adMarks - CADM Home · adMarks is printed by ... Gartner Research VP Kimberly Collins said at the Gartner Customer 360 Summit — and far

Reprinted from directmarketingiq.comSee article at bit.ly/1rBPr2p

By Ted Grigg

Editor’s Note: The following is an excerpt from “Strategy & Tactics for Boosting DirectMail Response,” the 122-page

report from Direct Marketing IQ that featuresbest practices from leading direct mail experts.

Nothing causes the creative team more stressthan clients who never seem happy with thecreative work. If you’ve been in this businessfor a while, you know the story only too well.

In spite of brilliant execution and access to top creative talent, multiple revisions serveonly to raise the temperature of the project. In the end, the breakdown destroys trust and respect on both sides of the aisle.

8

2 FROM THE PRESIDENT

3 OVERCOME SILOS WITH INTEGRATED MARKETINGMANAGEMENT

6 TEMPO AWARDS/WINNERS

8 PERIODIC TABLE OF CONTENT MARKETING

9 CADM VOLUNTEER CORPS

10 DM EXPERTS

11 CADM SPONSORS

201 4

4›

adMarks is printed by

Vision Integrated Graphics Tinley Park and Chicago, IL

VOL. 20 • ISSUE NO. 8 • AUGUST ’14

CADM Corporate Partner

Creative teams believe they have great ideasto resolve the problem, while other key players (such as the client) have their ownideas about what the problem is and theirown vision on how to solve it.

How did things get to this point?

Without advance agreement on a well-pre-pared Creative Brief by both the creativegroup and the client, the creative team mustwork in a vacuum. This sets up the creativeproject for failure.

How can you avoid this nightmare? Preparea written Creative Brief — the Missing Linkfor successful creative development.

Whose job is it to make sure there is a con-sensus on the assignment and that all partieshave reasonable expectations of each other?

adMarks

Celebrating CADM SUPERSTARS!

The Missing Link to Successful Direct Marketing

Ted Grigg

CADM Annual Meeting Luncheon

The Place to Connect.Communicate. Grow.Please join us Thursday, August 21st, 2014 atWildfire for the CADM’s 59th Annual Meetingand Luncheon. Meet the 2014–15 Board of Directors, and hear about the State of theCADM, including exciting plans for next year.The luncheon will feature presentations of theNatalie P. Holmes Volunteer of the Year and the Wheelless Mentoring Award. •

What: August 2014 CADM Annual Meeting and Luncheon

When: Thursday, August 21, 201411:30 a.m. Cash Bar & Networking12 p.m. Luncheon and Program

Where: Wildfire Restaurant159 W. Erie St, Chicago

Fee: Member Non-member

Before 8/17 $49 $64After 8/17 $54 $69

To register: Visit www.cadm.org

MEMBERS ★ AWARD WINNERS ★ VOLUNTEERS ★ SPONSORS

FEATURED IN THIS ISSUE!

NewadMarks-Aug2014.qxd:CADMNewadMarks 8/6/14 5:08 PM Page 1

It is almost the end of another program year for CADM — our first as the New CADM! This is an ideal time to recognize all our members who have actively planned, produced and participated in CADM’s manyactivities as we work together to continue building our New CADM.

On pages 9 and 11 you’ll find lists of our CADM Superstars! Congratu-lations and thanks to all of you! Among the Superstars, there are some Leading Lights that I would like to call out for special thanks and acknowledgement:

★ Andy Gold, for her tireless work in making adMarks a great read, and to designer Marilyn Markle, who created the new adMarks look, and edits and produces each issue.

★ Brenda McGowan, for planning and executing three After Hours in the ’Burbs events.Brenda identified the venues, found sponsors to underwrite the events to keep registration fees low, and prepared all the marketing.

★ Randy Hlavac for so many roles, but particularly for spearheading the “New CADM”structure and communications.

★ Brent Carter for initiating and helping to organize the Roundtable Discussions onCADM’s future. (More on the results of these discussions in our next issue of adMarks!)

