Eco-Coffee Corporation IMC

2014

Anastasiia Reznichenko

[INTEGRATED MARKETING COMMUNICATIONS PLAN] Eco-Coffee Corporation

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Eco-Coffee Corporation IMC

CONTENTS

EXECUTIVE SUMMARY………………………………………………………….……..……. 3 COMPANY BACKGROUND………………………………………………………………... 4 SWOT ANALYSIS………………………………………………….………………………….. 6 COMPETITIVE ANALYSIS…………………………………………….……………………... 9 TARGET MARKET ANALYSIS………………………………………….…………………….. 10 4 P’S - PRODUCT, PRICE, PLACE, PROMOTION……………….………………………... 12 MARKETING PLAN…………………………………………….……………………….……. 13 PUBLIC RELATIONS PLAN…………………………….……………………………….…….

Media releases ………………………….………………………………………...……. Direct mail strategy………………………….………………………………………….

13 15 17

CREATIVE STRATEGY………………………….…………………………………………….. 21 SALES CALLS………………………….………………………………………………..…….. 21 PROMOTION………………………….………………………………………………..…….. 23 ONLINE STARTEGY ………………………….………………………………………...…….

Website………………………….………………………………………………………… Search Engine Optimization (SEO) …………………………………………….. LinkedIn………………………….………………………………………………………... Twitter………………………….………………………………………………………….. E-mail………………………….……………………………………………………………

Online Advertising………………………….………………………………………........... Online Recommendations……………….……………………………………………….

HootSuite……………….…………………………………………………………........... Social plugins on the website…………………………………………………........... QR code…………………………………………………………………………………..

24 24 27 30 30 31 32 35 35 35 35

BUDGET ………………………………………………………………………………………. 39 BLOCKING CHART………………………………………………………………………….. 39 APPENDICES………………………………………………………………………………….. Appendix A: Fast facts about Kitchener………………………………………………. Appendix B: Publics analysis……………………………………………………………... Appendix C: Addressed Admail………………………………………………………… Appendix D: Tips to write a successful media release……………………………… Appendix E: State of Demand Generation 2013…………………………………….. Appendix F: Why good web design is so important………………………………… Appendix G: How video content appeals to different personality types………. Ten biggest video marketing mistakes to avoid……………………..

40 41 42 44 45 50 51 57 60

Please note that certain portions of this plan have been omitted to protect confidential information.

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Eco-Coffee Corporation IMC

EXECUTIVE SUMMARY

Eco-Coffee Corporation is an independent business in Kitchener-Waterloo Region. It specializes in roasting and retailing Fair Trade and Rainforest Alliance certified coffee, as well as coffee machines and brewers. With no current marketing plan in place, the following Integrated Marketing Communications (IMC) plan aims to provide a thorough outline of how Eco-Coffee Corp. could market the business moving forward. Goal of the IMC plan is to raise awareness of the brand in the market; and use created awareness to drive more customers and leads.

This plan offers a marketing communications plan that outlines: 1) a current situational analysis of the Eco-Coffee Corp. 2) an analysis of the key competitors in the market 3) an analysis of the target market 4) a detailed online strategy 5) a public relations plan 6) an advertising strategy

The plan recommends and details the following marketing tactics:

• Online: LinkedIn, e-mail, content generation • Public Relations: E-mails and media releases • Advertising: Direct mail, sales phone calls, LinkedIn ads • Promotion: Free product offer for referral, discounts

Target Market Eco-Coffee Corp. operates as a business-to-business retailer, and as such, the target market is business owners, decision-makers and managers. The primary target markets for Eco-Coffee Corp. are small business owners in the Region of Waterloo. Budget Overview The document offers a full breakdown of the expenses needed to implement the defined marketing communications recommendations. The total budget for the campaign is $ 4684,9

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Eco-Coffee Corporation IMC

COMPANY BACKGROUND Eco-Coffee Corporation is an independent business in Kitchener-Waterloo Region. It specializes in roasting and retailing Fair Trade and Rainforest Alliance certified coffee, as well as coffee machines and brewers.

The company operates a coffee roasting plant using artisan small roaster practices. The plant feeds multiple channels: retail coffee shops, retailer businesses and office coffee services. All roasting is produced in a systematic manner thus guaranteeing both quality and freshness.

The developed operational processes and procedures enable the roasting to be crafted and customized to each client while consistently replicating their particular quality and volume requirements. History Eco-Coffee Corporation was founded by Edward Denyer and his partners from Colombia on June 23, 2003.

At that time City of Kitchener was looking for independent vendors for its new market. Partners decided to build a café there. The café was opened in September 2004. The concept was to roast coffee at the café in front of the public. Name of the café was Northern Roast Coffee. In 2007 they changed name and logo of the café. A new created name was Eco Cafe. At this point they started looking for new possibilities to grow. As a result the company decided to be involved in the office-coffee at the big way. Partners did significant investments into environmentally friendly coffee machines. Today Eco-Coffee Corporation is in the process of looking for ways of growing and attracting new customers.

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Eco-Coffee Corporation IMC

Current marketing situation Currently Eco-Coffee Corporation does not have a marketing team in place. It has done some advertising in the past such as an article in the local newspaper, trade show and free samples.

The best results brought the article about coffee in the newspaper. At the next day after the publishing the company made 9 new customers. The booth at the trade show and free samples campaigns was not successful. The returns were insignificant and took 2-3 years.

