Direct marketing & sales promotion

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Assignment 3   Direct Marketing     Instructor: Baber Khairi  CBM         Due: August 18th, 2002      Summer 2002                      

Instructions: This assignment must be single spaced, with Arial narrow font or Helvetica font (12pts) and not more than six pages long, excluding attachments such as cover letter, sales materials, invitations and any other material. Use spell check and do not use the term “etc” in any part of the paper (i.e.: state exactly what you mean). It must be handed in by the due date as late assignments are unacceptable. All assignments are mandatory. Remember to write your name on the cover sheet of the assignment, along with your roll number, the due date, the semester/year and the course title. Use the KISS rule and you may work in a group of up to four persons.

You are to make out a Direct Marketing campaign using data-mining and CRM. Capitol Tea (pvt.) Ltd is a new FMCG company established by your instructor in his spare time - mainly as a topic for his M. Phil thesis. As initial paid up capital was Rs53,000 (+ brains), the main marketing tool used was direct selling followed by sales promotion and direct mail. Now with sales rising fast and breakeven already accomplished, the company needs to undertake an exercise in data-mining to search for new opportunities that will allow it to avoid bumping into the tea giants of Lipton and Tapal. Each one of you will be given a CD with data and a database to work with. You may work alone but are encouraged to work in a team of 3 to 4 persons with at least one person having math skills (for Statistics). The group that does the best ‘A’ class assignment will be awarded a commendation with a cash prize of Rs15,000. If no group is found to meet this standard a runner up prize of Rs5,000 will be awarded to the best B+ quality assignment and the B+ grade turned into an ‘A’ grade. All groups must give presentations on this assignment. Go for it!

To do so, you will need to:

  1. Identify your target market through precise segmentation
  2. State your objectives
  3. Carry out a SWOT analysis
  4. State your vision for the campaign
  5. Use Direct mail with at least one response  tool
  6. You have campaign funds of Rs1million
  7. You must make out a campaign budget with a schedule
  8. Your campaign may last a maximum of 5weeks
  9. You are encouraged to use Infomercials
  10. Generate your data needs
  11. Carry out the LTVA on your target market
  12. Use either cross or tie-in promotions and up to 4 sales promotion tools
  13. Do not use advertising unless it is Direct advertising
  14. Give a short summary and jot down the main features/points
  15. Have a contingency plan ready to act on

You may want to visit the Capitol Tea website at www.capitol.com.pk. You should try to be as creative as you can be.  But make sure that creativity does not get in the way of assignment delivery or of hard core analysis. Use psychology and any other statistical or management science tools (e.g.: PERT, EOQ, MRP, SCM, ERP applications etc) if you want to but make it relevant. Above all, make it happen. This assignment carries 15% of your grade.  Questions/ concerns? Mail your instructor at [email protected]