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BzzAgent: Disrupting the Status Quo
                     Unitas Consulting
                      March 16, 2009
Agenda
• Recommendations
• Issues
• Current Status
• Analysis
• Marketing Strategy
• “Swarm!” - What is it?
• Financial Pr...
Recommendations
• Prime Prospects: Current clients who
     are multi-brand organizations
• Value Proposition: Effective a...
Issues
• Low credibility of WOM industry
   • Competition with dominant substitutes
   • ROI measurement needs improvement...
Current Status
                            10/08
                           Create
  07/07
                          Faceb...
Analysis - SWOT
Strengths                            Weaknesses
• Vast network of loyal              • Credibility of WOM
...
Analysis - Industry
                        Suppliers



         Buyers                       Substitutes



            ...
Core Competence
 Leveraging a vast network of loyal
BzzAgents to organize, measure, and
manage word-of-mouth advertising

...
Alternatives
• Emphasizing clients’ databases
• Resurrect BeeLog… again
• No transparency through social
    network media...
Target Clients
             Brands & Advertising
                  Agencies


                  Current Clients


        ...
Target Clients
• Prime Prospects: Multi-brand organizations (MBOs)
  • Biggest Repeat Clients:
     P&G, Unilever, and Kra...
Value Proposition
• Effective WOM marketing campaigns
   • Longer time engagement
  • Better quality of time engaged

• Pr...
Value Proposition
  Media              Time Per Impression Cost: Time
                    Engaged    Cost      Ratio ($/mi...
Value Proposition
                    Time Engaged with Media Impression

      WOM                                       ...
Value Proposition
                    WOM Communication Dividend
   1
 0.8
 0.6
 0.4
 0.2
                 -0.49          ...
Marketing Strategy
                   Transactional




Brand Building                      Relationship Building
   Issue...
2 Year Action Plan
• Brand Building
  • “Bzz” media outlets (Swarm!)
  • Develop Twitter and other online social
     netw...
2 Year Action Plan
• Relationship Building
  • New reach and ROI quantifications
  • Utilize past case studies
  • Offer c...
2 Year Action Plan
• Transactional
  • Discount pricing for repeat clients
     • Rolling 2 year window
     • Thresholds
...
Timeline 2009-10
                                             2009                         2010
                          ...
Swarm!
• Improv Everywhere
• January 26, 2008
• Grand Central Station, NYC
• 200 Agents
• 2:30 to 2:35 PM


              ...
Swarm!
• New York Times
• Rolling Stone
• New York Daily News
• The Today Show
• Nightline
• VH1
• Good Morning America


...
Swarm!
• BzzAgent is its own client
• 2000 BzzAgents equipped
       with BzzUmbrellas
• Supplement with
       BzzCampaig...
Swarm!
• For top clients
• No more than 1 a year
• Reserved for launch of products that BzzAgent
       believes in
• Supp...
Challenges
• Coordination of location for BzzAgents

• Unpredictability of weather

• Capturing interest of Wall Street Jo...
Financials
• Assumptions:
   • ~80 BzzCampaigns in 2008
   • $300,000 average revenue per
      BzzCampaign
   • Growth an...
Financials
            Projections: Most Likely Scenario
               Moderate Pricing Strategy

                       ...
Financials
    Projected Incremental Revenues ($ mil)
    80.0
    70.0
    60.0
    50.0
    40.0
                       ...
Financials
Sensitivity Analysis: Incremental Revenues ($ mil)
           100
            90
            80
            70
...
Review
• Prime Prospects: Current clients who
     are multi-brand organizations
• Value Proposition: Effective and
     m...
Q & A?




         Thank You!
Appendix
• Industry Analysis
Analysis - Industry
• Supplier:
  • A company which supplies parts or services
     to another company (source: www.invest...
Analysis - Industry
• Substitutes:
  • Different goods that, at least partly, satisfy
     the same needs of the consumers...
Analysis - Industry
• Buyers:
  • Professional purchaser specializing in a
     specific group of materials, goods, or
   ...
Analysis - Industry
• Barriers to Entry:
  • Economic, procedural, regulatory, or
     technological factors that obstruct...
Analysis - Industry
• Competitors:
  • In business, a company in the same industry
      or a similar industry which offer...
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BzzAgent: Disrupting the Status Quo

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BzzAgent: Disrupting the Status Quo

