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_____ 2009-2010 Marketing Plan _____ June Final

_____ 2009-2010 Marketing Plan _____ June Final. C ONTENTS. SECTION TOPIC 1. State of the Business 2. Competitive Developments 3. Strategic Reevaluation 4. Strategy Recommendations

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_____ 2009-2010 Marketing Plan _____ June Final

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  1. _____ 2009-2010 Marketing Plan _____ June Final UCSC EXTENSION -- CONFIDENTIAL

  2. CONTENTS • SECTIONTOPIC 1. State of the Business 2. Competitive Developments 3. Strategic Reevaluation 4. Strategy Recommendations 5. Marketing Objectives 6. Media Objectives & Strategies 7. Marketing Initiatives 8. Marketing Budget by Quarter • 9. Media Plan Flowcharts • 10. Campaign Creative Elements UCSC EXTENSION -- CONFIDENTIAL

  3. SECTION 1 STATE OF THE BUSINESS—MIDYEAR RECAPMID-YEAR NET PAID SEATS-BASIS FOR 12 MONTHS ENDING DEC. 31, 2008 • Overall • Calendar year NPS stabilized for first time since 2000 • ’08 NPS of 9,765 were +1% vs yr ago • ’07 NPS of 9,680, down -3% vs yr ago • Revenue, reported separately, grew +2% faster than NPS, reflecting discretionary pricing increases by academic depts and uptick in high-price tech courses • Departments • B&M posted a second year of growth: NPS up +6% • E&T grew a strong +14%, but at -5pp slower rate than last year • ANS was flat at +1% for second year in a row: first time since 2003 • EDU continued double-digit slide: with NPS off -25% • TOTAL EXTENSION PAID CLASSROOM ENROLLMENTS (NPS) • 2008 200708 vs 07 • Total 9,765 9,680 +1% • B&M 3,418 3,212 +6% • E&T 2,344 2,056 +14% • ANS 1,953 1,933 +1% • EDU 1,269 1,692 -25% UCSC EXTENSION -- CONFIDENTIAL

  4. SECTION 1 STATE OF THE BUSINESS—YEAR-END RESULTSFISCAL YEAR NET PAID SEATS-BASIS FOR 12 MONTHS ENDING JUN. 14, 2009 (PROJECTED) • Overall • Fiscal year NPS grew for first time since 2000—improved vs mid-year pace • ’08-09 NPS of 9,690 were +3% vs yr ago • Strong Spring 09 recovery post market collapse, more than made up for Winter 09 losses • Revenue, reported separately, grew +2% faster than NPS, reflecting discretionary pricing increases by academic depts & continued growth of premium E&T courses • Departments • B&M posted its second year of growth: NPS up +6% after poor Fall & Winter quarters • E&T grew a strong +14%, altho -5 pp slower than in ’07-08 • ANS remained flat at +1% for second year in a row: first sign of stability since ’03-04 • EDU cancelled too many late-enrolling courses and remained down -25% • TOTAL EXTENSION PAID CLASSROOM ENROLLMENTS (NPS) • 2008-092007-0808-09 vs 07-08 • Total 9,960 9,383 +3% • B&M 3,428 3,240 +6% • E&T 2,288 2,002 +14% • ANS 1,913 1,885 +1% • EDU 1,213 2,002 -25% UCSC EXTENSION -- CONFIDENTIAL

