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Creating a Powerful Marketing Plan 2016 Heads of School Conference January 29, 2016 Professor Tim Calkins Kellogg School of Management Copyright © 2016 by Tim Calkins Objective Help you create powerful marketing plans that deliver strong results. ISACS - Creating a Powerful Marketing Plan 2 Key Points • Marketing plans are important tools for every organization • The best plans are clear and convincing • Marketing plans should be build around three elements: goals/objective, strategic initiatives, tactics ISACS - Creating a Powerful Marketing Plan 3 Agenda 1. Why marketing plans matter 2. The problems 3. Creating a strong plan 4. Keys to success ISACS - Creating a Powerful Marketing Plan 4 Marketing is difficult because it involves making choices The Great Marketing Challenge Deciding what to do Deciding what not to do ISACS - Creating a Powerful Marketing Plan 5 Complexity makes it harder The Growing Problem Complexity Too Much Information ISACS - Creating a Powerful Marketing Plan Too Many Options 6 Marketing plans are the focal point Feedback New Programs Emerging Trends Marketing Campaigns Competitive Analysis Marketing Plan Tuition Changes Market Research Staffing Moves Staff Ideas ISACS - Creating a Powerful Marketing Plan 7 Marketing plans do two things. First, plans set the course • Marketing plans force you to be clear on what you plan to do in the market to build the business -Plans specify what you will do and when you will do it • This is important -Prioritization is critical -Making tactical decisions is almost impossible without a broader plan ISACS - Creating a Powerful Marketing Plan 8 Second, marketing plans help you sell your recommendations • Making a decision and creating a plan is just the first step • In virtually every organization you then have to convince people to support your recommendation • A strategy without support will not succeed ISACS - Creating a Powerful Marketing Plan 9 Knowing how to write a good marketing plan is an important skill • Many people write marketing plans • Every organization should create a marketing plan • People tend to support well-written plans • Writing a plan can consume a lot of time if you aren’t careful ISACS - Creating a Powerful Marketing Plan 10 Three critical insights 1. Marketing plans are recommendations 2. The best marketing plans are clear and persuasive 3. Simplicity is always best ISACS - Creating a Powerful Marketing Plan 11 A question Does a school need a marketing plan? ISACS - Creating a Powerful Marketing Plan 12 Agenda 1. Why marketing plans matter 2. The problems 3. Creating a strong plan 4. Keys to success ISACS - Creating a Powerful Marketing Plan 13 There are two common marketing plan problems. Problem 1: There is no plan • All too many organizations don’t create a marketing plan at all • The result is that marketing becomes a series of tactics • This is a huge missed opportunity ISACS - Creating a Powerful Marketing Plan 14 Problem 2: The plan is ineffective “5% of them are good, most of them suck wind.” -Eli Lilly executive “Maybe 20% of companies do it right. Most have absolutely no clue.” -P&G marketer “So much of marketing is common sense, but it all goes away when you write marketing plans.” -Barilla executive ISACS - Creating a Powerful Marketing Plan 15 The typical marketing plan A long document Starts with a detailed situation analysis Ends with many programs, lots of details, lots of tactics ISACS - Creating a Powerful Marketing Plan 16 The result is disappointing • There is no clear direction • The plan has little impact • The team struggles to implement the programs ISACS - Creating a Powerful Marketing Plan 17 A question Why do people create long and unwieldy plans? ISACS - Creating a Powerful Marketing Plan 18 It is easy to make things complicated “Marketers complicate things because they can. And they feel good about doing it.” Amy Curtis-McIntyre SVP, Hyatt Former CMO, JetBlue ISACS - Creating a Powerful Marketing Plan 19 Agenda 1. Why marketing plans matter 2. The problems 3. Creating a strong plan 4. Keys to success ISACS - Creating a Powerful Marketing Plan 20 Marketing plans should be focused on three things Goals/Objectives What you are trying to accomplish Strategic Initiatives The most important things you will do in order to achieve the goals Tactics How you will move forward against each initiative. These are specific actions ISACS - Creating a Powerful Marketing Plan 21 A marketing plan needs to start with clear goals • A marketing plan should begin with the goal in mind: what are we trying to achieve? • Goals and objectives