The document discusses BzzAgent, a company that leverages a network of loyal brand advocates called BzzAgents to organize, measure, and manage word-of-mouth advertising campaigns. It recommends focusing on multi-brand organizations as prime prospects and provides a 2-year action plan that includes launching "Bzz" media outlets, conducting exit surveys, and offering discounted pricing to repeat clients. Financial projections estimate incremental revenue growth from $24 million in 2008 to over $51 million in 2012 under a moderate pricing strategy.
3. Recommendations
• Prime Prospects: Current clients who
are multi-brand organizations
• Value Proposition: Effective and
measurable WOM
• 2 Year Action Plan:
• “Bzz” media outlets
• Control market comparisons and exit surveys
• Discount pricing for repeat clients
4. Issues
• Low credibility of WOM industry
• Competition with dominant substitutes
• ROI measurement needs improvement
• Shrinking marketing budgets
• Uncertainty of core competence
• Transparency as a liability
• BeeLog vs. Twitter
Issues Status & Analysis Marketing Strategy Financials
5. Current Status
10/08
Create
07/07
Facebook
Launch 02/09
Frogpond App Join Twitter
06/08 11/08
Partner Discontinue
with BeeLog
MyPoints
Sources accessed on 3/13/09 : http://blog.bzzagent.com
http://mashable.com/2007/07/22/bzzagent-frogpond
http://www.gather.com/viewArticle.jsp?articleId=281474977366162
http://www.bzzagent.com
Issues Status & Analysis Marketing Strategy Financials
6. Analysis - SWOT
Strengths Weaknesses
• Vast network of loyal • Credibility of WOM
BzzAgents • Poor CPM
• Creative marketing strategy • Uncertain of core competence
Opportunities Threats
• Synergies of interactive web- • Economic recession
tools • Competitors
• ROI of WOM (cost:time ratio) • Transparency
Issues Status & Analysis Marketing Strategy Financials
7. Analysis - Industry
Suppliers
Buyers Substitutes
Rivals Entrants
Issues Status & Analysis Marketing Strategy Financials
8. Core Competence
Leveraging a vast network of loyal
BzzAgents to organize, measure, and
manage word-of-mouth advertising
Issues Status & Analysis Marketing Strategy Financials
9. Alternatives
• Emphasizing clients’ databases
• Resurrect BeeLog… again
• No transparency through social
network media
Issues Status & Analysis Marketing Strategy Financials
10. Target Clients
Brands & Advertising
Agencies
Current Clients
Multi-brand
Organizations
Issues Status & Analysis Marketing Strategy Financials
11. Target Clients
• Prime Prospects: Multi-brand organizations (MBOs)
• Biggest Repeat Clients:
P&G, Unilever, and Kraft
• Other MBO Clients:
Bacardi, Hershey’s, Jim Beam, Sara Lee, Kellogg’s,
Nestle, Sony
Source: Carla Eberle, Marketing Communications Manager. Conversation 3/13/09
Issues Status & Analysis Marketing Strategy Financials
12. Value Proposition
• Effective WOM marketing campaigns
• Longer time engagement
• Better quality of time engaged
• Provide measurable ROI
• Control market
• Cost:Time Ratio ($/min.)
Issues Status & Analysis Marketing Strategy Financials
13. Value Proposition
Media Time Per Impression Cost: Time
Engaged Cost Ratio ($/min)
Radio 0:30 $0.013 $0.03
TV 0:30 $0.020 $0.04
Mobile Web 0:10 $0.035 $0.21
Direct Mail 1:00 $1.000 $1.00
WOM 6:18 $0.300 $0.05
Source: http://www.bzzagent.com/downloads/BzzAgent_Paper_Three_WOM_and_Time.pdf. Accessed on 3/13/09
Issues Status & Analysis Marketing Strategy Financials
14. Value Proposition
Time Engaged with Media Impression
WOM 6.18
0.10
Mobile Web
Direct Mail 1.00
0.30
TV
Radio 0.30
0 1 2 3 4 5 6 7
Minutes
Source: http://www.bzzagent.com/downloads/BzzAgent_Paper_Three_WOM_and_Time.pdf. Accessed on 3/13/09
Issues Status & Analysis Marketing Strategy Financials
15. Value Proposition
WOM Communication Dividend
1
0.8
0.6
0.4
0.2
-0.49 0.87 0.38
$0
Cost per Value per Communication
-0.2
Communication Communication Dividend
-0.4
-0.6
http://www.bzzagent.com/downloads/BzzAgent_Paper_Four_Communication_Dividend.pdf. Accessed on 3/13/09
Issues Status & Analysis Marketing Strategy Financials
16. Marketing Strategy
Transactional
Brand Building Relationship Building
Issues Status & Analysis Marketing Strategy Financials
17. 2 Year Action Plan
• Brand Building
• “Bzz” media outlets (Swarm!)
