1. The underlying objective for all digital marketing efforts (and as linked to real‐world events
and traditional marketing) should be to reach and influence targeted audiences who are in
a position in life to actually realize aspirations for the ultra‐premium cognac spirit – and
who can ultimately convert to sales or have influence on sales within a desired timeframe.
LOUIS XIII GRANDE CHAMPAGNE COGNAC
AWARENESS & INFLUENCE VIA TARGETED AUDIENCES
2. 1
TARGETED AUDIENCES
DEFINING WHERE TRUE INFLUENCE RESIDES
As Louis XIII expands its nascent digital marketing efforts in support
of active campaigns, and for building a deeper, and more influential
digital presence, it should first be acknowledged that targeting will
not only have a significant impact for steering ongoing and future
efforts, but it will also define budget requirements as well.
Although there may be an internal inherent desire to reach the largest
audiences possible to build mass awareness among a very broad luxury
aspired world population, in reality, focus and scale will need to be
applied in these early digital stages commensurate to available budget
allocations to build desired real world influence.
Without an infinite or sizeable budget, Louis XIII needs to be highly
refined in its digital approach to touch and build awareness with digital
audiences that really matter. It does not have the ‘luxury’ of targeting
mass audiences or expending budgets and resources on audiences who
simply have aspirations of the luxury lifestyle.
The reality is that with the budgets identified, Louis XIII has to be far
more creative and highly selective with targeting audiences – audiences
who not only have the financial means to become a customer, but also
influencers who can have real influence on the ideal customer profile.
Developing campaigns and programs to reach mass luxury audiences of
all shapes and sizes simply is not a viable approach. The goal has got to
be to increase the number of touches that can be created with current
high net worth individuals. Essentially, this includes audiences at scale
who are best positioned to become brand loyalists and customers
without spending budgets to create mass name recognition and product
awareness with consumers who will never convert to sales.
Aspiring to or dreaming of a luxury lifestyle is simply not the same of
actually being able to live the lifestyle. Especially for a $3,000 bottle of
Cognac, which is much different than purchasing a ‘non‐consumable’
tangible luxury product such as a Rolex watch. This must be a key and
primary consideration for defining Louis XIII’s digital marketing direction.
Therefore, execution has to be more than just creating impressions,
clicks, views and likes. Impressions and engagements are important, but
they have to target the ideal Louis XIII customer profile and have
influence on moving the consumer through the buyer decision journey.
Working smarter, not harder to leverage and optimize budgets and
resources for maximum value and benefit should be the working mantra.
And to accomplish this, it starts with targeting.
-----------
Worldwide
HNWI Population
14.65 million
--
Asia Pacific
HNWI Population
4.69 million
--
North America
HNWI Population
4.68 million
--
Europe
HNWI Population
3.99 million
With a Limited Budget,
High Net Worth Individuals
Must Be Isolated As The
Single Primary Target
Audience to Realize
Optimum Business ROI.
(fringe nuances may be included)
A high‐net‐worth individual (HNWI) is a person with a high net worth. In the western, and
primarily American, private banking business, these individuals typically are defined as having
investable finance (financial assets, excluding primary residence) in excess of US$1 million
3. 2
With a world population of
roughly 15 million high net
worth individuals, the target
audience for Louis XIII can be
seen as reasonably small.
‐‐
The good news is it affords Louis XIII the
opportunity to create a highly targeted
digital marketing approach through
active audience profiling that specifically
reaches desired consumer profiles to
createtherequired
number of
repeatable,
impressionable
touches with
frequency and
consistency
aligned to the
Luxury Buyer’s
Decision Journey for better utilization of
digital budgets and resources.
Asia-
Pacific
32%
North
America
32%
Europe
27%
Latin
America
4%
Middle East
4%
Africa
1%
Global HNWI (Millions)
4. 3
WHY GETTING TARGETING RIGHT… IS SO IMPORTANT
With a limited defined budget, properly targeting audiences of real influence eliminates
wasteful spending. It impacts everything in digital marketing from media planning and
media buys through to channel, outlet and influencer selection, overall strategic directions
and tactics, content creation, and of greatest importance ‐‐ budget allocation priorities.
Three core baseline personas have been recommended as the
starting point to further understand the Louis XIII consumer.
