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Allegra 2001 Direct Response & Digital Marketing Plan • Second Draft – Presented January 17, 2001

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Page 1: FOR INTERVIEWING DWW11-14Part one

Allegra 2001Direct Response & Digital Marketing Plan

• Second Draft – Presented January 17, 2001

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Meeting Purpose

• Present second draft of 2001 marketing plan• Review financials• Discuss research recommendations

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Agenda• Key Considerations• 2001 Allegra Marketing Plan

– Marketing Objectives & Strategies– Segmentation Strategy– Program Communication Flow– Spring/Fall Drive – Online & Offline Approach & Tactics– Program Financials & ROI– Research Recommendations– Next Steps– Appendix

• Detailed Tactical Overview• Financial Worksheets

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Key Considerations

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Key Considerations – Survey Data • Survey response collection through direct response & VRU

channels– To be mirrored by online Allegra Extras registration– Customer surveys to be consistent on all promotional materials

• Information collected:– Basic demographic profile– Geographic information– Rx or OTC user -- or both– Name of medications used– Symptom severity– Number of days suffering and medicating– Season and specific months of suffering– Types of symptoms suffered– Allergen most triggering symptoms– Type/dose of Allegra brand purchased (through redeemers)– (Online only) How prescription of Allegra obtained

• Doctor appointment• Call-in request to doctor without visit

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Key Considerations – Data Audit• 20% of the Harte-Hanks database names (primarily

users) responded to a usage question:– 120+ days medicate 45.3%– 61-120 days medicate 21.2%– 0-60 days medicate 33.5%

• Usage data mirrors the Prizm data– Categories can be mapped to new questionnaire usage questions– Average days medicate = 90+days or 4 Rx per year

• Usage patterns for 80% of database unknown • Further analysis and modeling required by end of

2001 to leverage and assign value to names for Spring Drive

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Key Considerations – Opt-in

• Customer opt-in is no longer required to continue communication with handraisers or users– Opportunity to leverage legacy names, reduce Acquisition

spending– Retain all MCO, MDUS and Abelson-Taylor rebaters– Enriched data analysis– Enhance opportunity to convert, conquest and grow usage

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Key Considerations – Digital

• Additional goals for 2001 can be established– Ease of registration must be improved and tracked– Encourage repeat visit

• Phase II recently approved by CRC– DDMAC approval of website creative may still be a problem– Leverage approved language and creative to avoid pre-

clearance

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Key Considerations – Ease of Brand Integration

• Opportunity to leverage new brand creative, tagline and approved language in all digital and direct efforts

• Seamless integration of Allegra Extras program into all DTC initiatives

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Allegra ’01 Marketing Plan

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Objectives & Strategies

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2002 Direct Response Objectives

• Lead generation• Brand retention• Motivate increased usage• Control competitive switching• Allocate funding based on customer value• Portfolio promotion

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Direct ResponseObjectives & Strategies

• Lead Generation– Launch Allegra Extras to differentiate the brand and serve as the lead-

generation engine to get sufferers to raise their hands– Leverage multi-media mix to generate cost-efficient leads– Test offers and programs that embrace the lifestyle of the heavy

medicator

• Brand Retention– Drive Allegra Extras program registration on and offline– Leverage database to customize messaging and offers that are relevant

to Allegra Extras members

• Motivate Increased Usage– Increase Allegra usage by 20% across all categories – Convert heavy sufferers/moderate medicators to heavy medicators

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Direct ResponseObjectives & Strategies

• Control Competitive Switching– Leverage benefits of Allegra and Allegra Extras to insulate current

users and encourage competitive users to switch

• Allocate funding based on customer needs– Initially segment database names based on days medicate– Launch EVIP program to Super Heavy & Heavy users

• Portfolio Promotion– All acquisition efforts focus on Allegra– Target aggressive Allegra D offers and messages to all high value

congestion sufferers– Encourage switching from Allegra 60mg to 180mg

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Segmentation Strategy

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Core Treatment and Budget Assumptions

