kiwibank 00139 sustained success final

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2009 Entry FormSustained SuccessCategory P

_____________________________________________________________________________ IMPORTANT INFORMATION – PLEASE READ BEFORE COMPLETING FORM

• Save as a Word Document before completing.

• Please do not delete the section headings in the entry form however; you can delete this

introduction text & text below the category headings before submitting.

• Typeface: black font; 10pt minimum. Handwritten entries will not be accepted.

• Word limit: maximum 3000 words.

• Use this entry form for Sustained Success only.

• Do not include reference to the agency name throughout the written submission.

• You are required to submit 7 copies of your Entry Form including the Creative Checklist

for each separate entry, copied on one side only, stapled together and collated. Please fill out all

information below.

• You are also required to attach:

o 1 soft copy on CD for judging

o 1 soft copy on CD for publication (with sensitive or confidential information

highlighted in red)

o 1 copy of the Authorisation form for each entry (this is automatically

generated and emailed when an entry is submitted online) and;

o attach a Summary of Entries and Payment form with your payment or proof

of payment.

Please refer to the list below for the approximate distribution of marks for each section in the Entry form [please note the creative submission is NOT INCLUDED in the first round of judging]:

Written submission First Round Final RoundExecutive Summary 5 3Marketing challenge 5 3Target audience 5 3Campaign objectives 5 3Overall Campaign Strategy 15 9Creative strategy 10 6Media strategy & plan 10 6Results - Quantum 25 15Results - Credibility 10 6Overall Quality of the Entry 10 6Subtotal 100 60

Creative submissionCreative Execution vs Creative Strategy n/a 8Creative Rationale n/a 8Creative Impact (cut through, originality etc) n/a 24

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_____________________________________________________________________________ Subtotal 40TOTAL 100

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_____________________________________________________________________________ SUSTAINED SUCCE SS ELIGIBILITY REQUIREMENTS

Please note that campaigns that do not adhere to the eligibility requirements will be disqualified and fees will not be refunded.

• The campaign must be able to demonstrate success for three or more years.

• The campaign has stayed substantially the same, both strategically and executionally, over the three year period.

• Advertising campaigns that ran in NZ between 1 January 2005 and 30 June 2009 are eligible for entry. Campaigns may have been introduced earlier but must have run during this period and have data relative to the qualifying time.

• Advertising campaigns created and produced in New Zealand between 1 January 2005 and

30 June 2009 to promote NZ goods or services in international markets are also eligible for entry.

• All campaigns submitted for this special award must show a consistency in using one or more of the following media over the years in question:

• Television

• Radio

• Print

• Out-of-Home/Outdoor Advertising.

• Only submit creative materials for the primary media vehicles for the campaign, with no more than three media represented

SUSTAINED SUCCESS GUIDELINES

The key to the Sustained Success award is to demonstrate long-term effectiveness. You must show success over a three-year (or longer) period of time and this success must be tied to the effects of the advertising. Success can take many forms. Some possibilities are:

• Increased share, sales or volume

• Maintenance of share, sales or volume in the light of competition

• Image growth, or maintenance over the years in question compared to the competition.

You may define ‘success" on your own terms and the judges will decide whether the criteria you have established are credible.

Please read the instructions carefully before responding. Also, the creative submission requirements are unique to this award. Again, please read the instructions concerning the creative submission carefully.

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_____________________________________________________________________________ CREATIVE CHECKLIST: please fill in the commercial titles & submit one copy of the creative checklist stapled separately with your entry.

Due to the volume of creative material available for each campaign, we ask that you limit your creative submissions to the primary media vehicles for your campaign, with no more than three media represented.

NOTE: Do not display the agency name or logo on any creative material – not even on the outer case

Television Commercials

Submit a DVD of commercials that demonstrates the longevity of the campaign. This DVD must, include, at minimum, the original commercial and the most current commercial, and should be in time sequence – earliest commercial first, and most recent last.

Please put an ID Board with the year that each commercial ran, including the initial year, prior to each commercial. If more than one commercial ran for any given year, you only need to include one ID Board for those commercials. The total DVD can be no longer than five minutes in length. Please note, only complete commercials will be accepted.

Send TV commercial/s on DVD only. DVD’s must have an ID Board (No Agency name). If you send two TV Commercials, both commercials must be on 1 DVD, with approximately 5 seconds of black between them.

TV Commercials:#1 Commercial Title: #2 Commercial Title: Etc.Label outside case with entry number, commercial/s title, brand & length

Radio Commercials

Submit a PC formatted CD of commercials that demonstrates the longevity of the campaign. This CD must include at least the original commercial and the most current commercial in sequence with earliest commercial first, and most recent last.

Please announce the year that each commercial ran, including the initial year, prior to each commercial. If more than one commercial ran for any given year, you only need to include one announcement for those commercials. The tape can be no longer than five minutes in length. Place five seconds of silence between each spot that you send. Please note, only complete commercials will be accepted.

Radio Commercials#1 Commercial Title: #2 Commercial Title: Etc.Label outside case with entry number, commercial/s title, brand & length

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_____________________________________________________________________________ Print Advertising

Submit a bound portfolio of your print materials that demonstrates the longevity of the campaign. The portfolio must include, at minimum, an execution from the campaign’s inaugural run and an example from the current year’s run. You may not submit more than 10 executions, with a maximum of 2 per year.The portfolio and its contents may be no larger than A3 size. Each execution must be labeled on the back with:

- Entry Number- Name of the execution and the year it ran- Brand name- Campaign title- Print media used and size of advertisements as proportion of page

(trade/professional, consumer magazine or newspaper)

Provide one copy of the portfolio for judging purposes. Each portfolio must be labeled on the back with the entry number, brand name and campaign title.

