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Foursquare 2013 Marketing Plan

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Spring 2013
Simmons School of Management
Simmons College

Published in: Marketing, Business
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Foursquare 2013 Marketing Plan

  1. 1. Sakheni Dlamini, Fatima Manning, Joanne Morelock, Andrea Wong
  2. 2. Agenda Background Critical issues Brand strategy Financials Implementation schedule Monitoring and control
  3. 3. Background  Product Description  Market research  Situational analysis
  4. 4. Critical Issues  Relevance  Privacy & security  Customer relationship management
  5. 5. Recommendations  Interface update  Redefine “fun”  Launch a new product
  6. 6. Segmentation  Distribution  Geography  Psychographics Personas  Socialites  Self promoters  Enthusiasts  Discounters  Gamers  Occasional Posters
  7. 7. Target Market Zak — Enthusiast Lifestyle interests Social interaction Young Affluent Content “I enjoy good food, I enjoy talking about food and sharing tips, recipes, restaurant information.” - Zak
  8. 8. Positioning & Branding New Positioning Statement For city-dwellers, who love quality experiences, Foursquare offers the most relevant communications of all mobile apps between consumers and merchants, as evidenced by secure, location-specific tips, hassle-free discounts and real- time communications with establishments.
  9. 9. Product Strategy  Introduce new product: Open Channel, a feature that enhances users shopping experience  Encourages a “live interaction  Provides relevant content by increasing two-way communication  Monetizes relationship between users and merchants
  10. 10. Price Strategy Feature available to loyal users via 50 cashed-in discounts Cashed-in discounts require input of user credit card Participating locations include our strongest business partnerships in 3 major cities
  11. 11. Promotion Strategy  Emphasize a VIP-like experience from “check in” to “check out”  Release story to technology bloggers  Gain buy-in and establish new business partnerships during Social Media Week  Create buzz through signage and billboards in merchant locations and via social media  Launch on Foursquare Day
  12. 12. Financials Breakeven Sales = 10 million Net Present Value = 77 million Months to Breakeven = 12 months Internal Rate of Return = 324% Capital Budgeting Analysis 4/2013 - 3/2014 4/2014 - 3/2015 4/2015 - 3/2016 4/2016 - 3/2017 Incremental Income Statement New revenues realized 9,993,049$ 11,527,981$ 14,283,169$ New variable costs 2,997,915$ 3,458,394$ 4,284,951$ New employee costs (500,000)$ (500,000)$ (520,000)$ (556,400)$ New R&D costs (1,000,000)$ (1,000,000)$ (1,000,000)$ (1,000,000)$ New marketing expenses (750,000)$ (1,500,000)$ (1,500,000)$ (1,500,000)$ New depreciation costs (333,333)$ (333,333)$ (333,333)$ EBT 9,657,630$ 11,633,042$ 15,178,386$ Taxes (3,380,171)$ (4,071,565)$ (5,312,435)$ Net Income 6,277,460$ 7,561,478$ 9,865,951$ Operating Cash Flows 6,610,793$ 7,894,811$ 10,199,284$ Fixed Asset Increase/Decrease (1,000,000)$ 350,000$ Taxes on assets sold 350,000$ Terminal Value 84,994,037$ Total yearly cash flows (3,250,000)$ 6,610,793$ 7,894,811$ 95,893,321$
  13. 13. Monitoring and Control How comfortable people feel about sharing % of customers who say they would recommend Foursquare Brand liking % of new customer downloads Retention rate of the new customers Brand awareness % of target market customers who have brand awareness recall
  14. 14. “Open Channel” Monitoring & Control Potential Product % of customers who say they want new channels open % of new channels open # of features offered by businesses
  15. 15. Conclusion  Foursquare needs to take advantage of this prime opportunity  Unique relationship with customers and merchants that provides ample opportunity to grow  Some risks | High return | Low investment  Largest risk for Foursquare is not doing anything

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