September 25, 2014

PANA GMM

HOW TO STRENGTHEN YOUR COMPANY’S DIGITAL CAPABILITY

It is an honor to share in the Organization of my Leaders

Ms. Pauline LaoMy former Manager in P&G Philippines (ex) Media Head

Ms. Christine EugenioMy current Manager in AVON Philils.

Channel Enablement Director

1. What are the different positions, and how does the org chart look like for a digital team?

2. What are the different options for an internal digital team given a brand's objectives and scale?

3. How do you evaluate the effectiveness of a digital campaign?

4. What are the different competencies that need to be developed?

5. When do you decide to outsource digital work?6. What are the different types of suppliers and digital

agencies out there?7. How do you evaluate prospective suppliers and digital

agencies?

Given the time of 30 minutes constraint

Why do I need to build the company’s digital capability?- What are the different positions, and how does the org chart look like for a digital team?- What are the different options for an internal digital team given a brand's objectives and scale?- How do you evaluate the effectiveness of a digital campaign?

What will be the competencies to build?- What are the different competencies that need to be developed?

How do I build or augment (buy) digital capabilities?- When do you decide to outsource digital work?- What are the different types of suppliers and digital agencies out there?- How do you evaluate prospective suppliers and digital agencies?

Why-What-How to Build Digital Capability

HOW TO STRENGTHEN YOUR COMPANY’S DIGITAL CAPABILITY

1WHY

2WHAT

3HOW

WHY Strengthen the Company’s Digital Capability

- What are the different positions, and how does the org chart look like for a digital team?- What are the different options for an internal digital team given a brand's objectives & scale?

- How do you evaluate the effectiveness of a digital campaign?

1

Because its an Industrial Revolution vs. (only) Media shift

Industrial Revolution: 1760-1840This transition included going from hand production methods to machines, new chemical manufacturing and iron production processes, improved efficiency of water power, the increasing use of steam power, and the development of machine tools. It also included the change from wood and other bio-fuels to coal.

Second Industrial Revolution: 1860 - 1920Characterized by the build out of railroads, large scale iron and steel production, widespread use of machinery in manufacturing, greatly increased use of steam power, use of oil, beginning of electricity and by electrical communications.

Adopting to an Industrial Revolution is needed to Survive

Third Industrial or Digital Revolution: 1950-1980Central to this revolution is the mass production and widespread use of digital logic circuits, and its derived technologies, including the computer, digital cellular phone, and the Internet.

Information Age: 1990’s – PresentFormed by capitalizing on the computer microminiaturization advances, with a transition spanning from the advent of the personal computer to the Internet's reaching a critical mass in the early 1990s.

This evolution of technology in daily life, as well as of educational life style, the Information Age has allowed rapid global communications and networking to shape modern society.

My daily Life in an Information Age / Digital Revolution

I wake-up in the morning, I grab my mobile phone to check the

time then my calendar, my E-mails, Facebook, Instagram, see if

there are any good Car deals in Sulit.com.ph and randomly Search

the Internet

Then I go to the Living Room and turn-on Cable TV, surf the

Channels for anything interesting then prepare for work. I drive

my car, activate Bluetooth and play music from my phone. When I

arrive at the office, I sync my computer with my mobile devices

then visit several company websites to approve VL/SL’s, Expense

Reports; mandatory online trainings; online meetings; etc.

Why Strengthen your Company’s Digital Capability?

To leverage the efficiency and competitive

advantage that Science & Technology can

provide in the Information Age of the

Digital Revolution which started in 1950’s.

-W

hat a

re th

e di

ffere

nt p

ositi

ons,

and

how

do

es th

e or

g ch

art l

ook

like

for a

dig

ital

team

?And this means Every Department in our Company must think of how to leverage Digital.

Supply Chain – Real Time Inventory System to reduce Product Storage cost; Avoid Over-Supply and Out-of-Stock

HR – Equip employees with Digital skills and tools to make decision making faster, operate with agility & accuracy

Finance – Automate expense report generation with connection of Corporate Credit Cards transactions to Concur (Online financial system)

Marketing – Engaging consumers and customers who are online then understanding how Digital can make their life easier and more convenient

1.W

hat a

re th

e di

ffere

nt p

ositi

ons,

and

ho

w d

oes

the

org

char

t loo

k lik

e fo

r a

digi

tal t

eam

?My recommended Structure for a Digital Team in a company, in a way that it looks across the opportunities in the company

President

Marketing IT Digital

Media / Marketing

Paid / Campaigns

Owned / Website

Social Media / PR

CRM

Earned Media

Sales / eCommerce

Owned

3rd party

Apps & Tools

Online

Offline

HR Sales

The Size of the Internal Digital Team depends on your Company’s Business Goals and Objectives

2. W

hat a

re th

e di

ffere

nt o

ption

s fo

r an

inte

rnal

di

gita

l tea

m g

iven

a b

rand

's o

bjec

tives

and

sc

ale?