Segment

% Value $48.76

Allowable Spend 3:1 ROI

Allowable CPL* 3:1 ROI Extras Impact**

Retention Allowable 3:1

ROI

$114 $25 $68 $23

$18 $16

$49 $11 $29 $10

$16 $4 $10 $3

Super Heavy User 181+

20% $195 - $293

4-6Rx

25% $0 -$97.52

0-2Rx

25% $146 3Rx

$81

30% $341+ 7Rx

Heavy User 91-180

Moderate User 61-90

Light User 0-60

$49

* Assumes a 22% conversion rate**Assumes a 20% increase due to Extras program

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Core Treatment and Projected Investment

Segment

% Value $48.76

Allowable Spend 3:1

ROI

Hand-raisers/ Users

Projected response

Rates

Average Spend CTS,

Redemp, EVIP Allegra User Competitor

237,707 5,230 867,631 Insulate Conquest

$114 22%

Conversion 52,296

125,520 3,565,605 4,495,996

18.91

4 New sletters 2 EVIP Mailing

4 New sletters 1 EVIP Mailing

158,471 3,486 578,420Grow & Insulate Conquest

22% 83,664Conversion 2,377,065

3,039,149

34,86 19.18

198,089 4,358 366,465 Fulfill Fulfill

$49 22%

Conversion 43,580

52,296 418,761

2.112 New sletters 2 New sletters

198,089 4,358 366,465 Fulfill Fulfill

$16 22%

Conversion 43,580

52,296 418,761

2.112 New sletters 2 New sletters

Light User 0-60

4 New sletters 2 EVIP Mailing

Super Heavy Users 181+

20% $195 - $293

4-6Rx

25% $0 - 97.52

0-2Rx

25% $146 3Rx

4 New sletters 1 EVIP Mailing$81

30% $341+ 7Rx

Heavy User 91-180

Moderate User 61-90

• Heavy and super heavy groups include– Core program $3.65– Possible redemption $24– EVIP program $15

• Light and medium groups include– Core program $1.85– Possible redemption $12

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Segment Value Allegra User Competitor

181+ $341+ NEVERNo response after 2 recontacts (12 mo.)

91-180 $195 - $293 NEVERNo response after 2 recontacts (12 mo.)

61-90 $146 6 months 6 months

0-60 Up to $146 6 months 6 months

Delete Strategy

* Customers will be deleted at their request

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2001 Members 2002 Members/ Legacy Hand-raisers

Allegra Database

Feb Newsletter

March EVIP

April Newsletter

Non-Redeemer

August Newsletter

September EVIP

October Newsletter

Non-Redeemer

Super Heavy Heavy Moderate Lite Unknown

Feb Newsletter

April Newsletter

Welcome Kit

Core Program Communication Flow

DRTV, DRPrint, General Advertising, DM, Promotions, Internet, MCO, Sales

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Spring/Fall DriveOnline & Offline

Approach & Tactics

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Seasonal Drive Communication Strategy

Spring FallPrimary Message: Allegra Extras Program LaunchThe program is launched as a educational and supportive initiative to help sufferers manage their seasonal allergies. All lead-generation efforts will showcase the Extras Newsletter and offer the free all-weather stadium cushion.

Retention communication will focus on the program, the featured pool of Spring Extras offers and consistently include a selection of two-three Extras

Primary Message: Encouraging Extras EnrollmentBegin to aggressively leverage traditional promotional tactics and introduce the “Real Living Sweepstakes” as an overlay on all lead-generation efforts. Sweepstakes entry will not require a proof of purchase. Sufferers can enter to win free season tickets to PGA events, play a round of golf with Steve Elkington, allergy free gardening consultation from BHG, Palm Pilot or free weekend car rental from National.The Welcome Kits and Newsletters will detail the “Real Living Sweepstakes”, showcase the prizes and feature the pool of branded Fall Extras.

