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Precision-Marketing-Playbook
- 2. Precision Marketing Playbook: What Segments and Strategies Drive the Most Sales? Leslie Wood Chief Research Officer Nielsen Catalina Solutions Meg Bluth Director, Media & Digital Insights The Coca-Cola Company Jeff Chaban Global SVP, Business Integration & Analytics Starcom MediaVest Group
- 3. Technology Has Revolutionized Media Activation And Therefore Measurement
- 4. Changed The Way We Live Our Daily Lives
- 5. How We Target, Plan And Buy
- 6. It’s Time To Evolve How We Think About Audiences Demo Geo Lifestyle Purchase Direct 1-to-1 Match
- 7. Think About the Data Mix as well as Media Mix TV 45% Search 20% Display 12% Online Video 11% Social 3% Mobile 3% Radio 3% Print 2% OOH 1% Media Mix Purchase 70% Lifestyle 15% Financial 7% Geo 5% Demo 3% Data Mix
- 8. Understanding your Shopper’s Purchase Graph & Cycles BUYER SCORE Lifestyle Financial Demo & Geo Time Hair Care Oral Care Pets Snacks Beverage Food Family Care
- 9. The Right Audience For Any Marketing Objective 2. CURRENT CUSTOMERS Deliver Heavy Brand-buyers, Reward Loyalty 1. PROSPECT Build Awareness & Trial Among Known Category Buyers 3. LOST CUSTOMER Target Lapsed Brand Buyers & Heavy Category Buyers Customer Lifecycle Acquire Retain Grow Loyalty Reactivate Win Back
- 10. Selecting A Buyer Target
- 11. Non-Category Buyers Category Buyers Unlikely Brand Buyers Likely Brand Buyers Where Does Penetration Come From? Choice FragmentationNon-Brand Buyers 48 56 10924 * Index of Responsiveness = % Contribution to Total Campaign Response / % Contribution to Reached Households % Contribution to Reached Households % Contribution To Total Campaign Response
- 12. Additional Brands Non-Category Buyers Category Buyers Unlikely Brand Buyers Likely Brand Buyers Baby Care RTE Desserts Oral Hygiene Carbonated Soft Drinks Juice Choice Fragmentation Of Non-Brand Buyers * Index of Responsiveness = % Contribution to Total Campaign Response / % Contribution to Reached Households 17 43 138 48 41 403 41 79 129 18 59 104 20 137 492 % Contribution to Reached Households % Contribution To Total Campaign Response
- 13. Brand Buyers Low Share-Of-Requirements (SOR) Moderate Share-Of-Requirements (SOR) High Share-Of-Requirements (SOR) Brand Buyers: Brand Loyalty Influences Ad Response Simply Orange® juice 300 243 224 * Index of Responsiveness = % Contribution to Total Campaign Response / % Contribution to Reached Households % Contribution to Reached Households % Contribution To Total Campaign Response
- 14. Brand-Buyers Low SOR Med SOR High SOR Light Category Buyers Medium Category Buyers Heavy Category Buyers Brand Buyers: Response by Buyer Segments 316 275 234 246 228 298 229 178 152 * Index of Responsiveness = % Contribution to Total Campaign Response / % Contribution to Reached Households % Contribution to Reached Households % Contribution To Total Campaign Response
- 15. Non-Category Buyer Non-Brand Buyers Brand-Buyers Unlikely Likely Low SOR Med SOR High SOR Light Category Buyers Medium Category Buyers Heavy Category Buyers 68 130 229 178 152 Brand Buyers: Response by Buyer Segments 24 36 119 316 275 234 44 93 246 228 298 * Index of Responsiveness = % Contribution to Total Campaign Response / % Contribution to Reached Households % Contribution to Reached Households % Contribution To Total Campaign Response
- 16. Non-Category Buyer Non-Brand Buyers Brand-Buyers Unlikely Likely Low SOR Med SOR High SOR Light Category Buyers Medium Category Buyers Heavy Category Buyers 68 130 229 178 152 Target Potential Buyers for Penetration Strategy 24 36 119 316 275 234 44 93 246 228 298 * Index of Responsiveness = % Contribution to Total Campaign Response / % Contribution to Reached Households % Contribution to Reached Households % Contribution To Total Campaign Response 12.5% of HHs 13.8% of Incremental $ Index: 109
- 17. Non-Category Buyer Non-Brand Buyers Brand-Buyers Unlikely Likely Low SOR Med SOR High SOR Light Category Buyers Medium Category Buyers Heavy Category Buyers 68 130 229 178 152 Target Brand Buyers to Increase Sales 24 36 119 316 275 234 44 93 246 228 298 * Index of Responsiveness = % Contribution to Total Campaign Response / % Contribution to Reached Households % Contribution to Reached Households % Contribution To Total Campaign Response 24.9% of HHs 63.7% of Incremental $ Index: 256
- 18. Non-Category Buyer Non-Brand Buyers Brand-Buyers Unlikely Likely Low SOR Med SOR High SOR Light Category Buyers Medium Category Buyers Heavy Category Buyers 68 130 229 178 152 Target All High Responders to Maximize Short-Term Response 24 36 119 316 275 234 44 93 246 228 298 * Index of Responsiveness = % Contribution to Total Campaign Response / % Contribution to Reached Households % Contribution to Reached Households % Contribution To Total Campaign Response 31.4% of HHs 71.8% of Incremental $ Index: 229
- 19. Non-Category Buyer Non-Brand Buyers Brand-Buyers Unlikely Likely Low SOR Med SOR High SOR Light Category Buyers Medium Category Buyers Heavy Category Buyers 68 130 229 178 152 234 44 93 246 228 298 Simply Orange® Targets Potentials and High Responders 24 36 119 316 275 * Index of Responsiveness = % Contribution to Total Campaign Response / % Contribution to Reached Households % Contribution to Reached Households % Contribution To Total Campaign Response 32.1% of HHs 67.3% of Incremental $ Index: 210
- 20. DEMO TARGET All Other HH BUYER TARGET All Other HH Buyer Targets Generate Higher Response 204 4385 …accounts for …and …but contributes Demo Target 50% of HHs 51% of Impressions 57% of dollars Buyer Target 32% of HHs 32% of Impressions 72% of dollars 115 * Index of Responsiveness = % Contribution to Total Campaign Response / % Contribution to Reached Households % Contribution to Reached Households % Contribution To Total Campaign Response
- 21. Original Plan Optimization Within Constraints Open-ended Optimization Without Constraints Alternative Buys • SMG used the Buyer Target and re-Optimized the schedule Reach Cost + 0.8% Reach - 6% Cost - 17% Cost + 2.2% Reach
- 22. Coca-Cola Company Comments • The NCS model allowed us a window into a different way of purchasing • Viewership between the media target (demo) and the optimized purchase target is quite different • Potential for significant reach and cost efficiencies exist • Next step would be to test for sales effectiveness
- 23. Thank you.