One Martial Arts | Direct Marketing Plan

ONE MARTIAL ARTS ONE PLACE, ONE GOAL

SUMMER 2014 MKT 321 SF1 DIRECT & DATABASE MARKETING

TO DAY’S AGEN DA 1.

2.

3.

4.

5.

6.

SITUATION ANALYSIS GOALS STRATEGY TACTICS IMPLEMENTATION BUDGETS & FINANCIALS

8.

POTENTIAL FOR SUCCESS EVALUATION

9.

FINAL THOUGHTS

7.

SITUATIO N ANALYSIS

OM A OVERVIEW • Positioning: Highest quality of service • Current Product / Price

Adult Adult Martial Art: $19.99 3-Classes Adult Kickboxing: $129 Unlimited $840 60-Classes $540 30-Classes Kids Preschoolers Love Little Ninjas: One-time Payment Kids Karate: $69 for 4 weeks Day Camp: $350/week for 1st camper; $325 2nd camper Karate Birthday: $299

DISTRI BUTION/PROMOT ION Digital (PPC)

Website Print Ad (Mag,Flyers)

CONSUMER

In-Store

(Displays,Posters, Banners)

Email

Telephone OMA

In-Person

(Promotional Offers)

Social Media

(FB, G+, Twitter, YouTube, Yelp)

Direct Mail (Postcards)

Digital

(Groupon, LivingSocial)

MARKET TREND • Sports-Coaching Industry

- $6 billion; 2% - Martial Arts for kids, family members: ✴

✴

50% of revenue - kids segment Healthy, self-discipline, socializing, bonding time

• Gym, Health & Fitness Clubs Industry

- $7 billion; 3% - Kickboxing for Adults: ✴ 75% male, 25% female, regular exercisers ✴

Physical strength, weight control, stress free Source: IBISWorld, Statista, Mintel

TARGET G ROUP ANALYSIS • Current customers:

54% • Avg. household

income: $113K • 94116: growing

income by 17% • Kickboxers: ages 18-34 • Martial arts: parents

with kids between 3 -17 Source: Business Decision, ReferenceUSA, Examiner

COM PETITIV E ANALYSIS • Direct Competitors: 9 businesses •

Indirect Competitors - Camp related activities providers, recreational & sports instructions

• Current marketing activities (direct competitors)

- Social media, PPC, flyers, in-store display, online inquiry - Strengths:

- Weaknesses:

✴

International/national chain

✴

No day camp

✴

Tournaments

✴

No family program

✴

Specific training Source: ReferenceUSA, Hapkido USA; St Clair’s Teakwondo; Charles Gracie Jiu Jitsu academy, Doc-Fai Wong center

SWOT S Financial capability 2. Active DM campaigns 3. Accessibility to consumer database 4. Various offers and programs 1.

W No maintenance on current database 2. No monitoring on campaigns 3. Failure to cooperate with 3rd party vendors 4. No e-commerce 1.

O Limited competitors using DM 2. Rising average income per capita 3. External list rental 4. New locations 1.

T Mature business and industry 2. Mailbox clutter and junk mail 1.

GOALS

GOALS • To retain existing members • To acquire new members

Current #s

Projected #s

% increase

Adult Kickboxing

90

108

20%

Kids Karate

500

600

20%

Kids Camp

27

40

50%

Family Bonding

-

10

-

Online Inquiry

440

528

20%

STR ATE GY

STRATEGY • Communicate USP

- None discount focus - Brand value - Creativity - Emotionally appealing • Acquire Quality Customers

- Rent new lists - Advertise in magazine - Limited promotional offers • Retain Existing Members

- Engagement - Cross-selling - Special deals

TACTICS

ACQUI SI TION OFFERS

Adult Kickboxing

Free boxing gloves

Kids Karate 4 weeks $69 + Free uniform

Kids Camp

Family Bonding

$50 off for 1st week + Free uniform

$350 unlimited + One set -------------$299 unlimited + Free gym bag

NEW

RETENTION OFFERS Adult Kickboxing

Kids Karate

Kids Camp

Free gym bag

Free gym bag

Free gym bag

+ Sweepstakes

+ Sweepstakes

+ Sweepstakes

(30) (30)

(30) (30)

Price Discount Up To $150 Free Classes Trial for Friends / Sibling Karate Birthday Party

(30) (30)

ME DIA LIST Adult Kickboxing Direct Mail Magazine Email Website Poster

Kids Karate

Kids Camp

Family Bonding

•Fitness Magazine • Parenting Editorial + Geographic Select + Zip Select • Parent with Preschoolers + Zip Select X • Bay Area Parent ● ● ● • Rental List

