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Marketing Plan Handy People Because Time is Money Prepared by: Armin Ausejo Jennifer Davies Joe Hallock Kate Roemer Chia-Fang Tsai University of Washington Masters of Communication in Digital Media Digital Media Branding & Marketing Lori Dugdale, Instructor November 20, 2005

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Page 1: Marketing Plan Handy People Because Time is Money · Marketing Plan Handy People Because Time is Money Prepared by: Armin Ausejo Jennifer Davies Joe Hallock ... Lori Dugdale, Instructor

Marketing Plan Handy PeopleBecause Time is Money

Prepared by:

Armin AusejoJennifer DaviesJoe HallockKate RoemerChia-Fang Tsai

University of WashingtonMasters of Communication in Digital Media

Digital Media Branding & MarketingLori Dugdale, Instructor

November 20, 2005

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Handy PeopleTerm Project Proposal

November 20, 2005Page 2 of 15

Marketing Objectives

The measurable marketing objectives listed in this proposal represent the goals HandyPeople will strive to achieve in its first year of operation. The marketing objectives arecategorized and separated within our two target customer markets – consumers andcontractors.

During the first year of operation, the marketing plan for Handy People consists of severalhigh-level goals. The simple fact that the company is new presents a challenge to themarketers. Our primary goals are slightly more difficult to achieve than those of a similarcompany that’s been in business for several years. We’ll need to simultaneously createawareness, positive experiences and efficient operations around a new brand and company.These high-level goals will translate into slightly higher costs for a typical year of operations.However, we suspect that the long-term benefits of our first year efforts will far outweighthese escalated costs.

Measure Marketing Objectives

Brand Awareness Building:

Market #1 – Consumers

Brand awareness efforts for consumers will include several activities we hope will educateour target audiences about our brand with positive messaging. This task will includecharitable activities that will translate into positive public relations pieces on television, radioand in newspapers in the greater Seattle area. Simultaneously, we’ll start an advertisingcampaign that will focus primarily in offline media such as print, periodicals, television andradio. The primary use of online media is based on the age of the business. Onlineadvertising will also be important, but for the first year we will have an increasedinvestment in the aforementioned offline media.

• Primary Target – Women (age 30 to 50)

Home improvement retailers and selected magazines will be the communicationvehicles for our primary target. Research (which is detailed in the MarketingCommunication Vehicles section) presents strong support for this decision.

• Secondary Target – People who are 60+ years of age

In addition to the brand awareness efforts listed in the paragraph above, we will useemail and online marketing efforts and consumer referrals (in the form of giftcertificates) to increase brand awareness among this target.

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Handy PeopleTerm Project Proposal

November 20, 2005Page 3 of 15

Market #2 - Contractors

Handy People will need to develop a comprehensive list of contractors. Recruiting thesecontractors and continuing to develop positive brand recognition for additional skilledworkers will require alternative methods to those listed in our first market’s section. Weplan on utilizing four specific vehicles to target brand awareness activities to this market:direct mail, partnerships and postings at local hardware stores, tradeshows, and onlineactivities.

Brand Awareness Goals:

Brand awareness can be measured by conducting a survey before and after the brandingawareness activities have taken place. Because the company is new – we expect that theinitial survey will show that most, if not all, of the survey participants will not recognize thecompany or the brand. After a second survey is conducted upon completion of our firstyear of operations, our goal is to have roughly 20% of the target market recognize ourcompany or brand.

Lead generation

Handy People’s goal is to generate a significant number of leads. A lead, in this case, can berepresented as a unique visitor to the web site. We expect that our leads will come to thesite based on the following activities: onsite advertising, direct mail, online advertising andsearch engine placement, offline advertising, charitable giving, promotions and giveawaysand search engine optimization. (Note that the specific of this plan and the actual numericalbreakdown of each category is detailed in the Lead capture/qualification and cost analysissection.)

Our goal for lead generation is obtain roughly 60,000 unique visits to the site. As detailedin the lead capture section of this document, we believe that an investment of $63,410.00will result in roughly 60,000 leads. Moreover, if 3% of these leads become payingcustomers, we’ll earn roughly $450,000 in sales on this campaign.

