Viva plan

Viva App Business and Marketing Plan

Marketing 3510: Principles of Marketing

Professor Julian Saint Clair

1 May 2014

Viva is an app that encourages people to be spontaneous and lively. Viva is geared towards individuals who are seeking for something to do ​right now​. Viva’s concept is simple: provide consumers with new and exciting ideas for activities nearby at a discounted price, all the while making the world a better place by donating to Project Healthy Children.

Want to see what sporting events are in the vicinity? Viva! Want to find a deal at the hottest new restaurant this weekend? Viva! Want to see what musicians are performing in the area tonight? Viva!

With Viva, individuals can live in the moment­­anytime or anywhere!

Sophia French

Serena Haubrich

Lauryn Piemonte

Andriana Ricchiuti

Vanessa Sigman

Target Market Draft Marketing Research Summary The members of Group Two created a survey via SurveyMonkey, received responses from 81 individuals (between the ages of 18 to 65), and found that:

● A combined 68.29% of respondents checked “Somewhat Agree”, “Agree”, and “Strongly Agree” to the statement I often feel stir crazy and want to get out and DO something ● 28.05% of respondents picked “Somewhat Agree” to the statement “You always have your weekend planned days in advance ● When asked how much people would be willing to spend on an activity of their preference, 42.68% said $10 to $30 and 43.90% said it would depend on the deal

Given the data from the survey, talking to peers, and asking if they would be interested in using the app, we found that individuals were enthusiastic about the new idea. Many people stated that they always find themselves asking one another what they would like to do for the weekend or just the night, so we felt creating an app that listed activities or events at a discount would be beneficial.

Customer Profile A Viva customer is anyone, between the ages of 16 to 60, who have trouble making plans when looking for something to do. Viva is geared towards individuals who sit around, twiddling their thumbs, asking others what they feel like doing. According to research surveys, most people are looking to spend between $10 to $30 dollars on a spontaneous activity, but their price range would also depend on the activity as well. Users of Viva would be people who are interested in getting out and trying new activities or events related to their personal interests. For instance, one who prefers consistency over spontaneity would not necessarily benefit from an app showing new and different activities every day. Viva believes customers would rely on Viva when they are figuring out weekend plans or want to experience something new.

Positioning Matrix Product Brands

Viva

Groupon

StubHub

Gravy

Yelp

POP

Electronic way to find activities, portable, and easy to use

Electronic way to find activities, portable, and easy to use

Electronic way to find activities, portable, and easy to use

Electronic way to find activities, portable, and easy to use

Electronic way to find activities, portable, and easy to use

POD

Spontaneity​, local places, customized​, suggests ideas for you (no searching), mood­based, discounted, social, and ​big CSR component

Website, discounted deals​, geographically based, and coupons

Website, buy and sell tickets​, discounted and sold­out

Mood­based app​, activities, spur­of­the­ moment, and connect with social media

Heavy on customer reviews of locations and places

Primary Market

Young adults seeking more face­to­face interactions with others

Middle­income young adults

Adults interested in sports and music

Social Media All ages using young adults

Secondary Market

Generation Y

Generation X

Teens and young adults

Traveling adults

Usage Occasions

Upcoming weekends/free­ time

When searching Before major Before and Review for specific deals concerts and during nights unknown out businesses

Baby boomers and retired population

sporting events

(before and after)

​Perceptual Map

Associative Network

Positioning Statement To recent college grads and young adults (ages 18 to 29), Viva is an activity­suggestion app that aims to support a life filled with diverse, personalized entertainment based on mood, location, and a personal profile database, all while making the world a better place.

Strategic Overview

Parent Company Groupon is one of Viva’s biggest competitors on the location­based, discounted activity front. From Viva’s perspective, it would be more of a benefit to the business model to have Groupon be the parent company, rather than a competitor. This way, Viva would have instant access to all the businesses that want to provide a discount to potential customers through Groupon. A partnership with Groupon would jumpstart Viva’s growth and help penetrate the market quickly. Viva believes that since Groupon does not have a very interactive platform for their app yet, Viva would bring many components to the forefront: spontaneity, mood­based, ratings or peer evaluations, and giving back­­all aspects to an already very strong business platform.

