Allegra 2001 Direct Response & Digital Marketing...
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Allegra 2001 Direct Response & Digital Marketing Plan • Second Draft – Presented January 17, 2001
Transcript of Allegra 2001 Direct Response & Digital Marketing...
Allegra 2001
Direct Response & Digital
Marketing Plan
• Second Draft – Presented January 17, 2001
2
Meeting Purpose
• Present second draft of 2001 marketing plan
• Review financials
• Discuss research recommendations
3
Agenda
• Key Considerations
• 2001 Allegra Marketing Plan
– Marketing Objectives & Strategies
– Segmentation Strategy
– Program Communication Flow
– Spring/Fall Drive – Online & Offline Approach & Tactics
– Program Financials & ROI
– Research Recommendations
– Next Steps
– Appendix
• Detailed Tactical Overview
• Financial Worksheets
Key Considerations
5
Key Considerations – Survey Data
• Survey response collection through direct response & VRU channels
– To be mirrored by online Allegra Extras registration
– Customer surveys to be consistent on all promotional materials
• Information collected:– Basic demographic profile
– Geographic information
– Rx or OTC user -- or both
– Name of medications used
– Symptom severity
– Number of days suffering and medicating
– Season and specific months of suffering
– Types of symptoms suffered
– Allergen most triggering symptoms
– Type/dose of Allegra brand purchased (through redeemers)
– (Online only) How prescription of Allegra obtained
• Doctor appointment
• Call-in request to doctor without visit
6
Key Considerations – Data Audit
• 20% of the Harte-Hanks database names (primarily users) responded to a usage question:– 120+ days medicate 45.3%
– 61-120 days medicate 21.2%
– 0-60 days medicate 33.5%
• Usage data mirrors the Prizm data– Categories can be mapped to new questionnaire usage questions
– Average days medicate = 90+days or 4 Rx per year
• Usage patterns for 80% of database unknown
• Further analysis and modeling required by end of 2001 to leverage and assign value to names for Spring Drive
7
Key Considerations – Opt-in
• Customer opt-in is no longer required to continue
communication with handraisers or users– Opportunity to leverage legacy names, reduce Acquisition
spending
– Retain all MCO, MDUS and Abelson-Taylor rebaters
– Enriched data analysis
– Enhance opportunity to convert, conquest and grow usage
8
Key Considerations – Digital
• Additional goals for 2001 can be established
– Ease of registration must be improved and tracked
– Encourage repeat visit
• Phase II recently approved by CRC– DDMAC approval of website creative may still be a problem
– Leverage approved language and creative to avoid pre-
clearance
9
Key Considerations –
Ease of Brand Integration
• Opportunity to leverage new brand creative, tagline
and approved language in all digital and direct
efforts
• Seamless integration of Allegra Extras program into
all DTC initiatives
Allegra ’01 Marketing Plan
Objectives & Strategies
12
2002 Direct Response Objectives
• Lead generation
• Brand retention
• Motivate increased usage
• Control competitive switching
• Allocate funding based on customer value
• Portfolio promotion
13
Direct Response
Objectives & Strategies• Lead Generation
– Launch Allegra Extras to differentiate the brand and serve as the lead-
generation engine to get sufferers to raise their hands
– Leverage multi-media mix to generate cost-efficient leads
– Test offers and programs that embrace the lifestyle of the heavy
medicator
• Brand Retention
– Drive Allegra Extras program registration on and offline
– Leverage database to customize messaging and offers that are
relevant to Allegra Extras members
• Motivate Increased Usage
– Increase Allegra usage by 20% across all categories
– Convert heavy sufferers/moderate medicators to heavy medicators
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Direct Response
Objectives & Strategies
• Control Competitive Switching
– Leverage benefits of Allegra and Allegra Extras to insulate current
users and encourage competitive users to switch
• Allocate funding based on customer needs
– Initially segment database names based on days medicate
– Launch EVIP program to Super Heavy & Heavy users
• Portfolio Promotion
– All acquisition efforts focus on Allegra
– Target aggressive Allegra D offers and messages to all high value
