tribal waters embracing consumer tribes
TRANSCRIPT
Table of Contents1. Preface p3
2. Eastern Water Company (EWC): In a Tight Squeeze p4
3. Client Engagement Process p6
a. Audit p7
i Understanding EWC p8
ii. Bottled Water Industry Snapshot p10
iii. Understanding EWC’s Consumers p13
1. Who are EWC’s Consumers? p14
2. Why Bottled Water? p15
3. On What Occasions Was Wellspring Consumed? p16
4. How Can Wellspring Be Improved? p17
b. Tribe Exploration p18
i. Recap of the Tribe Approach p19
ii. EWC’s Potential Tribes p22
iii. Fast Start Moms Tribe p24
c. Tribal Strategy & Planning and Execution p28
i. Developing a Tribal Strategy p29
ii. Brand Name Repositioning p30
iii. Product Packaging and Bottle Design p31
iv. Distribution p33
v. Marketing Communications p34
vi. Tribal Strategy, Goals & Metrics p40
vii. Rollout Plan p45
2
3Preface
In our previous white paper entitled “Tribal Marketing”, we discussed the concept of consumer tribes and tribal marketing, answering:
• What is tribal marketing?
• Why should I care? and
• Is it right for me?
In this eBook, we have teamed up with Torque – a Chicago based brand marketing agency, to present a case looking at a Vermont-based bottled water company desiring to strengthen their relationship with their consumers, and ultimately, increase their annual sales. This case study will show you how applying a Tribal Strategy can achieve a company’s business goals. Our work has been inspired in part by Consumer Tribes, by Bernard Cova, Robert Kozinets and Avi Shankar. With Seth Godin's publication of Tribes, we feel we are entering an exciting period of growing acceptance of tribal marketing concepts.
Torque Ltd.,
is a brand marketing agency, providing mid market businesses with brand strategies and full service marketing programs.
Accelteon’s
mission is to enable your organization to strategically unleash the potential of consumer tribes.
4EWC: In a Tight Squeeze
Accelteon was approached by Eastern Water Company (EWC) to help increase sales of their bottled water brand, Wellspring. While meeting with Maria Whitaker, the CEO, we began to understand why they were struggling to get shelf space in many convenience and grocery stores.
“Our product, Wellspring, is being squeezed from both ends of the market;” she said, “the multi-nationals can buy significant media spots and buy their way onto premium shelf spaces such as end caps. At the other end, the store and discount brands often use their cost advantage to maintain lower prices than ours.”
5
Maria who visited our website and blog thought that the answer to gaining share and increasing sales volume might come from a better connection to their consumer base, and that the Tribal Approach may work well with the Wellspring brand.
She went on to say, “In the past we have tried to get on store shelves through slotting fees, but without much lasting success.”
We showed Maria our overall engagement process that would enable EWC to understand the company’s high value consumers more fully, generate appropriate strategies to achieve the company’s goals, and to put the strategy into action (Figure 1, page 6 ). As a first step, we suggested that we conduct an audit to understand the company, brand, industry and EWC’s existing consumer base.
EWC: In a Tight Squeeze
Wellspring faces strong
competition from both
ends of the market:
large multinationals and
discount brands. EWC
wants to increase market
share and sales of their
Wellspring brand.
6
Figure 1:
• UnderstandingEWC:‣ problem/opportunity
‣ Goals&objectives
• UnderstandingEWC’scontext:industry,competitors,consumers
• IndepthprimaryandsecondaryresearchprovidesthebasisfordefiningandunderstandingEWC’spotentialconsumertribes
• Further research is conducted to understand tribal and
consumption behavior
• Developinternal(company-facing)strategiesandexternal(consumer-facing)strategiestosuccessfullybuildpositiveconsumerrelationships
• Develop measures for
success, tied to overall
business goals
• Developmonitoringplan
•Executemarketingprogramsandinternalalignmentstrategies
•Measurementreporting&analysistomonitorsuccessandmakestrategicrevisions
AUDIT EXECUTIONTRIBE EXPLORATION
STRATEGY & PLANNING
Client Engagement Process
8Understanding EWC
EWC was established in 1995 by the Richards family who owned an 80-acre farm near Rutland, Vermont. The land was originally settled in the 1890s by Sam Richards and was family run for generations. The success of the farm in part was due to a natural spring that could provide irrigation for the crops during dry seasons.
