Marketing Plan

Lazarian World Homes

Marketing Plan: (Jan. 2009 – May 2009)

Skylar BarrettEileen Bering

Shawn CowardKenneth KreiderNoble’D Shelton

May 2009

PL

NU

/BU

S 3

32 M

arke

ting

Pla

n P

roje

ct

Lazarian World Homes Marketing Plan

Table of Contents

Preface................................................................................................................. 4

Chapter One: Executive Summary......................................................................5

Chapter Two: Introduction and Background........................................................7

Chapter Three: Situation Analysis.......................................................................9Company........................................................................................................9Customer......................................................................................................10Competition..................................................................................................13Macroenvironmental Factors........................................................................15Conclusions from Situation Analysis.............................................................16

Chapter Four: Lazarian World Homes Mission, Strategy, and Goals..................18

Chapter Five Marketing Strategy........................................................................19Objectives.....................................................................................................19Segmentation and Targeting Strategy..........................................................20Positioning....................................................................................................20Marketing Mix Strategy.................................................................................22

Chapter Six Tactical Marketing Program Plans...................................................23Product (Good or Service)............................................................................23Pricing Plan..................................................................................................24Distribution Plan...........................................................................................24Promotion Plan.............................................................................................24Partners Plan ...............................................................................................25

Chapter Seven Measures and Evaluation...........................................................27

Appendix A – Marketing & Promotional Calendar...............................................28

Appendix B – Promotional Elements...................................................................30

Appendix C – Survey Instrument........................................................................31

Author Profiles.................................................................................................... 32

PLNU/Bus 332 Marketing Plan Project • 2


Figures

Figure 1: Age of Respondants…………………………………………………………11

Figure 2: Environmental Conscientiousness.......................................................11

Figure 3: Willingness to attend an auction…………………………………………..12

Figure 4: Competition within the non-profit service industry................................14

Tables

Table 1: Promotional Budget as a Task-Oriented Percentage.............................29



Preface

The objective of this assignment was to prepare a suitable and creative marketing plan for Lazarian World Homes. At the end of the semester we are to present our proposal at a school-sponsored trade show.

The intended audience of this marketing plan is Professor Coil as well as the employees of Lazarian World Homes and experienced marketing professionals.

This plan will be beneficial to the employees of Lazarian World Homes as well as any who may find the company to be a valuable undertaking. This not only proves our successful completion of a required assignment for BUS332, but an introduction to a powerful and opportune endeavor.

Throughout this project, the team has been given an ideal opportunity of first-hand experience with a typical marketing prospect. It has taught us how to specify a target audience, find the strengths and weaknesses of a company, promote key, particular attributes, and many other important marketing tasks.



Chapter One:

Executive Summary

Background

Poverty is a growing problem that cannot be ignored. Not only are people unable to afford satisfactory housing internationally, but destitution affects the United States as well. Lazarian World Homes is a non-profit organization whose mission is to House the World. They were founded with the objectives of providing the less fortunate with proper housing accommodations that were both affordable and environmentally friendly.

Lazarian World Homes has maintained an innovative method of Eco-friendly construction. They utilize simple materials with straightforward instructions. A structure can be constructed within two days using steel rebar, concrete, and recyclable polystyrene (EPS) blocks. This construction process is as simple as assembling Legos. Lazarian encourages groups to purchase the EPS blocks from them as well at a below-market cost and begin their own building projects.

Because this company runs strictly off of donations, it is imperative that awareness is created about the company in order to introduce and position them favorably to the public. Lazarian has segmented the target market based on age and life cycle phase. The two segments that would be most marketable are the 25-years-old and under crowd along with the 51-years-old and over age group who both frequently attend church. Even though these two groups are clearly at different cycles in life, they each have important things to contribute to the company.

The 25-years-old and under category would most benefit from being appealed to by the service they can contribute: time. Volunteer efforts are what run Lazarian projects. They may not have excess money they can donate, but their willingness to participate and be a voice for the cause is one of the key attributes that will help propel the organization.

The 51-years-old and over group is most likely at a stage in life where their disposable income is higher. They will most likely attend church and be from middle to upper social economic status. This will be the segment to encourage monetary donations, which is one of the main forces necessary for Lazarian World Homes to continue serving the less fortunate.



With Lazarian World Homes being a new competitor in the non-profit market, it is important to concentrate on positioning this company among other high-level competitors. Their most threatening contender is Habitat for Humanity who boasts a similar volunteer-based system and is highly prominent in the market. However, Lazarian will be able to promote its dedication to environmental protection, which will be able to differentiate it from others.

The product in this case is a service that Lazarian is offering. In order to gain financial support, Lazarian plans to advertise a sponsored silent auction. Individual and local business donations will be accepted. The auction will be held at Point Loma Nazarene University and to encourage guests to participate, Lazarian will supply a free raffle for all who bid on an item.

