Thursday, April 22, 2010

Product

Yet again, the fact that I am attempting to change behaviors as opposed to selling a product poses some interesting challenges. The most difficult aspect of this exercise was simply determining what it is that the AAA Foundation is truly selling. Ultimately I decided that the foundation is in the business of selling safe driving behavior. Even still, the attributes of safe driving that need to be emphasized for the foundation to be successful are not obvious. There are indeed obvious benefits to safe driving but they are not compelling enough within themselves to drive sustainable behavior change in teen drivers. With a retention/earn share strategy I focused on identifying a compelling experience attribute that would eclipse the benefits of cell phone usage, the behavior that the foundation is trying to earn share from. My thoughts on the foundation's product and corresponding search, experience and credence attributes are outlined below.

Product: Safe Driving
The foundation is trying to sell the behavior of safe driving to teenagers. By minimizing or eliminating cell phone usage while driving teens choose safe driving behaviors in lieu of distracted driving practices.

ATTRIBUTES:
Search:
Research - There are a great deal of statistics on the causes of traffic accidents, and numerous studies on the impact of various distractions, including cell phone usage, on driver reaction time and overall performance.

Testimonials - While there are probably not many testimonials on the joys of safe driving there are a multitude of testimonials from victims and the family members of victims of distracted drivers.

Experience:
Experience attributes for safe driving are difficult to ascertain. A great majority of the time safe driving and unsafe driving feel the same and yield the same results for the driver in question. It is sometimes very difficult to pin point the moments that the benefits of safe driving manifest themselves. Who can say that they avoided an accident because they were not using their cell phone at a certain moment in time? It is much easier to identify cell phone usage and other distractions as the culprits after an accident has occurred. Perhaps one way to gain a better understanding of the experience attributes of safe driving is to record the driver or have a passenger evaluate driver performance pre and post safe driving behavior adjustments. However even this approach may not be enough to drive sustainable changes in behavior.

Given the Foundation's retention/earn share strategy they must find a way to leverage experience attributes to differentiate safe driving behavior from cell phone usage. Given the nebulous nature of the accident avoidance experience attribute the foundation would be wise to focus on a more tangible experience attribute such as freedom and mobility. With the help of the Foundation's media plan teens will begin to equate safe driving with maintaining their freedom and mobility. They will consume more 'safe driving" at the expense of cell phone usage because while cell phone usage has its advantages, safe driving ensures that they maintain the freedom and mobility that they desire. This experience attribute will become increasingly strong as teens begin to hear about peers who have lost their driving privileges due to failure to adhere to safe driving expectations.

Credence:
For a small portion of the target audience there may be opportunities to appeal to them on the basis of the credence attributes of safe driving. There are a few teen drivers who might value the idea of being more socially responsible than their peers by putting their texting and talking desires on hold to create a safer driving environment for others on the road. You may also be able to persuade a certain number of teens that cell phone usage while driving is so irresponsible and so dangerous that they would be stupid to do it. This approach would be similar to the way some organizations attempt to discourage other potentially destructive behaviors such as smoking and drug abuse.

Monday, April 12, 2010

Execution

COMMUNICATIONS PLAN

Communication Objective: The AAA foundation has two communication objectives.

Behavioral
For teenagers the communication objective is behavior change. Through their marketing communications the foundation will paint a vivid picture of the immediate consequences of cell phone usage behind the wheel. The foundation wants to promote the idea that cell phone usage is not worth losing your newfound freedom and mobility. While this is not the most serious consequence of cell phone usage behind the wheel it is the one that will resonate most with teenagers.

Basic Awareness
For stakeholders who have the power to influence driving laws and some aspects of teenage driver behaviors (KEY COLLABORATORS: legislatures, parents, and other adult citizens) the foundation's communication objective is to heighten awareness concerning the prevalence and the resulting consequences (accidents and deaths) of cell phone usage among teen drivers. The desired result is that these stakeholders will act to minimize the risks posed to teen drivers by talking to their teenage children about the risks of cell phone usage during driving and by creating/voting for new legislation designed to deter cell phone usage among teens.

Media and Execution (Channels, Place and Time):
The foundation should leverage its research and reputation as an authority on traffic safety to increase public awareness around the prevalence and dangerous consequences of cell phone usage among teens. Foundation staff should regularly contribute short informative articles to nationally distributed newspapers such as USA Today, the Wall Street Journal, and the New York Times. They should also push to have their articles posted on popular news web pages such as yahoonew.com, cnn.com, msnbc.com, huffingtonpost.com, and foxnews.com. These articles should highlight concerns and propose solutions to the problem of distracted driving, particularly among teens. Foundation representatives should also appear regularly on radio and television programs such as NPR's Morning Edition, NBC’s Today and ABC's Good Morning America to report on the impact of cell phone usage/distracted driving among teenagers.

