WHISKAS Kitten range or WHISKAS<br />

Senior - a nutritious and easily digested range of<br />

food specifically for cats over eight years of age.<br />

All WHISKAS main meal products provide<br />

complete and balanced nutrition for cats and are<br />

developed in accordance with the WHISKAS Food<br />

Pyramid to ensure every meal has the right balance<br />

of nutrients cats need to stay in the best of health.<br />

This focus on the health benefits of a fully<br />

balanced and nutritious diet is important for the<br />

strength of the WHISKAS brand.<br />

RECENT DEVELOPMENTS<br />

One of the most significant developments in recent<br />

yem·s has been the introduction of the WHISKAS<br />

SINGLES range, which has benefits for both cat<br />

and owner. Sealed in foil and gently cooked, this<br />

innovative range is convenient and offers the very<br />

best in freshness and flavour. The simple 'open<br />

and pour' packaging provides a no-mess feeding<br />

option for owners.<br />

WHISKAS also leads the innovation in dry food<br />

segment thanks to its pioneering Vita-Bites product.<br />

These nutritional bites are crispy on the outside<br />

and soft in the centre to create a great taste<br />

sensation.<br />

WHISKAS was also one of the first cat food<br />

brands to recognise the different nutritional needs<br />

at various stages of life. The development of a Kitten<br />

and Senior range of foods has been a major move<br />

for WHISKAS. It is the only brand that offers both<br />

Wet and Dry foods for both of these life stages.<br />

Today WHISKAS continues to move towm·ds a<br />

strong image in retail outlets with consistent design<br />

across all packaging formats. This 'new look' is<br />

intended to help customers identify both the brand<br />

flag and the complete range of offerings and feeding<br />

solutions.<br />

PROMOTION<br />

Effective promotion is especially complex when the<br />

brand is the mm·ket leader. Mm·ket leadership means<br />

competitors are constantly seeking to share the<br />

'consumer mind space' that WHISKAS owns. As a<br />

result, WHISKAS actively evolves the way in<br />

which it represents itself.<br />

A good example of this is the communication<br />

challenge confronting the brand in television<br />

adve1tising which, until recently, has been formulaic<br />

(that is, call the cat; cat running to the bowl; cat<br />

eating enthusiastically).<br />

WHISKAS chose to differentiate itself by going<br />

beyond the basics of taste and nutrition and<br />

acknowledging the 'cat and owner relationship'.<br />

This approach proved to be extremely successful<br />

with customers around the country responding to<br />

compelling insights into the relationship.<br />

WHISKAS has also tackled the traditionally<br />

difficult task of bringing 'news' to the category by<br />

turning 'news items' into events such as the 'first<br />

commercial ever for cats' campaign and the 'Pmrrple<br />

Promotion' in 2000.<br />

The national and international awm·d-winning<br />

WHISKAS 'mouse' campaign has also spem-headed<br />

the growth and development of not only the<br />

WHISKAS VITA-BITES dry product range, but of<br />

the entire dTy category.<br />

The brand has also been able to redefine how<br />

people feed 'wet' cat food with the WHISKAS<br />

SINGLES offering. The campaign<br />

brings to life a consumer insight by<br />

getting inside the cat' s mind. Sales<br />

have responded exponentially.<br />

BRAND VALUES<br />

WHISKAS fully understands cats<br />

and can deliver products to meet their<br />

idiosyncratic needs and changing<br />

preferences.<br />

WHISKAS has established itself<br />

as the brand that cat lovers trust by<br />

producing products that taste great,<br />

are nutritionally complete and<br />

balanced and m·e affordable.<br />

a socially responsible business by actively<br />

supporting cat and kitten re-homing programs<br />

m·ound the country and promoting responsible pet<br />

ownership.<br />

WH ISKAS® , WHISKAS SINGLES®. W HISKAS VITA-BITES®. WHIS K ETTES® .<br />

WALTH AM®. WHISKAS® DENTABITSn 1 • WHISKAS CRAVER$®. WH ISKAS MILK<br />

PLUS®® Registered Trademnrk 1 ~ 1 Trademark ~ Ma l> t er Food~<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

