Marketing and Business Capabilities of Savitz Research
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1 Savitz Research Solutions Capabilities Presentation Jeff Savitz, CEO Mike Kassab, President May, 2012
2 Savitz Foundation Leading Custom Market Research Firm Headquartered in Dallas, Texas Serving Our Clients for Over 30 Years Our Mission: Help Clients Obtain Competitive Advantages and Higher Bottom Lines Custom Marketing Research and Insights Advanced Statistical Analysis and ROI Modeling Social Media Analytics and the Digital World Field Services Telephone Center, Online and Mobile Data Collection, In Store Interviewing, Multi-Lingual Interviewing, Test Kitchens and Data Processing Field Offices in Los Angeles, Dallas, Houston, Chicago and Atlanta Global Qualitative and Quantitative Data Collection Network 2
3 The Savitz Organization Savitz Research Companies Savitz Research Solutions Savitz Field & Focus Information Unlimited Market Research Consulting Strategic and Tactical Insights Senior Research Staff Complete Data Collection Facilities Proprietary Insights Frameworks and Models Savitz Focus Group Facilities in 5 Major U.S. Cities Network of 20+ Field Facilities Worldwide Through Focus Coast to Coast Test Kitchens, Product Placements, Shop-A- Longs, In-Store Interviewing 50 CATI Stations Web Surveys Tabulations Graphics Analytical Software: SPSS, SAS and Excel 3
4 4 Savitz Service Offerings
5 5 Custom Marketing Research
6 Custom Marketing Research Studies Market Opportunities Consumer Needs and Motivations Attitudes and Usage Market Structure Analysis Consumer Segmentation Innovation Products and Services Needs Assessment/Idea Generation Product/Service Concept Development Product/Service Design Optimization Product/Service Mix Optimization Price Optimization Studies Awareness, Trial & Usage Tracking Shopper Insights Decision Process Channel Strategy Retail and Web Marketing 6
7 Custom Marketing Research Studies Communication Strategy Ad Concept Development and Testing Copy Testing Media Mix Optimization Media Weight Tests Promotion Testing Advertising Effectiveness Tracking Brand Strategy Brand Positioning Brand Identity and Image Brand Health Tracking Customer Engagement/Satisfaction Customer Engagement/Satisfaction Retention, Defection, Churn Analysis Loyalty Improvement Programs 7
8 8 Qualitative Insights
9 Qualitative Insights Leading Moderators Traditional and Digital Venues Qualitative Techniques Traditional: Focus Groups, Depth Interviews, Shop-A-Longs, Ethnographies Digital: Bulletin Boards, Diaries, Mobile, Ethnographies, 20/20 Platform Savitz Owned Focus Group Facilities Atlanta, Chicago, Dallas, Houston and Los Angeles Operates Focus Coast to Coast Network Network of Focus Group Facilities in 35+ cities including U.S., Canada, Central and South America, Europe and Asia 9
10 10 Digital qualitative techniques for developing websites, concepts and ads
11 11 Heat maps aid in the analysis and interpretation of consumer input
12 12 Advanced Analytics and Marketing ROI
13 Advanced Analytics and Marketing ROI TECHNIQUES Savitz has a deep and long history in modeling beginning with the Founder s, President s and Director of Marketing Analytics roots in the Marketing Sciences at Columbia, Cornell, Wharton and the University of Texas at Dallas. The Savitz Marketing Sciences team has designed and executed hundreds of marketing models studies over the past three decades for some of the world s leading companies and brands. Our expert Ph.D. staff is highly versed in all the latest forms of multivariate analyses, including: Dependent methods where we are trying to predict marketing outcomes. The techniques include: regression and discriminant analysis, canonical correlation, as well as conjoint and discreet choice analyses Interdependent methods where we are trying to understand the relationships among marketing variables and constructs as well as relationships among different groups of consumers. The techniques include: cluster and factor analyses, correspondence and perceptual mapping techniques More recent techniques which may involve dependent and interdependent techniques including: latent class analysis, hierarchical Bayes and structural equation modeling (SEM) 13
