Cassies 2008 Cases Brand/Case: Desjardins, More than a Bank Winner: Services Financial Silver Best Integrated Silver Client Credits: Desjardins Micheline Paradis, Vice-présidente Communications et Publicité institutionnelle André Forgues, Directeur, Direction Communications et Publicité institutionnelle André Pelletier, Vice-président, Vice-présidence Marketing et Développement Lucie Bouthillette, Directrice, Direction Commercialisation - Marché des particuliers Agency Credits: lg2 Gilles Chouinard, creative vice-president Marc Fortin, creative director Lysa Petraccone, art director Martin Cinq-Mars, art director Christine Cook, art director Jennifer Varvaresso, interactive creative director François Sauvé, copywritter Simon Touzin, art director Martine Grégoire, v-p client services Marie-Josée Bourque, group supervisor Marie-Éve Despars, account executive Susan Dufour, strategic planner Alexis Robin, strategic planner, digital Michel Bélisle, interactive producer Lucie Gauvin, Carat Montreal Michel Sarao, agency producer Cinélance, tv production Denis Villeneuve, director Emmanuel Hoss Desmarais, director Studio Apollo, music Pierre Manning, photographer Crossover Notes: All winning cases contain lessons that cross over from one case to another. David Rutherford has been identifying these as Crossover Notes since Cassies 1997. The full set for Cassies 2008 can be downloaded from the Case Library section at www.cassies.ca Crossover Note 1. Crossover Note 7. Crossover Note 10. Crossover Note 18. Crossover Note 32. Crossover Note 33. What a Brand Stands For. Fighting for the Same High Ground. Conventional Wisdom should it be challenged? Keeping it Simple. Changing the Target Audience. Internal Marketing. To see creative, go to the Case Library Index and click on the additional links beside the case.
2 EXECUTIVE SUMMARY Business Results Period (Consecutive Months): September 2006 April 2008 Start of Advertising/Communication Effort: September 2006 Base Period for Comparison: Historical trends Different is not better. Different makes you an alternative. Better makes you the most desirable one. Desjardins, Canada s largest cooperative financial group, is a different kind of financial institution. It is owned by its members, who share in the profits. It has a different purpose and different values than banks. After having successfully reaffirmed Desjardins distinctive nature as a cooperative through the This is not a bank integrated campaign, we were faced with a new challenge in 2006: turning different into better. Having established what Desjardins was not, we had to establish what it was and, most importantly, why consumers should care. Another challenge loomed. In order to sustain growth at the dawn of major demographic and socio-economic changes, Desjardins an institution strongly associated with rural Québec had to make an aggressive foray into two of the impenetrable bank strongholds: the Montreal and ethnocultural communities. Crossover Note 33. This case will demonstrate how Desjardins successfully outreached to new markets while turning its distinction as a cooperative into a compelling consumer-perceived benefit that generated tangible and outstanding business results. SITUATION ANALYSIS a) Who the heck is Desjardins? Founded in 1900 by Alphonse Desjardins, Desjardins Group is the largest integrated cooperative financial group in Canada, with assets of $150 billion. It is a network of cooperatives caisses and credit unions, and some twenty subsidiary companies in life and general insurance, securities brokerage, venture capital and asset management. They run their operations, including marketing, independently. Desjardins is owned by its 5.8 million members, and it distributes most of its profits to them in the form of member dividends. b) Challenges A key moment Thanks to baby boomer disbursements and intergenerational transfers, large quantities of assets were in play. Also, because of an aging population and a steady exodus from the countryside to the urban areas, Desjardins had to secure its current clientele and attract new ones in order to sustain growth.
