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GET THE FACTS.
TAKE CHARGE.
GO BLUE.
Table of Contents
      3 Executive Summary
     5 Client Analysis
     6 Industry Overview
    8 Competitors
   11 SWOT Analysis
   12 Creative Brief
   16 Target Audience
   18 Media Plan
    34 Media Integration
    35 Prediction & Evaluation
     36 Media Budget
       38 Additional Recommendations
         44 Hexagon Solutions
exe
                                                                                                                                 cuti
The Blue KC Brand                                             Research Findings
Blue KC is a recognized household name and an                 Our research resulted in three key findings. First, our
established brand within its service area.                    target does not understand health insurance and often
                                                              learns about it when in the midst of dealing with a crisis or




                                                                                                                                     ve summary
As of May 2011, it holds 41.3 percent local market share.     claim. This contributes to an overall negative connotation
Blue KC asked our team to target 18- to 34-year olds          of the industry.
with fresh strategies to engage and promote its respected
brand and services. Hexagon Solutions, true to form,          Second, our target does not trust institutions with a stake
tackled this challenge from various “angles.” Primary         in a sale, but prefers to research and reference other
and secondary research, coupled with our unique insight       consumers online.
into the minds of our target created a multi-dimensional
campaign mixing both logic and emotion.                       Finally, our target does not think about health insurance.
                                                              It spends less than an hour a week contemplating the topic.
                                                              Because half of our target (18-25) has an opportunity to
Target Segmentation                                           stay on a parent plan, it will continue to disregard the
We found the various life stages within this broad age
                                                              issue. Messages directed toward this group will focus on
group consume health insurance differently. We used this
                                                              positioning Blue KC as top-of-mind for future purchasing
insight to split the target into two segments: 18- to 25-
                                                              actions.
year olds and 26- to 34-year olds. We made the division at
age 25 because recent rulings have determined this as the
                                                              The second half of our target (26-34), and those covered
age a person can no longer be covered by a parent’s plan.
                                                              by employer-sponsored plans and therefore ineligible
                                                              for parental coverage, are more likely to take purchasing
Our research has helped differentiate five life stage
                                                              action and better understand the value of coverage.
profiles within these two segments. This helped Hexagon
Solutions better target specific individuals based on their
habits and trends through different media.




                                                                                                                                          3
Campaign Strategy                                           In-person tactics such as photo opportunities with
The campaign segment targeting 18- to 25-year olds,         cutouts of anatomical bodies, promotional T-shirts and
focused on raising awareness, asks consumers to “Get the    thermometers and on-site iPad quizzes, will engage the
Facts. Go Blue.” The message encourages empowerment         audience and make them excited about health care.
through education. By learning about the insurance
industry and process, the consumers will have more          Social media will promote positive user-generated content
positive experiences when they choose an in-network         of the brand. Tagged Facebook photos from promotional
doctor, file claims and interact with providers in the      events, retweets by consumers during contests on Twitter
future. Communication about preventative measures will      and uploads to the Blue KC YouTube brand channel
promote wellness and lower overall costs.                   will allow Blue KC to engage in conversations with its
                                                            consumers.
The campaign’s segment targeting 26- to 34-year olds
is focused on a direct call-to-action. The campaign         We’ve strategically chosen our media platforms to push the
encourages consumers to “Take Charge. Go Blue.”             greatest number of impressions to engage our audiences
Purchases are motivated by emotion and then rationalized.   through their unique interests and locations.
Appealing to consumers through a humanistic approach
by showcasing true stories, the Blue KC message will        Hexagon Solutions has considered the angles of Blue KC’s
resonate and elicit a positive response. By using an        situation and provided solutions based on your requests.
interactive, testimonial-driven campaign, users will        Our approach is relevant, fresh and timely.
upload videos highlighting relatable personal experiences
with Blue KC.                                               Current and prospective consumers will:
                                                            Get the Facts.
                                                            Take Charge.
Media Integration                                           Go Blue.
Our strategies lie primarily in digital mediums and out-
of-home promotional events. Our integrated approach         Thank you for giving us the opportunity to “shape” your
will drive consumers to interact with the Blue KC brand     future.
online and face-to-face.
                                                            Sincerely,


                                                                             Hexagon
                                                                              Solutions
4
assignment                                        brand image




                                                                                              clie
Blue KC asked us to create a campaign             Focus group participants frequently




                                                                                                  nt a
targeting 18- to 34-year olds, changing           associated Blue KC with the words below:
the brand image from “grandfatherly” to
“young” and “hip.”                                 local
                                                   commercials
We aim to maintain Blue KC’s image as an           logo




                                                                                                      nalysis
established, respectable and trustworthy           well-known
health insurance provider while making
the brand more user-friendly and                  Considering the target market is not
appealing for the target age group.               particularly fascinated with health
                                                  insurance, it is a reassuring sign that
We are taking advantage of its strong             the majority of the target has a positive
brand awareness and using it to create a          impression of Blue KC’s brand and
fresh, interactive campaign that 18- to 34-       performance.




                                                     80%
year olds will respond positively to and
act upon.                                     Blue KC was top-of-mind for

   brand awareness
Within the target, brand awareness
                                                      of focus group participants.
is extremely high. From our primary
research findings, Blue KC has the highest
brand awareness. This can be attributed to
its high-exposure advertising campaigns
and word-of-mouth due to positive
customer experiences.



                                                                                                         5
Industry overview & trends

                w
            rvie                                    Health care reform will be officially implemented on
                                                    January 1, 2014.

                Insurance exchanges as an
                additional marketplace
industry ove

                Insurance exchanges will serve as an online platform to
                provide individuals or employees an easy, affordable way to                     Health Care Reform
                get health insurance. Businesses will offer employees health           Large Employers
                insurance or face penalties.


               Major industry players make
               transitions
                Almost all of Blue KC’s competitors offer educational                Small Employers         Private Health
                materials to walk their clients through this marketplace
                switch. Many competitors have also launched more
                                                                                                             Insurance
                customized plans to cater to consumers’ needs. Furthermore,
                these plans are becoming more benefit-driven rather
                than price-driven. Focusing on life stages helps potential                                   Health Insurance
                customers to easily determine where they belong.
                                                                                         Individuals         Exchange
                Mandated coverage
               Health care reform will require all Americans, to have health
               insurance. This way, the healthy will help fund the cost of
               people who need more medical care. However, optional
               opt-out penalty fees will more often be chosen. According
               to the Heritage Foundation’s Center for Data Analysis,
               roughly 93 percent of the uninsured under age 35 would
               rather pay the penalty fee than buy health insurance.


    6
Consumer views
of the industry                                      Unless you really need health
Our primary and secondary research uncovered
                                                            care, why pay for it?
some interesting consumer viewpoints regarding                                              - KU Focus Group Participant
the health care industry.




                                                                                   Irresponsible


                                                                E xpens
                                                                                          doctor
      of our target, especially those
      still on parent plans, say they are
      ignorant about health care reform.
                                       Online survey findings
                                                                       ive                Reform

                                                    Words most frequently used by focus group
                                                        participants in reference to health care
                                                                                                                           7
aetna                                                        cigna
         rs       Strengths                      Weaknesses                    Strengths                      Weaknesses
     tito
               student plans                    prices                      “Go You” ads                    broad targeting
               website design                   limited education info      interactive website             limited education info
               social media presence            website features            direct customer                 social media presence
compe

               and integration                                              relationships                   and integration

              Aetna offers student health insurance plans through          Cigna recently launched its “Go You” ad campaign,
              Aetna Student Health. Aetna also has a variety of online     focusing on individual consumers and fulfilling the
              communities to connect with consumers in their realm.        need for self-actualization.
              This includes Aetna Mobile and “Ann,” a virtual assistant
              on its member website.                                       The national campaign emphasizes wellness. The
                                                                           company is taking strides to improve direct relationships
              Aetna’s focus on life stages and its push for integrity as   with customers through many different media
              its core brand value are keys in marketing to the selected   channels including social media use.
              target market.




  8
coventry                                                      humana
    Strengths                     Weaknesses                   Strengths                         Weaknesses
 benefits on website             wordy website              website                            Facebook presence
 life-stage plans                limited education info     prices                             limited education info
 information about               social media presence      MyHumana Mobile                    reliability
 brokers                         and integration

CoventryOne includes Coventry’s health coverage            Humana understands the need to connect with individuals
for individuals and families. Similar to other Blue        through HumanaOne’s easy and convenient home page.
KC competitors, Coventry offers affordable student,        With descriptions such as “I need a short-term solution”
individual and family health insurance plans. These        and “I’m buying my first individual plan,” customers can
plans are tailored to fit the needs of consumers in each   easily navigate the site to find a plan that fits their needs.
category.
                                                           MyHumana Mobile emphasizes Humana’s understanding
Coventry lacks the social networking presence and          of the importance of convenience. Humana also boasts
media placement of Aetna, Humana and Cigna.                affordability, especially after establishing a partnership
                                                           with Wal-Mart in 2010.




                                                                                                                            9
united healthcare                                                     do nothings
         Strengths                      Weaknesses                    Strengths                       Weaknesses
      student plans                    too many websites           freedom                           no education
      reputation                       employer based              no premium                        penalties with reform
      health information               social media presence       out of sight, out of              high risk
      exchange                         and integration             mind

     UnitedHealthcare is top-ranked among health insurance        The “do nothings” are those individuals who will remain
     and managed care companies in Fortune’s 2011 “World’s        on a parent plan or simply choose to not have health
     Most Admired Companies List.” In relation to the             insurance and pay a penalty instead.
     selected target market, United will pose a threat with its
     affordable StudentResources student health insurance         With the advent of health care reform, those who
     plans. United also has begun a health information            remain uninsured will be forced to pay a penalty fee, but
     exchange, increasing the sharing of medical information      because of the fee’s affordability, the opt-out option will
     while reducing overall costs.                                continue to “steal” business from Blue KC.




                                                                   “As of right now, I’ve been on my
                                                                   parents’ health insurance, and
                                                                   I’m on it until I’ve graduated, and
                                                                   I honestly haven’t thought about
                                                                   that until right now.”
                                                                                              - KU Focus Group Participant




10
strengths                                                weaknesses




                                                                                                                     SW
High quality for the price                                   KCHealthCareReform.org
Blue KC must maintain this strength by continuing to         This website offers useful information on health
offer excellent customer service in relation to the prices   care reform, but it may be too complicated for
of their products.                                           the everyday consumer. Updating the “Education




                                                                                                                       OT
Large hospital and physician network                         Center” may help the average customer better
Blue KC already has a large network of health care           understand the reform. People are more likely
providers. This network, however, could be expanded,         to voluntarily read the material if it is in simple,
which presents an opportunity for Blue KC.                   everyday language.




