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PAVING THE WAY: Making the Most of Market Realities Presentation to the Board of Directors September 23, 2008 Overview Section I – Branding Backgrounder Types of communications campaigns Messaging Review of relevant campaigns Section II – NRMCA Focus Market realities Goals Audiences Messages Strategy Tactics Scope Resources Measuring success Timeline Ad mock-up WWW. NRMCA.ORG 2 Section I WWW. NRMCA.ORG 3 Strategic Communications Campaigns Education and awareness Corporate reputation Issues management Marcom Industry branding Advertising can support any and all of these types of campaigns WWW. NRMCA.ORG 4 I’m a great paver. Trust us. He’s a great paver. Marketing Public relations WWW. NRMCA.ORG 5 I’m a great paver. I’m a great paver. I’m a great paver. We understand you’re a great paver. Advertising Branding WWW. NRMCA.ORG 6 Brand equity WWW. NRMCA.ORG 7 Approaching Campaign Messages Building the foundation Developing the messages Testing and refining Deploying the messages WWW. NRMCA.ORG 8 Building a Message House There are a few easy, low-cost steps you can take that will help you be ready in the face of any emergency situation. Sit down with your family and make an emergency preparedness plan. In your home, have three days of food and three gallons of water per person, a battery powered radio, a flashlight and a first aid kit It is simple to do and important to start now. Knowing what to do in the first 15 minutes of an emergency is essential to your safety and the safety of your loved ones. Many lives have been saved each year because people took the time to become prepared. Whether it’s having stored food and water, planning a fire escape route or learning CPR, preparation makes the difference. People with special needs, and those who have loved ones with special needs, should include those considerations in their emergency and preparedness planning. It is important to remember that the usual methods of support and assistance may not be available during an emergency and after the disaster has occurred. Being prepared for an emergency involves learning as much as you can and making plans to act. The NCR Campaign’s suggestions are a good start. Continue to educate yourself and become even more prepared. Emergency planning should include all members of the family, including pets. Pets depend on you for food, water and safety. Without proper planning, your pets may be forgotten in an emergency. WWW. NRMCA.ORG 9 Finding Your Tagline WWW. NRMCA.ORG 10 Industry case studies Inside-the-Beltway Consumer/Check-off The New Steel Got Milk? Targeted Risk is Opportunity. WWW. NRMCA.ORG 11 The New Steel American Iron & Steel Institute (AISI) WWW. NRMCA.ORG 12 Steel Tries To Shed Its Smokestack Image June 27, 2006 ASK random Americans their opinion of the steel industry, and you'll probably hear about smoke-belching plants, sweaty laborers, rampant bankruptcies and sniveling whiners trying to get the government to protect their companies. WWW. NRMCA.ORG 13 Market Realities Steel industry reeling from dumping Perception of steel as old and dirty among political elites Mittal Steel and Arcelor merger top of mind WWW. NRMCA.ORG 14 AISI Campaign Elements U.S. Steelmakers Polish Their Image May 25, 2008 Goal: Change perceptions of steel industry from old and dirty to modern and high tech WWW. NRMCA.ORG 15 AISI Campaign Elements, cont’d Strategy: Focus on a platform of global competitiveness Emphasize that America’s steel industry is the backbone of U.S. manufacturing Show commitment to reducing environmental footprint Demonstrate that steel industry is vital to America’s economic and national security WWW. NRMCA.ORG 16 AISI Campaign Elements, cont’d Audiences: Political elites Resources: $3 million Inside the beltway Print, radio and online ads = $2.78 million Timeline: June 2006 to early-to-mid 2008 Tactics: Print, radio, online ads; member activation; media relations WWW. NRMCA.ORG 17 AISI Campaign Elements, cont’d Spotlight on Tactics: Member Outreach Create executive task force for feedback Use companies’ HQs as conduits for information Provide members with poster-sized versions of the ads suitable for framing Develop and distribute the “Backbone Kit” for meetings with policymakers on Capitol Hill WWW. NRMCA.ORG 18 AISI Campaign Results Winner Silver David Ogilvy Award for research Silver Communicator Awards AISI measures the success of the campaign via: Media and online coverage Outreach to Capitol Hill Benchmarking (March and September 2006 and April and October 2007) Buzz among target audiences Introduction and passage of legislation WWW. NRMCA.ORG 19 California Milk Processor Board/ The Milk Processor Education Program WWW. NRMCA.ORG 20 Market Realities 30-year declining trend in milk consumption Declining market share “Milk Does a Body Good” was not working What could you say about milk? It was white and came in gallons. People felt they knew all there was to know about it, so it was hard to find a strategic platform. - Jeff Manning, CMPB Executive Director WWW. NRMCA.ORG 21 Milk Campaign Elements Goal: Increase consumption of milk Strategy: Shift from focusing on nutritional benefits of milk to a “food-beverage” connection Milk and cookies; PBJ and milk Play up disappointment when milk is unavailable WWW. NRMCA.ORG 22 Milk Campaign Elements, cont’d Audiences: Consumers Resources: California: Check-off campaign - $23 million/year Financed by contributing three cents for every gallon of milk processed National: Check-off campaign - unavailable Timeline: Ongoing. Began in 1993 in CA and