Print Advertising#1 Campaign Title:

Limit one portfolio. Label the back of the portfolio with entry number, campaign title & brand

Direct Mail Each mailed unit constitutes a single item. Send 1 complete sample of each example.#1 Direct Mail Title: #2 Direct Mail Title: Etc.Label the back of each example with entry number, campaign title & brand

Point-of-Purchase Display Send 1 unmounted copy of each photo/proof, which should not exceed A3 page size (297x420mm). #1 Commercial Title: #2 Commercial Title: Etc.Label the back of each example with entry number, campaign title & brand.

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_____________________________________________________________________________ Out-of-Home/Outdoor Advertising

Submit a bound portfolio of your out-of-home materials to demonstrate the longevity of the campaign. The portfolio must include, at minimum, the original execution and the most current execution, and may not have more than 10 executions, with a maximum of 2 per year.

The portfolio and its contents may be no larger than A3. Photographic prints or bromides must be mounted on black cardboard (no foam board). Each execution must be labeled on the back with:

- Entry Number - Name of the execution and the year it ran- Brand name- Campaign title

Provide one copy of the portfolio for judging purposes. Each portfolio must be labeled on the back with the entry number, brand name and campaign title.

Out-of-Home/Outdoor Advertising#1 Campaign Title: Limit one portfolio. Label the back of the portfolio with entry number, campaign title & brand.

Interactive/On-line

All entries which have appeared online must be submitted as a URL pointing to an online version of your entry (banner ads, viral movies, websites and all online material). This includes entries which are no longer “Live”. Only work created specifically for delivery on CD-ROM will be accepted on CD. Provide a user name and password if the entry is on a secure site. The domain name must not identify the agency.

Interactive/On-Line#1 On-line Title: #2 On-Line Title:Etc.Label case with entry number, campaign title & brand.

NOTE: Should your campaign be a finalist, you may be asked to submit additional materials to showcase your campaign for the EFFIE Awards Gala and possible publication.

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_____________________________________________________________________________ Please complete & submit 7 copies of this form stapled to the rest of your entry form.

Your entry number MUST be included in the top right hand corner of this form.

Note: 10% of the total mark is the overall quality of the entry e.g. how well it is written, credibility, persuasiveness, etc. In the Sustained Success category, the quality of the writing and persuasiveness will be considered very carefully by the judges and is worth 10% , compared with 5% in other categories.

Questions 1-4 should be completed online. Questions 5-13 are to be completed using this form.

A. Executive Summary

Executive Summary: Please write no more than 200 words. (5%)Summarise your entry. Write this last. Use it to grab the judge’s attention. Highlight the difficulty of the challenge, the brilliance of your strategy and how you executed it to drive excellent results. Most importantly how you sustained success and drove performance over an extended period.

Who’s laughing now?

You know you’ve set the cat amongst the pigeons when

one of your competitors publicly calls your advertising ‘reprehensible’ and ‘outrageous’1

and when an otherwise normally even-tempered respected financial analyst incites revolt on your behalf23 .

But all’s fair in love and war,

And this is exactly the response that Kiwibank intended when it decided to challenge the ‘cosy quartet of banks that dominate New Zealand’s financial system’ with its unashamedly patriotic advertising campaign.

Kiwibank first opened for business in March 2002.

Come the launch of its brand advertising campaign in April 2006 Kiwibank had amassed just over 400,000 customers…

and a reputation as the bank for blue collar workers, beneficiaries and the unemployed looking for a cheap deal from a bank with a comparatively primitive product and service offer.

This was not what Kiwibank intended – nor was it the truth.

1 Kiwibank ads outrageous – Former BNZ chairman. NZ Herald, December 17 2008.2 Rod Oram. Sunday Star Times, ‘It’s time to revolt against the cosy quartet of banks…’ 21/6/093 Kiwibank ads outrageous – Former BNZ chairman. NZ Herald December 17,2008.

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To be a viable and sustainable business Kiwibank needed to grow both the number and the average value of its customers.

The role of brand advertising in this was to1. convince the public that Kiwibank was a modern, professional and credible main bank alternative, and2. make the bank attractive to higher value customers

By unwaveringly adhering to its challenger brand ethos over a sustained period, and in the face of aggressive competitor response, Kiwibank’s advertising has achieved outstanding success for a bank only 7 years old:

The total number of customers has increased 67%

The average value of Kiwibank customers has increased 81%The total value of the Kiwibank customer base has increased by just over $7 billion – an

increase of 185%

Kiwibank is now in the strongest position of all banks to retain current customers and attract new ones4.

At February of this year 42% of all people thinking of changing banks were thinking of changing to Kiwibank5

The idea of Kiwibank was scoffed at when it was first introduced.

Guess who’s got the last laugh now?

B. Background

5. Marketing Challenge: Set the scene, in the beginning and more recently (5%)A concise description of the market and the role of the entry within that market. The description should briefly recap industry trends, the competitive environment and positioning. How tough is the competitive environment? How difficult a position is the entrant in? How ambitious is your vision.

4 Colmar Brunton April 20095 Roy Morgan February 2009

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_____________________________________________________________________________ Long term category trends, etc. Cite sources wherever possible.

