Final Campaign Analysis

By

Audrey FortinJoshua Hartson

Erica MasonMustapha Makri

A paper submitted toLindsey Fair

in partial fulfillment of the requirementsof MCOM 30

April 25, 2013

The Client

1. Concise description of business to show understanding of client.

Blueprint is a clothing retailer in downtown Kingston. The store boasts an urban style and carries fashions that are considered “everyday trendy.” The boutique carries brands like French Connection, Seven, J Brand, Citizens of Humanity, Lacoste, Vero Moda, and Fred Perry, just to name a few. The brands carried tend to 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 enjoy a great selection of trendy clothing and love the downtown experience. Students and young business professionals within the above age group live downtown and enjoy the urban feel it provides.

Blueprint does not do traditional marketing; rather, sales promotions, store signage, and networking opportunities are used in order to build brand awareness. The owner, Cyndy Gibson, has experimented with different events run through 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 for the 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 purchases

The direct marketing campaign was given no budget; therefore, it needed to be done with little to no cost. Cyndy was looking for a campaign that was creative, but also resonated with her target market.

The Target Market

1. Summative description of the target market.

The original target market for our Blueprint campaign was young men and women in the Kingston area. We were targeting both sexes to not only appeal to a younger demographic (especially with Queens’ campus being so close to the store location) but to also try and appeal to couples and attract more male shoppers.

After creating, handing out, and receiving results from the first draft of our survey we came to the conclusion our demographic was too broad and we would have to narrow it down to a more specific and well defined demographic.

We then decided that a more appropriate target would be young business professionals in the downtown Kingston area. We chose to target young business professionals because we felt they matched Blueprint not only location wise but they match the type of clothing Blueprint has to offer. Moreover, their income is more 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 both male and female young business professionals in the downtown Kingston area as they are working within a short distance from Blueprint. In relation to the fashion industry, we wanted our target to be those who are fashion forward and have an urban style, but also enjoy the casual side to fashion. By asking questions like where people shop and what brands they are interested in, we were able to decide if Blueprint was right for each segment.

3. Completed list in proper field type format showing segments and updated at completion of campaign.

See Attached.

The Big Idea

1. Describe the overall idea, how it came to be and how it meets the goals of the client.

The idea behind our Blueprint campaign was to produce a direct mail piece to not only appeal to our target but to intrigue them and create a feeling of exclusivity. To do so a miniature briefcase mail piece was made to fit with the idea of business professionals. Each briefcase was hand delivered to each person on the list. Inside, each briefcase contained two business cards, one for the person on the list and the other, blank card, for a friend. Once the business card is redeemed at Blueprint Clothing Store, the person receives 20% off their purchase followed by an entry into a draw to win either a $50 gift card or a pair of tickets to The Grand Theatre.

The idea for the miniature briefcase was inspired by a professional’s lap top bag or briefcase. The case resembled something that Herschel would create (a popular brand carried at the store), which would give a taste of some of the styles found at Blueprint. The direction of the campaign met the goals of the client as it not only increased the database by having a possible referral, but it increased awareness of the brand.

The Message

1. Explain the offer and why it was chosen.

The particular offer was valid from April 1, 2013 to April 19, 2013; the offer included a 20% discount for every purchase of $75 or more. In order to qualify for the offer, the young business professional would need to bring in a filled-in business card with all their contact information. The business cards were then entered into a draw for a pair of tickets to see ‘Africville Suite’ at The Kingston Grand Theatre accompanied with a $50 Blueprint gift certificate to help pay for an outfit for the night out.

The particular offer was developed exclusively for local business professionals who help fuel economic development in Kingston’s core. A discount offer was an appropriate offer for this specific target because it gives them the feeling of exclusivity. The offer was unique since there are rarely offers or promotions that are designed solely for business professionals, and by executing that offer we are giving more value and support to Kingston’s professionals.

The offer was appropriate because Kingston is a well-connected town with many young professionals in the target area, word of mouth is a great way to advertise and 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 customers work 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 regular

customers

The Channel

1. Explain the channel chosen and why.

The primary channel chosen for the direct marketing campaign was print direct mail. This method was chosen due to the fact that print mail has proven response rates as well as our contact list is a house list that has been generated by surveys completed by Kingston’s young business professionals. A print campaign with a creative, unbeatable offer is sure to attract any consumer, therefore by creating a 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 contact with the prospective customer. The piece that has been created for Blueprint is addressed, and specially delivered, by using these techniques it allows for responses to be measured easily and accurately.

As a secondary channel, email was used as a reminder tool. Our target market of young business professionals use email daily and therefore, the channel is thought to be a great way to contact our list. Timing strategies were used when emailing 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 the website provides detailed campaign reports outlining the number of times opened, click rates, bounce backs, etc. This information was useful when analyzing analytics and results.

As Blueprint is a modern clothing boutique, it is apparent that both traditional and new marketing strategies are needed, meaning both channels were equally as important 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 people listed on the database are all young business professionals working in the downtown Kingston area. By hand delivering the miniature briefcase/business card “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 piece will not get damaged in its travels—a minor but key thing.