In addition, the company endeavors to use materials for advertising which are more eco-friendly, in order to keep consistency. The main ways of communications are e-mails and word-of-mouth.

The company has its own web-site, Facebook page, Twitter account and the ability for blogging. However, there are not a lot of activities.

Based on an overview of the current marketing situation it can be gathered that Eco-Coffee Corporation tried some advertising, but there has not been an ongoing campaign with any consistency.

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Eco-Coffee Corporation IMC

SWOT ANALYSIS SWOT analysis is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a business venture.

The results of SWOT show which strengths of the company could be used, and weaknesses handled; available opportunities, and potential threats. For this purpose 4 main competitors were selected: Gold Roast Coffee, Baden Coffee, Imperial Coffee and Planet Bean. Eco-Coffee Сorporation

Strengths Weaknesses − 10 years of experience − Local to the KW region − Customer service focused − Focused on long term relationships − High quality products − Wide range of products − Fresh roasted coffee − Own roasted equipment − Coffee machines and brewing

equipment on sale − Environmentally conscious − Certified fair trade and organic

Arabica coffee − Wholesale − Coffee related products − Social media presence − Warranty − Quick response time − Efficient delivery service − Own product (coffee)

− No online billing option for customers − Website has functionality and

aesthetic issues − No links of Social networks on the

website − Not active in social media − Limited possibilities to deliver a

message and stay eco-friendly at the same time

− No sales force − No structured plan for marketing and

sales − Credentials are not available online − No k cups coffee − Not consistence in colour scheme

Opportunities Threats − Online client database/payment

option − New clients/retailors

− Premature rupture of the contract − Bigger businesses with more

attractive offers − National level competitors − Other coffee on the shelf − Cafes and restaurants

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Eco-Coffee Corporation IMC

Gold Roast Coffee

Strengths Weaknesses − 17 years of experience − Locally owned − Operation area encompasses

Kitchener-Waterloo, Cambridge, Guelph, Fergus, Elora, Arthur, Stratford and surrounding area

− Online payment options − Wide product & service line − Replacement parts for the

machines − Website includes all necessary

information − Testimonials included on website − Social media presence − Free Trial − No contract requirement to work − Coffee machines for office at no

cost − Online store − Variety of distributors − K-cups

− No information about eco-responsibilities provided

− Facebook page not updated regularly

− No information about Fare trade and Café Femenino

− No fresh roasted coffee

Opportunities Threats − With a wide variety of products and

free equipment there is opportunity for growth

- Bigger competitors

Baden Coffee

Strengths Weaknesses − Family-owned − Since 1997 − Provides services to 300 businesses in

the Southern Ontario region − Wide product & service line − Own roaster − Community Involvement − User-friendly website − Testimonials included on website − Social media presence (Twitter,

Facebook, youtube, Blog)

− No online billing option for customers − Long response time

Opportunities Threats − Continued expansion into related

industries − Bigger competitors

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Eco-Coffee Corporation IMC

Imperial Coffee

Strengths Weaknesses − Wide variety of products and

services − Fast service − User-friendly, modern website − Up-to-date social media presence

(Twitter, Facebook, Youtube, Blog) − Strong reputation − Multiple locations − Environmentally conscious − Social Responsibility − Over 60 trucks on the road − Brochures online available

− No fresh roasted coffee − Offer valid for workplaces with more

than 20 employees

Opportunities Threats − With an excellent service and wide

variety of products Imperial Coffee stands to dominate the industry

- Cafes and restaurants - Smaller - Businesses with strong customer

service may fulfill the areas

Planet Bean

Strengths Weaknesses − Since 1997 − High quality products − Wide range of roasted coffee − Fresh roasted coffee − Brewing equipment on sale − Ecologically Sustainable − Certified Fair trade and organic

arabica coffee − Social media presence − Efficient delivery service − Two own coffee bars − Wholesale − Roasters Guild organization − Credentials available online

− No online billing option for customers − Website has functionality and

aesthetic issues − No links of Social networks on the

website

Opportunities Threats − New customers/retailors − National level competitors

− Cafes and restaurants

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Eco-Coffee Corporation IMC

COMPETITIVE ANALYSIS

The competitive table shows important aspects of the businesses that are common to Eco-Coffee Corp. and its competitors. Each individual score shows where organizations need to improve, based on the situational analyses conducted above. The totals column demonstrates which competitors ranked highest overall. The numbering system ranks each organization from 1-5.

Operation area

Social Media Effectiveness

Product availability

Website Appeal

Social Responsibility Total

Eco-Coffee Corp.

3 3 3.5 3.8 3.8 17.1

Gold Roast Coffee

4 3 4 4.7 2 17.7

Baden Coffee 4.3 4.7 3.8 4.8 4 21.6

Imperial Coffee 5 4.5 5 4.9 5 24.4

Planet Bean 3 4 4 3 3.4 17.4

Operation area – local, national or international Social Media Effectiveness- presents and activity in Social media Product availability- places where a product can be purchased Website Appeal- how much the website is attractive, user-friendly and informative Social Responsibility - level of cooperation with charities; sponsorship, environmental responsibility. Based on the SWOT analyses and the competitive analysis, it is clear that Eco-Coffee Corporation can improve in some aspects of its business. Baden and Imperial Coffee are both big players in the market with wide operation area. While Eco-Coffee may not be able to operate on the same scale as these businesses, it can improve in several areas in order to be more competitive and grow.