went national in 1998. First “mustache” ad aired in 1995 WWW. NRMCA.ORG 23 Milk Campaign Elements, cont’d Tactics: Print, radio and TV ads Online ads during national campaign Co-branding Media buys timed to key dining hours (during dinner and late-night) Billboards along commuter routes Point-of-sale decals Later ads poked fun at ubiquity of campaign Minority-targeted ads WWW. NRMCA.ORG 24 Milk Ads, Web site & Collateral WWW. NRMCA.ORG 25 Milk Campaign Results 90% awareness of tagline in the U.S. Campaign credited with turning around the sales of milk Tagline licensed to dairy boards across U.S. and a number of consumer goods and other groups have capitalized on popularity of slogan Numerous awards “got milk?” the #1 most influential tag line since the advent of television WWW. NRMCA.ORG 26 Society Of Actuaries WWW. NRMCA.ORG 27 Market Realities Opportunity for positioning Businesses confronting complex risks Part of larger organizational initiative Actuaries face tough competition for senior leadership positions in traditional markets "Narrow and technical." Too often, that's the employer's perception of the actuary, according to research conducted by the Society of Actuaries. VS. The “New” Actuary WWW. NRMCA.ORG 28 SOA Campaign Elements Goals: Create a more dynamic and relevant image in the minds of the employers Build a vibrant, new image within the profession Create a sustainable program that builds on each success WWW. NRMCA.ORG 29 SOA Campaign Elements, cont’d Strategy: Launch the “Risk is Opportunity.” integrated campaign with an internal focus Audiences: Actuaries Traditional market employers such as insurance and benefits specialists Nontraditional market employers in the broader financial services WWW. NRMCA.ORG 30 SOA Program Elements, cont’d Resources: Campaign budget unavailable; 2006 operating budget was $29.6 million Timeline: Q4 2006 - Present Tactics: Multimedia launch event Speakers bureau Proactive media outreach Print ads WWW. NRMCA.ORG 31 SOA Ads WWW. NRMCA.ORG 32 SOA Campaign Elements, cont’d Tactics: Member outreach – “Living the Brand” Posters It’s also important for each of us to assume the role of brand ambassador. Each of us needs to convey compelling messages about what actuaries do and how we add value to an organization and society at large. Video Series –SOA Web site Image Advisory Group Workshop for ambassadors Web site overhaul Career-enhancing materials WWW. NRMCA.ORG 33 SOA “Living the Brand” Above: Actuary Cocktail served at SOA Annual Meeting Top Left: A “thirst” for branding Bottom Left: 14 Months of Actuaries WWW. NRMCA.ORG 34 SOA Posters WWW. NRMCA.ORG 35 SOA Campaign Results 175 high-profile placements 160 million media impressions Favorable member feedback 91% tagline recognition Award winner Corporate Branding Campaign of the Year Best Branding and Reputation Campaign WWW. NRMCA.ORG 36 Section II WWW. NRMCA.ORG 37 NRMCA: Factors for Consideration Analysis: Where are we today? NRMCA Market Realities Price of concrete/price of asphalt Environmental impact vs. asphalt Goals: Where do we want to go? NRMCA Goals Increase in market share Heightened awareness among target audiences WWW. NRMCA.ORG 38 NRMCA: Factors for Consideration Strategy: NRMCA Strategy Focus on economic competitiveness Leverage the national conversation on sustainability Differentiate concrete from asphalt Showcase concrete paving as a responsible choice for sustainable development Make the most of market realities Piggyback on industry-wide campaign Maximize limited budget Targeted outreach must support business objectives Strategic communications WWW. NRMCA.ORG 39 NRMCA: Factors for Consideration Audiences: NRMCA Audiences Internal Industry allies Members Staff External Contractors Engineers Large developers and property owners State and local government purchasers WWW. NRMCA.ORG 40 NRMCA: Factors for Consideration Tactics: NRMCA Tactics Internal ambassadors Third party outreach Leverage existing lines of communication Trade show participation Media outreach Advertising WWW. NRMCA.ORG 41 NRMCA Spotlight on Tactics: Media Buy WWW. NRMCA.ORG 42 NRMCA Spotlight on Tactics: Media Buy WWW. NRMCA.ORG 43 NRMCA Spotlight on Tactics: Media Buy WWW. NRMCA.ORG 44 NRMCA Spotlight on Tactics: Media Buy WWW. NRMCA.ORG 45 NRMCA: Factors for Consideration Measuring success: Anticipating NRMCA Success Awareness Image Brand Market share Methods of measurement: Micro-site specific Web traffic Baseline and benchmark awareness research Media impressions WWW. NRMCA.ORG 46 Past Campaigns: Measuring Success WWW. NRMCA.ORG 47 Past Campaigns: Measuring Success WWW. NRMCA.ORG 48 Past Campaigns: Measuring Success WWW. NRMCA.ORG 49 NRMCA: Estimated Campaign Timeline November 2008 December 2008 January 2009 February 2009 March 2009 April 2009 MayDecember 2009 Campaign planning meeting Message development and testing Communications planning and development Ad development Ad placement Media outreach (bylined articles and interviews) Materials development Microsite development Ambassador development/internal rollout Trade show identification and participation Third party outreach Management and oversight WWW. NRMCA.ORG 50 Ad mock-up Ad mock-up: WWW. NRMCA.ORG 51 In Review What are the challenges our industry faces in communicating its positive attributes? What are the opportunities, i.e. 21st century challenges for which our industry can provide solutions? Does our industry need to consider a strategic communications campaign? What are our goals? Who are our audiences? Do we have the resources to sustain a campaign that can effect change? WWW. NRMCA.ORG 52