Disrupting Trends and Challenges for the Hospitality Industry
Rise of Online Travel Agencies
AccorHotels - Digital
Transformation
Presented by: Group 10D
Change in Customer Behaviour
Expectations
Consumers have become more
demanding than ever.
They expect a high level of services
and amenities at reasonable prices.
They are not afraid to switch hotels
if they are not happy with their
experience.
Information & Social
Behaviour
Guests are now more informed than
ever
Access to a wealth of information in
the form of reviews, photos, and
videos
More likely to do research before
booking
Propensity to use social media for
sharing travel experiences
Digital Orientation
Guests are very nowadays digitally
oriented
They expect seamless digital
experience and use smartphones
and tablets to book hotels, check-
in, and avail room service
Guests expect personalized
experiences with the hotel
understanding and per-empting
their needs and pereferences
Ease of accommodations
Power to comparison shop, pressure to compete on prices
Decline in direct hotel bookings, obligations to pay hefty
20-30% commission
Rise of Sharing Economy
Given rise to new types of accommodations
Challenge traditional hotels by being more convenient,
personalized, & cheaper
Increasing Importance of Technology
Guests expect to use their smartphones to check in,
book activities, and order room service
Hotels are forced to offer guests a seamless digital
experience for gaining competitive advantage
Rise of Online Contents and Reviews
More power in the hands of travelers to make informed decisions
Easier for travelers to compare prices and amenities across hotels
Difficult for hotels to hide poor service which is damaging to their
reputation
Blogs
Blogs are a great way to share information about the hotel, its
amenities, news, and updates. Business owners can also share Types of Online Content
tips and advices to travelers for boosting engagement.
Photos & Videos
Photos and videos are a great way to showcase the hotel
along with all the facilities that it has to offer. Customers can
get a visual feel of the rooms, the restaurants, and the nearby Why do people post content
attractions. online?
To share their experiences and help others
Reviews & Case Studies To build relationships with other travelers and
In hospitality industry, reviews are often used to share hospitality businesses
customer experiences with hotels. They often include ratings To promote their personal brand and business
and can be used to rank hotels. Case studies are in-depth To get rewarded/get discounts by some business
reports that highlight particular features and achievements of
the hotel.
What are some sources of
reviews?
Newsletters & Social Media Posts
Newsletters are usually sent to a list of subscribers via email Online review sites - TripAdvisor, Yelp., Google Reviews
and inform them about the lates news, updates, and offers Social media - Facebook, Twitter, Instagram
related to the business. Industry Publications - Hotels News Now, Restaurant
Social media posts leverage the reach of social media Business
platforms to share a variety of content to built relations with Word-of-Mouth
potential guests.
 Customer Journey in the Digital Age
What Customer is saying about Accor?

Social Media Monitoring Customer Surveys Online Forums and discussion boards
Methods Online Review Platforms Customer Support Interactions Brand Monitoring tools

Research and Pre-stay On-Site Post-Stay

Awareness
Customers become
aware of AccorHotels
through various channels
such as online
advertising, word-of-
mouth
recommendations, or
travel websites
Customers may also
directly visit AccorHotels'
website or mobile app
Ads, social media
posts, blogs, SEO
efforts, reviews
content
Role of
Booking
Consideration
Customers gather Once customers have
information about decided on a hotel, they
AccorHotels, compare proceed to book their
them with other options, stay. This can be done
explore different hotel through the Hotel
properties, amenities, website, mobile App, or
locations, and pricing through third party
Content put out by the websites
hotel, customer Customers can select
feedback, influencer room type, dates and any
opinion etc. are all key additional services.
Hotel descriptions, Clear and concise
reviews, photos, virtual information, prices, notifications, check-in
tours, vlogs comparisons itinerary, location info
Type of Content
Digital content influences every stage of the customer journey by providing relevant information, creating
Experience Experience Experience
Through different stages
Leading up to their stay, When customers arrive After customers check
AccorHotels engages at the hotel, they are out, AccorHotels may
customers through pre- greeted by the staff and request feedback Awareness Consideration Stay Post Stay Loyalty
arrival communications. guided through the through surveys or online
They may send check-in process. reviews, aiming to gather
confirmation emails, The hotel offers insights
provide information amenities, such as The hotel may also Objective: gauge Objective:
Objective: monitor Objective: gather Objective: Insights
about the hotel's facilities restaurants, spas, fitness provide incentives or
+ve &-ve aspects of Customer
and services, and offer centers, and business loyalty program benefits conversations feedback from on customer
assistance with any pre- facilities, to cater to to encourage repeat stay engagement and
about the brand previous customers sentiment and
arrival requests different needs. bookings Use customer brand advocacy
Use Social Media Use online review improvement
touchpoints Conversations on
pre-arrival emails, Information on surveys, feedback, listening tools platforms Use active listening
Leverage customer online platforms
services, booking info, loyalty information, Track keywords and customer opinion, Customer support
concierge services partner benefits satisfaction surveys Customer
hashtags exp., and rating interaction crucial
Platforms: on-site recommendations
Platforms: Twitter, Platforms: Trip Platforms: Phone
feedback, Post-stay Platforms: Online
FB, Instagram, Advisor, Calls, Emails, Live
emails, in-app forums (reddit) and
LinkedIn Booking.com, etc. Chats, etc.

notifications discussion boards

engagement, and enhancing the overall customer experience. It helps customers make informed decisions,
fosters trust, and builds long-term relationships between customers and AccorHotels

How can Accor encourage & motivate customers to share their experiences & views?
Feedback through client cards - Relevant?

Not Effective Go Digital

Social Media Incentive-driven User generated Implement Exclusive Online Personalized Survey
Engagement Referral Programs Content Gamification Communities Feedback Channels
Reasons
Create an engaging Establish referral Encourage customers Add an element of fun Create online Tailor surveys and
Convenience Cross Platforms social media presence programs that reward to share their stay and competition to the communities where feedback channels to
across platforms like customers. experiences, photos, customer journey customers can connect, each customer's
Facebook, Instagram, Offer exclusive and stories using Create interactive share travel & stay tips, preferences and
and Twitter. benefits, discounts, or dedicated hashtags games related to travel & share experiences previous interactions,
Offer frictionless
experience Real-time Analysis share captivating loyalty points for Curate and feature UGC experiences, offering can foster a sense of Send personalized
Easy to correlate in- visuals, inspiring stories, successful referrals. on Accor's website, rewards to participants. belonging & encourage emails or in-app
Use mobile apps, in- and interactive content. Tap into customers' social media platforms, It will engage customers active participation. notifications.
house reviews and social networks and and marketing and encourage them to Facilitate these
room tablets Use in-app surveys, Engaging with
Easy data collection reviews on online customers' posts and motivate them to campaigns to provide share their communities through
Greater instant messaging
participation
Personalization Analyse trends and platforms use relevant hashtags share positive social. achievements and dedicated forums,
channels to further encourage experiences with experiences on social social media groups, or
expected identify patterns participation. others. media branded online platform
Capture real-time
Targetted Actionable insights
sentiment
personalized to drive targeted
Address concerns Showcase Customer Testimonials and Reviews
messages improvements
immediately
Tailored follow-ups,
Display customer testimonials & reviews prominently on Accor's website, social media, and other marketing channels
exclusive offers or
Feature customer stories or conduct video interviews to add authenticity and inspire more customers to contribute their views
loyalty program
 How can AccorHotels integrate online/e-reputation into its business processes Structure of social and digital media initiatives

Creating 'Monitoring Collaboration with Centralization of initiatives

Team' for Online
Reviews
Since social media has increasingly taken
over the business and the industry, it is
important for the business to have a
team who takes constructive feedback
Positive feedback: Company should take
into account things that consumers liked
and should ensure its standardization
Tracking repeat
customers
Reviews help track satisfied customer, who
can come back, & annoyed customers, &
this can be used to build analytics to pre-
define the kind of offers and experiences
customers would like.
Engagement of
influencers
Online influencers and bloggers/vloggers
collaboration would help AccorHotels to
publicize the brand, which can help user
choose AccorHotels, and help them in their
decision making process.
Brand-owned touchpoints like advertising, social media pages etc.
PROS CONS
Customer-owned touchpoints are more credible
Consistent Brand Messaging creating cohesive brand image Can not access higher reach to wider range of audiences, covering
Efficient social engagement by a dedicated internal team all market segments
Effective execution due to better strategies and knowledge sharing Opportunity of better customer engagement due to direct
customer involvement is not leveraged
Hybrid structure
Brand-owned initiatives + Personalized and targeted campaigns + Community engagement in social media website pages

across business employees Enable chat feature

Negative feedback: A bad experience
can effect the entire business. Each
negative review should be monitored,
and ensured they are not repeated
across the chain
Employees represent the company & Company currently doesn't have feature
brand. AccorHotels can engage employees like chat for ease of access, and can work
at every step to promote AccorHotels on on Inbound marketing to attract potential
various social media platforms. customers, and also using the data of
queries as a measure of learning
Incentivizing employees to incorporate online reputation
Define clear key performance indicators (KPIs)
Encourage employees to become brand advocates
Tie customer reviews & ratings management or social media
Reward employees who actively engage in promoting the company's
engagement to performance goals and reward employees
positive image online through personal social media accounts.
accordingly.

Provide tangible rewards for online reputation management

Loyalty programs or subscriptions Establish a employee feedback loop
Bonuses, gift cards etc. to incentivize active participation of Receive ideas from employees for improving the company's online
employees in management & overview of social media reviews, reputation to a sense of ownership and encourage to actively
To reduce dependency on platforms, Accor can launch subscription, loyalty programs, etc. & enable direct booking of
tweets etc. participate.
services via Accor's website. This would help the company to get all the reviews and feedback on a single platform

Leveraging digital technologies and social media to strengthen customer relationships

Personalized Communication Social Media Engagement

Utilize customer data insights to personalize communication.

Actively engage with customers on social media platforms by
Leverage technologies like CRM systems to stay connected
responding to comments, messages, and mentions promptly.
with customers.
Regularly share updates, promotions, and exclusive content
Send targeted promotions, and relevant content based on
to keep customers informed and engaged.
their interests and behaviors.

Online Reputation Management User-Generated Content

Encourage customers to share their experiences through user-

Monitor and manage online reviews & ratings across various Team:
generated content (UGC) on social media platforms.
platforms.
Run contests, hashtags, or campaigns that encourage
Respond & proactively address to both positive and negative Mayank Goyal 2211169
customers to post about their stay or travel experiences at
reviews to prove commitment to resolve issues. Shrinidhi H 2211171
AccorHotels.
Ayushman Mukherjee 2211173
Mobile Apps and Digital Services Virtual and Augmented Reality Experiences Ritesh Kumari 2211181
Ved Vineet 2211213
Develop a user-friendly mobile app that offers personalized
Utilize AR-VR technologies like Virtual tours of hotel
services like mobile check-in/out, room customization & in-
properties, 360-degree videos of destinations to offer
app concierge services.
immersive experiences to customers and to visualize their
Leverage push notifications and location-based services to
experiences before booking.
provide recommendations, and exclusive offers to app users.
 Q1. What factors and trends are disrupting the hospitality industry?
Accor Hotels and The
 Proliferation of peer-to-peer digital technologies: has made it
Digital Transformation: easier for travelers to connect with each other, share their
Enriching Experiences experiences throughout their journey, and increase the visibility of
their experiences.
through Content
Earlier Now
Strategies along the  Rise of online transaction platforms: for bookings & payments,
coupled with the widespread availability of hotel connectivity, has
Customer Journey led to customers expecting quicker responses and a decrease in
Travel agents were Multiple players involved in
contacted for flight the industry:
traditional customer support channels. bookings, getting • OTAs
destination brochures, • Metasearch sites
DIGITAL MARKETING  Internet penetration: The penetration of mobile devices has led hotel bookings, tour • Review sites and
STRATEGY to an increase in real-time feedback from customers, putting bookings, packages, forums
pressure on hotels to be more agile in their operations. They bundled deals, etc. • Social media
Case Submission need to be able to quickly respond to customer feedback. • Alternative lodging
Minimal comparative platforms
 Emergence of new actors: The travel industry has become information and little • Review platforms
increasingly fragmented in recent years due to the rise of new feedback. High degree of comparison
GROUP E: technologies. In the past, the travel industry was dominated by and continuous feedback.
travel agents but today there are a lot of additional players (as
Shubhang Gopal (2211391)
shown in the table).
PV Abhilash (2211410)
Subarna Sahoo (2211349)  Shift in power dynamics: Digital transformation has empowered
customers to observe more, demand more, complain more,
Rushad Dumasia (2211368) switch more, and share more with online communities, keeping AirBnB, a $8.4Bn. Expedia, a $15Bn.
Diksha Kumari (2211239) hospitality companies on their toes. alternative lodging online travel
platform aggregator (OTA)

Q1(a). What are the challenges faced by Accor Hotels as per the case? Q2. How is customer behavior in hospitality changing?

Challenge 1: Dealing with digital disruption by enabling digital transformation to

compete with new actors in the hospitality ecosystem, ensuring customer-centric
presentation on digital platforms, and ensuring high levels of online engagement
with the Accor brand.

Challenge 2: Responding to changing customer profiles and expectations by

re-evaluating the customer journey in a digital setting, understanding the different
forms of online content and their impact on the decision-making process of an Accor Sharing Experience Self-Powered Comparing to get the Best
customer.
Travelers Connect with other travelers With Digital technology, customer needs A lot of information is available online,
sharing their experiences less handholding and speedier response helping customers get the preferred
Challenge 3: Need to integrate content marketing efforts with existing business deals at the cheapest rates
processes. It was also essential for Accor to incentivize employees to ensure the
 Mobile-friendly websites for online OTAs for price comparison
creation of a more agile organizational structure which could incorporate e- Review Sites booking and payments.
reputation and other such metrics into the employees’ everyday responsibilities.  Communication between hotel and
customer through WhatsApp.
Challenge 4: Leveraging publicly available online content in real-time to develop Travel blogs
 Real-time feedback collection through
better marketing strategies, improve customer experience, attracting potential mobile devices.
Aggregators and Metasearch sites
customers from OTAs and Accor’s website and disseminating positive reviews
across online channels. Brick and Mortar travel agents
Social Media going out of business
Q3. What are the different types of online content in the hospitality industry Q3(a). Where do reviews come from?
(what are the main reasons why people post content, as well as the purposes the
posts serve in guiding customers)? Social Media
Individuals post their travel experiences online on social media sites like Facebook, Twitter, and Instagram, which is
a potential source for review for family, friends, and acquaintances.
Celebrities & ‘influencers’ are leveraged for their reach to a large & loyal base of audience.
Different Types of
Online Content in Why do people post online content?
Hospitality Industry
• Altruistic reasons: Some customers provide feedback with the altruistic goal of helping the Review sites
Published Content and company improve its products and services for future users. There are dedicated websites focused solely on hotel reviews, such as TripAdvisor, Yelp, Dianping, and Google
• Vengeful reasons: Some customers provide feedback with the vengeful goal of publicizing Reviews. Many travelers refer to these websites to gather insights and make informed choices as to their booking.
User Generated Content
the company's failures in order to discourage other potential users from doing business with
(UGC)
the company.
• Online persona creation: Some customers provide feedback with the goal of establishing Online Travel Agencies (OTAs)
Customer testimonials, a social identity and online presence, which can lead to recognition of their voice in the
travel blogs, images and OTAs like Booking.com, Expedia, and TripAdvisor allow customers to leave reviews and ratings for hotels they have
community. stayed at. These platforms are popular among travelers for researching and booking accommodations, and the
videos on social media,
reviews play a significant role in influencing potential customers' decisions owing to peer trust.
reviews, featurettes, price
comparison charts etc. How does online content guide customers?
Hotel Websites
• Online content provides potential customers with valuable insights into the quality of a Hotels feature customer reviews directly on their websites which are collected by the hotel’s management. This
product or service before they make a purchase, helping them avoid poor products. involves taking real-time feedback at checkout on the hotel’s device or collecting feedback online (via eMail) after
• Online content can help potential customers compare different products or services to checkout. Providing reviews on their own platforms allows hotels to showcase positive feedback and encourage
identify the best deal and the best experience direct bookings, saving on commissions and fees.
• Online content helps increase customer awareness about unfamiliar products, leading to
eventual product discovery and acceptance Other sources
• Online communities help customers feel included within a social group and generates Case studies
trust that guides their purchase decisions. Travel blogs
Press releases

Q4. What does the typical Accor customer journey look like? Q4(a). How does content, in its various forms, affect the various stages of the
customer journey?

Post stay
Awareness Search Booking Stay
engagement Types of Educational Persuasive
Content To build awareness To convert leads into sales

 OTAs and Aggregators feature listings with descriptions of The customer is benchmarking her
the hotel and amenities, ratings, and reviews, allowing expectations based on promotional
travelers to compare content against the actual condition of
 TV commercials  Convenience in check-in  Review sites and travel blogs, as well as social media the property, amenities, and service
 Compare prices Accor's loyalty program,
 Radio advertisements  Hygiene conversations, serve as forums for peer trust levels
and amenities Accor Live Limitless,
 Print media  Amenities (Fitness centre,
 Read reviews provides a digital
 Billboards, brochures, etc. Wi-Fi connectivity, laundry,
and ratings touchpoint for members to
 Events & sponsorships etc.)
 Check for manage their accounts,
 Partnerships with travel  F&B options
packages, track their rewards, &
agents, airline operators, etc.  Quality service (including the
bundles, etc. access exclusive offers Awareness
Search
Booking Travel & Stay
Post stay
 Phone inquiries conduct of the hotel staff) Comparison engagement

Digital Touchpoints
 OTAs
 Website
 Aggregators
 Social Media Alternative lodging platforms  Experiences shared Brand Storytelling through: CRM Analytics deployed will result in Customer feedback is collected
 Review sites
 eMail Marketing (eg., Airbnb and HomeStay) through Social Media  Visuals, travel tips, and hotel highlights shared customers being offered discounts (first- directly in writing, through eMail, or
 Travel blogs and
 Search Engine Marketing as an emerging competitor to  Review Sites through the website and social media sites time customers) or loyalty rewards indirectly through social media
forums
 Mobile applications of traditional hotels  Travel blogs & forums  Influencer collaborations (repeat customers) via websites or posts, or reviews on forums and
 Social Media
aggregators and OTAs  Targeted advertising through SEO and social applications sites. Social Media Listening
 Website
media needed for responsiveness
Q5 & 5a. How can Accor collect information about what the customer is Q6. How can Accor encourage and motivate customers to share their
saying about AccorHotels? Should it continue to rely on client experiences and views?
cards either filled in at the front desk or feedback cards in the
room?

