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BU682 Group Report

Kevin Magnan: 145818510

Scott Henry: 145820360

Dorian Bondor: 080952090

Aljosa Krajisnik: 109003055

Scott Martin: 203042870

Yubin (Riki) Yao: 145802660

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Contents Situational Analysis .......................................................................................................................... 2

Customers .................................................................................................................................... 3

Competitors ................................................................................................................................. 4

Climate ......................................................................................................................................... 5

Problem Statement ......................................................................................................................... 6

Options ............................................................................................................................................ 6

Options for Addressing: ............................................................................................................... 6

Option 1: Direct Sales at Teaching Conventions and/or Trade Shows ........................................ 7

Option 2: Targeted Marketing via Facebook and Linkedin ......................................................... 7

Option 3: Create Compelling Content to Drive Traffic to Site ..................................................... 7

Recommendations........................................................................................................................... 8

Implementation Plan ..................................................................................................................... 10

Appendix Knowledgehook Interview ............................................................................................ 12

Bibliography ................................................................................................................................... 15

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Situational Analysis

Knowledgehook is a cloud-based software that helps grade school teachers get students

more engaged with math practice and homework. The company operates from within Waterloo’s

Accelerator Centre, coordinating a variety of remote parties across North America. The

following analysis, informed by company Co-Founder, James Francis, details the firm’s internal,

micro-environmental, and macro-environmental situation.

Company

Knowledgehook’s product-line consists of two offerings that are aimed at engaging,

improving, and supporting students as they navigate their school’s math curriculum.

The company’s free offering, GameShow, is a product that offers teachers a new, fun,

and interactive way to conduct reviews and assessments in their math classes. The content is

web-accessible and consistent with the school’s curriculum. Students are able to participate using

any web-enabled device by interacting with projected questions in real-time.

Knowledgehook’s paid offering, Knowledgehook Premium, includes a homework tool

that enables independent practice on assigned material. Knowledgehook premium is offered in

two packages; See exhibit 1 for associated pricing and package contents.

Exhibit 1: Product Offerings and Price points

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As a young startup, Knowledgehook has yet to solidify a strong image within the market;

however, the company supports the talent, culture, and momentum necessary to cross the

‘Chasm’, penetrate the North American market, and pursue their ultimate goal of replacing

textbooks.

Customers

Knowledgehook’s total addressable market consists of more than 115,000 public school

within North America.1,2 The firm’s current success has so far been limited to Ontario, with

eleven district school boards adopting the paid solution. Knowledgehook’s current low-cost

commercial strategy centers on scraping twitter data to target users engaging in online

conversation about competing products, and partnering with advocates from within the math

community. The co-founder has expressed interest in pursuing a new strategy, generating

groundswell among teachers with GameShow and targeting key decision makers (super-

intendants) by selling-in paid solutions through school boards; note: school boards have a 16-

month sales-cycle.

Although there are two segments of teachers (those who want to augment lessons and

those who want to prepare children for standardized testing), Knowledgehook has chosen to

target both segments with the same strategy, offering a plug-and-play product that will optimize

learning in both situations, while requiring no added time investment on the teacher’s behalf.

Additionally, both of these segments share a common underlying distrust in big business (ie.

Pearson) and a fear that ed-tech will eventually replace their profession; Knowledgehook must

therefore be wary when communicating with these stigmatic individuals.

4

Competitors

The majority of competing products only incorporate two of the three necessary elements

needed to produce a superior product; these elements include: the software, teacher involvement,

and action-oriented data. Knowledgehook’s software targets the ‘sweet spot’, depicted in exhibit

2, providing the teacher (the analyst) with the software and data required to optimize their

student’s learning experience and adapt to their educational needs.

Exhibit 2: Data-Tool-Analyst Framework

By targeting this sweet spot, Knowledgehook’s products can both inform learning and

engage students better than competing products, effectively granting the company a unique

position within the low-cost educational tech market. Competitors tend to either focus on

engagement (replacing the teacher) or informing classroom learning (while ignoring

engagement); as depicted in exhibit 3.

AnalystTeacher

ToolSo ware

DataAnaly cs

SWEETSPOT

5

Exhibit 3: Product Positioning Map

Climate

Stable political, regulatory, and economic environments are not expected to pose a

significant threat to Knowledgehook within the foreseeable future; contrarily, the rate at which

the socio-cultural and technological environments have been changing could potentially render

the product obsolete. Technological disruption is responsible for creating this business

opportunity, and can easily be responsible for taking it away.

