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McMaster Solar Car Project

McMaster Solar Car Project. Stephen Adams Marcus Baiano Susan Bunker Stephen Rettie Michael Willett. Group 805. Presentation Overview. Company History and Overview Marketing Milestones 4 P’s Target Market Marketing Problem Objectives and Goals Competitive Advantages and Disadvantages

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McMaster Solar Car Project

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  1. McMaster Solar Car Project Stephen Adams Marcus Baiano Susan Bunker Stephen Rettie Michael Willett Group 805

  2. Presentation Overview • Company History and Overview • Marketing Milestones • 4 P’s • Target Market • Marketing Problem • Objectives and Goals • Competitive Advantages and Disadvantages • Situational Analysis • Alternative Strategies • Recommended Strategy • Implementation

  3. Company History and Overview • Founded in 1998 by a small group of engineers • Fireball I completed during summer of 2001 • Entered in ASC ’01 • Currently 35 members working on Fireball II

  4. Marketing Milestones • Canadian National Auto Show • Earth Day Celebration • Santa Claus Parade • Annual Fireball Show Tour • Appearance on Canada A.M. • Received over $45,000 in sponsorship in 2002

  5. Product • Fireball II • Advertising service • Environmental image • Educational image

  6. Price • Goal of $200,000 • Monetary donation • Material donation

  7. Cash Donations

  8. Material Donations

  9. Place • McMaster University Campus • Stored at Intech International • Fireball Shows • Parades • Auto Shows • Environmental Events • Solar Challenges

  10. Promotion • $5,000 marketing budget • Canadian Auto Show • Solar Challenge 2001 • Fireball Show Tour • Website • Information Package

  11. Target Market • Environmentally conscious organizations • Educationally conscious organizations • Alumni

  12. Marketing Problem There is no marketing strategy in place to effectively and efficiently target potential sponsors to reach the goal of $200,000 by July 2003.

  13. Objective and Goals • Quantitative • Raise $200,000 through in-kind and monetary donations by February 2003 • Qualitative • Construct a solar-powered vehicle that will finish in the top ten of the 2003 American Solar Challenge • Promote environmental awarnes • Promote McMaster and the importance of education • Promote technology and innovation

  14. Competitive Advantages • Innovative school • Location • Run by volunteers

  15. Competitive Disadvantages • Lack of experience • Support from school • Poor past performance • Awareness

  16. Situational Analysis • Demand and Demand Trends • Giving Trends • Individual Giving Trends • Canada: Totaled $5.4 billion in 2000 • Ontario: Totaled $2.7 billion in 2000 • Hamilton: Totaled $136.5 million in 1997 • Education & Research: receive 8% of total # of donations, 4% of total amount • University educated are most likely to donate

  17. Situational Analysis • Giving Trends • Corporate Giving Trends • Corporate donations totaled over $975 million in 1999 • 70% of corporate funding goes to 3 types of charities: education, social service, other • 40% of corporate donations in Canada go to Ontario charities

  18. Situational Analysis • Giving Trends • Giving to McMaster University • 80% of financial donations made by corporations • Faculty of Health Sciences receives the most funding • Most corporate donations are made because of some type of affiliation with McMaster University

  19. Situational Analysis • Giving Trends • Giving to McMaster Solar Car Project • Fireball I: 95% in-kind corporate donations • Mirage: 75% in-kind corporate donations

  20. Situational Analysis • Giving Trends • Impact of September 11 • Relief donations not expected to diminish regular charitable donations • Stronger community commitment • Increase in Internet donating

  21. Situational Analysis • Social, Cultural and Demographic • Public, corporate, and government support for the environment and environmentally friendly ideas • Very little difference between giving patterns of men (75%) and women (81%)

  22. Situational Analysis • Economic and Business Conditions • Weakening economy poses biggest threat to fundraising in 2002 • Corporate giving declines, individual giving levels off • Corporations typically respond by supporting those causes they supported in the past

  23. Competition • Primary Competitors • 4 other Ontario universities • Queen’s University • University of Toronto • University of Waterloo • University of Western Ontario

  24. Competition

  25. Competition • Secondary Competitors • Other McMaster fundraising organizations • Different faculty societies (mcs, mes) • Other Ontario fundraising organizations • Ontario Clean Air Alliance

  26. Alternative Strategies • Strategy A • Alumni • Adopt-a-cell on web page • Direct address mail to adopt-a-cell offered with incentive • Two-week call back

  27. Alternative Strategies • Strategy A • Corporations • Solicit companies that may supply materials for the car • Focus on companies that have supplied parts previously to the project and the projects of other schools • Focus on the Greater Toronto Area (G.T.A.)

