aramark: integrated marketing communication plan
TRANSCRIPT
Exploring New
Territories
Greg Bodenlos, Christina Zhang, Samantha LaFirst, Eun Ji Kim
Company IndustriesBusiness and Industry
Colleges and Universities Healthcare
Parks and ResortsSports and Entertainment
School DistrictsCorrectional Institutions
Conference CentersConvention Centers
Public Safety Senior Living
Cultural Attractions
OverviewSituation Analysis
Problems and Opportunities
IMC Plan Objectives
Advertising and Creative Strategies
Campaign Evaluation
OverviewSituation Analysis
Problems and Opportunities
IMC Plan Objectives
Advertising and Creative Strategies
Campaign Evaluation
Past Target Markets
Professional Footb
all Stadiums
Professional Baseb
all Stadiums
Primary Business
Concessions RetailPremium Services
Managed Services
Management Services Promises:
Revenue Returns
Superior Service
Primary Focus Value Proposition Bid Strategy Market Perception
ARAMARKMajor A Minor B Amp College
Selective, FocusedSelectively aggressive, leverage performance, history and size
Large, can use 'low cost provider' tactics when desired
Compass (Levy/RA)
Major A Premium, Racing, High Profile
Customize, quality, restaurant focus, concessions
Have bought market share for the last 3 years, this may be changing(?)
Restaurant 'aura' waning, back office issues
SportserviceMajor A Minor B Amp College, strong UK push
Flexible, family ownedFocusing on culinary & guest services - "Nordstrom's" provider
Personal, deep pockets, quality provider. Market does not see them as "Nordstrom's"
CenterplateMinor focus to Major A
Low return for market share, responsive, customer focused
Aggressive, geographic, new markets
Aggressive, value is changing downward. Clients questioning financial stability
Boston Culinary
Group
Minor focus, 2 "A"s College
Selective, flexible, relationship Geographic New marketsSmall, niche player, More aggressive
Ovations (Global
Spectrum)
Minor, but beginning to bid "A"s
Small, responsive, leverage success in minor markets, Global Spectrum aligned
Expanding, geographic concession mentality
Small, responsive, financially sound. Won first "A" market account
Sodexho CollegeBid aggressively, leverage their campus relationships
Leverage existing relationshipsCollege market focus, professional focus emerging
Competition
Major League “A” Markets
ARAMARK35%
BCG1%
Centerplate15%
Compass18%
Other1%
Self-Op11%
SportService19%
Minor League “B” MarketsARAMARK
15%
Sportservice5%
Sodexho4%
SMG2%
Centerplate12%
Self Op39%
Other22%
OverviewSituation Analysis
Problems and Opportunities
IMC Plan Objectives
Advertising and Creative Strategies
Campaign Evaluation
◦ Convert the majority of MILB teams self-operating concessions services into contract managed
◦ Satisfy owners looking for sustainable returns, fan satisfaction and strength of community
Opportunities
ProblemsMinor league owners unable to differentiate ARAMARK from its competitors
Minor league stadiums staying self-operated due to their relative sizes as they have enough resources
Constant challenge to differentiate service from self-run operations with value propositions
OverviewSituation Analysis
Problems and Opportunities
IMC Plan Objectives
Advertising and Creative Strategies
Campaign Evaluation
IMC Objectives
Attract business of 20 self-operated AAA-teams
Double market share of MILB from 15% to 30% in 3 years
Target Market
MLB •11% are self-operating management services
MILB •39% are self-operating management services
20 AAA-affiliated teams self-operated services
Target Market
Cashman Field Example
8,000 Hot Dogs
3,000 Soft Pretzels
2,000 Bags of Peanuts
1,500 Bottles of
Water
On Opening Day…
HEADACHES
Positioning StrategyConsistent Quali
ty
Affordabl
e Cost
Headache Relief
Positioning Strategy
“Our food and retail professionals understand what your fans want, and have deep expertise in managing supply and demand. So tap into our big-league resources for your minor league team and maximize your return.”
Objective and task budgeting method
Budgeted for three phases:◦ Estimated total cost based
on industry standards◦ Added a “contingency”
fund for unexpected costs◦ Budgeted for targeting 20
teams
Budgeting
OverviewSituation Analysis
Problems and Opportunities
IMC Plan Objectives
Advertising and Creative Strategies
Campaign Evaluation
Campaign Barriers:
ARAMARK perceived as one-dimensional “vendors”
Prospects do not buy ARAMARK features they buy that which benefits them.