Engagement

Inform

ingIn

strucon

6

Problem Statement

The main marketing problem for Knowledgehook is how to generate pull demand as soon

as possible from the teachers in the United States around Game Show so that these teachers can

influence the super intendant’s/principal’s buying decisions while simultaneously keeping

marketing costs as low as possible since the firm is still in its start-up phase. KH should also

maximize learning in this phase in order to optimize their marketing strategies accordingly as

they accrue experience. Below is a chart with potential implementable solutions for KH:

Options

Options for Addressing:

Solution Cost Time Necessary to Implement

Opportunity to Learn from Findings

Direct sales at teaching conventions/trade shows

High Long High Targeted marketing via Facebook and Linkedin Low Short High Create compelling content that drives traffic to KH website High Long Low Status Quo: Top-down sales to boards High Long Low

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Option 1: Direct Sales at Teaching Conventions and/or Trade Shows

In order to expand into the U.S., KH could hire and train salespeople and have them

attend teaching conferences or trade shows in order to educate teachers about Game Show and

even potentially solicit teachers that are interested in the product. The main concern around the

direct sales method is that it is very expensive. As a start-up, it is important for KH to reserve as

much capital as possible, and the prospect of hiring, training, and flying sales staff across the U.S.

to attend conferences is no feasible financially. Another major concern is how long it will actually

take in order to generate conversions. A salesperson needs to attend a conference, meet the right

educator, solicit, and potentially make a sale. This process is too long and there are other

processes that accomplish the sales transaction a lot quicker. The one benefit of the direct sales

approach is that the salespeople, and ultimately the KH executives, will learn a lot of valuable

information about their market segment through these conferences. In sum, impediments high

costs and the long amount of time it would take to implement this solution far outweigh any

potential educational value that could be extracted from these sales trips.

Option 2: Targeted Marketing via Facebook and Linkedin

KH could also expand into the U.S. through digital channels such as already existing

social media platforms that teachers are already utilizing. According to the Ontario College of

Teachers, 30% of its members spent two hours a day on Facebook in 2011 (Bielski). As more

millennials are entering teaching roles, this number is only projected to increase. In terms of cost,

marketing on Facebook and Linkedin is far cheaper than traditional marketing methods and KH

does not need to add someone to its payroll in order to implement this solution. Also, Facebook

and Linkedin targeted advertisements take almost no time to implement. Once the design of the

advertisement is decided, it can be uploaded and sent to teachers’ profiles. Another benefit to

targeted marketing via social media is the access to analytics that can tell KH many things about

how their marketing is consumed that the firm may not have considered; this allows the firm to

nimbly make adjustments in order to maximize revenues generated from such a marketing

campaign.

Option 3: Create Compelling Content to Drive Traffic to Site

KH could invest in a marketing campaign through a third party in order to generate mass

appeal around Game Show. The currently available marketing technologies are very impressive,

and KH would be wise to implement some tactics such as personalized user videos. In terms of

cost, hiring a third party marketing agency is expensive, and is a cost that KH really does not

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need to incur. Another reason that this solution may not be the most attractive is due to the time it

would take the third party marketing firm to design an ad of quality. This solution also provides

possibly the least learnability; the marketing firm designing the advertisement may have some

analytical tools that they take advantage of, and if they do, they will likely charge a premium for

access to these tools.

Recommendations

It is our recommendation that, given current marketing challenges and a limited budget

for addressing them, Knowledge Hook should develop a targeted Facebook marketing strategy to

build demand in the American teacher consumer segment. Still image advertisements can be

automatically displayed through Facebook directly to teachers in the United States. Given the

current, and increasing, activity of teachers on Facebook, this approach provides KH with a low-

cost, scalable, and specifically targeted awareness building strategy.

The advertisements used in the suggested Facebook marketing campaign should be

designed to show Game Show in action in the classroom while emphasizing the essential role of

the teacher using the software. It is essential that teachers view the product as a valuable tool for

supplementing, and not replacing, their teaching. Still image graphics (like the example included

in this report) should be designed for display through Facebook, and to inform consumers while

driving them to KH’s social media platforms and website. Once consumers are directed to KH

communication platforms, they should be provided with easy and obvious access to video content

that displays the benefits of Game Show in action. An option for achieving this involves filming a

volunteer teacher using Game Show in the classroom, and having teachers provide testimonials

for how the product has enhanced learning for their students. To maximize consumer interest and

learning, communication through all content should clearly state the purpose, versatility (ie. use

not limited to math), and exciting nature of the product.

By monitoring the performance metrics of the Facebook marketing campaign and the

location of new teacher sign-ups, KH can execute a bottom-up customer acquisition strategy in

addition to the top-down strategy already in place. Advertisement performance indicators

provided by Facebook can be used to refine and improve communications while developing a

further understanding of the end users of the product. Additionally, monitoring how many

teachers are using the product from different schoolboards can accurately inform KH’s front line

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sales approach. When teacher participation within a schoolboard hits a decided upon threshold,

this information can be used to communicate with the teachers involved and attempt to sell the

schoolboard on more widespread product adoption.

In the longer term, and if Knowledge Hook’s marketing budget increases, there are

alternative options for building product demand and purchase intentions among teachers and

school boards, respectively. Game Show can be advertised and/or demonstrated through

professional development programs organized by individual schoolboards to improve teaching

methods. Also, advertising space can be purchased in education magazines for teachers to provide

another platform for displaying the advertisements already developed for the Facebook campaign.