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Lead Generation Approach By Tactic

Tactic Spring FallDRPrint Rollout of Allegra Extras program – Ad engages allergy

sufferers with high-energy scenes and hooks them with the juxtaposition headline communicating that Allegra offers something extra. The focus of the ad is the Extras program and the free introductory offer- stadium cushion. The ad positions the program as an educational/supportive effort to help sufferers manage their seasonal allergies. The newsletter is prominently positioned and the launch issue is promoted. Test variations of the ad will be developed to target unsatisfied sufferers, congestion sufferers, heavy sufferers and Clarinex prospects.An A/B split will be tested to determine if the free premium increases enrollmentThe creative leverages the General Advertising concept and builds on the graphic elements of the Fall 2001 test. All ads include a BRC and unique 800 number

The Spring creative execution will be maintained, but refreshed and the Allegra Extras Program will continue to be the focus. To enhance the acquisition effort the “Real Living Sweeps” overlay will be added to encourage enrollment in the Extras program. Entry into the sweepstakes will not require a proof of purchase, strictly survey information. Responders enter win a free season ticket to PGA events, Palm Pilot, “Round of Golf with Steve Elkington” an allergy free gardening consultation from BHGor free weekend car rental.

DRTV National cable DRTV test campaign leveraging the General Advertising spot to create a reedited :60 DRTV version featuring the Allegra Extras program. The focus of the spot is the Extras program, the free introductory offer - stadium cushion and the benefits of membership. The spot positions the program as an educational/support effort to help sufferers manage their seasonal allergies. The approach and communication strategy mirrors the spirit of the General Spot – Allegra helps me get back my vigor for everyday life.

Based on the results of the Spring DRTV Campaign the spot will be reedited to feature the new general advertising creative (if a new spot is created) and the chance to enter the “Real Living Sweepstakes” to encourage enrollment in the program.

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Lead Generation Approach By Tactic

Tactic Spring FallCVS Opportunity to partner with CVS Pharmacies across

the country to leverage their database of Allegra users, Allergy Sufferers and potentially competitive users. An unbranded letter is forwarded to participating CVS pharmacies and distributed to consumers. The program offers the opportunity to integrate with promotional in-store program and establish a strong relationship with a major pharmacy.

Spring test only

Direct Mail Based on the results of the Fall 2001 program continue to target competitive RX users with a customized Spring Welcome Kit. The kit will feature letters with targeted messaging, promoting the stadium cushion as an introductory offer and showcasing the Spring Extras.

Implement an A/B split with a version that does not include a the free premium

Based on the Spring 2002 results continue to target messaging to both competitive Rx and OTC users. Consider testing a broader category of prospects – Allergy Sufferers, who mirror the Allegra demographic profile; Adults 35+, with HHI $40+. Opportunity to test and increase mailing universe. Leverage 2002 Welcome Kit featuring updated Fall Extras. To encourage membership, when customers opt-in they are automatically entered into the “Real Living Sweepstakes”.

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Lead Generation Approach By Tactic

Tactic Spring FallMCO Relaunch the new Patient Support Program featuring the

Allegra Extras Program. Key MCO accounts are given the opportunity to offer the Allegra Extras program to current and potential Allegra customers. Consumers who opt-in to the program are given the opportunity receive any of the Spring Extras.

The program continues to be offered throughout the year and is updated with the Fall featured Extras.

Emails Lists Based on the Fall 2001 results, continue to target messaging to both competitive Rx and OTC users. Aggressive launch of Allegra Extras Program driving click-thrus to the registration page. Prospects are offered an Allegra Extras mouse pad just for signing up for the program.

Based on the Spring 2002 results continue to target messaging to both competitive Rx and OTC users. Feature updated product claims/messaging when appropriate and Fall pool of Extras. Offer prospects opportunity to click and register for the “Real Living Sweepstakes.” Consumers are taken directly to the sweepstakes/Allegra Extras registration

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Lead Generation Approach By Tactic

Tactic Spring FallBanners Based on the positive results of the 2001 Digital Media

campaign, the media mix will continue to include banners. Branded and unbranded banners featuring traffic building messages such as pollen counts, Allergy symptoms, free mouse pads just for registering, allergy triggers, seasonal themes and featured extras will continue to be part of the mix. The Allegra Extras logo will be prominently featured in many of the extras versions to continue to build on the of the program branding. Themed banners will drive visitors to the site and the registration page.Explore unique tactics outside of banners: sponsorships, promotions and win-win partnership opportunities

Banners will be refreshed prior to the Fall drive with seasonal updated Extras and the opportunity to enter “Real Living Sweepstakes” .

