Blueprint - Direct Marketing Campaign

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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. 1. Final Campaign AnalysisByAudrey FortinJoshua HartsonErica MasonMustapha MakriA paper submitted toLindsey Fairin partial fulfillment of the requirementsof MCOM 30April 25, 2013
  2. 2. The Client1. Concise description of business to show understanding of client.Blueprint is a clothing retailer in downtown Kingston. The store boasts an urbanstyle and carries fashions that are considered “everyday trendy.” The boutiquecarries brands like French Connection, Seven, J Brand, Citizens of Humanity,Lacoste, Vero Moda, and Fred Perry, just to name a few. The brands carried tendto 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 enjoya great selection of trendy clothing and love the downtown experience. Studentsand young business professionals within the above age group live downtown andenjoy the urban feel it provides.Blueprint does not do traditional marketing; rather, sales promotions, storesignage, and networking opportunities are used in order to build brandawareness. The owner, Cyndy Gibson, has experimented with different events runthrough 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 forthe 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 purchasesThe direct marketing campaign was given no budget; therefore, it needed to bedone with little to no cost. Cyndy was looking for a campaign that was creative,but also resonated with her target market.
  3. 3. The Target Market1. Summative description of the target market.The original target market for our Blueprint campaign was young men andwomen in the Kingston area. We were targeting both sexes to not only appealto a younger demographic (especially with Queens’ campus being so close tothe store location) but to also try and appeal to couples and attract more maleshoppers.After creating, handing out, and receiving results from the first draft of our surveywe came to the conclusion our demographic was too broad and we would have tonarrow it down to a more specific and well defined demographic.We then decided that a more appropriate target would be young businessprofessionals in the downtown Kingston area. We chose to target young businessprofessionals because we felt they matched Blueprint not only location wise butthey match the type of clothing Blueprint has to offer. Moreover, their income ismore 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 bothmale and female young business professionals in the downtown Kingston area asthey are working within a short distance from Blueprint. In relation to the fashionindustry, we wanted our target to be those who are fashion forward and havean urban style, but also enjoy the casual side to fashion. By asking questionslike where people shop and what brands they are interested in, we were able todecide if Blueprint was right for each segment.3. Completed list in proper field type format showing segments and updatedat completion of campaign.See Attached.
  4. 4. The Big Idea1. Describe the overall idea, how it came to be and how it meets the goals ofthe client.The idea behind our Blueprint campaign was to produce a direct mail piece to notonly appeal to our target but to intrigue them and create a feeling of exclusivity. Todo so a miniature briefcase mail piece was made to fit with the idea of businessprofessionals. Each briefcase was hand delivered to each person on the list.Inside, each briefcase contained two business cards, one for the person on thelist and the other, blank card, for a friend. Once the business card is redeemed atBlueprint Clothing Store, the person receives 20% off their purchase followed byan entry into a draw to win either a $50 gift card or a pair of tickets to The GrandTheatre.The idea for the miniature briefcase was inspired by a professional’s lap topbag or briefcase. The case resembled something that Herschel would create (apopular brand carried at the store), which would give a taste of some of the stylesfound at Blueprint. The direction of the campaign met the goals of the client asit not only increased the database by having a possible referral, but it increasedawareness of the brand.
  5. 5. The Message1. Explain the offer and why it was chosen.The particular offer was valid from April 1, 2013 to April 19, 2013; the offerincluded a 20% discount for every purchase of $75 or more. In order to qualifyfor the offer, the young business professional would need to bring in a filled-inbusiness card with all their contact information. The business cards were thenentered into a draw for a pair of tickets to see ‘Africville Suite’ at The KingstonGrand Theatre accompanied with a $50 Blueprint gift certificate to help pay for anoutfit for the night out.The particular offer was developed exclusively for local business professionalswho help fuel economic development in Kingston’s core. A discount offer wasan appropriate offer for this specific target because it gives them the feeling ofexclusivity. The offer was unique since there are rarely offers or promotions thatare designed solely for business professionals, and by executing that offer we aregiving more value and support to Kingston’s professionals.The offer was appropriate because Kingston is a well-connected town with manyyoung professionals in the target area, word of mouth is a great way to advertiseand 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 customerswork 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 regularcustomers
  6. 6. The Channel1. Explain the channel chosen and why.The primary channel chosen for the direct marketing campaign was print directmail. This method was chosen due to the fact that print mail has proven responserates as well as our contact list is a house list that has been generated by surveyscompleted by Kingston’s young business professionals. A print campaign with acreative, unbeatable offer is sure to attract any consumer, therefore by creatinga 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 contactwith the prospective customer. The piece that has been created for Blueprintis addressed, and specially delivered, by using these techniques it allows forresponses to be measured easily and accurately.As a secondary channel, email was used as a reminder tool. Our target marketof young business professionals use email daily and therefore, the channel isthought to be a great way to contact our list. Timing strategies were used whenemailing 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 thewebsite provides detailed campaign reports outlining the number of times opened,click rates, bounce backs, etc. This information was useful when analyzinganalytics and results.As Blueprint is a modern clothing boutique, it is apparent that both traditional andnew marketing strategies are needed, meaning both channels were equally asimportant 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 peoplelisted on the database are all young business professionals working in thedowntown Kingston area. By hand delivering the miniature briefcase/businesscard “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 piecewill not get damaged in its travels—a minor but key thing.The secondary channel, Mail Chimp (email) will be implemented based on atiming strategy. As the campaign officially begins April 2, 2013, the email blast willbe sent to the list as a reminder tool four days after the campaign has launched.
