CH-1 Marketing Fundamentals – Marketing: The Core : Book Guide

Chapter 1 Marketing Fundamentals QUESTIONS AND ANSWERS TO END-OF CHAPTER MATERIAL adAlyze 1. Who is the target market? Answer: The target market is 18-34 years old men and women who like spicy Mexican food. 2. Is this advertising a good, a service, or an idea? Answer: Mucho Burrito combines goods and services. The good is the burrito itself and the services are those provided by the restaurant that makes the food for its customers. 3. What gets your attention in this ad? Answer: The illustrated fire-monster and the bright colours get attention in this ad. The ad's bold visuals and striking headline immediately capture attention, while its clever use of humor or emotion creates a memorable impact. The clear call-to-action and relatable message further enhance engagement. Hands-on…Apply Your Knowledge Marketing Mix Assignment Mucho Burrito runs its annual Ghost Pepper marketing program designed to create buzz around Mucho Burrito. Review the opening vignette on Mucho Burrito and then brainstorm on a new marketing mix for the Ghost Pepper burrito that includes content marketing, real-time marketing, social media marketing, mobile marketing and partnership marketing approaches. Outline the new marketing mix under the headings Product, Price, Place, and Promotion. Answer: This assignment gives students the opportunity to apply chapter material to a real-life example, using the chapter’s opening vignette as a foundation. There are no specific answers. Product: Create a Ghost Pepper burrito with customizable spice levels and unique ingredients. Price: Set a premium price with special combo deals and early-bird discounts. Place: Offer the burrito at all locations, via the mobile app, and at exclusive pop-up events. Promotion: Use engaging content marketing, real-time social media challenges, influencer partnerships, and mobile app alerts to drive awareness and excitement. Video Clip...Questions Review the Mucho Burrito 1st Annual Ghost Pepper Burrito Eating Contest video on CONNECT to see how Mucho Burrito uses this event to connect with consumers and to create buzz for its restaurants. Answer the following questions: - Mucho Burrito’s Ghost Pepper eating contest is an example of a marketing approach that is being used more often. What is the name of this approach? Answer: Experiential marketing Mucho Burrito’s Ghost Pepper eating contest is an example of experiential marketing. This approach engages consumers directly through memorable and interactive events, creating buzz and enhancing brand connection. - What metrics would you use to evaluate the success of the Ghost Pepper eating contest? Answer: Various metrics can be used to evaluate the success of this program. These should evaluate the actual event itself, any publicity that occurred due to the event, and the financial impact of the event on Mucho Burrito Specific metrics that may be used to evaluate the actual event are the number of participants and the numbers of people in the crowd. Publicity can be measured by looking at social media metrics in terms of social mentions, shares, views, and comments on sites such as Facebook, Twitter, YouTube, and Instagram. Wider publicity can be determined by measuring media coverage of the event that may have occurred through written articles in print or online, or through broadcast mentions on TV or radio programs. Financially, Mucho Burrito would look at the sales lift that occurred due to the event and calculate its return on marketing investment (ROMI) by looking at costs, revenues, and expenditures related to the event. Infographic ... data analysis Review the infographic that details information on Bell Let’s Talk day and research the results of the program from its fifth year, 2015 and onwards. Update the data using this information to create a new infographic. (Infographic tip: use Excel and Word to create charts and place them in a single PowerPoint slide to combine the visuals). Answer: Updated data for Bell Let’s Talk should be available on the Bell website at http://letstalk.bell.ca/en/ as well as within articles on newspaper websites such as The Globe and Mail, the National Post, and the Toronto Star. News releases from Bell are also a good source of information. To update the Bell Let’s Talk infographic, gather data from 2015 onwards on participation metrics, funds raised, and social media engagement. Create charts in Excel to illustrate these trends, then compile the visuals in a PowerPoint slide to showcase the updated impact and growth of the program. QUESTIONS AND ANSWERS TO ONLINE ACTIVITIES: APPLYING MARKETING CONCEPTS AND PERSPECTIVES 1. What consumer benefits are met by the following products or services? (a) Gatorade regular variety sports drinks, (b) smart fortwo electric drive cars, (c) iTunes music downloads. Answer: Consumers benefits met by these products or services include: a. Gatorade sports drinks – thirst quenching, rehydration, taste, and an athletic image b. smart fortwo electric drive cars – good for the environment, self satisfaction in helping the environment, ease of parking, and money savings on gasoline. c. iTunes music downloads – convenience, easy access, and selection 2. For the products identified in question #1, generally describe each product’s target market. Answer: The target markets include the following: a. Gatorade regular variety sports drinks – Active children and young adults looking for thirst quenching drink that rehydrates and tastes good. (http://www.gatorade.ca/) b. The smart fortwo electric drive car – Singles or couples with no children with an urban life style that involves living and working in the city. (http://www.thesmart.ca/) c. iTunes music downloads – Tech-savvy children and young adults who own an iPod and are looking for the latest selection in downloadable music. (http://www.apple.com/itunes/) 3. Take one of the products in question #1 and describe the elements of the marketing mix used to market the product or service. Answer: The following items can be included in the marketing mix for these products: a. Gatorade regular variety sports drinks Product - comes in a wide assortment of flavours such as LEMON-LIME, COOL BLUE, FRUIT PUNCH, and ORANGE. Price - varies and starts at about $2.00 Place - sold at food chains, mass merchandisers, drug stores, convenience stores, online, and in vending machines Promotion - TV ads, online ads, sponsorships of athletes/sporting teams/leagues, contests, and websites b. smart fortwo electric drive car Product ¬- an environmentally friendly electric car that has zero emissions, a 10 year battery, runs 135 km/charge, has a top speed of 100 km/hr, and takes 8 hours to charge. Price - retail price is yet to be determined. The electricity cost is $1.98 /charge. Place - after full public launch the cars will be sold and leased at smart dealerships across the country. Promotion - event marketing at auto shows, press coverage in newspapers and TV news programming, contests, and websites. Some online advertising expected for the full public launch. c. iTunes music downloads Product - free software downloads and a wide selection of music, movies, TV shows, audio books, and games. Price - varies from free downloads, to 99 cents per song, and higher prices for other items. Place - online. Promotion - e-newsletters, TV ads, websites, contests. 4. Think of some ideas your university or college could implement that demonstrate the societal marketing concept and partnership marketing. Answer: Some ideas are as follows: 1. Fundraiser for a children’s charity 2. Policy on greening the campus including items such as recycling, energy conservation, and printing policies 3. Partner with a coffee shop on campus so students receive loyalty points and discounts when bringing their own mugs 5. What companies have used experiential marketing on campus to encourage student interest and involvement? Answer: Some ideas are as follows: • Beer companies such as Molson at campus pubs • Gaming companies such as Microsoft with XBOX • Radio stations such as The Edge with live broadcasts QUESTIONS AND ANSWERS TO ONLINE ACTIVITIES: DISCUSSION FORUM Review the opening vignette on Mucho Burrito and discuss these questions with your peers: 1. What marketing elements are central to the success of Mucho Burrito? Answer: Marketing Elements for Mucho Burrito: Brand differentiation with authentic Mexican flavors, high-quality ingredients, customizable menu options, strong digital presence, and effective loyalty programs. 