                                                                                                                          analysis
Local                                                        Uninformed employees
Blue KC is involved and highly recognizable within the       Customers expressed frustration about Blue KC
community.                                                   employees. Customers believed the employees were
                                                             not as knowledgeable about health insurance as
                                                             they should be.
  opportunities
Wellness rewards                                                      threats
The Blue365 program offers discounts to businesses           Healthcare reform
that support health and wellness. There is an                When the reform takes effect, Blue KC will be forced
opportunity for Blue KC to offer individual                  to accept every customer applying for coverage. This
consumers a similar program.                                 could leave Blue KC responsible for covering many
Variety of communication channels                            high-risk individuals.
Blue KC needs to make sure it has a wide range               Student plans
of communication with current and potential                  Aetna, Humana and United offer plans catered
customers, while avoiding risky individuals. This            specifically to college students. These plans teach
could also create a threat. By using brokers to              individuals to prepare for making bigger health
target individuals, Blue KC could build and improve          insurance decisions later in life. These plans target
personal relationships with individual consumers.            the 18- to 34-year olds Blue KC is targeting.
Healthcare education                                         Life stage plans
The target is confused about health insurance,               Aetna and Humana created plans that targeted
creating an opportunity for Blue KC to educate               individuals based on lifestyles and life stages which
people which would ultimately foster trust among             creates an immediate connection with customers.
consumers.
                                                                                                                              11
f
         brie
             Why are we advertising?
creative

                 What You Asked
                 Blue KC asked us to help secure its place in the ever-changing
                 health insurance market by morphing its “grandfatherly”
                 image into one that is more lively and relatable to 18- to 34-
                 year olds.

                 Our Overall Goal
                 With this advertising campaign, we will drive leads and
                 increase consumer participation with Blue KC, while we gain
                 awareness with the target market that will be purchasing in
                 the future or for the first time.

                 We want Blue KC to be a household name and must drive
                 away confusion and sour attitudes toward this industry by
                 replacing them with positive perceptions to sustain Blue
                 KC’s iconic brand identification.

                 Key Brand Insight
                 Through our comprehensive research strategies we
                 uncovered many insights. Perhaps our biggest insight about
                 Blue KC is that its “grandfatherly” image may not be a bad
                 thing. We must spin grandpa into the wise, yet modern and
                 educational leader that he is.



   12
What will advertising achieve?
 This campaign cannot sell insurance plans, but it can evoke interest,
 emotional appeal, human connection and consideration. We want to
 attain new users, retain current users and stake out a spot in the minds
 of future users.

 Advertising Goals
        Encourage Thought
        Create top-of-mind brand awareness in 18- to 25-year olds
        •	 This segment of the market may still be insured through
           their parents’ plans

        •	 When this segment turns 26, or obtains full-time
           employment and is forced to make the switch, Blue KC             Encourage Action
           needs to be their first choice.                                  Evoke emotion, interaction and action with the purchasing
                                                                            segment, 26- to 34-year olds
        •	 Preventative health strategies within this segment are           •	 Depending on legislation, many people in this segment
           also important to reduce costs in the future and increase           may transition from employer-sponsored plans to the
           target knowledge of health insurance prior to purchasing.           health insurance exchange in 2014.

        •	 Understanding plans throughout purchase and usage                •	 To maintain Blue KC’s market share, we want to
           will reduce negative experiences                                    communicate value, transparency and stability by
                                                                               providing educational solutions and clarity in such
                                                                               uncertain times.

                                                                            •	 Emotional testimonial messages will be used to attain
                                                                               new purchasers and stake out a spot in the minds of
                                                                               future users.


                                                                                                                              13
Who is the consumer?
 Our agency has a unique perspective into the minds of 18- to 34-year olds, as
 we are part of the selected target. Therefore, we wanted to truly grasp how our
 peers feel about Blue KC and health insurance. The insights we unveiled of
 these consumers are qualitative, explanatory, emotional and creative.

 Behavior                                                                      Resistance
      Invincibility                                                            The target demographic does not trust business or government
      The 18- to 25-year-old segment considers themselves “invincible”         institutions; therefore, they view health insurance companies with
                                                                               suspicion, continuing to remain unknowledgeable about differences
      •	 They do not think about health insurance—it is not a priority         in details and benefits when comparing plans.

      •	 Many are still eligible under their parents’ plans—they have          To overcome this lack of trust, Blue KC will need to meet the
         never considered the benefits of having health insurance              consumer in their realm and interact in simple, transparent ways.
       No Understanding
       Understanding of health insurance does not develop until consumers      Insight
       directly interact with purchasing and using the service                 Eighteen- to 34-year olds are constantly interacting with others
      •	 Blue KC must create positive interaction with consumers to            through the online community. Because of this, the target is
          earn top-of-mind consideration                                       inundated with complicated messages, which they often ignore.

      •	 Interactions must provide basic levels of education before            The target seeks simple, quick and easy messages that allow them
         consumers directly interact with the service                          to think without trying. It is also important to consider the return
                                                                               on investment for consumers. Ask,“What’s in it for them?” and help
      Uncertainty                                                              consumers find the path of least resistance.
       Current purchasers, 26- to 34-year-olds, are uncertain about this
       industry                                                                Both target segments are turning to online platforms for
      •	 This segment likely has experience using their plans, but do not      information. However, they still want to have someone to call and
          know what to expect in the future                                    get a fast, understandable solution. Conversations about the Blue
                                                                               KC brand are already taking place, but we need to be a part of them
      •	 Blue KC can connect with these individuals through testimonials       to ensure the value of the brand.
         providing human-to-human interactions and peace of mind

 14
What’s our big idea?                                                      Communicating the Idea
                                                                             Goal




                                                                         18-25
                                                                             Encourage thought and create understanding
 Single Most Important Thing
                                                                              Tagline
 Blue KC must increase transparency by creating positive educational
 experiences with consumers through digitally and personally
 interactive means.                                                           Get the Facts. Go Blue.
                                                                             Advertising Message
Support                                                                      “We Want Your Body”
   Lack of Trust                                                             In our focus group research we heard repeatedly that
   Consumers lack trust in institutions                                      humor was the best way to get through to the younger
                                                                             target segment. This advertising message is provocative and
   •	 Blue KC must approach the target in their realm; reach out to          sensual. The juxtaposition between the mood of the message
      consumers directly in their own conversations via social media         and the scientific anatomical body will be humorous and
      and in person.                                                         intriguing to the 18- to 25-year old segment, making health
                                                                             care approachable and interesting.
   •	 By encouraging consumers to interact with the company and
      one another, Blue KC will build trust.
                                                                              Goal




                                                                         26-34
           It’s the least of my                                               Encourage action and provide certainty
                                                                              Tagline:
            worries right now.
                         -KU Focus Group Participant
                                                                              Take Charge. Go Blue.
    Lack of Care and Understanding                                           Advertising Message
    Health insurance is not a priority for consumers                         “What’s Your Story”
                                                                             Because the 26- to 34-year-old segment is the segment most
   •	 Consumers do not care about health insurance because it is not         likely to purchase healthcare, it is vital to connect with these
      a priority; therefore, they do not understand it.                      individuals on an emotional level. This advertising message
                                                                             is intriguing, and along with testimonial videos, it will
   •	 Blue KC will need to interact with and meet consumers where            reveal emotional stories about real-life individuals creating
      they are in order to create basic levels of awareness and a top-       a connection between Blue KC and the target.
      of-mind consideration.
                                                                                                                                          15
e
          ienc
target aud

            Target Profiles
           These five consumer profiles emerged
           repeatedly throughout our research.
                                                      Uninsured Invincibles                   Students/Dependents
           The target, 18- to 34-year olds, is a   These individuals are on top of          These individuals are covered by a
           broad segment. By breaking it down      the world. Nothing can hurt them.        parent’s insurance plan. They take
           into five distinct categories, Blue     Health insurance is the last thing       health insurance for granted. The
           KC will be able to better reach and     on their minds and they do not           only time they think about it is when
           interact with all members of the        understand why they should care          they are asked to pay the co-pay. They
           audience and understand their unique    until it’s too late. Until they get      are used to being insured and having
           perspectives and needs.                 injured or become seriously ill,         proper medical care and regular
                                                   they have no knowledge of health         check-ups.
           Uninsured 18-year olds have different   insurance or the benefits Blue KC
           views than a 34-year-old newlywed       could offer them.                        These individuals are health-
           couple expecting its first child. The                                            conscious and tech-savvy. Like the
           second paragraph of each profile maps   These individuals constantly use the     previous profile, this group will be
           consumer interaction with media and     Internet and cell phones. These social   reached via social media and mobile
           lays out how best to approach each      media addicts get news and info from     advertisements. These individuals will
           target.                                 Facebook and Twitter and trust their     go to parents and friends for help on
                                                   peers’ opinions.                         health insurance.

                                                        “That would never                       “My dad takes care
                                                          happen to me.”                         of that for me.”
   16
Workplace Rookies                         Dropped Individuals                           Young Families
These individuals are beginning            This profile includes people who will     This segment is made up of newlyweds and
careers where their employer is            be dropped from employer coverage or      expecting parents. Married individuals
providing health insurance coverage.       from a parent’s insurance upon turning    are not typically covered by a parent’s
This group understands the value of        26. These individuals also understand     plan. These individuals want the best
health insurance and will purchase.        the value of health insurance and want    plan to ensure their families are covered.
                                           good coverage for a fair price. They      They are very cost-conscious and expect
Blue KC can communicate with this          are living examples of the health care    bang for their buck.
group while at work via Pandora’s          reform and are searching for a reliable
online advertisements and social           source for facts.                         We will target this segment via digital-
media efforts, as well as promotional                                                TV and positive social media presence.
partnerships that prompt consumers         The integration of all online efforts     New parents trust family, friends and
to give email addresses in return for      will help Blue KC to create multiple      online reviews for information on
a chance to win prizes. These emails       impressions with the consumer and         health insurance. They will conduct
will provide sales leads and events will   become the expert these individuals       extensive research of plans online.
drive traffic to the Blue KC website.      are looking for on the reform and         YouTube uploads and incentives to
                                           insurance in uncertain times.             be on testimonial commercials will
                                                                                     resonate with this profile.
       “Not right now;                          “I need this now;                         “I expect affordable
        maybe later.”                          whom can I trust?”                          family coverage.”
                                                                                                                                  17
Reaching the Targets

         n
      pla           Our strategies lie primarily in digital mediums and
                    out-of-home promotional events. Our integrated
                                                                               18-25
                    approach will drive consumers to interact with the
                    Blue KC brand online and face-to-face.                     Get the Facts. Go Blue.
                                                                               Our first message, “Get the Facts. Go Blue,” caters to the younger
media

                                                                               half of the target. Individuals 18 to 25 are less likely to be
                                                                               purchasing health insurance because they are likely on a parent
                                                                               plan. Our goal for this group is to raise awareness. By using a
                                                                               clever, attention-grabbing campaign, we will peak the interest
                                                                               of the younger individuals in the target, giving them a reason
                                                                               to get the facts on Blue KC and health insurance in general. By
                                                                               using social media and trendy online radio sites such as Pandora
                                                                               and Spotify, we will reach the target where they consume media
                                                                               to secure top-of-mind consideration when the target ages into
                                                                               action.


                                                                               26-34
         Online Interaction
         While you cannot control the conversation, you can be a part
                                                                               Take Charge. Go Blue.
                                                                               For 26- to 34-year-old individuals, our message revolves
         of it. This target relies on online reviews when making major         around interaction and personal experience. The campaign
         purchases. By creating a strong, positive online presence, you        will encourage individuals to “Take Charge. Go Blue.” This
         can better interact with and understand consumers.                    is a direct call-to-action targeting individuals who are likely
                                                                               health insurance purchasers. This group wants to be heard.
         These groups want personal interaction and attention. They live       By incorporating an interactive campaign asking individuals
         online. As a participant in our broker focus group said, “I’m not     to upload videos of themselves, this strategy will give them a
         sure the 18 to 34 [year olds] watch that much TV—they are on          chance to voice their opinions. These videos will give real-life
         the Internet. Online, digital marketing is where it’s at for the ad   examples of Blue KC’s service which can be used as testimonial
         agencies. Newspapers are becoming obsolete because of that.”          advertisements.
 18
Close-up of banner ad to be shown on Hulu.


