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McDonald's & America’s Schools Partnership Proposal October 9, 2003

McDonald's & America’s Schools Partnership Proposal October 9, 2003. History in the making. The benefits of cause-related marketing have been well documented ever since American Express first used the phrase in its 1983 campaign for the restoration of the Statue of Liberty.

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McDonald's & America’s Schools Partnership Proposal October 9, 2003

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  1. McDonald's & America’s Schools Partnership Proposal October 9, 2003

  2. History in the making The benefits of cause-related marketing have been well documented ever since American Express first used the phrase in its 1983 campaign for the restoration of the Statue of Liberty. During that campaign, American Express made a one-cent donation every time someone used its charge card; those pennies added up to millions of dollars for the statue; the number of new card holders soon grew by 45%; and card usage increased by 28%. America’s Schools Program

  3. The emotional pull of America’s school children has even greater potential Now, for the first time in the history of education, state school boards associations across the country are partnering together to create a cause-related marketing opportunity focused on those school children. These school board associations collectively represent 14,500 school districts, 10 million employees, 47 million students in over 100,000 kindergarten through 12th grade schools. They have created a national retail and consumer products licensing and sponsorship program designed to increase profits for participating corporations and create a new funding stream for public schools throughout the United States under the auspices of The America’s Schools National Business & Licensing Board. It’s called The America’s Schools Program. America’s Schools Program

  4. The power of cause-related marketing Cause-related marketing is a proven winner. America’s school children are a worthy, deserving cause. And the America’s Schools Program is ready to harness the power of compound cause-related marketing on behalf of its allies to raise substantial funds for America’s schools while making a substantial impact on its allies’ business. Are you ready to step up and… do very well by doing good? America’s Schools Program

  5. McDonald's/ASP Proposed relationship Corporate sponsorship to include: • In the Game – Football Programs • Back-to-School Promotion tie-in • Private Label licensing tie-in • Bottled water program • High Five Challenge Quiz Show “Official Partner of America’s Schools” • Student incentive purchases & discounts • Employee incentive purchases & discounts America’s Schools Program

  6. In the Game – Football Programs High School Sports - nothing generates as much excitement and loyalty from its millions of passionate fans each week throughout the season. They support their teams and their schools like no other sport around. Pro Sports Publications, the nation’s leading publisher of gameday media, and The America’s Schools program, have teamed up to offer advertisers the opportunity to reach a highly-targeted, involved audience while, in the process, generating revenue back into the school systems nationwide. Get “In the Game” and become a part of the most comprehensive publication to cover high school football ever. Advertising in the inaugural issue of “In the Game” gives an advertiser the inside track on category exclusivity as the program is launched nationwide over the next couple of years America’s Schools Program

  7. What is “In the Game”? • "In the Game" is a full-sized, 24-page, glossy 4/C magazine that is published for each home football game of high schools throughout each of seventeen states • Each issue is customized for schools in each particular state • There will be five issues per season (one issue for each home game) • Each school will receive between 300-500 FREE issues of "In the Game" for each home game to sell for $2 each • Distribution will take place in the following 17 states: New York, Louisiana, Texas, Missouri, Alabama, Oklahoma, Oregon, Tennessee, Mississippi, Michigan, Ohio, Kentucky, Arkansas, New Jersey, Florida, California, North Carolina • Editorial content will consist of feature stories, insightful interviews, action photos, historical perspectives,health and nutrition, player/coach profiles, college bowl game sweepstakes • 2M copies will generate $4M in school revenues! America’s Schools Program

  8. How “In the Game” works • "In the Game" magazine is provided FREE to all participating schools in each state across the country. • Every school in each state will be contacted and asked if they'd like to participate in the program. There is no downside. They receive free football magazines that they can use as a fundraiser and/or as added value for their fans. • Copies of the magazine are shipped directly to the athletic director at each school for distribution at all home games. • The magazines will generate a new revenue source for all schools as they have the ability to sell "In the Game" magazine and keep all monies. • In addition, PSP creates generic roster templates for use by schools enabling them to sell local advertising. This creates a second revenue stream for the schools. America’s Schools Program

  9. Back to School Promotion tie-in • Shoppers are offered the opportunity to give an extra 25 cents to America’s Schools at participating retail locations. • McDonald's can leverage the America’s Schools national symbol in their marketing materials in-store and across media as they see fit. • Massive PR support and public service announcements. • Promotion being offered to wide range of retailers for 2004 – generating compound effects of parallel marketing efforts. America’s Schools Program

