EFFIE AWARDS BRIEF OF EFFECTIVENESS
PEUGEOT: 407 Launch Lets talk About Cars Again
Brand Name: PEUGEOT Product Type or Description: Automotive Category for this Entry: Global EFFIE Campaign Title: Lets Talk About Cars Again Agencies: EURO RSCG Worldwide & BETC EURO RSCG Media Agency: MPG Client: PEUGEOT
Top 4 markets (countries) and Dates Campaign Ran in each market France, April 2004 to December 2005 Spain, May 2004 to June 2005 Chile, October 2004 to September 2005\ South Africa, July 2004 to September 2005
Total number of countries in which the campaign ran or is currently running: 72 Total number of regions in which the campaign ran or is currently running: 4 Explain the criteria used to determine your top four markets The campaign ran, or is currently running, in a total of 72 countries across 4 of the 5 regionsthe maximum number for Peugeot, as the brand is not present in North America. These countries represent key sales markets for Peugeot in Europe, Latin America and South Africa: France is the core market for the Peugeot brand. Spain is a crucial and expanding market in Europe where competition among car manufacturers is tough. Chile belongs to key markets in a key region: Latin America South Africa is a challenging country for the brand which only re-entered the market in 1997
Marketing Challenge The M2 car segment (upper middle range class) remains a major segment in the European market; however, it has been gradually eroding over the last five years. In 2002, M2 sales represented 20% of all car sales in Europe (17
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countries) compared to more than 25% in 1998. New car launches have arrested, but not reversed, this decline. The M2 sedan segment has lost much of its appeal to consumers and is losing ground to new car shapes, namely the Multi Purpose Vehicle (MPV) and Sport Utility Vehicle (SUV). Source : DSPG/DPM/EGE To sum it up: the M2 segment used to be a reference for car manufacturers; however it is no longer the segment where things happen. The 407 was not developed by Peugeot to replace the 406, but rather be its successor, and was the first step towards modernizing the range (the new "shark's mouth" front view). During the design and engineering stages of the Peugeot 407, the thinking was always to produce a car that will separate itself from the rest of the models in the segment and be a tribute to the automotive history. Great innovations such as the new front suspension, the AMVAR variable damping system, helped achieve this goal. The 407 was developed to be a reference and a Renaissance within the segment. However there were major obstacles: A generalist brand versus specialist brands Peugeot is a generalist brand that offers a range of vehicles from the B segment (small cars) through to the H segment (luxury sedans). The German brands are specialist brands and the M2 segment is their core and reference segment with models such as the VW Passat, the Audi A4, the BMW 3 Series, and the Mercedes C Class. Peugeot was not a major player in the segment Peugeot has always been present among the 5 top models found in the segment over the last 10 years. While it reached third place in 2000, it has never managed to reach first place. Just before the launch of 407, the 406 fell to 7th place. It is harder these days to be a car lover Societal discussion regarding the car refers more to pollution, traffic jams, and danger on the roads, rather than to the pleasure of driving. The challenge then was to: Position 407 on a par with German sedans Make car lovers proud again Give substance to the Renaissance positioning The brand had to send out a worldwide message able to create a strong identity in the 80 countries where the 407 will be launched. Campaign Objectives In France: Dominate the M2 segment, generate market share leadership for the 407 and become the leader of the segment within the first year, ahead of the two well established French models: Citroen C5 and Renault Laguna Be perceived as innovative and technologically advanced - The two main attributes of the Germans competitors Year 1= April 2004 to December 2005
In Spain: Generate more than 150 sales per day Year 1= May 2004 to June 2005 In Chile: Reclaim number one position in the M2 segment in front of the Subaru Legacy (13.6% versus 14.6% of market share for Peugeot 406 and Subaru Legacy in 2003) Reach and maintain a stable market share of 20% (requiring more than 80 sales per month) Year 1= October 2004 to September 2005 In South Africa: Reach the symbolic 5% market share within the first six months of launching 407 (never reached by 406) Maintain 5% market share throughout 2005 Year 1= July 2004 to September 2005 Target Audience The commercial targets vary across countries but there are many similarities regarding their demographics: They are men aged 40 to 45 years from the upper demographic category and generally owners of the cars from the same segment (62%). They are sensitive to increased social standing and want to affirm their status by taking on responsibilities. But what was important for the launch was not their demographics and what they are today. Important was where they come from and their feeling/attitude at this time. They reached the M2 segment after their 40s and built a real car expertise following 20 years of driving experience of lower segment and/or second hand cars. They are convinced by the aesthetics and dynamic qualities of the M2 cars which embody the automotive nobility. They are faithful to the M2 segment as they dont have access to the upper segment for economic reasons. On top of that, they are reluctant about new car offers (MPVs and SUVs) as they dont fulfill the automotive and social values they are looking for. They are ostracized by all the anti-car dispositions and feel guilty to speak about the car. They dont relate to the segments communication that focuses on the vehicles accessories rather than addressing the real driving pleasure (a taboo). They are all car lovers who have more and more trouble fulfilling their passion in a cultural and social environment with growing hostility. These people are conservative regarding the automotive values and long for a real car. The challenge was to make these people proud to love cars again. Creative Strategy The Peugeot brand central message has always been Pour que lautomobile soit toujours un plaisir (Make sure driving is always a pleasure). The 407 launch and the campaign convey the opportunity to give a new perspective to this brand's central message by personifying it in this product. Peugeot had to present itself as the car manufacturer aimed at car lovers. The creative strategy should help Peugeot in the process of acquiring the status of a specialist brand (BMW, Mercedes) among the general brands (Renault, Ford). The 407 is a real car for really passionate customers.

