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TABLE OF CONTENT
Situation Analysis ............................................................ 1 Current and Past Advertising Efforts............................. 3 Current Social Media Trends ......................................... 4 How to Measure ROI ...................................................... 5 Critical Factor .................................................................. 7 Recommendations.......................................................... 8
Company Background Method was founded in 2000 by two guys in a basement. Their business, they decided, was to change business by making new kinds of soaps and detergents: the kind that save precious resources like water, and save their costumers some extra money. They also decided to change packaging and traditional forms of containers. The pair wanted something altogether new: a simpler way of looking at the cleaning task. Coming up in a time where the green movement was gaining momentum and new kinds of portals like Myspace and Facebook were created, the team made the right choice in developing their brand with social media outlets. Target Market • Young “Influencers” • Progressive Domestics • Clean Freaks • Green Freaks • People Against Dirty This niche market contains a younger female who wants a “good clean.” This target views their home as a refuge and wants it clean in an all natural way. Some are concerned with various toxins in cleaning products; others just want to know their goods are truly natural. Method heeds the wants and needs of its target consumer by using 35% recyclable plastic, and using biodegradable chemicals for its products. The target audience is hardcore. But, Method labels their audience as “Hip, Not Hippie.” They range from people who live their lives by the green movement to those who want to do everything just right for their newborn babies. Evidence from the People Against Dirty Facebook fan page suggests they wish to incorporate Method into every aspect of their lives: soaps, detergents, shampoos, air care, etc. These go-greeners bounce ideas off of one another and grow in number every day. They depend on the support of and suggestions from the other members in making purchase decisions. This is why providing them with a social media platform is vital to Method’s success.
Availability of Product: Store Locations • Babies R Us • Bed Bath & Beyond • Costco • Farm Fresh • Lowe’s • Safeway • Staples • Target • Toys R Us • Whole Foods
Availability of Product: Geographic Locations • United States • Canada • England • Australia • France • Japan Competitors Participation in Social Media: DAWN’s social media is centered on Facebook. In particular the EverydayWildlife Champions Campaign, boasting 272,703 fans. This campaign centers on the cause and not the product. Dawn doesn’t interact with its consumers as frequently as Method and Dawn’s overall social media presence is not up to par with Method’s. CLOROX GREEN WORKS focuses a large portion of its campaigns on social media. Clorox Green writes a blog called Shades of Green Journal, which distributes news about the product and what’s new with “green.” They have a micro site and Facebook pages aimed at causes. Clorox also has a Twitter that is updated frequently and employs the use of viral videos.
Why is this important? Since there is no clear cut way of measuring the “effect,” and thus, “value” of social media, it behooves Method to look to the right and left to see where its direct and indirect competitors are online.
Current and Past Advertising Efforts
Method‘s past advertising efforts were marked primarily by word of mouth and relying on product placement in Target stores. In 2007 Method launched the campaign “Detox Your Home.” Through the use of print ads, online banners, search-engine marketing, and events, Method’s sales increased from $85 million in 2006 to $200 million in 2009. Method remarks that this year “marks our highest expenditures on advertising and marketing in the company’s history.” With these high expenditures is the current advertising campaign “People Against Dirty.” This campaign first began with an 18 page booklet insert describing their philosophy and sample offering. Method has now expanded to using print ads in magazines such as Family Circle, People, and Real Simple, and digital media. Moreover, Method is using what they describe as “earned media,” or social media such as a Facebook, Twitter, blog, micro site and viral videos.
Below is a breakdown of Method’s earned media sites. • Facebook Currently Method has a fan page with 13,703 fans. The site has involvement from the customers with their questions about the brand and products, seeking of input of customers from Method and new product information. Method is using Facebook as a way to keep their target up to date on their products, promote their philosophy and answer product questions. • Twitter Method is following 7,006 people and has 7,254 followers. Tweets are posted daily informing followers of promotions, product news and ways to stay green. Method followers are tweeting about Method and they are tweeting back. • Blog Method’s blog allows one to read about company news, products, environmental happenings and style. From the blog website one has the option to subscribe or sign up to be a part of People Against Dirty.
