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1、Contents,1.Our presentation to you2.The creative work3.The team and the costs4.Ogilvy Worldwide Credentials5.Relevant case studies,1.Our Presentation to You,The Opportunity,Ford Motor CompanyLaunch a card that will provide incremental sales,deepen customer loyalty,and develop relationship marketing
2、platform and data collection toolThe CardCustomer identificationTransaction data for customer insightRewards to influence behaviourLoyalty to enable cross-sell,What weve done,1.GM Card launch2.KAE research3.Research International4.Conducted UK consumer research5.Taken the idea to the key markets6.Go
3、ldfish launch7.Crash course in the Ford brand8.Visited the dealerships9.Globalbeach10.Next C,The Problem,Who needs another card in their wallet?Rationalise Choice Who wants another loyalty scheme?BurdenTimeIs there room for another player?Not possibleNew entrants,How valuable are loyalty cards.?,All
4、 the Mintel research we have shows that loyalty schemes do not work(Mark Price,Marketing Director,Waitrose)We asked consumers why they were loyal and they said price,range and service.Loyalty cards didnt feature(Verdict Research)Theyre very,very expensiveyou have to charge the customer for it(Willia
5、m Morrison,Chairman Morrison)We would need to see sales uplift of 1-1.5%to offset the investment in the Clubcard(Lord Maclaurin,Tesco)Loyalty is a like a danceathon where everyone feels they must participate and no-one dares to be the first to stop(Marketing),Our consumer research shows that shopper
6、s want value today,not points tomorrow(Superdrug),The Market Status.,The UK80 cards in 1990.Today-1400.Credit Card spending doubled-4 years0.5 cards per head1,500 per cardDominated by Barclaycard and Lloyds/TSB,The Market Status.,Loyalty/rewards schemes have become increasingly importantnon bank com
7、petition will increase as the likes of Sainsburys cards and other retail schemes take offResearch International,1998The British are showing an even greater enthusiasm for plasticNick Cobhan,Director,Credit Card Research,The Market Status.,FranceDominated by co-operation and not competition Slow up t
8、akePrivate issuers made inroads Little differentiation Limited InnovationHigh smart card penetrationHigh card usage market,The Market Status.,GermanyStrong cash market,weak in credit Only 2 million credit cards in GermanyBank structure is fragmented Card market emerging slowlyForeign issuers having
9、success with the younger audience Highest loyalty rate in car purchase across Europe,The Market Status.,ItalyLow penetration of credit and debit cards Lowest level of cards per headDominated by Servizi Interbancari3%revolveMinimum interest for credit card companiesTSP predict Smartcards will reach 2
10、00 million by 2004,The Market Status.,Spain8.5 million cards2-3 times per monthTop five banks dominateHoliday destination has accelerate card growth 11.5%revolve Loyalty cards making an impact.,Where does that leave us?,The English continue to accept credit cards and loyalty schemesThe French who do
11、 do.The rest are ambivalent to credit and loyaltyThe Germans are less likely to revolve but more likely to be loyalThe Italians dont think much of revolving credit,but a Smart Card?The Spanish are happier to revolve and could be tomorrows loyalistsOnly 11%of European adults have a card,Who needs ano
12、ther loyalty card?,“My purse is full of them”(Mondeo driver)“You need to spend a fortune”(KA driver)“You dont realise how many cards you have”(KA Driver)“This points system gets on my nerves”(Sierra Driver),You always need the right card?,“Most cards dont work for youit needs tobe instant”(Galaxy Dr