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Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

DRTV

Direct Mail

Digital

DRPrint

2002 Lead Generation Media Tactical Calendar

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Retention Approach By Tactic

Tactic Spring FallWelcome Kits Launch of Allegra Extras program – includes the free

stadium cushion and focuses on Allegra Extras, detailing the features of program, Allegra Extras offers and product information. The look of the Kit will be updated to integrate with 2002 general advertising and acquisition efforts. It includes an updated product brochure, letter, redemption certificate and BRE.

The Kit letter and Extras brochure will be updated to reflect the new Extras and detail the “Real Living Sweepstakes”.

Newsletters Core component of Allegra Extras Program with standard features;new Extras with redemption certificate, partner updates and relevant seasonal information. A versioned letter will be included in the Newsletter Kit addressing current program activity. Each Newsletter will communicate a theme and objective:February – Focus on Extras Program, screener questions to determine the severity of symptoms and tips for Spring cleaning. The primary objective of the newsletter is to arm the consumer with information to help their dialogue with their physician and an incentive to ask for Allegra.April – Feature testimonials, tips for traveling with allergies and advocate promotion. The primary objective is to promote advocates and positive user feedback.

The same format, components and design of the Newsletter kit will be maintained for the Fall drive. Newsletters will drop in August and October. The focus of the the August newsletter will be the “Real Living Sweeps”. Members can enter the sweepstakes by detailing how Allegra helped them get back to “Real Living”. The October Newsletter will focus on preparing for Winter and Allegra D.

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Retention Approach By Tactic

Tactic Spring FallNewsletters via Email

Online Newsletter will mirror the Offline version with standard features;new Extras with redemption certificate, partner updates and relevant seasonal information. A versioned email will be sent to Online members linking them back to Allegra.com and the Extras Newsletter. Each Newsletter will communicate a theme and objective:February – Focus on Extras, screener questions to determine the severity of symptoms and tips for Spring cleaning. The primary objective of the newsletter is to arm the consumer with information to help their dialogue with their physician and an incentive to ask for Allegra.April – Feature testimonials, tips for traveling with allergies and advocate promotion. The primary objective is to promote advocates and positive user feedback.

The same format, components and design of the Newsletter program will be maintained for the Fall drive. Emails linking back to Allegra.com will be forwarded in April and October. The focus of the the April Newsletter will be the “Real Living Sweeps”. Members can enter the sweepstakes Online by detailing how Allegra helped them get back to “Real Living”. The October Newsletter will focus on preparing for Winter and Allegra D.

EVIP All EVIPs, Allegra Extras high value members will receive an additional communication. The EVIP kit will include a surprise and delight – a branded outdoor thermometer, thanking them for participating in the program and showcasing the latest Extras offers

In November EVIPs will receive one more incremental communication and a second free Allegra Extra – travel mug. That kit will also focus on Allegra D, leveraging the fact the number one symptom of Heavy Medicators is nasal congestion.

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Retention Approach By Tactic

Tactic Spring FallNon-Responder At the end of the Spring Drive, high value non-responders

are mailed to determine if they should remain in the program or be deleted. Approach is a satisfaction survey which solicits input for program design and provide an opt-out option. Results evaluated after each effort to determine potential revenue foregone or cost incurred.

At the end of the Fall Drive, high value non-responders are mailed to determine if they should remain in the program or be deleted. Approach is a satisfaction survey which solicits input for program design and provide an opt-out option. Results evaluated after each effort to determine potential revenue foregone or cost incurred.

Redemption Kit Kit carrying the member’s selected Extras. Kit components include; letter, Satisfaction Survey, Extras and OE.

Same kit carrying the member’s selected Extras. Kit components include; letter, Extras and OE.

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Retention Approach By Tactic

Tactic Spring FallOn-going Emails Extras registration will ask traditional offline survey

questions, but will also offer members opportunity to indicate what kinds of online emails they are most interested in receiving – updates about new site content, updates about particular lifestyle activities in Beyond Seasonal Allergies, pollen alerts, etc. Extras registration within itself will permit outbounding of various communications, through response to “Yes, I would like to receive news, tips and other valuable information from Aventis Pharmaceuticals.” However, specifically asking members about their interest in receiving different kinds of site updates, allows ability to determine potential vehicles/themes for newsletters and other messaging.