Traditional Method Contemporary Feedback Collection Methods

Too little, too late feedback Allows Responsiveness by providing faster

Engage with Customers Incentivize Contests on User- Online Reviews and
access to insights from customer interactions on Social Media Feedback Generated Content Testimonials

send customer feedback links via eMail and

Till the early 2010s, Message, with a tie-in to their loyalty program, Accor Hotels can actively
Accor Hotels can offer
Accor Hotels can organize
Accor Hotels can actively
hotels relied almost incentives for customers request customers to leave
encouraging higher response rates interact with its customers contests or campaigns that
entirely on client cards to share their reviews and testimonials on
on various social media encourage customers to
experiences through popular review platforms
at the front desk or in Employ Social Media Listening to analyze platforms like Facebook by
rewards such as
share their experiences
such as TripAdvisor,
the room to collect what is being posted about them online through actively engaging with through user-generated
discounts on future Google Reviews, OTAs or
customer feedback a dedicated internal task force or outsource them through comments content, such as photos or
stays, loyalty program their own website. They
and posts and showing videos. By offering the
points, or exclusive can send follow-up emails
Google Alerts for content monitoring genuine interest in chance to be featured on
perks. By providing after a stay, asking
customer feedback. This their official channels,
tangible benefits, customers to share their
would encourage customers are motivated to
Review, OTAs, and Metasearch sites can actively customers are more feedback and provide
Challenges customers to come forward participate and share their
scrutinize the content the customer posts about likely to participate and convenient links for the
to share their experiences. positive experiences.
different hotels. share their thoughts. same.

 Limited Response Rate  Lack of Specificity

 Response Bias  Incomplete Information

Q7. How can AccorHotels integrate online content/e-reputation into its Q8. Should social and digital media initiatives be centralized, or should
business processes? Accor design an alternative structure?
Accor should follow a decentralized approach where the central team and local team both have their set of functions
 Accor Hotels can leverage their online content/e-reputation into broader marketing
campaigns. They can share blog posts, videos, and other content through social media Step 1: Integrating Online Content System
channels to increase reach, engagement, and brand awareness.
 They can also collaborate with relevant influencers in the travel and hospitality industry
Marketing and PR to amplify their online content. Resolution
Collecting response Analysing to generate
data from all sources insights
Content Creation

 Accor Hotels can analyze online content to gain insights into areas of improvement. By Step 2: Insights go to the Central and Local teams based on the scale and scope of the Insights
identifying recurring themes or suggestions, they can identify specific aspects of their
Product products or services that need enhancement.
Improvement  The improvements can be across UX, product tech etc., Central Team Local Team
 Maintains Brand Image  Creates Customized
 Creates content for Content content leveraging local
social media and tradition
 Accor Hotels can gain valuable insights from their online content on customer needs, strategy for all the Experience  Content in the Local
expectations and align their long term strategy based on that.
Long term  By pinpointing areas where they may be receiving negative sentiment or experiencing
hotels language
strategy customer dissatisfaction, they can prioritize those aspects for strategic modifications.  Allocates Budgets for Knowledge  Faster response to
local teams to leverage queries
digitally
Q8(a) How do you incentivize employees to incorporate online reputation?
01 Training &
Education
 Orient employees on the
importance of online reputation
management and how it impacts
the company's overall success
 Offer workshops or online
courses that cover topics such
as online review management,
social media engagement, and
responding to guest feedback
02 Performance
Measurement
 Set measurable goals related
to online review ratings,
response times, or guest
satisfaction scores
 Link incentives to the KPIs
identified above, with a periodic
recognition program
Q9. How can Accor leverage digital technologies and social media to
strengthen relationships with its customers?
03
Open Communication
 Accor Hotels can collect and analyze customer data to gain insights into
preferences and behaviors, enabling them to enhance the customer experience
 Foster an environment that
and develop targeted marketing strategies
stimulates open communication
 By leveraging artificial intelligence, Accor Hotels can personalize guest
among employees and provides
Use of data analytics experiences by utilizing past customer data to make tailored recommendations
channels to contribute ideas and
insights related to online
reputation management
 Recognize and appreciate
 Accor can maintain an active presence on popular social media platforms such as
employee feedback and
implement improvements based
Facebook, Instagram, Twitter, and LinkedIn
 By regularly sharing engaging content, updates about offers and promotions, and
on their suggestions
responding to customer comments and messages, Accor can foster direct and
Social Media meaningful interactions with customers, building stronger relationships

04 Employee 05
Accountability
Empowerment
 Accor can use digital technologies to develop and manage loyalty programs that
Any action of negligence could offer personalized rewards, exclusive perks, and interactive elements
Provide tools and platforms that
have a significant adverse impact  By integrating gamification techniques, such as points, badges, or challenges,
enable employees to monitor and
on the hotel’s brand; a culture of Loyalty Programs Accor can increase customer engagement, encourage repeat bookings, and
respond to online reviews and
ownership should be driven and Gamification strengthen relationships with loyal customers
social media mentions efficiently in
throughout the organization by the
real-time
top management

THANK YOU Accor Hotels & Digital Transformation

Digital Marketing Strategies
Group F/8
2211260 Deepak Pavan
2211207 K L N Sandeepa Sarma
2211291 Kiranmayee
2211312 CH Sai Kiran Reddy
2211468 Satya Sai Krishna
 Factors & Trends disrupting the Hospitality Industry Challenge faced by AccorHotels

1 Access and penetration of Internet all around Need to compete on price with OTAs and peer-to-peer accommodation
platforms
2 Increase in awareness due huge online content
Need to differentiate itself from its competitors and offer unique and
3 Emergence of New actors (OTAs, forums, review sites, competitors) personalized experiences to its guests

Need to adapt to the changing needs and expectations of consumers

Shift in power, customers voice their opinions freely through various
4 and offer more sustainable travel options
channels and peer reviews more powerful than PR departments
Need to integrate digital capabilities in its organizational methods and
5 Reviews became the new currency, driving bookings
encourage employees to leverage digital content

Changes in customer behavior Type of online content & source of reviews

Consumer journey of events

Content published User generated content
by Hotel (UGC)
Requirement Information Choice Purchase Experience Feedback

Travel Agents Staff &

Type of Online “Content to educate” and “Content to entertain” and
Vacation Feedback Content
Before digital Brochures Service “Content to convert” “Content to persuade”
Work Travel Agents cards
transformation Events
Word to Ambience
Direct calling
mouth Amenities Mainly used as a promotional tool this
Majorly includes Reviews, Testimonials,
content involves descriptions, Photos,
Staff & Photos, Q&A Forums, Video content
Vacation Price lists, feedback systems, etc.
Travel Agents service
Work Direct website Review sites
After digital OTA Direct website Ambience
Events Travel Blogs Travel Blogs
transformation Peer
Aggregators
Social Media
OTA Amenities
Social Media
Review sites Booking
influence
experience Sources of Travel Blogs, Travel Sites, OTA Sites, Social media posts, Dedicated review websites,
reviews Surveys, Contact forms, own Website feedback

Major changes observed

Accor Customer Journey Content & Its affects

Research &
Awareness Booking Pre-Arrival
Consideration
Stages that affect customer buying decision affects loyalty

Pre-Stay
Awareness Consideration Purchase Experience Post-Purchase

Arrival & Stay Departure & Reinforce value

Create awareness Offerings
Check-In Experience Check-Out Grab attention Unique selling point
proposition Foster Loyalty
Necessary info for Drive engagement
Provide Insights Benefits
purchase
During Stay
Blog posts
Hotel Descriptions Room Descriptions Personalised Mails
Social Media
Virtual Tours Pricing Information Social media posts
Content
Post-Stay Loyalty & Repeat Guest Reviews Special offers showcasing positive
Travel guides
Experience Business
Destination related
Videos showcasing Customer support guest experiences
facilities resources Newsletters
articles

Post-Stay

Collecting Customer Feedback Integration of Online Content in Business Processes

Feedback Channels
Data + Action
Offline Digital

Data Collection Analysis & Insights Action

Front Desk Feedback Physical Cards Online reviews SML Email Surveys Google Alerts

Benefits Limitations Benefits

Timely feedback Broad Reach Anonymity & Honest Feedback
Listen to Customer
Convenience for guests Enhanced Data collection & Analysis
Authentic Analysis of data Business organisation shall go
Communication & Support
Ease of use Not detailed - From reviews (Direct) through creating analysts and
Limitations Limited Demographic Representation Potential Bias channel to Operations team to
- From data (Indirect) marketing verticals to interact
Too little information Too Late Faster Access and better consumer Insights resolve issue, design teams to
-From different with online content
improve UX etc.,
platforms/Mediums of social
Encourage/Motivate Customers to provide feedback interactions

Provide easy and convenient Offer Incentives and rewards Personalised follow ups, emails
feedback Channels like bonus loyalty bonuses for feedback, engaging on social media
 Structure for social and digital media initiatives Online Reputation - Employee Driven

Parameter Central Team Local team

Education about the impact of online reviews, ratings, and social media. Offer
Traning & Education
specific training on how to respond to online reviews and engage with guests.
Consistent
Possible with Central team X
Branding

Incorporate online reputation metrics into employees' performance evalutions.

Local Relevance X Efficient with Local team Performance Metrics
Set clear goals & expectations related to online reviews, ratings, feedback.
Efficient Resource
Efficient with central team X
Allocation
Rewards such as certificates, monetary incentives, or recognition within the
Recognition, Rewards
organization. Celebrate employees who effectively resolve online concerns.
Agility & Timeliness X Quicker response to local events & trends Hybrid
Data & Analytics Establishment of standardized metrics Customization Structure Employees who consistently receive positive guest feedback or contribute to
Incentive Program
increasing positive online reviews can be eligible for rewards or bonuses.
Local teams can provide feedback on local
Collaboration and Centralized teams can share best practices, industry trends,
initiatives and share insights gained from direct
Knowledge sharing and innovative strategies across regions.
interactions with the local audience.
Senior leaders motivate employees by working on ground zero itself. Online
Empowerment
Local teams, being closer to the affected regions,
reputation is key KRA for senior leaders as well and not just employees
Centralized teams can develop crisis management protocols
can provide on-ground insights and implement
Crisis Management and provide guidance to local teams for consistent
communication and actions.
crisis-specific initiatives that address the local Offer opportunities for employees to develop their skills in this area through
context effectively. Career Oppurtunities
specialized training, mentorship, or participation in digital marketing projects.

Customer Relationship Management - Digital Technolgies &
Social Media
Actively engage with customers on social media platforms such as Facebook, Twitter, Instagram,
and LinkedIn. Use social listening tools like Hootsuite, Sprout Social, or Brandwatch to monitor
online conversations about the brand and industry, allowing proactive engagement and personalized
interactions.
Customer Relationship Management - Digital Technolgies &
Social Media
Collaborate with influencers or bloggers in the travel and hospitality industry to promote the brand.
Influencers can create content featuring their experiences at the hotel, sharing it with their engaged
audience. Tools like Upfluence and Traackr can assist in identifying and managing influencer
partnerships.

Implement user-friendly online booking systems that enable customers to make reservations
conveniently. This can include integrating direct booking functionality on the hotel's website or Encourage guests to share their experiences on social media using branded hashtags or by tagging
utilizing third-party platforms such as Booking.com, Expedia, or Airbnb. the hotel's official accounts. Curate and share user-generated content on the hotel's social media
channels, website, or marketing materials.

Encourage guests to provide feedback and reviews through dedicated platforms like TripAdvisor,
Google Reviews, or Yelp. Monitor and respond to reviews, both positive and negative, to demonstrate The aim is to create a perception for customers that booking through the Accor website surpasses
active engagement and commitment to guest satisfaction. booking through any Online Travel Agency (OTA) by enhancing simplicity in the platform interaction
process. The increased price associated with booking directly should be explained to customers,
highlighting the additional complimentary offerings available to them. This approach can be leveraged
to reinforce and enhance the existing loyalty programs.
 Digital Marketing Strategies-Term 4

Thank You
Bazaar.com-Measuring ROI

Case Analysis by:

Group – K
Sharon Tincy B S- 2211426
Shruti S-2211501
Priyamvada – 2211416
Vignesh–2211139
PT Mohan-2211339

BAZAAR.COM ROI | Google| Bob's Approach

▪ Bazaar.com is a leading online retailer in US Google vs Bing Sponsored Search Statistics for Branded Keywords
▪ Runs Paid search Ads on both Google & Bing Basis Google Bing
▪ ~20% of total traffic for branded keywords is obtained through
Cost per click: $0.60
Ad Copy Same
sponsored ads (Google) Conversion rate (% of clicks that buy)= 12%
Keywords Same
▪ Objective: ROI on sponsored search ads for branded keywords Average profit per conversion (buyer)= $21
Customer Mix Identical Expected Average Profit per click = $21*12%= $2.52
on Google
Campaign Size Larger Smaller

Expected Profit is the same whether the click is from sponsored or organic search

Before Glitch (Week 1 – 9)

Organic Clicks hovering around 120k – 128k per week
Sponsored Clicks steady at just over 30k per week
After Glitch (Week 10 – 12)
Organic Clicks jumped by at least 25k per week
Sponsored Ads Suspended
Did Organic Clicks make up for the missing Sponsored Clicks?
*Technical Glitch from week 10
Bob's ROI Calculation
ROI = ($2.52-$0.60)/$0.60= 320%
$1 spent on paid search (Branded Keywords) generates in return a contribution of $3.20
Flaws
Incremental Gains brought in by Sponsored Ads?
i.e. Impact of stopping Sponsored Search Advertising?
ROI | Google | Impact of Stopping Sponsored Search Ads ROI| Results from Bing | Controlling for Systematic Differences
Average Weekly Clicks with and without Google Campaign Average Weekly clicks from Bing
Analysis of Weekly traffic from Google Analysis of Weekly traffic from Bing In weeks (10-12), total weekly clicks from Bing
Clicks Weeks (1-9) Weeks (10-12) Difference Percentage loss of clicks due to absence of sponsored ads decreased by
Clicks Weeks (1-9) Weeks (10-12) Difference
Sponsored 31,390 0 -31,390 = - 8,109/ 1,56,585 = (19,597-18,901)/19,597
Sponsored 3,920 3,774 -146
Organic 1,25,195 1,48,477 23,282 = - 5.18% = 3.55%
Organic 15,677 15,127 -550 (for e.g. due to seasonality)
Total 1,56,585 1,48,477 -8,109
Total 19,597 18,901 -696

ROI based on Google Clicks Flaws with this approach ▪ Even on Bing, there is a slight
drop in both organic and
Average Weekly traffic gain from sponsored search: 8109 clicks ▪ What if the first 9 weeks were systematically sponsored clicks after week 10.
Incremental gain from these clicks: 8109 * $2.52= $20,434 .. (1) different from the last 3 weeks?
▪ Is this drop in clicks only due to the absence ▪ This shows us the possibility that
Average Weekly clicks from sponsored search: 31,390 clicks of sponsored ads? Is it attributable to some there is a slowdown in
Weekly cost of sponsored search: 31,390 * $0.60= $18,834 ... (2) other external factor too? people's purchasing, since the
same decrease in organic clicks is
Return On Investment: [(1)-(2)]/(2)
shown on both search engines.
ROI: ($20,434 - $18,834)/ $18,834= 8.49%

ROI| Decline in Total Traffic | With & without Sponsored Ads Way forward | Breakeven Cost per Click (CPC)
Decline without Sponsored Ads Decline with Sponsored Ads (Natural Seasonality) ▪ Incremental Gain per week = $6,411
▪ Cost incurred per week = 31,390 clicks * CPC
Average Weekly total traffic from Google Average Weekly total traffic from Bing
▪ Breakeven CPC = $6,411/ 31,390 = $0.20
Clicks Weeks (1-9) Weeks (10-12) Difference Clicks Weeks (1-9) Weeks (10-12) Difference
▪ Bazaar should bid <$0.2 on branded keywords for the campaign to be profitable
Total 1,56,585 1,48,477 -5.18% Total 19,597 18,901 -3.55%
Once Sponsored Ads stopped, did Organic Clicks fill in the gap?
Sponsored Ads increased total weekly clicks by = 5.18% - 3.55% = 1.62% ▪ (Projection of what paid clicks would have been for weeks 10-12) - (Jump in organic clicks to fill the gap)
▪ Assumption: We will use the value at week 9 for projected sponsored clicks during Weeks 10, 11 & 12
ROI of Google Campaign
▪ Calculation: Projected Traffic Analysis
Incremental Weekly traffic gain from sponsored ads : 1.62% * 1,56,585 = 2,544 clicks Clicks Week 10 Week 11 Week 12
Incremental gain from these clicks: 2,544 * $2.52= $6,411 .. (1) ((3*30,401) - 69,845)/ 3 = 7119 clicks per week not
Sponsored 30,401 30,401 30,401
made up by organic search. About 1-(7000/30,000)
Organic 150,188 148,658 146,584
= 77% of paid clicks would have been filled organically.
Average Weekly clicks from sponsored search: 31,390 clicks
Weekly cost of sponsored search: 31,390 * $0.60= $18,834 ... (2) Average organic weekly clicks (Weeks 1 to 9) = 1,25,195
Average revenue per click = 0.23*2.52= $0.58;
Return On Investment: [(1)-(2)]/(2) Gap Filled by Organic Clicks In Weeks 10 to 12
So, Bazaar was losing money ($0.58 < $0.6) from
ROI: ($6,411 - $18,834)/ $18,834= -66% the sponsored search overall! (1,50,188 – 1,25,195) + (1,48,658 – 1,25,195) + (1,46,584 – 1,25,195)
= 69,845
Way forward | How can Bazaar.com improve on its ROI for search ads?
Group
• Continuous Keyword Analysis :
• Maintaining a list of Bible keywords – must-bid keywords
Measuring ROI on
• Refine keyword list to accommodate seasonality
• Maximize visibility during high-performance periods (E.g. times of the day, days of the week)
Sponsored Search Ads
• Category-specific keyword analysis – to identify which category (bags, shoes etc) are performing
best Online Marketing at Bazaar.com