Mission, Values, and Objectives Mission The ​mission​ at Viva is to motivate young adults to ​seize the day​ by taking advantage of local opportunities at a ​lower cost​­­in an effort to make the ​world a​ ​better place​.

Benefits ● VIP/Valued Customer ● Individualized and Customized ● Healthy & Balanced Lifestyle ● Affordable ● Fun from a Variety of Choices

Values ● Dependability ● Privacy ● Reliability ● Transparency ● Honesty ● Loyalty ● Originality

Vision The ​vision​ for Viva is to become the number one go­to mobile application for all discounted entertainment purposes.

SMART Objective

Viva’s goal is to become the number ONE lifestyle app in market share by the year 2017.

Explanation​: Viva’s largest competitors are Yelp, Gravy, LivingSocial and Groupon.

Because Viva is planning on partnering with Groupon, Yelp is Viva’s largest competitor.

Viva perceives it would be best to position first within three years among this and other competitors in the market­­especially since Viva has a great partnership with Groupon.

Corporate Social Responsibility (CSR) Viva is an app that creates joy for individuals while spreading good to others.

1. Cause­Related Marketing: For every ticket or purchase made on Viva, 1% of the total price will be donated to the Red Cross (Viva’s partnering non­profit organization) in order to help rescue disaster victims and provide supplies. Viva will promote their philanthropic endeavors through commercials, social media advertisements, and banners on websites (when downloading the app), as well as pop­up ads when customers are searching to buy tickets for activities.

2. Philanthropy: Viva’s philanthropy is Project Healthy Children, an organization that sends experts to increase the quality and nutrition in food fortification for children and pregnant mothers living in sub­Saharan Africa. Viva would contribute annually, as well as donate when customers purchase a featured deal (See #5 for more information). With every confirmation email, the company will send consumers a tip or suggestion informing them how they can support more fair trade and small businesses and where those businesses are relative to their location.

3. To promote unity, companies and large­scale organizations, will have exclusive options through Viva for team bonding and company unity.

4. Sets us a part from other apps:​ when a customer buys a deal from a business that has paid Viva to be featured (i.e. when “Adventure” is searched in someone’s area and a rock climbing business has paid to be the first to appear), Viva will give the difference between the discounted deal and the actual price to Project Healthy Children.

Portfolio Analysis

From the BCG below, one can see that Viva does not have any market share at the moment; however, the growth of location­based, discount apps is fairly high already.

Viva wants to boost Groupon’s growth and market share by partnering together.

PEST Political/Legal Factors ● Tax issues with discounts­­who pays the difference between tax on original price and tax on discounted price? ● ​Location­Based Services­­customers need to be given adequate notice and choice, with respect to these services so Viva does not run into lawsuits about privacy Economic Factors ● Coming out of a recession, people are still spending conservatively; however, with Viva, discounts push people to spend­­in turn, helping the economy ● Inflation is a factor: $20 in 2000 has the same buying power as $27.17 in 2014 (Taken from Bureau of Labor Statistics) Societal Factors ● Other popular apps that are already available: LivingSocial, Gravy, Yelp ● Generation Y are becoming young adults in an economy where saving is the norm. ● Component lifestyles are growing­­people no longer fit into one mold, but are adventurous and varied ● Not all consumers are technologically savvy and/or dependent Technological Factors ● Navigating on­the­go is more difficult ● Areas with poor wifi/connection will frustrate customers when the location­based service is not operating at 100%

SWOT Strengths​: ­ Innovation ­ Appealing to deal­seekers ­ Low expenses ­ Corporate Social Responsibility (CSR) ­ Variety in activities

Weaknesses​: ­ New App ­ Technology issues/software issues ­ Find qualified staff

Opportunities​: ­ Y Generations ­ Component lifestyles are growing ­ Acquisition takeovers from large companies ­ More companies will participate or be featured

Threats​: ­ Other Apps and competition ­ Lack of consistent cell reception ­ Not all consumers are technologically savvy ­ Not everyone has Internet/smartphone; technology barrier ­ Economic Recession

Brand Development Draft

PRODUCT Product Mix ● Dining Deals ● Adventure Deals ● Fitness Deals ● Sporting Events Deals ● Music Deals ● Family Activity Deals ● Markets ● Shopping Deals

Distinct Offering CSR: Viva takes pride in donating to their philanthropies. When a customer buys a deal from a business that has paid Viva to be featured (i.e. when “Adventure” is searched in someone’s area and a rock climbing business has paid to be the first to appear), Viva will give the difference between the discounted deal and the actual price to Project Healthy Children.