In addition to providing regular feeds to the media, the foundation should also target the 10 deadliest cities for teenage drivers and utilize current political relationships to align with influential city and state legislatures in those areas for the purpose of passing cell phone legislation aimed at reducing traffic fatalities caused by distracted driving. The foundation's research and curriculum design competencies make them well suited to provide legislatures with the clear, comprehensive, and credible reports they would need to make the case for new cell phone legislation.

NOTE: According to a 2009 study conducted by Allstate entitled "America's Teen Driving Hotspots" the 10 most dangerous cities for teen drivers are: 1) Tampa/St. Petersburg/ Clearwater, Fla. 2) Orlando/Kissimmee, Fla. 3) Jacksonville, Fla. 4) Nashville, Tenn. 5) Birmingham, Ala. 6) Phoenix, Ariz. 7) Kansas City, Mo. 8) Atlanta, Ga. 9) Charlotte, N.C. 10) Louisville, Ky.

With a retention/earn share strategy it is essential that the foundation deliver their message through the appropriate channels to reach the target audience at the right place and time. Assuming that the foundation's legislative efforts are successful, the second phase of the media plan should speak directly to teens and reinforce the message that cell phone usage while driving can result in license suspension. This message should be included in the drivers' education material that the foundation creates for high schools. The foundation should also promote this message by making it the central theme of a billboard campaign. Billboard space purchased by the foundation would be located near high schools in one of the 10 deadliest U.S. cities for teen drivers. Lastly, the foundation should create short radio spots reinforcing the message and air them on popular Urban and Top 40 Radio stations.

Billboard and radio content targeted at teenagers should use humor to reinforce the message. For example a billboard might show a teen in a tuxedo getting dropped off at the prom by his parents in an old beat up pickup truck as all of his classmates look on in amusement. The caption might read "I hope that text was worth it. Using a cell phone while driving could result in your license being suspended"

A radio spot might depict a teenage boy picking up a girl for a date. When the girl comes to the door she asks, "Where’s your car?" The boy replies, "I thought it would be a good day for a walk... oh yeah and uh...plus my license is suspended". She shrieks, "It's 40 degrees outside and the movie theatre is 10 miles away" The door slams and a voice over says "I hope that text was worth it. Using a cell phone while driving could result in your license being suspended. It’s pretty simple. You text, you talk, you walk. Don't use your phone while driving"

Reach
Based on the 2000 U.S. Census there were a total of 391,294 teenagers between the ages of 15 and 19 in the 10 most dangerous cities for teen drivers. Assuming a 3% annual growth rate there are currently 525,866 teens between the ages of 15 and 19 living in those cities. Assuming 50% of those teens are exposed to the billboards or radio promotions the foundation should reach approximately 262,933 teens in the target age group in those cities.

Cost/Frequency
For Radio I assumed a cost of $200 per spot. The promotion would air during peak high school commute times, twice in the two hour immediately before school starts and twice in the two hours immediately after high school dismissal bringing the daily advertising cost to $800. Assuming that we aired the commercial three times a week (Monday, Wednesday, Friday) and one week out of every month for six months our total radio spend for one station would be:

($800/day)(3days/week)(1week/month)(6months) = $14,400 per city
Total radio promotion cost = ($14,400/city)(10 cities) = $144,000

Assuming that each of the teens that we reach hears the ad roughly half of the number of times that it airs our number of impressions per teen should be approximately:

(50%)(4 impressions/day)(3 days/week)(1 week/month)(6 months) = 36 impressions

For billboards I assumed a rental fee of $2,000 per month for each board. With four boards per city and in a 6 month campaign the each city's cost would be approximately:

($2000/month)(4 boards/city)(6 months) = $48,000 per city
Total billboard promotion cost = ($48,000/city)(10 cities) = $480,000

Assuming that each of the teens that we reach sees the billboard 4 times a week the number of impressions per teen should be approximately:

(4 impressions/week)(4 weeks/month)(6 months) = 96 impressions

In Summary
Approximate Reach: 262,933 teens between ages 15 and 19
Approximate Radio Impressions per teen: 36
Approximate Billboard Impressions per teen: 96
Total Cost: $144,000 radio cost + $480,000 billboard cost = $624,000

Metrics:
Year over year percentage decrease in teenage traffic accidents
Year over year percentage decrease in teenage traffic fatalities

