Realizing Kodak’s Relationship Marketing Vision QUICKSCAN Results.ppt

1、,Realizing Kodaks Relationship Marketing Vision: QUICKSCAN Results,December 16, 1998,Todays Agenda,Introduction Resource allocation both personnel Program structure Internet 3. RM exemplars are those companies with transactional interaction with customers. These firms have moved beyond just communic

2、ation and are transacting with their customers through relationship marketing.,Best Practices Benchmarks:8 Key Findings,4. All firms report significant ROI or share of wallet gains over time, far in excess of what would have been realized without the adoption of RM 5. A robust marketing database ser

3、ving sometimes hundreds of end-users, is of primary importance to their RM successes 6. Mature RM practitioners have moved beyond communicating “products in search of people” and are anticipating and facilitating “people in search of products”,Best Practices Benchmarks:8 Key Findings,7. Customer par

4、ticipation in “opting-into” their RM program, and letting the customer direct the marketing efforts sent to them. The key to connecting is through the cultivation of enabled and empowered customers. 8. Internet. Most companies are unsure the exact role the Internet will play but agree: It is about t

5、ransacting Vs. publishing It is about encouraging customers to interact with the company,Requirements for Implementing RM,Established marketing vision Quantifiable goals Senior management commitment Centralized database management that records all activity Stakeholder participation,Defined Roles and

6、 Responsibilities Some kind of internal group or “force” that makes the rules: They may also “own” the customer and/or “own” the process Gatekeeper implements/ensures compliance Process for creating contact strategy (who gets what when) Occurs regularly,Requirements for Implementing RM,The QuickScan

7、 Results,Assignment Goals,We proposed using Customer Ownership, OgilvyOnes proprietary strategic approach, to determine the opportunity to increase Kodaks customer equity and return on direct marketing investment with Professional Photographers and their Labs. The first phase of this process include

8、d the QuickScan analysis to examine K-Pros marketing efforts, and to identify a value based segmentation methodology that could be used to devise customer management and messaging strategies,Key Project Contacts,Al Politi Retail Portrait Segment Manager Kodak Professional Division David Lewis Busine

9、ss Research Professional Imaging David Barone Database Marketing Manager - Inside Sales Kodak Professional Division Kevin Rupert Director, WW Marketing Planning, Brand Management,Information Sources,Five relevant database sources of professional photographer and/or lab information CIW Pro-Rewards Pr

10、omise of Excellence VASR Financial databases A number of market research sources of information Nielsen panel data A variety of project focussed surveys Brand equity studies A recent Portra brand tracking study,Information about Photographers,Key Findings Small base of professional photographers (40

11、,000) Kodak has a high market share Small percentage of photographers generate much of the revenue (judgmental observation) Successful photographers go to larger labs (judgmental observation) A comprehensive database of photographers already exists A loyalty program Pro-Rewards is already in place,I

12、mplications Small base ideal for Relationship Marketing Easier to start building and maintaining loyalty Supports argument for differential treatment Easier to target high value photographers through lab databases Valuable starting point for identifying high value customers Solid foundation from whi

13、ch to evolve a successful relationship marketing program,Information about Labs,Key Findings Small base of labs (about 1100) Kodak has a high market share Labs believe that Kodak is in a superior position to help realize growth objectives (judgmental observation) Small percentage of labs generate mu

14、ch of the revenue A comprehensive database of labs already exists,Implications Small base ideal for Relationship marketing Easier to start building and maintaining loyalty Relationship Marketing is easier for the market leader This is critical for Relationship Marketing to be successful Valuable sta

15、rting point for identifying high value customers,Research Limitations,Limitations No segmentation initiated, and therefore no focus on high value segments No information about efficacy of existing programs: little or no data mining performed Lack of co-ordination between individual research studies

16、(Nielsen, brand tracking etc) No data on drivers of behavioral or emotional loyalty for Kodak and competition,Implications Possible wastage of marketing dollars on low value customers Paucity of learnings may make existing programs inefficient Little strategically leveragable information available M

17、akes it difficult to design targeted marketing programs,Database Limitations,Limitations Not easily queryable” Updated at irregular intervals Sales/value information is not available for all records; only available for top customers Overwrite existing information with update Promotional history/camp