  5. SECTION 2 COMPETITIVE DEVELOPMENTSSOURCES: INTERVIEWS w/SJSU & UCB LEADERSHIP; CSU/EB WEBSITE; TESTIMONY OF PPM+SAPM DUAL CERTIFICATE GRAD Key Events & Insights • Closedown of SJSU’s Professional Development 12/31/08 • Netted no incremental seats for us—Winter 09 NPS are down • Hypothesize CSU/East Bay and CCs are beneficiaries • Our profile & offering may be mismatch for their low-price, non-credit student • Berkeley Extension is struggling but RWC facility is positioned as “in South Bay” • UCB paid of debt by selling SF campus in Mission, but lost money again anyway • Program Directors say enrollments are soft in key disciplines • Asked our racker to distribute Berkeley Extension catalog in SV—but racker refused • Very aggressive pricing of one CSU/EB MBA program • Under $10,000 for degree, which trumps certificates among employers • Could pose intermediate-term threat to our highest priced programs • PPM alumni rumbling re: Stanford Advanced Project Management • Dissatisfaction with SAPM cert. as a follow on to ours—theirs is too theoretical • Restage of Advanced Applied Project Management program is timely • Separately, consultants from PMI SV spinning out to do training & PMP prep • With 20% of total Extension enrollments at stake, monitor closely UCSC EXTENSION -- CONFIDENTIAL

  6. SECTION 3 STRATEGIC REEVALUATIONSOURCES: LIPMANHEARNE 11/04; INSIGHT ADVANTAGE 10/08; INTERNAL DATAMINING Background • Significant problems with 2004 Consulting Project/Research by LipmanHearne • Contradictory conclusions & recommendations too numerous to list—but top two were: • UCSC Extension “not relevant [because of] its inability to offer degrees” • Reco’d strategy: steer budget to direct marketing of certificates to vertical targets • Extension to compete in quasi-degree-like fashion with high-priced certificates • 5 years of this produced no positive effect on enrollments • LH did not evaluate existing customer behaviors toward certificates vs courses • Recent segmentation of purchase patterns identifies key weakness in LH analysis • Altho certificate students take 4x number of courses, nearly 70% only 1.2 on avg • Qualitative input from certificate earners paint different picture: earned piecemeal • Key need: highly targeted, highly immediate fulfillment of specific know-how void • LH market survey never gauged awareness—hence severity of problem unaddressed • Low category interest…evidence: collapse of largest competitor: SJSU/PD • Invisible brand presence…evidence: latest qualitative from past students • Even our own past students from SV think Berkeley is closest UC Extension • LH strategy led to brand invisibility via over-diffusion of non-catalog resources • Brand effectively dismissed as “irrelevant” therefore lacking meaningful leverage • High cost of so many DM initiatives dissipated budget without growing enrollment UCSC EXTENSION -- CONFIDENTIAL

  7. SECTION 3 STRATEGIC REEVALUATIONSOURCES: INSIGHT ADVANTAGE 10/08; SCARBOROUGH RESEARCH 2008; INTERNAL DATA Current Research • Quantitative research among current & past students of remaining curricula • 1518 qualified respondents • 6% participation rate • Solid participation suggests loyalty & satisfaction are on firm footing • Customer/prospect is high-end: midcareer professionals • Middle Aged—62% 35-54 yrs old • Highly Educated—92% college grad, half already have grad degree • High Earning—75% earn incomes from $50k to $200k per yr • Working Professional—80% are full-time professional or consultant • Career Oriented—93% pursue additional education for career purposes • Silicon Valley Target Universe—200,000 (San Jose CA media marketing = 2.0MM) • Customers’ claimed importance of certificates has been overstated • 35% say they came here to earn certificate • 67% of those who haven’t earned one say they still intend to • 18% actually take enough courses to complete a certificate program • Appeal & leverage of high-impact, degree-quality courses overlooked • 55% ranked university degree programs as the # 1 alternative to Extension offerings • 50% of students take courses to obtain targeted know-how • 69% of students take average of 1.2 courses to fulfill above need UCSC EXTENSION -- CONFIDENTIAL