Upwardly Mobile Socialites
Established Sophisticates
Connoisseurs – Over 55’s
However, isolating these core target personas is just the first
step in refining how audiences should be targeted. Deeper
analysis and reflection still needs to be considered and
documented, including:
Multi‐cultural / ethnicity diversities
Geo‐centric / localization nuances
Emotional brand affinities (values)
Visual and message cue motivators
And although not technically a core consumer persona,
targeting also has to consider identifying ideal influencers,
which will offer Louis XIII the most value through paid or
earned engagements for disseminating brand values and
influencing identified customer profiles.
Media / blog outlets
Brand advocates / ambassadors
Social media 'celebrity' influencers
PROPOSED ACTION REQUIRED
1. Perform added analysis of consumer personas
2. Conduct deeper research and analysis of ideal
influencers and outlets
3. Vet Influencers; develop unique influencer programs
4. Review, adopt and activate strategic directions
Upwardly Mobile Socialites
Established Sophisticates
Connoisseurs – Over 55’s
Baseline Socio Demo:
Mostly men, 30-35 years, $250K annual
income, socially active, emotional
attachments
Baseline Socio Demo:
Men and women, 36-55 years, +$1MM
net worth, individualists
Baseline Socio Demo:
Men over 55 years, multi-millionaires,
high liquidity / net worth, luxury
lifestyles
5. 4
PERSONA MAPPING EXERCISE
In order to animate Louis XIII's understanding of its customers, it must first craft nuanced,
detailed portraits of them (customer profiles). Personas turn customer data and observational
research into well‐defined target audiences, which can lead to the creation of richer customer
experiences through content and advertising, and the strategic and aligned delivery of it.
Demographics
•age, gender
•income, net worth
•geographic location
Priorities
•lifestyles
•motivators
Values
•brand affinities
•aspirations
•personal value systems
& beliefs
Research
Habits
•online habits & behaviors
•valued trust informational
sources
Identifying
Factors
•cultural & ethnicty diversities
•segment nuances
Psychographics
•abstract attitudes, opinions &
personality traits
6. 5
INFLUENCER MAPPING EXCERCISE
Vetting influencers is just as important to select who may be best aligned to Louis XIII digital
marketing goals. Understanding the audiences who influencers share content with is key to
match desired influence with consumer profile targets ‐‐ and will be one of the most important
indicators of future influencer marketing success.
General demographic details such as household income, age, race, and gender are often overlooked
in evaluating an Influencer, but this basic demographic data is the primary vetting criteria to
determine the audience that's viewing an Influencer's content and the actual influence an influencer
may have on business ROI.
Cognac Expert Blogs
International Cognac
writer of the Year 2013
cognac‐expert.com
Subscription Newsletters
Called "America’s foremost
spirits authority” by Forbes.com
spiritjournal.com
Upscale Media Luxury
Lifestyle Magazine /
Publication
upscalelivingmag.com
Celebrity Endorsements
Brand Ambassador
Creative, Content Promotion
louisxiii‐cognac.com/#100‐years
Target Selection
Research
Trusted KOLs &
Premium Spirit
Experts
On‐Topic Bloggers
& Journalists
Social Personalities Notable Celebrities
Media Outlets
(Media Buys)
Brand Advocates
Brand Ambassadors
Target Audience
Criteria Vetting
Vetted Target Past
Brand Influence
Analysis
Selection,
Engagement &
Activation
Activation
Measurements &
Adjustments
Representations
7. 6
Unvetted
Random
Representations
Although
there is a growing
general trend for
influencer
engagements
among
spirits distillers,
in all cases
they are
associated
with
more mainstream
and ‘reasonably’
affordable
Brands,
which mass
followers
can more easily
identify with and
aspire to as
part of a
desired
lifestyle.
-
Unique
for Louis XIII,
viable influencers are far
fewer and are primarily
available for advertising,
PR and special event
invitation opportunities
without much opportunity
for pure-play social media
engagements.
8. 7
BRAND STORIES
DIFFERENTIATION THROUGH STORYTELLING
From our initial review, to date digital marketing has mostly
emphasized the creation of short‐lived brand campaigns to peak
awareness with mass audiences.