In 1993, Jacob Richards noticed the emergence of the bottled spring water market in the US. Two years later he set up a small bottling facility on the property, marking the founding of EWC. The company began selling 500ml individual containers and 12 and 24 packs to local convenience and grocery stores under the brand Wellspring, the name of which was meant to convey that the source of water was from a natural spring.
COMPANY • INDUSTRY • CONSUMERS
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9Understanding EWC, cont.
As the company grew between 1997 and 2001, the complexity of the business was too much for the Richards family to handle, and they decided to hire a professional management team. After a lengthy search they hired Maria Whitaker as the CEO. Maria built her career in the beverages industry; starting as an analyst for Coca-Cola, she eventually became a VP of Sales and Marketing for a major bottle water company.
Maria successfully grew the company’s revenue from $7.5 million in 2002 to $23.0 million in 2006, primarily focusing distribution and sales in the Northeast U.S. In 2007, however, revenues increased to only $24.5 million and in 2008 revenues were practically steady at $25.1 million.
EWC spent about $1.7 million in marketing in 2008. About $700 thousand went into trade marketing including slotting fees, in store promotions and discounts. Only about $1.0 million was spent on consumer marketing, mainly focused on radio and print in large urban markets such as New York, Boston and Philadelphia.
COMPANY • INDUSTRY • CONSUMERS
AUDIT EXECUTIONTRIBE EXPLORATION
STRATEGY & PLANNING
Revenue grew from $7.5
million to $23.0 million from
2002 - 2006. Revenues were
practically steady in 2008.
10
The $17 billion U.S. bottled water industry has been a booming industry in recent years, growing at a compound annual growth rate of 8.5% over the past five years. The very strong health and wellness trend along with strong marketing and branding from large multinational corporations have contributed to the industry’s rise.
Bottled Water Industry Snapshot
COMPANY • INDUSTRY • CONSUMERS
AUDIT EXECUTIONTRIBE EXPLORATION
STRATEGY & PLANNING
U.S. bottled water industry...
$17 billion...growing at
8.5% CAGR
11
The industry has faced and continues to face significant challenges, however. Controversies with respect to the quality and price of bottled water versus tap water, as well as an increasingly environmentally-conscious society are among the most significant challenges. These factors might explain why the industry, though growing year to year, has experienced a declining growth rate since 2006.
From a competitive standpoint, several categories of bottled water companies exist, including large multinationals, regional brands, and small niche private label companies. Multinational corporations are the prominent players, with Nestle, PepsiCo., and Coca-Cola dominating 57.4% of market share. The remainder of the market is fragmented, with several hundred small and mid-sized operators.
Bottled water Market Share
Bottled Water Industry Snapshot
COMPANY • INDUSTRY • CONSUMERS
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Other33%
Nestle S.A.30%
PepsiCo, Inc.14%
The Coca-Cola Company12%
Suntory Limited10%
12
With retailers such as convenience and grocery stores
being the primary buyers who ultimately distribute
product to end consumers, bottled water companies
must compete for shelf space. Traditionally, bottled
water has been differentiated by its composition (e.g.
presence of particular trace minerals) and provenance
(derivation from a particular source). However, since
the large multinational players entered into the market
in the mid 1990’s, branding has become the most
significant differentiator.
