The IDM Student Marketing Competition

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1 The IDM Student Marketing Competition

2 Why are we here? This is an important question for brands to consider; what is our purpose as a business? Why do we exist and what are we here for? Do we have a Big Idea at the heart of the business that lifts and separates us from our competition? The benefits of starting with the why are brilliantly articulated by Simon Sinek in his Ted lecture, which is worth viewing here if you haven t already seen it at The diagram below is a simple articulation of his theory. He suggests that most brands tend to work from the outside-in; they focus on telling people what they do and of course, what you do can be easily copied. Some brands then go on to explain how they do it, which in the short-term can give you an advantage, until the competition catches up! But very few brands explain (or even understand) why they do it. The why is important because it helps brands to differentiate themselves from competitors, to integrate and coordinate all activities and behaviours (whether it s marketing or NPD) behind a single idea, and to be more consistent about what they say and how they say it. Start with the Why Virgin Money s Why At Virgin Money, we want banking to be about more than just interest rates and statements. We believe that banking s place at the heart of modern society means that we re automatically placed in a position of responsibility. Banks are the partners that help people secure their first home, or give advice when starting out in business or how to save for the future the list goes on. Done properly, banking can be a force for good, helping transform people s lives for the better. But traditionally, the big banks have tended to prioritise their shareholders above their customers; they place shareholder returns before customer returns. At Virgin Money we want to build a different kind of bank - one that balances the needs of all of its stakeholders its customers, staff and shareholders, its business partners and the communities we serve. We call this philosophy and ambition Everyone s better off always looking for the win:win in everything we do to deliver a fairer return for everyone. We believe it s a sustainable model for the future. 2

3 "Business needs a heart. In the past business hasn't had a heart. Business has been all about making money, which is fine, but it hasn't been about being a responsible citizen. We're better equipped I think than social workers and politicians to sort out the world's problems. Sir Richard Branson Virgin Money Giving introduction When Virgin Money decided to sponsor the London Marathon, we didn t just want to paint the town red for a day. We wanted to use our expertise with money to help the runners raise even more for charity, turning the world s biggest annual single-day fundraising event into an even bigger fundraiser. We discovered that many fundraisers use online fundraising websites, such as JustGiving, who make a profit from the service they provide, and we thought we could come up with a better alternative and so Virgin Money Giving was born. Virgin Money Giving doesn t take a penny in profit and Gift Aid is passed on in full, so more of the money raised through our site goes directly to the charities themselves. This film will give you a sense of what we re about - Virgin Money Giving is a great example of Virgin Money s ambition to make everyone better off. Fundraisers are better off as they are able to raise more for their causes, the charities are better off as they are able to make a bigger difference, and Virgin Money is better off from becoming a bit more famous for doing it. Market Background and competitive context The online giving market has grown by an estimated 95% in 5 years. The table below shows the key players in the market and the donations through these services (figures quoted are in millions). The market is dominated by JustGiving, with Virgin Money Giving the second biggest player. N.B JustGiving global figure with UK accounting for majority of donations. Source: Media and Annual Reports. JustGiving is the automatic choice for most fundraisers they launched first and built a significant business before Virgin Money Giving and other fundraising websites followed. As a result of their first mover advantage and being the only player in the market for quite some time - they enjoy a significant 73% market share as a result. Virgin Money Giving has around 20% market share, and a strong proposition in our low fee offering. Our not-for-profit model means our fees are considerably lower than JustGiving s, meaning more of the money donated online reaches a charity through Virgin Money Giving than through JustGiving. In fact, since we 3

4 launched in October 2009, we estimate that an extra 12 million has reached the charities that used us instead of JustGiving. However, awareness of this important benefit of Virgin Money Giving over JustGiving is much lower than we would like it to be. Fundraising events Virgin Money Giving is the fundraising partner for some very large events such as the Virgin Money London Marathon and Ride London - but JustGiving still report a healthy share of fundraising for those events. Here is a list of the key event partners we work with (assume these relationships will continue). Event Organiser/Company London Marathon Ltd Limelight Sports/Royal Parks Foundation Sweatshop Classic Tours Threshold Sports Running High Events Ltd IMG UK Mayor of London/London Marathon Ltd Events London Marathon Silverstone Half Marathon Bupa London Royal Parks Foundation Half Marathon Royal Parks Foundation Ultra Vitality Reading Half Marathon Mizuno Robin Hood Half Marathon Mizuno Robin Hood Marathon Nightrider Deloitte Ride Across Britain MITIE London Revolution Carphone Warehouse Race to the Stones (RTTS) Vitality Bath Half Marathon London Triathlon UK Challenge Blenheim Triathlon Etape Series (Cycling) Run to the Beat (RTTB) Prudential RideLondon Charities Charities play a key part in promoting online fundraising partners to their fundraisers and Just Giving have very strong relationships with many of the larger charities in particular (for whom systems are often integrated, and so prising them away can prove more challenging). Below are some well-known charities that use Virgin Money Giving. Some of these charities will work with more than one fundraising partner. - Scope - Save the Children - Macmillan Cancer Support - British Red Cross 4

