Online Marketing Proposal Offline

Document Sample
Online Marketing Proposal Offline Powered By Docstoc
					Marketing Plan                           Handy People
                                   Because Time is Money




Prepared by:

Armin Ausejo                       University of Washington
Jennifer Davies   Masters of Communication in Digital Media
Joe Hallock              Digital Media Branding & Marketing
Kate Roemer                          Lori Dugdale, Instructor
Chia-Fang Tsai
                                         November 20, 2005
                                                                                     Handy People
                                                                              Term Project Proposal

Marketing Objectives

The measurable marketing objectives listed in this proposal represent the goals Handy
People will strive to achieve in its first year of operation. The marketing objectives are
categorized and separated within our two target customer markets – consumers and
contractors.

During the first year of operation, the marketing plan for Handy People consists of several
high-level goals. The simple fact that the company is new presents a challenge to the
marketers. Our primary goals are slightly more difficult to achieve than those of a similar
company that’s been in business for several years. We’ll need to simultaneously create
awareness, positive experiences and efficient operations around a new brand and company.
These high-level goals will translate into slightly higher costs for a typical year of operations.
However, we suspect that the long-term benefits of our first year efforts will far outweigh
these escalated costs.


Measure Marketing Objectives

Brand Awareness Building:

Market #1 – Consumers

Brand awareness efforts for consumers will include several activities we hope will educate
our target audiences about our brand with positive messaging. This task will include
charitable activities that will translate into positive public relations pieces on television, radio
and in newspapers in the greater Seattle area. Simultaneously, we’ll start an advertising
campaign that will focus primarily in offline media such as print, periodicals, television and
radio. The primary use of online media is based on the age of the business. Online
advertising will also be important, but for the first year we will have an increased
investment in the aforementioned offline media.

    •   Primary Target – Women (age 30 to 50)

        Home improvement retailers and selected magazines will be the communication
        vehicles for our primary target. Research (which is detailed in the Marketing
        Communication Vehicles section) presents strong support for this decision.

    •   Secondary Target – People who are 60+ years of age

        In addition to the brand awareness efforts listed in the paragraph above, we will use
        email and online marketing efforts and consumer referrals (in the form of gift
        certificates) to increase brand awareness among this target.




                                                                                November 20, 2005
                                                                                     Page 2 of 15
                                                                                    Handy People
                                                                             Term Project Proposal

Market #2 - Contractors

Handy People will need to develop a comprehensive list of contractors. Recruiting these
contractors and continuing to develop positive brand recognition for additional skilled
workers will require alternative methods to those listed in our first market’s section. We
plan on utilizing four specific vehicles to target brand awareness activities to this market:
direct mail, partnerships and postings at local hardware stores, tradeshows, and online
activities.


Brand Awareness Goals:

Brand awareness can be measured by conducting a survey before and after the branding
awareness activities have taken place. Because the company is new – we expect that the
initial survey will show that most, if not all, of the survey participants will not recognize the
company or the brand. After a second survey is conducted upon completion of our first
year of operations, our goal is to have roughly 20% of the target market recognize our
company or brand.


Lead generation

Handy People’s goal is to generate a significant number of leads. A lead, in this case, can be
represented as a unique visitor to the web site. We expect that our leads will come to the
site based on the following activities: onsite advertising, direct mail, online advertising and
search engine placement, offline advertising, charitable giving, promotions and giveaways
and search engine optimization. (Note that the specific of this plan and the actual numerical
breakdown of each category is detailed in the Lead capture/qualification and cost analysis
section.)

Our goal for lead generation is obtain roughly 60,000 unique visits to the site. As detailed
in the lead capture section of this document, we believe that an investment of $63,410.00
will result in roughly 60,000 leads. Moreover, if 3% of these leads become paying
customers, we’ll earn roughly $450,000 in sales on this campaign.

Specific details on the actual communication vehicles, target users marketing, messaging
and lead generation are defined and detailed in the following sections of this document.




                                                                              November 20, 2005
                                                                                   Page 3 of 15
                                                                                   Handy People
                                                                            Term Project Proposal

Marketing Communication Vehicles

The Handy People website is designed to connect homeowners with qualified contractors to
accomplish a wide variety of home repairs and improvements, initially targeting consumers
in the Seattle metro area. Therefore, our choices of marketing communication vehicles are
based on building branding awareness among Seattle homeowners who need home repairs
and promoting brand value to contractors who will list with the service.


