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Naomi is now in a much better position than she was a few months ago. With a small business grant that she received from the government, she has been able to hire a marketing intern, Majel Armstrong. Majel's first job was to determine the target market for the new digital marketing campaign. Based on the information provided by Naomi, she has decided to target college aged women between 18 - 24. More specifically, women in this demographic who are interested in wellness, naturalness, and "living their best life". This target's pain point is that they want to buy natural and healthy products but feel that everything is a scam. They are looking for an authentic product from an authentic company that they can trust. The marketing strategy is to focus on lavender beauty products as an authentic natural beauty product and that Little Lamb Lavender is the healthy, experienced older sister or young aunt who can be trusted to help guide them in buying the right product. Majel's first job is clean up the company's SEO and pay-per-click ads. Doing some research, she found information on keywords for "lavender" in the health and beauty industry. Majel assumes that 5% of the time people will click on the ad when they see it. Naomi has only allocated $1000 a month towards CPC. The summary is in the table below. Keyword Searchvolume Competitiveness Average CPC bid Lavender 382,000 High 0.90 Lavend blossoms14000 Medium 4.09 Lavender essential oils 14000 High 1.01 Planting lavender 74000 High 0.73 Lavender tea 9900 High 1.25 Essential oil for sunburn 1900 Low 0.05 Sachet lavender 2400 High 1.11 Eye pillow 2400 High 1.25 Majel also had to come up with new ideas to market LLL. She was able to use her network from university and find potential influencers who would be happy to help for just a few products. Her first contact was Elise Renard, a macro influencer who was well known in the natural beauty community, and the other contact was Jazmin alMubarak, a micro-influencer in the same field with 50,000 followers on Instagram. Both Elise and Jazmin rate and demonstrate beauty products that are targeted directly at the demographic Majel wants to target. The only major difference between them (other than the number of theirfollowers) is that Elise is based in Los Angeles and Jazmin is based in Calgary. In her non beauty videos, Elise spends a lot of time talking about and showing off LA, while Jazmin doesn't mention where she lives. In fact, only when Majel mentioned that LLL was based near Smithers did Jazmin mention that she too was Canadian. The third thing on Majel's plate is the email newsletter. Years ago, Naomi started a newsletter for her yoga retreat customers. That newsletter provided information about the farm and events but eventually turned into a LLL newsletter during the pandemic. It is now about the new products that LLL is developing. However there seems to be little interaction with her userbase. When the newsletter transitioned to talking about lavender many people wrote back asking what products she would create and how they would be integrated in the yoga retreats. Recently, when she had a contest giving away free products in the newsletter only one person applied. The fourth issue is the digital advertising for the company. Naomi believed at first that display ads were not helpful, but Majel made a very effective argument which convinced Naomi. Majel provided two options for LLL, the first Page 2 of 2 is a standard ad display network that has age, demographic and interest targeting for the user. The second is a list of websites that are frequented by women 23 and older. These websites discuss topics such as naturopathic healing and essential oils. Naomi does not have the budget to do both types of advertising and must decide which one to use. Lastly, there is a fire to put out on the LLL Facebook page. There has been a "troll" that has left nasty reviews of products and specific comments on Facebook posts. At first it was small, such as making snide comments about the effectiveness of the products. Lately, it has escalated. Recently, a message was posted stating that the lavender products are made from pre-bought lavender rather than grown on the farm. How should Majel deal with this problem? Overall, this is an exciting time for the company and they finally have the resources and personnel to properly market this amazing company. Naomi and Majel will have to navigate the potential pitfalls that exist.

q3

Should Naomi increase her CPC budget? Explain why or why not. If she does then how much of increase would you recommend and why? If she does not then what keywords should she use for her campaign and why?.