Marketing Promotions Proposal for a Web-store to distribute Marketing Promotions
Concept Create an online store with Kaiser branded products • For use by all Kaiser organizations • Sales & Marketing • Foothill Ranch & mills • To distribute marketing promotions • Customers • Employees
Benefit • Coordinate the Kaiser image & brand • Currently each plant and sales group buys whatever they want. There is no consistency • All promotions must have the same look & feel as our ads, brochures & packaging to be effective • Control costs • There are significant economies of scale so pooling purchases reduces the unit and total cost • Current expenditures for promotions aren’t tracked • Kaiser spent over $30k in 2009 with just one vendor • Total expenditures could be 2-3 times this especially if plant purchases for branded safety gear are included.
Benefit • Promote the Kaiser brand cost effectively • The SalesOutlook customer database shows we need to influence very few people • 1,000 Accounts total / 100 key • 3,000 Contacts total / 500 high-value • Promotions enable us to coddle our small customer base • Kaiser branded product can be targeted to specific industries and to specific job types to achieve specific objectives • Promotions are relatively cheap compared to display advertising which costs many times more per customer impression.
Benefit • Improve availability • Salespeople and employees currently have no access to promotions. The Web-store fixes this • Kaiser branded merchandise is ordered for events but is not available on short notice in small quantities • The lead-time to make merchandise prevents distribution except when we plan way ahead • The web-store makes Kaiser product available to all employees not just a select few
Users • Sales people • Kaiser Branded office gifts for customers • Kaiser “Select” promotions for Select MAPS training • Swag for golf outings & tournaments • Sales management • Meeting gifts emphasize importance and show appreciation • High-end gifts for executives visited infrequently create a memory
Users • Plant management • All Safety equipment can be branded and easily distributed • Plants buy promotions now so the e-store just lowers the cost of what we’re already doing • Corporate leaders • Meeting with investors and directors require mementos • Customers • The web-store will take credit cards so customers and the public can access branded merchandise
Promotions Work • Customers • Kaiser branded products increase name recognition • Gifts generate good-will & get meetings off to a positive start • Office Gifts equate to display advertising • A mouse Pad is like an 8” x 10” billboard • A Kaiser pen used by a customer at a meeting promotes name recognition and signifies approval to everyone in attendance • Gifts taken home or used on the golf course create an emotional connection to our brand • Promotions can link products and messages
Promotions Work • Employees • Workers who feel appreciated work harder. Giving Kaiser branded products shows appreciation and improves moral • Wearing Kaiser apparel and using Kaiser branded products increases employees emotional connection to the company • Meeting gifts signify importance & can emphasize the meeting goals
Store Design • 4 “Departments” with 18-20 items • Office Products • Pens, flash drive, calculator, mouse, tape measure, knife, multi-tool • Golf Accessories • Balls, towel, divot tool, golf shirts, hats • Safety Products • Hard hats, safety glasses, ear plugs • Wine and Beverage Products • Coffee cup, SS tumbler, water bottle, bottle opener, stopper, coasters
Store Design • Items will reflect the Kaiser image & brand • “Best-in-Class” Exceptional Products | Superior performance | Unparalleled Service • Highly engineered, premium products • Some low cost items but nothing cheap • Economical choices for large audiences • Clever, useful & well designed • Emphasis on high quality, luxury goods • Quality suitable for executives
Store Design • Soft Goods (shirts, jackets, hats) • No inventory required | No upfront cost • One shirt can be ordered and delivered in 2-3 weeks • Stocking a few items will enable immediate delivery • Hard goods (Pens, knives, golf balls, hard hats) • A minimum run of each item must be purchased and stocked • Inventory will be managed and distributed by vendor • “Customer” orders will be shipped as quickly as required
Store Design • Website will be created and maintained by promotions vendor – Dunigan Marketing • We have worked with this vendor for over a decade • Separate URL with link on Kaiser sites • Secure authentication for Kaiser users • Public access that accepts credit cards for payment • No payment required for Kaiser users • Approved users will have a password for secure access • Purchases will be billed to a predefined account at FR • Budget limits can be defined for each user
Store Design • Start-up Cost - $25,000 • $1,350 for website design • $23,000 in inventory • 21 different Kaiser branded products | 12 inexpensive | 9 luxury • 2,250 items on the shelf ready for delivery • On-going Costs • No on-going or per month expenses • Re-order costs are dependent on demand and budgets for promotions and safety gear • Seasonal orders are extra (i.e. Christmas wrap, hunting season) • Product introductions and special programs are also extra
Let’s Get Started • Store can be up and running in 45 days • Mark Haner will be the “Store Manager” • Starter stock has to be purchased • Website has to be designed and tested • Kaiser participants & budgets must be defined • Link can be added to Kaiser corporate site and “KaiserOnline” any time