When evaluating the CRM program she had relaunched in 2002, Victoria San Martin, Pet Marketing Director at Masterfoods Portugal, was visibly satisfied. During this period, she had successfully acquired over 100,000 dog and cat owners for her marketing database (MDB), an excellent result that turned the Pedigree® & Whiskas® Club into a case study. Added to this was the fact that a significant portion of the club members had been recruited online, allowing for regular interaction with controlled costs.
But it was not all good news. Five years later, the database represented only 5% of the country’s potential households and was heavily focused on urban centers, especially Lisbon. Furthermore, only two-thirds of the club members were active, which was low considering that the Pedigree® & Whiskas® Club accounted for about 20% of the marketing budget. Even knowing that media would
become more fragmented in the future—making it essential to maintain a closer relationship with consumers and turning relational marketing into a strategic investment—it was also true that her sales and marketing team was evaluated on annual performance, not on future prospects. This carried weight when deciding between “results in 2010” or “sales now.”
As she prepared to draft the 2007 marketing plan, Victoria debated whether or not to maintain the program. If it were to continue, she would necessarily have to ensure the club’s profitability: at least doubling the consumer database and increasing the level of interaction, while maintaining the same investment. In fact, the total marketing budget was set to remain stable, not exceeding 16% of sales.
