MARKETING PLAN. -3 rd Qtr 2003 and OBJECTIVE: BUDGETING: ADVERTISING EFFORTS:
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- Walter Blankenship
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1 MARKETING PLAN -3 rd Qtr 2003 and This is a working document that is subject to change as more information is gathered and results from various advertising efforts are evaluated. OBJECTIVE: Continue establishing our family of companies as Print-to-Mail experts. Marketing goal is to increase sales from the following three customer segments: (1) existing customers, (2) past customers and (3) new customers. BUDGETING: For the remainder of 2003 and 2004 there will be no formalized marketing budget. I recommend that we evaluate and make a determination of budget allocation on a case-by-case basis with each proposal. Once we have had an opportunity to compile the costs and effectiveness of our various efforts; these will be evaluated and a budget will be proposed in the 3 rd quarter of 2004 for our 2005 advertising calendar. ADVERTISING EFFORTS: Direct Mail: Our primary advertising medium will be Direct Mail. By using this medium we will not only be using one of the most cost effective means of advertising but with every mailing we send to a customer we reinforce the value of and our belief in direct mail to our customers. Our direct marketing strategy will consist of three basic elements that will be sent out on a monthly basis (see calendar below). There will be a quarterly newsletter, postcard mailings and enveloped mailings. Newsletter: entitled Professional Print and Mail to reinforce the association between our various company names and our parent company to our customers. There will be two different versions printed with each run; one for Prestige Printing and CDM and one for Jet Print and Copy (see attached newsletter samples). The newsletter will cover various topics regarding direct mail and printing always tying the information back to the services we provide our customers. Postcards: will promote special direct mail features to inform customers as to the various services we offer in our printing as well as direct mail services. The postcard will also be
2 used to inform our customers of industry changes that may affect their business or direct mail efforts (i.e. changes in postal regulations, new legislation, etc.). Enveloped Pieces: these will be used to promote special events (i.e. open house invitations, seminars, etc.). There will also be new customer mailings that will formally introduce new prospects to our services (see New Customer Mailing below). Open House: (see Open House Proposal) New Customer Mailing: Based on our list selection and the number of records available we may need to divide up the list and drop for several consecutive months mailing to each record 2-3 times (depending on the response). These mailings will be designed to require action on the customer or prospects part. (EXAMPLE: A-7 envelop printed with a teaser/ 2-sided, 2-color letter / response card requesting a free PowerPoint presentation CD of our services or customer packet) Customer Appreciation Mailing: To be sent to customers after their order has been completed. DM customers will receive their package in the mail and printing customers will receive their package with their print order. See Customer Appreciation Mailing Costing Report for contents and cost breakdown. This package will cost $0.37 ea. without postage and $1.20 ea. with postage. Customer Presentations: PowerPoint presentations have been developed for Professional Print and Mail, Prestige Printing, CDM and Jet Print and Copy. These files will be available to anyone going out on a sales call as well as in a self-extracting, self-playing file burned onto a CD. Get microphone installed on my system then test free demo of Autorun. SBC Directory Ads: New ads have been bought for Prestige Printing and California Data Marketing. The size will remain double quarter column but they have been changed from 4-color to 1-color. There was no significant draw of new business from the last ads that were printed in 4-color. Ads for Fresno/Madera counties still need to be purchased by 11/03. Publication Ads: There is a half page ad that currently runs in the Central Valley Business Street (monthly publication). The ad cost is approximately $600 with a circ. of 10m ($60/m). This is paid for on trade. Recently, Business Street s direct marketing efforts have dipped below $600 per month necessitating payment of ad cost balance. It is still to be determined whether or not this is an effective use of advertising dollars. 8/20/03 - Discuss effectiveness of Business Street ad with Clint make determination for next month s ad. Community Outreach Events:
3 The objective here is appropriate exposure if were won t be exposed to businesses in the community at a well-attended event than I think we need to question the event as a viable worthwhile expense. This would require a large initial investment to make sure that we present ourselves in a quality professional manner, (i.e. signs and banners, backdrops, etc.). There may potentially be community events that would be beneficial for us to participate in. Also, there may be an opportunity to build a business relationship with the sponsors or to support some of our existing customers reinforcing good customer relations. This should be evaluated on a case-by-case basis. (Ex: Debra (Jet) called me 8/19/03 to ask about sponsoring a booth at an event Community Medical Center is heading. The booth would be at the Aug. 27 th Grizzles game and the cost $250. This would not only support our business relationship with our customer, but give us an opportunity to get exposure in the community. I explained to Debra, that we are not prepared at this point in time to participate, but this would be something to consider in the future and to keep me posted as events develop.) Website: (see Website Proposal) CALENDAR: Mailings will be scheduled to drop the first week of each month (unless specified differently). In addition to the monthly efforts listed below, we could also do a mailing during the second half of the month sending a tent calendar out to each of our customers. Bulk self-mailer with teaser note: with our compliments. September, 2003 Newsletter #1 (Professional Print and Mail and Jet Print and Copy) October Postcard: die-cut piece promoting CMM. (see CMM Mailing Proposal) November Postcard: No call/no fax lists December Newsletter #2 (Professional Print and Mail and Jet Print and Copy) Postcard: Docutech and Docucolor January 2004 February Invitation: Open House (Jet Print and Copy) - Customer appreciation BBQ (April 14, 2004)