Specific details on the actual communication vehicles, target users marketing, messagingand lead generation are defined and detailed in the following sections of this document.

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Handy PeopleTerm Project Proposal

November 20, 2005Page 4 of 15

Marketing Communication Vehicles

The Handy People website is designed to connect homeowners with qualified contractors toaccomplish a wide variety of home repairs and improvements, initially targeting consumersin the Seattle metro area. Therefore, our choices of marketing communication vehicles arebased on building branding awareness among Seattle homeowners who need home repairsand promoting brand value to contractors who will list with the service.

Branding Awareness Building

Since Handy People is a new business, the launch campaign will be the primary focus of theinitial marketing rollout. Due to the lack of name recognition, we will be using offlineadvertising to educate the market about our brand.

At first, we will use the public relations reach of charitable giving to initiate interest. HandyPeople contractors will contribute 40 hours of worker time to Habitat for Humanity. Thecharitable action will be promoted through a press release and local media coverage, suchas the Seattle Times, drawing attention to this new entry in the home improvement market.Additionally, local news and talk shows will be approached to feature Handy People in ahome improvement themed episode within the same time frame of the Habitat forHumanity contribution project. This early presentation of the brand as benefiting thecommunity and homeowners individually will aide in spreading awareness.

Also, local radio giveaways are another PR approach to reach both homeowners andcontractors. The marketing team will cooperate with the top 3 popular radio programs inthe Seattle area to do short segments about home improvement and give away 5-10 hoursof work as a prize to attract listeners. The prospective media will include KMPS-FM, KUBE-FM and KIRO-AM. According to the listenership rating of Seattle radio stations, which isreleased by The Arbitron Co. in summer-quarter 2005, Country station KMPS-FM rules theSeattle-Tacoma radio market, the “play-what-we-want” format radio program. Moreover,KUBE-FM and KIRO-AM (news format) are right behind it, tiered at second and third.1

The PR efforts to draw attention to Handy People and it’s goals will assist in brandawareness for consumers and project an image contractors will want to be associated withfor listing their services.

Furthermore, advertising will be focused on local papers such as Seattle Weekly, TheStranger, Seattle Times and the Post Intelligencer focusing on building brand awareness anddirecting traffic to the website. Because Handy People will be an exclusively onlinepresence, strategically placed banner and search ads will be used to direct traffic to the site.

1 KMPS is at the top of the ratings yet again: November-13-2005http://seattlepi.nwsource.com/tv/245519_arbitron22.html

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Handy PeopleTerm Project Proposal

November 20, 2005Page 5 of 15

In addition, a number of small-scale awareness and lead generating activities will include:

o Welcome Wagons - We will place coupons with local groups who send “welcome”information” to new homeowners.

o Flyers will be posted in local hardware stores and distributed in home improvement& hardware warehouses, such as Home Depots and Lowe’s, in the Seattle area.

o Booths at local fairs and trade shows - Handy People will create a traveling booth toset up at local home fairs and possible county fairs to generate awareness both withconsumers and workers.

o Magnets with the website and a list of popular tasks will be given out at fairs andkey contacts like managers of local hardware stores.

Target Users Marketing

Based on previous market segmentation and competitive analysis, Handy People will beserving two main markets: consumers and contractors. By better understanding ourcustomer profile we will be able to target our customers more effectively.

First Market & Primary Target Consumers: Women

Our primary target customers are 30 to 50-year-old women. According to HomeImprovement Research Institute (HIRI), they found the role of women in home improvementproject has a revolutionary shift. It turns out that women are not only the primary decision-makers in all kinds of home improvement products purchases but also the principle doers ofhome improvement tasks.2

This HIRI research also provides us with a perspective on where women most prefer to shopfor home improvement products: warehouse home centers, discount stores or specialtystores. In addition, findings suggest that women tend to use magazines, friends and familyas information sources on the best home improvement approaches and products.3

Combining all of the information about the female home improvement-shopping scenario,the marketing communication vehicles we chose are the home improvement retailers andmagazines.