Bottled Water Industry Snapshot
COMPANY • INDUSTRY • CONSUMERS
AUDIT EXECUTIONTRIBE EXPLORATION
STRATEGY & PLANNING
“Branding has become
the most significant
differentiator”
13
While secondary research provided us with a broad consumer profile of bottled water drinkers in the U.S., we wanted to dig deeper to ensure our consumer research would provide insights most relevant to EWC. Therefore, over a period of a few weeks we set out to conduct surveys and focus groups with EWC’s existing consumer base. The purpose of the research was to understand existing consumers in greater depth.
• Who were they?
• What motivated them to purchase Wellspring?
• In what instances and occasions did they purchase Wellspring?
• How could the product be improved?
Ultimately, the research would reveal insights on potential consumer tribes to target, and by what means.
Understanding EWC’s Consumers
COMPANY • INDUSTRY • CONSUMERS
AUDIT EXECUTIONTRIBE EXPLORATION
STRATEGY & PLANNING
14
Who are EWC’s Consumers?
• Skew to Women (63%)
• Skew to Non-Whites (56%)
• Tend to be adults who are on the young side (18-44 yrs) (67%)
• 52% of their consumers had kids between 8-18, of which 45% have their kids enrolled in sports or other activities
5663 67
Non-WhitesWomen
Young Adult
COMPANY • INDUSTRY • CONSUMERS
AUDIT EXECUTIONTRIBE EXPLORATION
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15Why Bottled Water?
Why bottled water?
6
24
35
45
Tap isn’t as Healthy Tastes Better than tapHealthier Alternative Mobile & Convenient
51 57 68
Source (spring water)Availability
Trust Brand
38 year old male consumer
“I trust that it is better for
you than some of the other
brands. After all, it is a
family business and not
some big company.”
COMPANY • INDUSTRY • CONSUMERS
Why Wellspring?
AUDIT EXECUTIONTRIBE EXPLORATION
STRATEGY & PLANNING
35 year old mother
“I refuse to give my kids pop
or juices with sugar. Bottled
water is a better choice.”
She further explained “I was
upset to learn that many of
the big companies simply
purify municipal water. I like
Wellspring because I know it
comes from a local spring.”
16On What Occasions Was Wellspring Consumed?
• 8%: Work
• 9%: At home
• 20%: Fitness and Exercise
• 22%: Family/Community Outings
• 24%: Children’s Sporting Events
89
2022
24
WorkAt home
Fitness and Exercise
Family/Community Outings
Children’s Sporting Events
COMPANY • INDUSTRY • CONSUMERS
AUDIT EXECUTIONTRIBE EXPLORATION
STRATEGY & PLANNING
40 year old mother
“I coach soccer in the
summer. I buy cases of
Wellspring for my team
from the supermarket
before the game.”
37 year old mother
“I like to get together with
other families in my kids’
school and extracurricular
communities. We bring
Wellspring to community
events for a healthier
beverage option.”
17How Can Wellspring be Improved?
• 35% believed that the environment was a key concern
for them in their decision not to purchase the product.
• 79% of people believed that the bottle water industry
in general was either very or somewhat negatively
impacting the environment.
• Wellspring consumers would prefer more convenient
locations to purchase the product, other than
convenience and grocery stores.
• Convenience in packaging for easy transport of the
product would help, specifically for carrying 12
and 24 multipacks.
COMPANY • INDUSTRY • CONSUMERS
AUDIT EXECUTIONTRIBE EXPLORATION
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19Recap of the Tribal Approach
EWC traditionally segmented their consumers through
geographic and demographic segmentation. The tribal
approach provides a very different perspective of EWC’s
consumer base, focusing primarily on a common passion
that bonds a consumer group – a tribe.
Segment Tribe
Female18 - 49
Male18 - 49
Caring parents ofChildren & young teens
Environmentally mindful and active community members
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• Consumers are viewed as independent decision makers
• Marketing focuses on company/consumer communications
• Marketers focus on developing company/consumer relationships: loyalty marketing, 1-to-1 marketing
• Companies focus on leveraging consumer/consumer relationships: Word of mouth (WOM) marketing, social/viral marketing
• The tribal approach views the role of the company as supporting the activities, passions and interaction between consumers
• Consumer tribes value goods and services for their ability to connect them to others
• Marketing communications focuses on joining conversations
AUDIT EXECUTIONTRIBE EXPLORATION
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Recap of the Tribal Approach
The Tribal Relationship Traditional Marketing
Relationship / WOM Marketing
Tribal Marketing
21
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Why Consumer tribes?