WHISKAS<br />

0 WHISKAS has helped more than<br />

30,000 needy cats find loving homes<br />

by actively sponsoring cat re-homing<br />

progran1s m·mmd the country.<br />

0 The WHJSKAS website<br />

(www.whiskas.com.au) is consistently<br />

among the top five most visited Fast<br />

Moving Consumer Goods websites in<br />

<strong>Australia</strong>.<br />

0 WHISKAS products are developed in<br />

conjunction with WALTHAM - the<br />

world' s leading authority on pet cm·e<br />

and nutrition.<br />

0 The fatnous WHJSKAS 'mouse'<br />

television commercials has won<br />

people's favourite adve1tisement<br />

awm·ds two yem·s running and received<br />

an international adve1tising awm·d<br />

(Silver Clio) in the category of TV &<br />

Cinema for the entertai11ing Bungee<br />

Mouse creative.<br />

135


White Pages®<br />

THE MARKET<br />

The way we contact people has<br />

changed dramatically over the last ten<br />

years. Once there was just the home<br />

telephone and maybe a fax machine,<br />

these days everyone seems to have a<br />

mobile phone, use SMS, have one or<br />

two e- mail addresses and surf the<br />

Internet. And with more ways to<br />

communicate, come more ways to be<br />

contacted.<br />

In this fas t-moving and<br />

increasingly mobile market, the White<br />

Pages® directory has consistently<br />

provided comprehensive contact<br />

information. Available via print, online,<br />

CD and telephone, the White Pages®<br />

products have grown with the times<br />

to keep <strong>Australia</strong>ns connected.<br />

ACHIEVEMENTS<br />

The White Pages® directory is the prime source of<br />

contact information in <strong>Australia</strong>. Research shows<br />

that 72 per cent of consumers surveyed between<br />

the ages of 18 and 64 in <strong>Australia</strong>n metropolitan<br />

directory markets referred to the White Pages®<br />

directory in the month preceding the Market<br />

Research. 1<br />

Whitepages.com.au on average receives over<br />

1.8 rnillion unique visitors to its site each month 2<br />

and is consistently ranked as the number one site<br />

in directory category rankings. 3<br />

HISTORY<br />

The White Pages® brand was born in 1958. The<br />

Melbourne and Sydney telephone directories had<br />

become so thick that they had to be split into two<br />

di stinct directories: an alphabetical directory, the<br />

White Pages® directory, and a cl assified directory,<br />

the Pink Pages (later to become the Yellow PageSiD<br />

directory).<br />

For many years, White Pages® directory<br />

products were managed by National Directory<br />

Services, an internal business unit of the then<br />

Telecom <strong>Australia</strong>, also responsible for the printing<br />

and distribution of both White Pages® and Yellow<br />

Pages® directories. In 1997, Telst:ra Corporation<br />

Limited outsourced the White Pages® directory<br />

services to Sensis Pty Ltd (formerly known as<br />

Pacific Access Pty Ltd), a subsidiary of Telstra,<br />

giving it full responsibility for the day to day<br />

management of both White Pages® and Yellow<br />

Pages® directory products, on behalf of Telstra.<br />

THE PRODUCT<br />

The White Pages® brand sits across a product<br />

range that comprises the White Pages® directory,<br />

whitepages.com.au, the White Pages® directory<br />

on CD and Electronic White Pages® product. In<br />

addition Telstra Call Connect utilises the White<br />

Pages® information to provide a search engine via<br />

the telephone. These products are constantly<br />

evolving in order to reflect changing communication<br />

methods.<br />

The White Pages® directory is made<br />

available to almost every home and business in<br />

<strong>Australia</strong> each year and is an alphabetical listing<br />

of nearly every business, government and<br />

private residence with a telephone connection.<br />

There are a total of SS directories, 46 of which are<br />

co-bound with Yellow Pages® directories,<br />

containing over 8 million listings.<br />

In the printed directory, every first<br />

appearance of a telephone number<br />

qualifies for a complimentary entry of<br />

name, address and telephone number.<br />

Additional fields such as fax, email or<br />

web address can be purchased.<br />

Businesses can help reinforce and<br />

strengthen their business presence<br />

through a range of enhancement<br />

listing options such as:<br />

• Bold,<br />

• Superbold,<br />

• Business logo and<br />

• Colour options.<br />

Businesses can also take<br />

advantage of quarter, half and fullpage<br />

listings.<br />

The White Pages® OnLine site<br />

ftrst became operational in September 1995. It offers<br />

access to a comprehensive and up-to-date contact<br />

information database with over 8.76 million 4<br />

residential , business and government listings,<br />

<strong>Australia</strong>-wide.<br />

Contact details include e-mail and website<br />

hyperlinks, as well as traditional address<br />

information, telephone, fax and mobile numbers.<br />

Details such as company description, parking<br />

directions, hours of operation, and methods of<br />

payment have only added to the user friendliness<br />

of the site.<br />

As wel l as including all natio nal contact<br />

information published in the printed directories, the<br />

si te also includes <strong>Australia</strong>n postcodes,<br />

international times, world dialing codes and date<br />

and time details. In addition, the mapping service<br />

136


on www.whitepages.com.au details the exact<br />

location of the searched listing, through Whereis®<br />

interactive maps (where available). Listing details<br />

are updated daily, giving the site currency of<br />

information equal to that of directory assistance.<br />

Whitepages.com.au can also be accessed<br />

anytime, anywhere using a WAP (Wireless<br />

Application Protocol) enabled mobile phone.<br />

Whitepages.com.au gives WAP mobile phone 5<br />

users access to <strong>Australia</strong>'s residential listings and<br />

postcode information from their mobile phones.<br />

The White Pages® directory on CD contains all<br />

55 directories and allows the user to search by<br />

business or residential li sting across single or<br />

multiple directories. With search features 'sounds<br />

like', 'starts with' and ' nearby' and the ability to<br />

enter postcode or locality, it's easy to find what<br />

you are looking for. There is also the facility to<br />

create a personal address book on the hard drive of<br />

your computer and print address labels for mailing.<br />

The Electronic White Pages® service is a<br />

subscription service that provides sub-second<br />

responses to queries via connection to a White<br />

Pages® database service. Robust and reliable, it<br />

provides instant access to the most up-to-date<br />

White Pages® information available. It is a useful<br />

business tool for locating and verifying customer<br />

details and can also be used to provide Directory<br />

Assistance services.<br />

RECENT DEVELOPMENTS<br />

Recent innovations in product development,<br />

especially in regards to electronic commerce, are<br />

instrumental in moving the White Pages® brand<br />

to being positioned in the marketplace as the<br />

ultimate and complete source of contact<br />

infonnation. White Pages® is a significant brand<br />

that can represent all contact details, be they fixed<br />

or mobile telephony, physical or e lectronic<br />

addresses.<br />

In 2001 , some changes were made to the 200 I /02<br />

Perth White Pages® directory, to help make it easier<br />

to use and faster for people to find what they are<br />

looking for. A separate business section was<br />

included, where all business and government<br />

listings were sorted alphabetically. This section<br />

appeared at the front of the directory and was<br />

highlighted by a red tab. The residential section<br />

followed with every unique surname appearing<br />

once as a bold heading making it easier to use.<br />

Each listing pertaining to that surname was listed<br />

underneath by initial/first name, address and<br />

contact details. Following the success of the trial<br />

this format was extended into all mqjor metropolitan<br />

markets in 2002/03.<br />

Fwther innovation has been implemented in the<br />

2003/04 Perth market, providing directory users with<br />

a White Pages® Business/Government directory<br />

and separate White Pages® Residential directory.<br />

This makes it even easier to access the contact<br />

information needed.<br />

PROMOTION<br />

Through the late 1990s, White Pages® began a<br />

high-profile campaign to reinforce its role as the<br />

most comprehensive, relevant and user-friendly<br />

information tool. For the first time the brand used a<br />

combination of television, radio and direct mail to<br />

connect with its growing user and customer base.<br />

The campaign included reuniting the workers of<br />

the well-known Snowy River Scheme to<br />

demonstrate how easy it is to contact past friends<br />

with the White Pages® directory.<br />

In 2000, the focus shifted to highlight a series of<br />

product innovations, known as 'enhanced listings'.<br />

These included bold, coloured and logo listings,<br />

as well as e-mail and web addresses. To demonstrate<br />

the benefit of a coloured listing, one print ad shows<br />

a man in army camouflage hiding in the jungle -<br />

only thing is his camouflage is bright pink.<br />

In 2003, a successful tTial was implemented in<br />

the Pe1th market, splitting up the White Pages®<br />

directory into Business/Government and<br />

Residential volumes. A supporting press ad<br />

graphically communicates this shift by showing<br />

the two separate directories as bookends on a<br />

bookshelf with the headline, 'We've split up our<br />

books' .<br />

With this significant change, White Page:®<br />

returned to television with an ad featuring its<br />

business listings section. Using the line, 'If you<br />

know the business name, we'll help you contact<br />

them' the ad shows two detectives solve a bank<br />

robbery case with the help of the White Pages®<br />

directory. It turns out that one of the robbers wore<br />

his work shirt to the bank, complete with the<br />

business name and logo on the pocket.<br />

The ad also works to differentiate the White<br />

Pages® directory from the Yellow Pages® directory.<br />

That major difference being, the White Pages®<br />

directory used a known name search whereas the<br />

Yellow Pages® directory used a known category<br />

search.<br />

BRAND VALUES<br />

As the world continues to change at an accelerating<br />

rate, there is an increasing need for a trusted means<br />

of easily accessing accurate, thorough contact<br />

details, whenever and however you need them.<br />

Like the world it operates in, the White Pages®<br />

brand continues to change and evolve, offering<br />

more and more practical and efficient ways of<br />

delivering on its core promise of helping people<br />

get and keep in touch.<br />

The White Pages® directory has long been<br />

there for you. You turn to it when you know your<br />

local pizza shop's name but not the number, or when<br />

a friend's address is on the tip of your tongue. It' s<br />

been around for ages, but it's up-to-date with the<br />

most practical and helpful contact information .<br />

You 're sure to find the White Pages® directory on<br />

everyone's bookshelf at home as well as in their<br />

Internet bookmarks at work.<br />

I Independent research of people aged 18-64 conducted by T NS in (Sydney. Melbourne.<br />

Brisbane. Adelaide. Perth) Metropolitan Directory Markets (April 2003 to June 2003) 2<br />

Red Sheriff. Customer Intelli gence (U niqu e users Apri l 2003-Septcm ber 2003) 3 Red<br />

Sheriff Market Intelligence (Direc tory Category Ranking Janu ary 2003 - September 2003)<br />

4 White Pagei!D OuLiu(' database. October 2003 5 White Page~ OnLin(' site WA P access<br />

availabl e onl y via Telstra' s WAP service 6 Independ ent researc h of people aged 18-64<br />

condu cted by TNS in (Syd ney. Melbourn e. Bri sbane. Ade laide. Pe rth ) Me tropoli tan<br />

Di rectory Markets (A pri l 2003 to June 2003) 7 Red Sheriff. Customer Intelli gence (U nique<br />

use rs April 2003-Scpternbcr 2003) 8 Red Sheriff Market Intelli gence (Directory C llcgory<br />

