This engagement was by Synergy Direct Response on behalf of their client My Hearing Centers. The assignment was to determine why Synergy's direct marketing response rates were only 0.10%, far lower than category average response rates. Market research revealed several underling issues which were addressed with recommendations for improvement, including positioning, product mix, geographic retail locations. Also included are target audience analysis and segmentation, key messaging, market trends and media consumption habits of target audience.
4. Key observation #2 – Marketing to the right demo with
the right messages will improve success
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Source: Scarborough, 2012, Release 1;
forbes.com, “Gen X is from Mars, Gen Y is from Venus”, Jan. 2014
#1 Baby Boomers Profile (primary target)
• 81MM or 26% of the U.S. population
• Born between 1946 – 1964; in their 50s and 60s
• 10,000 are turning 65 everyday for the next 15
years
• Internet savvy, health conscious
• TV viewing
– Movies (57%)
– Local evening news (53%)
– Comedies (47%)
– Local morning news (44%)
• Radio
– Adult contemporary (30%)
– News and talk (28%)
– Classic hits (25%)
• Newspaper
– National news (28%)
• Online
– Travel reservations (23%)
– Medical information (14%)
#1
#2 Silent Generation Profile
• 20MM or 6% of U.S. population
• Born between 1928 – 1945; in their 70s
and 80s
• Second smallest generation born in the
U.S. due to the depression
• In 2010, for the first time, the median net
worth of households age 75+ ($228,400)
was higher than that of any younger age
bracket
• Many routinely pay for extended‐family
vacations or subsidize their grown Boomer
or Xer kids
#2
#3 Generation X Profile
• 88.5MM or 28% of U.S population
• Born between 1965 – 1980; in their 30s
and 40’s
• Value freedom and autonomy to achieve
desired goals and often prefer to work
alone rather than in teams
• Dislike “meetings about meetings” and
don’t want or need face time
#3
5. Key observation #2, cont’d – Boomers
Boomers are the primary target audience
• 33% of the 195 million Internet users in the U.S. are
over 50 years old
• 82% of the 82 million U.S. Boomers use the Internet
to research health and wellness information
• Two‐thirds of Boomers shop online
• 36% of Boomers own a smartphone
• Almost half access the Internet with their smart
phone daily
• 62% have broadband at home
• 43% have wireless home network
• Almost 30 million Boomers engage in social
networking sites
• 50% of Boomers expect to live until they’re 90
Sources: Pew Internet & American Life Project
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6. Key observation #3 – Top 10 boomer DMAs vs MHC
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Top 10 Affluent Boomer DMAs:
Top 10 Boomer DMAs
DMA
Number of Baby
Boomers
% of DMA
Adults
Index
(US = 100)
Washington 1,758,300 36.0% 104
Boston 1,800,100 36.0% 104
Philadelphia 2,179,100 35.4% 102
S.F.‐Oakland‐San Jose 1,916,700 35.4% 102
New York 5,676,000 35.1% 102
Chicago 2,504,600 34.4% 99
Atlanta 1,670,600 34.4% 99
Houston 1,571,100 34.0% 98
Dallas‐Fort Worth 1,760,800 33.4% 97
Los Angeles 4,409,900 32.7% 95
DMA
Number of Baby
Boomers
% of DMA
Adults
Index
(US = 100)
Washington 866,900 17.7% 214
S.F.‐Oakland‐San Jose 861,600 15.9% 192
Boston 705,200 14.1% 170
New York 2,140,000 13.2% 159
Philadelphia 708,700 11.5% 139
Houston 484,800 10.5% 126
Los Angeles 1,365,200 10.1% 122
Atlanta 482,600 9.9% 119
Chicago 719,400 9.9% 119
Dallas‐Fort Worth 509,300 9.7% 116
Affluent Boomer DMAs ($100,000+)
Source: Scarborough, 2012, Release 1
Chicago
Atlanta
Los Angeles
Houston
Philadelphia
New York
Boston
Washington
Dallas‐Fort Worth
My Hearing
Centers (MHC):
S.F.‐Oakland‐San Jose
9. Key observation #5, cont’d: Consumer’s journey –
here’re the basic steps and MHC activities
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Awareness Counseling Treatment Rehabilitation
MHC Consumer
Activities
Education
• Promote vanity and
financial appeals
• Print, online and mobile
advertising, direct mail
• Offer: Simple, free,
convenient in‐person or
online assessment. (e.g.,
Online: 10‐word test video)
Education/Evaluation
• Promote vanity and
financial appeals
• Develop “lifestyle” campaign
• Free lunch/dinner seminars
• Complimentary electroacoustic
hearing aid analysis
• Complimentary video otoscope
• Other valued offers/services
Promote
• Vanity and financial Appeals
• Develop “Lifestyle” campaign
that overcomes vanity and the
stigma of hearing aids
• 36‐months free financing
• Buy one get one 50% off
• $500 off any purchase
