Mon 11 wofford - sac bee rountable pres-aug09_v3

Becoming A Marketing Solutions Partner

2009 Roundtable on Strategic Marketing

Monday August 24, 2009

Becoming A Marketing Solutions Provider 2009 Roundtable on Strategic Marketing

From Provider To Partner Darrell Kunken, The Sacramento Bee

- The concept is simple, today’s clients need more from us.

- The changing nature of technology has dictated a sea change in how

readers consume news and information.

- These forces have converged to create a situation where data,

knowledge, products and partnership is the new normal.


Today’s Agenda

Who:

- Ryan Crabtree, Silverado Landscape and Design

- Darrell Kunken, The Sacramento Bee

- Frank Wofford, The Sacramento Bee

What:

- Moving a client relationship to the next level by using

customer data to build an integrated marketing plan

- What is Silverado Landscape and Design

- The Silverado Example

- Success

- Moving Forward/Next Steps


Silverado Landscape and Design Just A Quick 1,082 Miles East


The Silverado Story Ryan Crabtree, Silverado Landscape and Design


Silverado: From Contractor to Consumer

- Founded in 1992 as a lath and plaster company.

- Over the past 17 years business has evolved into a

dual approach

- Contractors

- Retail Customers

- In the past five years the retail customer wing of the

business has become the most important aspect of

the business.

- This has caused a shift in business practices,

especially marketing and advertising.


A Better Partnership

Silverado’s New Retail Position and The Changing Nature of Marketing Dictated

- Better business practices

- Getting smarter about advertising:

- Building efficiencies

- Consistent, planned presence

- Defining and tracking a sensible return on advertising investment


Changes To Marketing Have Made A Difference


A Better Partnership

- Redefining the retail space

- Creating a retail destination and customer experience

- Growing the nursery business (Sacramento)

- In turn this mandated a difference approach to marketing

- The customer file analysis

- A revised marketing plan


Building A Better Mousetrap Frank Wofford, The Sacramento Bee

- In light of the changing nature of Silverado’s business

The Bee needed to change it’s approach to the client.

- Wanted to shift from a relatively successful traditional

advertising plan to an integrated marketing program

that was built on:

- Who the Silverado customer is and could be;

- Their media habits;

- Leveraged new channels;

- Placing the right message, against the right

customer to incite action and drive sales.


The Customer File Analysis

- Coded and uploaded in MaaX the existing customer file.

- File was profiled across the usual identifiers

- Demographics

- Age and Income

- Psychographics

- Claritas – PRIZM Lifestage

- Geographic Location

- By ZIP Code and Sub-ZIP Areas

- Media Usage

- Overlap with Bee subscriber file and sacbee.com registrants.

- Using PRIZM and Scarborough we also identified media usage patterns for

print readership, Internet, text message, e-mail and Yahoo usage.


Defining Silverado’s Best Customer

14% 14%

7%

6%

9%

11%

7%

5%

9%8%

9%

23%

9%

2%

12%13%

8%

3%

10% 9%

6%5%

0%

5%

10%

15%

20%

25%

Y1 Y2 Y3 F1 F2 F3 F4 M1 M2 M3 M4

Market Silverado Nursery

- From the Lifestage analysis it became clear that the majority of customers we

generated from the most affluent PRIZM Segments.

- The affluent nature of the customer was further confirmed by the overconcentration

of households earning over $100,000 per year.


Defining The Market At Large

0

50

100

150

200

250

Y1 Y2 Y3 F1 F2 F3 F4 M1 M2 M3 M4

Silverado Usage Index Landscaping (All)

- Using a syndicated data source like Scarborough or Claritas we can also examine

generalize usage of the retail category to identify target or move-up audience groups.

In this case Silverado’s profile was in line with the market’s landscaping profile,

therefore we focused on the top four segments.


Location, Location, Location


Media Channel Usage And Customer Segments

- Once key segments were established we used media usage indexes from Scarborough

to identify which channels we more or less used by each customer segment.