To be a viable and sustainable business Kiwibank needed to grow both:

1. the number of customers 2. and in particular the average value of its customers.

Before the campaign’s commencement Kiwibank was saddled with a number of challenges that would make this difficult.

1. Generally, people can’t be bothered moving banksResearch6 shows that only 6% of customers are seriously unhappy with their bank, and that only a small percentage of these actually change. It’s easier just to stay put.

2. Kiwibank was seen by some as a political football7

Kiwibank was launched as a political initiative. Throughout it’s life Kiwibank has been either tainted with the image as ‘the social welfare bank’, or destabilised with rumours that it was to be sold.

3. Kiwibank had backed itself into an unattractive corner of the market ‘…what people thought they knew about Kiwibank wasn’t pretty. For most it was a low-cost low-service bank with unsophisticated products for low socio-economic groups looking for a cheap deal. Or to be blunt- ‘the bank of last resort.’8

4. The retail experience of Kiwibank branches being within Postshops was off-putting – especially for higher-value main-bank prospects9

‘Is Kiwibank professional enough to look after my money?’‘I would never do my private banking with all those people hanging over my shoulders’‘It’s like the difference between going to a restaurant and a take out’

5. Kiwibank was a relative babe in the woods in a category that prizes longevity and heritage as indicators of strength and stability10

ASB since 1847Westpac since 1861BNZ since 1861National since 1873Kiwibank since 2002

6 David Tripe, Massey University, reported in NZ Herald 7.3.077 Colmar Brunton, Kiwibank as a Main Financial Institution – Why Not? June 20078 Research New Zealand (BRC) Barriers to Switching, March 20049 Kiwibank as a Main Financial Institution - Why Not? Colmar Brunton June 2007

Fujtisu / Kiwibank 200610 Kiwibank as a Main Financial Institution - Why Not? Colmar Brunton June 2007

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6. and before the campaign launch New Zealanders didn’t know enough about the foreign ownership of other banks to really care that Kiwibank was Kiwi-owned

‘that’s great - but who cares. If they do their job right I don’t care if they are Asian owned.’11

Kiwibank was in it for the long haul but had some pretty big mountains to climb –the biggest being its brand image.And we’d only a fraction of the advertising spend to fight our competitors with.

11 Colmar Brunton AdDeveloper 2005

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6. Target Audience: Who is the target market? (5%)Provide a target audience definition and rationale. To whom was the campaign directed? Why was this target selected? Provide an appropriate profile of the target. Provide insights about that audience. Don’t just provide demographics. Use rich descriptions to bring them to life. Did the target audience change over time or not?

Before the campaign commenced Kiwibank had just over 400,000 customers, 20% of which were defined by segmentation as Battlers.12

Battlers were the legacy of the bank’s 2002 origins as ‘Jim’s bank’13. Their primary focus is to manage their financial situation to make ends meet.They were more likely to be average to below average in their salary and asset positions, only use the odd banking product, and more likely to have a higher level of arrears and penalty fees – so not surprisingly, cost more to service and are less profitable to the bank.

Unfortunately these 20% customers cast a shadow over Kiwibank’s image as a whole – and had earned it the reputation as the bank for blue collar workers, beneficiaries and the unemployed looking for a cheap deal from a bank with a comparatively primitive product and service offer.

Or as one research participant put it – ‘the bank of last resort.’

Kiwibank needed to shake the ‘Battler’ image and attract a more profitable customer.

The key drivers of longer term profitable relationships is the customer segment described as Delegators.14

Delegators are more concerned with products and services that meet their needs than they are with price. They seek advice and as a result will generally be more loyal. They are willing to pay more as long as they are satisfied that their needs are being met, and utilize more of a banks products and services. As a result they are higher in value and more profitable to the bank.

Key demographic characteristics of Delegators are:1. a personal income over $50,000; skewed to over $70,0002. savings and investments over $10,000

26% of Kiwibanks customers were Delegators at the time the bank commenced.

So while our overall targeting has been based on the need to sustain the acquisition of mass-market middle-New Zealanders with a media buying audience of all people 25-54 with a household income of $60k+,

12 Fujtisu/Kiwibank, 200613 Jim Anderton, then Alliance leader and MP who launched the bank as means of lowering the cost of banking for lower-wage New Zealanders14 Fujitsu/Kiwibank, 2006

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our primary objective over the life of the campaign has been to get more Delegators to bring all of their banking to Kiwibank,

and to lower exposure to price sensitive/rate chasing customers.

Further research15 revealed insights into the sort of attributes Delegators expect in a main bank relationship.

Overall they wanted the feeling of security that comes from dealing with a ‘real’ bank, where ‘real’ means:

1. a bank with heritage and longevity2. a bank with strength in the market place3. a bank who is a respected expert in their field

Clearly for Kiwibank, barely 4 years old at the time of the campaign launch, these were going to be big barriers to get over – but barriers the campaign needed to address nonetheless.

15 Colmar Brunton, Kiwibank as a Main Financial Institution, 6/2007

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_____________________________________________________________________________ 7. Campaign Objectives: What were you aiming to achieve? (5%)Give specific goals for your campaign. Examples: to meet a share or sales target; to obtain a specific behavioral response; to modify existing brand perceptions; to establish new product awareness. Be specific. Cite your overall/over-arching goals as well as your focused measures. Speak about the objectives and how they may have changed over time.

