Mugenzi's Blog

Insurance Age - RBSI reports 9% slump in operating profit

2008-03-25T17:41:00.001Z

Insurance Age - RBSI reports 9% slump in operating profit: "RBSI reports 9% slump in operating profit

RBSI reports 9% slump in operating profit

Royal Bank of Scotland Insurance this morning reported a 9% decline in operating profit to £683m on stable income of £5.6bn. The insurance group was impacted to the tune of £274m by the floods.

The UK combined operating ratio for 2007, including manufacturing costs,increased to 98.0%, reflecting a higher loss ratio and the reduction in partnership income.

Excluding the impact of the floods, the combined operating ratio was 91.9%. The insurance group has 6713 million in force own brand motor policies (2006: 6790 million); 3752 million non motor policies (2006: 3759 million) and 9302 million partnership and broker policies (2006: 11 242 million).

In a statement in continued: “Our own-brand businesses have performed well, with income rising by 1% and contribution growing by 4%. Excluding the impact of the floods, own-brand contribution grew by 24%.

“In the UK motor market we have pursued a strategy of targeting lower risk drivers and have increased premium rates to offset claims inflation, improving profitability by implementing heavier price increases in higher risk categories.

“Our international businesses performed well, with Spain delivering strong profit growth while, in line with plan, our German and Italian businesses also achieved profitability in 2007. Home insurance grew across all of our own brands in the second half, and we achieved particular success in the distribution of home policies through our bank branches, with sales up 40%.”

In its partnerships business, RBSI said it had concentrated on “more profitable opportunities” and have consequently not renewed a number of large rescue contracts. RBSI added that it had also pulled back from some less profitable segments of the broker market.

This resulted in a 17% reduction in in-force policies, but income fell by only 2%. Contribution from partnerships and brokers fell by 22% as a result of flood-related claims. Excluding the impact of the floods, contribution from partnerships and brokers increased by 18%.

RBSI concluded: “For RBS Insurance as a whole, insurance premium income, net of fees and commissions, was 2% lower at £4.9bn, reflecting modest growth in our own brands offset by a 5% decline in the partnerships and broker segment. “Other income rose by 11% to £734m, reflecting increased investment income. Total expenses were held flat at £963m. Within this, staff costs reduced by 7%, reflecting our continued focus on improving efficiency whilst maintaining service standards.

“A 5% rise in non-staff costs reflects increased marketing investment in our own brands. “Net claims rose by 1% to £4.01bn. Gross claims relating to the floods in June and July cost more than £330m, with a net impact, after allowing for profit sharing and reinsurance, of £274m.

“Excluding the impact of the floods, net claims costs were reduced by 7%. In the motor book, while average claims costs have continued to rise, this has been mitigated by improvements in risk selection and management and by continuing efficiencies in claims handling.

Insurance Age - Insurance industry executives confident in the face of credit crisis

2008-03-25T17:41:00.000Z

Insurance Age - Insurance industry executives confident in the face of credit crisis: "Insurance industry executives confident in the face of credit crisis

Insurance industry executives confident in the face of credit crisis

Insurance executives were feeling confident about their ability to manage risks and opportunities at the onset of the credit crisis, according to a new global study conducted by Towers Perrin in conjunction with the Economist Intelligence Unit.

The study found that leaders of companies having “Excellent” enterprise risk management (ERM) ratings from Standard & Poors tend to be significantly less overconfident in their overall ability to manage risks and opportunities, compared with industry peers with lesser ERM ratings.

“The findings and timing of this study – especially within the context of the onset of the current credit market woes and broader economic landscape – underscore the challenges the insurance industry faces in managing risk and opportunity,” said Steve Taylor-Gooby, managing director of Towers Perrin’s Risk and Financial Services.

“Through the 20/20 vision provided by hindsight, we can say that many organisations in all business sectors underestimated risks or completely missed emerging risks, and that the levels of optimism and confidence the study revealed in the third quarter of 2007, as the current credit crisis and related economic issues were beginning to emerge, were not justified.”

Two hundred insurance industry executives were among the nearly 1,500 senior business executives who participated in the broad survey, including 69 whose firms have ERM ratings from S&P. The study sought to reveal what senior business managers consider the greatest threats to achieving their business goals, the most significant opportunities, and how confident they are in their ability to manage the risks and exploit the opportunities.

“Research conducted by behavioural scientists has consistently shown that people are almost always more confident in their estimates and predictions than outcomes warrant,” said Mr Taylor-Gooby. “A major benefit of a successfully implemented ERM program is that it tempers the potential for overconfidence and helps drive correct decision-making – both in the ability to manage risk and seize market opportunities.”

Survey participants, comprised of insurance company CEOs, CFOs, board members, presidents, managing directors and other senior executives, were asked to assess 27 internal and external forces affecting business performance in the areas of financial, people/workforce, operational and strategic issues.

Insurance companies’ broad range of approaches for monitoring a variety of risks across multiple dimensions, along with their ability to help mitigate and manage many of their clients’ risks, underscored their confidence, the survey indicated. As a result, insurance executives were at the top or near the top of the industries Towers Perrin surveyed in their confidence in managing various areas of risks and opportunities.

According to survey findings, 52% of executives from the insurance industry believe they are better able to manage all risks and opportunities than their peers, versus 51% of those leaders in other financial services and 47% of executives from the banking sector. Among all industry groups, only energy executives exhibited more confidence (54%).

Looking at specific risk categories, insurance executives were more confident about their ability to manage financial and people/workforce risks than all other industry groups, and among the most confident in their ability to manage operational and strategic risks.

However, executives from “Excellent” rated S&P insurance firms tended to be less overconfident (36%) than their peers with either “Strong,” “Adequate,” or “Weak” ratings (59%) in their ability to manage all risks and opportunities. Further, survey findings showed that only 14% of those companies rated “Excellent” by S&P were more willing to accept risk than their industry peers, compared with 31% with lesser ratings.

“Making good decisions requires a realistic view of what we know and what we don’t know. An ERM framework and the right tools for analysis can help executives make more informed decisions about which risks they want to avoid and whether they have the appetite to pursue opportunities to profit from certain risks,” added Mr Taylor-Gooby.

Insurance executives see several industry dynamics as potentially greater risks than a year ago, including “business development” (71%), “customer demand” (62%) and “competition” (50%). Those same executives indicated the biggest opportunity, according to the survey, is in the area of “technology.” Seventy-one percent of executives said that industry dynamic represents a greater opportunity versus a year ago.

Executives said “technology” is seen as an opportunity both in back-office (e.g. claims processing and claims management) and front-office applications (e.g. predictive modeling and strategic pricing).

In all four business force categories, insurance industry respondents see more opportunities than risks:

Financial issues, including cost of capital, interest rates, credit (76% vs. 66%)
People/Workforce issues, including skills, attraction, engagement (74% vs. 61%)
Strategic issues, including business model, strategy, execution (72% vs. 60%)
Operational issues, including business processes and infrastructure (69% vs. 56%)

“New risks and opportunities will continue to emerge,” said Mr Taylor-Gooby. “The challenge for all business leaders – whether they are in the insurance arena or in other industries – is to maintain a consistent approach to risk and opportunity management in both prosperous and challenging economic climates.”

The nearly 1,500 executives of mid- and large-size companies participating in the Web-based surveyed represent a cross-section of industries from around the globe, including banking, energy, healthcare, manufacturing, technology, retail, entertainment and professional services.

Post Online - Hastings revamps image

2008-03-25T17:34:00.000Z

Post Online - Hastings revamps image: "Hastings revamps image

Hastings Direct has restyled its brand icon 'Harry' in a bid to maximise its online quote volumes.

The personal lines broker has been reviewing its growth strategy since being acquired by Insurance Australia Group in September 2006.

Managing director, Nick Potts, said: 'We've evaluated every aspect of the business and improved practices throughout. Our strengthened offering has been aligned to what consumers really want from an insurance provider and now is the time to deliver it.'

The new TV advertising campaign starts today on on ITV, Channel 4, C5 and Sky, supported by exposure in national press and specialist magazines.

Claire Day, Hastings Direct's marketing director, says the brand re-launch builds on Harry's heritage in addition to positioning it as a conduit for future growth.

'The brand's new proposition ranks Hastings as an insurance provider in-tune with its current and potential customer base and supports planned premium price offers and further product launches planned for the spring.'"

Post Online - Aggregator slams Direct Line 'offer'

2008-03-25T17:33:00.000Z

Post Online - Aggregator slams Direct Line 'offer': "Aggregator slams Direct Line 'offer'
Aggregator slams Direct Line 'offer'

Internet aggregator Gocompare.com has slated Direct Lines latest market offering.

Hayley Parsons, managing director, said of Direct Line’s proposal to cap motor insurance premiums for new customers at renewal: ”This is another example of an offer that is actually very good for the insurer but doesn’t necessarily stack up for the consumer. I can imagine that Direct Line would be very keen indeed to retain a customer that hasn’t made a claim in twelve months, for the same premium.

“In reality, that customer should be looking around the market for a reduction in his or her premium to reflect another claim free year. In addition, Direct Line has had no additional administrative expense associated with that client as, to qualify for the deal, nothing must have changed on the policy. Our figures show that over 50% of drivers have changed at least one of the policy details stipulated by Direct Line in the last twelve months, and therefore would not qualify for this offer.”

She added: “Direct Line is coming up with ever more creative ways to stop customers walking away. Nine times out of ten Direct Line isn’t one of the cheapest insurers. In addition, they don’t provide a courtesy car as standard, so customers can often get a much better deal by shopping around. So the question is; do you want to pay the same as last year or do you want to save up to £200?”

“The only thing that puts your renewal quote in context is looking at how your premium and cover stacks up against a much wider group of insurers and these days that means using a price comparison site. Sites like ours have brought transparency into a market that was previously opaque.”

Post Online - Insurance prices to drop by 10% by end of 2008 – Stephen Catlin

2008-03-25T17:32:00.000Z

Post Online - Insurance prices to drop by 10% by end of 2008 – Stephen Catlin: "Insurance prices to drop by 10% by end of 2008 – Stephen Catlin

Insurance prices will drop by 10% by the end of 2008 if it is still another light catastrophe year, Stephen Catlin has said.

“We felt that rates would be down by 10% at the end of 2008 and I can’t see the downwards trend stopping until we have an event,” Mr Catlin said in an interview with Reinsurance. “We’re seeing rates for wholesale business in the London market decreasing more rapidly than retail business,” he said.

“Rates for business written by Catlin in the US and other markets have kept comparatively higher due the orientation to retail business.”

For the 2008 renewals season Catlin’s UK-originated gross written premiums in the London market fell by 7%, although there was strong growth in the Bermuda, Catlin US and other international offices.

He added in a statement that he expected gross premium for the group’s Catlin Syndicate UK business to decrease slightly during 2008.

Earlier today the Bermuda-headquartered (re)insurer reported Catlin reported an 8% increase in net income to $462m, with a 24% jump in gross premiums written to $3.4bn. The combined ratio fell to 84% from 87%."

RBS resists pressure over key assets as rumours of sell-off hit share price - Scotsman.com Business

2008-03-25T17:31:00.000Z

RBS resists pressure over key assets as rumours of sell-off hit share price - Scotsman.com Business: "RBS resists pressure over key assets as rumours of sell-off hit share price

RBS resists pressure over key assets as rumours of sell-off hit share price

ROYAL Bank of Scotland appears to be resisting calls to sell off key assets amid persistent speculation that it is reviewing its insurance and overseas operations.

Sources say that apart from the sale of Angel Trains, the rolling stock leasing company, it has no immediate plans to offload any of its major business units.

It is thought to be focusing on a "tidying up" of its newly acquired ABN Amro assets, which is likely to involve the disposal of some of these operations.

But rumours that RBS is planning to sell key divisions, from Direct Line Insurance to its stake in Bank of China, continue to surround the company and is putting downward pressure on its share price.

RBS unveils year-end results on February 28 when it is expected to unveil record profits of about £10bn. It may also announce a further write-down of up to £1bn on the back of the global credit crisis.

Some banking analysts believe RBS requires as much as £12bn to strengthen its balance sheet and restore its capital ratios, but chairman Sir Tom McKillop is believed to have told investors there will be no dividend cut or rights issue to raise capital.

One source said that Angel Trains will not be sold if the bank does not get the right price. It is expected to fetch between £3bn and £4bn.

While the bank appears to be unmoved by the market speculation, investors remain nervous, particularly about a cash call, and have pummelled the shares to a year low. They closed on Friday at 366.5p, a fall of 47% compared with a year ago, which was just ahead of its long pursuit of ABN Amro.

Analysts continue to speculate on the bank's strategy but admit that there is a lot of conjecture in the market. Leigh Goodwin, of Fox Pitt Kelton, said RBS could probably get £7bn for the insurance division but he was doubtful there were buyers in a market that is "bombed out on valuations".

He said: "I doubt they would sell it. I also doubt they would sell (the stake in] Bank of China. It makes no strategic sense."

He suggested that of all its disposable assets, Citizens in the US was arguably the most vulnerable.

One analyst said that selling Angel Trains would make little difference to the bank's needs.

But in a more supportive note, Derek Chambers at Standard & Poor's has discounted the need to raise capital externally.

"We believe that the group should be able to generate sufficient capital internally to increase its core capital ratio from the current admittedly low level," he says. He is targeting a 550p share price and rates the shares a strong buy.

Home Insurance | Churchill Insurance unveils new interactive microsite

2008-03-25T17:30:00.002Z

Home Insurance | Churchill Insurance unveils new interactive microsite: "Churchill Insurance unveils new interactive microsite
13 February 2008

Churchill Insurance has re-launched its ‘Challenge Churchill’ microsite giving visitors the chance to play interactive games, test their Sudoku skills and enter a prize draw with the chance to win a Nintendo DS.

New games will be added to the site every month to keep the site fresh and engaging. Visitors will also be able to have their insurance questions answered by the iconic Churchill nodding dog.

Claire Foster, a spokesperson from Churchill Insurance says, “We have re-launched the microsite to ensure it offers visitors a fully interactive experience. We hope that people will have such fun playing the quizzes and games that when it comes to getting an insurance quote, Churchill will be front of mind.”

To access the microsite and for further details on Churchill’s car, home, travel and pet insurance visit: challengechurchill.com."

The Press Association: RBS unveils £10.3bn profits

2008-03-25T17:30:00.001Z

The Press Association: RBS unveils £10.3bn profits: "RBS unveils £10.3bn profits

RBS unveils £10.3bn profits

Feb 28, 2008

Royal Bank of Scotland has unveiled a £2.5 billion hit from the credit crunch - but still hiked annual profits to more than £10 billion.

The UK's second largest bank said operating profits rose 9% to £10.3 billion in 2007, despite the turmoil in financial markets.

The company wrote off £1.6 billion in losses with a further £900 million-hit for ABN Amro, the Dutch bank bought by a RBS-led consortium last October, chief executive Sir Fred Goodwin said.

The group has an additional £2.5 billion in exposure to the specialist insurers underwriting the group's investments which have also been hit by the crunch, Sir Fred added.

Meanwhile RBS's insurance business - owner of the Churchill, Direct Line and Privilege brands - was hit for £274 million by the impact of last summer's floods, with operating profits slipping 9% to £683 million.

Despite the setbacks from last summer's turbulence and the crisis in the US sub-prime mortgage market, RBS's results bring the profits from four of the UK's "big five" banks to £27 billion so far. With just HSBC - the UK's leading bank - left to report, profits are set to at least match last year's £37.2 billion combined earnings.

Sir Fred said prospects for 2008 were "difficult to predict as ever" but added the bank had begun the year with "real momentum" following the deal for ABN. The RBS team beat off a rival bid from Barclays to win the battle for the Dutch bank last October with a 71 billion euro (£54.1 billion) bid and said it has identified a further 1.6 billion euro (£1.2 billion) in cost savings from the deal over the next three years.

There have been concerns in the City that RBS overpaid for the Dutch bank and questions over the bank's capital position following its investment losses and the acquisition. But Sir Fred said the ABN deal gave the group the "big attraction" of increased exposure to fast-growing economies in Asia. The bank's capital position remained within target ranges, while it also lifted its annual dividend 10%.

Although the performance was held back by the credit crunch - hitting results at its investment banking division - the bank partly offset the losses with the sale of businesses such as utility Southern Water last year.

The bank's more cautious approach to lending in the worsening economic environment also saw overall bad debt losses fall 1% to £1.87 billion. RBS, which owns the NatWest bank, added that retail banking profits rose 10% to £2.47 billion with deposit balances up 9%. The bank opened more than 975,000 personal current accounts last year. UK business banking also lifted operating profits 11% to almost £2 billion, offsetting the earnings decline elsewhere in the business.

Direct Line launches new business insurance range

2008-03-25T17:30:00.000Z

Direct Line launches new business insurance range:

Direct Line launches new business insurance range

17/03/2008

Direct Line has launched a new range of business insurance products to provide comprehensive, competitive protection for small businesses.

Small businesses can be ruined by just one unfortunate event, such as a fire, theft, or a public liability claim, so people protect themselves and their livelihood with business insurance.

Business owners and landlords can now choose from Direct Line Commercial Insurance, which covers against buildings and equipment, loss of rent, and public liability; Direct Line Shop Insurance provides such cover as perishable goods and goods in transit protection, loss of money, and personal accident.

Direct Line Residential Insurance protects landlords against loss of rent, contents, and property owner's liability, and Direct Line Tradesmen Insurance offers professional tradesmen and craftsmen with complete protection against loss of earnings, including cover for their tools and equipment, and employer's and public liability.

All of the policies include access to 24 hour helplines for situations which can cause security breaches and requiring locksmiths and glass replacement, in addition to free advice on tax, employment law, legal issues, contracts, stress counselling, and medical and health emergencies.

There are also a range of optional extras available, such as additional personal accident cover or higher public liability protection, so that business owners can mould the policy their own individual needs.

Ups and downs as RBS rides the waves of credit crisis - Yorkshire Post

2008-03-25T17:29:00.000Z

Ups and downs as RBS rides the waves of credit crisis - Yorkshire Post:

Ups and downs as RBS rides the waves of credit crisis

ROYAL BANK OF SCOTLAND, the UK's second biggest bank, revealed a sharp increase in profits to £10.3bn, but warned of further losses from the credit crisis.

Underlying 2007 profits rose nine per cent, but total write-downs on investments hit by last summer's financial turmoil and the United States sub-prime crisis rose to £2.5bn.

RBS's credit crunch losses totalled £1.6bn, while write-downs at ABN Amro – the Dutch bank it bought last year – were £900m.

RBS said its investment banking division had been held back by the turmoil in credit markets, although the bank managed to counter the losses with the sale of businesses such as utility Southern Water last year.

Despite the deterioration in the economic environment, a more cautious approach to lending saw RBS' overall bad debt losses fall one per cent to £1.87bn. The group, which owns the NatWest bank, said that retail banking profits rose 10 per cent to £2.47bn and deposit balances rose nine per cent.

UK business banking saw an 11 per cent increase in operating profits to almost £2bn, offsetting declines in investment banking.

Chief executive Sir Fred Goodwin said prospects for 2008 were "difficult as ever to predict", but said there was good momentum behind the enlarged bank.

Aside from banking, RBS is also the UK's largest motor insurer. It said yesterday it expected premiums to rise at least as fast as the cost of paying claims in 2008.

Competitive pressures and the increasing popularity of price comparison websites have battered UK motor insurers.

RBS, which owns some of Britain's best-known insurance brands, including Direct Line, Churchill, Privilege and Green Flag, has a strong insurance presence in Yorkshire. Direct Line, Privilege and the motor business Green Flag employ 3,335 people in Leeds, Sheffield, Doncaster and Pudsey. Nearly 9,000 RBS staff live in Yorkshire.

In 2007, the RBS Insurance division posted a nine per cent drop in overall operating profit to £683m hit by £274m of losses related to floods. Excluding those losses, profits would have climbed almost 28 per cent.

Insurance Age - Motor industry insurance profits ‘unlikely in 2009’, says AA insurance

2008-03-18T09:37:00.000Z

Insurance Age - Motor industry insurance profits ‘unlikely in 2009’, says AA insurance: "Motor industry insurance profits ‘unlikely in 2009’, says AA insurance

The claim by Datamonitor that the UK motor insurance industry will make a profit in 2009 is unlikely to be realised, AA Insurance believes.

Britain’s leading car insurance broker points to continuing claims inflation and premium competitiveness as key factors that will make profitability in two years’ time unlikely.

Andrew Strong, CEO of AA Insurance, said that the cost of claims is showing no sign of slowing. “The cost of damage to property and vehicles is rising by around 5% per year. On top of that we are seeing personal injury claims continuing to increase by 10% per year as accident victims are more willing to make such claims these days.”

In 2007, AA Insurance believes that the cost of claims will outstrip the cost of inflation by around 12%: in other words, for every £100 received in premiums, £112 is being paid out in claims.

“In order to reach profitability by 2009, premiums will have to rise by at least 20% over the next two years,” Mr Strong said. “Online buying means that buyers are much more likely to shop around for car insurance and buy on price. That is keeping premium rises in check.”"

The AA’s benchmark British Insurance Premium Index shows that premiums rose by an average of 5.9% during 2007 and are expected to rise by a similar amount during 2008.