This plan will focus on several key areas in order to increase market share and generate leads to the company. These key areas are advertising tools, social media presence, and website appeal.

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Eco-Coffee Corporation IMC

TARGET MARKET ANALYSIS Eco-Coffee Corp. operates as a business-to-business retailer. As such, the target market is business owners (primarily small and medium businesses, decision-makers and management). Current customers of Eco-Coffee Corp. could be break down into three parts:

• Businesses which are offered with office coffee services • Wholesale to other businesses, cafes and restaurants • Retail to regular buyers, cafes and restaurants

Therefore, the primary target market for Eco-Coffee Corp. is small business owners in the Region of Waterloo.

The Region of Waterloo includes Waterloo, Kitchener, and Cambridge. The region is fast-growing and has a relatively young population due to its many universities and colleges. As a result many of the businesses in the region are start-ups, in the growth process of development.

The high number of new businesses in the Waterloo Region creates a perfect market for Eco-Coffee Corp. because most of the businesses are still small. Owners of such type of business are the primary target for Eco-Coffee Corp. Small businesses are largely owner-operated and are typically local, operating on a small scale. Owners have final say in the decisions, so marketing efforts must be targeted to them.

The small business owner has the final decision in what the company does. Small businesses do not have large reserves of funds. Data presented to them should show measurable benefits to the company in order to persuade them and at the same time make a focus on high quality product.

Business Profile1

Employee size range KCW CMA* number of establishments 5 to 9 2,774 10 to 19 1,813 20 to 49 1,169 Total 5756

* KCW CMA is the Kitchener-Cambridge-Waterloo Census Metropolitan Area which consists of Kitchener, Cambridge, Waterloo, Woolwich and North Dumfries

1 Fast facts about Kitchener. Appendix A

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Eco-Coffee Corporation IMC

As table shows, there are 5756 companies in Waterloo Region with number of employees from 5 to 50, which can be clients for Eco Coffee Corp. In order to narrow this number a selection should be done. The main focus should be done on companies which care about it’s image, companies which are very interactive with their customers, and which are concerned about the quality of products they consume and propose to their clients. For example: • Beauty salons • Consulting services (insurance

agencies, legal, financial) • Event planning agencies • Golf clubs • Health and fitness consulting

• Interior design services • Real estate • Recreation and leisure • Showrooms • Spas • Travel agencies • Investments

To approach approximately 20% of these 5756 companies would mean up to 1000 potential clients for Eco-Coffee Corp. In order to define those thousand companies and their contact information different sources can be used, such as: • Chamber of Commerce

Advocate • Google Search • Linked In • Library database

• Local newspapers (Waterloo Record, Kitchener Post, Snap)

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Eco-Coffee Corporation IMC

4 P’S - PRODUCT, PRICE, PLACE, PROMOTION Eco-Coffee Corp. provides three types of products:

• Fresh roasted coffee • Coffee machines and brewers • Coffee supplements

Each of them has different characteristics and qualities which are identified below.

Product Price Fresh roasted coffee − The price is tailored to the needs of

the customer − The price is competitive to other

coffee providers − Contract lengths tailored to

customer needs

− Cafe Femenino − Rainforest Alliance − Fair Trade Organic − Delivered from Brazil, Colombia,

Guatemala SHB, Dominican Republic, Costa Rica, Nicaragua , Peru , Sumatra Coffee Machines and Brewers

− Eco-friendly − Varieties of choices (Newco, Bunn,

Guertech) Coffee supplements

− Milk and Cream − Cocoa Camino Fair Trade Organic

Golden Cane Sugar − Sweeteners − Syrups and Sauces − Tea

Place Promotion − Products can be purchased by

contacting the company directly: online (website), email, or telephone

− Coffee currently available in 7 locations: Office, Vincenzo's, Market fresh, Full circle, David's Gourmet, Brady's meat, Baley's

Recommended: − Online (website) − Social Media (LinkedIn, Twitter,

Wordpress blogging) − Media Releases − Direct mail campaign − Cold phone calls − Free product offer for referral

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Eco-Coffee Corporation IMC

MARKETING PLAN

The Marketing plan consists of Public Relations, Advertising and Online strategies and tactics. All of them are created in order to reach clearly identified goal and objectives written below.

Goal The overall goal of the Marketing plan is to raise awareness of Eco Coffee Corp. in the market, communicate the key messages to the potential customers about their unique product, and maintain relationships with current partners.

Objectives 1. Cultivate __ warm leads within eight months 2. Use those warm leads to sign __ new contracts within eight

months of the campaign 3. Establish a customer service program to maintain relations with

current customers 4. Secure a story about Eco-Coffee Corp. in local media 5. Create a sales calls campaign 6. Generate online strategies

Public Relations Plan The purpose of a public relations audit is to look at how the public perceives the organization as well as how the organization is represented through internal and external operations.

Eco Coffee Corp. does not currently engage in many public relations (PR) tactics. Internally, the most significant obstacle for implementing of a PR plan is the lack of marketing structure within the company. Eco Coffee Corp. does not have a dedicated marketing person or department, and the management focuses on sales and service to grow the company.