Branding Awareness Building

Since Handy People is a new business, the launch campaign will be the primary focus of the
initial marketing rollout. Due to the lack of name recognition, we will be using offline
advertising to educate the market about our brand.

At first, we will use the public relations reach of charitable giving to initiate interest. Handy
People contractors will contribute 40 hours of worker time to Habitat for Humanity. The
charitable action will be promoted through a press release and local media coverage, such
as the Seattle Times, drawing attention to this new entry in the home improvement market.
Additionally, local news and talk shows will be approached to feature Handy People in a
home improvement themed episode within the same time frame of the Habitat for
Humanity contribution project. This early presentation of the brand as benefiting the
community and homeowners individually will aide in spreading awareness.

Also, local radio giveaways are another PR approach to reach both homeowners and
contractors. The marketing team will cooperate with the top 3 popular radio programs in
the Seattle area to do short segments about home improvement and give away 5-10 hours
of work as a prize to attract listeners. The prospective media will include KMPS-FM, KUBE-
FM and KIRO-AM. According to the listenership rating of Seattle radio stations, which is
released by The Arbitron Co. in summer-quarter 2005, Country station KMPS-FM rules the
Seattle-Tacoma radio market, the “play-what-we-want” format radio program. Moreover,
KUBE-FM and KIRO-AM (news format) are right behind it, tiered at second and third.1

The PR efforts to draw attention to Handy People and it’s goals will assist in brand
awareness for consumers and project an image contractors will want to be associated with
for listing their services.

Furthermore, advertising will be focused on local papers such as Seattle Weekly, The
Stranger, Seattle Times and the Post Intelligencer focusing on building brand awareness and
directing traffic to the website. Because Handy People will be an exclusively online
presence, strategically placed banner and search ads will be used to direct traffic to the site.




1KMPS is at the top of the ratings yet again: November-13-2005
http://seattlepi.nwsource.com/tv/245519_arbitron22.html
                                                                             November 20, 2005
                                                                                  Page 4 of 15
                                                                                    Handy People
                                                                             Term Project Proposal

In addition, a number of small-scale awareness and lead generating activities will include:

    o   Welcome Wagons - We will place coupons with local groups who send “welcome”
        information” to new homeowners.

    o   Flyers will be posted in local hardware stores and distributed in home improvement
        & hardware warehouses, such as Home Depots and Lowe’s, in the Seattle area.

    o   Booths at local fairs and trade shows - Handy People will create a traveling booth to
        set up at local home fairs and possible county fairs to generate awareness both with
        consumers and workers.

    o   Magnets with the website and a list of popular tasks will be given out at fairs and
        key contacts like managers of local hardware stores.


Target Users Marketing

Based on previous market segmentation and competitive analysis, Handy People will be
serving two main markets: consumers and contractors. By better understanding our
customer profile we will be able to target our customers more effectively.


First Market & Primary Target Consumers: Women

Our primary target customers are 30 to 50-year-old women. According to Home
Improvement Research Institute (HIRI), they found the role of women in home improvement
project has a revolutionary shift. It turns out that women are not only the primary decision-
makers in all kinds of home improvement products purchases but also the principle doers of
home improvement tasks.2

This HIRI research also provides us with a perspective on where women most prefer to shop
for home improvement products: warehouse home centers, discount stores or specialty
stores. In addition, findings suggest that women tend to use magazines, friends and family
as information sources on the best home improvement approaches and products.3

Combining all of the information about the female home improvement-shopping scenario,
the marketing communication vehicles we chose are the home improvement retailers and
magazines.