  28. Alternative Strategies • Strategy A • Costs • Mailing of two-sided business reply mail = $1,732.83 • Cost of long distance call backs = $573.00 • Incentive gift = $300.00 • Calling and mailing information packages to corporate material donors = $647.90 • Total Cost = $3,253.73

  29. Alternative Strategies • Strategy A • Effect on Target Market • Adds Alumni aged 55 – 64 • Includes all past donors of materials and expands throughout the G.T.A. • Adds the Internet as source of sponsorship retrieval

  30. Alternative Strategies • Strategy A • Effect on 4 P’s • Product • Adopt-a-cell program will assign individual names to cells • Price • Add new price of $20 per cell to alumni • An extensive list of all materials needed for the project will have to be developed

  31. Alternative Strategies • Strategy A • Effect on 4 P’s • Placement • No change • Promotion • Direct address mail to alumni • Incentives for alumni • Information packages to companies in the G.T.A.

  32. Alternative Strategies • Strategy A • PROS: • New market penetration • Alumni focus is on the highest giving range • Past success with corporate donation of materials • Proven success with the adopt-a-cell program • Direct mail increases awareness • Incentives will increase response time

  33. Alternative Strategies • Strategy A • CONS: • Time consuming • Limited experience in alumni market • Alumni may not read direct address mailing • New program that is not used by competition – added risk • Limited data on who the past donors of materials was • Limited contact information for corporations in G.T.A.

  34. Alternative Strategies • Strategy B • Pursue companies in the top 3 industries that donate to other schools • Energy, High Tech/Electronic, Manufacturing • Change pricing scheme • Meet with companies in G.T.A region • Hand out information packages at meetings

  35. Alternative Strategies • Strategy B • Costs: • Information packages = $504.00 • Gas = $1120.00 • Miscellaneous expenses = $600.00 • Long distance calls = $734.80 • Total Cost = $2958.80

  36. Alternative Strategies • Strategy B • Effect on Target Market • Focus on companies from the 3 main industries that give to solar car teams in the G.T.A.

  37. Alternative Strategies • Strategy B • Effect on 4 P’s • Product • New advertising structure for amounts donated (see next slide) • Price • New pricing scheme (see next slide)

  38. Alternative Strategies • Strategy B • Effect on 4 P’s • Placement • No change • Promotion • Meeting at corporate offices • Information package handouts

  39. Alternative Strategies • Strategy B • PROS: • Well-defined target market • Reaches large financial holders • More comparable in price to other cars • Customer rapport • Feedback available

  40. Alternative Strategies • Strategy B • CONS: • High risk market • May conflict with current sponsors donations • Directly competing with other solar cars • High financial and time costs • Minimized market • Lack of trained salespeople

  41. Alternative Strategies • Strategy C • Focus on Corporations that have sponsored McMaster in the past • Promote to alumni through the alumni magazine; The McMaster Times • Advertise on the student calendar for fundraising and recruitment purposes

  42. Alternative Strategies • Strategy C • Costs • Wall poster advertisement = $1,200.00 • McMaster Times magazine ad = $2,180.00 • Information Packages for top 200 corporate supporters of McMaster = $1,512.00 • Total Cost = $4,892.00

  43. Alternative Strategies • Strategy C • Effect on Target Market • Exploit past sponsors of McMaster • All age groups of alumni get exposure • McMaster students are used for both fundraising and recruiting • Families of alumni will receive exposure

  44. Alternative Strategies • Strategy C • Effect on 4 P’s • Product • Alumni receive name on website • Tax Benefit • Price • Any price is acceptable for individual donors • No change to corporation pricing • Generosity from students

  45. Alternative Strategies • Strategy C • Effect on 4 P’s • Placement • No Change • Promotion • Advertising on student calendars • Advertising in McMaster Times magazine

  46. Alternative Strategies • Strategy C • PROS: • Increase student and public awareness • New market penetration (alumni) • Proven success in corporate sector • Availability of contact information for corporate and alumni • Magazines reach a lot of people

  47. Alternative Strategies • Strategy C • CONS: • Corporations may already be satisfied with their previous donation • New market risk • Advertisement waste in magazines • Low disposable income among students • No benefits for a student donation

  48. Recommended Strategy • Strategy A • Alumni • New market with a high affiliation to McMaster • Direct mail is an effective donation technique • Minimize wasted coverage • Increases awareness

  49. Recommended Strategy • Strategy A • Corporate • Past trend of corporate giving of materials • Networking opportunities • Time efficiency and resource expense • Broad market

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