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)
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
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
$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