All five target profiles work on their own
schedules. They want what they want, when
they want it. These groups have busy lifestyles.
Because of this, online television sites, such as
Hulu, are popular.



Plan                                               Content
Hulu offers $40 cost per thousand                  Videos shown during programming
impressions (CPM) with a minimum                   will be content from testimonial videos
of $25K in a local market 1                        featuring real Blue KC customers. For
                                                   more information on the testimonial
We plan to spend $33,000 per month,                videos, reference the “Testimonial”
which will cap at 833,000 impressions              page. The banner ad will directly
per month. Over six month, this totals             correlate with the video content.
$200,000 with five million impressions.

Support
  Americans spent more than 2.5 billion minutes watching online video
  advertising in August 2011.2
  Hulu generated the highest number of video ad impressions at 996 million and               Screenshot from testimonial video to be shown as Hulu ad
  Hulu led the competition with an average of 45 ads per viewer. 2
  Hulu is sixth among the top 10 generators of video ad impressions. 2
  Advertising impressions on online television are more than on traditional
  television. 1
                                                                                                   Hulu Budget:
  1
      http://www.quora.com/Hulu/What-kind-of-CPM-does-Hulu-charge-advertisers                       $200,000
  2
      ComScore Metrics




                                                                                                                                              19
The individuals in our target like to multi-task and they enjoy constant
entertainment. Pandora Internet Radio is a popular source for music on
the computer or a mobile device.


Plan                                       Content
Pandora’s research indicates its 18-       Because of Pandora’s specific targeting,
to 24-year-old users are best reached      we will use the “Get the Facts. Go Blue.”
through mobile outlets. On the other       advertisements for 18- to 25-year olds
hand, 26- to 34-year olds should be        and the “Take Charge. Go Blue.” ads
targeted online on desktops while at       for 26- to 34-year olds. Mock ads can
work. This is the basis for our segment    be seen to the right and in more detail
targeting.                                 in the appendix.

Our budget allocates $20,000 per           All advertisements are links driving
month for six months totaling              consumers who click the ads to the
$120,000. If desired, Pandora will         website where they can explore the
produce audio for the ads with five to     Blue KC’s information on health
10 production days at no extra charge.     insurance and subscribe to an email.

Support
 It is less intimidating to register for an email on a mobile device. 1

 Seventy percent of listening hours happen on mobile devices on Pandora. 1
  1
      Pandora
                         Pandora Budget:
                            $120,000
                                                                                       Geared toward 26- to 34-year olds, this Pandoa
                                                                                       ad fits the screenshot to the right.
       20
Pandora Desktop Ads




This Pandora ad is geared toward 18- to 25-year olds.
                                                                          21
Pandora Desktop Ad




          This Pandora ad is another option for targeting 18- to 25-year olds.




22
Pandora Mobile Ad




This Pandora ad is the mobile option for targeting 18- to 25-year olds.




                                                                          23
Spotify Budget:
                                                                               $60,000
All Things Digital marketing documents indicate Spotify is
the newest social music sharing outlet, and with projections
of 50 million users in 2011, by 2013, it will be an important                             Screenshot of a Spotify ad.
platform to reach both segments of the target.

Plan                                  Content
Front page rectangle ads will run     Like the Pandora ads, we will
for six months targeting Kansas       use the “Get the Facts. Go Blue.”
City 18- to 34-year olds. Cost per    advertisements for 18- to 25-year
thousand per ad is $15.00 and we      olds and the “Take Charge. Go
expect an estimated four million      Blue.” ads for 26- to 34-year olds.
impressions. This will cost a total   Mock ads can be seen below and
of $60,000.                           in more detail in the appendix.


Support
  This year, the company merged with Facebook creating a sustainable,
  strong partner in the social media landscape.




    24
Testimonial Webpage
The 26- to 34-year olds belong to the “action
group” because they are no longer on a parent’s
plan and most of them need to provide coverage
not only for themselves, but also for their families.

Plan
Blue KC will implement a people-to-people
strategy to encourage the target to share their
real stories online, reminding the audience of the
importance of health insurance and the benefits
of taking a pro-active approach.

Content
By integrating the website with social media, Blue
KC will encourage users to share their stories. To
provide an incentive for customers to produce
videos, Blue KC will choose some of the videos to
feature as real television spots.

Support
According to focus group insights, the target
tends to trust people who share similar situations.
Because of this, viral video sharing is a trend. By
adding a testimonial page on the Blue KC website,
it will allow for consumers to emotionally connect                         Sample testimony website for Blue KC
with each other.
                                                        Website Contingency Budget:
                                                                  $10,000

                                                                                                        25
Blue KC has already created a YouTube channel
with educational videos. Currently, the channel
subscription is relatively low at seven subscribers.
To optimize the channel, testimonial videos and
educational videos will be featured on it. This
strategy will promote more brand engagement
with Blue KC customers, and an emotional pitch is
more likely to generate buzz and feedback than an
informative one.

Plan
Self-advertising strategies with a managed brand
network are free to create. Using the website
contingency budget to design the testimonial page
featuring Blue KC’s YouTube videos will encourage
users to upload their own videos to the Blue KC                                                                            Screenshot from a testimonial video
page. Also, using YouTube Analytics can also help
                                                       Support
                                                        YouTube has 490 million users worldwide1.
Blue KC track their audience and video views.

Content                                                 It generates an estimated 92 billion page views each month.
Participants in the “Tell Your Story” campaign
will upload their videos to YouTube. For more           Over 4 million people are connected and auto-sharing to at least one social
information on the testimonial videos, reference        network.
the example testimony webpage on the opposite
page.                                                   YouTube mobile gets over 100 million views a day.

                                                        1. YouTube Statistics: http://www.youtube.com/t/press_statistics

    26
New Local Partnerships
                          We propose a partnership with Healthy Meals Inc., a local company that delivers customized
                          healthy meals to customers’ doors. This is a growing trend among healthy individuals,
                          especially among the older audience in our target. Healthy Meals Inc. will:

                          •	 Offer a 20 percent discount to Blue KC clients
                          •	 Be willing to put Blue KC’s logo on its promotional materials

                          Promotions with Healthy Meals will provide direct contact with consumers.

                          This partnership will not require additional costs other than shared benefits. Healthy
                          Meals will also host Blue KC’s promotional booth at two events costing an average of $500
                          for each event.

                          To pursue this partnership, Blue KC can contact Kerstin or Scott Kluck at 816-587-6325.



                          We also suggest a partnership with the Kansas Speedway. While Hexagon Solutions was
                          unable to enter into negotiations with the Speedway, the company expressed a high level
                          of interest in partnering with Blue KC. The partnership would:

                          •	 Better reach the rural market of the target 18- to 34-year olds
                          •	 Provide Blue KC with another large local partner

                          Further, holding promotional events at the October 13, 2013 race weekend would allow
                          Blue KC to reach a large audience and cost $30,000, which has been factored into the
                          budget.
   Partnership Budget:
   $30,500+negotiations   To pursue this partnership, Blue KC can contact Joe Fowler at 913-328-3308.




                                                                                                                27
Out-of-home
This campaign focuses on connecting with the target and meeting them
where they are. To further encourage thought and action outside of the
online realm, we will meet the target in person through promotional events
with Blue KC’s partners.


  Promotional Booths                                                                       Booth Set-up
                                                                                           Three interns will occupy each promotional booth to
                                                                                           engage in out-of-home, face-to-face interaction with the
    Overview                                                                               consumers, creating positive experiences.
    In order to increase return on investment with Blue KC’s current partnerships,
    Blue KC will set up booths, staffed by Blue KC interns, during local sporting events   The booths will have a cardboard cutout of an anatomical
    such as Kansas City Chiefs games. These booths will attract the younger audience       body for people to take pictures with, as seen on page 31.
    of 18- to 25-year olds with the slogan, “We want your body,” yet also engage the       Pictures will be taken by interns and will be posted on
    older 26- to 34-year-old audience.                                                     the Blue KC Facebook page. For more information on the
                                                                                           Facebook integration, reference page 32.
    Budget
    Booth prices will be negotiated with current partners such as the Kansas City          Interns will also have iPads to encourage participants to
    Chiefs and Sporting Kansas City. Pricing for a booth at the Kansas Speedway will       take a short quiz on health insurance facts. After taking
    be $30,000 for the October 2013 race weekend. Please see page 27 for further           the quiz, individuals will enter an e-mail address to be
    partnership information.                                                               eligible for prizes such as the Ugg boots and sporting event
                                                                                           tickets which are featured in the quizzes. Promotional
    We will spend $54,000 to buy embroidered Blue KC table cloths, iPads, a digital        thermometers and Blue KC T-shirts will also be given
    camera, anatomical cutouts, 10,000 T-shirts, 3,000 thermometers with the Blue          away as an incentive for individuals to participate.
    KC logo, signs and brochures to start up the booths.

    Social media interns will staff booths at events and be compensated according to                        OOH Budget:
    the social media budget.                                                                                  $74,650
    Our budget also allocates $21,000 for prizes such as Ugg boots and sports tickets
    to reward quiz takers.


    28
Contact: Bizi Ferguson                                  FOR IMMEDIATE RELEASE
Tel: 913-491-8228
Cell Phone: 913-461-6693
Email: bferg@ku.edu

BLUE CROSS AND BLUE SHIELD OF KANSAS CITY TO LAUNCH
                  NEW CAMPAIGN
 Interactive Booths at Sporting Events and New Advertising Techniques

Kansas City, Nov. 25, 2011. Blue KC will host booths at sporting events at the Kan-
sas Speedway and Sporting Kansas City arena in the fall of 2013. The booths will be
                                                                                       Promoting the Booths
interactive with the people in hope to educate them about health insurance.
                                                                                       We will advertise these promotional events by distributing
                                                                                       the press release on the left to :

The booths will have a cardboard cutout for people to take their pictures with, and
then photos will be posted on Blue KC’s Facebook page. Quizzes on iPads will be set
                                                                                       Newspapers:

up to educate participants about health insurance. Participating in the quizzes will
also give people a chance to win a prize.
                                                                                       The Kansas City Star, The Pitch, KC Magazine and Kansas
                                                                                       City Home & Gardens

“The booths should really get the people engaged with Blue KC,” John Doe, Sporting
Kansas City.
                                                                                       Local Television:
                                                                                       Channel 5 KCTV-TV CBS, Channel 4 WDAF-TV FOX

“We really want to connect to our customers and are interested to see the reactions
                                                                                       and Channel 9 KMBC-TV ABC, Channel 41 KSHB-TV

we get when the new campaign is launched in 2013,” Jane Doe, Blue Cross and Blue
                                                                                       NBC

Shield of Kansas City. “I think that we will have a great response.”



                                        ###



                                                                                                                                         29
Mock screen shots
                                                                                                                                       of the iPad quiz




Sample Quiz Questions
 How many pairs of Ugg boots can a broken arm cost?
        a. 5 pairs of Ugg boots
        b. 7 pairs of Ugg boots
        c. 15 pairs of Ugg boots (correct answer)
 What is a premium?
        a. The amount a member or group pays on a periodic basis for coverage as defined in the member’s health insurance plan. (Correct answer)
        b. A reward for living a healthy lifestyle.
 Which prescriptions are covered by your plan?
        a. All of them
        b. None of them
        c. It depends on your plan. (Correct answer)

 All quiz questions will lead to a page that explains the answer in further detail and provides links to the Blue KC online education center.


