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,Contents,1.Ourpresentationtoyou2.Thecreativework3.Theteamandthecosts4.OgilvyWorldwideCredentials5.Relevantcasestudies,1.OurPresentationtoYou,TheOpportunity,FordMotorCompanyLaunchacardthatwillprovideincrementalsales,deepencustomerloyalty,anddeveloprelationshipmarketingplatformanddatacollectiontoolTheCardCustomeridentificationTransactiondataforcustomerinsightRewardstoinfluencebehaviourLoyaltytoenablecross-sell,Whatwevedone,1.GMCardlaunch2.KAEresearch3.ResearchInternational4.ConductedUKconsumerresearch5.Takentheideatothekeymarkets6.Goldfishlaunch7.CrashcourseintheFordbrand8.Visitedthedealerships9.Globalbeach10.NextC,TheProblem,Whoneedsanothercardintheirwallet?RationaliseChoiceWhowantsanotherloyaltyscheme?BurdenTimeIsthereroomforanotherplayer?NotpossibleNewentrants,Howvaluableareloyaltycards.?,AlltheMintelresearchwehaveshowsthatloyaltyschemesdonotwork(MarkPrice,MarketingDirector,Waitrose)Weaskedconsumerswhytheywereloyalandtheysaidprice,rangeandservice.Loyaltycardsdidntfeature(VerdictResearch)Theyrevery,veryexpensiveyouhavetochargethecustomerforit(WilliamMorrison,ChairmanMorrison)Wewouldneedtoseesalesupliftof1-1.5%tooffsettheinvestmentintheClubcard(LordMaclaurin,Tesco)Loyaltyisalikeadanceathonwhereeveryonefeelstheymustparticipateandno-onedarestobethefirsttostop(Marketing),Ourconsumerresearchshowsthatshopperswantvaluetoday,notpointstomorrow(Superdrug),TheMarketStatus.,TheUK80cardsin1990.Today-1400.CreditCardspendingdoubled-4years0.5cardsperhead1,500percardDominatedbyBarclaycardandLloyds/TSB,TheMarketStatus.,Loyalty/rewardsschemeshavebecomeincreasinglyimportantnonbankcompetitionwillincreaseasthelikesofSainsburyscardsandotherretailschemestakeoffResearchInternational,1998TheBritishareshowinganevengreaterenthusiasmforplasticNickCobhan,Director,CreditCardResearch,TheMarketStatus.,FranceDominatedbyco-operationandnotcompetitionSlowuptakePrivateissuersmadeinroadsLittledifferentiationLimitedInnovationHighsmartcardpenetrationHighcardusagemarket,TheMarketStatus.,GermanyStrongcashmarket,weakincreditOnly2millioncreditcardsinGermanyBankstructureisfragmentedCardmarketemergingslowlyForeignissuershavingsuccesswiththeyoungeraudienceHighestloyaltyrateincarpurchaseacrossEurope,TheMarketStatus.,ItalyLowpenetrationofcreditanddebitcardsLowestlevelofcardsperheadDominatedbyServiziInterbancari3%revolveMinimuminterestforcreditcardcompaniesTSPpredictSmartcardswillreach200millionby2004,TheMarketStatus.,Spain8.5millioncards2-3timespermonthTopfivebanksdominateHolidaydestinationhasacceleratecardgrowth11.5%revolveLoyaltycardsmakinganimpact.,Wheredoesthatleaveus?,TheEnglishcontinuetoacceptcreditcardsandloyaltyschemesTheFrenchwhododo.TherestareambivalenttocreditandloyaltyTheGermansarelesslikelytorevolvebutmorelikelytobeloyalTheItaliansdontthinkmuchofrevolvingcredit,butaSmartCard?TheSpanisharehappiertorevolveandcouldbetomorrowsloyalistsOnly11%ofEuropeanadultshaveacard,Whoneedsanotherloyaltycard?,“Mypurseisfullofthem”(Mondeodriver)“Youneedtospendafortune”(KAdriver)“Youdontrealisehowmanycardsyouhave”(KADriver)“Thispointssystemgetsonmynerves”(SierraDriver),Youalwaysneedtherightcard?,“Mostcardsdontworkforyouitneedstobeinstant”(GalaxyDriver)“Itneedstobeacardthatrewardsme”(KADriver)“Iftheoffersweregood,Idhaveit”(EscortDriver)“Aslongasatitscoreitwassavingyoumoney”(KADriver),WhatdoestheFordbrandbringtoacard?,Twokeywordshere:FordCardTakingeachinturn,WhatdoesFordbring?,GoldfishfromBritishGasBluefromAmexOrangefromHutchinsonWhampoaInventingabrandisdifferentfrombuildingonone.,Goldfish,AMEXBlue,Orange,TheFordBrand,AcrossEurope,differentindetail,similarincharacter.TrustedHonestHeritageIntegrity(Fordresearchdata),HowdoestheBrandcomparewithitsCompetitor,TheFordBrand,BrandDynamicsPyramid,TheFordBrand,TheFordBrand,MakecarsthataremoreaffordabletobuyCarsthatareinexpensivetoownandoperateDependablemanufacturerswhokeeppromisesArefullofinnovativeideasArewell-respectedmanufacturersOfferfirstclassqualityMakecarsthatyouwouldbeproudtoown,Base:Fordfamiliar(2549),MillwardBrown,15/2-1/8/99,Absolutes%,29,26,15,12,29,11,13,TheFordBrand,MassDealTrendsettingWouldrecommend,TheFordBrandforFinancialServices,BetternameforaFinancialServicebrand,thanitisforcarsinsomepartsofEurope.NogreatsurprisethatFordwouldgetintoit.Goldfarbresearch,TheFordBrand,So,thefinancialservicesproductshavetoofferindividualsthekindofgreatdealtheydexpecttocomefromaglobalcompanythesizeofFord.,TheFordCard,StraightcreditcardnotinterestingWhatcanFordbringtoAPR,AnnualFee?Apartfrompricefighting.LoyaltycardlightbluetouchpaperandretireCheapercarsPetrolInsuranceetcetc.,TheFordCard,Weassumedaname:FordFinancialWeassumedacarddesign:Classyandstylish,butnotflashWeassumedamodelthatsdifferentandveryFord,FordFinancial,ThefirsttrueloyaltycardRewardsyoufromthemomentyougetthecardNopointstobuildupSimple,greatdealsforyouSolongasyouputitonthiscardThefirstsecondcardinyourwalletTobuythingsyoudreallyfeelgoodaboutWherewevedoneadeal,“Rewardingme”,“IfitsjustacreditcardwithaFordlogoonit,forgetit.IfitwasagenuineloyaltycardfromFordthenIdsitdownandthinkaboutit”(GalaxyDriver)“Youshouldgetsomethingforyourloyalty”(KADriver)“Itstheincentivethatcounts”(KADriver),TheRightDeal,“Idontneedflowersandchocolates.Ineedmoneyoffmypetrolorinsurance.Stuffyouactuallyneed”(FiestaDriver)“Youneedrelevantdeals,whereyoucanseeanimmediateeffect”(MondeoDriver),CreativeDirector,RorySutherland,Next,FordFinancial,StrategysummaryPositioningMassdealsforindividualsCardpropositionGreatdealsforyou,instantlySupportSpecificvalueaddedorpricediscountoffersforallholdersoftheFordfinancialcard.,CreativeDirector,NilsAndersson,Next,TheCreativeIdea,Agreatdeal,solongasits,black,VOXPOPS1,“Itsaninstantthing”“Youhavetospendafortunebeforeyouseeanyreward”,Next,VOXPOPS2,“Ihavetospend4000toseeanythingdecentback”“Mostcardsdontworkforyou”,Next,VOXPOPS3,“IfitsgoingtobeacardforForddrivers.givethemagenuinediscount”,Next,VOXPOPS4,“Youneverhaveenoughpointsforwhatyouwant”Idratherhavesomethingstraightaway”,Next,2.TheCreativeWork,ModellingandDataCycle-Year1,Month0,Month3,Month1,Month2,Month4,Month5,Month6,Month9,Month11,Month10,Month8,Month7,CreationofmailingtestmatrixtotestFordnamesandcountryacceptance,Responseandacceptanceprocess,campaignanalysis,Develop-mentoftwo-wayscorecardtoimproveacquisitiontargeting,Roll-outandre-testdifferentsourcelists.Begincollectionoflifestyledataviaweb,BuildactivationmodelsonMonth0to3cardholders,Adjusttwo-wayscorecardtoimproveacquisitionmodelsfromMonth4mailing,plusactivationmodel,Developpredictivemodelsfordifferentcreativetreatmentstobetestedagainst“deals”fromwebvotes,TestMailings,Evaluate,Acquisitionstrategyandmodelling,RBS,Advanta,MBNAincludingtraining,PeoplesBank,Retentionstrategyandmodelling,LeedsVISA,Markstruly:“360DegreeBranding”,TheBrand,youcanstarttousethisinformationtomakeyourdirectcommunicationmoretimely,morerelevant,andthusmoreimpactful.“Whenyouareclosetowhoyouaretalkingto,thereisnoneedtoshout.”,ManagingBrandsandCustomers,Thereare3routes,inprinciple,togrowcustomerequity:“Win,groworretain?Wheresthelargestgain?”,ManagingBrandsandCustomers,Again,thereare3routes,inprinciple,tobondwithyourcustomers:Youcancreatefinancial,social,structuralbonds-oracombinationofthese.