ADVANCED MANAGEMENT SOLUTIONS SHARPEN CG MARKETING S COMPETITIVE EDGE

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1 A CONSUMER GOODS TECHNOLOGY WHITE PAPER ADVANCED MANAGEMENT SOLUTIONS SHARPEN CG MARKETING S COMPETITIVE EDGE SPONSORED BY

2 Advanced Management Solutions Sharpen CG Marketing s Competitive Edge Consumer goods marketers are facing a number of new challenges, brought on by a combination of economic woes, shifts in consumer behavior and a rapidly changing media and communications landscape. Within CG enterprises themselves, the ability to create effective marketing campaigns has long been hindered by inefficient, siloed organizational structures that complicate execution processes and obscure visibility, with a lack of communication among departments that hinders the development and execution of a single, consistent creative vision. However, a new breed of comprehensive, end-to-end marketing automation solutions are providing greater visibility into every aspect of marketing from the initial creation of a creative brief to the granular tracking of a campaign s effectiveness. Such solutions can shorten time to market and produce both efficiencies and hard dollar savings for CG companies, while giving them greater control over the assets that make up their marketing campaigns as well as the campaigns themselves. If you re a brand marketer at a consumer goods company, you might be forgiven for feeling a bit beleaguered. Consider some of the recent developments that have added challenges to what was already a high-pressure job: The worldwide economic downturn has many consumers choosing private label brands, and margin-conscious retailers are accelerating the trend by giving these brands more prominence and shelf space. Marketing materials and campaigns increasingly must be customized for different countries, regions and even customers while still maintaining a consistent brand image and promoting a positive marketing message. The effectiveness of traditional marketing and communication vehicles (i.e. print and other mass media) is declining. Newer vehicles (such as social media, Web 2.0 communities and mobile communications) show promise but are still in early stages of development. With little history to go on, the risk of potential missteps remains high. In addition, a watch every penny corporate attitude has marketers scrambling to demonstrate anew the effectiveness and ROI of their campaigns campaigns that are frequently being conducted with more limited resources. CG executives recognize the importance of measuring their marketing: in the Consumer Goods Technology 2009 Sales and Marketing Report, conducted with AMR Research, Improve and better measure ROI on marketing spending topped the list of primary sales and marketing business strategies driving company success for 2009, with 27% of respondents. An even higher percentage, 32%, anticipates that this will be an important strategic element in MARKETERS DOING MORE WITH LESS The enormous pressure to do more with less due to the slowdown in consumer sales is the biggest challenge being faced by companies and marketers today, says Michael Ferrara, a former Senior Vice President of Marketing for Coty. It will be a lean year ahead for many, but marketers in particular are likely to feel much of the economic impact as staff and marketing budgets are cut. Ferrara, who now works with Mphasize developing innovative solutions that address marketing spending, productivity and ROI, explains the confluence of trends that are exacerbating CG marketers challenges. Doing more with less is even more difficult to accomplish because of the fragmentation of media, says Ferrara. The number of emerging media (wireless, mobile, Web communities, point of sale and other in-store technologies) and traditional media exploding is making it nearly impossible to understand how best to connect with the consumer to engage, convert, and build brand equity and loyalty. The productivity of traditional marketing levers is declining, and there s no denying that a dollar spent on advertising today achieves less return than it did five years ago. Industry experts agree that CG companies are facing new challenges reaching their ultimate customer, the consumer. As we enter into the protracted recession, the shopper has changed, with the sales and marketing tactics of consumer products companies attempting to keep pace, writes Lora Cecere, Vice President and Head of Research at AMR Research, Inc., in Arming for War: Sales and Marketing Technologies Spending on the 2 Consumer Goods Technology October 2009