In July, will evaluate responses to registration questions and page view trends, and use information to drive fall outbound emails – both to develop most relevant content for newsletters, but also to provide input that may assist in future acquisition messaging.

Web site Updates 2002 updates will include updates to Steve/Erik’s schedules & any additional Phase III content needing refreshing

In July, will evaluate site traffic and determine if additional content practical for Beyond Seasonal Allergies (such as personal finance) and measure traffic on Ask the Expert (National Jewish) tools

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Retention Approach By Tactic

Tactic Spring FallPartnerships Partners will supply content/tools for Allegra.com, and Allegra

will also advertise/sponsor content on partner sites. Current partners include: National Jewish, who will supply the allergy screener/ability to email a doctor directly with allergy questions (part of Phase II, end of this year). Weather.com will supply national parks information for hiking (to support Erik W content) and can supply golf course locator if not supplied by PGA. Weather.com may also supply travel content.Better Homes & Gardens will supply gardening content & general media buy, jump pages and sponsorship of women’s health section will be leveraged to showcase Real Living sweepstakes. BHG may also supply travel contentYahoo will provide respiratory exclusivity on their Allergy Center, which will contain Allegra branding. Links to Allegra.com from the Allergy Center and outbound emails to Yahoo consumers will also drive traffic to the Allegra site. The PGA, as a promotional partner, will also provide online resources by lending credibility to the golfing section (usage of official logo) and potentially use of their golf course locator. Healthology may provide webcasts on up to 1,500 different sites – by providing grants to Healthology, their physicians will develop content, which will be produced and placed throughout wide site network. All webcasts will include link to Allegra.com, with messaging appropriate to drive traffic and registrants.

As the sweepstakes enfolds, all partnerships can be leveraged for prizes.As site traffic is evaluated, can determine if additional existing promotional partners can and should be leveraged online.

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Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Recontact to Legacy

Newsletter

Welcome Kit

EVIP Program

Redemption Kits

Satisfaction Survey (Non-responder Recontact Mailing)

2002 Allegra Extras Tactical Calendar

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Messaging Segmentation Plan – Lead GenerationSegment Goal Messaging Tactics

Competitive RX sufferers Switch sufferers, who are not getting relief from their current treatment to Allegra

•Ask about satisfaction with current seasonal allergy treatment•Inform about Allegra benefits as nonsedating, 24 hour relief

Heavy Sufferers Switch sufferers who have need for proven seasonal allergy treatment

•Promote 180 mg as convenient, once-daily relief•Inform about nonsedation

Protect against potential Clarinex switching by switching instead to Allegra

•Inform about convenience of 180 mg for 24 hour relief•Emphasize nonsedatation

Chronic Congestion Switch sufferers who may benefit from the decongestant in Allegra-D

•Inform about Allegra-D powerful congestion relief•Include reference to Allegra family of products to lend credibility

Clarinex Prospects

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Messaging Segmentation Plan - Retention

Convert Competitive Users and increase share

Switch 60mg users to 180mg

Increase promotion and sales of Allegra D

Goal

• Promote 180mg• Focus message on Allegra non-sedating benefits

Claritin/Zyrtec User • Indicate through survey responses that they have recently used a competitor• Unknown users

• Version Newsletter messaging and offer aggressive 180 mg rebates

60s – Currently Using 60 mg• 60mg rebaters• Customers who entered the database prior to 2001 (1998-2000)

• Feature Allegra D offers and rebates• Customize messaging in Welcome Kits and Newsletters• Focus of September EVIP mailing

Ds – Allegra D Prospects and Users•Rebated as an Allegra D user•Have indicated through survey responses that they suffer from congestion

Messaging TacticsSegment

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Test/Targeted EffortsTest/Targeted Effort

Quantity Description

Conquest competitive high value users

50,000 Send postcard with high-value Extra offer as redemption for switching

Heavy sufferer/moderate medicator

20,000 Opportunity to increase usage by narrowing the gap between days suffer and days medicateHigh value offer is sent upon request at no chargeTest designed to stimulate interest and involvement in the brand

Grow moderate medicator to heavy

10,000 Migrate a test group of moderates into high value program to determine if this grows usage from 3RX’s to 4 or more

Control Group 10,000 Users and non-users of the brand who are not members of the Extras program Measure the incremental lift of the Extras program

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Test/Targeted EffortsTest/Targeted Effort

Quantity Description

EVIP Control Group 10,000 Migrate a test group of high value users to the moderate stream/basic program to determine the lift of the EVIP program

Clarinex Defense Plan TBD Leverage database of self-identified Claritin users, purchase universe of Claritin users from proven acquisition lists, CVS and Health Resources. Launch a targeted DRPrint effort and offer an aggressive trial program.