Full Product Features of Main Offering Viva is an app that encourages people to be spontaneous and lively. It is for all individuals seeking to get out and do something ​right now​. Viva is a brand of activity suggestions apps that supports a life filled with diverse entertainment activities because of its detailed and personalized proposals of spontaneous activities. Create a profile, enter basic information (including likes and dislikes), and Viva will find activities at discounted prices in the customer’s area. Rate the activities and get life going!

Cobranding Strategies Cooperative Branding​: Viva plans to partner with Groupon to bring their network of clients immediately to Viva. This way Viva is immediately connected to Groupon’s huge client base and they benefit as well because people will utilize their deals from a different and new source.

New Product Development (NPD) Extensions​: In the future, if Viva finds that one area of the app is being used more frequently (i.e. adventure sports or local concerts) then they can create a new app that is specifically focused on that area of entertainment.

Modifications ● Quality​: Viva needs to modify the software frequently to account for the possible bugs that may pop­up during usage. ​Social media management​ will be essential throughout the introductory and growth stages­­monitoring chat forums where people have questions about the app or bugs they may encounter. ● Style​: It will be important to have an interesting and dynamic user interface that is unique, yet still easy to use and understand for consumers. ● Function​: Viva needs to pay attention to the functions of the app that people are not using in order to identify why they are not using a function (i.e. reviews). For instance, a customer may not be able to find where it is on the app.

Repositioning​: Since repositioning is typically due to outside factors (as seen on a SWOT analysis), then if one aspect of Viva is not being used as often (i.e. people are not using our reviews tab and clicking out of Viva to go to Yelp to find reviews), Viva will start to email users after their experiences to ask, rate, or review the service. This sort of modification would be a business strategy modification, rather than an app modification, but would nonetheless boost app participation in targeting the critic social media users.

Viva can also refer to the Ansoff’s Matrix and launch a dating app idea in association with Viva.

PRICE Pricing Objective Sales­Oriented Pricing​: Free to secure market share. ● Viva will make a profit based on monthly payments and advertisements from companies. When a company would like to feature a deal on this App, they can choose a package ○ Basic: $39.95 and allow them to list one deal monthly ○ The packages will increase in price based on the number of deals offered monthly ● Viva will receive 5% of every purchase made through the App of the deal. ● Viva will also profit when companies advertise on the App. ● CSR Component: When a company pays to be featured at the top of the list of deals, Viva will give the difference between the discounted deal and the actual price to Project Healthy Children. Viva values CSR as an important aspect of our company.

Pricing Strategy Status­Quo Pricing​: Other Apps similar to Viva are offered for free (i.e. Yelp and Stubhub), which is why Viva will be free as well. They will be paying for the purchases

they make on the App, so Viva does not want them to pay for the initial download. This is the safest route to long­term survival, since Viva is in the introduction stage of the Product Life Cycle.

Pricing Tactics Discount Pricing​: By using value­based pricing, Viva would offer deals at the price level that seems to be a good price compared to competitors. Value­based pricing is more cost effective when two items/scenarios are being compared. In other words, if Viva offered concert tickets at a lower price than StubHub’s prices then Viva’s deal would be less expensive and reasonable.

Seasonal Discounts​: When an activity is out of season, Viva (in association with an activity’s retailer) will strive to offer a lower deal. For instance, if an individual would like to go to the mountains in the winter (when many tend to go in the summer) then they would be offered a discount.

Functional Discounts​: If users refer five friends to use Viva for their next experience, they will receive a $10 credit towards their next Viva experience.

PLACE Channel Choice Retail Channel​: connect Viva users to the Viva app through the app store, which would then connect them to retailers discovered through the app itself.