The strategy lies in asserting product superiority (and making this positioning credible) by making 407 the standardbearer of the automobile revival using a virtually institutional speech about the automobile. The idea is based on a very provocative proposition: Return to traditional values of the car. Reverse the outlook of the market by playing on trend reversal: the return to traditional values of the car. Et si on reparlait automobile (Lets talk about cars again). The creative concept was Playtime is over. In a world where cars look like multi-coloured toys, great fun and entertaining of course, you can all the same prefer a real car: the new Peugeot 407. The creation was international and appealing to everyone. There was no need for any adaptations. Media Strategy The objective is to talk about cars again. This has to become the topic. As this is an urgent and important societal topic, the objective was to be direct and concentrate the media expenditure in delivering the message. Lets talk about cars again was then conceived as a complete communication program and the media strategy contributed to the goal by giving a specific role to each medium used. The TVC had to deliver the core message and to first announce that we can talk about real cars again. The press and magazine advertisements supported the commercial and allowed us to talk about cars again through the 407s technological features and innovations. The internet, direct marketing programs, and events in car dealerships extended the creative concept by using the toy cars featured in the commercial and invited prospects to test drive the vehicle. As 407 offers an achieved driving experience, the communication program had to invite people to talk about cars with full knowledge of the facts. This media strategy allowed the brand to efficiently deliver its message and reach its goal with limited media investments. Media In Year One: FRANCE Television Radio Newspaper Direct Mail Point-of-Purchase Out-of-Home Public Relations Sales Promotion Interactive/Online Other X X X X X X X X X X SPAIN X X X X X X X CHILE X X X X X X SOUTH AFRICA X X X X X
Total Media Expenditures In Year One France $20 to under $40 million Spain $5 to under $10 million
Chile & South Africa Under $500 thousand Over All Years: FRANCE Television Radio Newspaper Direct Mail Point-of-Purchase Out-of-Home Public Relations Sales Promotion Interactive/Online Other X X X X X X X X X X SPAIN X X X X X X X X CHILE X X X X X X SOUTH AFRICA X X X X X
Total Media Expenditures Over All Years France $40 million and over Spain Chile $10 to under $20 million Under $500 thousand

