The juicery direct marketing plan

BRITISH COLUMBIA INSTITUTE OF TECHNOLOGY DIGITAL AND DIRECT MARKETING | 2438

DIRECT MARKETING PLAN

By: Carolina Oliveira Cintra Cecilia Huang Jason Jung Vanessa Amaral

EXECUTIVE SUMMARY The Juicery Co. is a local organic cold pressed juice company founded in Vancouver by a local family.

A relatively fresh face to the scene since its opening in 2013, The Juicery Co. has become one of the most popular juice businesses set apart by its strong health-focused philosophy. The family recently acquired a fully-certified organic farm which allows them to source the freshest local ingredients directly from their farm in order to craft highly nutritious juices to combat illnesses and provide maximum health benefits. This makes them a strong competitor in the industry. Quality, credibility and value have been the key pillars of their success.

In this direct marketing plan, we aim to increase the company’s overall revenue through targeted communication. We will do so by implementing a plan to boost sales during the holiday season. We will focus primarily on promoting the juice cleanses and soup detoxes in order to build customer loyalty and increase product awareness. Through both print and digital channels, which include email marketing, display ads and marketing automation, we plan to reach and acquire new customers so we can introduce these juice products into their health regime. By executing an integrated and multifaceted direct marketing campaign, The Juicery Co. can continue to expand its reach of its target audience and grow its customer community.

1

TABLE OF CONTENTS COMPANY INTRODUCTION

3

PLAN OBJECTIVES

3

TARGET AUDIENCE Lifetime Value

4 4

CAMPAIGN TACTICS/STRATEGIC PLAN OF ACTION Email Marketing Print mailing Display Ads Marketing Automation

5 5 6 7 8

OFFERS & TESTS Email Offers Mail Offers Google Display Ads Organic Soup and Juice Cleanses - Order now and get 20% OFF Social Media Display Ads

8 8 9 9 10 10

MEASUREMENT E-mail Print Mailing (Neighborhood MailTM) Google and Facebook Display ADs KPIs - Key Performance Indicators

11 11 11 12 12

TIMELINE

13

APPENDIX Appendix 1

14 14

Appendix 2 - Facebook Display Ads

16

2

COMPANY INTRODUCTION The Juicery Co. is a family-owned, Vancouver based company founded in 2013.

The company was created after a family member was diagnosed with stage four Esophageal Cancer.

During their investigation of alternative treatments it became apparent that nutrition could potentially offer the most potent healing medicine. Research revealed that juicing is a method of providing specific micronutrients, which would support the body with the challenge of living with cancer. The family started making cold-pressed juices and they did see the improvement in their dad’s health.

In 2013 the company opened their first store in North Vancouver. They now have four locations, two in North Vancouver, one in Kitsilano and a recently opened at Main Street. Two years after, the family bought their own 100% organic farm in British Columbia and since then all the ingredients used in their products come from their farm. The company offers juices and nut milks and have a partnership with KitsKtichen offering fresh and organic soups. They also specialize in juice cleanses, offering a great variety of cleanses and detoxes for individuals looking to boost their health as well as those who are looking to supplement their fitness regime. The Juicery Co. is a strong contender in the cold-pressed juice market in Vancouver due to its commitment to fresh, local ingredients and providing maximum nutrition to their customers. The Juicery Co. is more than just nourishing and healthy juices, it is a lifestyle.

PLAN OBJECTIVES The objectives of this direct marketing plan are to: ● Increase sales by 5% in 2017 ● Boost sales by 10% during the winter season (November to mid-December) ● Grow the client database by 10% in 2017 ● Educate customers on the benefits of the Juicery Co. products ● Increase customer loyalty and brand awareness

3

TARGET AUDIENCE Healthy Women Our primary target audience consists of 30 to 45 year old women who are working professionals with moderate to high income. They have a college or university education and live or work in the areas of Kitsilano, North Vancouver, West Vancouver, Olympic Village, Yaletown and Gastown. They are health-conscious and care about what they consume. These individuals seek nutritious snack options to stay healthy or remedy current or potential illnesses. These individuals purchase local, organic, non-GMO products and often shop at local farmer’s markets and natural organic groceries such as Wholefoods.