In terms of home improvement retail stores, Home Depot and Lowe’s are the first two
highest ranked in North America. Home Depot operates more than 1,500 stores and
attracts over 22 million people each week.3 Moreover, Lowe’s serves approximately 11
million customers a week at more than 1,100 home improvement stores in 48 states. Since

2 A Seat At The Table : Women Are America's Chief Purchasing Officers: November-13-2005
http://www.moen.com/pressroom/article.cfm?cType=T&release=391
3 Home Depot’s cooperation overview: November-13-2005
http://www.homedepot.com/HDUS/EN_US/corporate/about/didyouknow.shtml
                                                                               November 20, 2005
                                                                                    Page 5 of 15
                                                                                           Handy People
                                                                                    Term Project Proposal

mid-May of 2005, Lowe’s started to send valuable coupons and rebate offers to their
customers and clients via highly customized direct mail featuring the photo and cooperative
company’s logo.4 It provides an exciting new marketing tool for our web site. In addition,
the number of Lowe’s locations is greater than those of Home Depot in Seattle areas.
Therefore, we will partner with Lowe’s to do direct mail marketing to our target users.

Once Handy People has established itself in the Seattle market and begins to expand, it will
look to reaching out via magazine advertisements. The top four bestselling home
improvement magazines ranked by Amazon.com are Handyman, This Old House, House
Beautiful, and Fine Home Building. Therefore, we also choose these four magazines to
promote our online services in future marketing efforts.5

Word of mouth will be a powerful tool for spreading awareness. To enable this, Handy
People will create a special referral coupon to be given to friends and family that will lower
commissions for friends and family provided they give feedback into how the system works.
To also further the sharing of great ideas in home improvement, we will promote a gift
certificate program promoting time as the greatest gift to be shared among friends and
family.


Secondary target consumers - Senior in the 60+ age range

A secondary consumer target consists of homeowners in the 60+ age range who find home
improvement projects unnecessarily taxing on time constraints and physical capabilities.
According to the research conducted by The Pew Internet & American Life Project, they
found the top Internet activities among senior who go online: 93% of seniors have used
email, 58% have gotten hobby information online; and 53% have searched for health and
medical information online. Therefore, we will promote our Handyman service by e-mail
marketing to reach the senior group.6

In addition, we also will cooperate with Senior Safe Home site
(http://www.seniorsafehome.com/), which teaches seniors how to take proactive steps to
modify their homes throughout their maturing years. This web site promotes two main
concepts: “Make your Home Senior Friendly” and “Aging-in-Place”. By cooperating with
the Senior Safe Home site, we can promote the idea of how to modify homes for the
aging-in-place market emphasizing that seniors can keep living in their homes safely,
independently and comfortably, with careful remodeling. Handy People can purchase email
lists through local senior organizations to build awareness of the simple to use site and
features available to benefit seniors. The promotion of the gift certificate program to the
primary market will encourage the sharing of handy man services with elderly family and
neighbors.


4 Lowe's Home Improvement - Realtor VIP Partner: November-13-2005
http://www.realtor.org/referral.nsf/pages/LowesHomeImprovement
5 Bestselling Home improvement Magazine on Amazon.com: November-13-2005
http://www.amazon.com/exec/obidos/tg/browse/-/637738/1/ref=br_lfsrt_/103-1834024-
4092648?rank=%2Bsubslot-salesrank&x=14&y=10
6 Rainie, Lee. “Wired Seniors: A fervent few, inspired by family ties.” Pew Internet & American Life.
September 27, 2001. (page 2)
                                                                                      November 20, 2005
                                                                                           Page 6 of 15
                                                                               Handy People
                                                                        Term Project Proposal

Second Market: Professional Contractors

Finally, professional and qualified contractors are a key element to the success of Handy
People. To target the handyman and contractors, direct mail sent to the roster from local
remodelers’ associations and flyers posted in local hardware stores are two main
approaches to reach them.

To recruit contractors and remodelors, we should get the roster from the remodelors
membership of the National Association of Home Builders (NAHB:
http://www.nahb.org/page.aspx/category/sectionID=433), which is made up with more
than 10,000 remodeling industry members in U.S.7 Next, we will pick the members which
are located in Seattle area. By direct mail contractors and handyman can mail back the
registration forms through prepaid return envelopes.

Moreover, posting flyers in local hardware stores is another approach to reach our
handymen and contractors. For a starting point, NWsource.com provides a best 10 Seattle
hardware stores list collected by people’s picks 2004.8 We can focus on these 10 stores to
strengthen our promotion. Besides the direct enrollment on the Handy People site, we also
provide the toll-free number for handymen registration to save time and increase the
efficiency.