Although there may be an ongoing effort on several social media
channels, the effort is seen as minimal, and without a clear strategic
execution direction for consistently remaining relevant with targeted
audiences.
Even though the crystal decanters are indeed works of art in themselves,
there's only so many times you can publish a social media post with a
product image, before you lose an audience's attention.
Storytelling gives Louis XIII the opportunity to become ever more present
in the daily lives of its consumers across all digital touchpoints, and with
the key benefit of staying 'top of mind' with ideal consumer profiles as
they go through the buyer's decision journey when selecting an ultra‐
premium Grande Champagne cognac.
As we have acknowledged, the history of Louis XIII is rich and inspiring.
There are many brand stories that can be told and which can easily lend
themselves to be told visually.
The goal must now be to garner increased and sustained attention via
the creation of micro‐moments that provide value and relevancy to
create an emotional bond and attachment to the Brand.
The proposed storytelling approach would be executed on multiple levels
to ensure reach and influence is delivered across all desired key
personas.
Story themes may or may not be common across each persona
depending upon specific nuances found within each segmented
audience. Each series of campaign persona brand stories would be
uniquely developed for the intended audience using visuals and/or
message cues to ensure personalized affinity and relevance.
PROPOSED ACTION REQUIRED
1. Adopt storytelling as strategic campaign direction
2. Document backstories and persona affinities as creative input
3. Catalogue visual and digital assets for re‐use and budget efficiencies
4. Define the creative, workflow and management processes
5. Schedule quarterly ideation planning and review sessions
6. Align and allocate budget priorities
7. Activate production and execution schedules
The average
attention span
of an
Internet user
is only
8 seconds.
For a goldfish,
it's 9 seconds.
-
Consumer
behavior has
changed forever.
Today's battle
for hearts, minds,
and sales is won
(or lost) in
micro-moments
that occur
throughout the
entire consumer
journey.
Multiple
Brand Stories
will have to
be told to create
experiential
customer
experiences,
which resonate
at individual,
personalized
levels.
7
9. 8
BRAND STORY CAMPAIGN MAPPING EXERCISE
This approach moves Louis XIII beyond its historic content direction of heavy product visual
promotion to one of better balance with aspirational experiences and lifestyles for greater
brand admiration and appeal.
1. What's the objective?
2. What's the desired result?
3. Who are we targeting?
4. What's the visual storyline?
5. How and where will we engage?
6. What is success?
To ensure a steady stream of fresh, unique content is produced as part of the storytelling campaign
direction, frameworks and management controls will be put into place to govern content production
as represented below, and which will be aligned to Louis XIII's infrastructure and resource
capabilities.
The ultimate goal is to create a more consistent publishing schedule with an abundance and variety
of contextual content in support of Campaigns and sustaining year‐round levels of engagements to
elicit far greater emotional attachment to the brand with multiple targeted audiences.
Ideation Process
11. 10
EDITORIAL CALENDAR SIMPLE REPRESENTATION
What we need to recognize is that Louis XIII cognac is an emotional buy aligned to individual,
personalized tastes and values. Digital marketing for Louis XIII cannot be (or should not be) a one
story, one approach ‘fits all’ strategic direction.
Back Story Themes Mo. 1 Mo. 2 Mo. 3 Mo. 4 Mo. 5 Mo. 6 Mo. 7 Mo. 8
Art & Passion of Distilling
Mastery of Time
Ultimate Expressions
Supreme Luxury
Connoisseurs Themes Mo. 1 Mo. 2 Mo. 3 Mo. 4 Mo. 5 Mo. 6 Mo. 7 Mo. 8
Passage of Time
Ultimate Luxury
Sophisticates Themes Mo. 1 Mo. 2 Mo. 3 Mo. 4 Mo. 5 Mo. 6 Mo. 7 Mo. 8
Travel Destinations
Comfort & Luxury
Socialites Themes Mo. 1 Mo. 2 Mo. 3 Mo. 4 Mo. 5 Mo. 6 Mo. 7 Mo. 8
Aspired Lifestyles
12. 11
CONSUMERTOUCHPOINTS
CREATING INFLUENCE FOR BRAND AFFINITY
Research has shown that Luxury Customer decision journeys are now
composed from as many as 21 different touchpoints – 11 offline (such
as print media or store visits) and 10 online (such as search, social
media and the online brand store).