In terms of home improvement retail stores, Home Depot and Lowe’s are the first twohighest ranked in North America. Home Depot operates more than 1,500 stores andattracts over 22 million people each week.3 Moreover, Lowe’s serves approximately 11million customers a week at more than 1,100 home improvement stores in 48 states. Since

2 A Seat At The Table : Women Are America's Chief Purchasing Officers: November-13-2005http://www.moen.com/pressroom/article.cfm?cType=T&release=3913 Home Depot’s cooperation overview: November-13-2005http://www.homedepot.com/HDUS/EN_US/corporate/about/didyouknow.shtml

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Handy PeopleTerm Project Proposal

November 20, 2005Page 6 of 15

mid-May of 2005, Lowe’s started to send valuable coupons and rebate offers to theircustomers and clients via highly customized direct mail featuring the photo and cooperativecompany’s logo.4 It provides an exciting new marketing tool for our web site. In addition,the number of Lowe’s locations is greater than those of Home Depot in Seattle areas.Therefore, we will partner with Lowe’s to do direct mail marketing to our target users.

Once Handy People has established itself in the Seattle market and begins to expand, it willlook to reaching out via magazine advertisements. The top four bestselling homeimprovement magazines ranked by Amazon.com are Handyman, This Old House, HouseBeautiful, and Fine Home Building. Therefore, we also choose these four magazines topromote our online services in future marketing efforts.5

Word of mouth will be a powerful tool for spreading awareness. To enable this, HandyPeople will create a special referral coupon to be given to friends and family that will lowercommissions for friends and family provided they give feedback into how the system works.To also further the sharing of great ideas in home improvement, we will promote a giftcertificate program promoting time as the greatest gift to be shared among friends andfamily.

Secondary target consumers - Senior in the 60+ age range

A secondary consumer target consists of homeowners in the 60+ age range who find homeimprovement projects unnecessarily taxing on time constraints and physical capabilities.According to the research conducted by The Pew Internet & American Life Project, theyfound the top Internet activities among senior who go online: 93% of seniors have usedemail, 58% have gotten hobby information online; and 53% have searched for health andmedical information online. Therefore, we will promote our Handyman service by e-mailmarketing to reach the senior group.6

In addition, we also will cooperate with Senior Safe Home site(http://www.seniorsafehome.com/), which teaches seniors how to take proactive steps tomodify their homes throughout their maturing years. This web site promotes two mainconcepts: “Make your Home Senior Friendly” and “Aging-in-Place”. By cooperating withthe Senior Safe Home site, we can promote the idea of how to modify homes for theaging-in-place market emphasizing that seniors can keep living in their homes safely,independently and comfortably, with careful remodeling. Handy People can purchase emaillists through local senior organizations to build awareness of the simple to use site andfeatures available to benefit seniors. The promotion of the gift certificate program to theprimary market will encourage the sharing of handy man services with elderly family andneighbors.

4 Lowe's Home Improvement - Realtor VIP Partner: November-13-2005http://www.realtor.org/referral.nsf/pages/LowesHomeImprovement5 Bestselling Home improvement Magazine on Amazon.com: November-13-2005http://www.amazon.com/exec/obidos/tg/browse/-/637738/1/ref=br_lfsrt_/103-1834024-4092648?rank=%2Bsubslot-salesrank&x=14&y=106 Rainie, Lee. “Wired Seniors: A fervent few, inspired by family ties.” Pew Internet & American Life.September 27, 2001. (page 2)

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Handy PeopleTerm Project Proposal

November 20, 2005Page 7 of 15

Second Market: Professional Contractors

Finally, professional and qualified contractors are a key element to the success of HandyPeople. To target the handyman and contractors, direct mail sent to the roster from localremodelers’ associations and flyers posted in local hardware stores are two mainapproaches to reach them.