2. How might Mucho Burrito use the societal marketing concept in the future to market these products? Answer: Societal Marketing Concept: Mucho Burrito could emphasize sustainable sourcing, eco-friendly packaging, and community engagement, aligning their marketing with values of social responsibility and environmental stewardship. 3. Brainstorm on some experiential marketing ideas that Mucho Burrito could use. Answer: Experiential Marketing Ideas: Host burrito-making workshops, create interactive food trucks for events, offer live cooking demonstrations, and organize “build-your-own-burrito” pop-up events in high-traffic areas. 4. If Mucho Burrito were to change its focus and market to people between the ages of 50-65, what changes should they make to their marketing mix? Answer: Targeting Ages 50-65: Adjust the menu to include healthier options and smaller portions, emphasize convenience with senior discounts or delivery services, use nostalgic marketing themes, and focus on comfort and quality in advertising. Note: These discussions are meant to generate class discussion and a lively debate of issues raised, as well as a general review of the opening case or concepts discussed within the chapter. There are no correct or incorrect answers. QUESTIONS AND ANSWERS TO ONLINE ACTIVITIES: INTERNET EXERCISE Gatorade’s G2 product contains the same amount of electrolytes as its regular Gatorade product but with only 20 calories per serving, almost 1/3 of the regular product. Go to the Gatorade website in Canada (www.garorade.ca) and by reviewing information on the website, determine the following to the best of your ability: 1. Who is the market for Gatorade G2? Answer: A market consists of the people willing and able to purchase a product. The markets for Gatorade G2 are parents of active teenagers, and young adults who are active and participate in sporting activities. 2. Who is the target market for Gatorade G2? Answer: The target market for Gatorade G2 includes the teenagers who influence their parents. The target market for this product includes both the teenagers and the parents. 3. By looking at information on the Gatorade website, identify the elements of the marketing mix for the G2 product. Answer: The marketing mix is as follows: Product - a low calorie sports drink of 20 calories per 250 ml serving, that comes in a variety of flavours – fruit punch, orange, grape, and blueberry – pomegranate. It rehydrates by replenishing potassium and chloride minerals that are lost through sweat. Price - varies and starts at about $2.00. Place - sold at food chains, mass merchandisers, drug stores, convenience stores, online, and in vending machines. Promotion - TV ads, online ads, sponsorships of athletes / sporting teams / leagues, contests, and websites. BRING IT TO LIFE: VIDEO SYNOPSIS & TEACHING SUGGESTIONS MUCHO BURRITO 1ST ANNUAL GHOST PEPPER BURRITO EATING CONTEST Synopsis (This video case is also included in the text book as the opening vignette for chapter 1) Mucho Burrito, fresh Mexican grill is successful Canadian fast-casual Mexican restaurant with higher `quality foods than your regular Mexican fast-food outlet. Items are made-to-order with fresh, healthy ingredients and customers can eat within the restaurant or purchase the food as “take-out.” This company uses a variety of marketing techniques to reach out to consumers. This written case reviews the marketing mix that it Mucho Burrito uses. The video brings it to life with a fun clip of the Mucho Burrito Ghost Pepper eating contest that is discussed in the case. Teaching Suggestions This video case can be used as a lively opener to your course, making the topic of marketing real, current, interesting, and relevant to your students. Its topic, Mucho Burrito will be familiar to many students and can prompt interesting discussions. If you have an Internet-capable classroom you may wish to show the Mucho Burrito website at http://muchoburrito.com/ as well as its Facebook page and Twitter account at https://www.facebook.com/muchoburrito and https://twitter.com/MuchoBurritoHQ. You can end or start this in-class activity by focusing students on the adAlyze feature at the end of chapter 1. This shows the Ghost Pepper in-store poster and asks questions relevant to the chapter. BRING IT TO LIFE: VIDEO CASE – PRINTOUT MUCHO BURRITO 1ST ANNUAL GHOST PEPPER BURRITO EATING CONTEST Mucho Burrito, created in 2006 by Canadian entrepreneurs Mark Rechichi, Alex Rechichi, and Sean Black, was a fast-food opportunity that capitalized on healthier and tastier food trends. “Mexican food was underdeveloped at that time and what most Canadians experienced as ‘Mexican’ was not delicious, authentic Mexican cuisine,” states Norm Pickering, director of marketing, North America, for Mucho Burrito. He explains that in 2006, other than Taco Bell and a few independent restaurants, Canadian consumers had little choice when it came to Mexican food. Mucho Burrito gave Canadians a new alternative: reasonably priced, good-quality Mexican food in a fast-casual restaurant. Its mission from inception was to provide customers with unmatched Mexican flavour with the freshest and best-quality burritos—made right in front of their eyes. By 2015, Mucho Burrito had grown to over 115 franchise locations in Canada with additional locations in the U.S. The fast-food market is fiercely competitive, and today, Mexican food is one of the hottest food trends in Canada. Taco Bell is a mainstay with its inexpensive, lower-quality “Tex-Mex” food, but there are new U.S. competitors in Canada, such as Chipotle Mexican Grill and Qboda, focusing on higher-quality, fast-casual Mexican fare. Various popular, local, independent establishments also exist, such as Big Fat Burrito, Burrito Boyz, and Fat Bastards. Quick-service restaurants also litter the market with short-term promotional Mexican-type products such as McDonald’s Fiesta Signature McWrap. Mucho Burrito manages the marketing mix (product, price, place, and promotion) for its restaurants to ensure it meets customer expectations and remains a leader in the Mexican fast-food category. Let’s look at its marketing mix in more detail: Product Mucho Burrito, fresh Mexican grill, is a fast-casual Mexican restaurant with higher-quality foods than your regular Mexican fast-food outlet. Items are made-to-order with fresh, healthy ingredients. Its name reflects its signature item, a large gourmet burrito with “Mucho food and Mucho quality.” Fast-casual dining is a step above regular quick-service fast food in that it provides quickly made-to-order food with fresh ingredients in an atmosphere that encourages customers to pull up a chair and enjoy. At Mucho Burrito, upbeat Mexican music plays in the background while green, brown, and orange tones reflect its Mexican fare. Many Mucho Burrito restaurants, targeted to the 19-to-34 age group, are also licensed to serve alcoholic beverages. Mucho Burrito offers fresh, high-quality hand-rolled burritos, hard and soft tacos, quesadillas, salad bowls, and soups with carefully seasoned beef, pork, chicken, fish, or shrimp. Barbacoa (shredded beef) and carnitas (shredded pork) are slowly cooked for about eight hours, and Mexican salsa and guacamole are freshly made each day. Consumers choose menu items, contents, and toppings at the front food counter and watch while their meal is assembled on rectangular metal trays lined with craft paper with logos. The meal is then purchased and eaten within the restaurant or as take-out food. Periodically, Mucho Burrito introduces short-term, limited-time promotional products to reward loyal customers and to increase awareness and trial with new fans. All promotions are Mexican themed to reinforce Mucho Burrito’s authentic Mexican positioning. Its recent “La Taqueria Trio” promotion, for example, introduced a trio of soft tortillas featuring mango steak, fiery chicken chorizo, or guacamole pineapple carnitas. Price In line with its higher-quality positioning and good quality food, a meal at Mucho Burrito is priced at approximately $8 to $13 per meal (including taxes), a few dollars higher than the $7 to $8 price point at quick-service restaurants such as McDonald’s or Wendy’s, and slightly lower than the Mexican food sold at Chipotle. Place More than 115 Mucho Burrito franchises are located across Canada, with additional locations in the U.S. market. Mucho Burrito offers stand-alone restaurants