Example #1 Procter & Gamblehttp://www.mckinsey.com/insights/consumer_and_retail/inside_p_and_ampgs_digital_revolution

Business Objective

To make P&G the most technologically-enabled business in the world. (P&G Digital Revolution)Business Goals

1. Better Innovation2. Higher Productivity3. Lower Costs4. Promise of Faster Growth

Size of Digital Team: More than 100 Globally under the IT team of its Shared Services Business Unit with a Digital skills integrated across functions and to every employee

The Size of the Internal Digital Team depends on your Company’s Business Goals and Objectives

2. W

hat a

re th

e di

ffere

nt o

ption

s fo

r an

inte

rnal

di

gita

l tea

m g

iven

a b

rand

's o

bjec

tives

and

sc

ale?

Example #2 AVON2013 Annual Report of AVON as shared in its Global website. www.avon.com

Business Focus (1 out of 3)

Expand our Brand and Channel to reach New Customers and Drive Profitable GrowthBusiness Goals

1. Reach New Consumers2. Improved Earnings Opportunity of Representatives3. Drive Profitable Growth

Size of Digital Team: Less than 50 Globally with local Digital Team under Marketing or PR/Communication- Basic: 2 FTE’s – Marketing/Media & PR/Social Media- Advance: 10-20 FTE’s – w/ eCommerce and Apps/Tools

* All Production is outsourced

2. W

hat a

re th

e di

ffere

nt o

ption

s fo

r an

inte

rnal

di

gita

l tea

m g

iven

a b

rand

's o

bjec

tives

and

sc

ale?

- At the very least, have a Digital Champion in the organization to work on your Media/Marketing campaigns then outsource the non-core work of the business like Website production, Content writing, etc.

- For me, the ideal is to have 5 Headcounts and outsource the tactical and technical work

Digital

Media / Marketing

Paid / Campaigns

Owned / Website

Social Media / PR

CRM

Earned Media

Sales / eCommerce

Owned

3rd party

Apps & Tools

Online

Offline

3. H

ow d

o yo

u ev

alua

te th

e eff

ectiv

enes

s of

a d

igita

l cam

paig

n?

OBJECTIVE(Service) HOW WHERE REACH GOAL RESULTS

DRIVE TRIAL amongst Online Shoppers

eCommWebsite ZALORA

XXXXX Zalora

Shoppers

XXXXX Coupons

Sold

ShareSales

Trial RateEfficiencyCost/Trial

Promo Facebook XX Million SEC D’s

XXXXX Coupons

Redeemed

The effectiveness of a Digital campaign must be tied-back to the Business Goals & Objectives

OBJECTIVE(Product) HOW WHERE REACH GOAL RESULTS

Increase Product Consumption amongst Current Users

Educate YouTube XXXXX YT viewers

XXXXX Products

Sold

ShareSales

EfficiencyCost/TrialEducate Company

WebsiteXXXXX

U.VisitorsXXXXX Online

Order

2 WHAT Digital Competencies to Build and Prioritize for the Company

- What are the different competencies that need to be developed?

Slides courtesy of IMMAP IIDM CDM Program

* Digital Marketing Plan

* Digital Media Planning

International Institute of Digital Marketing

Your Digital Champion to be a Certified Digital Marketing

Pay-Per-Click (PPC) across ChannelsRe-Targeting

Real Time Bidding (RTB)Media Planning for a Brand

Copy/Creative Testing

Clickstream AnalyticsDrive-to-Site Analytics

Multivariate TestingCross-Media Analytics

Multi-Channel AttributionE-Mail Analytics

Excel for AnalystsSocial Media Analytics

Content MarketingSocial Media Policy

Social Media AnalyticsSocial Videos

Online Community Management

Twitter for BrandsFacebook for Brands

Designing a Mobile App Mobile App MarketingMobile Ad Networks

Location-Based MarketingMobile VideosMobile Search

Mobile SiteVoice and SMS Marketing

E-CommerceE-CRM

Effective E-mail Marketing

4. W

hat a

re th

e di

ffere

nt c

ompe

tenc

ies

that

nee

d to

be

deve

lope

d?Digital Competencies to Build in the different functions/department of the Company

Media1. Digital Marketing Analytics2. Digital Media Planning3. Social Media Marketing

Brand/Marketing1. Digital Marketing Analytics2. Social Media Marketing3. Mobile Marketing

PR1. Digital Marketing Analytics2. Social Media Marketing

Digital* All Competencies | Certified Digital Marketer

3HOW do I Build or Augment (Buy) the Digital Capabilities of the Company?

