© 2011 GameChanger Products LLC All rights reserved. 1 MONEYBALL MARKETING PRESENTED BY LARRY POPELKA
© 2011 GameChanger Products LLC All rights reserved. 2 RECORD HIGH AD SPEND
© 2011 GameChanger Products LLC All rights reserved. 3 SHOW ME THE MONEY Cost of Advertising on TV 4X since 1980 in Inflation Adjusted $$
© 2011 GameChanger Products LLC All rights reserved. 4 NEW APPROACH FOR WINNING THE AD GAME
© 2011 GameChanger Products LLC All rights reserved. 5 NEW APPROACH FOR WINNING THE AD GAME …MONEYBALL MARKETING
© 2011 GameChanger Products LLC All rights reserved. 6 MARKETING FACTS ≠
© 2011 GameChanger Products LLC All rights reserved. 7 COMPANIES THAT BEAT BIG SPENDERS
© 2011 GameChanger Products LLC All rights reserved. 8 MONEY ≠ SUCCESS 2002 Major League Baseball Season Oakland A’s 2002 Payroll$41 Million 28 th out of 30 Teams (NY Yankees = $125 Million) Record Most wins any team Record 20 Game Win Streak
© 2011 GameChanger Products LLC All rights reserved. 9 SHOW ME THE MONEY Jason Giambi $120 Million Johnny Damon $31 Million Jason Isringhausen $27 Million
© 2011 GameChanger Products LLC All rights reserved. 10 NEW UNDER-VALUED SOLUTIONS Scott Hatteberg $950K David Justice $3.5 Mil Chad Bradford $235K
© 2011 GameChanger Products LLC All rights reserved. 11 NEW UNDER-VALUED AD SOLUTIONS Events/ Sampling Street teams Online and social media
© 2011 GameChanger Products LLC All rights reserved. 12 YOUR NEXT MARKETING MEETING
© 2011 GameChanger Products LLC All rights reserved. 13
© 2011 GameChanger Products LLC All rights reserved. 14 WHAT’S YOUR OBJECTIVE? Sell Product = Get on Base
© 2011 GameChanger Products LLC All rights reserved. 15 THE AD WORLD IS FULL OF DISTRACTIONS Build Awareness Build Brand Equity Trial Rate GRPs Ad Designs Reach & Frequency ASI Tests Share of Voice
© 2011 GameChanger Products LLC All rights reserved. 16 THE AD WORLD IS FULL OF DISTRACTIONS Build Awareness Build Brand Equity Trial Rate GRPs Ad Designs Reach & Frequency ASI Tests Share of Voice There is only one thing that matters: Sell more product!
© 2011 GameChanger Products LLC All rights reserved. 17 THE SOLUTION… NEW METRICS
© 2011 GameChanger Products LLC All rights reserved. 18 OLD METRICS Batting Average Home Runs Stolen Bases Strike Outs
© 2011 GameChanger Products LLC All rights reserved. 19 OLD NEW METRICS Batting Average Home Runs Stolen Bases Strike Outs On Base Percentage WHIP OPS
© 2011 GameChanger Products LLC All rights reserved. 20 OLD AD METRICS GRPs Frequency Reach CPM
© 2011 GameChanger Products LLC All rights reserved. 21 OLD NEW AD METRICS GRPs Frequency Reach CPM Cost Per Conversion Retention Rate Revenue per Consumer
© 2011 GameChanger Products LLC All rights reserved. 22 EXAMPLES
© 2011 GameChanger Products LLC All rights reserved. 23 BLOCKBUSTER VS. NETFLIX 1998 $180 Mil/ Yr. Marketing Spending $4 Mil/ Yr. Marketing Spending
© 2011 GameChanger Products LLC All rights reserved. 24 BLOCKBUSTER Blockbuster “Total Access” – “Carl and Ray” Superbowl Ad Metric = “High Awareness”
© 2011 GameChanger Products LLC All rights reserved. 25 NETFLIX Online Ads + Postcards in New DVD Players Cost per Conversion = $37.16
© 2011 GameChanger Products LLC All rights reserved. 26 RESULT
© 2011 GameChanger Products LLC All rights reserved. 27 RESULT
© 2011 GameChanger Products LLC All rights reserved. 28 VITAMIN WATER VS. COKE $2.9 Billion Ad Budget$2 Million Marketing Budget
© 2011 GameChanger Products LLC All rights reserved. 29 COCA-COLA ADVERTISING
© 2011 GameChanger Products LLC All rights reserved. 30 VITAMIN WATER MARKETING Sampling + Celebrities = Efficient Conversion
© 2011 GameChanger Products LLC All rights reserved. 31 RESULT Coke buys Vitaminwater for $4.2 Bil = 10% of Coke’s Market Cap
© 2011 GameChanger Products LLC All rights reserved. 32 PURINA VS. NUTRO DOG FOOD Purina $140 Million Ad Budget Nutro $5 Million Marketing Budget
© 2011 GameChanger Products LLC All rights reserved. 33 PURINA Traditional TV and Print Advertising
© 2011 GameChanger Products LLC All rights reserved. 34 NUTRO Nutro “Pet Nutritionists” in Pet Stores Payout conversion rates
© 2011 GameChanger Products LLC All rights reserved. 35 RESULTS Nutro: #1 Ultra-Premium Brand - $350 Million Revenue Acquired by Mars 2007
© 2011 GameChanger Products LLC All rights reserved. 36 HOW TO BE A MONEYBALL MARKETER
© 2011 GameChanger Products LLC All rights reserved STEP PROGRAM 1. Find Potential Under-valued Opportunities
© 2011 GameChanger Products LLC All rights reserved STEP PROGRAM 1.Find Potential Under-valued Opportunities 2.Test and Measure
© 2011 GameChanger Products LLC All rights reserved STEP PROGRAM 1.Find Potential Under-valued Opportunities 2.Test and Measure 3.Select, Modify, Expand
© 2011 GameChanger Products LLC All rights reserved. 40 CASE STUDY BRITA Year 1990 Size <$2 Million Situation: Business unprofitable Fold the business?
