This submission outlines a direct marketing campaign conducted by students at St. Lawrence College for a real client--Blueprint Clothing Boutique in Kingston, Ontario.
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Blueprint - Direct Marketing Campaign
1. Final Campaign Analysis
By
Audrey Fortin
Joshua Hartson
Erica Mason
Mustapha Makri
A paper submitted to
Lindsey Fair
in partial fulfillment of the requirements
of MCOM 30
April 25, 2013
2. The Client
1. Concise description of business to show understanding of client.
Blueprint is a clothing retailer in downtown Kingston. The store boasts an urban
style and carries fashions that are considered “everyday trendy.” The boutique
carries brands like French Connection, Seven, J Brand, Citizens of Humanity,
Lacoste, Vero Moda, and Fred Perry, just to name a few. The brands carried tend
to reflect a casual, but modern fashion that work for both men and women.
The target market of Blueprint included men and women aged 18 to 30 who enjoy
a great selection of trendy clothing and love the downtown experience. Students
and young business professionals within the above age group live downtown and
enjoy the urban feel it provides.
Blueprint does not do traditional marketing; rather, sales promotions, store
signage, and networking opportunities are used in order to build brand
awareness. The owner, Cyndy Gibson, has experimented with different events run
through Downtown Kingston and has had some success in the past.
2. Client goals as described during the client briefing.
From the beginning, Cyndy was very forthcoming with the objectives and goals for
the direct marketing campaigns. The following were her main objectives:
• To generate more revenue through sales
• To increase store traffic from Monday through Wednesday
• To encourage male shoppers to buy
• To promote multiple item purchases
The direct marketing campaign was given no budget; therefore, it needed to be
done with little to no cost. Cyndy was looking for a campaign that was creative,
but also resonated with her target market.
3. The Target Market
1. Summative description of the target market.
The original target market for our Blueprint campaign was young men and
women in the Kingston area. We were targeting both sexes to not only appeal
to a younger demographic (especially with Queens’ campus being so close to
the store location) but to also try and appeal to couples and attract more male
shoppers.
After creating, handing out, and receiving results from the first draft of our survey
we came to the conclusion our demographic was too broad and we would have to
narrow it down to a more specific and well defined demographic.
We then decided that a more appropriate target would be young business
professionals in the downtown Kingston area. We chose to target young business
professionals because we felt they matched Blueprint not only location wise but
they match the type of clothing Blueprint has to offer. Moreover, their income is
more in tuned with the brands offered at the store.
2. Explain the segments chose and why.
There are several segments within our target market. We wanted to target both
male and female young business professionals in the downtown Kingston area as
they are working within a short distance from Blueprint. In relation to the fashion
industry, we wanted our target to be those who are fashion forward and have
an urban style, but also enjoy the casual side to fashion. By asking questions
like where people shop and what brands they are interested in, we were able to
decide if Blueprint was right for each segment.
3. Completed list in proper field type format showing segments and updated
at completion of campaign.
See Attached.
4. The Big Idea
1. Describe the overall idea, how it came to be and how it meets the goals of
the client.
The idea behind our Blueprint campaign was to produce a direct mail piece to not
only appeal to our target but to intrigue them and create a feeling of exclusivity. To
do so a miniature briefcase mail piece was made to fit with the idea of business
professionals. Each briefcase was hand delivered to each person on the list.
Inside, each briefcase contained two business cards, one for the person on the
list and the other, blank card, for a friend. Once the business card is redeemed at
Blueprint Clothing Store, the person receives 20% off their purchase followed by
an entry into a draw to win either a $50 gift card or a pair of tickets to The Grand
Theatre.
The idea for the miniature briefcase was inspired by a professional’s lap top
bag or briefcase. The case resembled something that Herschel would create (a
popular brand carried at the store), which would give a taste of some of the styles
found at Blueprint. The direction of the campaign met the goals of the client as
it not only increased the database by having a possible referral, but it increased
awareness of the brand.
5. The Message
1. Explain the offer and why it was chosen.
The particular offer was valid from April 1, 2013 to April 19, 2013; the offer
included a 20% discount for every purchase of $75 or more. In order to qualify
for the offer, the young business professional would need to bring in a filled-in
business card with all their contact information. The business cards were then
entered into a draw for a pair of tickets to see ‘Africville Suite’ at The Kingston
Grand Theatre accompanied with a $50 Blueprint gift certificate to help pay for an
outfit for the night out.