★ Mickey Alam Khan, for organizing the December Mobile in the Morning event andApril’s Mobile Marketing Day. Mickey planned the programming, arranged for thespeakers, and, through his company, Mobile Marketer, underwrote both events.

★ Tracey Cymbal, for leading the Basic Course Committee. Tracey organized two concurrent Basic Course sessions — one in Chicago and one at Uline’s Wisconsin headquarters. We are in awe of her organizational and leadership abilities!

★ The Vision Team, consisting of Cyndi Greenglass, Randy Hlavac, Ron Jacobs, FrankRoman, (and me) for charting the course and guiding the realization of the “New CADM.”

★ Denise DiSieno, for managing the registration desk, and warmly greeting everyonewith her smile, at CADM events.

★ Frank Ottolino and Digital People, for their long-term, and much valued, sponsorshipof CADM and our activities.

★ Brad Schwab, for his leadership and involvement in so many CADM activities this year.

Brad, with the Tempo Awards Committee, overhauled and updated the entry cate-gories. He and the committee also planned and presented the Tempo Awards Gala.

Brad led the Social Pillar, which sponsored two networking events during the year; andcreated the outline for Roundtable Discussions.

In all his activities, Brad has effectively involved members, colleagues, and graduate students in CADM. In recognition of his ongoing leadership and guidance, we will behonoring Brad with the Wheelless Mentoring Award at the Annual Meeting Luncheon.

★ Jacobs & Clevenger, for our newly designed interactive CADM website, which debuted to much fanfare this spring. The Jacobs & Clevenger design and copywriting team, led byBilly Pyle, gave their time and talent to create a much needed and appreciated new site.

In recognition, Jacobs & Clevenger has been named the 2014 Natalie P. Holmes Volunteer of the Year. The award will be presented at the Annual Meeting Luncheon.

Finally, I thank you, CADM members, for your participation and support of our organiza-tion. I look forward to celebrating with you at the August 21 Annual Meeting Luncheon.

Best regards,

P.S., A huge THANK YOU to our Executive Director, Glenda Sharp, who keeps us all ontrack and organized, and ensures that things happen as scheduled — and with a smile!

2 from thePresident

Susan Kryl

CADM Mission StatementThe Chicago Association of Direct Market-ing serves as the hub for Midwest marketers to network and learn from multidisciplinaryteams in the areas of digital, social, mobile and response marketing.

OFFICERS

President: Susan Kryl, Kryl & Company

Immediate Past President: Frank Roman, Happy As You Decide To Be

DIRECTORSMickey Alam Khan, Mobile Marketer, Mobile Commerce Daily and Luxury Daily

Brent Carter, Restaurant.com

Tracey Cymbal, Sears Studio Services

Randy Hlavac, Market Synergy Inc.

Rich Hagle, Racom Communications

Dasher Lowe, OgilvyOne

adMarks Editorial Committee:

Andy Gold, ASG Direct


Marilyn Markle, MarkleDesign Group

Headquarters Staff:Executive Director: Glenda Berg Sharp, CAE

For a complete contact list of CADM’s volunteer leaders, visit www.cadm.org.

2013–14 Leadership Team

(ISSN# 1083-611X)

(USPS # 13036)

is published monthly except combined issues of december/january and may/june by CADM P.O. Box 578Westmont, Illinois 60559-0578312.849.CADM (2236) www.cadm.org

Periodical postage paid in Oak Brook, Illinois

Postmaster: Send address changes toadMarks c/o CADMP.O. Box 578Westmont, Illinois 60559-0578

Each CADM member receives a copy of adMarks as a member benefit.

© 2014 CADM

All rights reserved.

adMarks

Tweet me @susankryl or email me at [email protected]

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insider Insights 3Overcome Silos With Integrated Marketing Management

Reprinted from dmnews.comSee article at bit.ly/1k8SDDZ

By Ginger Conlon, Editor in Chief

“The number of opportunities to engage customers has rapidly expanded and exploded,”Gartner Research VP Kimberly Collins said atthe Gartner Customer 360 Summit — and farmore so than marketing budgets have. What’smore, few marketers ever “throw things out”;they just add to their ever-expanding marketingmix, Collins says. But many of these channelsare and remain siloed. As a result, customersare often left “confused and unhappy with inconsistent and contradictory messages andtreatment across channels,” she said.