3 Negative perceptions Desjardins was largely recognized as a cooperative, due in great part to the 2003-2006 This is not a bank campaign. But this distinction was seen as a collective benefit, rather than an individual one and this undermined Desjardins marketing efforts. Finally, Desjardins was struggling with negative perceptions about its capacity to cater to its primary growth target intermediate and large assets holders. [Those with savings of more than $50,000.] As a result, most members with more than $25,000 in savings diversified among various financial institutions, and most with more than $50,000 in savings dealt primarily with the competition for their investments. Fierce competition While Desjardins had a relatively steady budget, overall Canadian advertising spending in the financial sector had increased by 37% from 2003 to 2005 [AC Nielsen]. In addition, new players like ING were adding to the pressure while general insurers were deploying take-noprisoner campaigns with a 62% increase in overall spending from 2003 to 2005. Desjardins spent more than its competitors. But despite integration efforts its resources were spread thinly across many product campaigns, causing its share of mind to be lower than its share of spending. Differentiation was also a challenge. While Desjardins had stood out in 2003 by adopting a human and aspirational approach in a humour-dominated ad landscape, humour was no longer the dominant tone. In September 2005, National Bank one of Desjardins main competitors adopted an approach that closely resembled Desjardins and increased its presence in the Montreal area. And all financial institutions were aiming at the most difficult target to reach the rich and wealthy. Crossover Note 7. c) Objectives Marketing objectives Retain members, and increase the proportion of intermediate and large asset holders Reduce diversification of assets to other financial institutions Outreach to Anglophone and ethnocultural communities Communications objectives Dominate advertising noise amongst intermediate and large asset holders Increase the perception that Desjardins, as a cooperative, adds value for the individual Increase belief in Desjardins financial competence, especially in wealth management Market Québec and French-speaking Ontario Priority: Montreal Urban Area STRATEGY AND INSIGHT
4 In a context where differences between financial institutions and their products are almost nonexistent, company values can make all the difference. And so the strategic approach stemmed from a simple insight Crossover Note 1: Desjardins is more than a bank, because it puts money at the service of people. Not the other way around. This statement made the added value of being a cooperative perceptible. In order to bring it to life, the communications strategy was built on six pillars: 1. From products to image Consumer perceptions were the primary obstacle to business development. Advertising resources were therefore reversed, with more emphasis on image. A plethora of product campaigns made way for a unique and simple platform that conveyed a unique and simple promise. Crossover Note 18. 2. From us to you A truly customer-centric organization puts customers at the centre of everything, starting with communications. So, rather than talk about Desjardins, we showcased members and clients, conveying our desire and ability to cater to their needs and aspirations. 3. From omnipresent to focused We decreased our presence in rural regions in favour of Montreal; where Desjardins market share was the weakest, and where the the well-off and ethnocultural communities were most strongly represented. While this is common sense, it was a major leap of faith for Desjardins, which had traditionally covered all Québec regions evenly. Crossover Note 10. 4. From claim to proof All financial institutions make the same claims. And so supporting the more than a bank promise with tangible evidence was key to turning the cooperative difference into a true business advantage. We therefore developed advertising with strong and compelling proof points. 5. From Québecois to multicultural Historically, Desjardins has been seen as very Québecois. To develop goodwill with ethnocultural communities, we had to recognize them as an integral part of today s Québec and celebrate their input to the province s economic and cultural landscape. At the dawn of the 2007 commission on reasonable accommodation, this inclusive approach could not be more suitable. 6. From many to one Desjardins had to maximize the range of its communications while leaving its various entities enough leeway to express how they would be more than a bank for consumers. This required unifying all Desjardins communications, in order to create a coherent, integrated and powerful whole.
5 EXECUTION The Concept Members last names temporarily replaced Desjardins next to the logo an evocative way to demonstrate that Desjardins is owned by its members. Alphonse Desjardins, the group s founder, would have applauded this recognition of those who think differently about banking. It s more than a bank. It s Gagnon, Thibault, O Neil, Nguyen, Roy, Chami Desjardins. By showcasing members, we recognized their patronage, underscoring Desjardins distinction and outlining the cooperative model s ability to deliver individual value. And by choosing as many names from old Québec as from Anglophone and ethnocultural communities, we underlined Desjardins openness and diversity. The Theme More than a bank. It s Desjardins. This statement served as the guardian angel of integration and relevance adapted for all entities, along with proof of the Desjardins advantage. We allowed for individual variations, keeping the larger picture in mind, to accommodate various promotions, or the needs of business units that weren t competing exclusively with traditional banks, notably in the insurance sector (e.g. More than an insurance. It s Desjardins General Insurance.). DEPLOYMENT Phase 1: Image Launch The platform was initially launched in the most public and inclusive media of all: out of home. We used 16 different executions, showcasing real members, in the Montreal and Québec City areas. This two-week teaser campaign was followed by four TV executions that outlined Desjardins cooperative nature, dividends paid to its members, the group s global cooperative outreach, and the quintessential role that it plays in Québec s business and economic growth.