Ranking January 2003 - September 2003)<br />

I<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

THE WHITE PAGES<br />

0 The first <strong>Australia</strong>n telephone directory<br />

was issued in Melbourne in June 1880.<br />

It listed the names of the 23 Edison-Bell<br />

telephone subscribers, and the<br />

location of their phone lines.<br />

0 A different theme for the 55 covers of<br />

the White Pages® directory is decided<br />

each year, and these range from<br />

historical events, environmental issues,<br />

sp01t, lifestyle, people and places,<br />

reflecting the locality of the book.<br />

0 Research shows that 72 per cent of<br />

consumers surveyed between the ages<br />

of 18 and 64 in <strong>Australia</strong>n metropolitan<br />

markets refe1Ted to the White Pages®<br />

directory in the month preceding the<br />

Market Research 6 .<br />

0 On average, whitepages.com.au<br />

receives over 1.8 million unique visitors<br />

every month 7 and is consistently<br />

ranked the number one site in the<br />

directory category rankings. 8 137


(T/u f~ FtxxJ PetJ te)<br />

!!!!WOOLWORTHS ~<br />

THE MARKET<br />

The <strong>Australia</strong>n grocery market is not for the faint<br />

hemted. It is very competitive and accompanied by<br />

low margins.<br />

It may appem· that the major players dominate<br />

the food and liquor market, but the figures show<br />

that smaller supermarket operators will actually soon<br />

have more than 50 per cent of the $70 billion mm·ket.<br />

Despite all thi s competition, and in an<br />

increasingly discerning market, Woolworths'<br />

steadfast policy of "the best product at the best<br />

price with the best service" has produced an<br />

<strong>Australia</strong>n brand so robust that it can claim to be<br />

an impmtant part of the nation's economy.<br />

Woolworths' sales results reflect customer<br />

acceptance of the total offer of range, freshness,<br />

quality, competitive pricing, convenience and instore<br />

service.<br />

ACHIEVEMENTS<br />

Woolwmths has more apprentices and trainees than<br />

any other <strong>Australia</strong>n company. It invests many<br />

millions of dollars every yea~· in staff training instore.<br />

During 2003, The "Fresh Obsession" staff<br />

training progrmn involved 75,000 supermarket staff<br />

and is a prime example ofWoolwmths' corrunitment<br />

to developing employee skilJs and cultivating talent.<br />

Most senior Woolwmths managers have come<br />

through the ranks of the company and a university<br />

program has been developed with a leading tettim-y<br />

institution to accelerate training, establishing<br />

Woolworths as a corporate leader in people<br />

development.<br />

Woolworths' staff terms and conditions of<br />

employment, including wages, superannuation,<br />

employee share ownership plans and service<br />

contracts as well as D·aining and cm·eer paths have<br />

D·aditionally met and surpassed industry standm·ds.<br />

The development of Woolworths Petrol has<br />

enabled Woolworths to provide customers with an<br />

excellent, unique supplementm·y offer. They can<br />

save 4c per litre on peb·ol when spending $30 or<br />

more in a Woolwmths supermarket. The success<br />

of this offer has seen other supermarket retailers<br />

following suit.<br />

To reinforce Woolworths' fresh food leadership,<br />

the Woolworths Quality Assurance Program was<br />

developed to ensure that the best quality fresh<br />

merchandise is available to Woolworths' customers.<br />

Woolworths works with and sources products from<br />

quality assured suppliers who are dedicated to<br />

producing goods that meet Woolworths' quality<br />

standards. Woolworths' livestock buying team<br />

clocks up over 1.2 million kilometres a yea~· across<br />

<strong>Australia</strong> working closely with producers. The<br />

success of the Quality Assurance Progrmn has led<br />

other supermarket retailers to pursue similar<br />

programs.<br />

HISTORY<br />

Woolwmths has changed the face of retailing in<br />

<strong>Australia</strong>. The very first shop, "Woolworths<br />

Stupendous Bargain Basement" in the cramped<br />

basement of the Imperial Arcade ( 1924) heralded a<br />

new era in shopping. By 1933 Woolworths had<br />

developed the "chain" store with 31 stores in<br />

<strong>Australia</strong> and 9 in New Zealand. Even through the<br />

depression and war years Woolworths continued<br />

to grow and employ <strong>Australia</strong>ns with 25 stores<br />

opened in the first months of World War II. Ln<br />

1956, <strong>Australia</strong>'s first checkout style variety store<br />

opened at Beverley Hills offering "swift, cowteous"<br />

service. Nineteen fifty-seven heralded the first<br />

"Supermarket" at Dee Why in Sydney. Next,<br />

Woolworths' first Food Fair store led the<br />

diversification into food. Woolwo1ths pioneered<br />

the supply of a wide range of low-price, quality<br />

merchandise to rural <strong>Australia</strong>, most dramatically<br />

in Alice Springs and Darwin. Woolworths soon<br />

became <strong>Australia</strong>'s biggest retailer of fresh fruit and<br />

vegetables, which became the key factor in making<br />

retailing <strong>Australia</strong>'s second large t industry.<br />

TV corrunercials in 1983 sang of the "one stop<br />

shop that's got the lot". By 1985, acquisition of<br />

<strong>Australia</strong>n Safeway Ltd had made Woolwmths the<br />

market leader in grocery sales. The now legendary<br />

"Fresh Food People" strategy of '87 under the<br />

management of Paul Simons and Harry Watts<br />

rocketed Woolwmths into the position of <strong>Australia</strong> ' s<br />

largest retailer of quality fruit and vegetabl es,<br />

serving over 10 million customers every week. In<br />

two years profit went from $8 million to $136 million.<br />

In 1993, the $2,450 million Woolwmths share<br />

float was the biggest in <strong>Australia</strong>n hi story. The<br />

I ,000 million shares on offer were quickly snapped<br />

up by more than 330,000 investors, many of them<br />

everyday <strong>Australia</strong>ns including 19,000 Woolworths<br />

employees. The company has come a long way<br />

from the Stupendous Bargain Basement in the<br />

Imperial Arcade. Continuing growth suggests that<br />

138


there's a long, exciting and prosperous road ahead<br />

for this trusted <strong>Australia</strong>n institution.<br />

THE PRODUCT<br />

Currently Woolworths has over 700 supermarkets<br />

that serve more than 13 million customers nationally<br />

every week. Woolworths purchases 25 per cent of<br />

all fruit and vegetables grown in <strong>Australia</strong>, 14 per<br />

cent of all meat and just under 10 per cent of all<br />

dairy products, making Woolworths a significant<br />

supporter of rural and regional <strong>Australia</strong>.<br />

Woolwmths Liquor, along with Dan Murphy's<br />

and BWS, has brought significant competition to<br />

the liquor market and lower prices to customers.<br />

Woolworths Petrol has changed the landscape<br />

of <strong>Australia</strong>n supermarket retailing. More than two<br />

thirds of sites are conveniently located either in<br />

the carpark or adjacent to a supermarket.<br />

EzyBanking, a joint initiative ofWoolwmths and<br />

the Commonwealth Bank of <strong>Australia</strong>, provides<br />

more than 600,000 customers with convenient<br />

access to fee-free banking in Woolwo1ths, along<br />

with longer banking hours, further enhancing the<br />

one stop shopping experience by enabling<br />

customers to bank while they shop.<br />

Woolworths is not just about product and price,<br />

it's also about being a good member of the<br />

community, supporting many events and charities<br />

that benefit the country's children and education,<br />

plus rural and regional <strong>Australia</strong>. August 2003<br />

marked the launch of the Woolwmths Fresh Future<br />

Children's Hospital Appeal. Through the effmts of<br />

Woolworths' staff and generosity of<br />

Woolworths' customers over<br />

$3 ,000,000 was rai sed to aid<br />

children's hospitals and wards<br />