congestion sufferers
– Encourage switching from Allegra 60mg to 180mg
Segmentation Strategy
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Core Treatment and Budget Assumptions
Segment
%
Value
$48.76
Allowable Spend
3:1 ROI
Allowable CPL*
3:1 ROI Extras Impact**
Retention
Allowable 3:1
ROI
$114 $25 $68 $23
$18 $16
$49 $11 $29 $10
$16 $4 $10 $3
Super Heavy User
181+
20%
$195 - $293
4-6Rx
25%
$0 -$97.52
0-2Rx
25%
$146
3Rx
$81
30%
$341+
7Rx
Heavy User
91-180
Moderate User
61-90
Light User
0-60
$49
* Assumes a 22% conversion rate
**Assumes a 20% increase due to Extras program
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Core Treatment and Projected Investment
Segment
%
Value
$48.76
Allowable
Spend 3:1
ROI
Hand-
raisers/
Users
Projected
response
Rates
Average
Spend
CTS,
Redemp,
EVIP Allegra User Competitor
237,707 5,230 867,631 Insulate Conquest
$114
22%
Conversion
52,296
125,520
3,565,605
4,495,996
18.91
4 New sletters
2 EVIP Mailing
4 New sletters
1 EVIP Mailing
158,471 3,486 578,420
Grow &
Insulate Conquest
22% 83,664
Conversion 2,377,065
3,039,149
34,86 19.18
198,089 4,358 366,465 Fulfill Fulfill
$49
22%
Conversion
43,580
52,296
418,761
2.11
2 New sletters 2 New sletters
198,089 4,358 366,465 Fulfill Fulfill
$16
22%
Conversion
43,580
52,296
418,761
2.11
2 New sletters 2 New sletters
Light User
0-60
4 New sletters
2 EVIP Mailing
Super Heavy
Users
181+
20%
$195 - $293
4-6Rx
25%
$0 - 97.52
0-2Rx
25%
$146
3Rx
4 New sletters
1 EVIP Mailing$81
30%
$341+
7Rx
Heavy User
91-180
Moderate
User
61-90
• Heavy and super heavy groups include
– Core program $3.65
– Possible redemption $24
– EVIP program $15
• Light and medium groups include
– Core program $1.85
– Possible redemption $12
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Segment Value Allegra User Competitor
181+ $341+ NEVER
No response after 2
recontacts (12 mo.)
91-180 $195 - $293 NEVER
No response after 2
recontacts (12 mo.)
61-90 $146 6 months 6 months
0-60 Up to $146 6 months 6 months
Delete Strategy
* Customers will be deleted at their request
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2001 Members2002 Members/ Legacy Hand-raisers
Allegra Database
Feb Newsletter
March EVIP
April Newsletter
Non-Redeemer
August
Newsletter
September EVIP
October
Newsletter
Non-Redeemer
Super Heavy Heavy Moderate Lite Unknown
Feb Newsletter
April Newsletter
Welcome Kit
Core Program
Communication
Flow
DRTV, DRPrint, General Advertising, DM,
Promotions, Internet, MCO, Sales
Spring/Fall Drive
Online & Offline
Approach & Tactics
Seasonal Drive Communication Strategy
Spring Fall
Primary Message: Allegra Extras Program
Launch
The program is launched as a educational
and supportive initiative to help sufferers
manage their seasonal allergies. All lead-
generation efforts will showcase the Extras
Newsletter and offer the free all-weather
stadium cushion.
Retention communication will focus on the
program, the featured pool of Spring Extras
offers and consistently include a selection of
two-three Extras
Primary Message: Encouraging Extras
Enrollment
Begin to aggressively leverage traditional
promotional tactics and introduce the “Real
Living Sweepstakes” as an overlay on all
lead-generation efforts. Sweepstakes entry
will not require a proof of purchase.
Sufferers can enter to win free season
tickets to PGA events, play a round of golf
with Steve Elkington, allergy free gardening
consultation from BHG, Palm Pilot or free
weekend car rental from National.
The Welcome Kits and Newsletters will
detail the “Real Living Sweepstakes”,
showcase the prizes and feature the pool of
branded Fall Extras.
Lead Generation Approach By Tactic
Tactic Spring FallDRPrint Rollout of Allegra Extras program – Ad engages allergy
sufferers with high-energy scenes and hooks them with the
juxtaposition headline communicating that Allegra offers
something extra. The focus of the ad is the Extras program
and the free introductory offer- stadium cushion. The ad
positions the program as an educational/supportive effort to
help sufferers manage their seasonal allergies. The
newsletter is prominently positioned and the launch issue is
promoted.
Test variations of the ad will be developed to target
unsatisfied sufferers, congestion sufferers, heavy sufferers
and Clarinex prospects.
