Transcript Slide 1
TDR Partner – Loyalty program – CASE STUDY Client The leading tobacco producer in region that includes Croatia, Serbia, B&H, Macedonia, Montenegro, Kosovo Situation Independent retailers are the key channel for tobacco producers in communication with consumers. All players in this industry fight for the best position of their brands in these shops. Over the years, the retailers were receiving many incentives including goods, trips and money for their effort to position and support different cigarette brands in their shops. The brief The agency had a task to develop an umbrella loyalty program for 5 markets with one main goal – to develop long-term and loyal partnership relations with the small and medium independent retailers. The agency had to take into consideration that retailers from different markets has different profile and aspirations and that ,in the same time, developing loyal partnership with the retailers, many other different goals from market to market needed to be reached ( product visibility, stock level, merchandising standards, price policy, control system ) Situation today IN 2010, WE HAVE: 6,000 TDR PARTNERS 4 MARKETS HR B&H SR MK Strategy The agency created the program named TDR PARTNER that was based on the point system rewarding scheme where independent retailers who participate are rewarded with material and non-material prizes. Points are given for respecting the criteria given – availability, visibility, pricing & stock. Special tailor made software was created to follow the program on the web and all the data are fed via SMS. TDR PARTNER program was first introduced in 2005 and it lasts until today Mechanics I STEP – THE RETAILERS SIGN UP THE CONTRACT II STEP – SALES REPS VISIT SHOPS TWICE PER MONTH AND GIVE POINTS III STEP – AWARDING Communication tools 1) Brochure with welcome gift 2) TDR Partner card – with the code that is used to redeem some awards, to approach web portal, to enter parties etc Communication tools 3) Newsletter • 74,000 pieces distributed in four markets in four years •67% of interviewees in GFK research said that they find the NL very useful Communication tools 4) www.tdrpartner.com Tailor made web portal only for TDR PARTNERS. The retailers can find out in real time their point status, all info regarding the Program, news from TDR, some generic information relevant to them, they can play some games and win prizes etc • In 2010 we had 470 000 visits ( HR 247000, SR 135000, BiH 66000, MK 15000 ) • Record number of log ins in one day 11000 to compete for the tickets for the match between Croatia and England Communication tools 5) Sms communication ( bulk and personal messages ) 620,000 SMSs distributed in 2010, every retailer got 710 messages a month, every salesman 4 5) Email communication Communication tools 7) Events – regional events with team building, entertainment and educational character, socializing with TDR representatives, concerts, sports events, all day events with the program promoter – famous person from the football world, visit to the factory, trip abroad to some attractive events Turn-out between 25 – 90 % Results More than 90% from selected list of retailers signed up for TDR PARTNER program every year and more than 70% of them are in the Program up to 5 years so far Trade budget is rationalized – the prizes for the retailers are planned in more efficient way Better visibility, better positioning within the shops reached POSM placed and maintained according to merchandising standard Better stock and assortments control The retailers now feel like real partners with TDR => they are more negotiable and easy to communicate with TDR representatives. The competitors cannot easily harm this relationship any more. Not even when they offer a cash