   30
Photos of participants
posing with the
cardboard cutout




                         Mock T-shirt design for
                         promotional use




                                          31
Plan
                                                                                 We budgeted $50 per day for Facebook ads starting July 1, 2013
                                                                                 through December 31, 2013, totaling $9,200. Also, to pay for a custom
                                                                                 Facebook page will be $13.25 per month for six months totalling $80.
Facebook is currently the most commonly used online social
networking site among adults. Through Facebook ads, Blue                         In order to manage the social media, Blue KC will hire three interns
KC can better target consumers. These ads use filters to target                  for the summer and three interns for the fall. Each intern will be paid
the correct demographics such as location and life stages.                       a $1,200 stipend, which will total $7,200. These interns will update
                                                                                 Blue KC’s Facebook and Twitter once every two or three days. All
                                                                                 promotional events will also be managed by interns.

                                                                                 Content
                                                                                 Social media updates will include information about upcoming
                                                                                 events, event pictures and educational information.

                                                                                 The Facebook page will also coordinate with the on-site events.
                                                                                 Pictures taken of people with the cardboard cutout will be posted in
                                                                                 an album specified for that event. Participants can then tag themselves
                                                                                 and share the pictures with their friends, which will generate more
                                                                                 traffic. Ultimately, this will lead participants to the website, increasing
                                                                                 interaction.

                                                                                 Support
                                                                                  Among adult profile owners, 73 percent have a profile on Facebook.
                                                                                  1



                                                                                  Thirty-nine percent of online patients use a social networking site
                                                                                  such as Facebook, of those, only a small portion keep up with health
                                                                                  related updates. 1

                                                                                  This plan has an estimated reach of 1.1 million people. 3

                                                                                                  Social Media Budget:
                                                                                                         $16,400
                                                         Facebook welcome page

    32
The Pew Research Center indicates that Internet users ages 18 to 29 are
significantly more likely to use Twitter than older adults. This is a vital
way for Blue KC to communicate and interact with the selected target.

Plan                                      Support
Using the same interns with the           Twelve percent of e-patients use
same salary listed for Facebook,          Twitter or another service to share
Blue KC’s Twitter would update at         updates about themselves or to see
least once a day.                         updates about others 1

Content                                   Twitter usage of our target
The Twitter account will contain          audience spiked in 2005 and has
information about upcoming events         been increasing each year ever
as well as educational health care        since. 1
facts that lead to the website. Twitter
will also have “retweet” contests         Forty percent of Twitter users do
where people can become eligible to       not tweet every month but watch
win a prize by “retweeting” one of        others tweet. 2
Blue KC’s tweets. Additionally, Blue      1
                                            Pew Research Institute
KC can link the testimonial videos        2
                                            Jeff Bullas Blog
                                          3
                                            Facebook
in a tweet with a short description.
Twitter is also a great place to
interact with customers. If Blue KC
sees that someone tweets a question
about health care, responding to
such a tweet builds trust through
interaction.
                                                                        This illustrates potential content that
                                                                        could be used on the Blue KC Twitter.
                                                                                                                  33
Consumer Media Paths

                n
            atio            Overall, touch points will be integrated through various media outlets. The online testimony ads will lead people to
                            the “Testimony” webpage, and it will prompt people to upload their own videos on Blue KC’s testimony channel on
                            YouTube. We will offer giveaways to participants who post related conversations on Facebook and Twitter. Here are
                            two examples of potential media consumption paths.
media integr

                    Online ads

           “Testimony“ banner ad on Hulu
                                                                                                YouTube, Facebook &           Purchasing behavior
                                                                                                   Twitter pages
                                                           “Testimony“ webpage

                     In-person interaction




                                                 Cut-out pictures tagged
                                                      on Facebook                                                             Purchasing behavior

                    Cut-out pictures taken on sites                                     Blue KC official website
                          and iPad quizzes
   34
Goal#1:




                                                                                                                pre
To increase awareness and education of Blue KC
among 18- to 25-year-old healthy individuals.
                                                       Goal#2:




                                                                                                                   dict
Prediction
We predict that through the use of social media,
public relations techniques, and our advertising       To gain and retain customers, ages 26-34,
plan, the 18- to 25-year olds will be more             through changes the reform may cause. In




                                                                                                                       ion & evaluation
knowledgeable about health care by the time they       addition, we hope to build a trusting relationship
have to buy their own insurance.                       between Blue KC and the customer.
Evaluation                                             Prediction
We assume this target will most likely not purchase    We predict that by focusing more on an emotional
health insurance because they will still be on their   appeal in advertising and out-of-home techniques,
parents’ plans. There will be exceptions, but we       people in this target will want Blue KC as their
think it would be a waste of resources to try to       health insurance provider.
get this target as a whole to buy health insurance.
These people need more education about why             Evaluation
health insurance is important, what it can do for      These 26- to 34-year olds will most likely be affected
someone and become more familiar with health           by the reform because they face be dropped from
insurance terms. Education is extremely vital          their employer’s plan and possibly buying their own
for this market, but it needs to be repackaged as      insurance. This target will respond best to emotional
entertaining or intriguing. For this reason, we        appeals from people who reflect themselves. People
believe our approach will be successful.               tend to trust someone whom they think would not
                                                       have an ulterior motive in stating their opinion. Our
                                                       commercial with a young mother and her children
                                                       discussing their great experience with Blue KC
                                                       should resonate well with this audience. When it
                                                       comes to health insurance, people want to base their
                                                       purchases on a real testimony they can build trust
                                                       with, and we believe, to succeed, Blue KC should
                                                       give them just that.

                                                                                                                               35
et   Media Plan Budget
       udg
               Because the health care reform will take place on January
               1, 2014, the campaign advertisements will begin running
media b

               in the summer of 2013 and continue through the end of the
               year. This should create positive momentum leading up to
               the reform. The specific budget for our campaign is mapped   Miscellaneous Costs
               out on the opposite page.
                                                                            1. iPad (3) $500 = $1500
                                                                            2. Digital Camera = ~$200
                                                                            3. Promotional T-shirts = 10,000 @ $4
                                                                                (Instashirt.com) custom $40,000
                                                                            4. Thermometers for 3,000 = $8,390
                                                                            5. Interns: three at $1200 tuition stipend
                                                                                    $3,600 fall
                                                                                    $3,600 summer
                                                                            6. Promotional Cutout (x2): ~$500
                                                                            7. Signage (X2) $400 (fastsigns)
                                                                            8. Table Cloth ~$400
                                                                            9. Info Handout/brochure cost: 10,000 for
                                                                                ~$2,000 (Smartpress.com)
                                                                            10. 6 pairs of UGG boots = $1,080
                                                                            11. 6 pairs of Sporting Tickets= $1,080 “members
                                                                                zone”
                                                                            12. Pagemodo.com custom Facebook page, $13.25
                                                                                per month for six months=$79.50
                                                                            13. Contingency Money = ~$17,000

                                                                                          Grand Total: $500,000
  36
July    August    September   October    November    December      Total Cost




   Facebook        $1500    $1500       $1500      $1500      $1500       $1500          $9200



Pandora Mobile    $10,000   $10,000    $10,000    $10,000     $10,000     $10,000       $60,000



    Twitter       no cost   no cost    no cost     no cost    no cost     no cost        N/A


Out-of-Home
 Speedway                                         $30,000                               $30,000




Pandora Desktop   $10,000   $10,000    $10,000    $10,000     $10,000      $10,000       $60,000



   Youtube        no cost   no cost    no cost     no cost    no cost     no cost         N/A



   Spotify        $10,000   $10,000   $10,000     $10,000     $10,000     $10,000       $60,000



   Hulu           $33,000   $33,000    $33,000    $33,000      $33,000    $33,000       ~$200,000



Out-of-Home                 $500                                $500                    $1,000
Healthy Meals


                                                                                     Total:420,200


                                                                                                     37

              r
Recommendations

                         s
                      ion     Based on our primary and secondary research findings, we suggest exploring four major areas that
                              are not directly incorporated into our campaign which focuses mainly on advertising and reach.
        al recommendat
                                                                              Plan Benefits
                                                                                Extracting from the insights gathered in our eight focus groups,
                                                                                these are three benefits our target would like to see included in
                                                                                health insurance plans:

                                                                                Wide Network of Medical Resources
                                                                                “I travel a lot for work. Having a wide network and knowing
                                                                                I would be covered overseas exactly demonstrates the
                                                                                reason to have health insurance.”
                                                                                - Kansas City Focus Group

                                                                                Rewards for Living a Healthy Lifestyle
                                                                                “People love rewards as return on investment. Gym
                                                                                memberships or other preventive care [related benefits]
                                                                                are good ideas.”
                                                                                - KU Focus Group
    tion




                                                                                Best Coverage for the Money
                                                                                “I would be willing to pay a little bit extra each month to
                                                                                receive more benefits and better coverage.”
                                                                                - St. Joe Interview
  di




                                                                                By incorporating these three benefits, customer satisfaction
                                                                                in the target will increase. Moreover, encouraging a healthy
 d




                                                                                lifestyle can lower healthcare costs in the long run.
a




     38
Logo
              Focus group research indicated multiple consumers felt the new logo was promoting Kansas City as a travel
              destination. Although consumers have high recognition of the blue cross and the blue shield symbols, the
              consumers felt “Blue Cross Blue Shield” needs to be present in text and symbol form in the logo.

Old Logo                                 New Logo



                                                                               Proposed Solution

“Too many words for a logo”               “Looks more like a logo”

Recognizable, but the tagline is too      Simple and clean, appropriate
wordy causing people to miss it           length for a tagline

Pro: spells out the company name          Company name should be present

Text and symbols compliment each          Symbols and text look separate
other




                                                                                                                          39
TV Commercials
 We showed Blue KC’s TV commercial to the KU focus group participants to test
 their reaction. Overall, most participants agreed the commercial demonstrates
 Blue KC’s local presence. They said “local buying“ is a trend now, so Blue KC should
 keep this element. However, they think the dialogue between the two actors was
 unrealistic because in real life, they do not talk like that when they play video
 games. The only realistic part of it is one actor saying he thought he did not need
 health insurance.

     Keep it local and realistic
     Realistic situations can be: a prescription talk while
     a roommate is sick; job searching after college
     graduation brings up conversations about the
     need of health insurance; consequence showing
     commercial is also considered powerful.

      Less hard-selling, more
      thought-provoking
      Most participants found Cigna’s commercial
      powerful because it was not selling them to buy
      health insurance plans. Instead, it pushed them to
      make a change for themselves.

     Guide consumers back to the website
     The official website is where consumers can get
     most information. No matter what campaign is
     pushed, the final destination of all the pitches is
     your website.

40
Broker Strategy                                            “People will always need guidance.”
 Brokers have been an important component to Blue
 KC’s sales force, and as changes arise and uncer-
 tainty continues, these front-line relationships will
 remain crucial.

 It is important to understand how the broker role
 will change because these relationships should be
 maintained as a source of education and support for
 consumers.

 Suggestion
 We suggest reaching out to employees through bro-
 kers by offering educational materials to clients with
 existing group plans.

 This will encourage retention of employees who
 may be making the switch to the exchange. These
 materials will be branded with the “Take Charge.
 Go Blue.” segment of our strategic messaging.