Externally, there are many competitors in the industry. Along with small local companies, there are national and international competitors (e.g. Imperial Coffee). The larger competitors possess better resources for using media releases and social media to communicate with their publics and raise awareness of their business. The PR plan, along with

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Eco-Coffee Corporation IMC

the marketing efforts, is targeted at raising awareness of Eco Coffee Corp. as a company, and ensuring that the public consider their products as high quality and on a par with well-known brands.

Publics Publics are groups of people with an interest in the business. Publics can include customers, suppliers, media, government, and public-interest groups. It is important to consider all of a business' publics, as shown in Appendix B, and determine which key publics need to be addressed by the plan. In this case, the key publics include current customers and potential customers.

Publics Stage of Development Key Messages Strategies Tactics

Potential customers (offices/ cafes)

Latent Eco Coffee’s Corp. can provide you with the best fresh roasted coffee, eco-friendly brewers on a par with excellent services

Increase awareness of Eco Coffee’s Corp. products and service in the market in order to generate new sales leads

Media releases Direct mail Sales calls LinkedIn Twitter Promotion Online ads

Current customers

Active Eco Coffee Corp. provides you with the best quality coffee. Get free product offer for a referral

Maintain relationships with current customers through personal visits, e-mails and Social media

Personal visits Promotion Media releases E-mails

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Eco-Coffee Corporation IMC

Potential Customers (target market) Potential customers (owners and decision makers of the businesses) are a latent public. The best way to reach this audience is through the direct mail and personal sales calls. Direct mail will generate leads and followed phone calls will increase this number. Media releases will also increase awareness of the brand.

MEDIA RELEASES

Objective 1. To secure a media release in the local news paper

Several media releases to local media such as Waterloo Record newspaper could cover:

• A business profile, emphasizing the best product and their responsibility towards environment

• A detailed profile of the environmentally-conscious and innovative aspects of products provided

• Eco-Coffee uniqueness as the owner travels to Colombia in a regular basis and brings special products which are not available in other coffee suppliers

• Recent new Direct Trade relationship with Africana Traders, which commercializing several coffees from the Rusizi Region of Rwanda.

Writing successful media release or pitch requires certain rules which can be found in Appendix D.

This plan is proposing a sample of media pitch to Waterloo Record newspaper.

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Eco-Coffee Corporation IMC

MEDIA PITCH To: Ron DeRuyter Subject: Unique local coffee supplier Hello Ron! Eco-Coffee Corp. is a company in Kitchener which supplies its own daily roasted coffee. This company uses compostable bags and is very conscious about the environment and the community. This spring Eco-Coffee got a new Direct Trade relationship with Africana Traders, which commercializes several coffee growers from the Rusizi Region of Rwanda. This story has a business angle, but also a social responsibility angle. People in Rusizi:

• 40% live in extreme poverty • 85% live beyond the grid • Some children go to school, some do not

After four years of work improving the quality of the coffee, 450 persons escaped poverty this year via the one container they shipped. Africana Traders gave each family a goat or cow in order to save their lives from starvation. Eco-Coffee is proud to support Africana Traders by selling the coffee locally would love to deliver the message to our community because it:

• Has a social aspect • Is beyond usual • Relates to local community which is passionate about coffee

If you are interested to find out more information about how Eco-Coffee company benefits the local community, we would love to have a meeting with you as well as with a photographer. He/she can have free access to our roaster in order to share our coffee spirit.

Best regards, Ramin Hayratiyan ramin.hayratiyan@gmail.com Cell: 519-591-5928

300 Mill St. Unit 1 Kitchener, ON N2M 5G8 http://www.eco-coffee.ca/

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Eco-Coffee Corporation IMC

DIRECT MAIL STRATEGY

Direct mail is one of the most measurable forms of marketing—it allows easily record the number of mailers that are sent out, and use coupons or codes to record response rates. It also allows target the recipients unlike other forms of marketing that can hit outside of the target market, direct mail is personalized to the point that a company is able to select a geographical target, demographical, or even physiological group.

The Direct Marketing Association reports that communicating to customers across multiple channels greatly increases the customers value.

• Across Two Channels : Increases the customers value 20-60% • Across Three Channels : Increases the customers value 60-125%2

As this plan proposes other different communication channels direct mail will be one of them. It is effective in business to business communication because it allows a business to create awareness about its products and services. Awareness is related to the generation of sales as well as creating a sense of brand loyalty.

Objective 1. Send 1000 direct mail to managers/ owners of the local businesses

(5-50 employees) who can be as potential clients by the end of December 2014

2. Generate from __ to __ sales leads by December 2014 According to Canada Post's data direct mail response rate for customer acquisition is 1,20% 3, when for existing customer this rate is 3,4%.4

2 http://www.lifehack.org/articles/work/the-importance-of-direct-mail-to-your-companys-marketing.html 3 Canada Post: "Media Response Rates" PowerPoint. Slide #25 4 http://www.marketingcharts.com/wp/traditional/direct-mail-tops-email-for-response-rates-costs-per-lead-similar-22395/

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Eco-Coffee Corporation IMC

As was mentioned before the number of potential clients can be decreased up to 1000. The length of the campaign is 8 months, thus, this is 125 letters per month. This plan recommends to use own capacity for this task.

However, if Eco-Coffee Corp. decides to use outsourcing there are 15 direct mail companies within 20 kilometers-area in Kitchener.5 They are experts in this field and can help to manage direct mail campaign in the most effective way.