Business, Brand and Advertising objectives were all aligned with Kiwibank’s overarching business objective of achieving sustainable profitable growth as follows:

1. Which Business Objectives were linked to the campaign’s performance?

The key business metrics that the campaign would have an impact upon were:

Objective: To maintain an average of 1800 customers joining Kiwibank every week throughout the campaign

Objective: To meet Kiwibank’s growth target of a 1% market share gain annually

Objective: To increase the average customer value from $9,900 as at launch April 2006

Objective: To increase the proportion of higher value Delegator customers (from 26.2%) and reduce the proportion of Battlers (from 19.8%)16

Objective: To increase the share of main bank customers i.e. people giving all of their banking to Kiwibank from 4.8% as at launch April 2006

2. Which Brand Objectives would directly impact upon these key business metrics?

The main job of the brand was to drive consideration of Kiwibank as main bank option for higher value customers.

To do this we needed to move the target audiences commitment to use Kiwibank, through 3 stages:

1. Awareness and understanding of Kiwibank’s brand position, to

2. Trial of Kiwibank as a secondary customer (i.e. still with business at other banks), to

3. Main Bank customers of Kiwibank (i.e. having all of their business with Kiwibank

The following measures were put in place as drivers of consideration and measured over time using brand tracking:

16 Segmentation data was not available before January 2007

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_____________________________________________________________________________ Objective: Strong awareness and clarity of Kiwibank’s brand positioning Objective: Reduced rejection and increased attraction to the Kiwibank brand Objective: Clear separation from the competition to drive consideration

Specific brand objectives were put in place to measure increased consideration amongst higher value main bank customers

Objective: Increased confidence in Kiwibank for ‘all my main banking’Objective: Increased consideration amongst higher income Delegators i.e. $50k+ and $70k+

3. What would be Advertising’s role in influencing shifts in consideration for Kiwibank?

The campaign was measured against those things that would help shape the perceptions needed to drive brand consideration. Again these were measured over time using brand tracking.17

Objective: Maintain high awareness throughout the campaign to create perceived ‘stature’ for the brand

Objective: Advertising whose content is actively engaging to compensate for a comparatively low media spend

Objective: Advertising that drives improved performance on key brand statements needed to overcome barriers to consideration.

These were clustered around each of the 3 key brand strategies:

OwnershipA brand for meHas a true Kiwi feeling about itA bank for all New Zealanders

ChallengerSets out to make banking betterSetting the trendsChallenges other banks

CredibilityProfessional ImageStableUses latest technologyTakes an innovative approach to banking

17 Continuous brand tracking did not commence until February 2007

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_____________________________________________________________________________ C. Strategy & Execution

8. Overall Campaign Strategy: The Over-riding strategy in totality (15%)For instance: positioning concept, overall creative and media strategies – mass versus direct media; above versus below the line etc. The major market or competitive thrust of the campaign. The ‘offer’ or unique sales proposition. Overview of the marketing strategy and the communications component. You might want to support this with relevant research. Provide some insights on the current strategy in the light of performance and learning’s from the previous years’ successes.

The overarching strategy to which the campaign has held true throughout its life is to position Kiwibank as the Challenger to the banking industry.

Kiwibank had set itself the mission of being the Banking Hero – the bank whose purpose it was to bring consumer value to the retail banking market.

The agency undertook proprietary research to understand what it meant to be a hero – kiwi style.

Our research identified 3 key insights about Kiwi heroes:

1. Our heroes are ordinary people who have done extraordinary things.2. Our heroes are often people who have taken on the world the Kiwi way3. Our heroes are doing it, not just for themselves, but for all New Zealand.

New Zealanders take collective ownership of the successes of other New Zealanders, and believe that one of us succeeding is good for all of us.

In summary New Zealanders have a ‘collective psychological engine’ that revels in the underdog and the small guy succeeding on the world stage.

These insights into Kiwi heroes lay the platform for the campaign strategy and creative execution that was to follow, as laid out in the single minded proposition:

Kiwibank is taking on the world of banking on behalf of all New Zealanders

The Challenger Strategy had 3 aims:

1. OwnershipOvercome previous rejection of the brand by getting New Zealanders to embrace the bank as their own2. ChallengeCreate separation from, and reposition all the other banks. All Challengers need an enemy and we had defined ours and repositioned them as the bad guys. In fact the phrase ‘Aussie banks’ now commonly referred to by the media was seldom used before the campaign’s launch. Now it is quoted with regularity.3. Credibility

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_____________________________________________________________________________ Convince people that Kiwibank is a modern, professional and credible main bank that is smart, innovative and fast moving.

The Challenger Strategy turned the simple but powerful truth of being Kiwi owned into a rallying cry that would galvanise New Zealanders apathy and turn it into action – and Kiwibank into a cause celebre.

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_____________________________________________________________________________ 9. Creative Strategy: The ‘Big Idea’ or Winning Strategy? (10%)Describe the strategy upon which the advertising is based. What was the message you wanted to communicate? Why was this message chosen? What insight about the target audience or marketplace led to this strategy? The single minded proposition. How did it deliver against the marketing challenge and objectives? How did this change and evolve over time?

Launching the Challenger story

Kiwibank needed a ‘story’ - something to give it the authenticity it needed to overcome its recency, and a sense of momentum to overcome any concerns that Kiwibank wasn’t here to stay.

Research highlighted that Kiwibank wasn’t sufficiently emphasising its unique point of difference - Kiwi ownership. It was critical that the new campaign leveraged Kiwibank’s Kiwi ownership and communicated the relevant banking benefits of this to customers.

