PeopleWorksHumanResourceConsultingMarketingPlanProducedby:Wensin(Minerva)Chang,DemetriaChatters,JansenHokianto&KristianMoeller
2015
MBA525AppliedMarketingInstructor:GreggArnold
6/9/2015
PEOPLEWORKS 1
Table of Contents
Executive Summary 2
Situational Analysis
Market Summary 3
Product Offering and Objectives 5
The Competitive Environment 7
PESTLE Analysis 8
SWOT Analysis 10
Objectives 12
Strategies
Marketing Mix 12
Product 12
Pricing 13
Distribution 14
Marketing Communications 14
Target Markets 15
Integration Diagram 17
Positioning 18
Market Research Needed 19
Tactics
Tactics Diagram 20
Tactics Recommendations 21
Projected Timeline 26
Budget Projections 27
Next Steps 32
References 33
Appendix 36
PEOPLEWORKS 2
Executive Summary
PeopleWorks is a small human resource consulting firm located in Seattle, Washington
and offering the full range of outsourced HR services. Their target market includes small and
medium sized businesses, with less than two hundred employees, located in the Seattle-Bellevue-
Tacoma area of the Puget Sound region. Their competition consists of primarily small regional
firms and a few large national/multinational firms with both HR and BPO offerings. The HR
Consulting industry outlook is positive, showing steady and sustained growth, with industry
revenues projected to increase by an average of 3.3% annually between 2015 and 2020.
The objectives of this marketing plan are to increase revenue by 4% per month and to
exceed the WA state industry average revenue per consultant by 20% during the 2016 business
cycle. Further objectives include elevating brand awareness, increasing network, and
establishing an internet and social media presence.
To meet these objectives, we recommend employing a marketing communications plan
which has a projected cost of $42,000 and will yield a projected net operating profit of
approximately $260,000. The plan recommends utilizing the following tactics:
• Establish a new website with a geo-targeted SEO package.
• Establish social media pages on Facebook, Twitter, and YouTube.
• Redesign and update printed marketing materials
• Annual listing in the SHRM business directory.
• Engage in subject matter expert (SME) activities and podcasting for media consumption.
• Utilize geo-targeted display ad space with LinkedIn.
• Publish geo-targeted and phrase targeted in stream commercials on YouTube.
• Run print advertising in the Puget Sound Business Journal and Seattle Business Magazine
in conjunction with presentations and displays at regional/local Trade Shows.
PEOPLEWORKS 3
Situational Analysis
Market Summary
The shift in the US economy from being manufacturing-based to service-based has resulted
in a service-oriented approach being implemented across many facets of business and industries
(Marshall & Johnston, 2015). In the Human Resources industry, this has resulted in greater
importance being placed on employee relations, benefits, communication, recruitment, and
retention (Edwards, 2014). This creates an opportunity for HR Consulting firms as companies
are increasingly seeking their services to provide expertise in these critical areas.
• Competition consists primarily of two sources.
o In-house human resource departments
o Small, specialized firms with 4 or fewer employees
• Industry is dominated by small firms: nearly 70%
(C. Barnes & Co. , 2014)
69%
9%
7%
15%
2015:EmployeeSize- HRConsultingEstablishmentsinSeattle-Tacoma-BellevueArea
1-4Employees
5-9Employees
10-19Employees
20+Employees
(C. Barnes & Co. , 2014)
PEOPLEWORKS 4
• Large firms offer broader range of services (Human Resource Outsourcing- HRO & Business Process Outsourcing - BPO) and target larger businesses with at least 50+ employees
o Automatic Data Processing Inc. (ADP) with 1.2% industry wide estimated market share.
o Aon Hewitt with 0.7% industry wide estimated market share
• 3.2% Establishment growth rate projected from 2014 to 2015
Total HR Consulting Establishments
2014 2015
Washington State 207 214
Seattle-Tacoma-Bellevue Area 152 156
• Industry outlook is positive and shows steady and sustained growth • Industry revenue has increased by 35% from 2000 to 2014
o This includes a temporary industry-wide contraction during the Great Recession (2008-2010).
• 2015 Total industry revenues projected at $28.1 billion • 3.3% average annual increase in revenue forecasted between 2015 and 2020.
25000260002700028000290003000031000320003300034000
2015 2016 2017 2018 2019 2020
HRConsultingIndustryRevenue(inMillions)6YearOutlook
(C. Barnes & Co. , 2014; Edwards, 2014)
(C. Barnes & Co. , 2014)
(C. Barnes & Co. , 2014; Edwards, 2014)
(Edwards, 2014)
PEOPLEWORKS 5
Product Offering and Objectives
Services
PeopleWorks offers full-service Outsourced Human Resource functions.