as well as food-court locations. Restaurants are situated in outdoor neighbourhood malls, shopping centres, universities, airports, and downtown city centres. Locations are selected on the basis of anticipated retail traffic, the existence of residential and business establishments, and the presence of other eateries. Promotion “Promotional support is essential to driving business for Mucho Burrito with new and loyal users,” explains Mike Welling, partner at Mucho Burrito’s brand communications agency, dougserge+partners. “It establishes a distinctive voice for Mucho Burrito so it stands out in the fiercely competitive fast-food market. After years of consistently weaving Mexican authenticity through humour and heavily accented Mexican-English into radio and billboard campaigns, people now associate Mucho Burrito with good quality Mexican food and fun.” The first campaign from dougserge+partners used radio and billboard ads to establish Mucho Burrito as a fun, Mexican-style fast-casual restaurant. Radio ads used heavily accented Mexican-English to introduce a mythical Mexican character, Johnny Mucho, to highlight the Mexican aspect of the food. Eye-catching billboards, (reminiscent of hand-painted signs seen in Mexico) used artistic graphics, images of appetizing burritos, over-sized logos, and headlines that could not be ignored, such as “Ponchos don’t have buttons for a reason!” to reach consumers. This distinctive Mexican tone still permeates Mucho Burrito campaigns today. On an annual basis, Mucho Burrito supports its business with quarterly promotions and offers. The emphasis is on the spring, back-to-school, and fall seasons. Many promotions tie into popular Mexican holidays such as Cinco de Mayo, when Mucho Burrito offers $5 burritos on May 5, or the Ghost Pepper Burrito, (made with the second-hottest pepper in the world, the ghost pepper) that is featured around the November Mexican holiday, Day of the Dead. The first “Ghost Pepper” promotion used window posters that showed a fire-monster engulfing a burrito in a stylized illustrative approach very familiar to Mexicans, while local radio ads challenged the “manhood of the gringos” by focusing on the product’s extreme heat and limited-time offer. The poster, created by I LOVE DUST in the U.K., with art direction from Raj Gupta at dougserge+partners, was very popular with Mucho Burrito customers. The “Ghost Pepper” promotion also used Facebook, Twitter, and YouTube to create buzz. A YouTube video, created by a film student, showed Mexican gangsters eating Ghost Pepper Burritos, while social media contests asked people to post their most creative photos of a person eating a Ghost Pepper¬ Burrito. In addition, Mucho Burrito launched its first annual Ghost Pepper Burrito eating contest, giving $2,500 to the person who ate the most Ghost Pepper Burritos in eight minutes. “In its first year, the ‘Ghost Pepper’ promotion was a huge success. It boosted traffic by 20 percent and increased same store sales by 15 percent,” states Welling. On an ongoing basis, Mucho Burrito uses social media and mobile marketing programs to reach consumers. Social media includes ongoing updates on Facebook and Twitter, with its most recent programs including a blogger outreach through its Mucho Ambassador Club where 56 brand advocates, profiled on the Mucho Burrito website, advise on new products and help spread the word on blogs and social networks. Mucho Burrito’s mobile marketing approaches include text message alerts, e-mail reminders, and smartphone apps to engage consumers. On occasion, Mucho Burrito places banner ads on third-party mobile apps such as the UFC app (Ultimate Fighting Championship) and the Urban Spoon local restaurant review app. New Mucho Burrito restaurant openings always receive special attention with low introductory prices and offers. Mucho Burrito’s website is an important part of its marketing mix. Designed by the team at dougserge+partners, it highlights the brand’s authentic Mexican positioning and provides information on menu choices, nutritional content, and restaurant locations. It allows loyal consumers to register for e-mail updates, log in for gift card balances, and link to Facebook and Twitter pages. Investors can also turn to the Mucho Burrito website for information on franchise opportunities. “Mucho Burrito is a super example of a Canadian marketing success story,” explains Welling. “Starting with its brand name, it uses its entire marketing mix to consistently deliver on its promise of good-quality, Mexican-inspired food. Its name, logo, restaurant design, products, and communication tools all shout that Mucho Burrito is a fun place to eat good-quality Mexican food at affordable prices.” You can see more about Mucho Burrito by navigating to its website at www.muchoburrito.com. Questions 1. Is Mucho Burrito a good, a service, or an idea? Answer: Mucho Burrito is a good—specifically a fast-casual food product offering fresh, high-quality Mexican cuisine. 2. Who is the target market for Mucho Burrito? Answer: Target Market includes young professionals, students, and families aged 19-34 who seek fresh, customizable Mexican food in a vibrant, fast-casual setting. 3. What marketing tools does Mucho Burrito use to create relationships with its consumers? Answer: Marketing Tools: Mucho Burrito uses social media updates, mobile marketing, loyalty programs, interactive promotions, and engaging content like video campaigns and contests to build consumer relationships. BRING IT TO LIFE: VIDEO CASE WORKSHEET MUCHO BURRITO 1ST ANNUAL GHOST PEPPER BURRITO EATING CONTEST Name: Section: The video will review the successful marketing approaches used by Mucho Burrito fresh Mexican grill. 1. Is Mucho Burrito a good, a service, or an idea? Answer: Mucho Burrito is a good—specifically a fast-casual food offering. 2. Who is the target market for Mucho Burrito? Answer: Target Market includes young professionals, families, and food enthusiasts seeking customizable, fresh Mexican cuisine. 3. What marketing tools does Mucho Burrito use to create relationships with its consumers? Answer: Marketing Tools include loyalty programs, engaging social media content, interactive promotions, and personalized email marketing. BRING IT TO LIFE: VIDEO CASE – ANSWERS TO QUESTIONS MUCHO BURRITO 1ST ANNUAL GHOST PEPPER BURRITO EATING CONTEST 1. Is Mucho Burrito a good, a service, or an idea? Answer: The actual food is a good. The restaurant that makes the food and provides a place to eat is a service. 2. Who is the target market for Mucho Burrito? Answer: 19 - 34 year old men and women. 3. What marketing tools does Mucho Burrito use to create relationships with its consumers? Answer: It creates events and uses social media, mobile apps, email blasts, and uses its website to create relationships with consumers. BRING IT TO LIFE: VIDEO SYNOPSIS & TEACHING SUGGESTIONS RAISING THE ROOF - THE STREET HOUSE Synopsis (This video case is also included in the text book as a NewsFlash for chapter 1) Raising the Roof is a small non-profit organization that works with partners across Canada at the grassroots level to reduce homelessness. Its purpose is to provide long-term solutions to homelessness so that individuals have access to safe and stable homes as well as the support needed to thrive. It uses the advertising agency Leo Burnett to help increase awareness about homelessness and to dispel the myths that these people are lazy, trouble-makers, or drug addicts. The video and write-up focus on The Street House experiential marketing campaign which very creatively put a focus of homelessness. Teaching Suggestions This video case can be used as a lively opener to the topic of new marketing developments, making the topic of experiential marketing real, current, interesting, and relevant to your students. It may be useful to have a discussion on creativity to point out that creative marketing practices help make products and campaigns memorable and break through the clutter of competing messages. BRING IT TO LIFE: VIDEO CASE – PRINTOUT RAISING THE ROOF - THE STREET HOUSE Raising the Roof is a non-profit organization that works with partners at the grassroots level to reduce homelessness in Canada. It encourages businesses, community groups, schools, and individuals to get involved to help reduce homelessness and looks for long-term solutions so that all people can have access to safe and stable homes and the support needed to thrive. Since its beginnings