Thursday, May 8, 2008

Agenda

I. Meet M+A CommunicationsII. Situation analysisIII. Insights and opportunitiesIV. Target analysisV. ObjectivesVI. Integrated marketing solutionsVII. Evaluation techniquesVIII. Questions/Comments

Meet M+A Communications…

We seek to leverage creative thinking as a meansto drive business success.

Our backgrounds

• Kelsey Riggins• Public Relations• Gopher Sports Marketing

• Joseph Sunder• Creative/Design• McCann Relationship

Marketing Worldwide

•Seijen Takamura•Strategy•Fallon Worldwide

•Julie Veternick•Account Management•Minnesota Monthly

We are excited for this project.

Northstar’s introduction could not come inbetter context.

Gas prices have tripled since 2002.

Gas prices are driving behavioral change.

People are worried about the future of theenvironment.

Source: Gallup

Economic recession is imminent.

The Northstar Corridor is growing...

By 2025, Northstar Corridor population is expected to increase by200,000 people to a total of 850,000 residents.

…and with growth comes TRAFFIC.

Situation Analysis

Company analysisProduct analysisIndustry AnalysisCompetitive Analysis

Company Analysis

• Historical heritage dating back to streetcars• Recent product introductions

• Hiawatha Light Rail• Hybrid-Electric Busses

• Ridership Growth• 10.4% over the last two years

• The future: Northstar Rail• 10 years in the making

Industry Analysis

• Since the 1950s, public transport has been in decline• The rise of the automobile

• Highway development• Pollution

• The slow resurrection of public transport• Gas prices• Green movement• 32% increase in public transport ridership since 1995.

• Commuter rail success around the country• Nashville (258% ridership growth from ‘06 to ‘07)• Seattle (97% growth)

Competitive Analysis

• No direct public transportation competitor• The personal vehicle

• Strengths: American cultural icon, flexibility, style, recenthybrid/alternative fuel development

• Weaknesses: gas prices, parking fees, maintenance costs,requires attention

• US auto industry recession• GM announces huge losses• 3% less cars sold in ‘07 than ‘06

Insights and Opportunities

SWOTPrimary Research

OpportunityInsight

To position Northstar abovecommon public transportation

Public transportation’s coredemographic is different than theNorthstar Corridor population.

To ensure that expectations alignwith reality

Northstar lacks in scheduleflexibility.

To reinforce novelty and “neverbefore seen” service

Northstar is new/novel but hasbeen out of the news for awhile.

To educate potential riders morecomprehensively

Northstar has 75% awareness,but only 22% are “very aware.”

Key information

1-on-1 Interviews

• Interview selection crtieria• Current “non-riders”• Commute 25+ minutes daily

• Explored:• Perception of public transportation• Why they choose to drive cars• The commute experience• Consumer expectations of Northstar

• Sought validation and new qualitative insights

Validation: Flexibility is a major issue.

“My car gives me freedom…I have a family with 3 kids. I getcalls sometimes when the child’s at the nurses office and Ineed to go grab them. You never know what happens in themorning with sick children.”- Mark

“I come when I want. I leave when I want. I’m not on anyoneelse’s schedule.”- Peyton

Validation: Public transportation has a lessthan perfect reputation.

“I would only take public transportation if youpaid me. There’s just something about bussesI don’t like. I’m surrounded by people that Idon’t know. It’s dirty, and there are germs.”-Justine

“You never know what kind of weirdo you’regoing to have to sit next to.”-Peyton

Validation: People think commuter rail andthe LRT are the same thing.

“I would imagine the commuter rail is really similar to thetrain I take from the Metrodome to the Mall of America.”- Brad

“Commuter rail sounds faster…? Like they want to get youto work on time.”- Justine

The commuting experience

• Accidents• Gawkers• Weather• Inconsistency• Unpredictability• No better options• Small problems =

BIG delays

“I commuted in [to the U of M] every day, so it was about forty miles whichwould be either fifty minutes with no traffic or anywhere from sixty to… if itwas a snow day, an hour and a half or two hours. I taught 8 o’clock class. Ifthe traffic was really good, I could make it in an hour… however you alwayshave to plan for the unexpected. On 94, if somebody has a flat tire,everybody is going to be thirty minutes late. If there is one accident, itaffected everybody by a lot. You always had to plan a lot. And it wasn’t like ithappened once a month. It was every week. A little rain… a little snow, itwould slow things up by 15 to 20 minutes. Some days you’d be early, somedays you’d be running to make it on time. Years ago, when I heard peoplehad to commute for an hour I always said ‘I’ll never do that.’ But... if youknow you have to do it, you just understand that there’ll by two hours of theday that you’ll be doing it.”- Brad from Elk River