For example, ‘Professionally Speaking’ is the magazine claiming Ontario teachers as a reader

base. Finally, KH can be demonstrated at education technology conferences and trade shows.

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Implementation Plan

Figure out how to target teachers on social media, specifically Facebook

https://www.facebook.com/business?campaign_id=894282133965802&placement=bro

ad&creative=77611413152&keyword=+facebook++advertisement&extra_1=aa1c81da-1064-

44f6-a160-9ab0a1af2c97

Strategy - Knowledgehook already has an excellent online presence when its name is

searched using Google. It has a company website, Twitter page, Facebook page, and LinkedIn

page. This is a good start to successful online marketing.

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Cost – For ad sets with automatic bidding, the minimum daily budget is $1.00 USD and

must be at least 2 times your cost per click (CPC) bid. For example, if you have a $1.00 CPC bid,

your daily budget must be at least $2.00.

https://www.facebook.com/business/help/318171828273417

Targets – Facebooks can help reach a lot of teachers with useful advertising of

Knowledgehook. With a reasonable budget as instructed by Facebook, it will be possible to reach

marketing targets. Frequency of the ads determines their cost and they have a massive reach

through the teacher audience already present on Facebook for 2 hours per day (Bielski).

https://www.facebook.com/business/learn/how-much-facebook-ads-cost

12

Appendix Knowledgehook Interview

Biggest marketing challenges?

Money and time

Teacher demand

US launch – GameShow (free product) big launch in US is key.

o Most cost effective way to get into the US.

o Getting into the right markets, explaining GameShow well to new

customers.

o Creating viral campaign for US.

Strong advocacy program to promote product.

Who are key decision makers involved in the buying process in their customer segment?

Try to go to superintendent and work down.

Also trying to build demand from bottom

Trying to open up sales at a school level, so principle/math head/ teachers can

buy.

Who is subculture?

Underlying distrust in big business (ed-tech big disappointment, Pearson)

(massive online lecture)

Tech not delivering enough in the classroom space

Knowledgehook isn’t replacing teachers; teachers are still a key component.

Eventually to replace textbooks (long term goal)

Built for teachers who don’t want to put the time in.

Key positioning to teachers

Ranges from getting kids ready for standardized tests, and provide system that

kids want to participate in

Ability to inform teaching and improve.

Two types of teachers, but definitely some overlap between the two.

Pull demand from teachers instead of selling to district

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Can’t force teachers to adopt certain teaching methods, so you need to create

demand at the bottom

Administration could buy it but if teachers don’t want to use it, it will just sit on

the shelf.

How are you different from competition?

More of a southwest airlines strategy, low cost provider but also enjoyable

Engagement vs. informing instruction (one on one teaching is the best possible)

Improving teaching quality is most important

Why not push demand with kids and parents?

Have product for parents but it’s on hold at the moment (not prioritized)

Advised not to go into B2C untill later on

o Have to deal with lots of customer service; ratings and reviews need to be

maintained

“Competition” feature in GameShow

Tool that needs to be managed carefully

Can be bad driver, can lead to negative emotions towards internal competition

There is losers in competition, and can perpetuate students already not confident

in math skills.

Potential to compare between different schools.

Current promotional

Strong math community on twitter, so go in and pull twitter handles at certain

taglines; link handles to registered emails, then send email to distribution list.

Partnered with influential people in Canada who mention company (advocate

program)

Free product launched in August 2015.

Pennants and medals shipped out to put social pressure on teachers to compete

with each other

In Canada, would cold call individual schools, and target that way, but probably

not replicable in the US.

Ideas for future promotional

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New campaign could mock the old system, but needs to protect the classroom, or

build the classroom, etc.

Institutional rows of desks, vs. what Knowledgehook is, freeform, collaborative

learning. Teaching is a human activity and needs to stay that way to ensure proper

informed instruction.

Teachers love hearing about how important they are.

Lists of principles and vice principles in the US.

Facebook targeting by profession, cheaper than convention. (Protect your

classroom).

Shouldn’t come off as rich educational company (still the small guy providing an

innovative solution vs. big ed tech selling products that don’t really solve the

problem)

Negative feedback

Competition, but teachers can turn off that feature if they want to.

Initially somewhat buggy, but that’s common and pretty much under control.

Conversion to pay product

16-month sales cycles for school boards, need to play to budget cycles.

Teachers can go to website and click play now for free

Create an account,

Kids need devices

Content is built in (competition is different)

Pay product, contact hook and they can give trial sessions.

If X teachers at school are using pay product, can approach principle/board for

sale.

Have to design communication at a large scale.

Free product is still completely fine on its on in a group, and premium is for

individual learning.

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Bibliography

Mark, G. (2014). Selected Statistics from the Public Elementary and Secondary Education

Universe: School Year 2013-14. U.S. DEPARTMENT OF EDUCATION.

The Council of Ministers of Education. (2016). "CMEC." Education in Canada: An Overview.