Mr Strong added: “So far this year we have not seen industry premiums rise by anything like the amount that would make the industry profitable. It remains a very volatile and competitive

News | Endsleigh appoints Inbox to give brand increased online presence - NMA

2008-03-18T09:35:00.000Z

News | Endsleigh appoints Inbox to give brand increased online presence - NMA: "Endsleigh appoints Inbox to give brand increased online presence"

Endsleigh appoints Inbox to give brand increased online presence

Platform: Internet | Author: Danielle Long | Source: NMA magazine | Published: 13.03.08

Email article | Printer Friendlymore News

Endsleigh, the independent insurance and financial products intermediary, has appointed digital agency Inbox to develop its brand identity and strategy for both online and offline media.

Inbox will handle strategic brand development to help the insurance company become more digitally focused. The move is part of a bid to create greater synergy between its online and offline presences, which will be led by online.

Stuart Wartalski, head of corporate communications at Endsleigh, said,...

"This is quite an interesting shift for us to use a digital agency. Previously we would have used an ad agency," he added.

"Our business has evolved and our website is now the most-viewed visual manifestation of our brand and products. It's only appropriate that the online creative strategy should translate offline."

Inbox will also create a digital strategy for Endsleigh, including data-driven eCRM campaigns.

The appointment is part of a move by the insurance brand to raise its profile in the booming insurance market, where it not only competes with brands like Churchill and Direct Line but also aggregator sites, such as Confused.com and Moneysupermarket.com.

Endsleigh aims to develop its presence among its key target markets of students, graduates and young professionals. It also aims to grow its branded insurance services, which it handles for Manchester United, Manchester City, Arsenal and Tottenham Hotspur football clubs.

Inbox, previously known as Inbox Digital, is part of the Digital Marketing Group.

DMA study finds improvement in email delivery rates - Brand Republic News - Brand Republic

2008-03-06T12:24:00.000Z

DMA study finds improvement in email delivery rates - Brand Republic News - Brand Republic: "DMA study finds improvement in email delivery rates

by Alex Donohue Brand Republic 05-Mar-08, 12:30

LONDON - The Direct Marketing Association's latest email marketing benchmark report has found that delivery rates for the third quarter of last year stood at 84% for acquisition and 88% for retention.

The DMA said the results demonstrated email service providers had reached a 'better understanding' of issues surrounding deliverability that it was now addressing.

However, the report also noted a sharp decline in mailing volumes for the July to September period, which it attributed to a slowdown in business over the summer and clients changing email service providers.

According to the study, the number of email service providers not using segmentation in campaign work decreased significantly since the beginning of 2007, with only 15% now using single segmentation campaigns in comparison with 50% for quarter one in 2007.

The DMA said increased use of segmentation had grown open rates by 20% for acquisition and 30% for retention for the period.

Richard Gibson, chair of the DMA Email Marketing Council, said: "It is very encouraging to see that issues surrounding deliverability are being addressed. However, there is still room for improvement.

"Relevance and timing are vital to the success of an email marketing campaign, while clients using ESPs appear to be sending a higher number of different types of emails, there are still areas where all clients could create more relevant, timely messages for their customers."

Insurance Times - RBSI approves partner’s use of aggregator site

2008-03-05T14:16:00.001Z

Insurance Times - RBSI approves partner’s use of aggregator site: "RBSI approves partner’s use of aggregator site

RBSI approves partner’s use of aggregator site

14 December, 2007

By Sarah Kennedy

Royal Bank of Scotland Insurance (RBSI) has for the first time given permission to one of its corporate partners to appear on an aggregator site other than TescoCompare.com.

But the move could frustrate RBSI’s other corporate partners which have not been given a similar permission.

Lloyds TSB, whose motor insurance is underwritten by RBS-owned Churchill, is understood to have been in discussions with Moneysupermarket.com since October about becoming listed on the price comparison site.

Moneysupermarket director of insurance Richard Mason said the hope was to have Lloyds TSB on its site by February.

Mason said he predicted the move to grant only Lloyds TSB the freedom to appear on the sites might cause conflict with RBSI’s other corporate partners also keen on garnering a competitive edge.

Mason said: “We’ve had chats with the others and they are keen to be on aggregator sites and we were quite surprised only Lloyds TSB was given permission.”

RBSI also underwrites insurance for companies such as Virgin Money, Privilege and Prudential. The company’s in-house brands NIG and Churchill have also not appeared on other price comparison websites.

A TSB spokesperson said: “We would never comment on speculation about plans for the future”.

RBSI, Privilege and Prudential declined to comment. Virgin Money was unavailable for comment.

Insurance Times - RBSI unveils restructuring changes

2008-03-05T14:16:00.000Z

Insurance Times - RBSI unveils restructuring changes: "RBSI unveils restructuring changes

RBSI unveils restructuring changes

Issue 06-12-2007

By Sarah Kennedy

Move is said to create growth and stop its brands from competing against one another

Royal Bank of Scotland Insurance (RBSI) has launched the second phase of its restructuring plan to create more cohesion between its various, sometimes competing, brands. The move has so far resulted in the loss of two senior managers.

The restructuring was revealed on insurancetimes.co.uk on Tuesday.

Chief executive Chris Sullivan has been quite candid about the need for RBSI to put a stop to the competitiveness between its brands including Direct Line, NIG and Churchill and start acting more as a single company.

Last week, in a memo to senior managers, Sullivan announced that both Chris Moat, managing director of RBSI motor and chief risk officer Robin Webster, would be leaving the company.

Staff were also informed that commercial and brokers will now fall under one managing director – Andy Cornish – in order to place all commercial expertise in one area, regardless of distribution channels.

The restructuring saw a further shifting of existing managers into different departments.

An RBSI spokesperson said: “Our focus over the next 12 months is on delivering strong income and profit growth and the moves announced last week will allow us to do that.”

When Sullivan took over as chief executive in January from Annette Court, one of his first moves was to strip the various brands of their aligned bosses, opting instead for product line and distribution managers.

At the time, management was split into four distribution groups: motor, household, life/international and broker partnerships.

Moat, who was managing director of Direct Line, became managing director of motor for RBSI.

The latest changes however, see broker and commercial, partnerships and international and household and life, paired together.

For one industry analyst very familiar with RBS, the move makes perfect business sense.

The source said: “There are huge cost pressures for the whole industry at the moment and many organisations are looking at how to improve the overall efficiency of the business model. This is a perfectly sensible set of responses.”

The analyst said the restructuring was likely to be an attempt to break down the silos behind the brands rather than the rationalising of the RBSI brands.

He said that the greater cohesion would create cost savings in terms of infrastructure and call centres.

Changes could also provide more opportunities for selling products to banking customers through RBS’s UK branch network.

Another source however, with ties to RBSI, was more suspicious of Sullivan’s motives and believes the changes go beyond just cost savings and efficiency.

Following ongoing industry rumours suggesting the interest of some major insurers in purchasing NIG, the source questioned whether placing all of the brand’s commercial products in one place may make it easier for RBS to sell.

He said: “This would be a move for RBS to go direct and cut out all the intermediaries and brokers. They are launching Direct Line into commercial anyway.”

Regardless, analysts agree managing directors may have a big job in getting the brands, have at times undercut one another, to work together, particularly as one industry source suggests, the new roles don’t seem as clear cut as they were in the past.

He said: “From an outside perspective, it looks like a matrix of things. Who is responsible for what? If something falls through the cracks, who takes the rap? It will become more informative once they fill the vacant positions.”

News of the changes, particularly the loss of Moat, surprised some industry sources.

Charles Earle, Arista Insurance chief executive and former RBS employee, said: “I’m surprised to see a senior MD like Chris Moat leave the company and take all that experience with him, but no doubt he and the organisation have their reasons for that decision.”

Insurance Times - NIG sale mooted as business drops

2008-03-05T14:14:00.000Z

Insurance Times - NIG sale mooted as business drops: "NIG sale mooted as business drops

Issue 06-03-2008

By Sarah Kennedy

Focus on motor risk selection fails to improve RBSI results

Royal Bank of Scotland Insurance (RBSI) chief executive Chris Sullivan has opened the door to a potential sale of the NIG brand, as the company reports a loss of business in its broker division.

Sullivan declined to say if RBSI would still own broker-only insurer NIG this time next year, adding: “As we stand now, I don’t know. We certainly haven’t sold it. I couldn’t give a guarantee about anything in the future because things move so fast.”

The company’s fourth quarter results showed profits before tax of £683m, but reported a loss of business in its broker and partnerships divisions.

Although there was income growth in motor broker business of 6% to £356m, due to average price increases, the number of policies declined by 4.5% to 1.37 million.

Sullivan said the company’s policy of focusing on profitable risk selection in motor partnerships resulted in a fall in income of 9% to £1.07bn, with policy numbers down 12%.

He said: “We have turned away business that is unprofitable and improved our risk-pricing capabilities. People have been chasing volume for volume’s sake.”

At the end of 2007,RBSI underwent a major restructuring in a bid to stop its six brands from competing against one another and instead operate as one company.

In the autumn, RBSI’s personal lines insurer Direct Line launched a commercial product and Sullivan said he would like to see that business grow as much as possible.

The restructuring has led to market speculation that Sullivan may be looking to sell off NIG and focus more heavily on direct lines of business. AIG and MMA have been mooted as potential purchasers by market sources.

The restructuring has seen several senior managers leave the company, but Sullivan said despite the uncertainty, morale has been higher than he anticipated.

He said: “They agree with the direction the company is taking.”

Aviva ready to jettison Norwich Union brand in UK - Brand Republic News - Brand Republic

2008-03-04T09:46:00.000Z

Aviva ready to jettison Norwich Union brand in UK - Brand Republic News - Brand Republic: "Aviva ready to jettison Norwich Union brand in UK

by Ed Kemp Marketing 04-Mar-08, 08:45

LONDON - Insurance giant Aviva is preparing to phase out its Norwich Union name in the UK in line with its global brand strategy.

The removal of the Norwich Union name, in favour of the Aviva brand, will be overseen by incoming group marketing director Amanda Mackenzie, who starts in her new role this week. It is understood the RAC brand will remain untouched.

The company had previously claimed that the introduction of its Aviva brand in July 2002 would not be a precursor to dropping its other regional brand names.

Aviva replaced the CGNU identity, which had been in use since May 2000 following the merger of CGU and Norwich Union. It currently uses the Aviva name in most of the markets in which it operates, including France, Canada and the US, but in the UK, Norwich Union and RAC are its consumer brands.

The UK is not the only market in which it retains sub-brands. Other names it uses across Europe include Delta Lloyd, Commercial Union and Hibernian.

Last year, Aviva shed 140 staff from its marketing team and cut its budget from £180m to £100m (Marketing, 20 November 2007).

Mackenzie was not avail"

News | Esure makes getting a quote easier - NMA

2008-02-28T21:44:00.000Z

News | Esure makes getting a quote easier - NMA: "Esure makes getting a quote easier

Platform: Internet | Author: Luan Goldie | Source: nma.co.uk | Published: 27.02.08
Email article | Printer Friendlymore News

Insurance company Esure has launched a site focused on usability and accessibility.

Its ‘Quote and buy’ feature has been reworked to make it easier for consumers to use and access, with colours, fonts and page layouts being revised.

The need for change was highlighted by usability consultancy Optimum.web, part of RedEye, which also carried out the work.

Ed Longley, ecommerce manager at Esure said, “With there being various routes for visitors to arrive at our quotation page, we saw it as imperative that the user experience, once they were there, was as straightforward as possible.”"

Pepsi draws up expansion plans for Raw brand - Brand Republic News - Brand Republic

2008-02-26T09:53:00.000Z

Pepsi draws up expansion plans for Raw brand - Brand Republic News - Brand Republic: "Pepsi draws up expansion plans for Raw brand

by Jemima Bokaie Marketing 26-Feb-08, 06:30

LONDON - Pepsi has revealed it plans to expand Pepsi Raw, its nascent premium cola brand made from natural ingredients.

Bruno Gruwez, marketing director at Pepsi, confirmed that the company is developing additional flavour variants and pack formats to broaden the offering.

Meanwhile, Pepsi is preparing to launch a £1.5m integrated campaign to support Pepsi Raw's UK launch (Marketing, 21 November).

The campaign, created by Abbott Mead Vickers BBDO, breaks on 3 March. It will encompass print and outdoor advertising and is aimed at 'sophisticated and urban' consumers.

The creative is designed to convey Pepsi Raw's 'youthful and cutting-edge' brand and features half-naked figures against a New York cityscape. 'It is different from previous Pepsi ads,' said Gruwez. 'We want to create a buzz around the product.'

Pepsi Raw has been developed by PepsiCo UK. It is being rolled out in selected pubs and bars from this Friday before being introduced in stores, then launched globally."

City Republic: RBS could point the way to recovery - Brand Republic News - Brand Republic

2008-02-25T09:38:00.000Z

City Republic: RBS could point the way to recovery - Brand Republic News - Brand Republic: "City Republic: RBS could point the way to recovery

City Republic: RBS could point the way to recovery

by Stephen Foster Brand Republic 25-Feb-08, 08:30

Is Royal Bank of Scotland about to 'seal' the market recovery, asks Stephen Foster. He also casts his eye over the automotive sector and reports of WPP's forthcoming results.

All eyes on Royal Bank of Scotland
Arguably the UK deal of the last decade or so was Royal Bank of Scotland's takeover of National Westminster Bank, creating a UK giant and now one of the biggest banks in the world.

The person who released the value in the deal was Fred "The Shred" Goodwin (now RBS CEO Sir Fred Goodwin) who found costs to cut that others had missed completely.

Fred has since expanded the business internationally, most notably with last year’s consortium takeover of Dutch giant ABN Amro, for a chunky £47bn.

RBS, which gazumped Barclays for ABN just as it had Bank of Scotland for Nat West, continued with its bid even while stock markets were collapsing and credit tightening thanks to the sub-prime crisis.

Some unkind commentators have remarked that it could have bought Merrill Lynch, JP Morgan and a couple of others for the same money at the tail end of last year. That is, they feel Fred overpaid.

Now there are fears that RBS will need to boost its capital ratio (the proportion of its own money to its loan book) if it has to announce big sub-prime write-offs when it announces its 2007 profits on Thursday.

But Fred didn't get where he is by blinking first.

A rights issue, the most obvious way of raising more capital, would result in a City chorus calling for Fred's head (RBS shares are already down 40% or so in a year and a rights issues would depress them further).

So RBS is far more likely to flog off a few of the big assets it has acquired over the past few years, like Angel Trains and Condor Ferries.

A few weeks ago it looked as though it might be adding Liverpool Football Club to this eclectic list, because it lent Tom Hicks and George Gillett the money to buy it. However, they've since re-financed.

But, just as football managers need to be lucky, embattled CEOs need circumstances in their favour too.

And there are signs that the markets are recovering a bit, in the UK anyway. The financial sector has brought them down but Barclays and Lloyds TSB produced decent figures last week and Alliance & Leicester, which took a biggish hit on sub-prime, didn't collapse and will probably be taken over anyway. Northern Rock is out of the way (for better or worse) and RBS, unless it's just talking a good game, could seal the recovery.

And Fred's big bet on ABN Amro won't look so daft after all.

The spread betting shops are expecting the FTSE 100 to rise back above 6,000 this week and the index duly set off north in early trading this morning.

WPP acquires UK digital agency HeathWallace - Brand Republic News - Brand Republic

2008-02-15T12:01:00.001Z

WPP acquires UK digital agency HeathWallace - Brand Republic News - Brand Republic: "WPP acquires UK digital agency HeathWallace

by Staff Brand Republic 14-Feb-08, 11:20

LONDON - WPP Group has bought a majority stake in six-year-old UK digital agency HeathWallace for an undisclosed sum.

The agency, which is based in Reading with offices in Hong Kong, is ranked at 81 in the UK's top 100 digital agencies.

The acquisition of a 75% stake was made by WPP Digital, the digital investment arm of WPP.

Founded in 2001, HeathWallace has around 60 staff and includes HSBC, RBS, ABN Amro and AIB among its clients.

HeathWallace's unaudited revenues for the year to December 31 were £4.3m with gross assets of £3.1m.

It is the second acquisition that WPP has announced this week. Earlier, it acquired a stake in NuConomy, a web analytics company based in Silicon Valley and Israel.

The investment continue WPP's strategy of developing its networks in fast growing sectors and markets and strengthening its capabilities in digital media."

Can you trust comparison sites? | This is Money

2008-02-15T12:01:00.000Z

Can you trust comparison sites? | This is Money: "Can you trust comparison sites?
Liz Phillips & James Coney, Daily Mail
13 February 2008

Can you trust comparison sites?

Liz Phillips & James Coney, Daily Mail
13 February 2008

Reader comments (1)

Comparision websites are supposed to make our lives easier.

The idea is these internet-based companies can examine thousands of car or home insurance policies, mortgages, loans and credit cards in an instant and find the best one for you - saving you time and money.

They have become big business. More than two out of every three car insurance policies sold last year were done through the 17 leading, and handful of smaller, comparison sites in the UK.

And you can't fail to notice them. Those shouting the loudest with big budget ad campaigns are Moneysupermarket.com, Confused.com, GoCompare, Comparethemarket, uSwitch and newcomer TescoCompare.

The biggest, Moneysupermarket, got more than 4.5m separate visitors in just one month last year, and took 55% of the market. In all, 10m people a year pay separate visits to look at its mortgages, motor insurance or home insurance.

Sites make their money by picking up commission for each customer they send to the provider or when a successful sale is made - they get around £45 for each successful credit card sale generated by the site or £3.50 per click through to the provider's site. They could pick up as much as £100 if you take out a loan.

They also get money from companies advertising on the site, and some by passing on your personal details to other salespeople.

What's the catch?

The British Insurance Brokers Association recently claimed that the sites make assumptions that have misled consumers into making the dangerous mistake of taking out insurance they will never be able to use.

And they have angered independent financial advisers who must spend thousands of pounds a year to comply with the strict sales rules of the City watchdog Financial Services Authority when they make a recommendation.

The FSA is considering bringing in similar rules for comparison websites. The main complaint is the lack of consistency. Consumers expect comparison sites to find them the cheapest deal available. But while the results you get back may save you money, a cheaper deal can often be found elsewhere.

Then there is the issue of independence. British Gas and BT have both had issues with comparison sites in the past. They complained they were unfairly represented in best buy tables because they did not have a commercial arrangement with the website. A frequent complaint will be that sites have headings such as 'Editor's Choice' or 'Best Rate You Can Get Online Today'.

These aren't necessarily the cheapest deals, but the ones that will make the comparison site the most money. However, it is not hard to see how you could be misled into thinking that these results are the cheapest. Some companies even specifically bring out products with low rates to get in to best buy tables.

The problem with this is that there will be a lot of clauses and small print adding to the cost. Another frequent complaint is from customers who don't get the price they are originally quoted on the comparison site. One reason is that this quote is not in real-time, so it is only an indication.

A second reason is that most sites only ask for a limited amount of information and then make a series of assumptions to fill out the forms. If your circumstances don't fit these assumptions then the final quote you are given from the insurer is likely to be far higher.

When it comes to savings, mortgages and credit cards best buy tables are not all they seem. With credit card and loans, most lenders give 'typical rates' which means you may get a vastly different interest rate quoted based on your track record of handling credit when you fill in an application.

Criticisms are that savings rates are artificially boosted by short-term bonuses - something Money Mail's savings tables never take into account. It something Nationwide is campaigning to have included in the Banking Code.

Mortgage tables usually disregard higher lending charges which can be levied on loans amounting to more than 90% of the price of the property. Arrangement fees based on a percentage of the loan that are uncapped can be astronomical on larger mortgages - but the provider could still be at the top of the table if it offers the cheapest rate.

What we found

Money Mail compared the sites using two typical scenarios - one for motor and one for home insurance. The difference in price can be huge. And the way the sites work differs massively, too.

Research from data compilers Defaqto found that just over one in ten of those looking for car insurance were given the same premium by the insurer as they received on the comparison site. Of the three leading comparison sites for credit cards the best buys for balance transfers and purchases differed widely.

The top three for Moneysupermarket, Confused and uSwitch were all different. Insurance is one area where the differences are most marked. We were baffled trying to understand which insurers appeared on each site.

TescoCompare has a panel of just 30 insurers. They go to for quotes in the same way as a traditional broker will do and claims Lloyds TSB, Nationwide, Churchill, Privilege, Prudential, Virgin and Tesco don't appear anywhere else. You can compare the product features of the cheapest four, but we found it refused to give the next four's details despite six attempts.

Confused.com meanwhile, says it covers 97% of car insurers compared with just 70% of home insurers and 100% of energy companies. But its site proved confusing when looking for home insurance. Because one section was filled in incorrectly we had to start again and, in all, took an hour to complete the search.

Comparethemarket's home insurance form didn't ask for the value of contents, items away from home and high value items. Its cheapest quote came out very low, but its quotes are likely to be inaccurate. With Gocompare we didn't appear to be able to increase the cover for items away from home from their automatic £750 to £2,000.

Comment | Letters: Best practice is needed to ensure email delivery - NMA

2008-02-15T12:00:00.000Z

Comment | Letters: Best practice is needed to ensure email delivery - NMA: "Letters: Best practice is needed to ensure email delivery

Letters: Best practice is needed to ensure email delivery

Platform: None | Author: Mike Weston, MD EMEA, Silverpop | Source: NMA magazine | Published: 14.02.08

Email article | Printer Friendlymore Comment

The quarterly National Email Benchmarking Report is a useful tool for stirring debate but I often think the results hide more than they reveal. This quarter's report says that email delivery rates fell by 68% for customer acquisition and 80% for retention. I guess it depends who you're counting: one well-known online fashion etailer we work with is seeing a 99.5% delivery rate.

The only way to truly benchmark your current deliverability is against your past record. Averages of a moveable...

