| Financial Services Marketing Cases | Classic Consumer Marketing Cases | |
| Global & Branding Leadership | Power Street Lincoln Literature Redesign |
How to Beat P&G: 5 Keys to Success Delta Air Lines |
| Market Share & Revenue Growth | Fullfillment Re-Engineering 401(k) Roll-Over |
Pizza Hut |
| Corporate Restructuring & Leadership | Service & Sales Culture Work Unit Satisfaction |
Global Marketing Management at BBDO |
Launching Nation's #2 Online Brokerage - Fidelity Investments
Challenge
In 1997, Fidelity was a comfortable #2 in the discount brokerage business, behind Charles Schwab. However, by 1998 Fidelity had dropped to #5 based on share of daily commissionable trades. Shipley's assignment was to create best brand for new service launch.
Actions
Market research showed that discount brokerage had become online brokerage dominated by active traders. Following steps were taken:
- Brand Research. Aspirations of active traders uncovered through words and pictures.
- Ad Agency Search. Gotham was selected after thorough finals competition.
- New Positioning, Name and Campaign. The product was launched as "PowerStreet. Online trading at Fidelity.com."
Results
- New product and advertising campaign were launched one week ahead of ambitious three-month schedule.
- Within six weeks of launch, 89% of all commissionable trades were placed through PowerStreet, up from less than 40%.
- Within three months of launch, Fidelity had regained its market share position as #2.
How to Beat P&G: Five Keys to Success
Challenge
Procter and Gamble is the worldwide "consumer packaged goods" (CPG) powerhouse. With great products and massive advertising, it sometimes seems impossible to compete with let alone beat in the marketplace. But it can be done.
Actions
The five keys discovered by Shipley Munson and Associates are deeper insight into consumer psychology, market niches below the radar-screen, emotion-based selling, being there first with relevant innovation, and greater creativity in execution.
Results
Here are five commercials we worked on in Europe from a few years ago. They show these keys in action.
Hair mousse is all about fashion for the teen. It can be grungy. The emotion of the moment has to be captured. Rather than try, P&G bought the company (Wella). This is emotion-based selling based on consumer psychology — capture the attitude. (GB, D)
This beat P&G at its own game. There is no Cheer in Europe. The clowns are an established advertising property in four countries. The colorful clowns in unusual situations bring great entertainment value. That idea alone is highly creative. But the selling idea is even more so. If the detergent is so mild that repeated washing does not cause the costumes to fade, it must be good. This is the market leader in those countries. (F, D, E, NL)
A local brand. The psychological insight is that the target audience in France wants to simplify, simplify, and simplify their lives. And they don't want to pay extra for what they don't need. That provides a great positioning for a product that is merely a household cleaner with inexpensive packaging and less of the active (and costly) cleaning ingredient! It is an example of a psychological insight leading to an emotion-based argument, creatively executed. And the price-point puts it in a niche that P&G won't touch. This business has grown steadily over the years.
Oven cleaner is a niche too small for P&G. Couple that with giving the oven a personality who speaks to the cook with the camera taking the oven's perspective, and you have a highly memorable, effective commercial. And another business insulated from P&G.
What could possibly revitalize a dying category like scouring powder? A highly creative execution. A cleaning agent so effective, it can clean the paint off a work of art. [This really happened in a German art museum, by the way.]
Delaware Investments Literature System Re-Design - 2004 Lincoln Financial Distributors
Challenge
Delaware Investments (mutual fund company), Lincoln Life (life insurance) and Lincoln Annuity (annuities) were three product companies owned by Lincoln Financial and represented by 80 Lincoln Financial salesmen - called "wholesalers" - who call on financial intermediaries like stock brokers and investment advisors.
Corporate headquarters and wholesalers wanted a single Lincoln look.
Wholesalers complained that the literature system had "nothing you could really sell from."
Costs were too high and turn-around time too long.
Actions
Met with users and experts to gain multiple perspectives. As a result, we reduced the typical fund profile from six pages to two, led with one-page "selling ideas," adopted a "web first" / limited print policy, and implemented a single brand look, featuring the "L" for Lincoln.
Results
- Turn-around time at quarter's end was reduced by 5 weeks.
- Total print expenditures per year were reduced from $800,000 to $ 250,000.
- Usage rates from marketing-supplied brochures increased four-fold.
- New fund sales beat industry average by 15%.
Delta Air Lines
Challenge
Delta just purchased Pan Am's European routes and needed fast awareness.
Actions
Long and short- length TV ads were developed to create new image for Delta as big player in transatlantic traffic.
Results
Awareness goals exceeded. New Age group, Adiemus, rose to the top of the charts. Theme music became music for all on-board experiences for next five years.