Online, contractors and handy men can be reached through forums and professional
posting boards. By promoting the benefits of Handy People’s services in an online
community, we will increase our reach to contractors interested in expanding their business
on the Internet.


Marketing Messages

The overriding message in all marketing efforts will center on the “Time is Money” concept.
We will also focus the concept of “taking the effort out of home repair and improvement”
with sub-themes that related to relying on experts and reclaiming one’s valuable free time.
This message continuity will apply to both consumer and contractors. Consumers will be
relieved of time spent with DIY manuals and messy clean up from unskilled efforts at repairs
and upgrades, and contractors will be relieved of marketing and initial contact efforts for
their services and develop a new customer outreach by simply signing up.

The primary consumer market of women 30-50 will be courted with the consistent message
of time value. Advertisements designed to build brand awareness will be presented in a
humorous light with slogans such as “Borrow Bob’s Brawn,” “Rent Roger’s Wrench,” and
“Take Tom’s Tools” with the underlying tagline of “Time is Money.” The advertising will
focus on suggesting there are alternative methods to handling time repair that do not eat



7 Remodelors council: November-13-2005
http://www.nahb.org/page.aspx/category/sectionID=433
8 Favorite indie hardware store: November-13-2005
http://www.nwsource.com/peoplespicks/2004/shopping/hardware.html
                                                                         November 20, 2005
                                                                              Page 7 of 15
                                                                                   Handy People
                                                                            Term Project Proposal

up valuable free time. Ads will also present the antithesis of the DIY movement
encouraging consumers to save time and effort.

Direct mail targeting the primary consumer market will promote ease of use, both of the
website and the service, focusing messages that drive traffic to the site for trial runs with
coupons as primary incentive. Four by six inch postcards will be the primary direct mail piece
for the initial launch, and they will list the litany of tasks that could be done for you as well
promoter the easy access and reliability of service providers. The direct mailers will call for
action by providing coupon incentives to drive users to the website. In addition to
developing consumer awareness of the Handy People service, direct mail will provide an
invaluable lead-generating vehicle.

Online advertising, both through banners and onsite interactions will be focused on the
ease of interaction with the site and how it so easily saves time both online and off for
home improvement.

Additionally, the PR outreach focusing on charity and building community will appeal to the
altruistic nature of Seattle homeowners.

For the elderly consumer market, direct mail will be the main marketing approach, with
additional messages reaching them through localized media outlets. The primary
messaging fro this secondary market will be ease and reliability. They will be directed as to
the number of tasks that can be completed by the collection of rated and reliable
contractors. Users can be reassured by feedback from satisfied customers and find relief in
the number of tasks that are within their control to have done. Additionally, and
underlying message of safety will be directed to this audience.

In terms of online banner ads, the amount of space in a 468x60 pixels obviously is not large
enough for a photo-based advertisement. However, animation can still be used, thus Flash
can be utilized to convey a series of mostly text-based messages. These messages will again
stress ease and time saving in the Handy People service. They could be as simple as a text-
quoted conversation between two women regarding the service or an elderly woman and
her son, with the final slide of the animation being the Handy People logo, slogan, and
URL.

The other target audience consists of the actual contractors, directly reaching them
primarily through direct mail and at conventions and trade shows. At conventions and
shows, Handy People representatives will have promotional magnets presenting the
business info to hand out, along with flyers designed with less fluff than the postcards or
newspaper ads. Since the goal here is to get contractors to join the service, the flyers will
be much more descriptive and detail-oriented, including fees, number of customers already
using Handy People, projected number of future customers, example requests from
homeowners, the area covered by the service, and a graphical representation of how the
service itself works. Contractors need to buy into the service as something that will benefit
them as much as it will benefit Handy People, so breaking things down into details
encourage relevant questions and extinguish concerns. This creates the message that
Handy People is a professional, detail-oriented, and honest service. Along with the flyer, a

                                                                             November 20, 2005
                                                                                  Page 8 of 15
                                                                                   Handy People
                                                                            Term Project Proposal

full media kit will also be available which includes the flyer, along with business cards,
customer testimonials, and additional promotional materials.