It's not as if overall volume of emails has grown - that has actually declined slightly - so perhaps, while ISPs and consumers have become more savvy about how they filter email, those sending them aren't moving at the same pace. Trends across our pool of customers continue to show that, over time, email marketers who embrace best practice tend to maintain much higher deliverability rates.

There will be blips as one or other ISP or email gatekeeper changes the rules, but these should be dealt with as they arise and, assuming best practice, the deliverability rates should return to their previous levels.

Churchill Insurance relaunches nodding dog microsite - Brand Republic News - Brand Republic

2008-02-15T11:58:00.000Z

Churchill Insurance relaunches nodding dog microsite - Brand Republic News - Brand Republic: "Churchill Insurance relaunches nodding dog microsite

by Nikki Sandison Brand Republic 15-Feb-08, 09:30

LONDON - Churchill Insurance has relaunched its Challenge Churchill microsite, giving visitors the chance to play interactive games, test their Sudoku skills and enter a prize draw to win a Nintendo DS.

New games will be added to the site every month to keep it fresh and engaging for users.

Visitors will also be able to have their insurance questions answered by the Churchill nodding dog.

They can challenge Churchill for a better quote on car, home, travel, pet, breakdown, van or motorcycle insurance.

A spokesperson for Churchill Insurance said: 'We have relaunched the microsite to ensure it offers visitors a fully interactive experience.

'We hope that people will have such fun playing the quizzes and games that when it comes to getting an insurance quote, Churchill will be front of mind.'

Churchill is part of RBS Insurance and is wholly owned by the Royal Bank of Scotland Group.

Earlier this month Churchill briefed digital agency Rufus Leonard to launch a heavyweight online ad campaign promoting its range of car and home-insurance products in conjunction with its Challenge Churchill TV ads."

RBS faces tough questions over £12.5bn finances gap | Business | The Guardian

2008-02-06T17:25:00.000Z

RBS faces tough questions over £12.5bn finances gap | Business | The Guardian: "RBS faces tough questions over £12.5bn finances gap"

RBS faces tough questions over £12.5bn finances gap

Jill Treanor
The Guardian,
Tuesday February 5 2008

Contact the Business editor
business.editor@guardianunlimited.co.uk

Report errors or inaccuracies: reader@guardian.co.uk
Letters for publication should be sent to: letters@guardian.co.uk

If you need help using the site: userhelp@guardian.co.uk
Call the main Guardian and Observer switchboard:
+44 (0)20 7278 2332
- Advertising guide
- License/buy our content

This article appeared in the Guardian on Tuesday February 05 2008 on p22 of the Financial section. It was last updated at 00:02 on February 05 2008.

The Royal Bank of Scotland is scrambling to reassure investors that it has a robust capital base in the face of increasing speculation that it needs to plug an estimated £12.5bn gap in its finances.

The Edinburgh-based bank is facing tough questions from City analysts and investors about whether it needs to conduct a rights issue or sell off assets to raise funds. There are also concerns that it might need to write off more losses from its exposure to financial instruments linked to the sub-prime mortgage crisis.

Some investors believe that if the bank did embark upon a cash call, it would require a shake-out of the RBS board and possibly the departure of chairman Sir Tom McKillop or chief executive Sir Fred Goodwin.

The lingering suspicion that the bank will need to raise capital is putting pressure on its share price, which has slumped to below 400p but started to recover yesterday as the bank briefed investors. Analysts have calculated that to put its capital base on a par with its European rivals, RBS would need to raise £12.5bn - just under a third of its existing market capitalisation.

Last week analysts at Credit Suisse and Citi raised the possibility of a rights issue by RBS. Citi's analysis also covered Barclays which it calculated could need to raise £6bn of capital.

The analysts at Credit Suisse said: "RBS shares continue to suffer from broader concerns over write-downs and loan impairment, magnified by the very high balance sheet leverage at the bank."

They raised six options for the bank, including doing nothing or selling assets such as rolling stock company Angel Trains.

They suggested it could sell its Bank of China stake or its insurance division, which includes Direct Line, or cut its dividend. They concluded, however, that a rights issue was the preferred route - even though it conceded the bank would be reluctant to proceed with such an embarrassing move.

A year ago, RBS raised its dividend by 25% and indicated that more generous payouts were on the way for investors. However, much has changed since then. The decision to buy parts of ABN Amro has put pressure on the bank's finances while the credit crunch has also added to its difficulties.

The analysts focus on the bank's so-called tier one ratio - a regulatory measure - which they argue is at 4%, which they compare with the European average of 6.5%, and note it is at the bottom of the range acceptable to the regulator, the Financial Services Authority.

However, RBS is thought to be arguing to investors that it has a total capital position of 12%, which is well above the regulatory norm of 8% and that this is a better measure.

RBS refused to comment but pointed to its last communication with the market when it insisted its capital was "within its target ranges".

400p
The Royal Bank of Scotland's share price has slumped to below this figure, though it is starting to recover

£6bn
The amount Barclays might be expected to raise, according to Citi

25%
The percentage by which RBS raised its dividend last year

Car Insurance | TescoCompare.com comes out on top again

2008-02-06T10:47:00.000Z

Car Insurance | TescoCompare.com comes out on top again: "TescoCompare.com comes out on top again"

TescoCompare.com comes out on top again
4 February 2008
TescoCompare.com has been rated the cheapest price comparison site for car insurance by independent research agency Consumer Intelligence.

The research compared the top five car insurance aggregator sites and looked at how often each of them delivered the cheapest quote on 2000 consumer risk profiles. For the second month in a row, TescoCompare.com came out on top, with the cheapest quote on over 39% of the risk profiles in December 2007. The second best placed site achieved the cheapest quote on 32% of the risk profiles.

Since launching in September 2007, TescoCompare.com has also been deemed the best price comparison site for car insurance by independent market analysts, Defaqto in October 2007.

Commenting on the latest Consumer Intelligence research, Peter Dingle, Managing Director at TescoCompare.com said: “We are extremely proud of the latest results from Consumer Intelligence. Finding the right level of cover for the best price available to meet our customers’ needs is at the heart of our proposition.

“On TescoCompare.com, our customers are able to type in all of their details to guarantee they get the right level of cover for their individual needs. One of the most important factors for us is to ensure that the price we quote is the same as or cheaper than the price the customer could get by going direct. We are delighted that the Consumer Intelligence results reveal that, despite putting getting the right level of coverage first, our service still delivers the cheapest quotes on more occasions then any of our competitors.”

TescoCompare.com is unique amongst car insurance comparison sites as it allows consumers to compare 25 different policy features – as well as the premium quoted –to help consumers chose not just the cheapest policy, but also the one which is right for them.

TescoCompare.com differentiates itself from other car insurance comparison sites by guaranteeing that the price quoted on the site doesn’t change when the customers clicks through to buy. Also, the price quoted on TescoCompare.com will be the same as or cheaper than if the customer went direct.

Majority of marketers expect email marketing spend to rise - Brand Republic News - Brand Republic

2008-02-05T10:33:00.000Z

Majority of marketers expect email marketing spend to rise - Brand Republic News - Brand Republic: "Majority of marketers expect email marketing spend to rise

by Alex Donohue Brand Republic 01-Feb-08, 12:40

LONDON - More than 80% of marketers expect their email marketing expenditure to increase, according to a DMA survey, which also found that direct mail and telemarketing form the most successful combination alongside email.

The study found more than 80% of respondents expected their company to increase expenditure in email marketing, with around half saying they would not be re-allocating money from another marketing channel to do so.

The National Client Email Marketing Survey found that 39% of respondents considered direct mail and telemarketing the most successful campaign tools to work alongside email marketing, with 34% putting integrated email and telemarketing in second place.

However, the DMA that said on average companies only had email addresses for 50% of their database.

The DMA study also found email delivery rates were 'slightly down' from last year, which it said was due to increased volumes and heightened competition in the sector.

Richard Gibson, chair of the DMA email marketing council's benchmarking hub, said: "It's encouraging to note that many organisations are taking a multi-channel approach to growing their email databases.

"We mustn't underestimate the challenges for many organisations in integrating offline data capture of email addresses -- there needs to be a multi-channel view of the whole customer experience."

World's Web Users Are Shopping Online - eMarketer

2008-02-05T10:29:00.000Z

World's Web Users Are Shopping Online - eMarketer: "World's Web Users Are Shopping Online
FEBRUARY 1, 2008

World's Web Users Are Shopping Online

FEBRUARY 1, 2008

E-commerce infrastructure still building.

More than 85% of the world's Internet users surveyed have purchased something online, according to The Nielsen Company's "Global Online Survey on Internet Shopping Habits," conducted in October and November 2007.

The research company said that more than half of Internet users had made at least one purchase online within the past month.

Need data for presentations? eMarketer subscribers can download charts instantly — over 50,000 choices.
Learn About an eMarketer Subscription

"An emerging middle class and alternative online payment options are spurring online buying in large developing e-commerce economies like China and India," said Jeffrey Grau, senior analyst at eMarketer.

Mr. Grau noted that much work remained to keep e-commerce growing.

"Developing countries typically have a tradition of cash-based transactions," Mr. Grau said. "Much needs to be done to create confidence among buyers and sellers in the online purchasing process for these countries to reach their e-commerce potential."

"Two years ago, approximately 10% of the world's population (627 million) had shopped online," said Bruce Paul, vice president of customized research at Nielsen US. "This number has increased by approximately 40% to 875 million."

More than four out of 10 online buyers worldwide had purchased books from a Web merchant within the past three months. Clothing was the next most popular online purchasing category.

Travel was the fourth most popular online purchasing category.

"Travel is often one of the first retail categories to succeed in developing e-commerce economies," Mr. Grau said. "Positive consumer experiences booking travel online creates confidence that can lead to purchases in other more complex e-commerce categories."

Worldwide retail e-commerce is projected to grow through 2010, though at a decreasing rate of growth, according to JPMorgan's "Nothing But Net" report.

The investment firm predicted that retail e-commerce would bring in over $700 billion in 2010.

Auto Sites Not Best for Auto Ads - eMarketer

2008-02-05T10:28:00.000Z

Auto Sites Not Best for Auto Ads - eMarketer:

that the Internet was the best source for getting automotive information—except for automobile Web sites. Automakers' sites ranked fourth, behind friends and family and local auto dealers.

That preference also carries over into advertising: Online advertising for cars works best on Web sites that have nothing to do with automobiles.

Automotive sites were ranked fifth in terms of click-through, interactivity and time spent with rich media campaigns for cars, in a study released in January 2007 by PointRoll.

More recently, ValueClick Media and Goodway Group tracked in-market consumer click-through and conversion rates for auto ads placed on wide variety of sites, in a study called "Cost Effectively Reaching the In-Market Auto Buyer."

Consumers were tracked in real time, and ads were removed from sites where they didn't work.

Different sites worked differently for different makes and models, and consumers' geographic locations also affected ad performance.

Matthew Boyd, senior vice president of ValueClick, told eMarketer that the approach used ad networks' reach and optimization technology to learn what sites were most likely to perform best. He said the approach, which the firm informally calls behavioral learning, could be used for any type of online ad campaign.

"Every product and every market has different 'best sites,' Mr. Boyd said, adding that the approach could be used alongside other campaign tactics such as behavioral targeting and search.

"Search has its place, but there has to be something for consumers to reach," Mr. Boyd said. "Optimizing ad placement drives awareness and consideration so that searches are executed."

Motorbike insurer Bennetts runs online activity - Brand Republic News - Brand Republic

2008-01-30T15:49:00.000Z

Motorbike insurer Bennetts runs online activity - Brand Republic News - Brand Republic: "Motorbike insurer Bennetts runs online activity

Motorbike insurer Bennetts runs online activity

by Nikki Sandison Brand Republic 30-Jan-08, 11:50

LONDON - Bennetts, the motorbike insurance brand, is launching an online ad campaign to drive traffic to its website.

The campaign, created by VCCP, features a series of direct response online banner ads across affiliate motorbike sites and motorcycle suppliers, driving people to Bennetts' site.

There are two creative executions, the first of which shows a motorbike speedometer accelerating along a road with the speedometer registering the increase in speed, and copy stating "up to 40% savings in 0.01 secs".

The second execution advertises cheaper sports bike insurance.

A new strapline appears in the ads to represent Bennett's presence as a specialist biking brand: 'Bennetts. It's all about the bike'.

Bennetts said that the campaign, which is supported by press ads, is designed to consolidate its position as "the UK's number one motorbike insurer".

Mark Fells, associate director of marketing for Bennetts, said: "The internet is often the first port of call for those seeking to renew their insurance; so it's vital to ensure a strong brand presence.

"But beyond that, it's important to complement the branding with relevant offerings embedded in an appealing creative."

Cliff Hall, account director of VCCP, said: "The online ads are visually striking but with a succinct message, and form the first element in a year-long campaign to tighten Bennetts' position as the leading provider of motorbike insurance."

Bennetts is owned by BGL Group and is the title sponsor of the 2008 World Superbike Championship.

News | GSI Commerce acquires E-Dialog for £79m - NMA

2008-01-30T10:13:00.000Z

News | GSI Commerce acquires E-Dialog for £79m - NMA: "E-Dialog has been acquired by ecommerce and multi-channel solutions provider GSI Commerce for $157m (£79m).

The purchase of the email marketing services provider will help GSI extend into existing and new vertical markets and boost its European presence.

The deal will see GSI acquire the privately owned company for $157m (£79m), including cash of $147.8m (£74.6m) and restricted shares of GSI Commerce for $9.2m (£4.6m).

E-Dialog will act as a subsidiary of GSI and retain its name, staff and premises.

Michael G Rubin, chairman and CEO of GSI Commerce, said, 'We are really excited to expand GSI capabilities in this area. We believe email marketing has highly attractive fundamentals, which is evidenced by the strength and impressive projected growth of the industry.'"

Post Online - RBSI culls 100 managers

2008-01-29T17:14:00.000Z

Post Online - RBSI culls 100 managers: "RBSI culls 100 managers

Royal Bank of Scotland Insurance has today confirmed that it has decided to cull 100 managers after a review of the business.

A spokeswoman for the insurance group confirmed the losses, but said it would not be able to comment further as it was in close period. For full analysis and comment see this week's Post out on Thursday."

RBS Insurance digital chief quits | Precision Marketing

2008-01-29T17:10:00.000Z

RBS Insurance digital chief quits | Precision Marketing: "RBS Insurance digital chief quits
email article to a friend

Source:
Online
ByLine:
Gemma Hummerston
Publication date:
24 Jan 2008

Celebrity!

RBS Insurance head of e-business David Catterall is to leave the company at the end of January.

Catterall, who handles online business for RBS Insurance brands including Direct Line, Churchill, Privilege and Green Flag, has worked for the organisation for four years. The company confirmed his departure but refused to reveal where he was going. Catterall was unavailable for comment.
He was originally part of the commercial team and moved into e-business a year ago, where he was responsible for all aspects of the website including marketing and advertising, sales and design.

Catterall was also instrumental in the appointment of OMG Network to handle an affiliate marketing programme across all of RBS Insurance’s brands in November 2007 (precisionmarketing.co.uk).

RBS Insurance brands appeared on a comparison site for the first time with the launch of TescoCompare.com towards the end of last year. Churchill, Privilege and Devitt all participate in the website’s search results with the exception of Direct Line, who last year launched a major marketing campaign attacking comparison sites."

RBS supports Sport Relief - Brand Republic News - Brand Republic

2008-01-28T11:29:00.000Z

RBS supports Sport Relief - Brand Republic News - Brand Republic: "RBS supports Sport Relief

by Jemima Bokaie Marketing 25-Jan-08, 16:30

LONDON - Royal Bank of Scotland (RBS) has signed a marketing partnership with Sport Relief to raise money for the charity through its sponsorship of the RBS 6 Nations 2008.

Fundraising events will be held at selected championship matches and in UK city centres in the run up to the tournament, which begins next weekend. The initiative will see rugby stars challenge the public to 'Kick for an RBS 6 Nations Ticket.'

RBS has also signed four up-and-coming rugby stars, one from each home nation, to drive awareness of Sport Relief and the tournament among younger rugby fans. The 'RBS Young Guns' team will include England's David Strettle, James Hook from Wales, Scotland's Rory Lamont and Andrew Trimble from Wales.

The fundraising drive will culminate on Sport relief Weekend 14-16 March, during which the RBS 6 Nations Championship final will be held."

Post Online - Chubb in NIG swoop

2008-01-21T15:05:00.000Z

Post Online - Chubb in NIG swoop: "Chubb in NIG swoop

Chubb Insurance has appointed Steve McGuinness as its new personal lines motor manager.

He joins Chubb from RBS Insurance where he was head of motor for the NIG brand. During his five years at RBS Insurance, Mr McGuinness was also motor pricing manager for the Churchill brand.

Prior to this, he was motor underwriting manager at Direct Line for five years.

Commenting on the appointment, Simon Mobey, personal lines manager for UK & Ireland said: “This appointment reflects our continuing commitment to our motor offering and we are delighted that Steve is joining the personal lines division.'"

McGuinness named as motor manager by Chubb

2008-01-21T15:04:00.000Z

McGuinness named as motor manager by Chubb: "McGuinness named as motor manager by Chubb

by Richard Kilner

Story link: McGuinness named as motor manager by Chubb

Steve McGuinness has been named by Chubb as their new motor manager for personal lines.

He leaves behind RBS Insurance, where he held the post of NIG’s head of motor.

During his time at RBS he was also employed as Churchill’s motor pricing manager.

McGuinness brings to his new post experience in technical matters, as well as the pricing, product and distribution of motor.

As motor manager he will be responsible for the strategic development of motor.

Simon Mobey, the firm’s personal lines manager for the Uk and Ireland, has expressed his delight at the new appointment that will, he says, continue to strengthen the firm’s motor expertise."

Cheap Car Insurance | exclusive cashback offer - moneysupermarket.com

2008-01-21T13:54:00.000Z

Cheap Car Insurance | exclusive cashback offer - moneysupermarket.com: "Cheaper car insurance than anywhere else

Cheaper car insurance than anywhere else

Andy Leadbetter, Head of Motor and Home Insurance

Swiftcover, the cheapest car insurer in the UK, is offering an exclusive deal to Rate Alert readers - you can earn £30 cashback as long as you apply through our price comparison tool. It's an offer you won't find anywhere else so grab it now...

Sometimes deals come along that threaten to blow every other offer out of the water. This is one of those times - and I'm thrilled to say, it's exclusive for our readers!

Swiftcover car insurance is already established as the cheapest car insurer in the UK. According to research into more than one million quotes returned through our car insurance comparison tool, Swiftcover was the cheapest insurer on more than 20% of all the quotes returned - and more than 45% on the occasions it quoted.

Now however, the cheapest car insurance on the market is even cheaper - thanks to an exclusive £30 cashback deal.

You can pick up £30 cashback on all Swiftcover car insurance quotes, as long as you go through our car insurance comparison tool. This means that your car insurance premiums will be effectively be £30 cheaper than you will find anywhere else - including direct at the Swiftcover website and through any other price comparison website.

So if your car insurance is up for renewal, and frankly even if it's not, my advice is that you use our tool now and see what quotes you could be receiving. Insurance quotes vary from person to person based on a number of factors including the car you drive, the size of its engine, where you live, your own personal circumstances and more.

With that in mind, Swiftcover will not necessarily be the cheapest for everyone - however, it will be the cheapest for a significant proportion of our customers. Now, thanks to this cashback deal, this offer is even more competitive - so if it is the cheapest for you, grab it now as this deal will not last for ever!

As a special note, please bear in mind that it's imperative you complete the whole question set and click through from the results page. If you click on any of the banners for Swiftcover before you reach the results page you will simply be clicking through to the Swiftcover website and therefore won't be eligible for the cashback.

Even if Swiftcover isn't the cheapest for you, chances are that our car insurance comparison tool will save you a bundle.

Not only does our comparison tool compare more car insurance quotes than any other price comparison tool on the web, but it also has access to a number of other attractive deals such as up to £75 cashback from Norwich Union, a free MOT test (worth £44.95) from KwikFit car insurance and one month's free insurance with the Post Office if you apply before January 31.

So what are you waiting for? Check our tool now and you'll be in the fast lane to the cheapest car insurance around.

Home Insurance | Home insurance the next big price comparison battleground

2008-01-16T09:43:00.000Z

Home Insurance | Home insurance the next big price comparison battleground: "Home insurance the next big price comparison battleground
14 January 2008
Home insurance the next big price comparison battleground
14 January 2008
Every month Consumer Intelligence surveys 2,000 home insurance buyers and recent months has seen a 10% increase in price sensitivity. This is the biggest jump since the survey began over 18 months ago. So what’s going on?

Ian Hughes, CI’s Managing Director, sheds light on the matter. “Consumers long ago woke up to the fact that they can save serious money on their motor insurance by switching providers. It was only a matter of time before they applied the same principle to home insurance. Recent mortgage and energy cost increases have seen home owners looking to offset these rises. Reducing home insurance premiums is a quick and easy way of saving money.”

Around 69% of motor insurance buyers confirm they used a price comparison website last time they renewed. Hardly surprising with 2007 seeing motor premiums rise at double the rate of inflation.

During the same period, home insurance premiums fell steadily but started creeping up again during December. In stark contrast to motor insurance, CI’s research shows that only 43% of consumers used a price comparison site the last time they renewed their home insurance. The difference would mean an additional 5.5m people using price comparison sites over the next few years.

