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MMP- Newsletter

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									Need Assessment
The Municipal Marketing Program (MMP) seeks to generate revenue to support municipalities and other
tiers of local government. The revenues are generated from the receipt of advertising fees from businesses
in exchange for recognition by the Municipality/ Local Governmental Unit. For an advertising fee, the
program allocates space on governmental property through which businesses can advertise.
The primary sources of local governmental revenue are property taxes and State shared revenues (money
received from the State). The current economic climate has devastated both sources, with plummeting
house prices reducing home values, and anemic consumer spending lowering State tax receipts- which
allows less money to be disbursed to local governments. In the State of Michigan for example, state shared
revenue has been cut by $4billion in the past ten years, while in some counties homes have lost upwards of
10% of their value in the past year alone. This has permanently reduced the threshold for property tax
revenues ( the Headlee Amendment does not permit taxable values for existing properties to rise greater
than the rate of inflation or 5%, whichever is less). Some experts don’t expect home values to rebound, to
2007 levels, for another decade. Undoubtedly, this crisis will only get worse before it gets better, forcing
some municipalities into State financial control.
It is no secret that local governments are facing tough choices as a result of devolving budgetary
conditions. The gap, between continuing lowered revenues (from financially strapped state and federal
funding sources and declining home taxable values), and rising expenditures (resulting from increased
operating costs in areas such as employee healthcare and retiree benefits) continues to widen even as
more demands are made on local governmental services.
This budgetary crisis now makes it imperative for local governments to generate new streams of revenue if
they are to continue funding current services.
By collaborating with businesses, local governments can adopt this program as a stop-loss measure that
provides greater flexibility and control in addressing its fiscal challenges.
Our company works closely with all parties to tailor programs that are representative of both the Local
government and the businesses’ missions.

Our Company
BLUE CASTE (BC) is a marketing company concerned with development of nonconventional revenue
generating programs for civic and business institutions, across a variety of platforms. Our team is
comprised of business professionals with experience in automotive, print, retail, real estate and direct
sales and marketing. Our diverse backgrounds allow us to leverage unique talents in addressing client
needs.
Prior to our investigation of local government funding we were working on several out-of-home advertising
projects. Out-of-home advertising is any non-traditional marketing approach that places advertisement in
venues outside of the consumer’s home, for example, ads on billboards, bus shelters and restaurants are
regarded as out-of-home media. Around this time, local governmental units; counties, cities, villages and
townships, were facing serious cutbacks in State funding and also falls in other revenue. Our company took
an interest in this matter and upon further investigation learnt that besides funding cuts, local governments
were dealing with budget deficits exacerbated by the rising costs of healthcare for staff and retiree
benefits. With many governmental units now exploring the privatization of certain services, the idea of
supporting local governments through advertising was conceived.
Our current venture, which involves securing your local governmental unit much needed funds, was born
from over a year of research into the State wide budget crisis, similar programs across the country,
concern about corporate activity in communities and the current climate of business interest in municipal
marketing. Our biggest asset to your institution is our relationships with businesses and talent in the
region. We have developed partnerships with companies interested in marketing their products through
your properties, while supporting the aims of the community. We also have access to a wide range of talent
with broad experience in many industries. This provides us the ability to immediately execute an efficient
program giving you access to much needed revenue.

Newsletter Initiative
The Newsletter Initiative is a component of our Municipal Marketing Plan.
The City currently operates a newsletter, through its recreational department, to communicate its
programs to the residents. Presently the costs of production and mailing are borne by the City; we propose
the selling of advertising to offset some of these costs.
The City has a substantial amount of individuals between the ages of 21 and 65, a coveted demographic
group that heavily influences the marketing, advertising and sales decisions of companies.
The residents of the City, through the City newsletter, represent a market for business marketing,
advertising and sales, which is as of yet underutilized.

                                                                                     1 www.bluecaste.com
The goal of this initiative is to generate revenue through this brochure.
Surrounding the City is a wealth of businesses vying to provide goods and services to its residents. Using
the newsletter as a medium to promote local and regional businesses, City residents can have easier
access to product information and other promotional resources at no additional cost to them. This will
benefit the pace of business activity by allowing the consumers to pinpoint the businesses and their
corresponding services that best suits her needs.
We envision this initiative as an impetus to invigorate business activity in the City, propelling it to
challenge its current fiscal situation with creativity and realism.

Page Distribution
The newsletter page will have the following content divisions,
    1. Information Space
        This will contain information provided by the City, such as program information, calendar, etc.
    2. Advertising Space
        This will contain advertising in the 4 advertising sizes (these are outlined in the subsequent
        paragraph). It would contain all advertising text and graphics. Pages in this section will be
        provided by BC. The City has final approval on all content. The pages will have a lay that is
        unobtrusive. Informative content and advertising can be mixed.
    3. Mixed Content Space
        This will contain both information and advertising content. This space would also have the Margin
        Space and may have the Tag Line Advertising
    4. Margin Space
        On every page of the newsletter, an adequate border will be created. This border will run along
        the outermost area of the page enclosing all content on a page. The Margin space will have” Tag
        Line” advertising (contains name and contact information of advertiser).