Based on differing levels of luxury maturity, ecosystems and shopping
habits within geographies, a Luxury shopper on average will be
influenced by nine points of contact with the brand he or she finally
purchases.
City Store
Online Community
/ Blog
Special Interest
Website or App
Word of Mouth TV or Cinema Ad Social Media Channels
Search
Catalogue or
Personal Letter
Experts
Recommendations
Sales Person
Recommendation
Event Sponsorship /
Advertisement
Multi‐Brand
Online Shop
Brand Website
/ Online Shop
Fashion or
Luxury App
Online Banner
Advertisement
Fashion /
Luxury Magazine
Poster or Large Outdoor
Billboard
YouTube or Other
Online Video Service
Travel Retailer
Movie or TV
Series Placement
Newsletter
or Email/SMS
.
Without a real‐world physical presence, Louis XIII will need to ensure it
optimizes and strategically aligns all available touchpoints into a cohesive
and complementary Brand experience for maximum consumer influence.
When
Luxury consumers
begin shopping
for a particular item,
they usually have
a pre-selected set
of brands
in mind
at the outset
– an initial
consideration
set.
--
Luxury consumers
tend to purchase
from brands
they are already
familiar.
More than
three quarters
of luxury purchases
come from the few
brands present
in the initial
consideration.
Current Louis XIII Touchpoints. Research has shown 5 touchpoints of greatest
influence with Luxury Consumers. They include: physical stores, word of
mouth, online search, sales people and brand websites
PROPOSED ACTION REQUIRED
1. Conduct digital audit to benchmark past digital touchpoint
performance gauged against active and planned strategic
directions
2. Define an optimization execution plan (digital and physical
touchpoint optimized integration)
11
13. 12
CUSTOMER TOUCHPOINT MAPPING EXERCISE
Louis XIII needs to think of touchpoints as a Brand experience ecosystem, not a series of
unconnected engagements. Consumers have become fundamentally cross‐touchpoint in the
way they expect to engage. When considering consumer touches, the goal is to keep Cross‐
Touchpoints and the Customer Journey simple, comprehensive and complete.
One step in Louis XIII’s nascent digital marketing efforts is to understand how its touchpoint
ecosystem provides consumer value measured against basic consumer needs. A simple, yet effective
exercise plots touchpoints into a categorical consumer need. From this, we are able to see gaps (if
any) in the Brand experience and where the touchpoint ecosystem could be improved.
Discover Engagement Brand Story Experiential Purchase
Web (m) ▪ ▪ ▪ ▪
Brand Blog ▪ ▪ ▪ ▪
SEO / SEM ▪ ▪
Press / Blogs ▪ ▪ ▪
Digital Advertising ▪ ▪
Campaigns & Events ▪ ▪ ▪ ▪▪
SM ‐ Facebook ▪ ▪▪ ▪ ▪▪
SM ‐ Instagram ▪ ▪▪ ▪ ▪▪
SM ‐ Twitter ▪ ▪
SM ‐ YouTube ▪ ▪
SM ‐ Tumblr ▪ ▪ ▪
SM ‐ Asia Channels ▪ ▪ ▪
WOM / Influencers ▪ ▪
Brand Ambassadors ▪ ▪
E‐Newsletter (Email) ▪ ▪ ▪
Louis XIII Society ▪ ▪ ▪ ▪
Mobile Apps / SMS ▪ ▪ ▪ ▪
Specialty Distribution ▪ ▪
Restaurants / Bars ▪ ▪ ▪
Offline Advertising & Marketing ▪ ▪
House of Rémy Martin Tours ▪ ▪ ▪
▪ Current Touchpoint Influence ▪ Areas of Enhanced Influence Potential
14. 13
The next step is to take these consumer touchpoints and plot them based on customer journey
influence to visually understand where emphasis should be placed for strategic directions, campaigns,
content and overall tactical execution.