So how can marketers create a more holistic,consistent customer experience? Collins recom-mended adding a new set of Four P’s to themarketing roster:

1. Align People,

2. Automate Processes,

3. Measure and Optimize Performance, and

4. Make Marketing a Profit Center.

Marketing may never have a P&L, she said,but there needs to be insight into how market-ing impacts revenue. (And yes, the old Four Psof marketing — product, price, promotion,and placement — still apply, Collins said.)

1. The first is Executional Processes, or campaign management processes such as in- and outbound marketing, segmentation,and lead management and nurturing. “It’sabout driving that top line,” she said.

2. The second is Operations Processes, or marketing resource management (MRM)processes including planning and financialmanagement and marketing fulfillment. “Saving money here allows marketers to domore of the sexy, innovative things that can differentiate a brand,” Collins said.

3. The third is Analytic Processes such as marketing mix optimization, marketing ROIanalysis, and marketing performance man-agement. Collins noted that there are areasof overlap among the three, like voice of the customer and content marketing.

But where should marketers focus first or emphasize more? Just about every area is hot

This means departmental and channel-basedsilos within marketing need to be aligned andintegrated to create collaborative marketing; in other words, integrated marketing manage-ment, says Collins. There are three processareas within this integration that marketersneed to focus on, she pointed out: 5›

Marketing is [arguably] the most complex

department within an organi-zation today. ”

“


I have found that it is out of the abundance of such knowledge that creative teams are able to generate the highest possible response ratesfrom their work.

As such, the marketer does the homework needed to write the creativestrategy, and the creative team spends at least 50% of its time learningabout the client and his product, customers and past creative efforts thatinform the Creative Brief.

I see the Creative Brief as a meldingof the marketing plan with the creative strategy. Let’s look at thecharacteristics of strong CreativeBriefs, versus weak ones.

Strong Briefs:• Quantify the objective

• Organize the information accurately

• Reveal emotional insights that might lift response

• Respect the overall brand

• Summarize information about the client, the client’s customer and the competitive environment

• Include samples of past winners and losers

• Supplies any available competitive samples

Weak Briefs:• Lack an offer or guidance for developing a strong offer

• Focus on the client’s needs rather than those of the target audience

• Do not provide essential information as needed for the project

• Omit concrete and factual support for the claimed product benefits

• Disregard basic target market information such as mailing list descrip-tions, demographics and any other pertinent customer information

How about the organization of the final document? Creative Briefs cantake on many different and useful formats. But here are the seven essentials of the effective Direct Marketing Creative Brief.

1. State the objectives

2. Describe the customer benefits

3. Define the target audience

4. Discuss the offer

5. Summarize the customer’s perceptions about the advertiser’s product

6. Provide the “givens” and brand requirements

7. Reveal the relevant budgets. •As the owner of DMCG, a direct marketing consultancy based in Dallas,Texas, Ted Grigg brings deep and broad direct marketing experience to hisclients across the country. In the last 25 years, he has spent several hundredmillion dollars for direct marketing clients in all available direct responsemedia. Ted acts as a personal “think-tank” for direct marketing planning and strategy development. He can be reached at [email protected].

4 insider Insights1

› The Missing Link to Successful Direct Marketing (continued)

I believe that job falls primarily on the marketer and not the creative director. Of course, both the marketer and the creative team should collaborate on the written document.

But getting the client’s approval and documenting the creative approachrequires a holistic perspective combining the knowledge of the cus-tomer, the market environment and the offer itself into a unified creativeimplementation plan. The marketer or account manager enjoys a uniqueposition for developing such a document.

