HS285: Marketing ManagementClass Nine

June 25, 2013

Beth Goldstein

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• Dissecting Your Plan• Canadian Breast Cancer

Foundation Case

• Cause Related & Nonprofit Marketing

Today’s Class

Click to edit Master title styleSelling Chicken Poop

Click to edit Master title styleMarketing Plan Format

Executive Summary (1 page)Vision

Opportunity for the organization to grow

Goals of the organization

Client/Constituent Profile (1-2 pages)Demographics of the client(s) required to grow business

Client/Constituent Needs

Customer Lifetime Value

Market Opportunity & Challenges (1-2 pages)Industry Profile/Overview of the marketplace

Demand Analysis/Needs Assessment

Market Share

Click to edit Master title styleFormat

Competitive Assessment (1-2 pages)Direct competitors

Substitutes

Marketing Channels & Mix (may include any or all of the following) (1-2 pages)

Direct Mail and Print Campaigns

Social Media

Advertising and/or PR

Web Strategy & Online Marketing Efforts

Business Partnerships & Marketing Alliances

Tradeshows/Exhibiting

Networking

Speaking Engagements

Click to edit Master title styleFormat

Sales Planning Process and Analysis (1 page)Breakeven Analysis: Number of Clients Needed

Sales closing rate

Repeat Sales

Referrals Patterns

Sales Cycle

Marketing Budget using the 10% of total organization budget (1 page)

Timetable for Implementation and Milestones (1 page)

Appendix/Supporting Documents (unlimited)

Click to edit Master title styleYour Presentation

Focus on the audience: potential investors, funders or other stakeholders

Well organized, professional and logical presentation

Presents a compelling argument describing your ability to be successful

Demonstration of excellent team work

Click to edit Master title styleWhat to Address in the Presentation

What products and/or services do you offer?

What markets do you target, both primary and secondary?

What customers does your business appeal to?

Which product/service features are important to your customers?

Click to edit Master title stylePresentation Keys to Success

Describe the value proposition for your customer.

Describe the decision-making process for the customer.

Who is your competition and what is your competitive advantage?

What is your revenue or sustainability model?

What is your projected growth for the next six months, one-year, three years

What expertise do you and your team bring to the organization?

“Better solutions for waste management”

Marketing Strategy

Victoria Landa

SAMPLE # 1BigBelly in

Mexico

Executive Summary

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Already in 30 countries

Mexico startMexico City

Private Sector

Specific industries

Other industries

Other states

Government

Executive Summary

OPPORTUNITY OF GROWTH

Click to edit Master title styleGOALS Executive Summary

17 u’s 42 u’s

Government contact

Governm

ent negotiation start

Click to edit Master title styleDemographics

Private Universities

Hospitals

Shopping malls

Client Profile

Click to edit Master title styleNeeds

Market research:

Important tasks

Overflow = collection schedule

$$$$$$$$$

Collection company

Size

Vandalism

Client Profile

Click to edit Master title styleLifetime Value

Acquisition

Advertising

Client Profile

$655,770

$21,168

Click to edit Master title styleOverview of the marketplace

Universities

Hospitals

Shopping Malls

Market Opportunity

2006 = 1,600

2001 = +300 units

2012 = 570

Click to edit Master title styleMarket Opportunity

Needs Assessment

Click to edit Master title styleMarket ShareMarket Opportunity

First to go to MEXICO!!!

Click to edit Master title style“Old habits die hard”

1 – 3 trash cans per station

2 times a day

Manual separation process

Central Station

2 – 3 employees

Costs? What costs?

Problem: STUDENTS!!!!

Competition

Click to edit Master title styleMarketing Channels

SOCIAL MEDIA

ONLINE

NETWORKING

1. Blog2. Newsletter3. Videos

1. Web page2. QR code

All the time!!

Click to edit Master title styleBreakeven Sales

Purchase773

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Repeat Sales = 2 years then 10 or more

Referrals = CITY, SECTORS, LEADERS, BRANCHES

Sales

Click to edit Master title styleSales Cycle

Leeds , classification, contact (1w)

Call, pitch (3w)

Think, come and go, waste analysis (1-2m)

Waste analysis and quote (1-2m)

CLOSING DEAL

Sales

Click to edit Master title styleBUDGET Budget

MXN$65,000 YR

-MXN$5,500 (month)

- 1 month for web- MXN $1,680 QR

codes

- PIVOT STRATEGY

Timetable

1. Blog = awareness2. Webpage = simple3. Newsletter = 17 units4. Videos = how it works in Spanish5. QR code = 2nd month6. Networking

MARKETING PLAN SAMPLE #2

Browser Viajes is a travel agency based in Cordoba, Argentina.