5 - Cancer Research UK - Anthony Nolan - Alzheimers Society - Cystic Fibrosis Trust - Mind - Children with Cancer UK - Tommy's - Leukaemia and Lymphoma Research The online fundraising market is continuing to grow and many charities, particularly small to medium sized charities, have yet to take full advantage. Latest research into the potential of online giving The 2015 Virgin Money Giving and Third Sector Digital Fundraising report shows online fundraising has the potential to enhance donations, encourage fundraising activity, showcase a charity s work and the life stories of its beneficiaries, as well as save money in a tough financial environment. Online fundraising has come to the forefront as the lead way for our supporters to raise money, says Ben Robinson, Community Fundraising Manager at Cardiac Risk in the Young (CRY). We feel it s been of massive benefit to us and behind much of the growth in donations we ve experienced in recent years. Yet it is clear that online fundraising is a recent innovation for many charities and has yet to be positioned as a sizeable contributor to donated income, despite its ease of use and myriad of cost savings compared to traditional fundraising techniques. For close to eight out of ten charities, online fundraising accounts for less than 20% of their annual donations. Only for a little over 12% of charities, does online fundraising weigh in at 20%-40% of their fundraising total. And for less than one in twenty charities, mainly concentrated in London, does online fundraising occupy a predominant place in their overall fundraising, in the 60-80% income bracket. A major reason for this lack of impact is that online fundraising remains in its infancy. Nearly 38% of respondents confess they have been using online methods of fundraising for no longer than two years and around one in ten charities don t use online fundraising at all. A distinct minority - less than one in five charities - are experienced practitioners of online fundraising and have been employing it for more than five years. 5

6 Our business challenge Our ambition is to explore ways in which we could significantly grow Virgin Money Giving over the next three years. Specifically: We would like to double our market share of online giving in the UK from c20% to 40% within 3 years. We estimate the market will be worth c 650 million by this time. Marketing budget of 400,000 in year 1, increasing 5% per annum in subsequent years Your task: Your agency has been given the task of creating a marketing communications plan to achieve the above business objective. It is important that you think carefully about the various ways that Virgin Money Giving could grow there are a variety of potential growth levers you could recommend we pull, and it will be important to understand the potential benefits, and pitfalls, of each option and combination. For example, should we grow by targeting fundraisers? Or should we allow the Charities to target Fundraisers, while we focus on increasing our reach amongst Charities? Or should we try a combination of the two? Remember however, we have a limited budget and it is better to do fewer things well than spread ourselves too thinly. Your plan should include: An Executive Summary (4 pages maximum) Direct and Digital Campaign Strategy (inc. objectives, segmentation, customer acquisition & retention strategies, and outline communication strategy your plans should integrate both on and offline media) A Data Strategy (including data maintenance and utilization and legal compliance) Creative Proposals and Recommendations Please remember our ambition to make everyone better off it s our big idea and should inform everything we do. It s not a creative endline, rather a positioning that should help to shape your ideas and plans. A detailed D&D Activity plan for year 1 (media/channel selection, budget allocations, schedule, expected responses/returns, proposed testing) Do think about clever creative ways of reaching our target after all, we like to do things differently! Think about the ripple effect of your activity into other marketing channels and the potential benefit this might bring? And do remember that we have some fantastic assets at our disposal already not least the London Marathon! Click on this link for some interesting insight in to the power of our partnership: Your budget for Year 1 activity is 400,000. Please make recommendations for how your plan should roll out in year s 2 and 3 to reach the required target of 40% market share by the end of year 3. Reports should be no more than 22 sides of A4 for the main text (excluding Contents page) plus up to 15 pages of Appendices (relevant supportive information and creative ideas). Good luck everyone! 6

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