Some creative people take exception tothis disciplined approach in favor of rely-ing 100 percent on their intuitive skillswhile spending little time learning moreabout the client, their customers andother seemingly extraneous information.

But undisciplined creative brilliance often depends upon anecdotal assumptions that are often wrong. It’s like paying a skilled bricklayer tobuild a house without an architectural plan or an architect to design anoffice building without detailed input on how the customer intends touse it.

The creative team should have the facts that relate to the customer’s target market, competitive environment, and other inside knowledgethat may not appear to relate directly to the problem at hand.

Should all of these people receive the same mail piece?

ps: and it’s easier and more cost-effective than you think.

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The marketer does the homework neededto write the creative strategy, and the

creative team spends at least 50% of itstime learning about the client…”

“


insider Insights 5

in marketing today, Collins said, so it can bedifficult to prioritize. It comes down to whattype of customer engagement strategy an organization wants, she said. For example, active, or real-time, marketing focuses more on event-triggered marketing, personalization,and contextual marketing. There’s also emo-tional, or customer experience and loyalty marketing, where the goal is to strengthen thecustomer relationship. Another area is rational,or social marketing, which includes crowd-sourcing and online communities. A fourth isethical, or moral, marketing such as affinitymarketing.

Integrated marketing management drivesclosed-loop customer engagement that supportsand helps to blend those areas, she said.

Collins recommended several steps that marketers can take to help make integratedmarketing management a reality. The initialsteps are to start the dialog between marketingand IT, and to assemble a team with partici-pants across the marketing ecosystem and IT

to audit marketing processes and technologiesand identify opportunities. Once those are inplace, appoint a marketing operations director,determine the organization’s customer engage-ment strategy, and then set supporting objec-tives and KPIs.

Additionally, determine which marketingstrategies and processes require automationand set a timeline to implement the neededtools. Finally, develop a flexible integrated marketing management roadmap and a marketing optimization management strategy.

“Marketing is [arguably] the most complex department within an organization today,”Collins said. CMOs are dealing with a compli-cated ecosystem and face a nexus of disruptiveforces, including pervasive access via mobileand circles of influence via social. Integratedmarketing management is what marketingleaders need today to help conquer that com-plexity and deliver on customers’ expectationsfor a consistent and relevant experience.•

As editor-in-chief of Direct Marketing News, Ginger Conlon develops and directs its editorial vision and content strategy. She was recently cited as one ofthe “Top 100 Most Social Cus-tomer Service Pros on Twitter,” by Huffington Post contributorVala Afshar, CMO and CCO at Enterasys Networks. Ginger has contributed toseveral business books, including Capitalizing onthe Voice of the Customer, CyberSelling, andCRM at the Speed of Light. Additionally, she isquoted in two chapters of the recently released Big Data Marketing, by Teradata CMO LisaArthur.

Ginger Conlon

Overcome Silos With Integrated Marketing Management (continued)3

›


6 gold/silver Tempo AwardsCategory Place Title of Entry Company Submitting Advertiser

Integrated Marketing Campaign 1st Country Crock Inspires Casserole Creativity Zocalo Group Unilever–Country Crock Spreads

2nd Chupacasa Aspen Marketing Services American Home Shield

Direct Response Television and Radio 1st St Louis Rams Television Rodgers Townsend DDB St. Louis Rams

2nd Jumping for Joy Rodgers Townsend DDB Weekends Only

Out of Home 1st St Louis Rams Out of Home Rodgers Townsend DDB St. Louis Rams

Branded Web Sites 1st Kenworth & Peterbilt Parts & Service FCB Inc PACCAR

2nd Donald Danforth Plant Science Center Rodgers Townsend DDB Donald Danforth Plant Science Center

Campaign Microsite 1st HUGGIES Triple Mess Manor OglivyOne Huggies Brand

2nd Be A Leader American Bar Association American Bar Association

Online Advertising 1st Torque DigitasLBi Sprint

2nd Wood Cart Rodgers Townsend DDB Outreach International

E-Mail 1st Window to the World Ethernet Rogers Townsend DDB AT&T Education Solutions