Consumer Touchpoint Web Traffic Awareness Experience Engagement Influence
Web (m)
Brand Blog
SEO / SEM
Press / Blogs
Digital Advertising
Campaigns & Events
SM ‐ Facebook
SM ‐ Instagram
SM ‐ Twitter
SM ‐ YouTube
SM ‐ Tumblr
SM ‐ Asia Channels
WOM / Influencers
Brand Ambassadors
E‐Newsletter (Email)
Louis XIII Society
Mobile Apps / SMS
Specialty Distribution
Restaurants / Bars
Offline Advertising & Marketing
House of Rémy Martin Tours
From this exercise, we can start to see where priorities should be aligned within Louis XIII’s digital
ecosystem and at what stage in the Customer Buyer’s Decision Journey. (Ongoing validation and
adjustments through measurement will be required to stay aligned with influence as it is being created through
program execution.)
Stronger Influence Weaker Influence
15. 14
DIGITAL ECOSYSTEM
OPTIMIZING CHANNEL AND CONTENT USE
The review of Louis XIII’s current present‐day digital ecosystem in
support of campaign execution provided us with a simple visual map
that reveals active consumer touchpoints.
The next step is plot digital marketing elements into a consumer
touchpoint Customer Journey Map to better understand where stages of
influence is created.
Touchpoint
Mapping
allows
Louis XIII
to
optimize
and
balance
its
Digital
Ecosystem
for
greatest
influence
across
channels
and
outlets.
--
SEO
SEM
Display &
Native Ads
Social
Media
Email
& CRM
Website &
Landing Pages
Content
Creation
Digital
Ecosystem
Press
& Blogs
Campaigns
Influencers
Mobile
14
16. 15
CUSTOMER BUYER DECISION JOURNEY MAPPING EXERCISE
Plotting expanded consumer touchpoints into a Customer Buyer Decision Journey Map gives
Louis XIII the opportunity to better understand at each stage where influence is realized,
which can be used to expand its digital footprint and to deliver a more cohesive and greater
multi‐touchpoint Brand experience.
Physical Touchpoints
Digital Touchpoints
Aspiration
Threshold
Proposed Action Required
1. Align and optimize digital marketing priorities to each customer journey
stage
2. Re‐apportion budget allocations mapped to needs and priorities
3. Activate a monthly measurement and analytics plan to measure ongoing
future performance and to adapt / evolve ongoing strategic direction and
execution
17. 16
AUDIENCE OPTIMIZATION
REACHING GREATER AUDIENCES OF INFLUENCE
Geo‐marketing (or geo‐targeting) specifically targets customer
profiles within regional localities to reach ideal consumers with
greater personalization and with more appealing and relevant
content.
Custom audiences, locations, demographic, age and gender, interests,
behavior and connections can all be used to target digital advertising and
social media ads and posts.
The key benefit is that campaigns, content and promotions can be
created and optimized for regional nuances using native languages with
contextual relevance for greater audience value and influence.
This is applicable across all world regions and is recommended at micro
levels for content campaigns and persona types.
As part of a
strategic
Audience
optimization
direction,
there is also
untapped
potential
with building
audience
profiles by
leveraging
the Rémy Martin
and
Louis XIII
CRM data,
- as well as -
retargeting
website visitors
and
‘look-alike’
Luxury Peer
audiences
to reach
expanded
pre-qualified
audiences.
--
Proposed Action Required
1. Create desired FB segmented targeted audience lists
2. Leverage ad‐serve platforms for optimum advertising buys
3. Adopt strategic direction with campaign and content planning
4. Activate a measurement and analytics component to adapt and
evolve ongoing strategic execution
16
18. 17
BUDGET OPTIMIZATION
ALLOCATING BUDGET FOR GREATER INFLUENCE
Budget planning still needs to be better understood, however, in
review of how budgets are being applied to current efforts, we are
able to make some recommendations for better efficiencies.
If ‘targeting’ is adopted as the cornerstone to Louis XIII digital marketing
efforts, then it should be agreed that digital marketing budgets should be
leveraged and spent with a high degree of confidence for targeting
‘predisposed’ pre‐qualified audiences.
In our view, there simply is not sufficient budget to reach a global,
aspired ‘luxury‐lifestyle’ mass population with Louis XIII’s campaigns and
messages. Unfortunately, past budget allocation has been heavily
weighted on the selection of celebrity influencers and broad targets
within the media plan.
