Post on 13-Aug-2015
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
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
Understanding your Shopper’s Purchase Graph & Cycles
BUYER SCORE
Lifestyle
Financial
Demo & Geo
Time
Hair Care
Oral Care
Pets
Snacks
Beverage Food
Family
Care
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
Non-Category Buyers
Category Buyers
Unlikely Brand Buyers Likely Brand Buyers
Where Does Penetration Come From?
Choice Fragmentation Non-Brand Buyers
48 56 109 24
* Index of Responsiveness = % Contribution to Total Campaign Response / % Contribution to Reached Households
% Contribution to Reached Households % Contribution To Total Campaign Response
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
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
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
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
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
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
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
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
DEMO TARGET All Other HH BUYER TARGET All Other HH
Buyer Targets Generate Higher Response
204 43 85
…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
Original Plan Optimization WithinConstraints
Open-ended OptimizationWithout 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
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