Another method of gaining monetary assistance is the introduction of the “adopt a block” campaign. This will enable people to commit to donating $10 a month to send an EPS block to a current project site. They will be updated on where their donation is being used through an e-newsletter.

Currently, Lazarian World Homes partners with Point Loma Nazarene University, Baylor University, and the Armenian Relief and Development Agency. This alliance allows for a positive association with socially-conscious institutions.

Promotion efforts are one of the primary tasks for the first planning year. The auction and “adopt a block” campaign will attempt to raise awareness and good-will about the company as well as increase funding. A budget of $20,000 is being created for promotional advances.

Lazarian World Homes is an up-and-coming organization with a selfless mission of taking care of others. Their strengths are many and with the help of some marketing ingenuity such as this plan, they will be able to gain a positive perception among the public and throughout the non-profit market.



Chapter Two:

Introduction and Background

Lazarian World Homes is a non-profit organization that seeks to house families in affordable, Eco-friendly, easy-to-build homes. They also wish to be a part of expanding churches, schools, etc. Lazarian World Homes partners with Point Loma Nazarene University, Baylor University, and ARDA in order to bring cost-effective structures to people in need.

Ground-breaking recyclable polystyrene (EPS) blocks are used in conjunction with concrete and steel rebar. The process of building these structures is a simple procedure similar to Lego construction. It is a quick and efficient way to bring Eco-friendly homes to low income families or anyone else in need. This method of construction is not only cost-efficient, but has been tested to withstand earthquakes, floods, storms, and natural disasters. The EPS walls do not absorb water and are pest resistant. They have an economic life of 40-50 years. When the useful life of the building expires, the EPS blocks can be ground into soil, exhibiting their environmentally-sound nature.

The marketing plan is to present Lazarian World Homes to churches in the San Diego County area and encourage them to donate time or money to Lazarian World Homes. Lazarian World Homes has recently built a seminary in Tecate, Mexico. The video of this project will be shown in order to give people a better idea of the unlimited possibilities the EPS blocks can bring to families. A secondary focus will be to convey Lazarian World Homes’ mission and encourage the churches to develop their own mission teams and purchase the EPS blocks to begin their own building projects. They will also be invited to participate in a monthly sponsorship, which will consist of buying one EPS block for $10 a month to contribute to current and future projects.

Churches will be shown the economic benefits of this type of construction by comparing the costs of building a traditionally built structure and an EPS block building. Once enough donations are received from local businesses and individual sponsors, they will be auctioned off at a benefit event sponsored by Lazarian World Homes, and will be held at Point Loma



Nazarene University with all the proceeds going to Lazarian World Homes.



Chapter Three:

Situation Analysis

Company

Strengths

Lazarian World Homes is competent in many areas. Their mission is concise and simple: House the World. The company boasts a dedication not only to people, but to keeping the environment safe as well. The recyclable polystyrene blocks used in conjunction with concrete and steel rebar make their method of home building both affordable and user friendly. It is these environmentally-sound building materials that could set them apart from contenders in the market. Lazarian World Homes brings an innovative and cost-efficient technique to those in need of housing and other facilities. Projects have progressed both in Armenia and Tecate, Mexico.

The cost associated with the construction of their structures is significantly less than their competitors. Walls can be erected within two days and despite the simplicity of the construction process, each facility has a lifespan of 40-50 years. Afterwards, the EPS blocks can be ground into soil. The buildings have not only been tested to withstand natural disasters, but have proved to be pest resistant as well. The brief construction time allows for simplistic procedures, which can be taught to those without any prior construction experience in addition to erecting more buildings in shorter time spans.

Lazarian World Homes has the benefit of partnering with well-established institutions such as Point Loma Nazarene University and Baylor University as well as the Armenian Relief and Development Agency. This companionship is able to create significant clout among the non-profit association circles. Along with the institutional partnerships, Lazarian benefits from the service of well-seasoned and knowledgeable staff members who are dedicated not to seeking financial gain, but furthering the mission of the company.

Although the use of polystyrene blocks for construction is not a recent discovery, their use is relatively unknown. Lazarian


Their mission is concise and simple: House the World.


World Homes has the benefit of learning from the marketing failures of the originator of these blocks. Society was not ready for the “Green” movement when the blocks were first marketed, which led to their predestined failure. However, with social awareness actively becoming a forefront of today’s culture, this Eco-friendly product has a great potential to succeed in the present-day market.

Weaknesses

There are some limitations with Lazarian World Homes that are important to be aware of. Firstly, they are a moderately new company, which makes them unknown to the public. They are in direct competition with organizations such as Habitat for Humanity who have enormous influence and seniority in this field. It could be difficult for Lazarian World Homes to make a separate name for themselves due to the fact that their mission is somewhat similar to their competitor’s.

Observers may not believe that the organization has enough authority yet in the matter because of their low number of completed projects. It also may be difficult to market the use of the polystyrene blocks to the general public. People might assume that the buildings built by Lazarian World Homes are not up to proper standards because of the notion that polystyrene is not perceived as a durable material. Although Lazarian World Homes lays claim to the fact that both these materials and the process are cost-efficient, the general public may be deterred because many are often willing to pay more money to know they are receiving a quality result.