Recap of the Tribal Approach
In return, the organization gains the opportunity to receive several benefits from the consumer tribe.
Word of mouth by
tribe membersDevelop intimate
relationshipswith consumersFree WOM
by passionateconsumers wholove to spread
the word
Reducedmarketing
spend
BrandAdvocacy
Solicitconsumerfeedback
Gain Valuableinsight
Productimprovements& innovation
ConsumerLoyalty
Increasedrevenues
ROI
Business drivers Indirect benefits Direct benefits
22EWC’s Potential Tribes
Using the consumer research we gathered as the crux of our analytical and creative thinking, we were able to identify two potential tribes for EWC.
Potential TribeCaring Parents
Enthusiastic Environmentalists
Potential Tribes
CONSUMERRESEARCH
ANALYSIS &CREATIVE THINKING
Common passionHealthy lifestyle for their
family and children
Feeling of responsibility for the environmental impact of
bottled water consumption
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STRATEGY & PLANNING
23
EWC’s Potential Tribes
These tribes were not necessarily mutually exclusive. Nonetheless, their common passions could potentially be leveraged and we wanted to know more. Could EWC support these consumer tribes to achieve profitable growth? And through what means could EWC be able to do so?
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CARINGPARENTS
ENTHUSIASTICENVIRONMENTALISTS
24Fast Start Moms
Through more in-depth primary research with potential tribe “members” (as identified during initial surveys and focus groups), we were able to further identify and define a central tribe on which to focus: Fast Start Moms.
The strength of marketing to
a tribal consumer comes from the discipline of being
highly focused and selective,
rather than being many
things to many people.
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25Getting to Know the Fast Start Moms Tribe
• Mother or primary parenting figure and manager of household.
• Hyper-involved parent, rooted in their belief that their children should have all of the advantages available to successfully launch them into their adult lives.
• Go on to become “Helicopter Parents” as their children emerge into young adulthood, hovering over their children and micromanaging every aspect of their lives.
‣ Tend to be 2nd or 3rd generation Caucasian, or Hispanic.
‣ Tend to have 2+ children.
A Brief Profile of FSMs
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26Getting to Know the Fast Start Moms Tribe
Tribal behavior• FSMs take full advantage of school, church,
community and sports teams offered in the community (e.g. get involved as assistant coaches in their child’s sporting activities, is on PTA, on the board of the homeowners’ association).
• They are both fully involved in supporting the organizations as well as demanding a lot from townships and districts behind them.
• Highly communicative tribe, staying in contact in person or virtually.
• Technology enabled:
‣ Cell phones, e-mail, instant messaging, Facebook accounts, Google and other tools are daily necessities.
‣ Shoot digital photos and miniDV movies of events and gatherings, and post them to the Internet for a variety of different sharing and collaboration purposes.
Consumption behavior• Do most if not all the shopping for their
household.
• Detailed and conscientious about their product selections, determined to pick the best (although not necessarily at any cost—couponing and discount intelligence is often a tribal topic).
• Prefer shopping locations where they can purchase items for multiple needs (e.g. club stores, power centres).
• Some, but not all FSMs are very environmentally conscious decision makers.
• Need to believe the makers of a product have their interests in mind.
• FSMs can become strong promoters —or detractors— of products for which they’ve had notable experiences using.
