Questions 1 What will you make a conclusion from below marketing plan 2 What are the major things you want the owner to remember about your plan 3 How much money will plan make 4 What is the Marketing ROI Sh calculations that support this Why should the owner give you the money Marketing Plan Introduction Peter and Paul's Gifts is a gift company based in Vaughan, Ontario that produces year round gifts with a definite focus on corporate gifting Peter and Paul's Gifts was Founded in 1982, Over 30 years later, Peter and Paul's Gifts is now one of fourteen companies and event venues under the unique bypeterandpauls com brand Since then, owner and gift expert Anna Eliopoulos has brought excitement and passion to the gift giving market by understanding the dynamic and constantly changing market needs While providing innovative solutions, the highest quality of products and services, is key for Anna, Peter, and Paul's Gifts team to ensure that each experience with them is a personal and joyful experience for both buyer and receiver In thinking about her company's future opportunities, Anna wondered how it would continue to grow from her individual customer database as Revenue growth from corporate clients pleased her Since she had a well organized customer database to work with to create email lists, she thought there was a lot of potential for growth In the data, she knew there were probably many opportunities to increase sales, but she wasn't sure how to find and use them Business Problem Opportunity Potential Opportunity for revenue growth by focusingon individual customers and implementing correspondence plans Purpose of the plan Conduct a marketing plan through segmentation's that could boost the sales of individual customers of Peter Paul's Gift Situation Analysis Strengths Well known brand as Canada's premier gift company High quality of service, tried and tested through time Ability to accommodate custom requests and create a diversity of services for clients Well organized customer database Year round service provision as opposed to limited to the holiday rush It is adapted to market demand changes Corporate clients for targeting purposes Most stable financial standing (own assets premises) Having a strong customer base at age 33 62, they have a high sum of the total purchase amount the sum of the average purchase amount, and the sum of total orders Weaknesses Focus on corporate clients deprioritizing individuals Only used customer database to create an email list It has not been optimized for marketing Unable to assess recent transaction history as the latest record on the customer database is from 2 years ago in 2020 High attrition rates Brand dilution A well established restaurant business can hinder its growth as a gifting company A diverse product line may affect other groups of customers (deprioritization) Having a particularly weak customer base at age 18 32 and people older than they have a low sum of the total purchase amount, the sum of the average purchase amount, and the sum of total orders Opportunities Increased demand for virtual and digital gift giving because of the pandemic Searches for gift card online have grown globally by over 100 year over year 1 80 increase in global searches for Online gift in 2020 compared to 2019 2 Reinforcing impact of social media on gift giving culture People who receive gifts using social media platforms are 56 more likely to return the gesture A growing number of events where individual customers want to give gifts Increasing use of online purchasing among 18 40 age contributes to additional sales that might come from stocking customized gift baskets for this age group Population growth in Vaughan will increase foot traffic Threats Other competitors who focus on individuals have control of that market target High threat of substitutes The needs and demands of customers and trends keep changing so we need to be dynamic to retain customers Increasing material costs Inflation raises operational and production costs The supply chain was negatively impacted by a range of factors such as the Ukraine war, the aftermath of the C 19 pandemic, etc Objectives To reduce churn rate from 33 to 15 from 2019 to 2023 To acquire 1,000 new individual customers by July 2023 To increase 15 annual sales from around $959,000 to $1,102,850 2 Segmentation Segmentation method RFM (Recency, Frequency, monetary value) We willfocus on frequency and monetary We will separate them into four parts High frequency and high monetary High frequency and low monetary Low frequency and high monetary Low frequency and low monetary We willinvestigate the data byhaving different age groups, every 15 years in a group,as the picture below Row Labels Sum of Total $ Sum of Avg Purchum of Total Orders 18 32 141,716 24 S 52,658 86 5204 33 47 540,420 39 S 136,569 67 8996 48 62 710,818 11 S 197,245 72 9675 63 77 253,379 45 S 97,276 92 3918 78 92 24,826 79 S 12,831 45 488 93 107 967 58 S 510 01 26 Grand Total 1,672,128 56 V 497,092 63 28307Row Labels Sum of Total $ Sum of Avg Purchum of Total Orders 18 32 141,716 24 52,658 86 5204 33 47 540,420 39 S 136,569 67 8996 48 62 710,818 11 S 197,245 72 9675 63 77 253,379 45 S 97,276 92 3918 78 92 24,826 79 S 12,831 45 488 93 107 967 58 S 510 01 26 Grand Total 1,672,128 56 $ 497,092 63 28307FREE GIFT WRAPPING BUDGET Number of mails sent 2864 Assuming the open rate as 30 Cost per mail 1 00 Total cost S 2,864 00 No of people who opened email 859 2 No of people who got free gift wrap using the code (3 months) 150 Conversion rate 5 Assuming the average purchase for the 150 customer is $150 150 00 Assuming each person bought 3 gifts each on average 3 Cost of one wrapper bow ribbon 2 00 Money spent in gift wrapping 900 00 Total revenue (before marketing cost) $ 22,500 00 Marketing Cost (Mailing cost Gift wrapping cost) $ 3,764 00 Profit After Marketing Cost 5 18,736 00FREE SHIPPING BUDGET Number of emails sent 2864 Assuming the open rate as 15 Cost per mail 5 0 05 Total cost of email campiagn 5 143 20 Facebook Ad Campaign (per month 5 300 00 Facebook Ad Campaign (3 months 5 900 00 Total Marketing Cost (Email Facebook 5 1,043 20 Number of people who opened email 429 6 No of people who got free shipping using the code (3 months 75 Conversion rate 3 Assuming the average purchase for the 75 customer is S250I S 250 00 Assuming each person bought 4 gifts each on average 4 Shipping cost per gift 5 5 00 Money spent on free shipping 5 1,500 00 Total revenue (before marketing cost 5 18,750 00 Marketing Cost (Emailing cost Facebook Ad Campaign 5 1,043 20 Profit After Marketing Cost 5 17,706 80