13、iver)“It needs to be a card that rewards me”(KA Driver)“If the offers were good,Id have it”(Escort Driver)“As long as at its core it was saving you money”(KA Driver),What does the Ford brand bring to a card?,Two key words here:FordCardTaking each in turn,What does Ford bring?,Goldfish from British G
14、asBlue from AmexOrange from Hutchinson WhampoaInventing a brand is different from building on one.,Goldfish,AMEX Blue,Orange,The Ford Brand,Across Europe,different in detail,similar in character.TrustedHonestHeritageIntegrity(Ford research data),How does the Brand compare with its Competitor,The For
15、d Brand,BrandDynamics Pyramid,The Ford Brand,The Ford Brand,Make cars that are more affordable to buyCars that are inexpensive to own and operateDependable manufacturers who keep promisesAre full of innovative ideasAre well-respected manufacturersOffer first class qualityMake cars that you would be
16、proud to own,Base:Ford familiar(2549),Millward Brown,15/2-1/8/99,Absolutes%,29,26,15,12,29,11,13,The Ford Brand,MassDealTrendsettingWould recommend,The Ford Brand for Financial Services,Better name for a Financial Service brand,than it is for cars in some parts of Europe.No great surprise that Ford
17、would get into it.Goldfarb research,The Ford Brand,So,the financial services products have to offer individuals the kind of great deal theyd expect to come from a global company the size of Ford.,The Ford Card,Straight credit card not interestingWhat can Ford bring to APR,Annual Fee?Apart from price
18、 fighting.Loyalty cardlight blue touchpaper and retireCheaper carsPetrolInsurance etc etc.,The Ford Card,We assumed a name:Ford FinancialWe assumed a card design:Classy and stylish,but not flashWe assumed a model thats different and very Ford,Ford Financial,The first true loyalty cardRewards you fro
19、m the moment you get the cardNo points to build upSimple,great deals for youSo long as you put it on this cardThe first second card in your walletTo buy things youd really feel good aboutWhere weve done a deal,“Rewarding me”,“If its just a credit card with a Ford logo on it,forget it.If it was a gen
20、uine loyalty card from Ford then Id sit down and think about it”(Galaxy Driver)“You should get something for your loyalty”(KA Driver)“Its the incentive that counts”(KA Driver),The Right Deal,“I dont need flowers and chocolates.I need money off my petrol or insurance.Stuff you actually need”(Fiesta D
21、river)“You need relevant deals,where you can see an immediate effect”(Mondeo Driver),Creative Director,Rory Sutherland,Next,Ford Financial,Strategy summaryPositioningMass deals for individualsCard propositionGreat deals for you,instantlySupportSpecific value added or price discountoffers for all hol
22、ders of the Ford financial card.,Creative Director,Nils Andersson,Next,The Creative Idea,A great deal,so long as its,black,VOXPOPS 1,“Its an instant thing”“You have to spend a fortune before you see any reward”,Next,VOXPOPS 2,“I have to spend 4000 to see anything decent back”“Most cards dont work fo
23、r you”,Next,VOXPOPS 3,“If its going to be a card for Ford drivers.give them a genuine discount”,Next,VOXPOPS 4,“You never have enough points for what you want”Id rather have something straight away”,Next,2.The Creative Work,Modelling and Data Cycle-Year 1,Month 0,Month 3,Month 1,Month 2,Month 4,Mont
24、h 5,Month 6,Month 9,Month 11,Month 10,Month 8,Month 7,Creation of mailing test matrix to test Fordnames andcountryacceptance,Response and acceptanceprocess,campaignanalysis,Develop-ment of two-way scorecard to improve acquisitiontargeting,Roll-outand re-test different source lists.Begin collection o
25、f lifestyle data via web,Build activationmodels onMonth 0 to 3card holders,Adjusttwo-wayscorecard to improve acquisition modelsfrom Month 4mailing,plusactivation model,Developpredictivemodels fordifferent creativetreatments to be testedagainst“deals”from web votes,Test Mailings,Evaluate&Model,Roll-o