across <strong>Australia</strong>. Woolworths<br />

is also working with the Fred<br />

Hollows Foundation. Ban·y OtT,<br />

one of Woolworths' most<br />

experienced store managers,<br />

and hi s family have been working<br />

with several indigenous<br />

communities in remote areas near<br />

Katherine, in the Northern Territory, teaching<br />

them ski lls required to operate retail facilities and<br />

stock fresh and nutritious foods.<br />

RECENT DEVELOPMENTS<br />

"Being a Fresh Food Person is more than a job. It's<br />

an obsession," is the essence of the latest<br />

Woolworths conunercials. 1987 saw the first fresh<br />

food commercials, which impacted greatly on the<br />

retail environment and contributed to Woolwmths<br />

and "The Fresh Food People" being synonymous.<br />

The current "Fresh Obsession" campaign<br />

illustrates that Woolworths deli vers the best and<br />

freshest foods to its supermarkets by working<br />

closely with their suppliers and adhering to the<br />

Quality Assurance Program.<br />

Each commercial illustrates a stm-y that gives<br />

customers the facts behind the fresh food in store<br />

and demonsb·ates that Woolworths is obsessed<br />

about delivering the freshest food. Why does the<br />

orange farmer buy his apples at Woolworths?<br />

Because he knows the lengths he has to go to in<br />

order to get hi s oranges from the orchard to<br />

Woolworths to the customer.<br />

To reinforce Woolworths' commitment and<br />

passion, supermarket staff underwent a<br />

comprehensive "Fresh Obsession" training<br />

program to enhance their skills and product<br />

knowledge.<br />

Fwthermore an extensive range of information<br />

leaflets has been developed to enable<br />

customers easy access to recipes,<br />

product and nutritional<br />

information on fresh foods.<br />

" Woolworths Fres h"<br />

packaging has been refreshed<br />

to reflect the quality of the<br />

products it contains and<br />

includes the Woolworths<br />

Quality Assured tick to reinforce<br />

quality, freshness and the money<br />

back guarantee.<br />

Woolworths launched the "Supermm·ket<br />

Safm·i" website in October 2003 as a resource for<br />

parents and teachers to help educate young<br />

children about nutrition.<br />

Woolworths and FPC Magazines continue to<br />

work together and have added a new weekly<br />

magazine, Woolworths Fresh, to the already<br />

established monthly <strong>Australia</strong>n Good Taste and<br />

the bi-monthly <strong>Australia</strong>n Parents. Woolworths<br />

Fresh informs readers on the latest products<br />

available in Woolworths supermarkets plus<br />

recipes, hints and tips as well as wholesome aJticles<br />

on lifestyle, entettainment, health and beauty.<br />

Woolworths and Caltex have<br />

established an alliance, adding<br />

over 130 Caltex Woolworths<br />

outlets to the already existing 300<br />

Woolworths Petrol outlets<br />

enabling customers to redeem<br />

petrol discount offers in over 430<br />

outlets <strong>Australia</strong> wide.<br />

PROMOTION<br />

Advertising and promotions plus<br />

in-store point of sale have always<br />

been an important part of<br />

WoolwoJths' promotional mix. In recent times they<br />

have been fundamental in communicating the radical<br />

improvement that the company has made to its<br />

stores. The cun·ent "Fresh Obsession" commercials<br />

give customers proof that Woolworths goes to great<br />

lengths to deliver the freshest food.<br />

"Everyday Low Prices" are a prime focus of<br />

Woolwmths' core value of being the "first choice"<br />

for <strong>Australia</strong>ns because of the better service,<br />

friendlier people, greater range and unbeatable<br />

prices. And Everyday Low Price products are a<br />

significant pmt ofWoolworths' product and price<br />

promotions in store, through point of sale as well<br />

as in catalogues and press.<br />

Woolworths is ranked as one of the Top I 0 media<br />

buyers in <strong>Australia</strong>, using a variety of media to<br />

reach a broad target market. More than six Inillion<br />

catalogues are distributed to homes 52 weeks of<br />

the year. Brand and ptice advettising appem·s on<br />

all television networks. Up to I 00 newspapers<br />

feature Woolwmths advertisements at least once a<br />

week.<br />

BRAND VALUES<br />

CEO Roger Corbett sums up Woolworths' core<br />

values with the no-nonsense statement "the best<br />

product at the best price with the best service". To<br />

this end, the Fresh Food People line incorporates<br />

not just the promise of the biggest and best range<br />

of fresh food but more. Woolworths passionately<br />

believes that its people are the core of the company's<br />

success, as important to the shopping experience<br />

as the food itself. "The Woolwmths Way" was<br />

coined to express the pride staff have in "getting it<br />

right on the shop floor".<br />

Woolworths is down-to-earth, honest,<br />

approachable, <strong>Australia</strong>n and committed to<br />

ensuring customers a better shopping experience<br />

- each and every time.<br />

www. woolworths.com.au<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

WOOLWORTHS<br />

0 Woolwmths is the second-largest<br />

private employer in <strong>Australia</strong><br />

0 All staff shown in commercials m·e<br />

actual Woolwmths employees and all<br />

growers shown m·e actual Woolwmths<br />

suppliers.<br />

0 Woolworths has more than 320,000<br />

shm·eholders, 50,000 of whom m·e<br />

Woolwmths employees.<br />

139


WRIGLEY'S<br />

Extra®<br />

SUGARFREE CHEWING GUM<br />

THE MARKET<br />

Chewing gum has been one of the fastest growing<br />

consumer goods categories in <strong>Australia</strong>. Chewing<br />

gum accounts for 20 per cent of all non-chocolate<br />

confectionery sales in <strong>Australia</strong> with a total value<br />

of approximately $180 million each year. The<br />

majority of gum sales are impulse purchases with<br />

the heaviest consumers in the 15-30 year age group.<br />

The market is structured into sugar and sugatfree<br />

products and into single and multi pack purchases.<br />

Consumer benefits at·e segmented into Fresh Breath,<br />

Taste, Dental Cat·e and Kids.<br />

Wrigley is the lat·gest player in the chewing gum<br />

mat·ket, with market leadership across all segments.<br />

ACHIEVEMENTS<br />

EXTRA gum was the first sugatfree gum launched<br />

by Wrigley and was introduced in 1984 in the US.<br />

During the 'seventies, the growth of modified<br />

products led to the rise of attificial sweeteners to<br />

replace the sugars in many food products. However<br />

despite sugar's poor image and declining<br />

consumption, the sugarfree gum category failed to<br />

develop.<br />

In 1987 the State Health Authorities allowed the<br />

use of Nutrasweet as a sugar substitute. In the<br />

same yeat·, EXTRA gum was launched in <strong>Australia</strong><br />

-the first chewing gum to contain Nutrasweet.<br />

EXTRA gum is now the most recognised<br />

chewing gum brand on the <strong>Australia</strong>n mat·ket and<br />

the biggest non-chocolate confectionery brand in<br />

the country.<br />

At launch, Wrigley forecast, "the launch of<br />

EXTRA sugatfree gum has potential to achieve<br />

over 9 per cent of the total chewing gum market<br />

and this would be done in year three of mat·keting".<br />

This target was acrueved after only four months of<br />

television advertising and within only two yeat·s of<br />

its launch, EXTRA gum had become the lat·gest<br />

selling chewing gum brand on the market. The<br />

success of EXTRA gum's launch resulted in an<br />

impressive growth in the overall chewing gum market<br />

by 40 per cent in just four yeat·s.<br />

By 1992,EXTRAgum's sales volumeh


The aim of the creative strategy suppmting<br />

the Dental Care platform was to increase usage<br />

of chewing gum by changing social attitudes<br />

towards the category, that is, to inform the<br />

audience of the benefits of the chewing action<br />

and salivary stimulation. This was achieved<br />

by targeting two key audiences: the dental<br />

