HS285: Marketing Management Class Nine June 25, 2013 Beth Goldstein

Today’s Class Cause Related & Nonprofit Marketing Dissecting Your Plan Canadian Breast Cancer Foundation Case Cause Related & Nonprofit Marketing

Selling Chicken Poop

Marketing 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

Format 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

Format 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)

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

What 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?

Presentation 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” SAMPLE # 1 BigBelly in Mexico “Better solutions for waste management” Marketing Strategy Victoria Landa

Executive Summary

Executive Summary OPPORTUNITY OF GROWTH Already in 30 countries Mexico start Mexico City Private Sector Specific industries Other industries Other states Government

GOALS Executive Summary 42 u’s 17 u’s Government negotiation start Government contact

Client Profile Demographics Private Universities Hospitals Shopping malls

Client Profile Needs Market research: Important tasks Overflow = collection schedule $$$$$$$$$ Collection company Size Vandalism

Lifetime Value Client Profile Acquisition Advertising $655,770 $21,168

Overview of the marketplace Market Opportunity Universities Hospitals Shopping Malls 2006 = 1,600 2001 = +300 units 2012 = 570

Market Opportunity Needs Assessment

Market Share Market Opportunity First to go to MEXICO!!!

“Old habits die hard” Competition 1 – 3 trash cans per station 2 times a day Manual separation process Central Station 2 – 3 employees Costs? What costs? Problem: STUDENTS!!!!

All the time!! Marketing Channels Blog Newsletter SOCIAL MEDIA Videos Web page QR code ONLINE All the time!! NETWORKING

Breakeven Sales Purchase 773

Sales Repeat Sales = 2 years then 10 or more Referrals = CITY, SECTORS, LEADERS, BRANCHES

Sales Cycle Sales Leeds , classification, contact (1w) Call, pitch (3w) Think, come and go, waste analysis (1-2m) Waste analysis and quote (1-2m) CLOSING DEAL

MXN$65,000 YR BUDGET Budget 1 month for web MXN $1,680 QR codes -MXN$5,500 (month) 1 month for web MXN $1,680 QR codes PIVOT STRATEGY

Timetable Blog = awareness Webpage = simple Newsletter = 17 units Videos = how it works in Spanish QR code = 2nd month 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 GROW We 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.

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

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

Competitive Assessment Browser 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.

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 market Web 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.

BREAKEVEN ANALYISIS Key Assumptions Contribution per unit   Contribution per unit Average cost of each package sold U$d 4000 Revenue per package sold ( 10% commission) 400 Variable costs Fixed costs 113,000 Break-even volume ( number of passengers needed to Breakeven) 283

Marketing Budget using the $25,000  

Timetable for Implementation and Milestones

Presentation Questions??? Class Input/Feedback is Important Schedule: Presentations July 2 15 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 am Others – due by beginning of class July 2 - Latte

Canadian Breast Cancer Foundation Run for the Cure $28.5 million raised 53% of funds Total funds = $10.2 million

CBCF Lifetime Value Audit to determine the value to companies relative to licensing fee of $25,000 Raised to $50,000

Cause 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?

Vita-King Market and Mission Pro’s Con’s Men/women aged 18 – 55 Interest in healthy living Daily Dose – multivitamin – logo & contribution amount marked Pro’s Con’s

Grape 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

FluidChem Market and Mission Pink windshield wiper fluid Pro’s Con’s 10 cent contribution per unit sold Pro’s Con’s

Let’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

What they decided Vita-King rejected FluidChem rejected Didn’t want to endorse a medically related product FluidChem rejected Didn’t fit with portfolio plus windshield washer fluid has a poison sign on it – red flag Grape Vine accepted Fit portfolio; seasonal promotions appealing GV partnered with a hotel with $1 from each bottle donated - $17,000 contribution

Future What challenges do they have going forward? How can they strengthen relationships with their sponsors? http://www.cbcf.org/ontario/GetInvolved/ShopForCure/Pages/default.aspx

Cause-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

Would Any of these work for YOU? Message promotion Licensing Issue or target focused Business activity

Cone Global CSR Study (on Latte)

But Compare 2013 to 2011…this has dropped

Altruism – Does it Have a Role? “If you did it and didn’t tell anybody, you didn’t do it.” David Ogilvy Has philanthropy ever been purely altruistic? Does that matter?

Attracting Donors

What’s Working in Online Marketing Source: http://www.e-benchmarksstudy.com/ Full Report posted to Latte

eNonProfit Benchmark Study

eNonProfit 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 lists Facebook Fans grew 46% Twitter followers increased 264% Facebook is the primary social network for connecting with supporters

Email Rates by Message Type 2011 to 2012

Email Open Rates by Sector

Email Click Thru Rates by Org Size

Advocacy (Action Focused) Click-Thru Rates A high profile fight drives media coverage and makes readers pay more attention and then click through An email that asks recipients to sign an online petition, send an email to a decision-maker, or take a similar easy-to-perform action. For the purposes of this study, advocacy email does not include higher bar actions like making a phone call or attending an event. Advocacy email rates were calculated from advocacy emails with a simple action sent to either the full file or a random sample of the full file.

Fundraising

Message Type

eNonProfit Benchmark Study

eNonProfit Benchmark Study

Twitter Followers by Sector

Facebook Fans by Sector

Facebook Posts per Day

Lifetime Virality (Like/Share/Post)

Online Gifts

Online Fundraising by Source Other is peer-to-peer, events, unsolicited web giving, peer referrals, social media

Non Profit Top Brands Harris Poll

Non Profit Top Brands http://www.harrisinteractive.com/insights/EquiTrendRankings.aspx#NonProfit

Non Profit Top Brands

Next Class Assignment: June 27 Book: Lucky By Design: Chapters 22 – 29 Case: Netflix Articles Marketing 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 Fargo Former Comedian who does a LOT of speaking gigs