Health and Fitness Gurus Our secondary audience is the group of 25+ fitness and health enthusiasts. These individuals currently lead active lifestyles. They exercise often (at least three times a week) and participate frequently in activities like yoga, pilates, running, spinning, weight-training and various outdoor activities. Some of these individuals currently work in the industry of health and wellness as personal trainers, dieticians and fitness instructors. Most of them are part of a niche fitness community and have extensive networks.

We will base our offers on the following segments derived from our current customer database: - Loyal Customers: individuals who purchased at least two juice cleanses or soup detoxes per year - Casual Customers/Light Users: Individuals who has never purchased a juice cleanse or a soup detox but have purchased juices or other products Lifetime Value Loyal Customers - 3 times a week x $10 x 52 weeks = ($ 1560 + $100 per cleanse x 3 times a year) -> x 3 years = $5580 Casual Customers - 1 time a week x $10 x 52 weeks = $520 -> x 3 years = $1560

4

CAMPAIGN TACTICS/STRATEGIC PLAN OF ACTION In this direct marketing plan, we will implement an integrated direct marketing campaign that will take place during the holiday season in November and December. Our campaign will consist of email marketing, print mailing, display ads and marketing automation.

Email Marketing We will use email marketing to increase sales over the winter season and to build customer loyalty.

We will be launching a holiday campaign from November to mid-December that will target our current customers and offer discounts to encourage purchase of juice cleanses as well as soup cleanses. This campaign aims to boost sale of soups, which is less popular than juice sales, but is an ideal alternative to the cold juices during the cold winter season.

Segmentation will be based on the customer’s previous purchase behaviours. For customers who are purchasing juice cleanses on a regular basis, we will offer a holiday promotion that encourages crossselling of the Juicery products as well as stimulate repeat purchases. For regular customers who have purchased a juice product but have never purchased a juice cleanse before, we will offer a discount to encourage them to try these products.

Urgency will be created through incorporating a deadline of December 24, 2016 in order to encourage immediate action. Towards the end of the campaign, a reminder email will also be sent out a week prior to the deadline to encourage customers to take advantage of the sale because time is running out.

In order to make the content more appealing and relevant to each individual, we will personalized the emails. The email messages will be addressed directly to the customer’s first name. The content will be tailored to the audience’s interests and past purchases. For example, if the customer purchases juice cleanses at least three times a year, we will mention the last cleanse they purchased from us and how we are offering a holiday promotion so they can order their favorite cleanse along with the seasonal soup detoxes at a discounted price. If the customer has only purchased juice by the bottle, we would recommend them the juice cleanse as the next step in order to receive maximum health benefits. We will also insert a recommendation of a juice cleanse combo that comes with the juice they like or have purchased in the past. Lastly, if we have the customer’s address, we will include the store locations nearest to them.

The key message of the email is holiday-appropriate and encourages customers to treat themselves during the holiday season. There is a Johnson box on the top left corner of the email urging individuals to act now to save. To make the email more personal, it is written on behalf of Alex Troll, who is one of the co-founders, accompanied by her photo. To redeem the discount, customers will be directed via a call to action button to a customized landing page with the special holiday offer that is consistent

5

with the email so they may select the product of their choice. The landing page will also have a call to action, similar to one in the email, which takes them to the shopping cart to complete the order. By making this process as effortless as possible and eliminating unnecessary steps in between, we hope to successfully secure conversions.

Following the purchase, customers will be encouraged to follow The Juicery Co. on social media, through their Instagram and Facebook accounts, and post on social media. When they receive their juice cleanse, there will also be a note card inside the package with a personalized message that encourages them to share a photo of their fresh delivery on social media and tag The Juicery Co. This promotes engagement with our customers and also increases our brand presence online through their personal networks.

Following the delivery of their purchase, we will also send a follow-up email to ask them for feedback and provide an opportunity to review the purchase on the website. As part of future email marketing campaigns, we will monitor the individual’s purchase behaviours and send them an email to remind them that it’s time to purchase their juice cleanse.

Print mailing The purpose of print mailing is to acquire new customers for the purpose of expanding our database.