community and consumers.<br />

The campaign, comprising speakers at<br />

dental conventions, press advertising, direct<br />

mail and television advertising, proved<br />

successful.<br />

The number of dentists associating dental<br />

benefits with chewing gum increased<br />

significantly from only 20 per cent in 1988 to<br />

85 per cent in 1992.<br />

Consumer reactions to the advertising were<br />

also favourable, with results showing they<br />

found it informative, interesting and most<br />

impmtantly, believable with 55 per cent of gum<br />

consumers identifying a key category need<br />

as 'helping to prevent tooth decay'. The<br />

World Dental Federation endorsed the<br />

chewing of EXTRA sugarfree gum, with the<br />

endorsement s ubsequently featured in<br />

advertising.<br />

HISTORY<br />

Modern chewing gum began in the late 1860s when<br />

chicle, a substance from the latex of the sapodilla<br />

tree, was brought to the United States and used as<br />

a chewing gum ingredient. By the eat·ly 1900s, with<br />

improved methods of manufacturing, packaging<br />

and mmketing, chewing gum was well on its way to<br />

its current popularity.<br />

Williatn Wrigley Jr. mrived in Chicago in 1891.<br />

He was 29 years old with unlimited energy and great<br />

talent as a salesman. He statted out selling soap.<br />

As an incenti ve to merchants to carry Wrigley's<br />

soap, he offered them free baking powder.<br />

When baking powder proved to be more<br />

popular than soap, he switched to the<br />

baking powder business. One day, Mr.<br />

Wrigley had the idea to offer merchants<br />

free chewing gum as an incentive to cat-ry<br />

Wrigley's baking powder. Before too long<br />

he had switched again, to the chewing gum<br />

business, launching Wrigley's oldest<br />

brand, Juicy Fruit, in 1893.<br />

The first factory established outside<br />

North America was in <strong>Australia</strong> where a<br />

small factory was set up in Melbourne in<br />

1915. In 1919 the factory was moved to Rosebery,<br />

Sydney and again to a lmger factory in 1958 at<br />

Asquith, Sydney where it continues today to<br />

produce quality Wrigley chewing gums.<br />

THE PRODUCT<br />

Wrigley's EXTRA sugarfree<br />

products deliver a wide range of<br />

great tasting confectionery that at·e<br />

good for teeth. EXTRA products<br />

help keep teeth clean, white and<br />

strong and at·e highly regat·ded for<br />

their great taste and long-lasting<br />

flavours. Whilst the EXTRA brand<br />

has been known as a chewing gum<br />

brand, the brand has successfully<br />

extended into sugatfree Drops.<br />

EXTRA sugatfree chewing gum<br />

is available in pellets and tabs, singles and<br />

multipacks in a range of flavours including<br />

Spemmint, Peppermint, Sweet Mint, Peach and two<br />

children's vat·iants: Classic Bubblegum and Berry.<br />

EXTRA sugatfree Drops at·e a refreshing tasting<br />

sweet that a~·e good for teeth. They at·e available in<br />

a flip-top box in three flavours ; Wild Berry, Wild<br />

Mint and Lemon. EXTRA Drops contain no sugm<br />

so they me the low guilt alternative to traditional<br />

sweets.<br />

In late 2002 Wrigley felt it was time for a new 'brand<br />

presenter' for the EXTRA brand and Olympic Gold<br />

Medalist aerial-skier Alisa Catnplin was the perfect<br />

fit. A lisa displays well-suited qualities for the brand<br />

-as a wholesome, healthy, friendly,<br />

fresh athlete.<br />

The Alisa Camplin campaign<br />

began in 2003 with a television<br />

commercial for the EXTRA brand.<br />

Proving a success, Alisa's role as<br />

the face of EXTRA products was<br />

quickly extended across the range<br />

to EXTRA White and EXTRA for<br />

Kids in 2003 and for EXTRA<br />

Professional and EXTRA Drops in<br />

2004.<br />

Alisa has proved to be a huge success for<br />

the brand. Her personality and her great smile<br />

reinforce the comprehension of the dental<br />

benefits.<br />

PROMOTION<br />

EXTRA gum was launched with advertising<br />

support featuring Wimbledon champion Liz<br />

Smylie, comprising a total of four TV<br />

executions between 1987 and 1992. Liz Smylie<br />

was a personality with a perfect match to a<br />

female-skew tmget audience concerned with<br />

weight, appeat·ance and health. She correlated<br />

with the personality of the brand; healthy,<br />

wholesome, confident and contemporary.<br />

What's more, she has a great smile!<br />

In the six yeat·s from 1987 to 1992 Wrigley<br />

invested approximately $7 million in<br />

advettising the EXTRA brand, and by 1991<br />

the brand had grown to 35 per cent of the<br />

total chewing gum mat·ket.<br />

The Liz Smylie campaign was highly<br />

successful in generating awat·eness of the<br />

brand, and registering the brand's positioning.<br />

From 1992 television advertising for the<br />

EXTRA brand shifted focus to the Dental Cme<br />

message. Using the now well-known graphic<br />

representation of a pH curve, the<br />

communication illustrates how chewing EXTRA<br />

helps neutralise plaque acids after eating to cme<br />

for teeth.<br />

BRAND VALUES<br />

The core 'EXTRA' brand values at·e encapsulated<br />

in the statement 'EXTRA. Cat·e for Healthy Teeth'.<br />

EXTRA products, in all forms, have dental cat·e<br />

central to its promise. The entire range is sugatfree<br />

and the action of saliva stimulation acts not only to<br />

balance plaque acids and thus help to prevent<br />

cavities, but remineralisation actually strengthens<br />

teeth too. So whichever vmiety of EXTRA products<br />

you choose, you can be sure it's taking care of<br />

your teeth.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

GUM<br />

0 The Ancient Greeks chewed resin from<br />

the bat·k of the mastic tree.<br />

0 Modern gum was developed in the US<br />

in the 1800s when two brothers, Henry<br />

and Frank Fleer, experimented with<br />

chicle, the sticky substance found in<br />

the sapodilla tree. Hemy called his<br />

invention chiclets, while Frank<br />

produced his Blibber Blubber Bubble<br />

Gwn<br />

0 To grow all the mint Wtigley needs for<br />

its mint-flavoured gums would take<br />

more than 30,000 football fields.<br />

0 Reseat·chers have found that the act of<br />

chewing improves short and long-term<br />

memory by up to 35 per cent.<br />

0 Americat1s chew more gum per capita<br />

than anyone else - more than 170<br />

sticks of gum each per yeat·.<br />

0 The EXTRA brand has grown to<br />

become the lat·gest non-chocolate<br />

confectionery brand in <strong>Australia</strong>.<br />

51


Yellow Pages<br />

THE MARKET<br />

In today' s marketplace we are swamped with choice.<br />

There are more products and services than ever<br />

before. There are countless brands, countless<br />

places to get them and numerous ways to find, to<br />

compare and to wind up thoroughly confused.<br />

New technology has also broadened the market<br />

for information. For instance, internet search<br />

engines allow you to search for anything, anywhere<br />

in the world. Where once printed directories owned<br />

the informati on marketplace - today on line,<br />

telephony and printed media are all competing.<br />

Muhanunad Ali once said: "Wisdom is knowing<br />

when you can't be wise." It would not be wise to<br />

sort through all of today's information clutter and<br />

that is why the Yellow Pages® directory exists. It is<br />

there to help you find things quickly by bringing<br />

together buyers and sellers. The Yellow Page:@<br />

brand is made up of directory, online and voice<br />

products to reflect the different information<br />

channels people use. Now you can find<br />

the products and services<br />

you are looking for<br />

wherever you are,<br />

whenever you want.<br />

ACHIEVEMENTS<br />

the smallest country towns.<br />

Inside the Yellow PageSID<br />

directory there are over 2,500<br />

classified headings.<br />

This translates to<br />

more than 57,500<br />

individual pages<br />

of advertising<br />

which, when printed,<br />

become 21 billion<br />

pages, bound and<br />

delivered as over 15 million<br />