18、aign management feature not available,Implications Not practical as an effective marketing database Makes planning and analysis less reliable Implementation of a one-to-one relationship marketing program becomes difficult Historical trend analysis is not possible Essential for measuring efficacy and

19、 ROI of relationship marketing programs,Differential Marketing Analysis,Differential marketing segments consumers on the basis of the amount of profit they are capable of delivering Nielsen data was used in the analysis A panel of 1,413 professional photographers were used for analysis Each of photo

20、grapher was placed into one of 9 segments according to: Overall film usage Percentage of Kodak brand film used,Differential Marketing Analysis,# of Photographers # of Rolls,High (Top 20%),3,240 242,801,Low (50% SOR),3,360 175,396,Medium (50-99% SOR),2,560 201,396,High (100% SOR),Medium (Middle 30%),

21、5,320 181,779,2,840 93,353,4,120 138,125,Low (Bottom 50%),6,440 85,046,4,280 59,839,8,840 98,488,V A L U E,L O Y A L T Y,Differential Marketing Analysis,% of Photographers % of Rolls,High (Top 20%),8.1% 19.0%,Low (50% SOR),5.9% 13.7%,Medium (50-99% SOR),6.4% 15.8%,High (100% SOR),Medium (Middle 30%)

22、,13.2% 14.2%,7.1% 7.3%,10.2% 10.8%,Low (Bottom 50%),16.2% 6.7%,10.7% 4.7%,22.2% 7.7%,V A L U E,L O Y A L T Y,20% of High Value Photographers account for 50% of usage,V A L U E,L O Y A L T Y,Differential Marketing Analysis,A total of 36.2MM rolls are purchased annually by these 40,000 photographers,L

23、ow,High,3,240 6.84 2,111,Low,2,360 4.99 2,113,Medium,2,560 5.73 2,238,High,Medium,5,320 5.14 967,2,840 2.65 934,4,120 3.92 953,6,440 2.40 373,4,280 1.68 394,8,840 2.79 316,# Photographers Rolls per Year (MM) Avg. Rolls/Yr per Photog.,Differential Marketing Analysis,A 15% cell switch will move 2,000

24、photographers Resulting in:-915K more Kodak rolls bought per year; $2.3 million in incremental revenues (assumes $2.50 per roll of film),V A L U E,L O Y A L T Y,Low,High,3,240 6.84 2,111,Low,2,360 4.99 2,113,Medium,2,560 5.73 2,238,High,Medium,5,320 5.14 967,2,840 2.65 934,4,120 3.92 953,6,440 2.40

25、373,4,280 1.68 394,8,840 2.79 316,# Photographers Rolls per Year (MM) Avg. Rolls/Yr per Photog.,15%,15%,15%,15%,QuickScan - Outcome Scenarios,QuickScan for Readiness,Information,Infrastructure,Ready!,Gaps,Complete,Distributed,Integrated,Key Data capture,Review Processes,Key Conclusions,Kodak should

26、progress with the relationship marketing effort Kodak must realign and enhance systems, strategies and resources to take on this task There is a need to go on to the next step of Customer Ownership Planning Is Kodak committed to take on this challenge?,Next Steps: Options,Option I Complete data gath

27、ering & analysis for QuickScan assignment working closely with key players to locate necessary data Option II Finish QuickScan Move on to Phase II of Customer Ownership Planning Option III Undertake in-depth benchmarking engagement focusing on key areas of competency to achieve world class status in

28、 database marketing Deliverables: Strategic Blueprint and Strategic Recommendations Best Practices scorecard,Next Steps: Options,Option IV Maintain current marketing strategy with Professional photographers,Appendices,Consulting Team,Charles DOyly, Group Account Director Charles is Group Account Dir

29、ector for Digital Brands at OgilvyOne. He has business responsibility for GTE, K, Ameritrade, Petersons Publishing, Ford Credit, AIG, Kimberley Clark & eChores. Prior to joining OgilvyOne, Charles was Director of Interactive Research at Yankelovich Partners where he was responsible for publishing st

30、udies on the behaviors and attitudes of the online consumer to help Fortune 500 marketers develop online business strategies. Charles has been a regular speaker at marketing conferences in the US and Europe (Advertising Research Foundation, Newspaper Association of America, Giga). Charles came to th