• House List

• Everyone Source: NextMark, SRDS

DM CREAT IVE

OUTSIDE

INSIDE

EM AIL & POSTER CRE ATIVES

EMAIL

POSTER

IM PL EMENTATION

2015 CIRCULATION P LAN

Adults

Kids

Jan

Feb

Mar

Apr May Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr May Jun

Jul

Aug

Sep

Oct

Nov

Dec

DM Mag Email Web Poster

DM Mag Email Web Poster

BUD GETS & FINANC IALS

BUDGET ALLOCATION

Retention 16%

Adults 18%

Kids 82%

Total budget: $52,000

Acquisition 84%

ME DIA PLAN OVERVIE W Direct Mail Pieces Response Rate Orders Quantity

20,000 1.75% 350

Lists

$120/$200 CPM

Print

$0.09

Postage

$0.65

Creatives

$1,200

Posters Magazine Email Website

$800 $3,700 $500 $1,400 Source: USPS, UPrinting, DMA

COSTS DETAI LS Adult Kickboxing

Kids Karate

Kids Camp

Family Bonding

Total

%

Offer Cost

$3,960

$4,118

$9,374

$9,450

$26,902

51%

‣

Variable Cost

$4,274

$4,474

$4,474

$4,474

$17,694

Fix Cost

$1,080

$2,233

$2,233

$2,513

$8,058

Total Marketing Cost

$5,354

$6,706

$6,706

$6,986

$25,752

49%

‣

Total Cost

$9,314

$10,824 $16,080 $16,436

$52,654

100%

% of Total

18%

21%

31%

31%

‣

‣

‣

‣

100%

PRI CING

Pricing Avg. Monthly Fee Avg. Months of Membership

Adult Kickboxing

Kids Karate

Kids Camp

Family

$129

$69

$1,400

$350

6

12

1

6

POTENTI AL FOR SUCCESS

P&L FOR 2015 Adult Kickboxing Kids Karate Response Rate

Kids Camp

Family

Total

2%

2%

2%

1%

1.75%

100

100

100

50

350

$77,400

$82,800

$140,000

$105,000

$405,200

$0.00

$0.00

$0.00

$0.00

$0.00

Net Sales

$77,400

$82,800

$140,000

$105,000

$405,200

‣

COGS (20%)

$15,480

$16,560

$28,000

$21,000

$81,040

Total Variable Cost

$15,480

$16,560

$28,000

$21,000

$81,040

‣

Variable MKT Cost

$8,234

$8,592

$13,848

$13,924

$44,596

Fixed Marketing Cost

$1,080

$2,233

$2,233

$2,513

$8,058

Total Marketing Cost

$9,314

$10,824

$16,080

$16,436

$52,654

Overhead (50%)

$38,700

$41,400

$70,000

$52,500

$202,600

Total Fixed Cost

$48,014

$52,224

$86,080

$68,936

$255,254

Profit/Lost

$13,906

$14,016

$25,920

$15,064

$68,906

CPA

$93

$108

$161

$329

$150

ROMI

7.31

6.65

7.71

5.39

6.70

Avg. CLV

$132

$141

$238

$357

$197

Orders Gross Sales Returns

‣

‣ ‣ ‣

EVALUATION

ME ASUREMENTS • What to measure

- Number of Existing customers retained New customers acquired New online inquiries Visitors of the website ✴ ✴ ✴ ✴

- Total revenue generated by each group & services - Response rates of each media channel • How to measure

- Implement tracking mechanism (Google Voice & Front Desk) - Train staff to maintain database - ROMI & CPA

FI NAL THOUGHTS

FI NAL THOUGHTS

• Conservative projections • Continuous database development & maintenance • On-going measurement & testing

REFE RENCES • Bay area parent peninsula (2014, January). Consumer direct marketing list. Bay area parent peninsula/ San Francisco/ Marin edition. Rate and policies. Retrieved from SRDS databases.

• Business Decision (2014). Geography zip code- Demographic and Income Profile. Retrieved from Business Decision databases.

• Business Decision (2014). Geography zip code- Demographic and Income Profile. Retrieved from Business Decision databases.

• Charles Gracie Jiu Jitsu academy (2014) Retrieved 2014, August 05 from http://www.charlesgracie.com • Doc-Fai Wong center (2014) Retrieved 2014, August 05 from http://plumblossom.net.

• Direct marketing association (2010, page 10). The power of direct marketing. Retrieved from https:// elearning.ggu.edu/pluginfile.php/481185/mod_resource/content/0/FinalPODMRMC.pdf • Hapkido USA (2014) Retrieved 2014, August 05 from http://www.hapkidousa.com • IBISWorld (2014:a) Sport coaching in the US Industry report. Retrieved from IBISWorld database.

• NextMark (2014, July 1). Parents with preschooler mailing list. Retrieved from http://lists.nextmark.com/ market;jsessionid=5712BB686E05FD8D13C958AF048D231E?page=order/online/datacard&id=341271

REFE RENCES • Parenting Editorial. (2013, June). Consumer direct marketing list. Parenting editorials-selects and count.

Retrieved from SRDS databases.

• Statista (2014:a). Martial arts equipment wholesale sales in the U.S. from 2007 to 2013 (in million U.S. dollars).

Retrieved from Statista Database.

• Statista (2014:b). Number of participants in cardio kickboxing in the U.S. from 2006 to 2012 (in millions).

Retrieved from Statista Database.

• Statista (2014:c). Number of participants in martial arts in the U.S. from 2006 to 2012 (in millions). Retrieved from Statista Database.

• St Clair’s Teakwondo (2014) Retrieved 2014, August 05 http://www.stclairstkd.com/home.html • United States Postal Service (2013, January 27). Special Standards-Destination entry discount. Retrieved from http://pe.usps.com/QSG_Archive/PDF/QSG_Archive_20130127/qsg300/Q705f.pdf • UPrinting (2014) Brochure printing. Configure and price. Retrieved from http://www.uprinting.com/ • United States Postal Service (2014:a, January). A customer’s guide to mailing-domestic mail manual. Retrieved from http://pe.usps.gov/cpim/ftp/manuals/dmm100/dmm100.pdf.

THANK YOU