26、ut,Monitor&Adjust,Create a segment-ation based on transactional,“deals”and overlaid withlifestyle details,Develop ROI/LTV predictionmodels.Construct acustomerevaluationframe-work,Tailor Message,Profile,Financially Evaluate,Collect via webviewpoint of consumersto their primary make,Reiterateviewpoint
27、questionsto cardholders,Modelling and Data Cycle-Year 1,Month 6,Month 0,Month 3,Month 1,Month 2,Month 4,Month 5,Month 9,Month 11,Month 10,Month 8,Month 7,Creation of mailing test matrix to test Fordnames andcountryacceptance,Test Mailings,Evaluate&Model,Roll-out,Monitor&Adjust,Tailor Message,Profile
28、,Financially Evaluate,Test Mailing-(weighted by expected response),Existing Customers 1year*,Existing Customers 1 to 2 years*,Existing Customers 3 years+*,Archived Customers 1year,Archived Customers 2 years+,Archived Customers 3 years+,Cupid Customers 1year*,Cupid Customers 1 to 2 years*,Cupid Custo
29、mers 3 years+*,22k,14k,10k,24k,18k,22k,14k,10k,24k,18k,22k,14k,10k,24k,18k,22k,14k,10k,22k,18k,11k,7k,5k,12k,9k,11k,7k,5k,12k,9k,22k,14k,10k,24k,18k,11k,7k,5k,12k,9k,11k,7k,5k,12k,9k,*lower APR to high$monthly payment customers,*non-Ford Credit customers,Modelling and Data Cycle-Year 1,Evaluate&Mode
30、l,Undertake response and conversion analysisInvestigate key data drivers for response,dependent upon test cellexisting customers by loan amount/product,term etccupid customers by car purchase date/sizeemail address responsiveby countryAll possible interactions between mailing variants will be modell
31、edDevelop two-way scorecard for each country/target audience,Two-way Scorecard,Low,High,Low,High,Response,Conversion,Modelling and Data Cycle-Year 1,Month 0,Month 3,Month 1,Month 2,Month 4,Month 5,Month 6,Month 9,Month 11,Month 10,Month 8,Month 7,Test Mailings,Evaluate&Model,Roll-out,Monitor&Adjust,
32、Create a segment-ation based on transactional,“deals”and overlaid withlifestyle details,Tailor Message,Profile,Financially Evaluate,Collect via webviewpoint of consumersto their primary make,Reiterateviewpointquestionsto cardholders,Customer Segmentation,Customer Segmentation Lifestyle,74%FemaleMidd
33、le IncomeMarried/2 Children5%on Email,70%MaleMiddle IncomeSingle55%on EmailHolidays abroad,1,2,4,3,5,Customer Segmentation-Value Data,Uses card 3/monthAverage monthly balance$50Low contact required,1,2,4,3,5,Uses card 10+/month Average monthly balance$2,000Takes out“deals”Contact Intensity High,Cust
34、omer Segmentation,1,2,4,3,5,Build Predictive Models Across Segments,Customer Segmentation,1,2,4,3,5,Build Predictive Models Within Specific Segments,Modelling and Data Cycle-Year 1,Test Mailings,Month 0,Month 3,Month 1,Month 2,Month 4,Month 5,Month 6,Month 9,Month 11,Month 10,Month 8,Month 7,Evaluat
35、e&Model,Roll-out,Monitor&Adjust,Develop ROI/LTV predictionmodels.Construct acustomerevaluationframe-work,Tailor Message,Profile,Financially Evaluate,Acquisition,Conversion and Retention,Acquire,Trialist/Conversion,Retention/Usage,EnquireOnly,Dormancy,Developing the Value Model,=,=,+,+,-,=,n,t,n,t,t,
36、t,t,t,t,R,T,A,N,Q,N,GV,1,1,),(,),(,p,GV=a given segments Group Value for a given time period,Q=Average volume of purchases per period,N=Number of consumers in group/segment,Developing the Value Model,)U,(,),1,(,),(,),(,e,e,e,e,n,n,C,R,E,C,r,C,T,E,drC,C,A,aC,G,+,-,-,-,+,N-,=(,G=total growth in segmen
37、t portfolio value,a=attraction rate of new customers,expressed as new divided by potential customers,C,n,=number of potential new customers to the company,A(C,n,)=acquisition cost function,N=value of each new customer,d=development rate(increase of value)of remaining customers,E=value of an existing