  8. SECTION 3 STRATEGIC REEVALUATIONSOURCES: INSIGHT ADVANTAGE 10/08; SCARBOROUGH RESEARCH 2008; INTERNAL DATA Opportunity Analysis • Professionals seeking advanced education place brand in high-end competitive context • 55% say other university degree programs # 1 alternative to UCSC Extension • Qualitatively, key advantage is real-world, highly practical, high impact on jobs and career • 50% of students take courses to obtain targeted know-how • Extension holds strong value position & retains highly competitive brand equities • # 1reason for choosing UCSC Extension: “better value than the alternative” mean score 6.59 (8 pt scale) • # 2 reason for coming to UCSC Extension: “reputation of the institution” mean score 6.09 (8 pt scale) • Quality delivery is very high: average rating of 4 of 5 (high) on 8 quality/satisfaction measures • Stop thinking like a university and start thinking like a retailer • Selling high-priced certificates the way a grad school solicits students has never worked • Our customer looks and acts like a Macys’ customer—higher end, makes occasional purchases • Our prospect universe is large so we have to cast a wide net to capture them when they’re ready • Refocus all available resources behind the brand • Consolidate resources behind the brand to achieve breakthrough • Redirect resources away from certificates to showcase wide variety popular courses in mass media • Establish consistent branding, messaging, design & buy regular positioning in key media • Seize the once-in-a-lifetime opportunity the relocation represents • Few floundering brands get a chance like this to restage & alter their profile in the marketplace • Media & public will pay attention to new professionally focused mission & narrowed curriculum • Given risk to enrollment—i.e., losing students between Cupertino & Santa Clara—invest in success UCSC EXTENSION -- CONFIDENTIAL

  9. SECTION 4 STRATEGY RECOMMENDATIONS2009-10 MARKETING STRATEGY Brand-centric, Retail-oriented • 100% brand campaign that sells courses • Select media quantitatively for target • Consolidate virtually all $ behind brand • Expand suite of “retail” vehicles • Consistent positions in all media • Sustain key media vehicles as affordable • Invest incrementally to ensure success of relo • $100,000 ‘move’ media budget approved UCSC EXTENSION -- CONFIDENTIAL

  10. SECTION 4 ADDITIONAL RECOMMENDATIONS2009-10 MARKETING STRATEGY • Permanently restore Summer quarter catalog • Expand messaging to current students • Increase email frequency to weekly • Rebrand and reposition to resolve geo confusion • Brand identity: UCSC Extension in Silicon Valley • Brand positioning: Advanced Professional Education • Brand tagline: Knowledge You Put to Work • Brand the new building to build recognition • Relocation Campaign • Location, Location, Promotion headline married with enrollment call to action • Theme and copy integrate move announcement with key benefits • Coopts new building façade to brand and showcases building signage • Promotional ucscextension.com simplifies URL read for voiceovers UCSC EXTENSION -- CONFIDENTIAL

  11. SECTION 5 MARKETING OJECTIVES OBJECTIVE GOAL TIMEFRAME • Grow enrollments by +5% 10,723 NPS June 13, 2010 • Move 100% Q2 ’08 base to Santa Clara 2,894 NPS Dec. 31, 2009 • Establish new identity/position Media playback Oct. 15, 2009 • Breakthrough to attract new students Grow new students June 13, 2010 • Program builds website traffic Unique visitors/wk Pre/Post campaign • FY 2009-10 Marketing Budget • [Budget detail by quarter appears in Sec. 8] • Going Programs $550,000 • ‘Move’ Campaign $100,000 • Total Annual Budget $650,000 UCSC EXTENSION -- CONFIDENTIAL

  12. Target Definition Midcareer working professionals 35-54 years old $50-200K College grad—1/2 Masters+ Career-oriented Boomer psychographic Contact Preferences Email—76% Catalog—42% Website—29% Key Need/Benefit Timely, job-relevant know-how that can change the course of their careers, from an institution with a great reputation for delivering well-priced, high-impact, advanced professional education Primary Source of Awareness Among New Students Catalog—32% say # 1 source Personal Referral—29% say # 1 source SECTION 5 CUSTOMER/PROSPECT PROFILESOURCES: INSIGHT ADVANTAGE 10/08; SCARBOROUGH RESEARCH 2008; COMCAST MEDIA PLANNING SOFTWARE • KEY INSIGHT • ______ • Word-of-mouth is an additional cornerstone of awareness among the prospect universe—equal in importance to the catalog UCSC EXTENSION -- CONFIDENTIAL