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Questions : 1. What will you make a conclusion from below marketing plan 2. What are the major things you want the owner to remember

Questions: 1. What will you make a conclusion from below marketing plan

2. What are the major things you want the owner to remember about your plan?

3. How much money will plan make?

4. What is the % Marketing ROI? Sh calculations that support this. Why should the owner give you the money?

Marketing Plan:

Introduction:

Peter and Paul's Gifts is a gift company based in Vaughan, Ontario that produces year-round gifts with a definite focus on corporate gifting. Peter and Paul's Gifts was Founded in 1982, Over 30 years later, Peter and Paul's Gifts is now one of fourteen companies and event venues under the unique bypeterandpauls.com brand. Since then, owner and gift expert Anna Eliopoulos has brought excitement and passion to the gift-giving market by understanding the dynamic and constantly changing market needs. While providing innovative solutions, the highest quality of products and services, is key for Anna, Peter, and Paul's Gifts team to ensure that each experience with them is a personal and joyful experience for both buyer and receiver.

In thinking about her company's future opportunities, Anna wondered how it would continue to grow from her individual customer database as Revenue growth from corporate clients pleased her. Since she had a well-organized customer database to work with to create email lists, she thought there was a lot of potential for growth. In the data, she knew there were probably many opportunities to increase sales, but she wasn't sure how to find and use them.

Business Problem / Opportunity PotentialOpportunity for revenue growth by focusingon individual customers and implementing correspondence plans.

Purpose of the plan Conduct a marketing plan through segmentation's that could boost the sales of individual customers of Peter & Paul's Gift.

Situation Analysis

Strengths

Well-known brand as Canada's premier gift company.
High quality of service, tried and tested through time.
Ability to accommodate custom requests and create a diversity of services for clients.
Well-organized customer database
Year-round service provision as opposed to limited to the holiday rush.
It is adapted to market demand changes.
Corporate clients for targeting purposes.
Most stable financial standing (own assets/premises).
Having a strong customer base at age 33-62, they have a high sum of the total purchase amount the sum of the average purchase amount, and the sum of total orders.

Weaknesses

Focus on corporate clients deprioritizing individuals.
Only used customer database to create an email list. It has not been optimized for marketing.
Unable to assess recent transaction history as the latest record on the customer database is from 2 years ago in 2020.
High attrition rates.
Brand dilution - A well-established restaurant business can hinder its growth as a gifting company.
A diverse product line may affect other groups of customers (deprioritization).