• No payment for 90‐days
Promote
• Reinforce vanity appeals
• Free adjustments for life
• 50% off repairs
• 30% off upgrades
13. Key observation #7 – U.S. hearing aid CAGR
Hearing aid sales
• Total hearing aid unit sales increased
almost 5% to 2,990,104 units in 2013
– 90% of all hearing aids dispensed are digital
– 75% of all aids featured wireless technology
– 35% to 40% of population aged 65+ are
hearing‐impaired
– 20% of hearing‐impaired use a hearing aid
– Average age of first‐time user: 69 (USA)
– Average age of all users: 72 (USA)
• Key drivers
– Maturity of market – 2 billion mature
consumers in 2047
– Third‐party payment
– Penetration rate – access to distribution
2.8%
3.0%
2.9%
4.8%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
2010 2011 2012 2013
Category Annual Growth Rate
Hearing Aid CAGR by Year
Hearing Aid Unit Sales Growth
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Sources: Hearing Review, “Hearing Aid Sales Rise 5% in 2013; Industry Closes in on 3M Unit Mark.” Karl Strom, Editor‐in‐Chief, Feb. 26, 2014
“Trends and directions in the hearing healthcare market”, William Demant, 2012
15. Key observation #7, cont’d – 2013 hearing aid market
by device type
Key market drivers
• Open‐fit and RIC/RITE‐type aids
• Feedback and speech‐in‐noise
algorithms
• Wireless technology
• Emergence of retail giants (most
notably Costco)
• Binaural usage rates
RIC/RITEs, 52% or
1.5MM units
Traditional BTEs, 22% or
657.8K units
Full‐Shell ITEs, 8% or
239.2K units
ITCs, 8% or
239.2K units
CICs, 6% or
179.4K units
Half‐Shell ITEs, 4% or
119.6K units
2013 Hearing Aid Unit Sales by Type
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Source: HearingReview.com, “Hearing Aid Sales Rise 5% in 2013;
Industry Closes in on 3M Unit Mark”, February 26, 2014
16. Key observation #7, cont’d – hearing aid market by
distribution channel
Situation
• In 2008 . . .
– Audiologists fitted 31.2% of all devices, an
improvement of 6.3% from 2004
– Hearing aid specialists saw a decline of
9.5% to 27.5%
– Veterans Administration saw slight decline
of 0.4% to 14.5%
– Ear doctor offices saw 0.6% gain to 9.2%
• In 2012 . . .
– Independent dispenser channel was still the
most popular
– Retail chain segment becoming global
– Costco becomes one of the largest hearing
aid retailers with over 500 in‐store hearing
booths and audiologists
– Walmart and Sam’s Club are following
Costco’s lead
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
2000 2004 2008
Hearing Aid Source of Distribution
Audiologist's office #1 Hearing aid specialist office #2
Veterans administration #3 Ear doctor's office #4
Mail order #5 Wholsale club #6
Department store #7 Clinic #8
Military installation #9 Hospital #10
Family doctor's office #11 Drugstore #12
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20. Key observation #8, cont’d – Brand differentiation &
positioning
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MHC’s logo “symbol” and blue color
scheme are confusingly similar to
“HearingPlanet.” Plus, all brands reviewed
use the color blue, further reducing brand
differentiation.
The color “blue” symbolizes trust, loyalty,
wisdom, confidence, intelligence and truth
– all positive attributes. And, “blue” is
considered beneficial to the mind and body.
It’s easy to understand why category
brands use blue. Unfortunately, blue is a
masculine color – potentially not
connecting with half the target market.
The tagline, “We Change Lives Through Better
Hearing,” is a nice promise. And, one the
Company delivers on. Unfortunately, it is
confusingly similar to, “Welcome to a world of
better hearing,” from HearingPlanet and does
not sufficiently differentiate the brand.
The logo “symbol” (sphere) is impersonal
and a disconnect with “My” Hearing
Centers. The symbol should key off of “My”
not “Hearing” to help humanize the brand.
MY HEARING CENTERS
We Change Lives Through Better Hearing.
This tagline is emotional. It acknowledges
each consumer deals with hearing loss in their
own way and timeframe – further humanizing
the brand. The combination of color and
tagline reduces anxiety and promotes a more
caring and relaxed atmosphere. It’s
appropriate for a vanity appeal.
When you’re ready to hear what you’re missing.The More Affordable Hearing Centers.
Green symbolizes harmony and freshness. It
has a strong association with safety and the
power of healing. It is the most restful color
to the human eye. Green is appropriate for
promoting drugs and medical products and
will help differentiate the brand from the
competitive set. It is not gender specific.