 In a focus group of eight local brokers who work
 specifically with Blue KC’s target audience shared
 insight into how their role will remain as important
 as ever.                                                 “[The exchange] will be very confusing
 All quotes are from the broker focus group.                        for the individual and it’s going to

                                                                                 We will play a bigger role.”


                                                                                                                41
Website Simplification
Education Center Update
With 80 percent of American adults online, Blue KC’s website is one of the
most important venues for communicating with customers (Pew 2011).
Currently, the site is well organized and informative, but a few adjustments
can increase return on investment.


     “Education Center” Update
     Updating the “Education Center” with a dominant visual will draw in
     the user, prompting them to spend more time on the page.

     •	 A scrolling banner’s movement will instinctively draw the eye
        in, teasing the brain to be alert and connect the visual, text and
        movement.

     •	 The Wireframe on the opposite page provides a visual
        representation of what the redesigned Education Center website
        page would look like.

      Quiz Integration
      Blue KC must also Include the quiz used at PR events on this page of
      the website.
     •	 Having an interactive and fun educational tool will position Blue
         KC positively in the consumer mind.

     •	 Blue KC will make learning interesting and fun with these
        interactive, easy-to-understand media.




42
BLUE KC
                                        LOGO                     SEARCH BAR

 The Wireframe
The wireframe to the right provides     EXISTING BUTTONS TO OTHER PAGE CATEGORIES
a visual representation of how the
updated Education Center page           HEALTH INSURANCE
should     operate.     Incorporating   BASICS
existing design elements, such as the   HEALTH PROSPECTIVE
Blue KC logo, search bar and category   WELLNESS BASICS            SCROLLING BANNER
divisions at the top of the page will                              VISUAL-- will change along
                                        WEEKLY CHALLENGE
keep the design fresh and unified                                  with banner tabs to the left
with the rest of the website.           TERM GLOSSARY
                                        WELL AWARE            SUBHEAD TEXT DESCRIBING PAGE:
                                                              Become well aware about your health
                                                              and wellness. Read articles about
                                                              healthy lifestyles, nutrition, medical and
                                                              treatment updates and prevention.

                                           GO BLUE            EVENTS                  TESTIMONIALS
  USERS GO TO
                                         Get a quote         Learn about                Screenshot
  YOUR WEBSITE TO                        from Blue KC        upcoming                   and link to
  DO SOMETHING.                          and TAKE            events and                 testimonial
                                         CHARGE.             contests                   video sharing
                                                                                        page
  MAKE IT EASY.
                                        HOW MANY NEW HONDA CIVICS DOES A BROKEN                   TAKE
                                        ARM COST? FIND OUT HERE.                                  THE
                                        TAKE THE BLUE KC INSURANCE QUIZ.                          QUIZ
                                        GET THE FACTS. GO BLUE.

                                                                                                           43
s
            tion
hexagon solu




                     HEXAGON SOLUTIONS
                        solving your problems from every angle

                              We would like to give a special thanks to:
            Blue KC Brielyn Dickerson Cheryl Kober David Gentile Denise Linville Diane O’Byrne George Weyrauch
                  Hyunjin Seo Jan Butin Jeff Browne Kim White Marilyn Rausch Matt Anthony Mike Swenson
               Our classmates Our families and friends Our focus group participants Ramsey Moshen Rich Claussen
                                     Rob O’Byrne Sherry Gibbs Skip Quimby Sue Johnson
                                The University of Kansas William Allen White School of Journalism
                                  And everyone who has contributed to our campaign in any way

   44
Bizi Ferguson                     Meghan Nuckolls
      Social Media/PR Director                 Account Planner
                 bferg@ku.edu                  meghannuckolls@gmail.com




                                  Hexagon
                                   Solutions
    Kathleen Kennalley                           Amanda Roberts
            Creative Director                    Account Executive
kathleenkennalley@gmail.com                      alynr08@gmail.com




                    Josie Ho                   Lyndsey Carrel
              Research Director                Media Planner
         josie_ho@hotmail.com                  lyndsey@ku.edu



