Build a Brighter Future

Marketing Plan

2012

CONTENTS
3 Executive Summary 4 Habitat for Humanity International Greater Los Angeles 4 Competitive Analysis Goodwill Industries International Inc. The Salvation Army National Corporation 5 Industry Analysis 6 Consumer Analysis Disbelievers Passivists Emotionalists Advocates Activists 7 ReStore SWOT Analysis Strengths Weaknesses Opportunities Threats 8-11 Advocates Positioning Strategy Campaign Strategy Message Strategy Media Strategy Schedule Budget Allocation Vehicle Selection 12-14 Passivists Campaign Strategy Media Strategy Schedule Budget Allocation Vehicle Selection 15 Campaign Management Evaluation of Effectiveness 15 Return on Investment 16 References

CREDITS

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Executive Director Jeremy Dunbar Editor-in-Chief Huong Chau Editors Aniss Faqir Sara Jacobson

President Tory Listberger Executive Board Eric Asence Elizabeth Aroyan Shannon Kula Jennifer Nguyen Andy Pham Amber Santos

Industry 241 was created by the California State University, Long Beach collegiate chapter of the American Marketing Association as a student-run marketing consulting agency to promote professional development and team-building skills. Our mission is to enhance the learning experience beyond the classroom by providing students the opportunity to solve real-world problems for small businesses and nonprofit organizations.

Habitat for Humanity | Greater Los Angeles | Build a Brighter Future Marketing Plan 2012

EXECUTIVE SUMMARY
Primary Target Market Campaign Strategy Message Design Media Strategy Vehicle Selection Advocates Create an association between donating items and providing safe homes for children. Storytelling and sad images to create sympathy Pulsing schedule; heavy advertising periods: spring cleaning, Thanksgiving, and Christmas Out-of-Home - Billboards; Bus shelters; Door hangers Place-Based - Reusable bags Broadcast Media/Webcasting - Celebrity endorsement Internet - Google Grants/AdWords; Facebook Events - Farmers markets; Street fairs; Concert series

Secondary Target Market Campaign Strategy Media Strategy Vehicle Selection

Passivists Microtarget people and locations relevant to items being bought, sold, or moved. Pulsing schedule; heavy advertising periods: spring cleaning and summer Out-of-Home - Sidewalk signs Place-Based media - Collateral materials Print media - Newspaper Direct-Response - Garage/Yard Sales; Estate Sales Partnerships - College Hunks Internet - Online Classifieds; Company Website

HABITAT FOR HUMANITY

International Habitat for Humanity International is a nonprofit, ecumenical Christian organization founded in 1976 by Millard and Linda Fuller in Americus, Georgia. Its mission is to eliminate substandard housing and homelessness worldwide.1 In 1986, Habitat for Humanity affiliates in North America began selling their surplus building materials at Habitat for Humanity Home Improvement Stores. The proceeds of the donation-based resale outletsnow called ReStorehelp affiliates fund the construction of homes within their communities. There are more than 700 ReStore resale outlets total in the United States and Canada (D. McKechnie, personal communication, July 28, 2011). The Habitat for Humanity of Greater Los Angeles (HFH GLA) affiliate was founded in 1990. It has built and renovated more than 350 homes locally and plans to build 250 homes from 2012 to 2014. In 2004, HFH GLA opened its first ReStore in Gardena, California and its second location in Norwalk, California in 2009.2 Due to the recession, thrift shopping has become a trend, and the sales of HFH GLA ReStore outlets have been steadily growing. However, as store traffic rises, there is a greater need for donations to replenish inventory. There has been a shift in the source of HFH GLAs donated home improvement goods from residents to commercial businesses. Residents are no longer renovating their homes nor are they replacing their furnishings and appliances, so they have less and lower quality items to offer; businesses are shutting down or halting expansion and donating their surplus and unused items. HFH GLA has to reach out and motivate residents to increase donations of home improvement goods so it will be able to meet its financial goals and continue its mission to build safe and affordable housing. Goal: $3 million in sales of donations through ReStore outlets.

