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Jose Borges Adrian Carrion Sameer Ghanekar Kishan Patel Adrian Schwartz Faculty Advisor: Jerry Casarella Rutgers Business School 20/20 Business Solutions Consulting Team

POD Digital Signage 2010.12

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This is a presentation that my team created in our Team Consulting class at Rutgers. Our project was to analyze a local business, including; their business model, market, competition, risks, and issues. The results were well received by the client, and our faculty advisor.

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Page 1: POD Digital Signage 2010.12

Jose BorgesAdrian CarrionSameer GhanekarKishan PatelAdrian Schwartz

Faculty Advisor: Jerry Casarella

Rutgers Business School20/20 Business Solutions

Consulting Team

Page 2: POD Digital Signage 2010.12

Agenda

Executive Summary

Summary of Findings SWOT Analysis

Competitor Analysis

Market Analysis

Marketing Communication Analysis

Recommendations

Page 3: POD Digital Signage 2010.12

Executive Summary

Objectives – Sustain & Grow◦ Increasing the utilization of your current network◦ Growing your network in a cost effective manner

Methodology – Secondary Marketing Research◦ Library Consultations◦ Private DB Research◦ Online Research◦ Personal Contacts

Key Focus Areas◦ Competition◦ Target Market◦ Sales/Marketing Approach

Page 4: POD Digital Signage 2010.12

Strengths

Industry Critical mass deployed/ verifiable

•New media trends support DOOH industry

•CAPEx and OPEx are declining as new suppliers emerge

POD: Synergies from 20/20 Solutions

•Established network

•Growing local presence

•Dynamic content

Opportunities

Industry Room for growth

•New retail sites outfitted with digital signage from getgo

•Integrated systems/Networked screens

•Mobile

POD Cross Selling from 20/20 Clients

•Limited local competition

•Expected growing economy

•Connections with aggregators

Threats

Industry Resistance to growth

• Lack of Consolidation

•Advertisers lack resources to interpret metrics from DS/DOOH

•Impact of mobile

POD Alternate (more familiar) media

•Lack of available metrics

•Network mostly eateries

•Low barriers to entry

Weaknesses

Industry Industry not standardized/Problem with metrics

• Industry needs more aggregating of networks

•Perceived as complicated/experimental

•Lack of recognition

POD Data Mngt (Sales Pipeline)

•Content bundled w/ service

•SAAS Model needs improvement

•Contract Model

S W

TO

SWOT Analysis

Page 5: POD Digital Signage 2010.12

Company Locations VenuesAverage Traffic

Average Traffic Per

VenueMonthly

Impressions Loop

LengthOccupancy

Rate

15 Second

Slot

30 Second

Slot

45 Second

Slot

60 Second

Slot

Loop Update

s

Spectrum Health

Medical Offices 43 69,966 1,627 48,976 28 min 20% 1 1 1 Daily

Gloss MediaNail Salons

& Spas 99 138,600 1,400 131,670 30 min 10% 1 1 1 Bi-

weekly

TUN Universities 179 4,340,683 24,250 1,866,495 10 min 70% 1 1 Weekly

Noble VisionDental Offices 881 180,605 205 125,983 30 min 10% 1 1

Bi-Weekly

Private Dental Networks

Dental Offices 155 82,770 534 55,800 15 min 25% 1 1 Weekly

Itandi Networks

Hair & Nail Salons 36 18,000 500 16,920 30 min 70% 1 1 Daily

4G-TRECommuter

Trains 1 81,900 81,900 25,389 30 min 75% 1 1 1 1 Hourly

The Network Matters

Seesaw Competitor Matrix

Page 6: POD Digital Signage 2010.12

rVue Competitor Matrix

Company Locations VenuesWeekly

Impressions Loop LengthLoop

Updates15 Second

CPM30 Second

CPM Verification

Digital Consumers Solutions Inc

Eateries 6 180,000 10 min 5 Days $12.50 N/A Arbitron

Captiveyes Eateries 59 209,850 10 min 2 Days $5.00 N/A N/A

Labcorp Medical Offices

99 294,030 60 min 3 Weeks N/A $28.00 N/A

Waiting Room Promotion

Medical Offices

200 374,400 8 min N/A $12.43 $19.90 Transactions

Direct Net Marketing

Eateries 10 528,480 14 min Daily $1.50 N/A N/A

City Drip Digital Signage

Eateries 35 630,000 10 min 2 Days $5.00 $7.00 Transactions

HMN Dental Networks

Medical Offices

1,717 927,180 20 min 2 Days $7.00 $12.00 Arbitron

AMI Entertainment Network

Eateries 10,051 996,571 1.6 Hours Daily $4.00 N/A Nielson

Boldwater TV Eateries 50 1,235,580 2 Hours Weekly N/A N/A Arbitron

Sportscape Eateries 904 34,116,960 10 min N/A $7.84 N/A N/A

The Network Matters

Page 7: POD Digital Signage 2010.12

Competitor Product Offerings

•15 Second Spots

•9 Plays Per Hour

•1 Month

•22 Venues

•3,170 Screens

•$953 + Ad Development (If Requested)