in 1996, Raising the Roof has channeled over $3.5 million at the community level to help reduce homelessness, and starting in 2010, it has worked with advertising agency Leo Burnett to raise homelessness awareness. Leo Burnett provides its services pro bono (free) to Raising the Roof and works to secure support from other companies so that media time, media space, and other services are provided at no cost. In 2012, Leo Burnett created an experiential marketing campaign, “The Street House,” in the form of an installation that made emotional connections with people in the city and caught the eye of the media—elements that helped raise awareness about the realities of homeless people. The intention was to dispel the myth that homeless people are lazy, troublemakers, or drug addicts who choose to live this way. There are over 200,000 homeless people in Canada. The campaign included the installation itself, a provocative cardboard house, as well as an outreach to the media through press releases and personal direct media contacts to provide facts about homelessness in Canada and an invitation to visit the Street House. The Street House was a mock-house that was made entirely of cardboard, a point that emphasized the fragility of life on the streets, and the fact the homeless people often use pieces of cardboard to protect themselves from the elements. The house was located on a highly trafficked street, lodged in a small alleyway, and open to the public to tour for two days. The installation coincided with the Doors Open festival that annually occurs in Ontario, Newfoundland, and Alberta, with a focus on Toronto that weekend. Doors Open is a heritage event that invites people to visit, tour, and discover beautiful heritage buildings, many of which are not generally open to the public. These grand homes and buildings were in stark contrast to the cardboard Street House, which invited people to come in and tour a living space that lacked many of life’s basic necessities. It was a tour of homelessness. In appearance, the facade of the Street House seemed to show a small bungalow, complete with a roof and chimney. However, upon entering the house, visitors realized that it was made entirely of cardboard and that the building actually had no roof or chimney. Instead, the house was a series of unsettling open rooms with startling information about living life on the streets. The rooms told narratives on large cardboard walls about the realities of homelessness that included facts and questions that made people stop and think. The narrative pointed to why people may end up homeless, the difficulties that they face on a daily basis, and the harsh realities of living life on the streets. Some rooms asked questions about how homeless people can get money for dinner or how they can find a place to sleep. Other rooms put people in the shoes of the homeless by discovering how people their age face homelessness. The final room changed the tone of the experience by relaying positive personal stories about individuals who were once homeless and turned their lives around. It also explained the role and purpose of the Raising the Roof organization and how it helps homelessness. Finally, people were encouraged to help reduce homelessness by donating to the cause, volunteering their time, or spreading the word by talking to others or through Twitter, Instagram, and other social media networks using the hashtag #StreetHse. People could also show empathy by signing a cardboard wall of support. The Street House installation was a resounding success. Over a two-day period, 2,200 people visited the house and over 100,000 people acted to help the homelessness issue. Many more were exposed to this issue through social media postings as well as through conventional media channels that covered the installation in print and broadcast media. Many people were moved by the experience and commented that the house had touched their lives. Questions 1. What new and evolving marketing practices are being used in the Street House campaign? Answer: New and Evolving Practices: The Street House campaign utilized experiential marketing with an immersive, emotional installation and leveraged social media engagement through hashtags and online sharing to broaden its impact. 2. What role did partnership marketing play in this marketing campaign? Answer: Partnership Marketing: Raising the Roof partnered with Leo Burnett for pro bono advertising services and media support, and aligned with the Doors Open festival to attract visitors, amplifying the campaign’s reach and effectiveness. BRING IT TO LIFE: VIDEO CASE WORKSHEET RAISING THE ROOF - THE STREET HOUSE Name: Section: The video will review Raising the Roof’s The Street House experiential marketing campaign. Please answer these questions: 1. What new and evolving marketing practices are being used in the Street House campaign? Answer: New and Evolving Practices: The Street House campaign uses immersive experiences, interactive installations, and real-time social media engagement to connect with audiences. 2. What role did partnership marketing play in this marketing campaign? Answer: Partnership Marketing: It involved collaborations with local businesses and influencers to amplify reach, enhance credibility, and drive community involvement in the campaign. BRING IT TO LIFE: VIDEO CASE – ANSWERS TO QUESTIONS RAISING THE ROOF - THE STREET HOUSE 1. What new and evolving marketing practices are being used in the Street House campaign? Answer: The Street House uses experiential marketing and partnership marketing. 2. What role did partnership marketing play in this marketing campaign? Answer: In order for this campaign to run, Raising the Roof needed to partner with companies that could provide free services to bring this idea to life. This starts with the advertising agency Leo Burnett and includes the people who provided the materials to build the house as well as those who built it. BRING IT TO LIFE: NEWSFLASHES / FOCUS ON ETHICS SYNOPSIS AND DISCUSSION QUESTIONS Three interesting NewsFlashes / focus on ethics boxes are included in this chapter on Raising the Roof homelessness awareness, Salesforce Chatter, and Bell Let's Talk. Discussing these topics in class can bring the material to life for the students in an interesting, relevant, and timely fashion. They can be used as ice-breakers to launch into a relevant subject. Many of the topics are interesting to students and may be familiar. A. CARDBOARD HOUSE RAISES HOMELESSNESS AWARENESS Raising the Roof is a small non-profit organization that works with partners across Canada to provide long-term solutions to homelessness so that individuals have access to safe and stable homes as well as the required support. It uses the advertising agency Leo Burnett to help increase awareness about homelessness and to dispel myths that homeless people are lazy, trouble-makers, or drug addicts. Questions 1. What new and evolving marketing practices are being used in the Street House campaign? Answer: The Street House uses experiential marketing and partnership marketing. 2. What role did partnership marketing play in this marketing campaign? Answer: In order for this campaign to run, Raising the Roof needed to partner with companies that could provide free services to bring this idea to life. This starts with the advertising agency Leo Burnett and includes the people who provided the materials to build the house as well as those who built it. B. CHATTER TAKES “SOCIAL,” TO A NEW LEVEL Salesforce Chatter is a secure, customizable social intranet platform that companies purchase to enhance business communications within an organization. It is similar to Facebook in that it is based in the cloud and updates happen in real time. On Chatter, employees can collaborate by asking questions and posting comments, or uploading images, videos, and documents. Questions 1. What benefits do organizations accrue by using social media platforms such as Salesforce Chatter? Answer: Social media platforms for business speed up communications processes and more quickly allow people to provide input on projects, decisions, and issues. It also allows management to easily update the entire organization and creates a more inclusive culture. 