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Churchevents
Tribal Behavior
Fast Start Moms Tribal Map: Virtual and real spaces where the FSM tribe meets and interacts
27
AUDIT EXECUTIONTRIBE EXPLORATION
STRATEGY & PLANNING
CellPhone
InstantmessagingTwitter
School Events Sporting
activitiesCommunity
events
Facebook messaging Sharing of
digital photos
Real Space
Asynchronous
Virtual Space
Synchronous
AUDIT EXECUTIONTRIBE EXPLORTATION
STRATEGY & PLANNING
Tribal Strateg y, Planning and Execution
Brand Promise • Brand Name • Packaging & Design • Distribution • Communication
29Brand Name Reposistioning
Before After
WellspringPREMIUM DRINKING WATER
AUDIT EXECUTIONTRIBE EXPLORTATION
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Brand Promise • Brand Name • Packaging & Design Distribution • Communication
We recommended EWC to slightly modify the product name from Wellspring to WellSpring.
The modification signifies EWC’s renewed consumer focus on the FSM tribe, where the name emphasizes not only the product’s derivation from a natural spring water source, but also the themes of wellness (“Well”) and performance (“Spring”)
30
As a small niche brand, we understood that it was not realistic for EWC to compete with large multinationals on a large national scale; rather, our focus was to grow EWC’s market share and sales in the category and geographic areas in which it competes.
Based on the analytics we conducted on the research gathered on the FSM consumer tribe, we developed a 3-part brand promise that would appeal to the tribe:
• Trust: FSMs can be extremely loyal to a brand they know
and trust. The brand must continue to uphold its reputation.
• Convenience: FSMs have limited time to spend shopping
and they constantly look for ways to simplify their lives.
Thus, Wellspring must find innovative and feasible ways to
make their products more accessible and user friendly.
• Health & fitness: Children’s health, fitness, and general
well-being was a primary concern for FSMs. Thus,
Wellspring should stay true to its natural source and stay
away from additives.
Developing a Tribal Strategy for EWC
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30
31Product Packaging and Bottle Design
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STRATEGY & PLANNING
Brand Promise • Brand Name • Packaging & Design Distribution • Communication
To address the brand promise of convenience, we recommended to supplement the 12 and 24 pack with handles at both ends for easy transport.
Additionally, we suggested a redesign of the bottle mold to include a bump texture to make it easy for small hands to grip. This would require a new die, but cost per bottle is low given the long production runs, over time.
32Packaging Design
AUDIT EXECUTIONTRIBE EXPLORTATION
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Brand Promise • Brand Name • Packaging & Design Distribution • Communication
With passionate environmentalists comprising a sizable share of the FSM tribe, we recommended changing the packaging, from plastic wrap to cardstock. This also gave the packages a premium appearance comparable to upscale water brands, as well as better merchandising opportunity.
Develop branded
refillable containers
Develop 48 oz. coolers for
athletic field-size refills
Introduce “WellSpring Friends
of the Environment” package to
select 24 packs (includes
seeds, natural fertilizer, and a
‘plant a tree’ packet guide’)
Create a reusable no slip sleeve
that can slide onto bottles. This
would be packaged with 24
multipacks as a promotion
33
Distribution
AUDIT EXECUTIONTRIBE EXPLORTATION
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Brand Promise • Brand Name • Packaging & Design Distribution • Communication
EWC was limiting distribution of the product to grocery and convenience store distribution. To address the consumption behavior of FSM’s we recommended distribution of product in locations where FSM’s normally shop to raise the probability of increased sales.
• Grocery stores
• Convenience stores
• Club stores • Power centers• Community
events • Grocery stores• Convenience
stores
Before After
34Marketing Communications
EWC focused their marketing budget primarily on trade marketing and little on consumer marketing. We recommended EWC to shift spend on supporting the tribe & facilitating communication amongst tribe members.
The shift in focus provides several advantages:
• Concentrates resources on a passionate and engaged group of consumers –a tribe –who willingly propagate the brand message, leading to more efficient marketing spend.
• Consumers associate mass media marketing with large corporate brand marketing. The move towards targeted community-driven media creates a close-knit feel and fosters trust in the brand.