Entourage Advertising

•14 Locations

•5 Plays Per Hour

•20 Second Ads

•Free Ad Development

•3 Month Minimum Contract

•$70/Month/Location

Magnificent Media

Page 8: POD Digital Signage 2010.12

Alternate Media Competitors*Source: Spotrunner.com

Company Medium Rate Contract Length

Star Ledger Classifieds

Newspaper $150/week 3 Days

Local Cable TV $200-$750/ 30sec

2-3 Months

Broadcast TV* TV $2,000-$6,000 2-3 Months

Local Radio Radio $60-$75/30sec

Local MediaSponsorship

Online Advertising

$4-$28 CPM

Digital Signage is a Better Value

Page 9: POD Digital Signage 2010.12

Media Agency Contacts

•Was Very Interested In Establishing Contact

•Darren Magarro

[email protected]

•www.thedsmgroup.com

The DSM Group

•Biggest Advertising Agency In New Jersey

•Sean Black – President

[email protected]

•www.jl360media.comJL360 Media

•Pennsylvania Based

•Jerry Matese – President

•www.jenacommunications.com

Jena Communications

Page 10: POD Digital Signage 2010.12

Market Segmentation

Recognize types of local businesses in nearby NJ Counties◦ Census.gov

Determine which industries spend the most on marketing◦ IBISWorld

Concentrate sales team on industries and townships which have highest probability to advertise using POD Digital Displays

Census data

IBISWorld

Research

Prioritized potential client list

Page 11: POD Digital Signage 2010.12

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

# o

f Esta

bli

sh

men

ts

NAICS Code

Breakdown of # of Establishments by NAICS Code

Page 12: POD Digital Signage 2010.12

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

Sale

s,

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en

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receip

ts,

reven

ue,

or

bu

sin

ess d

on

e (

$0

00

's)