Step 1: Raising Awareness
Step 2: Generating Interest
Step 3: Direct Marketing
Creative Marketing Strategy
3 months time-frame Direct mail, sales
promotions, and public relations tools
Creative strategy for direct mail pieces: Reality of Business and Humor
Step 1: Raising Awareness
Direct Mail
Direct Mail
Direct Mail
Sales Promotions
WHO ATTENDS?Representatives from more than 200 Major League and Minor League Baseball clubs, leagues and organizations attend the Baseball Trade Show during their annual meetings.
Focus on: Convincing baseball owners
that service is more efficient than self-operating services
Maintaining understanding that ARAMARK is the industry leader in Sports & Entertainment sector
Public Relations
News stories Press releases
Highlight Recognition from third parties as industry leader
News Story: Food Management’s Top 50 Management Companies
Press Release: InformationWeek 500 List of Top Technology Innovators
Step 1: Raising Awareness
Step 2: Generating Interest
Step 3: Direct Marketing
Creative Marketing Strategy
3 months time-frame Create a “Day at the
Ballpark Experience with ARAMARK” for interested stadiums
The day would include an all-expense paid day at one of our MLB partners
The owners would be able to meet the managers/employees and attend receptions
Step 2: Generating Interest
Step 1: Raising Awareness
Step 2: Generating Interest
Step 3: Direct Marketing
Creative Marketing Strategy
Six month – year time-frame
A self-operated personalized conversion manual
Fairly expensive and time consuming but is the final step in ensuring that self-op prospective clients are won over by ARAMARK.
Step 3: Direct Marketing
Over the next 3 months, will develop interactive, simplified P&L forms on the website which can be filled in by managers who currently self-operate their stadiums
Though slightly time consuming for the managers, this will be a concrete way to reveal the financial benefits of switching over
Alternative Advertising Strategy:
RevenueConcession Sales 72,000$ Concession Sales 75,600$
Retail Sales 60,000$ Retail Sales 63,000$ Premium Service Sales 4,000$ Premium Service Sales 4,200$
Others 2,000$ Others 2,100$ Total Revenue 138,000$ Total Revenue 144,900$
Expenditure Total Contract CostPersonnel 2,000$ 75% of Total Proceed 108,675$
Salaries 1,900$ Total Tax 7,245$ Fringe Benefits 800$ Total Costs 115,920$
Total Personnel 4,700$ Net Profit/Game 28,980$ ARAMARK's Expenditure
Expense Personnel 1,500$ Food 32,000$ Salaries 1,500$
Equipment 800$ Fringe Benefits 500$ Supplies 15,000$ Total Personnel 3,500$
Tax 6,900$ ARAMARK's ExpenseOther Expenses 54,700$ Food 27,200$ Total Expenses 109,400$ Equipment 680$
Supplies 12,750$ Net Profit/Game 23,900$ Other Expenses 46,495$
Total Expenses 87,125$ ARAMARK's Profit 18,050$
Self-Operated P&LRevenue
After ARAMARK Operations
OverviewSituation Analysis
Problems and Opportunities
IMC Plan Objectives
Advertising and Creative Strategies
Campaign Evaluation
Phase I (0-3 Month) Phase II (3-6 Month) Phase III (6-9 Month)Trade-Shows 13,000$ -$ -$
Labor Cost 10,000$ -$ -$ Trade-Show Fee 1,000$ -$ -$
Misc. Cost 500$ -$ -$ Marketing Material 1,500$ -$ -$
Direct Mail and Phone Calls 23,000$ 6,500$ -$ Labor Cost 15,000$ 3,000$ -$
Maketing Material 4,000$ 3,000$ -$ Misc. Cost 1,000$ 500$ -$
Design/Ad Creation 3,000$ -$ -$ Public Relations 2,000$ 2,000$ 2,000$
Labor Cost 1,500$ 1,500$ 1,500$ Misc. Cost 500$ 500$ 500$
ARAMARK Demonstration -$ 2,160$ -$ Misc. Cost -$ 500$ -$
Accomadation Cost -$ 600$ -$ Ticket Cost -$ 60$ -$ Labor Cost -$ 1,000$ -$
Consultant -$ -$ 7,850$ Consultant Cost -$ -$ 7,350$
Misc. Cost -$ -$ 500$ Total IMC Budgeted Costs 38,000$ 10,660$ 9,850$ Total IMC Budgeted Costs 58,510$ Each Additional Team Costs for phase 2 and 3 10,010$
Objective and Task Budget
Market Leader in MLB markets +
Effective IMC Campaign =
Campaign Evaluation