  10. Private Label tie-in program • Retain “McDonald’s image and logo” and use America’s Schools Program promotional items to promote the cause and a compelling story. Add a cause-related reason to purchase in addition to your current selling approach. • Shoppers can purchase products at current price or purchase product with hang tag to give $0.50- $1.00 to America’s Schools. IE; My family supports America’s Schools/ McDonald's logo.. bumper sticker, patriotic and supporting education. A portion of the proceeds go to America’s Schools, sold at counter. • Sweepstakes for promotional items purchase- customers can win tickets to the local college football games, major college bowl games, etc.. The promotion is sports related and ties in with education, getting high school students thinking about colleges and further education. America’s Schools Program

  11. Licensed product alternate • Back ups • McDonald's can agree to create specific private label retail products designated as officially licensed school products, bearing the ASP symbol. A mutually agreed upon royalty would be paid back to America’s schools for the purchase of these products. • McDonald's can act as a sub-licensor to America’s schools and develop an in-store school boutique line of products that helps fund America’s high school sports programs.This would be an ideal cross- licensing opportunity to create cartoon tie-ins,such as Fred and Barney doing high school sports. ( The Flintstones ) America’s Schools Program

  12. McDonald's - Official Partner of America’s Schools • McDonald's offers consumers, educators and parents a way to support their schools. • Currently teachers already spend over $1.3 billion of their personal income on school materials per year. • The more they consume McDonald's official products the more money is given to the school systems. America’s Schools Program

  13. McDonald's Bottled Water Program • Private Label bottled water designed exclusively for McDonald's and America’s Schools Program. • Lush landscape, Fitness, Refreshing, or Athletic & Sporty label design that promotes McDonald's as official Pit Stop for America’s Schools Program. Creative, attractive and inviting label design. • Label acknowledges that consumers are supporting America’s schools with purchase of bottled water. • Label can act as a coupon or other promotions for the customers next purchase, 6 labels = a free bottle of ASP/McDonald’s bottled water. • McDonald's can sell their private label bottled water in “over the counter”, at sporting and/or promotional events. Your exclusive design and label. • All manufacturers in national spring water bottling network are certified by one or more of the following – NSF, IBWA, CBWA, HAACP and military approved. America’s Schools Program

  14. America’s Schools Program Benefits for McDonald's Bottled Water Program • Program sponsorship generates positive corporate awareness and recognition • Provide funds for schools through sales of official bottled water of the “America’s Schools Program” • A private label co-branded bottled water designed exclusively for McDonald's bearing the American’s Schools Logo. • Creating your own brand awareness and controlling your brand placement. • Network of Program bottler capabilities for nationwide support • Reduced freight rates to distribution centers. • Quality control, timely and efficient deliveries. • Certificate of insurance and hold harmless agreements for all water purchases. • Centralized program management and administration • Program pays for all labels produced under the private label contract for America’s Schools. • Reduced and affordable national price points on all SKU’s. • One contact for all art work, label creation and orders. America’s Schools Program

  15. Bottled water program • Retailer can add to the retail price to be donated back to America’s Schools. • Private label water provides higher per unit profitability and increased retailer brand awareness. • Through national network of bottlers, retailer is assured of consistent quality, label design and price specific to distribution locations. • Single point of contact for national private label program America’s Schools Program

  16. McDonald's Opportunity Nationwide • McDonald's the official “Pit Stop” for “America’s Schools” National event marketing at local schools functions. • All schools conduct multiple events on and off campus each year. • Profitability and exposure for McDonald's can be created both in store and on school campus through a multiple opportunities created as the Official Restaurant Partner of America’s Schools”. • Strong demand for product at school events nationwide. • Last year over 1.2 BILLION spectators paid to attend high school sports and extra curricular activities. • McDonald's Burgers and Official Bottled Water could become an active participant at these events nationwide. • Bottled water is the number 2 beverage in the country and rising. (Beverage Marketing Magazine) America’s Schools Program

  17. McDonald's Opportunity Continued: • McDonald's discounts and incentives. • A private labeled Mint Tin program, similar to the Altoid tin, multiple flavors available, free logo design, another impulse purchase at the register. What other private label product stays with the customer for more than 10 days. Great profit margins while supporting a good cause. • The more product sold under this program, the more recognition for McDonald's and more recognition and money for schools ….win/win for all!! America’s Schools Program

  18. Corporate Partners In discussion with: The National Restaurant Association Educational Foundation,OfficeMax, RegalCineMedia Group, Borders / Waldenbooks ,Eddie Bauer, JCPenney, Macy’s, US Bank /Visa, PBS, Earthlink and many others.. America’s Schools Program

  19. Schools At the present time 65% of the American public school system in the process of launching the America’s Schools Program into their individual school districts across the country. If an agreement is reached with McDonald’s and approved by the America’s Schools National Business and Licensing Board we would immediately launch in all 50 states. America’s Schools Program