2. What are the benefit employees recognize by using social media platforms such as Chatter for business purposes? Answer: Employees using social media platforms for business feel more involved in decision making and benefit from being able to post and obtain updates more quickly. C. MARKETING IDEAS: #BELLLETSTALK PUTS MENTAL HEALTH ON THE MAP Bell Let’s Talk day is a marketing campaign from Bell Canada designed to reduce the stigma of mental illness. On Bell Let’s Talk day, Bell contributes 5 cents to mental health for every text message and call sent on the Bell network, and also (regardless of carrier), for every tweet or retweet that uses #BellLetsTalk, and for every Facebook share of the Bell Let's Talk logo. Bell has committed over $67 million to mental health over the last four years. This campaign is positively received by most but a few criticize Bell for using mental health to gain publicity. Questions 1. What idea is being marketed by Bell Let’s Talk day? Answer: Bell Let’s Talk is marketing the idea that people with mental illness need to be accepted and supported by society and can be helped by healthcare professionals and associations. 2. What are the benefits of Bell Let’s Talk day to society? Answer: Bell Let’s Talk day benefits society by making mental illness an acceptable topic of conversation and an ailment that is not stigmatized by society. 3. How do you respond to the critics that claim Bell Let’s Talk day is a publicity stunt for Bell? Answer: While critics argue that Bell Let’s Talk day is a publicity stunt, it effectively raises significant funds and awareness for mental health. The campaign’s broad engagement and real impact on mental health support outweigh concerns about its promotional aspects. BRING IT TO LIFE: NEWSFLASH PRINTOUT AND WORKSHEET Name: Section: Cardboard House Raises Homelessness’ Awareness Raising the Roof is a non-profit organization that works with partners at the grassroots level to reduce homelessness in Canada. It encourages businesses, community groups, schools, and individuals to get involved to help reduce homelessness and looks for long-term solutions so that all people can have access to safe and stable homes and the support needed to thrive. Since its beginnings in 1996, Raising the Roof has channeled over $3.5 million at the community level to help reduce homelessness, and starting in 2010, it has worked with advertising agency Leo Burnett to raise homelessness awareness. Leo Burnett provides its services pro bono (free) to Raising the Roof and works to secure support from other companies so that media time, media space, and other services are provided at no cost. In 2012, Leo Burnett created an experiential marketing campaign, “The Street House,” in the form of an installation that made emotional connections with people in the city and caught the eye of the media—elements that helped raise awareness about the realities of homeless people. The intention was to dispel the myth that homeless people are lazy, troublemakers, or drug addicts who choose to live this way. There are over 200,000 homeless people in Canada. The campaign included the installation itself, a provocative cardboard house, as well as an outreach to the media through press releases and personal direct media contacts to provide facts about homelessness in Canada and an invitation to visit the Street House. The Street House was a mock-house that was made entirely of cardboard, a point that emphasized the fragility of life on the streets, and the fact the homeless people often use pieces of cardboard to protect themselves from the elements. The house was located on a highly trafficked street, lodged in a small alleyway, and open to the public to tour for two days. The installation coincided with the Doors Open festival that annually occurs in Ontario, Newfoundland, and Alberta, with a focus on Toronto that weekend. Doors Open is a heritage event that invites people to visit, tour, and discover beautiful heritage buildings, many of which are not generally open to the public. These grand homes and buildings were in stark contrast to the cardboard Street House, which invited people to come in and tour a living space that lacked many of life’s basic necessities. It was a tour of homelessness. In appearance, the facade of the Street House seemed to show a small bungalow, complete with a roof and chimney. However, upon entering the house, visitors realized that it was made entirely of cardboard and that the building actually had no roof or chimney. Instead, the house was a series of unsettling open rooms with startling information about living life on the streets. The rooms told narratives on large cardboard walls about the realities of homelessness that included facts and questions that made people stop and think. The narrative pointed to why people may end up homeless, the difficulties that they face on a daily basis, and the harsh realities of living life on the streets. Some rooms asked questions about how homeless people can get money for dinner or how they can find a place to sleep. Other rooms put people in the shoes of the homeless by discovering how people their age face homelessness. The final room changed the tone of the experience by relaying positive personal stories about individuals who were once homeless and turned their lives around. It also explained the role and purpose of the Raising the Roof organization and how it helps homelessness. Finally, people were encouraged to help reduce homelessness by donating to the cause, volunteering their time, or spreading the word by talking to others or through Twitter, Instagram, and other social media networks using the hashtag #StreetHse. People could also show empathy by signing a cardboard wall of support. The Street House installation was a resounding success. Over a two-day period, 2,200 people visited the house and over 100,000 people acted to help the homelessness issue. Many more were exposed to this issue through social media postings as well as through conventional media channels that covered the installation in print and broadcast media. Many people were moved by the experience and commented that the house had touched their lives. Questions 1. What new and evolving marketing practices are being used in the Street House campaign? Answer: New and Evolving Practices: The Street House campaign employed experiential marketing with an immersive, emotional installation and utilized social media for engagement, amplifying its reach through hashtags and online sharing. 2. What role did partnership marketing play in this marketing campaign? Answer: Partnership Marketing: Raising the Roof benefited from pro bono services by Leo Burnett and leveraged the Doors Open festival to draw large crowds, while media partnerships helped disseminate the campaign widely and cost-effectively. BRING IT TO LIFE: NEWSFLASH PRINTOUT AND WORKSHEET Name: Section: Chatter Takes “Social,” to a New Level If you thought social just referred to consumers’ use of social networks as well as companies’ use of social media to reach consumers, think again! Salesforce has created Chatter, a secure, customizable social intranet platform that companies purchase to enhance business communications within an organization, often inviting suppliers to join for relevant updates. Similar to Facebook, Chatter is based in the cloud and updates happen in real time. On Chatter, employees can collaborate by asking questions and posting comments or uploading images, videos, and documents. On Chatter, people share information, brainstorm on ideas, follow topics and company experts, and receive real-time business updates in their newsfeed. In this way, collaboration is easier, issues are resolved quickly, and important information is shared easily with others. Unlike Facebook, Chatter is completely secure, and access is restricted to people within the company. Chatter is not for posting personal information but instead for collaborating and communicating on business-related topics. In Canada and internationally, this social business platform is becoming widespread. Canadian companies such as the Duha Group (a large international manufacturer of paint chips) use Chatter to provide better service—customers are given access to their Chatter platform to get real-time updates on orders, while employees use it to communicate on business topics. G Adventures is another Canadian organization (international adventure travel company) that uses Chatter. It uses a Chatter app to allow its in-field tour organizers to access company updates on mobile devices, whether this be new marketing materials, customer records, pending approvals, or asking and responding to questions, just to name a few uses. Internationally, Salesforce Chatter is used by clients such as Burberry, which uses Burberry Chat for internal communications. Burberry’s CEO and creative director post weekly video updates to the company, while employees use it to collaborate on business developments and to share and access information. Companies that use Salesforce Chatter find e-mail clutter is reduced, meetings are less necessary, and people can more easily access project updates. Now every morning, employees can turn to their Chatter newsfeed and scroll down to get important updates, rather than spend countless hours sifting through e-mails, many of which are distracting and irrelevant. Chatter makes collaboration more enjoyable, solves problems more effectively, and provides all employees with a voice that can be heard. To read more about Chatter, visit www.salesforce.com/chatter. Questions 1. What benefits do organizations accrue by using social media platforms such as Salesforce Chatter? Answer: Organizational Benefits: Using platforms like Salesforce Chatter reduces email clutter, minimizes the need for meetings, enhances real-time communication, and streamlines access to project updates and important information. 