14 Advanced Analytics and Marketing ROI MARKETING MODELS With the goal of maximizing sales and/or profit (marketing ROI) we have developed models covering a wide range of important marketing applications. The main categories of these marketing ROI models include: Brands and Products Optimal Product Design: Determines the benefits of product or product concept that will lead to the highest demand Optimal Product Line: Determines optimal line of products to carry to maximize profits Brand Equity Evaluator: Measures bottom-line value of a brand name. Extremely useful in evaluating potential of new lines of business 14
15 Advanced Analytics and Marketing ROI MARKETING MODELS Advertising and Communications Optimizing Ad Budgets: Determines ROI on various levels of advertising and promotion to identify how to maximize sales and profits Web Marketing: Uses advanced analytical techniques to determine optimal website characteristics using more timely and cost effective methods Copy Testing: Develops norms against ads which actually ran on critical criteria and uses them to test new ads from concept to final form Direct Mail Targeter: Improves profitability of direct mail campaigns by systematically eliminating non-responsive addresses 15
16 Advanced Analytics and Marketing ROI Pricing and Promotion MARKETING MODELS Optimal Pricing: Determines optimal pricing for single product or line of competing products including existing products and concepts form. May be used to improve products and develop optimal product-pricing combinations Optimal Discounting: Determines the discount each individual store in a chain should feature to maximize profit depending on what local competitors are doing Promotion Selector: Identifies most effective new promotional ideas and estimates effect on sales Promotion Combater: Determines discount level or other promotional efforts which will minimize loss of sales and customers when competitors run promotional programs 16
17 Advanced Analytics and Marketing ROI MARKETING MODELS Customer Relationship Management Customer Engagement and Loyalty: Determines effect on market share from changes in marketing and operations to improve customer retention Customer Satisfaction Reporting System: A system for collecting, tabulating and analyzing and reporting customer engagement and satisfaction information on a real time basis Customer Conversion: Estimates effects on market share due to changes in marketing and operations to acquire competitor customers Customer Database Mining: Determines how to best target customer database to maximize sales and profit 17
18 18 Social Media and the Digital World
19 The Blended World of Consumers Blended Consumer Worlds Virtual World Out and About Work Home 19
20 Savitz Digital Insights Techniques Our Partners GPS Mobile Consumer Engagement User Generated Content Commu nities Web Mining Web Behavior Digital Qual. Point of Experience 20
21 21 Social media is playing an increasingly important role in helping us understand the consumer
22 Savitz Netrics Wordcloud We sweep the Internet and determine what people are saying about your brand. Unlike less sophisticated systems that require you to pre-specify the words and phrases you want to study, Savitz Netrics can also select them for you based on actual social media conversation. In the wordclouds below, the bigger the word or phrase, the more people who mention it. Notice, there are a hundred times more comments (sound bites) for Netflix than the Blockbuster Movie Pass. Had we searched on Blockbuster itself, this would not have been the case. Clearly, Blockbuster Movie Pass needs to promote the Movie Pass more to get more buzz going on the social media to really compete with Netflix. Netflix Blockbuster Movie Pass Sound bites: 4,100,000 Sound bites: 40,000
23 Savitz Netrics Net Sentiment Using Natural Language Programming (NLP) powered by Netbase s expert Ph.D. Linguistic staff, the system separates and counts positive and negative comments which are shown in green and red below. This can be done over a period of time from one hour to one year. The difference between the positive and negative counts is called the Savitz Netrics Net Sentiment Score (blue line). Netflix announced a price increase for DVD rental and streaming in early summer and implemented the price hike in September. They experience a Net Sentiment decrease both times in the social media. This evidently helped Blockbuster Movie Pass as did the announcement in the Fall of their bundled service with Dish Network which caused considerable buzz on the social media. Importantly, Blockbuster Movie Pass has received virtually no negative buzz on the social media which places it in a powerful position to increase its standing through further promotion. Netflix Net Sentiment Blockbuster Movie Pass Sentiment
