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FB MARKETING
Plan
Health and Fitness MNL
By Peter Ing
Who is Health and Fitness MNL?
2
An online supplements store selling locally
manufactured Natural Supplements in the
Philippines on “Shopee” since January 2018
3
WHO IS HEALTH AND FITNESS MNL
4
WHY SELL ON SHOPEE?
Given my history working at Shopee I learned a few key points why
selling on the Shopee platform would be helpful:
- Shopee is a Mobile-first ecommerce marketplace - customers
can shop anytime and anywhere simply through their phone
- A Mobile-first marketplace means the company prioritizes great
Mobile Customer Experience for purchases on the mobile first
- Shopee invests 10s of thousands $$ in marketing to drive
approximately 4 million visitors to its marketplace every month,
the majority of these are new customers
- Shopee subsidizes Shipping Fees for the customer so the
majority of the time buying online is no more expensive than
buying in person with the benefit that the item is delivered to
your doorstep
- Logistics is integrated into the Shopee platform so when a
customer places an order you simply choose which date the
courier should pick up the package
The Situation
5
6
THE SITUATION
Despite Shopee’s large marketing spends to drive
high volumes of traffic to the Shopee marketplace,
Shops still need to invest in:
- Paid Ads to allow their products to stand out
amongst other sellers
- Cost of Converting Traffic to Sales. Shopee
may be well known for other products other than
Supplements so high volumes of traffic do not
guarantee Supplement sales
7
PAID ADS
- Shopee Paid Ads allow the
Shop Owner to ‘bid’ for
keyword searches
- The higher the bid the higher
the ranking of the product.
This particular keyword costs
P0.24/click
- We invest to convert ‘Brand
Awareness’ to ‘Brand
Purchase’
Problem
8
9
PROBLEM
- As a rule, Expense/GMV
should not surpass >10%
- As a benchmark we
dedicate 10% of Gross
Sales to Marketing Spend
Problem:
- July – October 2018
marketing costs were way
above >10%
10
PROBLEM
Questions for Analysis:
1. Is the Cost of Converting Traffic to Sales too high
for Shopee Ads? Should we move over to Facebook
Ads?
2. Where in the Customer Path is there a bottleneck
and can we used Facebook Ads to address this?
Analysis
11
12
ANALYSIS
1. Is the Cost of Converting Traffic to Sales too high
for Shopee Ads? Should we move over to
Facebook Ads?
USING PAR
Purchase Action Ratio (PAR)
measures how good companies
“convert” people who are aware of
them into purchase actions
Purchase Action Ratio = __Act__ / Aware
Total Market Total Market
13
USING PAR
Shopee Paid Ads Metrics 2018
14
Answer to Question 1:
To make sense of our Shopee PAR scores we benchmark this to an
industry average. Generally we see that a conversion rate of 3% is
acceptable. We now need to compare costs with Facebook Ads
15
USING PAR
Industry Standard Conversion Rates for Ecommerce
16
ANALYSIS
2. Where in the Customer Path is there a
bottleneck and can we used Facebook Ads to
address this?
USING THE 5A’s CUSTOMER PATH
17
Given the low number of customer inquiries through Shopee’s
marketplace chat functionality and instagram/facebook chat
features we face a low conversion between “Aware to Appeal”.
This highlights low customer “Attraction”.
To improve Brand Attraction we can address this through:
- Focusing on environmental or social values
- Representing a lifestyle movement in trend
18
USING THE 5A’s CUSTOMER PATH
Decision
19
My facebook campaign will focus on:
1. Measuring Cost of Facebook Ads to compare with Cost of Shopee Ads
2. Engaging with Women and Socially conscious consumers to create engagements and
conversations
Why?
- We want to check whether Facebook Ads may be more cost effective than Shopee
Ads for conversion
- We want to focus on a female target audience as they enjoy collecting information
and are more likely to become advocates and create organic reach (no cost
involved)
- We want to ride on the lifestyle movement focussed around health and a healthy
lifestyle by communicating the products’ benefits using interesting facts
- We want to create more attraction by emphasizing social values of the brand ie.
Locally Manufactured in the Philippines
Measurements
- Facebook Ads will costs will be compared to Shopee Ad costs like for like
- The Facebook Ad will be measured by number of engagements (likes, shares,
comments) as it helps extend organic reach thus minimizing ad spends.
20
MARKETING PLAN DECISION
21
FACEBOOK CAMPAIGN
Campaign Details:
Duration: 7 days
Budget: PHP1000.