• More focused and intimate communication with consumers generates opportunities to gather consumer insights
• Supporting the tribe and relevant causes fosters trust and reinforces EWCs brands in areas and occasions that matter most to the tribe.
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Brand Promise • Brand Name • Packaging & Design Distribution • Communication
Trade Marketing:
• Slotting Fees
• In store promotions
and discounts
Consumer Marketing:
• Radio
• Focus on supporting the
tribe & facilitating
communication amongst
tribe members
• Use targeted media that
leverages the tribe’s
current modes of
communication
Before
After
35Leveraging Web 2.0 tools: A Strategic Approach
AUDIT EXECUTIONTRIBE EXPLORTATION
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Brand Promise • Brand Name • Packaging & Design Distribution • Communication
We do not believe in the ‘build it and they will come’ theory. Rather, Web 2.0 tools and social media enable companies to facilitate tribal interaction, and we develop this process strategically.
The idea is to introduce the brand to the tribe and tribe members to each other step by step, starting by leveraging current modes of communication.
Progress checks are built into the process to ensure the strategy is working, and to improve where it is not.
36
AUDIT EXECUTIONTRIBE EXPLORTATION
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Brand Promise • Brand Name • Packaging & Design Distribution • Communication
Leveraging the Tribe’s Current Modes of Communication
Stratagy: Leverageing Web
2.0 tools
Strategy: Be active
in supporting events relevant
to FSMʼs
Churchevents
CellPhone
InstantmessagingTwitter
School Events Sporting
activitiesCommunity
events
Facebook messaging Sharing of
digital photos
Real Space
Asynchronous
Virtual Space
Synchronous
Fast Start Moms Tribal Map: Virtual and real spaces where the FSM tribe meets and interacts
37Communications Strategy
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Brand Promise • Brand Name • Packaging & Design Distribution • Communication
• Leverage social media sites:
become active in posting comments
and beginning dialogue with existing
Facebook, Twitter and other online
communities.
• Redesign WellSpring website and
begin to post information that
supports the tribe as determined
through initial consumer research
(e.g. providing tips on how to get
children hydrated for better sports
performance)..
• Bring awareness to online initiatives:
‣ Search engine maximization
‣ Promote website on product labels
‣ Promote at community events
• Progress check to
determine if online
community traffic &
responsiveness is
sufficient to proceed with
subsequent phases.
• Build further dialogue
by building a forum for
members to discuss
topics of interest to
them on the WellSpring
website.
• Develop mechanism for
collecting & analyzing
consumer insights.
• Utilize consumer
insights to generate
ideas for product
improvements, product
innovations, and
campaigns that
support the tribe.
38Communications Strategy
AUDIT EXECUTIONTRIBE EXPLORTATION
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Brand Promise • Brand Name • Packaging & Design Distribution • Communication
Leveraging social media sites where the FSM tribe interacts:
WellSpring on Facebook
Building a forum for tribal interaction:
the WellSpring website
39Real Space Communications Strategy
AUDIT EXECUTIONTRIBE EXPLORTATION
STRATEGY & PLANNING
Brand Promise • Brand Name • Packaging & Design Distribution • Communication
Similar to the Web 2.0 strategy, the idea of a real space communications strategy is to introduce the brand to the tribe and tribe members to each other step by step. A first step would be to get to know the tribe by participating in relevant community events, providing a face for the brand.
The real space communications strategy integrates closely with the Web 2.0 strategy, where consumer insights are utilized to discover and develop more ways to support the tribe in real space. For instance,
consumer insights might reveal that it would be important to:
• Sponsor local sports leagues and community events
• Sponsor world children relief charities aligned with the company’s product, such as charity:water
Charity:water
www.charitywater.org
• Non-profit organization
bringing clean and safe
drinking water to people in
developing nations
• Gives 100% of donated
money directly to project
costs, providing financial
support to develop
sustainable clean water
solutions
• Projects involve drilling wells
to provide people with water
in areas of greatest need
In turn, the success of campaigns in real space can be leveraged to propagate positive word of mouth online.