NAICS Code

Breakdown of Revenue ($000's) by NAICS Code

Page 13: POD Digital Signage 2010.12

IBISWorld Research

Page 14: POD Digital Signage 2010.12

0

50

100

150

200

250

300

350

400

450

Bergen Essex Morris Union Hudson Passaic Sussex

Arts, entertainment, and recreation

# o

f Esta

blish

men

tsArts, entertainment, and recreation

Establishments by County

Page 15: POD Digital Signage 2010.12

0 5 10 15 20 25 30

Fort Lee borough, NJ

Ramsey borough, NJ

Hackensack city, NJ

Teaneck township, NJ

Paramus borough, NJ

Edgewater borough, NJ

Englewood city, NJ

Tenafly borough, NJ

Mahwah township, NJ

Fair Lawn borough, NJ

Ridgewood village, NJ

Waldwick borough, NJ

Closter borough, NJ

Westwood borough, NJ

Rutherford borough, NJ

Park Ridge borough, NJ

Lyndhurst township, NJ

Hasbrouck Heights borough, NJ

Cresskill borough, NJ

Franklin Lakes borough, NJ

Wyckoff township, NJ

Palisades Park borough, NJ

Bergenfield borough, NJ

Carlstadt borough, NJ

Montvale borough, NJ

Demarest borough, NJ

Wallington borough, NJ

Bogota borough, NJ

Old Tappan borough, NJ

East Rutherford borough, NJ

Allendale borough, NJ

River Vale township, NJ

Midland Park borough, NJ

Maywood borough, NJ

River Edge borough, NJ

Leonia borough, NJ

Garfield city, NJ

Rochelle Park township, NJ

Oradell borough, NJ

Elmwood Park borough, NJ

Englewood Cliffs borough, NJ

Little Ferry borough, NJ

Upper Saddle River borough, NJ

Dumont borough, NJ

Washington township, NJ

Oakland borough, NJ

Ridgefield borough, NJ

Glen Rock borough, NJ

Norwood borough, NJ

Cliffside Park borough, NJ

New Milford borough, NJ

Lodi borough, NJ

Fairview borough, NJ

Emerson borough, NJ

Woodcliff Lake borough, NJ

North Arlington borough, NJ

Wood-Ridge borough, NJ

Saddle Brook township, NJ

Teterboro borough, NJ

Ridgefield Park village, NJ

Hillsdale borough, NJ

Berg

en

Art

s, ente

rtain

ment,

and r

ecre

ation

# of Establishments

# of Arts, Entertainment, and recreations establishments

by Bergen County townships

Page 16: POD Digital Signage 2010.12

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

Essex Bergen Union Hudson Morris Passaic Sussex

Arts, entertainment, and recreation

Su

m o

f sale

s,

sh

ipm

en

ts,

recie

pts

, reven

ue,

or b

usin

ess d

on

e

($

00

0's

)Arts, entertainment, and recreation

Revenues by County

Page 17: POD Digital Signage 2010.12

$0

$50,000

$100,000

$150,000

$200,000

$250,000N

ew

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South

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Belleville

tow

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well b

oro

ugh,

NJ

Nort

h C

ald

well b

oro

ugh,

NJ

Essex

Arts, entertainment, and recreation

Arts, entertainment, and recreation

Revenues – Essex County

Page 18: POD Digital Signage 2010.12

0

10

20

30

40

50

60

$-

$50,000

$100,000

$150,000

$200,000

$250,000

Montc

lair

tow

nship

, N

J

Jers

ey C

ity c

ity,

NJ

New

ark

city,

NJ

Wayne t

ow

nship

, N

J

West

Ora

nge t

ow

nship

, N

J

Fort

Lee b

oro

ugh,

NJ

Sum

mit c

ity,

NJ

Hoboken c

ity,

NJ

Pars

ippany-T

roy H

ills

tow

nship

, N

J

Secaucus t

ow

n,

NJ

Arts, entertainment, and recreation

Top 10 Townships comparing

# of Establishments and Revenue Totals

Sum of Employer sales, shipments, receipts, revenue, or business done ($1,000)

Sum of Number of employer establishments

Page 19: POD Digital Signage 2010.12

Sales Approach Guide

•Ensure POD Digital Displays sales force focuses efforts on the right:

•Industry•County•Township

•Mixture of all available information

•Find which combination works•Sales strategy cycle

Track

Evaluate

Refine

Reissue

Page 20: POD Digital Signage 2010.12

Target Market

• Primary target market:

• Small and medium size businesses in Morris and Sussex Counties

• Estimated annual revenues < 1 million

• Expansion to Bergen, Essex, Hudson, Passaic and Union

• Secondary target market:

• The local community!

Page 21: POD Digital Signage 2010.12

Unique Selling Proposition

The digital advertising network INyour community and FOR your community

Page 22: POD Digital Signage 2010.12

Supporting Messages

• Support for the locally owned and operated

• Proximity to the point of sales

• Cost effectiveness

• High exposure

• High repetition

• Right offer and right message

Page 23: POD Digital Signage 2010.12

Marketing Communication Objectives

AWARENESS

KNOWLEDGE

ATTITUDE

BEHAVIOR

Page 24: POD Digital Signage 2010.12

Pod Digital Displays Media Plan

• Product Brochure

Product Website

• Event and PR Marketing

• Internet Marketing

• Social Media

Page 25: POD Digital Signage 2010.12

Product Brochure

• Two pages folded brochure with detailed information about:

• Current POD Digital Displays locations

• Pricing competitive advantages chart

• Promotions:

• Free digital ad development

• Discount for additional locations

• Community involvement and activities

Page 26: POD Digital Signage 2010.12

Product Website

• Website redesign

• Focus website on Pod Digital Displays

• Define Pod Digital Displays with better images

• Include location information and promotions from current Pod advertisers

• Add a sales video and pricing competitive advantages chart

• Add a green message

• Add a self-server option (long term)

Page 27: POD Digital Signage 2010.12

Product Website Redesign

Page 28: POD Digital Signage 2010.12

Event and PR Marketing

• Host business breakfast at the chamber of commerce in Morristown

• Sponsor Morristown farmer market

• Continue free advertisements on Pod Displays for pet adoption agencies, missing child advertising campaigns, and other communities events and charities

Page 29: POD Digital Signage 2010.12

Optimize internet searches in Google◦ Currently under digital

display◦ Not under digital

advertising

Add key words for internet searches in Bing

Register advertisers in www.NJ.com

Internet Marketing

Social Media

Follow Pod Digital Displays on Twitter

Add Pod Digital Displays to your Facebook friend list

Want instance information about POD Digital Displays, its locations, and its sponsors

Page 30: POD Digital Signage 2010.12

Overall Recommendations

• Sales and Marketing

• Get the word out to your target market about POD

• Revamp Marketing Communication

• Manage a Sales Pipeline

• Increase Current Utilization

• Add a self-service content management option

• Consider alternative contract models

• Partner with Advertising Brokerages

• Grow the POD Network

• Add POD Digital Displays at the Break-Even Point

• Utilize Census data to locate new POD locations