• Develop Twitter and other online social
network media
• Marketing publications and journals
Issues Status & Analysis Marketing Strategy Financials
18. 2 Year Action Plan
• Relationship Building
• New reach and ROI quantifications
• Utilize past case studies
• Offer control market research as
product add-on
• Exit surveys
Issues Status & Analysis Marketing Strategy Financials
20. Timeline 2009-10
2009 2010
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Social Network Media
Marketing Journals
Swarm! Media
Contact Prime Prospects
Discount Pricing
Client Swarm!
Issues Status & Analysis Marketing Strategy Financials
21. Swarm!
• Improv Everywhere
• January 26, 2008
• Grand Central Station, NYC
• 200 Agents
• 2:30 to 2:35 PM
Source: http://improveverywhere.com/2008/01/31/frozen-grand-central/. Accessed on 3/13/09
Issues Status & Analysis Marketing Strategy Financials
22. Swarm!
• New York Times
• Rolling Stone
• New York Daily News
• The Today Show
• Nightline
• VH1
• Good Morning America
Source: http://www.youtube.com/watch?v=jwMj3PJDxuo. Accessed on 3/13/09
Issues Status & Analysis Marketing Strategy Financials
23. Swarm!
• BzzAgent is its own client
• 2000 BzzAgents equipped
with BzzUmbrellas
• Supplement with
BzzCampaign
• National exposure for both
BzzAgent and WOM
marketing
Source: Google Maps. Accessed on 3/14/09
Issues Status & Analysis Marketing Strategy Financials
24. Swarm!
• For top clients
• No more than 1 a year
• Reserved for launch of products that BzzAgent
believes in
• Supplement Swarm! with BzzCampaign to generate
national exposure
• Synergy between BzzAgent.com and YouTube,
Facebook, Twitter, etc.
Issues Status & Analysis Marketing Strategy Financials
25. Challenges
• Coordination of location for BzzAgents
• Unpredictability of weather
• Capturing interest of Wall Street Journal writers
• A natural adaptation of a product launch to a
Swarm! strategy
Issues Status & Analysis Marketing Strategy Financials
26. Financials
• Assumptions:
• ~80 BzzCampaigns in 2008
• $300,000 average revenue per
BzzCampaign
• Growth and “pricing tier”
distribution assumptions: refer to
handout
Source: Carla Eberle, Marketing Communications Manager. Conversation 3/13/09
Issues Status & Analysis Marketing Strategy Financials
29. Financials
Sensitivity Analysis: Incremental Revenues ($ mil)
100
90
80
70
60
Most Likely
50
Worst Case
40
Best Case
30
20
10
0
2008 2009 2010 2011 2012 2013 2014
Issues Status & Analysis Marketing Strategy Financials
30. Review
• Prime Prospects: Current clients who
are multi-brand organizations
• Value Proposition: Effective and
measurable WOM
• 2 Year Action Plan:
• “Bzz” media outlets
• Control market comparisons and exit surveys
• Discount pricing for repeat clients
33. Analysis - Industry
• Supplier:
• A company which supplies parts or services
to another company (source: www.investorwords.com)
• Facebook, Twitter, YouTube
• Limited power
34. Analysis - Industry
• Substitutes:
• Different goods that, at least partly, satisfy
the same needs of the consumers and,
therefore, can be used to replace one
another (source: www.businessdictionary.com)
• TV ads, printed ads, etc.
• Power derived from long-term domination
over the market
35. Analysis - Industry
• Buyers:
• Professional purchaser specializing in a
specific group of materials, goods, or
services (source: www.businessdictionary.com)
• Consumer goods companies
• Risk-averse and price sensitive
36. Analysis - Industry
• Barriers to Entry:
• Economic, procedural, regulatory, or
technological factors that obstruct or
restrict entry of new firms into an industry
or market (source: www.businessdictionary.com)
• Anyone
• Network of 500,000 BzzAgents provide
leverage
37. Analysis - Industry
• Competitors:
• In business, a company in the same industry
or a similar industry which offers a similar
product or service (source: www.businessdictionary.com)
• Wombeat, Vocalpoint
• Current competitors suffer from limitation in
their database (regional limitation, age
limitation, etc.)
