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School of Business, Creative Campaigns, Topic 5 – Lecture School of Business – Creative campaigns – Lecture 5
Creative Campaigns
Brand and product portfolio management
School of Business, Creative Campaigns, Topic 5 – Lecture
Brand portfolio management:
Development and rationale of brand portfoliosStrategic alignment of brand portfolios to customersObjectives/vision for brand portfoliosEvaluating a brand portfolio
Product portfolio:
Developing a new productManaging the product lifecycleEvaluating product portfoliosCustomer value management
Learning Outcomes
School of Business, Creative Campaigns, Topic 5 – Lecture
Different commercial and customer objectives
Unified by a common
vision/purpose
Vision for a brand portfolio
School of Business, Creative Campaigns, Topic 5 – Lecture Source: nVision Research
“How much, in general, do you trust the following to do business fairly? | % who say very much or quite a lot | 2012
Let’s look at an insurance example… a trusted industry?
School of Business, Creative Campaigns, Topic 5 – Lecture
Create distrust Creates Trust
1. Haggling2. ‘Price Shock’ at renewal3. Ignore loyalty4. Lack of differentiation5. Hidden and unfair charges6. Guilty until proven innocent7. Lack of communication8. Rely on small print9. Jargon & complexity10. Depersonalised
1. First price best price2. Fair renewal premium3. Reward loyalty over NB4. Differentiate for customers5. Transparency6. Pay then prove7. Keep claimants informed8. Spirit not letter of law9. K.I.S.S. – natural language10. Personal Claims Advisor
The ‘Uncomfortable Truths’ of the Insurance Sector
Building Customers’ Trust
School of Business, Creative Campaigns, Topic 5 – Lecture
TO EARN CUSTOMERS’ TRUST EVERYDAY
The portfolio vision
School of Business, Creative Campaigns, Topic 5 – Lecture
“Businesses generate up to
90% of their profits from
fewer than 20% of their brands”
Aaker
The Challenge – Building a Portfolio for the Future
School of Business, Creative Campaigns, Topic 5 – Lecture
Core Non-Core
Power Brand
Power Brand
Sleeper Brand Slider
Brand
Discarded Brand
Soldier Brand
For example: The DLG Portfolio
School of Business, Creative Campaigns, Topic 5 – Lecture
Align your brands to customer segments
School of Business, Creative Campaigns, Topic 5 – Lecture
Align your brands to customer segments
School of Business, Creative Campaigns, Topic 5 – Lecture
Align your brands to customer segments
School of Business, Creative Campaigns, Topic 5 – Lecture
12
Align your brands to customer segments
School of Business, Creative Campaigns, Topic 5 – Lecture
Brand differentiation in practise
School of Business, Creative Campaigns, Topic 5 – Lecture
Promise
Character
Insight
Substance
Ambition
Target audience
Audience Insight
Insurance Insight
Pulling our brands apart…
School of Business, Creative Campaigns, Topic 5 – Lecture
Portfolio evaluation: Key portfolio concerns
School of Business, Creative Campaigns, Topic 5 – Lecture
Mar
ket
Gro
wth
Rat
e (C
ash
Usa
ge)
Divest
Invest or Divest?Invest
Milk
Low HighLo
wH
igh
Portfolio evaluation framework
School of Business, Creative Campaigns, Topic 5 – Lecture
Key challenge is to attract lower risk and more premium personal and business customers onto the book
Brand Differentiation Product Augmentation Attracts Target Customer
Customer Oriented Portfolio Development
School of Business, Creative Campaigns, Topic 5 – Lecture
Let's now turn to product portfolios…
School of Business, Creative Campaigns, Topic 5 – Lecture
Brand Propositions are built on the foundations of a solid brand
Brand Propositions are built on the foundations of a solid brand
Key CompetitorsPorters 5 Forces Key CompetitorsPorters 5 Forces
Target Audience 5 Killer QuestionsTarget Audience 5 Killer Questions
Consumer InsightDeep rooted understanding of consumer and market ‘gap’
Consumer InsightDeep rooted understanding of consumer and market ‘gap’
Consumer Benefit
Consumer Benefit
DefiningAttributesDefining
AttributesDefiningFeaturesDefiningFeatures
Develop Total Experience
Develop Total Experience
How will you test the concept?How will you test the concept?
