服务营销精要英文pptimCase06_CapitalOne.pdf

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1、IM for Lovelock,Wirtz&Chew Essentials of Services Marketing Teaching Notes for Cases Section 3 S w 8B06A05 Teaching Note CAPITAL ONE:LAUNCHING A MASS MEDIA CAMPAIGN Robert Fisher prepared this teaching note as an aid for inst ructors use of the case in the classroom Capital One:Launching a Mass Medi

2、a Campaign,No.9B06A005.This teaching note should not be used in any way that would prejudice the future use of the case.Ivey Management Services prohibits any form of reproduction,storage or transmittal without its written permission.This material is not covered under authorization from CanCopy or a

3、ny reproduction rights organization.To order copies or request permission to reproduce materials,contact Ivey Publishing,Ivey Management Services,c/o Richard Ivey School of Business,The University of WesternOntario,London,Ontario,Canada,N6A3K7;phone(519)661-3208;fax(519)661-3882;e-mail:*.ca.Copyrigh

4、t 2005,Ivey Management Services Version:(A)2006-10-20 CASE SYNOPSIS At the end of March 2005,Clinton Braganza,senior brand manager,was preparing to present his recommendations to his Canadian senior management team at Capital One in their Toronto office.Braganza had been tasked with determining Capi

5、tal Ones strategy for its first mass media advertising campaign in Canada.He had spent the last few months conducting and analyzing consumer research,and had started to adapt several U.S.and U.K.television ads for use in Canada.Braganza is faced with selecting one or two ads to run out of a portfoli

6、o of ads that had been created in the United Kingdom and the United States(with Canadian“voiceovers”).OBJECTIVES The case is used to illustrate the role of the creative brief in developing advertising that is consistent with the firms strategy.Students are asked to go through the process of preparin

7、g a creative brief as a way of identifying the best one or two ads from a total of eight ads that had been developed in the United Kingdom and the United States.1.What is the role of the creative brief in the selection of an advertising execution?2.How should a firms business situation and strategy

8、affect the choice of advertisement?Page 2 8B06A05 TEACHING STRATEGY The case is designed for a marketing management or advertising course at the senior undergraduate,MBA and executive levels.The case is designed to be used in an 80 minute class.A DVD of the actual ads is provided with the case,Ivey

9、product 7B06A005.ASSIGNMENT It is critical that advertisements are consistent with the firms strategy.A creative brief is a document created by an advertising agency for its client.The objective of the brief is to capture the agencys understanding of the clients business to ensure that the advertisi

10、ng they create is appropriate from a strategic perspective.The account manager or planner who prepares the brief must work closely with the client to develop the document.Complete the following creative brief for Capital One to prepare for our discussion.CREATIVE BRIEF Topic Detailed Examples 1.Prob

11、lem definition what is the problem or situation leading to the creation of a new advertisement or campaign?Market or consumer changes?Competition?Environmental factors?A change in strategy?2.Marketing objectives Is the advertising designed to drive sales,share,profit or something else?3.Target audie

12、nce Who is the target consumer?How do they make decisions?4.Communication objectives How does the communication affect behavior?Is it through brand awareness?Information gathering?Changing brand perceptions?5.Creative strategy What is the key consumer benefit?How can we support the benefit?What shou

13、ld be the ads tone and manner?Page 3 8B06A05 1.Problem Definition In this section,it is useful to consider the major characteristics of the competitive environment facing Capital One in 2005.Capital One is a relatively new entrant into the highly competitive credit card market in Canada.Since their

14、entry into the Canadian market in 1996,they have grown to US$2.4 billion in outstanding balances in 2004.If we assume that their customers have an average outstanding balance of US$2,400(see case Exhibit 4),they have approximately one million customers.Compared to the 53.4 million accounts(23.2 mill

15、ion of which are active),they have less than two per cent of the market.The market is dominated by the six major Canadian banks,which have several key advantages:a)most consumers have established relationships with the banks(and multiple accounts),b)they have a lower cost of capital(up to 75 basis p

16、oints),c)they have an established branch banking network,d)they have strong loyalty programs.Based on case Exhibits 3 and 6,these characteristics are significant barriers to further growth.Although the market is concentrated,there is evidence that it is becoming more competitive as the number of Vis

17、a and MasterCard issuers has increased from 15 to 23 between 1996 and 2004.Overall,Capital One doesnt have a strong brand because it is not well-known within the Canadian market.It has not had a mass media advertising campaign previously.2.Marketing Objectives The marketing objective is clearly to g

18、row(see page 1 of the case).Credit card issuers have high fixed costs and volume is needed to be profitable.It is useful to discuss the implications of the marketing objective on the subsequent steps of the creative brief and,in particular,the execution itself.I try to illustrate this point by askin

19、g students to consider the possible ways that Capital One might grow and how the specific objective might affect who the target market is and the executional characteristics.Page 4 8B06A05 3.Target Market What is the ideal target market for credit cards?The answer is easy because although credit car

20、d issuers make revenue from merchant fees(and therefore driving transaction volume is important),the majority of their revenue comes from revolvers who maintain a large balance each month(particularly those who only pay the minimum balance),but who are also at a low risk of default.It appears that C