Presented By:
• A/B Testing :
• Variations in ads, landing page layouts, focus on effective elements of campaign Shivam Raj 2211497
Khushboo Kabir Panthi 2211174
• Landing Page Optimization : Preshita Rahate 2211494
• Landing page should align with ad messaging, CTA should be clear to reduce churn Divya Prakash Srivastava 2211507
• Page should be optimized for factors like speed, usability, and mobile responsiveness Alok Kumar Daharwal 2211003

What is ROI and how Bob calculated it? What is wrong with Bob’s method of calculating ROI?
WHAT IS ROI ? Retrun on Investment (ROI) - ROI for display ads measures the effectiveness and profitability of a display Possibility of Cannibalisation:
advertising campaign Bob fails to recognise the cannibalisation effect of using sponsored ads on branded keywords. If Bob had not utilized
those keywords(Bazaar or Bazaar shoes) in their sponsored search, it is likely that enough clicks would have come from
The formula for calculating ROI is (Revenue - Cost) / Cost organic search results alone. By running the sponsored ads, Bob has increased the cost of their own sponsored search
campaign unnecessarily, potentially inflating their expenses without generating incremental value. This oversight
highlights the need for a more strategic and cost-effective approach to their advertising efforts.
HOW BOB CALCULATED ROI?
Bob is analyzing the clicks on 'branded' keywords and tracking the Attribution of Clicks:
number of clicks originating from Google sponsored links to reach Bob assumes that all clicks generated by the sponsored ads are truly inorganic and would not have occurred without the
Bazaar.com's landing page ads. However, some of these clicks would have happened organically without the sponsored ads. Proper attribution
analysis is needed to determine the causal effect of the ads and accurately attribute the clicks to the campaign.
He knows that the average cost per click (CPC) of $0.60
BOB'S ROI = (REVENUE - COST) /COST Calculation of Avg revenue per click:
AVG. COST PER SPONS. CLICK = $0.6 To determine the revenue per click, he multiplies the average margin per Bob is calculating the ROI by measuring the average revenue per click. However, the number of clicks from any
conversion ($21.00) by the conversion probability (12%) campaign reduces over time due to the diminishing effect of time. This can lead to inflated figures and improper ROI.
AVG. REVENUE PER CLICK = CONVERSION
PROBABILITY X AVG. MARGIN PER
CONVERSION Multiplying these three numbers, the revenue generated per click comes Unique Users vs. Clicks:
to $2.52, whereas the cost stands at $0.60. This gives him a (2.52 - 0.60) ÷ Bob uses the total number of clicks to calculate returns, but it would be more accurate to consider the number of
= 0.12 X 21 = $2.52
0.60 = 320% Return on investment, which is exceptionally high in this unique users who visit the landing page. A single user (or bot) can generate multiple clicks, and using clicks instead of
ROI = (2.52-0.6)* 100 /(0.6) = 320% scenario unique users can skew the results. Analysing unique users provides a better understanding of the actual audience
reached and the conversion potential.
 MEASURING ROI (Method 1)
STEP 1 Calculating the diminishing effect of time on number of clicks.
Observation: The number of clicks of organic and sponsored Ad is reducing over time for both Bing and Google. Also in the 10th to
12th week total ads is decreasing because sponsored ads are closed in those weeks due to a glitch. Hence, the decrease in clicks
after the sponsored Ad is closed is due to both, reduction due to no Ads and general reduction with time.
Assumptions:
Homogenous Average Margin: Average margin is homogenous, stable and consistent across different platforms.
Bing and Google are comparable: Since the ratio of Organic to Sponsored traffic is comparable for Google and Bing therefore we
can use data from Bing to estimate clicks from google ads.
Fig: Calculation of loss of clicks due to diminishing effect of time
% Change in bing is used
to estimate clicks in
google for last 3 weeks If the Sponsored Ad had not
been discontinued, then the
reduction in Avg clicks for the
last 3 weeks would have been
151021 i.e. 3.55% reduction.
MEASURING ROI (Method 2)
Step 1: We have calculated the average traffic for 1-
9 weeks (campaign) and 10-12 weeks (no-campaign)
for both Google and Bing. And since Google have
both effect of diminishing effect and absence of
campaigns and Bing have only effect of diminishing
effect. So, on subtracting we get decreasing effect
due to ads and on multiplying it with avg traffic on
google we get avg traffic attributed to ads.
Step 2: On subtracting the average traffic due to
google ads in moths 1-9 and avg traffic attributed to
ads, we get effective number of clicks from
sponsored to organic.
Step 3: We can calculate spends on ads by
mutiplying CPC with avg traffic through google ads.
And revenue from ads by multiplying avg margin per
click by weekly avg traffic attributed to ads.
Step 4: ROI calculation using formula = (Spends-
Revenue)/ Revenue
Click here for the excel workbook
MEASURING ROI (Method 1)
STEP 2 Calculating the effect on Clicks due to removal of Ads
Actual Avg Clicks during week 10-12 = 148477
Estimated Avg Clicks after removing Sponsored Ads = 151021
Difference in clicks due to removal of Ads = 151021 - 148477 = 2544
% Change in clicks due to removal of Ads = 1.7% (app)
STEP 3 Calculating the ROI
Avg Loss of revenue in 10-12 weeks due to removal of Ads = Difference in Clicks * Conversion rate *Average Margin = 2544*.12*21
= 6411
This will be the additional revenue if Ads had run
Cost of Ad:
Method 1: Taking Avg cost of first 9 weeks = Avg sponsored clicks of 1-9 weeks* CPC = 31395*.6 = 18834
Hence, ROI = (6411-18834)/18834 = -65.9%
Method 1: Taking Avg cost of 10-12 weeks= Avg estimated sponsored clicks of 10-12 weeks* CPC = 30221*.6 = 18133
Hence, ROI = (6411-18133)/18133= -64.64%
NEGATIVE ROI + CUSTOMER ENGAGEMENT
The ROI from the sponsored Ads for branded keywords was -65% indicating these Ads lead
to losses for the firm. However, since these Ads create awareness and customer
engagement, therefore, the overall impact needs to be measured via other metrics as well.
CONSUMER SHIFT : SPONSORED -> ORGANIC
Insights
~90% of the traffic coming to the website through the Sponsored Ads from the
branded keywords shifted to organic links when there was a technical glitch in the
Sponspred Ads.
What should be the take
THREAT FROM COMPETITORS of Google on Sponsored
If we stop the usage of Sponsored Ads for branded keywords, competitors
Ads for Branded
can leverage the branded keywords of Bazaar.com to pull the customers Keywords?
of Bazaar.com
VERY SMALL DATASET
The dataset for 12 weeks is on the lower side to make a conclusion
with respect to the continuation of the Sponsored Ads for branded
keywords.
 GROUP

DMS Term 4
Thank You Case Analysis
Measuring ROI on sponsored
search ads at Bazaar.com
Group 4-J

Introduction Current ROI calculations should be modified to consider

Case Context: Measuring ROI on Sponsored Search Ads at Bazaar.com
incremental revenue from sponsored ads
Glossary of important terms
Bazaar.com, a leading US online retailer, intends to analyse the From To
ROI of their sponsored search ads on Google and Bing. Organic Search – search results that
show up without any ad spend. This is Current methodology attributes all conversions to sponsored Predicting incremental traffic via high Correlation between
based purely on relevance and ads while calculating ROI historical data from Bing and Google
Currently, the company uses both display and search engine credibility
advertising by running paid search ads
Sponsored Search – These Average CPC of Conversion %
Actual Clicks Projected
advertisements show up when a user without clicks based on
Sponsored post customer Average Revenue sponsored trends on from
The marketing analytics team is interested in the ROI calculations searches for a set of predefined Advertisement X click = Per Click ($2.52) ads Bing Search
keywords, that the advertiser needs to ($0.6) (12%)
on the sponsored search ads for branded keywords on Google.
bid for

Google Sponsored ads were suspended for weeks 9-12, leading Branded keywords – keywords that
have brand names associated with Average Profit Per Average CPC Incremental Conversion Incremental
to an involuntary A-B test Click of Sponsored clicks within % post Revenue Per
them. Advertisement
X sponsored
X customer = Click ($0.26)
CPC ($0.6)
Unbranded keywords – These are ads(12%) click (12%)
ROI Calculation Mismatch: Bob has calculated an ROI of 320.0% for their normal keywords with no brand
sponsored ads, however Myra believes this is due to rerouted organic associations Average Incremental
This method overestimates the ROI due to overcounting of Profit Per Click
traffic through sponsored routes revenue CPC
 The incremental traffic from sponsored 90% of sponsored ad spends deliver no
ads is 2%, but cost is incurred on 20% value
Incremental traffic calculations Organic Traffic is redirected to sponsored links, incurring cost Key Highlights
Spend Incurred by Segment
Organic Sponsored Paid Organic Traffic Predicted Incremental • 18.02% of sponsored ad traffic is
• The loss in Google’s traffic in weeks

Total Sponsored
replicable through organic routes,

1.07%
10-12 is the incremental gain from

1.63%
thereby leading to wastage of ad
sponsored ads

Traffic
2.36%
20.05% Total Spend: $0.6 per click spend
• Predicted traffic is calculated from

19.71%
• For every incremental click, we face

19.92%
19.92%
19.95%

20.00%
20.12%
20.15%

Bing’s numbers, basis historical

20.36%

20.29%

18.76%

18.09%
8.88 spurious clicks, leading to $5.33
correlation of wasted sponsored ad spend

17.21%
• The deviation between actuals and

Paid Organic
predicted traffic is the incremental

Traffic
traffic, which means only 2.03% of 18.02% Direct Spend: $0.6 per click
the overall traffic is incremental.
80.29%

80.17%

80.28%

80.43%
80.08%

80.08%
80.05%

80.00%
79.88%
79.85%

• This deviation was calculated from

79.71%
79.64%

Weeks 11, 12, allowing for Week 10

to act as a buffer week

Incremental
• However, 20.05% of the traffic

Traffic
Direct Spend: $0.60 per click
comes through the sponsored route 2.03% Attributable Wasted Spend: $5.33 per click
1 2 3 4 5 6 7 8 9 10 11 12
Attributable Total Spend: $5.93 per click
Weeks

The current ROI for Bazaar.com is overestimated by 377% Sponsored ads must be measured correctly before use
Current methodology does not account for limited incrementality of search ads against organic traffic Improper measurement leads to suboptimal allocation of advertising spend

From To Limitations of current methodology Recommendations

• Calculates ROI basis overall sponsored ad clicks, • Calculating revenue from incremental traffic difference Impact of sponsored advertisements contain
assuming all clicks are incremental basis Week 11,12, and dividing by total sponsored ad A-B testing for isolated measurement of impact
spillover from organic traffic
cost

Cost per click $ 0.60 Cost per Click $ 0.60 High spending on online advertising, leading to a Reduction in spends on advertising, substituted by
reduction in net profits higher spends on SEO, bolstering organic traffic
Probability of purchase 12%
Probability of purchase 12%
Incrementality of Sponsored Clicks 10.12% Online advertising can be done to combat
Lack of competitive outlook, leading to a short-
Margin $ 21.00 Actual Sponsored Clicks 20.05% competitors. ROI to be measured as an opportunity
sighted calculation of ROI
cost
Expected Revenue per Sponsored Click $ 2.52 Incremental Sponsored Clicks 2.03%

Margin $ 21.00
Expected Cost per Sponsored Click $ 0.60
Expected Incremental Revenue per Sponsored Click $ 0.26 Limitations Assumed correlation
of proposed Spillover across Attribution may
False ROI 320% between Google and
Actual ROI -57%
methodology weeks not be direct
Bing

Thank you
1. What is the role of offline and online advertising in acquiring checking account customers for the bank?​
Issues – BBVA Compass
Intense Competition &
Saturation of the Industry
Change of trade name –
BBVA to BBVA Compass
Current Economy & Financial
Crisis
Regulatory Changes
Offline Advertising Channel
Presented By:
Group 4-J
Aditya Shah
Bhavini Bhatnagar
Shikhar Sachan
Stuti Jain
Vatsal Mankodi
Offline Advertising
Brand Awareness, Consideration &
Positioning –
To maximize global awareness they
converted trade name from BBVA to
BBVA Compass and thereby increase
consideration among customers
Reaching customers through Regional
Initiatives - Sponsorships:
Multiyear sponsorship deal with NBA,
official bank – NBA, WNBA, NBA
development league
BBVA Compass & ESPN – Title sponsor
of PapaJohns.com
Online Advertising Channel
It utilizes digital platforms and targeted
strategies to reach potential customers
actively seeking banking services
BBVA Compass Marketing Research Allocation
Group
Just Basumatary 2211303
Sourav Bassi 2211306
Suhas S 2211359
Rahil Sonkusare 2211357
Santosh S 2211358
2. In 2010, the bank allocated $1.22 million or 21% of the total ad budget to online advertising for acquiring checking account customers while
allocating the rest of the budget to offline marketing efforts for this account. However, only 5% of the new checking account customers came
from the online channel, while offline branches accounted for 80% of the new checking accounts . Is the 2010 advertising budget allocation
between offline and online media appropriate?
Online Advertising
Online Marketing Performance Customer Persona
Competitor Analysis: BoA, JPMorgan are spending 25-30% on measured media
Acquiring New Customers - [Internet Ads + TV + Print] where as BBVA is spending 21% alone on Online Channel &
measured media [Internet + TV + Print ] – 79% but results are low compared to
competitors
Promotional Offers accompanied through search
& display encouraged opening new checking Online Brand Awareness: From Exhibit 3b, we can observe that, despite spending 21%
account & thereby increasing revenue of their budget to online advertising, online brand awareness of BBVA (32%) is low
compared to its competitors
Online Brand Awareness - High Reach
Placements – Approval Rates: Online approval rates(80%) are lower than offline (95-100%). Also,
1/3rd of approved accounts are being cancelled due to lack of funds & it is added cost
to the company
Relevant content areas in targeted geography
with optimized approach help acquire customers
& increase online brand awareness & increase Retention Rates: Offline Retention Rates (65%) is greater than online retention rate
number and speed of conversions (55%)
Strivers
25- 54
Age
Data Access & Tracking – years old
Annual Income: Currently revenue generated through online channels is a bit high
compared to offline due to low balance & high fees but this revenue can also be Personality Aaggressive and
With the help of online analytics, BBVA is effected due to new regulatory changes anxious about
optimizing their campaigns & allocation budgets money
Salary $ 75,5000
In view of higher growth opportunity, higher budget allocation is justified. Also ,potential revenue generation is higher for online
channels compared to offline channels. The target customers of BBVS are “strivers” and are relatively younger and perceived to be Requirements Loans and
oriented towards online banking services. But still allocating 21% of the budget is questionable. investment
 3. Why did BBVA sign multiyear sponsorship deals with NBA and ESPN? Do you agree with this decision? 4. What are the various steps in the online acquisition process and how can the bank improve this process?

In 2009 to maximize the global awareness they adopted the trade name of BBVA Compass, but awareness dropped to 48% from Web Traffic Generation Lead Generation Qualifying the Lead Lead Conversion
80% in a year. Hence, signing sponsorship deals with NBA & ESPN were essential to reach the audience and address the issue of
decreasing awareness.

• Approval by the bank

• People who click the • 10% of the people
•

Current Activities
for the customers Applicants who
NBA ESPN paid search or the
display ads to reach
who click the ads
start application
meeting minimum deposit the money into
credit score the account within the
landing page • Less than 50%
• About 80% of the required time frame to
By signing a multiyear sponsorship deal with NBA, • Organic and Direct complete it rest don't
BBVA established itself as the official bank for Agreement with ESPN created a channel to BBVA to online applications become customers
website traffic share or just browse
NBA, WNBA & NBA development league in the US, connect with their customer’s passion especially in gets approved
Spain & Puerto Rico and this enabled their identity as markets that do not have NBA team affiliations,
– bank with values of passion, teamwork & fair play thereby increasing their brand awareness in all
inherent which will lead to spread the awareness the markets they operate. • Contact forms to be filled by • Call the leads to answer
• Ask questions about the

Improvements
amongst the global audience of the leagues.  Optimize the website for SEO
 Optimize PPC keywords
 Create relevant content for
Social Media Marketing
visitors
lead's needs and goals
queries to close the sale
• Email Signup to get them into • Email Marketing to inform
• Verify lead's contact
list about the relevant
information
• Chat widget to interact with products/services relevant to
representatives the lead

6. What is the role of display and search advertising in acquiring new checking account customers? Is the 2010
5. What is the effective acquisition cost and lifetime value of customers acquired through the online channel? advertising budget allocation between display and search appropriate?

