Transcript

Brand Positioning &Advertising Strategy

James FreyJames FreySVP, Branding & AdvertisingSVP, Branding & AdvertisingPresident, PacifiCare of CaliforniaPresident, PacifiCare of California

Over the past year we have surveyed:

400 consumers in CA (65% non-senior and 35% senior),400 consumers in other PHS markets,

150 consumers outside our current markets,400 more consumers nationwide via the internet,

67 providers,101 benefit managers,

124 brokers and consultants,and

conducted 39 focus groups

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Why Focus on Consumers?Consumer-Driven

3rd Party-Driven

Total

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Total Awareness – Non Members

California

Other PHS States

Non-PHS States

97%

84%19991999

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Insurance HMO QualityCare/Doctors

GoodService

GoodCompany

MiscNegative

Senior-Related WestCoast

Brand Image

n=800 consumers

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What is most important in a health insurance provider?

GoodValue

InnovativeLowCost

ResolvesProblems

Simpleto Use

StandsBy

Promises

CaresAbout

Me

HighQuality

Trustworthy

Most Important

2nd Most Important

Bottom Line for Consumers:

1. Concern

2. Quality and Trustworthiness

3. Problem-Solving

And more than anything else, don’t just say it…

Prove it to me.

Brand Positioning

PacifiCare believes Caring is Good.

Doing Something is Better.

The Essence of PacifiCare

I understand my role in protecting and delivering on the promise.

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10%

20%

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100%n = 2,213

Agree Disagree

Agree

Disagree

Strongly Agree

Strongly Disagree

The brand makes me feel proud to work for this company.

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Agree Disagree

Agree

Disagree

Strongly Agree

Strongly Disagree

There’s something else consumers told us…

Media Tactics

Television• Best medium to make an immediate, emotional connection with consumers• TV – 75% to 90% attentiveness levels• Print and Radio – 30% to 80% attentiveness levels

Media Mix• Television and Print

Media Strategy• Schedule TV in condensed weeks to maximize impact• Own nights in Prime (e.g., Friday’s on NBC)• Regional Consumer Print will focus on women

Secure Horizons DRTV Spot

“Special Bin”

Secure Horizons’ Focus Groups’ Reactions

“Boy, they knocked it dead. That’s a good little ad.”

“It cuts through the confusion from all the clutter on healthcare.”

“A company that stands behind their word.”

“Go with them (Secure Horizons). They are top of the line. They offer more.”

“I need to call the 800# to find out more.”

Secure Horizons DRTV Schedule

May 6 - June 28

Tucson

Los Angeles

San Diego

Sacramento

Phoenix

San Francisco

Good Morning America – ABCToday Show Weekend – NBCFOXCBSNBC NewsKCAL 9Bonanza – Channel 51 in AZ

Secure DRTV Results (first 20 days)

30%Close Ratio

70%Lead Ratio

525Calls per Week

65% of campaignDollars Spent

Goal

12% increase in ad spend with a 40% increase in call volume versus 2001

46%

85%

743

62% of campaign

Actual

PacifiCare Television Spot

“PacifiCare Anthem”

PacifiCare’s Focus Groups’ Reactions

“The ad definitely stands out and grabs you.”

“You’re like these people. They are your family, your friends, etc. They are real.”

“They got across to me that from a young baby to an adult, they’ll take care of me. It’ll be a lasting thing.”

“They are willing to back up what they say. It’s tangible care. They will do what they say.”

“It says, ‘We’re not kidding; we’re really going to do something’.”

PacifiCare Push Television Schedule

June 3 - June 28

Los Angeles

San Diego

San Diego Program Highlights

Must See TV (Thurs.) – NBCWest Wing – NBCCSI – CBSEverybody Loves Raymond – CBS5-second billboard – ABC Local News5-second billboard – NBC’s Today ShowOprah – ABCRegis & Kelly – ABCThe View - ABC

Los Angeles Program Highlights

Disney Movies - ABCThe Practice - ABCJudging Amy - CBSFamily Law – CBSEd – NBC Closed Caption Sponsorship – ABC5-second billboard – CBS Local NewsOprah – ABCRegis & Kelly – ABCMartha Stewart - CBS

PacifiCare Summer/Fall Television Schedule

Aug 12 – Sept 6Oct 7 – Nov 22

Tucson

Los Angeles

San Diego Phoenix

Tulsa

Oklahoma City

Portland

Seattle

Las Vegas

Denver

Bottom Line for Campaign:

1. Improve Awareness in CA to over 90% for both brands

2. Improve Awareness in non-CA markets by 30%

3. Improve perception of “Cares About Me” by 25%

4. Improve perception of “Has Programs that Help” by 25%

5. Decrease cost per lead (Secure) by 20%

6. Increase direct mail response rate (Secure) by 75%

7. Drive 2003 net membership growth