3 Rise, (AMR Research, August 2009). And it s not just the ultimate consumer who must be more precisely targeted, but also the retailer. In another example of doing more with less, Cecere writes: As product mix changes, with companies selling fewer high-end products and facing greater competition from private-label brands, the account teams are equipping to do battle. To accomplish this, there s a shift in power from the traditional brand management approach of one size fits all, with every retailer getting the same program, to account-specific programs by store cluster driven by banner strategies. MARKETING AUTOMATION ADDRESSES KEY CG ISSUES The need for more targeted, measurable marketing campaigns, delivered more quickly and more efficiently, is creating a strong need for marketing automation. Part of the mandate to do more with less includes doing more with less people, notes Ferrara. Marketing automation is definitely an integral component of customer relationship management, which is very difficult to do well if at all without good automation. There are several other key processes that can be automated to save tremendous manual time, including customer segmentation, data integration and campaign management. Ferrara s wish list for a marketing automation solution would include its ability to bridge internal divides by creating a centralized repository for the data and assets that go into marketing campaigns. Almost everyone has felt the pain of dealing with disparate systems across their organization, says Ferrara. When I was at Coty and Unilever we invested in marketing technology from a tactical angle, which left it in silos by product line or geography. We later sought to integrate globally under one platform. As the pressure to do more with less PRIMARY SALES & MARKETING BUSINESS STRATEGY DRIVING COMPANY SUCCESS STRATEGY Improve and better measure ROI on marketing spending Improve sales force impact and productivity Higher quality of engagement with key channel stakeholders Drive superior product development & innovative ways to market through richer downstream insight Improve brand presence at the shelf Build market share through selling directly to consumers via the Internet Deliver superior customer service and improved management of adverse events, TPM, etc. Improve enterprise collaboration with internal partners to improve NPL, demand visibility, etc. 8% 8% Source: 2009 CGT Sales & Marketing Report 9% 9% 14% 14% 14% 14% 2009 ANTICIPATED % NOTE: 2009 total percentage equals 97% with the remaining 3% being to other (not shown on the chart) 27% 32% October 2009 Consumer Goods Technology 3

4 Advanced Management Solutions Sharpen CG Marketing s Competitive Edge increases, it would be phenomenal to have all disparate data sources pulled together into one seamless system, Ferrara adds. That would allow people to spend more time analyzing and strategically planning their business, versus the time wasted finding and integrating the data they need to analyze. Doing more with less is even more difficult to accomplish because of the fragmentation of media. The number of emerging media (wireless, mobile, Web communities, point of sale and other in-store technologies) and traditional media exploding is making it nearly impossible to understand how best to connect with the consumer to engage, convert, and build brand equity and loyalty. Michael Ferrara, former Senior Vice President of Marketing, Coty Kodak now offers end-to-end marketing automation solutions that address many of the specific challenges facing consumer goods companies. The solution includes Kodak s Design2Launch Solutions, which provide digital asset management and Creative Workflow Management (CWM) capabilities. Kodak s solutions integrate with Enterprise Marketing Management (EMM) software from Aprimo, which provides financial planning and campaign management capabilities. According to Jeffrey Hayzlett, Kodak s Chief Marketing Officer and Vice President, the combination of EMM and CWM solutions provides CG marketers with management, visibility and tracking tools that allow them to: Manage multi-channel campaigns from campaign planning (management, workflow and project management) through segmentation design and execution; Track marketing budgets, manage spend and calculate ROI by campaign; Manage all aspects of marketing by viewing a full dashboard of organizational marketing activities, to ensure they are in alignment with key business objectives; and Efficiently track and manage creative projects with up-to-the-minute status information. Other functionalities of Kodak s solutions draw on the company s legacy in digital asset management, and combine it with new visibility and workflow process automation capabilities: Retaining metadata and rights usage management; Improving productivity with an online streaming review and approval process; Simplifying data exchange via comprehensive file sharing; Securing files with control over multiple authorization levels. BENEFITS OF ENTERPRISE MARKETING MANAGEMENT Enterprise Marketing Management (EMM) solutions provide marketing departments with integrated tools for the many processes involved in marketing campaigns from marketing budgets to creative production plans to building and maintaining large customer databases. With many CG companies seeing the need to exert greater control over the expanding scope of their marketing activities, such management solutions provide valuable tools for both internal and external collaboration, as well as more precise targeting of their