• For BBVA Compass, both display and search ads played an important role in acquiring as they have added Conversion
Ad Type CTR CPA ($)
Rate
nearly 14,316 new applications for 2010.
Ad Type Amount Spent (Jan-Nov) Completed Application(a) Approved Application(b=0.8*a) Active Accounts(c=0.67*b)
• Generally, Companies spread out their advertising budgets across channels and wait to get new
customers. Display Ads 0.04% 0.002% 88
• 55% of the online marketing budget has been allotted to Display ads and remaining 45% on the search ads.
Display Ads $637000 7209 5768 3846

Search Ads 4.09% 0.062% 73

Search Ads $516000 7107 5686 3791 Role of Display Ads Role of Search Ads

• Display advertising involves buying • Paid search advertising involves buying

advertisement space on websites that the keywords on the three main search Paid Search Budget 30.0% 40.0% 44.5% 50.0%
prospective customers of the bank are likely to engines: Google, Yahoo!, and Bing.
Total active account = 3846 + 3791 = 7637 visit. • By keeping their ads in front of more
Promotional Spend = Total active account * 100 = (3846+3791)*100 = $763700 Display Marketing budget 70.0% 60.0% 55.5% 50.0%
• BBVA Compass places it banners within the users, they maintain brand recognition.
Total Spend = 637000 + 516000 + 763700 = 1916700 relevant content areas in the targeted • They help in reaching your audience at
geography. the very moment when they need your
Total Completed
Customer Acquisition Cost = (Total Spend / Total active account) = 1916700/7637 = $251 • They will strengthen brand visibility, consistency service.
Applications 13884 14182 14316 14480
and nurture leads.
Revenue per customer per month = 800/60 = $13.33/month/customer
Retention Rate = Churn Rate = 55% per year Comments on Budget Allocation:
Customer lifetime = 1/Churn rate = 1/0.55 = 1.818 year = 21.81 months • Though Display ads brought very high impressions it has poor CTR, conversion rate and higher Cost per Application compared to search ads.
Customer lifetime revenue = (Revenue per customer per month)*(Customer lifetime) =21.81*13.33 = $291 • In this trend , statistically , 50% allocation to both channels leads to highest total completed applications of 14480. By this logic, BBVA should try to move funds
towards search ads
Customer lifetime value = Customer lifetime revenue - Customer Acquisition Cost = 291-251 = $40 • But this may not be the actual case because , 41% duplicate reach ( Customers who reach display ad first and then finally get converted through search ads) is not
accounted for.
7. Is the budget allocation among various search engines appropriate? 8. Why is the bank spending money across various display Ad networks? Which Ad networks are working better than of
others and would you change the budget allocation among them?

SL No. Search Engine Media Spend Impressions Clicks Applications Cost per CTR Conversion Reason for spending money across Display Ad networks: Analysis of performance of display Ads:
($) Completed Application rate Application Application Cost per Conversion
($) • Reach across various publishers and domains Ad Network Media Spend Impressions Clicks`
Started Completed Application Rate
AOL 27.76% 31.57% 24.99% 39.81% 40.81% $ 60.00 8%
1 Google 288,000 5,575,637 234,963 3,717 77 4.21% 0.067%
• Sophisticated targeting – each ad network as its own Tribal Fusion 16.88% 12.56% 15.71% 14.79% 13.94% $ 107.00 5%
Casale 14.20% 20.80% 27.63% 12.36% 12.25% $ 102.00 2%
2 MSN 37,000 897,406 50,242 663 56 5.60% 0.074% strength area which can be leveraged
Revenue Science 11.67% 10.02% 8.31% 12.15% 11.99% $ 86.00 7%
24/7 Real Media 9.78% 4.53% 3.33% 7.40% 8.03% $ 107.00 12%
3 SuperPages 70 116,922 1410 16 4 1.21% 0.014% • Multiple display Ads impact paid search clicks positively InterClick 5.99% 4.11% 6.93% 5.90% 5.72% $ 92.00 4%
Yahoo 4.73% 3.20% 2.78% 2.48% 2.42% $ 172.00 4%
4 Yahoo! 177,000 4,435,709 165,166 2,419 73 3.72% 0.055% • High reach in targeted geographies Trafic Marketplace 4.57% 9.16% 6.27% 3.05% 2.88% $ 140.00 2%
Datran Media 2.37% 1.84% 2.44% 0.90% 0.88% $ 238.00 2%
5 United 14,000 503,563 20652 292 48 4.10% 0.058% ValueClick 1.58% 1.22% 0.83% 0.86% 0.89% $ 156.00 6%
Marketplace • Performance optimization – analyse and compare metrics. AdBrite 0.47% 1.01% 0.78% 0.30% 0.21% $ 200.00 1%

Total 516,070 11,529,237 472,433 7,107 Insights regarding reach, overlap and Conversion rates: Suggested changes in budget allocation:

• Given its cost-effectiveness and satisfactory performance, it is recommended to maintain

Rank Reach Exclusive Reach Duplicate Reach
• According to the given data, Google received the highest proportion of spending, followed by Yahoo!. *CTR = clicks/impressions, 1 AOL AOL(23%) 24/7 (56%) the allocation of resources to AOL.
• The allocation of the budget is inappropriate due to the following reasons: 2 Traffic Marketplace Traffic Marketplace (17%) Value Click (54%)
• MSN demonstrates the highest Click Through Rate (CTR) of 5.6% and a conversion rate of 0.074%. It *Conversion Rate = applications 3 Casale&Tribal Fusion Tribal Fusion(12%) InterClick(48%) • Considering better conversion rates and lower cost per application, it is advisable to
surpasses Yahoo! and Google in all three parameters, including Cost per Application. However, only 7% completed/impressions, Conversion rate(Click/Closed allocate more budget to Revenue Science while decreasing the allocation to Casale.
Rank Impression Cost/ Appication
of the budget is allocated to MSN. Application)
• Furthermore, the Unified Market Place performs better than Yahoo! in all three parameters. *CPA = applications 1 AOL(31.57%) 24/7 (12%) AOL ($60) • We should reallocate funds from underperforming ad networks with a cost per
• BBVA should reconsider its budget allocation strategy and consider increasing the budget allocated to completed/media spend 2 Casale(20.8%) AOL (8%) Revenue Science($86)
application exceeding $150 and a conversion rate below 5% to better-performing ad
3 Tribal Fusion(12.56%) Revenue Science(7%) Interclick($92)
both MSN and the Unified Market Place. networks.

THANK YOU BBVA Compass:

Marketing Resource
Allocation
Case Analysis

Group H

Sanjeeth R 2211045
Balaji MP 2211066
Satya Deo Nirala 2211337
Riya Waghmare 2211364
Monika Singh 2211486
Ques 1: What is the role of offline and online advertising for acquiring checking
account customers for the bank?
Offline
Marketing
Brand Awareness
Targeting people who were
not actively looking for
banking services
Improving Consideration
Improves brand recall with
consistent interaction
through traditional channels
Includes television, radio, print,
and outdoor advertising.
Ques 3: Why did BBVA sign multiyear sponsorship deals with NBA and ESPN? Do
you agree with this decision?
Brand exposure and visibility
Increase brand exposure and reach
a wider audience.
Global recognition and a vast
viewership, providing
Opportunity to promote its brand to
millions of sports fans
Enhanced customer engagement
Engage existing customers and
attract new ones
Marketing activations, including in-
game advertising, fan experiences,
and digital content collaborations.
Offered exclusive experiences,
contests, and interactive initiatives.
Online
Marketing
Generating Leads
Drives traffic on website &
targets people actively
looking for banking services
Online Brand Builiding
Promote offers to encourage
customers to open a new
checking account
Includes search and display ads
on the search engines
Targeting a desirable demographic
Way to connect with a diverse,
engaged audience, particularly
young and tech-savvy individuals
Position itself as a modern and
innovative financial institution.
Aligning Synergies and shared value
Emphasis on teamwork, determination,
and fair play in sports aligns
Commitment to collaboration,
customer-centricity, and
business practices.
Alignment enhances the brand's
credibility and reputation.
Ques 2: In 2010, the bank allocated $1.22 million or 21% of the total ad budget to
online advertising for acquiring checking account customers, while allocating
the rest of the budget to offline marketing efforts for this account. However, only
5% of the new checking account customers came from the online channel, while
offline branches accounted for 80% of the new checking accounts. Is the 2010
advertising budget allocation between offline and online media appropriate?
The 2010 advertising budget allocation between offline and online media can be deemed appropriate, even though the
majority of new checking accounts came from offline branches
Offline Branches' Contribution Online Channel Potential
Accounted for 80% of the new checking accounts Growth potential and changing consumer
Importance of maintaining a strong presence in behavior associated with online advertising.
physical branches and utilizing traditional Allocating 21% of the budget to online advertising
marketing channels forward-thinking approach, recognizing the
importance of establishing a digital presence
and targeting customers in the online space.
Long-Term Strategy
Allocation of a significant portion of the budget to
online advertising reflects a strategic decision to Diversification of Channels
invest in an emerging marketing channel
Allocating budget to both offline and online
Building brand awareness and customer
advertising, diversified marketing approach.
acquisition in the online realm can have long-
Allows the bank to reach a broader audience
term benefits as consumer preferences evolve
Cater to different customer segments with
and digital platforms gain prominence.
varying preferences.
Ques 4: What are the various steps in the online acquisition process and how can
the bank improve this process?
Awareness Customer Conversion Funnel
Improve SEO (Search engine
optimization) for bank's website to rank
Customers see digital ads on
higher
Content Marketing. Eg - blog posts, various sites
Exposure cannot be traced to one
articles, etc
Impressions site
Interest 320803675 Optimize ad networks for unique
users
Engaging landing page that
Interested customers search for BBVA
communicates bank's value
proposition through a search engine
Guide user to sign up or request
more information Clicks Some browse to see the offering and learn
more
611907 Emotionally connect to customer's use
cases
Consideration
Seamless user experience- for Consideration factors for consumers: Free
netbanking
Customer testimonials to build trust Appl Started checking services, convenient banking locations
and easy online banking
and credibility
59173 Factors are mostly product features
Highlight product features
Conversion Applications Started but not Completed
ethical
Simplify the application process
Mobile phone accessibility of the 14316 Nudge using email advertisements highlighting product
website/application
features relevance to customer
Use location information to highlight closest banks to
customer
 Ques 5: What is the effective acquisition cost and lifetime value of customers Ques 6: What is the role of display and search advertising in acquiring new
acquired through the online channel? checking account customers? Is the 2010 advertising budget allocation between
display and search appropriate?
Assumptions Case Facts Goals
$800 from a customer is uniformly divided into 5 years as Build awareness among consumers.
80% of Applications are approved, and 67% of the approved applicants use the Acquire new customers for various lines of business
$160/ year. account.
The discount rate is 10% per year. Annual retention rate is 55%.

Applications Cost Per Effective new

Impressions Clicks Conversion CTR Budget CLV Return Role
Number of Present Revenue Lifetime Revenue Completed application Customer Acquired
Year
Customers Value per Year Per Customer
Acquiring
Paid 11529237 472433 7107 73 1.50% 4.10% 516000.00 3790 282 15.41%
Effective Acquisition Cost Customers
1 8329 145.45 1332689.45
Acquisition Cost = 1257818 / 8329 = $ 151 / customer Creating Brand
Display 309274438 139474 7209 88 5.17% 0.05% 637000.00 3845 282 12.48%
Awareness
2 4581 132.23 732979 Effective Customer Lifetime Value
Customer Lifetime Value = Lifetime Revenue per customer - Paid Search Display Search
Acquisition Cost Higher Click Through Rate- Customer impressed upon through display Higher number of impressions generates brand awareness
3 2520 120.21 403138.56 281.81 Customer Lifetime Value = $281.81 - $151 ads, search for BBVA for clicks Number of clicks is lower but conversion is higher giving decent Return
= $ 131.81 Generates better Return on Ad Spend with Higher CTR on Ad Spend
Useful for acquiring customers at the end of the online journey Primarily creates brand awareness but also acquires new customers
4 1386 109.28 221726.20
Budget Allocation- Appropriate
Goals are two pronged
5 762 99.34 121949.41 Paid and Display target different prongs of the goal
With lower returns on Display ads spending more money is justified with higher impressions

Ques 7: Is the budget allocation among various search engines appropriate? Ques 8: Why is the bank spending money across various display ad networks?
Which ad networks are working better than others and would you change the
budget allocation among them?
Goals Goals
Build awareness among consumers. Build awareness among consumers.
Acquire new customers for various lines of business Acquire new customers for various lines of business

Allocation- Appropriate
Site
Media
Impressions Clicks
Applications Applications Cost Per Impressions per
CTR
Display Ad Networks: High-Performing Ad Networks:
Spend Started Completed Applciation $ Media Spend Allocation cannot be purely on the basis of RoAS, metrics
such as impressions and CTR are also important for the To find the standalone performance of an ad network, Exclusive
Google 288000.00 5575637.00 234963.00 19571.00 3717.00 77.00 19.36 0.042 given goals. Diverse Audience: Each ad network may have a diverse set of Reach, Cost per Application, and Impressions are used. The Ad
audience. Networks are ranked as follows:
MSN 37000.00 897406.00 50242.00 3101.00 663.00 56.00 24.25 0.056 SuperPages has some impressive metrics. However, it is a
search directory. Limited Set of Users, and hence a Customer Exposure: Spending in various ad networks helps AOL InterClick
Super
70.00 116922.00 1410.00 103.00 16.00 4.00 1670.31 0.012
marginal increase in budget allocation is acceptable. increase exposure to BBVA, and hence higher chances of Traffic Marketplace Yahoo
Pages customer conversion. Tribal Fusion Dataran Media
Google has a higher CTR compared to Yahoo, and Unified Casale 24/7 Real Media
Yahoo! 177000.00 4435709.00 165166.00 16246.00 2419.00 73.00 25.06 0.037 Market Place, implying that its ad reaches more relevant Risk Mitigation: Eliminating dependence on a single network. Revenue Science AdBrite
customers. Also, this approach helps BBVA to track effectiveness among ValueClick
Unified
Market 14000.00 503563.00 20652.00 1632.00 292.00 48.00 35.97 0.041
various ad networks and optimize for best returns.
MSN scores higher than Google in all aspects. However,
place
Google is the most used search engine, helps in creating
Total 516000.00 11529237.00 472433.00 40653.00 7107.00 73.00 22.34 0.041
awareness among a larger set of potential customers
(higher impressions).

Similar logic applies to Yahoo as well. Budget Reallocation

Datran Media and Ad Brite have Cost Per Application significantly higher than overall acquisition
Budget Allocation to various search engines is cost of $151.
appropriate. Reallocation of Budgets from these ad-networks necessary, and done based on existing split ratio
Projections done based on Impressions/ $ Spend, and Application Completed/Impression
 Budget Reallocation

Ad Network New Spend New Impressions New Applications Completed

AOL 181142.86 10,03,14,384.5 3,020

Increase in Applications Completed = 207

Traffic Marketplace 29847.40 2,91,12,157.1 213

% Increase = 2.89%

Tribal Fusion 110126.62 3,99,13,672.8 1,031

Thank You
Casale 92629.87 6,60,99,004.9 907

Revenue Science 76162.34 3,18,53,574.1 887

InterClick 39110.39 1,30,48,797.6 423

Decrease in Impressions = 19,772

Yahoo 63811.69 1,01,67,362.3 179

% Decrease = 0.22%
24/7 Real Media 3000.00 1,43,87,739.7 594

Value Click 10292.21 38,62,751.0 66

BBVA Case Presentation | 2 |

Role of Offline & Online Advertising in Acquiring Checking

Account Customers
BBVA Compass: Online BBVA Compass leverages online advertising platforms like search engines, social media,

Marketing Resource Allocation

and display networks to direct consumers who are searching for a checking account or
Customers encountering display ads to an online application process.

Targeting Online advertising enables targeted messaging based on demographics and interests,
Digital Marketing Strategy Specific effectively highlighting the benefits of checking accounts. Through real-time tracking and
Online Demograhics
data analysis, BBVA Compass can optimize advertising efforts and allocate resources
efficiently.

Offline advertising (TV, radio, print, billboards) is crucial for BBVA Compass to build brand
Group I Brand awareness, establish a market presence, and foster trust, ultimately driving potential
Awareness customers to open accounts.
Shubham Gupta (2211318)
Nimish Kshirsagar (2211326)
Patil Ayush (2211490) Effective promotion of product lines by creatively showcasing their unique features and
Promote
Samyak Jain (2211321) Offline Product Lines
benefits, reaching a broader audience, generating interest, and attracting potential
customers who may not be actively searching for banking services online
Piyush Kumar (2211342)
 BBVA Case Presentation | 3| BBVA Case Presentation | 4 |

Appropriateness of 2010 Advertising Budget Allocation between Offline Evaluating the Decision of BBVA's Multiyear Sponsorship Deals
and Online Media for Acquiring Checking Account Customers with NBA and ESPN
Outcome of the deal Strategic Intention for Sponsorship
Future growth & customer profiling Competitor benchmarking
Potential for growth: online channel Competitors have more than 1 Official Bank for the NBA, WNBA, Increase brand visibility and exposure
can yield long-term benefits as the online double online brand awareness and and the NBA Development League to achieve 2010 target of 53%
customer base expands they spend 25-30% of their budget
2 Title Sponsorship of the BBVA Enhance Overall commitment to sports
Compass Bowl - ESPN to connect with customers
Higher income: annual income
generated from online customers is 3 Associate Sponsorships of other Association with positive values and
higher compared to branches college football events - ESPN emotions related to sports

Retention rate: retention rate of 55% Pros of Sponsorship Cons of Sponsorship

indicates that online customers are
staying engaged Marketing Objective fit - Building awareness Tracking - Difficult to measure effectiveness and ROI
and trust in the brand, increasing customer
acquisition and retention Publicity risk - Any controversy or negative outcome
Consumer insights: gaining insights to
Target Customer fit - Consumers identified as of the sponsored event could affect the perception of
the consumer patterns/behaviors
"Strivers" - aggressive and anxious, 25 to 54 BBVA
years old

BBVA Case Presentation | 5 | BBVA Case Presentation | 6 |

Various steps in the online acquisition process and the Effective Acquisition Cost and Customer Lifetime Value
potential improvements
Acquisition Cost Customer Lifetime Value
Online Acquisition Process Assumption -
1. Discount rate of 10%
Ads (Search and Landing Page Application Process
Application Funding & Total Applications completed through 2. Industry CLV of $800 for 5 years equivalent to $160 annually
Approval Activation
Display) display ad & paid search: 7209+7107 3. Marketing spend is for just Year 1
Once the application is
= 14316
Paid search involves Potential customer clicks Visitors can initiate the Customer needs to fund
buying keywords on search on an ad, they are application process by submitted, the bank reviews it the account by depositing
engines like Google, directed to a landing providing their personal to ensure the applicant meets money Once the account Application approved = 80% of 14316
Yahoo!, and Bing, while page on the bank website, information, such as certain criteria, to assess the is funded, it is activated, = 11452.8
display advertising encouraging visitors to name, contact details, and customer's ability to pay the customer can start
includes banner ads on complete the application. financial information. potential overdrafts and using their new account
A/c funded = 2/3 * 11452 = 7634.67
websites and other online account service charges
platforms.
Total amount spent = $1,153,000
Methodology -
Improving the Process Total cost of acquiring accounts = Accounts at beginning = 14316 X 12/11 X 80% X 2/3 = 8329
Retention rate = 55%, accounts for Yr 2 = 55% X 8329 = 4581 and so
$1153000/7634
Personalization and Customization: A/B Testing and Optimization: Retargeting and Remarketing:
=$100.68 on.
Tailor the online experience to individual Continuously test and optimize different Implement retargeting strategies to reach Total Profit = Account X Avg Profit Per Account
elements of the online acquisition process, potential customers who showed initial
customers based on their preferences, needs, Adding $100 as promotion for
and financial profiles. Provide personalized including ad copy, landing page design, and interest but did not complete the Total Discounted Cash Flow = $1203880
calls-to-action. Implement A/B testing to application process. Leverage remarketing newly acquired customers, total acq cost =
offers and recommendations to enhance
$200.68 Total Accounts at Beggining = 8329
engagement and conversion. identify the most effective strategies and refine techniques to encourage them to finalize
the customer journey accordingly. CLV (Per account) = $1203880/8329 = $144.53
their applications.
 BBVA Case Presentation | 2 |
BBVA Case Presentation | 7 | BBVA Case Presentation | 8 |

