Jenny Craig Case Study

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Nov 18, 2013 (3 years and 4 months ago)

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Integrated Brand Response

Jenny Craig Case Study

iMedia Brand Summit Presentation

Fusion Process


Process, not channel driven


Merging of 2 diametrically opposed disciplines


brand and
direct response


Accountable media


Test and learn strategy


Jenny Craig


A Pioneer in
Blending Brand and Direct
Response

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 Craig’s remains flat,
resulting in a decline in share of voice


Jenny Craig felt the effect of Atkins




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

Kirstie Alley Campaign


Creative Examples

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

Challenge





Identify media types and vehicles that
are providing the most efficient response


What’s 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

MMA


Marketing Effectiveness Realized


Forecasting


Marketing mix analysis


Optimization


Portfolio management


What
-
if planning & simulation

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

Solution: MMA’s 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

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

Direct Response TV Tracking Overview

Vanity Number and URL Tracking: Unmatched Superiority


Advantages of vanity numbers and URL’s


Increased drag


Less expensive during production


Consumer friendly


Disadvantages of vanity numbers and URL’s


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 don’t 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

Vanity Number and URL Tracking: Carat’s Proprietary Solution!


In tie situations, Carat’s 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, Carat’s 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


Carat’s proprietary system leads the industry, taking the
guesswork out of vanity number and web address tracking

One Slide with Results by Cable Network

Network Performance Index (based on Spend : Response)
0
100
200
300
400
500
600
700
800
900
1000
ABC Family
A & E
BBC America
Bravo
DIY
Direct TV Female
Direct TV Women's Lifestyle
Discovery Health
Discovery Home
Dish Network Women
E!
Fine Living
Fit TV
Food Network
Fox News
Gameshow Network
Hallmark Channel
HGTV
Lifetime Movie Network
Lifetime
Lifetime Real Women
Oxygen
Style
TV Guide Channel
TLC
TBS
TNT
TV Land
The Travel Channel
Women's Entertainment
Network
Index
DR Index
Brand Index
FY’05 Search Strategy / Performance

FY’05 Search Engine Marketing

Strategy / Performance


What we did in FY’05


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




Strategic Dayparting


Google Campaign Setup


Performance Based Analysis of Inventory


Tiered Exposure Control


Daypart Bidding



Scaled Bidding Strategy based on Daily Conversion Analysis


Exposure
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mon-Tues
Wed-Thur
Fri-Sun
Exposure
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

Contextual Advertising Example

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 (FY’06)


weight loss center, diet center, weight
support center


Cross Channel Integration


Support Celebrity Spokesperson


Capture overflow from other channels


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 Fiscal’05, at a
favorable cost per lead.


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%

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