directories 2 - that's one directory to<br />

almost every home and business in <strong>Australia</strong>.<br />

The Yellow Pages® brand is popular. Research<br />

shows that 73% of consumers surveyed between<br />

the ages of 18 and 64 in <strong>Australia</strong>n metropolitan<br />

directory markets used<br />

the Yellow PageSID<br />

directory in the month<br />

preceding the research. 3<br />

Furthermore, the<br />

yellowpages.com.au site<br />

is <strong>Australia</strong>'s most<br />

visited online business<br />

directory4 with over 1.4<br />

million unique users<br />

visiting the site each<br />

month. 5<br />

Sensis decided to<br />

create the Yellow Pages®<br />

Small Business Index- a<br />

quarterly survey that<br />

measures the c urrent<br />

climate of small business and repmts on projections<br />

for the fmthcoming quarter. In 2000, the Yellow<br />

Pages® Small Business Index was expanded to<br />

include medium businesses, and in 2003 was rebranded<br />

as the Sensis TM Business Index - Small and<br />

Medium Enterprises. Today, the Sensis TM Business<br />

Index is accepted as a leading - and truly<br />

independent - barometer of business opinions for<br />

the SME sector of the <strong>Australia</strong>n economy.<br />

Similarl y, the Ye ll ow Pages:!!) Business ideas<br />

Grants program is one of a number of Sensis<br />

initiatives designed to support <strong>Australia</strong>' s small<br />

and medium enterprises. It is an annual award<br />

program supporting new business ideas at the<br />

concept, product development and business<br />

development stages.<br />

Another service Sensis initiated is the<br />

BookMuncher® Directory Recycling Program to<br />

ensure the responsible environmental management<br />

of old directories. The program enables residents<br />

and businesses to recycle their old White Pages®<br />

and Yellow Pages®directories through established<br />

council kerbside and commercial paper recycling<br />

collections. In 2002, a record 66 per cent of old<br />

directories were recycled through the program into<br />

e nvironmentall y friendly products such as<br />

cardboard packaging, kitty litter and housing<br />

insulation. 6<br />

HISTORY<br />

The world's first telephone directory was published<br />

in Connecticut in 1878, only two years after Mr Bell<br />

made the first telephone call. As telephone usage<br />

began to grow and spread, naturally so did the<br />

140


I<br />

directories. In some cities, what began as a humble<br />

sheet of paper soon required two comprehensive<br />

volumes.<br />

The directory that became the Yellow Page:@<br />

directory officially began in 1924, except that back<br />

then it was actually pink. And all 40 pages were<br />

neatly contained within the standard telephone<br />

book. The first fully classified directories were<br />

launched in 1935 in Sydney and Melbourne. But it<br />

wasn't until 1975 that the colour of the directory<br />

was changed from pink to yellow, primarily because<br />

of a worldwide shortage of pink paper. Yellow was<br />

also the colour recognised internationally for<br />

classified telephone directories. 7<br />

The Yellow Page®OnLine site-the first online<br />

Yellow Pages® directory- was launched in 1994.<br />

New applications for the directory product did not<br />

cease there and the voice directory service, 'Hello<br />

Ye llow', was launched in 1993 and it was renamed<br />

as the Yellow Pages:!D Direct service in 1997. This<br />

product was enhanced and relaunched at the end<br />

of 2000 as the Ye llow Pages:!!) Connect service.<br />

THE PRODUCT<br />

The pace of life is getting faster and faster and as<br />

we become more time poor, new technology<br />

channels are attempting to provide us with more<br />

efficient ways of communicating and obtaining<br />

information. For example, over l 0 million people,<br />

aged 14 years and over, own or use a mobile phone. 8<br />

In addition, over 82 per cent 9 of all <strong>Australia</strong>n<br />

businesses and 61 per cent 10 of all <strong>Australia</strong>n<br />

households are connected to the Internet.<br />

Despite all this change, people want to retain a<br />

sense of stability, they seek direction fro m trusted,<br />

familiar brands. In this context, the Yellow Page®<br />

directory remains <strong>Australia</strong>' s most trustworthy and<br />

reliable business directory. 11 In addition, the Yellow<br />

Pages® delivery channels have adapted to suit<br />

changed conditions.<br />

The metropolitan directory sti ll represents the<br />

foundation of the Yellow Pages® brand. The Yellow<br />

Pages® brand also extends to Yellow Page:@<br />

regional directories which cover the nonmetropolitan<br />

areas of <strong>Australia</strong>, acting as an<br />

information source and buying guide for regional<br />

areas throughout <strong>Australia</strong>. Sensis also produces<br />

localised Yellow Pages® directories for 22 selected<br />

markets in Brisbane, Sydney and Melbourne with<br />

an extra two local directories in Adelaide and Pe1th<br />

being launched in 2004. The Yellow Pages® local<br />

directories are smaller and more compact than the<br />

normal directories making them easier to handle.<br />

They contain li stings of local businesses, street<br />

maps and information pages relevant to their local<br />

community.<br />

As consumers and adve1tisers are increasingly<br />

using the Internet, there is an oppoltlmity to direct<br />

users toward the Yellow Pages:!DOnLine site. There<br />

are already over 1.4 million unique users who visit<br />

the yellowpages.com.au site each month. 12 The site<br />

enables consumers to locate and profile businesses<br />

24 hours a day, 7 days a week.<br />

Finally, the Yellow Pages:!D Connect service<br />

places the entire Yellow Pages® directory database<br />

a single phone call away. The Ye ll ow Page:@<br />

Connect service is the only 'live' service featuring<br />

the Yellow Pages® directory listings, with access<br />

to 1.8 million businesses <strong>Australia</strong>-wide and with<br />

the ability to directly connect customers with most<br />

of them on the spot. This national dial-up directory<br />

service currently provides approximately 112,000<br />

refeiTals each week. 13 Watch this space as the Yellow<br />

Pages® Connect service is developed further to<br />

offer even more information options over the phone.<br />

Find pawnbrokers at<br />

yellowpages.com.au<br />

PROMOTION<br />

The Yellow Pages® brand is one of <strong>Australia</strong>'s most<br />

loved and memorable brands. Research has shown<br />

that the Yellow Pages® brand is considered reliable,<br />

trustworthy and knowledgeable. 14 Due to the<br />

inherent natme of information giving, the Yellow<br />

Pages® brand risks being seen as dull and boring,<br />

dry and factual. The role of advertising is to<br />

counter-balance this by using humour to build the<br />

brand personality and engage the audience. Each<br />

ad has helped to make the brand more likeable and<br />

more human. The characters in the ads are not<br />

pe1fect and this enables us to relate to them and in<br />

a sense, laugh at ourselves.<br />

Many <strong>Australia</strong>ns fondly recall consistently<br />

humorous and creatively outstanding Yellow<br />

Pages® ads. Over the years, the Yellow Page:@<br />

brand has won many prestigious <strong>Australia</strong>n and<br />

International creative awards. These include 8<br />

awards at the Cannes International Advertising<br />

Festival, an achievement unprecedented in<br />

<strong>Australia</strong>n adve1tising history. The Yellow Page®<br />

brand has also been a dominant outdoor advertiser<br />

in the past few years. Executions promoting the<br />

headings in the Yellow Pages® directmy and Yellow<br />

Pages® OnLine service have illustrated innovative<br />

use of the medium with campaigns recognised at<br />

Cannes, the New York Festival and other award<br />

shows.<br />

It all began with the Goggomobile ad promoting<br />

the directory. Its popularity with consumers was<br />

overwhelming, with "G-0 -G-G-0" becoming part<br />

