奥美FORD011.ppt

contents,1. our presentation to you 2. the creative work 3. the team and the costs 4. ogilvy worldwide credentials 5. relevant case studies,1. our presentation to you,the opportunity,ford motor company launch a card that will provide incremental sales, deepen customer loyalty, and develop relationship marketing platform and data collection tool the card customer identification transaction data for customer insight rewards to influence behaviour loyalty to enable cross-sell,what weve done,1. gm card launch 2. kae research 3. research international 4. conducted uk consumer research 5. taken the idea to the key markets 6. goldfish launch 7. crash course in the ford brand 8. visited the dealerships 9. globalbeach 10. next c,the problem,who needs another card in their wallet? rationalise choice who wants another loyalty scheme? burden time is there room for another player? not possible new entrants,how valuable are loyalty cards.?,all 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 (william 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 shoppers want value today, not points tomorrow (superdrug),the market status.,the uk 80 cards in 1990. today - 1400. credit card spending doubled - 4 years 0.5 cards per head 1,500 per card dominated by barclaycard and lloyds/tsb,the market status.,loyalty/rewards schemes have become increasingly importantnon bank competition will increase as the likes of sainsburys cards and other retail schemes take off research international, 1998 the british are showing an even greater enthusiasm for plastic nick cobhan, director, credit card research,the market status.,france dominated by co-operation and not competition slow up take private issuers made inroads little differentiation limited innovation high smart card penetration high card usage market,the market status.,germany strong cash market, weak in credit only 2 million credit cards in germany bank structure is fragmented card market emerging slowly foreign issuers having success with the younger audience highest loyalty rate in car purchase across europe,the market status.,italy low penetration of credit and debit cards lowest level of cards per head dominated by servizi interbancari 3% revolve minimum interest for credit card companies tsp predict smartcards will reach 200 million by 2004,the market status.,spain 8.5 million cards 2-3 times per month top five banks dominate holiday 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 schemes the french who do do. the rest are ambivalent to credit and loyalty the germans are less likely to revolve but more likely to be loyal the italians dont think much of revolving credit, but a smart card? the spanish are happier to revolve and could be tomorrows loyalists only 11% of european adults have a card,who needs another 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 to be instant” (galaxy driver) “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: ford card taking each in turn,what does ford bring?,goldfish from british gas blue from amex orange from hutchinson whampoa inventing a brand is different from building on one.,goldfish,amex blue,orange,the ford brand,across europe, different in detail, similar in character. trusted honest heritage integrity (ford research data),how does the brand compare with its competitor,the ford brand,branddynamics pyramid,the ford brand,the ford brand,make cars that are more affordable to buy cars that are inexpensive to own and operate dependable manufacturers who keep promises are full of innovative ideas are well-respected manufacturers offer first class quality make cars that you would be 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,mass deal trendsetting would 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 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 interesting what can ford bring to apr, annual fee? apart from price fighting. loyalty cardlight blue touchpaper and retire cheaper cars petrol insurance etc etc.,the ford card,we assumed a name: ford financial we assumed a card design: classy and stylish, but not flash we assumed a model thats different and very ford,ford financial,the first true loyalty card rewards you from the moment you get the card no points to build up simple, great deals for you so long as you put it on this card the first second card in your wallet to buy things youd really feel good about where weve done a deal,“rewarding me”,“if its just a credit card with a ford logo on it, forget it. if it was a genuine 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 driver) “you need relevant deals, where you can see an immediate effect” (mondeo driver),creative director,rory sutherland,next,ford financial,strategy summary positioning mass deals for individuals card proposition great deals for you, instantly support specific value added or price discount offers for all holders 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 for 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,month 5,month 6,month 9,month 11,month 10,month 8,month 7,creation of mailing test matrix to test ford names and country acceptance,response and acceptance process, campaign analysis,develop- ment of two-way scorecard to improve acquisition targeting,roll-out and re-test different source lists. begin collection of lifestyle data via web,build activation models on month 0 to 3 card holders,adjust two-way scorecard to improve acquisition models from month 4 mailing, plus activation model,develop predictive models for different creative treatments to be tested against “deals” from web votes,test mailings,evaluate & model,roll-out,monitor & adjust,create a segment- ation based on transactional, “deals” and overlaid with lifestyle details,develop roi / ltv prediction models. construct a customer evaluation frame- work,tailor message,profile,financially evaluate,collect via web viewpoint of consumers to their primary make,reiterate viewpoint questions to 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 ford names and country acceptance,test mailings,evaluate & model,roll-out,monitor & adjust,tailor message,profile,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 customers 