2013 04 22 Profiling Deployment

CONSUMER PROFILING APPLICATION DEPLOYMENT PLAN

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April 2013

Philip Morris International 2012 - Confidential

Summary

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1. BACKGROUND

2. CONSUMER PROFILING APPLICATION DESCRIPTION

3. DEPLOYMENT PLAN

Profiling Flow

CPA – Steps &Timing

Pilot phase

Review phase

CPA Live

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PMI CE Model

Create a consumer journey with

long-term personalized

communication across all

relevant touch-points at the right

time and intensity.

How to Achieve it? Brand communication & CE tailor made on

LAS profiles & needs .

Engage LAS with emotional, credible, relevant & personalized messages.

PROFILING

Mandatory process to better understand our LAS needs as to address them in a relevant and personalized manner.

Profiling pillars: Life attitudes & Personality Traits Interests / Hobbies

MASS

TARGETED

PERSONALIZED

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BACKGROUND


BACKGROUND – Defined Steps

Develop a CONSUMER PROFILING APPLICATION to identify the right profile for each LAS

Identify an appropriate, customized LAS CONSUMER PROFILING:

Relevant for Romanian market, adapted to Romanian realities

In line with the project’s objectives

To consider the Key pillars defined

Deployment of the Consumer profiling within the project: Bucharest/Top 6 cities

Get learning and extend on other brands (L&M)

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CONSUMER PROFILING APPLICATION DESCRIPTIONIOS Application on iPad


Consumer Profiling Application screens

STATEMENT SECTION (10 Life attitude statements)

VISUAL SECTION (5 Questions)

Holiday Music Life style InterestsWeek-end


Consumer Profiling Application screens

CONSUMER PROFILES (5 Profiles identified)

THE HIPS THE POPS THE PALS

THE NESTERS THE CONFINED


The PALS

Exploration

Control

Affirmation Integration

The POPS

23%

13%

The NESTERS

18%

27%

The HIPS

Note:

• % are calculates at national urban level

• Level among LA-35 LA smokers.

• Base of analysis: 1,000 LA smokers

Profiles - Main attitude

The CONFINED

19%

The POPS

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DEPLOYMENT PLAN


Profiling General Flow

Start to activate LAS with PERSONALIZED message & targeted brand

CE Interaction with LAS (LAMP/Retail)

Apply CPA to LAS

Define LAS Profile

Takes away in line with LAS with

Profile

Name Generation

Match LAS with Trade Profiles


Flow in MING application – CPA included

Open MING Name Generation

SAVE

all

colle

cted

dat

a in

MIN

G

Apply CE Interaction

Brand selection Verify history

Open & Apply Profiling

Con

sum

ers

NO

T pr

ofile

d

CE team visualize the LAS details & history => address him/her in a personalized manner


DEPLOYMENT – Usage of Application

Define campaigns / PrizesPersonalized CE/Brand approach

Discover a talent you never knew you had! Come to Entourage with 3 friends and let yourself engaged!

Dare to explore new skills! We’re sure you’ve got what it takes! Come and see for yourself!

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Targeted Brand & CE ideas, mechanics

Hello George,

You are curious and dare to explore any new or unexploited paths;

You are a leader and inspire those around you with your energy and your style of life;

You set the rules of the game like Marlboro does. Continue to lead other people around you and encourage them!

Don’t be a maybe, Be Marlboro!

Create different CE & Brand messages, define campaigns & prizes based on CP. Example: LAS LA-29, HIPS Profile, Marlboro target

“Be yourself! Your passion to explore will conquer the world!”


CP Application –Timing & Steps

APR MAY JUN JUL AUG SEP OCT NOV DEC

PILOT REVIEW CPA LIVE

Bucharest

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1. PILOT PhaseTest the application on real environment. 2 weeks (April 2-14, 2013)Get feed-back from CE team & LAS.

2. REVIEW PhaseCentralize & Analyze the Pilot Period feed-back . 1-3 weeks (April 15 - May 11, 2013)Make review and adjustments on CP Application. Solve the bugs (if any).

3. LIVE PhaseDeploy CPA. Profile target LAS & start to personalize the brand & CE message Mid May – Dec 2013Analysis of collected data => define improvements.

4. Consumer Profiling Version 1.1Start to develop CPA Version 1.1. => If needed Jan 2014

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PILOT phase


Pilot period

APR MAY JUN

PILOT

Bucharest

Timing: April 2-14, 2013

Objective: Test &get feed-back on application; Identify most proper locations &timing to apply CPA

Team: 1CE Team (2CEday + 2CEevening +2TL +1CES) + IS + 121 + Brand Team + Research

Training: April 2nd , Otopeni offices; Target Audience: Focus on LA-24 y.o. (max LA-27) ; ~200 new names in DB, profiled LAS of Marlboro, Kent, Dunhill, Pall Mall, Winston (focus on Kent LAS)

Objective: Quantitative: Retail: 8 contacts/day/CE; LAMP: 5 contacts/day/CEQualitative: Reach targeted LAS – 100%

Accuracy of Data collection – 100% validation with Police

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PILOT Period - Deployment

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Objective: Engage PM employees with new Marketing initiatives. Test &get feed-back from colleagues on CPA.

Participants: Rosetti PMT employees. Rewarded with printed cards with their profile.

Objective: CE team test the application on LAS real environment: LAMP/Retail. Get feed-back from CE team &LAS.

Actions: Test various types of locations at different time of the day. Reach diversity of LAS.

INTERNAL ENGAGEMENT

LAS PROFILING


STEP 1: CE interaction

STEP 2: Name Generation

STEP 3: APPLY PROFILING Tone of voice: Friendly, Informal, Extension of previous steps dialog.