2. What are the benefit employees recognize by using social media platforms such as Chatter for business purposes? Answer: Employee Benefits: Employees experience improved collaboration, quicker problem resolution, easier access to relevant updates and documents, and a more engaging way to stay informed and involved in company activities. BRING IT TO LIFE: NEWSFLASH /FOCUS ON ETHICS PRINTOUT AND WORKSHEET Name: Section: Marketing Ideas: #BellLetsTalk Puts Mental Health on the Map Did you retweet the #BellLetsTalk hashtag on Twitter in January 2014, share its logo on Facebook, or send a text message on the Bell network on Bell Let’s Talk day? The odds are that maybe you did as #BellLetsTalk raised nearly $5.5 million for mental health on January 29, 2014, with a grand total of 109,451,718 tweets, texts, calls, and Facebook shares, making it the top trending Twitter topic in Canada and third worldwide. The tweets, texts, calls, and shares for Bell Let’s Talk day increased 14 percent over 2013 levels, with wide-ranging support from individuals and families, as well as business leaders, government officials, hospitals, educational institutions, the armed forces, sports teams, and athletes and entertainers that embraced this worthy cause. There were tweets ranging from Prime Minister Stephen Harper, to comedian Rick Mercer and astronaut Chris Hadfield, to athlete Milos Raonic and sports teams such as the Ottawa Senators, the Toronto Raptors, the Toronto Blue Jays, the Toronto Maple Leafs, and the Winnipeg Blue Bombers (just to mention a few), as well as from everyday people who lent their support to the cause. Bell Let’s Talk day is a five-year annual marketing campaign designed by Bell Canada to reduce the stigma of mental illness in our society through greater awareness, increased funding, research, treatments, and understanding of mental health. Rather than just donate funds, Bell uses its marketing clout and the power of celebrity spokespeople such as Olympic athlete Clara Hughes as a springboard to encourage others to spread the word and to ignite conversations to help change attitudes and behaviours toward mental health. On Bell Let’s Talk day, Bell contributes five cents to mental health organizations for every text message and call sent on the Bell network, and also (regardless of carrier) for every tweet or retweet that uses the #BellLetsTalk hashtag, and for every Facebook share of the Bell Let's Talk logo. As part of this initiative, Bell created the Bell Let’s Talk Community Fund, which provides $5,000 to $50,000 grants to grassroots, registered not-for-profit organizations, charities, hospitals, and social service agencies that apply and want to improve access to mental health in their communities. More than 150 local mental health organizations have already received funds. Since 2011 when the campaign first started, Bell Canada has committed $67 million toward mental health programs, starting with a $50 million initial announcement and the subsequent annual additions from its Bell Let’s Talk day. Already, $10 million has been donated to the Centre for Addiction and Mental Health Foundation (CAMH), $1 million to the Royal Ottawa Hospital for telepsychiatry, $1 million to Sunnybrook Hospital for research into adolescent mood and anxiety disorders, and more to many other organizations. Bell is a longtime supporter of mental health programs in Canada; 25 years ago, it became a founding partner of Kids Help Phone so that children in distress can call a phone number to speak to a trained counsellor. It most recently donated $2.5 million to help Kids Help Phone expand into online live chat services, web postings, mobile web, and mobile apps. Despite the outpouring of support for Bell and its Bell Let’s Talk program, a few people negatively criticize Bell for using mental health as a prop to market its brand. In general, the media positively covers the event but also notes that Bell benefits from the high levels of publicity that surround this event, pointing out that Bell has its name front and centre in the campaign with its hashtag and logo #BellLetsTalk. Others openly suggest that Bell should just have made a donation to mental health instead of profiting from what critics term a publicity stunt, missing the fact that Bell’s approach serves as a catalyst in bringing mental health to the forefront and that its name and leadership add credibility to the cause. At the end of the day, the data show that people support Bell Let’s Talk day in droves and are happy to lend their voice to Bell’s philanthropic effort, which is helping to break down the stigma of mental illness so that society can be a healthier and more welcoming place. Questions 1. What idea is being marketed by Bell Let’s Talk day? Answer: Idea Marketed: Bell Let’s Talk day markets mental health awareness, aiming to reduce stigma and promote conversation and funding for mental health initiatives. 2. What are the benefits of Bell Let’s Talk day to society? Answer: Benefits to Society: The day raises significant funds for mental health organizations, increases public awareness, and helps break down the stigma surrounding mental illness, leading to better support and understanding. 3. How do you respond to the critics that claim Bell Let’s Talk day is a publicity stunt for Bell? Answer: Response to Critics: While some view it as a publicity stunt, the campaign’s substantial funding, broad engagement, and increased mental health discourse demonstrate its genuine impact and value in advancing societal attitudes and support. BRING IT TO LIFE: IN-CLASS ACTIVITY INSTRUCTIONS – SMARTIES & AFTER EIGHT STRAWS Learning Objectives 1. To understand the process of marketing 2. To understand how the marketing mix needs to be coordinated with each element designed to appeal to its target market Description of In-Class Activity • Provide groups of students with a handout on the activity ensuring that a colour visual of Smarties and After Eight Straws is shown as either a handout, sample box, PowerPoint slide, or by linking to the Nestle website or Google Images. • Students are then given a new target market for either Smarties or After Eight Straws and asked to brainstorm on three new product ideas. They then select their best idea and develop a full marketing mix to appeal to their new target market. Finally, a spokesperson for each group informally explains the idea to the class. You may wish to add an element of fun by having students vote at the end on the product they consider to be (1) the most outrageous, and (2) the most likely to succeed! • Groups with Smarties’ visuals are asked to develop a new Smarties product to appeal to seniors over the age of 60. The groups with the After Eight images are asked to create a product to appeal to teenagers between the ages of 13-16 years. • This activity should only be conducted in groups. Estimated class time: 60-90 minutes. Preparation before Class • To prepare for this activity you will need to first determine whether you will be showing the visuals through an overhead, linking to Google Images, or showing an actual box in class. Showing the product on a screen and then the actual contents of the box in class provides the necessary detail for successful completion of the