Creating a Global Content Value Chain

Dmitri Ragano Senior Manager of Content Management, Herbalife

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Background on Herbalife

A Leading Global Nutrition Company •  Herbalife protein shakes and snacks, vitamins and nutritional supplements,

sports, energy and fitness drinks, skin and hair care products, combined with healthy eating and exercise, can help you live a healthy, active life.

•  Publicly Traded on NYSE since December 2004

•  78 Countries

•  2.5 million independent Distributors

•  4500 employees

•  Part of a $118 billion direct sales industry (worldwide)

•  $4.3 billion in retail sales in 2010; net sales $2.7 billion

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Herbalife is at the intersection of three global megatrends

Obesity Aging

Population

Under Employment

Global Mega Trends

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Herbalife web properties – a global channel for our mission to provide nutritional products and business opportunity

MyHerbalife.com

iChange

Herbalife.com

Herbalife Sports

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My Background •  Senior Manager of Content Management and Interactive Technologies at

Herbalife

•  Previously Director at Razorfish, leading Web Projects for multi-national clients such as Sony, Charles Schwab, Nissan and Vodafone

•  Five years working in Japan as translator, reporter and technology consultant

•  Screenwriter, journalist and author. “Employee of the Year”, a mystery novel, published in September and available on Amazon.com

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Defining the Global Content Value Chain •  A strategy, organization and ongoing operational process to ensure your

content supports your goals reaching global audiences

•  An understanding across the various business functions (Finance, Sales, IT, etc.) that content is a key part of the company’s brand equity and intangible assets

•  A recognition that we’re all media companies now. Being a media company means taking a disciplined approach to the creation, distribution and cost-benefit analysis of global content operations

•  A realization that everyone’s a potential publisher (employees, stakeholders, customers), so there better be a plan to train, partner and support them around the creation and use of company content

•  A culture and infrastructure that can communicate central business and brand objectives globally, while at the same time incubating and evangelizing content innovations that start at the local and regional level

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Creating a Global Content Value Chain – where do we start?

•  Why – Establishing the business drivers behind Global Content ROI

•  Who – Defining the Global Content Organization

•  What – Architecting the Systems and Technology for Global Reach

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A threat and opportunity: Content audiences are growing fastest in the developing world – ignore them at your own peril

Key emerging markets are adding users faster than US in Internet, ���search and social media.

Source: Mary Meeker, Kleiner Perkins

Internet growth

Social Media

Top Web sites

“We’re opening an office in Mongolia… make sure the web sites are live with well-optimized

Mongolian content.”

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Global content unleashed: the genie has officially left the bottle

Herbalife.com site on CMS-driven platform went live in first market in 2009. By early 2011, there were more than 60 Herbalife country sites managing local content.

United States Romania Italy Sweden

Greece South Africa Russia

Brazil

Korea

Mongolia Argentina Vietnam

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Responding to the surge in global content consumption – will you be ready when they come? In our top ten markets alone, we’ve seen a net increase of over 1 million monthly visitors since last year

HL Country Sales Leaders MyHerbalife monthly visits

Vs Prior Year Herbalife.com monthly visits Vs Prior Year

US

Mexico

Korea

Brazil

Taiwan

India

Italy

Russia

Malaysia

Venezuela

1.4M

174K

242K

222K

69K

44K

109K

54K

38K

79K

55%

102%

83%

34%

31%

305%

48%

231%

378%

39%

492K

72K

158K

186K

NA

NA

NA

54K

NA

24K

24%

38%

70%

34%

NA

NA

NA

20%

NA

443%

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600,000+ monthly Google searches for our company name – what information are they looking for?

Analytics, site search and other pattern analysis to optimize global and local content

ROI

Understand our users to

provide only useful

content

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Communicating to an audience spread across 70+ countries is a significant investment – how will you know if your content is relevant?

Business Intelligence, Web Analytics and Content Management now exist in the same division… once content goes global the stakes are too high to proceed without a plan for

comprehensive metrics.