It is focused on outbound tourism, providing services to local passengers who travel abroad.

Plan : start implementing the inbound department at the beginning of 2013 providing travel services to South

American passengers travelling to Argentina.

OPPORTUNITY OF THE BUSINESS TO GROWWe must take advantage of the marketing Argentina is having as a destination worldwide:

*Buenos Aires, the capital of Argentina was number 13 in the list of 25 top destinations in the world according to Tripadvisor . *Several international tourism magazines are promoting the country.

GOALS OF THE BUSINESS

1- Increase profits by 10% by the end of 2013 by implementing the department of inbound tourism.

2- Increase profits by 15% by the end of 2013 by increasing sales in the outbound department.

Click to edit Master title styleDEMOGRAPHICS OF THE CLIENTS

Geographic segmentation:

First we will target Brazil and we will see how our new business works in that market. On the following months we will move to these other adjacent countries: Uruguay and Chile.

Demographic segmentation:Young professionals above their 30's, professionals adults above their 40's and retired people. All of them with a high income.

Behavioral SegmentationPremium passengers who are insensitive to prices. Passengers willing to pay a little bit more in order to receive a premium product and personalized attention

Click to edit Master title styleInternational tourist arriving to the International Airports of Buenos Aires and Cordoba and the Port of Buenos Aires. Third Quarter 2012

COUNTRY OF RESIDENCE NUMBER OF TOURISTS AVERAGE STAY AVERAGE DAILY EXPENDITURE( U$D)

Third quarter 2012 Share Third quarter 2012 Third quarter 2012

BUENOS AIRES AIRPORTS 607.403 100% 13,4 90,2Brasil 235.060 38,7% 6,3 174,7Chile 60.725 10% 6,3 130,8Uruguay 11.528 1,9% 4,9 97,7USA and Canada 54.572 9% 20,5 85,6Rest of America 120497 19,8% 18,7 69,1Europe 93945 15,5% 25,8 50,1Rest of the world 31076 5,1% 13,3 113,6CORDOBA AIRPORT 12646 100% 14,6 74,1Brasil 2372 18,8% 9 77,1Chile 4063 32,1% 10,5 98,6Rest of America 4671 36,9% 16,6 66,1Rest of the world 1540 12,2% 27,8 62,7BUENOS AIRES PORT 77429 100% 4,1 84Uruguay 72702 93,9% 3,9 84,8Rest of the world 4727 6,1% 7,5 77,8

Click to edit Master title styleCompetitive AssessmentBrowser Viajes has two main competitors :

• Other travel agencies : 41 Inbound tourism travel agencies and 443 outbound tourism registered . Each of them target different type of customers. Some of them focus on premium trips while others offer standardized products.

• Internet:

Airlines WebPages: Ex: www.lan.com, www.aa.com.

Hotel WebPages: Ex: www.marriot.com, www.hyatt.com.

Expedia, booking.com, despegar.com.

-------------------------------------------------------------------------------------------------------------------• To differentiate from our competitors we will focus our marketing activities on the following

strong characteristics of the agency:

- As an outbound tourism services provider : the ultra personalized service and special attention we give to details creating a premium product.

- As an inbound tourism services provider we will promote not only our ultra personalized service but also the opportunity that passengers from abroad have of having their trip organized by local travel agents who are based in the place where the service will be provided.

Click to edit Master title style Marketing Channels & Mix

Direct Mail Social Media

Facebook Blogging Instagram

Advertising and/or PR: Destinations events: cocktails to present the products we sell associated with local agents in each targeted marketWeb Strategy :Development of a new website adding to it the inbound department and the Portuguese version.Tradeshows/Exhibiting: fairs/tourism conferences: first event to attend to promote our products and to obtain partners in Brazil : World Travel Market Latin America to be hold on Sao Paulo, Brazil , April 23-25 of next year.

Click to edit Master title styleBREAKEVEN ANALYISIS

0 100 200 300 400 500 600 700 800 9000

100,000

200,000

300,000

400,000

500,000

Operating Break Even Chart

Volume

Key Assumptions    

Contribution per unit    

Average cost of each package sold U$d 4000

Revenue per package sold ( 10% commission)   400

Variable costs   0

Contribution per unit   400

Fixed costs   113,000

Break-even volume ( number of passengers needed to Breakeven)  

283

Click to edit Master title styleMarketing Budget using the $25,000

Click to edit Master title styleTimetable for Implementation and Milestones

Click to edit Master title stylePresentation Questions???

Class Input/Feedback is Important

Schedule: Presentations July 215 minutes each is REALLY, REALLY tight

Volunteers for 3 – 4 teams to present on Monday, July 1???