  7. 7. The Channel Continued...The email will have all pieces of the offer, making it quick and easy for those toprint and redeem the offer. This will also be helpful on the off chance that a few ofthe contacts did not receive the direct mail piece but additionally provides the listan opportunity to send the offer to any friends and family. Seven days before theend of the campaign, an official countdown reminder email was once again sentto the list. This email was very short and acted as a final method to enforce theurgency of the offer.3. Highlight the industry standard for redemptions within that channel.Direct mail campaigns have varying response rates, however, the typicalresponse rate is 0.9%, a high response rate is considered 1.9% and a lowresponse 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 inthe United States per year. In order to increase the amount of responses, it issuggested that a house list is used instead of a prospective list. House lists willprovide a database of current and previous customers and therefore will increasethe 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 responserate 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 theproper timing of the campaign. The email must be specific, to the point and eyecatching for the target market. The email campaign is normally the first thingthat draws the consumer in, thus, a creative offer must be well thought out. Anaverage 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. Emailcampaigns are solely based on the idea of click, pass on and buy..
  8. 8. The Creative3-D Brief Case: Inside
  9. 9. The Creative Continued...3-D Brief Case: Outside
  10. 10. The Creative Continued...Business Cards (Found inside the briefcase):
  11. 11. The Creative Continued...Mail Chimp (1st Mailer):
  12. 12. The Creative Continued...Mail Chimp (Reminder Mailer):
  13. 13. The Results1. 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 salewhich would help to determine how much a 20% discount would cost from missedopportunity in sales prospective. Also, we wanted to track the cost per transactionto determine the true cost of the campaign. And finally we wanted to know thetotal profit from the sales after the promotion is done; however, since there wereno redemptions from the promotion, it would be hard to determine the true lifetimevalue of the campaign. In terms of response, the emails sent out through MailChimp were viewed. Two emails were sent, one was four days after the campaignwas launched, and the other was one week before the end of the campaign.The metrics from the Mail Chimp report indicated how many targeted customeropened the mail and how many times they opened it (18 from 37 opened the firstmail 45 times, and 15 from 37 opened the second mail 18 times). As a result, theonly metrics to be determined are the expenses of the campaign and the numberof responses responses, which is the number of times the mailer was opened.The numbers for the total generated revenue and the offer-generated revenuecannot be determined with missing information.2. Describe any noticeable differences before and after the revisions weredone.Ten days after the campaign was launched, we had some kind of feed back fromCyndy about the primary results of our campaign. We were told that no one hadredeemed our coupon so far so we had a meeting and we decided to send asecond mailer to the 37 targeted customers through Mail Chimp. The main goalof the second mail was to remind them about the offer and encourage them togo 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 ofresponse. 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 firsttime.
  14. 14. The Results Continued...3. Estimate versus actual numbers of the appropriate analytics that highlightthe benefit of this campaign. (CPP, CPR, CPS, GP, BLP if possible, LTV, andROI).Since we didn’t have any redemptions of the offer there were no sales generatedfrom the offer. The only metrics that can be provided are CPP and CPR.1- CPPThe direct campaign expenses:• The cost of one briefcase is $0.88, and we printed 50 briefcase. Thatmeans that the total cost of the briefcases is $44.• The cost of one business card is $0.1, and we printed 100 card. Thatmeansthat the total cost of the cards is $10• Miscellaneous costs: $30The direct campaign expenses is 44+10+30 = $84The number of pieces sent is 37.As a result, the CPP=84/37= $2.272- CPRThe direct campaign expenses divided by the number of responsesThe direct campaign expenses = $84The number of responses (how many times the mailchimp was opened) = 18(thefirst mailer)+ 15 (the second mailer) = 33.As a result, the CPR = 84/33 = $2.544. Include metric and analytic reports available through tools used.See the following charts and tables.
  15. 15. The Results Continued...Mail Chimp Report (1st Mailer):
  16. 16. The Results Continued...Mail Chimp Report (2nd Mailer):
  17. 17. The Analysis1. Determine future recommendations based on results for the client to du-plicate, discontinue or expand this campaign. Taking into consideration allmilestones, 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 recipientsenough to open the mailer, but not to use the coupon inside or take action. The briefcaseconcept could be easily duplicated by the client if they were to do another direct mail or emailcampaign.In retrospect, there are two major areas that could have been improved upon, which are thelist and the offer. The initial list was developed surveying 25 college students at St. LawrenceCollege, 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 teammember of JEAM had established during placement. The survey yielded approximately 55responses and gave us crucial data. The list allowed us to filter out those who were not youngprofessionals or people who do not shop/live in downtown Kingston. The final list includedpeople who were older than the defined target market and who did not live in the downtownarea; therefore, creating a disconnect between the client and the new potential customer. Theoffer was perhaps a little too generic and the recipients did not know how to respond. For someof 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. Theoffer was just a standard offer and did not have a creative flare. Perhaps something simplermay have driven customers into the store.The creative design of briefcase was executed just how it was imagined. Many recipientscommented on how “cute” or “creative” the briefcases were. The Blueprint brand or storelocation information was not that prominent on briefcase which may have hindered thecampaign’s success.Timelines were definitely a factor in our direct marketing campaign. Creating a list took longerthan we had anticipated. If we had waited longer for survey results, we may have got theinformation for people who would have fit the target market better. Moreover, the final decisionon what type of offer to use was made quickly. Brainstorming more as a team would havebrought 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.

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