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MONEYBALL
MARKETING
PRESENTED BY
LARRY
POPELKA
© 2011 GameChanger Products LLC All rights reserved.
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RECORD HIGH AD SPEND
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SHOW ME THE MONEY
Cost of
Advertising
on TV
4X since 1980
in
Inflation
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 ≠ SUCCESS
2002 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 team
Record 20 Game Win Streak
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SHOW ME THE MONEY
Jason Giambi
$120 Million
Johnny Damon
$31 Million
Jason
Isringhausen
$27 Million
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NEW UNDER-VALUED
SOLUTIONS
Scott Hatteberg
$950K
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David Justice
$3.5 Mil
Chad Bradford
$235K
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NEW UNDER-VALUED
AD SOLUTIONS
Events/ Sampling
Online and social media
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Street teams
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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 DISTRACTIONS
Build Awareness
ASI Tests
Ad Designs
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Build Brand Equity
GRPs
Share of Voice
Trial Rate
Reach & Frequency
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THE AD WORLD IS
FULL OF DISTRACTIONS
Build Awareness
ASI Tests
Ad Designs
Build Brand Equity
GRPs
Share of Voice
Trial Rate
Reach & Frequency
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
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Stolen Bases
Strike Outs
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OLD NEW METRICS
Batting Average
Home Runs
Stolen Bases
Strike Outs
On Base Percentage
WHIP
OPS
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OLD AD METRICS
GRPs
Reach
Frequency
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CPM
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OLD NEW AD METRICS
GRPs
Reach
Frequency
CPM
Cost Per Conversion
Retention Rate
Revenue per Consumer
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EXAMPLES
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BLOCKBUSTER
VS. NETFLIX 1998
$180 Mil/ Yr.
Marketing Spending
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$4 Mil/ Yr.
Marketing Spending
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BLOCKBUSTER
Blockbuster “Total Access” – “Carl and Ray” Superbowl Ad
Metric = “High Awareness”
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NETFLIX
Online Ads + Postcards in New DVD Players
Cost per Conversion = $37.16
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RESULT
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RESULT
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VITAMIN WATER
VS. COKE
$2.9 Billion Ad Budget
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$2 Million Marketing Budget
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COCA-COLA
ADVERTISING
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VITAMIN WATER
MARKETING
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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PURINA
VS. NUTRO DOG FOOD
Purina $140 Million
Ad Budget
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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 Stores
Payout conversion rates
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RESULTS
Nutro: #1 Ultra-Premium Brand - $350 Million Revenue
Acquired 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 STUDY
BRITA
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
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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. MEASURE
REAL 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.
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LARRY POPELKA, CEO
GAMECHANGER
[email protected]
FREE BOOK
(GET YOUR COUPON TODAY)
© 2011 GameChanger Products LLC All rights reserved.
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