• General employment practice compliance and administration
• Strategic compensation and benefits planning and integration
• Strategic workforce planning and development
• Recruiting and onboarding services
• Update/create employee handbook and orientation materials
• Benefit plan management: design, vendor selection, renewal, consolidation, enrollment
• Design/administer employee relations support program
• Design/update and implement employee performance review process
• Design and implementation of HR metrics
• Ongoing HR consultation and support
Target Market
• Businesses in the Seattle-Tacoma-Bellevue area of the Pacific Northwest region
• Small to medium-sized business enterprises (SMEs) with fewer than 200 employees
o Companies with fewer than 200 employees prefer smaller consulting firms and
tend to maintain longer duration relationships with consultants.
o Companies with 500+ employees tend to maintain consultant relationships for
only approximately 18 month and gravitate toward larger consulting firms.
o Largest firms in the industry with the highest number of product/service offerings
tend to target companies with at least 50+ employees.
(Edwards, 2014; Resourceful HR, 2015)
(Nolsoe Grunbaum, Andresen, Hollensen, & Khale, 2013)
PEOPLEWORKS 6
Distribution
• Service package options to fit every budget
o Monthly retainer
o Project based
o Ala-carte options
• Consultation and service delivery options to fit every need
o Onsite/In person
o Online chat/text/phone
o Video/streaming
Mission
“Our goal is to become the premier small business Human Resource partner in the Puget
Sound Region.”
• We promote and practice a high level of customer focus so we can provide the most
effective, customized, solution based return on our customers’ HR investment at a price point
which meets their budgetary requirements.
• Our personalized approach ensures that our recommendations are industry and
organizationally specific and align with our customers’ own strategic mission, vision, and
values.
Key Success Factors
• Ability to recruit highly skilled workers
• Access to niche markets and a workforce with specialized skill sets
• Competitive pricing
• Efficient internal processes with effective quality control measures
PEOPLEWORKS 7
The Competitive Environment
Rivalry
• Level: High
• Price competition
• 152 companies in the Seattle-Tacoma-Bellevue area competing in HR Consulting
industry in 2014 (expected to grow by approx. 3.2% to 156 establishments in 2015)
• Companies’ reputation are the selling point
Threat of New Entrants
• Level: High
• Low barriers to entry
• Low technology change
• Light regulation level
• Low capital intensity
Threat of Substitutes
• Level: Medium
• Substitute includes other consulting services with multiple service offerings other than
HR (Finance, Marketing, Strategy, etc.)
• Companies includes: Aon Hewitt, Marsh & Mclennan, Hay Group
RivalrySmallspecialized
regionalfirmsandafewlargenational/
multinationalHR/BPOofferingfirms
ThreatofNewEntrants:High-Fewbarrierstoentryandlowcapital
intensity- Mergerbetweenlargerfirmstoincreaseproductofferingsandgain
marketshare
BargainingPowerofBuyers:Medium
- Lowmonetaryswitchingcost-Maintainingin-houseexpertiseis
expensiveandlikelynotcosteffectiveformanysmallbusinesses. -HRexpertiseisessentialtoavoidpotentiallycostlyliabilityissues
ThreatofSubstitutes:Medium- Softwarepackages
-LargefirmsofferingHROutsourcingbundledwithotherBusinessProcessOutsourcing
services.
BargainingPowerofSuppliers:Medium
-Labormarketissupplier-Greaterleverageaseconomy
andjobmarketimprove
(Edwards, 2014)
PEOPLEWORKS 8
• Low switching cost
Bargaining Power of Suppliers
• Level: Low
• Economy and job market improvements result in increased mobility of workers
• Reduction in overall unemployment gives workers greater leverage in negotiating
terms of employment, compensation, and benefits.
• Suppliers includes the labor market
• Low supplier switching cost
• Low differentiation
• High potential worker competition
Bargaining Power of Buyers
• Level: Medium
• Low switching cost
• The ability of the HR consulting industry depends on economic conditions and corporate
profitability.
• Any business with employees needs HR consulting or must devote internal resources to
maintaining this expertise in-house to avoid potentially costly liability issues.