Also Canada Post provides Addressed Admail service which is a proven and effective direct marketing medium that offers customers the ability to personalize their mailing and target their promotional messages to specific consumers or prospects. More information is in Appendix C.

5 http://www.canadapost.ca/web/business/find-a-partner.page? 18

Eco-Coffee Corporation IMC

Cost 6 Envelopes White #10, 4-1/8" x 9-1/2"

+Shipping +Tax

1000 pieces $ 34,9

Envelopes White Window #10, 4-1/8" x 9-1/2"

+Shipping +Tax

1000 pieces $ 50,58

Postage stamps 7 1stamp $ 0,85 Variants Price Cost of 1000 mails

1 Envelopes White + stamp $ 0,88 $ 884,90 2 Envelopes White Window +

stamp $ 0,93 $ 930,58

If the company decided to do at least 500 direct mails at a time, in a standard #10 envelope the postage would be $220 and the cost for processing would be $125.

For the recycled envelopes Eco-Coffee Corp. can go to this website which offer many different options http://www.actionenvelope.com/ae/control/recycledEnvelopes. The letter should be addressed to a particular person. It will create a personal connection and the message will not be considered as usual advertisement. Include the information about:

• Promotional offer (page 23) • Information about press release (Africana Traders)

Using recycled paper for a letter as Eco-Coffee Corp. uses for coffee packaging will represent company’s uniqueness and environmental consciences. In order to create a high quality letter with attractive design the plan suggests to hire a graphic designer. For this purpose Eco-Coffee Corp. could consider recent graduates looking for portfolio pieces. An example of the letter is shown below.

6 http://www.staples.ca/ 7 http://www.canadapost.ca/cpo/mc/personal/productsservices/send/postagestamps.jsf

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Eco-Coffee Corporation IMC

…because fresher tastes better

DEAR MS. SMITH

Eco-Coffee Corporation is a local, full-service coffee roaster, delighting in providing solutions that meet any individual, business, or office coffee need. We have been developing our passion for an excellent cup of coffee over the last ten years. We specialize in roasting premium grade, 100% Arabica origins, and have been Fair Trade and Organic certified for nine years. In addition, we are proud to have pioneered the supply of Rainforest Alliance Certified coffee in the region.

What you can get from us?

• Only the finest green coffee beans from reputable and certified suppliers • The freshes roasted coffee, thus guaranteeing exquisite taste! • All kinds of coffee suplements (coffee machines, milk and cream, sweeteners • Exhelent and quick servise

Contact us today and try the best coffee which you deserve!

Sincerely, Edward Denyer, Coffee Enthusiast

300 Mill St. Unit 1 Kitchener, ON N2M 5G8 Web: eco-coffee.ca Email: edenyer@eco-coffee.ca Phone: 519-743-7548

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Eco-Coffee Corporation IMC

CREATIVE STRATEGY Appeal Eco-Coffee Corp.’ major competitive advantage is the quality of the product and level of service it offers its customers. Rational appeals that educate the potential customer about these attributes are necessary. This will be the main focus for the creative. Also, Eco-Coffee Corp. is a local business that has its unique position and sense of responsibility towards the community and environment. This community focus can be used for feel-good stories that add a more human element to the perception of their business, particularly in the Waterloo Region.

Tone The tone for Eco-Coffee Corp’s advertising pieces is about best quality and service. Appealing colours, clean lines, and clean formatting will all be paramount to the success of the campaign pieces. SALES CALLS

Objective

1. Generate __ warm leads within eight months

Regarding to sales calls this could be dome either by current employees or by new hired part-time sales person. As was identified in the target market analysis section the number of potential clients can be decreased to 1000 companies. Campaign will run eight months, thus, its 125 companies per month.

One week after sending direct mails to targeted companies, a sales person should give them a call in order to remind about Eco-Coffee services and clarify if they are interested to have more details.

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Eco-Coffee Corporation IMC

The reason of using sales calls is that this tactic can increase a direct mail results. According to a Target Marketing survey the telephone’s response rate is 12.95%8.

Regarding standard number of calls per hour experts are giving different numbers9 10, for our purposes it will be 10 calls/hour. Number of companies is 1000. Part-time position indicates 4 hours per day. According to Salary Wizard Canada a minimum wage for Call Center Sales Coach job is $14 per hour.11

According to responses rates mentioned above the number of leads per month should be from __ to __ per month.

Consequently the cost of sales calls is:

Cost of sales calls Number of months for the campaign

8 months

Number of companies per month

1000 campaigns/8 months 125 companies/month

Number of calls per day 4 hours x 10 calls 40 calls/ day Number of days per month 125 companies per month /

40 calls per day 3,125 days

Number of hours per month 3,125 days x 4 hours per day 12,5 hours/month Total number of hours 12,5 hours per month x 8

months 100 hours

Total cost (wage for part-time employee)

100 hours x $14 $1400

8http://www.marketingcharts.com/wp/traditional/direct-mail-tops-email-for-response-rates-costs-per-lead-similar-22395/ 9 http://susancorcoran.blogspot.ca/2010/10/cold-calling-how-many-calls-should-you.html 10 http://www.marketingprofs.com/ea/qst_question.asp?qstid=8527 11 http://swz.salary.com/SalaryWizard/Call-Center-Sales-Coach-Hourly-Salary-Details-Ontario-CA.aspx

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Current Customers Current customers are an active public; they are aware of Eco-Coffee Corp. and its products and services. Due to high competition in the market, they are also aware of other companies which provide coffee.