21、apital One has tried to focus on revolvers since their entry into the Canadian market in 1996.They entered the market with a very low annual percentage rate(APR),significantly below the major banks(9.9 per cent versus 16 per cent).They also innovated by providing low rates on balance transfers for t

22、hose who switched.Currently,they do not have a loyalty program that is designed to boost transactions.The package of benefits they offer would seem most suited to revolvers who are interested in saving on their credit card balances.Who are the people who are most likely to use their credit card as a

23、 way to finance their purchases?Given that most high income consumers with established credit ratings will have low cost financing substitutes such as lines of credit and loans,Capital Ones product line seems most suited to younger people who are looking for their first card,or perhaps has yet to ha

24、ve an established credit rating themselves.Capital Ones IBS is very useful here because it enables them to target more precisely consumers of all types(virtually creating segments of one in which the product is matched to the needs of each consumer).To illustrate,they are not only able to maximize t

25、he effectiveness of their marketing spend by running a large number of experiments each year(varying credit limits,APR rates,balance transfer rates,etc),but they can also more precisely understand the characteristics of consumers who are likely to default.Growth Options Description Objective Possibl

26、e Messages New customers Have never owned a credit card before and doesnt have a credit history Acquisition Capital One will help you establish credit Existing Customers share of wallet Are already Capital One customers Become primary card to increase frequency of use Highlight incentives for use Cu

27、stomers of other issuers Are customers of other issuers but they have become dissatisfied or disinterested Induce switching Emphasize switching incentives(e.g.balance transfers)or weaknesses of major banks as issuers Page 5 8B06A05 4.Communication Objectives The issue here is to decide what the targ

28、et market should think and do after viewing the advertisement.The case indicates that the goal is to“increase awareness,”and“communicate a positive position in the marketplace.”Awareness is critical,but it is certainly not enough.Capital One cant put awareness“in the bank”(sorry for the pun).If adve

29、rtising is an investment,it can only pay off if it drives behaviors.It is useful to ask students what types of behaviors would be useful to Capital One,and how the ads could be used to drive these behaviors.The primary examples include:After seeing the ad,viewers should go to the telephone and call

30、a 1-800 number to apply or request additional information.A 1-800 number should be added to the last frames in the ad with a voice-over asking viewers to“call now.”After seeing the ad,viewers should retain a more positive perception of Capital One such that when they receive a direct mail piece late

31、r that week or month,they will be intrigued enough to open it and read the offer.After seeing the ad,viewers should visit the Capital One website and apply for a card.It is useful to note that by setting an objective of driving consumer behaviors,the effectiveness of the ads can be measured by telep

32、hone calls,website hits,completed applications,and so forth.Capital Ones advertising must drive behaviors through responses to direct mail,the telephone,and internet because they do not have branches.5.Creative Strategy Currently,Capital One doesnt have a mass media campaign in Canada.However,based

33、on the portfolio of ads that Clinton is selecting from,what is Capital Ones market position?All the ads have a comic element and are designed to be entertaining There is a mix of animation(e.g.Bee)and“slice of life”plus fantasy(e.g.Visigoths and Catapult)in the ads There is also a mix of messages in

34、cluding security/fraud protection,low APR,no hassles,balance transfer features There is an underlying notion that Capital One is a way of fighting against the big banks who want to give you less In terms of the tone and manner,Capital One uses humor and entertainment to get its message across.Capita

35、l One invites consumers to switch credit cards as a way to avoid the dire consequences of dealing with current banks.Overall,the key benefit of Capital One is that it is a less expensive way to finance purchases.Page 6 8B06A05 6.Selecting an Execution I begin this section of the creative brief by as

36、king“what are the most important criteria for evaluating the ads?”The answer is as follows:Branding is the most critical element because even if everything else is outstanding,you will fail if you communicate the wrong message(i.e.you confuse consumers,bring them to Capital One for the wrong reason,

37、or promise them something you cant deliver).Active involvement is arguably the second most important factor.If the audience doesnt pay attention to the message and actively process it,the ad will not ultimately affect behavior.Enjoyment is the least important aspect because it can be a double-edged

38、sword.Too high on entertainment could result in a lost message because viewers are entertained but not informed or persuaded.Yet,if there is too little entertainment value,there wont be active involvement and the branding message wont get through.Nevertheless,it seems likely that an ad cant fail on

39、any of the three criteria or it will fail as a whole.The second question is,“Which ad performs best?”Looking at the research results in case Exhibit 9 and assuming that the sub-prime segment is the focus,Catapult and Troll seem best for the following reasons:They are the strongest on branding,which

40、is the key criterion They are near the top on involving They are at or near the top in recall(i.e.do viewers remember the ads message?)Yet,it is also clear that none of the ads are exceptional with respect to the norms for the category.This result suggests that none of the ads have a breakthrough qu

41、ality that will really drive the business forward.WHAT HAPPENED?Management decided against all of the ads because they arent likely to be exceptional.It is important to note,however,that it is very difficult to develop breakthrough creative.The new campaign“Hands in My Pocket”is highly entertaining,but the jury is out as to whether it will drive the business.It is useful to show students the campaign and get their reactions in terms of whether it is on strategy and likely to drive appropriate behaviors.