Display and search advertising role in customer acquisition Appropriate Budget Allocation among various search engines
SuperPages provided highest number of Google has the lowest value Impression MSN has the highest
Aims to create brand awareness, generate Focuses on capturing users' intent and impressions per $ spend and lowest per spend and highest cost per conversion factor, with only
visibility, and reach a broader audience delivering relevant ads within search cost per application application third highest budget

Display advertising plays a crucial role in the customer journey by influencing and exposing customers before they click on paid search accounts % of Media Applications Applications Cost per Impression per Conversion
Site Impressions Clicks
Spend Started Completed Application spend factor
Alltributes Display Search Total Online
SuperPages 0.01% 116922 1410 103 16 4 1670 0.014%
Amount spent, Jan.–Nov. 2010 55% 45% 1153000
Unified
Completed applications 7209 7107 14316 2.71% 503563 20652 1632 292 48 36 0.058%
Marketplace
Clicks 139474 472433 611907
MSN 7.17% 897406 50242 3101 663 56 24 0.074%
Cost per application (CPA) 88 73 81
Yahoo! 34.30% 4435709 165166 16246 2419 73 25 0.055%
Impressions per spend 486 22 278
Google 55.81% 5575637 234963 19571 3717 77 19 0.067%
Conversion factor 5.17% 1.50% 2.34%

Display Advertising
Brand awareness and improving visibility is the purpose of
display advertising
Display advertising helps in capturing the attention of potential
customers who can be influenced by compelling visuals and
messaging
The impressions per spend are much higher compared to search
advertising
Conversion factor (completed applications per clicks) is also higher
Search Advertising
Targets users actively searching for checking accounts or related
keywords
Focuses on capturing user's intent and delivering relevant ads
within search engine results, increasing the chances of acquiring
new customers
Search advertising offers a lower cost per application compared to
display advertising, attributed to customers clicking on paid search ads
after awareness
Building Brand Awareness and acquiring new customers is the goal for online marketing
Higher Impressions and lower cost per application can serve as efficient numbers for the above metrices
Even though Google has the highest share of media spend, its performance on the above metrices is the lowest
The conversion factor, of MSN is higher than that of Google which shows that there are higher chances of success of application
Cost per application=(Media spend / Applications Completed)
Impression per spend=(Impressions / Media Spend)
Conversion factor=(Applications Completed / Total Impressions)

BBVA Case Presentation | 9 |

Evaluating performance of display ad networks BBVA spending money across

Why various networks?

Each network has different strength & optimization approach

Proprietary data within a network
The reach & performance is different - factor of exclusivity

How are various networks performing?

93% correlation b/w -77% for
Media spend & impression Media Spend & CPA
AOL is working best among all with least cost per application and highest exclusive reach
Datran Media has highest CPA and is among the lowest in exclusive reach
Tribal Fusion, Casale, and Traffic Masterplace are also doing good

Exclusive reach as large as 23%

~6M users
Suggestions for Budget Allocation

Traffic marketplace should be allocated more budget so as Revenue Science

$238 is a significantly higher cost for 4% reach. Datran's budget should be lowered down
BBVA should decide on the tradeoff between Cost & Reach to optimize their budget more
 COMPANY OVERVIEW-HUBSPOT
HUBSPOT INBOUND HubSpot is an American marketing startup started by Brian Halligan and Dharmesh Shah that offers an Inbound Marketing Application as a (SaaS).

MARKETING AND HUBSPOT PRODUCTS

WEB 2.0
GROUP N
Abhishek Sinku (2211131)
Ajay Hembrom (2211246)
Sagarika Kishan(2211123)
Kanika Agarwal(2211095)
1. Content Design
- HubSpot offered content management system(CMS), predesigned templates, HubSpot's Keyword grader etc. to make editing online content easy
2. Exposure Optimization
- Provided series of tools like SEO tools, HubSpot's Link Grader to analyze website, blogs and competitor website
3. Leading tracking and Intelligence
- Provide analytics to the firm for better lead generation, this enables in better tracking of customer
Competition Landscape HubSpot Customer Funnel
HubSpot’s Marketplace
Creating Traffic
Analyzing and Qualifying
Leads

Vibhanshu Golia(2211362) Closing the Sale

HAVE RULES OF MARKETING CHANGED? TARGET CUSTOMER SEGMENT

Marketing rules changed Is inbound marketing enough? New Customer Acquisition :
Owner Ollie Marketer Mary
Consumer Behavior 73% of customer portfolio 27% customer portfolio New owner Dec'08 New Market Dec'08
Limited Reach Ollies Marys
With rise of internet, people seek for the The first stage of inbound marketing filters out Small business Large Business
information they need; pull marketing rather than
50% of potential conversions, limiting the overall B2B>25 6% B2B>25 41%
push marketing Don't have dedicated marketing Have dedicated marketing professional
conversion potential professional B2B<25 56% B2B<25 26%
Competitive Edge Specific Customer Cost to acquire new customer is less Cost to acquire new customer is less B2C>25 6% B2C>25 18%
With low resources, small businesses can compete Inbound Marketing target only specific people, ($1000) ($5000)
with the large firms in term of marketing B2C<25 32% B2C<25 16%
neglecting the particular target market, hence Average churn rate 4.3% Average churn rate 3.2%
difficult to access market size 13% of Owner Ollies on CMS
Ineffective Outbound Marketing 2% of Marketing Mayers on CMS
Outbound/traditional marketing conversion rate is
Awareness B2B Firm ​ B2C Firm ​
far lower than the inbound marketing Unaware people won't come for your product,
Interested only in basic template ​ Sophisticated Web 2.0 users ​
outbound/traditional marketing is good for  Yes, Hubspot has categorized its customers in right segments.
brand awareness Complex business model due Highly performing websites ​
Easy to convert to longer decision cycle ​  For short term plan it needs to tap into more B2B customer
With proper funneling and personalized contents Lack of Standardization segments as they have low churn rate and contribute higher
Selective Sales Force ​ High social media presence ​ customer portfolio.
like blogs, videos can make the sales conversion very Because of the diverse character of the consumer,
easy standardised promotion, pricing, and so on Derive greater value Have web 2.0 consultants ​  B2B segments are at higher end in both Owver Ollies and
from lead modification ​
Data Driven would be impossible to create. Marketer Marys.
Average churn rate – 3.6%​​ Average churn rate – 6% ​
Way marketers reached customer has changed, now  They do not need to widen their focus.
it is data driven and targeting the right customer 68% of total customer portfolio ​ 32% of total customer portfolio ​
 PRODUCT & PRICING STRATEGY OUTBOUND VS INBOUND MARKETING
HubSpot Products Customer lifetime value
• Search Engine Optimization Owner Ollies Marketer Marys Since HubSpot is committed to inbound marketing, Yes, Halligan and Shah are being stubborn.
Two ways to improve
• Business Blogging Monthly Fees $ 250 /month $500/month them
• Business Blog Analytics
HubSpot Owner

• Competitor Analysis Acquisition Cost $1000 $5000  Increase price Balancing Inbound and Outbound Marketing:
Advantages of Inbound Marketing:
• Marketing Analytics Initial fee $500 $500
•  Reduce churn rate
Website Editor
• • Targeted Outbound Marketing
HubSpot Marketer

• Lead Tracking & Intelligence Break-even time 2 months 9 months Customer-Centric Approach
• Cost-Effective • Integrating Inbound and Outbound Tactics
• Landing Page Wizard Churn Rate 4.3% 3.2%
• Builds Authority and Brand Equity • Data-Driven Decision Making
• Marketing Intelligence
Avg. Customer life 23.26 31.25 • Higher Quality Leads • Testing and Iterating
• Social Media
• Inbound Marketing Advice CLTV 5315 11124
• Inbound Marketing Advice Customer lifetime value after CMS
• Closed Loop Marking CMS Non-CMS
Inbound Marketing >>> Outbound Marketing
 CMS increases CLTV
Analytics The Potential for Outbound Marketing:
• Lead Grader Monthly Fees $ 250 /month $250/month  Website Transfer
• Lead Visits Alerts Acquisition Cost $1000 $1000 costs is $500 and it
• Salesforce Integration makes sense to • Diversification of Lead Sources
Initial fee $500 $500 offer for free • Accelerated Growth
Current Pricing Model
Transfer charge $500 $500  Prompt to move • Penetrating New Markets Increase growth Dilemma in
Software-as-a-service (SaaS) CMS • Sales and Marketing Alignment scope brand image
Churn Rate 2.1% 5.5%
Owner Ollies : $ 500 (consulting fee at start-up) & $250/month  Owner ollies can be
Avg. Customer life 47.62 18.18 given option of
(Ongoing Fee)
monthly & yearly
CLTV 11905 4545 pricing model
Marketer Mary : $ 500 (consulting fee at start-up) & $500/month
Avg. customer life = 1/Churn rate
(Ongoing Fee) CLTV = Initial fee+ (Avg. customer life* Monthly fees)- Acquisition cost

PLAN OF ACTIONS : HUBSPOT TO BE A SALESFORCE IN MARKETING

Customer Success: Risks:
 Ensure that customers are not only using the product but are also achieving their
marketing goals with it; offer personalized onboarding, ongoing support, and 1. Execution Risk
consulting services, provide advanced features for customers who have "completed" Each of them requires significant resources, careful
their initial optimization planning, and flawless execution.

Product Development and Innovation:

2. Technological Changes
 Currently, at least 10 hours a week use of Hubspot is required; the company should Rapid changes in technology could disrupt plans
actively invest in R&D, integrating AI & ML for better data analysis, personalization, e.g., new regulations on data privacy could affect the
and automation, and continuously update the product based on customer feedback ability to offer personalized marketing features.
and market trends to make it easy to use & intuitive

Market Education: 3. Market Competition

Other companies could potentially introduce
 Many businesses are still unfamiliar with the concept and benefits of inbound similar features or innovations,
affecting HubSpot's market position.
marketing, This could involve hosting webinars, creating educational content, and
providing case studies that demonstrate the effectiveness of their platform. THANK YOU!
4. Customer Adoption
Global Expansion: Despite best efforts, there's always a risk that
 HubSpot should aim to expand its presence in international markets, tailoring its customers may not adopt the new features or
product and marketing efforts to meet the specific needs and preferences of capabilities as expected
customers in different regions
 INTRODUCTION
HubSpot
Founded in 2006 by Brian Halligan and Dharmesh Inbound Marketing
Shah Strategies and practices that pulled prospective customers
Enabled business with new marketing tools for Web 2.0 towards business and products.
Content Design: Content management sys. for easy Sales + Marketing = Smarketing
editing and creating online content
Exposure Optimization: Inc., the visibility of online Outbound Marketing
content of their customers Any kind of marketing where online channels are not
Lead tracking and Intelligence: Generates qualified involved, mainly push marketing. Traditional form of
DIGITAL MARKETING STRATEGY marketing
leads by telling where are the potential customers

Outbound Marketing Vs Inbound Marketing

• Messages are pushed towards the audience irrespective of their interest in Outbound marketing, whereas in the case of
Manjiri Bhojane 2211491 Inbound marketing messages are designed in a way that they attract only the interested segment of market
• Lead generation of inbound marketing costs 5-7 times less compared to outbound marketing
Abhinav Paigwar 2111344 • Inbound focus on the ability to distribute content such that it is easily found by prospective customers using search engines,
Rajat Suvagia 2211434 SEO
Ankita Prakash 2211006 • Inbound marketing allows small businesses to compete with larger firms by leveling the playing field
Amit Mandal 2211184

Q2: Is HubSpot finding and serving the right set of customers? Given its position as a start-up company, should
Q1: Do you agree with HubSpot that the "rules of marketing" have changed? If so, how? Is inbound marketing
it widen its focus to serve any customer that comes its way? Or narrow their target, by focusing exclusively on
the answer? Why or why not?
either Owner Ollies or Marketer Marys? Or by focusing exclusively on either B2B or B2C customers?

Yes, The "rules of marketing" have indeed changed, and HubSpot recognizes this HubSpot's target markets are small and medium-sized businesses (SMBs),
shift. who want to draw in and keep consumers through online channels.

1. Consumer Behaviour Shift: Digital technologies and social media have transformed Currently they are catering 2 types of customers name "Owner Ollies" and
how consumers interact with brands, making traditional marketing less effective. "Marketer Marys."

2. Value-driven Approach: Inbound marketing provides valuable content that attracts Owner Ollie's market share ~73%, low acquisition cost $1000, has low CLV, high
and retains interested customers. churn value, and vulnerable to economic changes

3. Targeted Engagement: Inbound marketing enables personalized and targeted
communication with the right audience, increasing engagement and conversion rates.
4. Cost-effectiveness: Compared to outbound marketing, inbound marketing often
provides a higher return on investment due to its focus on targeted and valuable
content.
Marketer Mary's market share ~23%, high acquisition cost $5000, risk of
uncertainties of market trends, low churn rate, high CLV, influence as an
industry expert.
They should focus on other sectors after they have gained market traction and
a strong client base in the targeted customer segment.

5. Customer-Centric Approach: Inbound marketing puts the customer at the centre,

As a start-up company, HubSpot should first focus on elements like market size,
focusing on addressing their needs and providing valuable solutions.
competition, and resource allocation.

HubSpot's emphasis on inbound marketing positions it as a solution that

Focus on B2B clients first to gather knowledge and needs of commercial
caters to the evolving needs.
clients, then B2C to comprehend market potential & available resources.
Q3: HubSpot has begun to differentiate its products as it has learned more about its customers. Should it do
more? Should its pricing strategy change too? Does the software-as-a-service (SaaS) pricing model work for Q4: Are Halligan and Shah being too stubborn by not doing any outbound marketing? Or should they continue to
both Marketer Marys and Owner Ollies? Should HubSpot try to immediately capture more value for either of practice what they preach by focusing on inbound marketing alone?
these customers?
Product Differentiation
Yes, HubSpot should look for increasing product differentiation,
Diverse Customer Base: Due to inbound marketing, HubSpot has a diverse set of customers, so it is not ideal to keep standard product line.
To retain Subtle introduction to outbound marketing
Customer Needs: HubSpot's offerings lack alignment with diverse customer needs. For B2C firms content templates are rudimentary, while B2B customer's belief
firms seek additional technical support and B2C small companies experience higher churn rates than B2B companies, indicating unmet needs. and trust
Low CMS User: The major customer base for HubSpot is Owner Ollies (73%) or B2B (68%), both of these do not have expertise in WEB 2.0, yet Calling the customers who have dropped out
the CMS customer base is only 15%. after using the services
Pricing Strategy
Should practice To stay true to the Using options which do not interrupt the
HubSpot is able to break-even and earn revenue much before the 16th week, after
what they preach company's original audience or force them, like brand collaboration
which peak churn rate can be observed, indicating HubSpot has a strong financial
base. - Focus vision and objective
Using indirect options like a quiz/contest and
Value Capturing by Revamping Pricing Strategy promoting it using outbound marketing,
collecting 1P data
Owner Ollie Lock-in by Incentivizing Overcome Initial Burst Value Capturing in B2B
Inbound
Annual contracts at discounted price Offer a more basic product package Premium product package with higher Reminder cold calls to customers who reached
marketing brings
Increase the initial subscription price at a substantially lower amount and consulting hours and analytical tools.
in quality lead out but didn't opt for HubSpot
and post break-even period offer a incentivize to move to premium CMS bundle product with customized
discounted price / month products range training

Q5: Halligan and Shah want HubSpot to be to marketing, what Salesforce.com is to sales. What would your plan
of action be to make this happen? Why would you take these actions? What keeps you up at night about your
plan?