Greater Los Angeles

Decline in Donations

COMPETITIVE ANALYSIS
The following are the two most well known nonprofit organizations in the Used Goods Stores industry in the United States. Goodwill Industries International Inc. is a nonprofit organization that provides job training, employment placement services, and other community-based programs for people who have a disability, lack education or job experience, or face employment challenges. Goodwill Industries International Inc. operates over 2,400 thrift stores, which sell clothing, shoes, books, and other goods. Goodwills North American retail sales grew 8% from previous year to $2.42 billion in 2009, which accounts for 65% of Goodwills total revenue of $3.7 billion. Goodwill Industries also operates an online auction website at Shopgoodwill.org, which sources products from donations and auctions them online. Today, 131 Goodwill agencies are registered to sell items on the website, which hosts roughly 32,000 goods at any given time.3 The Salvation Army National Corporation is an evangelical church that provides faithbased programs to assist alcoholics, drug addicts, the homeless, the handicapped, the elderly, prison inmates, and more. The Salvation Army operates 1,360 thrift stores called Salvation Army Family Stores, which sell clothing, furniture, household goods, sporting equipment, books, electronics, and other goods.4

Habitat for Humanity | Greater Los Angeles | Build a Brighter Future Marketing Plan 2012

INDUSTRY ANALYSIS
The Used Goods Stores industrys revenue in the United States is expected to decline at an average annual rate of 1.4% from 2012 to 2016 to total $13.7 billion. As the economy recovers, external competition is expected to rise, as families will seek new items rather than used. As a response, used goods stores are expected to become more specialized in high quality but lower-priced used merchandise, like designer brand clothing and antique furniture.5 The furniture segment is expected to represent 14% of the industry sales in 2011, and the kitchenware and home furnishings segment accounts for about 10%. The US recession has reduced consumer spending on expensive discretionary household items such as outdoor furniture, patio furniture, and decorative home fixtures. However, an increase in consumers purchasing household necessities such as beds, sofas, pots, and pans has helped stabilize the decline in discretionary spending. The anticipated economic recovery from 2012 to 2016 is expected to shrink this segment as consumers shop for new furniture and kitchenware rather than used. However, a moderate increase in discretionary income may result in growth of this segment, as Americans will be more inclined to purchase traditionally expensive furniture at lower prices.6

Source: IBIS World

CONSUMER ANALYSIS
Cone Inc., a strategy and communications agency, has created the following spectrum of socially responsible consumers.7 Disbelievers Passivists Emotionalists Advocates Typically female Ages 35 and above Most willing to invest their own time and money to serve as champions for a companys cause and overall responsibility efforts Male and female Ages 35-54 Most socially engaged lifestyle May be less willing than other consumer segments to look to companies to provide them with outlets for learning about or supporting causes Typically female Ages 18-35 Most likely to cite emotional incentives as the primary motivation behind their support of a companys cause efforts Typically male Higher household income Do not believe they have the ability to impact societal issues May support a companys cause program if it is personally relevant and if there is a functional dual benefit Typically male Ages 55-64 Skeptical of corporate cause marketing Likely to seek more traditional involvement in issues

Activists

Habitat for Humanity | Greater Los Angeles | Build a Brighter Future Marketing Plan 2012

ReStore SWOT ANALYSIS

Strengths Weaknesses Opportunities Threats Key Problem Economic recession Competitors Decline in loyalty to brands Donated/free advertising New partnerships Legal and social shift toward environmentalism ReStore is not a well-known brand Relatively strict donation guidelines Insufficient amount of pick-up vehicles Unorganized website Linked with well-known brand, Habitat for Humanity Mission/cause generally viewed as respectable Well-known sponsors, partners, and endorsers Customer awareness

Although Habitat for Humanity is very well known for its construction of homes, people are unaware of ReStore and think of Goodwill Industries and The Salvation Army when donating goods.