Benefit: Receive 24 add’l hours for written plan

Written plans for Mon, July 1 presenters will be due on Wed, July 3 at 9 amOthers – due by beginning of class July 2 - Latte

Click to edit Master title styleCanadian Breast Cancer Foundation

Run for the Cure$28.5 million raised53% of funds

Total funds =$10.2 million

Click to edit Master title styleCBCF Lifetime Value

Audit to determine the value to companiesrelative to licensing fee of $25,000

Raised to $50,000

Click to edit Master title styleCause Related Marketing

Are consumers skeptical of CRM?WHY?

How can CBCF mitigate this skepticism?

What’s the implications of pink washing related to their decision?

What about the companies’ risk?

Click to edit Master title styleVita-King

Market and MissionMen/women aged 18 – 55

Interest in healthy living

Daily Dose – multivitamin – logo & contribution amount marked

Pro’s

Con’s

Click to edit Master title styleGrape Vine

Market and Mission

Personal connection to breast cancer

$300,000 direct donation – bear logo but contributions not tied to individual sales

Proud Sponsor of CBCF

Pro’s

Con’s

Click to edit Master title styleFluidChem

Market and Mission

Pink windshield wiper fluid10 cent contribution per unit sold

Pro’s

Con’s

Click to edit Master title styleLet’s Compare the 3 proposals

What’s most lucrative for CBCF?

Which company aligns best with CBCF’s values?

Which company would you recommend?Vita-King

Grape Vine

FluidChem

Click to edit Master title styleWhat they decided

Vita-King rejectedDidn’t want to endorse a medically related product

FluidChem rejectedDidn’t fit with portfolio plus windshield washer fluid has a poison sign on it – red flag

Grape Vine acceptedFit portfolio; seasonal promotions appealing

GV partnered with a hotel with $1 from each bottle donated - $17,000 contribution

Click to edit Master title styleFuture

What challenges do they have going forward?

How can they strengthen relationships with their sponsors?

Click to edit Master title styleCause-Related Marketing

What are the Benefits?

Builds corporate brands

Improves corporate reputations & competitiveness

Generates revenue – both Is this a fair share?

Heightened awareness for a cause

Click to edit Master title styleWould Any of these work for YOU?

Message promotion

Licensing

Issue or target focused

Business activity

Click to edit Master title styleCone Global CSR Study (on Latte)

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But Compare 2013 to 2011…this has dropped

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Click to edit Master title styleAltruism – Does it Have a Role?

“If you did it and didn’t tell anybody, you didn’t do it.” David Ogilvy

Has philanthropyever been purely altruistic?

Does that matter?

Click to edit Master title style Attracting Donors

Click to edit Master title styleWhat’s Working in Online Marketing

Source: http://www.e-benchmarksstudy.com/

Full Report posted to Latte

Click to edit Master title styleeNonProfit Benchmark Study

Click to edit Master title styleeNonProfit Benchmark Report

Since 2011, online monthly giving has grown 43%21% annual increase in online revenue overall

Some email efforts are down: 14% drop in clickthrough rates for advocacy messages

27% decline for fundraising messages

Social media audience growth outpaced email listsFacebook Fans grew 46%

Twitter followers increased 264%

Facebook is the primary social network for connecting with supporters

Click to edit Master title styleEmail Rates by Message Type

Click to edit Master title styleEmail Open Rates by Sector

Click to edit Master title styleEmail Click Thru Rates by Org Size

Click to edit Master title styleAdvocacy (Action Focused) Click-Thru Rates

Click to edit Master title styleFundraising

Click to edit Master title styleMessage Type

Click to edit Master title styleeNonProfit Benchmark Study

Click to edit Master title styleeNonProfit Benchmark Study

Click to edit Master title styleTwitter Followers by Sector

Click to edit Master title styleFacebook Fans by Sector

Click to edit Master title styleFacebook Posts per Day

Click to edit Master title styleLifetime Virality (Like/Share/Post)

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Click to edit Master title styleOnline Gifts

Click to edit Master title styleOnline Fundraising by Source

Click to edit Master title styleNon Profit Top BrandsHarris Poll

Click to edit Master title styleNon Profit Top Brands

Click to edit Master title styleNon Profit Top Brands

Click to edit Master title styleNext Class Assignment: June 27

Book: Lucky By Design: Chapters 22 – 29

Case: Netflix

ArticlesMarketing When Customer Equity Matters

Worksheets Due:Worksheet 14.1: Customer Lifetime Value

Assignment Due:Interview with a Marketing Director Write-up

Guest Speaker: Stuart Paap, Wells FargoFormer Comedian who does a LOT of speaking gigs