of everyday language. For many years the directory<br />

ads were the face of the Yellow Pages® brand.<br />

Favomites include: Danny ripping up the Yellow<br />

Pages® directory while packing to move; the man<br />

in his dinner suit standing under a leaking sprinkler;<br />

and the man who uses the Yellow Pages® directmy<br />

to stop his broken-down ute rolling backwards<br />

down the hill.<br />

Perhaps the most famous Yellow Pages® ad was<br />

"Not Happy, Jan", the commercial was so popular<br />

that the phrase became pmt of the vernacular. The<br />

campaign's effectiveness was recognised in the<br />

Advertising Federation of <strong>Australia</strong>'s Effectiveness<br />

Awards in 2003 where it was a finalist.<br />

Two recentconunercials include 'Skip' and 'Dog'.<br />

'Skip' shows a man who has hired a skip for his redecorating<br />

rubbish and who later discovers that<br />

hi s neighbours are making full use of it. After<br />

consulting the Yellow Pages® directmy, late one<br />

night he puts an end to this freeloading by<br />

installing a high-powered security floodlight<br />

system.<br />

In 'Dog' , we see a man and his dog taking their<br />

daily walk m·ound the suburbs. As pmt of this<br />

everyday ritual our canine friend has made a habit<br />

of defecating on one of his nei ghbour's pristine<br />

lawns. After many clean-ups the lawn owner spots<br />

the perpetrator and consults the Yellow Page@<br />

directory to find an appropriate deterrent- a remote<br />

activated sprinkler system.<br />

The follow-up campaign to 'Not Happy, Jan'<br />

explores the ridiculous lengths people go to when<br />

trying to remind themselves to do things. It includes<br />

a woman leaving herself a number of phone<br />

messages to remind herself to pl ace her ad in the<br />

Yellow Pages® directory. Another commercial<br />

features an overly confident businessman, who<br />

walks through a door and a Yellow Pages® directory<br />

fall s onto his head as a reminder to book his<br />

advertising.<br />

BRAND VALUES<br />

The overwhelming fondness that users feel for the<br />

Yellow Pages® brand is reflected in the array of<br />

attributes that they readily associate with the brand.<br />

Consumers see it as helpful, genuine, and downto-emth.15<br />

For millions of <strong>Australia</strong>ns, the vm·ious<br />

Yellow Pages® products m·e the first place they<br />

look when they need anything. In short, it's a brand<br />

they rely on and trust. 16<br />

I f,.,ol«l) p,"fo, A


THE MARKET<br />

When Yoplait was launched into the <strong>Australia</strong>n<br />

market in 1982, annual yogurt consumption was<br />

quite low at 0.9 kilograms per head. The total market<br />

size was only 14,000 tonnes. By 2003, the market<br />

for yogwt had grown to 114,000 tonnes, valued at<br />

$521 million, and consumption per head is more<br />

than six kilograms. Household penetration is 80 per<br />

cent, and is even higher in households with<br />

children.<br />

The strong annual growth that yogurt has<br />

experienced in the years between 1982 and 2003<br />

owes much to Yoplait. It took only six weeks after<br />

its launch for Yoplait to become market leader, and<br />

the brand has been instrumental in driving market<br />

growth by encouraging market segmentation. In<br />

the early 1980s, the yogwt products on the market<br />

were designed to have reasonably broad family<br />

appeal. In 1985, Yoplait was the first to offer a light<br />

yogurt, and in the ensuing years the brand has<br />

continued to meet the lifestyle demands of<br />

consumers, especially in regard to convenience,<br />

health, great taste, flavour and variety.<br />

Key segments of the yogwtmarket now include<br />

Regular, Light, No Fat/Diet, Natural and Probiotic<br />

yogurts with their extra health benefits, and<br />

children's yogwts.<br />

Currently, the highest consumption of yogwt is<br />

by children. It is anticipated that these younger<br />

generations will continue to enjoy yogurt well into<br />

adulthood, fwther growing the market by increasing<br />

penetration and consumption.<br />

<strong>Australia</strong>n adults were not brought up with<br />

yogmt but a large propmtion has incorporated it<br />

into their diet. The main reasons adults eat yogmt<br />

are because it is a healthy,<br />

nutritious, convenient snack<br />

and it tastes good.<br />

Yogwt is largely eaten as a<br />

snack or p3.11 of a meal and is<br />

increasingly eaten as a desse1t<br />

instead of ice cream. Natural<br />

yogurt is often used in<br />

cooking for dips, spreads and<br />

as a more healthy substitute<br />

for cream, coconut cream and<br />

sour cream.<br />

ACHIEVEMENTS<br />

Yoplait offered the first true<br />

national brand of yogurt with<br />

substantial consumer appeal.<br />

Prior to the launch of Yoplait<br />

there was limited choice and a<br />

general focus on full fat and natural yogurt products<br />

with a t3.11 or tangy taste. Yoplait made available a<br />

range of fru ity flavours with innovative packaging<br />

in user-friendly twin packs, and the yogmt market<br />

has never looked back.<br />

The Yoplait brand has been a pioneering force<br />

in the market helping to define the segmentation<br />

through innovative products specially developed<br />

to meet different consumer needs.<br />

In 1984, Yoplait was the first brand to launch a<br />

four pack, while introducing the concept of a v3.l·iety<br />

of flavours in the one pack. A year later, Yoplait<br />

launched its Fresh 'n'Light range (now called Yoplait<br />

Lite), successfully offering consumers a greattasting,<br />

low-fat choice. By 1986, Yoplait multipacks<br />

were the top five national sellers and the launch of<br />

multipack themes, such as Berry Delights in 1987,<br />

continued to encourage growth in this segment.<br />

Yoplait made additional health benefits available<br />

with the launch of the Yoplus brand in 1990, which<br />

incorporated the now well-known probiotic cultures<br />

acidophilus and bitidus. In the S3.lne year Yoplait<br />

launched a Diet yogwt brand specially designed<br />

to meet the needs of weight-conscious consumers.<br />

The introduction of Yoplait Petit Millin in 1991<br />

was an opportunity to provide a healthy snack,<br />

especially for children. Petit Miam was the first<br />

children's fro mage frais on the m3.1·ket and also the<br />

first product to really meet the specific needs of<br />

children. This brand has set the benchmark in kids<br />

nutrition and children's adve1tising in the yogurt<br />

category. Petit Miam. It's French for Yum.<br />

Taking yogurt to even younger consumers,<br />

Yoplait launched Petit Mian1 Baby, a range of<br />

specially-formulated yogurt products for babies<br />

from six months of age. Yoplait provide the only<br />

fresh yogurt formulated especially to meet the<br />

nutritional needs of babies and it comes in a<br />

convenient format for mothers.<br />

To continue the innovation Yoplait launched the<br />

first yogurt in tubes for kids, Go-Gurt. A truly<br />

portable yogurt that kids love to eat on the go and<br />

mums al so love because it is so great for the lunch<br />

box . YoplaitGo-Gwt is specially made for freezing<br />

so it is ideal as a summertime, go-anywhere snack.<br />

In 2003 Go-Gurt was successfully introduced in<br />

popular l OOg tubs, so now kids have more ways to<br />

eat their favourite yogwt.<br />

Fwther brand expansion came with the highly<br />

innovative new brand Yoplait LeRice, a healthy<br />

dairy snack made from a blend of rice and milk with<br />

premium fruit or sauces. Perfect for a quick and<br />

healthy snack LeRice is a popular addition to the<br />

Yoplait brand portfolio.<br />

The latest innovative launch came in 2003 with<br />

Yoplait Optimal which is a delicious probiotic yogwt<br />

drink that has been specially developed for people<br />

with busy lifestyles. Yoplait Optimal has been<br />

specially formulated with a synergistic combination<br />

of active cultures, culture booster and natural<br />

antioxidants from green tea. Yoplait Optimal comes<br />

