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SOCIAL MEDIA STRATEGY

TABLE OF CONTENT

Situation Analysis............................................................. 1

Current and Past Advertising Efforts.............................. 3

Current Social Media Trends.......................................... 4

How to Measure ROI....................................................... 5

Critical Factor................................................................... 7

Recommendations........................................................... 8
Situation Analysis

Company Background
Method was founded in 2000 by two guys in a basement. Their
business, they decided, was to change business by making new
kinds of soaps and detergents: the kind that save precious resources
like water, and save their costumers some extra money. They also
decided to change packaging and traditional forms of containers.
The pair wanted something altogether new: a simpler way of
looking at the cleaning task. Coming up in a time where the green
movement was gaining momentum and new kinds of portals like
Myspace and Facebook were created, the team made the right
choice in developing their brand with social media outlets.

Target Market
• Young “Influencers”
• Progressive Domestics
• Clean Freaks
• Green Freaks
• People Against Dirty
This niche market contains a younger female who wants a “good
clean.” This target views their home as a refuge and wants it clean
in an all natural way. Some are concerned with various toxins in
cleaning products; others just want to know their goods are truly
natural. Method heeds the wants and needs of its target consumer
by using 35% recyclable plastic, and using biodegradable chemicals
for its products.

The target audience is hardcore. But, Method labels their audience


as “Hip, Not Hippie.” They range from people who live their lives by
the green movement to those who want to do everything just right
for their newborn babies. Evidence from the People Against
Dirty Facebook fan page suggests they wish to incorporate Method
into every aspect of their lives: soaps, detergents, shampoos, air
care, etc.

These go-greeners bounce ideas off of one another and grow in


number every day. They depend on the support of and suggestions
from the other members in making purchase decisions. This is
why providing them with a social media platform is vital to
Method’s success.
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Availability of Product: Store Locations
• Babies R Us
• Bed Bath & Beyond
• Costco
• Farm Fresh
• Lowe’s
• Safeway
• Staples
• Target
• Toys R Us
• Whole Foods

Availability of Product: Geographic Locations


• United States
• Canada
• England
• Australia
• France
• Japan

Competitors Participation in Social Media:


DAWN’s social media is centered on Facebook. In particular the
EverydayWildlife Champions Campaign, boasting 272,703 fans.
This campaign centers on the cause and not the product. Dawn
doesn’t interact with its consumers as frequently as Method
and Dawn’s overall social media presence is not up to par with
Method’s.

CLOROX GREEN WORKS focuses a large portion of its


campaigns on social media. Clorox Green writes a blog called
Shades of Green Journal, which distributes news about the
product and what’s new with “green.” They have a micro site and
Facebook pages aimed at causes. Clorox also has a Twitter that
is updated frequently and employs the use of viral videos.

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Why is this important?

Since there is no clear cut way of measuring the “effect,” and thus, “value” of social media, it behooves Method
to look to the right and left to see where its direct and indirect competitors are online.

Current and Past Advertising Efforts

Method‘s past advertising efforts were marked primarily by word of mouth and relying on product placement in
Target stores. In 2007 Method launched the campaign “Detox Your Home.” Through the use of print ads, online
banners, search-engine marketing, and events, Method’s sales increased from $85 million in 2006 to $200 million
in 2009.

Method remarks that this year “marks our highest expenditures on advertising and marketing in the company’s
history.” With these high expenditures is the current advertising campaign “People Against Dirty.” This campaign
first began with an 18 page booklet insert describing their philosophy and sample offering. Method has now
expanded to using print ads in magazines such as Family Circle, People, and Real Simple, and digital media.
Moreover, Method is using what they describe as “earned media,” or social media such as a Facebook, Twitter,
blog, micro site and viral videos.

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Below is a breakdown of Method’s earned media sites.
• Facebook
Currently Method has a fan page with 13,703 fans. The site has involvement from the
customers with their questions about the brand and products, seeking of input of
customers from Method and new product information. Method is using Facebook as
a way to keep their target up to date on their products, promote their philosophy and
answer product questions.
• Twitter
Method is following 7,006 people and has 7,254 followers. Tweets are posted daily
informing followers of promotions, product news and ways to stay green. Method
followers are tweeting about Method and they are tweeting back.
• Blog
Method’s blog allows one to read about company news, products, environmental
happenings and style. From the blog website one has the option to subscribe or
sign up to be a part of People Against Dirty.

Current Social Media Trends

Most companies are currently using at least one form of social media. Twitter is the most popular
option followed by Facebook fan pages, YouTube channels and corporate blogs. However, not
many companies are using all of these social media platforms simultaneously.

One of the largest social media trends is the reality that power is in the hands of the consumer
rather than the company. Social media users realize this and expect companies to interact and
respond to their conversations. Furthermore, customers want companies to speak with them
rather than at them, in hopes of a more one-on-one feel.

Companies are not only looking for new ways to lure in their customers into their social media
networks, but also to increase social media participant’s activity. Many businesses are now using
social media rewards systems for their high involvement social media users. These users receive
rewards such as promotions and giveaways.