Customer

The target customer has been segmented by age. The first is a male or female that is 51 years or older. The customer is a regular church attendee and is at the point in life where he/she has extra money to support projects or causes he/she is passionate about. They are at the stage in their life where their children (if they have any) are older and moving on with their own lives. This gives the customer more time to think about contributing to the next generation and giving back to society. The customer is environmentally conscious and although they might not be aware of this specific company, they are more than



likely willing to support ecological homes. These people may either be religious and/or are interested in helping others and feel that it is their personal responsibility to help the less fortunate.

The second segment is a young adult age 25 and under. These customers may not have the resources to either make a monthly donation or donate to a service. Instead, they are willing to help with their personal time; in terms of helping run auctions, informing others about Lazarian World Homes, volunteering with this organization, and more.

Participants of a survey were asked to disclose their age in order to decipher which age group would be most willing to help or become involved with this organization. The age groups were split up into four different categories (as seen in Figure 1). These categories are 25 and under, 26 to 35, 36 to 50, and 51 and over. This seemed like the best way to separate people based on stereotypical stages of the life cycle. Traditionally, a 25-year-old and a 50-year-old are in two different phases of life in terms of family, income, occupation, and education. They may have two completely different ideas about what is important in terms of giving back to society and therefore, what they can give back.

The research conducted shows that people ages 51 and older were more interested in this product than the rest of the age groups. The 25 and under were the second highest category, and the 30 to 40 year olds were least interested. It appears that the 30 to 40 years olds could be in a stage of life where they have younger dependent children, aging parents who need assistance, demanding careers, or not enough time and resources to give.

The most common responses regarding how people thought they could contribute to Lazarian World Homes was with money and prayer. The benefits people are seeking with this product are the personal satisfaction of having helped the less fortunate, bettering the environment, and being able to give back to the community. Figure 2 shows the average amount that participants felt conscious and passionate about the environment. The 63% of people who claimed to have an average or above average amount of concern about the environment proves that marketers would benefit from promoting this aspect of the company.



A survey showed that 55% would or might be interested in volunteering with Lazarian. Forty-five percent of those surveyed said they would be willing to donate $10 a month to a worthy cause. However, only 35% of the respondents appeared to be interested in attending an auction to help benefit the company; this is something to be aware of (see Figure 3).

One of the benefits of Lazarian World Homes is that people of all ages would be able to help contribute. They would be able to give their time and work at a silent auction, go out to business and ask for donations, or even give a donation themselves. In contrast, if people don’t have the financial resources to support a silent auction, they may feel like they have nothing to contribute, which is not true. Lazarian World Homes believes that people can contribute in other ways such as time, energy, and prayer.Figure 1: Age of Respondents

Figure 2: On average how environmentally conscious respondents claim to be



Figure 3: Willingness to attend an auction that benefits Lazarian World Homes

Competition

Lazarian World Homes will inevitably face many forms of competition in quite diversified ways. The reason for stating this is due to the fact that many churches participate in a wide range of not for profit organizations and the primary goal is to break through such barriers to find churches and other organizations that are willing to partner with Lazarian World Homes and to help in their efforts to build economically and environmentally sound structures.

The largest form of competition that will be faced can be assumed to be Habitat for Humanity. Habitat for Humanity is a sizable and reputable corporation that builds houses for less privileged people around the world. According to research, Habitat for Humanity typically builds a three bedroom house that is no more than 1050 square feet wide (Habitat.org). The houses that they build are also for low income people. This is the same market Lazarian has been involved with.

In conducting research into Habitat for Humanity, one of the disadvantages that they have is that the type of materials used in their building projects is not specified. This can be a great advantage to Lazarian because can specifically market the benefit of using their recyclable EPS block. The building process and standards of the establishments are advertised on the website. This shows how user-friendly the Lazarian method is, which makes it more accessible to the public.



Another advantage Lazarian World Homes possesses is the low costs of production. While Habitat offers their homes for $60,000 Lazarian World Homes can provide not only homes, but communities for about $25,000 to $30,000 per structure.

The significant disadvantage in competing with Habitat for Humanity is that they are a large company who has been a prominent force in the not-for-profit industry. A major challenge will be competing with this powerhouse. However, by informing people the advantages that Lazarian provides, the company can continue expanding into third world countries as well as break into the United States market.

Lazarian would also be competing with other indirect organizations such as Plan USA and Feed the Children Organization, which encourages monthly sponsorships or donations. Lazarian would be competing with these nonprofit organizations because if a person or church is already involved with helping this type of organization, it could prove difficult to influence them to sponsor the “block a month” Lazarian plans to offer. An advantage to competing with such organizations though would be to let people know that they can take an active approach to helping the less fortunate instead of only donating a few dollars here and there. They can actually get involved with Lazarian by volunteering to work on a project and not merely donating.