Sunday, April 11, 2010

Segmentation, Targeting, Positioning

The STP process allowed me to really focus in on the type of competition that the AAA Foundation faces in their efforts to eliminate distracted driving. This process also helped me begin to formulate a strategy for how the foundation can best leverage their talents to affect change in their target audience's behavior. Perhaps the most important idea to come out of this section of my analysis was the realization that a message focused on safety and reducing accidents and fatalities is probably not going to resonate with teenagers as well as a message focused on a more immediate, tangible benefit such as loss of mobility. This realization is the basis for my dynamic variable selection and has informed the crafting of my consumer proposition. It also forced me to revise my desired beliefs, which, if you recall from the 4 Bs analyses I posted last week, previously focused on reducing the risk of accidents and deaths.

STP

Key Competitors: Cell Phone Activities - Although drivers engage in a myriad of distracting activities, given the category definition (Teenage Drivers) the foundation should focus their efforts on activities related to cell phone usage. Cell phone usage is extremely prevalent among young drivers. A 2008 study conducted by the AAA Foundation found that 65% of drivers ages 18 to 24 occasionally use their cell phones while driving and 23% are heavy users. When asked specifically about text messaging, one of the more dangerous cell phone activities to engage in while driving, 48% of respondents reported occasional texting and approximately 10% admitted to frequent texting.

Main Variable: Convenience (Saving Time) – Teenagers, like most drivers, use their cell phones as a convenient way to stay in touch with associates, friends, and family. Many teens who juggle hectic academic, social, work, and family schedules view the seemingly mundane task of driving as a prime opportunity to play catch up. While driving, they may manage relationships and/or get updates on the news that is important to them.

Dynamic Variable: Mobility/Freedom – Although cell phone usage is a big safety concern, convincing teenagers to trade the immediate benefits of convenience for the long term and less tangible benefits of increased safety is probably not an effective use of the foundation’s resources. The AAA foundation would be better served leveraging their core competencies in research and information distribution to persuade legislatures and the general public that the serious risks and increased fatalities associated with cell phone usage warrant legislation that imposes significant penalties on drivers who repeatedly violate cell phone usage laws. Penalties such as ticketing and license suspensions would certainly do more to alter driving behavior than appealing to drivers on the basis of safety.

Target Audience Description: Danielle is a 17 year old high school junior who lives with her mom, dad and two younger siblings in a suburb of Houston Texas. She recently inherited her mother’s 2002 Toyota Corolla when the family decided to upgrade their automobiles.

Danielle really enjoys the freedom her vehicle provides. She loves not having to depend on her mom and dad to drive her to school, work and other activities. Her parents are happy as well because Danielle can now help transport her younger brother Conner to baseball practice and her little sister Leah to piano lessons.

Danielle is an average student academically. She has several close friends and a handful of associates that she enjoys hanging out with. This is a big year for Danielle because she is trying to determine which colleges to apply to. She is also working very hard to increase her academic performance and extracurricular activities to appear more competitive to admissions officers. As a result of the many demands on Danielle’s time she is finding it increasingly difficult to stay connected with all of her friends and associates. Outside of the occasional encounter in the high school hallway or the random one or two friends who happen to be at the mall when she is on duty at Auntie Anne’s, Danielle only really communicates with her friends late at night on line or during the times when she is driving to and from her various responsibilities.

Danielle is aware that using her cell phone while driving is dangerous and she tries to limit her cell phone usage when driving in unfamiliar areas, but when in familiar parts of her community she fancies herself a pretty good driver and enjoys the opportunity that driving gives her to catch up with friends.

5-Box Positioning Statement
Current Do: I sometimes choose to abstain from cell phone usage while driving but at other times talk and text

Current Belief: Distractions such as texting and talking are dangerous but sometimes are necessary because of the time they save

Consumer Proposition: If you use a cell phone while operating a motor vehicle you will be ticketed and your license may be suspended

Desired Belief: The time savings benefit I experience through the use of my cell phone is not worth the loss of freedom and mobility that a license suspension would cause

Desired Do: I rarely if ever use a cell phone while driving

Monday, April 5, 2010

The Challenges of Determining a Strategic Quadrant

The process of determining my strategic quadrant elements was quite challenging. With a problem as big as distracted driving I struggled to determine which aspects of distracted driving to attack. Although cell phone usage has brought the distracted driving epidemic to the forefront of people's mind there are countless other sources of distractions that are equally as dangerous such as: tending to small children, grooming, eating and drinking, referring to maps/navigation technology, fatigue, and non-essential activities of interest occurring outside of a vehicle. The list goes on. There is also the question of which types of drivers to go after, seniors, middle aged adults, young adults, or teens. I ultimately decided to go after teens because they are the drivers on the road with the greatest risk of accident. The Institute for Highway Safety reports that for every mile that a teenage driver drives he/she is four times as likely to be involved in an accident as an older adult driver.

