FORD.ppt

1、,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 relations

2、hip 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

3、 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 e

4、ntrants,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 ex

5、pensiveyou 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

6、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

7、.,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,Th

8、e 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 Ge

9、rmany 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 Interbanca

10、ri 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 doe

11、s 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

12、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

13、” (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

14、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

15、, 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 manufactu

16、rers 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 F

17、ord 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 t

18、o 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

19、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

20、 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” (K

21、A 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 Sutherla

22、nd,Next,Ford Financial,Strategy summary PositioningMass deals for individuals Card propositionGreat deals for you, instantly SupportSpecific 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 a

23、s 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,VOXPOP

24、S 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 name

25、s 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

26、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 ,Acquisition strategy and modelling,RBS,Advanta,MBNA including training,Peoples Bank,Rete

27、ntion strategy and modelling,Leeds VISA,Marks truly: “360 Degree Branding”,The Brand, you can start to use this information to make your direct communication more timely, morerelevant, and thus more impactful. “When you are close to who you are talking to, there is no need to shout.”,Managing Brands

28、 and Customers,There are 3 routes, in principle, to grow customer equity: “W in, grow or retain? Wheres the largest gain?”,Managing Brands and Customers,Again, there are 3 routes, in principle, to bond with your customers: You can create financial, social, structural bonds - or a combination of thes

29、e. “Loyalty cannot be bought. You must earn it.”,Prisoners,Happy marriages,Distant lovers,Strangers,Emotional Loyalty,Behavioural Loyalty,High,High,Low,Managing Brands and Customers,In short, we help you manage 2 most precious assets, your brand(s) and your customers- thoughout the whole sales cycle

30、- in a holistic way.,Managing Brands and Customers,The worlds strongest, most experienced One-to-One network.,Founded more than 27 years ago, in 72, by David Ogilvy. International expansion started already in the seventies. Present in all major markets by 1980. A network which was built, not bought.

31、,HERITAGE,The worlds strongest, most experienced One-to-One network.,$1.6 billion (US$) in billings 68 offices in 46 countries in 64 cities Ranked #1 network in Europe and Asia/Pacific 11 clients served in 3 or more markets, more than anyone else 14 offices ranked #1 in market, 10 more than next bes

32、t competitor,BASIC FACTS,First global agency to offer interactive services (1984) Largest Interactive Network; present in 34 countries Largest media buyer on Internet ($100mm) 300+ employees worldwide Named one of the Best Agencies by Adweek (99) and Red Herring (98 local deployment, with modificati

33、ons on an exception basis only if truly necessary (e.g. Korea).,I Central coord. Central devp. Central exec. Local implm.,Servicing International Accounts.The 3 most common approaches.,II Central coord. Central devp. Local exec. Local implm.,Servicing International Accounts.The 3 most common approac

34、hes.,American Express Membership Rewards Advertising and Direct Marketing planning and creative concepts done centrally. Each market then tailors its own program, messages and timing to local conditions and implements.,III Central coord. Local devp. Local exec. Local implm.,Servicing International A

35、ccounts.The 3 most common approaches.,Nestl FMCG Differential Marketing The agencys central teamin Paris helps plan and monitor direct marketing activity worldwide. They also identify and share best practices. Each market then includes international learning when designing its own programs, which ar

36、e all locally controlled.,5. Relevant Case Histories,Systems Case StudyShell SMART Card Set-up and Launch,Why launch SMART?,Low loyalty in category You buy fuel when the tank is low!,Intense promotional activity by competition Tiger tokens, Premier Points,Threat of supermarkets Before launch 35% sha

37、re in a few years,Expense of large scale paper based (voucher) reward schemes,Higher Profit contribution of non fuel purchases,Recognition of the 80:20 rule,The Concept,Overnight Database Update,Advertising and Promotion,SMART Card Issue,Additional Data,Segmented Communications,L O Y A L T Y,VALUE,P

38、ress TV Take-one,Registration,The Concept (contd),Long term commitment minimum 5 years. Substantial investment $25 million start up! Smart card based secure, redeem at point of sale, concurrent collection of several reward currencies. Extensive redemption opportunities. Expandable to a multitude of

39、additional retailer partners. Generates a database of unparalleled scale, scope and detail.,The Role of Ogilvy,Stage 1 Produce the business requirements specification Produce the functional specification Stage 2 Manage a highly complex tender process Assume role of prime contractor Appoint suppliers

40、,Stage 3 Project manage the development phase Project manage the test plan Oversee quality assurance testing Stage 4 Hand over operational management to Shell,The Role of Ogilvy,Lessons learned,Integration of existing technology is key e.g. Smart cards, Pos terminals, poling system, database Needs p

41、re-registration or heavy early promotion to generate necessary volume of cardholders for early momentum (Shell UK used forced registration of customers from previous short term promotions) Partners help to increase value to customer Prime products must still be seen to be good value, so customers be

42、come less price sensitive, but any price differential, if it becomes too large, will have an impact on loyalty,Lessons learned (contd),Becomes focus for all retail promotional activity, e.g. when offer is in conjunction with supplier (Coca-Cola, Cadburys etc) then promotion should be points related

43、e.g. X points with 6 pack of Coca-cola. When you contact the customer, the customer will contact you - created a Care Line for Smart cardholders - around 20 people to support 4 million cardholders.,An Example of Activation and Retention,VISA Card Analysis,Background,The VISA company Established several years Built up a large base of cardholders via its sales force Over a third of the cardbase were not using the card, whilst others used it occasionally Little knowledge of the demographics of the cardbase and spend levels within the demographic segments.,