A disadvantage that these companies face is their marketing technique. With organizations like Plan USA it almost seems as though viewers are being forced to participate due to the fact that their advertisements market to one’s conscience and lays guilt on those who refuse to donate. Feed the Children employs the same tactics when they try to guilt the potential investor into contributing by showing starving children in Africa. There are better ways to get the message across and Lazarian can capitalize on that.

A.M.O.R. would be a more practical competitor in this market because they take a much more tactful approach to their advertising endeavors. They also allow people to either donate or volunteer, which would make competing with them a harder task. However, this ministry particularly targets inhabitants of Mexico, which doesn’t allow for much growth into other markets.



Lazarian has the benefit of learning what works and what doesn’t in this market. Although they may lack in comparison to particular forerunners in the industry, they have advantages that if capitalized on, could make them a major threat for others. Figure 4 shows a current comparison between Lazarian World Homes and its competitors.

Figure 4: Competition within the non-profit service industry

Note. Vertical axis scale ranges from 0-6: six being the top score.

Macroenvironmental Factors

When it comes to social factors, Lazarian Homes needs to remember who they are targeting. Lazarian is in the business to provide the underprivileged and the poor with affordable, eco-friendly housing. Therefore, Lazarian has the upper hand in their social standing because based on the survey, 78% of participants believe it is important to help the less fortunate. This finding should be consistent with the general public and shows that a non-profit organization has the potential to prosper.

Unfortunately, in this poor economy it is going to be difficult to get the general public to donate money to this cause. People are on a tight budget and are not as likely to give money away to non-profits such as Lazarian. Lazarian needs to market properly and find people who are still willing to give their extra money away in this tough economy.

Lazarian World Homes has the edge when it comes to a new idea. No other competitor is using the same tools to build homes. They need to use this to their advantage and let the



population know that they have a breakthrough way to build inexpensive homes. That is why letting churches know what this new technology is and having them spread the news will get people excited about Lazarian.

Politically and socially speaking, Lazarian needs to be aware that people in the United States right now are focusing on how to fix this country’s needs. Lazarian is building homes for other countries and they might need to focus on helping the poor in the United States as well before gaining enough credibility.

Conclusions from Situation Analysis

Lazarian World Homes is an exceptional organization with a fantastic mission statement. There are many positives about this company as well as obstacles that should be monitored. They offer environmentally-sound building materials that could set them apart from contenders in the market. The innovative technique used is both practical and efficient. Lazarian also has the benefit of learning from the successes and failures of its predecessors. It appears that the current market is more willing to entertain an Eco-friendly idea.

Lazarian World Homes has an advantage with this new innovative idea. There is no one else in the field using the same materials or methods. Lazarian has the upper hand in their marketing strategy because based on the survey an overwhelming amount of participants had at least an average amount of awareness about the environment. This shows that the environmental nature of the process can be an advantage in their marketing strategy.

However, a number of issues have arisen from the situation analysis. Lazarian is limited by their lack of exposure and the fact that they are a relatively new organization. Unlike Lazarian, Habitat for Humanity has an enormous influence and longer history in this field. Habitat for humanity has made this non-profit sector largely popular to the general population. Entering the market may be difficult as well as trying to establish a name for themselves in the process. In addition to the low numbers of completed projects, the public may not take them as a serious competitor. With their lack of exposure it will be tough to get



donations from the target market, who may already donate to a similar non-profit.

The customer has been separated into segments. Because the 51-years-old and older population should be at a stage in the life cycle where they have more disposable income, this segment should be able to contribute financially. Marketers should make a strong effort to appeal to this target market in order to gain the most financial support. The 25-years-old and under segment must be influenced in a particular manner as they will most likely not have a significant amount of excess income. Lazarian should encourage the fact that donations come in all shapes and forms.

Habitat for Humanity is the leader in this market, but Lazarian World Homes faces other competitors as well. Organizations such as Plan USA and Feed the Children operate on a monthly sponsorship and advertise by appealing to human emotion. These tactics are seen as excessive and so Lazarian should be advised to avoid creating an image based on these approaches. Habitat for Humanity will most likely be the foremost competitor, but marketers should make sure to emphasize and develop the already existing strengths of Lazarian.

Culturally speaking, Lazarian has a good chance of succeeding because findings show that 78% of participants believe it is important to help the less fortunate. Based on this finding that most people feel an obligation to be involved, Lazarian may be able to gain an advantage in the market. However, at the present time people in the United States are focusing on how to adjust and survive in the current economic situation. Due to the poor economy, it will be difficult to find people that are willing to donate. Lazarian needs to market properly and target those who are still willing to donate their extra money away in this tough economy.

Lazarian World Homes may be relatively unknown at this point in time, but their fresh and innovative tactics will greatly play to their advantage. They have much to expand and work on as they continue to grow in this industry, but their simple mission of “House the World” and their passion for helping the less fortunate will take them far. Marketers must seriously take into account the current economic state and promote the company to its target audience in the appropriate manners.