31、e US in 1994 when hired by Wand Partners, an investment company specializing in information industry investments (Yankelovich Partners was one such investment). At Wand he was involved in evaluating the sales and marketing capabilities of new investments, as well as being a key member of Wands manag

32、ement consulting practice. Charles started his marketing career with Unilever in the UK, working across a range of Personal Healthcare brands. Charles has an MA in Economics from Edinburgh University and a diploma in Accounting & Finance. He is married, lives in New York, and is interested in all sp

33、orts that involving hitting small balls.,Consulting Team,Paula Fedoris, Director of Analytical Services Ms. Fedoris is a recent addition to the OgilvyOne team and brings 13 years experience in database marketing with a specialization in data mining and analysis. Ms. Fedoris will be spearheading the

34、expansion of OgilvyOnes Analytic Services capabilities. The primary mission of Analytic Services is to assist our clients in managing their customers and maximizing their value by developing information which can be used to make better marketing decisions. Specifically, her responsibilities include

35、overseeing the development and completion of targeted marketing solutions for OgilvyOnes clients. These solutions encompass strategic marketing consulting, research, analysis/data-mining and predictive modeling. Ms. Fedoris has experience in employing marketing databases and advanced analytic techni

36、ques in both consumer and business-to-business marketing environments. Ms. Fedoris has worked in a diverse range of industries including: financial services, transportation, information services, insurance and consulting. Prior to joining OgilvyOne, she worked at Epsilon (a subsidiary of American Ex

37、press), Chase Manhattan, American International Group and CSX Corporation. Ms. Fedoris received her B.S. from the Wharton School at the University of Pennsylvania with concentrations in finance and international business.,Consulting Team,Ajit Kaicker, Analytic Consultant Since joining the Analytic S

38、ervices Group at OgilvyOne this year, Ajit has worked with a number of clients including Jaguar Cars, Five Brothers/Lipton, Alamo Car Rental, Ford, and Kodak. Project assignments included an implementation of Ogilvys proprietary QuickScan process, modeling, data-mining, as well as a number of back-e

39、nd campaign analyses. Before joining OgilvyOne, Ajit was a Senior Associate at Bright Sun Consulting in New York where he led the market sciences team for Exxon Corporation. He was also a senior member of the strategy development team on both the Exxon USA and the Samsung Global assignments. Ajit al

40、so has substantial research and analytic experience with other clients such as Pepsi, UNICEF, GM, and Honda from previous positions. Ajit has a MBA and a PhD in Marketing/Statistics from the University of South Carolina, and lives in New Jersey with his wife and (19 month old) daughter.,Trends and C

41、ontext,Society Empowerment of the Individual Enhanced Expectations Communications & Technology Advancements Fragmentation & Change Nationalization & Globalization Business Total Quality/Green pressures Service and Customer focus Global markets/Niche focus Process management,The Role of The Database,

42、Data Collection Uniform, accurate, relevant and validated data Data Management Data organization, structure and manipulation to support users needs and applications Data Analysis Turning data into information - decision support Appropriate segmentation and classification (value, loyalty, lifestage,

43、lifestyle, repertoire, etc.) Understanding the customer, ie answering “who, where, what , when, and how many” types of questions,The Role of The Database,Data Utilization Managing the “mechanics” of Direct Marketing Sampling, sorting, selections, counts and output formats Evaluation Which offers wor

44、k best for which target audiences? How do we best connect w/ customers/prospects? What data is statistically related to response, trial, purchase, repeat Refinement,Hi-Tech,M,A,O,T,D,Hi-Analytic,M,A,O,T,D,Hi-Marketing,M,A,O,T,D,Customer view of transactions not usually available,Hi-Marketing Profile

45、,Database present,Hi-Analytic Profile,Sophisticated database and/or tools,Hi-Tech Profile,Consumer insights are based on general market research and averages Customers may be grouped based on value at one point in time,Models, targeting, but results are not used to improve mktg activities,No/few customer analyses,Investments center on developing communi-cations against broad audiences,Marketing tends to be event oriented,No marketing to value-based customer segments,Best Practices Benchmarks: Volkswagen USA,Centralized database holds and tracks customer information Stakeholde