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 & model,undertake response and conversion analysis investigate key data drivers for response, dependent upon test cell existing customers by loan amount / product, term etc cupid customers by car purchase date / size email address responsive by country all possible interactions between mailing variants will be modelled develop 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,create a segment- ation based on transactional, “deals” and overlaid with lifestyle details,tailor message,profile,financially evaluate,collect via web viewpoint of consumers to their primary make,reiterate viewpoint questions to cardholders,customer segmentation,customer segmentation lifestyle,74% female middle income married / 2 children 5% on email,70% male middle income single 55% on email holidays abroad,1,2,4,3,5,customer segmentation - value data,uses card 3 /month average monthly balance $50 low contact required,1,2,4,3,5,uses card 10+ /month average monthly balance $2,000 takes out “deals” contact intensity high,customer 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,evaluate & model,roll-out,monitor & adjust,develop roi / ltv prediction models. construct a customer evaluation frame- work,tailor message,profile,financially evaluate,acquisition, conversion and retention,acquire,trialist/ conversion,retention / usage,enquire only,dormancy,developing the value model,=,=,+,+,-,=,n,t,n,t,t,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 segment 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 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,demographics regionality activity types budget allocation proximity of competitor brands / pricing existing market share continuous 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,0,100,0,100,0,100,0,100,100,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,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,0,100,0,100,0,100,0,100,100,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,0,100,0,100,0,100,0,100,100,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,0,100,0,100,0,100,0,100,100,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,develop customised digital crm capitalise on cost effective echannel to acquire new customers provide frequent/timely contact shape the future offers collect data to provide insights/segmentation support mass customisation,ecustomers.,new customers collect email addresses with application accept on-line applications print out, sign and return incentivise - lower apr? establish web usage via testing frequent contact demand broking requires high customer contact email is cost effective combine with some tele-response (automated voice response) segment base tailored offers ,home page frame grab from: ,ecustomers.,customer enablement allow customers to determine offers gather insights via web monthly email to cardholders to vote on-line mgm programme advocacy programme,moving to tomorrows world.,integrate with traditional methods direct mail telephone monthly statements latest offers on bills allow non ecustomers to shape the deals drtv? - fcn channel to employees/dealers call centre for voting evolution customer segmentation on line wider partnerships for greater consumer choice on-going card analysis - usage, lifestage,ecommunity,what of the dealer?,are our first sales contact card part of “optimise” package can we give dealers cards? advocates at first, but cut out quick,launch plan,stage 1 - (tier 1 markets) direct mail campaign to fce base - test, evaluate direct mail campaign to ford (cupid) - test evaluate website development email link and customer enablement - test, evaluate production cost for stage 1 development: cus $750,000 stage 2 roll out best practice - continue testing, refining direct mail to selected tier 2 markets - test, evaluate above 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 development,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 strategy define the launch plan manage local teams develop european crm programme to produce the creative work research and refine value proposition meeting set and agreed targets share best practice maximising scales of economy,bergona cuesta,the big five,martin phelps,paul hargreaves,u.k.,france,germany,spain,italy,emmanuelle delaval,steve jeffery,oliver biermann,rainer maab,martina de marzi,manuela bonalumi,guido chiovato,role of the majors,intelligent interpretation local nuances thorough understanding of the local market necessary changes to the creative work and launch plan liase with local client partners,the fourteen others,austria - marcus jablonski,belgium - jean-michel fraylich,finland - petri ojanen,netherlands - rob groot,switzerland - christian ruppaner,portugal - eduardo garcia,czech republic - petr kavalir,norway - ragnar helger,greece - yiannis angelidakis,hungary - andrea peto-dickinson,denmark - ole rydal,ireland - andrew bechgaard,poland - krzysztof jankowski,sweden - urban johansson,local team - minors,utilise current resources role of the minors efficient execution adapt central template translate copy,key cvs,following three years sailing, writing and photographing at southampton university,richard pinder started his career at westland helicopters, enjoying the somerset air and,the westminster intrigue. after learning a thing or two about trading copters for camels,in 1986 he moved to the (politically) quieter climes of grey advertising. there he gained,experience on procter and gamble and mars, working on brands such as fairy, lenor,galaxy, pedigree chum and pantene.,in 1990 he was elected to the board. pitching for and winning allied dunbar and canon,cameras provided an informative and creatively stimulating opportunity in two new,categories.,richard spent his last three years at grey as client services director running both the,account management department and a number of key accounts.,in february 1997 he joined o&m as managing director where he is responsible for most of the agencys clients and the commercial success of the business. richard is married and lives in central london.,richard pinder managing director ogilvy & mather,guy lambert started his career at o&m direct