Broderbund
Print
Shop
Situation
Print
Shop is Broderbund’s largest, most profitable business unit. The
Company
had just brought in a new CEO who came from the shared mail school of
direct
response.
The Print Shop product group wanted to offer a high image upgrade --
the
Print Shop Ensemble III -- to its installed database of over
eleven
million Print Shop owners in the early Fall. Yet, the product release
date
for one of the OS versions kept getting moved back due to delay of one
format variable, causing Broderbund’s new management to acquiesce over
the launch.
To make matters worse, in its eagerness to show Q3 revenue, management
had permitted the available formats to be offered with TMaker's
ClickArt,
which had just mailed to the Print Shop list in late July. Clearly a
case
of one hand not knowing what the other was doing, this had the effect
of
preempting the official upgrade mailing that had been in the works for
well over a year.
In
early October, the decision was made to launch the upgrade campaign
right
after Christmas in anticipation that, by then, all versions of Print
Shop
Ensemble III would be available. The previous year’s Print Shop
upgrade
campaign had done poorly. And, given the TMaker thunder stealer in
July,
Broderbund management clearly felt it had to add more value to the
offer.
Problem
The
new management, which was not yet in the strategic loop, had made it
clear
they wanted Print Shop to stuff the envelope with Broderbund offers.
The
shared mail model was clearly the worse possible scenario to present a
high image upgrade targeting existing Print Shop owners.
Where the agency was used to seeing response rates on upgrades ranging
between 20% and 75% for other solo mail campaigns it had done, shared
mail
marketers were ecstatic when they could pull anywhere over one half
of
1%. These were clearly two different schools of direct response
cultures;
two different expectation levels for projected revenue. Worse, it was a
campaign designed by committee.
Producing successful direct campaigns leans heavily on an empirical
flow
of promotional trial and error scenarios over a broad array of
promotional
formats, lists, and offers.. Direct marketers test to roll. But, they
need
to make sure they're ready to roll out in the same market they're
testing.
It doesn't make any sense to test one month, then roll out six months
later.
Management did not have this orientation and the product group was
helpless.
Further,
there is no smart way to budget for direct
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response
as you do for mainstream marketing communications.
Product Managers need to have an
understanding
with upper management firmly in place, that they are testing with the
intent
to roll on cell scenarios that test positive; that funds for a roll out
will be made available based on test predicted response.. It makes
absolutely
no sense to test for a roll out and then not roll when cells do test
positive.
No such understanding existed with Broderbund's new management.
Solution
The
Print
Shop Ensemble III Upgrade Campaign: The
agency convinced Broderbund that clutter was this campaign’s worse
enemy;
that too many ruffs defuses the call to action; that if they were to go
positive on this test, they needed to build relevance between all the
components
in the package.
The agency created a 6" X 11" High Impact Classic Campaign Letter that
focused all “equities and entities” on the upgrade offer specifically.
The “Private upgrade notice” positioned the upgrade as a “pre-release”
at over 50% off the suggested retail price.
The OSE used PressWriter and ClickArt as teasers to move recipients
into
the package.
The Letter itself focused on product features and benefits, and the
ruffs
with PressWriter and ClickArt were only introduced in separate
postscripts
as “bonus” and “exclusive” offers at the close.
The Broadside brochure (15” X 22”) graphically showcased the Print Shop
Ensemble III Upgrade Offer, but used about 25% of the space to
introduce
PressWriter as “The long awaited companion to Print Shop.”
The Lift Note hooked readers to “Look inside to see why ClickArt and
The
Print Shop Ensemble III are a marriage made in Heaven.” Finally,
a second Lift Note featuring Print Shop Photo Folios was added as a
self
liquidating sweetener to the package. Linkage between performance of
Print
Shop, ClickArt, and Folios was not required or expected.
Results
The
conversion
rate more than doubled that of the previous year, but came nowhere near
its potential.
Despite the ClickArt preemption, the PressWriter product launch,
and the inherent clutter in the package, the campaign was highly
profitable
to Broderbund. The response clearly called for a second mailing. It
would
cost Broderbund millions of dollars not to mail again. And although the
agency demonstrated how the campaign would have tested 100% better than
it did without the diffusion in calls to action, the product group was
ecstatic given the situation they'd been handed by management. It was
later
revealed that Broderbund was being groomed by accountants for a sale to
Mattel two years later.
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