Opening statement • The public relations campaign that launched Virgin Money is worthy of a PRISA PRISM award for the simple reason that it illustrates precisely how public relations is one of the most powerful marketing tools available to South African companies • “One of the best banking product launches in South African history,” conceded Peter Wharton Hood, Standard Bank’s CEO of Personal and Business banking – 702 Talk Radio – business.iafrica.com/opinion/632900.htm • “There is an obvious link between Virgin Money’s success in meeting and exceeding its targets in South Africa and the public relations’ campaign that launched it.” – Sir Richard Branson Opportunity statement Virgin Money - a joint venture between the Virgin Group and Absa Bank - launched nationwide on 26th June 2006 offering its first product – a non-tiered credit card with no annual or loyalty fees, an interest rate of 0% for the first three months, and 15.75% thereafter, and a flat 5% interest rate on any positive balance • Its business objectives were 150,000 cards within the first year of operation Research Prior to the launch, research illustrated issues pertinent to the public relations campaign • Consumers were generally unaware of credit card fees and interest rates they were charged, and were indifferent about this due to the lack of clear communication from their banks • Low awareness of eligibility for credit cards and a belief that they were for rich people • High expectations of Virgin Money to shake up the banking world, offering real value from day one • Consumers generally had one bank, one credit card and one store card and displayed apathy to change. They needed to: realise they were being ripped-off; demand a better deal; and see real value in Virgin Money’s offering Planning 1. Launch campaign objectives: a. Build awareness, affinity and trust in the Virgin Money brand and its presence in the credit card market b. Drive understanding of the credit card’s product features and benefits, differentiating it from competitor offerings c. Give people compelling reasons to apply for Virgin Money’s Credit Card 2. Campaign measurement criteria: a. Unique hits on www.virginmoney.co.za b. Number of calls received by the call centre c. Number of approved credit card applications indicating the campaign’s success in attracting the desired target market 3. Public to be reached and desired actions: a. The consumer action required from Virgin Money’s targeted market was to apply for Virgin Money’s Credit Card via the website/call centre 4. Messages formulation: a. Rule No.1 was to differentiate every message, be confrontational, be ‘Virgin’ with a healthy sense of ‘fun’. We had to challenge the status quo and expose the shortcomings in the incumbent’s credit card offerings, allowing us to present Virgin Money’s Credit Card benefits in a favourable, straight-forward manner b. All messages focused on making consumers aware that they were being ‘ripped-off’ by their banks, and now were able to choose a credit card that offered the best value in the market 5. Communication channels: • Target audience would be reached through traditional media channels – television, radio, print, and online • The launch deserved widespread news coverage – not just the business pages - so media was further sub-divided into general news, business news, personal finance, social, consumer, and trade 6. Vehicles carrying messages into media: a. Richard Branson - the man and personality b. Record-breaking stunt that captured the public’s attention c. Press conference with confrontational messaging through an in-your-face press release - combined with product benefits d. Extensive one-to-one media interaction with John Maxwell, MD of Virgin Money and Branson e. ‘Blingola State Show’ launch party at Johannesburg City Hall for tier 1 celebrities, media, and Virgin Money staff 7. Management consultation to secure support for campaign: • Planning commenced in April 2006 with Virgin Money and Virgin Group management to ensure full integration with its marketing strategy, and support, agreement and understanding from Branson’s international team Execution Branson was only available from late Sunday 25th June to early Tuesday 27th June. His time was precisely planned to the last minute to maximise his availability. Sunday 25th June • Embargoed one-to-one print media interviews and photo-shoots, including international press, to communicate to Virgin Group corporate stakeholders internationally • Face-to-face interaction from Branson and Maxwell with Virgin Money’s stakeholders – MasterCard and Absa • On-location TV interview with SABC3’s 3Talk • Stunt pre-brief and test-run with Branson Monday 26th June • ‘A day in the life of Branson’ – exclusive media access for Sunday Times throughout the day • ‘Breakfast with Branson’ – exclusive access to Branson for Primedia radio stations from 7am–9am. The ‘Rude Awakening’ on 94.7 Highveld, John Robbie on Talk Radio 702, Cape Town’s Kfm and 567 Cape Talk. • ‘Record-breaking PR stunt’ – With 80+ print, online and broadcast media waiting below, Branson slid 450m at 70km/h down the longest and steepest ‘foofie slide’ in SA from the top of the Sandton Sun Hotel into Virgin Money’s parking lot, mounted a 2.6m high Virgin Money branded monster-truck, burst through a 7m high wall symbolising the R1.5bn banking rip-off and strolled into the press conference in Virgin Money’s headquarters • ‘TV interviews’ – face-to-face interviews with every station in SA following press conference • ‘Official opening of Virgin Money’s headquarters’ – ribbon cutting ceremony with staff performing Virgin Money ‘war cry’ with Branson • ‘Further face-to-face interviews’ – held in Virgin Money’s call centre to de-virtualise Virgin Money • ‘Consumer radio’ – live interviews with Kaya FM, SAfm, 5fm, and RSG • ‘Business radio’ - live interviews with Moneyweb, SAfm, Classic Business Day and Talk Radio 702 drive-time shows • ‘Blingola State Show’ launch party Tuesday 27th June • In-studio TV interview with SABC2’s Morning Live breakfast show Difficulties encountered: • Branson had launched Virgin Mobile South Africa four days before the launch of Virgin Money. We had to proactively manage the risk of the media and public being over exposed to Virgin branded communications • FNB attempted spoiling tactics by pre-launching its Kulula credit card three days before launch Evaluation 1. Media coverage • 291 pieces of coverage secured • 71 online, 114 print, 82 radio and 23 television • Total advertising value across all media – R5,287,614 2. Product success a. www.virginmoney.co.za registered 80,000+ hits in first 48 hours b. Call centre received on average 5,000 calls daily for the first two weeks c. 50,000 Virgin Money Credit Cards approved in just six weeks, equating to 33% of its first year’s business objective d. Additional couriers employed to boost delivery capacity to cope with demand e. Advertising campaign scaled back, allowing call centre to cope with application volumes 3. Research linking product success to marketing campaign a. In October 2006 Virgin Money asked its new customers – “Why did you choose us?”. This research proved that Virgin Money’s product and brand messaging were the main motivators for South Africans who became the “50,000 New Virgins” b. The public relations campaign, combined with the strength of the company’s above and below the line marketing strategy, undoubtedly drove the public awareness of the value propositions behind the Virgin Money Credit Card and brand.