2nd Be A Leader American Bar Association American Bar Association

Social Media 1st Turning Low-Interest Candy into a Zocalo Group Werther‘s Original Must-Taste Campaign Sugar-Free

2nd Charles Barkley Joins LinkedIn Social@Oglivy CDWCreating the Ultimate IT Network

Interactive Marketing Campaign 1st Be A Leader American Bar Association American Bar Association

2nd Kenworth & Peterbilt Parts & Service FCB Inc PACCAR

Viral Video Marketing 1st Where Knowledge Thrives Campaign Rogers Townsend DDB Outreach International

2nd My 13 Days Rogers Townsend DDB Enterprise Rent-A-Car

Loyalty/Frequency Marketing 1st MyCokeRewards 20 Millionth Member The Marketing Store Coca-Cola North America

2nd HUGGIES Rewards OglivyOne Huggies Brand

Direct Mail (less than $300/M) 1st Better Place DM Rodgers Townsend DDB AT&T

2nd Black Friday Every Day Jacobs & Clevenger Jacobs & Clevenger

Direct Mail ($300/M or more) 1st Level UP American Bar Association American Bar Association

2nd 20 Years of Lessons Learned Rodgers Townsend DDB AT&T

Dimensional Mailings 1st Imaginations Take Off Rodgers Townsend DDB AT&T

2nd Turning Low-Interest Candy into a Zocalo Group Werther‘s OriginalMust-Taste Campaign Sugar-Free

NonProfit Direct Mail 1st Protect Those Who Cannot Protect Ami Marketing Strengthening Chicago’s Themselves Youth

2nd Introduction to the Concordia Fund Meyer Partners LLC Concordia University

Print Collateral, Non-Mail 1st Verticals Education 3D DM DigitasLBi Sprint

2nd The Black Rep Season Mailer Rodgers Townsend DDB The Black Rep

Print Advertising 1st Fall Forum Rodgers Townsend DDB Rodgers Townsend

2nd Window to the World Ethernet Rodgers Townsend DDB AT&T Education Solutions

Past Presidents’ Award Be A Leader American Bar Association American Bar Association

Jay Gondelman Award Turning Low-Interest Candy into a Zocalo Group Werther‘s OriginalMust-Taste Experience Sugar-Free

Excellence in Print Production Turning Low-Interest Candy into a Zocalo Group Werther‘s OriginalMust-Taste Experience Sugar-Free

For the full list of 2014 Tempo Award Winners, see www.cadm.org

SPECIAL AWARDS


Tempo Awards 7

BE HONORED

THANK YOU TO OUR EVENT SPONSORS

On Thursday, July 17 CADM hosted nearly 70of the Midwest’s top marketing and creativetalent at its annual Tempo Awards Ceremony.TheWit Hotel’s cibo matto space offered amodern and elegant ambiance that was a perfect fit for honoring 2014’s best marketingwork in terms of strategy, creativity and results.The work honored at the event included directmail, print, digital and interactive, and socialmedia.

Brad Schwab, 2014 Tempo Award Chair -person was the night’s emcee/host. Brad congratulated all of the companies who submitted entries, thanked the countless volunteers and judges who help make theaward ceremony happen, and recognized theCADM and Tempo Sponsors — Digital People,FCB, General Marketing Solutions, QuadGraphics, and Umarketing.

The high energy continued with representativesfrom each of the event sponsors presenting the17 category winners from the 95 submissions.The evening was capped off with the presenta-tion of the three Special Awards of the night:

Innovation & Excellence in Print ProductionAward: Andy Gold of ASG Direct and adMarkseditor, presented the award to Zocalo Groupfor their “Turning Low-Interest Candy into aMust-Taste Experience” campaign.

The Jay Gondelman Award (excellence in digital/social/mobile marketing): Tracey Cymbalof Evoke Productions presented the award toZocalo Group, again for their “Turning Low-Interest Candy into a Must-Taste Experience”campaign.

