Integrated Brand Response Jenny Craig Case Study

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Integrated Brand ResponseJenny Craig Case Study

• iMedia Brand Summit Presentation

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Fusion Process

• Process, not channel driven
• Merging of 2 diametrically opposed disciplines
  brand and direct response
• Accountable media
• Test and learn strategy

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• Jenny Craig A Pioneer in Blending Brand and
  Direct Response

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Jenny Craig

• Jenny Craig is a diet center with over 400
  corporate and franchise locations in the U.S.
• Customized weight loss options are available
• Diet Center competition is fierce, with
  competitive budgets increasing, while Jenny
  Craigs remains flat, resulting in a decline in
  share of voice
• Jenny Craig felt the effect of Atkins

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Campaign Overview

• Kirstie Allie campaign launched January 2005
• Desire to make Jenny Craig more contemporary,
  while simultaneously driving incremental lead
  volume
• Campaign employs a blended strategy of fixed
  branding and traditional direct response
• Must drive brand preference, image enhancement
  AND efficient phone volume

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Kirstie Alley Campaign

• Creative Examples

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Objectives

• Increase revenue vs. year-ago
• Increase centre leads, sales, return-to-actives
• Optimize cost/call for balance of volume and
  efficiency
• Reduce overall cost per sale
• Continue to grow Jenny Direct and Jenny.com
  registrations
• Improve brand perceptions - get people to
  consider the brand in a whole new light this is
  a whole new Jenny Craig

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Challenge

• Identify media types and vehicles that are
  providing the most efficient response
• Whats the optimal mix of Spot TV, Spot DR, Cable
  TV and Cable DR and Online?
• Which Cable networks and Spot TV stations drive
  the most efficient volume?
• Increase ROI
• Reduce the average cost per lead
• Increase total lead volume
• Increase revenue by 10
• Increase new member deposits

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MMA

• Marketing Effectiveness Realized
• Forecasting
• Marketing mix analysis
• Optimization
• Portfolio management
• What-if planning simulation

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Strategy Finding the Mix to Drive Sales

• MMA ROI analysis
• Revealed several tactical changes to the media
  mix investment strategy that could be employed to
  improve performance metrics
• Media mix must be adjusted to optimize volume and
  efficiency, given flat budget and shrinking share
  of voice
• All strategic media tactics need to focus around
  increasing lead volume, at an efficient cost per
  new lead

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Solution MMAs Optimization

• Acted on MMA optimization recommendation
• Reduced Spot TV spend in top markets
• Using Core Direct, evaluated lead metrics, even
  on fixed
• Reduced Spot DR spend in top markets
• Invested Spot DR only on historically good
  performers
• Reinvested inefficient spot onto National Cable
  DRTV
• Tested, evaluated and optimized existing and new
  networks on a weekly basis
• Strategically selected and invested on cable
  networks based on fixed or DR strengths and CPL
  efficiencies
• Recommended reduced spend on radio

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MMA Provided Overall Direction, but

• Half of my advertising is not working which
  half?
• Optimize my offline like my online
• Desire to drill down to the individual cable
  network
• Core Direct Solution

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Direct Response TV Tracking Overview
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Vanity Number and URL Tracking Unmatched
Superiority

• Advantages of vanity numbers and URLs
• Increased drag
• Less expensive during production
• Consumer friendly
• Disadvantages of vanity numbers and URLs
• Difficult to track in a tie situation where two
  or more stations/networks run spots
  simultaneously
• Most tracking systems significantly miss the
  mark in sophistication
• Computers dont use existing database, which
  contains historical information to determine the
  media that delivered the call spikes, during a
  tie
• Impossible to accurately track newspaper, network
  radio

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Vanity Number and URL Tracking Carats
Proprietary Solution!

• In tie situations, Carats tracking system delves
  back into the database for average spikes
  created when a spot runs in a clean environment
• Applies historical insight to clarify ties
• If no prior data exists, Carats system adopts an
  exponential falloff approach
• Assigns calls to spots airing within proximity to
  each other
• The closer the call to the spot, the greater the
  likelihood the call will be allocated to that
  spot
• Carats proprietary system leads the industry,
  taking the guesswork out of vanity number and web
  address tracking

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One Slide with Results by Cable Network
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FY05 Search Engine MarketingStrategy /
Performance

• FY05 Search Strategy / Performance

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What we did in FY05

• Campaign Expansion
• Strategic Dayparting
• Google campaigns
• Daypart bidding (Yahoo Search Marketing)
• Utilize Emerging Technologies
• Contextual Search
• Local Search
• Leverage Niche Areas
• Engines
• Keywords / Themes
• Cross Channel Integration

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Strategic Dayparting

• Google Campaign Setup
• Performance Based Analysis of Inventory
• Tiered Exposure Control
• Daypart Bidding
• Scaled Bidding Strategy based on Daily Conversion
  Analysis

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Utilize Emerging Technologies

• Contextual Search
• A Media/Search Hybrid, with CPC pricing
• Far more exposure than just search
• Only pay when a user clicks
• Ads appear next to relevant articles content on
  web sites such as About.com

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Contextual Advertising Example
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Leveraging Niche Areas Engines Phrases

• Incremental traffic lead Growth
• Enhance Interactive
• Failed to meet performance requirements
• Ask Jeeves
• Success / Supplement
• Keyword portfolio expansion
• eTools menu planner, weight tracker, bmi
  calculator
• Life Events post pregnancy, reunion, marriage
• Healthy Eating/Recipes low fat, low calorie,
  diet recipes
• Centres (FY06) weight loss center, diet center,
  weight support center

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Cross Channel Integration

• Support Celebrity Spokesperson
• Capture overflow from other channels

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What were the results from the strategy?

• Optimization Expansion efforts help to grow
  traffic in Fiscal 05.
• Cost to attain traffic increasing
• Substantial lead increases resulted in Fiscal05,
  at a favorable cost per lead.

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Results

• National
• QTD cost per lead down 35
• QTD leads up 22
• Sales up 44
• Top Markets
• Despite lower local spend levels, Super Tier
  Markets leads up 25 and cost/lead down 33
• Sales up 44

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Key Learning

• Media Mix modeling provides critical insight that
  drives additional media optimization
• Blended strategy provides the greatest success

Balancing the strengths of fixed and DR, with
national and local tactics, drive maximum media
ROI