“Up until recently consumers have been very slow to realise the benefits of switching home insurance providers.” explains Hughes. “Partly because of traditional prejudices towards mortgage lenders, not to mention the overall cost if there’s a cataclysmic claim. But continuing economic uncertainty is encouraging them to move fast - in increasing numbers - to take advantage of the significant discounts on offer.”

Over the last few months a handful of the home insurance market’s leading players have shaved up to 50% discount off annual premiums providing consumers with a golden opportunity. Hughes continued “Obviously we recommend consumers take advantage of the situation. Get out there and sniff out the best deals… you could save yourself a great deal of money!”

But while CI cites price comparison sites as a great place to start shopping around, Hughes adds an important caveat. “We’d also advise people to widen their search, bearing in mind that some of the biggest names in home insurance offer their best deals direct.”

At the moment CI’s research shows MoneySupermarket.com as the most popular price comparison site for home insurance. “Things are just about to take off for home insurance price comparison sites” predicts Hughes. “Provided the pricing, marketing and service delivery is right, they can expect rich pickings in 2008”.

Home Insurance | Challenge Churchill to beat your home insurance renewal by £30

2008-01-15T09:41:00.000Z

Home Insurance | Challenge Churchill to beat your home insurance renewal by £30: "Challenge Churchill to beat your home insurance renewal by £30
14 January 2008

Householders looking to drive down the cost of their insurance as part of their New Year financial resolutions can benefit from the latest Churchill Home Insurance incentive, guaranteeing to beat any competitor’s current renewal quote by at least £30.

Martin Scott, Head of Churchill Home Insurance, says: “Our price guarantee enables new customers to obtain lower cost insurance at a time when many householders are under increased financial pressure after Christmas. Householders who are claim free for three or more years can benefit from our new offer.”

The renewal quote must provide cover on an equivalent basis to Churchill's and be at least £75.

The Churchill Home Insurance policy offers the following benefits:

Automatic cover of up to £40,000 for contents and £250,000 for buildings

24 hour claims and emergency helplines

Personal possessions, accidental damage and legal protection cover are all available as optional extras to the standard policy"

Home insurance: Premium price battle - myfinances.co.uk

2008-01-15T09:40:00.000Z

Home insurance: Premium price battle - myfinances.co.uk: "Home insurance battle forecast

Home insurance battle forecast

Monday, 14 Jan 2008 16:57

Home insurance customers are set to head online to compare insurance quotes in larger numbers, according to new research.

Currently 69 per cent of motor insurance customers use price comparison websites to get quotes for cover, but only 43 per cent of home insurance customers do so.

However, with rising mortgage repayments and household bills, a study from industry research firm Consumer Intelligence (CI) reveals an increase in price sensitivity of ten per cent among home insurance customers.

"Consumers long ago woke up to the fact they can save serious money on their motor insurance by switching providers. It was only a matter of time before they applied the same principle to home insurance," said Ian Hughes, managing director of CI.

"Recent mortgage and energy cost increases have seen home owners looking to offset these rises. Reducing home insurance premiums is a quick and easy way of saving money."

He went on to explain the slow uptake in switching home insurance providers was due to mortgage lenders often being a homeowner's insurer.

However, the current situation of leading insurers cutting up to 50 per cent off premiums is described as "a golden opportunity".

"Obviously we recommend consumers take advantage of the situation. Get out there and sniff out the best deals… you could save yourself a great deal of money!" Mr Hughes said.

"We’d also advise people to widen their search, bearing in mind that some of the biggest names in home insurance offer their best deals direct."

This week Churchill has launched a price promise to beat home insurance renewals by £30.

Churchill Home Insurance claims to have best price - Money News

2008-01-15T09:39:00.000Z

Churchill Home Insurance claims to have best price - Money News: "Churchill Home Insurance claims to have best price

Mon 14th Jan 2008

Churchill Home Insurance has claimed that it can give customers the lowest price on their cover.

Those who are looking to renew their policy have been guaranteed that Churchill Home Insurance will beat any price quote by £30, as long as the cover is equivalent to what is offered by Churchill and is worth at least £75.

The policy offered by Churchill Home Insurance includes up to £40,000 contents cover and up to £250,000 buildings cover.

Martin Scott, head of Churchill Home Insurance, explained that taking advantage of the firm's promise could lead to cost savings.

'Our price guarantee enables new customers to obtain lower cost insurance at a time when many householders are under increased financial pressure after Christmas,' he remarked.

Meanwhile, Direct Line recently offered one-third off home insurance to customers who are looking for ways to save money in the new year."

Insurance Age - Drakefield launches new travel insurance aggregator site

2008-01-15T09:38:00.000Z

Insurance Age - Drakefield launches new travel insurance aggregator site: "Drakefield launches new travel insurance aggregator site

Drakefield launches new travel insurance aggregator site

Travel Insurance giant Drakefield Insurance Services has launched a new aggregator site, whichpolicy.co.uk, backed by a two-week TV campaign.

The 30 second direct response ad goes live on January 14 to 28, with the possibility of extending until Easter. Whichpolicy.co.uk is a comparison website that will allow consumers to choose the best travel insurance policy for their individual needs from a number of selected insurance brands.

The site will allow consumers to search and choose a policy by price or by cover options. The site has the advantage of a flexible cover and price comparison facility both online and uniquely through call centre support.

Brands currently on the site include AA, Go Travel Insurance, Admiral, Elephant, 1Stop Travel Insurance, Only and etravelinsurance.co.uk. More brands are seeking to join Whichpolicy.co.uk, however it is selecting brands based on consumer-focussed criteria which will allow for transparency of product and prices.

Christian Young, chief executive at Drakefield, said: “We are well aware that travel insurance is a ‘grudge buy’ for most people, one that’s often done at the last minute. However we believe that by giving them the chance to view multiple policies at any one time to compare cover and price, the process can be expedited and simplified.

“After a number of high-profile travel firms collapsing in the past 12 months, constant strike threats and last summer’s luggage chaos people are starting to realise that their travel insurance is there for far more than just a lost camera.”

New website recruits consumers to meet with Coke officials - Brand Republic News - Brand Republic

2008-01-14T14:07:00.000Z

New website recruits consumers to meet with Coke officials - Brand Republic News - Brand Republic: "New website recruits consumers to meet with Coke officials

New website recruits consumers to meet with Coke officials

by Bill Britt Marketing 14-Jan-08, 10:15

LONDON - Coca-Cola Great Britain (CCGB) is the latest company to tap into consumer-generated media with Wednesday's launch of website designed to gather consumer feedback on issues such as labelling, nutrition and to field consumer questions.

The first phase of www.letsgettogether.co.uk is to recruitment members of the public who would like the chance to meet with decision-makers from CCGB face-to-face, to discuss their thoughts and concerns about the company's products and activities. It will also have an interactive questions and answers section. The second phase of the website will be crafted in response to the meetings.

The overall aim is to provide transparency between the company and consumers.

CCGB president Sanjay Guha said: "We're committed to providing our customers with great tasting, high quality drinks the world over, plus the information they need in order to make an informed choice, not just about our drinks, but about how we operate as a company too."

The `Let's Get Together' initiative is reminiscent of McDonald's UK launch in April of its "Make up your own mind" website, which was designed to tacking the healthy eating debate head on.

Although soft drinks company already provides information to consumers via on-pack nutritional labels, a company website, annual reports and a dedicated Customer Information Centre (0800 227711), the company says more and more people are now contacting CCGB by email rather than telephone to ask for information about the company or its products.

CGI, Norwich Union and Allianz launch next generation account reconciliation system

2008-01-09T17:08:00.000Z

CGI, Norwich Union and Allianz launch next generation account reconciliation system: "CGI, Norwich Union and Allianz launch next-generation account system
Accounting

Author:
Antony Savvas
Posted:
14:16 14 Dec 2007

CGI Group, Allianz Insurance and Norwich Union have jointly developed a next generation account reconciliation system.

The Account Reconciliation Centre (ARC) system has been launched to ease insurers' and brokers' administrative burden and digitise account reconciliation.

The flexible web-based tool is set to make paper-based insurance account settlement a thing of the past, said the three partners.

Provided as a managed service hosted by CGI and accessed via imarket, the e-commerce portal, ARC has already come through a successful six-month trial at Allianz Insurance, Norwich Union and a range of their brokers.

ARC is now being made available to the wider broker community. By enabling automatic matching of all but the exceptional items, ARC brings savings in both time and effort, dramatically reducing the administrative burden associated with the traditional account settlement process. It allows brokers to view all outstanding debt in real-time.
ADVERTISEMENT

Donna Lovewell, head of collections at Norwich Union, said, 'Throughout ARC's development and pilot programme stages, CGI has incorporated feedback from both insurers and brokers"

Strong Spend Ahead for E-Mail Marketing - eMarketer

2008-01-08T16:26:00.000Z

Strong Spend Ahead for E-Mail Marketing - eMarketer: "Strong Spend Ahead for E-Mail Marketing
JANUARY 8, 2008

Strong Spend Ahead for E-Mail Marketing

JANUARY 8, 2008

But the tactic's humble rep could be hurting it.

E-mail marketing spending will grow to $2.1 billion in 2012 from $1.2 billion in 2007, according to JupiterResearch's "US E-mail Marketing Forecast, 2007 to 2012" report.

“E-mail service providers have done a solid job of standardizing feedback loops with Internet service providers and are continuing to make needed improvements in e-mail delivery,” said David Daniels, vice president and research director at JupiterResearch.

“This will create better opportunities for e-mail marketing, although marketers will have to work harder to remain relevant in their communications with their intended audiences,” Mr. Daniels said.

JupiterResearch also said that spending on retention e-mail would more than double through 2012 and account for more than half of total e-mail marketing spending by then.

Acquisition e-mail marketing was pegged to grow more slowly, with sponsorships such as ad-supported newsletters accounting for most spending.

In its own calculations of e-mail marketing spending, eMarketer includes payments to e-mail service providers, list rental and the costs of in-house e-mail. eMarketer projects that e-mail marketing spending will creep up steadily, reaching $1.65 billion by 2011.

"E-mail marketing is effective, but spending is tempered by the somewhat but not entirely valid impression among many companies that e-mail is inexpensive marketing and that they therefore need not throw too much money at those programs," said David Hallerman, senior analyst at eMarketer.

Spending on e-mail marketing is also moderated by its own efficiency. Because e-mail is a low-cost medium, even relatively large increases in the number of commercial e-mails are not reflected in large spending increases.

Spending will jump by 5.1% in 2008, supported by marketing for both the national and local elections. Similarly, but to a lesser extent, marketing spending growth in 2010 will be boosted by election activity.

"US e-mail marketing spending in 2007 will reach nearly $1.5 billion," Mr. Hallerman said. "That is about $3.60 for e-mail marketing for every $1 that goes to e-mail advertising."

The AA hands Carat its online account - Brand Republic News - Brand Republic

2008-01-08T10:32:00.000Z

The AA hands Carat its online account - Brand Republic News - Brand Republic: "The AA hands Carat its online account

by Andrew McCormick Media Week 08-Jan-08, 08:20

LONDON - Aegis agency Carat has picked up the AA's prized £22m online ad account from digital media agency I-Level without a pitch.

Carat, which has held the media account for the motoring giant’s sister company Saga since June 2005, is believed to have become the first major media player to benefit from the £6bn 2007 summer merger of the two companies."

The agency has landed the mainly search-based online account for the AA, which is believed to be one of the biggest investors in search marketing in the UK. The AA, which has 15 million members, has increased its digital ad spend in recent years over offline channels and upped its search marketing budget in particular.

In October 2007, the AA parted company with I-Level, which won the account in May 2005 when it was valued at around £5m. Omnicom agency PHD holds the AA’s offline media account, which is not thought to be impacted by Carat’s appointment.

A predicted pitch for the AA and Saga’s joint media account has not materialised, but Carat’s win marks the first movement of media agencies since the mammoth deal went through and the AA parted company with I-Level and creative digital agency Dare.

The AA’s online activity in the past 12 months includes sponsorship of MSN’s travel section, in which it built a website featuring fun motoring trips through a range of devices including podcasts.

Yahoo! has also benefited from a large amount of ad spend, including an AA question-and-answer service embedded in the portal.

The AA and Saga merger last summer created the 20th most valuable UK company, valued at £6.15bn. Private equity firms own 80% of the business, with the remaining 20% owned by the companies’ staff.
The two firms have since retained their identities, but have partnered on insurance and other financial products.

Insurance Age - Smooth operator

2008-01-07T13:40:00.000Z

Insurance Age - Smooth operator:

Smooth operator

Whether brokers like it or not, technology has become the backbone of the insurance industry, and software providers have stepped up their efforts in a bid to highlight their knowledge of the insurance chain. Michelle Worvell speaks to David Rasche about how his business stands out from the rest with its determination to support customers through both the good and the bad

As executive chairman of a software company that has more than 1,400 individual customers, in addition to the largest share, by revenue, of the UK retail general insurance broker and intermediary systems market, no one can deny that David Rasche is a driven and successful man. His company, Software Solutions Partners (SSP), also has the largest installed base of general insurance systems in the UK.

SSP's size is, in part, due to its acquisition of rival Sirius in May 2007 in a deal worth approximately £43.4m. At the time, Mr Rasche said: "This is a tremendous opportunity to create a market-leading international and national business, with more than 600 of the most experienced IT professionals in the insurance market. Combining these businesses will strengthen our 'consumer to carrier' proposition in the UK through additional products and market segments."

So how has the integration of the two companies progressed? He explains that the biggest task has not been integrating the disparate technologies, but their differing business models. "The Sirius business model was based around making a sale, delivering and then moving onto the next sale. SSP also likes to make sales, but we want to look after customers and ensure that they return to us," he says.

"In the past, Misys - now Open GI - kept people by using tough contracts, and by tying them in the best way it could. However, we maintain positive customer relationships by providing a good service, so that they don't look for an alternative supplier. We are still expanding significantly, and we want to recruit skilled people with knowledge of the industry."

In a nutshell

Mr Rasche says that he is convinced that SSP offers the best technology products in the insurance market, in addition to the most thorough long-term strategy in terms of capability, software and ability to attract quality staff. Although his rivals would doubtlessly disagree, he says that other players in the market are disadvantaged because they operate on a 'here and now' basis.

So how would Mr Rasche sum up his business? "Our key drivers are our concentration on relationships, strong innovation and the ability to bring robust products to market. At the end of the day, our philosophy is about looking after our customers, and doing everything we can to keep them with us," he explains. "If you understand their business, and you demonstrate that you can look after them through the good and the bad, then they will stay with you. This is important to me, both as an individual and as the face of the business."

Mr Rasche claims that SSP is one of the only software houses in the world that understands the insurance chain. This involves knowing point-of-sale systems, broking and call centres, through to distribution channels, whether they are large or small brokers, affinities, bancassurance, carriers or underwriting agencies. He adds that the company's success is due to the fact that it also provides business advice, and not just IT expertise: "You are not just their supplier, you are their business partner."

When asked if he would have done anything different in his career so far, Mr Rasche explains that he had the option to buy the business in 1994 from Sun Alliance. However, if he had taken up the offer, he concedes that he would not have the skills that he does now, in addition to the experience and training of working with a US organisation.

He adds: "I probably wouldn't have been able to create as good a team, although there is a part of me that says, 'I am now doing my own thing at 52 - instead of 42'. However, I would not have understood at the time how much opportunity there was in market terms across both the insurance company and broking sectors."

Although the broking sector has come a long way in terms of its effective use of technology, and the 'green screen era' is starting to fade away, many brokers are still not using it to its full capacity. Instead, they stay with the same provider year after year, afraid to change. However, in Mr Rasche's opinion, what is the biggest mistake that brokers make when it comes to technology?

"Brokers' biggest mistake is not investigating new systems thoroughly - they just get duped by a flash salesman. They should look under the covers and see what the real business benefits are, check that the supplier is strong and able to survive for the long term," he explains.

Mr Rasche advises brokers to talk to other firms about their customer service, and how well they are being looked after by their systems provider. He reiterates that it is not just about the "glitz and glamour", but about full functionality, reputation and taking businesses to the next step.

He provides an example of one firm that has spent a significant amount of time and energy on the process: "When the Willis Network changed suppliers four and half years ago, it went through an extremely vigorous process. It had users look into the depth of the systems, and asked what the technology and support was. If you compare that to the research by other firms, it was more about the glitz and the glamour."

Diminishing sector

Consolidation has not only had an impact on the broking market, as the software industry has also been effected by it within its own sector. It has also had to deal with a rapidly diminishing broker client base. However, Mr Rasche does not see this as a bad thing.

"If you look back through history, there have been periods of significant consolidation, and there has always been new players coming in and out of the market. In the current environment, brokers appear to be much more professional, and the people who run them are, with no disrespect to their forbearers, more professional too," he says. "It's important that they deal with software players that are going to last, as a typical broker uses a system for around 10 years, and not many software houses last that long. We have seen players come and go, but there has also been firms such as Sirius, which has been in the market for 23 years."

Mr Rasche says he feels that the market needs solid players who are financially strong, can continue to support brokers over time, develop software and integrate new technologies. "For example, we have written off approximately £1m with imarket. Will we ever recover that? I don't know. Can small businesses afford to do that? I am not knocking imarket, but there are times where you may need to invest significantly, and need the size and financial stability to be able to do so."

Voicing opinion

SSP's executive chairman is also very vocal when it comes to the acquisition of Open GI by the Towergate Group in 2007. However, he questions whether Open GI brokers should be working in partnership with a software house or a network, and whether the two are mutually exclusive.

"What do brokers want? Do they want to be part of the Towergate network, and receive special products and distribution schemes and have the technology as incidental, or do they want to choose appropriate technology and software support, such as a help desk? I don't see how they can do both."

He adds: "I can clearly see how Towergate will be able to make good money out of this acquisition, and obtain better management information. That analysis will perhaps enable it to develop a better insurance product, and negotiate an even larger commission.

"There is one argument to say that this is good for brokers that want to be in the Towergate network. However, if you look at using technology and the internet more effectively, such as call centres, is that something that an insurer, network or software specialist should be doing?"

Mr Rasche says that SSP has always maintained that it will not compete with its customers, and that it wants to keep their trust. "How can people trust us if I am running a managing general agent (MGA), for example? We are a strongly independent business, and proud of our technology and service. There is no history of a software house being successfully owned by an insurance player, as they usually end up being sold off."

While technology in the broking sector has come along in leaps and bounds in the past five years, Mr Rasche believes that the broking sector will see much greater connectivity and straight-through seamless processing. He also says that brokers need to be better connected for claims information, and that they will need to connect more successfully to their customers.

"We spend a significant amount of our revenue on innovation - more than £3m. We are also starting to design our next generation broking product, and this will be provide the base for all of our broking platforms," he says.

"SSP is committed to supporting our existing products for at least five years, because we have a large number of firms that pay good money to use them. Our competitors would have our customers, and their prospects, believe that this makes it difficult for us to move onto the next generation - but not at all. It makes it easy because we can design a number of solutions with the best features of all of our products that cover all the latest technology and can take the data from any product seamlessly across."

Mr Rasche claims that most of SSP's competitors have not developed new technology. He says that Misys failed to deliver its new technology, CDL is several years behind where it said it would be and that he has not heard of a new technology strategy from Acturis.

"We have the finance, the people and the knowledge to be able to develop the platform that will be able to do all of those things. It will have modules, so that it can cater for both small and large brokers," he says.

"If you look at the way that the market is changing, consolidation is occurring and new start-ups will form, in addition to the rising importance of MGAs. If you are capable of handling the changing market, then brokers will be able to move around and adapt in good time - that's what a large organisation with the right skills and technology can offer the market. This is where I believe that SSP can deliver."

DAVID RASCHE - BIOGRAPHY

- David Rasche started his first business in the entertainment industry while at Nottingham University, graduating with an honours degree in economics and marketing.

- He first became involved in the insurance sector as a director of Sherwood, and was then recruited by Sun Alliance to drive forward the RA Group and North Park Computers.

- In May 1995, it was sold to Continuum, which was in turn acquired by Computer Science Corporation (CSC) in 1996. As managing director and chairman of CSC RA, David helped the business to almost treble its turnover in the four years following its acquisition.

- He left CSC in October 2000 in a bid to find a medium-sized software company that he could buy into and grow. After nine months of looking at opportunities, he made a joint approach with Laurence Walker and their advisers to acquire CSC's retail insurance division. A further nine months later, the buy-in team acquired Software Solutions Partners, one of the UK's leading suppliers to brokers and intermediaries.

Post Online - MMA Insurance product launch

2008-01-07T13:37:00.001Z

Post Online - MMA Insurance product launch: "Monday 7th January 2008: 11:45
MMA Insurance product launch

Intermediary only insurer, MMA Insurance, has announced the launch of full cycle functionality for its master tradesman plus small contractors liability product on the company’s successful extranet, broker online.

Quotations and binding of cover are fulfilled instantly using broker online and full policy documentation is available to download.

Brokers can also renew cover, access policy details and make common adjustments without referral.

Commenting on the launch, Ian Page, commercial underwriting manager said: “Master tradesman plus is a very popular product with our intermediary partners and represents a significant aspect of our commercial portfolio. Providing the product full cycle supports our drive to make it easier for intermediaries to do business with MMA, as we continue to grow our commercial lines business.”

At the same time as the launch of master tradesman plus full cycle EDI, MMA has introduced an additional security feature to broker online. Each user will now have their own login and password designed to provide even greater protection for their client data.

“These developments will ensure that the service remains a robust and secure platform for intermediaries,” added Mr. Page."