KEY STRATEGIC DECISIONS Objectives Target Audience Primary Advocates These females ages 35+ have careers and own homes. They are able and willing to invest their own time and money to support causes and make donations. Passivists These males with higher household incomes are willing to donate home improvement goods if it provides the dual benefit of removing unwanted items in a cheap and timely manner. Increase donations of home improvement goods Increase donor awareness of ReStore

Secondary

Primary Target Market (Advocates)

Positioning Strategy Build a Brighter Future Habitat for Humanity helps children by giving families a safe place to live, while Goodwill Industries and The Salvation Army mostly help adults. Campaign Strategy Build awareness of the effects of inadequate housing on children. Reinforce Habitat for Humanitys mission to end inadequate housing. Explain how ReStore supports Habitat for Humanitys mission. Use emotional appeal to stimulate behavior to donate to ReStore.

MESSAGE STRATEGY
Consumer Insights Individuals in lower socio-economic classes tend to act in a more pro-social fashion because of a greater commitment to egalitarian values and heightened feelings of compassion for others.8 Emotional response is more powerful than cognition in predicting action.9 Personal stories, which focus exclusively on an individuals plight and not that of other victims, is much more likely to generate charitable donations than more dispassionate descriptions of unnamed statistical victims.10 Photos of sad facial expressions work best to stimulate giving because observers feel the pain of the person depicted. This stimulates sympathy, thus donations to the organization that promise to help such an individual. However, an intensely sad image could instead evoke a feeling of helplessness. 11

Message Design Tell stories about children and the physical, social, and emotional effects caused by inadequate housing to help donors associate homes with more than just a physical building. Use images of sad children to negate any stigma towards helping homeless people who choose to live on the street. Even if the misconception that Habitat for Humanity gives away free houses were true, children do not make that choice and are born into the income of their parents.

Habitat for Humanity | Greater Los Angeles | Build a Brighter Future Marketing Plan 2012

MEDIA STRATEGY
Schedule The yearlong campaign will begin in January 2012 to provide lead-time before spring cleaning. A pulsing schedule will be used with a continuous low advertising level all year round and heavy advertising during peak giving/selling periods: spring cleaning, Thanksgiving, and Christmas.

Budget Allocation

5%

Out-of-Home 44% 37% Place-Based Broadcast/Webcasting Internet Events

7%

7%

VEHICLE SELECTION Out-of-Home Media Billboards Outdoor advertising will spread awareness of the message and campaign while intersecting the target audience during their daily routine. Clear Channel Communications, Inc. donates select billboards to HFH GLA. Because of the very short time consumers are normally exposed to a traditional billboard message, typically, three to five seconds, the visual must have stopping power. This results in the need for shorter outdoor ad copynormally 8 to 10 wordsto create an effective message.12 Clear Channel Communications, Inc. also donates select bus shelters to HFH GLA. Although these should have visual stopping power similar to billboards, more information can be displayed because of the waiting period required before the bus arrives. Door hangers are usually placed at the adjacent houses of recent donors; however, new versions will need to be created to emphasize the campaign on one side and the need for donations on the other. Included on the door hanger is a list of what is needed and a three-step easy process, rather than sales promotions for customers.

Bus Shelters

Door Hangers

Place-Based Media

Based on the daily routines and behaviors of women, we recommend placements in grocery stores and mall/retail centers to reach advocates (typically female). The messages would need to be specially tailored to these environments. There have been recent bans of plastic bags in the Los Angeles area, and customers now have to bring their own reusable bag or pay for recycled paper bags. Giving HFH GLA ReStore branded reusable bags to donors at no charge creates an incentive to donate and is consistent with the sustainable practices of Habitat for Humanity. When advocates use the bags in grocery stores and other mall/retail centers, they are increasing awareness of others members of the target audience. There are also bagsharing projects, such as the Share A Bag Program in Santa Monica, with drop-off points where bags are donated and borrowed.13 Strategically placing bags in these locations increases awareness more quickly and efficiently because a single bag can transfer between multiple people.