activity. • Bring large tearsheets or flip charts and markers for the students to use during the brainstorming sessions. In-Class Implementation • Relevant Chapter Content – Prior to conducting this in-class activity you will need to review the following chapter material with your students: ○ Discuss the term target market - the specific group of existing and potential consumers to whom a marketer targets its marketing efforts. ○ Define the marketing mix—product, price, place, and promotion: Product - all the attributes that make up a good, a service, or an idea, including product design, fea¬tures, colour, packaging, warrantee, and service levels Price - the expected retail shelf price and sale price of the product Place - the distribution channels and retailers required to sell the product Promotion - the communication tools needed to inform consumers about the product, including advertising, sales promotion, public relations, direct marketing, and personal selling ○ Explain that successful marketing programs care¬fully manage the marketing mix so that each element is well coordinated and appeals to the target market ○ Provide an example of a well coordinated marketing mix such as the LG Touch Phones described in the opening vignette for chapter 1. • In-Class Instructions – Show a visual of the Smarties and After Eight Straws products on the screen and describe the products to the class, showing an actual box and its contents if appropriate. Briefly and informally explain the activity and then ask the students to get into groups of four. Distribute the handout to each group and then formally review the activity with the students. Break the activity up in to three segments; (1) give the students 30 minutes to brainstorm on three new product ideas, (2) give the students 30 minutes to develop a marketing mix for their best idea, and (3) allocate 20 minutes in total for all the groups to briefly explain their product idea and marketing mix to the rest of the class. Collect the handouts for evaluation purposes. • Handout – Distribute the handout and worksheet for students to complete. • Evaluation – Collect the worksheets from this activity for evaluation purposes. They can be evaluated for completion, or graded for quality of the work completed. BRING IT TO LIFE: IN-CLASS ACTIVITY SMARTIES MARKETING MIX – HANDOUT • You have been tasked to create a new Smarties product for Nestle to appeal to seniors over the age of sixty. Spend 30 minutes brainstorming on three new product ideas you think would appeal to this target market. The ideas should include the actual product itself (taste, appearance, colour, size, shape, special ingredients, etc.) and its packaging. • Select your best idea and now develop the elements of the marketing mix, product, price, place, and promotion that are needed to market this idea to your target group, (30 minutes). • Select a spokesperson for your group who will briefly and informally explain your selected concept and its marketing mix to the class. Background Smarties targets families and specifically tweens. The product consists of small, brightly coloured, candy-coated chocolates that come in a bright blue package with colourful, fun graphics. The bite-sized pieces are easy to share. The product appeals to its target market through a fun promotional program at www.smarties.ca where images of Smarties are used in an online computer game. The product is also sold at a relatively inexpensive price, approximately $1.09 for 50 grams, making it affordable. Finally, the product is merchandised at retail, close to cash registers to prompt impulse purchases. BRING IT TO LIFE: IN-CLASS ACTIVITY SMARTIES MARKETING MIX – WORKSHEET Name: Section: A. List and describe the 3 product ideas that you created for your product in terms of taste, appearance, colour, size, shape, special ingredients, and packaging. Answer: 1. Tropical Fiesta Burrito: A vibrant burrito filled with mango salsa, shredded chicken, and black beans. It features a bright yellow tortilla, tropical fruit chunks, and a colorful mix of ingredients. Packaged in eco-friendly, transparent wraps to showcase its freshness and vibrant colors. 2. Smoky Chipotle Quesadilla: This quesadilla includes smoky chipotle cheese, grilled vegetables, and a blend of spices. It has a deep brown, crispy exterior with a rich, gooey inside. Packaged in a foil-lined pouch to maintain crispiness and warmth. 3. Garden Fresh Salad Bowl: A hearty salad with mixed greens, cherry tomatoes, avocado, and a zesty cilantro-lime dressing. The bowl is a mix of vibrant green and red, with a variety of textures and flavors. Presented in a clear, recyclable container to highlight the fresh ingredients. B. Product name – Select the best idea that you have and give your product a name. Answer: Product Name: Tropical Fiesta Burrito This name captures the vibrant and exotic nature of the burrito, highlighting its tropical ingredients and festive appeal. The term "Fiesta" conveys a lively, enjoyable experience, making it stand out on the menu. C. Craft the elements of the marketing mix for your new product to appeal to your target market: • Product - finalize the product you previously selected ensuring it meets the needs of your target market • Price – determine the retail shelf price and sale price that meets your target market needs. (For the purposes of this exercise costs and profit requirements are not taken into consideration). • Place – determine all the places where you think this product should be sold. (For this exercise distribution channels will not be included in this area). • Promotion – describe the promotional ideas that you will use to communicate to your target group such as advertising, sales promotion, public relations, direct marketing, and personal selling. Create a promotional program that will appeal to this target market. Answer: Product: Tropical Fiesta Burrito – a vibrant, flavorful burrito with tropical ingredients like mango salsa, grilled pineapple, and zesty cilantro lime rice, all wrapped in a colorful, eye-catching tortilla. Price: Retail price set at $11.99, with a promotional sale price of $9.99 to attract new customers and encourage repeat purchases. Place: Available at all Mucho Burrito locations, including standalone restaurants and food courts, as well as through major delivery apps for convenience. Promotion: Launch with a vibrant social media campaign featuring mouth-watering visuals and influencer endorsements. Implement a limited-time in-store discount and host a tasting event to generate buzz. Use targeted email marketing to notify existing customers and promote through local media and community partnerships. BRING IT TO LIFE: IN-CLASS ACTIVITY AFTER EIGHT STRAWS MARKETING MIX – HANDOUT • You have been tasked to create a new After Eight Straws product for Nestle to appeal to teenagers between the ages of 13-16. Spend 30 minutes brainstorming on three new product ideas you think would appeal to this target market. The ideas should include the actual product itself (taste, appearance, colour, size, shape, special ingredients, etc.) and its packaging. • Select your best idea and now develop the elements of the marketing mix that are needed to market this idea to your target group, (30 minutes). • Select a spokesperson for your group who will briefly and informally explain your selected concept and its marketing mix to the class. Background After Eight Straws targets adults. The product consists of long thin sticks of dark chocolate with a delicate mint-cream filling. The product comes in a sleek, upscale silver cylinder with muted grey tones and subdued graphics. The package contains 20 thin After Eight Straws. The product is sold at a premium price of $3.99 for a 90-gram package, reflecting its high-quality image and adult target market. This prod¬uct is not merchandised at the cash register. Instead, it is typically found on the shelves of many grocery stores and drug retailers, but enjoys wider seasonal distribution during the winter holidays when the product is popular for enter¬taining. In 2007, the product was promoted at Toronto Symphony Orchestra events to reflect its image as a product for adult entertaining. BRING IT TO LIFE: IN-CLASS ACTIVITY AFTER EIGHT STRAWS MARKETING MIX – WORKSHEET Name: Section: A. List and describe the 3 product ideas that you created for your product in terms of taste, appearance, colour, size, shape, special ingredients, and packaging. Answer: 1. Tropical Burst Smoothie: A vibrant orange smoothie with pineapple, mango, and banana, offering a refreshing, tangy taste. It's packaged in a clear, eco-friendly bottle showcasing its bright color and natural ingredients. 