An A/B split will be tested to determine if the free premium
increases enrollment
The creative leverages the General Advertising concept and
builds on the graphic elements of the Fall 2001 test. All ads
include a BRC and unique 800 number
The Spring creative execution will be maintained,
but refreshed and the Allegra Extras Program will
continue to be the focus. To enhance the acquisition
effort the “Real Living Sweeps” overlay will be added
to encourage enrollment in the Extras program.
Entry into the sweepstakes will not require a proof of
purchase, strictly survey information. Responders
enter win a free season ticket to PGA events, Palm
Pilot, “Round of Golf with Steve Elkington” an allergy
free gardening consultation from BHG
or free weekend car rental.
DRTV National cable DRTV test campaign leveraging the General
Advertising spot to create a reedited :60 DRTV version
featuring the Allegra Extras program. The focus of the spot
is the Extras program, the free introductory offer - stadium
cushion and the benefits of membership. The spot positions
the program as an educational/support effort to help
sufferers manage their seasonal allergies. The approach
and communication strategy mirrors the spirit of the General
Spot – Allegra helps me get back my vigor for everyday life.
Based on the results of the Spring DRTV Campaign
the spot will be reedited to feature the new general
advertising creative (if a new spot is created) and the
chance to enter the “Real Living Sweepstakes” to
encourage enrollment in the program.
Lead Generation Approach By Tactic
Tactic Spring FallCVS Opportunity to partner with CVS Pharmacies across the
country to leverage their database of Allegra users, Allergy
Sufferers and potentially competitive users. An unbranded
letter is forwarded to participating CVS pharmacies and
distributed to consumers. The program offers the
opportunity to integrate with promotional in-store program
and establish a strong relationship with a major pharmacy.
Spring test only
Direct Mail Based on the results of the Fall 2001 program continue to
target competitive RX users with a customized Spring
Welcome Kit. The kit will feature letters with targeted
messaging, promoting the stadium cushion as an
introductory offer and showcasing the Spring Extras.
Implement an A/B split with a version that does not include
a the free premium
Based on the Spring 2002 results continue to target
messaging to both competitive Rx and OTC users.
Consider testing a broader category of prospects –
Allergy Sufferers, who mirror the Allegra
demographic profile; Adults 35+, with HHI $40+.
Opportunity to test and increase mailing universe.
Leverage 2002 Welcome Kit featuring updated Fall
Extras. To encourage membership, when
customers opt-in they are automatically entered into
the “Real Living Sweepstakes”.
Lead Generation Approach By Tactic
Tactic Spring FallMCO Relaunch the new Patient Support Program featuring the
Allegra Extras Program. Key MCO accounts are given the
opportunity to offer the Allegra Extras program to current
and potential Allegra customers. Consumers who opt-in to
the program are given the opportunity receive any of the
Spring Extras.
The program continues to be offered throughout the
year and is updated with the Fall featured Extras.
Emails Lists Based on the Fall 2001 results, continue to target
messaging to both competitive Rx and OTC users.
Aggressive launch of Allegra Extras Program driving click-
thrus to the registration page. Prospects are offered an
Allegra Extras mouse pad just for signing up for the
program.
Based on the Spring 2002 results continue to target
messaging to both competitive Rx and OTC users.
Feature updated product claims/messaging when
appropriate and Fall pool of Extras. Offer prospects
opportunity to click and register for the “Real Living
Sweepstakes.” Consumers are taken directly to the
sweepstakes/Allegra Extras registration
Lead Generation Approach By Tactic
Tactic Spring FallBanners Based on the positive results of the 2001 Digital Media
campaign, the media mix will continue to include banners.
Branded and unbranded banners featuring traffic building
messages such as pollen counts, Allergy symptoms, free
mouse pads just for registering, allergy triggers, seasonal
themes and featured extras will continue to be part of the
mix. The Allegra Extras logo will be prominently featured
in many of the extras versions to continue to build on the of
the program branding. Themed banners will drive visitors
to the site and the registration page.
Explore unique tactics outside of banners: sponsorships,
promotions and win-win partnership opportunities
Banners will be refreshed prior to the Fall drive with
seasonal updated Extras and the opportunity to
enter “Real Living Sweepstakes” .