                                                                     45

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Campaigns Capstone Project

  • 1. GET THE FACTS. TAKE CHARGE. GO BLUE.
  • 2. Table of Contents 3 Executive Summary 5 Client Analysis 6 Industry Overview 8 Competitors 11 SWOT Analysis 12 Creative Brief 16 Target Audience 18 Media Plan 34 Media Integration 35 Prediction & Evaluation 36 Media Budget 38 Additional Recommendations 44 Hexagon Solutions
  • 3. exe cuti The Blue KC Brand Research Findings Blue KC is a recognized household name and an Our research resulted in three key findings. First, our established brand within its service area. target does not understand health insurance and often learns about it when in the midst of dealing with a crisis or ve summary As of May 2011, it holds 41.3 percent local market share. claim. This contributes to an overall negative connotation Blue KC asked our team to target 18- to 34-year olds of the industry. with fresh strategies to engage and promote its respected brand and services. Hexagon Solutions, true to form, Second, our target does not trust institutions with a stake tackled this challenge from various “angles.” Primary in a sale, but prefers to research and reference other and secondary research, coupled with our unique insight consumers online. into the minds of our target created a multi-dimensional campaign mixing both logic and emotion. Finally, our target does not think about health insurance. It spends less than an hour a week contemplating the topic. Because half of our target (18-25) has an opportunity to Target Segmentation stay on a parent plan, it will continue to disregard the We found the various life stages within this broad age issue. Messages directed toward this group will focus on group consume health insurance differently. We used this positioning Blue KC as top-of-mind for future purchasing insight to split the target into two segments: 18- to 25- actions. year olds and 26- to 34-year olds. We made the division at age 25 because recent rulings have determined this as the The second half of our target (26-34), and those covered age a person can no longer be covered by a parent’s plan. by employer-sponsored plans and therefore ineligible for parental coverage, are more likely to take purchasing Our research has helped differentiate five life stage action and better understand the value of coverage. profiles within these two segments. This helped Hexagon Solutions better target specific individuals based on their habits and trends through different media. 3
  • 4. Campaign Strategy In-person tactics such as photo opportunities with The campaign segment targeting 18- to 25-year olds, cutouts of anatomical bodies, promotional T-shirts and focused on raising awareness, asks consumers to “Get the thermometers and on-site iPad quizzes, will engage the Facts. Go Blue.” The message encourages empowerment audience and make them excited about health care. through education. By learning about the insurance industry and process, the consumers will have more Social media will promote positive user-generated content positive experiences when they choose an in-network of the brand. Tagged Facebook photos from promotional doctor, file claims and interact with providers in the events, retweets by consumers during contests on Twitter future. Communication about preventative measures will and uploads to the Blue KC YouTube brand channel promote wellness and lower overall costs. will allow Blue KC to engage in conversations with its consumers. The campaign’s segment targeting 26- to 34-year olds is focused on a direct call-to-action. The campaign We’ve strategically chosen our media platforms to push the encourages consumers to “Take Charge. Go Blue.” greatest number of impressions to engage our audiences Purchases are motivated by emotion and then rationalized. through their unique interests and locations. Appealing to consumers through a humanistic approach by showcasing true stories, the Blue KC message will Hexagon Solutions has considered the angles of Blue KC’s resonate and elicit a positive response. By using an situation and provided solutions based on your requests. interactive, testimonial-driven campaign, users will Our approach is relevant, fresh and timely. upload videos highlighting relatable personal experiences with Blue KC. Current and prospective consumers will: Get the Facts. Take Charge. Media Integration Go Blue. Our strategies lie primarily in digital mediums and out- of-home promotional events. Our integrated approach Thank you for giving us the opportunity to “shape” your will drive consumers to interact with the Blue KC brand future. online and face-to-face. Sincerely, Hexagon Solutions 4
  • 5. assignment brand image clie Blue KC asked us to create a campaign Focus group participants frequently nt a targeting 18- to 34-year olds, changing associated Blue KC with the words below: the brand image from “grandfatherly” to “young” and “hip.” local commercials We aim to maintain Blue KC’s image as an logo nalysis established, respectable and trustworthy well-known health insurance provider while making the brand more user-friendly and Considering the target market is not appealing for the target age group. particularly fascinated with health insurance, it is a reassuring sign that We are taking advantage of its strong the majority of the target has a positive brand awareness and using it to create a impression of Blue KC’s brand and fresh, interactive campaign that 18- to 34- performance. 80% year olds will respond positively to and act upon. Blue KC was top-of-mind for brand awareness Within the target, brand awareness of focus group participants. is extremely high. From our primary research findings, Blue KC has the highest brand awareness. This can be attributed to its high-exposure advertising campaigns and word-of-mouth due to positive customer experiences. 5
  • 6. Industry overview & trends w rvie Health care reform will be officially implemented on January 1, 2014. Insurance exchanges as an additional marketplace industry ove Insurance exchanges will serve as an online platform to provide individuals or employees an easy, affordable way to Health Care Reform get health insurance. Businesses will offer employees health Large Employers insurance or face penalties. Major industry players make transitions Almost all of Blue KC’s competitors offer educational Small Employers Private Health materials to walk their clients through this marketplace switch. Many competitors have also launched more Insurance customized plans to cater to consumers’ needs. Furthermore, these plans are becoming more benefit-driven rather than price-driven. Focusing on life stages helps potential Health Insurance customers to easily determine where they belong. Individuals Exchange Mandated coverage Health care reform will require all Americans, to have health insurance. This way, the healthy will help fund the cost of people who need more medical care. However, optional opt-out penalty fees will more often be chosen. According to the Heritage Foundation’s Center for Data Analysis, roughly 93 percent of the uninsured under age 35 would rather pay the penalty fee than buy health insurance. 6
  • 7. Consumer views of the industry Unless you really need health Our primary and secondary research uncovered care, why pay for it? some interesting consumer viewpoints regarding - KU Focus Group Participant the health care industry. Irresponsible E xpens doctor of our target, especially those still on parent plans, say they are ignorant about health care reform. Online survey findings ive Reform Words most frequently used by focus group participants in reference to health care 7
  • 8. aetna cigna rs Strengths Weaknesses Strengths Weaknesses tito student plans prices “Go You” ads broad targeting website design limited education info interactive website limited education info social media presence website features direct customer social media presence compe and integration relationships and integration Aetna offers student health insurance plans through Cigna recently launched its “Go You” ad campaign, Aetna Student Health. Aetna also has a variety of online focusing on individual consumers and fulfilling the communities to connect with consumers in their realm. need for self-actualization. This includes Aetna Mobile and “Ann,” a virtual assistant on its member website. The national campaign emphasizes wellness. The company is taking strides to improve direct relationships Aetna’s focus on life stages and its push for integrity as with customers through many different media its core brand value are keys in marketing to the selected channels including social media use. target market. 8
  • 9. coventry humana Strengths Weaknesses Strengths Weaknesses benefits on website wordy website website Facebook presence life-stage plans limited education info prices limited education info information about social media presence MyHumana Mobile reliability brokers and integration CoventryOne includes Coventry’s health coverage Humana understands the need to connect with individuals for individuals and families. Similar to other Blue through HumanaOne’s easy and convenient home page. KC competitors, Coventry offers affordable student, With descriptions such as “I need a short-term solution” individual and family health insurance plans. These and “I’m buying my first individual plan,” customers can plans are tailored to fit the needs of consumers in each easily navigate the site to find a plan that fits their needs. category. MyHumana Mobile emphasizes Humana’s understanding Coventry lacks the social networking presence and of the importance of convenience. Humana also boasts media placement of Aetna, Humana and Cigna. affordability, especially after establishing a partnership with Wal-Mart in 2010. 9
  • 10. united healthcare do nothings Strengths Weaknesses Strengths Weaknesses student plans too many websites freedom no education reputation employer based no premium penalties with reform health information social media presence out of sight, out of high risk exchange and integration mind UnitedHealthcare is top-ranked among health insurance The “do nothings” are those individuals who will remain and managed care companies in Fortune’s 2011 “World’s on a parent plan or simply choose to not have health Most Admired Companies List.” In relation to the insurance and pay a penalty instead. selected target market, United will pose a threat with its affordable StudentResources student health insurance With the advent of health care reform, those who plans. United also has begun a health information remain uninsured will be forced to pay a penalty fee, but exchange, increasing the sharing of medical information because of the fee’s affordability, the opt-out option will while reducing overall costs. continue to “steal” business from Blue KC. “As of right now, I’ve been on my parents’ health insurance, and I’m on it until I’ve graduated, and I honestly haven’t thought about that until right now.” - KU Focus Group Participant 10
  • 11. strengths weaknesses SW High quality for the price KCHealthCareReform.org Blue KC must maintain this strength by continuing to This website offers useful information on health offer excellent customer service in relation to the prices care reform, but it may be too complicated for of their products. the everyday consumer. Updating the “Education OT Large hospital and physician network Center” may help the average customer better Blue KC already has a large network of health care understand the reform. People are more likely providers. This network, however, could be expanded, to voluntarily read the material if it is in simple, which presents an opportunity for Blue KC. everyday language. analysis Local Uninformed employees Blue KC is involved and highly recognizable within the Customers expressed frustration about Blue KC community. employees. Customers believed the employees were not as knowledgeable about health insurance as they should be. opportunities Wellness rewards threats The Blue365 program offers discounts to businesses Healthcare reform that support health and wellness. There is an When the reform takes effect, Blue KC will be forced opportunity for Blue KC to offer individual to accept every customer applying for coverage. This consumers a similar program. could leave Blue KC responsible for covering many Variety of communication channels high-risk individuals. Blue KC needs to make sure it has a wide range Student plans of communication with current and potential Aetna, Humana and United offer plans catered customers, while avoiding risky individuals. This specifically to college students. These plans teach could also create a threat. By using brokers to individuals to prepare for making bigger health target individuals, Blue KC could build and improve insurance decisions later in life. These plans target personal relationships with individual consumers. the 18- to 34-year olds Blue KC is targeting. Healthcare education Life stage plans The target is confused about health insurance, Aetna and Humana created plans that targeted creating an opportunity for Blue KC to educate individuals based on lifestyles and life stages which people which would ultimately foster trust among creates an immediate connection with customers. consumers. 11
  • 12. f brie Why are we advertising? creative What You Asked Blue KC asked us to help secure its place in the ever-changing health insurance market by morphing its “grandfatherly” image into one that is more lively and relatable to 18- to 34- year olds. Our Overall Goal With this advertising campaign, we will drive leads and increase consumer participation with Blue KC, while we gain awareness with the target market that will be purchasing in the future or for the first time. We want Blue KC to be a household name and must drive away confusion and sour attitudes toward this industry by replacing them with positive perceptions to sustain Blue KC’s iconic brand identification. Key Brand Insight Through our comprehensive research strategies we uncovered many insights. Perhaps our biggest insight about Blue KC is that its “grandfatherly” image may not be a bad thing. We must spin grandpa into the wise, yet modern and educational leader that he is. 12
  • 13. What will advertising achieve? This campaign cannot sell insurance plans, but it can evoke interest, emotional appeal, human connection and consideration. We want to attain new users, retain current users and stake out a spot in the minds of future users. Advertising Goals Encourage Thought Create top-of-mind brand awareness in 18- to 25-year olds • This segment of the market may still be insured through their parents’ plans • When this segment turns 26, or obtains full-time employment and is forced to make the switch, Blue KC Encourage Action needs to be their first choice. Evoke emotion, interaction and action with the purchasing segment, 26- to 34-year olds • Preventative health strategies within this segment are • Depending on legislation, many people in this segment also important to reduce costs in the future and increase may transition from employer-sponsored plans to the target knowledge of health insurance prior to purchasing. health insurance exchange in 2014. • Understanding plans throughout purchase and usage • To maintain Blue KC’s market share, we want to will reduce negative experiences communicate value, transparency and stability by providing educational solutions and clarity in such uncertain times. • Emotional testimonial messages will be used to attain new purchasers and stake out a spot in the minds of future users. 13
  • 14. Who is the consumer? Our agency has a unique perspective into the minds of 18- to 34-year olds, as we are part of the selected target. Therefore, we wanted to truly grasp how our peers feel about Blue KC and health insurance. The insights we unveiled of these consumers are qualitative, explanatory, emotional and creative. Behavior Resistance Invincibility The target demographic does not trust business or government The 18- to 25-year-old segment considers themselves “invincible” institutions; therefore, they view health insurance companies with suspicion, continuing to remain unknowledgeable about differences • They do not think about health insurance—it is not a priority in details and benefits when comparing plans. • Many are still eligible under their parents’ plans—they have To overcome this lack of trust, Blue KC will need to meet the never considered the benefits of having health insurance consumer in their realm and interact in simple, transparent ways. No Understanding Understanding of health insurance does not develop until consumers Insight directly interact with purchasing and using the service Eighteen- to 34-year olds are constantly interacting with others • Blue KC must create positive interaction with consumers to through the online community. Because of this, the target is earn top-of-mind consideration inundated with complicated messages, which they often ignore. • Interactions must provide basic levels of education before The target seeks simple, quick and easy messages that allow them consumers directly interact with the service to think without trying. It is also important to consider the return on investment for consumers. Ask,“What’s in it for them?” and help Uncertainty consumers find the path of least resistance. Current purchasers, 26- to 34-year-olds, are uncertain about this industry Both target segments are turning to online platforms for • This segment likely has experience using their plans, but do not information. However, they still want to have someone to call and know what to expect in the future get a fast, understandable solution. Conversations about the Blue KC brand are already taking place, but we need to be a part of them • Blue KC can connect with these individuals through testimonials to ensure the value of the brand. providing human-to-human interactions and peace of mind 14