Profiling Speech Flow:

CE: “Wow, you are great! Now, I have another question for you: how well do you know yourself? “

LAS: “I think I know myself…. .”

CE: “Marlboro challenges you to discover new things about your personality. What kind of person are you? “

LAS : “I am rather extrovert. I like to party ….. .”

CE: “Ok. Let’s see what our quiz says. It’s very fun! Are you ready?”.

Continues with Profiling application and Profile definition & description.

CE: “And, because you are an Explorer, you will receive as gift this watch, especially design for your profile. Wear it and show it also to your friends!”

CE Speech

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PILOT Phase - Deployment - Results

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PILOT PHASE - Results

Achievement Target Achievement vs. target

Total LAS profiled: 146 200 75%LAMP: 106 60 177%Retail: 40 140 29%

TOTAL ACHIVEMENT: 146 LAS Profiled

Split by type of location:

Coffee shop: 36%Pub: 14%Supermarket: 38%Mall: 10%Other shops: 1%

Split by area:

Old City: 69%Other Downtown: 9%Campus: 12%Neighborhoods: 10%

Best locations (those with highest no. of LAS profiled):

Arcade: 25%La Historia: 14%St. Patrick: 10%


Feedback on Consumer Profiling Application

“It’s a really nice interaction. I think it’s a great idea to have different prizes for each personality.”“I like the idea of profile. It makes it personal because you show interest in each of us.” “Your app looks absolutely great! And I wasn’t expecting to be so heavily rewarded.” “I like the way you think about getting to know the people that smoke Marlboro. It was a nice and personal way to interact. I hope to see you soon!” “The questions are fun to answer, but I can’t decide on the pictures that easy.” “I think many of the pictures represent clubbing, traveling or activities for couples. They mean the same thing for me.” “You should include in pictures other activities for women, like shopping, lazy weekends, etc.”

LAS FEED-BACK

CE TEAM FEED-BACK

Application Very well received by LAS => enjoy&spend ~15 min on it . No issues on application usage, easy to apply it. Very smooth transition from MING to CPA&back to MING.

Locations Difficult to run CPA in most of Retail locations and also in

some other types of locations during day-time. Fixed Profiling Stations => not so recommended as CE not

able to select target LAS.

CE team All CE teams can run CPA but optimizing activities as to

reach both targets: Profiling and Contacts. Pilot Profiling target => rather high for Retail CE team. CPA more easily run by LAMP teams.

Current proposed pictures in the CPA, to be analyzed & replaced according to the feed-back.

Run CPA with focus on LAMP & recommended day-time areas &timing => CE Team to prepare list of locations & proper timing to activate there.

Quantitative target => to be adjusted according to the results recorded in Pilot period.

Only 1-2 Profiling Stations to be installed (caravans) as test.

KEY ACTIONS TO BE TAKEN

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Review phase


Review period – Timing & Activities

APR MAY JUN

REVIEW

Bucharest

REVIEW Period

Timing: April 15-May 11, 2013 (1-3 weeks => except May 1st/Easter period).

Objective: Implement necessary reviews &adjustments on application. Define & develop final activities & actions for LIVE phase.

Actions: Analyze the Pilot Period. Issue reports.

Discuss and evaluate within the team the necessary adjustments (ex: pictures).Create list with focus profiling locations & timing to activate in.

Review Team: 121 with support (CES + IS + Brand Team + Research).

CE Team: Pilot team continues to activate, to profile LAS & provide feed-back on application &adjustments implemented.

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LIVE phase


MAY JUN JUL AUG SEP OCT NOV DEC

CPA LIVEBucharest

LIVE Phase – Timing & Steps

Timing: Mid May – Dec 2013

Objective: Profile target LAS from Bucharest.Define profile for each LAS & gather key elements for differentiation. Start to personalized the brand & CE communication based on each LAS profile identified and key elements for differentiation (sphere of interests, life attitude, etc).

Team: All CE teams depending on the context (locations, timing, etc).

Audience: Focus on LA-27 y.o., Marlboro &Target competition LAS.

Target: Quantitative (Recommended): ~500 names profiled / week / all CE teams (15k new names profiled => until end of year).

Qualitative: Reach targeted LAS – 100% Accuracy of Data collection – 100% validation with Police.

Locations: All, but with focus on LAMP & special day-time areas defined during Pilot & Review Stage.

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Objective: Explain the purpose & importance of CP project and application Training on application => 1 session – Mid MayParticipants: All CE teams Bucharest (LAMP & Retail) & 121, IS, Brand team representatives

Run CPA mostly in locations where LAS spend more time

Bars, Pubs, Coffee shops, Restaurants, Clubs, Terraces: Locations visited by both Retail & LAMP teams => identified by CE teams.Selected Shops, Hyper/Super market (ex: Carrefour, Mega Image) Locations visited by Retail teams => identified by CE teams.Caravans (considered more as fixed locations): 2 pcs. Locations where activate both Retail & LAMP teams To be positioned in key places (Old city, Regie Campus area)

Objective: Profile target DB LAS (LA-29, Most Active LAS, ~ 5k)Mechanics: Send DB LAS to Caravans or targeted locations => communication via SMS/email

TRAINING SESSION

Recommended LOCATIONS

DATABASE Profiling

LIVE Phase – Deployment Principles


Participants: All CE teams (20 CE / 5teams )

Target (qty): Min. 8 contacts / week / CE 8x20CE = 160/week(3 days)/ all teams

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LIVE Period - Deployment Recommendations

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Participants: All CE teams (40 CE / 10 teams )

Target (qty): Min. 8 contacts / week / CE 8x40CE = 320/week(5 days)/ all teams

Retail LAMP

Mechanics: CE Interaction Name Generation APPLY PROFILING

Reward: Profiling watches (different type for women and men) Printed cards with their profile

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2013 04 22 Profiling Deployment

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