This logo “symbol” quickly and easily
humanizes the “My” in the Company name. It
is gender, race and generation neutral and can
be interpreted to include everyone.
This tagline is rational. It directly addresses
the #1 consumer barrier to purchase: “Cost”.
It clearly differentiates the brand from the
competitive set and positions it as “cost
sensitive.”
21. Key observation #8, cont’d – Brand differentiation &
positioning
Miracle Ear does not have a tagline – it doesn’t need one.
It’s brand name communicates the benefit
HearingPlanet does need a tagline, “Welcome to a world of
better hearing”. It communicates an emotional benefit
My Hearing Centers, “We Change Lives Through Better
Hearing” tagline communicates an emotional benefit. But,
the logo symbol, tagline and color are confusingly similar to
HearingPlanet
Sonus uses a rational descriptor, but there’s no benefit
associated with it
My Hearing Centers should consider refining its brand
identity
• Create more distinction from the sea of “blue”
• Acknowledge the #1 consumer barrier is “cost” and position
the brand as, “Cost Sensitive”
• Deliver on this promise with a variety of consumer financing
and discount offers
Emotional
Rational
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22. Key observation #8, cont’d – Brand differentiation &
positioning
Miracle Ear does not have a tagline – it doesn’t need one.
It’s brand name communicates the benefit
HearingPlanet does need a tagline, “Welcome to a world of
better hearing”. It communicates an emotional benefit
My Hearing Centers, “We Change Lives Through Better
Hearing” tagline communicates an emotional benefit. But,
the logo symbol, tagline and color are confusingly similar to
HearingPlanet
Sonus uses a rational descriptor, but there’s no benefit
associated with it
My Hearing Centers should consider refining its brand
identity
• Create more distinction from the sea of “blue”
• Acknowledge the #1 consumer barrier is “cost” and position
the brand as, “Cost Sensitive”
• Deliver on this promise with a variety of consumer financing
and discount offers
Emotional
Rational
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MY HEARING CENTERS
The More Affordable Hearing Centers.
23. Key observation #8, cont’d – Brand differentiation &
positioning
Miracle Ear does not have a tagline – it doesn’t need one.
It’s brand name communicates the benefit
HearingPlanet does need a tagline, “Welcome to a world of
better hearing”. It communicates an emotional benefit
My Hearing Centers, “We Change Lives Through Better
Hearing” tagline communicates an emotional benefit. But,
the logo symbol, tagline and color are confusingly similar to
HearingPlanet
Sonus uses a rational descriptor, but there’s no benefit
associated with it
Alternatively, My Hearing Centers should consider refining
its brand identity by leveraging the #2 consumer barrier –
vanity
• This approach clearly differentiates the MHC brand
• You can’t win the product/price war, so why try – you can win
by being different
• Reduce the stigma associated with hearing aids by using
celebrity spokespeople
Emotional
Rational
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When You’re Ready to Hear What You’re Missing.
MY HEARING CENTERS
25. Key observation #9 – My Hearing Centers’ website
Design and layout should be more contemporary and
friendly (check out Miracle Ear, it’s a good example)
Considering 82% of Boomers use the Internet to
research health and wellness information, content
should be broader and deeper
• Benefits of doing business with My Hearing Centers
• Why MHC is different
• Brands and types of hearing aids
• What’s best for me and my budget
• State‐by‐state financial assistance links
• Trends in the industry
• R&D developments – what’s next
Uneven quality of videos
• When enlarging some home page video (screen right), they’re
very grainy and of poor quality – suggesting the brand may
have quality issues
No social media – further dating the brand
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MHC’s current home page – uninviting, unattractive.
26. Summary & recommendations
Summary of key observations
1. Consumer inertia is the number one
marketing problem
2. Baby Boomers are the core target
3. My Hearing Centers are located mostly in
2nd and 3rd tier markets
4. Most popular devices are RIC/RITE,
outpacing traditional BTEs by 2:1
5. Brand image and identity need help
6. Website design, layout and content need
help
• Video quality is uneven
• Lack of social media significantly dates
site and brand
• Site should also be mobile friendly
Recommendations
1. Boomers are age sensitive. Consider
developing a “lifestyle” campaign that
overcomes vanity and the stigma of hearing
aids associated with old, frail, weak people
2. Expand the brand into DMAs with high
concentrations of hearing impaired
consumers
3. Heavy‐up on RIC/RITE products by providing
multiple brands (3‐4+) of devices
4. Refresh brand image and identity as
suggested earlier. Consider using Merrill
Osmond as official spokesperson and face of
the brand
5. Website needs a complete refresh. Consider
developing mobile app for consumers to test
hearing on the go
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