Post Online - Former AA Insurance boss Sinclair resurfaces

2008-01-07T13:37:00.000Z

Post Online - Former AA Insurance boss Sinclair resurfaces: "Monday 7th January 2008: 09:36
Former AA Insurance boss Sinclair resurfaces

Online SME comparative quote facility Iprism has appointed Kevin Sinclair as managing director.

Mr Sinclair, formerly managing director of AA Insurance, will take up his new position on 1 April and Iprism said his appointment completes the senior management team.

Commenting on this and his new role with Iprism Mr Sinclair said: “My time at AAI was invaluable and gave me a real taste for working in a highly entrepreneurial environment. This was something I was keen to continue into my next role and iprism offered the perfect opportunity to do just that.”

Gary Burke, chief executive officer of Iprism added: “We are absolutely delighted to welcome Kevin to the team. He had a range of options to consider since leaving AA Insurance. This coincided with exciting developments within iprism late last year, so I am very pleased we have managed to snatch him from the jaws of the competition.

“We deliberately waited to secure someone of the right calibre to fill this important role for iprism and it was worth the wait. Kevin’s proven track record and ability make him absolutely ideal to manage what iprism has quickly become. His experience will also help to continue rapidly scaling the business during 2008 and beyond.”"

News: RBS Insurance md joins raft of exits in wake of rejig - Marketing Week

2007-12-14T15:50:00.000Z

News: RBS Insurance md joins raft of exits in wake of rejig - Marketing Week:

RBS Insurance md joins raft of exits in wake of rejig

13-Dec-07

The company, which owns Churchill and Direct Line, is seeking a replacement for him. His responsibilities will be covered in the interim by Steve Treloar, a member of the motor categories senior management team.

Moat is one of a number of senior executives to leave the company in recent months. In September, director of brand and proposition Peter Corfield, previously Churchill marketing director, left for rival Zurich Financial Services (MW September 28).

An RBS Insurance spokesman says Moat's departure will not affect marketing, which is led by director of marketing and strategy Roger Ramsden, who has picked up additional responsibilities as director of household.

Previously, Moat was managing director of RBS-owned UKI Partnerships, which manages the Green Flag brand. He was replaced in the summer of 2005 by Andy Watson, who has since left the breakdown organisation (MW January 11).

Moat and Webster are understood to have left the company following a restructure called by RBS Insurance chief executive Chris Sullivan earlier this year. The division is now structured around product lines rather than brands, and a centralised marketing team has been created. Its advertising accounts remain separate, with M&C Saatchi handling Direct Line and WCRS Churchill.

Email delivery rates in sharp fall - Brand Republic News - Brand Republic

2007-12-13T14:53:00.000Z

Email delivery rates in sharp fall - Brand Republic News - Brand Republic:

by Alex Donohue Brand Republic 13-Dec-07, 14:00

LONDON - Email delivery rates slid significantly between the first and second quarters, accentuating their recent downward trend, according to a new report by the Direct Marketing Association's Email Marketing Council.

Acquisition slid by seven percentage points to 68% while retention levels dropped by the same amount to 80%.

The report identified an email service provider's reputation as the most important factor influencing deliverability of campaigns.

The findings led the DMA to call for the direct marketing industry to place greater importance on factors influencing the delivery of emails.

According to the DMA's latest figures, email delivery rates for acquisition and retention have dropped for the last three quarters in a row. The delivery rate for acquisition in quarter four of 2006 was 92%, while the figure for retention stood at 94%.

The DMA's Email Marketing Council is advising clients to make use of email service providers' spam filters, ensure recipient permission has been obtained, maintain list hygiene and develop good ISP relations.

In addition to email service provider reputation, the report highlighted email content and authentication as the other decisive factors in ensuring delivery rates are kept high.

Despite the continuing fall of acquisition and retention levels, email service providers send an average 50m monthly emails, a figure expected to rise by 65% in the next year.

Skip Fidura, deputy chair of the DMA Email Marketing Council, said: "The first step in any marketing campaign is getting the message to the consumer. Regardless of how good the copy and creative are and how compelling the offer is, a campaign will fail if your target audience never sees the message.

"It's therefore vital that email marketers place more importance on ensuring that a message reaches the inbox."

The full report, 'Email Deliverability: How We Got Here and What Marketer's Should Do About It', is available through the DMA.

RBS insurance parts ways with two senior managers

2007-12-07T11:42:00.001Z

RBS insurance parts ways with two senior managers:

RBS insurance parts ways with two senior managers

by Richard Kilner

Story link: RBS insurance parts ways with two senior managers

RBS has undergone serious restructuring to tie together its various brands, resulting in two senior managers parting ways with the firm.

Last week both the managing director of motor, Chris Moat, and the chief risk officer, Robin Webster resigned.

Chris Sullivan, chief executive, let staff know about the situation on Thursday.

Moat’s position remains vacant, but Webster’s has been taken on by Mark Hesketh who also has responsibility for finance.

Despite the circumstances an RBS spokesman has stated that the firm wishes both departing men every success with the future.

The resignations come amid the second phase of restructuring at the firm, a phase which sees Andy Cornish become the new managing director of both commercial and brokers, areas previously led by two different managing directors.

The change comes as the firm believes pooling commercial expertise will prove beneficial, regardless of distribution channel.

It is now several months since Sullivan declared the plans for more closely integrating the firm’s various brands, such as Direct Line, NIG and Churchill.

He has been vocal about the necessity of promoting closer collaboration between the brands, some of which are in competition with one another. An early move in his tenure as chief executive was to replace the brand bosses with product line and distribution managers.

Moat had his role as managing director of Direct Line changed to head of RBS motor.

The purpose of the restructuring was to try and corner the largest possible share of the market, and, to a lesser degree, prevent the brands from undercutting one another.

There has been some surprise at Moat’s departure. He has spent a long time with the firm and been described by one insider as ‘very good with organisation and people management’.

Post Online - Two out at RBSI as Cornish adds NIG to commercial remit

2007-12-07T11:42:00.000Z

Post Online - Two out at RBSI as Cornish adds NIG to commercial remit: "Two out at RBSI as Cornish adds NIG to commercial remit Tuesday 4th December 2007: 17:26 Royal Bank of Scotland Insurance has announced a restructure which has seen two more directors leave and Direct Line for Business and NIG united under one director. Former director of motor Chris Moat and chief risk officer Robin Webster have decided to leave the business as part of the restructure initiated by RBSI chief executive Chris Sullivan. As part of the latest restructure Andy Cornish now has responsibility for direct commercial..."

TREND-News.com / It's official today: World Duty Free is for sale

2007-12-07T11:41:00.000Z

TREND-News.com / It's official today: World Duty Free is for sale: "It's official today: World Duty Free is for sale"

By Doug Newhouse, 4 December 2007

World Duty Free Managing Director Mark Riches confirmed this afternoon that the world's second largest duty free and travel retail operator is up for sale, following completion of a strategic review by the company for BAA's owners, Airport Development and Investment Limited - the consortium led by 62% shareholder Spanish construction group Ferrovial which acquired BAA for £10bn ($20.6bn) in the summer of 2006.

As Riches stated, the news is not a complete surprise considering the intense speculation surrounding WDF and especially following comments from Ferrovial Financial Director Nicolas Villen in a first-half results conference call earlier this year where he acknowledged that WDF was 'not a strategic asset'.

In an exclusive conference call to TREND/The Business and The Moodie Report this afternoon he said that the world's worst secret was now out since the decision to sell World Duty Free has now been taken and this process will now start almost immediately. Riches said it was not an easy decision for Ferrovial because there were a number of factors that had to be taken into account, including the views of the CAA, but this process was now complete.

The full interview with Mark Riches will be posted on this website within the next hour. Meanwhile, see 'Executive analysis of pending World Duty Free sale' below and 'Comment' for detailed numbers and analysis].

EXECUTIVE ANALYSIS OF PENDING WORLD DUTY FREE SALE:

WHAT IS ON OFFER: World Duty Free operates 67 stores across BAA's seven UK airports, with 15,000sq m of retail space offering over 25,000 products. Its 2,000 employees support outlets located at the seven airports of Heathrow, Gatwick, Stansted, Glasgow, Edinburgh, Aberdeen and Southampton.

POTENTIALLY INTERESTED PARTIES: Private equity firms include Blackstone (the biggest of the PE companies listed here), along with Bridgepoint, 3i and Warburg Pincus. All have been linked to interest in World Duty Free, along with duty free operators Autogrill/Aldeasa/Alpha, Dufry, Lagardère/Aelia and Nuance. There are also dark horses out there who may emerge, including Heinemann, Crossbar, Lotte Duty Free, Duty Free Americas and others, although DFS Group is not thought to be interested in WDF directly.

WORLD DUTY FREE FINANCIALS: World Duty Free delivered net retail income contribution of £122m ($251.6m) to BAA/Ferrovial consortium in the nine months ended September 30 2007, a 9.2% increase on the £112m ($231m) generated over the corresponding period in 2006. During the same nine-month period to September 30 2007, WDF generated sales revenue increase of 7.6% to £306m ($631.3m) and an operating profit increase 11.6% to £21m ($43.3m).
This compared with sales revenue of £284m ($584.9m) for the first nine months of 2006 and an operating profit during this same period of £19m ($39.1m). By contrast, Ferrovial's 2006 annual report points to WDF revenues of E.575m ($847.4m) with EBITDA rising to E.39.7m ($58.2m). As a further guide to the size of the WDF business, in 2005/'06 its underlying revenues were up 3.2% to £385m ($794.2m) and underlying profit rose by 4% to £26m ($54m), alongside a contribution of £126m ($260m) in concession fees paid to BAA.

SHOP LOCATIONS: (Main departure lounge outlets) Heathrow terminals 1,2,3 and 4; London Gatwick North; London Gatwick South; London Stansted; Southampton; Glasgow; Edinburgh; and Aberdeen. (Arrivals shops) Heathrow Terminals 1,2,3 and 4; London Gatwick South; London Gatwick North; Edinburgh; and Glasgow.
(Important addition: From March 2008, World Duty Free will also be located in the all British Airways serviced Heathrow Terminal 5 where it will compete for passenger time and money with many other retail and food and beverage operations. Its retail 'competitors' in T5 will include: Accessorize; Chocolate Box; Coach; Dixons Tax Free; Dixons Tax Free Accessories; Glorious Britain; Harrods; Harrods Signature (souvenirs); HMV; Hughes & Hughes; Kurt Geiger; Links of London; M&S Simply Food; Mappin & Webb; Mont Blanc; Mulberry; Paul Smith Globe; PC World; Pen Shop; Prada; Reiss; Rolling Luggage; Smythson; Sunglass Hut; Ted Baker; Thomas Cook; Tiffany & Co; WHSmith (several locations).
WDF will operate about 3,250sq m of retail space in T5 when it opens from total retail space of around 22,000sq m allocated to the terminal.

SALES & MERCHANDISE MIX: WDF's beauty category accounts for more than 50% of all sales, followed by liquor, food, tax free, luxury goods and tobacco. The fact that WDF's sales in this category are equivalent to 20% of all prestige fragrance sales in the UK will not have been missed by potential buyers. As an indication of the size of this and WDF's other category sales, the retailer's 67 stores sell no less than 5m bottles of fragrance a year, 2m bottles of whisky and more than 0.6m bottles of wine.
WDF's overriding product strategy is to focus on five core merchandise categories: Beauty, Liquor, Tobacco, Confectionery and Fine Food and Selected Tax-Free goods. In addition to its main duty and tax free stores, WDF also operates a number of specialist shops such as World of Whiskies, Chocolates, Beauty Studio, Perfume Gallery, The Cigar House, Sunglasses and For Men.
It also operates what it calls 'share approach outlets' and these include: Jo Malone (Heathrow T3); Clinique Service Station (Gatwick North); Dior Voyage (Heathrow T4); MAC Studio (Heathrow T3 and London Stansted); Clarins Studio (Gatwick South); L'Oréal (Heathrow T4); and Molton Brown (Heathrow T4).

DEMOGRAPHICS: Taking the demographics of each airport and forecasting the potential penetration growth and spend from the varied passenger mixes at each will be a complex exercise for all bidders and will be key to any successful future operation.
Forecasting the impact on shops in the existing four terminals at Heathrow will be crucial considering that most of British Airways' passengers are moving to Heathrow Terminal 5 when it opens in March 2008. The impact will be big, considering that 25m passengers - and that is all of British Airway's passengers apart from Australasia, Spain and Italy - will be going through T5.
This will obviously reduce the amount of customers/passengers currently using Terminal 4, Terminal 3 and Terminal 1. Terminal 4 will be most affected. Stansted is just one other example where weighted forecasting will be necessary, considering that 90% of passengers are intra-EU, so most product sold to these customers does not carry duty free margins. This just underlines the fact that all bidders will have to make allowances for separating their rent structures for both EU and non-EU passengers, where both exist at a particular airport and one profile dominates the other.

NATURE OF THE SALE AND VALUATION: The nature of the sale looks likely to emerge as a partial payment upfront and percentage bids for each individual airport, with Heathrow obviously being the highest. Current market feeling and independent valuations presently lean towards a sale price of between £340m to £360m ($701.4m to $742.7m) but if an auction begins then the price could theoretically snowball as high as £450m to £500m ($928.3m to $1bn).
The Business understands that an effective RFP document containing information on the business is being released this week - and possibly even today - to companies that have expressed interest in buying the business. Needless to say, the usual confidential non-disclosure clause is expected to be prevalent in this document.
The fact that the aviation regulator the UK Civil Aviation Authority (CAA) has said that it is minded not to interfere with the WDF process is one thing [CAA statement made on November 20-Ed], but another is the fact is that post sale, any new owner of WDF could find itself working for more than one landlord if BAA is forced - or decides - to sell one or more of its airports in future. At the same time the CAA has made it known that it believes that the concession fee payable by any new owner of WDF should not be less than 30%.
BAA is understood to have given WDF a contract of up to around 12 years and the fact that The Business understands it will not be less than ten may help to explain part of the reason why BAA/Ferrovial & Co have taken so long to decide whether or not to sell. Apart from waiting to see whether the CAA would interfere/influence in the process - which it says it now won't - this longer term concession period obviously adds considerable value to any sale and will be reassuring for premium bidders and obviously for BAA, which wants to attract private equity bidders, as well as offers from duty and travel retail operators. WDF MD Mark Riches said this afternoon that he wasn't party to the RFP details but he wouldn't be surprised if the CAA recommendations hadn't influenced the RFP structure. But he added that to give further details would be inappropriate.

POINTERS FROM EXCLUSIVE INTERVIEW: In an exclusive interview with The Business/TREND six weeks ago WDF Managing Director Mark Riches said he was satisfied with the business performance over the past year, even factoring in the comparatively difficult period from August 10 in 2006 where heightened security measures severely disrupted the business.
Over the past year he reported that all product categories have performed well, with the exception of the cigarette sector which on trend continues to decline at around 7% to 8% a year - a long way off its once strong historical annual sales contribution of around £80m ($165m) a year.
More positively, Riches said that the liquor category has performed well and the Champagne sector within it in particular. Contrary to some comments elsewhere, Riches added that there is no slowdown in the important fragrance, skincare and colour sectors of the beauty offer, which he confirmed still accounts for more than 50% of WDF's total category sales mix. Another star performer - albeit from a much smaller base - is confectionery where he described the performance in the year to date as "quite stunnning" and approaching record sales levels this Christmas.

CURRENT SENIOR MANAGEMENT: Mark Riches, Managing Director, World Duty Free and BAA Global Retail; Jo O'Connor; Commercial Director; Fred Creighton, Retail Director; Sarah Jezard, Marketing Director World Duty Free and BAA Retail; Dan Curran, Head of Supply Chain World Duty Free and BAA Retail; Debbie Ansell; Head of Category, Beauty & Luxury Goods; Fraser Dunlop, Head of Category, Liquor & Tobacco; Rebecca Slater, Finance and IT Director; Julie Elder, Retail HR Director, BAA; and Sarah Branquinho, Business Relationships Director, BAA and World Duty Free.

COMMENT: While the sale of the company might not be regarded as the ideal tenth anniversary present by some within WDF, it does at least bring to an end a very unhelpful period of limbo for WDF's employees. WDF Managing Director Mark Riches understandably acknowledged in an interview with The Business six weeks ago that they have obviously been unsettled by the barrage of 'will they, won't they' sell stories that have appeared in the media sporadically over the last six months in particular.

But while speculation now shifts to who might emerge as the final owner of WDF, there will also be the inevitable questions surrounding the potential upsides and downsides for certain organisations, depending who the final buyer turns out to be. For example, there can be no doubt that based on statements by the company Autogrill could well be a leading contender as an acquirer. Now should this company be successful in any bid, then there may be competition issues concerning its separate ownership of the Alpha Airports Group which also operates many shops at UK airports.

The question then would be whether this would put AAG's retail arm into play? If this happened, then there might be several organisations who would be interested.

Then there are questions surrounding the private equity organisations that have been linked with WDF, including Blackstone, Bridgepoint, 3i and Warburg Pincus. Whether they are representing themselves (unlikely) or some of the operators that have also been linked with an acquiring interest in World Duty Free (more likely) is another matter. That there can be too many companies with the expertise, infrastructure, or deep pockets required to operate World Duty Free from a management perspective seems unlikely. Therefore the identities of those represented by these private equity organisations will only fuel yet more speculation as the sale process gathers momentum.

Then there is the big question of management style at the acquirer and whether they will continue with the spirit of partnership that WDF and BAA has pioneered quite successfully with its suppliers over the last five years in particular. Any offer for WDF which is too highly leveraged by debt will certainly not be in the best interests of preserving this legacy.

Then finally there is the relationship between the new acquirer and the airport managements at the various airports themselves. For the last decade there has been a clear team effort between WDF and its seven airport partners which has been greatly aided by the fact that both sides are all part of the same company. That will no longer be the case in future and new relationships will have to be forged quickly if any new acquirer is to maximise revenues at the same time that BAA will be reconfiguring the traffic flows at all four of its existing Heathrow Airport terminals next March, when most of its British Airways' passengers transfer to Heathrow Terminal 5.

BIZOnline - Insurance job for Norwich agency

2007-12-06T15:17:00.000Z

BIZOnline - Insurance job for Norwich agency: Insurance job for Norwich agency
06 December 2007

ADAM AIKEN, SENIOR BUSINESS WRITER
One of the country's biggest insurers has hired a Norwich agency to run a key plank of its online marketing.

The insurance division of Royal Bank of Scotland has taken on OMG Network to run most of its affiliate marketing programme.

It follows a three-month process that involved all OMG's major competitors making pitches.

The contract includes Direct Line's and Churchill's full range of general insurance and life insurance products as well as car and home products for Privilege and Natwest, and Devitt motorcycle insurance.

Affiliate marketing is a way of selling products or services over the internet that allows advertisers to promote their wares through specialist websites.

OMG, which employs about 60 people, manages the network of affiliate websites on behalf of advertisers, looking after which adverts are used where and managing relations between the affiliates and advertisers.

The principle of affiliate marketing is moving from being a niche practice to becoming a mainstream idea, and it is the fastest growing form of online advertising.

"As a result of the RBS affiliate network review, we are very pleased to be working with OMG exclusively on the RBS insurance brands," said David Catterall, RBS Insurance's head of e-business.

"[OMG has] shown exceptional account management and service that has added significant value to our programmes.

"We look forward to continued growth as a result of this, for both us and our affiliates."

OMG managing director Oli Matthews said: "We are absolutely delighted to win the RBS Insurance account on an exclusive basis.

"It has been an incredibly rigorous review and pitch process so it is especially pleasing to go under the microscope in such a way and come out on top.

"As well as being part of RBS, these are all major brands in their own right, and I'm in no doubt that our expertise in handling campaigns for big brands has contributed to our success."

OMG believes that the RBS deal - which is the biggest affiliate deal of the year - will cement its place as a market leader in the financial sector.

It also aims to move into sectors such as retail and travel and take on the incumbents that currently dominate those sectors. Other OMG clients include Norwich Union, Virgin, Marks & Spencer, RAC, CD Wow and Cancer Research UK.

Profits leap boosts RBS - Yorkshire Evening Post

2007-12-06T15:15:00.000Z

Profits leap boosts RBS - Yorkshire Evening Post:

Profits leap boosts RBS

NATWEST parent Royal Bank of Scotland today revealed write-downs of £1.5bn from the US sub-prime mortgage crisis, but said profits were set to beat expectations.

The Edinburgh-based group, which is the UK's second biggest bank, employs hundreds of staff in Leeds through brands such as Direct Line and Privilege insurance.

The group's write-downs were far better than feared, with analysts reportedly expecting RBS alone to take a hit of up £2bn, excluding potential losses at its recently acquired ABN Amro business.

RBS has been under pressure to reveal the extent of its liabilities to the credit crunch and default-hit US high-risk home loan market.

The group's shares have suffered recently amid fears of substantial losses across the sector.

Today it said it hoped full-year operating profits would come in "well ahead" of market forecasts, despite suffering write-downs of £1.2bn and a further £300m at ABN.

RBS was able to offset £250m of losses amid the credit turmoil by using its own cash reserves instead of turning to more expensive wholesale credit markets

It also revealed today that second-half deposits had soared amid Northern Rock's high-profile problems as savers quit the troubled bank.

Challenge

Sir Fred Goodwin, group chief executive, said: "Rarely have the diversity and quality of the group's business platform been more important in enabling us to deliver consistently strong performance.

"Although some of our businesses have been affected by the challenging market conditions, the group's underlying earnings trajectory has remained comparatively unaffected."

He said the integration of ABN AMRO was "off to a promising start", adding that the company now anticipated better financial returns than envisaged.