Chapter Four:

Lazarian World Homes Mission,

Strategy, and Goals

Lazarian World Homes is a non-profit organization that attempts to house families in affordable, Eco-friendly, easy-to-build homes. Their mission is brief and to the point: House the World. The company is dedicated to helping people in need, while in an environmentally-safe manner.

Because Lazarian World Homes is a not-for-profit organization, therefore they depend on donations for funding. In order to increase funding Lazarian is going to sponsor a silent auction with the proceeds going to future projects as well as constructing an “adopt a block” campaign that will be presented at the auction. Each month sponsors will donate a tax-deductible gift of $10 a month to send an EPS block to a project site. Donors will be kept up-to-date on where their contributions are being sent and new information via e-newsletter.

Lazarian World Homes is committed to helping the less fortunate, while in the process building long lasting relationships with their customers. A key factor in the success of Lazarian’s projects is the volunteers. Along with these long lasting relationships, Lazarian World Homes would like to achieve a base of customers that are willing to commit to a monthly donations program. Through the volunteers it is a hope to obtain entrusted customers, who feel they are a part of the Lazarian Family and assisting in the fight against poverty. These relationships will in addition, allow Lazarian to build a trusted reputation among the community. Building long lasting relationships forms a lasting impression on customers, while enabling Lazarian to provide for the less fortunate.



Chapter Five:

Marketing Strategy

Objectives

Lazarian has a number of objectives the organization anticipates to accomplish in the planning period. The biggest objective of Lazarian World Homes is to stand by their mission statement: House the world. Every goal they set will follow their main objective. This organization is not driven by profits, but instead focuses on the people in need. This will be reflected in their actions and their decision making.

Lazarian would like to recruit new volunteers. According to the survey, people most likely to volunteer time are men and women under the age of 25. Lazarian World Homes has benefitted from partnering with well-established institutions such as Point Loma Nazarene University and Baylor University; many of their volunteers have come from this relationship. By focusing marketing efforts towards institutions such as these, Lazarian could recruit more volunteers by pairing with school organizations such as student development. A select, student-led service club would be able to inform and recruit potential volunteers. Lazarian would like to recruit 100 new volunteers each year during the early years of development. This will give them the man power needed to complete more projects, as well as keeping the labor cost down to a bare minimum. Volunteers will also be recruited during the auction night and information presentations at local churches.

Lazarian also has some outcome objectives they would like to accomplish. Lazarian would like to increase production by 30 percent in the next fiscal year. Lazarian will have to search out foreign governments who would allow this company to be involved or underprivileged and needy people in the United States. Increasing production will give Lazarian more opportunities to prove how effective their method is and help building credibility with the general public. They also aim to increase the locations they serve by expanding into two new third world countries next year as well as beginning two new projects within the United States. These objectives would tremendously affect Lazarian’s exposure and help them create a



name for themselves. It will also help them begin to compete with some of the well-known nonprofit organizations. During these difficult times, Lazarian would like to increase their fundraising by 20% in 2010. This increase in donations would give them the required capital for materials to begin new projects. The increase in fundraising will begin in 2009 with the first sponsored auction followed by the introduction of the “adopt a block” campaign.

Segmentation and Targeting Strategy

The market has been segmented into homogenous groups, which will allow the marketers to specifically target and market to each group.

Age was the first defining factor in the segmentation process. Lazarian World Homes is focusing specifically on the 25 and under age group as well as the 51 and over. This is in accordance with the findings that these two groups were more willing to participate in this organization. The different life-cycle phases in which these two groups occupy are conducive to donating their available resources (i.e. time, money, etc). The 51 and over group will more specifically, most likely be middle to upper class.

Another segment that is being targeted is those who attend church on a regular basis. The data shows that the majority of the target age ranges attend church. This fact, along with the common belief that regular church-goers are more aware of the need to help those less fortunate, make this segment a notable target.

Finally, a segment that could prove to be quite powerful in the marketplace is made up of those who consider themselves to be at least somewhat environmentally-conscious. Because the 63% surveyed believed themselves to have at least an average concern about the environment, Lazarian World Homes should make an attempt to market the Eco-friendliness of the EPS blocks and their objectives at large in order to gain the attention of a vast majority.

Positioning



A goal of Lazarian World Homes is to be a leader of the Eco-friendly building market. Because they are offering an innovative product into the current market, they have an edge on other relevant competitors. An objective is to create a high positioning of the product in poorer countries by encouraging individuals and local churches to create their own mission teams using Lazarian World Homes materials and building homes for the needy. Positioning of the new building structures is currently targeted at third world countries and areas that cannot afford to build homes and other structures at reasonable prices.

