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Brand Positioning & Advertising Strategy

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  1. Brand Positioning & Advertising Strategy James Frey SVP, Branding & Advertising President, PacifiCare of California

  2. Over the past year we have surveyed: 400 consumers in CA (65% non-senior and 35% senior), 400 consumers in other PHS markets, 150 consumers outside our current markets, 400 more consumers nationwide via the internet, 67 providers, 101 benefit managers, 124 brokers and consultants, and conducted 39 focus groups

  3. Consumer-Driven Why Focus on Consumers? 3rd Party-Driven 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Total

  4. Total Awareness – Non Members 100% 97% California 1999 90% Other PHS States 84% 80% Non-PHS States 70% 60% 50% 40% 30% 20% 10% 0%

  5. Brand Image 25% 20% 15% 10% 5% 0% Insurance HMO Quality Good Service Good Company Misc Negative Senior-Related West Coast Care/Doctors

  6. What is most important in a health insurance provider? Most Important n=800 consumers 45.0% 2nd Most Important 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Cares About Me Stands By Promises Good Value High Quality Low Cost Resolves Problems Simple to Use Trustworthy Innovative

  7. Bottom Line for Consumers: 1. Concern 2. Quality and Trustworthiness 3. Problem-Solving And more than anything else, don’t just say it… Prove it to me.

  8. Brand Positioning PacifiCare believes Caring is Good. Doing Something is Better.

  9. The Essence of PacifiCare

  10. I understand my role in protecting and delivering on the promise. n = 2,213 100% Agree Strongly Agree 90% 80% Disagree 70% Strongly Disagree 60% 50% 40% 30% 20% 10% 0% Agree Disagree

  11. The brand makes me feel proud to work for this company. n = 2,213 100% Agree Strongly Agree 90% 80% Disagree 70% Strongly Disagree 60% 50% 40% 30% 20% 10% 0% Agree Disagree

  12. There’s something else consumers told us…

  13. Media Tactics Television • Best medium to make an immediate, emotional connection with consumers • TV – 75% to 90% attentiveness levels • Print and Radio – 30% to 80% attentiveness levels • Media Mix • Television and Print • Media Strategy • Schedule TV in condensed weeks to maximize impact • Own nights in Prime (e.g., Friday’s on NBC) • Regional Consumer Print will focus on women

  14. Secure Horizons DRTV Spot “Special Bin”

  15. Secure Horizons’ Focus Groups’ Reactions “Boy, they knocked it dead. That’s a good little ad.” “It cuts through the confusion from all the clutter on healthcare.” “A company that stands behind their word.” “Go with them (Secure Horizons). They are top of the line. They offer more.” “I need to call the 800# to find out more.”

  16. Sacramento San Francisco Los Angeles Phoenix San Diego Tucson Secure Horizons DRTV Schedule May 6 - June 28 Good Morning America – ABC Today Show Weekend – NBC FOX CBS NBC News KCAL 9 Bonanza – Channel 51 in AZ

  17. Actual Goal 62% of campaign Dollars Spent 65% of campaign Calls per Week 525 Lead Ratio 70% Close Ratio 30% Secure DRTV Results (first 20 days) 743 85% 46% 12% increase in ad spend with a 40% increase in call volume versus 2001

  18. PacifiCare Television Spot “PacifiCare Anthem”

  19. PacifiCare’s Focus Groups’ Reactions “The ad definitely stands out and grabs you.” “You’re like these people. They are your family, your friends, etc. They are real.” “They got across to me that from a young baby to an adult, they’ll take care of me. It’ll be a lasting thing.” “They are willing to back up what they say. It’s tangible care. They will do what they say.” “It says, ‘We’re not kidding; we’re really going to do something’.”

  20. Los Angeles San Diego PacifiCare Push Television Schedule June 3 - June 28 San Diego Program Highlights Los Angeles Program Highlights Must See TV (Thurs.) – NBC West Wing – NBC CSI – CBS Everybody Loves Raymond – CBS 5-second billboard – ABC Local News 5-second billboard – NBC’s Today Show Oprah – ABC Regis & Kelly – ABC The View - ABC Disney Movies - ABC The Practice - ABC Judging Amy - CBS Family Law – CBS Ed – NBC Closed Caption Sponsorship – ABC 5-second billboard – CBS Local News Oprah – ABC Regis & Kelly – ABC Martha Stewart - CBS

  21. Seattle Portland Denver Tulsa Oklahoma City Las Vegas Los Angeles Phoenix San Diego Tucson PacifiCare Summer/Fall Television Schedule Aug 12 – Sept 6 Oct 7 – Nov 22

  22. Bottom Line for Campaign: 1. Improve Awareness in CA to over 90% for both brands 2. Improve Awareness in non-CA markets by 30% 3. Improve perception of “Cares About Me” by 25% 4. Improve perception of “Has Programs that Help” by 25% 5. Decrease cost per lead (Secure) by 20% 6. Increase direct mail response rate (Secure) by 75% 7. Drive 2003 net membership growth