© 2011 gamechanger products llc all rights reserved. 1 moneyball marketing presented by larry...
TRANSCRIPT
© 2011 GameChanger Products LLC All rights reserved. 1
MONEYBALL MARKETING
PRESENTED BY
LARRYPOPELKA
© 2011 GameChanger Products LLC All rights reserved. 2
RECORD HIGH AD SPEND
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SHOW ME THE MONEYCost of
Advertising on TV
4X since 1980
inInflation
Adjusted $$
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NEW APPROACH FOR WINNING THE AD
GAME
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NEW APPROACH FOR WINNING THE AD GAME
…MONEYBALL MARKETING
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MARKETING FACTS
≠
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COMPANIES THAT BEAT BIG SPENDERS
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MONEY ≠ SUCCESS2002 Major League Baseball Season
Oakland A’s 2002
Payroll
$41 Million
28th out of 30 Teams(NY Yankees = $125 Million)
Record
103-59
Most wins any teamRecord 20 Game Win Streak
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SHOW ME THE MONEYJason Giambi$120 Million
Johnny Damon
$31 Million
Jason Isringhausen$27 Million
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NEW UNDER-VALUED SOLUTIONS
Scott Hatteberg
$950K
David Justice$3.5 Mil
Chad Bradford$235K
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NEW UNDER-VALUEDAD SOLUTIONS
Events/ Sampling
Street teamsOnline and social media
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YOUR NEXT MARKETING MEETING
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WHAT’S YOUR OBJECTIVE?
Sell Product = Get on Base
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THE AD WORLD IS FULL OF DISTRACTIONSBuild Awareness
Build Brand Equity
Trial Rate
GRPs
Ad DesignsReach & Frequency
ASI Tests Share of Voice
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THE AD WORLD IS FULL OF DISTRACTIONSBuild Awareness
Build Brand Equity
Trial Rate
GRPs
Ad DesignsReach & Frequency
ASI Tests Share of Voice
There is only one thing that matters:
Sell more product!
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THE SOLUTION…
NEW METRICS
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OLD METRICS
Batting Average
Home Runs
Stolen Bases
Strike Outs
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OLD NEW METRICS
Batting Average
Home Runs
Stolen Bases
Strike Outs
On Base PercentageWHIPOPS
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OLD AD METRICS
GRPs
Frequency
Reach
CPM
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OLD NEW AD METRICS
GRPs
Frequency
Reach
CPM
Cost Per ConversionRetention RateRevenue per Consumer
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EXAMPLES
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BLOCKBUSTER VS. NETFLIX 1998
$180 Mil/ Yr.Marketing Spending
$4 Mil/ Yr.Marketing Spending
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BLOCKBUSTER
Blockbuster “Total Access” – “Carl and Ray” Superbowl AdMetric = “High Awareness”
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NETFLIX
Online Ads + Postcards in New DVD PlayersCost per Conversion = $37.16
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RESULT
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RESULT
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VITAMIN WATERVS. COKE
$2.9 Billion Ad Budget $2 Million Marketing Budget
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COCA-COLA ADVERTISING
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VITAMIN WATERMARKETING
Sampling + Celebrities = Efficient Conversion
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RESULT
Coke buys Vitaminwater for $4.2 Bil = 10% of Coke’s Market Cap
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PURINAVS. NUTRO DOG FOOD
Purina $140 Million Ad Budget
Nutro $5 Million Marketing Budget
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PURINA
Traditional TV and Print Advertising
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NUTRO
Nutro “Pet Nutritionists” in Pet StoresPayout conversion rates
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RESULTS
Nutro: #1 Ultra-Premium Brand - $350 Million RevenueAcquired by Mars 2007
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HOW TO BE A MONEYBALL MARKETER
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3 STEP PROGRAM
1. Find Potential Under-valued Opportunities
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3 STEP PROGRAM
1. Find Potential Under-valued Opportunities
2. Test and Measure
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3 STEP PROGRAM
1. Find Potential Under-valued Opportunities
2. Test and Measure
3. Select, Modify, Expand
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CASE STUDYBRITA
Year 1990
Size <$2 Million
Situation: Business unprofitable
Fold the business?
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FINDING UNDERVALUED MARKETING
1.Find the “Fanatics”
2.What motivates them to buy?
3.How and where can we reach them?
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TESTING MARKETING
1.Location/ Aperture
2.Find the “Hook” – What drives interest
3.Refine the costs and message
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T.E.D.I. MARKETING
T = Targeted
E = Engaging
D = Dramatic
I = Immediate
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RESULT
$200 Million Brand in 5 years
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KEY METRICS
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KEY METRICS
1. Cost per Conversion
Oxi-Clean built to $200 Mil brand with efficient
conversion.
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KEY METRICS
1. Cost per Conversion
2. Retention Rate
ProActiv Solution grows to $800 Mil brand with effective
retention.
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KEY METRICS
1. Cost per Conversion
2. Retention Rate
3. Revenue per Consumer
Burt’s Bees grows to $150 million behind high revenue
per consumer.
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MONEYBALL MARKETING
10 KEYS TO SUCCESS
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1. FIND THE FANATICS
Meguiar’s car care – target enthusiasts to amplify your effort.
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2. START WITH REAL CONSUMER INSIGHTS
Find what consumers really want and meet their needs.
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3. FIND THE APERTURE
Target consumers when they are ready to buy your product.
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4. BE HELPFUL. DON’T WASTE PEOPLE’S TIME
Engage your consumer – don’t force them to watch something boring.
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5. RETENTION: CREATE A “WOW”
In-N-Out Burger: Experience that delights and builds repeat.
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6. MEASUREREAL SALES DATA
Measure real purchases – research studies can mislead.
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7. MORE SWINGS AT THE PLATE
Test more different concepts (more swings) – for more home runs.
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8. INVEST LIKE A SHARK
Zero-based budgeting for marketing
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9. BEWARE OF DINOSAURS
Traditional marketers who may not support your plan.
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10. FEED YOUR SUCCESSES
As you gain success, expand the vision and growth plan.
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WHAT’S YOUR GOAL?
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GAMECHANGER RETAIL LAB
Example: Torani Coffee Flavorings
Test marketing approaches and measure sales response.
© 2011 GameChanger Products LLC All rights reserved. 62
LARRY POPELKA, CEOGAMECHANGER
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