Along with targeting the third world market, they seek to position Lazarian World Homes as a leader of the non-profit, volunteer-oriented building organizations. Taking a much more reasonable approach, the first step would be to tackle churches in the San Diego community and to inform people within the church how they can actively become involved with Lazarian World Homes. Informing people within churches that Lazarian World Homes is an Eco-friendly project can sway churches that already have similar projects going on and persuade them to support Lazarian.

The current tagline is “House the World.” This implies that Lazarian is not only concerned about those outside of the United States, but everyone in every corner of the world. This mission may help Lazarian to be recognized as certainly different from organizations such as A.M.O.R. and Plan USA who are constricted to one geographic area. This statement shows that Lazarian is equipped and prepared for growth to all areas.

Lazarian World Homes seeks to make each target segment feel that they are personally contributing to this cause with whatever means possible. For the more affluent group, their efforts can be seen as giving back to others with either monetary donations or donations of time, prayer, etc. The youth will feel productive by being able to donate their time and physical abilities. It makes no difference what stage in life each person is at because every contribution is effective.

It is the goal and hope of Lazarian World Homes to be a top competitor with companies such as Habitat for Humanity. They also hope that the quality of their product and mission can contend with those such as World Vision. It will no doubt take time, but they can quickly separate themselves from firms such as Feed the Children who use questionable techniques to gain



support. Lazarian World Homes has the advantage of an environmentally-friendly claim, which will also enable them to be recognized as a reputable and commendable company.

Marketing Mix Strategy

The product that Lazarian World Homes is attempting to put out into the economy is recyclable polystyrene blocks that are used to build eco-friendly, affordable, long lasting, easy-to-build homes. The key to Lazarian World Homes lies in the blocks. The blocks are what differentiate Lazarian from any other home building, non-profit organizations.

The marketers plan to persuade people to commit to donating a block a month, which comes out to equal $10 a month. This kind of donating has worked in the past with other non-profits in which a person sponsors a child by giving monthly donations. Those who choose to participate in this monthly sponsorship will then receive e-newsletters and updates on where Lazarian is building the homes and how their donations are being put to use. This will keep the donors connected to the organization and enable them to be aware of how their donations are being spent. Along with a monthly donation, Lazarian World Homes also offers the chance to volunteer for future projects. Since the construction process is extremely user-friendly, even people who have no prior experience in building are able to participate.

The distribution plan entails traveling to local churches around the San Diego area and eventually expanding to other cities to create awareness of Lazarian World Homes. It is the expectation of the marketers that by informing socially-conscious people of the mission and benefits of Lazarian World Homes, they will be eager to donate and become involved.



Chapter Six:

Tactical Marketing Program Plans

Product (Good or Service)

For the auction, tables will be set up throughout the room displaying the gift baskets available for purchase. In another part of the room there will be tables with information about Lazarian World Homes. The Lazarian World Homes tables will give information about future projects, have pamphlets, and give people the opportunity to “adopt a block.” People at the auction will have the choice to donate money, participate in the silent auction, or “adopt a block.”

The “adopt a block” sponsorship will be similar to sponsoring a needy child from another country. They will be able to give their checking account number so that Lazarian can access the $10 a month donation without troubling the donor. An e-newsletter will be sent via e-mail to provide updates on the company and where their valued donations are being used.

During the evening, guests will be offered appetizers and beverages and will have time to look at all the silent auction items and visit the Lazarian World Homes tables. By attending the event they will also have a chance to enter the free raffle with gifts donated from Lazarian World Homes. Once the silent auction has closed, the guests will be invited to sit and watch an introductory video about Lazarian World Homes. Next a staff member will expand upon the nature of the company, their mission, what donations have gone towards in the past, and how their donations will be used in the future. Following this, the silent auction and raffle winners will be announced and their gifts will be distributed.

The people working the silent auction will be staff members from Lazarian World Homes, and also volunteers from Point Loma Nazarene University. The volunteers will be trained the night before. They will be divided into groups so they can greet and direct guests, help run the auction, cater the food, and provide information to guests.



Pricing Plan

The service planning to be held is a silent auction and informational gathering at Point Loma Nazarene University’s, Nicholson Commons. In terms of pricing the products, the guests have two options:

Option one is to “adopt a block.” These prices will be based on a fixed rate scale for twelve months. Guests can adopt blocks for $10 a month. Donations of additional amounts will also be accepted.

Option two is bidding on a silent auction item. In this circumstance, the pricing is relevant to what each of the donated items is worth in value. The starting price will be lower than the actual cost of the gift basket, but not by a significant amount. This is so that the customers will be interested because the baskets are good values, and if it goes over in price, their money is going to a good cause.

The gifts that will be auctioned off are all donations from local businesses around San Diego as well as private donors. The money raised will go to Lazarian World Homes and their future projects. Because Point Loma Nazarene University is a current partner of the organization, the location will be free and the school’s catering service will provide the food and service. Lazarian will also sponsor a free raffle for those in attendance, which will be desirable enough to draw forth an audience.