Utilize consumer insights
retrieved online to discover and develop
more ways to support
the tribe in real space
Attend and
participate in relevant community events
Leverage success of campaigns
in real space to propagate positive word of mouth online
(share success of community
events to online community, etc)
Obtain further feedback to
discover and develop more ways to support the
tribe in real space
40Monitoring Progress and Measuring Success
Our approach to measurement The tribal strategy is always supported by a business case that indicates precisely how the tribal strategy contributes to the organization’s overall business goals. The organization’s business goals - in EWC’s case, “to increase sales” and “increase market share”– are translated into specific, quantifiable goals. Subsequently, a monitoring plan is created and a monitoring dashboard is built to enable progress monitoring.
Traditional financial measures, such as sales and ROI figures, are important but alone can be misleading. Instead, we rely on multiple sets of measures – stemming from various perspectives – to provide an integrative picture of the firm’s performance as it relates to achieving their overall business goals. A Tribal Strategy Metrics Summary is used to measure overall success and pinpoint potential problem areas (Figure 2, page 41 ).
Develop business case: build quantifiable goals
& metrics
Understand business goals
Create monitoring plan & build
monitoring dashboard
Use dashboard to monitor &
re-calibrate strategy
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Brand Promise • Brand Name • Packaging & Design Distribution • Communication
41
Figure 2:
Measurement Perspectives and the Tribal Strategy Metrics Summary
Measurement Perspective What is measured Example of goals and metrics
Financial Perspective Measures financial results of actions taken in
the past
Goal: Increase sales by 8% this year
Metric: Actual Sales at beginning of year verses end of year
Measurement tool: Compare sales figure as per company Financial
statements
Consumer Perspective Measures the ability to meet, sustain and
predict consumer requirements
Goal: Increase brand awareness amongst FSMs by 20% this year
Metric: Actual brand awareness
Measurement tool: brand awareness survey
Internal Perspective Measures the ability to meet strategic
requirements efficiently through the right choice
of business processes
Goal: Create new marketing campaign monitoring process by August 31st
Metric: Actual completion date
Measurement tool: n/a
Other measurement perspectives are incorporated, based on the client’s business objectivesOther measurement perspectives are incorporated, based on the client’s business objectivesOther measurement perspectives are incorporated, based on the client’s business objectives
WeightingPerspective
scoreWeighted
scoreTarget weighted
scoreDifference:
Target vs. Actual
Financial Perspective 30% 83% 24.9% 24.0% +0.9%
Consumer Perspective 40% 74% 29.6% 32.0% -2.4%
Internal Perspective 30% 81% 24.3% 24.0% +0.3%
Total 78.8% 80.0%
*Metricsaresamplenumbers*Metricsaresamplenumbers*Metricsaresamplenumbers*Metricsaresamplenumbers*Metricsaresamplenumbers*Metricsaresamplenumbers
OverallprogressismeasuredPotentialproblemareascanbeidentified,andinvestigatedin
furtherdetail
42Example: Consumer Measures
Consumers proceed through several stages in their interaction with a brand:
The intent of consumer measures is to monitor progress throughout these stages. The underlying premise behind this model is that the tribal strategy supports consumer tribes, ultimately translating to the overall business objectives of ‘increased market share’ and ‘increased sales.’
Metrics are carefully crafted to be able to monitor progress at each stage. Thus, areas of strength and weakness can be determined throughout the monitoring process (Figure 3, page 43).