marketing campaigns. Kodak has partnered with Aprimo, which offers a web-based, service-orientated Enterprise Marketing Management suite. Key business functions included in the suite are planning and financial management, marketing resource management, lead management and campaign management. Aprimo has a very good platform for marketing workflows. Kodak complements the Aprimo platform with our creative workflow, asset management, and content management of the graphics files used in marketing communications, says Julie Skipper, Global Coordinator for Worldwide Strategy Development at Kodak. We ve taken an end-to-end approach, providing platforms that easily integrate workflows, data management, tracking and reporting, and performance measurement, so that companies can digitize and automate their marketing supply chains. An EMM solution helps CG companies centralize control over their brand content and messaging including the visual components that are so important 4 Consumer Goods Technology October 2009

5 to consumer recognition of products while still allowing for a regionalized, customized approach to different geographic markets or customer segments. Most marketers would like to be able to provide targeted messaging, allowing different regions to customize market messages, or even product packaging, for themselves, says Skipper. But typically the infrastructure that s involved has been too complex to allow them to do that. Our solution gives a company control at the central marketing level with flexibility at a regional, local or franchise level. The EMM solution also ties in with marketing execution functions, extending through both traditional and non-traditional channels and media, encompassing print ads, catalogs, point-of-sale and other in-store materials, but also s, Web banner ads, and other types of electronic communications. BENEFITS OF CREATIVE WORKFLOW MANAGEMENT The Kodak EMM solution integrates easily with Kodak s Design2Launch, a solution set that was specifically designed for the CG market, according to Ron Malloy, Vice President of Market Strategy and Sales for Design2Launch Enterprise Solutions for Kodak. He describes Design2Launch as a dedicated set of applications and processes that help organizations streamline their overall creative process, along with technology that reinforces best practices, in an easy-to-use, Webbased application. CWM solutions enable an organization to go from their initial concept, embodied in a marketing brief, through the entire set of creative and review processes, says Malloy. It also allows for review and approval through a centralized, Web-based sharing platform. This allows people within the organization on the creative team, as well as those at an outside agency, to collaborate effectively on artwork, or a product label, or the marketing material. It also allows for review, annotation, and feedback in a real-time environment, all leading up to executive sign-off on a given piece of material. This type of collaborative technology produces strong benefits. In the case of packaging artwork, for example, AMR Research notes that It takes 22 days on average for a consumer products company to review and approve packaging artwork. But using collaborative artwork management technology, this time can be reduced by 30% and packaging scrap by 1.2% (as a percentage of revenue). ( Want to Reduce Artwork Approval Time by 30%? Try Collaborative Artwork Management, by Lora Cecere and Fenella Sirkisoon, AMR Research, July 2009.) Malloy notes that the Kodak CWM solution works for a variety of marketing pieces designed for multiple communication channels. The solution helps in streamlining the production aspect of creating the marketing material, says Malloy. This could be the artwork or label for the packaging, or a website associated with the product, or a direct mail piece to be used in announcing the new product. Once the marketing asset is created and approved, the Design2Launch solution enables the CG company to retain it and use it in different geographies, translating it for local markets if necessary, further extending the asset s lifecycle and value to the CG company. There s a shift in power from the traditional brand management approach of one size fits all, with every retailer getting the same program, to account-specific programs by store cluster driven by banner strategies. Lora Cecere, Vice President, AMR Research Another way the solution adds value is through brand content management. Because of the number of mergers and acquisitions that have taken place in the market, we re seeing that organizations want to maintain strong control of their brand images in the marketplace, notes Malloy. Companies also want to communicate the same message regardless of the marketing channel that they use. So a big part of the Design2Launch application focuses on brand content management not just images but also, for example, the copy that s associated with the way the brand is represented in the market. This can also apply to different channels, such as packaging, Web content or even video. As CG marketers seek new ways to communicate and interact with consumers, there will be increasing pressure to align all marketing elements particularly those October 2009 Consumer Goods Technology 5