Louis XIII would be better advised to build lasting influence through
greater organic and paid social media use and with a highly‐select and
targeted smaller group of industry experts and advocates to create the
greatest influence on desired consumer profiles while scaling back
support for mass ‘luxury’ or ‘lifestyle’ banner and content advertising.
Activations with social/celebrity types and for high‐profile media buys
targeting mass audiences simply offer only fleeting influence (if any) with
a high percentage of impressions not fitting a highly targeted Louis XIII
consumer profile.
Consider some recent facts regarding influencer marketing.
- 92% of people trust peers and advocates…not influencers.
- 84% of people trust peers and advocates before ads…not
influencers. The trust factor goes notably down for influencers.
- People are 4‐10x more likely to act on the recommendation of a
trusted peer or advocate… not influencers.
- An influencer impression is not worth 5‐250x a paid impression
like a word‐of‐mouth impression. It is simply a paid impression
featuring a social celebrity.
Now, consider some recent facts regarding digital advertising.
- Display ad view‐ability rates are declining.
- The average click‐through rate of display ads across all formats
and placements is only 0.06%.
- Ad blocking grew by 41% globally in the last 12 months.
- There are now 198 million active ad block users globally.
- A recent study revealed that only 2.8% of participants thought
ads on websites were relevant with 33% of internet users finding
display ads completely intolerable.
Brands
who opt to work
with influencers
should drill down
to find
digital figures
with expertise
within a
specific world,
which ideally
ties back to
the product
and brand.
--
Ultimately,
what these people
have to offer is a
hybrid of influence
and
distribution,
which is something
not possible with
traditional ‘celebrity’
influencers.
17
19. 18
As we reflect deeper on past influencer and paid media budget allocations, and upon reviewing the
proposed future FY16/17 budget allocation, we can see both paid engagements with influencers and
for those reserved for luxury and lifestyle media buys accounts for the vast majority of the overall
past and future digital marketing spend.
The current FY16/17 media plan for Louis XIII is projected to spend 280MM Euros.
The proposed Influencer marketing plan allocates spending 47,000 Euros for L’ Ody
sée D'un Roi alone (10 to 18 social/celebrity influencers with an agreement to post
once on social media and with event attendance. 65% of the 100 Years Phase 1
budget).
For influencers, the selection for qualifying targets remains to be celebrity status matched to the
number of potential impressions (followers) with predicted impressions largely loosely identified and
which can be actually measured for real influence.
We do acknowledge having high profile celebrities in attendance at each of Louis XIII’s events is an
important need. Attendance of these people lend credibility and higher awareness to the event. And
if the price to pay to have these people in attendance is to engage them as ‘influencers’, then
budgets spent on these influencers is well worth the cost.
However, if the cost is arbitrarily higher for these people to also post on social media, then the cost
becomes less attractive and their influence is diminished relative to the impact of the overall
allocated budget due to the reasons just explained.
As for the most recent proposed media buy (in support for L’ Ody sée D'un Roi, 100 Years Safe Tour,
and general campaign specific search), estimated impressions remains to be the primary selection
gating factor using very broad interest profiling (business, luxury, lifestyle, and fashion) and targeting:
(male business men +35, luxury item spenders, and HNWI).
If the goal is to build the greatest awareness with select, pre‐qualified (pre‐disposed) targeted
audiences, the proposed digital media buy contains considerable diminished returns. Impressions as
the primary KPI is not the metric Louis XIII should be emphasizing. Predictive performance for clicks,
CTR, conversion rate, cost per acquisition (CPA) and cost per click (CPC) are all better measures for
how well digital advertising will perform and should be factored into the selection process.
Overall, budgets could be potentially better allocated in a number of areas including:
1. Greater emphasis on ‘owned’ social media (content and ads) with less emphasis on celebrity
influencers and high‐profile banner advertising
2. Re‐allocation of a large percentage of influencer and ad budgets to content marketing to
create experiential storytelling campaigns
3. Re‐prioritization placed on advocates (specialty blogs, newsletters and notable industry
expert connoisseurs) versus celebrity influencers (excluding event attendance engagements)
4. Apportioned budget allocation with a 40/40/20 split for persona‐based marketing efforts
(Connoisseurs, Sophisticates, Socialites)
Proposed Action Required
1. Optimized budget planning exercise