TOTAL BRANDING FOR VIAG INTERKOM AGTHREE CASE HISTORIES: - Orange- National Lottery (UK)- British Army Recruitment

Frankfurt, April 29th, 1998

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1. Orange - Also ran to bright Success.

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It would be a brave man who would bet on the Hong Kong company seeing to the end of the decade.Investors Chronicle, June 1994

It is one of the most dramatic transformations in modern British corporate history. One moment Orange appeared to be an eccentrically marketed also-ran. The next, it was revealed as a big-time winner racing towards a flotation value of about 2 billion.Sunday Times, 3 May 1995

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1.. The Context and Advertising Task. Orange entered the market in April 94, late, with an exxentric name and badly-regarded parent (Hutchison) Cellnet/Vodafone had already been present for 10 years with full national coverage, low-user tariffs (consumer/analogue) and GSM (digital) for business Mercury One-2-One launched 6 months previously with different strategy (free-call, regionalised approach to coverage build) Orange had some product advantages (per-second billing, inclusive minutes) but equally additional disadvantages to being late-in and unknown (high entry costs, only 50 % coverage)

However, this crowded market context presented Orange with an opportunity

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2. The Opportunity. The mistake the category had made by concentrating on price was that it had became commoditised and devoid of brand values Cellnet & Vodafones duopoly had created confusion, distrust, complicated tariffs, deals and price claims

Orange could be the first to develop a fully rounded brand identity on the highgrand (... Which could then deliver price claims from a position of strength)

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3. The Advertising Solution - Being First, not Last.The VisionThere will come a time when all people will have their own personal number that goes with them wherever they are so that there are no barriers to communication. A wirefree future in which you call people, not places, and where everyone will benefit from the advances of technology. Psychologically, this meant that Orange created a new category away from the two existing types of telephony (mobile phones/fixed wire) Advertising prosposition The future is wireless and ist Orange Advertising task: Bring the new category and brand to life

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3. The Advertising Solution - Media. Medias task was to imbue brand with as much confidence as possible Strategy was a multi-media approach:Posters - to herald each new campaign themeTV- to communicate care brand benefitsPress- detailed product information in newspapers Five phases of actitiy:LaunchNumbersCapacitySavingsCoverage

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4. The Results - Diagnostic.Awareness Greater spontaneous awareness than Cellnet or Vodafone after 2 years Higher advertising awareness than BTBrand Image Huge build of sets the standards for the future, leads the way in new technolgy and is dynamic in response to advertising advertising helped secure a potent brand image to give Orange a competitive advantageValue-For-Money Out-performed Cellnet, Vodafone and One-2-OneNetword Benefits Clearly communicated e.g. Per-second billing 34 % pre, 63 % post

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4. The Results - Sales.Purchase Intention Purchase intention significantly higher after each burst and ahead of competitors In reality, by March 96, Orange outsold all digital competitorsEconometric Model Econometric model attributed 61,000 connections to short-term advertising effects Value of these estimated at 128 million - 4x payback of advertising investmentLonger Term Effects Projections based on first 2 years performance led to 2.45 billion flotation The 61,000 connections were 14 % --------> estimate long-term contribution of advertising 203 million

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4. Results - Summary. The campaign worked by making Orange pre-eminent in:imageawarenessnetwork benefitsVFMOranges advertising has made ist mark. It has served Hutchison well by helping establish a distinctive brand personality.Sholto Douglas-Hone, BT, Marketing Week 6 Oct 95

The image and advertising of Orange is very, very powerful and it is part of what helped build the brand. Its really aspirational product and service.Charles Dustone, Managing Director, Carphone Warehouse, Money Programme, 10 Dec 95

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5. What are the Key Learnings for VIAG INTERKOM? Being last is not a problem if its turned round to being first (new category) Creating a clear and consistent brand identity was key to the success Create a position of strength before price messages (VFM vs. Cheap) Be bold with your Vision! Multi-media approach worked to build awareness, brand values, network benefits simultaneously Campaign phased to talk about current benefits

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2. UK National Lottery - From Standing Start to UKs Biggest Brand.

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I disagree with it in principle and the poorest people will pay the most. Its aimed at taking money off poor people...its scandalous to make money out of what is a humas weakness.Labour MP, MORI August 94

The Lottery has so transformed our lives that it will almost certainly be the one thing John Majors Government will be remembered for.The Times 1996

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1. The Context and Advertising Task. The task was to launch UKs biggest consumer brand, in a short space of time Strategy must ensure the maximum number of adults were motivated to play and know how and where to do it Attitudes were somewhat ambivalent (consumers and opinion leaders) - only 56 % MPs had generally favourable attitudes to lottery Thus advertising not just to create awareness, but also legitimise, build brand values of worthy, honest, a National Institution as well as fun and exciting Key to the launch was to generate critical mass of sales (lower sales mean lower jackpot, less repeat purchase...) and then to maintain this behaviour.

