Presented by Tim Lyons

IESEG Direct Marketing

Day Four

Day Four Activities

8:10-9:00 Assignment Discussion

9:00-9:15 Break

9:15-10:00 Topic Ten: Future Issues and Innovation in DM

10:00-10:15 Morning Tea

10:15-10:45 DM Strategic Case Study

10:45-12:15 Student Presentations

12.15-12.30 Wrap Up

Looking Back

Reflections on Day Three

Assignment DiscussionTake your Time

Time for a small breakFeel free to go outside...but be back in 15 mins

Topic 10Future Issues and Innovation in DM

Innovation and Future Issues in Direct

Innovation in Direct Marketing

• Creativity

Consider the Starbucks WeChat campaign

• Technology

Consider the utilisation of 4th Generation mobile telephony

• Education

Consider yourselves

• Accessibility

Consider the growing reach of direct marketing

Future Issues in Direct Marketing

• Growth and penetration of the internet

• Globalisation

• Privacy

• New technologies

• Growth of the specialist agency

• Growth of China

Mobility

Blog Exercise 1/Day 4

Detail some of the key issues for the future of DMEmphasis on online

But not exclusively online

Time for morning teaFeel free to go outside...but be back in 15 mins

Case StudyDM in Action

Case Study: L’Oreal

Case Study: Case Study: L’Oreal Beauty Club

A quick overview

What is the L’Oreal Beauty Club?

• A direct communication channel to the heart of L’Oreal’s target audience

• 88,892 members

• A predominantly female community of people interested in fashion and beauty

• community because members provide feedback and meet at events

• larger circulations than Harpers Bazaar (52,290/mth), Vogue (53,571/mth)

The reason for beingBuild stronger

relationships with

consumers

Gain a deeper Gain a deeper understanding understanding of consumerof consumer

Greater loyaltyGreater loyalty More effective More effective marketingmarketing

..and the Internet enables us to effectively manage and exploit large amounts of data..cost effectively.

Overcome Overcome communication cluttercommunication clutter

Secure attentionSecure attention

What do LBC members receive?

• A monthly email newsletter packed with compelling content

• Product & L’Oreal event news

• Fashion and beauty tips

• Exclusive competitions

• Special offers

delivered direct to the subscribers in-box!

• Prizes and offers provided by L’Oreal as well as promotional partners

• who in turn receive exposure for their brands and offers

The Beauty Club process

Database

MSN Messenger Cleo

DollyAWW

MSN/Shopping

HotmailNetwork

Newsletter

Print: editorial mentions in ACP titles

Media on NineMSN network of websites

etc

http://beautyclub.loreal.com.au

Register

Monthly E-mail newsletter

Data in eg competitions, surveys etc

Direct Marketing - IESEG - Tim Lyons

beautyclub.loreal.com.au

20

Example of LBC newsletter

NineMSN Partnership

• Exclusive media partnership with NineMSN to promote the Beauty Club through the NineMSN network of sites – reach over 80% of all Australian internet users.

• Website production & database management undertaken by NineMSN

• Bundled media & production spend to maximise production cost efficiency and ensure media value. As consequence secure over 3x media value from investment.

• Media placed in variety of locations and optimised to maximise traffic to registration website.

• Utilise an exhaustive selection of creative concepts (banners, textlinks, advertorials, email etc) to drive traffic.

• Incorporate ‘viral’ strategies to leverage word of mouth – tell a friend mechanic on website, ‘forward to friend’ competition entry mechanics

• Utilise ACP editorial mentions in key mags (eg Cleo, AWW) to help raise awareness of the club.

Hotmail & MSN Messenger

Hotmail member newsletters

CLEO Beauty

Mini Banner

Content Clip

Dolly ~ Banners

NW

Mini Banner

Special Features

Shopping ~ Health & Beauty

Category PageSpecial Features

May We SuggestLink

Performance assessment

• Performance of club monitored & assessed against a range of KPIs including:

• Unsubscribe rates (<1% monthly unsubscribes)

• Unsolicited member feedback

• Surveys (member satisfaction & endorsement questions)

• Competition entry rates (average 15% of all members enter any specific competition – 3-4 competitions/newsletter)

• Redemption of special offers

KPI Measurement & objectives

Area

AffinityAffinity SalesSales

Me

asu

rem

en

tM

ea

sure

me

nt

MetricMetric

CurrentCurrent

obj.obj.

UnsoliciteUnsolicited d

feedbackfeedback

EmailsEmails

# & tone # & tone of emailsof emails

100/month100/month

150/150/monthmonth

Competition Competition entriesentries

WebsiteWebsite

% members % members entering entering comp. comp.