6 Advanced Management Solutions Sharpen CG Marketing s Competitive Edge delivered via newer electronic and social media channels with the designated brand messaging. From a brand marketing management standpoint, [the Kodak system] allows top-level visibility into the way the brand is presenting itself worldwide. That ability to see across a business, or across different campaigns, is a powerful tool. John Formella, Worldwide Marketing Manager, Consumer Goods, Kodak BRINGING DISCIPLINE TO WORKFLOWS A key strength of the Kodak solutions is their ability to tie creative and marketing processes to organized, trackable workflows. John Formella, Worldwide Marketing Manager for Kodak s Consumer Goods business, explains that his group now uses the Design2Launch solutions to support its marketing activities. As an example, he describes the workflow leading to an approved marketing claim (for example that a product works faster than its competitors), which is part of the Design2Launch system: Product marketing people work on features or competitive advantages of a product or service, says Formella. The workflow then includes reviews by legal, health and safety, ecology/sustainability, and regulatory requirements within the channel or worldwide region that needs to review or approve it. Once a claim has gone through all these processes and become approved, any group would be able to peruse the library of approved claims, and pick them up as appropriate for their particular communication, says Formella. When extended to all the elements that go into marketing campaigns, the benefits to a CG organization can be felt quickly. Malloy describes the experience of a health and beauty care CG company that implemented Kodak s solutions. Over a six-month period, they showed a 3 increase in overall process efficiency, from the initial creative brief all the way through to the final production sign-off for artwork, labeling and marketing materials, he says. They were able to move faster and use fewer resources. In fact, they were able to cut out close to $600,000 in hard dollars that had been classified for rework, pre-press proofing and external design agency charges. Another impressive statistic was that the CG company cut the number of status meetings, held to update everyone on the progress of projects, in half. Because the Design2Launch tool provides creative workflow management capabilities within it, the tool automatically checks itself off when a tab is completed or an action is taken, Malloy explains. With real-time visibility to where projects are in the process, there s less need for people to get together or to force them to update Excel spreadsheets it s all right there on the desktop. The solution also helps marketing departments be more proactive. It s an inherent part of the application to push things forward, for example by sending warnings about hiccups or potential roadblocks to the appropriate people, says Malloy. That way an individual is not just waiting for something to arrive, but is proactively reminded if there s an element missing that will hold things up, so he can take action to address it. CREATING A CENTRAL REPOSITORY FOR MARKETING ASSETS The internal adoption of Design2Launch at Kodak has already begun to improve long-standing organizational challenges, according to Formella. What you often find in CG businesses is siloed behavior, with each group or agency holding on to its own assets, he says. When other groups ask for those assets to be shared, they re often not easily retrieved or even to find. However, with the centralized asset management that is built into the Kodak solutions, if an asset is created at the worldwide level, the regional marketing groups can then pull that asset rather than originating something from the very beginning, says Formella. If the platform and message for the asset is already established, it s then easier to define it for the region s needs. Content can also come up from the regions and be posted into the system the opposite way. And in our increasingly digitized world, where assets frequently exist not as physical items but as electronic images and attachments, this type of solution adds in layers of security. In a digital world, it s much easier to distribute assets than it was in the analog 6 Consumer Goods Technology October 2009

