HS285: Marketing Management Class Nine June 25, 2013

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

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

3. Selling Chicken Poop

4. 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

5. 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

6. 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)

7. 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

8. 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?

9. 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?

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

11. Executive Summary

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

13. GOALS ExecutiveSummary 42 u’s 17 u’s Government negotiation start Government contact

14. Demographics Client Profile • Private Universities • Hospitals • Shopping malls

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

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

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

18. Needs Assessment Market Opportunity

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

20. “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!!!!

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

22. Breakeven Sales Purchase 773

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

24. 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

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

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

27. 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.

28. 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.

29. 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

30. International tourist arriving to the International Airports of Buenos Aires and Cordoba and the Port of Buenos Aires. Third Quarter 2012

31. 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.

32. 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.

33. BREAKEVEN ANALYISIS

34. Marketing Budget using the $25,000

35. Timetable for Implementation and Milestones

36. 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

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

38. CBCF Lifetime Value Audit to determine the value to companiesrelative to licensing fee of $25,000 • Raised to $50,000

39. 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?

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

41. 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

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

43. 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

44. What they decided • Vita-King 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

45. Future • What challenges do they have going forward? • How can they strengthen relationships with their sponsors?

46. 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

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

48. Cone Global CSR Study (on Latte)

49. But Compare 2013 to 2011…this has dropped