That is, the campaign should not just emphasise that Kiwibank is Kiwi, it should demonstrate why this makes Kiwibank a better bank for New Zealand banking customers.

The idea of ‘ownership’ became our touchstone.

We set about giving Kiwi’s pride of ownership in their bank, Kiwibank, and did so with the spirit of a Challenger Brand.

We developed a model of what it would take to live and act like a Challenger Brand and built the campaign around these principles:

1. Creative should aim for thought leadership in the category2. Creative should aim for social currency by being relevant and topical where possible3. Creative should have a sense of restlessness and innovation.4. Creative should disrupt and speak with a voice unlike anything that would be expected of the category.

Our solution was to create a brand with a rallying cry, one anchored in the banks mission, but deeply connected to the Kiwi psyche.

Out of this emerged the Call to Arms campaign and a unique brand signature:

- the little green car - a plucky smart alternative in a world of big bank limousines- a down-to-earth Kiwi voice – a voice on the side of the Kiwis who bank with Kiwibank- a quirky rendition of our national anthem

Fighting the backlash

The Call to Arms campaign had endeared Kiwibank to the New Zealand public.

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But now we had a real fight on our hands.

The Aussie banks previously sniffed at Kiwibank but were now feeling threatened and were doing all they could to hold on to their more profitable ‘middle market’ customers – the ones Kiwibank wanted.

We had to stir the emotions of the ‘middle market’ who are looking for a more ‘credible’ banking partner.

Our solution was to utilize the wave of people who were now joining Kiwibank and turn it into a ‘movement’.

The Join the Movement campaign was born.

The Movement tapped into:

-the high levels of word-of-mouth recommendation that Kiwibank had developed, - and the truth that more and more people were actively considering a move to Kiwibank than any other bank, both of these being endorsements of the difference that Kiwibank was making, and important underpinnings of the brand’s credibility.

Join the Movement built ‘credibility’ into the Kiwi-owned story by letting us show how Kiwibank was leading improvement in the banking category overall, with a call to action that was an invitation to ‘join the cause’ - an easier proposition than asking people to switch.

It said the Aussie banks have been forced to lift their game and play catch up.

So whether you’re a Kiwibank customer or not, banking is a whole lot better thanks to Kiwibank.

To enhance the sense of strength and professionalism that people wanted from Kiwibank we added scale in the form of an epic resistance to the Aussie invasion, and ‘savvy’ with the introduction of the heroine of The Movement.

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_____________________________________________________________________________ 10. Media Strategy: Overall Media Rationale (5%)Describe the rationale for the media selection. Give some indication of the size of your media budget in relation to your competition and versus last year. What we want to know here is what were your priorities and why, what was the thinking that led you to the choices you eventually made. What was the media mix, weighting, and rationale. You might include relevant research that led to these choices. We especially want to know about the development of the media strategy over time; what changed and what stayed the same and why?

The media task was to give Kiwibank a level of presence and stature far beyond what its budget would normally suggest possible.

Television was chosen as the anchor channel for several reasons:- the ability to emotionally engage people with Kiwibank’s challenger mission- the ability to give the brand to convey strength and credibility- the ability to quickly and cost-effectively build reach- the ability to deliver a consistent presence to help trigger the decision to switch

banks – which could happen at any time

And a constant presence in the authoritative environment of newspapers helped us address the credibility concerns that existed to begin with.

However, just as the creative approach had developed a ‘lighthouse identity’ with strong cut-through – a key tenet of being a Challenger Brand, the media strategy also employed a key tenet of Challenger Brand thinking – that of ‘disruption’.

We employed 3 key disruption strategies:

1. We disrupted by investing in channels where banks were traditionally seldom seen – or if so, we only lightly present.

In our favour was a series of highly efficient television creative executions which research told us required comparatively low levels of exposure to cut-through effectively.

This allowed us to lower the proportion of spend on television and invest in a diverse mix of other channels that we could confidently dominate at any one time.

These included cinema, outdoor, magazines and radio – mediums not heavily used by our competitors.

2.We disrupted in the way we utilized our channels.

We took a fresh approach to media use for a bank e.g.:

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_____________________________________________________________________________ - we over invested in the use of large billboards at launch to announce the challenge we were throwing down to the big banks.- we took banking to the streets with our pioneering use of the Smartmove fleet of smart cars; and dominated the use of adshels – a street-level medium consistent with the notion of Kiwibank as the banking ‘street-fighter’

3. We used media to provoke controversy and generate unpaid media

- we placed ads in newspapers at short notice whenever our competitors gave us the opportunity to embarrass them- we sailed a sign-written barge in Wellington harbour to protest the profits of Aussie banks being shipped back to Australia- we turned Australasia’s largest billboard into a digital counter to convey the amount of Kiwi money leaving New Zealand every minute of everyday

As a result we have created a platform that has allowed Kiwibank to generate additional levels of unpaid media coverage that has increased throughout the life of the campaign.

11. Media Plan: Execution of Media Choices (5%)

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Source: NZ Post Intranet Newsroom Press Article Tracking

Kiwibank Press Mentions

0

50

100

150

200

250

Positive

Neutral

Negative

Total

Jan 2006

June 2009

Campaign Period

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_____________________________________________________________________________ List all media used in this campaign, even those not included in the EFFIE entry materials.e.g., Television, Radio, Newspaper, Trade/Professional, Consumer Magazine, Direct Mail, Point-of-Purchase, Out-of-Home, Public Relations, Sales Promotion, Interactive/On-Line etc. What we want to know here is how you annually executed your plan and some explanation of that.

