Bm512 b525 t5_l_v002

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


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?


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


TO EARN CUSTOMERS’ TRUST EVERYDAY

The portfolio vision


“Businesses generate up to

90% of their profits from

fewer than 20% of their brands”

Aaker

The Challenge – Building a Portfolio for the Future


Core Non-Core

Power Brand

Power Brand

Sleeper Brand Slider

Brand

Discarded Brand

Soldier Brand

For example: The DLG Portfolio


Align your brands to customer segments


12

Align your brands to customer segments


Brand differentiation in practise


Promise

Character

Insight

Substance

Ambition

Target audience

Audience Insight

Insurance Insight

Pulling our brands apart…


Portfolio evaluation: Key portfolio concerns


Mar

ket

Gro

wth

Rat

e (C

ash

Usa

ge)

Divest

Invest or Divest?Invest

Milk

Low HighLo

wH

igh

Portfolio evaluation framework


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


Let's now turn to product portfolios…


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


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


+

Customer InsightUnderstanding your customers

and their needs

Market InsightUnderstanding the gap in the market

A proposition built on a consumer insight


Consumer insight in action – Dirt is Good


Managing products over time


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


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?


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


product, what offer and when to cross-

sell


product, what offer and when to up-sell


product, what offer and when to up-sell


product, what offer and when to retain


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



End of presentation

Bm512 b525 t5_l_v002

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