Customer Demographics

Online Behavioral Analysis

Productivity Metrics

Correlating Site Use to Performance

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Ensuring Usability is part of the Content strategy

“ … spending 10% of your development budget on usability should improve your conversion rate by an average of 83%.”

Usability provides a

huge ROI by means of

conversion, retention and

brand engagement

Jacob Nielsen

“The cost of fixing application bugs after Development, is on average 100 times more

Than before development” Human Factors International

Usability Initiatives Personas Surveys and

Analytics User Testing Personas help everyone involved in a project to act with the end user in mind, by providing a simple way to understand different user’s motivations and needs. We are in the process of creating Personas for all major groups at Herbalife.

Constantly listening to the end users is the only way to provide the tools and content our Distributors need to grow their business.

Though currently Focus Groups and User Testing are not part of the standard project life cycle, we are promoting the incorporation of testing on the early stages of all projects.

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Content ROI – Clarity has never been more critical

Considerations for establishing a Content Value Chain

- What are your business objectives and KPIs for global content efforts?

-  What are the universal drivers?

-  What variations exist at regional/local level?

-  What tools will you use to measure success?

-  Surveys

-  Analytics

-  Site search

-  SEO tools

-  Order/Lead funnel conversion

-  Social Media

-  How will you know your content resources productive and focused on the right priorities?

-  Creation

-  Editorial, review and approvals

-  Publishing

-  Technical

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•  Why – Establishing the business drivers behind Global Content ROI

-  Who – Defining the Global Content Organization

•  What – Architecting the Systems and Technology for Global Reach

Creating a Global Content Value Chain – where do we start?

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Global online publishing – the sun never sets

100,000 publishing jobs in our Enterprise ���Content System during first 6 months of 2011.

Online content sites in over 40 languages

Publishing demand doubling every 3-6 months

Peak publishing time is 2 – 4 am PST.

CMS Technical Teams:

US, Mexico, India for continuous publisher support

Content Planning/Creation/Publishing:���Corporate, Regional, Country level

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Wake up call at 3 a.m. – Moscow must be launching a new homepage promotion

• Herbalife digital content activities – publishing to site happens 24-7 worldwide:

–  Overall publishing by region: • 23% North America • 44% Europe, Middle East, Africa • 25 % Asia Pacific • 8% Latin America

• Publishing calendars combine global messaging with local/regional factors

• Centralization versus decentralization – Ongoing experiments with a hybrid approach

• Providing consultation for the world – “What’s our SEO strategy in Mongolia?”

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In a Web 2.0 world, everyone’s a potential online publisher – so you better have a plan to support them

•  Wide range of partners in global content means wide range of skillsets/experience that require training resources for the content tools

•  August Training Sessions (Live, Web):

•  Trainings conducted: 18

•  Invited: 200

•  Attended: 75

•  Countries represented: 28

•  Video Training Library

•  7 Videos (Hours of online instruction)

•  New videos monthly

•  Intranet Wikis, User Surveys

•  Detailed PDF Manuals for all ECM modules

•  Web-based system for distributing key brand assets to Distributors

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Decentralized Model for Content Creation and Publishing

Video Production

MediaBin

Regional Content Publishers

Global Content Publishers

Corp Marketing

Regional Marketing

Business units publish content to web properties (text, PDF, image, Flash and links to video streaming)

Corp Video Publishers

Requests, approvals – shoots edits video within HBN servers

Creates streaming link, metadata for video linking on web properties

Online Video Platform

Video Content Distribution

Network

Content Management System

Brand Asset Management

Technical Support for Publishing

Regional Video Publishers

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Regional Content Creators

Regional Video Requestor

Global/Regional Web Properties

Online Content

Online Video

Corporate Executive Requestor Video

Production

Request video creation

Global/Regional Video Players

Central DSX Publishing Hub for Content/Video

Corporate Content Creators

Content Coordinator

Content Coordinator

Central DSX Publishing Hub for Content/Video

Centralized Model for Content Creation and Publishing

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Editorial calendar: We’re all media companies now, and every media company has a calendar for planned and ad hoc content

1.  Enhance brand awareness (EB)

2.  Protect brand reputation (PB)

3.  Drive leads and sales (DL)

4.  Enhance service to distributors (ES)

5.  Build community (BC)

6.  Enhance public relations (EP)

•  Corralling your global team into a high-level content calendar is challenging, but not impossible. In the long run it will make publishing support easier and yield higher returns for your content strategy.