38、 customer,C,e,=number of existing customer at beginning of the period,T(C,e,)=trialist cost function,r=retention rate of existing customers,(1-r)=switching rate,R(C,e,)=retention cost function,U=utility function of perception of primary make from questionnaire,Modelling Factors,DemographicsRegionali
39、tyActivity TypesBudget allocationProximity of competitor brands/pricingExisting market shareContinuous evaluation and adaptation due to success levels of campaigns,Financial Benefits of Database Names,Value of Database Names,%Contacted,%Response Rate,Usability Function,Indexed ROI on Name,0,100,0,10
40、0,0,100,0,100,100,Indexed Database Value,Value of Database Names,0,100,0,100,0,100,0,100,100,%Contacted,%Response,Usability Function,ROI Index,Value of Database Names,0,100,0,100,0,100,0,100,100,%Contacted,%Response,Usability Function,ROI Index,Value of Database Names,0,100,0,100,0,100,0,100,100,Usa
41、bility Function,ROI Index,%Contacted,%Response,Value of Database Names,0,100,0,100,0,100,0,100,100,Usability Function,ROI Index,%Contacted,%Response,Value of Database Names,0,100,0,100,0,100,0,100,100,Usability Function,ROI Index,%Contacted,%Response,Value of Database Names,0,100,0,100,0,100,0,100,1
42、00,Usability Function,ROI Index,%Contacted,%Response,Value of Database Names,0,100,0,100,0,100,0,100,100,Usability Function,ROI Index,%Contacted,%Response,Value of Database Names,0,100,0,100,0,100,0,100,100,Usability Function,ROI Index,%Contacted,%Response,Value of Database Names,0,100,0,100,0,100,0
43、,100,100,Usability Function,ROI Index,%Contacted,%Response,Value of Database Names,0,100,0,100,0,100,0,100,100,Usability Function,ROI Index,%Contacted,%Response,Example of%Maintained Names,0,100,0,100,0,100,0,100,100,Usability Function,ROI Index,%Contacted,%Response,Interactive,Role of the Web,Devel
44、op customised digital CRMCapitalise on cost effective echannel toacquire new customersprovide frequent/timely contactshape the future offerscollect data to provide insights/segmentationSupport mass customisation,ecustomers.,New CustomersCollect email addresses with applicationAccept on-line applicat
45、ionsprint out,sign and returnincentivise-lower APR?Establish web usage via testingFrequent ContactDemand Broking requires high customer contactemail is cost effectivecombine with some tele-response(Automated Voice Response)Segment baseTailored,Home Page Frame grab from:,ecustomers.,Customer enableme
46、ntallow customers to determine offersgather insights via webmonthly email to cardholders to vote on-lineMGM programmeadvocacy programme,Moving to tomorrows world.,Integrate with traditional methodsdirect mailtelephoneMonthly statementsLatest offers on billsAllow non ecustomers to shape the dealsDRTV
47、?-FCN channel to employees/dealersCall centre for votingEvolutioncustomer segmentation on linewider partnerships for greater consumer choiceon-going card analysis-usage,lifestage,ecommunity,What of the Dealer?,Are our first sales contactCard part of“Optimise”packageCan we give dealers cards?Advocate
48、s at first,but cut out quick,Launch Plan,Stage 1-(Tier 1 markets)Direct mail campaign to FCE base-test,evaluateDirect mail campaign to Ford(Cupid)-test evaluateWebsite developmentemail link and customer enablement-test,evaluate Production cost for Stage 1 development:cUS$750,000Stage 2Roll out best
49、practice-continue testing,refiningDirect mail to selected tier 2 markets-test,evaluateAbove the line outside the base-posters,press,(DR)TV to build consumer household brand,3.The Team and the Costs,Ogilvy capabilities across Europe,Managing the account across Europe,Core Team(UK),Majors,Strategy Dev
50、elopment,Intelligent interpretation,Efficient Execution,Minors,The Core Team,Guy Lambert,Rory Sutherland,Richard Pinder,Nils Andersson,Magnus Wood,Amanda Merrell,Role of the Core Team,Develop the strategyDefine the launch plan Manage local teamsDevelop European CRM programme To produce the creative