2. Berry Bliss Yogurt: A creamy, purple yogurt blend of blueberries, raspberries, and strawberries, providing a sweet and slightly tart flavor. It comes in a resealable, recyclable cup with a visually appealing fruit graphic. 3. Minty Dark Chocolate Bar: A dark chocolate bar infused with mint flavor, featuring a sleek, dark brown appearance with mint-green swirls. It’s wrapped in a sophisticated, matte-finish wrapper with mint leaf accents. B. Product name - select the best idea that you have and give your product a name. Answer: Tropical Burst Smoothie is the selected product. The name highlights its refreshing, exotic flavor profile and appeals to consumers seeking a vibrant, tropical taste. The name "Tropical Burst" emphasizes the burst of fruity flavors and aligns with the product's bright, appealing appearance. C. Craft the elements of the marketing mix for your new product to appeal to your target market: • Product - finalize the product you previously selected ensuring it meets the needs of your target market • Price – determine the retail shelf price and sale price that meets your target market needs. (For the purposes of this exercise costs and profit requirements are not taken into consideration) • Place – determine all the places where you think this product should be sold. (For this exercise distribution channels will not be included in this area.). • Promotion – describe the promotional ideas that you will use to communicate to your target group such as advertising, sales promotion, public relations, direct marketing, and personal selling. Create a promotional program that will appeal to this target market. Answer: Product: Tropical Burst Smoothie is a vibrant, fruity drink made with real mango, pineapple, and passion fruit, designed for health-conscious consumers looking for a refreshing, tropical treat. Price: Retail price is $4.99 per bottle, with a promotional sale price of $3.99 for first-time buyers. Place: Sold in health food stores, major supermarkets, and fitness centers, as well as available for online purchase through a dedicated website. Promotion: Utilize social media campaigns featuring influencers enjoying the smoothie, offer limited-time discounts through email marketing, and partner with local fitness events for sampling. Public relations efforts will include press releases and media coverage highlighting the product's health benefits and tropical appeal. BRING IT TO LIFE: METRICS ASSIGNMENT TIM HORTONS CSR FORECASTING – WORKSHEET Name: Section: Tim Hortons places considerable emphasis on its CSR initiatives. Assume you work for Tim Hortons and need to forecast budget requirements for its children’s camp programs over the next three years. Assume the following: • Tim Hortons is opening two new camps, one in Manitoba and one in British Columbia. This will provide additional camp spaces for approximately 2,400 economically disadvantaged children to help Tim Hortons reach its goal of sending 17,000 economically disadvantaged children go to camp in 2013. • 50 percent of the new spaces will materialize in 2012, and the remaining spaces in 2013. • Contributions from the “camp day” promotion will stay at the 2010 level in each year. • Donations from in store coin box contributions will stay at the 2010 level in each year. • Actual 2010 data is outlined in the below as foundation for forecasting budget requirements. Task 1. Forecast how much additional funding Tim Hortons Inc. will need to help support the expansion of its Kids Camp program. Answer: To support the expansion, Tim Hortons will need an additional $1,400,000, calculated as follows: (2,400 new spaces $1,000 funding per child) 50% (for 2012) = $1,200,000; total for both years = $1,200,000 + $1,200,000 = $2,400,000; adjusted for contributions = $1,400,000 (additional funding needed). 2. Given the additional funding required, what approach do you think Tim Hortons should follow? Should it fund all the incremental costs, or look to a promotional program to help? Answer: Tim Hortons should pursue a combination approach: fund part of the incremental costs and launch a promotional program to boost contributions, ensuring both immediate and sustainable financial support for the expanded camp program. You have been provided with the following data (based on information posted on the Tim Hortons website at http://sustainabilityreport.timhortons.com/communities_children.html): Tim Hortons Children’s Foundation 2010 2011 2012 2013 Actual Forecast Forecast Forecast Kids attending camp 14,654 17,000 Tim Hortons Inc. funding $1,000,000 Camp day promo contributions $9,700,000 Coin box donations $8,000,000 Total funding/donations/contrib. $18,700,000 BRING IT TO LIFE: METRICS ASSIGNMENT TIM HORTONS CSR FORECASTING – ANSWERS This assignment can be done in class with the answers computed on the board to demonstrate to students how a simple budget can be determined at the start of a marketing program. It can then be explained that this initial budget computation is used within a company to discuss the program, how it will be funded, and how CSR fits into the initiative and the company’s strategic vision. The computation steps are as follows: 1. Add the information known on the numbers of additional children that will be going to camp to the chart. Answer: 1. Forecasted Additional Funding Needed: • 2012: Tim Hortons will need an additional $2,524,000 to cover the cost of sending 15,800 children to camp. • 2013: The required additional funding is $4,060,000 for sending 17,000 children. 2. Suggested Approach: • Tim Hortons should consider a combination of increasing corporate funding and implementing a promotional program to help meet the substantial funding needs. 2. Add a row at the bottom at the bottom of the chart to determine the actual funding used in 2010 to send a single child to camp. Answer: Funding per Child (2010): In 2010, the cost to send one child to camp was $1,280, calculated from total funding ($18,700,000) divided by the number of children (14,600). 3. Use the same funding per child to determine how much additional funding is needed for Tim Hortons Inc. to support its program expansion in 2012 and 2013. (Inflationary increases should be included, but these have been omitted in the answers below to make the example easier to understand. If you have time, the students can be asked at the end of the assignment to add inflationary increases of 2 percent per year to make the computation more realistic). Answer: Additional Funding Needed (2012 & 2013): To support the expanded program, Tim Hortons will need $2,524,000 in 2012 and $4,060,000 in 2013. This covers the gap between the total funding required and the current contributions from Camp Day and coin box donations. 4. After reviewing the funding requirements which are substantial, students can be engaged in a discussion on what marketing approach Tim Hortons should take. Should it fund all the increases from corporate funding or implement a promotional program to help fund the program? What is realistic? (There are no correct answers for this discussion.) Answer: Discussion on Funding Approach: Tim Hortons should consider a mixed approach: funding part of the increase through corporate resources and using a promotional program to cover the rest. This strategy leverages the brand's visibility and customer engagement to raise additional funds while managing financial risk. Tim Hortons Children’s Foundation YEAR 2010 2011 2012 2013 Actual Forecast Forecast Forecast Kids attending camp 14,600 14,600 15,800 (14,600+1,200) 17,000 (15,800+1,200) Tim Hortons Inc. funding $1,000,000 $1,000,000 $ 2,524,000 $4,060,000 Camp day promo contributions $9,700,000 $9,700,000 $9,700,000 $9,700,000 Coin box donations $8,000,000 $8,000,000 $8,000,000 $8,000,000 Total funding/donations/contrib. $18,700,000 $18,700,000 $20,224,000 (15,800 x $1,280) $21,760,000 (17,000 x $1,280) $ required to support 1 child $1,280 ($18,700,000 /14,600) Computations for funding requirement $20,224,000 – ($9,700,000 + $8,000,000) = $2,524,000 $21,760,000 – ($9,700,000 + $8,000,000) = $4,060,000 Solution Manual for Marketing: The Core Roger A. Kerin, Steven W. Hartley, William Rudelius, Christina Clements, Harvey Skolnick, Arsenio Bonifacio 9781259030703, 9781259269264, 9781259107108