Reusable Bags

Broadcast Media/Webcasting

Celebrity Endorsement
When consumers were asked about nonprofit marketing elements that catch their attention, 61% cited the involvement of a celebrity or other notable spokesperson.15 Source: Cone, Inc.

Ed Begley Jr. is an actor and currently a spokesperson for HFH GLA ReStore, where he sells his own cleaning products. Although Ed has attended various events, he has not created a fully produced endorsement or commercial. His ability to speak clearly in front of a camera is beneficial when creating a commercial or donated public service announcement. He can tell stories of children who live in inadequate housing and bring focus to the need for home improvement goods. If public television is not able to donate time, then this video could be used on YouTube and other online websites.

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Habitat for Humanity | Greater Los Angeles | Build a Brighter Future Marketing Plan 2012 Internet Google Grants/ AdWords Advocates are curious and are more likely to use the Internet to learn about causes and the details of a companys efforts, as well as to enlist the support of their social networks.7 Google Grants is an in-kind donation program that helps nonprofit organizations promote their websites via free advertising on Google called AdWords. When Google users search keywords related to the organization, the ad appears under the Sponsored Links sections, and users are directed to the website being advertised if they click on it. The more specific the ad text and keywords, the increased chance of attracting users interested in learning more about the organization. Nonprofit organizations that qualify are also given other Google resources, such as a YouTube channel listing on the Nonprofit channel and the Nonprofit videos pages.18 Advertising on Facebook allows a business to specifically target people by location, age, likes, and more. Because it is important that users click through to the HFH GLA website, cost-per-click (CPC) is the preferred method of payment where HFH GLA is only charged when users click on the ad. To be cost effective and reach advocates, the ad should target Los Angeles, California and cities within 50 miles, ages 35+, women, and those who like charity/causesan estimated reach of 220,160.19 The Habitat for Humanity logo is easily recognizable and trusted by many, so it should be used as the image, and the message should be focused on donating. Participating in local events builds awareness and trust, and influences residents to become more active in their community. Farmers markets are usually weekly in various cities and are local events. If HFH GLA is able to become a vendor, it can show its presence within the community and gain local support. Besides information about donating to ReStore, promotional and useful items, such as the reusable bag, could be given out and/or sold. Street fairs are also local events where HFH GLA could become a vendor. The Sherman Oaks Street Fair is an annual event where over 80,000 people attend. Booth prices for nonprofit organizations begin at $200. Free concerts in parks are common in Los Angeles and bring local residents out. HFH GLA could have its own booth setup with a branded banner. If not able to sponsor an entire concert, a HFH GLA representative may speak before a concert or during an intermission.

Facebook Advertising

Events Farmers Markets

Street Fairs

Concert Series

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Secondary Target Market (Passivists)

Campaign Strategy Microtarget people and locations relevant to items being bought, sold, or moved. Present ReStore as a solution to remove unwanted items. Use rational appeal to stimulate behavior to donate.

MEDIA STRATEGY
Schedule The yearlong campaign will begin in January 2012 to provide lead-time before spring cleaning. A pulsing schedule will be used with a continuous low advertising level all year round and heavy advertising during peak cleaning/moving periods: spring cleaning and summer (student graduation/transfer).

Budget Allocation

8% 22% 12% Out-of-Home Place-Based 8% Print Direct-Response Internet

50%

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Habitat for Humanity | Greater Los Angeles | Build a Brighter Future Marketing Plan 2012 VEHICLE SELECTION Out-of-Home Media Sidewalk Signs A sandwich board placed near the sidewalk of the two ReStore outlets will gain the attention of people walking and driving by, and the large text will state the clear need for donations. It will also serve as a landmark for donors to see where the store is. Based on the rational nature of passivists, we recommend placements in locations relating to home improvement goods being bought, sold, or moved. The messages would need to be specially tailored to these environments. There are various locations to place brochures and other informational material about the removal of unwanted items, such as furniture stores, appliance stores, and other retail outlets. Also, Realogy has two real estate branches that sponsor Habitat for Humanity: Century 21 and Coldwell Banker. As people move to a new home, they usually clean up, and real estate agents could provide a list of moving tips including donating to ReStore.