To recruit contractors and remodelors, we should get the roster from the remodelorsmembership of the National Association of Home Builders (NAHB:http://www.nahb.org/page.aspx/category/sectionID=433), which is made up with morethan 10,000 remodeling industry members in U.S.7 Next, we will pick the members whichare located in Seattle area. By direct mail contractors and handyman can mail back theregistration forms through prepaid return envelopes.

Moreover, posting flyers in local hardware stores is another approach to reach ourhandymen and contractors. For a starting point, NWsource.com provides a best 10 Seattlehardware stores list collected by people’s picks 2004.8 We can focus on these 10 stores tostrengthen our promotion. Besides the direct enrollment on the Handy People site, we alsoprovide the toll-free number for handymen registration to save time and increase theefficiency.

Online, contractors and handy men can be reached through forums and professionalposting boards. By promoting the benefits of Handy People’s services in an onlinecommunity, we will increase our reach to contractors interested in expanding their businesson the Internet.

Marketing Messages

The overriding message in all marketing efforts will center on the “Time is Money” concept.We will also focus the concept of “taking the effort out of home repair and improvement”with sub-themes that related to relying on experts and reclaiming one’s valuable free time.This message continuity will apply to both consumer and contractors. Consumers will berelieved of time spent with DIY manuals and messy clean up from unskilled efforts at repairsand upgrades, and contractors will be relieved of marketing and initial contact efforts fortheir services and develop a new customer outreach by simply signing up.

The primary consumer market of women 30-50 will be courted with the consistent messageof time value. Advertisements designed to build brand awareness will be presented in ahumorous light with slogans such as “Borrow Bob’s Brawn,” “Rent Roger’s Wrench,” and“Take Tom’s Tools” with the underlying tagline of “Time is Money.” The advertising willfocus on suggesting there are alternative methods to handling time repair that do not eat

7 Remodelors council: November-13-2005http://www.nahb.org/page.aspx/category/sectionID=4338 Favorite indie hardware store: November-13-2005http://www.nwsource.com/peoplespicks/2004/shopping/hardware.html

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Handy PeopleTerm Project Proposal

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up valuable free time. Ads will also present the antithesis of the DIY movementencouraging consumers to save time and effort.

Direct mail targeting the primary consumer market will promote ease of use, both of thewebsite and the service, focusing messages that drive traffic to the site for trial runs withcoupons as primary incentive. Four by six inch postcards will be the primary direct mail piecefor the initial launch, and they will list the litany of tasks that could be done for you as wellpromoter the easy access and reliability of service providers. The direct mailers will call foraction by providing coupon incentives to drive users to the website. In addition todeveloping consumer awareness of the Handy People service, direct mail will provide aninvaluable lead-generating vehicle.

Online advertising, both through banners and onsite interactions will be focused on theease of interaction with the site and how it so easily saves time both online and off forhome improvement.

Additionally, the PR outreach focusing on charity and building community will appeal to thealtruistic nature of Seattle homeowners.

For the elderly consumer market, direct mail will be the main marketing approach, withadditional messages reaching them through localized media outlets. The primarymessaging fro this secondary market will be ease and reliability. They will be directed as tothe number of tasks that can be completed by the collection of rated and reliablecontractors. Users can be reassured by feedback from satisfied customers and find relief inthe number of tasks that are within their control to have done. Additionally, andunderlying message of safety will be directed to this audience.

In terms of online banner ads, the amount of space in a 468x60 pixels obviously is not largeenough for a photo-based advertisement. However, animation can still be used, thus Flashcan be utilized to convey a series of mostly text-based messages. These messages will againstress ease and time saving in the Handy People service. They could be as simple as a text-quoted conversation between two women regarding the service or an elderly woman andher son, with the final slide of the animation being the Handy People logo, slogan, andURL.