The rationale and strategy for the execution of our media strategy has been explained previously.

Worth noting is that Kiwibank’s media strategy has allowed it to deliver category leading brand and advertising awareness without significantly increasing its share of media spend.18

Kiwibank’s share of media spend increased from 7% before the campaign, to just over 10% throughout the campaign.19

Source: Nielsen Panorama

Media Budget:Please use the following budget ranges:Under $1m per year$1m – $3m per year$3m - $5m per yearOver $5m

Allocation of Media by year

TV Radio Newspaper Magazine Cinema Outdoor Unadd. Online

18 for awareness refer results section to follow19 Neilsen Panorama

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Share of ratings 25-54 HHI $60 plus

0%

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2005 2006.00 2007 2008 2009

Kiwibank Ltd

Westpac Bank Ltd

TSB Bank

Rabobank

National Bank Of NZ Ltd

BankDirect

Bank Of New Zealand

ASB Bank Ltd

ANZ Banking Group (NZ) Ltd

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_____________________________________________________________________________ Direct Mail

1/4/06-31/3/07

Year 1

65.72 2.53 20.02 3.92 0.00 2.32 3.54 1.95

1/4/07-31/3/08

Year 2

60.57 1.56 24.33 1.78 0.00 5.39 1.35 5.01

Media Budget

2005 – 2006 $4.4m

2006 – 2007 $5.6m

2007 – 2008 $5.7m

2008 – 2009 $5.7m

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Entry Number

______00139_________

_____


_____________________________________________________________________________ 12. Other Communication Programmes: (0%)There are no points awarded for this section. The aim of this information is to assist the judges to understand what else was in play during the period and how it either supported or deviated from the overall campaign. Any other relevant information you feel it is important for judges to know about?

Summarise other relevant communications programmes implemented in conjunction with this campaign, e.g. coupons, sales promotion, PR, sampling, direct response, point-of-purchase, etc. Indicate the extent to which any revised pricing, distribution or promotion programs affected the results of the campaign.

Or indicate that no other communications programs were used in conjunction with this Advertising Campaign.

Kiwibank had an ongoing direct marketing programme primarily aimed at cross-selling product and services. This was a continuation of ‘business-as-usual’ activity. The primary change in activity was the implementation of the brand campaign – and while direct marketing would have assisted in the conversion of prospects to customers, it is fair to say that the majority of impact upon Kiwibank’s fortunes has come from the brand campaign.

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Entry Number

______00139_________

_____


_____________________________________________________________________________ D. Results

13. Evidence of Results: (35%)The evidence must relate directly to campaign objectives. If the objective was to increase sales, indicate sales response to the campaign. If the campaign attempted to bolster corporate image, how did your measures show this? You need not disclose confidential information. Proof of performance may be indexed if desired. Please be as specific as possible in documenting all evidence. Provide sources of data, research involved and the time period covered for the results provided.

Business Objectives:

Objective 1: To maintain an average of 1800 customers joining Kiwibank every week throughout the campaign

Result: An average of 1953 customers have joined Kiwibank every week throughout the campaign

Result: Total Kiwibank customers (net of churn) have increased by 255,128 or 67% 1.1.06-30.6.09

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Average number of customers joining Kiwibank every week

0

500

1,000

1,500

2,000

2,500

3,000

to 31.12.06 to 31.12.07 to 31.12.08 to 30 June 2009Number of customers weekly

Average #Target average

Average achieved

Source: Kiwibank

Entry Number

______00139_________

_____


_____________________________________________________________________________

Source: Kiwibank

Objective 2: To meet Kiwibank’s growth target of a 1% market share gain annually

Result: Kiwibank has over-achieved its growth target of a minimum gain of 1% market share annually, while most other banks have lost share

Important to note:

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Total Kiwibank Customers

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

to 31.12.05 to 31.12.06 to 31.12.07 to 31.12.08 to June 2009

Customers

Annual Market Share Movement to February 2009

-2.00%

-1.50%

-1.00%

-0.50%

0.00%

0.50%

1.00%

1.50%

2.00%

ANZ ASB Bank BNZ (Bank of NewZealand)

Kiwibank (FromMay02)

National Bank (NBNZ) Westpac

Source: Kiwibank

Entry Number

______00139_________

_____


_____________________________________________________________________________

Objective 3: To increase the average customer value from $9,900 as at launch April 2006

Result: Average customer value has increased from by 81% to $17,949

Objective 4: To increase the proportion of higher value Delegator’customers (from 26.2%) and reduce the proportion of Battlers (from 19.8%)20

Result: Delegators have increased to 34% of the total customer base

Proportion of customer base January 2007 January 2009

Delegators 26.2% 34%Battlers 19.8% 12.8%Source: Kiwibank

20 Segmentation data was not available before January 2007

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Average customer value

$0.00

$2,000.00

$4,000.00

$6,000.00

$8,000.00

$10,000.00

$12,000.00

$14,000.00

$16,000.00

$18,000.00

$20,000.00

Mar-06Jun-06Sep-06Dec-06Mar-07Jun-07Sep-07Dec-07Mar-08Jun-08Sep-08Dec-08Mar-09

Average customer value

Source: Kiwibank

Entry Number

______00139_________

_____


_____________________________________________________________________________ Objective 5: To increase the share of main bank customers i.e. people giving all of their

banking to Kiwibank from 4.8% as at launch April 2006

Result: Kiwibank share of main bank has increased to 6.9% over the period of the campaign