Place-Based Media

Collateral Materials

Print Media Newspapers Readers of the Los Angeles Times newspaper are affluent and educated homeowners with the means to travel and shop, families with children, a growing Hispanic audience with buying power, savvy online users, and young stylish trendsetters. West Zone Print Product Reaches Westside, Beach Cities, and Central City areas Daily readership of 1.2 million and daily circulation of 400,000+16 Saturday Home Section The weekend destination for homeowners, home buyers, and decorators Ideal for advertising home improvement, home furnishings, and home repair Business Section Reaches commercial donors Ideal for business opportunities, home improvement, real estate, and electronics17

A single ad in the Los Angeles Times reaches more people than running an ad during both morning and evening times on the top 20 radio stations in Los Angeles.16
Source: Scarborough Los Angeles 2009 Release 2 (Los Angeles DMA)

Direct-Response Marketing Targeting addresses holding garage/yard sales and estate sales provides a more successful, less wasteful, and less intrusive option than bulk mail. Garage/Yard Sales and Estate Sales Those who have garage/yard sales and estate sales may not sell everything and do not want to put items back into storage. A postcard specifically for these sales can be sent directly to the addresses, which are made public in newspapers (print and online), PennySaverUSA, and Craigslist. It would explain how HFH GLA offers a solution to remove the unsold items by making a donation and receiving a tax deduction for doing so.

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Partnerships College Hunks Currently, HFH GLA only has four trucks for donation pick-ups. There has been a recent partnership development between College Hunks and Habitat for Humanity ReStore. The HFH GLA pickups are usually booked 5-10 days out, so College Hunks would charge a charity discount rate to donors to pick up their items sooner. They also take items that HFH GLA cannot sell, so this provides a better experience for the donor, as none of their items will get rejected and HFH GLA will not appear as ungrateful. In addition, ReStores logo will be featured on College Hunks website next to Salvation Army and Goodwill, which will increase awareness.

Internet Online Classifieds Craigslist offers free online classified advertisements specific to geographical regions. Craigslist does not allow posting under multiple cities, so it would be most beneficial to target classifieds in Los Angeles, California. Many people sell their unwanted household items in the for sale/wanted section of Craigslist, and there are also items being given away in the free section. The sellers can be contacted directly, and they may want to make a donation. Posting an ad in the wanted section is a less intrusive method for retrieving donations. Posts may include text above or below a group of images, but a more professional approach involves uploading image files that include pictures and text together in an attractive layout with customized fonts. PennySaverUSA, YellowPages, and Yellowbook online also allow businesses to create posts at no charge. The public can search for products and services specific to their need and location. Before creating an inflow of interest, the website needs to be made more user-friendly and provide easy navigation to the home improvement goods donations webpage. When visitors are met with a difficult or confusing donation process, they are more likely to give up. Emphasizing the ease of process will encourage repeat donors and word-of-mouth. Currently there are two places where users can visibly navigate to a section of the website about donating. Once led to the Donate section, there is one tab relevant to donating home improvement goodsIn-Kind Donations, a phrase that is not common within the general public. The detailed information about donations to ReStore should also be added to this section, which could be renamed to Donate Goods. Asking the potential donor to call or copy and paste the email address into their email application is asking an extra favor. By creating a contact form at the bottom of the page, the donation coordinator will receive all the information necessary to process donations, and the option to upload a picture of the items would help screen donations before any confusion or disappointment is caused during a scheduled pickup.