Customised Pricing Model Building trust in customers Focus on R&D

Hubspot is providing personalised

They already created 2 major
service to customers, they can To make the firm future-ready,
segments. Now they can bring in
move to value based pricing and they need to have dedicated
sector specific experts and staff
custom pricing for the customers market research & R&D team to
them to that segment. In this way
along with bundles and dynamic develop their product
customer feel more reliability
pricing. Try Freemium

Quality over Quantity Combine Inbound & Outbound Focus on Automation

They are already doing good, It is proven that inbound

now if they can focus more over
quality of service delivery,
customers will anyways get
attracted. Alternatively, they can
look into geographical expansion
Some tasks are very basic, like
combined with outbound can
training and setting up some
produce better results than one
regular campaigns, they can
alone. They can include outbound
automate that to focus on more
services to reach out to
important tasks.
customers as well
DIGITALLY OPTIMISING CONSUMER INSIGHTS
Digital Marketing Strategy

Group I
Shubham Gupta (2211318)
Nimish Kshirsagar (2211326)
Patil Ayush (2211490)
Samyak Jain (2211321)
Piyush Kumar (2211342)
Evolution of the Hair Care Industry and Market Influence on L’Oréal's
Digital Transformation Initiative
E-commerce and Online Shopping
L'Oréal's invested in robust e-commerce platforms and
digital marketing to expand online presence and enhance
customer engagement.
Customer Support & Engagement
L'Oréal's invested in digital support channels (chatbots,
social media, apps) leading to enhanced customer
experience and satisfaction.
Influencers & Tools used for consumer research and insights
Influencer - Micro
Content creators with a strong relationship with their
audiences; social media following of under 10,000
Highly engaged and loyal following on social media
and other platforms
Exhibit 5: POTENTIAL INFLUENCER PROFILE
Personalization and Customization
L'Oréal's leveraged technology to gather customer data
and offer tailored recommendations, catering to specific
hair types, concerns, and preferences.
Sustainability and Transparency
L'Oréal's commitment towards sustainability efforts and
ingredient transparency to appeal to environmentally
conscious consumer
Focus on beauty, fashion, and
lifestyle aligns well with L'Oréal's
products and objectives
Strong relationship with audiences,
allows them to establish a sense of
authenticity and trust
More relatable and approachable
compared to macro-influencers (A-
list celebrities) or mega-influencers
Profile describes a freelance
photographer and writer who runs the
blog "Haircare.com" with a focus on
beauty, fashion, lifestyle, and food,
including content related to fashion
editorials and haircare.
1,620 followers on Twitter, 650
followers on Instagram, 1,910 fans on
Facebook, 23,620 followers on
Pinterest, and 700 followers on
Google+
Social Media & Influencer Marketing
L'Oréal's integrated influencer marketing for increased
brand visibility, credibility, and reaching a wider audience
to create buzz
Augmented Reality & Virtual Try-Ons
L'Oréal Implemented AR-powered applications for virtual
hairstyling, allowing customers to try different hairstyles
and products virtually.
Consumer Research & Insights
Video Diaries: Consumers record experiences with
L'Oréal hair care products in real-time.Provides personal
and in-the-moment insights into consumer behavior.
Online Communities: Gather feedback on an ongoing
basis. Two-way communication channel for valuable
insights
Social Media Listening and Web Analytics: Track
sentiment, and analyze consumer interactions related to
their brand and products through ratings and reviews
Influencer Marketing: Beauty Babble Program,
Influencers provided reviews and feedback on L'Oréal's
products
Makeup Genius App: Allowed consumers to virtually "try
on" beauty products, provided L'Oréal with data on
consumer preferences and usage patterns
Digital Market Research Platforms: Fuel Cycle,
NetBase Solutions Inc., Social Blade, and Vision Critical
to gather and analyze consumer data more efficiently
Current Digital Marketplace - Brand Communication with Audience
YouTube how-to videos Online communities Augmented reality applications
Brands were using YouTube to create how-to videos Engaging with consumers through online communities,
showcasing beauty products and providing tutorials to where customers could interact, provide feedback, and Allow consumers to virtually "try on" beauty products,
their target consumers. share their experiences with the products enabling them to make informed purchase decisions
Social media influencers Incentive programs
Collaborating with social media influencers, particularly Exclusive access to products before launch, in return for
vloggers, who had a significant following, to review and their participation in brand-related activities and
promote their products to a wider audience generating content about their product experiences
Personalized engagement Digital and mobile apps CRM Technology
Data analytics and insights to understand target Digital & mobile apps, and interactive platforms, such as Customer relationship management technology to
consumers as individuals and to cater to their specific virtual makeovers and hairstyle simulations, to engage capture, track, and manage their relationships with social
needs and preferences consumers in a more personalized and intimate manner media influencers and their followers
Assessing L’Oréal’s current consumer insights and market research practices
L’Oréal's current practices for market research and getting consumer insights include Rating & Review on its website, strong Social Media &
Influencer activity that would help them assess the products before they were launched in the market. Then, there is "Beauty Babble Program" which
includes an in-environment recording of the product.
PROS CONS
Pushing Influencer activities and as per Digital Current traditional methods are slow and
Marketing Institute figures, customers trusted expensive
influencers more than the celebrities Being heavily dependent on influencers can
Social Media influencers would lead them to result in increasing marketing expenses
positive marketing and eventually outcomes Customers tend to write reviews when they
An added layer of authenticity to the brand have negative experiences, which might not
voice give clear customer insight
Customer get empowered and feels he's being Programs around perks instead of discounts
heard when he rates or reviews any product can affect sales of these products, which now
Vloggers have to post reviews at least for a have to be returned by influencers
year under the commitment plan Same influencer would also be promoting
Online discussion-board comprising of online beauty products other than L’Oréal which will
communities gives a regular in-depth feedback have a negative effect
Capabilities for a viable digital insight gathering and value generation strategy? KPIs and Digital Platforms to be used for to gauge success and best
results respectively
Digital Monitoring
INSIGHTS GATHERING

Make-up Genius
Digital IHUT Beauty Babble Influencer Marketing
Click-through Rate (CTR): Measures the percentage of
Beauty Babble Personalization and Participation Rate: A high participation rate indicates Reach: Total number of people who were exposed to the
people who clicked on a link included in influencer's
influencers' content. include social media followers, video
Customer Experience strong interest and engagement.
content, leading them to website or landing page.
Completion Rate: A high completion rate indicates a views and impressions.
Conversion Rate: percentage of people who completed
Consumer behavior successful user experience and engagement. Engagement Rate: Includes metrics such as likes,
making a purchase , after being exposed to your
comments, shares, and video watch time, indicates how
research Agile Decision Making
Online Reach and Engagement: High engagement
influencer's content.
indicates growing interest and can generate more brand well the content resonated with the audience.
Follower Growth: The growth in your brand's social
awareness. User Generated Content(UGC): Amount of UGC created
media followers during and after the influencer marketing
Number of Outcomes: Participants can provide diverse by consumers, can include unboxing videos, testimonials,
campaign.
set of feedback, which provides insights about customer or reviews.
Share of Voice (SOV): Measures the percentage of
sentiment. Brand Mentions and Hashtag Usage: An increase in
social media conversations and mentions about brand
Conversion Rate: Indicates the effectiveness of the brand mentions and hashtag usage indicates a successful
that come from influencers compared to other sources.
Marketing and Branding Data Processing & AI program generating buzz.
VALUE GENERATION

IHUT in driving purchase intent. Social Media Referral Traffic: The percentage of
Cost per Engagement: Lower cost to engage with the
website traffic that comes from social media platforms
influencer is good for success of the program
Global Presence after being directed by influencer posts.
Social Media Outreach
Influencer & Celebrity
Collaborations Increasing channels for
Video based technology platform 1.44 BN Active users 81.2 % Reach
customer engagement
Qualitative and quantitative insights Can engage on a mobile phone Preferred mode by influencers
Builder of Online communities Enables use of text, image and video Customer & Influencer connection

EXISTING CAPABILITIES REQUIRED CAPABILITIES

Final presentation for the board to approve full digital transformation

MARKET RESEARCH EFFORTS RECOMMENDATIONS FOR DIGITAL TRANSFORMATION STRATEGY
1. Enhance the Beauty Babble Program
86% New systems to efficiently capture, monitor and maintain users, data and
women turned to social networks before purchase
procesess. With video content becoming increasingly popular, with
86% consumers showing higher engagement and retention rates with video-based
most viewed videos on YT were made by influencers content compared to traditional written content.

70% 2. Leverage Social Media and Influencer Marketing

consumers trust influencers more than celebreties
Considering the rising competition in the hair care
industry , while also looking at the fact that 86% of
brands using influencer marketing have seen their
budget skyrocket, L'Oreal needs digital
transformation to stay ahead of it's competition
CHALLENGES OPPORTUNITIES
Research indicates that social media influencers can have a substantial
impact on consumer purchase decisions, with a high level of trust and
influence over their followers.
3. Embrace a digital first strategy
Social networking websites like Facebook had over 1.44 billion active users.
YouTube had reached over 81.2% of internet users in the same year. The
highest viewing category for females were makeup and cosmetics.
MEASURING SUCCESS - RELEVANT KPIs

Competitive Enhanced Customer

Social media engagement metrics (follower growth, engagement rate, Digitally Optimizing Consumer Insights
reach) provide insights into brand reach and customer interaction. Website Group - G
Landscape Experience
visit and conversion rate metrics would help to understand the effectiveness
Managing Influencer Real Time Data and Just Basumatary (2211303)/Sourav Bassi (2211306)/Rahil Sonkusare(2211357)/Santhosh S(2211358)/Suhas S(2211359)
of their digital marketing efforts in driving traffic and conversions. Video
Relationships Insights
performance metrics like view count, play rate, shares help evaluate the
Data Security and Increased Reach in
success of video content in capturing audience attention and driving
Privacy Global Markets
engagement.
 1. How was the evolution of the hair care industry and market influencing L’Oréal’s digital transformation initiative? 2. How were brands communicating with their audience and staying relevant in the current digital marketplace?

Implications on Loreal’s digital

Evolution of the haircare industry
transformation
Promising future outlook for the haircare industry High focus on collecting consumer insights through
(US$102.49bn by the end of 2024) digital touchpoints

Millenials more invested in making critical purchase decisions Convenient & extensive market research insights
gained through technology was key to L’Oréal’s Unconventional Digital Social Media​
higher sensitivity to materials used Influencers​
digital transformation Media​
•Trusted by millions of • Apps utilizing augmented • Social media profiles
Move from purely functional products to key fashion products Emphasis on increasing time spent on digital outlets, consumers​ reality to simulate tailored for specific
that reflected the general trend of user identity reflecting higher brand relevancy of L’Oréal makeovers and hairstyles. audiences.
•Internal clients ask for • YouTube tutorials and • Building personal
influencers input​ instructional videos. connections with
Thinking in the direction of a consumer-centric, fast • Digital playgrounds customers.
Haircare industry was recognizing importance of consumer & agile solution •Influencers rating lead to available in physical stores. • Primary source for
behavior and context within customer evaluated choices positive marketing and ou • Customer review logs obtaining product
tcomes​ and testimonials featured information and reviews.
Motivation for L’Oréal to resort to more advanced on websites. • Convenient sharing of
methods to help the company become the market •Less formal, • Specialized online digital content across
Age of digital differentiation – foraying into new uses of more authentic ​ communities.
leader multiple platforms.
digital media : Augmented Reality Apps, in-store digital
playgrounds, online communities, etc.

3.a. What influencers (i.e., mega, macro, micro) were solicited? 3.b. What tools (i.e., vlogs, blogs, communities) were used for consumer research and insights?
4. What are the pros and cons of L’Oréal’s current consumer insights and market research practices?

INFLUENCERS PERSONA
Practices/Tools Methodology Pros Cons

In-Home Usage Test Products sent to respondents • Customer Product • High cost and time
prior to launch for usage. feedback • Difficult to scale up unlike
They recorded experience via • Product improvements online
Share authentic opinions about diary or online log based on user experience
Task
Focus Macro and Micro products and brands.
Video diaries Products sent to respondents • Product usage in the • Difficult in finding
& environment participants
Traditional they recorded the video while • Lower cost • Initial infrastructure
using the product and gave • Easier to scale up investment
feedback.

Diversity Diverse backgrounds Online discussion Recruited respondents • Improved engagement • Skewed results
Commitment provided live feedback about with consumers • Behind computer screens
1 Year boardroom the product in a meeting • Real time feedback hence lack trust

Post product ratings & Consumers posted product • Reviews can be • Difficult to direct
Possess a substantial and ratings and reviews on Loreal considered authentic customers to site
NAME XYZ reviews website • Customers can explore • Number of reviews will
Number of Minimum 35000 Followers in genuine follower base, while
AGE Any age group Backg round more options on site vary
Followers the time conducting thorough
Tier 1,2.3 City
LOCATION
background checks. New-ways Social Media Expert opinions from • Better connect with end • Difficult to verify if
GENDER Female influencers about consumer consumers followers are real &
Influencers reactions before launching • Quick & real time authentic
products feedback on products • Time-consuming & costly
to manage a
5. What capabilities does L’Oréal possess? What capabilities does it need to acquire for a viable digital insight gathering and value 6. What key performance indicators (KPIs) should be used to gauge success? Why? What digital platforms provide the best results?
generation strategy?
Conversion Rate Influencer Reach/ Growth Average Screen time
Measures the percentage of visitors who Measures the size of the audience reached Measures the average time visitors spend on
complete a sale through influencer collaborations L’OREAL channels

Write a review Posting product ratings
@ www.loreal.com
GAPS
• No holistic program that included the trues voice of the
marketplace
• Manual and less efficient process
• No continuous consumer insight provider
• Indicates the website's ability to convert • Reveals the quality of audience interaction • Longer session duration indicates engaged
visitors into customers and interest in influencer content and interested visitors
• Identifies high-performing pages and • Allows businesses to collaborate with • Indicates the website's ability to capture and
customer segments for targeted influencers who have a genuine and engaged retain the attention of users
improvements following • Highlights which channels or content drives
• Helps optimize user experience and increase higher engagement
conversion rates
Social Media Engagement Return on Investment (ROI) Sentiment Analysis
Measures likes, shares, comments, and Can be evaluated for individual marketing Measures the sentiment of audience
interactions on social media posts channels, campaigns, and time periods comments, reviews, and feedback- Can be
Affectionate program for participants categorized into positive, negative, neutral
Launched Makeup Genius, a mobile sentiment
who loved talking • •
app that allows consumers to virtually • Can be compared across different social Guides decision-making on allocating Indicates the overall perception and
Instead of giving discounts, program media platforms - Helps identify the most resources and budget for marketing activities satisfaction levels of the audience towards the
try on makeup successful platforms for engaging the target that gives the best returns brand, products, or services
was built around perks • Provides insights into the performance of • Helps understand customer opinions and
audience
• Enables focus on platforms that align with the specific marketing initiatives emotions, enabling targeted improvements
brand's objectives and resonate with the
ACQUISITIONS audience directly.
• An integrated platform to put insights of all the digital Social Media Platform L'Oréal Website Beauty Apps and Virtual Try-On Tools
platforms together that are personalized to each user Visual content allows L'Oréal to display makeup By analyzing user data, such as browsing Make up Genius enhance customer experience
• Video augmentation technology which enhances the Digital tutorials, beauty tips, and product history, location, and past interactions, the and increase conversion rates.
consumer experience and helps in collecting customer Platforms demonstrations, which resonates well with their website can dynamically display content that
target audience. aligns with the user's interests which will lead to It enable customers to virtually try L'Oréal
insights better conversion rate products before making a purchase, reducing
Influencer helps L'Oreal reach a wider audience uncertainties and boosting confidence.
and increase brand awareness.

Opportunity in Numbers
Social Media & Internet Growth Industry Potential L’oreal’s Opportunity

1.44 Bn+ 81.2% 29% 86% 30% 19%

Facebook active YouTube reach for Increase in e- Users of social media Online sales growth Digital spend of the
users Americans commerce beauty networks before in 2013 total advertising

SOCIAL STRATEGY
industry in 2013 purchase budget

L’oreal’s Digital Strategy Recommendations for the Board

AT NIKE
1. Use of Variety of Digital Tools Technology with
Improved Budget for Digital
E-commerce Content

2. Acquire Requisite Technology and Train

Employees for Effectiveness
Bijaya Sethi 2211424
Mansee 2211404

Beauty Tech
3. Agile Approach with Real-Time Monitoring and
Budget Iterations
Kumari Saumya 2211101
Saloni Singh 2211124
Analytical
Tushar Mandal 2211512
Digital
Leadership
 Nike+ Overview - Company Snapshot Nike+ ecosystem-driven social strategy successfully built a community, engaged
users, and drove sales. Here’s an evaluation of the Nike+ ecosystem:
Nike has been a benchmark at creation of Nike+ was created in collaboration with Apple
sports communities of athletes and amateurs and has expanded from athletics to various Community Building: Personalized User Experience:
alike, creating a stimulating ecosystem. It not domains including but not limited to Football, Users can share achievements, participate in The Nike+ ecosystem, including Nike+ Running, Nike+ Value
only improves the existing relationships but Basketball, Training along with equipments challenges, compare stats with friends, and even Training Club, and Nike+ FuelBand, uses data to deliver
also helps in building new ones like fuelband and sports watch engage with professional athletes. personalized experiences.
This sense of community helps amplify the reach of It tracks and analyzes each user's performance and
In 2004, Nike launched its first The NIKE+ FuelBand A a
Nike's message as users share their experiences and provides customized feedback and training routines,
social-based marketing Nike's "The Grid" was a
motivate each other. Experience
campaign, Art of Speed, with location based social
Nike's World Cup Marketing fitness-tracking device that Nike's + Training : Converts enhancing customer engagement.
Campaign: Created a "Write aimed to make life a sport. working out experience into a
Gawker, a media company, interaction game which
the Future Campaign This product was a part of game with demonstrations
featuring 15 filmmakers merged real world sport
"focussed on helping players Nike's expansion into fitness videos performed by leading
interpreting speed concepts. The performance with digital
blog attracted 400,000-700,000 and social channels to
become better to create a buzz technology, blending Nike athletes. Nike+ Led to Significant Financial Results:
unique visitors monthly. create community effect
around Nike's players and physical activity with digital Interactions
advertising convenience.:
Timeline

In 2005, as part of the preparation

for the 2006 World Cup, Nike
Football worked with social
network MySpace, acquiring 1 2 3 4 5 6 7 Engagement
50,000 friends, to become one of
the largest brand communities at Platforms
the time.

