Examination of Witnesses (Questions 640-659)
13 NOVEMBER 2003
MRS CILLA
SNOWBALL, MR
BRUCE HAINES
AND MR
ANDREW BROWN
Q640 Chairman: I am told—and
we have some figures somewhere—that the Lineker campaign
boosted sales of Walker's crisps by millions of packets. I believe
that the estimated total sales of Walker's crisps were 430 million
in 2001 and there was a huge increase as a consequence of this
particular promotion. Surely that is a factor that we ought to
be looking at as a Committee and collectively with your industry.
Mrs Snowball: We are very proud
of the campaign and proud of the success of the campaign, but
the success of the campaign is about getting share growth for
Walker's in a mature market.
Q641 Chairman: So we are back to
the first question I asked you.
Mrs Snowball: Yes.
Q642 Chairman: And you dispute the
conclusion that I came to in that question.
Mrs Snowball: I believe that the
advertising analysis that we have demonstrates that we have contributed
to growth of market share, not overall market consumption growth.
Q643 Dr Naysmith: So the sale of
crisps did not go up at all.
Mrs Snowball: No. Those facts
are absolutely on the record: sales of crisps went up, Walker's
share went up.
Q644 Dr Naysmith: Sales of crisps
went up.
Mrs Snowball: Yes.
Q645 Dr Naysmith: Therefore, you
must have increased the market, therefore more people must have
been eating more crisps.
Mrs Snowball: Walker's share has
increased of the total market. The crisps market overall is growing
at a rate of about 2% year-on-year.
Q646 Dr Naysmith: If you can measure
the increased effect it had on your brand, you must know the effect
it had on the total market for crisps in this country. I am talking
about the time of the campaign that you are claiming success for
in the market share of Walker's crisps. What happened to the total
sales of crisps in this country over that period?
Mrs Snowball: I do not have the
data for the total period of the campaign, but year-on-year—
Q647 Dr Naysmith: No, I am not talking
about that, I am talking about what that campaign did to the market
for crisps in this country.
Mrs Snowball: The market for crisps
is a mature market that is growing at a very small rate year on
year, so it will be around the level of 1 or 2% per year. It will
be in that kind of area. But other manufacturers are contributing
to that growth. Our job is to grow our share within that market.
Q648 Dr Naysmith: Why I am persisting
in trying to get you to recognise or not answer the question at
all, is that during the time of that campaign can you measure
how much effect you had with that campaign?
Mrs Snowball: Yes, we can.
Q649 Dr Naysmith: On Walker's crisps.
Mrs Snowball: Yes, we can.
Q650 Dr Naysmith: What was the increase
during that campaign in total crisp sales? It may have fallen
back again to 1% after that campaign finished.
Mrs Snowball: The data is available
. . . There is a published effectiveness study which we can send
to you.
Dr Naysmith: Because that, for me, is
the question.
Q651 Mr Bradley: Are you saying that
if you had not had the Gary Lineker campaign, the overall growth
in crisp sales would have gone up at the same rate?
Mrs Snowball: Other manufacturers
would have gained share at our expense.
Q652 Mr Bradley: And the increase
in consumption would have gone up at the same rate as without
the Gary Lineker campaign.
Mrs Snowball: I do not know the
answer to that question. It is a hypothetical: What would happen
if we had not done it. We can isolate the advertising effect in
share terms. I do not know what would have happened had we not
done it, but certainly the model we had would suggest that our
competitors would have gained, own label would have gained, at
our expense.
Q653 Jim Dowd: When you say "the
crisp market", do you mean all bagged snacks?
Mrs Snowball: Yes, I do.
Q654 Jim Dowd: Other than Walker's,
given that Walker's own Smith's now (which used to be the other
big manufacturer of crisps)—I also believe they sponsor
Leicester City Football Club, do they not?
Mrs Snowball: They do.
Q655 Jim Dowd: Who play at the Walker
Stadium.
Mrs Snowball: Yes, they do.
Q656 Jim Dowd: —who are the
other big manufacturers?
Mrs Snowball: The other big manufacturers
are KP, Golden Wonder, Proctor and Gamble (Pringles) and own label—that
has a significant share of the market as well—supermarkets'
own brand crisps.
Q657 Jim Dowd: But presumably the
supermarket crisps come from other big manufacturers, do they
not?
Mrs Snowball: A number of manufacturers
will supply them, private label manufacturers.
Q658 John Austin: Including Walker's.
Mrs Snowball: Walkers do not make
private label crisps.
Q659 Mr Burns: I wonder if I could
ask the two practitioners in the field what you regard as the
most important effective media for interesting young people.
Mrs Snowball: Television is the
most effective method of reaching young people in terms of getting
an audience quickly and in volume.
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