The particular offer was developed exclusively for local business professionals
who help fuel economic development in Kingston’s core. A discount offer was
an appropriate offer for this specific target because it gives them the feeling of
exclusivity. The offer was unique since there are rarely offers or promotions that
are designed solely for business professionals, and by executing that offer we are
giving more value and support to Kingston’s professionals.
The offer was appropriate because Kingston is a well-connected town with many
young professionals in the target area, word of mouth is a great way to advertise
and Blueprint wants consumers talking about their products.
2. Explain what appeal you chose and why.
The empathy appeal was used to show that the retailer knows their customers
work hard, and that they are willing to provide a discount so the shopper can
“treat” themselves without feeling guilty for spending money.
3. Explain what action you were trying to generate.
The main objectives our campaign tried to attain were as follows;
• To generate revenue
• To drive traffic into the store
• To convert potential or occasional Blueprint customers into regular
customers
6. The Channel
1. Explain the channel chosen and why.
The primary channel chosen for the direct marketing campaign was print direct
mail. This method was chosen due to the fact that print mail has proven response
rates as well as our contact list is a house list that has been generated by surveys
completed by Kingston’s young business professionals. A print campaign with a
creative, unbeatable offer is sure to attract any consumer, therefore by creating
a piece that is different from the rest will ensure the recipient will not only use,
but appreciate and redeem the offer. Direct mail has the ability to make contact
with the prospective customer. The piece that has been created for Blueprint
is addressed, and specially delivered, by using these techniques it allows for
responses to be measured easily and accurately.
As a secondary channel, email was used as a reminder tool. Our target market
of young business professionals use email daily and therefore, the channel is
thought to be a great way to contact our list. Timing strategies were used when
emailing the campaign in order to remain top of mind but not appearing as spam.
Mail Chimp was used as our delivery method for our email campaign, as the
website provides detailed campaign reports outlining the number of times opened,
click rates, bounce backs, etc. This information was useful when analyzing
analytics and results.
As Blueprint is a modern clothing boutique, it is apparent that both traditional and
new marketing strategies are needed, meaning both channels were equally as
important in achieving results within the campaign.
2. Describe how the channel will be used.
The direct marketing piece was delivered by hand on April 2, 2013. The people
listed on the database are all young business professionals working in the
downtown Kingston area. By hand delivering the miniature briefcase/business
card “flyer” it becomes easier to ensure each piece is sent to the right address,
and it also gives a personal flare, which adds a special feel for the buyers. Also,
by choosing the method of hand delivering it was safe to assume the mail piece
will not get damaged in its travels—a minor but key thing.
The secondary channel, Mail Chimp (email) will be implemented based on a
timing strategy. As the campaign officially begins April 2, 2013, the email blast will
be sent to the list as a reminder tool four days after the campaign has launched.
7. The Channel Continued...
The email will have all pieces of the offer, making it quick and easy for those to
print and redeem the offer. This will also be helpful on the off chance that a few of
the contacts did not receive the direct mail piece but additionally provides the list
an opportunity to send the offer to any friends and family. Seven days before the
end of the campaign, an official countdown reminder email was once again sent
to the list. This email was very short and acted as a final method to enforce the
urgency of the offer.
3. Highlight the industry standard for redemptions within that channel.
Direct mail campaigns have varying response rates, however, the typical
response rate is 0.9%, a high response rate is considered 1.9% and a low
response rate is known to be 0.12%. Although these numbers appear to be low,
direct mail campaigns are responsible for over $547 billion worth of sales in
the United States per year. In order to increase the amount of responses, it is
suggested that a house list is used instead of a prospective list. House lists will
provide a database of current and previous customers and therefore will increase
the likelihood of a response. When using special delivery or addressed direct mail,
the response rates increase. The typical response rate is 1.2%, the high response
rate is 3%, and a low response rate is considered 0.05%. With addressed mail,
the consumer immediately feels less risk and more trust.
Industry standards for redemptions for an email campaign are all based on the
proper timing of the campaign. The email must be specific, to the point and eye
catching for the target market. The email campaign is normally the first thing
that draws the consumer in, thus, a creative offer must be well thought out. An
average email campaign has a 19.47% open rate, 6.64% click-through rate,
1.73% conversion and a mere 0.77% unsubscribe from email campaigns. Email
campaigns are solely based on the idea of click, pass on and buy.
.