In the direct mailings to contractors, the postcards will again be more straight and to the
point, yet detail-oriented. The complete cost breakdown will be included, along with some
short customer testimonials and most importantly, the current and projected number of
customers. Again, this helps show that Handy People as much wants to help the
contractors get more customers as it is trying to get contractors to join the service.
Contractors will be using the service much like Handy People will be using a newspaper for
advertising, so the messages sent to them will follow along similar lines.


Lead generation

Handy People is initially targeting only users in the greater Seattle area. As a result, despite
the fact that Handy People is a primarily online company, many lead generation and brand
awareness activities will take place offline.


Onsite lead generation and customer retention activities

Visitors to the Handy People site will be invited to take a quick, fun customer survey (1-2
questions) about the projects that never get done around their house. They will see other
customers’ votes when they submit their answers and will be encouraged to sign up for the
Handy People monthly home owners email to get a $10 coupon to fix their own pesky
problem. This not only gives us a way to get people to sign up for email, it also makes sure
those people are actually interested in home repairs and Handy People. The data gathered
from the fun, informal survey can then be stored for future emails as a customer tidbit and
as a way to guide marketing efforts – if everyone mentions installing light fixtures, for
example, Handy People can include text about lighting in future email or marketing
campaigns.

After a customer books for the first time and has their job completed, they will be
encouraged to refer 5 friends to the service with a coupon for a free hour of work as a
thank you for trying our service for them and a $10 coupon for each of the friends.

Also, all existing customers will be asked to fill out a short survey after each project is
completed regarding the contractor (to help build the database of reviews), the booking
process and the website experience as a whole. This creates a “switching cost” for the
customer should they decide to either book with the contractor direct or with a competitor.
We have all of their information and they have invested time with us to make the site better
for them and other users.




                                                                             November 20, 2005
                                                                                  Page 9 of 15
                                                                              Handy People
                                                                       Term Project Proposal

Costs and expected return
Onsite lead generation and customer retention activities:
Survey creation – All surveys will be created and analyzed in house.
Informal home page survey - Expect about 20% of users to interact with the informal
home page survey, with about 5% of those going on to book. Given expected monthly traffic
of 20,000 users, this campaign is expected to generate 200 extra bookings per month.
1st time user coupon – This is expected to raise customer return rates by 5% (the high
conversion is based on the customer already having self-selected as a Handy People user).


Online lead generation activities

Online lead generation will be focused on keyword buys in major search engines and ad
placement with key sites that match our demographics.

Handy People will buy Seattle-focused keyword placement with Google and with Overture
(covers Yahoo and MSN currently although that is changing). Using the Overture search
guidance feature (http://inventory.overture.com/d/searchinventory/suggestion/), Handy
People will initially focus the keyword buys on “Handyman Seattle” (168 searches in
September), “Seattle Home Repair” (112 searches in September), and if affordable, simply
“Handyman” (26,433 searches in September). The targeted results should perform better
with click thru but the general results will garner some name recognition.

We will also buy banner ad placement with SeattleTimes.com to target their Homes section
exclusively. This will help us reach the more affluent consumers who are also likely to be
researching or considering new home projects.

Costs and expected return
Online advertising:
SeattleTimes.com – Handy People will purchase 250,000 impressions at the category level
(targeting the Homes section) for approximately $5,000 (current pricing guidelines come out
at $5062.5).
Given a 1% average CTR, we expect to receive 2,500 website hits from the Seattle Times
campaign.
Google - Budgeting a $0.50 per click ad buy with Google to start ($5,000 for 10,000 clicks).
Expect approximately 6,000 clicks from Google and 2,500 from SeattleTimes.com


Offline lead generation activities

Offline lead generation will focus on three main campaigns. The first is a direct mail
postcard campaign to lists of contractors, new homeowners and female homeowners. The
second campaign is an ad blitz in the two local weekly newspapers, the Stranger and the
Seattle Weekly. The third group of activities will focus largely on the contractors. Handy
People will have booths at all of the major home and construction shows in the Seattle
area, looking to attract more independent contractors to join the service.


                                                                         November 20, 2005
                                                                             Page 10 of 15
                                                                                Handy People
                                                                         Term Project Proposal

We investigated doing a billboard or transit campaign but the cost did not generate
sufficient ROI. Basic campaigns start at about $100,000 with creative, printing and
placement. This may be saved for a second year awareness push or when Handy People
moves into other cities where the costs can be spread around more.