Current Social Media Trends
Most companies are currently using at least one form of social media. Twitter is the most popular option followed by Facebook fan pages, YouTube channels and corporate blogs. However, not many companies are using all of these social media platforms simultaneously. One of the largest social media trends is the reality that power is in the hands of the consumer rather than the company. Social media users realize this and expect companies to interact and respond to their conversations. Furthermore, customers want companies to speak with them rather than at them, in hopes of a more one-on-one feel. Companies are not only looking for new ways to lure in their customers into their social media networks, but also to increase social media participant’s activity. Many businesses are now using social media rewards systems for their high involvement social media users. These users receive rewards such as promotions and giveaways. One of the largest impacts is the ability to access social media sites on smart phones. Many companies have social media policies in the office and the sites have been banned. Therefore, many employees are using their smart phones as a way to access social media during working hours. Smart phones have also led the way of being able to make payments directly from one’s phone. A huge development in social media is the idea of group buying. Sites like Groupon and Living Social are incredibly promoted on social media sites. Customers opt-in to these sites to receive various promotional and sales deals.
Social media will soon be integrated into overall marketing plans and budgets for many companies. Many of these companies have seen that the deeper they go into social media the more expensive it is. They are looking for ways to cut back on the costs of having to provide labor for social media and discover more cost efficient ways to use social media platforms. Currently some of the biggest problems facing social media are the tracking and success measurement, the management of information and new ways to engage customers.
How to measure ROI of Social Media
Measuring return on investment in social media is difficult and leads to most companies simply not doing it. There is a current lack of solid return on investment (ROI) information which has made many companies question the use of social media. Due to the economic times, every cent of businesses budgets, like Method, is being scrutinized. Therefore, the expenditures within social media are feeling pressure to generate hard measurable sales. The problem is that most agencies and companies have no concrete measurement for social media. Currently, social media is measured in facts such as Facebook fans, twitter followers, traffic, and comments. The KPI’s for social media are therefore more geared toward brand awareness, brand conversation, and long-term relationships with consumers. Ogilvy PR proposes using metrics such as reach and positioning, preference, and action to measure social media ROI. These metrics call on the extensive use of analytics software, traditional research, and measurable sales. Digital Footprint Index uses three dimensions: height, width, and depth. Height represents the total amount of brand mentions, width represents consumer engagement, and depth represents message saturation and sentiment. There is not a metric that exists at the moment that can measure the ROI of social media directly. This is because most of social media’s benefits and values are immeasurable. For those companies that need a hard bottom line, the closest they can come is watching trends. For example, if sales rise after a social media campaign and the pattern is significant then the sales may be attributed to the social media.
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The Volume of Social Media Usage is Staggering
• More than 400 million active users • 50% of active users log on to Facebook in any given day • More than 35 million users update their status each day • More than 60 million status updates posted each day • More than 3 billion photos uploaded to the site each month • More than 5 billion pieces of content (web links news stories blog posts notes photo albums etc ) links, stories, posts, notes, albums, etc.) shared each week • More than 3.5 million events created each month • More than 3 million active Pages on Facebook • More than 1.5 million local businesses have active Pages on Facebook • More than 20 million people become fans of Pages each day • Pages have created more than 5.3 billion fans • There are more than 100 million active users currently accessing Facebook through their mobile devices.
• People that use Facebook on their mobile devices are twice more active on Facebook than non mobile users. • There are more than 200 mobile operators in 60 countries working to deploy and promote Facebook mobile products
*From Facebook statistics: http://www.facebook.com/press/info.php?statistics on 2/25/10
Also a growing number of agencies are using coupons given out on Facebook to track how many Facebook fans use the coupons to actually purchase the product or service. In addition tracking sales made after visits to twitter or Facebook is possible and one of the best ways to show a tangible ROI. According to Shift communications there are also immeasurable benefits of social media: include the rapid share of information, widespread coverage, enhancing brand awareness and image, and feedback from a specific target market. When a company is looking at how much money it has invested into social media, it must keep in mind the benefits it is receiving. This balance cannot be made with only quantitative measurements, but must be a mixture of both qualitative factors and quantitative factors. How social media is used greatly influences how successful it is. Companies must keep an active presence, and engage consumers frequently. Companies who use social media correctly will see its benefits. According to Chadwick Martin Bailey, a market research and consulting firm, consumers who are engaged in social media with your company are more likely to buy and recommend your products or services because they feel as though an active social media presence is a sign of a connected company. ROI will continue to be an allusive measurement for social media due to the nature of the platform, but as seen above there are a few options making headway that can accurately predict social media’s ROI.