Distribution Intensity Level Intensive Distribution Level​: caters to the needs and preferences of a wide pool of users, offering them a broader choice of options to participate in.

Non­Traditional Distribution Channel Viva Hot­Spots​: place Viva in different locations worldwide, allowing people to take pictures through the hot spot (documenting their journey) which would then load onto their app and allow them to check in. ● Connecting this to their Facebook/Instagram/Twitter so customers can share their Viva experience with others ● Incentive to visit these different Viva hot­spots is awarded by a point system; after an allotted number of points users can redeem their points as a credit towards their next Viva experience

PROMOTION Identify and Justify Product Advertising Type

50% Social Media: Our target group is a major group of social media users 25% Advertising: Digital advertising YouTube and Pandora radio 10% PR 10% Personal selling and Sales Promotion: Hotspots

Initial Advertising and Social Media Campaign Product Advertising ● Pioneering product advertising Social Media: Facebook, Instagram, Twitter

Campaign Objective, Benefits highlighted, Appeal(s), Execution(s) Objective​: Viva’s objective is to target young adults, specifically college­aged and recent college graduates, aged 18 to 29 years. Our goal is to become the number one lifestyle app in the market share by 2017, giving us three years to achieve this goal.

Benefits ● Customization → VIP Feel ● Variety Activities → Healthy & Happy ● Discounts → Saving Money Appeals ● Easy ● Healthy ● Pleasurable ● Convenient Execution ● Slice of life ● Testimonials

Identify and Justify Media Mix and Media Scheduling Media Schedule​: Pulsing→Viva would like to mix continuous and flighted because the app would stay fresh in the minds of the target market. Hence, Viva would advertise continuously, also using flighting schedule at peak seasons (i.e. Music festival season or the beginning of tomato season for farmer’s markets).

As stated before, because Viva is an app, so heavy technology use as a form of advertising and marketing is best when trying to reach potential consumers who are already skilled in the technology field and will be more likely to purchase the product. ● Digital and broadcast advertising will use an exciting, pleasant, and motivating mood through testimonials and video clips on YouTube and Pandora because our target market is already using these technologies

● Social media promotion will use the appeals listed prior to portray the same benefits of Viva through ads, banners, and other popular social media forms ● Viva will put a small portion of promotion funds towards print ads for magazines, such as Cosmo, People, Glamour, Vogue, GQ, and Sports Illustrated; because these magazines are geared towards Viva’s target market, it will spread the word of Viva directly to the target group

24­Month Timeline ● Twelve Months Marketing Research​: Viva plans to do twelve months of ongoing marketing research because of the changing of seasons and activities that people tend to engage in during the year. Viva needs to know when people are most likely to spontaneously go on a hike or to a sporting event or to a restaurant. Viva believes that these may change with the seasons, so continuing to do research for a full calendar year would be beneficial. ● Two Months Raise Financing​: It takes time to build relationships with businesses that want to use our app as a means for gaining more business. Viva may not need the entire two months for partnering with Groupon (who already has a very large client­base) because they will provide Viva with many consumers already in the market. ● Three Months Develop App​: Developing a location­based app with only one person working on it and it being a “simple app” would take about a month, according to an LMU Computer Science professor. However, since Viva plans to partner with Groupon, Viva can “borrow” Groupon’s developers and have multiple people working on the app.

Therefore, the complicated aspects of Viva will mean it will take longer for the app to be developed, but no more than three months. ● Three Months of Beta Testing & Concurrent Promotional Planning​: Taking three months to promotionally plan would be ideal for Viva would not need much more than to start getting Viva out. Once Viva does a little promotional planning, a majority of the beta testing and advertising will be word of mouth and chat forums to identify problems and verify what needs improvements. ● Twelve Months Implementing Promotional Plan and Evaluating Results​: Viva would need about a year to review to see whether or not the promotional plan is successful and modify it based on results. Because every season would have passed, it would be crucial to look at the app’s activity around holidays, the weather, and peak travelling times.

KPIs and Measurement Viva believes the number of downloads will be a large performance indicator in measuring the outreach of how many people are hearing about Viva and wanting to try it.