“Traffic on 494 caused by banner on Xerxes overpass: “Mike Ratelle:Prom? <3 Maddy.” Okay, that’s kind of cute. But for real, you knowthose electronic signs that display traffic and emergency information?Just lighting up one of those that’s often dark will slow down traffic inand of itself, even if there’s no actual traffic delay or emergency… I’dlike to kick Maddy’s ass.”– Minneapolis Metro-Blog

We tried the commute for ourselves.

• I-94 in the snow• Took 45 minutes going west with no traffic• 8:10am - Depart Elk River

• 8:12 - hit stop and go traffic• 8:20 - Burger King is gone, still in stop and go traffic• 8:23 - Camera falls over from dead stop in traffic• 8:42 - “This the first time that I’m above 2nd gear.”• 9:20 - Frustration sets in, cut 100+ cars

• 9:37 - Arrive at U of M.• Camera has 3 minutes of battery life.• 1 hour, 27 minutes travel time

Target Analysis

Target: The Lone Driver (LD)

• Lives in the Northstar Corridor• Works within 15 minute walk of MPLS station• Currently drives alone to work every day• Car and homeowners• Household income $45,000 - $75,000• White collar employment• 25-55 y/o• Male or female

Let M+A tell you a story…

The story of the Lone Driver.

The challenge

To launch a new transportation service in spite ofa poor reputation with the target and inaccuratepublic expectations.

The Solution…

Northstar Commuter Rail:The enemy of the traditional commute.

Objectives

MarketingCommunicationsCreativeMedia

We remembered your marketingobjective

To establish debut ridership at 4100 passengersper weekday

From this, we developed communicationsobjectives.

• To establish a brand unique from Metro Transit• To increase awareness from 75% to above 95% in

6 months• To increase LDs who are “very aware” from 22%

to over 60% in 6 months

Creative objectives

• To distinguish the Northstar brand from Metro Transit• To become the friend and ally of commuters in the war

against traffic by giving Northstar an empowering brandvoice.

Media objectives

• To reach over 95% of LDs at least 5 times per month for6 months

• To Drive web traffic• To foster interaction and involvement with the product• To garner earned media• To create conversation and drive Word-Of-Mouth

communication

We sought to utilize media as a means toenhance the message

• Primarily OOH/Non-Traditional• Stop and Go traffic means higher exposure time• Parking fees• Downtown traffic

• Interactive• Direct Marketing• NO TV/Print/Radio

• Raw costs• Geographic efficiency• Lack of message enhancement• Didn’t want to annoy the consumer

Creative executions

“Countdown” Billboards

“Countdown” Billboards

“Rise Above” non-traditional teasers

“Rise Above” non-traditional teasers

“Rise Above” non-traditional

“Rise Above” non-traditional

Website overhaul

Website overhaul

Public relations strategy and tactics

• To promote physical interaction with Northstar– Grandma’s Marathon– Taste of Minnesota– Minneapolis Aquatennial– Minnesota State Fair– Twin Cities Marathon

• “Sneak Preview” ride– Friday before Labor Day weekend

Direct marketing - Postcards

Campaign calendar

Budget breakdown

Campaign evaluation

• Web metrics– Google Analytics

• (web traffic)– Google Trends

• (web buzz)– IceRocket.com

• (blog buzz)– MyCommute registration

• Post campaign surveys– Product knowledge– Brand image

• Earned media

Additional recommendations

• Late train– Maximize convenience

• Wi-Fi– Work requires being “connected”

• Online ticket sales– Convenience again

Recap

• The challenge– To launch a new transportation service in spite of a poor

reputation with the target and inaccurate public expectations.• The big idea

– The enemy of the traditional commute.• The media strategy

– OOH, interactive, non-traditional, direct• The PR strategy

– Interaction• The evaluation

– Web metrics, surveys, earned media, sales

M+A Communications wants yourbusiness.

We seek to leverage creative thinking as a meansto drive Northstar’s success.

Thank you very much.

Questions and comments