are the same thing • Goals should be SMART – Most important: specific, measurable, time-specific • Having too many goals is a problem. Best is to have one or two ISACS - Creating a Powerful Marketing Plan 22 Goals should tie to the financials • The main reason to worry about marketing at all is to drive results • As a result, a marketing plan needs to include financial goals • Examples of effective goals: - Increase student population by 5% - Build tuition income by 8% ISACS - Creating a Powerful Marketing Plan 23 Managing expectations is important • Critical formula: Satisfaction = Perception – Expectation • Need to strike a balance – Manage expectations down to achieve numbers – Manage expectations up to get support ISACS - Creating a Powerful Marketing Plan 24 Strategic initiatives are the big moves • Strategic initiatives are the most important things you need to do to deliver the goals • Initiatives should convey action: This is what we will actually go and do • Successfully executing against the strategic initiatives should deliver the goals ISACS - Creating a Powerful Marketing Plan 25 Good strategic initiative, or not a good strategic initiative? New programs Improve middle-school parent satisfaction Use Facebook Increase tuition revenue by +4.3% Build school awareness among new parents Strengthen perceptions of academic excellence ISACS - Creating a Powerful Marketing Plan 26 Strategic initiatives are the big moves • Strategic initiatives are the most important things you need to do to deliver the goals • Initiatives should convey action: This is what we will actually go and do • Successfully executing against the strategic initiatives should deliver the goals ISACS - Creating a Powerful Marketing Plan 27 Three useful questions to consider when developing initiatives Are we building share or category? Are we increasing penetration or buying rate? Is the priority awareness, trial or repeat? ISACS - Creating a Powerful Marketing Plan 28 Focus is critical • Having too many strategies is a problem – – • There should be 3 to 5 initiatives – • Dilutes focus Creates confusion The best number of strategic initiatives is 3 Remember that great strategy is based on choice ISACS - Creating a Powerful Marketing Plan 29 Focus is critical “Every leader needs to clearly explain the top three things the organization is working on. If you can’t, then you’re not leading well.” -Jeff Immelt, CEO, GE ISACS - Creating a Powerful Marketing Plan 30 Focus is critical “When I took over as group chief executive, the immediate task was to restore the integrity and the efficiency of BP’s operations. I set out three priorities.” -Tony Hayward, Chief Executive, BP Source: Tony Hayward, “Group Chief Executive’s Review,” BP Annual Review, 2007, p. 3 ISACS - Creating a Powerful Marketing Plan 31 Focus is critical “People think focus means saying yes to the thing you’ve got to focus on. But that’s not what it means at all. It means saying no to the 100 other good ideas that there are. You have to pick carefully. I’m actually as proud of many of the things we haven’t done as the things we have done.” -Steve Jobs, Apple ISACS - Creating a Powerful Marketing Plan 32 Tactics are the specific actions • Tactics explain precisely how the initiative will happen • Tactical moves include specific action steps – – – – – – Tuition changes Advertising plans Website updates New course offerings PR campaigns Social media programs ISACS - Creating a Powerful Marketing Plan The 4 Ps 33 One Page Plan Summary Goals/Objectives Strategic Initiatives Strategic Initiative 1 Tactics • Tactic • Tactic • Tactic • Tactic • Tactic • Tactic Primary objective Strategic Initiative 2 Secondary objective Strategic Initiative 3 ISACS - Creating a Powerful Marketing Plan 34 New Product Marketing Plan Summary Goals/Objectives Strategic Initiatives Drive product and category awareness Primary objective Tactics -Create strong, integrated creative -Build PR buzz -Use non-traditional programs Generate year 1 sales of $19 million -Execute $49.99 price Secondary objective Implement aggressive trial building plan -Support trial promotions -Secure strong retailer support Limit year 1 operating profit loss to $1.8 million Ensure quality distribution in key accounts ISACS - Creating a Powerful Marketing Plan -Expand distribution at key accounts (Wal-Mart, Grocery) -Win “last 3 feet” with retail excellence 35 Breakthrough Marketing Plans Outline Introduction State of the Business Objectives Strategic Initiatives and Rationale Tactics and Rationale Financial Implications Risks and Contingency Plans Summary ISACS - Creating a Powerful Marketing Plan 36 