The other target audience consists of the actual contractors, directly reaching themprimarily through direct mail and at conventions and trade shows. At conventions andshows, Handy People representatives will have promotional magnets presenting thebusiness info to hand out, along with flyers designed with less fluff than the postcards ornewspaper ads. Since the goal here is to get contractors to join the service, the flyers willbe much more descriptive and detail-oriented, including fees, number of customers alreadyusing Handy People, projected number of future customers, example requests fromhomeowners, the area covered by the service, and a graphical representation of how theservice itself works. Contractors need to buy into the service as something that will benefitthem as much as it will benefit Handy People, so breaking things down into detailsencourage relevant questions and extinguish concerns. This creates the message thatHandy People is a professional, detail-oriented, and honest service. Along with the flyer, a

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Handy PeopleTerm Project Proposal

November 20, 2005Page 9 of 15

full media kit will also be available which includes the flyer, along with business cards,customer testimonials, and additional promotional materials.

In the direct mailings to contractors, the postcards will again be more straight and to thepoint, yet detail-oriented. The complete cost breakdown will be included, along with someshort customer testimonials and most importantly, the current and projected number ofcustomers. Again, this helps show that Handy People as much wants to help thecontractors get more customers as it is trying to get contractors to join the service.Contractors will be using the service much like Handy People will be using a newspaper foradvertising, so the messages sent to them will follow along similar lines.

Lead generation

Handy People is initially targeting only users in the greater Seattle area. As a result, despitethe fact that Handy People is a primarily online company, many lead generation and brandawareness activities will take place offline.

Onsite lead generation and customer retention activities

Visitors to the Handy People site will be invited to take a quick, fun customer survey (1-2questions) about the projects that never get done around their house. They will see othercustomers’ votes when they submit their answers and will be encouraged to sign up for theHandy People monthly home owners email to get a $10 coupon to fix their own peskyproblem. This not only gives us a way to get people to sign up for email, it also makes surethose people are actually interested in home repairs and Handy People. The data gatheredfrom the fun, informal survey can then be stored for future emails as a customer tidbit andas a way to guide marketing efforts – if everyone mentions installing light fixtures, forexample, Handy People can include text about lighting in future email or marketingcampaigns.

After a customer books for the first time and has their job completed, they will beencouraged to refer 5 friends to the service with a coupon for a free hour of work as athank you for trying our service for them and a $10 coupon for each of the friends.

Also, all existing customers will be asked to fill out a short survey after each project iscompleted regarding the contractor (to help build the database of reviews), the bookingprocess and the website experience as a whole. This creates a “switching cost” for thecustomer should they decide to either book with the contractor direct or with a competitor.We have all of their information and they have invested time with us to make the site betterfor them and other users.

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November 20, 2005Page 10 of 15

Costs and expected returnOnsite lead generation and customer retention activities:Survey creation – All surveys will be created and analyzed in house.Informal home page survey - Expect about 20% of users to interact with the informalhome page survey, with about 5% of those going on to book. Given expected monthly trafficof 20,000 users, this campaign is expected to generate 200 extra bookings per month.1st time user coupon – This is expected to raise customer return rates by 5% (the highconversion is based on the customer already having self-selected as a Handy People user).

Online lead generation activities

Online lead generation will be focused on keyword buys in major search engines and adplacement with key sites that match our demographics.

Handy People will buy Seattle-focused keyword placement with Google and with Overture(covers Yahoo and MSN currently although that is changing). Using the Overture searchguidance feature (http://inventory.overture.com/d/searchinventory/suggestion/), HandyPeople will initially focus the keyword buys on “Handyman Seattle” (168 searches inSeptember), “Seattle Home Repair” (112 searches in September), and if affordable, simply“Handyman” (26,433 searches in September). The targeted results should perform betterwith click thru but the general results will garner some name recognition.

We will also buy banner ad placement with SeattleTimes.com to target their Homes sectionexclusively. This will help us reach the more affluent consumers who are also likely to beresearching or considering new home projects.

