Women's Collection from Marketing to Counter-Marketing
Re: PM Smoker Database Historical Review 1Q94 Update
Abstract
Forwards the first quarter update of the PM Smoker Database historical review. Considers distribution highly confidential, to be conducted on request only. Requests earlier copies be returned so that all but two may be destroyed. Describes mission of PM-USA Direct Marketing and Database Development Department.
Fields
- Type
- Letter
- Report
- Presentation Materials
- Questionnaire
- Company
- Philip Morris
- Gender
- Gender mentioned, differentiation possible
- Author
- Gillis, Lisa
- Schwartz, Linda
- Recipient
- Vanderputten, Jimmy
- Copied
- Tolchinsky, Karen
- Bittner, Bill
- Conant, Margo
- Eibon, Jeanne
- Farrand, Suzanne
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- Schwartz, Linda
- Named Person
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- Anderson, Max
- Barnes, Theresa
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- Chroscielewski, M.
- Conant, Margo
- Deaton, Bill
- Dec, Kenneth F.
- Duffy, Michael
- Farrey, Ron
- Gunn, Michael
- Horton, Donna
- Klein, Marc
- Kropac, Christian
- Kulas, Jim
- Lemons, D.
- Leoffler, M.
- Less, L.
- Maxin, Mike
- Mcnamara, R.
- Meyers, Gayle
- Musil, Dick
- Myers, Les
- Parker, Guy
- Pingel, Kenneth
- Price, Ron
- Schrager, R.
- Schwartz, Linda
- Sirkin, Clive
- Smith, D.
- Starace, Dana
- Stuermer, Mike
- Suske, Randy
- Symon, Jeff
- Toby, Julie
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Document Images
a
LEO BURNETT ll.S.A.
35 West Wacker Drive, Chicago, I Ilinois 60601,Te1: (312) 220-5959, Fax: (312) 220-3299
May 3, 1994
Mr. Jimmy Vander Putten
Philip Morris USA
120 Park Avenue
New York, NY 10017
Re: PM Smoker Database Historical Review
1Q94 Update
Dear Jimmy:
This forwards the 1Q94 update of the PM Smoker Database Historical Review. All changes
requested at our meeting on Monday April 18 have been made. Moreover, distribution of the book
is now limited to the attached list. Distribution beyond this list will be upon request only.
Per our discussion, we will provide you with a recommended approach for disseminating the key
information to Brand. In addition, this document will now be updated annually for distribution by
end of first quarter.
In an effort to ensure the highest levels of confidentiality surrounding this document, please have
all members of your staff return the draft of the 1 Q 1994 update as well as the June 1993 edition
to
me at Leo Burnett. Once each outstanding book has been accounted for, all but two will be
destroyed.
As always, do not hesitate to contact me should you have any questions.
Sincerely,
Leo Burnett USA
Lisa Gillis
cc: ghilin Njorris
Bitl Bittner - NY ~
.P r'-`ksn Richmond
L.inda SGhwartz - NY
Kare[i' Tolchinsky - NY
argo Canant -
S uzame Farrand
PM-USA
Database Marketing Review
March 1994
HIGHLY CONFIDENTIAL
Linda Schwartz (3)
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HIGHLY CONFIDENTIAL
PM-USA DATABASE MARKETING REVIEW
MARCH 1994
Executive Summary
Background
This is an updated version of the PM-USA Direct Marketing Review, which
was originally issued in November 1992 and previously updated in June 1993.
Mission of PM-USA Direct Marketing and Database Development
Department
The mission of the PM-USA Direct Marketing and Database Development
Department is to provide database/information management and direct
marketing expertise as core capabilities to support PM-USA Brand efforts to
build business and maintain/grow smoker franchises. Toward these ends,
the department will ensure that:
The PM-USA Adult Smoker Database is continuously refreshed;
Critical database information is available in a timely manner;
Information on the PM-USA Adult Smoker Database has the highest
level of integrity;
All marketing systems and processes are state of the art;
Cutting edge direct marketing disciplines are standard operating
procedure.
To accomplish these objectives, the PM-USA Direct Marketing and Database
Development Department works in partnership with PM-USA Information
Services in Richmond as well as the Leo Burnett Database Marketing Group
and Corporate Client Services.
PM-USA Adult Smoker Database
Current projections are that the PM-USA Smoker Database will grow to
30.5MM qualified adult smoker names by year end 1994. This growth will
come predominantly from PM-USA Brand name generation efforts such as
the Marlboro Country Store Van. At present, there are no plans to conduct a
mass mailing to the database as had been done in 1993, with the Corporate
Price Announcement Mailing to 25.5MM adult smokers. Therefore, it is
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anticipated that PM-USA Brand utilization of the database will fall back to
previous levels (i.e., 80%), with the delivery of 66 Brand mailings now
scheduled to drop over the course of the year.