One of the largest impacts is the ability to access social media sites on smart phones. Many
companies have social media policies in the office and the sites have been banned. Therefore,
many employees are using their smart phones as a way to access social media during working
hours. Smart phones have also led the way of being able to make payments directly from
one’s phone.

A huge development in social media is the idea of group buying. Sites like Groupon and Living
Social are incredibly promoted on social media sites. Customers opt-in to these sites to receive
various promotional and sales deals.

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Social media will soon be integrated into overall marketing plans and budgets for many companies.
Many of these companies have seen that the deeper they go into social media the more expensive it
is. They are looking for ways to cut back on the costs of having to provide labor for social media and
discover more cost efficient ways to use social media platforms.

Currently some of the biggest problems facing social media are the tracking and success
measurement, the management of information and new ways to engage customers.

How to measure ROI of Social Media

Measuring return on investment in social media is difficult and leads to most companies simply not
doing it. There is a current lack of solid return on investment (ROI) information which has made many
companies question the use of social media. Due to the economic times, every cent of businesses
budgets, like Method, is being scrutinized. Therefore, the expenditures within social media are
feeling pressure to generate hard measurable sales. The problem is that most agencies and
companies have no concrete measurement for social media.

Currently, social media is measured in facts such as Facebook fans, twitter followers, traffic, and
comments. The KPI’s for social media are therefore more geared toward brand awareness, brand
conversation, and long-term relationships with consumers.

Ogilvy PR proposes using metrics such as reach and positioning, preference, and action to measure
social media ROI. These metrics call on the extensive use of analytics software, traditional research,
and measurable sales. Digital Footprint Index uses three dimensions: height, width, and depth.
Height represents the total amount of brand mentions, width represents consumer engagement, and
depth represents message saturation and sentiment.

There is not a metric that exists at the moment that can measure the ROI of social media directly.
This is because most of social media’s benefits and values are immeasurable. For those companies
that need a hard bottom line, the closest they can come is watching trends. For example, if sales rise
after a social media campaign and the pattern is significant then the sales may be attributed to the
social media.
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Matters
Matters

cialMediafrom
te Technologies

Also a growing number of agencies are using


TheVolumeofSocialMediaUsageisStaggering
coupons given out on Facebook to track how many
•• Morethan400millionactiveusers
•• 50%ofactiveuserslogontoFacebook inanygivenday
Facebook fans use the coupons to actually purchase
•• Morethan35millionusersupdatetheirstatuseachday
More than 35 million users update their status each day
•• Morethan60millionstatusupdatespostedeachday
the product or service. In addition tracking sales
•• Morethan3billionphotosuploadedtothesiteeachmonth made after visits to twitter or Facebook is possible
•• More
Morethan5billionpiecesofcontent(weblinks,newsstories,blogposts,notes,photoalbums,etc.)
than 5 billion pieces of content (web links news stories blog posts notes photo albums etc )
sharedeachweek and one of the best ways to show a tangible ROI.
•• Morethan3.5millioneventscreatedeachmonth
•• Morethan3millionactivePagesonFacebook
•• Morethan1.5millionlocalbusinesseshaveactivePagesonFacebook According to Shift communications there are also
•• Morethan20millionpeoplebecomefansofPageseachday
•• Pageshavecreatedmorethan5.3billionfans immeasurable benefits of social media: include the
•• Therearemorethan100millionactiveuserscurrentlyaccessingFacebook throughtheirmobile
devices. rapid share of information, widespread coverage,
•• PeoplethatuseFacebook ontheirmobiledevicesaretwicemoreactiveonFacebook thannonmobileusers.
•• There
Therearemorethan200mobileoperatorsin60countriesworkingtodeployandpromoteFacebook
are more than 200 mobile operators in 60 countries working to deploy and promote Facebook mobile
mobile enhancing brand awareness and image, and
products

*FromFacebook statistics:http://www.facebook.com/press/info.php?statistics on2/25/10


feedback from a specific target market.
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FansandFollowersSayTheyAreMoreLikelytoBuyand When a company is looking at how much money it


RecommendThanBefore has invested into social media, it must keep in mind
the benefits it is receiving. This balance cannot be
Facebook Twitter made with only quantitative measurements, but
Morelikely tobuyfromatleastonebrandssince
51% 67%
must be a mixture of both qualitative factors and
becoming a fan/ follower
becomingafan/follower
quantitative factors.
Morelikely torecommendatleastonebrandssince
60% 79%
becoming a fan/ follower
becomingafan/follower
How social media is used greatly influences how
successful it is. Companies must keep an active
WhileUseSkewsYounger,It’’sHardlyExclusive;Facebook
IsIncreasinglyReflectiveoftheGeneralOnlinePopulation presence, and engage consumers frequently.
FromCMBConsumerPulse20092010:500respondentswereFacebook fansofbrands,240areTwitterfollowers.
Companies who use social media correctly will see
Q5e: Areyoumorelikelytobuysincebecomingafan? Q5f: Areyoumorelikelytorecommendtoafriendsincebecominga
fan? Q6e: Areyoumorelikelytobuysincebecomingafollower? Q6f: Areyoumorelikelytorecommendtoafriendsince
becomingafollower? its benefits. According to Chadwick Martin Bailey, a
13 Percentagesreflectthesumofthosewhosaid““yes,forafewbrands““or““yes,formanybrands””
*PercentofUSrespondents whouseasiteatleastoncepermonth
market research and consulting firm, consumers who
SiteUsage 18to24 25to34 35to44 45to54 55to64 65andover
are engaged in social media with your company are
Facebook 86% 72% 64% 54% 50% 40%