Costs and expected returnOnline advertising:SeattleTimes.com – Handy People will purchase 250,000 impressions at the category level(targeting the Homes section) for approximately $5,000 (current pricing guidelines come outat $5062.5).Given a 1% average CTR, we expect to receive 2,500 website hits from the Seattle Timescampaign.Google - Budgeting a $0.50 per click ad buy with Google to start ($5,000 for 10,000 clicks).Expect approximately 6,000 clicks from Google and 2,500 from SeattleTimes.com

Offline lead generation activities

Offline lead generation will focus on three main campaigns. The first is a direct mailpostcard campaign to lists of contractors, new homeowners and female homeowners. Thesecond campaign is an ad blitz in the two local weekly newspapers, the Stranger and theSeattle Weekly. The third group of activities will focus largely on the contractors. HandyPeople will have booths at all of the major home and construction shows in the Seattlearea, looking to attract more independent contractors to join the service.

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Handy PeopleTerm Project Proposal

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We investigated doing a billboard or transit campaign but the cost did not generatesufficient ROI. Basic campaigns start at about $100,000 with creative, printing andplacement. This may be saved for a second year awareness push or when Handy Peoplemoves into other cities where the costs can be spread around more.

Direct mail

The direct mail campaign will focus on targeting key consumers with a message explicitlyfor them. Contractors will receive a postcard listing the advantages of Handy People versusother sites including ability to work when they want with online scheduling ofappointments, no marketing costs, and direct access to customers. New homeowners willreceive a postcard mentioning all the little things that new homeowners want to change orfix about their new house including personalizing the rooms with fresh paint or installingnew lighting or bathroom fixtures. Female homeowners will be targeted with a message ofindependence from the grind of home repair and independence from asking friends andrelatives for help.

Each direct mail piece to the two-homeowner groups will contain a unique coupon codethat will be used to track which users actually come to the site and book. The contractorswill be invited to an informational seminar about the Handy People service including ademonstration of the booking function and advertising placement, and in general aboutmarketing on the web. The registration form will be online and accessible from both thepostcard mailer and the contractor information section of the Handy People website.

Direct mail costs and expected returnDirect mail:Postcard mailers will be sent to new homeowners, contractors, and female homeownersdowntown Seattle.$250 for list of 1,000 independent contractors for direct mail.$250 for list of 1,000 new homeowners.$250 for list of 1,000 existing female homeowners in downtown Seattle for direct mail(deduced against new homeowner list).$2250 for printing 4500 postcards (to be used for both direct mail and handing out atconferences)$1,110 for mailing 3,000 postcardsDirect mail total = $5,110With 3,000 postcards sent, expect to see 3% come to the website – 90 qualified leads.

Local newspaper advertisingThe advertising blitz in the Stranger and the Seattle Weekly will last 6 months. For each ofthose 6 months, Handy People will buy half page ads in both papers, each selling a slightlydifferent feature of the website. Ads will be humorous and designed to appeal to the late20s, early 30s apartment or condo dweller.

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Local newspaper advertising costs and expected returns:Local newspaper advertising: $27,6006 month _ page ads in both the Seattle Weekly and the Stranger - $27,600The Seattle Weekly reaches about 209,700 readers, assuming similar numbers for theStranger.Given a 0.3% conversion, this is expected to generate 6,291 visits to the website but will alsohelp drive general brand awareness.

Conventions and trade showsHandy People will plan to have a very simple booth at the Seattle Home Show with twocomputers to show contractors and homeowners how the Handy People site works and thebusiness card magnets to make sure people leave with the URL. There will also be a rafflefor 4-hours of work. All entrants will be added to the in-house customer database andincluded in the appropriate postcard mailing (see above).

As trade shows tend to have an older, more affluent demographic, the collateral for thiscampaign will be targeted at older users and contractors (likely other exhibitors).

Convention and trade show costs and expected returns:Convention and tradeshow presence - $3,500Although rates for the 2006 Seattle Home Show have not yet been posted but the PortlandHome & Garden Show is charging $950 per booth. Estimating $1,000 for booth space,assume computers are company property.Business Card Magnets to hand out at trade shows:10,000 @ .15 a piece - $1500Flyers:Flyer design created in house$1000 for printing costs ($.10 x 10,000)Estimated attendance is 30,000, expect about 20% will sign up for drawing and 3% willactually book on the site – 6,000 names for mailing list and 180 purchases.

