You have been hired by a store named Green-Land to develop a marketing communications plan using a sales promotion technique and a direct mail effort in the New York Metro area.
The store carries only eco- friendly products for house cleaning, laundry, gardening and health and beauty aids. They are located in Hicksville.
All of their products have a low environmental impact, use recycled materials and have recyclable packaging. Their prices are an average of 20% higher than major brands across all product categories.
You have a budget of $75,000 for your direct mail campaign and $25,000 in total for a sales promotion programs. Your two pronged campaign is to launch on April 23, the day after Earth Day 2018.
For the direct mail effort:
1. Describe your mailing; components, key copy points, etc.
2. Name the types of mailing lists that you think will work for the program and give reasons why you think each of them will work.
3. Assume your mail costs $500/thousand pieces mailed; catalog, envelope, letter & post.
a. How many mailings can you send out?
b. Assume an average order of $50 and a gross margin of 50% including fulfillment costs. What response rate do you need to breakeven on the mailing program.
4. Do you think direct mail is a good choice for this business? Why do you think that?
Select a sales promotion program that will mesh with your direct mail effort so the two are integrated.
Provide a budget for your program. How is the $25,000 spent?
How can you measure its effectiveness?
Do you think the $100,000 would be better spent if the target shifted from direct consumer purchases to attracting customers to the retail store ?
Explain your answer. What incentives could be offered to buyers to encourage them to come to Green-land?