24 Savitz Netrics Likes Again, through NLP we can divide the brand buzz into positives (likes) and negative (dislikes). Movies ring loud for Netflix (30%) as do streaming (18%) and service (12%). For Blockbuster Movie Pass the key positive is that it is free/free for one year (22%) followed by the complete media rental service at (19%) as well as good movie selection and streaming (both at 14%). Netflix Likes Blockbuster Move Pass Likes
25 Savitz Netrics Dislikes The biggest negative for Netflix (totaling 38%) of the top ten dislikes relates to its change of policy involving a price hike; kill plan (16%), lose customer/subscriber (totaling 16%) and the price hike itself (6%). Netflix dislikes Blockbuster Movie Pass dislikes Caution: very small sample size
26 Savitz Netrics Verbatims Once words and phrases are quantified we can examine exactly what people are saying. For example, for Netflix consider the likes about streaming and dislikes about movies. For Blockbuster Movie Pass consider the likes about the complete media service and the new service itself. Netflix Sound Bites Like and Dislike about movies and streaming Blockbuster Movie Pass Sound Bites Like complete media rental service
27 Lead Client Services Team Jeff Savitz CEO Industry Leader ROI/Modeling Consultant Advanced Research Design and Analysis Research Director, The Richards Group Research Manager, Pfizer Pharmaceuticals Research Manager, CBS Senior Research Analyst, AT&T Wharton School, Columbia University Mike Kassab President Fact-Based Consultant Marketing Strategy Brand Innovation, Market Opportunities, Shopper Insights, Digital Insights, Emerging Technologies Sr. Vice President, GfK Vice President, NOP World Vice President, Roper Starch Wilkes University, UT Dallas 27
28 Lead Client Services Team David Ditzenberger Vice President Erin Jackson Vice President Mike Morgan, Ph.D. Marketing Sciences Client Service Executive Senior Analyst Service Strategies Inc. JCC of Dallas UT Austin, UNT Client Service Executive Senior Analyst American Heart Association University of Phoenix Modeling and Analytics Leader Customer Value, Loyalty, Churn Segmentation, Forecasting, Data Mining RMG Connect/JWT Worldwide Yankelovich M/A/R/C Research Sprint Cornell University UT Dallas, UT Austin 28
29 Lead Client Services Team Cindy Ford, Ph.D. Marketing Sciences Modeling and Analytics Leader Marketing Research, Operations Research and Clinical Research Multivariate Statistics, Segmentation and Other Forms of Modeling The Modellers Decision Analyst Inc. Service Strategies SMU, Baylor University Paula Julian Senior Research Consultant Brand Planner/Researcher Innovative Consumer Strategies and Creative Insights Brand Development Brand Equity/auditing Wide Range of Industries and Sectors RAPP Ackerman McQueen Bozell Worldwide Tracy-Locke University of Missouri 29
30 Lead Client Services Team Kathleen Turner Senior Research Consultant Traditional and Digital Techniques and Methods Advanced Marketing and Shopper Insights Strategy Consumer Needs and Motivations Expert Sam s Club, Tyson Foods, Kraft UT Austin, LSU Hart Weischelbaum, Ph.D. Qualitative Expert Senior Research Focus Groups, Depth Interviews, Laddering Studies, Ethnographies, Consultant Shop-a-Longs, Face-to-Face and Mobile Technologies The Richards Group Foote, Cone and Belding The Planning Practice University of Colorado University of Chicago Robin Cooper Senior Research Consultant Expert Focus Group Moderator Pharma, Patient Care, Hospital CRM and Medical Devices Camelford Graham (IPSOS) Product Initiatives IFOP-CMR New York University 30
31 Lead Client Services Team Savitz Research Solutions, Inc. Jeffry N. Savitz, CEO Mike Kassab, President P: , ext. 208 P: , ext. 207 C: C:
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