Brand Objectives:

Objective 1: Trade prospects up from Awareness and Trial to Main Bank Customers of Kiwibank

Result: Trial, Bank Nowadays and First Choice have all increased significantly throughout the campaign

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February-May 2007 April 2009Trial 18% 28%Bank Nowadays 10% 17%First Choice 14% 20%Source: Colmar Brunton

Feb06 - Jan07

Mar08 - Feb09

ANZ ANZ 15.4% 13.90%ASB Bank ASB Bank 16.2% 17.80%BNZ BNZ 13.1% 12.50%Kiwibank Kiwibank 4.8% 6.90%National Bank National Bank 17.8% 16.60%Westpac Westpac 19.3% 18.60%Source: Kiwibank

Entry Number

______00139_________

_____


_____________________________________________________________________________

Objective 2: Strong awareness and clarity of Kiwibank’s brand positioning

Result: Kiwibank has the highest brand clarity index (n=17) in the banking category.21

‘Kiwibank is one of the great banking success stories of this decade…Of all the major banks, Kiwibank’s challenger brand status is the easiest to grasp. Since 2002,

the bank has been telling the epic story of the resistance movement when a little Kiwi-owned bank started taking on the Aussie banks.22

Objective 3: Reduced rejection and increased attraction to the Kiwibank brand

Result: More people feel favourable towards Kiwibank than any other bank23

Source: UMR Research

21 Colmar Brunton, Brand Tracking22 Richhad Brookes, University of Auckland. Marketing Magazine, 5/200923 UMR Research

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Entry Number

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_____________________________________________________________________________

Result: Kiwibank is in the strongest position to retain current customers and recruit new customers24

Source: Colmar Brunton

Result: “As at Feb 09 42% (or 94,000) of all people thinking of changing banks, were thinking of changing to Kiwibank”. 25

Objective 4: Clear separation from the competition to drive consideration

Result: Kiwibank sets itself apart from all other banks

24 Colmar Brunton25 Roy Morgan

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Entry Number

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_____


_____________________________________________________________________________

Objective 4: Clear separation from the competition to drive consideration

Result: Kiwibank sets itself apart from all other banks


Objective 5: Increased confidence in Kiwibank for ‘all my main banking’

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Confidence in Kiwibank for all my banking

0% 20% 40% 60% 80% 100%

PreCampaign.

Jan-Mar.

PostCampaign.

Mar-Jun.

Following PostCampaign.

Jul-Oct.

Oct - Dec 08

Jan - Mar 09


1 OK for minor banking

2

3

4

5 Confidence for all mybanking

Entry Number

______00139_________

_____


_____________________________________________________________________________ Objective 6: Increased consideration amongst higher income Delegators i.e. $50k+ and

$70k+

Result: The number of people actively considering Kiwibank with incomes $50k+ and $70k+ has increased throughout the campaign26


26 Context: 35% of the population have a personal income under $15k38% of the population have a personal income $15k-$40k27% of the population have a personal income over $40kSource: Statistics NZ 2006 Census

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Source: Roy Morgan

Campaign Period

Entry Number

______00139_________

_____


_____________________________________________________________________________

Advertising objectives:

Objective 1: Maintain high awareness throughout the campaign to create perceived ‘stature’ for the brand

Result: At 85% Kiwibank advertising awareness is the highest in the category

February – May 2007 April 2009Brand Spontaneous Awareness

76 76

Brand Prompted Awareness

99 99

Total Advertising Awareness

79 85


Objective 2: Advertising whose content is actively engaging to compensate for a comparatively low media spend

Result: Kiwibank advertising is involving, distinctive and interesting


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Entry Number

______00139_________

_____


_____________________________________________________________________________


Objective 3: Advertising that drives improved performance on key brand statements needed to overcome barriers to consideration.

Result: Performance on key brand statements has improved dramatically throughout the campaign period

Improved performance on key brand statements over campaign period

0 10 20 30 40 50 60 70 80 90

Innovative approach to bankingUse latest technology

Stable*Professional image*

Challenge other banksSetting the trends

Sets out to make banking better

A Bank for all New ZealandersHas a true Kiwi feeling about it

Brand for me

Credibility

Challenger

Ownership

*not measured Feb-May 07. Base is from Oct-Dec 07. Source: Colmar Brunton

Apr-09Feb-May 07

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Entry Number

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_____________________________________________________________________________

Result: Those who have seen the advertising score Kiwibank higher on key brand statements than those who haven’t27

Positive influence of having seen Kiwibank advertising cf. those who havent seen it

0102030405060708090

100

Innovativeapproach to

Innovativeapproach to

Use latesttechnologyUse latesttechnology

Stable*Stable*

Professional

image*

Professional

image*Challenge

other banksChallenge

other banksSetting the

trends

Setting the

trends

Sets out to

make

Sets out to

make

Brand for

me

Brand for

me

Has a trueKiwi feelingHas a trueKiwi feelingA Bank for

all New

A Bank for

all New

Feb-May07

Apr-09

Feb-May07

Apr-09

Feb-May07

Apr-09

Feb-May07

Apr-09 Feb-May07

Apr-09

Feb-May07

Apr-09

Feb-May07

Apr-09 Feb-May07

Apr-09

Feb-May07

Apr-09

Feb-May07

Apr-09

Seen

Not Seen


27 By April 2009 85% of people were aware of Kiwibank’s advertising. This means the numbers of people who have not seen Kiwibank’s advertising is relatively small – and sample sizes for ‘Not seen’ tend to reflect this.