Public relationsHandy People will host a launch event with Habitat for Humanity designed to driveemployee morale, create a team environment and emotional bond with contractors andcommunity. Handy People will pay all contractors who are listing on the site at launch towork for a day for the Habitat for Humanity.

Handy People will also pitch prospective media outlets including KMTT, NorthwestAfternoon and Evening Magazine on doing short shows about home improvement. As anincentive, Handy People will provide 1-2 4 hour increments of work as prizes to attractlisteners/viewers.

Standard monthly press releases will be sent to area business newspapers explaining theservice and any big wins to keep Handy People top of mind as an up and coming businessto watch.

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Public relations costs and expected returns:Charitable giving: $4,000 (assume 6-7 contractors participating at about $80 an hour)This event will not directly affect the bottom line in that no leads are expected to begenerated. This is purely for PR with both contractors and customers.Promotions and giveaways: $3,200This covers such promotions as the radio and television placements and the coupons in variousoutlets.Handy People plans to give away 10 4-hour blocks of work on shows like NorthwestAfternoon, local morning TV shows and local morning radio shows.4 hours at $80/hour = $320Expect to drive 20,000 hits to the website.

Marketing Costs and Effectiveness

Marketing costs will not exceed $70,000 for the first year.Onsite advertising = $0Direct mail total = $5,110Online advertising and search engine placement: $10,000Offline advertising: $31,100Charitable giving: $4,000Promotions and giveaways: $3,200Research: $5,000

Handy People will run two focus group research projects with the first focusingon users who have never heard of Handy People and the second on those whohave used the service and how they would improve it.Estimated cost $2000Surveys will be generated in house and sent to all customers using the site oncetheir service is completed and to all contractors once a month.No estimated cost as survey creation and analysis of data will be handled inhouse.Handy People will also implement a very basic site analytics tool.Estimated cost $3000 for first year.These costs will not directly improve the bottom line but will help HandyPeople improve the website experience long term.

Search Engine Optimization: $5,000Handy People will hire an outside firm to optimize their site for effective searchengine placement for a one-time cost of $5,000.Expect this to improve natural search patterns and drive additional qualifiedshoppers.Estimated additional 20,000 clicks in the first year.

Total costs:Onsite advertising $0.00Direct mail $5,110.00Online advertising and search engineplacement $10,000.00Offline advertising $31,100.00

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Charitable giving $4,000.00Promotions and giveaways $3,200.00Research $5,000.00Search Engine Optimization $5,000.00Total estimated marketing spend for alllaunch/1st year campaign efforts: $63,410.00

Total traffic generated:Onsite advertising 0Direct mail 90Online advertising and search engineplacement 7,500Offline advertising 12,291Charitable giving 0Promotions and giveaways 20,000Research 0Search Engine Optimization 20,000Total estimated site traffic generated: 59,881

CAMPAIGN ROI CALCULATOR

Success estimates for all online/mass market marketing efforts where # ofconsumers reached and estimated conversion varies by medium. This tableassumes # of users brought to the website by marketing activities detailed above.

Best Case Average Conservative

Number of Clicks/Hits to the Website 59,881 59,881 59,881Estimated Response Rate 5.0% 3.0% 1.0%

Number of Leads Generated 2,994 1,796 599

Avg Sale Per Customer $

250.00 $ 250.00 $ 250.00

Estimated Sales from Campaign $

748,512.50 $449,107.50 $149,702.50Gross Margin 20% 20% 20%

Estimated Gross Margin Dollars $

149,702.50 $ 89,821.50 $ 29,940.50

Cost of Campaign $

66,845.00 $ 66,845.00 $ 66,845.00One Year Gross Margin ROI 2.24 1.34 0.45Three Year Gross Margin ROI (2X) 4.48 2.69 0.90

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Handy PeopleTerm Project Proposal

November 20, 2005Page 15 of 15

Given Handy People is a brand new company, and many of the lead generation activitieswill also involve brand awareness building, a high initial marketing cost is to be expected.While the ROI is not rosy, the long-term effects of gaining customer mindshare faroutweigh the initial low results.