- When do you decide to outsource digital work?- What are the different types of suppliers and digital agencies out there?

- How do you evaluate prospective suppliers and digital agencies?

HOW do I Build or Augment (Buy)?

• To Build and Invest?– Business/Digital Strategies– Digital Steward/Champion – All Marketing, Media & PR

to understand the Business, Competitive & Consumer/Customer Landscape Digital Platform then be able to identify the opportunities-to-actions needed to grow the business

FREE Online Training for your Teams

http://www.msa-digitalacademy.com/login/index.php

Understand

1. Digital Terms

2. Website Ads

3. Targeting

4. Ad Exchanges

5. Tracking

6. Video

7. Search

8. Mobile

9. Contextual

Marketing

FREE Online Training for your Teams

https://www.facebook-studio.com/education/index

FREE Online Training for your Teams

https://www.google.com/partners/#p_certifications

ENROLL your Teams at the IIDM-CDM program

http://www.imadigitalmarketer.com/

HOW do I Build or Augment (Buy)?

• To Build and Invest?– Business/Digital Strategies– Digital Steward/Champion – All Marketing, Media & PR

to understand the Business, Competitive & Consumer/Customer Landscape Digital Platform then be able to identify the opportunities-to-actions needed to grow the business

• To Augment / Outsource?– Research & Insighting– Digital Tools– Media Planning/Buying– Technical work– All Digital Production from

website to Mobile Apps, Creative Ads, etc.

– eCommerce operations unless its core business (eg.Sulit, Zalora, Google)

Venus NavaltaIPG Mediabrands CEO

Chito JusiDeputy Managing DirectorUniversal McCann

Agency Example

5. W

hen

do y

ou d

ecid

e to

ou

tsou

rce

digi

tal w

ork?

We outsource work and leverage Agencies for

• Competencies (Technical, Seasonal, Project-Based)

• Approach (Strategy, Marketing Framework, Mindset)

Key Messages

• World’s leading, focused media and digital communications group• We help clients communicate and build relationships with consumers around their products

and brands

• Redefining Media for World’s leading brands• is the leading independent media planning & buying specialist, using media in new ways to

deliver business value to clients (Market leader according to Recma)

• World’s fastest growing media group• Global communications network that unites people and brands through meaningful

connections.• Digital at the core and content run through veins

• Maxus is a global network of local media agenciesOnly media agency emerged in the digital age

• driven by our internal PACE values: Maxus people are passionate, agile, collaborative and entrepreneurial.

• People first, better results• By understanding consumers better than any other agency, we build brand connections that

maximise client growth

• Inspiring people and exceptional results• Ambition to be our clients’ most valued partner• Diversify service without sacrificing quality

DATA SCIENCES

MARKETINGTECHNOLOGY

NEW AGE CONTENT

BUSINESS INTEGRATION

SOCIALMARKETING

5. W

hen

do y

ou d

ecid

e to

ou

tsou

rce

digi

tal w

ork?

We outsource work and leverage Agencies for

• Competencies (Technical, Seasonal, Project-Based)

• Approach (Strategy, Marketing Framework, Mindset)

• Results that yields Sales (vs. Rates/ASF)

• People (w/ Experience and the Best at what they do)

• Efficiency (Incur cost only when there’s work, Reduced FTE)

• Tools (Global tools with scale,

6. W

hat a

re th

e di

ffere

nt ty

pes

of

supp

liers

and

dig

ital a

genc

ies

out t

here

?

Business Integration

SearchMarketing

Digital Performance Optimizer

Social Infusion

Trading & Negotiations

ShopperMarketing

DigitalCommerce

POEOptimization

7. H

ow d

o yo

u ev

alua

te p

rosp

ectiv

e su

pplie

rs a

nd d

igita

l age

ncie

s?Primary Measure of Success is Sales- Trial or More Consumption is secondary - TOM/Recall/Salience is 3rd priority

PAID

OWNED EARNED

SALES

Influence Transaction LoyaltyAwareness

+63 998 549 8123

albet.buddahim@gmail.com

HOW TO STRENGTHEN YOUR COMPANY’S DIGITAL CAPABILITY