Consideration &
brand preference
Brand awareness Purchase Loyalty
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43
Figure 3:
Sample Metrics-Consumer PerspectiveSTAGE Example consumer
Perspective Goals
Weights Measures Measurement Tool Target
(/100%)
Actual Differential (Target vs. actual)
weightedScore
Awareness Increase brand awareness
amongst FSM’s by 20% this
year10%
Actual brand awareness at
beginning versus end of year
Measure brand awareness prior to
strategy execution using surveys
and periodically thereafterx% x% x% x%
Preference Be the number one choice
preference by FSM’S 25%
WellSpring rating versus competitor
brands
Utilize surveys to rate brand
preference x% x% x% x%
Loyalty Maximizing consumer
satisfaction in terms of the
company’s product quality 20%
Actual consumer satisfaction in
terms of the company’s product
quality
Utilize surveys to quantify consumer
satisfaction x% x% x% x%
Loyalty
Maximizing consumer
satisfaction in terms of the
company’s tribe support
efforts
20%
Actual consumer satisfaction in
terms of the company’s tribe
support efforts
Utilize surveys to quantify consumer
satisfaction x% x% x% x%
Loyalty
Increase positive word of
mouth regarding the
company and its products25%
Combination of word of mouth
measures (positive keywords,
customers surveys, social media
activity
Track the number of “positive
keywords” indicting positive states of
mind in posts and commentsx% x% x% x%
Consumer perspective scoreConsumer perspective scoreConsumer perspective scoreConsumer perspective scoreConsumer perspective score x% x% x% x%
Tribal Strategy Metrics Summary Tribal Strategy Metrics Summary Tribal Strategy Metrics Summary Tribal Strategy Metrics Summary Tribal Strategy Metrics Summary Tribal Strategy Metrics Summary Weighting Perspective
scoreWeighted
scoreTarget weighted
scoreDifference:
Target vs. Actual
Financial 30% 83% 24.9% 24.0% +0.9%
Consumer 40% 74% 29.6% 32.0% -2.4%
Internal 30% 81% 24.3% 24.0% +0.3%
Total 78.8% 80.0%
Specific metrics can be monitored for potential
areas of improvement
Consumer Perspective Score is rolled up into the
high level Tribal Strategy Metrics Summary
44Tribal Strategy Metrics Summary
17%
33%
50%
67%
83%
100%
Summary of performance
TribalStrategyMetricsSummaryTribalStrategyMetricsSummaryTribalStrategyMetricsSummaryTribalStrategyMetricsSummaryTribalStrategyMetricsSummary
PossibleScore TargetScore ActualScore Difference:Targetvs.Actual
FinancialPerspective 30% 24.00% 24.90% 0.90%ConsumerPerspective 40% 32.00% 29.60% -2.40%InternalPerspective 30% 24.00% 24.30% 0.30%Total 100% 80.00% 78.80% -1.20%
Project at a Glance Internal Metrics
Metrics Summary Analytics
Financial Metrics Reporting
Consumer Metrics
-3.00%
-2.25%
-1.50%
-0.75%
0%
0.75%
1.50%
Differential: Target versus Actual Performance
PossibleScoreTargetScoreActualScore
Metrics are rolled up into a Dashboard for review of progress and analytics.
Financial Perspective Consumer Perspective Internal Perspective Total TotalInternal PerspectiveConsumer PerspectiveFinancial Perspective
45Rollout Plan
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12
Packaging & Bottle Design
Bottle Design
12 & 24 pack handles
“WellSpring Friends of the Environment” package
Reusable no slip sleeve
Branded refillable containers
48 oz. coolers
Distribution
Distribution negotiations with club stores and power centers
Point of sale development
Communication
Web 2.0 Communication strategy
Initiate content and outreach on social media sites
Website redesign
Search engine optimization strategy
Develop platform for discussion and interaction on WellSpring Website
Develop consumer insight collection mechanism
Real space communication strategy
Commence participation in relevant community events
Sponsorship program
46
Accelteon Partners [email protected] T 647 727 4070www.accelteon.comwww.accelteon.com/blogToronto, ON
Torque [email protected] 312 421 7858 www.torquelaunch.comwww.torquetribemarketing.comChicago, IL
Tribal Waters eBook is a fictitious case study, intended to model tribe marketing methodologies. No names, products, companies or individuals are meant to represent any real-world counterparts.
46Please contact us for more on Tribal Marketing, or to discuss your Tribe Strategy.