Objective: Engagement
Generate Brand Attraction
through informative ad
campaign. Emphasize
environmental values, in
particular that products are
100% natural and locally
manufactured in the Philippines
Target: Women ages 18-45
Location: Metro Manila
Evaluation
22
Techniques applied
- Purchase Action Ratio
By conducting a Purchase Action Ratio computation for Shopee Ad Spends
for the concerned period July October 2018 we were able to identify that
Conversion Rates were not as worrying as it seems
- Customer Path 5A’s
Through analysis of the Customer Path using the 5A’s we were able to
determine that a potential bottleneck for Health and Fitness is between
Awareness and Appeal leading us to create more engagements with the
target customer to increase Attraction of the brand
- Women and Socially Conscious Consumers
Having identified the potential bottleneck of Atttraction we decided to engage
in targeting Women and Socially conscious Consumers to increase Attraction
of the brand and increase Organic Reach through conversations and
engagement
23
EVALUATION
24
FACEBOOK CAMPAIGN
Results:
Duration: 2 days
Amount Spent: PHP75.80
Reach: 409
Impressions: 408
Results: 41
Likes: 38
Engagement Age: 78% 18-25yrs
Reach Age: 69% 18-25yrs
Cost per Result: p1.85
Link Clicks: 2
Cost per Click: p37.90
25
FACEBOOK CAMPAIGN
Results (projected for 7 days):
Duration: 7 days
Amount Spent: PHP530
Reach: 1,430
Impressions: 1,428
Results: 143
Likes: 133
Engagement Age: 78% 18-25yrs
Reach Age: 69% 18-25yrs
Cost per Result: p1.85
Link Clicks: 7
Cost per Click: p37.90
Facebook Campaign Results for Question 1
- Facebook’s cost per click is much higher than Shopee, meaning for actual sales
conversion Shopee’s paid ads are still more cost effective. Example:
Shopee: Digestive aid -> Product Page, keyword costs approx. p0.24/click
Facebook: Facebook Ad -> Product Page, keyword costs approx.
p37.90/click
- Facebook’s cost per visitor and cost per page view are substantially higher than
Shopee’s
26
EVALUATION
Facebook Campaign Results for Question 2
“Still premature to tell but there are some early learnings to share…”
- Over a forecasted 7 day period the number of engagements would be:
Likes: 133
Shares: ??
Comments: ??
- Its inconclusive whether Facebook Ads are a good venue for creating
engagement with the community for Health and Fitness
27
EVALUATION
Going forward
- Shopee would still be the preferred venue for Paid Ads given the
cost comparisons
- Its inconclusive whether Facebook Ads are good method for
community engagement due to the limited metrics obtained, we
will continue to test further
28
EVALUATION

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DIGIMA - Facebook Marketing Campaign_Peter Ing

  • 1. FB MARKETING Plan Health and Fitness MNL By Peter Ing
  • 2. Who is Health and Fitness MNL? 2
  • 3. An online supplements store selling locally manufactured Natural Supplements in the Philippines on “Shopee” since January 2018 3 WHO IS HEALTH AND FITNESS MNL
  • 4. 4 WHY SELL ON SHOPEE? Given my history working at Shopee I learned a few key points why selling on the Shopee platform would be helpful: - Shopee is a Mobile-first ecommerce marketplace - customers can shop anytime and anywhere simply through their phone - A Mobile-first marketplace means the company prioritizes great Mobile Customer Experience for purchases on the mobile first - Shopee invests 10s of thousands $$ in marketing to drive approximately 4 million visitors to its marketplace every month, the majority of these are new customers - Shopee subsidizes Shipping Fees for the customer so the majority of the time buying online is no more expensive than buying in person with the benefit that the item is delivered to your doorstep - Logistics is integrated into the Shopee platform so when a customer places an order you simply choose which date the courier should pick up the package
  • 6. 6 THE SITUATION Despite Shopee’s large marketing spends to drive high volumes of traffic to the Shopee marketplace, Shops still need to invest in: - Paid Ads to allow their products to stand out amongst other sellers - Cost of Converting Traffic to Sales. Shopee may be well known for other products other than Supplements so high volumes of traffic do not guarantee Supplement sales
  • 7. 7 PAID ADS - Shopee Paid Ads allow the Shop Owner to ‘bid’ for keyword searches - The higher the bid the higher the ranking of the product. This particular keyword costs P0.24/click - We invest to convert ‘Brand Awareness’ to ‘Brand Purchase’
  • 9. 9 PROBLEM - As a rule, Expense/GMV should not surpass >10% - As a benchmark we dedicate 10% of Gross Sales to Marketing Spend Problem: - July – October 2018 marketing costs were way above >10%
  • 10. 10 PROBLEM Questions for Analysis: 1. Is the Cost of Converting Traffic to Sales too high for Shopee Ads? Should we move over to Facebook Ads? 2. Where in the Customer Path is there a bottleneck and can we used Facebook Ads to address this?
  • 12. 12 ANALYSIS 1. Is the Cost of Converting Traffic to Sales too high for Shopee Ads? Should we move over to Facebook Ads?