$21MM in Cost Avoidance through Fulfillment Re-Engineering - 1999-2000 Fidelity Investments
Challenge
Fidelity built its core mutual fund and discount brokerage business through pioneering a new model of direct distribution: run an ad in the newspaper, answer the phone, after the call send a "kit" — an investment prospectus and application — through the mail (required by law), make a follow-up call, and wait for the signed application to come back in with a check. In 1999 27% of applications sent out were returned with a check and a signature. In addition, $80M was spent annually simply on the printing, physical assembly, and shipment of kits, with $9M in materials thrown away each year as information went out of date. Our assignment was to lower costs, reduce waste, and increase closure rate.
Actions
The number of kits was reducedfrom 5,800 to 490. Print-on-demand technology was investigated and adopted, and a state-of-the-art print-on-demand vendor was found. Based on what print-on-demand technology required, applications and marketing pieces were all re-designed.
Results
- Closure rates improved dramatically from 27% to 38%.
- Per kit costs were reduced by 53 cents.
- Throwing away large inventories of printed material and frequent "stickering" were eliminated as business practices.
- Total financial impact was a $21M annual improvement to Fidelity bottom-line.
"The genius of what we accomplished on the project at Shipley's direction was to focus even more on the people and process challenges than just the software. Over time, people actually used the software, and our change agenda was largely accomplished."
- Jim Champlin, Head of CRM Campaigns, Allstate Insurance
Pizza Hut
Challenge
Make cinema commercial for less than $5,000 to improve sales in restaurants near movie theaters.
Actions
Reviewed all existing footage from several countries, and edited together with "mock" Action Movie soundtrack and witty credits.
Results
Budget and sales goals achieved.
Top 401(k) Roll-Over Program in Financial Services Industry - Fidelity Investments
Challenge
As the largest holder of 401(k) assets in the United States, Fidelity wanted to maximize the retention of assets in the company among terminated employees.
Actions
Focused on the participant experience by providing an educational kit sent at point of termination or retirement, an outbound call, and a dedicated inbound call gate.
Dedicated sales force to detect major employee movements in advance and gain sponsor permission for on-site work was hired and deployed.
Results
- Overall, program has gone over 8 years from 32 cents to 58 cents on the dollar retained. During my watch (last 18 months), figure moved from 55 cents to 58 cents.
- Dollar amount is $4B per year.
- It is the leading asset retention program in the industry.
Global Marketing Management at BBDO
Arguably the most successful of the large advertising agencies in the world today, BBDO was not always that way.
Challenge
We had just been put on notice on our largest multinational accounts and had lost two pitches because we could not coordinate our international network to deliver a single, global message. Even though our strategies and campaigns were considered outstanding.
Action
We established account coordination procedures, cross-company revenue-sharing, and hired several experienced global account managers.
Results
"On notice" accounts like Gillette and Henkel were kept and grew. Several global new business pitches were won. Today global business is 80% of BBDO's portfolio.
Changing a Service Culture into a Sales and Service Culture - Fidelity Investments
Challenge
In 1996 Fidelity Investments had developed a state-of-the-art customer service organization through four call centers of 700 to 900 representatives each. In this highly service-focused environment, "Sales" was considered almost a dirty word. Management wished this enormous resource to be re-directed from a service-only footing to a service and "revenue generation" (or sales) orientation.
Actions
The strategy chosen by management to effect this change was to introduce the concepts of "1 to 1 Marketing" (subsequently to become known as "CRM" or customer relationship management). I was brought into Fidelity to lead this effort. Key actions taken included building a consensus for a future vision, developing appropriate software (ultimately Siebel Systems), taking the existing sales function to the next level, re-engineering call routing and rep roles. All actions were taken after inclusive "visioning" meetings and extensive piloting and testing.
Results
- Customer satisfaction finally broke through 80% ceiling to 93% level.
- Assets gathered per rep increased 70%.
- Improved sales conversations led to an addition $1.4 billion per year in assets gathered.
- About CRM software, six years later, current reps say, "I can't imagine doing my job without Symphony."
Highest Satisfaction Work Unit
Challenge
As part of changing Fidelity's call center culture from service to service and sales, it was necessary to build a strong team of direct reports.
Action
Defined five positions and job descriptions with specifications for each. Hired excellent candidates on the basis of complementary skill sets and overall team chemistry. As a group, we accelerated the pace of "forming, norming, storming, performing" by engaging an external coach and working through our own 360° process.
Results
- Shipley's department scored 58% "extremely satisfied" with work - the top score in a 3,000 employee division (average was 39%).
- Four of Shipley's five direct reports were promoted when project was completed.
"The team Shipley put together to bring CRM to Fidelity was a highlight of my professional career. I especially appreciated the collaborative and collegial style we enjoyed together, and a lot of that was due to Shipley's coaching of the team ..."
- Jim Champlin, Head of CRM Campaigns, Allstate Insurance
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