  20. Contracts Each state is required to sign an exclusive representation contract, with the individual state authority being assigned to the America’s Schools National Business and Licensing Board. This enables the national executive committee (8 states) to enter into national K-12 schools licensing and corporate partner programs without having to gain individual approval from all fifty states. America’s Schools Program

  21. Students/Faculty Number of students & faculty onboard- • 47 million students nationwide • 10 million full time employees • 14,500 school districts • 100,000 school facilities nationwide (65% of these stats/ figures are already onboard and moving forward in varied stages of deployment of the program) Note that, as CNN reported 5/4/2003, teenagers accounted for over $170B in consumer spending in 2002. America’s Schools Program

  22. Program support The three pillars of ASP’s marketing approach are: • The cause of helping America’s school children • The alliance of disparate groups focusing their cause related marketing on this cause • The power of compound marketing behind the ASP logo and a unified message America’s Schools Program

  23. The cause – America’s schools and school children Gallup study cites education as American’s # 1 concern, over the economy and crime. A recent Cone/Roper study focusing on consumers and cause marketing found… • 76% would more likely switch to a retailer associated with a good cause • 76% would more likely switch to a brand associated with a good cause. • 33% of Americans cite “education” as their top cause. School budgets are getting decimated in the current round of government budget cuts with many discretionary programs falling by the way-side. The emotional pull of helping school children is overwhelming. This community has consistently shown that they will support the corporations that support their schools. Students, educators, PTAs, parents, families, grandparents, friends of schools, put together add up to 120 million people. America’s Schools Program

  24. The alliance Corporations interested in making a positive impact on America’s schools by promoting their products or services to raise money for the schools are natural allies. Through the America’s Schools Program corporate sponsors , like McDonald's and others are doing cause-related marketing to support a worthy cause. The compound effect of all the corporate sponsors, unified through ASP efforts, delivers far greater benefits to America’s schools than a single organization can achieve alone. America’s Schools Program

  25. The power of compound marketing • The ASP logo provides a focal point for disparate groups’ efforts • ASP’s guidelines and processes optimize the compounding of allies’ efforts America’s Schools Program

  26. On campus and off campus On campus: Exposure and awareness of the symbol/program is done through and with every communication vehicle possible within the K-12 public school system. Off campus: Marketing and media plan includes, but not limited to radio PSA’s, outdoor billboards, transit bus advertising, PBS and over the air television underwriting exposures, etc. America’s Schools Program

  27. What is “High Five Challenge”? The America’s Schools HIGH FIVE CHALLENGE TV Game Show is family-rich television, featuring select high school teams from throughout the U.S. competing each week for prizes, scholarships and a chance to become the HIGH FIVE national champion. HIGH FIVE recognizes and rewards today’s academic achievers and tomorrow’s leaders. America’s Schools Program

  28. High Five Challenge (I) The America's Schools High Five Challenge would be provided to PBS for airing on Saturday morning or afternoon. America's Schools would retain 30 seconds front and back making 15 seconds front and back available for PBS national and local each. (28 minute show). America’s Schools Program

  29. High Five Challenge (II) America's Schools plans to produce the High Five Challenge Quiz Show in partnership with PBS for 52 weeks per year for the following: • 1 x 30-second prime time announcement per week (featuring up to six Americas Schools Partners) for 52 weeks in the top twenty US markets on PBS • Front and back underwriting exposure on show airing weekly • Up to 5 promo announcements per week per station. America’s Schools Program

  30. High Five Challenge (III) Each Partner would receive: Total Value 1. 52 prime time exposures $ 728,000 2. 52 Saturday show exposures $ 312,000 3. 52 Saturday show crawl exposures $ 156,000 4. 156+ Weekly promo exposures $ 624,000 TOTAL YEARLY VALUE to Partner $1,820,000 America’s Schools Program

  31. High Five Challenge (IV) • The HIGH FIVE CHALLENGETV Game Show is already telecast each Saturday in all 50 states on the DISH Network’s America’s Top 50 • Programming Package on the Angel One Channel and three times a week on • Sky Angel Network Kid’s TV (KTV) Channel. • The logos of the America’s Schools Program and its corporate partners will be branded inside each show nationally on both networks. • In addition, America’s Schools Program and corporate partners receive up to 12 30-second PSA-content commercials per airing, or 48 per week, on both • DISH Network and Sky Angel Network. • PBS national broadcasting of this show sponsored by McDonald’s will have a huge impact on the shows viewership each week. America’s Schools Program

  32. Public Relations support The America’s Schools PR agency will function as the ongoing bridge between McDonald's, the schools and the general public. This focuses on the great things McDonald's is doing in health and nutrition for America’s schools and our children as a corporate partner of America’s schools. America’s Schools Program