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Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
DRTV
Direct Mail
Digital
DRPrint
2002 Lead Generation Media Tactical Calendar
Retention Approach By Tactic
Tactic Spring FallWelcome Kits Launch of Allegra Extras program – includes the free
stadium cushion and focuses on Allegra Extras, detailing
the features of program, Allegra Extras offers and product
information. The look of the Kit will be updated to integrate
with 2002 general advertising and acquisition efforts. It
includes an updated product brochure, letter, redemption
certificate and BRE.
The Kit letter and Extras brochure will be updated to
reflect the new Extras and detail the “Real Living
Sweepstakes”.
Newsletters Core component of Allegra Extras Program with standard
features;new Extras with redemption certificate, partner
updates and relevant seasonal information. A versioned
letter will be included in the Newsletter Kit addressing
current program activity. Each Newsletter will communicate
a theme and objective:
February – Focus on Extras Program, screener questions
to determine the severity of symptoms and tips for Spring
cleaning. The primary objective of the newsletter is to arm
the consumer with information to help their dialogue with
their physician and an incentive to ask for Allegra.
April – Feature testimonials, tips for traveling with allergies
and advocate promotion. The primary objective is to
promote advocates and positive user feedback.
The same format, components and design of the
Newsletter kit will be maintained for the Fall drive.
Newsletters will drop in August and October. The
focus of the the August newsletter will be the “Real
Living Sweeps”. Members can enter the
sweepstakes by detailing how Allegra helped them
get back to “Real Living”. The October Newsletter
will focus on preparing for Winter and Allegra D.
Retention Approach By Tactic
Tactic Spring FallNewsletters via
Online Newsletter will mirror the Offline version with
standard features;new Extras with redemption certificate,
partner updates and relevant seasonal information. A
versioned email will be sent to Online members linking
them back to Allegra.com and the Extras Newsletter. Each
Newsletter will communicate a theme and objective:
February – Focus on Extras, screener questions to
determine the severity of symptoms and tips for Spring
cleaning. The primary objective of the newsletter is to arm
the consumer with information to help their dialogue with
their physician and an incentive to ask for Allegra.
April – Feature testimonials, tips for traveling with allergies
and advocate promotion. The primary objective is to
promote advocates and positive user feedback.
The same format, components and design of the
Newsletter program will be maintained for the Fall
drive. Emails linking back to Allegra.com will be
forwarded in April and October. The focus of the the
April Newsletter will be the “Real Living Sweeps”.
Members can enter the sweepstakes Online by
detailing how Allegra helped them get back to “Real
Living”. The October Newsletter will focus on
preparing for Winter and Allegra D.
EVIP All EVIPs, Allegra Extras high value members will receive
an additional communication. The EVIP kit will include a
surprise and delight – a branded outdoor thermometer,
thanking them for participating in the program and
showcasing the latest Extras offers
In November EVIPs will receive one more
incremental communication and a second free
Allegra Extra – travel mug. That kit will also focus on
Allegra D, leveraging the fact the number one
symptom of Heavy Medicators is nasal congestion.
Retention Approach By Tactic
Tactic Spring FallNon-Responder At the end of the Spring Drive, high value non-responders
are mailed to determine if they should remain in the
program or be deleted. Approach is a satisfaction survey
which solicits input for program design and provide an opt-
out option. Results evaluated after each effort to determine
potential revenue foregone or cost incurred.
At the end of the Fall Drive, high value non-
responders are mailed to determine if they should
remain in the program or be deleted. Approach is a
satisfaction survey which solicits input for program
design and provide an opt-out option. Results
evaluated after each effort to determine potential
revenue foregone or cost incurred.
Redemption Kit Kit carrying the member’s selected Extras. Kit components
include; letter, Satisfaction Survey, Extras and OE.
Same kit carrying the member’s selected Extras. Kit
components include; letter, Extras and OE.
Retention Approach By Tactic
Tactic Spring FallOn-going Emails Extras registration will ask traditional offline survey
questions, but will also offer members opportunity to
indicate what kinds of online emails they are most
interested in receiving – updates about new site content,
updates about particular lifestyle activities in Beyond
Seasonal Allergies, pollen alerts, etc.
Extras registration within itself will permit outbounding of
various communications, through response to “Yes, I
would like to receive news, tips and other valuable
information from Aventis Pharmaceuticals.” However,
specifically asking members about their interest in
receiving different kinds of site updates, allows ability to
determine potential vehicles/themes for newsletters and
other messaging.
