1 ©2009 inc. confidential. do not copy. Media Strategy March 9, 2009.

1©2009 inc. confidential. do not copy.

Media StrategyMedia StrategyMarch 9, 2009March 9, 2009

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The New Retail Analytics

retailmarketingexpertise

brand + call-to-actionlocal marketing

holistic marketing

macromicro

optimization

©2009 inc. confidential. do not copy.

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•proven ability to drive sales and branding goals

•strategic media planning, buying and optimization

•exceptional event and local marketing


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mediabuyingmediabuying

marketingexpertisemarketingexpertise

mediaanalytics

mediaanalytics


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integrated media partner

•Media buyers have an average of 22 years experience

•Boutique agency with national clout

•On-call service at every level

• Impeccable reputation

•Full-disclosure billing

•Maximize your budget by adding media value and targeted promotions at no charge

•Always leverage every dollar for maximum impact

•Direct interaction with principal


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unique retail prowess

other retail experience


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results-oriented expertise

•Drove double-digit comp store sales growth in six of seven years at the helm of national multi-channel public retailer

•Created lifestyle events and publication supplements to better serve customer segments

•Drove $35 million ANNUAL marketing budget including all aspects of creative, direct mail, media, events, promotions, PR and in-store merchandising for national public retailer

•$150M over the last 3 years


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local event marketing

•Conceptualized and executed monthly traffic-driving store events, over 1,000 in-store promotional events per year between vendor partners and media

•Planned over 70 grand opening (and attended over 50!)


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•shopping destination for people who love to ride a bike

•unrivaled selection of quality cycling products, value and

education

•creating a lifestyle brand


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matureindependents

matureindependents

affluentfamiliesaffluentfamilies

futurefamiliesfuture

families


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marketing objectives

•Differentiate PB from fragmented IBDs

•Gain market share from IBDs

•Increase prospecting and acquisition options to help fuel aggressive growth plans

•Call-to-action component to drive sales across all channels

Performance Bicycle = “Where Great Rides Begin”


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segment value props

affluent families

community outreach

knowledgeable staff

family-friendlybuyers club

enthusiastexpert

future families stores

affordable comprehensive

satisfaction guarantee

family-friendly

authoritativefamily-friendly

mature independents

performance elite

online conveniencesales promos

referral programbuyers club

environmentaltravel

channelchannelcustomercustomer offeroffer creativecreative


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opportunities

•Existing tactics do good job of targeting existing customers

•Market share: how to gain trial from competitors’ customers? Win loyalty?

•Growth: how to recruit new bikers in the market? Win loyalty?

existingcustomerspotential

sow

existingcustomerspotential

sow

competitors’customers

IBDswalmarttargetetc.

competitors’customers

IBDswalmarttargetetc.

newbikersto themarket

newbikersto themarket

existingcustomersexisting

customers


potential market share

potential market share

holistic marketing

national media

regional/seasonal

local markets

stores

associates

customers

Stores

Online

Catalog

capturevalue

communicatevalue

create value

price

community outreach

expertise

local events

selection

national promo


grand openings

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national umbrella example

•Example objective: Create media plan to maximize targeted impressions for prospecting, such as email prospecting

•Plan: use reputable vendors to create email campaign around test stores

•Example: One vendor has over 4 million bicyclists

•Email contains promotion, local store info, as well as call-to-action to visit stores

•Possible creative: “TOURING MONTH” all touring related bikes are on sale

•National promo, delivered locally


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local marketing

•Create local marketing plan, customized by market, to prospect and drive in-store traffic

•Reach prospects in a different way

•Factors: consider number of stores, overall sales, media cost, seasonality, local competition and other applicable data points for local plans

•Huge Opportunity locally – as part of layered marketing plan


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The New Retail AnalyticsThe New Retail Analytics

•cross-channel and holistic view of marketing communications impact

•test + learn media approach

•strategic media planning, buying and optimization


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macromacro micromicro

optimizationoptimization

The New RetailAnalytics


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MACRO + MICRO views

New Retail Analytics

macrosite-level

market-levelcategory-level

any aggregate-level view

mass media, emailnational

promotionslocal marketing

community outreach

increase market share

brand awarenessevolving to lifestyle

attributesonline portal opportunities

microcustomer-level

existing customersnew customerssegment-level

based on customer + purchase information:

catalogsdirect mail + email

loyalty program

increase share of wallet

customized messaging creates

true loyalty and brand

differentiation

elementselementsviewview tacticstactics functionsfunctions


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MACRO + MICRO KPIs


macro

salesmargin

profitabilityawareness

visitspage views

trend vs. selfperformance vs.

controlcomp performance

media effectiveness expressed as:

$/resultfor each

channel/media typeneed for proper

allocation of media spend

micro

response rateaverage ticketbasket analysisnew customerscustomer value

purchase frequency

trend vs. selfperformance vs.

controlcustomer lifetime

valuepre- and post-

behavior

segment value drivers

high-value segments

communication preferences

metricsmetricsviewview methodsmethods insightsinsights


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create plan to reach target audiencecreate plan to reach target audience

create test & control conditionscreate test & control conditions

measure resultsmeasure results

optimizeoptimize

use internal + external researchuse internal + external researchaffluent families, future families, mature independents

national promos, media, local events, community outreach

control markets and sites, trends, goals

macro + micro

use results metrics to refine plan


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•Combination of client historical data, industry averages and educated gut instincts to predict success rates by media type

•Combination of branded and c-t-a advertising

•Measure short-term success

•Consistent with long-term strategic brand objectives

•Example: triathalon marketing: coupons, brand ambassadors, branded apparel, banners

•Metrics: measure coupon redemption, new customer acquisition rate, average ticket, value, etc.


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optimization grid example


mediamedia radioradio bannersbanners emailsemails direct direct mailmail

local local eventsevents

spendspend $100,000 $80,000 $40,000 $150,000 $20,000

metricsmetrics site-level click thru conversion responsenew

customers

durationduration weekendactive

durationpromo

duration

2 weeks after in-

home

2 weeks before and after event

$/result$/result $20$20 $18$18 $15$15 $25$25 $16$16


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The New Retail Analytics

retailmarketingexpertise

brand + call-to-actionlocal marketing

holistic marketing

macromicro

optimization


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Next stepsNext steps

Engage Revolution Media as marketing partner based on unmatched retail expertise and extensive attention to the

multi-channel nature of the business

Create detailed marketing plan with actionable tactics

Share overall response rates to begin predictive modeling efforts

Pick a start date!


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Thank youThank you


1 ©2009 inc. confidential. do not copy. Media Strategy March 9, 2009.

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Transcript of 1 ©2009 inc. confidential. do not copy. Media Strategy March 9, 2009.