We will utilized rented lists with “suspect” customers with characteristics and interests that match our target audience. These response lists are comprised of individuals who are current subscribers of the Reader’s Digest Health and Fitness, who have proven ability to make an investment in health-related products. We will select FSAs so we can target individuals in the areas in proximity to The Juicery Co. locations, including North/West Vancouver, Yaletown, West End of Downtown, Kitsilano and Main St. Our offer will initiate product trial by individuals who have yet to try The Juicery Co.’s products.

List 1: (Cornerstone) Reader’s Digest Health and Fitness http://www.cstonecompanies.com/datacards/datacard.aspx?uid=e9eb83b6-47da-4e2d-a4453d1eb9b45e62 In BC, with select FSAs 5,500 names x ($155 + $10 + $10 ) = $962.50 + 20% = $1,155 5,500 names x response rate of 4.4% = 242 List 2: (Cornerstone) Best Health Magazine http://www.cstonecompanies.com/datacards/datacard.aspx?uid=44ae1195-5d89-4f4f-85fd05cc77e108b4 In BC, with select FSA 2,889 names x ($150 + $10 + $10) - $491.13 + 20% = $589.35

6

We cannot use the list 2 because the minimum order is 5,000 and there is no 5,000 names in BC. The tone of the mailing will be friendly, inviting individuals to try our hand-crafted organic juices available at their neighbourhood locations. We will focus on the benefits of juicing and what sets The Juicery Co. apart from competitors - their access to fresh, natural ingredients straight from their own local farm.

Individuals will be able to redeem the discount both online and in person. When they make a purchase online, they will be required to provide their personal information, including email and mailing addresses. When they redeem in-store, their personal information will be collected at the time of transaction. When they sign up for an online account to become part of our mailing list, they will receive a welcome email with a 10% off discount to be used towards their next purchase. This will help promote repurchase behaviour and drive future sales.

Display Ads We will use Google Pay Per Click Ads and Facebook Ads as part of our direct response campaign. This will allow us to reach “suspects� and look-alike customers, as well as individuals who have expressed some interest in our product or brand.

The Google PPC ads will mainly target individuals who are searching online for juice cleanses in the Vancouver area. Our ads will show up whenever individuals type in keywords related to juice cleanse in Vancouver, soup detoxes or The Juicery Co. The ad will consist of a call to action, a compelling offer and link to a unique landing page. With these display ads, we hope to widen our reach of customers, especially those that are interested in juice cleanses but have not purchased one from The Juicery.

Therefore, we are offering a discount on the product in order to remove the barriers to purchase which in this case would be the price and delivery charge.

We will implement a similar strategy through Facebook display advertisement. We will create actionable ads that are targeted to a specific audience. We will target individuals based on existing demographic information on their Facebook profiles, including gender and age, as well as their behaviours and interests. We will select for women ages 25 to 40 years old who have interests in juicing, fitness, health and wellness and any characteristics that would match our target audience. In addition, we will advertise to individuals who have engaged with our business on Facebook, such as liking our company page or commenting on our posts. We will create distinct landing pages in order to track where the individuals are coming from. Facebook display advertisement also has the ability to display rich, compelling images. We will test a variety of media, such as photos and videos, and content throughout the campaign. We can look at creating ad posts focused on the benefits of juicing or a demo-video of how the Green Juice is crafted. The ads will include an offer and a call to action to order a juice cleanse from Juicery Co.

7

These online display ads allow us to access potential customers and grow our existing database.

Individuals will all be prompted to sign up with their personal information when making a purchase.

This way we will acquire new email and mailing addresses to be used for future campaigns.

Marketing Automation In addition to display ads, we hope to capture individuals who have expressed interest in our products through visiting and browsing on our website. We will design a marketing automation plan that will disseminate a series of automatic communication based on a predetermined scoring system.

The criteria for marketing automation score are based on: - At least 2 views on certain product - When a customer leaves an item in shopping cart - At least 5 website pages visited - Social media likes, follows and shares; minimum 3 points of engagement For customers who have viewed any product at least 2 time, visited at least 5 web pages, have a minimum number of social media interactions with us or have left an item in shopping cart but did not completed the purchase, we will send an email reminder and a 10% off discount. We will also monitor individuals’ purchase behaviours over time. If an individual purchases a juice cleanse every 3 months, we will send out an automatic email reminding them that it’s time for their next juice cleanse. We will use this as an opportunity to upsell by offering 10% off when they upgrade from a 3-day cleanse to a 5-day cleanse.