4 March Newsletter #3 (Professional Print and Mail and Jet Print and Copy) April Postcard: with removable post-it May Important notice: indicia format June Newsletter #4 (Professional Print and Mail and Jet Print and Copy) July Postcard: August Postcard: list acquisition September Newsletter #5 (Professional Print and Mail and Jet Print and Copy) October Postcard: in-house vs. mail-house for DM November Invitation: Open House #1 (Professional Print and Mail) - Friday evening wine and cheese mixer (December) December Newsletter #6 (Professional Print and Mail and Jet Print and Copy) ACTION ITEMS: Database: 8/20/03 Art is currently merging a sorting a list of all our customer contacts by sales person to be updates initially in our mailing list and ultimately in PrintLeader. Once the initial cleaning and
5 updating is done, we can house our list in the computer room with only new customer and contact change updates. Appending Demographic Information: Once the list has been cleaned, I suggest that we append some demographic information to the file (i.e. sales volume, # of employees, year established). This will allow us to select and purchase specified lists for both Professional Print and Mail and jet Print and Copy. New customer mailings are scheduled to begin dropping in January 2004.
6 MISSION PRINTING: Mission Printing is used to approximately $9000/month in sales. Since 2001, revenue has fallen to approximately $8000-$9000/month, but keeping below the $9000 mark. Our marketing objective is to increase sales to exceed $9,000/month and hopefully move monthly sales closer to $10,000/m. This large increase should be attainable because the marketing strategy will not only focus on increasing sales with current customers and expanding our customer base, but also striving to cross-sell services provided by Prestige and CDM to Mission customers. The marketing goal is to increase sales in the following customer segments; (1) increase re-orders for existing customers and bring back old customers and (2) increase customer base by acquiring new customers. Promotions will also include cross-selling printing and direct mail services to both customer segments. Competition: Our biggest competitor is Medical Arts Press in Minneapolis, MN. They are a large supplier of preprinted form, printing, office and medical supplies and medical marketing material. Medical Arts Press has recently completed a merged with Quill, which has not only expanded their product base but lowered costs across the board. Lisa informs me that the number 1 complaint she hears from our customers regarding Medical Arts Press is their slow order fulfillment. Service drives our business and I believe we can continue to increase our market share, providing fast reliable service in conjunction with our added services of printing and direct mail service. Direct Mail Campaigns to date: LIST: 10,000 list was purchased/rented: CA (Chiropractic clinics, Chiropractors (DC), Acupuncturists, Alternative Medicine, Holistic Practitioners, Chiropractic Doctor Info Bureaus / COST: 4/14/03: Qty: 1000 (from list of 10M) / Segment: Chiropractors / Mailing Description: letter, sample CMS-155 form, #10 windowed envelop (black ink for address) / standard postage. Response: 24 requests for catalog (2.4%) no concerted follow-up 6/9/03 Qty: 2000 (from list of 10M) / Mailing description: letter (same as above), sample CMS-155 form, #10 windowed envelop with red ink for address) / standard postage. Response: 57 requests for catalogs (2.8%) no concerted follow-up Total orders from both mailings: 1 or.033% NOTE: is was discovered that there were a considerable amount of names in outside list that were current customers and/or different names at same address that were not purged from list as a result, current customers received mailing offering 10% discount on first-time orders. (800 out of the %) 8/13/03 Qty: 2200 (from previous mailings) / Mailing Description: Wilmer HIPAA flyer with order form insert / tri-fold / address inkjet / standard postage. Response: Proposed Direct Mail Schedule: Month 1: Prospective customer mailing - introduction to services (letter, rolodex, #10 / qty: ) currently we have an outside list of approximately 7000 names. Month 2: Prospective customer mailing - Direct Mail letter (letter, datasheet, #10 / qty: ) this mailing will depend on whether we purchased the list or rented it.
7 Month 3: Quarterly Mailing to existing customers (postcard)(note: depending on customer base, this mailing can be divided into three equal parts and mailed on a monthly basis or once quarterly). This mailing will alternate between 2 different mailings: 1) reorder reminder and 2) direct mail promotion. Month 4: Cycle repeats with month #1 Back-End Advertising: Each order will have the following inserts: Calendar tent with thank you imprint (see sample) Prestige Printing Not all printing companies are the same flyer Business Reply Card (see sample)
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