1) The document discusses brand and product portfolio management. It covers developing brand portfolios aligned with customer segments and objectives, evaluating brand portfolios, and managing product lifecycles. 2) It also discusses building trust with customers in the insurance industry by being transparent and treating customers fairly. Examples of practices that can create or reduce trust are provided. 3) Customer value management is discussed, including understanding the most profitable customer segments through data analytics, segmentation modeling, and customer lifetime value modeling to optimize marketing activities and target customers.

1. School of Business, Creative Campaigns, Topic 5 – LectureSchool of Business – Creative campaigns – Lecture 5
Creative Campaigns
Brand and product portfolio management

2. School of Business, Creative Campaigns, Topic 5 – Lecture
Brand portfolio management:
Development and rationale of brand portfolios
Strategic alignment of brand portfolios to customers
Objectives/vision for brand portfolios
Evaluating a brand portfolio
Product portfolio:
Developing a new product
Managing the product lifecycle
Evaluating product portfolios
Customer value management
Learning Outcomes

3. School of Business, Creative Campaigns, Topic 5 – Lecture
Different commercial and customer objectives
Unified by a
common
vision/purpose
Vision for a brand portfolio

4. 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?

5. School of Business, Creative Campaigns, Topic 5 – Lecture
Create distrust Creates Trust
1. Haggling
2. ‘Price Shock’ at renewal
3. Ignore loyalty
4. Lack of differentiation
5. Hidden and unfair charges
6. Guilty until proven innocent
7. Lack of communication
8. Rely on small print
9. Jargon & complexity
10. Depersonalised
1. First price best price
2. Fair renewal premium
3. Reward loyalty over NB
4. Differentiate for customers
5. Transparency
6. Pay then prove
7. Keep claimants informed
8. Spirit not letter of law
9. K.I.S.S. – natural language
10. Personal Claims Advisor
The ‘Uncomfortable Truths’ of the Insurance Sector
Building Customers’ Trust

6. School of Business, Creative Campaigns, Topic 5 – Lecture
TO EARN CUSTOMERS’
TRUST EVERYDAY
The portfolio vision

7. School of Business, Creative Campaigns, Topic 5 – Lecture
“Businesses
generate up to
90% of their
profits from
fewer than 20%
of their brands”
Aaker
The Challenge – Building a Portfolio for the Future

8. School of Business, Creative Campaigns, Topic 5 – Lecture
Core Non-Core
Power
Brand
Power
Brand
Sleeper
Brand Slider
Brand
Discarded
Brand
Soldier Brand
For example: The DLG Portfolio

9. School of Business, Creative Campaigns, Topic 5 – Lecture
Align your brands to customer segments

10. School of Business, Creative Campaigns, Topic 5 – Lecture
Align your brands to customer segments

11. School of Business, Creative Campaigns, Topic 5 – Lecture
Align your brands to customer segments

12. School of Business, Creative Campaigns, Topic 5 – Lecture
12
Align your brands to customer segments

13. School of Business, Creative Campaigns, Topic 5 – Lecture
Brand differentiation in practise

14. School of Business, Creative Campaigns, Topic 5 – Lecture
Promise
Character
Insight
Substance
Ambition
Target audience
Audience Insight
Insurance Insight
Pulling our brands apart…

15. School of Business, Creative Campaigns, Topic 5 – Lecture
Portfolio evaluation: Key portfolio concerns

16. School of Business, Creative Campaigns, Topic 5 – Lecture
MarketGrowthRate(CashUsage)
Divest
Invest or Divest?Invest
Milk
Low High
LowHigh
Portfolio evaluation framework

17. School of Business, Creative Campaigns, Topic 5 – Lecture
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

18. School of Business, Creative Campaigns, Topic 5 – Lecture
Let's now turn to product portfolios…

19. School of Business, Creative Campaigns, Topic 5 – Lecture
Brand
Propositions are built on the foundations of a solid brand
Brand
Propositions are built on the foundations of a solid brand
Key Competitors
Porters 5 Forces
Key Competitors
Porters 5 Forces
Target Audience
5 Killer Questions
Target Audience
5 Killer Questions
Consumer Insight
Deep rooted understanding of consumer and market ‘gap’
Consumer Insight
Deep rooted understanding of consumer and market ‘gap’
Consumer
Benefit
Consumer
Benefit
Defining
Attributes
Defining
Attributes
Defining
Features
Defining
Features
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

20. School of Business, Creative Campaigns, Topic 5 – Lecture
Customer
Winning product plus experience that meets
customer needs
Commercial
Properly priced to optimise the P&L within
regulatory constraints
Channel
That can be delivered excellently from first
touch to last
The Trade-Off Triangle

21. School of Business, Creative Campaigns, Topic 5 – Lecture
+
Customer Insight
Understanding your customers
and their needs
Market Insight
Understanding the gap in the market
A proposition built on a consumer insight

22. School of Business, Creative Campaigns, Topic 5 – Lecture
Consumer insight in action – Dirt is Good

23. School of Business, Creative Campaigns, Topic 5 – Lecture
Managing products over time

24. School of Business, Creative Campaigns, Topic 5 – Lecture
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 strategyBy leveraging the marketing mix to execute the strategy
ProductProduct PlacePlace PricePrice PromotionPromotion
HighestCost
Activity
LowestCost
Activity
Customer value management

25. School of Business, Creative Campaigns, Topic 5 – Lecture
Customer value management

26. School of Business, Creative Campaigns, Topic 5 – Lecture
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 componentsUnderpinned by 3 core data driven components
HighCost
LowCost
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?

27. School of Business, Creative Campaigns, Topic 5 – Lecture
Customer Lifetime
Value
Model
Customer Lifetime
Value
Model
Target consumers
that are most
responsive to
comms/offer
Target consumers
that are most
responsive to
comms/offer
Data & Analytics
Propensity Model
Data & Analytics
Propensity Model
Segmentation
Model
Segmentation
Model
Understand which
customers, what
product, what offer
and when to cross-
sell
Understand which
customers, what
product, what offer
and when to cross-
sell
Understand which
customers, what
product, what offer
and when to up-sell
Understand which
customers, what
product, what offer
and when to up-sell
Understand which
customers, what
product, what offer
and when to retain
Understand which
customers, what
product, what offer
and when to retain
Existing
Customers
Target consumers
that give you most
value
Target consumers
that give you most
value
Drive AdvocacyDrive Advocacy
Customer value management

28. School of Business, Creative Campaigns, Topic 5 – Lecture
End of presentation