  • 15. What’s our big idea? Communicating the Idea Goal 18-25 Encourage thought and create understanding Single Most Important Thing Tagline Blue KC must increase transparency by creating positive educational experiences with consumers through digitally and personally interactive means. Get the Facts. Go Blue. Advertising Message Support “We Want Your Body” Lack of Trust In our focus group research we heard repeatedly that Consumers lack trust in institutions humor was the best way to get through to the younger target segment. This advertising message is provocative and • Blue KC must approach the target in their realm; reach out to sensual. The juxtaposition between the mood of the message consumers directly in their own conversations via social media and the scientific anatomical body will be humorous and and in person. intriguing to the 18- to 25-year old segment, making health care approachable and interesting. • By encouraging consumers to interact with the company and one another, Blue KC will build trust. Goal 26-34 It’s the least of my Encourage action and provide certainty Tagline: worries right now. -KU Focus Group Participant Take Charge. Go Blue. Lack of Care and Understanding Advertising Message Health insurance is not a priority for consumers “What’s Your Story” Because the 26- to 34-year-old segment is the segment most • Consumers do not care about health insurance because it is not likely to purchase healthcare, it is vital to connect with these a priority; therefore, they do not understand it. individuals on an emotional level. This advertising message is intriguing, and along with testimonial videos, it will • Blue KC will need to interact with and meet consumers where reveal emotional stories about real-life individuals creating they are in order to create basic levels of awareness and a top- a connection between Blue KC and the target. of-mind consideration. 15
  • 16. e ienc target aud Target Profiles These five consumer profiles emerged repeatedly throughout our research. Uninsured Invincibles Students/Dependents The target, 18- to 34-year olds, is a These individuals are on top of These individuals are covered by a broad segment. By breaking it down the world. Nothing can hurt them. parent’s insurance plan. They take into five distinct categories, Blue Health insurance is the last thing health insurance for granted. The KC will be able to better reach and on their minds and they do not only time they think about it is when interact with all members of the understand why they should care they are asked to pay the co-pay. They audience and understand their unique until it’s too late. Until they get are used to being insured and having perspectives and needs. injured or become seriously ill, proper medical care and regular they have no knowledge of health check-ups. Uninsured 18-year olds have different insurance or the benefits Blue KC views than a 34-year-old newlywed could offer them. These individuals are health- couple expecting its first child. The conscious and tech-savvy. Like the second paragraph of each profile maps These individuals constantly use the previous profile, this group will be consumer interaction with media and Internet and cell phones. These social reached via social media and mobile lays out how best to approach each media addicts get news and info from advertisements. These individuals will target. Facebook and Twitter and trust their go to parents and friends for help on peers’ opinions. health insurance. “That would never “My dad takes care happen to me.” of that for me.” 16
  • 17. Workplace Rookies Dropped Individuals Young Families These individuals are beginning This profile includes people who will This segment is made up of newlyweds and careers where their employer is be dropped from employer coverage or expecting parents. Married individuals providing health insurance coverage. from a parent’s insurance upon turning are not typically covered by a parent’s This group understands the value of 26. These individuals also understand plan. These individuals want the best health insurance and will purchase. the value of health insurance and want plan to ensure their families are covered. good coverage for a fair price. They They are very cost-conscious and expect Blue KC can communicate with this are living examples of the health care bang for their buck. group while at work via Pandora’s reform and are searching for a reliable online advertisements and social source for facts. We will target this segment via digital- media efforts, as well as promotional TV and positive social media presence. partnerships that prompt consumers The integration of all online efforts New parents trust family, friends and to give email addresses in return for will help Blue KC to create multiple online reviews for information on a chance to win prizes. These emails impressions with the consumer and health insurance. They will conduct will provide sales leads and events will become the expert these individuals extensive research of plans online. drive traffic to the Blue KC website. are looking for on the reform and YouTube uploads and incentives to insurance in uncertain times. be on testimonial commercials will resonate with this profile. “Not right now; “I need this now; “I expect affordable maybe later.” whom can I trust?” family coverage.” 17
  • 18. Reaching the Targets n pla Our strategies lie primarily in digital mediums and out-of-home promotional events. Our integrated 18-25 approach will drive consumers to interact with the Blue KC brand online and face-to-face. Get the Facts. Go Blue. Our first message, “Get the Facts. Go Blue,” caters to the younger media half of the target. Individuals 18 to 25 are less likely to be purchasing health insurance because they are likely on a parent plan. Our goal for this group is to raise awareness. By using a clever, attention-grabbing campaign, we will peak the interest of the younger individuals in the target, giving them a reason to get the facts on Blue KC and health insurance in general. By using social media and trendy online radio sites such as Pandora and Spotify, we will reach the target where they consume media to secure top-of-mind consideration when the target ages into action. 26-34 Online Interaction While you cannot control the conversation, you can be a part Take Charge. Go Blue. For 26- to 34-year-old individuals, our message revolves of it. This target relies on online reviews when making major around interaction and personal experience. The campaign purchases. By creating a strong, positive online presence, you will encourage individuals to “Take Charge. Go Blue.” This can better interact with and understand consumers. is a direct call-to-action targeting individuals who are likely health insurance purchasers. This group wants to be heard. These groups want personal interaction and attention. They live By incorporating an interactive campaign asking individuals online. As a participant in our broker focus group said, “I’m not to upload videos of themselves, this strategy will give them a sure the 18 to 34 [year olds] watch that much TV—they are on chance to voice their opinions. These videos will give real-life the Internet. Online, digital marketing is where it’s at for the ad examples of Blue KC’s service which can be used as testimonial agencies. Newspapers are becoming obsolete because of that.” advertisements. 18
  • 19. Close-up of banner ad to be shown on Hulu. All five target profiles work on their own schedules. They want what they want, when they want it. These groups have busy lifestyles. Because of this, online television sites, such as Hulu, are popular. Plan Content Hulu offers $40 cost per thousand Videos shown during programming impressions (CPM) with a minimum will be content from testimonial videos of $25K in a local market 1 featuring real Blue KC customers. For more information on the testimonial We plan to spend $33,000 per month, videos, reference the “Testimonial” which will cap at 833,000 impressions page. The banner ad will directly per month. Over six month, this totals correlate with the video content. $200,000 with five million impressions. Support Americans spent more than 2.5 billion minutes watching online video advertising in August 2011.2 Hulu generated the highest number of video ad impressions at 996 million and Screenshot from testimonial video to be shown as Hulu ad Hulu led the competition with an average of 45 ads per viewer. 2 Hulu is sixth among the top 10 generators of video ad impressions. 2 Advertising impressions on online television are more than on traditional television. 1 Hulu Budget: 1 http://www.quora.com/Hulu/What-kind-of-CPM-does-Hulu-charge-advertisers $200,000 2 ComScore Metrics 19
  • 20. The individuals in our target like to multi-task and they enjoy constant entertainment. Pandora Internet Radio is a popular source for music on the computer or a mobile device. Plan Content Pandora’s research indicates its 18- Because of Pandora’s specific targeting, to 24-year-old users are best reached we will use the “Get the Facts. Go Blue.” through mobile outlets. On the other advertisements for 18- to 25-year olds hand, 26- to 34-year olds should be and the “Take Charge. Go Blue.” ads targeted online on desktops while at for 26- to 34-year olds. Mock ads can work. This is the basis for our segment be seen to the right and in more detail targeting. in the appendix. Our budget allocates $20,000 per All advertisements are links driving month for six months totaling consumers who click the ads to the $120,000. If desired, Pandora will website where they can explore the produce audio for the ads with five to Blue KC’s information on health 10 production days at no extra charge. insurance and subscribe to an email. Support It is less intimidating to register for an email on a mobile device. 1 Seventy percent of listening hours happen on mobile devices on Pandora. 1 1 Pandora Pandora Budget: $120,000 Geared toward 26- to 34-year olds, this Pandoa ad fits the screenshot to the right. 20
  • 21. Pandora Desktop Ads This Pandora ad is geared toward 18- to 25-year olds. 21
  • 22. Pandora Desktop Ad This Pandora ad is another option for targeting 18- to 25-year olds. 22
  • 23. Pandora Mobile Ad This Pandora ad is the mobile option for targeting 18- to 25-year olds. 23
  • 24. Spotify Budget: $60,000 All Things Digital marketing documents indicate Spotify is the newest social music sharing outlet, and with projections of 50 million users in 2011, by 2013, it will be an important Screenshot of a Spotify ad. platform to reach both segments of the target. Plan Content Front page rectangle ads will run Like the Pandora ads, we will for six months targeting Kansas use the “Get the Facts. Go Blue.” City 18- to 34-year olds. Cost per advertisements for 18- to 25-year thousand per ad is $15.00 and we olds and the “Take Charge. Go expect an estimated four million Blue.” ads for 26- to 34-year olds. impressions. This will cost a total Mock ads can be seen below and of $60,000. in more detail in the appendix. Support This year, the company merged with Facebook creating a sustainable, strong partner in the social media landscape. 24
  • 25. Testimonial Webpage The 26- to 34-year olds belong to the “action group” because they are no longer on a parent’s plan and most of them need to provide coverage not only for themselves, but also for their families. Plan Blue KC will implement a people-to-people strategy to encourage the target to share their real stories online, reminding the audience of the importance of health insurance and the benefits of taking a pro-active approach. Content By integrating the website with social media, Blue KC will encourage users to share their stories. To provide an incentive for customers to produce videos, Blue KC will choose some of the videos to feature as real television spots. Support According to focus group insights, the target tends to trust people who share similar situations. Because of this, viral video sharing is a trend. By adding a testimonial page on the Blue KC website, it will allow for consumers to emotionally connect Sample testimony website for Blue KC with each other. Website Contingency Budget: $10,000 25
  • 26. Blue KC has already created a YouTube channel with educational videos. Currently, the channel subscription is relatively low at seven subscribers. To optimize the channel, testimonial videos and educational videos will be featured on it. This strategy will promote more brand engagement with Blue KC customers, and an emotional pitch is more likely to generate buzz and feedback than an informative one. Plan Self-advertising strategies with a managed brand network are free to create. Using the website contingency budget to design the testimonial page featuring Blue KC’s YouTube videos will encourage users to upload their own videos to the Blue KC Screenshot from a testimonial video page. Also, using YouTube Analytics can also help Support YouTube has 490 million users worldwide1. Blue KC track their audience and video views. Content It generates an estimated 92 billion page views each month. Participants in the “Tell Your Story” campaign will upload their videos to YouTube. For more Over 4 million people are connected and auto-sharing to at least one social information on the testimonial videos, reference network. the example testimony webpage on the opposite page. YouTube mobile gets over 100 million views a day. 1. YouTube Statistics: http://www.youtube.com/t/press_statistics 26
  • 27. New Local Partnerships We propose a partnership with Healthy Meals Inc., a local company that delivers customized healthy meals to customers’ doors. This is a growing trend among healthy individuals, especially among the older audience in our target. Healthy Meals Inc. will: • Offer a 20 percent discount to Blue KC clients • Be willing to put Blue KC’s logo on its promotional materials Promotions with Healthy Meals will provide direct contact with consumers. This partnership will not require additional costs other than shared benefits. Healthy Meals will also host Blue KC’s promotional booth at two events costing an average of $500 for each event. To pursue this partnership, Blue KC can contact Kerstin or Scott Kluck at 816-587-6325. We also suggest a partnership with the Kansas Speedway. While Hexagon Solutions was unable to enter into negotiations with the Speedway, the company expressed a high level of interest in partnering with Blue KC. The partnership would: • Better reach the rural market of the target 18- to 34-year olds • Provide Blue KC with another large local partner Further, holding promotional events at the October 13, 2013 race weekend would allow Blue KC to reach a large audience and cost $30,000, which has been factored into the budget. Partnership Budget: $30,500+negotiations To pursue this partnership, Blue KC can contact Joe Fowler at 913-328-3308. 27
  • 28. Out-of-home This campaign focuses on connecting with the target and meeting them where they are. To further encourage thought and action outside of the online realm, we will meet the target in person through promotional events with Blue KC’s partners. Promotional Booths Booth Set-up Three interns will occupy each promotional booth to engage in out-of-home, face-to-face interaction with the Overview consumers, creating positive experiences. In order to increase return on investment with Blue KC’s current partnerships, Blue KC will set up booths, staffed by Blue KC interns, during local sporting events The booths will have a cardboard cutout of an anatomical such as Kansas City Chiefs games. These booths will attract the younger audience body for people to take pictures with, as seen on page 31. of 18- to 25-year olds with the slogan, “We want your body,” yet also engage the Pictures will be taken by interns and will be posted on older 26- to 34-year-old audience. the Blue KC Facebook page. For more information on the Facebook integration, reference page 32. Budget Booth prices will be negotiated with current partners such as the Kansas City Interns will also have iPads to encourage participants to Chiefs and Sporting Kansas City. Pricing for a booth at the Kansas Speedway will take a short quiz on health insurance facts. After taking be $30,000 for the October 2013 race weekend. Please see page 27 for further the quiz, individuals will enter an e-mail address to be partnership information. eligible for prizes such as the Ugg boots and sporting event tickets which are featured in the quizzes. Promotional We will spend $54,000 to buy embroidered Blue KC table cloths, iPads, a digital thermometers and Blue KC T-shirts will also be given camera, anatomical cutouts, 10,000 T-shirts, 3,000 thermometers with the Blue away as an incentive for individuals to participate. KC logo, signs and brochures to start up the booths. Social media interns will staff booths at events and be compensated according to OOH Budget: the social media budget. $74,650 Our budget also allocates $21,000 for prizes such as Ugg boots and sports tickets to reward quiz takers. 28