Should someone be interested in purchasing the construction materials to start his/her own project using this method, Lazarian World Homes will be able to provide the materials at a below market cost. These structures typically cost $25 per square foot or $4.50 per EPS block.

Promotion Plan



The promotional plan will include a significant amount of personal selling to local churches, affiliated institutions, and local businesses. The marketers will customize their promotional presentations to fit each target market. For instance, when presenting to the 25-years-old and under age group they will appeal to them by highlighting the opportunities to volunteer with the organization and devote time as their donation. With the 55-years-old and over age range they will focus on attracting them by urging them to donate some of their disposable income. The difference between the two promotional strategies is important because of the distinction between the stages in the life cycle.

The company will attempt to gain positive publicity from promoting specifically to the partner universities of Point Loma Nazarene University and Baylor University. By creating a buzz about the organization and its mission in this youthful environment via viral marketing tactics, the expectation is that public awareness will increase.

A silent auction sponsored by Lazarian World Homes will also be advertised to the different segments via announcements and flyers. Each targeted church and participating university will be informed of the opportunities to donate a gift of some sort and offered the chance to be entered in a free raffle should they attend the event. The auction will help raise awareness as well as financial donations to help fund future Lazarian World Homes projects.

The “adopt a block” campaign will utilize a direct selling technique as well as advertising to churches and other partnerships. Mailers will be sent out to those who have shown interest in the company and its operations. Those who commit to sponsoring Lazarian through this option (as well as those who are interested yet not ready to make a monthly contribution) will receive a newsletter describing the new and current projects as well as other information.

(See Appendix B for promotional budget).

Partners Plan

Currently Lazarian World Homes has begun relationships with private schools and other not for profit organizations to aid in their efforts to provide the world with Eco-friendly structures. Lazarian is currently partnering with Point Loma Nazarene



University, Baylor University, and ARDA. Lazarian World Homes is currently looking to partner with organizations that have a desire to help in aiding the less fortunate with homes, schools, and church community centers. Partnerships with institutions such as these show potential donors that these alliances are committed to serving the less fortunate and promote environmental awareness.

The marketers hope to also create alliances with local churches. The plan is to market to organizations such as The Rock, The Flood, First Church of the Nazarene, and other church organizations in the greater San Diego area. Starting partnerships with churches is not conditional on their size. If the church is willing and interested in partnering with Lazarian World Homes and is consistent with the company’s mission and beliefs, a partnership will be welcomed. A direct relationship with church leaders is ideal. It is the hope that they will be able to promote Lazarian World Homes and adopt the organization into the church’s group of charities and participate in the sponsored auction and “adopt a block” campaign. The churches will be able to inform their congregations about Lazarian and how to get involved either by sponsoring the “adopt a block” campaign, volunteering their time to a current project, or creating their own teams to build the Eco-friendly structures.

Lazarian will benefit a great deal from having church organizations as partners. Some of the most visible benefits that Lazarian will get from partnering with churches are exposure as well as a larger number of people willing to volunteer time and money. The church organizations benefit from partnering with Lazarian by receiving tax write-offs for their donations as well as the personal benefit of helping to sustain an Eco-friendly world. The alliance of the two entities will help to further the plan by spreading the word to people through church-wide relationships as well as will help Lazarian to expand and grow exponentially. The development process of building such relationships can be quite time consuming, but very much worthwhile in the final outcome. Since partnerships with specific universities are already under way, the next step is to acquire relationships between local churches, which will hopefully be accomplished by December 2009.



Chapter Seven:

Measures and Evaluation

Measuring the achievement against objectives will primarily be measured with statistical data. Lazarian plans to record the number of volunteers recruited every month. By tracking the number of enlisted volunteers along with the actual number of participants, Lazarian should be able to verify if the goal of 100 new recruits was achieved. Lazarian subsequently plans to track the number of projects they complete each year. Lazarian would like to increase production by 30 percent in the next fiscal year. To complete this objective, Lazarian has to formulate a steady increase in production. These measures will be recorded in a project monitor folder, which will include number of completed projects, number of new recruits, percentage increase of production from the previous year, and percentage increase of recruits from the previous year. These stats will show the movement and growth of the Lazarian organization in terms of production and expansion of the organization. Lazarian is determined to aid the less fortunate; being able to be apart this movement is satisfaction in its own right. Donors will receive a picture of the finished masterpiece accompanied with a letter of appreciation from the family. Thus allowing our customers to witness the change Lazarian has made by housing this family. This will emphasize how their generosity and sacrifice made the completed project possible. The interaction between the volunteers and Lazarian Staff will make them feel as if they are a part of the organization. The effect of seeing the change they are making will make the experience that mush more fulfilling. Upon completion of the project, volunteers will take a survey and be asked how Lazarian can make this experience more rewarding.



Appendix A – Marketing & Promotional

Calendar

The Marketing and Promotional Calendar will begin the month of June 2009 and carry on until the end of the month of December 2009.

