Frans Cornelis

799 views

Published on

  • Be the first to comment

  • Be the first to like this

Frans Cornelis

  1. 1. building superior brands... while focusing on accountability of promotional expenses and investments Frans Cornelis managing director Group marketing and communications NIMA Expert Class Accountability – December, 2009
  2. 2. marketing basic philosophy 4 x “P” Process P = price = what you ask development in return for your product (a fee, a percentage, other P = product = what you offer elements like service (in our case, services! And not costs, memberships, or just services, it is a whole method barter elements) of working, which is what we Accountability: call a “Concept”) - Contribution - Direct Product Profitability P P Accountability: Cval, Depreciation, many others, see also price - Act. Based Costing see also Product Own people development P = promotion = how you ensure people know about your product (and how you make them P P P = place = how you offer product in all the places and moments desire your product more than where it is needed anyone else’s, by using PR, (branches, people, advertising, sponsoring, all web, business partners, other brand building actions) channels, licencees, franchisees….) Accountability: Providing physical Accountability: - See this presentation! evidence Channel costs, Transport & Service costs, Training costs, etc 2 December 2009 NIMA Expert Class Accountability
  3. 3. “promotion” accountability - basics • focus on accurate costs measurements, versus: • accurate effect measurements • costs: set up a proper measurement system • effects: count resulting additional gross margin or Ebita, NEVER just additional revenues • involve your control/finance department • involve your agency/advisors/suppliers • next sheets: Randstad examples 3 December 2009 NIMA Expert Class Accountability
  4. 4. how society sees a corporate identity (2003 actual service industry example - based on Leeflang/van Riel/Fombrun/Cornelis) Clear Message Reinforce Satisfaction Correlation plus the right with the result factors Sufficient spending image (experience) 20 to 25% 20 to 25% 50 to 60% (Potential) Clients -58% (Talent/Flexworkers) Overall view (Potential) Work in a (mass) market environment - 10% by the general (Potential) public Investment - 14% Social/Political Image - 12% NB: others - 6% On the vertical axis 4 December 2009 NIMA Expert Class Accountability
  5. 5. also a guide for investments and ROI! Clear Message Reinforce Satisfaction Correlation plus the right with the result factors Sufficient spending image (experience) 20 to 25% 20 to 25% 50 to 60% (Potential) Clients -58% (Talent/Flexworkers) Overall view (Potential) Work in a (mass) market environment - 10% by the general (Potential) public Investment - 14% Social/Political Image - 12% NB: others - 6% On the vertical axis 5 December 2009 NIMA Expert Class Accountability
  6. 6. what are the tools used? Clear media and DM Consistent and Strong concepts that advertising defined Brand image are executed in a messages projection long term superior way (=resulting in high customer satisfaction) Marcom Labor market Consistent and Best people methods communications in defined Brand image in selecting, Int. comm media and PR etc projection long term motivating, promoting + etc plus meaningful HR work (=high employee satisfaction) Ext. Specific IR press Consistent and Strong management Comm meetings, annual defined Brand image of operational results + report, one-on-one’s projection long term and shareholder value IR etc Active press, PA Consistent and Achieving effects in Ext. coverage of defined defined Brand image society on desired Comm, PA issues vs projection long term issues stakeholders 6 December 2009 NIMA Expert Class Accountability
  7. 7. how society sees a corporate identity Clear Message Reinforce Satisfaction Correlation plus the right with the result factors sufficient spending image (experience) 20 to 25% 20 to 25% 50 to 60% (Potential) Clients -58% (Talent/Flexworkers) mostly mostly mostly (Potential) Work awareness image operations environment - 10% related related related (Potential) Investment - 14% Social/Political Image - 12% NB: others - 6% On the vertical axis 7 December 2009 NIMA Expert Class Accountability