  • 29. Contact: Bizi Ferguson FOR IMMEDIATE RELEASE Tel: 913-491-8228 Cell Phone: 913-461-6693 Email: bferg@ku.edu BLUE CROSS AND BLUE SHIELD OF KANSAS CITY TO LAUNCH NEW CAMPAIGN Interactive Booths at Sporting Events and New Advertising Techniques Kansas City, Nov. 25, 2011. Blue KC will host booths at sporting events at the Kan- sas Speedway and Sporting Kansas City arena in the fall of 2013. The booths will be Promoting the Booths interactive with the people in hope to educate them about health insurance. We will advertise these promotional events by distributing the press release on the left to : The booths will have a cardboard cutout for people to take their pictures with, and then photos will be posted on Blue KC’s Facebook page. Quizzes on iPads will be set Newspapers: up to educate participants about health insurance. Participating in the quizzes will also give people a chance to win a prize. The Kansas City Star, The Pitch, KC Magazine and Kansas City Home & Gardens “The booths should really get the people engaged with Blue KC,” John Doe, Sporting Kansas City. Local Television: Channel 5 KCTV-TV CBS, Channel 4 WDAF-TV FOX “We really want to connect to our customers and are interested to see the reactions and Channel 9 KMBC-TV ABC, Channel 41 KSHB-TV we get when the new campaign is launched in 2013,” Jane Doe, Blue Cross and Blue NBC Shield of Kansas City. “I think that we will have a great response.” ### 29
  • 30. Mock screen shots of the iPad quiz Sample Quiz Questions How many pairs of Ugg boots can a broken arm cost? a. 5 pairs of Ugg boots b. 7 pairs of Ugg boots c. 15 pairs of Ugg boots (correct answer) What is a premium? a. The amount a member or group pays on a periodic basis for coverage as defined in the member’s health insurance plan. (Correct answer) b. A reward for living a healthy lifestyle. Which prescriptions are covered by your plan? a. All of them b. None of them c. It depends on your plan. (Correct answer) All quiz questions will lead to a page that explains the answer in further detail and provides links to the Blue KC online education center. 30
  • 31. Photos of participants posing with the cardboard cutout Mock T-shirt design for promotional use 31
  • 32. Plan We budgeted $50 per day for Facebook ads starting July 1, 2013 through December 31, 2013, totaling $9,200. Also, to pay for a custom Facebook page will be $13.25 per month for six months totalling $80. Facebook is currently the most commonly used online social networking site among adults. Through Facebook ads, Blue In order to manage the social media, Blue KC will hire three interns KC can better target consumers. These ads use filters to target for the summer and three interns for the fall. Each intern will be paid the correct demographics such as location and life stages. a $1,200 stipend, which will total $7,200. These interns will update Blue KC’s Facebook and Twitter once every two or three days. All promotional events will also be managed by interns. Content Social media updates will include information about upcoming events, event pictures and educational information. The Facebook page will also coordinate with the on-site events. Pictures taken of people with the cardboard cutout will be posted in an album specified for that event. Participants can then tag themselves and share the pictures with their friends, which will generate more traffic. Ultimately, this will lead participants to the website, increasing interaction. Support Among adult profile owners, 73 percent have a profile on Facebook. 1 Thirty-nine percent of online patients use a social networking site such as Facebook, of those, only a small portion keep up with health related updates. 1 This plan has an estimated reach of 1.1 million people. 3 Social Media Budget: $16,400 Facebook welcome page 32
  • 33. The Pew Research Center indicates that Internet users ages 18 to 29 are significantly more likely to use Twitter than older adults. This is a vital way for Blue KC to communicate and interact with the selected target. Plan Support Using the same interns with the Twelve percent of e-patients use same salary listed for Facebook, Twitter or another service to share Blue KC’s Twitter would update at updates about themselves or to see least once a day. updates about others 1 Content Twitter usage of our target The Twitter account will contain audience spiked in 2005 and has information about upcoming events been increasing each year ever as well as educational health care since. 1 facts that lead to the website. Twitter will also have “retweet” contests Forty percent of Twitter users do where people can become eligible to not tweet every month but watch win a prize by “retweeting” one of others tweet. 2 Blue KC’s tweets. Additionally, Blue 1 Pew Research Institute KC can link the testimonial videos 2 Jeff Bullas Blog 3 Facebook in a tweet with a short description. Twitter is also a great place to interact with customers. If Blue KC sees that someone tweets a question about health care, responding to such a tweet builds trust through interaction. This illustrates potential content that could be used on the Blue KC Twitter. 33
  • 34. Consumer Media Paths n atio Overall, touch points will be integrated through various media outlets. The online testimony ads will lead people to the “Testimony” webpage, and it will prompt people to upload their own videos on Blue KC’s testimony channel on YouTube. We will offer giveaways to participants who post related conversations on Facebook and Twitter. Here are two examples of potential media consumption paths. media integr Online ads “Testimony“ banner ad on Hulu YouTube, Facebook & Purchasing behavior Twitter pages “Testimony“ webpage In-person interaction Cut-out pictures tagged on Facebook Purchasing behavior Cut-out pictures taken on sites Blue KC official website and iPad quizzes 34
  • 35. Goal#1: pre To increase awareness and education of Blue KC among 18- to 25-year-old healthy individuals. Goal#2: dict Prediction We predict that through the use of social media, public relations techniques, and our advertising To gain and retain customers, ages 26-34, plan, the 18- to 25-year olds will be more through changes the reform may cause. In ion & evaluation knowledgeable about health care by the time they addition, we hope to build a trusting relationship have to buy their own insurance. between Blue KC and the customer. Evaluation Prediction We assume this target will most likely not purchase We predict that by focusing more on an emotional health insurance because they will still be on their appeal in advertising and out-of-home techniques, parents’ plans. There will be exceptions, but we people in this target will want Blue KC as their think it would be a waste of resources to try to health insurance provider. get this target as a whole to buy health insurance. These people need more education about why Evaluation health insurance is important, what it can do for These 26- to 34-year olds will most likely be affected someone and become more familiar with health by the reform because they face be dropped from insurance terms. Education is extremely vital their employer’s plan and possibly buying their own for this market, but it needs to be repackaged as insurance. This target will respond best to emotional entertaining or intriguing. For this reason, we appeals from people who reflect themselves. People believe our approach will be successful. tend to trust someone whom they think would not have an ulterior motive in stating their opinion. Our commercial with a young mother and her children discussing their great experience with Blue KC should resonate well with this audience. When it comes to health insurance, people want to base their purchases on a real testimony they can build trust with, and we believe, to succeed, Blue KC should give them just that. 35
  • 36. et Media Plan Budget udg Because the health care reform will take place on January 1, 2014, the campaign advertisements will begin running media b in the summer of 2013 and continue through the end of the year. This should create positive momentum leading up to the reform. The specific budget for our campaign is mapped Miscellaneous Costs out on the opposite page. 1. iPad (3) $500 = $1500 2. Digital Camera = ~$200 3. Promotional T-shirts = 10,000 @ $4 (Instashirt.com) custom $40,000 4. Thermometers for 3,000 = $8,390 5. Interns: three at $1200 tuition stipend $3,600 fall $3,600 summer 6. Promotional Cutout (x2): ~$500 7. Signage (X2) $400 (fastsigns) 8. Table Cloth ~$400 9. Info Handout/brochure cost: 10,000 for ~$2,000 (Smartpress.com) 10. 6 pairs of UGG boots = $1,080 11. 6 pairs of Sporting Tickets= $1,080 “members zone” 12. Pagemodo.com custom Facebook page, $13.25 per month for six months=$79.50 13. Contingency Money = ~$17,000 Grand Total: $500,000 36
  • 37. July August September October November December Total Cost Facebook $1500 $1500 $1500 $1500 $1500 $1500 $9200 Pandora Mobile $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $60,000 Twitter no cost no cost no cost no cost no cost no cost N/A Out-of-Home Speedway $30,000 $30,000 Pandora Desktop $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $60,000 Youtube no cost no cost no cost no cost no cost no cost N/A Spotify $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $60,000 Hulu $33,000 $33,000 $33,000 $33,000 $33,000 $33,000 ~$200,000 Out-of-Home $500 $500 $1,000 Healthy Meals Total:420,200 37 r
  • 38. Recommendations s ion Based on our primary and secondary research findings, we suggest exploring four major areas that are not directly incorporated into our campaign which focuses mainly on advertising and reach. al recommendat Plan Benefits Extracting from the insights gathered in our eight focus groups, these are three benefits our target would like to see included in health insurance plans: Wide Network of Medical Resources “I travel a lot for work. Having a wide network and knowing I would be covered overseas exactly demonstrates the reason to have health insurance.” - Kansas City Focus Group Rewards for Living a Healthy Lifestyle “People love rewards as return on investment. Gym memberships or other preventive care [related benefits] are good ideas.” - KU Focus Group tion Best Coverage for the Money “I would be willing to pay a little bit extra each month to receive more benefits and better coverage.” - St. Joe Interview di By incorporating these three benefits, customer satisfaction in the target will increase. Moreover, encouraging a healthy d lifestyle can lower healthcare costs in the long run. a 38
  • 39. Logo Focus group research indicated multiple consumers felt the new logo was promoting Kansas City as a travel destination. Although consumers have high recognition of the blue cross and the blue shield symbols, the consumers felt “Blue Cross Blue Shield” needs to be present in text and symbol form in the logo. Old Logo New Logo Proposed Solution “Too many words for a logo” “Looks more like a logo” Recognizable, but the tagline is too Simple and clean, appropriate wordy causing people to miss it length for a tagline Pro: spells out the company name Company name should be present Text and symbols compliment each Symbols and text look separate other 39
  • 40. TV Commercials We showed Blue KC’s TV commercial to the KU focus group participants to test their reaction. Overall, most participants agreed the commercial demonstrates Blue KC’s local presence. They said “local buying“ is a trend now, so Blue KC should keep this element. However, they think the dialogue between the two actors was unrealistic because in real life, they do not talk like that when they play video games. The only realistic part of it is one actor saying he thought he did not need health insurance. Keep it local and realistic Realistic situations can be: a prescription talk while a roommate is sick; job searching after college graduation brings up conversations about the need of health insurance; consequence showing commercial is also considered powerful. Less hard-selling, more thought-provoking Most participants found Cigna’s commercial powerful because it was not selling them to buy health insurance plans. Instead, it pushed them to make a change for themselves. Guide consumers back to the website The official website is where consumers can get most information. No matter what campaign is pushed, the final destination of all the pitches is your website. 40
  • 41. Broker Strategy “People will always need guidance.” Brokers have been an important component to Blue KC’s sales force, and as changes arise and uncer- tainty continues, these front-line relationships will remain crucial. It is important to understand how the broker role will change because these relationships should be maintained as a source of education and support for consumers. Suggestion We suggest reaching out to employees through bro- kers by offering educational materials to clients with existing group plans. This will encourage retention of employees who may be making the switch to the exchange. These materials will be branded with the “Take Charge. Go Blue.” segment of our strategic messaging. In a focus group of eight local brokers who work specifically with Blue KC’s target audience shared insight into how their role will remain as important as ever. “[The exchange] will be very confusing All quotes are from the broker focus group. for the individual and it’s going to We will play a bigger role.” 41
  • 42. Website Simplification Education Center Update With 80 percent of American adults online, Blue KC’s website is one of the most important venues for communicating with customers (Pew 2011). Currently, the site is well organized and informative, but a few adjustments can increase return on investment. “Education Center” Update Updating the “Education Center” with a dominant visual will draw in the user, prompting them to spend more time on the page. • A scrolling banner’s movement will instinctively draw the eye in, teasing the brain to be alert and connect the visual, text and movement. • The Wireframe on the opposite page provides a visual representation of what the redesigned Education Center website page would look like. Quiz Integration Blue KC must also Include the quiz used at PR events on this page of the website. • Having an interactive and fun educational tool will position Blue KC positively in the consumer mind. • Blue KC will make learning interesting and fun with these interactive, easy-to-understand media. 42
  • 43. BLUE KC LOGO SEARCH BAR The Wireframe The wireframe to the right provides EXISTING BUTTONS TO OTHER PAGE CATEGORIES a visual representation of how the updated Education Center page HEALTH INSURANCE should operate. Incorporating BASICS existing design elements, such as the HEALTH PROSPECTIVE Blue KC logo, search bar and category WELLNESS BASICS SCROLLING BANNER divisions at the top of the page will VISUAL-- will change along WEEKLY CHALLENGE keep the design fresh and unified with banner tabs to the left with the rest of the website. TERM GLOSSARY WELL AWARE SUBHEAD TEXT DESCRIBING PAGE: Become well aware about your health and wellness. Read articles about healthy lifestyles, nutrition, medical and treatment updates and prevention. GO BLUE EVENTS TESTIMONIALS USERS GO TO Get a quote Learn about Screenshot YOUR WEBSITE TO from Blue KC upcoming and link to DO SOMETHING. and TAKE events and testimonial CHARGE. contests video sharing page MAKE IT EASY. HOW MANY NEW HONDA CIVICS DOES A BROKEN TAKE ARM COST? FIND OUT HERE. THE TAKE THE BLUE KC INSURANCE QUIZ. QUIZ GET THE FACTS. GO BLUE. 43
  • 44. s tion hexagon solu HEXAGON SOLUTIONS solving your problems from every angle We would like to give a special thanks to: Blue KC Brielyn Dickerson Cheryl Kober David Gentile Denise Linville Diane O’Byrne George Weyrauch Hyunjin Seo Jan Butin Jeff Browne Kim White Marilyn Rausch Matt Anthony Mike Swenson Our classmates Our families and friends Our focus group participants Ramsey Moshen Rich Claussen Rob O’Byrne Sherry Gibbs Skip Quimby Sue Johnson The University of Kansas William Allen White School of Journalism And everyone who has contributed to our campaign in any way 44
  • 45. Bizi Ferguson Meghan Nuckolls Social Media/PR Director Account Planner bferg@ku.edu meghannuckolls@gmail.com Hexagon Solutions Kathleen Kennalley Amanda Roberts Creative Director Account Executive kathleenkennalley@gmail.com alynr08@gmail.com Josie Ho Lyndsey Carrel Research Director Media Planner josie_ho@hotmail.com lyndsey@ku.edu 45