In July, will evaluate responses to registration
questions and page view trends, and use
information to drive fall outbound emails – both to
develop most relevant content for newsletters, but
also to provide input that may assist in future
acquisition messaging.
Web site Updates 2002 updates will include updates to Steve/Erik’s
schedules & any additional Phase III content needing
refreshing
In July, will evaluate site traffic and determine if
additional content practical for Beyond Seasonal
Allergies (such as personal finance) and measure
traffic on Ask the Expert (National Jewish) tools
Retention Approach By Tactic
Tactic Spring FallPartnerships Partners will supply content/tools for Allegra.com, and Allegra
will also advertise/sponsor content on partner sites. Current
partners include:
National Jewish, who will supply the allergy screener/ability to
email a doctor directly with allergy questions (part of Phase II,
end of this year).
Weather.com will supply national parks information for hiking
(to support Erik W content) and can supply golf course locator
if not supplied by PGA. Weather.com may also supply travel
content.
Better Homes & Gardens will supply gardening content &
general media buy, jump pages and sponsorship of women’s
health section will be leveraged to showcase Real Living
sweepstakes. BHG may also supply travel content
Yahoo will provide respiratory exclusivity on their Allergy
Center, which will contain Allegra branding. Links to
Allegra.com from the Allergy Center and outbound emails to
Yahoo consumers will also drive traffic to the Allegra site.
The PGA, as a promotional partner, will also provide online
resources by lending credibility to the golfing section (usage
of official logo) and potentially use of their golf course locator.
Healthology may provide webcasts on up to 1,500 different
sites – by providing grants to Healthology, their physicians will
develop content, which will be produced and placed
throughout wide site network. All webcasts will include link to
Allegra.com, with messaging appropriate to drive traffic and
registrants.
As the sweepstakes enfolds, all partnerships can
be leveraged for prizes.
As site traffic is evaluated, can determine if
additional existing promotional partners can and
should be leveraged online.
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Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
Recontact to Legacy
Newsletter
Welcome Kit
EVIP Program
Redemption Kits
Satisfaction Survey (Non-responder Recontact Mailing)
2002 Allegra Extras Tactical Calendar
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Messaging Segmentation Plan – Lead Generation
Segment Goal Messaging Tactics
Competitive RX sufferers Switch sufferers, who are not
getting relief from their current
treatment to Allegra
•Ask about satisfaction with
current seasonal allergy
treatment
•Inform about Allegra benefits as
nonsedating, 24 hour relief
Heavy Sufferers Switch sufferers who have
need for proven seasonal
allergy treatment
•Promote 180 mg as convenient,
once-daily relief
•Inform about nonsedation
Protect against potential
Clarinex switching by
switching instead to Allegra
•Inform about convenience of 180
mg for 24 hour relief
•Emphasize nonsedatation
Chronic Congestion Switch sufferers who may
benefit from the decongestant
in Allegra-D
•Inform about Allegra-D powerful
congestion relief
•Include reference to Allegra
family of products to lend
credibility
Clarinex Prospects
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Messaging Segmentation Plan - Retention
Convert Competitive Users
and increase share
Switch 60mg users to 180mg
Increase promotion and sales
of Allegra D
Goal
• Promote 180mg
• Focus message on Allegra non-
sedating benefits
Claritin/Zyrtec User
• Indicate through survey
responses that they have
recently used a competitor
• Unknown users
• Version Newsletter messaging
and offer aggressive 180 mg
rebates
60s – Currently Using 60 mg
• 60mg rebaters
• Customers who entered the
database prior to 2001 (1998-
2000)
• Feature Allegra D offers and
rebates
• Customize messaging in
Welcome Kits and Newsletters
• Focus of September EVIP
mailing
Ds – Allegra D Prospects and
Users
•Rebated as an Allegra D user
•Have indicated through
survey responses that they
suffer from congestion
Messaging TacticsSegment
Test/Targeted Efforts
Test/Targeted
Effort
Quantity Description
Conquest competitive high
value users
50,000 Send postcard with high-value Extra offer
as redemption for switching
Heavy sufferer/moderate
medicator
20,000 Opportunity to increase usage by
narrowing the gap between days suffer and
days medicate
High value offer is sent upon request at no
charge
Test designed to stimulate interest and
involvement in the brand
Grow moderate medicator to
heavy
10,000 Migrate a test group of moderates into high
value program to determine if this grows
usage from 3RX’s to 4 or more
Control Group 10,000 Users and non-users of the brand who are
not members of the Extras program
Measure the incremental lift of the Extras
program
Test/Targeted Efforts
Test/Targeted
Effort
Quantity Description
EVIP Control Group 10,000 Migrate a test group of high value users to
the moderate stream/basic program to
determine the lift of the EVIP program
Clarinex Defense Plan TBD Leverage database of self-identified Claritin
users, purchase universe of Claritin users
from proven acquisition lists, CVS and
Health Resources. Launch a targeted
DRPrint effort and offer an aggressive trial
program.