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2. The Advertising Solution - Clear Positioning based on Universal Truth.

Versus other competitors eg. Bingo, Horse racing, Football pools, National Lottery positioned as new sector the only chance of winning large amounts of money regularly in a fun accessible way Advertising proposition based on universal truth of the chance of winning. Its got to be someone and it might as well be me. Elements of consistencyGore Idea:It could be youVisual Elements:Hard of Good Fortune Crossed fingers device

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2. The Advertising Solution - Media. Launch campaign phased: PRE-LAUNCH ---> ANTICIPATION ---> EDUCATION ---> COUNTDOWN ---> POST-DRTV Media had to deliver highest possible sales in week one and then keep it there - deliver a message that no adult could avoid Wholly integrated approach. The Lottery had to be on the radio in the morning, at point of sale when they picked up a newspaper, in the newspapers, on posters on the way to work, in kiosks in the shopping preci???, on doorstep when they come home and on TV in evening Elements other than TV, radio, press, outdoor were door drop leaflets, point of sale, PR, Events, Broadcast programming, retailer materials In each case there was consistent application of the creative idea and design to reinforce the care property through every channel

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3. Results - Hitting the High. Sales hit 54 m for the first draw and were sustained with good repeat purchase levels Trial was 76 % all adults by 8 months after launch. Players come from all ages and social classes - a universal brand Positive movements in image dimensions eg. The National Lottery is a really good thing for this country. Results were more than just a short-term sales like - the advertising is hugely memorable, maintaining and fuelling consumers close relationship with the brand UK Lottery is now the biggest in the world

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4. What are the Key Learnings for VIAG INTERKOM? To create universal appeal amongst broad target audience, base advertising on a universal truth (chance of winning) Consistency of advertising idea (it could be you) and design elements throughout all communication (Hard of Good Fortune, crossed fingers symbol) Truly integrated communication strategy - a message no adult could avoid, delivered via all possible at all times of day Phasing of campaign ---> establish overall idea before product detail

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3. British Army Recruitment - Be the Best 1994 - 96

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An air of optimism prevails over soldier recruiting at present - even though the challenge of meeting targets is formidable. The scene is set for recruitment to make and impact over the next three years, capitalising on an imaginative advertising and marketing strategy in conjuction with an enhanced Army image.Brigadier John Milne Director of Army Recruitment 1995/6 report

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1. The Context and the Advertising Task. In 1994 the British Army was heading towards a manpower crisis with 14 % decline in enquiries year on year from potential new recruits This decline due to a number of internal and external factors:role of Army post-cold war uncertain ---> restructuringmorale low, many leavingredundancies made headlinesless 16 - 24s (plus less physically fit/more drug usage)erosion of interest amongst young people for tradition/authority Advertising needed to address Armys reputation and relevance as an employer and generate more interest amongst recruits of the right sort

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1. The Advertising Task. Specifically, to increase enquiries by 65 % (generate 105,000 enquiries) Ensure these enquries are from the right calibre of individual (not to reduce 7 : 1enquiry to recruit ratio)

Strategy: Enhanced brand presence and re-appraisal of Army as a vital organisation.

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2. The Advertising Solution - Synergy. Re-establish Army as a desirable brand for young people be it TA, soldier or officer (previously separate) Influence gatekeepers - parents, teachers, carrers advisors Use synergy of whole budget ( 4.5 m) to present difference faces of Army to young people Advertising solution based on Universal Truth everyone wants to be the best they can be ie, The Army can bring out the best in everyone

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2. The Advertising Solution - continued. Creative synergy via advertising idea CHALLENGE- This is what we do in the Army ---> could you do it too? ENDLINE- Be the Best SYNERGY- All elements of campaign adopted same tone and style (but with different challenges) Media TV- To create impact and awarenss RADIO- Good to target age group PRESS- Small space display and classifiedAll media presented a challenge to the listener/viewer/reader to take part in plus a direct response number

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3. The Results. 34 % increase in enquiries 95/6 vs. 94/35 Enlistments increased with improved ratio enquiries: enlistments (ie. Better quality enquirers) Interest in Army as a career rose significantly among young people 16 - 24 and gatekeepers

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4. What are the Key Learnings for VIAG INTERKOM? Using same creative idea (challenge) and style for different target audiences (officer/soldier/TA), varying however type of challenge used (mental vs. Physical) Multi-media direct response campaignTV ---> high awarenesssmall space ---> efficiency Interactive, involving advertising (viewer/listener takes part) Campaign idea and line based on a strong human and product truth (everyone wants to be the best they can/The British Army is the best)

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Overall Learnings for VIAG INTERKOM. Take the highground - a wireless future, being the best you can, the chance of winning - simple, big thoughts based on human truths Establishing brand values must precede or be simultaneous to product communication Consistency of advertising idea/style/theme/visuals despite differing target audiences Multi-media integrated campaigns can act synergistically for efficient use of budget (N.B. creative consistently, match medium to message)

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