South Africa $500 thousand to under $999 thousand Approximate % of the total media budget of the campaign (over the past three years) spent in: Name of Country FRANCE SPAIN CHILE SOUTH AFRICA % of Media Budget: 1 1
Other Supporting Communications Programs The music featured in the commercial had to be a hit and the agency and music company decided to launch a cross marketing program. This was an opportunity to relaunch the album of the group, The Film with a campaign using images from the Peugeot commercial. The title Can you touch me, thanks to the success of the Peugeot TV commercial and the cross marketing promotion, quickly became a hit. More than CDs were sold. Following this success, the music company timed the release of the album in new markets with the launch of the Peugeot 407 campaign. The album is now sold in more than 10 countries in Europe. After a huge contest ran by the radio The Moove, The Film has been awarded best independent group of 2004. Source: Atmospheriques Evidence of Results FRANCE: Objective: Dominate the M2 segment, generate market share leadership for the 407 and become the leader of the segment within the first year, ahead of the two well established French models: Citroen C5 and Renault Laguna Result: The 407 became the leader of the M2 segment within only three months of the launch in April, 2004. By July 2004, the 407 was at the top of the segment with a market share of 17.34%. Despite new model launches by its competitors, the 407 continues to be the leader of the segment (December 2005) These excellent results in its native market contributed to the 407 becoming the new reference across the European market. From January to June 2005, only six months after its launch, the Peugeot 407 was the leader in Europe (17 countries) in front of all competitors, including the German brands.
Source: PSA sales figures
Objective: Be perceived as innovative and technologically advanced - the two main attributes of the Germans competitors Result: The Peugeot 407 is perceived as innovative and technologically advanced thanks to the campaign. The same research showed further outstanding results in terms of: Recognition (80% versus a standard of 60%), Perfect Attribution (60% versus a standard of 39%) and Liking (80% versus a standard of 73%)

Source: TNS Sofres

SPAIN: Objective: Generate more than 150 sales per day Result: An average of 200 orders per day since the launch in May 2004. Despite supply shortages, 407 reached the top of the M2 segment within only five months of the launch, selling 10,068 units by May 2004. This resulted in a 12% share of the M2 segment in front of its main competitors such as Renault Laguna, Citron C5, Opel Vectra and VW Passat The Direct Marketing and Internet activity generated 3000 test drive orders. The Mailing and E-mailing campaigns generated 7000 registrations on the Peugeot Web Site, and a further 908 test drives.

Due to the launch of the 407, Peugeot achieved an all-time sales record in 2005 and a record growth rate of +8.3%.
CHILE: Objective: Reclaim number one position in the M2 segment in front of the Subaru Legacy Result: In only 18 days of the commercial going to air in October 2004, Peugeot 407 became the unquestionable leader of the M2 segment with 218 sales and 39% of market share, well exceeding the Subaru Legacy (92 sales and 17% of market share) Objective: Reach and maintain a stable market share of 20% Result: Peugeot 407 represented 39% of the segment in October, 29% in November and 26% in December 2004 Sales in the first month (218 sold over 18 days) was an absolute record in Chile and outdid the launches of Mazda 6 in 2002 (18 sales), Honda Accord in 2003 (23 sales) and Subaru Legacy in September 2003 (87 sales) The direct marketing program generated 3000 contacts. Of these, over 500 were current owners of competitors models

Source: ANAC

SOUTH AFRICA: Objective: Reach the symbolic 5% market share within the first six months of launching the 407 Result: The Peugeot 407 was launched in June 2004 and, by July 2004, achieved a 7% share of the M2 sedan market. In August 2004, this objective was more than doubled with an 11.1% share of M2 sedan market Objective: Maintain 5% market share throughout 2005 Result: Since the launch, market share has remained above the 5% line Within the first three months of the launch, 407s sales exceeded the total number of 406s sold in 2003 Within the first six months of the launch, 407s sales exceeded the combined number of 406s sold throughout 2002 and 2003