Twitter 27% 16% 9% 9% 5% 4%


more likely to buy and recommend your products or
Myspace 28% 24% 14% 9% 4% 4% services because they feel as though an active social
Google 96% 95% 86% 84% 84% 82% media presence is a sign of a connected company.
Yahoo 57% 66% 68% 68% 58% 57%

ROI will continue to be an allusive measurement


TheVolumeofSocialMediaUsageisStaggering(continued) for social media due to the nature of the platform,
but as seen above there are a few options making
8 ••*FromCMBConsumerPulse20092010
Usersweretweeting5,000timesadayin2007.By2008,
thatnumberwas300,000,andby2009ithadgrownto headway that can accurately predict social
2 5 million per day
2.5millionperday.
•• Tweetsgrew1,400%lastyearto35millionperday.Today,weareseeing50 media’s ROI.
milliontweetsperday——that'sanaverageof600tweetspersecond.

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Critical Factors: Inception of Social Media, Niche Target Market, Brand’s History

Social Media is in its Childhood:


ADVANTAGE: (1) Great potential for online engagement. (2) No limitations on use or measure as
a media space; open for new methods and discoveries. (3) Movement from Desktop to Mobile. (4)
People are drawn to “causes.”

DISADVANTAGE: (1) No clear cut way to trace consumer-conversion rate. (2) Businesses are wary of
investing capital into media without having a profitable model to follow. (3) Cost in terms of human
resources and time invested. (4) Open to all content: good, bad, non-factual. (5) Highly-cluttered
space. (6) Potential for competitors to overpower Method.

Niche Target Market:


ADVANTAGE: (1) Buying power of a highly concentrated group is big. (2) It’s cheaper to retain an
existing customer than it is to buy a new one. (3) Grass-roots community “feel” creates interaction
with the brand.

DISADVANTAGE: (1) Smaller sales potential. (2) Missed opportunity in terms of brand expansion and
awareness. (3) Growth potential is inhibited.

Brand’s History:
ADVANTAGE: (1) Established fan/consumer presence on social media; direct communication with
the brand. (2) Availability of product with access to the Internet. (3) Established, loyal community on
various social media sites. (4) Sales have increased due to online Advertising efforts.

DISADVANTAGE: (1) Low brand awareness. (2) Past moral and legal issues involving Method’s viral
videos. (3) “Another” green company.(4) Unavailability of product at physical locations.

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Recommendations

After having had access to a highly interactive, communicative platform via multiple social media
websites, taking away the option of social media could potentially harm the brand and devalue
the opinions and emotions of Method’s exceptionally loyal fan base.

Most people who identify as “green” are very adamant about their initiative. This passion group
has great potential to be targeted through continued social media efforts.

This is a great platform to jump off of because there is a preexisting strong group following and a
strong collective base. As mentioned earlier, group buying is a hot trend. Method can capitalize
on this.

Keeping this in mind, Team Green recommends that Method continue its efforts in social media.

Here are our specific recommendations:


1. Coupons will be placed on social media websites that can be redeemed for purchase in-
store or online. The promotional code would be unique to each social media site and therefore
measure conversion rate.

2. Groupons: Making Method products available at a discount through Groupon will further
expand the awareness of the product through multiple markets throughout the nation. Method
can further advertise their efforts on Groupon through Tweets and posts via Facebook. The
buys on Groupon are measurable results because buyers have to opt in and the purchases are
easily tracked. With these results Method can bring in immediate revenue, while expanding their
audience base by providing a “Like” link on the Groupon site.

3. Method can supply specific links (bit.ly) through posts on Facebook and Tweets on Twitter
which will direct followers to specific new products’ purchase sites. Once here, the fans and
followers can learn more about the new products and make a purchase if they so desire. Further,
Method can also implement behavioral trackers which will provide further demographic and
behavioral information if the consumer comes back to the site at a later time to purchase
products. If the consumer does purchase a product the conversion can be directly correlated to
the links.

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Thank you for looking through our recommendations
for Method. Your time, money, and business are all
very much appreciated.

Stay green;
Team Green
Team Members

Dawson Griffith
Marissa Guerra
Manuel Hernandez
Elaine Hirsch
Anthony Hoang
Matt Kleineck