7 world, Formella notes. This gives you greater speed to market, but it also means you need increased security. With the Kodak brand being so closely aligned with imaging, we re very sensitive about things like image rights, so when we secure property from a photographer, we re sensitive in our business dealings that we use those assets as we say we will, within the contracts that are established for their use. The solution also offers file conversion capabilities. Marketers are often required to meet many different needs for their audiences, which can include the CG company s salespeople, public relations people, etc. says Formella. One group may need an image for Web resolution, another may need it in a different resolution for print collateral. These systems allow those conversions to happen based off a high-resolution master file. The solution also encompasses videos for posting. Kodak s move to a centralized system for its marketing assets also improves both communication and quality assurance in its work with agencies and other third parties involved in marketing. Agencies should be an extension of your brand, and with the use of a centralized system you can enable and empower those agents to work on your behalf, says Formella. It also helps with quality assurance, because there s a system for the agencies to work within. They have the ability to pull qualified assets, and there are also workflows to ensure that the proper reviews are taken, depending on the asset types. The system also tracks the movement of specific assets to an agency or other third party, to help determine the eventual use of each asset. And the solution s database uses metadata as part of the intelligent architecture that provides organization to a marketing system. You can search by language, the campaign s title, the file format type, or any number of other parameters, says Formella. It s a window into your business. GAINING GREATER UNDERSTANDING OF MARKETING EFFECTIVENESS Perhaps the most important window that these solutions offer CG companies is the ability to get a broad, longrange view of the impact of their marketing campaigns. Former CG marketer Ferrara describes marketing automation nirvana as having an application or service provided by a supplier, which told me the effectiveness of spending across all marketing activities of a campaign and doing it almost immediately. I d love to understand what touchpoints worked the best in achieving brand and communication objectives, and finding out soon enough to have enough time to impact the next campaign, or even alter the current one. As marketing increasingly moves into newer, more direct channels, using vehicles such as , social networks, and communications sent to consumers own mobile devices, CG companies will gain a greater ability to track response on an individual, granular level. But the sheer volume of communications will require marketing automation systems that are designed to scale up for such activities. According to Formella, such tracking capabilities are built in to the Kodak solution. The system allows one to look at a campaign as a whole, or just the regional execution of a campaign component, he says. From a brand marketing management standpoint, it allows top-level visibility into the way the brand is presenting itself worldwide. That ability to see across a business, or across different campaigns, is a powerful tool. Kodak CMO Hayzlett summed up the impact of marketing automation solutions for his company: In just a few months, we have simplified and streamlined the production of marketing materials. Assets used in their creation are stored for fast and easy online access, at any time. We are also increasing our time-to-market speed and have the ability to adjust messages and send more targeted, relevant messages as we get feedback from customers. For example, we will implement a direct mail and campaign system that includes templates for creating personalized pieces and links to a lead management program. These can be adjusted and customized quickly and efficiently. Organizations that have adopted marketing automation report improved performance in productivity and revenue growth, he adds. In today s competitive consumer environment, marketing automation can make a real difference in maximizing efficiency and effectiveness, and achieving results. October 2009 Consumer Goods Technology 7

8 Advanced Management Solutions Sharpen CG Marketing s Competitive Edge ABOUT EASTMAN KODAK COMPANY Kodak is the world s foremost imaging innovator, providing leading products and services to the photographic and graphic communications markets. With sales of $10.3 billion in 2008, the company is committed to a digitally oriented growth strategy focused on helping people better use meaningful images and information in their life and work. Kodak s Marketing Workflow Solutions offer a powerful workflow solution for content management of brand assets to maximize efficiency, supply chain and information sharing within and across their enterprise. Simplify the global execution and marketing process by enhancing productivity and increasing speed to market with KODAK DESIGN2LAUNCH Solutions. Kodak s comprehensive products fully integrate planning, analyzing, measuring, designing, executing, and managing enterprise marketing with ease. The result is more automation, effectiveness, accountability and efficiency across the entire marketing supply chain. More information about Kodak (NYSE: EK) is available at More Information about Kodak Solutions for Business is available at ww.automation.kodak.com. SPONSORED BY