OFFERS & TESTS Email Offers Offer 1 - Cross-selling Segment: Customers who often purchase cleanses - at least 2x in the past year Subject Headline: Your healthy start to the holidays!

Offer: Special promotion combo - purchase 1 soup cleanse + 3 day juice cleanse and receive $60 off.

Offer valid until December 24th Benefits: Improve overall health, receive more products for the value and save, save money enjoying the products they already purchase, detoxify body and feel better, get ready for the holidays CTA: Treat Yourself!

Offer 2 - Activating product trial Segment: customers who have not purchased a cleanse before but are regular customers Subject Headline: Treat your body this holiday season!

8

Offer: Purchase a 2 day soup cleanse or 3 day juice cleanse and receive 20% off plus free delivery.

Offer valid until December 24th.

Benefits: improve overall health, save money while enjoying a new healthy product, detoxify your body and feel energized during the busy holiday season and feasting, look good in your holiday outfit CTA: Treat Yourself Now! (See Appendix 1 for sample of Email) TEST Test: Half of the customers will be offered a $60 discount and the other half it will be offered a 20% discount.

Results: It is expected that the customer who are offered $60 discount will respond better than the ones offered 20%, even though it is the same amount of discount.

Mail Offers Segment: List rented from Cornerstone. The list will be segmented in 3 parts and the company will only use the data from people who live in the same neighborhood that have a physical stores - Main Street and surroundings, Kitsilano and North / West Van. With this segmentation the company will be able to reach their specific target audience.

Headline: Get healthy with The Juicery Co. Offer: Present the coupon in any store or use coupon code online and receive 20% off your first purchase of any juice orders or cleanses (monitored through signing up for the newsletter and account).Offer valid until December 24th. Minimum $30.00 purchase in store and online.

Benefit: Enjoy health benefits - look good and feel good; get ready for the holidays by energizing and detoxing the body, save money CTA: Use the coupon code to get a discount TEST Test: We will test different envelope headers - “A healthy holiday treat for you inside” or “Open now for a juicy treat” which has a stronger call to action.

Results: We expect the group receiving the envelope with “Open now for a juicy treat” to have a higher response rate.

Google Display Ads Segment: Suspect customers who have entered search keywords including and related to juice cleanse, health detox who are in the Vancouver area Offer: Purchase a 2 day soup cleanse or 3 day juice cleanse and receive 20% off plus free delivery.

Offer valid until December 24th.

9

Benefit: Enjoy health benefits and delicious juice, save money while enjoying a new healthy product, detox Call to Action: Order now

Organic Soup and Juice Cleanses - Order now and get 20% OFF Ad www.thejuiceryco.ca/ Cold Pressed Juices & Soups. 20% off + Free Shipping. Treat yourself!

Cleanses Juices

Shop Why cleanse?

3570 W 4th Ave, Vancouver, British Columbia - 4.9

20 reviews

Test: We will test different call-to-actions throughout the campaign. We will test “Order now and get 20% off” with benefit-oriented statement like “Kickstart your healthy lifestyle now” and “Say hello to a healthier you.”

Results: We expect that the “order now and get 20% off” will be the strongest CTA and garner more clicks.

Social Media Display Ads Segment: Customers who already like The Juicery Co page on Facebook and have had previous engagement with the brand; can also be expanded to include “look-alike” customers based on demographic information, behaviour and interests that are similar to our target audience Offer: Get 20% off + Free Delivery when you purchase a 2-day soup cleanse or 3-day juice cleanse.

Offer valid until December 24th. Minimum $30.00 purchase in store or online.

Benefit: Improve the overall health, save money while enjoying healthy products, look good and feel good during holiday season Call to Action: Click here and treat yourself! / Click here and treat a friend!

(See Appendix 2 for samples of Facebook Display Ads) TESTS Test #1: For half of the Facebook fans the offer will target individuals who are purchasing the juice for themselves. For the other half the offer, the call to action will be about treating or giving this product as a gift to their best friends during the holiday season.

Results: We expect that the customers that purchase for themselves will respond better since juices and food are a very personal choice.

Test #2: We will test different images throughout the campaign. We test images of fresh juices and vegetables against photos of individuals enjoying the products. We will also test photos against videos.

