John Lewis Direct Marketing proposal

in store online mobile

Direct Marketing and interactive Campaign

The Opportunity

• Summer 2012

• The jubilee year celebration

• The Olympics

• Millions of visitors to the UK

• New Westfield Stratford City shop

• Begin to build a relationship with customers

• Promote new services and products of home section in Westfield Stratford City

Objectives

• Create a database of new/potential customers of 1.1 million that can be used to activate the direct marketing campaign.

• Attract 269,000 new customers during the summer, using the Olympics and other events to activate and drive people to store.

• Activate the existing old (customers) and new database, based on segmentation and targeting parameters to drive people to the John Lewis in Stratford city and buy products from the home section.

Objectives

• Create 5.3£ million of revenue during the summer campaign, while achieving a large updated database of consumers.

• Generate 13.6£ million for the Home section campaign of John Lewis Stratford City.

• Drive total sales of 18.9£ million through the development of these campaigns.

Strategic Approach

• Use John Lewis brand values and aura to connect to current and prospect clients

• This will developed through two connected campaigns.

• Use the Olympics sponsorship as a platform to engage people during the summer and achieve better response rates

Strategic Approach

• Capture their information according to our value parameters

• Create a database of prospect clients

• Activate prospect and previous clients

• Segment customers according to their value

• Get them to know the home products and services

• Increase sales, visits to store and loyalty.

Our Segmentation and Targeting Approach

Score Age(30%)

Social Grade(30%)

Family (20%)

City (10%)

Neighbor

HIGH-300 35-44 AB Married with kids London

Plus extra bonus 50 points

MIDDLE-200

25-35

45-55 C1 Married

Manchester

Edinburgh

Postcode:E2

LOW-100

Less than 25

Over 55

C2Single

Divorced

All of other cities

NONE Less than

18

Our Segmentation and Targeting Approach

ScoreAverage spend

per year(50%)

Number of purchases per year

(30%)

Refer friends(20%)

HIGH-300 More than £500 More than 5 More than 5

MIDDLE-200 From £300-500 From 3 – 5 From 3 – 5

LOW-100 Less than £300 Less than 3 Less than 3

NONE None None None

Our Segmentation and Targeting Approach

High valueLow loyalty

Medium loyaltyHigh value

High valueHigh loyalty

Medium valueMedium loyalty

Medium value High loyalty

Value

Loyalty -

+

+

Creative Approach

Our Targets

UKData fromThe UK

VisitorsOf

Olympics

Data From the

OlympicsJohn

LewisDatabase

UK Based International

John Lewis home

section in Westfield

All Branches of John Lewis

Target: ABC1, 25-55

Target: ABC1, 35-44

Campaign plan

Campaign 1: Inspiring You

Multi channel campaign:

• SMS

• Social media / ads /game (treasure hunt)

• Flyers pre (stores) and during Olympics

• In store ads

• IPads in store to sign up

• Free voucher for signing up of £5

• Enter a prize draw

Inspiring You…

• Based on John Lewis service and values

• Emotional connection

• Builds a relationship with the customer

• Wants to engage them to share their data/tastes

• Directed to three points: web, app and stores

• Supported by brand campaign (done by JL to increase awareness, separately)

In-store Ads

Microsite

Flyer 1

Flyer 2

Social media

• Click to edit Master text styles– Second level– Third level

• Fourth level– Fifth level

Campaign 2: Inspiring Your Home

• Direct mail for new customers

• Direct mail / email combination for old customers depending on loyalty score

• High impact DM with gift and in store promotion

• Ensure high response rates

• John Lewis Home Club app launch for home ideas, services, products and loyalty.

• Show the variety of styles and products for home at John Lewis

• Private event only for high loyalty customers

Inspiring Your Home

• The John Lewis Home Club is a concept that aims to offer people with a busy life an alternative to renovate and improve their home

• It aims to give further awareness to the personalized services of Home design of John Lewis.

• It aims to make people feel they can count on John Lewis for this, and they will have all the help, a wide range of choices and good prices.

Email

Microsite

Direct mail

•–

Response Rate and Conversion Rate

Measuring Results

• The following activities will be developed to ensure high response rates and efficiency:

• SMS: 3 alternatives sent to groups of 1000 people with code to track. RR will be measured and the best will be used.

• Direct mail: 3 types of direct mail will be sent to groups of 1000 customers and they will be measured. The best one will be sent to the whole database.

• Continuous monitoring: campaign sales will be monitored on a weekly basis to ensure targets will be achieved, or to decide on other media support for the campaign.

Budget

ROI and Results

Campaign SalesAvera

geSale

TotalSales

TotalCampaig

n

ACPO

TotalIncome

ROI

Inspiring you campaign sales projection

269,660 £20 £5,393,200 £2,151,60

0 £8 £3,241,600

1.51

Home club campaign – New customers

26,182 £200 £5,236,400 £1,858,89

4 £71 £3,377,506

1.82

Home club campaign – Old customers

41,470 £200 £8,294,000 £2,053,48

0 £50 £6,240,520

3.04

Total Sales £18,923,600

£6,063,974

Campaign Flow

Coursework Group Members

NO Student ID Name

1 13549275 Juan Mejia

2 13471552 Yu-Hsiu Hsu

3 13524090 How-Ting Lee

4 13541088 Nattakan Karison

5 13541040 Farouk Ben Achour