Agenda 1. Why marketing plans matter 2. The problems 3. Creating a strong plan 4. Keys to success ISACS - Creating a Powerful Marketing Plan 37 Key to success 1: Start by checking the foundation • A marketing plan is a short-term document • Before developing a marketing plan, it is important to review: -Mission and vision -Long term strategic plan -Positioning ISACS - Creating a Powerful Marketing Plan 38 Key to success 2: Involve the cross-functional team • Many opportunities and issues only surface when the crossfunctional team is involved • To gain support, it is critical to involve people early in the process ISACS - Creating a Powerful Marketing Plan 39 Marketing Plan Development Process Create a Cross-Functional Team Check the Foundation Clarify the Goals and Objectives Analysis, Analysis, Analysis Identify Strategic Initiatives and Tactics Check the Numbers Sell the Plan Execute and Track Progress ISACS - Creating a Powerful Marketing Plan 40 Key to success 3: Keep things simple • People embrace simplicity, and run from complexity • It is easy to make things complicated and hard to keep things simple • Focus on a few initiatives and make sure your analysis is easy to follow ISACS - Creating a Powerful Marketing Plan 41 Simplicity is critical “The best marketers are those that are able to take a complex situation and distill a few simple actionable truths.” Andy England Global CMO, MillerCoors ISACS - Creating a Powerful Marketing Plan 42 Simple analyses are best “You can’t believe how hard it is for people to be simple — how much they fear being simple. They worry that if they’re simple, people will think they are simpleminded. In reality, of course, it’s just the reverse. Clear, tough-minded people are the most simple.” -Jack Welch ISACS - Creating a Powerful Marketing Plan 43 2014 Business Plan – Category Analysis 2012 2013 Total Category EQ 542.1 $ $5,289.6 EQ 561.2 $ $5,504.5 % Chg 0.1% 1.4% 3.5% 4.1% Market Share Juicy Juice Welch's Mott's Hawaiian Punch Minute Maid Disney Hi-C TTL Coke Capri Sun TTL Kraft EQ 27.3 19.1 12.7 18.1 8.2 0.0 27.4 44.3 24.7 29.0 Share 5.0 3.5 2.4 3.3 1.5 0.0 5.1 8.2 4.6 5.3 EQ 28.8 17.1 11.8 20.7 17.2 1.9 22.8 53 30.9 35.6 2012 2013 2012 Market Share $ Share Juicy Juice $317.4 6.0 Welch's $247.3 4.7 Mott's $145.0 2.7 Hawaiian Punch $107.7 2.0 Minute Maid $113.5 2.1 Disney $0.0 0.0 Hi-C $228.9 4.3 TTL Coke $432.1 8.2 Capri Sun $236.0 4.5 ISACS Creating a Powerful TTL Kraft $278.0 5.3 2013 YTD EQ $ 222.7 $2,210.0 2014 YTD EQ $ 589.8 $5,790.7 2014 LE EQ $ 617.5 $6,074.5 5.0% 5.1% 4.7% 5.1% 5.2% 4.9% Share 5.1 3.0 2.1 3.7 3.1 0.3 4.1 9.4 5.5 6.3 2013 YTD EQ Share 12.3 5.5 6.5 2.9 4.6 2.1 8.8 4.0 9.3 4.2 4.8 2.2 7.4 3.3 28.2 12.7 13.1 5.9 19.8 8.9 2014 YTD EQ Share 31.1 5.3 15.9 2.7 11.2 1.9 23.6 4.0 25.4 4.3 11.8 2.0 15.9 2.7 73.1 12.4 33.6 5.7 47.8 8.1 2014 LE EQ Share 34.0 5.5 14.8 2.4 12.4 2.0 24.7 4.0 28.4 4.6 12.4 1.8 11.7 1.9 76.6 12.4 35.2 5.7 51.9 8.4 2013 $ Share $350.8 6.4 $239.9 4.4 $137.4 2.5 $121.1 2.2 $188.3 3.4 $23.6 0.4 $190.0 3.5 $505.4 9.2 $292.9 5.3 Marketing Plan $339.3 6.2 2013 YTD $ Share $150.5 6.8 $95.3 4.3 $51.8 2.3 $50.1 2.3 $89.8 4.1 $52.6 2.4 $58.0 2.6 $260.4 11.8 $123.2 5.6 $187.5 8.5 2014 YTD $ Share $376.4 6.5 $231.6 4.0 $127.6 2.2 $133.2 2.3 $237.4 4.1 $127.8 2.2 $127.4 2.2 $665.9 11.5 $330.1 5.7 $437.7 7.6 2014 LE $ Share $407.0 6.7 $224.8 3.7 $127.8 2.1 $139.7 2.3 $255.1 4.2 $133.6 2.2 $110.0 1.8 $696.0 11.5 $358.4 5.9 $481.0 7.9 44 Simplicity does not replace rigor “I want rigorous analysis and thoughtful assessments, but I don’t want complexity. If strategies and plans aren’t easily understood by everyone, they will be acted on by no one.” -Jim Kilts, CEO of Kraft, Nabisco and Gillette Source: James M. Kilts and Robert Lorber, Doing What Matters (Crown Business, 2010), p. 177 ISACS - Creating a Powerful Marketing Plan 45 Creating a tight marketing plan requires hard work, but it can transform your efforts • The easy route: create the usual long, complicated, data intense business review • The more promising route: present a tight, focused plan on that presents your key initiatives and explains why they make sense ISACS - Creating a Powerful Marketing Plan 46 Key Points • Marketing plans are important tools for every organization • The best plans are clear and convincing • Marketing plans should be build around three elements: goals/objective, strategic initiatives, tactics ISACS - Creating a Powerful Marketing Plan 47 Questions? Option 1: Contact me Tim Calkins [email protected] @timothycalkins www.strongbrands.wordpress.com Option 2: Read Breakthrough Marketing Plans ISACS - Creating a Powerful Marketing Plan 48