2002 DR Financials
38
Financial Assumptions
• Current net revenue per 1 script $ 48.76
• Current average fill frequency 2.1
• Current net revenue per script $102.40
• Conversion rate 22%
• Average fill frequency with Extras 2.52
• Net revenue per script with Extras $123.00
• Conversion rate 22%
39
Media Budget Assumptions
Acquisition Medium Registrants % Cost %
Digital 87,900 43% 3,050,000$ 37%
DRTV 13,571 7% 500,000$ 6%
DRPrint 66,667 33% 3,000,000$ 37%
Direct Mail 35,000 17% 1,600,000$ 20%
Total Costs 203,138 100% 8,150,000$ 100%
40
Media Estimates and Allowables
Media
Type Budget Est CPL Clicks # Leads # Users
X2
Multiplier Total users
Digital 3,050,000$ 13$ 293,358 87,900 17,580 35,160 52,913
Print 3,000,000$ 50$ 0 66,667 14,667 29,334 44,206
Dmail 1,600,000$ 45$ 0 35,000 7,700 15,400 23,100
DRTV 500,000$ 35$ 0 13,571 2,986 5,972 9,125
Total 8,150,000$ 203,138 42,933 85,866 128,799
Budget
ROI 2 to 1
Conversion 22%
Base allowable CPL $13.77
Allowable CPL w/2x multiplier $41.31
$8,150,000
41
ROI: Media and Acquisition
Revenue $13,137,498
Cost
• Working Media $ 8,150,000
Media ROI 1.61 to 1
128,799 users @$102.40
Includes 2x multiplier
42
2002 Extras Program ROI
• Acquisition revenue includes all
DWW sourced users @2.52 Rx
• Retention revenue incorporates
all other users @0.42 incremental
Rx
• Acquisition cost includes working
media
• Retention cost includes
– Welcome kit and Extras
expense for DWW leads
– Extras expense only for other
source leads
– All other DM marketing variable
costs
Revenue 2002
Acqusition $26,274,996
Retention 3,962,655$
Total 30,237,651$
Costs 2002
Acquisition 8,150,000$
Retention 9,364,737$
Total 17,514,737$
2002 Program ROI 1.7 to 1
43
Impact of Extras Program on ’02
Revenue
• Extras Program estimated to grow revenue by 20%
• DWW ’02 leads and legacy conversion revenue includes
2.52Rx
• Incorporates all other users at 0.42 incremental Rx
# leads # Users Value @2.1Rx 2X multiplier
20% growth=
$21 per user Total value
DWW '02 leads 203,138 42,933 $4,396,339 $8,792,678 $879,268 $14,068,285
Conversion of legacy 0 91,800 $9,400,320 $1,880,064 $11,280,384
Marketing Drive 60,000 60,000 $6,144,000 $1,228,800 $1,228,800
MCO and Abelson 10,000 10,000 $1,024,000 $204,800 $204,800
McCann 9,120 2,462 $252,109 $50,422 $50,422
Legacy -- Extend usage 425,000 85,000 $8,704,000 $1,740,800 $1,740,800
2001 leads 133,432 36,027 $3,689,165 $737,833 $737,833
840,690 328,222 $33,609,933 $6,721,987 $29,311,324
*$102.40 = 2.1 Rx
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Relative Spending
• Acquisition/retention percentage does not include DRTV roll-out
• User type reported at per-user level
• New user/current user will be reported at the database level when
this field is populated
• Allegra user/non-user will be reported at the database level when
this field is populated
• Spring/fall media does not include DRTV roll-out and to be
allocated based on client request
Acquisition 47% Retention 53%
Heavy/super heavy user 87% Moderate/lite user 13%
New user TBD Current user TBD
Allegra user TBD Allegra non-user TBD
Spring media Target 60% Fall media Target 40%
Allegra DR Budget Summary 2002
2002 Direct Response & Digital Budget Estimated Cost
Working Media $8,150,000
Fulfillment/Retention $8,664,737
Hibbert - Estimate based on current program $600,000
OOP (stock photography, art, mock-up) $100,000
Be Now/Database Maintenance TBD
Projects $500,000
DRTV Fall Rollout $1,500,000
CVS Program $40,000
Sweepstakes Program $100,000
Clarinex Defense Plan $400,000
Conversion Research OOP $75,000
Tracking Study $125,000
Partnerships/Web Awareness Campaign $300,000
Total Estimated Allegra DR Budget $20,554,737
Total Budget Allowed $20,000,000
Over Budget ($554,737)
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Research And Data Analysis
Recommendations
47
Customer Knowledge Tool Use of Tool
What criteria do we use to gauge a customer's
value? DWW Market Profile
Explores behavioral and demographic differences as
captured in the database
Gender? Self-reported usage, symptoms? Contact
history?