He added: "More importantly, the increased exposure to many high growth economies that ABN AMRO brings us seems more attractive and relevant than ever."

Coke rolls out Sprite avatar on Facebook - Brand Republic News - Brand Republic

2007-12-05T13:08:00.000Z

Coke rolls out Sprite avatar on Facebook - Brand Republic News - Brand Republic:

Coke rolls out Sprite avatar on Facebook

by Gareth Jones Marketing 04-Dec-07, 08:45

LONDON - Coca-Cola has partnered with Facebook to roll out Sprite Sips, a customisable branded character that consumers can use to interact with their friends online.

The FMCG company has launched a sponsored Facebook group to promote the Sprite brand-building initiative, which allows internet users to create a personalised Sprite Sips avatar.

Once they have joined the Sprite Sips group, Facebook users are encouraged to choose from a selection of hairstyles, faces and arms to customise their character.

Members can then use their animated Sprite Sip to contact their Facebook friends via the social network's Poke, Pop and Flirt applications. Users are required to interact with their Sprite Sip on a regular basis to keep it 'happy' and avoid it 'turning against them'.

The Sprite Sips Facebook group gives users access to a range of branded content, including photos, video clips and music, as well as discussion boards and forums.

Members can also sign up to Sprite's recently launched wireless social network The Yard, which is aimed at 13- to 25-year-olds. The initiative is being rolled out in inter-national territories with the support of localised on-pack promotions.

Market leader Sprite is losing share of the lemon-and-lime carbonates sector following a cut in adspend. Its share fell by 5.9% to 58.5% for the year to 8 September, according to Nielsen.

Separately, Coca-Cola is seeking a mobile marketing agency as it plans to increase its SMS on-pack promotions in Europe, the US, South America and Asia. It is co-ordinating the search from its Atlanta headquarters.

Financial brands rein in spend over credit fears - Brand Republic News - Brand Republic

2007-12-04T14:10:00.000Z

Financial brands rein in spend over credit fears - Brand Republic News - Brand Republic: "Financial brands rein in spend over credit fears by Bill Britt Marketing 04-Dec-07, 08:45 LONDON - The true impact of the credit squeeze has manifested itself in a dramatic decline in financial marketing spend. Finance firms' spend on traditional marketing relating to lending, across mortgages, credit cards and personal loans, has plunged since the squeeze began. Total adspend by banks, building societies and credit-card companies on advertising and direct marketing, excluding search and email, fell by £15m or 28% to £38m in September, following a 27% drop in August, according to exclusive data from Thomson Intermedia. There has been a particularly notable fall in investment in direct mail and print for credit card products. 'There may be a shift to cost-effective forms of digital marketing,' said Paul Ryan, head of insight at Thomson Intermedia. Spending on credit-card promotions in traditional media fell by 23%-53% every month from January to September. Credit card companies spent £45.9m less on direct mail over the period year on year, a 49% drop. Marketing spend on mortgages rose until September, when it fell 19%. Mortgage approvals fell from 100,000 in September to 88,000 in October, the lowest level since February 2005, accordi"

United Kingdom, Intellectual Property, High Court Upholds Direct Line’s Successful Opposition To Mouse On Wheels Mark - Stephenson Harwood - 04/12/200

2007-12-04T14:07:00.000Z

United Kingdom, Intellectual Property, High Court Upholds Direct Line’s Successful Opposition To Mouse On Wheels Mark - Stephenson Harwood - 04/12/2007 13:27:53, Trademark: "High Court Upholds Direct Line’s Successful Opposition To Mouse On Wheels Mark

The High Court upheld on appeal Direct Line’s successful opposition to a trade mark application for a computer mouse on wheels in relation to insurance services on the ground that the Hearing Officer committed no error of principle in holding Esure’s mark, as applied for, would be likely to take unfair advantage of or be detrimental to the repute of Direct Line’s well-known registrations for a telephone on wheels."

UK internet users receive 20bn junk emails a day - Brand Republic News - Brand Republic

2007-12-03T12:52:00.000Z

UK internet users receive 20bn junk emails a day - Brand Republic News - Brand Republic:

UK internet users receive 20bn junk emails a day

by Alex Donohue Brand Republic 03-Dec-07, 12:20

LONDON - UK internet users are being bombarded with 20bn unsolicited emails a day, making the country the third biggest target for spam in the world, according to a new report.

Conducted by US-based internet security firm IronPort, the report found the average UK internet user receives 300 spam emails a day, while 98% of all email traffic worldwide is now spam.

According to IronPort, the UK is now the third biggest target for spam behind the US and China, and has doubled the amount of unwanted emails it has received in the last year.

IronPort warns that users of social networking sites Facebook and MySpace are becoming a bigger target for spammers because of the amount of personal data available on the sites.

The company, which specialises in internet security products, said around 120bn spam emails are sent worldwide daily, while the UK has increasingly become a target for spammers because it is viewed as having a more affluent internet user population.

The report said more sophisticated malicious software or malware techniques, whereby spammers use software to infiltrate or damage a PC without the owner's knowledge, has meant the likelihood of computer users becoming a victim to viruses and malicious code had not diminished.

Meanwhile, IronPort estimated the global cost for companies stopping spam email to date could be as much as £10bn.

Paul Doran, spokesman for IronPort, said: "The UK represents not just a very large market, but also a very affluent market. This makes us a sweet spot for cyber criminals."

Marketing Trends: Eccentric seeks humanity - Marketing Week

2007-11-30T12:50:00.000Z

Marketing Trends: Eccentric seeks humanity - Marketing Week:

Eccentric seeks humanity

29-Nov-07

Esure, the insurance brand famed for its quirky ads featuring Michael Winner, has shifted the emphasis of its marketing by signing up as the sponsor of ITV weather (MW last week).

It is a move designed to "humanise" the brand and distance itself from the cut-throat world of direct response advertising, in a sector where price comparison sites have changed the rules of the game.

The brainchild of Direct Line founder Peter Wood, esure was set up in 2001 and helped usher in a new era in the marketing of insurance companies. It 2005, Wood also launched Sheila's Wheels, another insurance brand noted for its unconventional ads.

The eccentric ads for both brands, created in house, polarised the marketing industry and set a trend among insurers.

However, the rise of price comparison sites over the past three years has led to a change in the way customers approach insurance products. No longer do they contact a single insurer, rather they compare several products on the Web and then choose.

This has made brand awareness key and is the main reason esure has seemingly abandoned its direct response campaign style and agreed to pay £10m to become the sponsor of the ITV weather bulletin - the UK's third biggest broadcast sponsorship deal.

Adrian Webb, head of corporate communications at esure, confirms that the brand's focus is shifting as customer behaviour changes. "We will possibly be using the idents to bring more humanity to the brand," he says.

Wood revolutionised the insurance market in the 1980s when he came up with the idea for Direct Line, the first telephone insurance brand, and its red telephone motif. "He effectively created the UK's first call centre and shook up a market in which there was no churn," adds Webb.

Wood hoped to repeat the feat, this time using the internet when he launched esure, and the brand grew quickly, attracting 1 million customers in just five years.

However, industry observers believe that while the brand has undoubtedly made a name for itself, it has confused the public.

Lucian Camp, chairman of agency CCHM:Ping, says: "There is a tug of war going on at the brand. On the one hand, there are professional marketers and agencies and, on the other, there is Peter, who has a more homespun and anarchic approach.

"Esure has become famous through its antics, but in terms of targeting a market and giving people reasons to prefer esure, I think it has wasted a lot of time and money on exhibitionism."

Camp believes that the decision to move into sponsorship shows that the balance of power has shifted at esure's headquarters. "I would have thought that this sponsorship represents a good tug on the rope by the marketers at esure."

Esure's launch campaign was created by Delaney Lund Knox Warren and used a blue giant character. However, Wood soon brought the account in house and a campaign, written and directed by its star, Michael Winner, was launched.

In 2005, esure decided to refocus, and in the same year launched spin-off brand Sheila's Wheels. Wood turned to advertising veteran Chris Wilkins, the brains behind the Smash Martians, and his art director partner Sian Vickers. Together they developed the Mister Mouse character and the Sheila's Wheels campaign.

Webb admits that when the Sheila's Wheels ads were first developed "a lot of people were extremely nervous".

But he adds: "Peter [Wood] said he did not care what the research said and that he wanted to go for it - and it has become the most extraordinary phenomenon."

However, not all the ads have won approval. One commentator describes the Mister Mouse character as "charmless and unpleasant", another says it can be filed alongside Shake'n'Vac and Ferrero Rocher ads in the "so bad it's good" category.

But the campaigns have spawned a host of imitators in the insurance sector. Camp says: "You could see where it was coming from and you could see them trying to own the online market, but it has been playing the direct response game - it is advertising with the sole aim of making the phone ring. They don't care if people like it or people engage with the brand, all they care about is whether the phone rings."

He believes such an approach grates with many in the industry: "A lot of us worry about things like building long-term brand equity and reputation, but it seems that they don't care. I think that although it knows its target market, the public doesn't. It hasn't displayed any consistency."

Another industry expert says: "Peter is at least partly responsible for the welter of insurance 'character ads' out there. All these characters are battling each other, but faced with the choice between esure and, say, the AA or More Than, who would you choose? Once you have developed a presence you have to go somewhere with it."

Esure's Webb says the challenge now for insurance companies is to develop a presence like "wallpaper".

"People are only in the market for insurance one day of the year," he explains. "The challenge is to maintain brand awareness 365 days a year, because every day you have a different market. Sponsorship gives us an ideal vehicle of being on mainstream TV every day of the year. By taking on one of the biggest sponsorship properties we can leapfrog the noxious influence of competing insurance ads."

Facts and figures

Esure

Direct Line founder Peter Wood launched esure in July 2001. It now has 1,500 employees
Its first marketing campaign, using a blue giant, was created by Delaney Lund Knox Warren. The brand then took its advertising in house and the Michael Winner ads, featuring the 'calm down dear' catchphrase, were launched in 2002
Winner was replaced by a character called Mister Mouse in 2005 but returned in November 2006
In 2005, esure launched the Sheila's Wheels brand aimed at women drivers

FTAdviser- Home - Zurich appoint Mike Quinton as managing director of retail and partnerships

2007-11-29T22:59:00.000Z

FTAdviser- Home - Zurich appoint Mike Quinton as managing director of retail and partnerships: "Zurich has appointed Mike Quinton as managing director of retail and partnerships, effective 1 January, 2008. He will be responsible for driving profitable growth in both retail and partnerships, by broadening the distribution of Zurich’s products and underwriting capacity, and working closely with marketing, operations and claims, to ensure consistent implementation across all elements of the proposition in the UK. He will report to Guy Munnoch, CEO, UK general insurance and Theo Bouts, CEO, direct & partnership Europe and will be located in the UK. He joins from Royal Bank of Scotland, where he held a number of senior roles, including corporate partnerships director, managing director, Churchill Insurance and, most latterly, managing director, RBS Household and Life. Munnoch, said: 'Mike brings a wealth of expertise and experience to this role which will be invaluable in attracting new customer segments to our retail and partnerships business. We are delighted to have him on board.' Mike takes over from Mark Searles, Zurich's UK chief marketing officer, who has been overseeing the retail business since the beginning of the year. Searles will now focus on his marketing portfolio, supporting the UK and Europe. Adrian Saunders, who has acted as interim managing director for partnerships during 2007"

Tesco Home Insurance offers free Christmas cover

2007-11-29T22:58:00.001Z

Tesco Home Insurance offers free Christmas cover: "Tesco Home Insurance offers free Christmas cover by Gill Montia Story link: Tesco Home Insurance offers free Christmas cover Tesco Home Insurance is offering customers extra cover over the Christmas period at no charge. The retailer is providing an additional 10% of contents cover from December 1st 2007 to January 15th 2008, and this can be combined with any other discounts relating to a specific policy. Allan Burns, head of Tesco Home Insurance, is concerned that many people may not be aware that the value of gifts stored in their homes means they are exceeding the limits of their regular contents insurance cover. Bradford & Bingley has also issued special advice in the run up to Christmas, and is warning consumers to protect their belongings, particularly if they are travelling abroad for their shopping. Whereas Abbey Home Insurance points out that around 2.9 million of the population begin shopping for Christmas presents in January, so that insurance policies with limited additional Christmas cover are ineffective. According to Apacs, the payments services body, UK consumers could spend a total of £53 billion during the Christmas season."

Zurich recruit Quinton to lead Retail and Partnerships

2007-11-29T22:58:00.000Z

Zurich recruit Quinton to lead Retail and Partnerships: "Zurich recruit Quinton to lead Retail and Partnerships by Richard Kilner Story link: Zurich recruit Quinton to lead Retail and Partnerships Mike Quinton has been named by Zurich as their new managing director of Retail and Partnerships. He will take up the role from 1 January 2008. He will succeed Mark Searles, the firm’s chief marketing officer, who has supervised the retail business since 2007’s start. Searles has been credited with massive improvement in the retail business and will now focus upon his enlarged marketing role across the UK and Europe. Quinton leaves behind the Royal Bank of Scotland where he was employed in a range of senior positions, such as corporate partnerships director, RBS Household and Life and managing director of Churchill Insurance and managing director. Quinton’s responsibility will be to expand the business through widening the distribution both of Zurich’s products and its underwriting capacity. He will be required to collaborate closely with the marketing division to ensure a consistent approach by the business. In his new position Quinton be responsible to two men: Guy Munnoch and Theo Bouts. Munnoch is the firm’s chief executive officer for UK general insurance and Bouts holds the position of chief executive officer for direct & partnership Europe."

Coca-Cola's juicy new year launches - Talking Retail

2007-11-27T15:22:00.000Z

Coca-Cola's juicy new year launches - Talking Retail: "Coca-Cola's juicy new year launches Coca-Cola Enterprises (CCE) will continue to push growth in the first quarter of 2008 with innovation in the flavoured carbonates and sports and energy categories, revealed Kieran Hemsworth, operations marketing director at CCE. Despite the unpredictable weather, Hemsworth says growth in the soft drinks sector year-to-date (ytd) is £100m, of which £31m has been growth from CCE. Hemsworth highlighted juice drinks as one to watch, with £22m value growth ytd, and said there is still further opportunity in this category. The CCE portfolio caters to the adult juice drinkers with Oasis and to children with Capri-Sun, but there is a “gap in the market” for teens, said Martin Sampson, CCE’s breakthrough development controller. Sampson said the launch of Fanta Still next month (January) will fill this gap, and also drive growth into flavoured carbonates, which has been suffering as consumers switch to squash and water. Fanta Still contains real fruit juice, no artificial colours or flavours and will be available in Orange Citrus and Orange Tropical, in 375ml PET bottles, 6-pack 375ml and 1.5-litre bottles. A £3.75m marketing campaign will include TV and press advertising, digital activity and sampling and Sampson estimates the brand will be worth £20m in its first year."

Pepsi to extend range with 'natural' Raw variant - Brand Republic News - Brand Republic

2007-11-20T13:48:00.000Z

Pepsi to extend range with 'natural' Raw variant - Brand Republic News - Brand Republic: "Pepsi to extend range with 'natural' Raw variant by Jemima Bokaie Marketing 20-Nov-07, 08:45 LONDON - Pepsi UK is adding the first variant to its iconic Pepsi range for more than 10 years in an attempt to steal share of the cola market from leader Coca-Cola. Pepsi Raw will be the third variant in the range since the launch of Pepsi Max in the UK in 1993. The new brand, which is made with cane sugar rather than high-fructose corn syrup, claims to be a 'natural' cola. The brand is aimed at healthier cola drinkers, despite industry insiders' claims that being made with cane sugar, it will be less healthy than the sugar-free Pepsi Max. Pepsi is launching Raw into UK pubs and bars, including the All Bar One chain, early next year in a bid to attract a cult following for the brand in the on-trade. It will be introduced"

Aviva senior marketers lose jobs following review - Brand Republic News - Brand Republic

2007-11-20T13:43:00.000Z

Aviva senior marketers lose jobs following review - Brand Republic News - Brand Republic: "Aviva senior marketers lose jobs following review by Ed Kemp Marketing 20-Nov-07, 08:45 LONDON - Norwich Union has made a clean sweep of its senior marketing team as part of an internal review of its marketing structure. The insurance giant has decided to axe several board-level roles, including that of RAC marketing director Alastair Pegg. A spokeswoman for its parent company, Aviva, said Pegg, who had been in the role since 2005, would be seeking other opportunities within the group. She confirmed that Pat Mitch-ison, director of marketing for Norwich Union Insurance, and Chris Reid, director of propositions for Norwich Union and the RAC, had both left the company. Aviva has completed its board-level review and will look at its lower-level marketing structures over the next few weeks. Earlier this month, Norwich Union anno"

PruHealth partners with eBay - Brand Republic News - Brand Republic

2007-11-19T14:48:00.000Z

PruHealth partners with eBay - Brand Republic News - Brand Republic: "PruHealth partners with eBay by Hayley Pinkerfield Revolution UK 19-Nov-07, 11:40 LONDON - PruHealth, the private medical insurer, has partnered with eBay to reward customers for buying sports items from the online auction site. PruHealth customers who are already interested in buying sporty items will now be rewarded for doing so from eBay's ‘sporting goods' category. Meanwhile, eBay will promote PruHealth's private medical insurance (PMI) to its sport customers. ADVERTISEMENT <a href='http://display.hbpl.co.uk/accipiter/adclick/CID=00001978e8507b6600000000/AAMSZ=300x250/AD_POS=501/AD_POSITION=501/AD_LOCATION=C/SITE=BRANDREPUBLIC/AREA=BR.BULLETINS.DIGITAL.ARTICLE/ACC_RANDOM=5807208106/PAGEID=4249145621'> <img src='http://hbpl-images.adbureau.net/hbpl/BrandRepublic/Ogilvy/USBlair_brandrepublic_mpu.gif' alt='Alternate Ad Image Text Goes Here!' width='300' height='250' border='0'> </a> 'Partnering with such a well-known and visited web site means we have access to a wide customer base,' said Shaun Matisonn, chief executive of PruHealth. Pat Connolly, head of strategic partnerships, eBay, added: '...this partnership will encourage customers who are already focusing on health and sports to consider their health insurance and how they could be rewarded further for purchasing sporting goods.'"

E-Mail and Text Us, Consumers Say - eMarketer

2007-11-19T10:15:00.000Z

E-Mail and Text Us, Consumers Say - eMarketer:

E-Mail and Text Us, Consumers Say

NOVEMBER 16, 2007

Just send something.

When US consumers say they are interested in a company, more than one-half of them are open to getting an interactive follow-up such as a personalized or generic e-mail, or text message, according to Vertis' "2007 Customer Focus Tech Savvy" study.

Vertis found that 40% of men 65 and older said that an interactive follow-up was acceptable, compared with 23% of female consumers that age.

"Adding an Internet component to direct mail campaigns targeting the older population may greatly increase the overall effectiveness of marketers’ spending," said Jim Litwin, vice president of market insights for Vertis, in a statement.

For many US retailers, the problem is that even when they have an e-mail sign-up program, many do not follow up with consumers. Two-thirds of personal care companies surveyed sent neither a welcoming e-mail nor a sales offer, according to the October 2006 E-Mail Data Source's “2006 Retail White Paper” report.

Even in the hardware industry, where only 16.67% of respondents sent no e-mail, that is 16.67% too much.

Such behavior might be seen as similar to unsolicited commercial e-mails, the “better” quality of spam. In both cases, the consumer gets confused and frustrated, and the whole e-mail marketing environment is degraded.

Even those respondents who sent only a welcome message in the first month—such as about 18% of apparel retailers and 14% of department stores—might be considered tardy if they fail to send the e-mail within a few days.

"Just as the CAN-SPAM Act makes it illegal for marketers to take longer than 10 business days to unsubscribe someone from their e-mail program, perhaps it is unwise (if not illegal) to take longer than 10 days to respond to a customer who has subscribed on a company site," said David Hallerman, senior analyst at eMarketer.

Norwich Union completes DM review with WDMP hiring - Brand Republic News - Brand Republic

2007-11-19T10:14:00.001Z

Norwich Union completes DM review with WDMP hiring - Brand Republic News - Brand Republic: "Norwich Union completes DM review with WDMP hiring by Ed Kemp Marketing 16-Nov-07, 13:00 LONDON - Norwich Union has ended a review of its direct marketing agency arrangements with the appointment of WDMP. The agency will be responsible for creating below-the-line work for NU's insurance brands, which include motoring, life and home. Last month, Norwich Union hired Craik Jones Watson Mitchell Voelkel to its roster and decided to retain direct agency Kitcatt Nohr Alexander Shaw for its NU Healthcare business. ADVERTISEMENT The Aviva-owned insurance giant called the direct marketing review amid major cost saving measures. Last month, Aviva confirmed that it will cut back its marketing department for its NU and RAC brands by 140 staff by the end of the year and reduce its marketing budget from £180m to around £100m (Marketing 3 October). It is likely that both agencies will be briefed to handle an increasing amount of online marketing for NU. In a statement earlier this year, NU said: 'With more business being done over the internet, this announcement is about making the best use of our marketing resources and focusing on those areas in which we are seeing most growth. Although we have reduced our marketing spend, we will continue to invest significantly in the"

Norwich Union adds Craik Jones to DM roster - Brand Republic News - Brand Republic

2007-11-19T10:14:00.000Z

Norwich Union adds Craik Jones to DM roster - Brand Republic News - Brand Republic: "Norwich Union adds Craik Jones to DM roster by Kate Nettleton Campaign 15-Nov-07, 11:40 LONDON - Craik Jones Watson Mitchell Voelkel has won a place on the direct marketing roster for Norwich Union. Craik Jones' appointment follows a competitive pitch against undisclosed agencies. The pitch was handled by the insurance company's in-house marketing team. Norwich Union, which is owned by Aviva, plans to award a further place to one other agency, and sources suggest it is in talks with Hicklin Slade & Partners and Archibald Ingall Stretton. ADVERTISEMENT Kitcatt Nohr Alexander Shaw will also retain a place on the roster, handling Norwich Union's Healthcare insurance brand. Aviva started the pitch for its Norwich Union Life business in June. Then, in August, the pitch was expanded into a full-scale review of its DM arrangements across its entire range of brands, including Motoring Life and Home and Healthcare, as part of wide-ranging cost-cutting measures. This is the second reduction to Norwich Union's DM roster in the past 18 months. In May last year, the company scaled the roster down to TDA, Tri-Direct, Fox Murphy and Kitcatt Nohr."