The Past Presidents Award: Frank Ottolinofrom Digital People, a long-time partner ofCADM, presented the night’s best in classaward to the American Bar Association for their “Be A Leader” campaign.

It was a memorable and inspiring night of net-working, good food and celebrating success. Pictures from the gala event are shown here; visit CADM’s Facebook page for more. •Event photos by David Ferris

Tempo Awards Honor Top Marketing Talent

(Top to bottom)TheWit Hotel’s cibo matto room offered an ideal space to showcasewinning entries.

The Zocalo Group took home the Innovation & Excellence in Print Production Award for their Werther’sCandy mailing. The campaign alsoreceived the prestigious Jay Gondel-man Award.

American Bar Association’s “Be ALeader” interactive marketing campaign won the coveted PastPresidents’ Award.

Attendees enjoyed great food andcompany.


8 top Articles

One chief content marketer, Chris Lake ofEconsultancy, drives home the idea of marketing as a science with his Periodic Tableof Content Marketing (see below). Lake is inspired by Russian chemist and inventorDmitri Mendeleev — who created his own version of the periodic table of elements(which most of us remember from high schoolchemistry classes). In his colorful chart, Lakegives us a playful, yet acutely reflective depiction of content marketing in 2014.

Curating and crafting valuable content can beexecuted and measured in a myriad of ways —from the creation of blogs and webcasts tocase studies and polls. Lake indicates in hisseven-step guide to success that marketersmust first determine the strategy, format, content types, and platform, and then quantifythe success of their campaigns through trackingmetrics and mapping goals. Sound likes scienceto me.

Without question, content marketing can bolster brand awareness, advocacy, and ofcourse sales. The Periodic Table of ContentMarketing is a great way for marketers to embrace their craft as an exact science — and have a little fun too. •Natasha Smith is a Senior Editorfor Direct Marketing News andcovers marketing, technology,and social media trends. Shejoined DMN in February 2014.Her journalism experience in-cludes reporting and producing at Cotton Candymagazine, NBC New York, News 12 New Jersey,and CNN in Atlanta.

© Copyright 2014 Direct Marketing News.

Reprinted with permission.

The Periodic Table of Content MarketingReprinted from dmnews.comSee the blog at bit.ly/1tuV5EN

By Natasha D Smith, Senior Editor, DMNews

I think most marketers can agree that the industry is part creative, part technical, and certainly part mathematical with constant track-ing of metrics, KPIs, sales, and other numerics.But I don’t know if most marketers think ofthemselves as scientists. I’d like to challengethat thinking and consider the Merriam-Web-ster dictionary definition of an exact science:science, such as physics, chemistry, or astronomy,whose laws are capable of accurate quantitativeexpression. Although some of marketing is instinctive, the field is arguably evolving moreinto an exact science every day with quantita-tive expressions that can be measured for accu-racy in seemingly every marketing channel —social, email, mobile, display ads, and ofcourse, direct mail.

Source: econsultancy.com


cadm Superstars 9

★ 2013-14 CADM Volunteer Corps ★The officers, members of the Board of Directors, and staff of the Chicago Association of Direct Marketing would like to sincerely thank the following CADM Members for their generous time, energy, and drive to imagine, create, and implement CADM’s extensive Programming.

This last year these dedicated CADM Members envisioned and created 11 Events!

You can see by the participation below, being part of CADM’s Volunteer Corps or Speaker Series will expose you to a broad cross-section ofChicago’s direct marketing community. Join us.

CADM’s Strength is its Membership. CADM’s Strength is YOU!Kelly Abeles, American Dental Association

Mickey Alam Khan, Mobile Marketer

Mary Pat Anders, Midan Marketing

Scott Ballew, A. Eicoff & Co.