  33. Launch Strategy – Preparation Step 1 HOLD INITIAL PLANNING MEETING Step 2 DEVELOP STATE-SPECIFIC MEDIA DATABASE Step 3 CONDUCT MEDIA TRAINING Step 4 CREATE MARKETING MATERIALS Define Rollout Strategy • Consumer Media Outlets: • Daily Newspapers • Weeklies • TV Networks • City Magazines • Business Press Dos and Don’ts of Dealing with Media • Develop Press Kit • America’s Schools Backgrounder • Key Biographies • Program Release • Education Community News • Corporate Partner News • Add Collateral Materials Identify Key Dates Communicate Key Messages Construct Timeline On-Camera Role Playing Education Trade Media Determine Education Community Assets Interactive Newsletter Education Community Toolkit America’s Schools Program

  34. Launch Strategy – Education Community AUDIENCE TARGET MARKET GOAL MESSAGE STRATEGY TACTICS School Boards Presentations Leverage State School Boards’ Assets Education Community School Associations Key City #1 Introduce, Educate and Encourage Support of America’s Schools Program The America’s Schools Program Generates Additional Revenue for Schools through Corporate Partnerships Regional Superintendent Road Show Key City #2 Superintendents Utilize School Boards Associations’ Access to other Education Groups Key City #3 School Boards State, Regional and Local Conferences School Administrators Key City #4 Utilize Communication Vehicles Key City #5 Secure School Superintendent Buy-in and Support Schools State Overall Teachers Direct Mail/ Letter Campaign from Early Adopters PTAs Utilize Early Adopters/ Influencers Athletic Directors School/ PTA Presentations Leverage Successes in Other States Coaches Media Briefing Sessions Leverage Education Trade Media Trade Media Relations America’s Schools Program

  35. AUDIENCE TARGET MARKET GOAL MESSAGE STRATEGY TACTICS Consumers Students Key City #1 Make the America’s Schools Symbol a Meaningful and Recognizable Symbol for Generating Additional School Funding Support Corporations Bearing the America’s Schools Symbol Launch an Exposure Building and Educational Campaign for the America’s Schools Program State, Regional and Local Press Conferences Parents Key City #2 Media Tour Politicians Key City #3 Publicity Campaign Corporations Key City #4 Joint Promotions General Consumers Key City #5 Television/ Radio Partnerships State Overall PSAs Billboard Advertising Launch Strategy – Consumer Program America’s Schools Program

  36. Corporate Partner Program Rollout Strategy Step 1 Preparation/ Information Gathering Step 2 Announce Partnership to Superintendents Within Each State Step 3 Announce Partnership and Acquire Participation From Schools Within Each School District Step 4 Promoting Corporate Partner Programs Within Schools Step 5 Promoting Corporate Partnerships to Media • Draft Letter to Announce new Partnership to Superintendents/Asst. Superintendents (1) • What corporate partner does • Specifics regarding offer to schools • How it benefits schools • Print/TV Media Relations (1) • Distribute and follow-up Corporate Partner Announcement Press Release • Coordinate interviews • Develop and distribute ongoing releases to showcase progress Acquire Details re: Corporate Partner & Program Agreement (1) Draft letter to Announce new Partnership To School Districts and Schools (1) Identify Team Captain for Each School (3,4) Draft Announcement Press Release (1) Develop Participating Agreement for Schools, as necessary (1) Draft letter for schools and Team Captain (1) • Develop Expanded Media Database (1) • Corporate partner’s headquarter hometown market • Vertical media that covers partner’s industry, as appropriate • Additional business/consumer media not covered Distribute Announcement Letter and Participation Agreement to Schools within each district (3) • Radio PSA Program (1,6) • Produce and distribute PSAs to promote program on top 20 radio stations in each district/market area Distribute and follow-up letter (3) Distribute Announcement Letter to Superintendents (2) Team Captains to Spread the Word on and off campus (5) Follow-up letters and agreements via Phone and Email to confirm interest in participating (3) Follow-up letters via phone and email to confirm support from Superintendents; acquire school mailing list (3) • Outdoor Advertising Program (1,6) • Negotiate nonprofit status rates for promoting the ASP and new corporate partner campaigns in each market area via: • - Billboards • - Bus Boards • - Transit Shelters Develop and maintain database of participating schools (3, 4) • Responsibility Chart • Formula PR • State SBA Executive Director • America’s Schools Field Representative • ISLC/Business & Licensing Board Member(s) • School Team Captain • National Director of School & Media Relations America’s Schools Program

  37. McDonald's/ASP Proposed relationship Corporate sponsorship to include: • In the Game – Football Programs • Back-to-School Promotion tie-in • Private Label licensing tie-in • Co-branded retail affinity card • Bottled water program • High Five Challenge media “Official Restaurant Partner” • Employee incentive purchases & discounts • Student incentive purchases & discounts Total Sponsorship cost: $5.5M per year. America’s Schools Program

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