Through the personal visits, promotion, e-mails and media releases Eco-Coffee Corp. should communicate the message about their best fresh roasted coffee in the region. Also it should educate customers about company’s environmental awareness. The details should persuade that the client is invaluable important for the Eco-Coffee Corp and show them potential benefits which they can receive from the Eco-Cafe. The creation of the online content is detailed further in the Online Strategy on page 24.

PROMOTION

Objectives 1. To deliver a promotional message to 1000 business in the Waterloo

Region via direct mail, sales calls and emails 3. To generate __ new customers with a discount offer by the end of

December 2014 2. To encourage current clients for a referral

Eco-Coffee Corp. can contact their current clients through personal visits and e-mails proposing them free coffee supply for a week or discounts if they can bring a new client to Eco-Coffee.

Existing customers can: refer other businesses to Eco-Coffee Corp., or/and increase their current contract order. A "successful" referral is one where the referred business signs a contract of three months or longer.

The chart below details promotional efforts designed at achieving specific goals.

Goal Promotional offer Delivery Potential customers

To encourage new business in the Waterloo Region

10% off first 3 months of services

Direct mail Seles calls

Current Customers

To encourage referrals

A week of free coffee supply for each successful referral

Personal visits E-mail

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ONLINE STARTEGY In order to generate awareness, Eco-Coffee Corp. should create a stronger online and social media presence. Online presence is a key: 72% of product research for a future business purchase begins on Google. 12 The website of Eco-Coffee Corp. and their activity at Social networks must be improved and be appealing in order to establish its credibility and attract more business. Objective

1. To increase awareness about Eco-Coffee Corp. and its services among the target public

Website According to a survey in 2010 the source of information which is the most trustworthy 68% of respondents trusted the internet most.13

The website should help educate current and potential customers on Eco-Coffee's products and services allowing customers to educate themselves on the benefits of Eco-Coffee’s products and services, creating warm leads for the sales team to follow up on. The website needs to provide everything buyers want to know in a short and concise manner.

Having an appealing website is crucial. When it comes to building traffic and keeping visitors on a page, load time plays a primary role. The faster a website loads, the faster traffic will grow. Faster load times also mean lower bounce rates. If it takes more than a few seconds for a page to load, visitors bounce off your site and move on. Also a site should function properly and have a design that looks appealing.14

12 The State of Demand Generation, 2013. p. 3 http://www2.pardot.com/l/1/2013-09-26/2tjcfk See Appendix E for complete material. 13 Canadian Marketing Association: "Marketing Facts: Statistics and Trends for Marketing in Canada" (2012). p. 98. 14 http://www.instantshift.com/2013/09/02/importance-of-effective-website-design-infographic/

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Additional data is in Appendix F

Recommendations 1. Eco-Coffee does not provide free access to price list on its website. Create a

separate page for prices 2. Logo does not match with original brand’s logo 3. Slogan should be clear identified and placed on the top of every page 4. Some sections are too busy, for example http://www.eco-coffee.ca/our-

coffee/ There could be more interactive menu with pictures of different sorts of coffee; pictures of coffee in original packaging; or it could be divided by countries of origin where customers can choose country and then it will show them types of coffee. Describe how you roast coffee every day, why it is unique and has high quality; why you are passion about your coffee; make a point about regular travels to Colombia and bringing something new when no one else does

5. Page http://www.eco-coffee.ca/company/ - pictures of the company’s owner, process of coffee production should be added. Write a history of the company and how it is growing. Make a focus on quick service. Include testimonials

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6. Name of the page “Company” change to “Services” for example, because it could be perceived as a history of the company

7. Page “Contact Us” should be moved to the end 8. Name of the page “Products” is recommended to change to “Other

Products”. Add more pictures, slides. Create a separate page for coffee-machines and brewers

9. Page “Coffee Pricing-Waterloo Coffee” does not work. It should be fixed or deleted

10. Explain benefits for membership 11. Uploaded pictures should be bigger in the size

Photos High-quality, high-resolution15, new photos of Eco-Coffee's products would improve the appeal and effectiveness of marketing efforts. Ideal photos:

• Include real people, displaying a wide variety of ethnic backgrounds • Represent Eco-Coffee's customers • Includes retail, restaurants/cafes, manufacturing, etc.

Video Videos can be powerful tools for both B2C and B2B marketing. It is becoming increasingly vital for helping customers with purchase decisions. About 3/4 of online shoppers are influenced by online video–helping to drive them towards a purchase of a product or service, according to a new study by Animoto. Video online engages potential customers and sets a company apart from competition.

• 94% of consumers watched a video online and 64% watches product and service videos.16

For video production Eco-Coffee Corp. could use own available resources or contact local companies, and considering film schools and recent graduates. The cost for video creating varies. 17 Cost for 2-3 Minute Video Semi-Pro $200 - $750 Professional Cost $1,000 - $3,000 Premium $5,000 - $50,000

More about video advantages see Appendix G.