Another topic that I wrestled with a great deal was how to define categories in my 4 Bs analyses. I ultimately settled on "Undistracted Teenage Drivers" as the category definition in market scenarios where the AAA foundation functioned as the market leader, and decided on "Teenage Drivers" as the category definition in market scenarios where the AAA foundation functioned as one player in a myriad of other competitors seeking to gain share of the teenage driver's attention

With my category definitions determined I used data from the US Department of Transportation's Federal Highway Administration's website to determine that there are approximately 10 million teenage drivers in the U.S.. Using a 2008 cell phone driving report produced by the AAA foundation, I adjusted young people's cell phone usage data upward by approximately 20% (to compensate for under-reporting biases and driving distractions not related to cell phone usage) as a proxy for general distracted driving trends among teens. I also utilized teen traffic accident and fatality data from the Center for Disease Control's webpage to calculate the approximate percentage of teens who are involved in traffic accidents and traffic fatalities each year (3.5% and 0.04% respectively). With all of these assumptions made I was able to conduct my 4 Bs analysis.

4 Bs ANALYSIS

ACQUISITION/STIMULATE DEMAND
Category: Undistracted Teenage Drivers
Customer Definition: Drivers age 16-19 who regularly minimize the distractions within their control and respond in the safest manner possible to unexpected distractions
Other Players: Distractions such as: cell phone conversations, text messages, changing the radio station, tending to children, grooming, eating/drinking, referring to maps/navigation systems, fatigue, and non-essential activities of interest occurring outside of a vehicle
Bodies: 8,500,000 teenage drivers (= drivers who regularly engage in distracting activities + drivers who sometimes engage in distracting activities)
Beliefs
Conversion Rate: 20% (estimate)
Before: Distractions such as texting, talking or grooming while driving are dangerous but they save me time
After: The increased accident risks of texting talking or grooming while driving outweigh the time saving benefits
Behaviors
Conversion Rate: 4% (estimate)
New Undistracted Drivers: 68,000 (= Bodies * Beliefs Conv. Rate * Behaviors Conv. Rate)
Before: I routinely perform other non-essential tasks while driving
After: I rarely if ever perform non-essential tasks while driving
Key Metrics (a.k.a. Bucks)
Reduction in Teen Accidents: 2380 (= New Undistracted Drivers * 3.5%)
Reduction in Teen Fatalities: 27 (= New Undistracted Drivers * 0.04%)

AQUISITION/STEAL SHARE
Category: Teenage Drivers
Customer Definition: Drivers age 16-19 who regularly minimize the distractions within their control and respond in the safest manner possible to unexpected distractions
Other Players: Distractions caused by cell phones (i.e. conversations and texting). This behavior was targeted due to its strong prevalence among teenage drivers and because of its prominence within the media and among legislatures.
Bodies: 4,000,000 teenage drivers (= drivers who engage in heavy cell phone usage)
Beliefs
Conversion Rate: 30% (estimate)
Before: Talking and texting are not huge distractions
After: Talking and texting are dangerous distractions that can lead to serious injury or death
Behaviors
Conversion Rate: 3% (estimate)
New Undistracted Drivers: 36,000 (= Bodies * Beliefs Conv. Rate * Behaviors Conv. Rate)
Before: I routinely talk and text while driving
After: I choose not to talk and text while driving
Key Metrics (a.k.a. Bucks)
Reduction in Teen Accidents: 1260 (= New Undistracted Drivers * 3.5%)
Reduction in Teen Fatalities: 14 (= New Undistracted Drivers * 0.04%)

RETENTION/STEAL SHARE
Category: Teenage Drivers
Customer Definition: Drivers age 16-19 who regularly minimize the distractions within their control and respond in the safest manner possible to unexpected distractions
Other Players: Distractions caused by cell phones (i.e. conversations and texting). This behavior was targeted due to its strong prevalence among teenage drivers and because of its prominence within the media and among legislatures.
Bodies: 5,200,000 teenage drivers (= drivers who engage in occasional cell phone usage)
Beliefs
Conversion Rate: 40% (estimate)
Before: Distractions such as texting and talking are dangerous but sometimes are necessary because of the time they save
After: The increased accident risks of texting and talking while driving almost always outweigh the time saving benefits
Behaviors
Conversion Rate: 20% (estimate)
New Undistracted Drivers: 416,000 (= Bodies * Beliefs Conv. Rate * Behaviors Conv. Rate)
Before: I sometimes choose to minimize my distractions while driving but at other times talk and text
After: I rarely if ever talk and text while driving
Key Metrics (a.k.a. Bucks)
Reduction in Teen Accidents: 14,560 (= New Undistracted Drivers * 3.5%)
Reduction in Teen Fatalities: 166 (= New Undistracted Drivers * 0.04%)