“Loyaltycannotbebought.Youmustearnit.”,Prisoners,Happymarriages,Distantlovers,Strangers,EmotionalLoyalty,BehaviouralLoyalty,High,High,Low,ManagingBrandsandCustomers,Inshort,wehelpyoumanage2mostpreciousassets,yourbrand(s)andyourcustomers-thoughoutthewholesalescycle-inaholisticway.,ManagingBrandsandCustomers,Theworldsstrongest,mostexperiencedOne-to-Onenetwork.,Foundedmorethan27yearsago,in72,byDavidOgilvy.Internationalexpansionstartedalreadyintheseventies.Presentinallmajormarketsby1980.Anetworkwhichwasbuilt,notbought.,HERITAGE,Theworldsstrongest,mostexperiencedOne-to-Onenetwork.,$1.6billion(US$)inbillings68officesin46countriesin64citiesRanked#1networkinEuropeandAsia/Pacific11clientsservedin3ormoremarkets,morethananyoneelse14officesranked#1inmarket,10morethannextbestcompetitor,BASICFACTS,Firstglobalagencytoofferinteractiveservices(1984)LargestInteractiveNetwork;presentin34countriesLargestmediabuyeronInternet($100mm)300+employeesworldwideNamedoneoftheBestAgenciesbyAdweek(99)andRedHerring(98localdeployment,withmodificationsonanexceptionbasisonlyiftrulynecessary(e.g.Korea).,ICentralcoord.Centraldevp.Centralexec.Localimplm.,ServicingInternationalAccounts.The3mostcommonapproaches.,IICentralcoord.Centraldevp.Localexec.Localimplm.,ServicingInternationalAccounts.The3mostcommonapproaches.,AmericanExpressMembershipRewardsAdvertisingandDirectMarketingplanningandcreativeconceptsdonecentrally.Eachmarketthentailorsitsownprogram,messagesandtimingtolocalconditionsandimplements.,IIICentralcoord.Localdevp.Localexec.Localimplm.,ServicingInternationalAccounts.The3mostcommonapproaches.,NestlFMCGDifferentialMarketingTheagencyscentralteaminParishelpsplanandmonitordirectmarketingactivityworldwide.Theyalsoidentifyandsharebestpractices.Eachmarketthenincludesinternationallearningwhendesigningitsownprograms,whicharealllocallycontrolled.,5.RelevantCaseHistories,SystemsCaseStudyShellSMARTCardSet-upandLaunch,WhylaunchSMART?,LowloyaltyincategoryYoubuyfuelwhenthetankislow!,IntensepromotionalactivitybycompetitionTigertokens,PremierPoints,ThreatofsupermarketsBeforelaunch35%shareinafewyears,Expenseoflargescalepaperbased(voucher)rewardschemes,HigherProfitcontributionofnonfuelpurchases,Recognitionofthe80:20rule,TheConcept,OvernightDatabaseUpdate,AdvertisingandPromotion,SMARTCardIssue,AdditionalData,SegmentedCommunications,LOYALTY,VALUE,PressTVTake-one,Registration,TheConcept(contd),Longtermcommitmentminimum5years.Substantialinvestment$25millionstartup!Smartcardbasedsecure,redeematpointofsale,concurrentcollectionofseveralrewardcurrencies.Extensiveredemptionopportunities.Expandabletoamultitudeofadditionalretailerpartners.Generatesadatabaseofunparalleledscale,scopeanddetail.,TheRoleofOgilvy,Stage1ProducethebusinessrequirementsspecificationProducethefunctionalspecificationStage2ManageahighlycomplextenderprocessAssumeroleofprimecontractorAppointsuppliers,Stage3ProjectmanagethedevelopmentphaseProjectmanagethetestplanOverseequalityassurancetestingStage4HandoveroperationalmanagementtoShell,TheRoleofOgilvy,Lessonslearned,Integrationofexistingtechnologyiskeye.g.Smartcards,Posterminals,polingsystem,databaseNeedspre-registrationorheavyearlypromotiontogeneratenecessaryvolumeofcardholdersforearlymomentum(ShellUKusedforcedregistrationofcustomersfrompreviousshorttermpromotions)PartnershelptoincreasevaluetocustomerPrimeproductsmuststillbeseentobegoodvalue,socustomersbecomelesspricesensitive,butanypricedifferential,ifitbecomestoolarge,willhaveanimpactonloyalty,Lessonslearned(contd),Becomesfocusforallretailpromotionalactivity,e.g.whenofferisinconjunctionwithsupplier(Coca-Cola,Cadburysetc)thenpromotionshouldbepointsrelatede.g.Xpointswith6packofCoca-cola.Whenyoucontactthecustomer,thecustomerwillcontactyou-createdaCareLineforSmartcardholders-around20peopletosupport4millioncardholders.,AnExampleofActivationandRetention,VISACardAnalysis,Background,TheVISAcompanyEstablishedseveralyearsBuiltupalargebaseofcardholdersviaitssalesforceOverathirdofthecardbasewerenotusingthecard,whilstothersuseditoccasionallyLittleknowledgeofthedemographicsofthecardbaseandspendlevelswithinthedemographicsegments.,B

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