Company Website

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Habitat for Humanity | Greater Los Angeles | Build a Brighter Future Marketing Plan 2012

CAMPAIGN MANAGEMENT
Evaluation of effectiveness 1. Click-through rate 2. Buzz on news/social media 3. Interaction: @mentions, likes, posts 4. Unique phone numbers or URLs that redirect to the same information or webpage for each medium could be used to track hits. 5. From within your AdWords account, the performance statistics of the ad campaigns can be reviewed. You will be able to view the number of times your ad was viewed, the number of clicks to the ad, etc. This helps make strategic decisions on how to expand the account, as well as what poorly performing keywords and ad text to tweak.18 Social Media Foursquare, Google Places, and Yelp allow businesses to claim their posting. Previous customers/donors are able to provide feedback by rating and reviewing businesses. Positive reviews will help increase word-of-mouth. A post-donation survey would help measure and evaluate which marketing tools were most effective in causing people to donate their home improvement goods. The successful tools could be reused and the unsuccessful tools adjusted or removed for the next campaign. To save money on postage and ensure responses, the pick-up truck driver can ask the donor to take the brief survey before hauling the donations back to ReStore.

Survey

RETURN ON INVESTMENT
The following is the projected return on investment. Three percent of the estimated reach was used to predict the amount of donors created through advertising, and an amount of $20 was placed on each donor, as the average resale value of their home improvement goods.

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REFERENCES 1. Habitat for Humanity Fact Sheet (Frequently Asked Questions). Habitat for Humanity International. Retrieved September 1, 2011, from habitat.org/how/factsheet.aspx

2. History. Habitat for Humanity Greater LA. Retrieved September 1, 2011, from habitatla.org/aboutus/about-hfh-gla/history 3. Shim, Janet. (2011, July). Used Goods Stores in the US. IBISWorld database. Retrieved September 1, 2011. p. 23. 4. ibid., p. 25. 5. ibid., p. 5. 6. ibid., 14. 7. Past. Present. Future. The 25th Anniversary of Cause Marketing. Cone, Inc. Retrieved September 1, 2011, from coneinc.com/research/archive.php. p. 33-37. 8. Flynn, Frank. (2011, June). Those with Less Give More. Stanford Graduate School of Business. Retrieved September 1, 2011, from csi.gsb.stanford.edu/those-less-give-more 9. Moriarty, S., Mitchell, N., & Wells, W. (2008). Advertising: principles & practice. Upper Saddle River, NJ: Prentice Hall. ISBN 9780132224154. p. 113. 10. Small, Deborah A. (2007, March). "Sympathy and Callousness: The Impact of Deliberative Thought on Donations to Identifiable and Statistical Victims." Stanford Graduate School of Business. Retrieved September 1, 2011, from csi.gsb.stanford.edu/increase-charitable-donations-appeal-heart 11. Flynn, Frank. (2010). Getting People to Give And Give Generously. Stanford Graduate School of Business. Retrieved September 1, 2011, from csi.gsb.stanford.edu/getting-people-give--and-givegenerously 12. Moriarty, op. cit., p. 245. 13. Share a Bag Program. Santa Monica Office of Sustainability and the Environment. Retrieved September 1, 2011, from smgov.net/Departments/OSE/Business/Share_a_Bag_Program.aspx 14. Moriarty, op. cit., p. 302. 15. 2010 Cone Nonprofit Marketing Trend Tracker. Cone, Inc. Retrieved September 1, 2011, from coneinc.com/research/archive.php. p. 33-37. 16. Advertising Reach. Los Angeles Times. Retrieved September 1, 2011, from latimes.com/advertiser/advertising-reach 17. Home Advertising Category. Los Angeles Times. Retrieved September 1, 2011, from latimes.com/advertiser/category/home 18. Google Grants: In-Kind advertising for non-profit organizations. Google. Retrieved September 1, 2011, from google.com/grants/index.html 19. Advertise on Facebook. Facebook. Retrieved September 1, 2011, from facebook.com/ads/create

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