RETENTION/STIMULATE DEMAND
Category: Undistracted Teenage Drivers
Customer Definition: Drivers age 16-19 who regularly minimize the distractions within their control and respond in the safest manner possible to unexpected distractions
Other Players: Distractions such as: cell phone conversations, text messages, changing the radio station, tending to children, grooming, eating/drinking, referring to maps/navigation systems, fatigue, and non-essential activities of interest occurring outside of a vehicle

NOTE: I chose not to conduct a 4 Bs analysis for this strategic quadrant. Given that my customer definition describes someone who does not engage in distracting activities during driving, I could not determine a way to reasonably approximate how a person could increase their degree of disengagement from distracting activities while driving. The way my analysis is structured teenagers either refrain from engaging in distracting activities all together, occasionally engage in distracting activities, or routinely engage in distracting activities.

CONCLUSION
Based on the 4 Bs analysis I have decided that the retention/steal share quadrant is the most impactful.

Friday, April 2, 2010

Diving In

Well after much deliberation about the best way to go about framing my project in the Big Picture framework I have decided to just dive in and make adjustments as I go. Here goes...

BIG PICTURE FRAMEWORK

BUSINESS OBJECTIVE
Fundamental Entity: AAA Foundation for Traffic Safety - The AAA Foundation for Traffic Safety is a 501(c)(3) public charity located in Washington, DC that is dedicated to saving lives and reducing injuries. Established in 1947 the foundation serves as a research affiliate for AAA and CAA auto clubs. The mission of the foundation is to identify traffic safety problems, foster research that seeks solutions to those problems, and disseminate traffic safety information and educational resources. The foundation is supported by donations from

Core Competence: The AAA Foundation for Traffic Safety has three core competencies
1. Skill at research: Drawing on both in-house and leading traffic safety experts in N. America the foundation conducts research that addresses specific questions and generates concrete recommendations for preventing crashes, injuries, and deaths on the roads. The foundation's research focuses on 4 major areas: Teen Driver Safety, Senior Safety, Road Safety, and Safety Culture. In their 63 year history the foundation has funded and supported over 170 projects designed to discover the causes of traffic crashes, prevent them, and minimize injuries when they occur. Foundation research is peer reviewed to test the validity of study conclusions and corresponding recommendations

2. Skill at curriculum design: The foundation uses their research to inform the design of their educational materials. AAA's "Responsible Driving textbook" first published in the 1930s as "Sportsmanlike Driving" has become the most widely used book in its field. AAA has also been actively involved for nearly 40 years in reducing the drinking-driver problem through alcohol education programs for school aged children as well as adults. They have introduced traffic safety education into elementary and junior high schools. Most recently they have designed a computer-based DVD program called "Driver-ZED (Zero Error Driving) designed to take young drivers through 100 real-world dangerous driving situations with the hope that the simulations will improve the experience level and performance of young drivers on the road.

3. Skill at information distribution: The foundation reaches more than 200 million people annually through television, radio, newspapers and magazines. Representatives from the foundation have appeared on popular programs such as the Today show to discuss traffic safety. The foundation also has access to the more than 51 million members in the US and Canadian auto clubs, AAA and CAA. The foundation registers nearly 20 million visits each year on the AAA foundation website. Government agencies and legislators turn to foundation sponsored research to guide them in creating policies that can save lives on our roads and highways and the foundation has been successful in having a number of their education programs adopted in schools and diver's education programs.

Goal/Time frame: A Zero Fatality Future - Basically the organization wants to conduct research and disseminate educational materials that will continue to reduce the number of traffic accidents and fatalities until there are none remaining. While this is a noble endeavor and a nice sentiment, I think the goal needs to be more focused. I also think that the goal should be broken into smaller more manageable sub-goals so that the organization can track its progress and impact on the specific traffic issues they are seeking to address.

A better goal might be to reach 3 million teenage drivers in 2010 to educate them on the risks associated with distracted driving with the hopes of reducing accidents among teenage drivers by 10%

Tuesday, March 23, 2010