Direct mail

The direct mail campaign will focus on targeting key consumers with a message explicitly
for them. Contractors will receive a postcard listing the advantages of Handy People versus
other sites including ability to work when they want with online scheduling of
appointments, no marketing costs, and direct access to customers. New homeowners will
receive a postcard mentioning all the little things that new homeowners want to change or
fix about their new house including personalizing the rooms with fresh paint or installing
new lighting or bathroom fixtures. Female homeowners will be targeted with a message of
independence from the grind of home repair and independence from asking friends and
relatives for help.

Each direct mail piece to the two-homeowner groups will contain a unique coupon code
that will be used to track which users actually come to the site and book. The contractors
will be invited to an informational seminar about the Handy People service including a
demonstration of the booking function and advertising placement, and in general about
marketing on the web. The registration form will be online and accessible from both the
postcard mailer and the contractor information section of the Handy People website.

Direct mail costs and expected return
Direct mail:
Postcard mailers will be sent to new homeowners, contractors, and female homeowners
downtown Seattle.
$250 for list of 1,000 independent contractors for direct mail.
$250 for list of 1,000 new homeowners.
$250 for list of 1,000 existing female homeowners in downtown Seattle for direct mail
(deduced against new homeowner list).
$2250 for printing 4500 postcards (to be used for both direct mail and handing out at
conferences)
$1,110 for mailing 3,000 postcards
Direct mail total = $5,110
With 3,000 postcards sent, expect to see 3% come to the website – 90 qualified leads.


Local newspaper advertising
The advertising blitz in the Stranger and the Seattle Weekly will last 6 months. For each of
those 6 months, Handy People will buy half page ads in both papers, each selling a slightly
different feature of the website. Ads will be humorous and designed to appeal to the late
20s, early 30s apartment or condo dweller.




                                                                          November 20, 2005
                                                                              Page 11 of 15
                                                                                Handy People
                                                                         Term Project Proposal

Local newspaper advertising costs and expected returns:
Local newspaper advertising: $27,600
6 month _ page ads in both the Seattle Weekly and the Stranger - $27,600
The Seattle Weekly reaches about 209,700 readers, assuming similar numbers for the
Stranger.
Given a 0.3% conversion, this is expected to generate 6,291 visits to the website but will also
help drive general brand awareness.


Conventions and trade shows
Handy People will plan to have a very simple booth at the Seattle Home Show with two
computers to show contractors and homeowners how the Handy People site works and the
business card magnets to make sure people leave with the URL. There will also be a raffle
for 4-hours of work. All entrants will be added to the in-house customer database and
included in the appropriate postcard mailing (see above).

As trade shows tend to have an older, more affluent demographic, the collateral for this
campaign will be targeted at older users and contractors (likely other exhibitors).

Convention and trade show costs and expected returns:
Convention and tradeshow presence - $3,500
Although rates for the 2006 Seattle Home Show have not yet been posted but the Portland
Home & Garden Show is charging $950 per booth. Estimating $1,000 for booth space,
assume computers are company property.
Business Card Magnets to hand out at trade shows:
10,000 @ .15 a piece - $1500
Flyers:
Flyer design created in house
$1000 for printing costs ($.10 x 10,000)
Estimated attendance is 30,000, expect about 20% will sign up for drawing and 3% will
actually book on the site – 6,000 names for mailing list and 180 purchases.


Public relations
Handy People will host a launch event with Habitat for Humanity designed to drive
employee morale, create a team environment and emotional bond with contractors and
community. Handy People will pay all contractors who are listing on the site at launch to
work for a day for the Habitat for Humanity.

Handy People will also pitch prospective media outlets including KMTT, Northwest
Afternoon and Evening Magazine on doing short shows about home improvement. As an
incentive, Handy People will provide 1-2 4 hour increments of work as prizes to attract
listeners/viewers.

Standard monthly press releases will be sent to area business newspapers explaining the
service and any big wins to keep Handy People top of mind as an up and coming business
to watch.

