Integrated Brand ResponseJenny Craig Case StudyiMedia Brand Summit Presentation

Fusion Process

Process, not channel driven Merging of 2 diametrically opposed disciplines – brand and

direct response Accountable media Test and learn strategy

Jenny Craig – A Pioneer in Blending Brand and Direct

Response

Jenny Craig

Jenny Craig is a diet center with over 400 corporate and franchise locations in the U.S.

Customized weight loss options are available

Diet Center competition is fierce, with competitive budgets increasing, while Jenny Craig’s remains flat, resulting in a decline in share of voice

Jenny Craig felt the effect of Atkins

Campaign Overview

Kirstie Allie campaign launched – January 2005 Desire to make Jenny Craig more contemporary, while

simultaneously driving incremental lead volume Campaign employs a blended strategy of fixed branding and

traditional direct response Must drive brand preference, image enhancement AND

efficient phone volume

Kirstie Alley Campaign

Creative Examples

Objectives

Increase revenue vs. year-ago Increase centre leads, sales, return-to-actives

Optimize cost/call for balance of volume and efficiency Reduce overall cost per sale Continue to grow Jenny Direct and Jenny.com registrations

Improve brand perceptions - get people to consider the brand in a whole new light – this is a whole new Jenny Craig

Challenge

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

• What’s the optimal mix of Spot TV, Spot DR, Cable TV and Cable DR and Online?

• Which Cable networks and Spot TV stations drive the most efficient volume?

• Increase ROI

• Reduce the average cost per lead

• Increase total lead volume

• Increase revenue by 10%

• Increase new member deposits

MMA

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

Strategy: Finding the Mix to Drive Sales

MMA ROI analysis Revealed several tactical changes to the media mix

investment strategy that could be employed to improve performance metrics

Media mix must be adjusted to optimize volume and efficiency, given flat budget and shrinking share of voice

All strategic media tactics need to focus around increasing lead volume, at an efficient cost per new lead

Solution: MMA’s Optimization

Acted on MMA optimization recommendation Reduced Spot TV spend in top markets

Using Core Direct, evaluated lead metrics, even on fixed $ Reduced Spot DR spend in top markets

Invested Spot DR $ only on historically good performers Reinvested inefficient spot $ onto National Cable DRTV

Tested, evaluated and optimized existing and new networks on a weekly basis

Strategically selected and invested on cable networks based on fixed or DR strengths and CPL efficiencies

Recommended reduced spend on radio

MMA Provided Overall Direction, but…

Half of my advertising is not working – which half? Optimize my offline like my online

Desire to drill down to the individual cable network Core Direct Solution

Direct Response TV Tracking Overview

Vanity Number and URL Tracking: Unmatched Superiority

Advantages of vanity numbers and URL’s Increased drag Less expensive during production Consumer friendly

Disadvantages of vanity numbers and URL’s Difficult to track in a “tie” situation where two or more

stations/networks run spots simultaneously Most tracking systems significantly “miss the mark” in

sophistication Computers don’t use existing database, which contains

historical information to determine the media that delivered the call spikes, during a tie

Impossible to accurately track newspaper, network radio

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

In tie situations, Carat’s tracking system delves back into the database for average “spikes” created when a spot runs in a clean environment Applies historical insight to clarify ties

If no prior data exists, Carat’s system adopts an “exponential falloff” approach Assigns calls to spots airing within proximity to each other

The closer the call to the spot, the greater the likelihood the call will be allocated to that spot

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

One Slide with Results by Cable Network

Network Performance Index (based on Spend : Response)

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FY’05 Search Strategy / Performance

FY’05 Search Engine MarketingStrategy / Performance

What we did in FY’05

Campaign Expansion Strategic Dayparting

Google campaigns Daypart bidding (Yahoo Search Marketing)

Utilize Emerging Technologies Contextual Search Local Search

Leverage Niche Areas Engines Keywords / Themes

Cross Channel Integration

Strategic Dayparting

Google Campaign Setup Performance Based Analysis of Inventory Tiered Exposure Control

Daypart Bidding Scaled Bidding Strategy based on Daily Conversion Analysis

Exposure

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Utilize Emerging Technologies

Contextual Search A Media/Search Hybrid, with CPC pricing

Far more exposure than just search Only pay when a user clicks

Ads appear next to relevant articles & content on web sites such as About.com

Contextual Advertising Example

Leveraging Niche Areas: Engines & Phrases

Incremental traffic & lead Growth Enhance Interactive

Failed to meet performance requirements Ask Jeeves

Success / Supplement

Keyword portfolio expansion eTools – menu planner, weight tracker, bmi calculator Life Events – post pregnancy, reunion, marriage Healthy Eating/Recipes – low fat, low calorie, diet recipes Centres (FY’06)– weight loss center, diet center, weight

support center

Cross Channel Integration

Support Celebrity Spokesperson Capture overflow from other channels

What were the results from the strategy?

• Optimization & Expansion efforts help to grow traffic in Fiscal ’05.

• Cost to attain traffic increasing

•Substantial lead increases resulted in Fiscal’05, at a favorable cost per lead.

Results

National: QTD cost per lead down 35% QTD leads up 22% Sales up 44%

Top Markets: Despite lower local spend levels, Super Tier Markets leads up

25% and cost/lead down 33% Sales up 44%

Key Learning:

Media Mix modeling provides critical insight that drives additional media optimization

Blended strategy provides the greatest success

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