15%15%

20%20%

UnsubscribUnsubscribeses

WebsiteWebsite

% % unsubscribe/ unsubscribe/

monthmonth

<2%<2%

<2%<2%

Member Member satisfactionsatisfaction

SurveySurvey

(Bi-(Bi-annual)annual)

% v. satisfied % v. satisfied vs not vs not

NANA

70% v 70% v satis, < satis, <

than 20% than 20% notnot

RecommenRecommendationdation

SurveySurvey

(Bi-(Bi-annual)annual)

% % recommend recommend

to friendsto friends

NANA

40%40%

Category Category shareshare

SurveySurvey

(Bi-(Bi-annual)annual)

L’Oreal L’Oreal share of share of category category

purchasespurchases

NANA

5% 5% increaseincrease

Incremental Incremental salessales

CouponsCoupons/ /

promotiopromotionsns

Incremental Incremental revenuerevenue

NANA

$XX,XXX$XX,XXX

Unsolicited feedbackCongratulations on such an informative and wonderful site. I love receiving my newsletter and was thrilled when I received my Shine Delice prize in the mail.

I am confident in using L'oreal products and when my friends ask what makeup I am wearing, I secretly don't want to tell them about the countless miracles I have discovered L‘Oreal products can make happen. But I felt I owed it to them to let them in on what I am surprised not many women know about out there, that my beauty secret weapon was not only your fabulous products but the know-how I gain from the site on how to most effectively use them.

It's like being part of a secret society. My friends and I wish you great success with the site and thank you for making us truly believe we are worth it!

Simonette

Unsolicited FeedbackDear Beauty Club Team,

You guys are doing a fantastic job! As a lover of cosmetics and beauty products (just like your thousands of fans!), I really enjoy receiving your monthly email blasts!

Your site is extremely user friendly, full of great new products and it looks stunning. I also LOVE receiving my prizes when I win (occasionally) your monthly

give-aways. I LOVE L'Oreal Products, both cosmetic & beauty, and I can most certainly thank you for your skin care products. I am turning 30 in a few months, and I can tell you that my skin is sssooo smooth and unaged thanks to L'Oreal

skin care! Everyone comments on how young I look. I am a walking advertisement for you!!!! Also, as a Marketing Manager, I am very impressed with your communications, branding and loyalty campaigns, I think they are great and extremely effective, you definitely stand out from the rest of the cosmetic houses!

Thanks L'Oreal & especially, thank you to the Beauty Club team for your great efforts in communications & prizes, it's a great incentive for us to keep purchasing your

line of products! Well done & keep up the great work!

Warm Regards, Maral

Competitions – Competitions – promotional partnerspromotional partners

Competitions – Competitions – promotional partnerspromotional partners

Motorola – competition to win a top of the line Motorola V70 Motorola – competition to win a top of the line Motorola V70 “fashion phone” valued at $1200“fashion phone” valued at $1200

Peter Alexander – 6 paris of PJs valued at $420Peter Alexander – 6 paris of PJs valued at $420 ACP – chance to win various annual magazine subscriptionsACP – chance to win various annual magazine subscriptions

Fernwood – Receive $100 off any membership fee (exclusive to Fernwood – Receive $100 off any membership fee (exclusive to members)members)

Village Cinemas – free movie passes & exclusive preview Village Cinemas – free movie passes & exclusive preview screenings of Unfaithful & The Banger Sistersscreenings of Unfaithful & The Banger Sisters

Amex – chance to win $1000 cashAmex – chance to win $1000 cash Australian Ballet – dinner and ballet indulgence packageAustralian Ballet – dinner and ballet indulgence package Vic Tourism - Win short break holiday to VIC (including Vic Tourism - Win short break holiday to VIC (including

accommod., car hire, airfares and complimentary dinner).accommod., car hire, airfares and complimentary dinner).

Value of Beauty ClubValue of Beauty Club Direct communication channelDirect communication channel

Developed own, cost effective media channelDeveloped own, cost effective media channel Brings brand to life through personality of communications and physical Brings brand to life through personality of communications and physical

member only eventsmember only events Can segment database on demos, preferences & behavioural measures Can segment database on demos, preferences & behavioural measures

before transmitting emails, to ensure relevance of news/offersbefore transmitting emails, to ensure relevance of news/offers Rapid deployment of news to marketRapid deployment of news to market

Huge value from L’Oreal endorsement by LBC membersHuge value from L’Oreal endorsement by LBC members

Tactical marketing toolTactical marketing tool Counter competitive moves/launchesCounter competitive moves/launches

Drive sales of underperforming products/regionsDrive sales of underperforming products/regions Support non-advertised productsSupport non-advertised products

Valuable resourceValuable resource Cost effective research base and/or recruitment platformCost effective research base and/or recruitment platform

Sampling & demonstration opportunities – key to performance of Sampling & demonstration opportunities – key to performance of categorycategory

Email Marketing

• Easy way to reach current customers

• More than just random correspondence

• But does it work? (think of yesterday’s discussion)

In Summary• Today’s session

• Reflecting on your assignment

• Your Choices

• Working as a group

• Innovation and Future of DM

• Underlying concepts

• Some key elements

• mobility

• Case Study around Web Marketing

• L’Oreal

wrap up

questions?

morning teaFeel free to go outside...but be back in 15mins

PROJECT

THINK ACTKEEP IT DIFFERENT ENGAGE YOUR AUDIENCE

Time for Presentations