15 Minimum 150 dpi; 300 dpi recommended for large signage, posters, etc. 16 http://www.ironpaper.com/current/2014/03/online-video-affects-purchase-decisions/#.UznL1GJ5Ma0 17 http://www.hingemarketing.com/library/article/what-is-the-cost-of-video-production-for-the-web

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Search Engine Optimization (SEO) SEO is the process of affecting the visibility of a website or a web page in a search engine's "natural" or un-paid search results. In general, the earlier (or higher ranked on the search results page), and more frequently a site appears in the search results list, the more visitors it will receive from the search engine's users. SEO may target different kinds of search, including image search, local search, video search, academic search, news search and industry-specific vertical search engines.

As an Online marketing strategy, SEO considers how search engines work, what people search for, the actual search terms or keywords typed into search engines and which search engines are preferred by their targeted audience. Optimizing a website may involve editing its content, HTML and associated coding to both increase its relevance to specific keywords and to remove barriers to the indexing activities of search engines.18

The majority of web traffic is driven by the major commercial search engines - Google, Bing and Yahoo!. Although social media and other types of traffic can generate visits to the website, search engines are the primary method of navigation for most Internet users. This is true whether the site provides content, services, products, information, etc.

Canadian search engine market share is dominated by Google —owning a staggering 88% of the pie. This proportion represents an 11% year-over-year increase leaving Bing with 7% of the market and Yahoo! a lowly 4%.19

Keyword research is one of the most important, valuable, and high return activities in the search marketing field. Ranking for the "right" keywords can make or break the website.

Searching for information about offices coffee service would require the website to use some key words and phrases that people will type in their search.

18 http://en.wikipedia.org/wiki/Search_engine_optimization 19 http://blog.htc.ca/2013/01/22/top-5-bottom-line-benefits-of-seo-search-engine-optimization/

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For example: • Coffee • Local coffee • Fresh roasted coffee • Eco coffee • Office coffee

This will enhance the chance people will find Eco-Coffee online.

In order to generate successful keyword ideas and traffic estimates this plan is suggesting using Google AdWords Keyword Planner. This tool shows how a list of keywords might perform and the average number of times people searched for those terms. This helps to decide which keywords can help drive traffic to the website and increase awareness of the product.

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Keyword strategy is not only important to implement on-site, but should extend to other off-site platforms, which is why you should also be thinking about multi-channel optimization. Being consistent with keyword phrases within these platforms will not only help your branding efforts, but also train users to use specific phrases you're optimizing for.20

20 http://searchenginewatch.com/article/2259693/SEO-Basics-8-Essentials-When-Optimizing-Your-Site 29

Eco-Coffee Corporation IMC

LinkedIn A LinkedIn profile can help increase awareness in the B2B sphere, as businesses interested in working with Eco-Coffee Corp. may look them up beforehand. Connecting with current customers and compiling recommendations from them will increase awareness and credibility.

21

Engaging buyers on LinkedIn is primarily about sharing relevant content and participating in Discussions and Groups. B2B marketers should target industry- and role-specific LinkedIn Groups and make it a regular practice to share thought leadership and blog posts with these individuals. B2B sales reps should try to inject themselves into discussions or questions by adding value, not selling. Also, its bad form to use Discussion forums for promotion and, for that reason, LinkedIn added a Promotion tab to Group environments, which is widely considered a waste of time for B2B promotion. Twitter For B2B marketers Twitter is largely a volume play. Hashtags should always be used to target specific buyers with relevant messages about products and services. Generally, short and compelling insights or Tweets are most likely to get clicks. Twitter is essentially a fire hose of unstructured information, so mindshare is largely a function of volume.

Top Performers indicated that on average they tweet 12-15 times a day using the company twitter handle. Tweets could include recent product news, events, or

21http://web.marsdenassociates.com/perceptions-blog/bid/146450/11-Must-Read-Stats-on-B2B-Social-Media-Use

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relevant industry best practices. It’s generally a best practice not to blatantly promote services on Twitter. Use Twitter to keep the brand active and share thought leadership in the form of blog posts, videos, website links, or links to other social properties.

The following tips were selected as appropriate and effective tactics for Eco-Coffee Corp. to satisfy the objective of increasing Twitter “followers” to 500:

1. Engage with people interested in similar organizations or content: Consider following users who comment on, retweet or favourite Twitter posts in which you are interested. If someone has an interesting point or similar interest, and seems like a person who would support what you do, follow them and see if they follow you back.

2. Follow those who follow your followers: Find followers of your followers who do not currently follow you, and who seem to have interests or values that coincide with those of Our Place, and follow them to encourage a follow back. Tweepi, a Twitter management system, can aid in detecting the best Twitter contacts to maintain. Visit http://tweepi.com/ for more information.

3. Embrace hashtags: Hashtags act like file folders so that content becomes labelled and connected with other content labelled with the same hashtag. Use a hashtag like #celebratingour35th and encourage others to do the same when writing about your 35th anniversary, or when you have events connected to your 35th anniversary and you want to tweet what’s happening throughout the event. E-mail E-mail is still one of the most effective ways to reach top executives; 90% say they check their inboxes regularly.22 Returning to promotional campaign one of the tactics is using e-mails as a tool to deliver a message. Eco-Coffee should give the information about their promotional offer and clearly identify benefits for current client. The design of the email should be consistent with a direct mail piece. Considering direct mail campaign and sales calls the emails should be as a third communication channel. The objective is to send 125 e-mails each month to the same recipients which will be contacted in a particular month. The best time for delivery is after sales calls and the end of the month.