Roseanne Bartle, Umarketing

Alexis Berger, Kargo

Lisa Bishop, Gray Television

Josh Blacksmith, FCB

Hunter Bradford, Millenial Media

Michael Bryers, FCB

Thomas Byrne, Byrne Direct Marketing

Brian Camen, Ogilvy

Alex Campbell, Vibes

Brent Carter, Restaurant.com

John Connellan, The Executive Technique

Andy Crestodina, Orbit Media Studios

Tracey Cymbal, Evoke Productions

Joe DeCosmo, Enova International

Bess Dilulio, Umarketing

Gerilyn Difatta

Denise DiSieno, Packaging Printing Specialists

Patrick Feeney, Blue Cross Blue Shield

Wil Ferrell, Starcom MediaVest Group

David Ferris, Ironwheel Works

Cyndi Greenglass, Diamond Marketing Solutions

Andy Gold, ASG Direct

Amy Guisto

Jerry Hannigan, College of DuPage


Charlotte Hansen, MobileFuse

Holly Harle, Diamond Marketing Solutions

Randy Hlavac, Northwestern University and Marketing Synergy, Inc.

Richard Hren, Hren & Associates

Denise Hughes Valles, FCB

Ron Jacobs, Jacobs & Clevenger

Susan Jones, Susan K. Jones and Ferris State University

Christopher Krohn, Restaurant.com

Susan Kryl, Kryl & Company

Sid Liebenson, Priests of the Sacred Heart

Dasher Lowe, OgilvyOne

Richard Marcus, Infogroup

Marisa Marinelli, Quad/Graphics

Marilyn Markle, Markle Design Group

Brenda McGowan, Anchor Computer

Dave McSweeney, Diamond Marketing Solutions

Randy Mitchell, Jacobs & Clevenger

Patrick Moorhead, Catalina

Suz Murphy

Jack Philbin, Vibes

Pam Pole

Billy Pyle, Jacobs & Clevenger

Phyllis Reda, Ami Marketing

Dirk Rients, DDB Chicago

Frank Roman, AsHappyAsYouDecideToBe.com

Brad Schwab, Schwab Group

Jim Sherman, Gamma Partners

Mark Tack, Vibes

Ellen Valentine, Silverpop

Randy Wait, Leapfrog Online

Brian Wright, e-querryUSA

Mark Ziner

Please let us know if any 2013-14 Volunteer Member was omitted from this list.

CADM is extremely grateful to all of our Volunteer Corps! We couldn’t do it without YOU!

Please sign up! Groups are forming right now for:

• Basic Course

• TEMPO Awards (competition and gala ceremony)

• Mobile Marketing Morning

• After Hours in the ‘Burbs Happy Hours

• The Five Pillars of Excellence

• Digital

• Response Marketing

• Social

• Mobile

• Analytics

Sign up online at www.cadm.org or for more information email [email protected] or Susan Kryl at [email protected].


Lessons on Segmentation from Coca-ColaSouth Africa

Clearly the U.S. has no monopolyon smart marketing plans. Anything you can share on globalmarketing?

In May I was privileged to travelon a study trip organized by theUniversity of South Carolina’sMoore School of Business. Oneof our visits was to meet with

executives from Coca-Cola South Africa(www.cocacola.co.za/), and to visit some ofthe small Spaza Shops in rural towns. During a briefing at Riverside Country Estate outsideJohannesburg, we learned that South Africa isa top 10 global market for Coke, both in termsof sales and profits. Quite impressive consider-ing that Coke sells in 200 countries worldwide.

Our host spent much of his time explainingthe segmentation plan that Coke has adoptedsuccessfully in South Africa. It focuses on thefact that the country essentially has two realities.

Reality #1 – Developed• Advanced

• Sophisticated

10 ask theDM expertsAsk the DM Experts

by Susan K. Jones, Susan K. Jones & Associatesand Ferris State University

“Ask the DM Experts” is a monthly adMarksfeature. Professor Susan K. Jones draws onthe knowledge of CADM members andother authorities to answer your questions— so tell her what you want to ask! ContactSusan at [email protected] or follow heron Twitter @sjones9200.

• Skilled Labor

• Globally Competitive

Reality #2 – Emerging (i.e. Townships out-side Johannesburg)• Informal

• Unskilled Labor

• Underemployed

• Poverty

To serve these markets effectively, Coke usesdeciles to divide the population by living standards.

