December 8 , 2010
007 Executive Summary
Roger Mills, the founder of Kiai Marketing Group, has a marketing challenge to start up his new
business. Mills' idea is to sell advertising space on the laminates for the back of ten Western students'
laptops over the 8 month academic year. He wants to make $5,000 in profit over an eight month fiscal
period while at the same time establish his company name and brand as a credible ad agency. In order
to create a foundation for his company to grow, Mills will need to decide where to promote his
company, how much to charge his clients, and what market to target.
The budget for Kiai will be tight because the start up costs will all have to be be cover by Mills'
personal savings so all marketing and promotion must be efficient and effective. Kiai's main
competitive advantage is the innovative idea behind marketing on the back of students' laptops. It is a
new and untested market, but shows promise. Mills will run the business on his own and employ ten
involved Western students to advertise and gain basic knowledge of the business being represented to
present a casual pitch when approached. Since Mills is a full time student, Kiai will be serving one
client over the eight month academic year. Since laptops are becoming increasingly present in
university classrooms while newspapers are slowly becoming more irrelevant, there is a huge gap in the
market for this type of advertisement. This market is unpenetrated and has a high likelihood of success
with the current external environment.
The main direct competition for Kiai is The Gazette student paper and the immobile posters in Western
washrooms and restaurants. The Gazette sells advertising space for a CPM of $32.50 for a full page
which is higher than Kiai's which is at $22.37. Newspapers are also less appealing to university age
students. The posters are a minor threat with a CPM of $180.00. This is much higher than both Kiai and
The Gazette. Both forms of advertising are traditional and proven which may be the only real threat to
Kiai. Mills will have to show that Kiai's impressions will be legitimate and more impressionable on
university students than the standard method of advertising at Western.
The choice to target either small businesses or the University Student Council is a fairly easy consumer
analysis. Small businesses hold a lot more opportunities for Kiai to grow in the future than the USC.
Although small businesses also have tight budgets and are cautious, since there is a number of potential
clients, it will be easier to find one that will buy into Mills' idea. The USC would probably only be a
short term client which would not fit with Kiai's marketing goal to expand and gain credibility.
Kiai's service is advertising on the back of ten student laptops over the eight month academic year.
Mills has to sell this method of advertising as more effective than the standard news ad. The client will
sign a contract and be responsible for the design and production fees for the laptop skins. The price for
one academic year of advertising is $11,080. This price is decided by adding all start up costs and
expenses with Mills' personal profit of $5,000. This is a perfect balance between affordability and
quality. Kiai won't appear cheap and will still offer a competitive CPM.
Mills will be promoting his new business and attracting customers through a Small Business Centre
membership as well as attending their seminars. By establishing himself in the SBC community, he can
gain a reputation as well as attract a client. Mills will also need to spend money on printing business
cards, brochures, and posters to spread the word about Kiai. Approximately $1,320 will be spent on a
promotional budget for Kiai's first fiscal year.
After the internal and external analysis, Kiai's main target market should be small businesses and Mills
should follow the recommendations made in this marketing report. Introduction
Kiai Marketing Group is a newly founded marketing company that is introducing a new method of
advertising using the backs of university students' laptops to advertise companies that target the student
market. Roger Mills, the sole founder, has a marketing challenge to establish a client base for the new
company and decide on a price to make a $5,000 profit over the 8-month academic year. Mills wants to
find one business to serve for the first academic year that will spearhead his new company to success.
Mills also wants to create legitimacy and credibility for the Kiai brand to eventually expand and grow.
Being a full-time student, Mills plans to make all preparations for the coming school year during the
summer months. Kiai's target market will be London's small businesses trying to target Western
students specifically and the service being sold is the advertising on student's laptops in classes and
around campus. The internal and external analysis as well as justifying all areas of marketing, the
product, placement, price, and promotion will be important in defining this marketing challenge.
Mills intends on using his own personal savings to start up the business over the summer. Since Kiai is
on such a tight budget, only the most effective promoting methods will be used. The students will be
paid $17 per week, the most efficient for the new company. The final price for a year of advertising will
have to be enough to cover all expenses and salaries as well as make a $5,000 profit for Mills.
Kiai's main competitive advantage is the unique and interactive form of advertising. There is a gap in
the advertising market that Kiai can be the first to penetrate. When inquired, the students employed by
Mills will sell a casual, thirty second sales pitch. This is much more impressionable than normal
advertising as the product can speak the brand. This advertising also directly and exclusively targets
Western students, a market in high demand in London, but that can sometimes be hard to infiltrate
because of strict regulations on advertising by the student government.