Having a particularly weak customer base at age 18-32 and people older than they have a low sum of the total purchase amount, the sum of the average purchase amount, and the sum of total orders.

Opportunities

Increased demand for virtual and digital gift-giving because of the pandemic.
Searches for "gift card online" have grown globally by over 100% year over year¹.
80% increase in global searches for"Online gift" in 2020 compared to 2019².
Reinforcing impact of social media on gift-giving culture
"People who receive gifts using social media platforms are 56% more likely to return the gesture".
A growing number of events where individual customers want to give gifts.
Increasing use of online purchasing among 18-40 age contributes to additional sales that might come from stocking customized gift baskets for this age group.
Population growth in Vaughan will increase foot traffic.

Threats

Other competitors who focus on individuals have control of that market target
High threat of substitutes
The needs and demands of customers and trends keep changing so we need to be dynamic to retain customers.
Increasing material costs.
Inflation raises operational and production costs.
The supply chain was negatively impacted by a range of factors such as the Ukraine war, the aftermath of the C-19 pandemic, etc.

Objectives

To reduce churn rate from 33% to 15% from 2019 to 2023
To acquire 1,000 new individual customers by July 2023.
To increase 15% annual sales from around $959,000 to $1,102,850.

2. Segmentation

Segmentation method- RFM (Recency, Frequency, monetary value)

We willfocus on frequency and monetary. We will separate them into four parts: High frequency and high monetary; High frequency and low monetary; Low frequency and high monetary;Low frequency and low monetary. We willinvestigate the data byhaving different age groups, every 15 years in a group,as the picture below.

Row Labels Sum of Total $ Sum of Avg Purchum of Total Orders 18-32 141,716.24 S 52,658.86 5204 33-47 540,420.39 S 136,569.67 8996 48-62 710,818.11 S 197,245.72 9675 63-77 253,379.45 S 97,276.92 3918 78-92 24,826.79 S 12,831.45 488 93-107 967.58 S 510.01 26 Grand Total 1,672,128.56 V 497,092.63 28307Row Labels Sum of Total $ Sum of Avg Purchum of Total Orders 18-32 141,716.24 52,658.86 5204 33-47 540,420.39 S 136,569.67 8996 48-62 710,818.11 S 197,245.72 9675 63-77 253,379.45 S 97,276.92 3918 78-92 24,826.79 S 12,831.45 488 93-107 967.58 S 510.01 26 Grand Total 1,672,128.56 $ 497,092.63 28307FREE GIFT WRAPPING BUDGET Number of mails sent 2864 Assuming the open rate as 30% Cost per mail 1.00 Total cost S 2,864.00 No of people who opened email 859.2 No of people who got free gift wrap using the code (3 months) 150 Conversion rate 5% Assuming the average purchase for the 150 customer is $150 150.00 Assuming each person bought 3 gifts each on average 3 Cost of one wrapper/bow/ribbon 2.00 Money spent in gift wrapping 900.00 Total revenue (before marketing cost) $ 22,500.00 Marketing Cost (Mailing cost + Gift wrapping cost) $ 3,764.00 Profit After Marketing Cost 5 18,736.00FREE SHIPPING BUDGET Number of emails sent 2864 Assuming the open rate as 15% Cost per mail 5 0.05 Total cost of email campiagn 5 143.20 Facebook Ad Campaign (per month} 5 300.00 Facebook Ad Campaign (3 months} 5 900. 00 Total Marketing Cost (Email + Facebook} 5 1,043.20 Number of people who opened email 429.6 No of people who got free shipping using the code (3 months} 75 Conversion rate 3% Assuming the average purchase for the 75 customer is S250I S 250. 00 Assuming each person bought 4 gifts each on average 4 Shipping cost per gift 5 5.00 Money spent on free shipping 5 1,500.00 Total revenue (before marketing cost} 5 18,750. 00 Marketing Cost (Emailing cost + Facebook Ad Campaign} 5 1,043.20 Profit After Marketing Cost 5 17,706. 80