Living standards 1-6 represent 65% of the population and are characterized as follows:

• 34.2 million people

• 21% of income

• Household daily disposable income of 106Rand (approximately $10.60) — note that the average household in these segmentsmay include an average of 10 people withperhaps only one breadwinner

The main thing that Coke tries to provide thesecustomers is product that is relevant, affordable,and “local and traditional” — e.g., the SpazaShops described below. The ideal is that Cokealways be “within an arm’s reach of desire.”

Living standards 7-10 represent 35% of thepopulation and are characterized as follows:

• 18.6 million people

• 79% of income

• Household daily disposable income of 612 Rand (approximately $61.20).

The main things that Coke tries to providethese customers are products that are appro -priate for pantry loading (larger containers), relevant, offering perceived value, convenient,cognizant of health and wellness (i.e., juicesand waters), and variety. This customer is likelyto purchase Coke at larger outlets like grocerystores and Makro, a Sam’s Club type venturethat is part of Walmart.

Spaza ShopsRepresentatives from Coca-Cola of South Africakindly took our group on a visit to several SpazaShops in the townships surrounding Johannes-burg. Spaza Shops are usually small stores thatmight be in storefronts or even in a spare roomof someone’s home. They carry basic needs likebread and other groceries, and — of course —Coca-Cola. Such shops provide much-neededincome for their owners, many of whom areunable to find formal employment. Or perhapsa woman with an employed husband will runsuch a shop for extra income.

Q.A.

Because Coca-Cola holds a staggering 84%market share for sparkling beverages in SouthAfrica, it’s not surprising that most of the SpazaShops display large signs outside with theCoca-Cola logo and the name of the shop. Theshops often feature temporary sales promotionposters — during our visit these signs weretouting the World Cup in Brazil, and invitingSouth Africans to “adopt” Brazil as a country.

Coca-Cola knows that in the soft drink world,“if it’s not cold, it’s not sold” — so they workwith Spaza Shop owners to provide various refrigerated containers to hold their wares.Coke reports that shops receiving this type ofhelp typically see a 20-25% increase in sales.

Even street vendors benefit by this program —they can be chosen to receive a barrel-likecooler to keep their drinks cold and ready tosell even in the hot summer months outdoors.

Why is Coca-Cola so dominant in South Africa —both in the Spaza Shops and in hotels andrestaurants? During apartheid, shareholders’distaste for the apartheid regime led manyfirms to pull out of South Africa. Coke did so,but they moved corporate headquarters overthe border to Swaziland, and kept supplyingSouth Africa with their products. Meanwhile,Pepsi pulled out completely. Pepsi returned inthe 1990s only to retreat again — they have re-entered the marketplace in recent years andare slowly gaining market share, but Cokeseems to be more concerned with so-calledlocal “B brands,” such as Kingsley and Twizza.

Coke officials admit that these “B brands” havea good product, and that these products are offered at a lower price. For example, in aGAME store (another part of the Walmart subsidiary), a 2-liter container of Coke mightsell for 180 Rand (about $1.80 at current con-version rates) whereas the “B brands” sell thatsame container for 100 Rand (about $1.00.)

To keep prices down in the Spaza Shops —where single-serving sizes are popular — Cokeuses returnable glass bottles and offers 300 ml.of the product for the equivalent of 40 to 50U.S. cents. Often the product is consumed on-premises and the glass bottle returned rightaway for cleaning and re-use. •


cadm Superstars 11

★ 2013–2014 CADM Sponsorship Partners ★The CADM officers, members of the board of directors, and staff would like to sincerely thank the following companies for their partnership

and generous sponsorship of CADM’s many activities, programs, and services during this past year. Sponsorship partners include both financialand in-kind contributions.

• ANCHOR COMPUTER

• BRADNER SMITH & COMPANY

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Please let us know if a 2013–14 sponsoring company was omitted from this list!

CADM is extremely grateful to all of our sponsors!

Thank You!


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