Nike's Marketing Challenge Nike's World Cup Marketing Nike's + Basketball : Receives
Nike launched Joga.com in Campaign: Created a "Write prerecorded messages from
in China: Nike attempted to
partnership with Google, in
popularize running in the Future Campaign Nike Basketball stars after the
2006. Joga was a custom
social platform built over Orkut China, organizing 'Lunar "focussed on helping players successful completion of the Networks
Runs' to encourage Chinese become better to create a buzz targeted goals to increase
platform, rolled over 140
countries and 14 languages people to run at night. around Nike's players and motivation
advertising

Nike+ ecosystem-driven social strategy successfully built a community, engaged

Use of Facebook, Twitter, and YouTube for Nike's digital strategy
users, and drove sales. Here’s an evaluation of the Nike+ ecosystem:

Content Marketing: Brand Loyalty: Sales Strategy & Data Collection:

Nike+ also serves as a platform for content
marketing.
From tips on workouts to success stories
from athletes, this content strengthens the
By providing value beyond just products,
Nike has increased brand loyalty.
Users are likely to feel more connected
to a brand that is invested in their
The ecosystem cleverly integrates product
promotions and recommendations.
Increasing brand awareness and engagement - viral Brand storytelling, motivating audience, and
The extensive user data collected can be Increasing brand awareness and engagement -
Goals hashtags, celebrity athlete's endorsement and product creating an entertainment hub for sports
Campaigns, Communities, restricted access
leveraged to drive more targeted marketing releases enthusiasts.

brand's connection with its users and subtly personal goals and provides them with campaigns, improve products, and stay ahead
markets its products. tools to achieve those goals. of market trends. sports enthusiasts, athletes, and young adults
sports enthusiasts, athletes, and young adults interested in sports enthusiasts, athletes, and young adults
Audience interested in an active lifestyle with Focus on
an active lifestyle interested in an active lifestyle
millennials and Gen Z

Building communities, products highlights, athlete

Products highlights, athlete endorsements, brand High-quality videos campaigns with star athletes
Content endorsements, brand campaigns, and sports-related
campaigns, and sports-related events, training videos and inspiring stories
events

Building a sense of community, promoting user created Viral hashtags, Active lifestyle videos, motivational
Engagement Brand awareness
content, Motivating users, social community interaction posts

Pioneers in using social media to interact with consumers.

Helping customers improve by measuring their data
Innovation Encourages consumers to generate content for Nike -
automatic posting on Twitter, using Friends to compete and
motivate, running maps
Used key digital technologies- data analytics, social
Pioneers in leveraging YouTube to promote
engagement and storytelling
campaigns
Innovations like The Grid - A Gaming Platform
 Integration of Nike's digital strategy with its social strategy
TenetsUse
of Nike's SocialTwitter,
of Facebook, MediaandStrategy
YouTube for Nike's digital strategy
Attendees

01 Being where the customer is - Letting people see 05 Engaging with the audience beyond products Digital Strategy Social strategy Impact
themselves in our campaigns, connecting with to motivate them
consumer in ways they already connect with To increase its presence in digital
To connect with its customers It created social appeal in its target
things they enjoy space where it can showcase its
Intent brand, products, innovations and
and bring motivation to every customers which improved its brand
athlete in the world value and reach of its campaigns
campaigns
02 Early social media experimentation - early 06 Megastar Endorsers tweeting about
experiments with YouTube and Gawker- "Art of daily activities and workouts Use emerging mediums to create
Early social media Use emerging mediums to Viral campaigns which attracted a small
Speed" and "Touch of Gold", Nike.com a buzz around its products and connect with consumers and get but passionate crowd (20m view in weeks)
Art of speed
athletes consumers to interact among Associating the brand with "speed" and
Touch of gold
Used Blogs and Youtube themselves get inspired "football"
FB, Youtube, Twitter

03 Separate Facebook pages for every sub-brand 07 Positioning the brand as a healthy Website To use social media to highlight To get sports enthusiast more With over 1m sign up, improvement of
incorporating golf, Nike+ Run Club etc - to create lifestyle motivator instead of making it the fun of sports (football) and actively involved brand awareness and association with
joga.com
nike.com associate it with the brand good feeling (love towards football)
communities about their products only

Innovation Use the latest technology to

To encourage people to run, buy Developed a community with lot
allow users to track and share of interaction and increased
Empowering the Target Audience by Nike+ data analytics, nudges and
04 Integrated digital media strategy across all 08 nikeplus.com activity data with seamless association of the brand with
enriching them with their workout data - connection with friends. Re-
platforms - allowing users to share across all transfer --> membership growth athleticism
define running
helping them track and improve - being --> revenue growth
platforms, using friends to motivate and
a part of their lives
compete

Integration of Nike's digital strategy with its social strategy How was Nike able to develop such a rich, integrated social and
Attendees
digital strategy
Train with coaches
Track Your Runs
Digital Strategy Social strategy Impact How ? & sports stars

To use social media platforms To inspire football players and Consistent focus on
Worldcup such as facebook, Mxit, QO etc. make them better by bringing
Innovative product with
association of love for football the mission of Nike to
Nike football plus to improve awareness and create them close to their idols and their inspire athlete and
created huge buzz with
write the future build a community
buzz friends to improve performance increased subscribers and
Life center
and competitiveness content creators
KPIs of digital
campaigns were

Training
directed towards a Nike+ Ecosystem
Increase traffic to website provide the chance for talented 75k players created profile and joined narrow target
The chance footballers to try playoffs and the program. Secondly, brand audience
Nike+ training
assist them to improve on the association with excellence and power
Set goals, displayed
game to write future Always ready to try
Data- Driven Decisions Nike+ Online community
new technologies
and innovative ways
privately or publicly
Shoes with sensors helped analyzed
to connect to
60k tweets and huge exposure performance and provide feedback
Digital sports Use of digital technology to
To motivate people for an activity
Enhanced new product launch with
customers
Nike+ improve performance of
by sharing relevant insights from Training regimens synced with App
hashtags. Inculcated love for sports
the data and allow them to be and website
Fuelband consumers and get insights from and built a connection with
part of a community
consumer data customers Inspiration to compete within the
community
Share & compare performance and
goals with community
Helped improve how athletes train
 How was Nike able to develop such a rich, integrated social and
digital strategy

Inspiring Campaigns Social Media & Web Presence Customer- Centric

Approach SOCIAL STRATEGY AT NIKE
Crafted personalized and relevant
Marketing campaigns during world Active presence in social media content
cups attracted eyeballs platforms by endorsing sport stars as Choice of coach or sport star to get
"Write The Future" campaigns brand ambassadors trained from
challenged consumers to achieve Building online community like Set personalized goals and complete
their goals and improve performance Joga.com & MySpace to converge it in your own pace DMS Group B PGP 2022-24
"Run for China" campaigns inspired people of same interests Freedom to share performance with
to take up running & exercising and Leveraging hashtags in order to community or friends of choice
take pride in sharing with the encourage people to sport & exercise Share goals with friends or Anuska Roy 2211079 Siddharth Arora 2211081 Shweta Pable 2211112 Rushikesh Patil 2211113 Avinash Srivastava 2211133
community Share with friends community

Q1. Evaluate Nike+ Ecosystem as a Foundation for the Company’s Social Strategy. Q2. How Does Nike Use Facebook, Twitter, and YouTube For Its Digital Strategies?

Nike+ is a strong attempt to bridge consumers and products, making Nike more than just a brand, a community. 2004 Art of Speed blog (first social media campaign)

Components of the Touch of Gold(2005)

Nike+ Nike+ Football Nike+ FuelBand Nike+ Basketball Nike+ Training The Grid (2010)
ecosystem
Run for China(2011)
2005- Nike Football+ (2008)
Customer motivations to go online Creation Consumption Connections Control 2012 Write the Future (2010)
The Chance competition(2010) #MakeItCount Campaign: Top athletes Nike+ Basketball: Showcase feature
Nike Life Center, Johannesburg(2010) making 66,000 tweets by 2012 to share videos on social media
Open
View data, Level Share Nike+ FuelBand(2012)
GPS Sports GPS Cheer Me Partnership source for
Sensors Website Training playing workouts, #MakeItCount(2012)
watch Tracking On with Apple user data
Tips field routes Nike+ Basketball(2012)
control

Tech Enablers Functionality Strategic Initiatives

The greatest strength of Nike+ was the innovation it brought The social strategy of linking the Nike+ products with
at the time. It linked product with experience. runners’ experience encouraged consumers to create user-
Touch of Gold: World Cup 2006 strategy, Nike Life Center: World Cup 2010
generated content for Nike, (i.e. automatically posting on
Nike was an early adapter of social media platforms upon the creates Nike Football channel, casts social strategy, Fans submitted
social media, driving competition between friends, etc.) and Ronaldinho, releases first video on Youtube, messages through Facebook and
onset of YouTube
made the “advertising” more organic and natural. 20M views in few weeks Twitter that were shown to the city
Nike risked utilizing social media at a time when nobody was The Grid: Turning Write the Future: The Chance: 75000
Furthermore, with the releases of other products like the London into a giant 7.8M views on FB, players made fan “Shift for NIKE from product, to product+ experiences”
really doing so, and their success was massive page on Facebook “Connecting today is a dialogue”- Mark Parker, Nike CEO, 2006 to 2020
FuelBand, Nike+ Basketball, and Nike+ Training initiatives, game board 3.4M followers
Page No. 2 Nike was able to reach more communities. Page No. 3
Q3. How Does Nike Integrate Its Digital Strategy With Its Social Strategy?
Engaging with
Social Strategy
audience
Fosters a deeper
connection & builds loyalty
Blogs, social networks,
videos, YouTube channel,
Nikeplus.com
Digital Strategy
Page No. 4
THANK YOU
DMS Group B PGP 2022-24
Anuska Roy 2211079 Siddharth Arora 2211081
Building New Culture
Introduce new trends &
habits in consumers
Joga.com, Grid game, Run
for China,
Campaigns for players,
Gamification
Shweta Pable 2211112 Rushikesh Patil 2211113
Helping Audience
Keep audience informed &
engaged – tips, training,
health parameters
integration
Nike +, Nike Football +,
product integration to
support health, Nike
+Training
Avinash Srivastava 2211133
Inspiring Audience
Resonates with people and
helps to increase the
popularity
Global Talent Hunt
programs, Life center, Social
updates by users,
#makeitcount, adrenaline
boost by Nike+
INNOVATION, INC.
The Online to Offline
Marketing Challenge
SLEEP BETTER,
LIVE PURPLE.
Q4. How was Nike Able To Develop Such a Rich, Integrated Social & Digital Strategy?
Nike's success was aided by trial & error at a time when social media platforms were
Economies of Scale
on the rise. Nike's early social media campaigns, like "Art of Speed" were on Gawker,
with Social Media Myspace, and then YouTube. It was Nike’s focus to enhance customer experience &
understand what customers need – which made them successful
Correct Partnerships
Nike’s Key Nike’s Success In The Digital World
First Mover Advantage
Success
Factors
in Industry
Correct Market Allocation S Social Currency: Nike established this through its running campaigns (Run for
China, Nike+)
& Message Conveyed
Tech & Innovation
T Triggers: Nike created this through partnerships with Apple like Nike+,
#MakeitCount – to remind users of Nike
Strategy Impact E Emotion: Nike played with emotions for motivating people to stay fit & added
features to promote healthy competition (Showcase)
To reduce cost
Joga.com
To increase WTP
P Public Visibility: Nike collaborated with world-class sportspersons like Ronaldo
& Robinho– all of whom had a huge fan base and optimal social media base
Relationships
Nike+
Establish
Nike’s
P
The Grid
Social Impact
Basketball
Practical Value: Nike was able to create a sports community through its social
Successful The Chance
strategies & being the first mover- “The Chance” Selection of Top Players
Social Run for China
Strategy
S
Relationships
Stories: Nike made a compelling story (especially with sportspersons)
Strengthen
Nike+ Training
motivating customers to purchase products. For example: “Write the Future”
Nike Football+
Nike FuelBand *Framework adopted from Jonah Berger
Page No. 5
How to Create Viral Content: The 6 “STEPPS” to Success – Pressboard (pressboardmedia.com)
CASE
ANALYSIS
Group 13/A
Amit Mandal 2211184
Rajat Suvagia 2211434
Manjiri Bhojane 2211491
Ankita Prakash 2211006
Abhinav Paigwar 2111344
 Case Overview
Purple Inc., founded in 2015 by two brothers, is a mattress company that sells
mattresses online and through a network of brick-and-mortar stores.
Purple's innovative mattress material and packaging helped in the fierce competition
of the mattress business, which had low barriers to entry but difficult to scale
Purple leveraged digital marketing platforms and used social media marketing
to target specific segments of customers.
Even though Purple has established an online presence, the case
focuses on shifting to an omnichannel model to maximize market
share.
The case focuses on how Purple Innovation Inc. successfully
created an online DTC company but faces challenges in
creating offline footprint
The company is aiming to grow sales overall and reach
a 70% to 30% ratio of online to in-store sales
Que 1 Reason for the rise of the new wave of DTC
mattress companies
4. Enhanced Customer Experience: DTC mattress providers highly value providing a
smooth and customer-focused experience. They offered free delivery, 100 day trial
period, and a free return, which gave customers the confidence to purchase a touch-
and-feel product online.
5. Digital Disruptions: The surge in internet usage has shifted customer behaviour
towards online research, comparison, and shopping. DTC companies have seized this
opportunity by providing user-friendly websites, detailed product information, and
hassle-free purchasing processes.
Que 1 Reason for the rise of the new wave of DTC
mattress companies
1. Convenience and accessibility: DTC companies allow customers to browse and
purchase mattresses from the comfort of their homes, including free shipping and
compressed bed-in-a-box delivery.
2. Competitive Pricing: DTC mattress companies have eliminated intermediaries, such
as brick-and-mortar retailers, and selling directly to consumers, which allows them to
offer competitive prices by bypassing the markups associated with distribution
channels.
3. Effective Digital Marketing: Digital platforms such as Google, Facebook, etc., provide
their data-driven, cost-effective services to find, acquire and retain customers. DTC
companies leveraged these to reach and engage consumers effectively.
What is Purple's value proposition? Is it unique
Que 2 relative to other industry players?
1. Comfort technology: Floam, liquid cushion material (footwear, seat cushions, ballet cushion,
ankle braces, Hollow buckling column), gel-like material
2. Innovative design: Mattresses to alleviate pressure by redistribution, compress & roll
packaging, individually wrapped pocketed coil core with different thicknesses on top of
mattresses
3. No pressure mattress: Creative raw egg test to show the effectiveness of pressure-releasing
columns in their design and the motion isolation capabilities
4. Low cost: Apart from the floam type mattress, purple's value proposition included the lower
cost of luxury mattresses in comparison to its competitors
5. Collaboration: Partnership with the largest US retailer "Mattress Firm" for brick & mortar
stores, expanding physical presence by including Bed Bath & Beyong, Macy's and furniture
row
 What is Purple's value proposition? Is it unique What value do bricks & mortar mattress
Que 2 relative to other industry players? Que 3
Que 3
retailers offer to customers?

6. Customer & partnership experience: Distribution agreement with the retailer partners by
selling at wholesale prices and adhering to minimum advertised pricing (MAP) policy for
customers regardless of channel chosen for shopping, providing customization facility
7. Omni-channel strategy: Advertising through traditional (TV, radio, print) and digital (Social
media, google search, shopping formats) media channels to capture a large segment of
customers through a multi-marketing strategy
8. Unique strength: Split testing on different video cuts, lengths, intros and themes, Purple
Boys video strategy was used to target the right audience at the right time with the right ads
and convert them into potential customers and buyers
1. Convenience: Customers can simply walk into a store and purchase a mattress, rather than
wait for it to be shipped.
2. After-sales Support: Local stores offer installation, warranty assistance, and easy
returns/exchanges for customer convenience.
3. Immediate Availability: Customers can purchase and take home mattresses on the same
day, avoiding delivery wait times.
4. Local Presence: Local stores provide accessible customer support and a sense of trust and
reliability.

The value propositions mentioned above are unique to Purple's strategy to stay relevant and 5. Local Community Engagement: Physical stores often engage with the local community by
target all types of customers by increasing awareness and taking decisions based on the hosting events, workshops, or educational sessions on sleep health, helping customers make
evaluation on returns per metrics and impacts informed decisions and promoting overall well-being.

What value do bricks & mortar mattress

Que 4
Marketing communication plan to help generate
Que to3customers?
Que 3 What value do bricks & mortar mattress retailers offer
retailers offer to customers? offline sales at partner stores, such as Mattress Firm

6. In-person Testing: Customers can physically try out mattresses, ensuring comfort and
suitability before purchase. Campaign Objective:
Drive sales at partner offline stores
7. Expert Advice: Knowledgeable staff provides personalized guidance based on sleep
preferences and specific needs. Target Audience:
Broad: Age - 20+; Gender - Male & Female
8. Customization Options: Some physical retailers offer customization services, allowing
Narrow: Customer coming in to buy related good in Partner store, Value-conscious
customers to personalize their mattresses by selecting specific materials, firmness levels, or
consumers, Health and wellness enthusiasts, Technology enthusiasts etc.
additional features.

9. Additional Sleep Accessories: Physical retailers may offer a variety of sleep-related

Primary Communication:
accessories such as pillows, sheets, mattress protectors, and adjustable bases, allowing
Enhance your sleeping experince with purple mattress
customers to complete their sleep setup in one location. Secondary Communication:
Better sleep lead to better lifestyle in totality
10. Comparison Shopping: Customers can compare brands and models side by side, aiding
informed decision-making.
Que 4 Que 4
Marketing communication plan to help generate Marketing communication plan to help generate
offline sales at partner stores, such as Mattress Firm offline sales at partner stores, such as Mattress Firm

Key Strategies and Tactics: Key Strategies and Tactics:

1. In-store branding with aesthetic product display
Creating a welcoming and attractive mattress display space by working with partner
stores.
To draw attention to the brand's leadership position and salient product attributes,
use floor decals, banners, and signage inside stores.
Give sales employees branded items to distribute, such as pamphlets, flyers, and
business cards.
2. Localised PR and Advertising
To reach the target demographic, run focused print, radio, and TV commercials with
local influencers and in the native language
Media contacts to publish customer reviews and ads of existing customers
Present local media outlets with exclusive interviews or knowledgeable advice on
the need of getting enough sleep.
3. Partnership with influencers & driving social meadia enagement to create funnel
Find influential local bloggers, vloggers, or social media users who specialise in
issues pertaining to sleep, lifestyle, or home decor.
To promote the brand and partner retailers through sponsored content, reviews, or
giveaways, negotiate partnerships or sponsorships with these influencers.
Keep an active social media presence on Twitter, Facebook, and Instagram to
interact with potential consumers, share product details, and promote unique in-
store deals or events.
4. Promotion In store:
To inform customers of the brand's outstanding qualities and advantages, hold
workshops or education sessions about mattresses in affiliated partners
To encourage customers to visit the partner stores, provide time-limited specials,
discounts, or package deals only for in-store purchases.
Work together with nearby sleep or health professionals to provide on-site
consultations or demos.