Lifestage Group: Y1 Y2 Y3 F1 F2 F3 F4 M1 M2 M3 M4

Total Pop, in Thousands 195K 189K 40K 78K 213K 191K 49K 182K 244K 140K 67K

Silverado Comp. % 23.1% 9.4% 2.2% 11.9% 13.0% 7.8% 2.7% 9.7% 9.2% 6.0% 4.9%

Silverado Usage Index 163 68 30 210 143 70 40 188 100 76 52

Weekly Print Audience 103 107 40 120 107 71 38 150 129 104 75

Sacbee.com 133 152 37 134 148 79 51 114 87 63 44

Weekly Combined Audience 106 118 41 114 111 71 36 146 126 99 71

Text messaging 130 110 43 121 123 108 108 97 71 72 64

Internet Usage 124 107 67 129 113 98 72 114 97 75 72

E-Mail Usage 118 101 76 118 111 100 65 111 97 73 71

Yahoo! 124 107 81 131 121 88 84 112 89 81 71

▲ ▲ ▲ ▲ ▲

◄ Affluence ◄ Affluence ◄ Affluence

Under 45 No Kids 25-54, Children 45+, No Children



Silverado Comp. % 23.1% 9.4% 2.2% 11.9% 13.0% 7.8% 2.7% 9.7% 9.2% 6.0% 4.9%



Sacbee.com 133 152 37 134 148 79 51 114 87 63 44


Text messaging 130 110 43 121 123 108 108 97 71 72 64

Internet Usage 124 107 67 129 113 98 72 114 97 75 72

E-Mail Usage 118 101 76 118 111 100 65 111 97 73 71

Yahoo! 124 107 81 131 121 88 84 112 89 81 71

▲ ▲ ▲ ▲ ▲





Silverado Comp. % 23.1% 9.4% 2.2% 11.9% 13.0% 7.8% 2.7% 9.7% 9.2% 6.0% 4.9%



Sacbee.com 133 152 37 134 148 79 51 114 87 63 44


Text messaging 130 110 43 121 123 108 108 97 71 72 64

Internet Usage 124 107 67 129 113 98 72 114 97 75 72

E-Mail Usage 118 101 76 118 111 100 65 111 97 73 71

Yahoo! 124 107 81 131 121 88 84 112 89 81 71

▲ ▲ ▲ ▲ ▲




A Strategic Marketing Campaign

- Based on the information gleaned from the Silverado customer file

analysis as well as the syndicated data from Scarborough we were able to

craft an integrated campaign that comported to Silverado’s marketing

and business goals:

- Better business practices

- Getting smarter about advertising

- Expanding the Silverado customer base

- In turn this lead to the creation of a consistent advertising campaign

which leveraged weekly ads in The Bee, a consistent presence across

sacbee.com (including behavioral targeting) and local television.

- Additionally, special events and sales warranted extra attention and

creative use of channels like mobile couponing and post-it-notes.


Spring Home Show Tactical Execution: In Paper

- Following the file analysis and conception of the new marketing plan

Silverado was planning a three day sale on Friday April 17th, Saturday April

18th and Sunday April 19th.

In paper ads ran between April 15th and

19th generating 63% reach against the

target audience segments at a 3.4 average

frequency or 1.5 million gross impressions.


Spring Home Show Tactical Execution: Interactive

An additional 250,000 impressions were

generated via sacbee.com featuring high

impact positions on the home page as well

as geo-targeted ads to the Silverado RTZ.

Show this txt @ Silverado 9297 Jackson Rd to save $50 on $200 purchase!

Valid 4/17&18 only! Share savings & fwd this

txt to friends and fam!


Spring Home Show Tactical Execution: Mobile

- Uniquely all creative featured a mobile coupon

code – the first time used for a client at The Bee.

- The usage of mobile made sense given the higher

than average usage of text messaging by

Silverado’s top audience segments and the

client's desire to grow the youth and family

segments among their client base.


“The Best Sales Weekend To Date”

- The weekend sale was a spectacular success.

- Beginning on Friday traffic to the location was higher than normal

and included a mix of demographic groups.

- Traffic and sales over the weekend only increased, leading to the best

sales weekend to date.

- Conversion rates for the mobile campaign topped 70%.


Integrated Program Continues To Reap Rewards

- Following April’s Spring Home Show, Silverado utilized a similar integrated

marketing campaign to promote their Memorial Day Weekend Sale.

- The sale also featured a Classic Car Show and family activities.

- Unlike April’s Home Show, Mother Nature did not cooperate with

temperatures exceeding 100 degrees.

- The three day sale generated the largest cash sale ever: $250,000.

- Oh and they gave away a few hot dogs…



So Where Do We Go From Here?

- Continuation of current marketing program as well as special event

programs. A mobile coupon is scheduled for September.

- Took receipt of the new customer file in late August.

- Includes expenditure data, which will allow for a refinement of

segmentation strategy.

- First Pass Findings of Note:

- Percentage of Silverado customers who are also Bee

subscribers rose to 52%, from 42%.

- Sacbee.com registrants how comprise 51% of customers, up

from 43%.

- The Y1 PRIZM Lifestage Segment continues to comprise the

largest, both in volume and average spending.


Delivering Scalability to the Marketing Plan

Y1

23% of Cust.

F1

12% of Cust.

F2

13% of Cust.

M1

10% of Cust.

Primary

Customers

Index 103 Index 120 Index 107 Index 150 Bee/ROP

Usage

Index 133 Index 134 Index 148 Index 114 Sacbee.com

Usage

Index 130 Index 121 Index 123 Index 97 Text Message

Index 103 Index 110 Index 110 Index 91 Social Media

Index 75 Index 74 Index 64 Index 146 Television

Quintile 1


2010 Marketing and Business Goals

- Continue to refine business practices and marketing efforts.

- Push the Silverado Sacramento’s premier destination for home

materials. Expand the region’s knowledge of nursery products and

programs.

- Building upon the positive experience in Sacramento, expansion of

Modesto, California location to include a nursery.

- Addition of other marketing programs including e-mail and social

media, content integration and sharing between The Bee and

Silverado.


When Mad Men Become Data People

“And that's where I think Don

Draper would want to find

himself if he entered

advertising today: analyzing

consumer data, understanding

how consumers behave and

coming up with insights and

new ways to connect with

them.”

- Avi Dan, Ad Week


Thank You…