  1. 1. BzzAgent: Disrupting the Status Quo Unitas Consulting March 16, 2009
  2. 2. Agenda • Recommendations • Issues • Current Status • Analysis • Marketing Strategy • “Swarm!” - What is it? • Financial Projections • Review
  3. 3. Recommendations • Prime Prospects: Current clients who are multi-brand organizations • Value Proposition: Effective and measurable WOM • 2 Year Action Plan: • “Bzz” media outlets • Control market comparisons and exit surveys • Discount pricing for repeat clients
  4. 4. Issues • Low credibility of WOM industry • Competition with dominant substitutes • ROI measurement needs improvement • Shrinking marketing budgets • Uncertainty of core competence • Transparency as a liability • BeeLog vs. Twitter Issues Status & Analysis Marketing Strategy Financials
  5. 5. Current Status 10/08 Create 07/07 Facebook Launch 02/09 Frogpond App Join Twitter 06/08 11/08 Partner Discontinue with BeeLog MyPoints Sources accessed on 3/13/09 : http://blog.bzzagent.com http://mashable.com/2007/07/22/bzzagent-frogpond http://www.gather.com/viewArticle.jsp?articleId=281474977366162 http://www.bzzagent.com Issues Status & Analysis Marketing Strategy Financials
  6. 6. Analysis - SWOT Strengths Weaknesses • Vast network of loyal • Credibility of WOM BzzAgents • Poor CPM • Creative marketing strategy • Uncertain of core competence Opportunities Threats • Synergies of interactive web- • Economic recession tools • Competitors • ROI of WOM (cost:time ratio) • Transparency Issues Status & Analysis Marketing Strategy Financials
  7. 7. Analysis - Industry Suppliers Buyers Substitutes Rivals Entrants Issues Status & Analysis Marketing Strategy Financials
  8. 8. Core Competence Leveraging a vast network of loyal BzzAgents to organize, measure, and manage word-of-mouth advertising Issues Status & Analysis Marketing Strategy Financials
  9. 9. Alternatives • Emphasizing clients’ databases • Resurrect BeeLog… again • No transparency through social network media Issues Status & Analysis Marketing Strategy Financials
  10. 10. Target Clients Brands & Advertising Agencies Current Clients Multi-brand Organizations Issues Status & Analysis Marketing Strategy Financials
  11. 11. Target Clients • Prime Prospects: Multi-brand organizations (MBOs) • Biggest Repeat Clients: P&G, Unilever, and Kraft • Other MBO Clients: Bacardi, Hershey’s, Jim Beam, Sara Lee, Kellogg’s, Nestle, Sony Source: Carla Eberle, Marketing Communications Manager. Conversation 3/13/09 Issues Status & Analysis Marketing Strategy Financials
  12. 12. Value Proposition • Effective WOM marketing campaigns • Longer time engagement • Better quality of time engaged • Provide measurable ROI • Control market • Cost:Time Ratio ($/min.) Issues Status & Analysis Marketing Strategy Financials
  13. 13. Value Proposition Media Time Per Impression Cost: Time Engaged Cost Ratio ($/min) Radio 0:30 $0.013 $0.03 TV 0:30 $0.020 $0.04 Mobile Web 0:10 $0.035 $0.21 Direct Mail 1:00 $1.000 $1.00 WOM 6:18 $0.300 $0.05 Source: http://www.bzzagent.com/downloads/BzzAgent_Paper_Three_WOM_and_Time.pdf. Accessed on 3/13/09 Issues Status & Analysis Marketing Strategy Financials
  14. 14. Value Proposition Time Engaged with Media Impression WOM 6.18 0.10 Mobile Web Direct Mail 1.00 0.30 TV Radio 0.30 0 1 2 3 4 5 6 7 Minutes Source: http://www.bzzagent.com/downloads/BzzAgent_Paper_Three_WOM_and_Time.pdf. Accessed on 3/13/09 Issues Status & Analysis Marketing Strategy Financials
  15. 15. Value Proposition WOM Communication Dividend 1 0.8 0.6 0.4 0.2 -0.49 0.87 0.38 $0 Cost per Value per Communication -0.2 Communication Communication Dividend -0.4 -0.6 http://www.bzzagent.com/downloads/BzzAgent_Paper_Four_Communication_Dividend.pdf. Accessed on 3/13/09 Issues Status & Analysis Marketing Strategy Financials
  16. 16. Marketing Strategy Transactional Brand Building Relationship Building Issues Status & Analysis Marketing Strategy Financials
  17. 17. 2 Year Action Plan • Brand Building • “Bzz” media outlets (Swarm!) • Develop Twitter and other online social network media • Marketing publications and journals Issues Status & Analysis Marketing Strategy Financials
  18. 18. 2 Year Action Plan • Relationship Building • New reach and ROI quantifications • Utilize past case studies • Offer control market research as product add-on • Exit surveys Issues Status & Analysis Marketing Strategy Financials