The secondary channel, Mail Chimp (email) will be implemented based on a timing strategy. As the campaign officially begins April 2, 2013, the email blast will be sent to the list as a reminder tool four days after the campaign has launched.

The Channel Continued...

The email will have all pieces of the offer, making it quick and easy for those to print and redeem the offer. This will also be helpful on the off chance that a few of the contacts did not receive the direct mail piece but additionally provides the list an opportunity to send the offer to any friends and family. Seven days before the end of the campaign, an official countdown reminder email was once again sent to the list. This email was very short and acted as a final method to enforce the urgency of the offer.

3. Highlight the industry standard for redemptions within that channel.

Direct mail campaigns have varying response rates, however, the typical response rate is 0.9%, a high response rate is considered 1.9% and a low response 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 in the United States per year. In order to increase the amount of responses, it is suggested that a house list is used instead of a prospective list. House lists will provide a database of current and previous customers and therefore will increase the 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 response rate 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 the proper timing of the campaign. The email must be specific, to the point and eye catching for the target market. The email campaign is normally the first thing that draws the consumer in, thus, a creative offer must be well thought out. An average 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. Email campaigns are solely based on the idea of click, pass on and buy.

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The Creative

3-D Brief Case: Inside

The Creative Continued...

3-D Brief Case: Outside

The Creative Continued...

Business Cards (Found inside the briefcase):

The Creative Continued...

Mail Chimp (1st Mailer):

The Creative Continued...

Mail Chimp (Reminder Mailer):

The Results

1. 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 sale which would help to determine how much a 20% discount would cost from missed opportunity in sales prospective. Also, we wanted to track the cost per transaction to determine the true cost of the campaign. And finally we wanted to know the total profit from the sales after the promotion is done; however, since there were no redemptions from the promotion, it would be hard to determine the true lifetime value of the campaign. In terms of response, the emails sent out through Mail Chimp were viewed. Two emails were sent, one was four days after the campaign was launched, and the other was one week before the end of the campaign. The metrics from the Mail Chimp report indicated how many targeted customer opened the mail and how many times they opened it (18 from 37 opened the first mail 45 times, and 15 from 37 opened the second mail 18 times). As a result, the only metrics to be determined are the expenses of the campaign and the number of responses responses, which is the number of times the mailer was opened. The numbers for the total generated revenue and the offer-generated revenue cannot be determined with missing information.

2. Describe any noticeable differences before and after the revisions were done.

Ten days after the campaign was launched, we had some kind of feed back from Cyndy about the primary results of our campaign. We were told that no one had redeemed our coupon so far so we had a meeting and we decided to send a second mailer to the 37 targeted customers through Mail Chimp. The main goal of the second mail was to remind them about the offer and encourage them to go 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 of response. 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 first time.

The Results Continued...

3. Estimate versus actual numbers of the appropriate analytics that highlight the benefit of this campaign. (CPP, CPR, CPS, GP, BLP if possible, LTV, and ROI).

Since we didn’t have any redemptions of the offer there were no sales generated from 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. That

means that the total cost of the briefcases is $44.• The cost of one business card is $0.1, and we printed 100 card. That

means that the total cost of the cards is $10 • Miscellaneous costs: $30

The direct campaign expenses is 44+10+30 = $84 The number of pieces sent is 37.

As a result, the CPP=84/37= $2.27

2- CPRThe direct campaign expenses divided by the number of responsesThe direct campaign expenses = $84

The number of responses (how many times the mailchimp was opened) = 18(the first mailer)+ 15 (the second mailer) = 33.As a result, the CPR = 84/33 = $2.54

4. Include metric and analytic reports available through tools used.

See the following charts and tables.

The Results Continued...

Mail Chimp Report (1st Mailer):

The Results Continued...

Mail Chimp Report (2nd Mailer):

The Analysis

1. Determine future recommendations based on results for the client to du-plicate, discontinue or expand this campaign. Taking into consideration all milestones, 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 recipients enough to open the mailer, but not to use the coupon inside or take action. The briefcase concept could be easily duplicated by the client if they were to do another direct mail or email campaign.

In retrospect, there are two major areas that could have been improved upon, which are the list and the offer. The initial list was developed surveying 25 college students at St. Lawrence College, 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 team member of JEAM had established during placement. The survey yielded approximately 55 responses and gave us crucial data. The list allowed us to filter out those who were not young professionals or people who do not shop/live in downtown Kingston. The final list included people who were older than the defined target market and who did not live in the downtown area; therefore, creating a disconnect between the client and the new potential customer. The offer was perhaps a little too generic and the recipients did not know how to respond. For some of 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. The offer was just a standard offer and did not have a creative flare. Perhaps something simpler may have driven customers into the store.

The creative design of briefcase was executed just how it was imagined. Many recipients commented on how “cute” or “creative” the briefcases were. The Blueprint brand or store location information was not that prominent on briefcase which may have hindered the campaign’s success.

Timelines were definitely a factor in our direct marketing campaign. Creating a list took longer than we had anticipated. If we had waited longer for survey results, we may have got the information for people who would have fit the target market better. Moreover, the final decision on what type of offer to use was made quickly. Brainstorming more as a team would have brought 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.