  • 13. USING PAR Purchase Action Ratio (PAR) measures how good companies “convert” people who are aware of them into purchase actions Purchase Action Ratio = __Act__ / Aware Total Market Total Market 13
  • 14. USING PAR Shopee Paid Ads Metrics 2018 14
  • 15. Answer to Question 1: To make sense of our Shopee PAR scores we benchmark this to an industry average. Generally we see that a conversion rate of 3% is acceptable. We now need to compare costs with Facebook Ads 15 USING PAR Industry Standard Conversion Rates for Ecommerce
  • 16. 16 ANALYSIS 2. Where in the Customer Path is there a bottleneck and can we used Facebook Ads to address this?
  • 17. USING THE 5A’s CUSTOMER PATH 17
  • 18. Given the low number of customer inquiries through Shopee’s marketplace chat functionality and instagram/facebook chat features we face a low conversion between “Aware to Appeal”. This highlights low customer “Attraction”. To improve Brand Attraction we can address this through: - Focusing on environmental or social values - Representing a lifestyle movement in trend 18 USING THE 5A’s CUSTOMER PATH
  • 20. My facebook campaign will focus on: 1. Measuring Cost of Facebook Ads to compare with Cost of Shopee Ads 2. Engaging with Women and Socially conscious consumers to create engagements and conversations Why? - We want to check whether Facebook Ads may be more cost effective than Shopee Ads for conversion - We want to focus on a female target audience as they enjoy collecting information and are more likely to become advocates and create organic reach (no cost involved) - We want to ride on the lifestyle movement focussed around health and a healthy lifestyle by communicating the products’ benefits using interesting facts - We want to create more attraction by emphasizing social values of the brand ie. Locally Manufactured in the Philippines Measurements - Facebook Ads will costs will be compared to Shopee Ad costs like for like - The Facebook Ad will be measured by number of engagements (likes, shares, comments) as it helps extend organic reach thus minimizing ad spends. 20 MARKETING PLAN DECISION
  • 21. 21 FACEBOOK CAMPAIGN Campaign Details: Duration: 7 days Budget: PHP1000. Objective: Engagement Generate Brand Attraction through informative ad campaign. Emphasize environmental values, in particular that products are 100% natural and locally manufactured in the Philippines Target: Women ages 18-45 Location: Metro Manila
  • 23. Techniques applied - Purchase Action Ratio By conducting a Purchase Action Ratio computation for Shopee Ad Spends for the concerned period July October 2018 we were able to identify that Conversion Rates were not as worrying as it seems - Customer Path 5A’s Through analysis of the Customer Path using the 5A’s we were able to determine that a potential bottleneck for Health and Fitness is between Awareness and Appeal leading us to create more engagements with the target customer to increase Attraction of the brand - Women and Socially Conscious Consumers Having identified the potential bottleneck of Atttraction we decided to engage in targeting Women and Socially conscious Consumers to increase Attraction of the brand and increase Organic Reach through conversations and engagement 23 EVALUATION
  • 24. 24 FACEBOOK CAMPAIGN Results: Duration: 2 days Amount Spent: PHP75.80 Reach: 409 Impressions: 408 Results: 41 Likes: 38 Engagement Age: 78% 18-25yrs Reach Age: 69% 18-25yrs Cost per Result: p1.85 Link Clicks: 2 Cost per Click: p37.90
  • 25. 25 FACEBOOK CAMPAIGN Results (projected for 7 days): Duration: 7 days Amount Spent: PHP530 Reach: 1,430 Impressions: 1,428 Results: 143 Likes: 133 Engagement Age: 78% 18-25yrs Reach Age: 69% 18-25yrs Cost per Result: p1.85 Link Clicks: 7 Cost per Click: p37.90
  • 26. Facebook Campaign Results for Question 1 - Facebook’s cost per click is much higher than Shopee, meaning for actual sales conversion Shopee’s paid ads are still more cost effective. Example: Shopee: Digestive aid -> Product Page, keyword costs approx. p0.24/click Facebook: Facebook Ad -> Product Page, keyword costs approx. p37.90/click - Facebook’s cost per visitor and cost per page view are substantially higher than Shopee’s 26 EVALUATION
  • 27. Facebook Campaign Results for Question 2 “Still premature to tell but there are some early learnings to share…” - Over a forecasted 7 day period the number of engagements would be: Likes: 133 Shares: ?? Comments: ?? - Its inconclusive whether Facebook Ads are a good venue for creating engagement with the community for Health and Fitness 27 EVALUATION
  • 28. Going forward - Shopee would still be the preferred venue for Paid Ads given the cost comparisons - Its inconclusive whether Facebook Ads are good method for community engagement due to the limited metrics obtained, we will continue to test further 28 EVALUATION