11
3322
44
55 66 77 88
99
10 steps to developing a proposition
School of Business, Creative Campaigns, Topic 5 – Lecture
CustomerWinning product plus experience that meets
customer needs
CommercialProperly priced to optimise the P&L within
regulatory constraints
ChannelThat can be delivered excellently from first
touch to last
The Trade-Off Triangle
School of Business, Creative Campaigns, Topic 5 – Lecture
+
Customer InsightUnderstanding your customers
and their needs
Market InsightUnderstanding the gap in the market
A proposition built on a consumer insight
School of Business, Creative Campaigns, Topic 5 – Lecture
Consumer insight in action – Dirt is Good
School of Business, Creative Campaigns, Topic 5 – Lecture
Managing products over time
School of Business, Creative Campaigns, Topic 5 – Lecture
Attract New to Industry
Customers (New-New)
Attract New to Industry
Customers (New-New)
Attract New Customers from
Competitors (Switchers)
Attract New Customers from
Competitors (Switchers)
Gain Incremental Value From
Existing Customers
Gain Incremental Value From
Existing Customers
By leveraging the marketing mix to execute the strategy By leveraging the marketing mix to execute the strategy
ProductProduct Place Place Price Price PromotionPromotion
Hig
hest
Cost
A
ctiv
ity
Low
est C
ost
Activ
ity
Customer value management
School of Business, Creative Campaigns, Topic 5 – Lecture
Customer value management
School of Business, Creative Campaigns, Topic 5 – Lecture
Customer value management• Who should I target to give me highest
value in the long term? • What should my maximum CPA be for
these customers based on lifetime value (CLTV)?
• How should I target these customers? • What proposition/offer should I use to
target different customers (next best action ‘NBA’ decisioning)?
• Who should I target to give me highest value in the long term?
• What should my maximum CPA be for these customers based on lifetime value (CLTV)?
• How should I target these customers? • What proposition/offer should I use to
target different customers (next best action ‘NBA’ decisioning)?
Underpinned by 3 core data driven components Underpinned by 3 core data driven components
Hig
h C
ost
Low
Cost
Data & Analytics
To drive campaigns, propensity modeling and
next best action decisions
Data & Analytics
To drive campaigns, propensity modeling and
next best action decisions
Customer Lifetime Value
To understand your most profitable customers to drive target customer
decisioning
Customer Lifetime Value
To understand your most profitable customers to drive target customer
decisioning
Segmentation
To determine how to target customers through
deep understanding
Segmentation
To determine how to target customers through
deep understanding
• Who are my most profitable customer segments?
• What do these customer segments look like? i.e. demographics, attitudes etc.
• What should my ‘next best action’ strategy be for each customer? i.e. to cross-sell, up-sell or retention
• How much should I spend on each activity?
• Who are my most profitable customer segments?
• What do these customer segments look like? i.e. demographics, attitudes etc.
• What should my ‘next best action’ strategy be for each customer? i.e. to cross-sell, up-sell or retention
• How much should I spend on each activity?
School of Business, Creative Campaigns, Topic 5 – Lecture
Customer Lifetime ValueModel
Customer Lifetime ValueModel
Target consumers that are most responsive to comms/offer
Target consumers that are most responsive to comms/offer
Data & AnalyticsPropensity ModelData & AnalyticsPropensity Model
SegmentationModel
SegmentationModel
Understand which customers, what
product, what offer and when to cross-
sell
Understand which customers, what
product, what offer and when to cross-
sell
Understand which customers, what
product, what offer and when to up-sell
Understand which customers, what
product, what offer and when to up-sell
Understand which customers, what
product, what offer and when to retain
Understand which customers, what
product, what offer and when to retainE
xis
ting
Cust
om
ers
Target consumers that give you most
value
Target consumers that give you most
value
Drive AdvocacyDrive Advocacy
Customer value management
School of Business, Creative Campaigns, Topic 5 – Lecture
End of presentation