  13. SECTION 6 MEDIA OJECTIVESSOURCES: INSIGHT ADVANTAGE 10/08; SCARBOROUGH RESEARCH 2008; COMCAST MEDIA PLANNING SOFTWARE OBJECTIVE TIMEFRAME • Achieve breakthrough sufficient to fuel word-of-mouth & grow NPS Oct. 1, 2009 • Ensure current students know to new facility in Fall Dec. 31, 2009 • Find a way to afford a retail media mix within budget Aug. 1, 2009 • Quantify reach/frequency/coverage of all media vehicles Aug. 1, 2009 • Drive more traffic to the website Pre/Post campaign UCSC EXTENSION -- CONFIDENTIAL

  14. SECTION 6 MEDIA STRATEGIESSOURCES: INSIGHT ADVANTAGE 10/08; SCARBOROUGH RESEARCH 2008; COMCAST MEDIA PLANNING SOFTWARE OBJECTIVE STRATEGIES Stack ‘move’ media into a concentrated, high reach-frequency flight Architect 6-week plan leading up to Oct 1 grand opening High frequency daily broadcast media schedules Diverse media mix to increase likelihood of prospect intercept Cut in a new Summer issue of the quarterly catalog Preannounce relocation in all catalogs, collateral, advertising Heavy-up weekly email messaging via in-house platform Sustained front page website relocation announcement Reduce catalog length to drive down materials and printing costs Cut collateral/direct mail production by increasing ReachMail usage Opportunistically by sponsorships that provide access to key media Negotiate annual packages with media to reduce cost per unit Aggressively negotiate for value-added from all vendors Strictly adhere to USPS mailing guidelines to drive down postage Purchase all mailing lists for multiple usage and amortize quarterly Overlay Insight Advantage survey and internal data mining results with Scarborough syndicated media research obtained as value-added to San Jose Mercury News and Comcast Cable System buys Highly repetitive exposure and mention of URL in all vehicles • Achieve breakthrough • Students know to move in Fall • Fund a diverse media mix • Quantify media selection • Drive website traffic UCSC EXTENSION -- CONFIDENTIAL

  15. SECTION 7 MARKETING INITIATIVES[1/5] • ‘Move’ Plan • Immediately begin pre-announcing Fall 09 relo via catalog covers and all outbound messaging. • Develop $100k ‘move’ marketing plan for July 1 review/approval. • Develop and integrated ‘move’ marketing plan. • Enlist campus PR machine to assist with media outreach. • Collaborate on messaging development. • Present plan for approval by July 1. • Catalog • Leverage identified cost efficiencies to reinstitute quarterly production calendar. • Cut in a separate Summer 09 quarter issue now for early May mail drop. • Permanently reduce all catalogs to 3 signatures (96 pp), no duplicate listings, too-long copy. • Terminate coastal racking (except for Santa Cruz library). • Shift coast inventory into South Bay to fuel 50% expansion of retail distribution. • Expand mailings to purchased lists modeled against new customer data. • Reach those targeted households four times each before revamping lists. UCSC EXTENSION -- CONFIDENTIAL

  16. SECTION 7 MARKETING INITIATIVES[CONT. 2/5] • Advertising • Syndicated media research identified San Jose Mercury News as most efficient foundation for media plan. • Supplement with targeted print to under-delivered South Asians and 25-34 market. • Implement consistent, new ad format, integrating new identity. • Key ad creative to quarterly catalog design, and featuring 30-40 courses per ad. • Showcased courses to represent curriculum proportionate to NPS contribution. • Support ‘advanced professional education’ positioning with ‘Location, Location, Promotion’ creative. • Integrated new ‘Knowledge You Put to Work’ tagline in all creative. • Email • Increase usage of in-house ReachMail e-marketing platform. • Quadruple electronic contact with past-five-year students. • Implement weekly email plan. • Two all-extension messages per quarter. • Two messages targeted by academic department per quarter. • Leverage catalog design and core brand messaging for email creative. • Include early enrollment discount, new tagline and relo announcement in all messaging. • Begin testing of purchased external lists, e.g., San Jose Mercury News online subscribers. UCSC EXTENSION -- CONFIDENTIAL