6 The concept was even used at the Bell Centre during Canadiens games. The names of current players were displayed next to the logo. This stunt was also used to honour former players whose numbers had been retired. Phase 2: From Image to Product This image campaign was followed by a series of successful product and service-specific campaigns that all leveraged Desjardins cooperative distinction through the Names platform. Some examples: Fall 2006 Retirement Vision launch (Newly branded retirement planning approach) 1 television execution 1 newspaper stunt (fold-over) Print support (newspapers) Winter 2007 RRSP campaign 4 television executions, each focusing on a distinctive RRSP product 4 print executions (newspapers) Enriched web banners and search engine marketing
7 Spring 2007 mortgage campaign 1 television execution 1 print execution 1 radio execution Web banners Spring and Fall 2007 car insurance campaign (Desjardins General Insurance) 1 television execution; 1 out of home execution 3 radio executions; web banners, partnerships and search engine marketing Spring and Fall 2007 VISA premium credit cards campaigns Print executions; Out-of-home and indoor advertising TV sponsorship Fall 2007 Accessibility campaign (Promoting Desjardins accessibility through caisses, ATMs, Internet and phone services, home visits and extended opening hours) 6 television executions Winter 2008 RRSP campaign 4 television executions, each focusing on a distinctive RRSP product 3 print executions (newspapers); enriched web banners and search engine marketing Spring 2008 home ownership campaign (Mortgage/home insurance/loan insurance joint venture) 3 television executions; 1 print execution;1 radio execution Web banners and search engine marketing Sponsorship of Ma Maison Rona (home improvement TV show) Spring 2008 Financial Expertise Campaign (financial planning) 3 television executions 6 Print executions (newspapers) Spring 2008 Desjardins General Insurance (car insurance) 1 television execution 2 out-of-home executions Web banners, partnerships and search engine marketing
8 BUSINESS RESULTS From a Sales Standpoint The campaign delivered outstanding business results for the entire group, beyond expectations. Here are some examples: Savings: Sales increased by 5.7% in Q1 2007 VS. Q1 2006, in what can be considered to be Desjardins most crucial business sector. Also, Desjardins increased its share of market in the total savings category, while banks lost ground. Note that in a market where each percentage point is fiercely fought for, what may seem like small increments actually represent millions of dollars. Savings S.O.M. 2006 2007 2008 2006 to 2008 Desjardins 23.6% 23.9% 24.2% +0.6% Total banks 57.7% 57.6% 57.4% -0.3% RRSP: Desjardins surpassed its objectives two years in a row in one of the most critical and aggressive advertising categories. RRSP 2007 2008 % of sales objectives 105.2% 101.2% Credit cards: Advertising and promotional campaigns generated a record 43% rise in inbound calls for Desjardins Modulo and Odyssey gold cards (January - May 2007 vs. January - May 2006) with no change in product offering. And it paid off: Desjardins credit card volume growth nearly doubled the VISA national average in 2007, with no significant territorial differences. Desjardins +20.5% All Canadian VISA issuers +12.3% Mortgages: Sales increase of 7.6% (Q1 2007 VS. Q1 2006) Desjardins Funds: Sales increase of 83% (Q1 2007 VS. Q1 2006) Consumer loans: Sales increase of 4.7% (Q1 2007 VS. Q1 2006) Overall: Most entities and subsidiaries saw tremendous growth as a result of advertising.
9 From an Image Standpoint This campaign struck gold. A 2007 image research indicated that Desjardins net goodwill among the Québec public (favourable perceptions minus negative perceptions) reached 68%. This was the highest level since 2001, making Desjardins the second most appreciated company among the 14 surveyed. The same research showed that 74% of members perceived Desjardins cooperative distinction to be an added value, a three point increase over 2005. The campaign was also successful in increasing Desjardins perceived expertise. In the Spring 2008 Financial Expertise post-campaign survey, 85% of respondents were convinced of Desjardins ability to support them in achieving their financial goals. Finally, the campaign reached out to growth targets: it was most appreciated by Montrealers, Anglophones, the most well-off and the most educated confirming that our communications objectives were attained. From an Internal Standpoint The campaign was very well received internally, instilled a strong sense of pride and belonging throughout the group, and succeeded in unifying all the Desjardins voices into a cohesive and stronger whole. Crossover Note 32. From a Member Dividends Standpoint Member dividends, an irrefutable indicator of Desjardins vitality and financial well being, achieved outstanding growth in 2006 and 2007. Member dividends 2004 2005 2006 2007 Amount ($million) 372 408 483 592 Growth (%) -15.4% 9.7% 18.4% 22.6% CAUSE AND EFFECT BETWEEN ADVERTISING AND RESULTS A look at the product and competitive landscape, as well as media-spending, isolates advertising as the sole cause of increased business results. Product: There were no significant changes in Desjardins product offering. Competitive landscape: If anything, this became more challenging. The change in dominant tone from humour to aspirational hindered differentiation efforts. Furthermore, increased category spending and a spending concentration on the Montreal area increased the pressure on Desjardins.
10 Media budget: The results were achieved not through a significant change in advertising spend, but rather through more effective resource allocation. Communication Effectiveness: A look at average campaign performance in 2007 speaks volumes about the platform s performance: Average communication performance (2007) Index vs. Desjardins effectiveness norm Campaign recall 147 Brand recall 168 Message comprehension 109 Message appreciation 106 Net effectiveness 204 Measured by Ad-Hoc Research, with norms based on the average historical performance of Desjardins advertising campaigns The campaigns average net effectiveness increased by 80% from 2006 to 2008. These results, combined with the fact that no other variables were noted, corroborate our belief that Desjardins achieved outstanding growth by turning its cooperative distinction into tangible consumer benefits at every point of contact. From different to better.