  8. 8. what gets measured, gets done: actual examples Clear message Stressing the Satisfaction plus sufficient right image with the result (ad) spending components (experience!) 20 to 25% 20 to 25% 50 to 60% TNS KPN Teleco m, Siem ens, Microsof t, HP en IBM are the strongest brands Decision makers TNS various okt-00 sep-01 okt-01 Vaste Tele com 100 KPN Telecom n =966 n=857 n=972 Hewlett-P ackard Mobiele Telecom Microsoft Top of mind Spontane Geholpen Top of mind Spontane Geholpen Top of mind Spontane Geholpen Siemens Computermarkt IBM 2000 Merk bekendheid bekendheid bekendheid bekendheid bekendheid bekendheid bekendheid bekendheid bekendheid Hi UPC KPN 50% 72% * 46% 71% * 53% 76% * Libertel 0244 CM (v/h 0403) (Potential) Brand Vitality KPN Telecom 4% 14% 98% 4% 10% 96% 3% Dell 19% 96% KPN Mobile PTT Telecom 0% 12% 5% 22% * 76% 0% 7% 3% 10% * 86% 50 0% 8% 12% Apple 84% 19% * Compaq Ericsson Nokia  % Beantwoording < 20 sec.  Intel Toshiba Hi 0% 5% 77% 0% 3% 79% 1% Tele2 10% FlexiBel Dutchtone 75% % Klanttevredenheid over totale keten Customers -58% Versatel Ben Tulip Hi <34 jr Libertel 10% 60% 96% 0% 8% 6% 49% 91% MCI Worldcom Novell 97% 7% Iomega 0% NEC 11% Digital 50% 92% Fujitsu 96% Telfort Olivetti  % Tevredenheid advies verkoper ©Copyright 2001 Consult  AT&T One.tel Telfort 3% 33% 93% 3% 26% 94% 3% Lucent Technologies 30% Lotus 91% % Maken tweezijdige afspraak net promotor score Dutchtone 2% 33% 86% 2% 28% 88% 2% 33% 86% BT/British Telecom  0 0 % Nakomen tweezijdige afspraak BAV Ben 4% 54% 90% 7% 44% 91% 4% 51% 90% 50 100 Vodafone 0% 2% 51% 0% 3% Brand Sta ture 47% Orange 0% 0% 26% 0% 1% 27%  % Goed functionerend opleveren sales growth Q 0% 0% 8% 0% 1% 8% One.Tel 5% 17% 66% 3% 10% 67% 3% 16% 66%  % In 1x goed functionerend opgeleverd Tele2 8% 23% 75% 15% 29% 85% 12% 33% 81%  % Tevreden over factuur pricing power Versatel 0% 3% 37% 0% 1% 43% 0% 5% 46% Priority Telecom Scarlet 0% 0% 0% 1% 17% 12% 0% 0% 0% 0% 12% 12% 0% 0% 1% 1% 14% 9%  % Tevreden over levering Primus 1633 0% 2% 13% 0% 1% 7% 0% 1% 7%  % Tevreden over monteur (Potential) Effect measure- annual HR Reputation Employees - 10% ments of job ads, culture survey employee Best plave to work Index Pulse turnover RI (Potential) Reputation share Investors - 14% e.com ranking Index Pulse performance Reputation MSCI, DJSI, Social/political Factiva ranking Index Pulse GRI, issue list Image - 12% 8 December 2009 NIMA Expert Class Accountability
  9. 9. Randstad global marketing cost categories (managed for marketing by F&A depts) Outdoor window / street media TV media (including cinema) Radio media In-store merchandising and branding mat. External design and production expenses Market research Sponsoring and Public relations Relationship management expenses Consultancy costs Corporate branding charge Monthly advertising and marketing costs Monthly external & supportive expenses One-off project expenses Advertising and marketing expenses Revenues Expenses marketing personnel Adv. expenses as % of revenues A&M exp.&pers. exp. as % of revs Supportive exp. as % of advertising exp. Supportive expenditure ('overhead', goal max. 11%): external design and production expenses, market research, consultancy costs and various advertising costs 9 December 2009 NIMA Expert Class Accountability
  10. 10. 2002 B2C indirect benchmark • Actual example of external benchmark • (10 similar companies) • Interesting specifics: Trade spending, sales force and promotions • TV use • Light market research but still 2% • Compared with packaged consumer goods: even heavier advertising and trade spending 10 December 2009 NIMA Expert Class Accountability
  11. 11. shareholder value champion: benchmarks for judging internal marketing efficiency Efficiency action By whom? Concept & Production costs Above the line: gross media and awareness/image Media rebates (15-50%) CMO sponsoring Total spending level BU costs Planning efficiency BU Overall agreements CMO Below the line: costs of CRM, DM Response, etc. BU Direct Mail, Campaign evaluation BU brochures, Evaluation policy, partners CMO relationship mgmt etc. Measure 1-2% Financial discipline All 85% minimum 15% 11 December 2009 NIMA Expert Class Accountability
  12. 12. supportive external marketing expenditures as % of total marketing expenditures (“overhead”): what does that look like? 40% 35% 30% 25% 20% 15% 10% 5% 0% actual sheet with %”supportive costs” from one year to the next by country Fr m Sw ark K y L* ch L Po n nd Be D E n Su l Po ada en e Ca T ch c Ca SA ce er ly A a an Ya t N U Ya pa e D iss ai T iu W ug a RN an ed la R- U m Sp It lg t m n M rt G 12 December 2009 NIMA Expert Class Accountability
  13. 13. tool to drive down internal costs: web-based international MRM system • ‘one brand, one voice’ • central design, central sourcing • webshops for photo database, designs, marketing materials, housing and branding elements • design wizards • uniformity/consistency • headcount savings -/- 20 % • savings design/printing/other -/- 25 % 13 December 2009 NIMA Expert Class Accountability
  14. 14. example: web communications toolkit web getting close to other mass media in reach and efficiency important for image building also network- centered functions grow (“web 2.0”) marketing techniques becoming more known 14 December 2009 NIMA Expert Class Accountability