22http://socialmediatoday.com/tompick/1647801/101-vital-social-media-and-digital-marketing-statistics-rest-2013

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Online Advertising Advantages and benefits of the online ads:

• Online marketing costs are inexpensive in comparison with other mediums • Pay per click advertising is the most effective generating immediate traffic to

a website. Advantages of this form include only paying when a user interacts with an ad (clicks on it)

• Online marketing campaigns can be implemented much faster than traditional forms of advertising, reaching a targeted audience within a matter of days and hours.

• Online marketing provides a greater flexibility level whereby campaigns can be altered to test new markets and make changes more specific to a targeted market.

LinkedIn allows advertisers to select the option of only appearing in the browsers of the above-mentioned target market, and therefore Eco-Coffee Corp. will only be paying for the clicks of its primary consumers.

Specific Linked In targeting method allows choosing very specific audience.

In the example below there are Owners, VPs, CXOs Directors, and Managers located in the Kitchener area were selected. This ensures that ad will reach people who can make the decisions.

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People aged 35-54 are currently the most important demographic group to Eco-Coffee Corp. The statistics shows that this age group has become more active in social networks for the last 8 years.

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23 http://www.pewinternet.org/fact-sheets/social-networking-fact-sheet/ 33

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Pay per click marketing is an extremely powerful method of online advertising. With this advertising method, companies can begin to achieve high search engine rankings with text ads. The listing will be higher depending on the amount of money a company is willing to spend. What makes this a beneficial form of advertising is that there is no need to pay to have an ad displayed, but rather pay a set amount each time a user clicks on that ad.25

With cost-per-click the company can specify the maximum amount it is willing to pay for each click (for example, $3.00 per click). Then, it can set a daily budget to identify the most that it is willing to spend each day.

Minimum costs: • The minimum daily budget is $10/day. • The minimum cost-per-click bid is $2.00/click.

To get started, LinkedIn charge a one-time $5 fee that becomes an ad credit, which covers the initial clicks.26 A maximum budget of $10 per day will be featured on the LinkedIn until it has received enough click-through per day to use up that budget (approximately 5-10 clicks per site). The ads will run over 8-month period from May 2014 until December 2014. The maximum cost will be $2,400 for this campaign.

Source Length

Clicks per day

Cost per day Total cost

LinkedIn 8 months 1-10 $10 $2, 400

24 http://www.marketingprofs.com/charts/2011/5566/social-media-in-canada-likes-follows-sway-brand-perception 25 http://www.affiliateseeking.com/ashow/392.html 26 http://help.linkedin.com/app/answers/detail/a_id/7431/kw/price%20per%20click

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Online Recommendations

HootSuite27 In order to manage Social media effectively and save time the plan recommends using HootSuite dashboard. It is an essential tool for managing social networks by allowing teams to efficiently track conversations and measure campaign results.

It allows:

• Manage multiple social networks • Schedule messages and tweets • Track brand mentions • Analyze social media traffic

Through HootSuite it is very convenient to schedule and send Tweets; post updates, add images, monitor feeds, and more in Facebook; connect with clients, broadcast news, amplify recruitment efforts, and monitor industry conversations with HootSuite’s LinkedIn management. Also it allows posting directly to own Company Pages, Groups and Profiles.

Social plugins on the website Visitors on the website should be able to find the Facebook Page easily. The recommendation is to use Facebook’s Social Plugins, like the Like box plugin, to get more Facebook likes. QR code QR or Quick Response Code is computer generated two-dimensional barcode that can be read using smartphones and dedicated QR reading devices. It connects customers directly with websites, text, emails, contact information, pictures without having to type into an internet browser. QR code is scanned with a smartphone and it will connect a mobile browser directly with the intended online location.

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Some examples of using QR codes:

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QR codes are free. All that is needed is an online QR code generator and a website URL. QR codes give the opportunity to get people to act now and connect instantly, before they walk out the door.

1. QR codes boost traffic to a website28

The right way, is to place it in a convenient location where people can take the time to scan them, visit the site they are directed to, and take the intended action. When it comes to your website—the goal shouldn’t just be: drive more traffic, it should be: drive more traffic AND provide something valuable to customers (recipes, stories, offer). 2. QR codes get people to “like” and “follow” the business Provide a QR code that links directly to your Facebook and Twitter Pages.

28 http://blogs.constantcontact.com/product-blogs/social-media-marketing/11-reasons-you-should-be-using-qr-codes-at-your-place-of-business/

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3. QR codes help to get more online reviews from people who know your business

Loyal customers are loyal for a reason. They know your product and services, they’ve done business with you in the past, and they’re already receiving your newsletter, reading your blog, and following you on social media. So if you’re looking to boost your ratings online and get feedback from the people who know you best, they’re the people to target. A QR code allows to link directly to your business page on review sites like Yelp so you can ask customers to log on and share their thoughts.

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BUDGET Cost Direct Mail $884,9 Sales Calls $1400 LinkedIn Ads $2,400 Total $4684,9

BLOCKING CHART A blocking chart is an organized way of saying when you are going to use various media. In this example, each month is separated and the Monday of each week is listed as the number. However the media can be published any day of the week, the main idea is to be consistent. May June July Aug

week of 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 Direct Mail Sales Calls

E-mails LinkedIn Ads Media Release

Sep Oct Nov Dec

week of 1 8 15 22 29 6 13 20 27 3 10 17 24 1 8 15 22 29 Direct Mail Sales Calls

E-mails

LinkedIn Ads

Media Release

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