Digital Ad campaign to help drive traffic to

Que 4 Que 5
Marketing communication plan to help generate
offline sales at partner stores, such as Mattress Firm partner offline stores

Key Strategies and Tactics: Campaign Objective:

5. Personalised Referral Program Drive traffic to the partner offline stores
Implementing a programme that pays current consumers for promoting friends and
family to the partner businesses.
Give discounts, gift cards, or free accessories in exchange for each successful
Target Audience:
recommendation to entice happy consumers to tell others about the company's Broad: Age - 16+; Gender - Male & Female
world-class mattresses. Narrow: Moving-in in the locality, inclined towards luxury goods, having medical
conditions like body pain, arthritis, etc
Measurement and Evaluation:
KPIs to be tracked for performance:-
1. Footfall in partner stores Primary Communication:
2. Sales conversions It is easy to get quality sleep now, we [purple mattresses] are present just down
3. Customer feedback the lane.
4. Social media engagement Secondary Communication:
5. Media coverage How 'quality sleep' is important for mental, physical and emotional well-being.
Purple can use MMM (Marketing mix model) to calculate and allocate the budget
in each channel, and also to check the ROI from the channel
 Digital Ad campaign to help drive traffic to Digital Ad campaign to help drive traffic to
Que 5 partner offline stores Que 5 partner offline stores

Ad Script/Video Content: Scene 3:

Channel 1: Directly to be played on video platforms:
On Screen - A couple in their late 30s
Scene 1:
The couple wakes up, and the husband complains about body pain and asks the wife to give back
massage. He keeps asking her to massage his back the entire day [to be shown in fast forward without
voice].
EOD - The wife takes him to a nearby store to check Purple Mattress where they touch, feel and try
the mattress and buy saying 'Quality Sleep is Important for Physical Wellbeing'.
The husband is shown yawing and stressed at the office, The husband comes home early from work.
Wife: What happened? Is everything all right?
Husband: No, I feel very tired and stressed. Wasn't really able to focus on work. I am thinking of
sleeping for a while.
Wife: As you mentioned sleeping, I think our mattress is the culprit. Let's visit the nearest store to
check out Purple Mattress.
EOD - They visit a nearby store to check Purple Mattress where they touch, feel and try the mattress
and buy saying 'Quality Sleep is Important for Mental Wellbeing'.

Scene 2: Closing Scene:

The couple is shown yawing and fighting throughout the day [to be shown in fast forwards without
voice].
Wife: 'What is wrong with us? We were never like this.
Husband: I am tired of everything, I just want peace, nice sleep maybe.
Wife: I feel the same.
Husband: I think we should change our mattress, lets's check Purple Mattress which is available close by.
EOD - They visit a nearby store to check Purple Mattress where they touch, feel and try the mattress and
buy saying 'Quality Sleep is Important for Emotional Wellbeing'.
If you find yourself sleep-deprived or a victim of any of the mentioned situations, we are here for you.
Visit our store at *[variable-store location] to get your quality sleep from tonight.
Channel 2: Personalized Ad directed via QR code printed on bill boards, leaflets, etc
Opening Scene:
Hi, Mr/Ms *[variable-person's name] Are you sleeping well? We are worried for you. If you are having a
difficult time sleeping or are a victim of any of the following situations, we are here for you.
Followed by Channel 1 script

Digital Ad campaign to help drive traffic to Digital Ad campaign to help drive traffic to
Que 5 partner offline stores Que 5 partner offline stores

Variable Data:
Personalization - The name will have to be filled in after scanning the QR code post which the video
will be played customized to your name
Location - nearest store location will be shown using geo-targeting [Add location link at the end] Behavioural-targeting:
United States Postal Service - For address change
Digital Platforms for Advertisement SEO and Key Words Search - tired, sleep, mattress, comfort, etc
Facebook
YouTube
Success/Performance Metrics
Google Ads CTR for the location link
Geo-targeting: CTR for the website [assuming people will try to get all the information before visiting]
Universities - High volume of students keeps moving to the cities to study In-store survey/feedback to track the origin of information
Hospitals - People with health issues are always concerned about their sleep The campaign can be run in selected areas and CAC can be compared with the other
Packers & Movers - Used for moving-in/moving-out [assuming people don't carry areas
mattresses]
Self-moving vehicle rentals like Uhaul, Penske truck, etc
 Conclusion
Purple Inc. is a successful company that has focused on comfort, customization, INNOVATION, INC.
and innovation

THANK
Purple Inc. shows a good example of chasing continuous growth and
competing beautifully with established firms

In-store branding and promotions can help in conversion even if

the customer comes to the partner store with a different brand

YOU
in mind

Geo-targeting and behavioral targeting can be used

to target customers to divert them to the partner stores

Personalized advertising creates a direct

connection with the customers and can
drive more traffic/sales
SLEEP BETTER, LIVE PURPLE.

DTC barriers to entry are low but barriers to scale are high due to intense competition.
They gave 100 nights free test for customers to try at the comfort of their homes.
Brothers or founders of Purple Inc. Were serial entrepreneurs.
CASE ANALYSIS Till 2013 they created their patented technology and licensed to other brands, in 2013 they decided to create
their own brand out of the products they created. They always created products in cushion technology, first for
sports, later they created.
Purple Innovation Inc. Found a way to roll the mattress so that the logistics cost can be saved. Signature packing, low-cost pf the
The Online To Offline Marketing mattress as compared to other luxury mattress.
Marketing campaign – raw egg test
Challenge 2016 purple went public
Consolidation of big mattress firms solidified their position
At that time no-one was creating content for YouTube and facebook.
Purple used split testing
By 2018 was looking to go additional options increase the sales
DMS Group B PGP 2022-24 Which all channels to use to drive more offline sales and campaigns cannot be directly linked to offline in-store
Anuska Roy 2211079 sales.
Siddharth Arora 2211081 Running upper funnel – awareness-based campaigns rather than bottom funnel more conversion driven approach
Shweta Pable 2211112
Rushikesh Patil 2211113
Avinash Srivastava
1 2211133
Company and Context 1. Rise of the New Wave of DTC Mattress Companies
Understanding Purple Inc. and Market Context as of 2020 Key factors responsible for the sudden explosion of Direct to Customer mattress brands
30+ patents, grid-flex Primarily DTC- Looking A unique approach to 600+ employees
About Purple Inc. technology To Expand Into Retail Digital Marketing and growing

1 Innovation 2 Comfort & Ease 3 Digital Platforms 4 Leverage

Popular Marketing
Campaigns Harmon brothers’ raw-egg
test video
• 50M+ Facebook views
• 5.8M+ views on YouTube
Google search, YouTube and
Facebook ad formats
• 1.8B+ views in 4 years
• Content native to platform
Purple Boys video series
• Drove online sales
• 3.4 times ROI, new audience

• Expanding to offline sales from DTC sales

Challenges • Developing a multi-channel digital marketing strategy to drive offline sales • Innovative Materials • Convenience with online shopping • E-Comm, Online Marketplaces • Lower Barrier to Entry
• Sleep Technology Integration • Streamlined Purchase Process • Social Media Marketing • Access to a Global Audience
• Risk-Free Trials & Warranty • Enhanced Customer Control • Data Analytics and Targeting • Enhanced Customer
• Partnerships with retailers (Mattress Firm) and brick-and-mortar shops (Bed Bath & Beyond, Macy’s) Program • Personalized Recommendations • Direct Customer Experience
• Traditional (TV, radio, print) and digital marketing (display search, content marketing, social media) • Quick Delivery and Fulfillment Engagement • Mobile Connectivity & Devices
Strategies •
• Identifying the correct metrics to track progress (Cost-per-engagement/Cost-per-action) Low customer acquisition cost

1 2

2. Purple Inc. Value Proposition and Relative Uniqueness 3. Value Offered By Brick and Mortar Stores To Customers
Low cost, innovation, and high quality of products set Purple apart from its competition “About 75% of customers would not consider buying a mattress online.”
- Joe Megibow, Purple’s Chief Executive Officer
Unique Value Proposition and Points of Differentiation Perception Map for Purple Inc. Typical Retail Customer Journey
(High) Innovation
“It was difficult to “The store was “The staff
compare options on pleasant to visit” “I’ll recommend this
Price: $999 (Purple) vs $4000 (Competitors) helped” store to my friends”
my phone”

Research for Go to Brick &

Need to Purchase Purchase Usage Support Repeat Purchase
Delivery: Doorstep delivery using options online Mortar Store
(Low) (High)
traditional carriers “I need to make “This has met my “I’m glad that you answered
Price “I need to purchase
a purchase” price expectation” my phone call & Questions” again”

Comfort: First No pressure mattress,
with a patented superior technology
Packaging: Signature purple translucent
packaging to show off the rolled mattress
Values offered by Brick & Mortar Retailers to customers
(Low) Large Variety of Options Ability to experience No-biasness in Decision
Customers has access to wide range of product varieties all Allows one to pick based on their expertise or on their Seeing customer ratings, reviews & total orders on e-commerce
at once and can accordingly decide a suitable option which unique experience. Feeling the product on your hand, sites while purchasing – can cause biases in one’s buying decision
Point of parity with competitors would satisfy their needs learning how it works & then decide whether to buy it or with regard to the product. That is not there in the case of a Brick
not. This choice is not available when shopping online & Mortar store
• 100+ nights free trial
• Free returns
Individualized Advice Shopping Satisfaction No/Less Waiting time for Delivery
• It takes a lot of time to research a product before online Additionally, shopping with friends, relatives or family is For offline shopping, visit the store right away and get what you
Operated in the DTC model purchase. When offline, you can consult the employees for different from buying alone. That feeling has match! Online need. When online, a lot of contemplation happens if whether
specialized advice before making a hasty purchase purchasing cannot bring that delight or satisfaction! the product is worthy enough & you don’t get the pleasure of
walking home with shopping bags here.

3 4
 4. Marketing Communication Plan To Generate Offline Sales 5. Digital Ad Campaigns To Drive Traffic To Offline Stores
Leveraging both online and offline channels is the right strategy to achieve this goal Examples of Two Different Types of Campaigns

Objective Brand Awareness Offline Conversion

Campaign #1 A Touch of Luxury

Firm and Soft Cooler than Touch and feel Message Content Idea Success Metrics
others Target Audience Channel/Platform
1. “Sleep Sound”: Your bed is a Young people struggling at work, 1. People who completed
About Offline Young, working couple/ Social media ads:
Message
About the Fast delivery luxurious asset waiting for a comfortable bed-
Instagram, Facebook,
the full ad/impressions
bachelors
Product Adapts to Varied Buying Process 2. Too many challenges? Don’t only to not get it with their 2. Average watch
current mattress YouTube, & LinkedIn time/consumer
body shape Thickness let sleep be one
Easy to Compare

Target Like shopping from stores Looking to experiment Have exhausted previous Have back issues, need a Campaign #2 We Got Your Back
Age: 25- 60 Years
/dislike online shopping with new-age products mattress/ want an upgrade comfortable mattress
Customer

Offline Media Channels Online Media Channels Message Content Idea Success Metrics
1. Your back deserves the best.
Channel/Platform 1. Click-through rate on
Target Audience Old people, struggling with back YouTube Ads, Google
Audio visual Print Physical Social media Browsing Brand Partner Your back deserves Purple. pain, trying Purple’s product and the Google ads
Middle Aged/Old search ads: old age, back
Platform 2. The Mattress that your back describing how great it is 2. Percentage completion
Newspaper, magazines, Events, free trial
people with back issues pain, sleep discomfort,
TV, Radio, Podcasts WhatsApp Instagram, Google search ads, Ads in other apps deserves is here: Try It! on the Video Ads
posters, banners sessions Facebook, YouTube YouTube Ads (game/news app) and related keywords (YouTube)
Success CPM, Call traffic, Social media mentions, Conversion rate,
Coupon redemption CTR, CPC Impressions, CTR
Website traffic actual purchase follower growth
Metric

5 6

STUDIO SHODWE

THANK YOU! Purple

Innovation
Bijaya Sethi 2211424
DMS Group B PGP 2022-24 Mansee 2211404
Anuska Roy 2211079 Kumari Saumya 2211101
Siddharth Arora 2211081 Saloni Singh 2211124
Tushar Mandal 2211512
Shweta Pable 2211112
Rushikesh Patil 2211113
Avinash Srivastava
9 2211133
 PURPLE'S JOURNEY AND MARKETING STRATEGY Rise of new wave of DTC mattress companies
Leading digital-native mattress industry disruptor with highly differentiated product

Purple ran Goldilocks video-

digital only, multi-channel
2015
Purple was officially founded.
Gauged demand via
crowdfunding campaign
Used video to highlight
technology and durability.
Split testing with different
video cuts, lengths, intros
and themes
Purple reaches to 1600 Online Shopping Convenience Novel products at Lower cost
Purple goes public
campaign offline stores
01 These companies capitalized on the growing 02 Advancements in technology allowed these
trend of online shopping. Online accessibility companies to produce high-quality mattresses
allows customers to research, compare, and at competitive costs. Lower costs also come
make informed decisions from comfort of their from bypassing traditional selling channels.
2016 2017 2018 homes.
Long Term Testing Experience Direct Customer Relationships
03 Companies allow customers 100 day free-trial 04 Companies can gather real-time customer
period and easy returns if they are not satisfied. feedback, understand preferences, and
Purple's gets into its first Purple ran "Purple
respond quickly to changing market demands
distribution agreement with Boys" video series
Mattress Firm campaign
Second crowdfunding campaign
Differentiation through Marketing
05
for Pillow
These companies focused on building strong
brand identities and implementing creative
marketing strategies. This differentiated them
Digital ads, social media
Quirky,viral social media Leveraging social media from traditional companies and resonated with
promotions, influencers, and the customers.
campaigns to create buzz creative agencies
targeted search engine marketing

Value of Brick and Mortar Stores

Purple's Value Proposition

In-person Experience Expert Guidance Customer Service infrastructure Cost

Novel Technology Lower Price

Purple Revolutionized industry with Purple offers their products at much lower Physical mattress stores provide Mattress retailers employ Customers have the convenience of For opening physical stores, high
superior "World's First no pressure prices than luxury mattress brands customers with the opportunity to knowledgeable sales staff who can visiting the store to seek assistance, costs of rent, labour and other
Mattress" while competitors offered only Adherence to MAP policy to ensure see, touch, and try out the Purple provide personalized guidance and ensuring a smooth resolution to any utilities will have to be incurred by
slight modifications in existing materials consistent pricing mattresses before making a recommendations abouth the Purple problems. Purple Inc.
purchase. Mattresses based on the customer's
preferences

QUIRKY
BRAND
No-wait time Trust & reputation Campaign adherence Brand Dilution
PERSONALITY issue

Omni Channel Convenient and Risk- Shopping at a physical store allows Limited Visibility into customer's
free Buying Experience customers to take their chosen
Established mattress retailers often
have a long-standing presence and
Difficult to stick to a specific Purple
campaign because they could be
behaviour when sold through retail
Purple offers omni channel availability of its
mattress home immediately or partner stores and also the
mattresses through both online and offline Purple offers fast and convenient online a reputation built on trust. placing orders months in advance
arrange for prompt delivery. emphasis on brand is reduced.
stores to cater to different customer buying experience with risk-free trial
segments periods, easy returns and customer support
 Target Segment
Busy working professionals looking for Better
The 'Test-it-out-First-at-Store' Consumers
Sleep Quality
Aware Social Media Users and Tech-Savvy
Consumers
1. Boosting Influencer Marketing
Sponsored ads in "Autonomous Sensory Meridian Response
(ASMR) " community , a sleep and relaxation content widely
consumed on social media can attract awareness and trust from
the creator
Doctors promoting grid technology on social media platforms
can gain trust of customers to come to stores and try
Digital campaigns of centers, attract customers to store to
experience effectiveness and comfort of mattress
Consumers looking for better posture to help
with back pain
The Price Sensitive Repurchasers: looking to
switch to new mattress
2. Backed by Technology
Grid technology mattress, takes up the shape of spine and body
Testify through Egg Test
Conversion of sales through experience
Train salesmen on products and their USP for effective communication
to customers
Product demos and interactive displays to engage and encourage
customers to try and purchase
Implement visual merchandizing strategy to highlight key features to
create memorable in store experience
6Ms of Marketing Communication
Grow instore sales to 30% of total sales by capturing the Top of the Customer Buying Funnel
Mission
(attention of customers & making them aware of Purple's USP.
Pivot from the current customers who don't mind ordering mattresses online to the other 75% of the
Market
customers who prefer to feel and experience the mattress before making the purchase.
The technological superiority of making the Purple "No Pressure" Mattress should be conveyed
Message while retaining the past light-hearted tone of the past digital ads.
Diversifying the communication media with traditional TV commercials and print ads should be a
Media priority. Leveraging other channels like google maps link embedded in digital ads to find purple stores
Running ad campaigns like "Egg Test" and "Come try it for yourself" to increase engagement
Since 30% of the total sales will come from offline channel, allocating total marketing budget in similar
Money
proportion to the targeted sales would be a good strategy.
Measure Reach/ Impressions: Number of people watching the ads and the frequency
ment Return on Ad Spend, number of matresses sold, Bounce rate and growth in sales
Combination of hard and soft material
Conversion of Sales through Experience
In-store experimentation of the egg test by salesmen to justify the
campaigns
Gain trust and encourage customers to try and purchase
3. Backing Sleep and Relaxation 4. Events, Expos and Billboards
Promoting healthy lifestyle includes healthy sleep patterns Promoting brand in physical spaces like malls, expos gives
chance to people to try out mattress
Encourage creating a sleep- friendly environment with purple
mattress Branding in billboards help in brand recognition and brand
recall

Conversion of Sales through Experience Conversion of Sales through Experience

Sleep Internship !!! Trained salesmen in these events and expos to communicate
effectively

Come and sleep in stores and get offers on purchase Rich customer experience

Brand recall and recognition encourages customers to visit stores and

experience

Digital AD Campaign - Imagined by Us Campaign Metrics

" Where Softness Meets Support"

Mission Footfall/store

Market Sales/sq foot

Message Sales/store

New customers acquired/ marketing spend

Media

Money Gross margin return on investment

Reach/ Impressions: Number of people watching the ads and the frequency
Return on Ad Spend, number of matresses sold, Bounce rate and growth in sales