  19. 19. 2 Year Action Plan • Transactional • Discount pricing for repeat clients • Rolling 2 year window • Thresholds Pricing Tier Moderate Conservative Aggressive Discount Discount Discount Tier 1 (1 – 3) 0% 0% 0% Tier 2 (4 – 6) 7.5 % 5% 10 % Tier 3 (7 – 10) 15 % 10 % 20 % Tier 4 (11 +) 25 % 15 % 30 % Issues Status & Analysis Marketing Strategy Financials
  20. 20. Timeline 2009-10 2009 2010 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Social Network Media Marketing Journals Swarm! Media Contact Prime Prospects Discount Pricing Client Swarm! Issues Status & Analysis Marketing Strategy Financials
  21. 21. Swarm! • Improv Everywhere • January 26, 2008 • Grand Central Station, NYC • 200 Agents • 2:30 to 2:35 PM Source: http://improveverywhere.com/2008/01/31/frozen-grand-central/. Accessed on 3/13/09 Issues Status & Analysis Marketing Strategy Financials
  22. 22. Swarm! • New York Times • Rolling Stone • New York Daily News • The Today Show • Nightline • VH1 • Good Morning America Source: http://www.youtube.com/watch?v=jwMj3PJDxuo. Accessed on 3/13/09 Issues Status & Analysis Marketing Strategy Financials
  23. 23. Swarm! • BzzAgent is its own client • 2000 BzzAgents equipped with BzzUmbrellas • Supplement with BzzCampaign • National exposure for both BzzAgent and WOM marketing Source: Google Maps. Accessed on 3/14/09 Issues Status & Analysis Marketing Strategy Financials
  24. 24. Swarm! • For top clients • No more than 1 a year • Reserved for launch of products that BzzAgent believes in • Supplement Swarm! with BzzCampaign to generate national exposure • Synergy between BzzAgent.com and YouTube, Facebook, Twitter, etc. Issues Status & Analysis Marketing Strategy Financials
  25. 25. Challenges • Coordination of location for BzzAgents • Unpredictability of weather • Capturing interest of Wall Street Journal writers • A natural adaptation of a product launch to a Swarm! strategy Issues Status & Analysis Marketing Strategy Financials
  26. 26. Financials • Assumptions: • ~80 BzzCampaigns in 2008 • $300,000 average revenue per BzzCampaign • Growth and “pricing tier” distribution assumptions: refer to handout Source: Carla Eberle, Marketing Communications Manager. Conversation 3/13/09 Issues Status & Analysis Marketing Strategy Financials
  27. 27. Financials Projections: Most Likely Scenario Moderate Pricing Strategy 2008 2009 2010 2011 2012 Incremental Revenues 24.0 27.4 34.5 43.1 51.7 ($mil) Revenue Growth (%) N/A 14.01 26.25 24.87 19.94 Issues Status & Analysis Marketing Strategy Financials
  28. 28. Financials Projected Incremental Revenues ($ mil) 80.0 70.0 60.0 50.0 40.0 72.5 62.1 30.0 51.7 43.1 20.0 34.5 27.3 24.0 10.0 0.0 2008 2009 2010 2011 2012 2013 2014 Issues Status & Analysis Marketing Strategy Financials
  29. 29. Financials Sensitivity Analysis: Incremental Revenues ($ mil) 100 90 80 70 60 Most Likely 50 Worst Case 40 Best Case 30 20 10 0 2008 2009 2010 2011 2012 2013 2014 Issues Status & Analysis Marketing Strategy Financials
  30. 30. Review • Prime Prospects: Current clients who are multi-brand organizations • Value Proposition: Effective and measurable WOM • 2 Year Action Plan: • “Bzz” media outlets • Control market comparisons and exit surveys • Discount pricing for repeat clients
  31. 31. Q & A? Thank You!
  32. 32. Appendix • Industry Analysis
  33. 33. Analysis - Industry • Supplier: • A company which supplies parts or services to another company (source: www.investorwords.com) • Facebook, Twitter, YouTube • Limited power
  34. 34. Analysis - Industry • Substitutes: • Different goods that, at least partly, satisfy the same needs of the consumers and, therefore, can be used to replace one another (source: www.businessdictionary.com) • TV ads, printed ads, etc. • Power derived from long-term domination over the market
  35. 35. Analysis - Industry • Buyers: • Professional purchaser specializing in a specific group of materials, goods, or services (source: www.businessdictionary.com) • Consumer goods companies • Risk-averse and price sensitive
  36. 36. Analysis - Industry • Barriers to Entry: • Economic, procedural, regulatory, or technological factors that obstruct or restrict entry of new firms into an industry or market (source: www.businessdictionary.com) • Anyone • Network of 500,000 BzzAgents provide leverage
  37. 37. Analysis - Industry • Competitors: • In business, a company in the same industry or a similar industry which offers a similar product or service (source: www.businessdictionary.com) • Wombeat, Vocalpoint • Current competitors suffer from limitation in their database (regional limitation, age limitation, etc.)

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