  17. SECTION 7 MARKETING INITIATIVES[CONT. 3/5] • EED Incentive • Maintain high profile of 10% Early Enrollment Discount/EED. • Assess EED effectiveness versus objectives when it reaches 3-year mark in Fall. • Direct Mail • Replace high-cost mailed brochures and mini-catalogs with low-cost 4-panel postcards. • Integrate all communications parameters outlined above. • Purchase all lists for at least 4 uses per year to reduce per use cost. • Leverage Mailhouse modeling services to tighten list targeting and improve enrollment yield efficiency. • Collateral • Complete migration of all departmental promotional materials to uniform identity system. • Curtail quarterly production of departmental collateral. • Move to batch printing of content with annual shelf life. UCSC EXTENSION -- CONFIDENTIAL

  18. SECTION 7 MARKETING INITIATIVES[CONT. 4/5] • Website • Continue driving traffic to website to increase online registration volume beyond current 70%. • Increase quarterly content update schedule to monthly. • Continue working toward expansion of program content for web. • Complete negotiations with IT on website expansion project plan. • Allocate Marketing Dept manpower to solve bandwidth problem and with IT web manager. • Develop plan to migrate 1CE system program and course content to new web platform. • Online • Maintain adword spending despite lack of lead productivity. • Sustain investment at current $3000 per month level. • Continue supporting contracts for other online advertising/sponsorships by program depts. • Events & Shows • Extend free program overview events to pre-Spring and pre-Summer. • Integrate expanded schedule into all future catalog issues. • Showcase free event schedule on website homepage. • Produce portable displays with new identity for each department and brand. UCSC EXTENSION -- CONFIDENTIAL

  19. SECTION 7 MARKETING INITIATIVES[CONT. 5/5] • Reporting • Finalize new weekly performance reports for executive team and academic program directors. • Maintain schedule of Monday morning distribution of prior week results on QTD, YTD and online bases. • Extend reporting to Concurrent Enrollment and begin tracking new student acquisition. • Data Mining • Complete behavioral segmentation of enrollment data. • As requested, conduct internal research. • Provide analysis of enrollment, financial, research and customer contact data. • Integrate campus Cognos analytical tools into Extension systems. UCSC EXTENSION -- CONFIDENTIAL

  20. SECTION 8 MARKETING BUDGET BY QUARTER UCSC EXTENSION -- CONFIDENTIAL

  21. SECTION 9 CORE PRINT PLANBUDGET = $75,000 UCSC EXTENSION -- CONFIDENTIAL

  22. SECTION 9 MOVE MEDIA PLANBUDGET = $100,000 UCSC EXTENSION -- CONFIDENTIAL

  23. SECTION 9 DEC-JUN MEDIA PLAN UCSC EXTENSION -- CONFIDENTIAL

  24. SECTION 10 SUSTAINING & ‘MOVE’CAMPAIGN ELEMENTS • Branding Devices • Brand distinctive building/roofline in logo and visual communications • Consistent reference to “UCSC Extension in Silicon Valley” in all copy • Promotional ucscextension.com URL for ‘move’ creative • Sustaining Advertising • Current, extensive information about course avails, free events, etc. • Full page units in magazines or tabloid newspapers • Half page units in broadsheet newspapers • 100% of ads showcase listing of 20-45 courses • Creative rotates every two weeks to refresh course listings • ‘Move’ Advertising • Rich retail+ media mix: print, radio, local cable television, cinema, outdoor • Location, Location, Promotion announces move & integrates end benefit • Campaign will reach 70% of target universe at least 3 times during flight • If second-half funding permits, additional TV and radio flights will air again • Outdoor will become part of sustaining campaign: 101 hi-def billboard 4x/yr UCSC EXTENSION -- CONFIDENTIAL

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