Another key indicator will be the follow­up initiative with the companies that advertise their services or activities on Viva. Also, Viva will set­up a system to figure out how much business is being driven from the app by providing surveys to all customers asking how they heard about Viva and whether or not they are pleased with the services offered.

Executive Summary

Mission Statement ● To motivate young adults to ​seize the day​ by taking advantage of local opportunities at a lower cost​­­in an effort to make the ​world a​ ​better place ● Viva’s ​vision​ is to become the number ONE go­to mobile application for all discounted entertainment purposes Primary SMART Objective ● Viva’s goal is to become the number ONE lifestyle app in market share by the year 2017 Positioning Statement ● To recent college grads and young adults (ages 18 to 29), Viva is an activity­suggestion app that aims to support a life filled with diverse, personalized entertainment based on mood, location, and personal profile database, all while making the world a better place.

Competition Overview

POD

CSR Profile­Based Discounts

Mood­Based

Solely for tickets

Customer Reviews

SWOT Strengths ­ Innovation ­ Appealing to deal­seekers ­ Low expenses ­ CSR

Weaknesses ­ New App ­ Technology issues/software issues ­ Find qualified staff

­ Variety in activities Opportunities ­ Y Generations ­ Component lifestyles are growing ­ Acquisition/takeovers from large companies ­ More companies will participate

Threats ­ Other Apps and competition ­ Lack of consistent cell reception ­ Not all consumers are technologically savvy ­ Technology barrier­­economic recession

Marketing Mix Overview

Product Mix ● ● ● ● ● ● ● ●

Dining Deals Adventure Deals Fitness Deals Sporting Events Deals Music Deals Family Activity Deals Markets Shopping Deals

Point of Difference ● Mood ● Location

● Age ● Corporate Social Responsibility (CSR) ○ Viva donates the difference between discounted deal and the original price to Project Healthy Children Price Sales­Oriented Pricing Objective = FREE Profit ● Monthly payments and advertisements from companies ● Basic package will be $39.95 and allows them to list one monthly deal ■ The packages will increase in price based on the number of monthly deals offered ■ Viva will receive 5% of every purchase made through the deal Advertising ■ Viva will donate the difference between the discounted deal and the actual price to Project Healthy Children Status­Quo Pricing Strategy​ → all competitor apps are free as well. ● Value­Based Pricing Tactics ● Seasonal Discounts: allow Viva to lower prices once the product is deemed “out of season” ● Bundling: Viva will strive to offer bundled experiences ­­ for example a wine and cheese tasting paired with a hotel stay ● Functional Discounts: refer five friends and receive $10 in credit towards your next Viva experience

Place Retailer Channel​: a model source to connect consumers with a variety of different retailers Intensive Distribution Level: maximizes participation so to cater the needs and preferences of various users Non­Traditional Distribution Channel​: a retailer channel designed to separate Viva from the competition ● Implement Viva Hot­Spot ○ Place Viva hot­spots in different locations worldwide­­allowing individuals to take pictures (documenting their journey), load their photos onto Viva, and check­in to their location ● Incentive: after a certain number of points, users can redeem their points as credit towards their next Viva experience Promotion

Appeals ● Fun ● Health ● Leisure ● Pleasure ● Convenience ● Philanthropy

Benefits ● VIP/Valued Customer ● Individualized and Customized ● Healthy & Balanced Lifestyle ● Affordable ● Fun from a Variety of Choices Executing the Message ● Mood ● Slice of Life ● Lifestyle ● Demonstration ● Testimonial Media Types ● Promotional Cards and “Featured on VIVA” Stickers ● 60 to 75 Second Advertisements on YouTube and Pandora ○ https://www.youtube.com/watch?v=­q6QEBdXb8Q ● Encourage Word of Mouth Media Schedule ● Pulsing Owned Media ● Instagram: @vivaapplication; #liveinthemoment ● Facebook: https://www.facebook.com/pages/Viva/646653468722599 ● Twitter: @vivaapplication Earned Media ● Word of Mouth ○ Blogs, personal tweets, and reviews Paid Media ● Banner Advertisements ○ Websites and social media