Advertising Size
An advertiser would have the option of advertising in the newsletter based on 4 Ad sizes,
Full Page
Half Page
Quarter Page
Junior Page (1/8)




                                                                                     2 www.bluecaste.com
Rates
FULL PAGE (1 BROCHURE)…………………………………………………………. $500 - $700
FULL PAGE (2 BROCHURES, FW & S)……………………………………………… $ 900 - $1200

HALF PAGE (1 BROCHURE)………………………………………………………… $250 - $450
HALF PAGE (2 BROCHURES, FW & S)………………………………………………$400 - $600

QUARTER PAGE (1 BROCHURE)…………………………………………………… $125 - $325
QUARTER PAGE (2 BROCHURES, FW & S)………………………………………...$200 - $400

JUNIOR (1/8) PAGE (1 BROCHURE)……………………………………………….. $75 - $95
JUNIOR (1/8) PAGE (2 BROCHURES, FW & S)……………………………………..$100 - $300

MARGIN (1 BROCHURE).....………………………………………………………… $50

A higher rate package will be sold. This pack will include value added features that will incentivize
prospective advertisers. These features will serve as a bridge between this initiative and a more lucrative
sponsorship program. Value added features will include; onsite signage; web links; community
workshops; merchandise sales; category exclusivity; etc.

Target Market & Position of Service
Businesses that service the Metro Detroit area are the broad market for this initiative. We will direct a
strong focus towards medium to large- sized enterprises. The current economic situation makes it
necessary to target larger businesses, as smaller “mom and pop” operations have been most adversely
affected by the recession.
Through providing low cost advertising opportunities to businesses, this initiative can garner enough
business activity to sustain long-term viability. Its pricing model gives it a competitive edge as a more cost
effective option than traditional print media.
This initiative will serve as an entry point to a more significant revenue stream in the form of a
comprehensive marketing partnership between advertisers and the City. As the City engages businesses
with this newsletter initiative, we can prove ROI for potential partners. With this goal as a guide we will
look to create other sponsorship opportunities beyond the newsletter.
Our goal is to position the initiative, from the advertisers’ standpoint, as an affordable and highly effective
medium of communication with their customers. As mentioned earlier, we will provide lower rates to
advertisers than other similar publications. We will also provide value added services that increases
consumer engagement, by employing new media and other promotional strategies. The effectiveness of
this program will be measured in increased traffic to advertisers’ properties.

Client Recruitment Strategy
As mentioned earlier, medium- larger sized businesses will be the focus of our efforts. However, as the
pricing structure of the initiative remains relatively inexpensive, participation by smaller businesses is not
impeded.
As part of our strategy to realize “quality advertisers” (advertisers who are willing to extend their
sponsorship and other advertising support beyond this initiative), we will adopt the following methods
     Leverage current city vendor relationships
     Interface with local business and civic groups (chamber of commerce, rotary clubs, business
        networking groups, steering committees, etc.)
     Re engage sponsors from previous events
     Develop media partnerships (cross promotional opportunities with media distributors; radio, print,
        TV, outdoor, etc.)
     Contact businesses with track record of event sponsorship and advertising
     Contact businesses with interests in the area

As we explore these options we will grow interest in the program and use its successes as a primary driver
for later recruitment.

Our Services
As a media marketing company the goal of BC is to package advertisements that best reflects the City’s
and the advertisers’ goals. This representation of businesses to the residents would be honest and
forthright.
                                                                                        3 www.bluecaste.com
      Develop media kit
      Soliciting business and generating interest in Newsletter Initiative. Our focus in soliciting
     businesses is to find the “appropriate” business/ brand. These businesses must meet the following
     criteria
            i.  Provide products or services that benefit the consumers.
           ii.  Provide agreeable content in their marketing efforts.
          iii.  Offer a commercial incentive to staff and residents who choose to support their business.
      Working with advertisers to craft advertising messages suitable for brochure
      Negotiate rates with advertisers
      Liaison with printers to ensure that the integrity of the advertising remains uncompromised.
      Implementing and executing value added services across a variety of platforms (web, print, video
     & experiential)

Projected Revenues
We work with the local governmental unit to assess their needs and provide an estimate of revenue based
on the following costs; printing; shipping and handling, production (costs associated with our labor).

Compensation
We receive, as commission, a percentage of the total value of each advertising contract originated,
developed, negotiated and finalized. There are no upfront fees.




                                                                                    4 www.bluecaste.com

								
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