Norwich Union adds Craik Jones to DM roster - Brand Republic News - Brand Republic

2007-11-15T12:43:00.000Z

IAB to endorse DMA email best practice - Brand Republic News - Brand Republic

2007-11-15T09:02:00.000Z

IAB to endorse DMA email best practice - Brand Republic News - Brand Republic: "IAB to endorse DMA email best practice by Alex Donohue Brand Republic 14-Nov-07, 14:40 LONDON - The Internet Advertising Bureau is to endorse the Direct Marketing Association's revised best practice guidelines for email marketing, which aim to raise standards of online marketing across the industry. The move follows the DMA's overhaul of its best practice guidelines in June this year, which it said would provide the industry with the most comprehensive advice available on how to improve delivery and maximise return on investment for email marketing campaigns. The IAB has now endorsed the guidelines, which the DMA said marked an important step toward establishing 'a consistent approach to email marketing standards'. Among the issues covered by the DMA's updated guidelines include collecting and managing data, creating and sending effective campaigns, and practical advice on how to ensure emails from businesses target the right inboxes and are read by recipients. Rupert Harrison, chair of the DMA email marketing council, said: 'The DMA best practice guidelines provide a valuable and up-to-date industry benchmark, ensuring marketers can take advantage of this cost-effective, measurable medium to engage their customers and build their brands.' Dan Redfearn, membership manager at the IAB, sa"

Insurance Age - NU’s full small package business now on imarket.

2007-11-11T16:21:00.001Z

Insurance Age - NU’s full small package business now on imarket.: "NU’s full small package business now on imarket. The launch of residential property owners and pub & restaurant via the Acturis software house system takes Norwich Union’s (NU) integrated imarket products to five, along with tradesmen, shop, office and surgery. Transactions through imarket were boosted by the commercial insurer integrating its tradesmen, shop and office & surgery cover with the trading portal last year. NU is currently rolling out its latest product launches to SSP brokers (on a phased basis) and is set to follow up with further rollouts to Open GI and Insurecom. “Our product development on imarket is helping boost the growth in broker trading choice via the portal and reinforces its benefits as a valuable tool for saving administrative time and reducing processing costs,” said Simon Bloomfield, Norwich Union’s broker IT manager. “All of our small business products consist of a core packaged offering but have many additional optional covers providing the flexibility to tailor them to clients’ individual needs.” NU’s residential property owners product provides essential core covers for buildings (including subsidence), contents of communal areas, loss of rent and property owners liability. The insurer's pub and restaurant products,"

Insurance Age - NIG Network offers brokers a bite of the Apple

2007-11-11T16:21:00.000Z

Insurance Age - NIG Network offers brokers a bite of the Apple: "NIG Network offers brokers a bite of the Apple Insurer NIG is giving brokers the chance to win over £2,000 worth of the latest must-have Apple products when they obtain a commercial package quote from the NIG Network (www.nignetwork.com). The latest draw was on the first day of November and the final draw will be on the 1 December when a lucky NIG Network Commercial Quote user will win the ultimate Apple experience: an iMac, Mac Book, iPod and Apple TV. The final mid-month prize draw on the 19 November will see four other brokers win an iPod classic or Apple TV (dependent on their choice). NIG’s Director of eCommerce Distribution Vivek Banga said, “NIG Network has proved to be very successful. This prize draw is designed to thank our supporting brokers for using it. We have already had ten lucky winners who have been delighted with the prizes, and we look forward to announcing the next ones very soon.” Brokers are automatically entered into the fortnightly free prize draws when they obtain a commercial package quote from www.nignetwork.com NIG Network comprises a range of package products including Business from home, hotel, commercial property owners, licensed trade, office, residential property owners, retailer and tradesmen. Brokers need a login id and password"

Coke Zero to drop 'bloke coke' advertising theme - Brand Republic News - Brand Republic

2007-11-08T16:48:00.000Z

Coke Zero to drop 'bloke coke' advertising theme - Brand Republic News - Brand Republic: "Coke Zero to drop 'bloke coke' advertising theme by Jemima Bokaie Marketing 06-Nov-07, 08:45 LONDON - Coca-Cola is rethinking its strategy for Coca-Cola Zero 16 months after its launch, shifting the focus from its target audience of young men to the product's benefits. A global TV campaign, created by Wieden + Kennedy Amsterdam, will launch in January featuring the fresh positioning and a strapline to replace 'Great taste, zero sugar'. The change is a dramatic shift for the brand, which launched as a male-oriented brand while Diet Coke targets women. Girls Aloud singer and England football WAG Cheryl Tweedy fronted launch ads for Coke Zero last year. The work was created by VCCP, which handles its UK ad account. This year, Coca-Cola placed football at the centre of its spring activity, with work through VCCP featuring Manchester United and England star Wayne Rooney. Separately, it is spending £9m on the launch of Fanta Still in February. It is also adding an orange flavour to its Powerade range and launching a juice variant of its Relentless energy drink. Comments Comment George Nimeh - 06/11/2007 Certainly is a shift ... In addition to VCCP's footy campaign, iris created an integrated campaign currently giving away 1 million football"

Insurance Age - The name of the game

2007-11-05T11:38:00.000Z

Insurance Age - The name of the game:

The name of the game

Charles Earle has had a career spanning more than 30 years, working for both insurers and brokers in the UK and abroad. With the first anniversary of Arista approaching, Michelle Worvell speaks to him about strategy, finding the right talent and how he feels independent brokers are the ideal partners to work with

When Charles Earle, the former managing director of NIG Commercial Lines, launched Arista in January 2007 alongside former NIG colleague Lyn Carslake, its stated aim was clear. The new underwriting agency would focus on broker-administered commercial business in the UK, and arrange agencies with a limited panel of independent brokers.

With Arista approaching its first-year anniversary, Mr Earle ponders whether the start-up's strategy has stayed on track. "We have not changed the strategy in any major way," he says. "We are still firmly focused on independent regional brokers, with a start in the South to get our feet under the table and prove the model.

"We have been successful at hiring new staff and ensuring the technology is up and running. If anything has changed, it has been the fact that we have brought out one product before the other because demand has changed slightly. In addition, coping with a soft market has meant that the business has not expanded as fast as we thought it would based on our initial plans."

Despite this, the company has a number of advantages, including a lack of legacy systems, its small, flexible size and the ability to start with a clean slate. This means that Arista has been able to both deploy modern systems and to hand pick its staff.

Mr Earle elaborates: "Day-to-day, we compete with the likes of Norwich Union, Axa and Zurich, as they have most of the small to medium-sized enterprise market share we are after. This is where we have an advantage, as they are old organisations with legacy systems - we don't have that. Therefore, we can be much more efficient in how we deliver both our offerings and service."

He also states that Arista's aim is to speed up the response time to its broker partners, and to get documentation out faster in order to save them money. According to Mr Earle, this means that some of its brokers are saving the equivalent of between 3% to 4% commission. He also highlights the fact that there is no point in brokers cutting great commission deals with insurers, if they then chew it up in the expense of dealing with the errors and misunderstandings between them.

People business

When Arista first formed, many column inches were taken up regarding the amount of ex-NIG staff that initially joined the firm. As this industry is a self-confessed 'people business', the choice of staff in any firm is critical, but how much of a difference has this made to Arista?

"Being able to pick people for the job in hand is a huge advantage as far as I am concerned," explains Mr Earle. "And I am not just talking about the ex-NIG staff. Yes, there were initially five or size of us from NIG, but I very deliberately wanted to recruit people from other companies because it gives us a better view of the world.

"When I was at NIG, I would have been the last person to claim that everything we did was absolutely right. So bringing people from Axa and Zurich, and from Allianz and Royal & SunAlliance, gives us a large amount of diversity. In addition, if you bring in someone of high quality, then they also provide a link to other people of the same standard within that company, and you gain credibility by taking them on."

Mr Earle modestly claims that he is still surprised at the quality of the employees that have wanted to join Arista, especially as they are often coming from large companies that have a safe operating environment compared to Arista, which is a new company with no track record. He concedes, however, that although its staff have a real opportunity to make a difference, if they are not very good at their job then they will also be noticed due to its compact size.

Currently, Arista has 54 staff across three regional offices:

- Redhill - covering the South-east;

- Southampton - covering the South and Central;

- Bristol - covering the South-west and south Wales.

Arista also has a head office in London, and is currently in the process of establishing bases in Manchester and Birmingham.

"We measure how many leads we get in from brokers every day, and which brokers they have come from. Due to this, we know how many people we are going to need to support the business, and we can establish the conversion rates that are needed to work," Mr Earle explains. "We plan to add employees to the existing offices, as they have their own growth plans and will need more people to support these."

The next step for Arista is to establish a Northern office after its initial concentration in the south of the county. Mr Earle and his senior team have been spending a great deal of time in the area recently, conducting market research and gauging broker interest in the Midlands and the North-west. Through this research, they have established that there is sufficient demand to justify establishing operations in the North.

"At this stage, I am not sure what order we will run them in. We have spoken to a number of potential senior staff, and we are at the shortlist stage for both offices. I would like to start the ball rolling by the end of the year, but it will depend on the notice periods of the staff we take on. However, we hope to get one office up and running before Christmas.

"Even if these senior staff are on three-months notice, we will be able to recruit underwriters before then. However, we are not going to hire any underwriters until we know who the business leader is, because they will want to know who they will be working for. It will likely be three or four people underwriting a month or two before the regional manger arrives."

Planning ahead

Succession planning can be a tricky problem for many firms, but Arista seems to have all its ducks in a row after Mr Earle incorporated this scenario into his original business plan. In fact, he says that he will be disappointed if the current top mangers in the business are not trying to kick him out of the door in five years' time.

He explains: "I said to my shareholders that I could see five or six years of energy, as I was 55 when we started. I expect to find my successor within the main team, which arrived early on, or within the people that have been recruited at that level since.

"I wanted strong people in from the start who would want to fill this role, and I guess that my task over the next few years is to get the business built and then focus carefully on how we make the succession steps. Then again, I might get to the end of the five years and say, 'I am actually enjoying this'."

So, in Mr Earle's opinion, how do brokers currently view Arista? He says that the 100-plus brokers that it currently has signed up have reacted well, particularly to its people. "It is the experience we provide when dealing with customers that is the brand, rather than the name. The brokers that we deal with like the service we offer, and the people that they are dealing with.

"We are even being approached by brokers outside our current operational patches. In fact, we are already dealing with several that have said they want to deal remotely with us on the understanding that we will have a regional office and local service in their area later down the line."

Mr Earle stresses that the company does not want to deal with every broker in the UK, and is not going to respond to every approach because some brokers just do not trade the way it wants to. Neither is he interested in dealing with national brokers, or large, aggressive consolidators.

This is mainly due to the fact that he feels that if, for example, it wanted to trade with the latter, it would be at the back of the queue and would have to pay more commission than it is prepared to. Mr Earle adds that this stance means that Arista is in a position to take a step back, and make rational business decisions.

So, is there such a thing as a perfect 'Arista broker'? "It's hard to define an independent regional broker nowadays, isn't it? But when you meet one, you know that they are embedded in their local community or affinity business that they deal with," he explains. "They have a good technical grasp of what they are doing, and a willingness to listen to technical arguments from the other side - when we say 'no', to understand why we said 'no' but to still maintain the relationship."

He adds: "I would say that a perfect broker is one that often mirrors our model - they are determined to stay independent, perform well technically, willing to communicate and happy to trade. And there are plenty of them out there, enough to satisfy our appetite in the market, and there are new ones setting up as well. Just as Arista is a consequence of insurer consolidation, then the same scenario will apply to the broking market."

Mr Earle believes that brokers will continue to be a strong section of the insurance community, although he would like there to be more, rather than less. He concedes that there will be occasions where brokers that Arista are trading with will be acquired, and it will lose those businesses because they will be absorbed into a model that it is not happy trading with. However, at the end of the day, he believes the market is strong, and is an environment that Arista can confidently trade in.

"We want to trade through our offices with a maximum of 250 brokers and, as far as I am concerned, there are plenty around for us to do just that," he says.

CHARLES EARLE - BIOGRAPHY

- In a career spanning more than 30 years, Charles Earle has held insurance and risk management roles with both insurance companies and brokers.

- His previous positions include that of managing director of commercial lines at NIG, managing director at Windsor and Windsor Insurance Brokers, marine insurance director at Citicorp Insurance Brokers, and various underwriting and risk management roles in Hong Kong and Singapore for New Zealand Insurance.

- In 2007, Charles launched Arista, using a combination of local access to experienced underwriters and modern technology to provide a commercial property, liability and motor insurance service to a select panel of independent regional brokers.

Vizeum scoops £32m Coke media account - Brand Republic News - Brand Republic

2007-11-02T11:46:00.000Z

Vizeum scoops £32m Coke media account - Brand Republic News - Brand Republic: "Vizeum scoops £32m Coke media account Ian Darby Campaign 01-Nov-07, 15:32 LONDON - Coke has handed Vizeum its £32m centralised media planning and buying account Coca-Cola has consolidated its £32 million UK media planning and buying business into Vizeum. The agency won the business after a pitch against Universal McCann, Starcom and Naked Communications."

Coca-Cola calls pitch for design agencies roster - Brand Republic News - Brand Republic

2007-10-31T15:33:00.000Z

Coca-Cola calls pitch for design agencies roster - Brand Republic News - Brand Republic: "Coca-Cola calls pitch for design agencies roster by Ed Kemp Marketing 30-Oct-07, 08:35 LONDON - Coca-Cola Europe is to create its first pan-European design roster and has begun talking to design agencies. It is believed that Coca-Cola will hire more than 10 agencies. Those chosen will be briefed to handle activity across design, digital design, brand identity, packaging and in-store marketing. The agencies have already been asked to pitch in a process being managed by Creative Brief. It is not known whether Coca-Cola plans to create separate rosters for each design discipline or a single roster. The brief will span the entire Coca-Cola drinks range, which includes Oasis, Capri- Sun and Minute Maid. Coca-Cola UK is also reviewing its media agency arrangements. The £40m review, which spans its whole portfolio, was called in July. Universal McCann, Vizeum, Starcom and Naked Communication have been invited to pitch. Mobile is another area under review, as the firm looks to increase its commitment to global SMS on-pack promotions. In the UK, it is promoting its Coke range through the launch of its first loyalty scheme. The 'Coke Zone', created by Carlson Marketing, offers consumers points that are redeemable against special offers and 'money-can't-buy' prizes. E"

E-Mail Open Rates Hinge on 'Subject' Line - eMarketer

2007-10-31T14:28:00.000Z

E-Mail Open Rates Hinge on 'Subject' Line - eMarketer:

E-Mail Open Rates Hinge on 'Subject' Line

OCTOBER 31, 2007

Turning off Caps Lock doesn't hurt either.

Personalized e-mails boost open rates, according to a MailerMailer study. The e-mail service provider found that personalized "subject" lines in particular increased the number of times recipients opened their mailings.

The "subject" line is so important that, even when marketers have recipients' permission, the wrong line can still mean trouble.

Need data for presentations? eMarketer subscribers can download charts instantly — over 50,000 choices.
Learn About an eMarketer Subscription

"The e-mail’s 'from' and 'subject' lines become key elements that help recipients quickly decide whether the e-mail is spam," said David Hallerman, senior analyst at eMarketer.

"Yet legitimate marketers confuse such seemingly simple issues by sending messages from different groups within their companies," Mr. Hallerman said, "and hence with various 'from' lines.

"Or they use 'subject' lines that they hope will entice the recipient but are often not clear enough," he said.

A December 2006 study by the E-Mail Sender and Provider Coalition and Ipsos confirmed how crucial "from" and "subject" lines are. About seven in 10 US Internet users said they judged these lines when deciding whether to report an e-mail as spam.

The MailerMailer study also found that open rates have continued to decline, as they have since 2004, as more people started using e-mail programs that disable the “automatic image downloading" setting.

To track open rates, HTML e-mails contain an invisible image measuring 1x1 pixel. When a recipient enables images to display, the sending servers can track when the image was displayed and by whom.

Even though open rates have gone down, click rates remain steady, suggesting that people are still reading their e-mail despite the lower-reported open rates.

E-Mail ROI High, Response Rates Low - eMarketer

2007-10-31T08:55:00.000Z

E-Mail ROI High, Response Rates Low - eMarketer:

E-Mail ROI High, Response Rates Low

OCTOBER 30, 2007

Next to search, e-mail spend is tiny. But that's OK.

Spending on direct marketing commercial e-mail in the United States will hit $600 million in 2008, according to the Direct Marketing Association. That number represents an increase of nearly one-quarter over 2007.

The numbers are dwarfed by spending on non-e-mail Internet direct marketing—such as search and display—which is expected to hit $23 billion. But judging by the DMA's data, the spending figures belie e-mail's low cost and high ROI.

eMarketer spoke with Anna Chernis, senior research manager at the DMA, about e-mail response rates.

Need data for presentations? eMarketer subscribers can download charts instantly — over 50,000 choices.
Learn About an eMarketer Subscription

"E-mail produces the highest response rate for lead generation—especially for house campaigns—of direct mail methods we have studied," Ms. Chernis said.

"E-mail is in general the lowest-cost way to run a campaign," she said. "Sometimes the response rate isn’t so great, but the cost is so low that it is part of most campaigns."

The DMA also found that commercial e-mail's ROI will hit $45.65 for every dollar spent in 2008.

Ms. Chernis noted that the group's separate study of direct marketing media response rates did not indicate much about ROI because the cost to send additional e-mails is tiny compared with sending more pieces of direct mail.

She added that just because a given media type is effective does not mean it should be used forever. Direct mail is so prevalent in financial services that marketers are looking at other media as a supplement.

Still, response rates remain one of the primary methods by which US marketers assess ROI, according to a Penton Media Custom Research study commissioned by PROMO Magazine.

That said, even with online marketing, some metrics remain out of reach. Ms. Chernis said that market researchers have yet to determine lift, such as for brand awareness, from multimedia versus single-media campaigns.

Nintendo Wii campaign searches for Britain's brainiest family - Brand Republic Login - Brand Republic

2007-10-29T09:36:00.000Z

Nintendo Wii campaign searches for Britain's brainiest family - Brand Republic Login - Brand Republic: "Nintendo Wii campaign searches for Britain's brainiest family by Nikki Sandison Brand Republic 24-Oct-07, 16:00 LONDON - Nintendo is promoting its Wii game Big Brain Academy by hosting a TV-style game show to find Britain's brainiest family in shopping centres around the UK. The campaign, created by BD-NTWK, aims to get families to compete against each other for a chance to take a place in the national final, hosted by GMTV's Lorraine Kelly,..."

Agencies line up for Pepsi digital brief - Brand Republic News - Brand Republic

2007-10-25T15:17:00.000+01:00

Agencies line up for Pepsi digital brief - Brand Republic News - Brand Republic: "Agencies line up for Pepsi digital brief by Noel Bussey Campaign 25-Oct-07, 08:30 LONDON - Pepsi is talking to digital agencies as it looks to re-evaluate its digital marketing strategy. The company is in early discussions with agencies and plans to hold an official pitch towards the end of the year. The winning agency will be briefed with web build activity as well as extensive online campaign work. ADVERTISEMENT The initial briefs will concentrate on youth marketing and will focus on how its digital strategy can be better used to target the youth market. In the UK, the company does not have a retained agency. However, in the past it has used the regional agency Graphico for one off briefs. Graphico's latest work for the client was to re-launch the Pepsi Max website, www.maxyourlife.com, in October 2006. The site encouraged uses to create and upload video clips showing how they 'maxed' their day. This was backed by the launch of a branded content channel on www.youtube.com, which was managed by MindShare Interaction."