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2002 DR Financials

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Financial Assumptions

• Current net revenue per 1 script $ 48.76• Current average fill frequency 2.1• Current net revenue per script $102.40• Conversion rate 22%

• Average fill frequency with Extras 2.52• Net revenue per script with Extras $123.00• Conversion rate 22%

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Media Budget Assumptions

Acquisition Medium Registrants % Cost %

Digital 87,900 43% 3,050,000$ 37%

DRTV 13,571 7% 500,000$ 6%

DRPrint 66,667 33% 3,000,000$ 37%

Direct Mail 35,000 17% 1,600,000$ 20%

Total Costs 203,138 100% 8,150,000$ 100%

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Media Estimates and Allowables

Media Type Budget Est CPL Clicks # Leads # Users

X2 Multiplier Total users

Digital 3,050,000$ 13$ 293,358 87,900 17,580 35,160 52,913Print 3,000,000$ 50$ 0 66,667 14,667 29,334 44,206Dmail 1,600,000$ 45$ 0 35,000 7,700 15,400 23,100DRTV 500,000$ 35$ 0 13,571 2,986 5,972 9,125Total 8,150,000$ 203,138 42,933 85,866 128,799

Budget ROI 2 to 1

Conversion 22%Base allowable CPL $13.77

Allowable CPL w/2x multiplier $41.31

$8,150,000

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ROI: Media and Acquisition

Revenue $13,137,498

Cost• Working Media $ 8,150,000

Media ROI 1.61 to 1

128,799 users @$102.40Includes 2x

multiplier

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2002 Extras Program ROI• Acquisition revenue includes all

DWW sourced users @2.52 Rx• Retention revenue incorporates

all other users @0.42 incremental Rx

• Acquisition cost includes working media

• Retention cost includes – Welcome kit and Extras

expense for DWW leads– Extras expense only for other

source leads– All other DM marketing variable

costs

Revenue 2002Acqusition $26,274,996Retention 3,962,655$

Total 30,237,651$

Costs 2002Acquisition 8,150,000$ Retention 9,364,737$

Total 17,514,737$

2002 Program ROI 1.7 to 1

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Impact of Extras Program on ’02 Revenue

• Extras Program estimated to grow revenue by 20%• DWW ’02 leads and legacy conversion revenue includes

2.52Rx• Incorporates all other users at 0.42 incremental Rx

# leads # Users Value @2.1Rx 2X multiplier20% growth= $21 per user Total value

DWW '02 leads 203,138 42,933 $4,396,339 $8,792,678 $879,268 $14,068,285Conversion of legacy 0 91,800 $9,400,320 $1,880,064 $11,280,384

Marketing Drive 60,000 60,000 $6,144,000 $1,228,800 $1,228,800MCO and Abelson 10,000 10,000 $1,024,000 $204,800 $204,800McCann 9,120 2,462 $252,109 $50,422 $50,422Legacy -- Extend usage 425,000 85,000 $8,704,000 $1,740,800 $1,740,8002001 leads 133,432 36,027 $3,689,165 $737,833 $737,833

840,690 328,222 $33,609,933 $6,721,987 $29,311,324

*$102.40 = 2.1 Rx

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Relative Spending

• Acquisition/retention percentage does not include DRTV roll-out • User type reported at per-user level• New user/current user will be reported at the database level when

this field is populated• Allegra user/non-user will be reported at the database level when

this field is populated• Spring/fall media does not include DRTV roll-out and to be

allocated based on client request

Acquisition 47% Retention 53%Heavy/super heavy user 87% Moderate/lite user 13%New user TBD Current user TBDAllegra user TBD Allegra non-user TBDSpring media Target 60% Fall media Target 40%