13. The Results
1. Describe metrics that would be tracked and how they were tracked.
At the beginning of the campaign we decided to track the average dollar by sale
which would help to determine how much a 20% discount would cost from missed
opportunity in sales prospective. Also, we wanted to track the cost per transaction
to determine the true cost of the campaign. And finally we wanted to know the
total profit from the sales after the promotion is done; however, since there were
no redemptions from the promotion, it would be hard to determine the true lifetime
value of the campaign. In terms of response, the emails sent out through Mail
Chimp were viewed. Two emails were sent, one was four days after the campaign
was launched, and the other was one week before the end of the campaign.
The metrics from the Mail Chimp report indicated how many targeted customer
opened the mail and how many times they opened it (18 from 37 opened the first
mail 45 times, and 15 from 37 opened the second mail 18 times). As a result, the
only metrics to be determined are the expenses of the campaign and the number
of responses responses, which is the number of times the mailer was opened.
The numbers for the total generated revenue and the offer-generated revenue
cannot be determined with missing information.
2. Describe any noticeable differences before and after the revisions were
done.
Ten days after the campaign was launched, we had some kind of feed back from
Cyndy about the primary results of our campaign. We were told that no one had
redeemed our coupon so far so we had a meeting and we decided to send a
second mailer to the 37 targeted customers through Mail Chimp. The main goal
of the second mail was to remind them about the offer and encourage them to
go and redeem their exclusive offer by creating a sense of urgency. However,
the results of the second email were lower than the first in terms of the rate of
response. Only 15 people had open the mailer while 18 opened it the first time,
and the mail was opened only 18 times; whereas, it was opened 45 times the first
time.
14. The Results Continued...
3. Estimate versus actual numbers of the appropriate analytics that highlight
the benefit of this campaign. (CPP, CPR, CPS, GP, BLP if possible, LTV, and
ROI).
Since we didn’t have any redemptions of the offer there were no sales generated
from the offer. The only metrics that can be provided are CPP and CPR.
1- CPP
The direct campaign expenses:
• The cost of one briefcase is $0.88, and we printed 50 briefcase. That
means that the total cost of the briefcases is $44.
• The cost of one business card is $0.1, and we printed 100 card. That
meansthat the total cost of the cards is $10
• Miscellaneous costs: $30
The direct campaign expenses is 44+10+30 = $84
The number of pieces sent is 37.
As a result, the CPP=84/37= $2.27
2- CPR
The direct campaign expenses divided by the number of responses
The direct campaign expenses = $84
The number of responses (how many times the mailchimp was opened) = 18(the
first mailer)+ 15 (the second mailer) = 33
.
As a result, the CPR = 84/33 = $2.54
4. Include metric and analytic reports available through tools used.
See the following charts and tables.
17. The Analysis
1. Determine future recommendations based on results for the client to du-
plicate, discontinue or expand this campaign. Taking into consideration all
milestones, sections, timelines, budgets and results.
The direct marketing campaign put forward had some success as well as some downfalls.
The concept was very creative and unique. The idea of the briefcase intrigued the recipients
enough to open the mailer, but not to use the coupon inside or take action. The briefcase
concept could be easily duplicated by the client if they were to do another direct mail or email
campaign.
In retrospect, there are two major areas that could have been improved upon, which are the
list and the offer. The initial list was developed surveying 25 college students at St. Lawrence
College, and although they were within the age of the target market, they didn’t match the
“young professionals” we were going for. A second list was created using a survey as well;
however, that survey was sent out and shared via email using connections that each team
member of JEAM had established during placement. The survey yielded approximately 55
responses and gave us crucial data. The list allowed us to filter out those who were not young
professionals or people who do not shop/live in downtown Kingston. The final list included
people who were older than the defined target market and who did not live in the downtown
area; therefore, creating a disconnect between the client and the new potential customer. The
offer was perhaps a little too generic and the recipients did not know how to respond. For some
of the people on our list, shopping downtown requires a lot of time (parking, walking, traffic,
etc.), and if they do not know the product they may not venture downtown to take a look. The
offer was just a standard offer and did not have a creative flare. Perhaps something simpler
may have driven customers into the store.
The creative design of briefcase was executed just how it was imagined. Many recipients
commented on how “cute” or “creative” the briefcases were. The Blueprint brand or store
location information was not that prominent on briefcase which may have hindered the
campaign’s success.
Timelines were definitely a factor in our direct marketing campaign. Creating a list took longer
than we had anticipated. If we had waited longer for survey results, we may have got the
information for people who would have fit the target market better. Moreover, the final decision
on what type of offer to use was made quickly. Brainstorming more as a team would have
brought a stronger offer.
Budget was not an issue for this campaign as there was only a cost to printing materials.
Because no offers were redeemed there was no lost opportunity in sales for the store.