                                                                          November 20, 2005
                                                                              Page 12 of 15
                                                                                Handy People
                                                                         Term Project Proposal

Public relations costs and expected returns:
Charitable giving: $4,000 (assume 6-7 contractors participating at about $80 an hour)
This event will not directly affect the bottom line in that no leads are expected to be
generated. This is purely for PR with both contractors and customers.
Promotions and giveaways: $3,200
This covers such promotions as the radio and television placements and the coupons in various
outlets.
Handy People plans to give away 10 4-hour blocks of work on shows like Northwest
Afternoon, local morning TV shows and local morning radio shows.
4 hours at $80/hour = $320
Expect to drive 20,000 hits to the website.


Marketing Costs and Effectiveness

Marketing costs will not exceed $70,000 for the first year.
Onsite advertising = $0
Direct mail total = $5,110
Online advertising and search engine placement: $10,000
Offline advertising: $31,100
Charitable giving: $4,000
Promotions and giveaways: $3,200
Research: $5,000
         Handy People will run two focus group research projects with the first focusing
         on users who have never heard of Handy People and the second on those who
         have used the service and how they would improve it.
         Estimated cost $2000
         Surveys will be generated in house and sent to all customers using the site once
         their service is completed and to all contractors once a month.
         No estimated cost as survey creation and analysis of data will be handled in
         house.
         Handy People will also implement a very basic site analytics tool.
         Estimated cost $3000 for first year.
         These costs will not directly improve the bottom line but will help Handy
         People improve the website experience long term.
Search Engine Optimization: $5,000
         Handy People will hire an outside firm to optimize their site for effective search
         engine placement for a one-time cost of $5,000.
         Expect this to improve natural search patterns and drive additional qualified
         shoppers.
         Estimated additional 20,000 clicks in the first year.

Total costs:
Onsite advertising                                             $0.00
Direct mail                                                $5,110.00
Online advertising and search engine
placement                                                 $10,000.00
Offline advertising                                       $31,100.00
                                                                          November 20, 2005
                                                                              Page 13 of 15
                                                                              Handy People
                                                                       Term Project Proposal

Charitable giving                                       $4,000.00
Promotions and giveaways                                $3,200.00
Research                                                $5,000.00
Search Engine Optimization                              $5,000.00
Total estimated marketing spend for all
launch/1st year campaign efforts:                      $63,410.00

Total traffic generated:
Onsite advertising                                              0
Direct mail                                                    90
Online advertising and search engine
placement                                                    7,500
Offline advertising                                         12,291
Charitable giving                                                0
Promotions and giveaways                                    20,000
Research                                                         0
Search Engine Optimization                                  20,000
Total estimated site traffic generated:                     59,881



                            CAMPAIGN ROI CALCULATOR

Success estimates for all online/mass market marketing efforts where # of
consumers reached and estimated conversion varies by medium. This table
assumes # of users brought to the website by marketing activities detailed above.

                                           Best Case         Average          Conservative

Number of Clicks/Hits to the Website         59,881           59,881               59,881
Estimated Response Rate                       5.0%             3.0%                 1.0%

Number of Leads Generated                      2,994           1,796                   599
                                                   $
Avg Sale Per Customer                         250.00    $     250.00          $    250.00
                                                   $
Estimated Sales from Campaign             748,512.50    $449,107.50           $149,702.50
Gross Margin                                    20%            20%                   20%
                                                   $
Estimated Gross Margin Dollars            149,702.50    $ 89,821.50           $ 29,940.50
                                                   $
Cost of Campaign                           66,845.00    $ 66,845.00           $ 66,845.00
One Year Gross Margin ROI                       2.24           1.34                  0.45
Three Year Gross Margin ROI (2X)                4.48           2.69                  0.90




                                                                        November 20, 2005
                                                                            Page 14 of 15
                                                                                 Handy People
                                                                          Term Project Proposal

Given Handy People is a brand new company, and many of the lead generation activities
will also involve brand awareness building, a high initial marketing cost is to be expected.
While the ROI is not rosy, the long-term effects of gaining customer mindshare far
outweigh the initial low results.




                                                                            November 20, 2005
                                                                                Page 15 of 15

				
DOCUMENT INFO
Description: Online Marketing Proposal Offline document sample