  15. 15. awareness: tools, initial USA cost estimates examples from work sessions – in CPM, reach (cost per thousand, subjects reached/contacted) TV advertising Peak, all public $27 > 1.000.000 Radio advertising Peak, AB+ (AM drivetime) $6 >100.000 Web newsletter ad AB+ business audience $24 >100.000 Newspaper ads Upmarket adults $39 >1.000.000 Magazines Upmarket adults $22 >50.000 Outdoor adv. Large $728 >>500.000 Event sponsoring Golf event $500.000 approx 30 Event sponsoring Concerts (popular/stadium) $1.000 approx 40000 Trade show Branded Booth + sponsor $5.000 app. 300 - 5000 Seminar Regional/community $10.000 50 max Club/comm. Sponsor Business club $50.000 200 max Club/comm. Sponsor 4th July concert $100 5000? DM only small $1.100 any number DM + gift national $3.500 any number Sales call Phone $10.000 any number Conclusion: awareness effects vs costs of various marketing communications tools vary widely. Selection of optimal tool critical, mass media can be very efficient if scale, circumstances permit efficient use 15 December 2009 NIMA Expert Class Accountability
  16. 16. awareness related to media planning efficiency € 1.400.000 100% € 1.260.000 90% € 1.120.000 80% € 980.000 70% € 840.000 60% € 700.000 50% € 560.000 40% € 420.000 30% € 280.000 20% € 140.000 10% €- 0% 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 48 50 52 2 4 6 8 10 12 14 16 18 20 22 24 bruto best. Vedior bruto best. Adecco bruto best. Randstad bruto best. Content bruto best. Manpower bruto best. Start bruto best. Tempo Team evoked set Randstad 'voor uitzendkrachten' evoked set Adecco 'voor uitzendkrachten' evoked set Content 'voor uitzendkrachten' evoked set Manpower 'voor uitzendkrachten' evoked set Start 'voor uitzendkrachten' evoked set Tempo Team 'voor uitzendkrachten' evoked set Vedior 'voor uitzendkrachten' 16 December 2009 NIMA Expert Class Accountability
  17. 17. effects can be predicted fairly accurately Tracked versus Modelled Awareness actual campaign example 60 1000 50 800 40 Source: Mindshare ATG 600 Awareness GRP 30 and KPN Corporate 400 Marketing department 20 2000 200 10 0 0 mrt-99 mrt-00 dec-98 mei-99 sep-99 dec-99 okt-98 mei-00 sep-00 apr-99 apr-00 nov-98 nov-99 aug-99 aug-00 jan-99 jun-99 jul-99 jan-00 feb-00 jul-00 17 December 2009 NIMA Expert Class Accountability GRPs Base Level Frequency Model GRP Model Tracked
  18. 18. Spontaneous awareness vs Visits Númber of Visits 80,00 50 Spontaneous 40 Conocimiento Spontaneous Awareness 60,00 Awareness Espontáneo Randstad 30 40,00 Randstad 20 Average 20,00 Media Awareness 10 7 largest Conocimiento 7 0,00 0 Grandes Visits needed a a il la za Visitas ag on from Prospect to go Big city 4 ev al el ra S necesarias P a Big city 1 M rc Active client City 5 Za Ba A (media 2003) City 2 City 3 City 6 City 7 Region Conclusion: higher awareness = easier sales process effects of NB: disguised data awareness Awareness with Decision makers, Relationship of awareness and sales visits mid 2003 Correlation Coefficient = -0.91 PS: measure in terms of sales costs effect, 18 December 2009 NIMA Expert Class Accountability NOT revenues!
  19. 19. effect of Micro Marketing test actions - USA get get fill make make appoint- new Bill ! database calls match ment order with media before during campaign Medium city 1 2,6 1,2 Medium city 2 1,9 1,4 Major city 3 6,6 3,3 control group Medium city 4 1,8 1,9 Medium city 5 2,7 3,7 19 Major city 6 4,4 4,6 19 December 2009 NIMA Expert Class Accountability
  20. 20. examples from Randstad local actions gross margins Region 1 (€60K investment) Region 2 (€70K investment) 200 000 € 178 600 € 250 000 € 185 440 € 220 670 € 150 170 € 157 690 € 150 000 € 176 800 € 159 470 € 200 000 € 146 750 € 139 740 € 2004 150 000 € 126 080 € 149 220 € 2004 100 000 € 112 060 € 2005 100 000 € 2005 50 000 € 96 440 € 94 000 € 71 840 € 50 000 € 73 140 € 0€ 0€ Avril Mai Juin Juillet Avril Mai Juin Juillet Période Période Region 3 (€60K investment) 300 000 € 243 770 € 272 880 € Conclusions: 250 000 € 224 690 € 242 850 € 196 060 € - sales, margins, productivity in action areas 236 890 € 200 000 € 2004 150 000 € 166 250 € 181 260 € significantly higher increase than Opco or 100 000 € 2005 market average 50 000 € 0€ -margin boost easily pays for campaign Avril Mai Juin Juillet Période 20 December 2009 NIMA Expert Class Accountability
  21. 21. conclusions • it is not difficult… • but it takes: • time! • consistency • perseverance • breaking through the silos • the benefits: • added up it can make a difference of 50% to 100% in effectiveness 21 December 2009 NIMA Expert Class Accountability
  22. 22. shaping the world of work

×