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Allegra DR Budget Summary 20022002 Direct Response & Digital Budget Estimated CostWorking Media $8,150,000Fulfillment/Retention $8,664,737Hibbert - Estimate based on current program $600,000OOP (stock photography, art, mock-up) $100,000Be Now/Database Maintenance TBDProjects $500,000DRTV Fall Rollout $1,500,000CVS Program $40,000Sweepstakes Program $100,000Clarinex Defense Plan $400,000Conversion Research OOP $75,000Tracking Study $125,000Partnerships/Web Awareness Campaign $300,000Total Estimated Allegra DR Budget $20,554,737Total Budget Allowed $20,000,000Over Budget ($554,737)

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Research And Data Analysis Recommendations

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Customer Knowledge Tool Use of Tool

What criteria do we use to gauge a customer's value? DWW Market Profile

Explores behavioral and demographic differences as captured in the database

Gender? Self-reported usage, symptoms? Contact history?

Overlay data adds to picture -- determine if there is another way to classify or identify people

Will a user prove to be more valuable over time? Where are Allegra sales coming from? Switchers? NRx? Refills? What is refill frequency and seasonality

NDC/IMS -- transactional data at the pharmacy level

Information about overall usage patterns to delineate current customer value/potential customer value. Provides Rx transaction data, market share, sales volume, source of Rx, cash paid status, who wrote the prescription. Depending on reports purchased, may contain compliance and persistency data

When does switching occur? When are users most vulnerable and apt to switch? What are their usage patterns over time? Is there a difference between EXTRAS members and non-members? Between redeemer and non-redeemer behavior User Longitudinal Tracking

New, ongoing primary research. Tracks the consumer experience, usage behavior and satisfaction with the product through their entire lifecycle. Includes EXTRAS members as well as users in the general environment

Describe, better understand customer behavior in the general environment

Allegra Information Needs

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EXTRAS Program Design Needs Tool Use of Tool

Who is most likely to consider Allegra and/or the EXTRAS program?

Clear Perspectives Segmentation Study (Prospects)

Defines and describes sufferers/medicators in the general market. Understand their needs and attitudes. Use this to assist with relevant vocabulary/messaging

How can this program be improved? Would I repeat this tactic? DWW Program Evaluation Assesses the results and value of the programWhen and how long does it take to convert a prospect to user? What drives that conversion? Doctor? Incentive?

DWW User Conversion Study

Assesses the process from hand-raising in the EXTRAS program to Allegra trial

When does switching occur? When are users most vulnerable and apt to switch? What are their usage patterns over time? What are the most relevant messages? Which EXTRAS offer keeps the user more engaged in the program?

User Longitudinal Tracking (can be integrated into Habits and Practices Study)

Tracks the consumer experience, usage behavior and satisfaction with the product through the usage lifecycle -- from the point of product trial going forward

How do Allegra users compare to the URA target market -- are they more desirable and a target for competitive conquesting? Which segments are responsive to which executions? How does EXTRAS participation vary by segment? How does profitability? Which segment is most vulnerable? DWW Segmentation Model

Breaks database into clusters for meaningful EXTRAS treatment. Benefits are allocated, database routines are programmed as result.

Allegra Information Needs

How do we use knowledge of the consumer to drive program design?

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EXTRAS Evaluation Tool Use of ToolIs the acquisition media performing? DWW Media Metrics Provides CPL, CPM, Response ratesHow can this program be improved? Would I repeat this tactic? DWW Program Evaluation Assesses the results and value of the programROI: How does the EXTRAS program increase sales? Profitability? ROI Calculation Program takes credit for incremental sales only

Cost equation includes CPL, program and redemption costs.Revenue equation includes conversion rate (conversion study), refill rates (sales data), dollars per script

Allegra Information Needs

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Recommended Research• Continuous and longitudinal tracking

– Follows handraisers through process of physician contact through to conversion

– Understand the process of conversion– Follows users through life with brand

• Understand usage patterns• Understand satisfaction• Understand responses to loyalty efforts

• Program concept evaluation– Assesses whether the program and exceptional elements can

meet their objectives– Provides the necessary consumer input to refine efforts before

placing in-market

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Next Steps

• Determine pool of potential extras from partners• Agree to budget allocations• Determine Research Investment