Client Situation
In the fall of 1997, Connors was hired to introduce a buyer-driven e-commerce model (for Q2 '98), while building a strong Internet brand. Among the challenges was the fact that while the initial application for this new e-commerce model was for travel (specifically airline ticket purchases), it was important that we not limit the model to an "airline product." In addition, given the multiple dimensions of the model itself, we needed to educate the press as well as consumer and business audiences about how "name your own price" works concurrent with creating widespread awareness for the priceline.com brand value proposition.
Strategy
Before we launched, we began building "buzz" with a postcard teaser campaign entitled "the possibilities are endless..." which slowly revealed new ways to purchase airline tickets, new cars and home mortgages. The final postcard landed on the desk of every major (and minor) journalist on our target list on April 6, 1998, at the same time we issued the launch press release.
We garnered favorable response to the priceline.com announcement with extremely aggressive media relations, paying specific attention to differentiating their model from auctions and traditional retail. We encouraged 'name-your-price' media trials by loaning journalists credit card numbers so they could ' experience ' how the process works (note: sales were canceled immediately after processing). The program called for "hands-on" site tours and one-on-one meetings to discuss new ways to buy on the Web and how these options were impacting consumer behavior.
Phase two strategy introduced customer testimonials to add proof-of-concept to the model and credibility to the company (i.e. priceline.com was really selling tickets and services). Phase three focused on establishing Jay Walker as a major e-commerce player, which began once the priceline.com model was validated and the brand was established as a leading Web brand. We proactively pursued high-profile speaking opportunities in which Jay could demonstrate his grasp of the industry as well as his 'smarts' about consumer buying habits. Shortly thereafter, Jay became a keynote target for virtually every major conference organizer.
In phase four, we continued our aggressive media relations outreach, promoting key metrics to demonstrate the strength of the service and its increasingly widespread consumer acceptance; demonstrating the model's horizontal expansion opportunities by launching new applications such as rental cars, hotels and mortgages; announcing our patent agreement; and reinforcing general communications about the airline ticket product using messages tailored to benefit key vertical market audiences (students, brides, sports fans, etc.).
Program Goals
- Pre-Launch
We set specific goals for pre-launch, including: a) To develop and implement a solid media strategy to introduce the company and its first application: "name your price for airline tickets"; b) To balance positioning and messages for each of our audiences with careful consideration as to who priceline.com's true customer was at the time - the airlines; c) To position priceline.com as a destination to purchase all kinds of goods and services, not just airline tickets; d) To build "buzz" within the industry before launch - something "big," "really big" was about to happen; e) To educate analysts re: a new business model, which now seems straightforward, but at the time of launch, was a major breakthrough in the industry.
- Launch
After our six-month planning and development phase, we were challenged to introduce a company that had unknown management, no advertising or marketing support during the initial weeks and sensitive partner relationships. Our goals, specific to the launch time frame were: a) To educate and create broad awareness and acceptance of priceline.com in the technology, business and travel industries without threatening the airlines; b) To drive traffic to the site, specifically 250,000 unique visitors (reminder: no other marketing efforts were present during launch).
- Post-Launch
Post-launch, we continued with our launch objectives but also added a few more to the mix. They included: a) To reach vertical consumer audiences such as sports enthusiasts, military, students and seniors - all of which we collectively agreed would be the "low hanging fruit" for priceline.com's new airline ticket service; b) To maximize broadcast placements to make sure priceline.com was clearly positioned as the new model for electronic commerce; c) To elevate company credibility and raise Jay Walker's profile.
Results
Overall, consistent coverage coupled with aggressive advertising created consumer awareness for priceline.com and its services. The Opinion Research Corporation concluded that priceline.com achieved "mega brand" status with a projected awareness of more than 50 million people, or better than one in four U.S. adults.
On launch day, we surpassed our 250,000 unique visitors traffic goal, reaching to 620,000 unique visitors. In terms of media hits, in our first year (April 6, 1998 - December 31, 1998), Connors brought in almost two billion in total audience reach for priceline.com - breaking down into more than 550 placements, not including online coverage.
We also created an industry star in Jay Walker. He is now widely recognized. After many hours using connections and heavy pitching to book Jay for panel discussions and broadcast interviews, the tide eventually turned, and conference coordinators and producers were knocking on his door.
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