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Building the Right “Glocal” Content Team

Considerations for your Global – Local Organizational Model

- What roles should have central global, regional, staffing?

-  Editorial strategy/planning

-  Content creation

-  Review/approvals

-  Publishing

-  Technical support

- Is there a global/regional/local division by type of content?

-  Brand, corporate messaging

-  Promotions campaigns

-  Product launches

-  Is there a global/regional calendar for publishing? – if not start one, even if it’s high level

- Do marketing, creative and technical components of content management exist in an integrated group or separate teams?

- There is no one size fits all. The right model depends on your business, culture and organization. You’ll probably have to experiment to find the best balance.

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•  Why – Establishing the business drivers behind Global Content ROI

•  Who – Defining the Global Content Organization

•  What – Architecting the Systems and Technology for Global Reach

Creating a Global Content Value Chain – where do we start?

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Global Content is a multi-channel experience (Video, Text, Brand Assets). Integration becomes a strategic imperative.

Video Production DAM (Digital Asset Management Video Production Servers)

CDN (Video Content Distribution

Network)

OVP (Online Video Platform)

Brand Asset Management

Images, PDF, Style Guides, other Digital Assets

Online CMS

Enterprise Content Management system

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Nutrition Club Search

Good & Bad

Samples

Registration Procedure

Korea Nutri ti on Club Stores

0

200

400

600

800

1000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2008 2007

Core Categories and business drivers are the foundation for taxonomy and metadata strategy

• Product (Supporting the Purchase Experience and Product Marketing campaigns)

• Events (Promote Qualification and Attendance)

• Business Methods – Nutrition Club, WLC, Recipes, Sports Sponsorships (Resources to promote specific DMO Adoption)

• Education (Videos, Flyers, etc) (Providing various Educational materials on Ethics, Product, Science, etc.)

• Brand and Global Messaging (Have you had your shake today? Seed to Feed, Reputation protection) etc.

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DWS  

MyHL  HL  

Minisites  

Catalogs  Events    

         

A Service-Oriented Architecture was a “nice to have” in the past. With the proliferation of platforms (smart phones, tablets) and channels (social media, third party syndication) it is now essential.

Content  Services    Content  +  Rules  

Content  -­‐  Event  Join  US  Event!  

Content  Management  Display  Services  

A  single  display  engine  for  all  apps  

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Is your content ready for a multi-device world?

Herbalife.com

My Herbalife.com

Health Articles

SportsArticles

Recipes

Video

Products

DS Success Stories

SM Content  CollecCons  

HL Mobile

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What’s getting published out there across the world?

Ongoing surveys and reports to find the categories that are driving publishing activity

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Are the same categories driving your video content?

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Preparing your Content Systems for a Global Value Chain

Considerations for your Global – Local Content Systems

- What are your key systems (Content Management, Brand Assets, Video)? How will you integrate them to maximize benefit for global audiences?

- What are the key types of content that resonate globally? Have you gone through the process of mapping your content types to the key business objectives they serve? This is the heart of your strategy for taxonomy and metadata.

- What will it take to move to a service-oriented architecture for your content?

- How ready is your content infrastructure for the demands of new platforms and devices? What types of content and channels will you prioritize moving to this new post-PC world?

- How are you getting information (surveys/reporting) to understand any new trends or patterns in your content taxonomy (including video)? How will you know if certain entities are becoming more or less dominant? How will you know whether demand for a categories is emerging?

- What are realistic ways to take your organization where it needs to go to prepare for the future? Is there appetite for a “Big Bang” approach? Or will it come incrementally, project by project, focused on the highest value content and moving on from there?

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Why It’s Worth It: Because you have a brand and a message – and the world deserves to know about it