For the Month of May 2009 May 7, present marketing plan to Lazarian and

other potential partners and marketers of Lazarian World Homes

May 7, have pamphlets and brochures prepared to hand out to clients

May 7, promotional wristbands to hand out to prospective clients

For the Month of June 2009 June 1-21, Presentation of Lazarian World

Homes to prospective churches June 1-30, Development and Processing of

auction advertisements June 1-30, Start sending direct mail to potential

clients June 1-30, The “adopt a block” campaign is

announced and promotedFor the Month of July 2009

July 1, Partnerships should continue to develop. Provide more information through direct mail and continue to advertise

For the Month of August 2009 August 1, Advertisement for the free raffle at the

silent auction August 3, 10, 17, 24, Send out pamphlets

describing the mission and donation opportunities to be distributed via viral marketing techniques to Point Loma Nazarene University and Baylor University students

August church nights, present information about auction donations to churches and local businesses

August on going through the month have pamphlets and brochures handed out to people who attend the church

For the Month of September 2009



September 1-19, Continue to hand out pamphlets and brochures during church services

September 1-19, Continue delivering information via email

September 20, Lazarian World Homes sponsored auction night

For the Months of October through December 2009 Continue to deliver information on upcoming

projects through emails Begin marketing to other potential church

organizations and build partnerships through spreading awareness

Maintain relations with already existing church partners

Assess success of auction to decipher next best promotion strategy

Continue updating “adopt a block” participants via e-newsletters

Continue promoting campaign



Appendix B – Promotional Elements

User-friendly Web design Pamphlets describing mission and donation

opportunities to be distributed via viral marketing techniques

Promotional Eco-friendly, silicon wristbands Sponsored silent auction Flyers advertising free raffle at the silent auction Direct mail pamphlets E-newsletters Personal selling to individual venues

Table 1: Promotional Budget as a Task-Oriented Percentage

TOTAL DOLLARS ALLOCATED TO PROMOTION $20,000

Promotional Activities Cost BalanceWebsite maintenance $600 $19,400 Pamphlet leaflets 200 $19,200 Sponsored auction night 5000 $17,200 Auction advertisements 500 $16,700 Eco-friendly wristbands 300 $16,400 Direct mailers 400 $16,000 Postage 100 $15,900 E-newsletters 100 $15,800 TOTAL PROMOTIONAL EXPENDITURES $4,200 $15,800



Appendix C – Survey Instrument

1. Sex:

2. What age range do you fall between?

3. Do you attend church on a regular basis?



4. Are you aware of any non-profit organizations your church is involved with?

5. Do you feel that it is our duty to take care of those less fortunate than us?

6. Have you ever donated to charity before?



7. Which of the following would you be willing to contribute?

8. Would you be willing to attend a silent auction, with the proceeds going to building Eco-friendly homes?

9. Are you familiar with the non-profit organization known as Lazarian World Home?



10. Would you be interested in learning/becoming involved with building homes for those living below the poverty level?

11. Have you ever participated in ministry work?

12. If so, how long did the work last?



13. Have you ever participated in a monthly sponsorship?

14. How conscious about the environment are you?

15. Do you think environmentally-sound homes could become popular in the United States?



16. Would you be willing to live in a safe, Eco-friendly, affordable home?

17. Would you like to receive more information about Lazarian World Homes and their mission of "Housing the World?"

18. What is the best way to contact you with more information about Lazarian World Homes?



19. Even in these difficult economic times, would you be willing to spend $10 a month if you believed in a cause?



Author Profiles

Skylar Barrett is a business administration major and a junior at Point Loma Nazarene University. He is from Edmonds, Washington; the great Northwest. After he receives his degree, he plans to move back to the Seattle area and spend his summers in Alaska working at a fishing lodge. His dream is to coach college basketball and lead young men to the Lord.

Eileen Bering is a junior Psychology major with a concentration in Therapeutic and Community Psychology and a minor in Business Administration. She enjoys being active with sports and extracurricular activities. She is originally from a small city in Orange County, California and hopes to pursue a career in fashion marketing.

Shawn Coward is originally from San Clemente, California, and is currently a junior at Point Loma Nazarene University. She is majoring in Fashion Merchandising with a Minor in Business Administration. After college, she plans to travel around Europe for a few months before settling down and getting a job. Eventually she would like to become a Buyer for a department store.

Kenneth Kreider is a junior Business Administration major at Point Loma Nazarene University. He recently transferred to Point Loma from the University of New Mexico and the change has been very beneficial. He is originally from Albuquerque, New Mexico and is excited to graduate from Point Loma Nazarene University with his degree in business. After he obtains his degree, he wishes to go to law school to become an attorney.

Noble’D Shelton is a business administration major and a junior at Point Loma Nazarene University. He is a member of the basketball team at Point Loma. He will be the first person in his family to graduate from college. After college he plans on furthering his education and obtaining his master's degree.


Marketing Plan

Documents

Transcript of Marketing Plan