© 2011 GameChanger Products LLC All rights reserved. 41 FINDING UNDERVALUED MARKETING 1.Find the “Fanatics” 2.What motivates them to buy? 3.How and where can we reach them ?
© 2011 GameChanger Products LLC All rights reserved. 42 TESTING MARKETING 1.Location/ Aperture 2.Find the “Hook” – What drives interest 3.Refine the costs and message
© 2011 GameChanger Products LLC All rights reserved. 43 T.E.D.I. MARKETING T = Targeted E = Engaging D = Dramatic I = Immediate
© 2011 GameChanger Products LLC All rights reserved. 44 RESULT $200 Million Brand in 5 years
© 2011 GameChanger Products LLC All rights reserved. 45 KEY METRICS
© 2011 GameChanger Products LLC All rights reserved. 46 KEY METRICS 1. Cost per Conversion Oxi-Clean built to $200 Mil brand with efficient conversion.
© 2011 GameChanger Products LLC All rights reserved. 47 KEY METRICS 1.Cost per Conversion 2.Retention Rate ProActiv Solution grows to $800 Mil brand with effective retention.
© 2011 GameChanger Products LLC All rights reserved. 48 KEY METRICS 1.Cost per Conversion 2.Retention Rate 3.Revenue per Consumer Burt’s Bees grows to $150 million behind high revenue per consumer.
© 2011 GameChanger Products LLC All rights reserved. 49 MONEYBALL MARKETING 10 KEYS TO SUCCESS
© 2011 GameChanger Products LLC All rights reserved FIND THE FANATICS Meguiar’s car care – target enthusiasts to amplify your effort.
© 2011 GameChanger Products LLC All rights reserved START WITH REAL CONSUMER INSIGHTS Find what consumers really want and meet their needs.
© 2011 GameChanger Products LLC All rights reserved FIND THE APERTURE Target consumers when they are ready to buy your product.
© 2011 GameChanger Products LLC All rights reserved BE HELPFUL. DON’T WASTE PEOPLE’S TIME Engage your consumer – don’t force them to watch something boring.
© 2011 GameChanger Products LLC All rights reserved RETENTION: CREATE A “WOW” In-N-Out Burger: Experience that delights and builds repeat.
© 2011 GameChanger Products LLC All rights reserved MEASURE REAL SALES DATA Measure real purchases – research studies can mislead.
© 2011 GameChanger Products LLC All rights reserved MORE SWINGS AT THE PLATE Test more different concepts (more swings) – for more home runs.
© 2011 GameChanger Products LLC All rights reserved INVEST LIKE A SHARK Zero-based budgeting for marketing
© 2011 GameChanger Products LLC All rights reserved BEWARE OF DINOSAURS Traditional marketers who may not support your plan.
© 2011 GameChanger Products LLC All rights reserved FEED YOUR SUCCESSES As you gain success, expand the vision and growth plan.
© 2011 GameChanger Products LLC All rights reserved. 60 WHAT’S YOUR GOAL?
© 2011 GameChanger Products LLC All rights reserved. 61 GAMECHANGER RETAIL LAB Example: Torani Coffee Flavorings Test marketing approaches and measure sales response.
© 2011 GameChanger Products LLC All rights reserved. 62 LARRY POPELKA, CEO GAMECHANGER FREE BOOK ( GET YOUR COUPON TODAY)