Becoming A Marketing Solutions Partner

1
Becoming A Marketing Solutions Partner 2009
Roundtable on Strategic Marketing Monday August
24, 2009
2
From Provider To Partner Darrell Kunken, The
Sacramento Bee

• The concept is simple, todays 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.

Becoming A Marketing Solutions Provider
2009 Roundtable on Strategic Marketing
3
Todays 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

Becoming A Marketing Solutions Provider
2009 Roundtable on Strategic Marketing
4
Silverado Landscape and Design Just A Quick
1,082 Miles East
Becoming A Marketing Solutions Provider
2009 Roundtable on Strategic Marketing
5
The Silverado Story Ryan Crabtree, Silverado
Landscape and Design
Becoming A Marketing Solutions Provider
2009 Roundtable on Strategic Marketing
6
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.

Becoming A Marketing Solutions Provider
2009 Roundtable on Strategic Marketing
7
A Better Partnership

• Silverados 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

Becoming A Marketing Solutions Provider
2009 Roundtable on Strategic Marketing
8
Changes To Marketing Have Made A Difference
Becoming A Marketing Solutions Provider
2009 Roundtable on Strategic Marketing
9
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

Becoming A Marketing Solutions Provider
2009 Roundtable on Strategic Marketing
10
Building A Better Mousetrap Frank Wofford, The
Sacramento Bee

• In light of the changing nature of Silverados
  business The Bee needed to change its 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.

Becoming A Marketing Solutions Provider
2009 Roundtable on Strategic Marketing
11
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.

Becoming A Marketing Solutions Provider
2009 Roundtable on Strategic Marketing
12
Defining Silverados Best Customer

• 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.

Becoming A Marketing Solutions Provider
2009 Roundtable on Strategic Marketing
13
Defining The Market At Large

• 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 Silverados
  profile was in line with the markets landscaping
  profile, therefore we focused on the top four
  segments.

Becoming A Marketing Solutions Provider
2009 Roundtable on Strategic Marketing
14
Location, Location, Location
Becoming A Marketing Solutions Provider
2009 Roundtable on Strategic Marketing
15
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.

Becoming A Marketing Solutions Provider
2009 Roundtable on Strategic Marketing
16
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
  Silverados 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.

Becoming A Marketing Solutions Provider
2009 Roundtable on Strategic Marketing
17
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.
Becoming A Marketing Solutions Provider
2009 Roundtable on Strategic Marketing
18
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.
Becoming A Marketing Solutions Provider
2009 Roundtable on Strategic Marketing
19
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
  Silverados top audience segments and the
  client's desire to grow the youth and family
  segments among their client base.

Show this txt _at_ Silverado 9297 Jackson Rd to save
50 on 200 purchase! Valid 4/1718 only! Share
savings fwd this txt to friends and fam!
Becoming A Marketing Solutions Provider
2009 Roundtable on Strategic Marketing
20
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.

Becoming A Marketing Solutions Provider
2009 Roundtable on Strategic Marketing
21
Integrated Program Continues To Reap Rewards

• Following Aprils 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 Aprils 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

Becoming A Marketing Solutions Provider
2009 Roundtable on Strategic Marketing
22
Becoming A Marketing Solutions Provider
2009 Roundtable on Strategic Marketing
23
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.

Becoming A Marketing Solutions Provider
2009 Roundtable on Strategic Marketing
24
Delivering Scalability to the Marketing Plan
Becoming A Marketing Solutions Provider
2009 Roundtable on Strategic Marketing
25
2010 Marketing and Business Goals

• Continue to refine business practices and
  marketing efforts.
• Push the Silverado Sacramentos premier
  destination for home materials. Expand the
  regions 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.

Becoming A Marketing Solutions Provider
2009 Roundtable on Strategic Marketing
26
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
Becoming A Marketing Solutions Provider
2009 Roundtable on Strategic Marketing
27
Thank You
Becoming A Marketing Solutions Provider
2009 Roundtable on Strategic Marketing