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Entry Number

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_____________________________________________________________________________

Return on Investment

1. Since the brand re-launch total customer value has grown from just over $4b to $11.4b - an increase of 185%

Source: Kiwibank

2. The net value gain to Kiwibank during the campaign period was $7,373,994,002.93

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Total customer value 2006-2009

$0.00

$2,000,000,000.00

$4,000,000,000.00

$6,000,000,000.00

$8,000,000,000.00

$10,000,000,000.00

$12,000,000,000.00

Feb-10Apr-10Jun-10Aug-10Oct-10Dec-10Feb-11Apr-11Jun-11Aug-11Oct-11Dec-11Feb-12Apr-12Jun-12Aug-12Oct-12Dec-12Feb-13Apr-13Jun-13

Total value

Total customer value has grown by 185%

Total customer value31.3.06 $4,018,294,715.0431.5.09 $11,392,288,717.97Gain $7,373,994,002.93

Entry Number

______00139_________

_____


_____________________________________________________________________________

3.For every dollar spent on marketing acquisition, $1.46 in revenue has been returned to Kiwibank28

Main Bank Customer Return on InvestmentThe return on investment on marketing spend throughout the campaign was 46%.That is for every dollar spent on marketing acquisition $1.46 in revenue was returned to Kiwibank.

ROI formula:

Growth in annual Main Bank customer revenue* less annual marketing acquisition cost

Annual marketing acquisition costs

4. Kiwibank’s advertising is highly efficient in that it generates high levels of awareness for every dollar spent

28 *calculated as follows:1.Net growth in main bank customers per financial year2.Multiplied by the average monthly revenue of a main bank customer3.Multiplied by 12April 2006 to June 2009 ROI is:･Net Main Bank growth = 92,088 customers･Revenue for those customers = $41,401,398･Acquisition spend during that period = $28,297, 240ROI = 46.3%i.e. 41/28 = 146%i.e every dollar spent on acquisition returned $1.46 in revenue

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Entry Number

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_____________________________________________________________________________

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Entry Number

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_____________________________________________________________________________

Mitigating Arguments

Q. Has Kiwibank acquired new customers by opening new branches?A. No. The number of Kiwibank (Postshop) outlets has remained unchanged throughout the campaign. Further, for some people, the branch outlet is an impediment that the brand has had to overcome.

Q. Has Kiwibank simply ‘bought’ business with low lending rates?A. No. Kiwibank’s pricing strategy has remained unchanged since before and during the campaign. Its floating mortgage rate has consistently been below the market since the bank first opened for business. Latterly the margin of difference has lessened with the economic downturn meaning Kiwibank has in fact lost some of its price advantage, rather than benefited disproportionately from it. This suggests that something more than price alone is attracting people to Kiwibank

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Retail Outlets 2004 to 2009

240323 325 324 325 326

672 667 662 656 627

880

995 992 986 981 953

0

200

400

600

800

1000

1200

Our Commitment

2004 - 2005 2005 - 2006 2006 - 2007 2007 - 2008 2008 - 2009

Number of Outlets

Corporate & Franchise

PostCentres

Total Outlets

source: NZ Post Published Annual Reports (http://www.nzpost.co.nz/Cultures/en-NZ/AboutUs/OrganisationalInformation/AnnualReports.htm)

Entry Number

______00139_________

_____


_____________________________________________________________________________

Q. Kiwibank acquired a good number of Superbank customers when they shut up shop. How has artificially boosted the success of the campaign?A. No. Kiwibank acquired 10576 Superbank customers in Aug/Sept 2006. Only 7012 of these accounts remain today with a balance greater than $0. This is just over 1% of total Kiwibank customers and therefore has not had a significant impact.Source: Kiwibank

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Source: goodreturns.co.nz

Entry Number

______00139_________

_____


_____________________________________________________________________________ Entries that clearly demonstrate a logical flow from (1) identification of strategic priorities through to (2) development of plan and execution of plan to (3) attitudinal and behavioral changes resulting in (4) sales, market share and customer growth tend to score more highly than entries that just show results alone.

It is essential to demonstrate robust and quantifiable evidence that clearly isolates the impact of the advertising campaign and shows how the campaign met the stated communication objectives.

Papers that demonstrate their campaign had positively impacted all the following measures tend to stand the strongest chance of making finalist or higher:

1. advertising measures (e.g. awareness, correct message take-out)

2. and brand perception shifts (e.g. key brand associations, brand favourability)

3. and, critically, business influence (e.g. sales, market share, profit or savings)

When quoting sales and market share increases, papers must provide the overall market context and, wherever possible, comparable data for key competitors. Failure to do so will result in loss of marks.

For sustained success we need you to show this information over the period covered by the entry.

Return on Investment:Are you able to highlight the thinking that materially contributed to the Return on Investment i.e. the marketing and communication inputs that drove customer and/or sales outputs.

NOTE: All data presented here MUST reference a specific source. This could be advertiser data, agency research or third-party research companies. We reserve the right to verify the accuracy of the data with the source named. Agency names should NOT be mentioned. If your agency is the source of your research, reference “Agency Research”. We reserve the right to verify the accuracy of the data with the source named. Not referencing a source will result in the data being ignored in the judging process.

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kiwibank 00139 sustained success final

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