IDM to launch email marketing certificate with Responsys - Brand Republic News - Brand Republic

2007-10-24T16:36:00.000+01:00

IDM to launch email marketing certificate with Responsys - Brand Republic News - Brand Republic: "IDM to launch email marketing certificate with Responsys by Alex Donohue Brand Republic 24-Oct-07, 14:00 LONDON - Email marketing company Responsys and the Institute of Direct Marketing are to launch a certified qualification in email marketing for the industry, offering practical training and an examination. The six-month course, which is based in London, will give participants classroom tuition, assignments, practical training and a final examination by the IDM board of examiners, offering candidates an IDM Responsys Certificate in Email Marketing. Responsys said the courses, which run twice a year beginning in September and January, would give marketing professionals a recognised qualification demonstrating their ability to manage resources, form a business case and maximise the performance of email marketing campaigns. The agency added that the European email marketing industry, which is worth around £1.1bn, currently gave retailers an average 100-fold return on investment on targeted email campaigns. But a shortfall in qualified staff has led to many online marketing departments being unable to exploit revenue, retention and data in email marketing. John Nugent, vice-president and general manager at Responsys for the European, Middle East and Africa region, said: 'T"

Coke to roll out first rewards scheme - Brand Republic News - Brand Republic

2007-10-24T16:27:00.000+01:00

Coke to roll out first rewards scheme - Brand Republic News - Brand Republic: "Coke to roll out first rewards scheme by Ed Kemp Marketing 24-Oct-07, 10:00 LONDON - Coca-Cola Great Britain is poised to launch its first ever UK rewards programme, as revealed by Marketing magazine in March. The rewards scheme, called ‘Coke Zone', will span ‘Coca-Cola', ‘Diet Coke' and ‘Coca-Cola Zero' and will offer consumers a series of rewards and money-can't-buy prizes. Special codes will be displayed on 500ml bottles and 2 litre packs of ‘Coca-Cola', ‘Diet Coke' and ‘Coca-Cola Zero'. Consumer will be able to then enter the codes through a dedicated website or via SMS in order to collect points. These points can be redeemed on-line with more than 60 reward scheme partners from the entertainment, fashion and music sectors. The scheme will launch as a trial in November. Coca-Cola then plans to roll out the scheme early in 2008. Should the scheme prove successful Coca-Cola plans to roll out ‘Coke Zone' across other Coca-Cola Great Britain brands. The official spring launch will be supported with a marketing campaign was created by Carlson Marketing and will span TV, online and in-store activity."

Iris to expand after winning £5m loan funding - Brand Republic News - Brand Republic

2007-10-23T09:46:00.000+01:00

Iris to expand after winning £5m loan funding - Brand Republic News - Brand Republic: "Iris to expand after winning £5m loan funding by Nikki Sandison Brand Republic 22-Oct-07, 11:40 LONDON - Integrated agency Iris Worldwide has won an interest-free loan of £5m in the Sunday Times/Bank of Scotland Corporate £25m Entrepreneur Challenge. Iris, which provides services in advertising, direct and digital marketing, public relations and sales promotion, plans to use the three-year loan to expand overseas. It will open offices in places such as Hong Kong, Brazil, Russia and South Africa to add to the offices it has already opened in New York, Sydney, Delhi and Singapore."

Dare and i-level part company with the AA - Brand Republic News - Brand Republic

2007-10-19T15:20:00.001+01:00

Dare and i-level part company with the AA - Brand Republic News - Brand Republic: "Dare and i-level part company with the AA by Kunal Dutta Campaign 18-Oct-07, 12:00 LONDON - Dare has resigned the digital ad account for the AA, after the company served notice on its digital media agency, i-level. Dare has worked with the AA since August 2005, while i-level picked up the media account - worth £5 million at the time -- in May of the same year. However, the company has since substantially scaled back its investment in digital marketing. The future of the accounts is not yet clear. Sources close to the business suggest that Rapier, which handles through-the-line activity for the AA's insurance and financial services, could inherit Dare's portion of the business, which includes web build and advertising. The AA, which has just completed a £6.2 billion merger with Saga, has recently seen a lot of change in its marketing department, which has thrown its wider agency arrangements into question. Above-the-line advertising and media for the AA is currently held by Delaney Lund Knox Warren & Partners and PHD respectively."

Iris scoops global Shell digital business - Brand Republic News - Brand Republic

2007-10-19T15:20:00.000+01:00

Iris scoops global Shell digital business - Brand Republic News - Brand Republic: "Iris scoops global Shell digital business by Staff Campaign 18-Oct-07, 12:00 LONDON - Shell has appointed Iris to handle its multimillion-pound global digital account, following a pitch against undisclosed agencies. Iris will now work as the lead digital agency for the petrol giant, and will initially produce campaigns for its retail, fuel and lubricants accounts. The agency's brief will include web development, online advertising and electronic customer relationship marketing. Iris already works with Shell on cross-promotional activity. The incumbent lead agency, Digitas London, continues to work with Shell's corporate department, and is currently redesigning the Shell.com website. In May, Iris hired Drew Thomson, the former chief executive of Airmiles, as its chairman to spearhead the agency's expansion plans across Europe. One of his first initiatives was to create a through-the-line strategy agency, jointly owned by Rise Communications, called iRise. Both Shell and Iris declined to comment."

E-Mail Usage High, Marketing Spend Low - eMarketer

2007-10-17T10:23:00.000+01:00

E-Mail Usage High, Marketing Spend Low - eMarketer: "E-Mail Usage High, Marketing Spend Low OCTOBER 11, 2007 Are e-mail marketers getting shorted on budget? More than one-half of US e-mail marketing executives get 20% or less of their firm's e-mail budgets, according to StrongMail Systems and JupiterResearch’s “Maturation of Email: Controlling Messaging Chaos Through Centralization” report. E-mail marketers appear to get shortchanged when it comes to e-mail budgets, especially considering the medium's wide usage. JupiterResearch found more than one-quarter of the e-mail that consumers received in their inboxes was marketing. But there are reasons why e-mail spending growth will stay moderate in the short term. 'The key reason is cost,' said David Hallerman, eMarketer senior analyst. 'Because e-mail is a low-cost medium, even relatively large increases in the number of commercial e-mails will not be reflected in large spending increases.' E-mail marketing spending comprises payments to e-mail service providers, list rental and the costs of in-house e-mail. E-mail advertising, on the other hand, is defined as ads running in third-party e-mail newsletters. eMarketer predicts that US e-mail marketing spending will reach $1.65 billion in 2011, up from nearly $1.5 billion in 2007. In essence, the annual growth rate will slow from 5.6% in 2006 to 1.5% in 2011. Moderate "

Coca-Cola plans Chinese drinks - Brand Republic News - Brand Republic

2007-10-17T10:22:00.000+01:00

Coca-Cola plans Chinese drinks - Brand Republic News - Brand Republic: "Coca-Cola plans Chinese drinks by Jemima Bokaie Marketing 16-Oct-07, 08:30 LONDON - Coca-Cola is to launch a range of drinks based on traditional Chinese herbal ingredients and recipes. The drinks giant has set up a research centre in China to develop the beverages. A spokesman for Coca-Cola said that the company was aiming to launch them in the first quarter of next year. The drinks are part of Coca-Cola's focus on health-related products; other plans include the roll-out of Glaceau enhanced waters, acquired through the purchase of US drinks company Energy Brands (Marketing, 8 August). ADVERTISEMENT Separately, Coca-Cola has agreed a global partnership with Italian coffee brand illy caffe to launch a range of premium ready-to-drink coffee products. The illy caffe brand is sold in 140 countries through more than 50,000 restaurants and coffee bars."

Zurich to promote insurance with homepage takeovers - Brand Republic News - Brand Republic

2007-10-17T10:20:00.000+01:00

Zurich to promote insurance with homepage takeovers - Brand Republic News - Brand Republic: "Zurich to promote insurance with homepage takeovers by Jacquie Bowser Brand Republic 15-Oct-07, 12:45 LONDON - Zurich is continuing its £12m 'Because change happenz' marketing campaign online by launching several homepage takeovers on sites including MSN, Tiscali, AOL and Orange. The online homepage takeover campaign, brokered by Zed, commences on Wednesday. It aims to raise brand awareness of Zurich insurance among ABC1 users between 35- and 54-years-old who are in the market for insurance but are not price sensitive. The campaign will feature humorous 'what if' situations based around car, home and commercial insurance. ADVERTISEMENT One homepage takeover sees a webpage smashed through by a gloved hand which snatches a car radio from a vehicle interior shown in the ad banner. Accompanying this is the strapline: 'What if someone shares your taste in music?' Diane Rowe, account director at Zed, said: 'With this campaign we continue to build the profile of Zurich as the insurer, not only for today but for the future. 'Digital is at the heart of our strategy for Zurich, delivering both brand interaction and engagement, and we are delighted that Zurich has embraced the true potential of online marketing.'"

Capri-Sun appoints bd-ntwk to account - Brand Republic News - Brand Republic

2007-10-17T10:19:00.000+01:00

Capri-Sun appoints bd-ntwk to account - Brand Republic News - Brand Republic: "Capri-Sun appoints bd-ntwk to account by Ed Kemp Marketing 16-Oct-07, 08:15 LONDON - Coca-Cola Enterprises has hired bd-ntwk to handle promotional activity for its Capri-Sun drink brand. The agency was chosen following a three-way pitch and will be tasked with creating on-pack promotions for the brand. The work will launch early next year. The initial campaign will be based on the theme 'squeezy mischief' and aims to boost sales through a series of competitions. The activity will coincide with the un-veiling of a fresh Capri-Sun pouch packaging design. ADVERTISEMENT The brand, which recently relaunched with no artificial ingredients, ran its first online ads earlier this year. They targeted mothers and ran across sites including Handbag.com, Female First and iVillage. The brand also launched an interactive support centre providing women with help in getting their children to eat more healthily and tips on how to prepare a healthy lunchbox. It also featured advice from child expert Clare Halsey. Capri-Sun is the fifth-biggest-selling juice drink brand in the UK, according to Mintel figures published earlier this year. Between 2001 and 2006 the brand's sales fell by 10.5%. Last year, it generated sales of £51m compared with £54m in 2003 and £57m in 2001. Last year, Capri-Sun ran an on-pa"

Coca-Cola starts push for Diet Coke Plus - Brand Republic News - Brand Republic

2007-10-11T10:19:00.000+01:00

Coca-Cola starts push for Diet Coke Plus - Brand Republic News - Brand Republic: "Coca-Cola starts push for Diet Coke Plus by Darren Davidson Brand Republic 10-Oct-07, 12:00 LONDON - Coca-Cola is launching Diet Coke Plus, its new vitamin-enriched drink, with a heavyweight advertising and sampling campaign. The centrepiece of the campaign, created by VCCP, is a 10-second TV spot, supported by print ads and posters. It breaks on October 15 and uses the line 'Plus a little added goodness'."

News: Coca-Cola picks Unilever man as head of innovation - Marketing Week

2007-10-05T15:03:00.000+01:00

News: Coca-Cola picks Unilever man as head of innovation - Marketing Week: "Coca-Cola picks Unilever man as head of innovation 19-Sep-07 Coca%20ColaCoca-Cola has appointed a former Unilever marketer, Chad Scales, to the new role of vice-president of brand marketing innovation. He takes over the role this week. Scales’ appointment aims to build on Coke’s new product development in non-core categories as it looks to move away from carbonated drinks. He will be responsible for developing the company into areas such as teas, coffees as well as looking at new packaging. Scales, who was previously vice-president of food division at Unilever North America, will report to Mark Mathieu, senior vice president of brand marketing. Mathieu reports into Coke’s chief marketing and commercial officer Joseph Tripodi, who was appointed last month. He replaced Mary Minnick, who left to join private equity company Lion Capital. Scales will head a team including Gopal Krishnan, who works in production innovation, Mike Shepherd, who works across packaging and equipment innovation, and David Fielding, who heads the teas and coffees categories. Coca-Cola, in recent years, has attempted to diversify away from carbonated drinks. It has undertaken a joint venture with NestlÈ called Beverage Partners Worldwide (BPW), which focuses on black and green tea. The pair are understood to be working on a range of functional"

E-Dialog to release latest email marketing package - Brand Republic News - Brand Republic

2007-10-03T16:23:00.000+01:00

E-Dialog to release latest email marketing package - Brand Republic News - Brand Republic: "E-Dialog to release latest email marketing package by Alex Donohue Brand Republic 03-Oct-07, 12:15 LONDON - Email marketing company e-Dialog is to release its latest software package, which focuses on helping marketers to improve the relevancy of their campaigns. The package, called The Relevance Trajectory, is described by e-Dialog as the first of its kind to identify the essential factors that comprise a relevant email marketing campaign and provide a score-based assessment for each element. The company said the rating system used by the package would allow users to improve email marketing relevancy to recipients, by following The Relevance Trajectory's step-by-step process. E-Dialog said that 97% of marketers used email to contact customers, making it increasingly difficult to get messages read, but that customised, well-timed emails increased the success rate of campaigns. John Rizzi, president and chief executive officer at e-Dialog, said: 'The Relevance Trajectory is a series of logical steps of information gathering, opportunity identification, programme development and results measurement that form a roadmap for continuously improving email marketing programmes.'"

Web 2.0 Users Go Shopping - eMarketer

2007-10-01T10:35:00.000+01:00

Web 2.0 Users Go Shopping - eMarketer: "Web 2.0 Users Go Shopping SEPTEMBER 25, 2007 But does the tech help persuade them to buy? Web 2.0 users spent about $27 billion online in the United States in the second quarter of 2007, according to comScore’s 'Web 2.0 in Retail Today” report. comScore reported that social networking site traffic rose 33% to 81 million unique visitors in August 2007 versus August 2006. Blog traffic grew 23% to 28 million unique visitors, while online video site traffic increased 20% to 93 million. “[The company also found that] 158 million people, or 87% of the US online population, visited Web sites that used Web 2.0 technology in August 2007, spending an average of 210 minutes per person at such sites,” said comScore chairman Gian Fulgoni at the Shop.org Retail Summit, as reported by Internet Retailer."

Norwich Union slashes marketing budget - Brand Republic News - Brand Republic

2007-10-01T10:34:00.000+01:00

Norwich Union slashes marketing budget - Brand Republic News - Brand Republic: "Norwich Union slashes marketing budget by Ed Kemp Marketing 26-Sep-07, 12:00 LONDON - Aviva-owned insurance brand Norwich Union will cut its 2008 marketing spend by approximately £80m next year and will cut back its 430-strong marketing department to 290 staff. According to insiders, staff were notified of the cutbacks earlier today and were told that the marketing budget would be £100m for the 2008 fiscal year. The company confirmed that 140 staff will be let go by next January. ADVERTISEMENT The insurer is also hoping to make further savings through a review of its marketing services agencies (Marketing 7 August). The insurance brand has told existing agencies to cut fees or risk losing the business, according to insiders. The UK's biggest insurer, Norwich Union had been in the midst of a pitch for its NU Life business, but that now hangs in the balance as the firm plans to draw up a roster of direct shops for its other insurance brands, including Motoring, Life, Home and Healthcare. In a statement NU said: 'Following a review of our marketing plans for 2008, we will be reducing our marketing budget and the number of roles across the marketing team by 140. We are operating in an increasingly competitive and changing environment and need to reduce the costs to our busi"

Marketing News: Former Bulldog marketing chief quits RBS Insurance - Marketing Week

2007-09-28T13:30:00.000+01:00

Marketing News: Former Bulldog marketing chief quits RBS Insurance - Marketing Week: "Former Bulldog marketing chief quits RBS Insurance 27-Sep-07 Peter%20Corfield%20RBS%20InsurancePeter Corfield, RBS Insurance director of brand and proposition, has left the company. He has been replaced by director of strategy Lisa Mackay-Smith. Corfield joined the Royal Bank of Scotland-owned company as marketing director for its Churchill brand in January 2004. He had a brief to revamp its advertising and communications, including the bulldog icon. He moved to take a similar role at Direct Line in June 2005 after Jim Wallace retired (MW January 27, 2005), but returned to Churchill following the appointment of Mike Tildesley. During his tenure, Corfield reviewed Churchill's advertising business out of Elliott Borra Perlmutte, which had handled the account since 1989 and created the bulldog branding. He appointed WCRS to the business at the start of last year. Corfield and Tildesley were moved to group roles spanning RBS Insurance's portfolio of insurance brands last year after the arrival of Roger Ramsden as director of strategy and marketing. Ramsden is poised to appoint former AirMiles marketer Nigel Grimes to lead the customer insight function, with a brief to boost retention and cross-selling opportunities across Direct Line, Churchill and Privilege (MW September 13). Mackay-Smith, who will retain her strategy remit, will"

Welcome to Business Insurance

2007-09-28T13:28:00.000+01:00

Welcome to Business Insurance: "LONDON—London-based Direct Line Insurance P.L.C., a U.K personal lines insurer, has announced the launch of four new commercial insurance policies. The products will be come into effect over September and October under the umbrella brand Direct Line for Business. They have been developed for small businesses that operate in a number of sectors and are aimed at sole traders and partnerships owned by individuals who also manage their business, the company said in a statement. Key features of the new products include tradesman insurance, residential and commercial property insurance and shop insurance the company said."

Direct Line commercial insurance policies to be launched - Money News

2007-09-28T13:27:00.001+01:00

Direct Line commercial insurance policies to be launched - Money News: "Direct Line commercial insurance policies to be launched Wed 26th Sep 2007 Small businesses could soon be able to benefit from some new commercial insurance policies from Direct Line, the company has announced. The policies, sold through the umbrella brand Direct Line for Business, are targeted at sole traders and partnerships which are owned by people who also manage their businesses. Tradesman insurance, residential and commercial property insurance, and shop insurance will all be offered. Customers who purchase a product before January 31st, 2008 will be able to take advantage of two separate launch offers - either a fixed premium for two years or the option of paying by monthly instalments at no extra charge. 'Direct Line is one of the UK's leading car and home insurers and the launch of these products is great news for small businesses who can now take advantage of the benefits of being a Direct Line customer,' said Kate Syred, spokesperson for Direct Line for Business. Other insurance products offered by Direct Line include travel and pet insurance, among others."

Mugenzi's Blog

Insurance Age - RBSI reports 9% slump in operating profit

Insurance Age - Insurance industry executives confident in the face of credit crisis

Post Online - Hastings revamps image

Post Online - Aggregator slams Direct Line 'offer'

Post Online - Insurance prices to drop by 10% by end of 2008 – Stephen Catlin

RBS resists pressure over key assets as rumours of sell-off hit share price - Scotsman.com Business

RBS resists pressure over key assets as rumours of sell-off hit share price

Home Insurance | Churchill Insurance unveils new interactive microsite

The Press Association: RBS unveils £10.3bn profits

RBS unveils £10.3bn profits

Direct Line launches new business insurance range

Direct Line launches new business insurance range

17/03/2008

Ups and downs as RBS rides the waves of credit crisis - Yorkshire Post

Ups and downs as RBS rides the waves of credit crisis

Insurance Age - Motor industry insurance profits ‘unlikely in 2009’, says AA insurance

News | Endsleigh appoints Inbox to give brand increased online presence - NMA

Endsleigh appoints Inbox to give brand increased online presence

Email article | Printer Friendlymore News

DMA study finds improvement in email delivery rates - Brand Republic News - Brand Republic

Insurance Times - RBSI approves partner’s use of aggregator site

RBSI approves partner’s use of aggregator site

Insurance Times - RBSI unveils restructuring changes

RBSI unveils restructuring changes

Insurance Times - NIG sale mooted as business drops

Aviva ready to jettison Norwich Union brand in UK - Brand Republic News - Brand Republic

News | Esure makes getting a quote easier - NMA

Pepsi draws up expansion plans for Raw brand - Brand Republic News - Brand Republic

City Republic: RBS could point the way to recovery - Brand Republic News - Brand Republic

City Republic: RBS could point the way to recovery

WPP acquires UK digital agency HeathWallace - Brand Republic News - Brand Republic

Can you trust comparison sites? | This is Money

Can you trust comparison sites?

Comment | Letters: Best practice is needed to ensure email delivery - NMA

Letters: Best practice is needed to ensure email delivery

Email article | Printer Friendlymore Comment

Churchill Insurance relaunches nodding dog microsite - Brand Republic News - Brand Republic

RBS faces tough questions over £12.5bn finances gap | Business | The Guardian

RBS faces tough questions over £12.5bn finances gap

Contact us

About this article

Car Insurance | TescoCompare.com comes out on top again

Majority of marketers expect email marketing spend to rise - Brand Republic News - Brand Republic

World's Web Users Are Shopping Online - eMarketer

World's Web Users Are Shopping Online

E-commerce infrastructure still building.

Auto Sites Not Best for Auto Ads - eMarketer

Motorbike insurer Bennetts runs online activity - Brand Republic News - Brand Republic

Motorbike insurer Bennetts runs online activity

ADVERTISEMENT

News | GSI Commerce acquires E-Dialog for £79m - NMA

Post Online - RBSI culls 100 managers

RBS Insurance digital chief quits | Precision Marketing

RBS supports Sport Relief - Brand Republic News - Brand Republic

Post Online - Chubb in NIG swoop

McGuinness named as motor manager by Chubb

Cheap Car Insurance | exclusive cashback offer - moneysupermarket.com

Cheaper car insurance than anywhere else

Home Insurance | Home insurance the next big price comparison battleground

Home Insurance | Challenge Churchill to beat your home insurance renewal by £30

Home insurance: Premium price battle - myfinances.co.uk

Home insurance battle forecast

Churchill Home Insurance claims to have best price - Money News

Insurance Age - Drakefield launches new travel insurance aggregator site

New website recruits consumers to meet with Coke officials - Brand Republic News - Brand Republic

New website recruits consumers to meet with Coke officials

CGI, Norwich Union and Allianz launch next generation account reconciliation system

Strong Spend Ahead for E-Mail Marketing - eMarketer

Strong Spend Ahead for E-Mail Marketing

But the tactic's humble rep could be hurting it.

The AA hands Carat its online account - Brand Republic News - Brand Republic

Insurance Age - Smooth operator

Post Online - MMA Insurance product launch

Post Online - Former AA Insurance boss Sinclair resurfaces

News: RBS Insurance md joins raft of exits in wake of rejig - Marketing Week

RBS Insurance md joins raft of exits in wake of rejig

Email delivery rates in sharp fall - Brand Republic News - Brand Republic

RBS insurance parts ways with two senior managers

RBS insurance parts ways with two senior managers