Fans and Followers Say They Are More Likely to Buy and Recommend Than Before
Facebook More likely to buy from at least one brands since becoming a fan/ follower
More likely to recommend at least one brands since becoming a fan/ follower
While Use Skews Younger, It’s Hardly Exclusive; Facebook Is Increasingly Reflective of the General Online Population
From CMB Consumer Pulse 2009 2010: 500 respondents were Facebook fans of brands, 240 are Twitter followers. Q5e: Are you more likely to buy since becoming a fan? Q5f: Are you more likely to recommend to a friend since becoming a fan? Q6e: Are you more likely to buy since becoming a follower? Q6f: Are you more likely to recommend to a friend since becoming a follower? Percentages reflect the sum of those who said “yes, for a few brands“ or “yes, for many brands”
*Percent of US respondents who use a site at least once per month
18 to 24 86% 27% 28% 96% 57%
25 to 34 72% 16% 24% 95% 66%
35 to 44 64% 9% 14% 86% 68%
45 to 54 54% 9% 9% 84% 68%
55 to 64 50% 5% 4% 84% 58%
65 and over 40% 4% 4% 82% 57%
Facebook Twitter Myspace Google Yahoo
The Volume of Social Media Usage is Staggering (continued)
•*From CMBwere tweeting 2010 times a day in 2007. By 2008, Users Consumer Pulse 2009 5,000 that number was 300,000, and by 2009 it had grown to 2.5 2 5 million per day day. • Tweets grew 1,400% last year to 35 million per day. Today, we are seeing 50 million tweets per day—that's an average of 600 tweets per second.
Critical Factors: Inception of Social Media, Niche Target Market, Brand’s History
Social Media is in its Childhood: ADVANTAGE: (1) Great potential for online engagement. (2) No limitations on use or measure as a media space; open for new methods and discoveries. (3) Movement from Desktop to Mobile. (4) People are drawn to “causes.” DISADVANTAGE: (1) No clear cut way to trace consumer-conversion rate. (2) Businesses are wary of investing capital into media without having a profitable model to follow. (3) Cost in terms of human resources and time invested. (4) Open to all content: good, bad, non-factual. (5) Highly-cluttered space. (6) Potential for competitors to overpower Method. Niche Target Market: ADVANTAGE: (1) Buying power of a highly concentrated group is big. (2) It’s cheaper to retain an existing customer than it is to buy a new one. (3) Grass-roots community “feel” creates interaction with the brand. DISADVANTAGE: (1) Smaller sales potential. (2) Missed opportunity in terms of brand expansion and awareness. (3) Growth potential is inhibited. Brand’s History: ADVANTAGE: (1) Established fan/consumer presence on social media; direct communication with the brand. (2) Availability of product with access to the Internet. (3) Established, loyal community on various social media sites. (4) Sales have increased due to online Advertising efforts. DISADVANTAGE: (1) Low brand awareness. (2) Past moral and legal issues involving Method’s viral videos. (3) “Another” green company.(4) Unavailability of product at physical locations.
After having had access to a highly interactive, communicative platform via multiple social media websites, taking away the option of social media could potentially harm the brand and devalue the opinions and emotions of Method’s exceptionally loyal fan base. Most people who identify as “green” are very adamant about their initiative. This passion group has great potential to be targeted through continued social media efforts. This is a great platform to jump off of because there is a preexisting strong group following and a strong collective base. As mentioned earlier, group buying is a hot trend. Method can capitalize on this. Keeping this in mind, Team Green recommends that Method continue its efforts in social media. Here are our specific recommendations: 1. Coupons will be placed on social media websites that can be redeemed for purchase instore or online. The promotional code would be unique to each social media site and therefore measure conversion rate. 2. Groupons: Making Method products available at a discount through Groupon will further expand the awareness of the product through multiple markets throughout the nation. Method can further advertise their efforts on Groupon through Tweets and posts via Facebook. The buys on Groupon are measurable results because buyers have to opt in and the purchases are easily tracked. With these results Method can bring in immediate revenue, while expanding their audience base by providing a “Like” link on the Groupon site. 3. Method can supply specific links (bit.ly) through posts on Facebook and Tweets on Twitter which will direct followers to specific new products’ purchase sites. Once here, the fans and followers can learn more about the new products and make a purchase if they so desire. Further, Method can also implement behavioral trackers which will provide further demographic and behavioral information if the consumer comes back to the site at a later time to purchase products. If the consumer does purchase a product the conversion can be directly correlated to the links.
Thank you for looking through our recommendations for Method. Your time, money, and business are all very much appreciated.
Stay green; Team Green
Dawson Griffith Marissa Guerra Manuel Hernandez Elaine Hirsch Anthony Hoang Matt Kleineck