Database Dynamics
Unbranded data collection efforts will continue to focus on enhancing the
quality of information available for key smoker segments already on the
database as opposed to the aggressive name generation efforts of the past. The
standard smoker survey will continue to be used. It was successfully revised
in 1993 to allow for the collection of new data elements (i.e., attitudes toward
brand promotional and price-off offers) as well as more precise smoker
behaviors (i.e., coupon usage, consideration set, and share of purchase).
Database Mana eg ment
Successful management of the PM-USA Adult Smoker Database continues to
be achieved through the effective partnership among PM/NY,
PM/Richmond IS, and Leo Burnett. The operating objectives of this
partnership are to:
Leverage the database as a strategic asset;
Execute flawlessly, and;
Operate efficiently.
A core responsibility included in the database management function is
effective and efficient information management. Toward that end, there is a
project underway to automate the dissemination of key database statistics
about database contents and activity throughout the PM-USA organization.
The first report is scheduled to be distributed by the end of April.
have therefore, not yet been mainstreamed into PM-USA Brand. As such,
these efforts are typically:
Reactionary to in-market conditions or smoker behaviors;
Systems and / or process driven;
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Highly measurable; 4~b
Strategic Direct and Database Applications
This is defined as direct and database activities which are cutting edge and
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Funded by the PM-USA Direct Marketing and Database Development
Department;
Complementary to brand efforts, and;
Implemented with Brand participation and approval.
Opportunities in this area for 1994 include:
Direct to Smoker Selling;
Selective Binding;
Smoker Relationship Building;
Electronic Couponing (i.e., micra-encoded check coupon);
Interactive POS Technology;
PM Bank, and;
Niche Businesses such as Hispanic smokers and carton buyers.
Several initiatives begun in 1993 continue to be top priority in the new year.
These projects include:
Name Allocation Policies and Procedures;
Behavioral Models;
Local Area Marketing;
Just in Time Marketing;
Valuing the Smoker;
PM-USA and Competitive Direct Mail Tracking System, and;
Technological Database System Planning.
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PM-USA DATABASE MARKETING REVIEW
TABLE OF CONTENTS
Section Page
I. General Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . .1
- Definition of terms
- PM-USA Integrated Marketing Vision
II. Historical Perspective of Database Marketing ...................................3
Activity: 1988-1994
- Database Size
- Number of Names Used
- Corporate Database Marketing
III. Why Build a Marketing Database? ..................................................4
IV. The PM-USA Adult Smoker Database .............................................6
- Database Content .............................................................. - Database
Structure .............................................................
- Database Dynamics ........................................................... 11
- -
- Data Collection ........................................................
Data Maintenance ..................................................... 12
1
- Data Enhancement .................................................... 1
- Database Validation .................................................. 17
- Database Access ............................................................. 1
- Database Output .............................................................. 20
V. PM-USA Database Management .................................................22
- Role of PM-USA Corporate Database Development and
Direct Marketing Department . .......................................... 23
- Role of PM-USA Information Services ...................................23
- Role of LBCo. Client Services Corporate Direct Marketing...........24
- Role of LBCo. Database Marketing Group ..............................24
VI. PM-USA Database as a Brand Marketing Tool ................................28
VII. PM-USA Strategic Database Applications ......................................56
VIII. Attachments
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I. General Overview
2042007280
I. GENERAL OVERVIEW
Before getting into the specific direct marketing/database activity of PM-USA, it
may be useful to define some of the key terms that will be used throughout this
document. These terms are commonly used within the direct marketing
community-at-large, but tend to take on unique dimensions within specific
organizations.
Direct Marketing: The techniques of getting messages or offers direct to a
target audience via a variety of media to produce some
type of immediate and measurable action.
Direct Response: A specialized type of advertising that solicits a lead, an
order, or information, and always provides a means to
respond. This can be via an order form 'or a telephone
number which enables the consumer to act immediately.
Direct Mail: A medium like TV, radio, and print used to carry a
message to a customer or prospect, and typically solicits a
response.
Database: A central repository of information about current as well
as potential PM-USA brand adult smokers, collected from
a variety of sources (e.g., consumer surveys, promotion
responses, coupon redemption, third party suppliers).
Database Marketing: The strategic use of the PM-USA Adult Smoker Database
to create and cultivate an ongoing relationship with
individual adult smokers, via a variety of media.
Database Management: An ongoing effort to keep the database up-to-date,
accurate, and mailable as well as reflective of the U.S.
smoker population over 21 years of age.
At the present time, the primary focus of PM-USA is direct marketing. However, the
database can have a much broader impact on how we do business. Potentially, it could
drive all brand communication to the consumer, whether it be in the mail, outdoor, in
print or at retail. For a visualization of this integrated communication opportunity,
please see the following page.
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PHILIP MORRIS SMOKER DATABASE
RETAIL
PROMOTIONS
SALES
SUPPORT
T
CORPORATE
AFFAIRS
U
OUT-DOOR
PRINT
FNON-
TR
ADITIONAL
MEDIA
DIRECT MAIL RESEARCH
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II. Historical Perspective
2042007283