Overlay data adds to picture -- determine if there is
another way to classify or identify people
Will a user prove to be more valuable over time?
Where are Allegra sales coming from? Switchers?
NRx? Refills? What is refill frequency and
seasonality
NDC/IMS -- transactional
data at the pharmacy level
Information about overall usage patterns to delineate
current customer value/potential customer value. Provides
Rx transaction data, market share, sales volume, source
of Rx, cash paid status, who wrote the prescription.
Depending on reports purchased, may contain
compliance and persistency data
When does switching occur? When are users most
vulnerable and apt to switch? What are their usage
patterns over time? Is there a difference between
EXTRAS members and non-members? Between
redeemer and non-redeemer behavior User Longitudinal Tracking
New, ongoing primary research. Tracks the consumer
experience, usage behavior and satisfaction with the
product through their entire lifecycle. Includes EXTRAS
members as well as users in the general environment
Describe, better understand customer behavior in the general environment
Allegra Information Needs
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EXTRAS Program Design Needs Tool Use of Tool
Who is most likely to consider Allegra and/or the
EXTRAS program?
Clear Perspectives
Segmentation Study
(Prospects)
Defines and describes sufferers/medicators in the general
market. Understand their needs and attitudes. Use this to
assist with relevant vocabulary/messaging
How can this program be improved? Would I repeat
this tactic? DWW Program Evaluation Assesses the results and value of the program
When and how long does it take to convert a
prospect to user? What drives that conversion?
Doctor? Incentive?
DWW User Conversion
Study
Assesses the process from hand-raising in the EXTRAS
program to Allegra trial
When does switching occur? When are users most
vulnerable and apt to switch? What are their usage
patterns over time? What are the most relevant
messages? Which EXTRAS offer keeps the user
more engaged in the program?
User Longitudinal Tracking
(can be integrated into
Habits and Practices
Study)
Tracks the consumer experience, usage behavior and
satisfaction with the product through the usage lifecycle --
from the point of product trial going forward
How do Allegra users compare to the URA target
market -- are they more desirable and a target for
competitive conquesting? Which segments are
responsive to which executions? How does EXTRAS
participation vary by segment? How does
profitability? Which segment is most vulnerable? DWW Segmentation Model
Breaks database into clusters for meaningful EXTRAS
treatment. Benefits are allocated, database routines are
programmed as result.
Allegra Information Needs
How do we use knowledge of the consumer to drive program design?
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EXTRAS Evaluation Tool Use of Tool
Is the acquisition media performing? DWW Media Metrics Provides CPL, CPM, Response rates
How can this program be improved? Would I repeat
this tactic? DWW Program Evaluation Assesses the results and value of the program
ROI: How does the EXTRAS program increase
sales? Profitability? ROI Calculation Program takes credit for incremental sales only
Cost equation includes CPL, program and redemption
costs.
Revenue equation includes conversion rate (conversion
study), refill rates (sales data), dollars per script
Allegra Information Needs
50
Recommended Research
• Continuous and longitudinal tracking
– Follows handraisers through process of physician contact through
to conversion
– Understand the process of conversion
– Follows users through life with brand
• Understand usage patterns
• Understand satisfaction
• Understand responses to loyalty efforts
• Program concept evaluation
– Assesses whether the program and exceptional elements can
meet their objectives
– Provides the necessary consumer input to refine efforts before
placing in-market
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Next Steps
• Determine pool of potential extras from partners
• Agree to budget allocations
• Determine Research Investment