in a convenient 90ml bottle, is made from all natural<br />

ingredients, is 99 per cent fat-free and has a light<br />

and refreshing taste. Yoplait Optimal. Do one good<br />

deed for your body.<br />

Yoplait has a range of delicious yogurt products<br />

that meet a wide variety of consumer needs, it is a<br />

well reg3.1·ded and trusted brand that has always<br />

taken a market leadership approach by driving<br />

market growth through innovation in both product<br />

and brand communication.<br />

Yoplait. It's Frenchfor<br />

Yogurt.<br />

HISTORY<br />

The story of yogurt<br />

begin s with Middle<br />

Eastern nomads and the<br />

Persians. The first yogurts<br />

were made from the milk of<br />

various animals, concentrated<br />

by heat and<br />

fermented naturally to<br />

produce a s mooth,<br />

delicious product known<br />

the n as 'sour milk' . The<br />

fermentation process in<br />

these predecessors of our<br />

yogurt destroyed u nde-<br />

142


sirable micro-organisms and left the beneficial<br />

lactic acid bacteria which gave the pleasant aroma<br />

and flavour which yogurt lovers appreciate to<br />

this day.<br />

It was believed that the Biblical character<br />

Abraham derived his viri lity and longevity from<br />

yogurt. Some scientists regard modern yogwt, a<br />

blend of nutritious milk and beneficial cultures, as<br />

one effective tool for dealing with many health<br />

problems. Yogurt provides an excellent source of<br />

calcium and other essential nutrients. It is also<br />

suitable for people with lactose intolerance, since<br />

the bacteria which create yogurt use lactose as an<br />

energy source and lower its levels substantially.<br />

Today's consumers enjoy all types of yogurt<br />

not only for health giving benefits but for its texture,<br />

taste, nutritional values, variety and versatility.<br />

THE PRODUCT<br />

The Yoplait brand originated in France and is now<br />

sold in 68 countries. It is the second l3.1·gest fresh<br />

dairy brand in the world. In <strong>Australia</strong>, Yoplait is<br />

manufactured and marketed under li cense to<br />

National Foods Limited, the l3.1·gest supplier to<br />

the supermarket dairy case in <strong>Australia</strong>.<br />

Yoplait has a wide range of yogurt products<br />

that provide consumers with very important<br />

nutrients such as calcium for strong bones,<br />

cultures for a healthy digestive system and a great<br />

selection of delicious fruit v3.1·ieties in smooth and<br />

creamy yogurt that tastes great.<br />

The Yoplait range of products covers the<br />

consumer life span with a product offering that is<br />

relevant for people in every age group. A quick<br />

overview of the range is:<br />

Yoplait Petit Miam Baby is suitable for babies<br />

from 6 months.<br />

Petit Miamis made with the goodness of milk,<br />

real fru it puree and nothing artificial. It<br />

comes in tubes, Little pots and larger<br />

I OOg pots, pe1fect for growing children<br />

and their growing appetites.<br />

Go-Gwt is smooth, cre3.lny, colomful<br />

yogurt for kids on the go. This unique<br />

product comes in tubes and is speciall y<br />

made for freezing so Go-GLut is ideal<br />

for the lunchbox. Made with real fruit<br />

and natural ingredients.<br />

Yoplait Original is thick, creamy<br />

yogurt that is 97 per cent fat-free. A<br />

family favourite that comes in a range<br />

of fruity varieties and pack sizes from<br />

2x200g tubs, Multipacks with 3 different<br />

flavours in 200g tubs and the 1 kilo<br />

packs for larger appetites.<br />

Yoplait Lite is s mooth, creamy<br />

yogurt that is 99 per cent fat-free. This<br />

is the biggest range ofYoplait products<br />

and includes more than 20 flavours.<br />

YoplaitNoFat is cre3.lny, fruity<br />

yogmt that is 99.9 per cent fatfree.<br />

This yogwt is made for those<br />

who are shape conscious and 3.1·e<br />

looking for lower calorie products.<br />

Yoplait Yoplus is natural yogwt<br />

that is mild, thick and creamy and<br />

it has the added goodness of<br />

probiotic cultures, acidophilus,<br />

bifidus and casei, and is high in<br />

calcium.<br />

Yoplait Optimal is a delicious<br />

probiotic yogwt drink that contains<br />

active acidophil us, bitidus and casei<br />

cultures to keep the digestive<br />

system strong and healthy.<br />

Yoplait LeRice is a healthy dairy<br />

snack with a unique and delicious taste<br />

and texture. A rice custard with premium<br />

fruit or sauces that can be eaten straight<br />

from the fridge or heated for a winter<br />

warmup.<br />

RECENT DEVELOPMENTS<br />

Yoplait is constantly introducing new<br />

products to the market and just as<br />

frequently makes improvements to<br />

existing products to meet the<br />

changing needs of <strong>Australia</strong>n<br />

consumers.<br />

For the first time in many years<br />

Petit Miam has had a face lift. With<br />

a ll new pack design featuring<br />

happy, healthy, growing<br />

children . The new<br />

design reflects the<br />

brand position that<br />

encourages children to<br />

grow up big and strong.<br />

Go-GLut now has a big<br />

brother with the recent introduction of<br />

Go-Gurt in tubs. The l OOg tubs will feed<br />

a larger appetite, especially in that allimportant<br />

after school snack time.<br />

Yoplait Lite has recently been relaunched<br />

with a thicker, creamier yogwt<br />

that tastes even better than before. A<br />

new development in the Yoplait range<br />

has been the successful introduction<br />

of dessert-style yogurt flavours. This<br />

first began in 2000 with the really great<br />

Cre3.111y Vanilla yogwt, followed in 200 l<br />

with Cre3.111y Latte, in 2002 with Caramel<br />

and in 2003 with French Cheesecake.<br />

Yoplait Original has always been<br />

0<br />

0<br />

0<br />

0<br />

popular with all members ofthe<br />

family so in an effo1t to please<br />

everyone, a unique new multipack<br />

called Cust3.l·d Craze has<br />

been launched.<br />

The recent launch of Yoplait<br />

Optimal has been the latest in the<br />

long line of product innovations<br />

that Yoplait has brought to<br />

<strong>Australia</strong>n consumers. Yoplait<br />

Optimal is the latest entrant in<br />

the fast-growing probiotic<br />

yogmt drinks market and is set<br />

to drive the market to new<br />

heights.<br />

Yoplait provides consumers<br />

with a wide range of products in<br />

market segments that cater to<br />

babies through to adults 60 and<br />

older.<br />

PROMOTION<br />

The Yoplait brand has always<br />

had strong, consistent<br />

adve1tising that is fun to watch,<br />

supporting the brand and<br />

building brand values. The<br />

commercials have focused on a<br />

French setting with French<br />

people. Yoplait. It 's Frenchfa: ..<br />

mmmm. The unique and<br />

appealing adve1tising has been one of<br />

the reasons for the e3.1·ly overwhelming<br />

and continued success of the Yoplait<br />

brand. Brand awareness has always<br />

been very strong.<br />

Yoplait brand promotional activities<br />

extend beyond TV advertising into<br />

activities that surround the consumer,<br />

such as outdoor event sampling, instore<br />

tastings, billbo3.l·ds, radio and<br />

magazine advettising.<br />

Yoplait utilises a mix of adve1tising<br />

media to ensure the brand message<br />

reaches consumers at v3.l·ious times<br />

in their day, at home, at the train<br />

station, in-store, in the c3.1·, at leisure.<br />

BRAND VALUES<br />

Yoplait has consistently maintained<br />

its brand values of French, Fun and<br />

Family.<br />

THINGS YOU DIDN'T KNOW ABOUT<br />

YO PLAIT<br />

Every year, Yoplait produces enough<br />

tubs of yogmt to stretch from<br />

Melboume to P3.l·is when lined up side<br />

by side.<br />

Yoplait is available in 68 countries<br />

3.1·ound the world.<br />

To make its range of products, Yoplait<br />

uses around 30 million litres of fresh<br />

milk eve1y ye3.1·.<br />

There 3.1·e two trillion live bacteria in<br />

every 200 gr3.111 tub ofYoplait yogmt.<br />

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