10

Results: We expect that an image of juices with beautifully plated vegetables would work best because it illustrates the story of the how the product is made. Individuals also respond well to bright, beautiful photography.

MEASUREMENT We will use the total campaign net profit and total Return on Investment (ROI) as major indicators to determine the success of the campaign. We will implement the campaign with organized tactics which can allow us to measure the data accurately. We will look at the different revenue streams generated by the store versus online as well as conversions through the various channels - Email, Print Mailing, and Display Ads. In addition, we will use the Customer Lifetime Value (CLV) and Customer Satisfaction & Retention (CSR) to inform our budget for the campaign as well as make strategic marketing decisions. We believe that customer satisfaction & retention are the cornerstones to extend or maintain the company’s position in this juicery market especially when considering the target audiences, including Healthy Women and Health and Fitness Gurus. Thus, company should keep measuring CSR with multiple indicators. (For example: frequency of buying products, the sentiment analysis of social media, and reviews).

E-mail We will use the following metrics: ● Delivery Rate: Number of emails delivered successfully. This indicator will tell the strength and health of our e-mail addresses. ● Open Rate: Number of e-mail actually opened based on how many e-mails were delivered, we will calculate the e-mail open rate and use this metric to gauge interest in our brand. ● Bounce Rate: Percentage of individuals who leave after viewing the landing page. This will help us inform our design decisions of the unique landing pages. ● Click Through Rate: How many people click the call to action or link on the e-mail. We will be able to measure the click-through rate through an exclusive landing page for this campaign.

This metric will indicate the interest in the content of our e-mail, the offer as well as the effectiveness of the Click Through Rate. ● Conversion Rate: The conversion rate will be measure based on how many people purchased the product through our direct e-mail offer. We will be able to measure this based on the sales streams directly linked from the landing page and the unique sales code.

Print Mailing (Neighborhood MailTM) We will use the following metrics: ● Total number of mail delivered: Returned mails are supposed to reflect to the data or list.

11

● ●

●

Response Rate: This is measured by the number of coupons or coupon codes used to redeem the promotion; in other words number of purchases of the promotion.

The total revenue from the mailing promotion: ○ This can be difficult to measure because people could buy more products that are not applied to the promotion when they use the coupons, but it would worth it to know.

However, we can do this online by tracking their purchase history.

Unit Mailing Cost: how much it cost to produce each piece of mail, including print and postage cost

In addition, we will use different colours for coupons to track where purchases were made versus the location of the individual's residence. This way we can measure the number of people who have actually made a purchase as well as where they have made the purchase. In addition to the personal information provided by the customers when they buy the juice products, we can gain further insight into the customer behaviours through the location of their purchase. For example, most of people who make a purchase via the promotion may live in North Vancouver, but most of them could be using red coupons mailed to residents in Main Street area. It implies that the customers may work near Main Street, and/or that they may drop by the physical store during their daily commutes.

Google and Facebook Display ADs We will use the following metrics: ● Click Through Rate: Based on the percentage of people accessing a particular webpage/landing page through a link. If the click through rate is low, we should consider changing or revising the keywords or keyword phrases which are adopted to the ad since keyword trend may change rapidly. We will also test different CTAs. ● Bounce Rate: Bounce rate indicates that how well the landing page or the website meet viewer’s expectation. ● Impressions and Reach: How many times the ad has appeared on someone's timeline and the number of unique people reached. ● Cost: Based on cost per click model; CPM (Cost per Thousand) is also used as a metric to calculate and compare costs of the ads. ● Direct Conversion Rate: A new visitor who come to the website via the ads and perform the desired action, in this case to purchase a juice product.

KPIs - Key Performance Indicators We will monitor the following throughout the campaign: ● Engagement with the brand such as ratings, recommendations and shares on social media, through channels like Facebook, Google and Yelp ● Social engagement and number of likes and comments in response to different content in the display ads

12

●

●

Page per clicks and views on certain pages of the website which provide insight into how individuals are behaving on each page and if the page is driving sales or capturing the customer’s interest Some social media platforms, such as Facebook, have a social media management tool that offer algorithms or filters to make it easy to gauge sentiment.

TIMELINE

13

APPENDIX Appendix 1

14

15

Appendix 2 - Facebook Display Ads

16