PESTEL Analysis
Political
• No federal regulations
• No subsidies or government protection
• The industry is largely self-regulated
Economic
• Demand for HR consulting is strongly affected by the economic conditions and especially
corporate profit and unemployment levels are affecting the industry
• Stronger macroeconomic conditions are expected, which will lead to expected growth in
the consulting industry
(Edwards, 2014)
PEOPLEWORKS 9
• Due to better macroeconomic conditions, corporate profits will increase and so will
budgets and this will lead to more spending on consulting services. The expected
corporate profit is expected to increase 2.5% on an annual basis until 2020
(“Management Consulting Industry…” 2015). Corporate profit is considered a key
economic driver for HR consulting and also indirectly affects the number of employees in
an organization.
• Unemployment rates in Washington are decreasing and in 2014 the unemployment rate
was 6.1%, a decrease from 7.0% in 2013 (Labor market and economic report, 2014). This
will affect the HR consulting industry in Washington in a positive way an increase
demand.
• The industry has a low capital intensity and this makes the entry barriers lower, which
can result in increased competition
Social
• Outsourcing of business functions has become a normal for firms in order to achieve
higher efficiency and to focus on core competencies.
• Consulting is a highly used form of service for businesses to help them reach their goal,
to increase efficiency, and to help mitigate risk with projects.
Technological
• There has been a low level of technological change in the HR consulting industry over
the last 10 years. The industry is labor intensive and therefore the industry depends on the
professional and technical expertise of the employees rather than technological
innovation.
• Because the industry is dealing with very sensitive client information Internet security
threats is a rising issue in the industry and the need for software system to help protect
this information are higher.
• Companies are taking advantage of technology in the use on many HR activities and it’s
important for HR consultants to stay up to date with the technology used in the industry
Environmental
• There are no environmental factors that play a significant role in the HR consulting
business.
PEOPLEWORKS 10
Legal
The HR Industry is driven by state and federal employment compliance laws, although the
consulting business itself has few regulations. The following laws listed can affect the HR
consulting industry’s profitability if there are any legal changes.
• Security and privacy of client information.
• Data protection laws.
• Health and safety laws
• Employment laws
• Discrimination law
SWOT Analysis
Strengths
• The strengths of a consultancy firm range from factors such as customer demand to lack
of competition in the external environment.
(Concept Draw, 2015)
(Edwards, 2014)
PEOPLEWORKS 11
• The specific knowledge, capabilities, organizational skills and other qualifications of the
professional consultant will be of particular importance in listing the firm's strengths.
• Quick response
• Plenty of time for good customer service
• Strong reputation in market
• Able to change direction quickly
• Low overheads
• Good value
Weakness
• Highly dependent upon networking and reputation to expand client base.
• Vulnerable to staff turnover
• Unreliable cash flow
Opportunities
• Lots of certification programs to become a certified human resource consultant.
• High
• Corporate profits are expected to increase the next couple of years and unemployment
levels are expected to decrease resulting in higher demand for HR consulting services.
• Outsourcing of business functions has become the new norm in the effort to chase higher
corporate profits
• Consulting is a very sought after service due to the role it plays in reaching corporate
goals, increasing efficiency, and to help mitigate risks.
Threats
• Changes in the legal environment can affect business processes and subsequently
profitability
• Internet security threats
• Technological innovation
• Low switching costs and barriers to entry resulting in high competition.
PEOPLEWORKS 12
Objectives
Strategies
Marketing Mix
Product
PeopleWorks offers full-service Outsourced Human Resource functions.
General HR consulting functions
• Design and implementation of HR metrics
• General employment practice compliance and administration
• Update/create employee handbook and orientation materials
• Ongoing HR consultation and support
Recruitment and Staffing
• Recruiting and onboarding services
Training and Development
1• Increaserevenueby4%permonthduring2016businesscycle.
2• ExceedWAStateindustryaveragerevenueperconsultantby20%.
3• Elevatebrandawarenessandincreasenetwork.
4• Establishinternetandsocialmediapresence.
PEOPLEWORKS 13
• Strategic workforce planning and development
• Design/administer employee relations support program
• Design/update and implement employee performance review process
Employee Benefits
• Benefit plan management: design, vendor selection, renewal, consolidation, enrollment
• Strategic compensation and benefits planning and integration
(Resourceful HR, 2015)
Pricing
Our pricing strategy is to customize service package options to fit each client’s budget
and meet their specific business needs. Our consultation hourly rate will be as follows:
o $280 per hour for 6 hours or less
o $200 per hour for more than 6 hours
We also offer monthly flat fees for set services ranging from $800 for a minimal ala carte
package designed for the small business to $12,000 for a full service package designed for medium
sized firms.
The following chart illustrates the general recruitment pricing framework:
Recruitment Fee as a Percentage of First Year Salary Field Percentage Architects 12 Science and Engineering Professional 16 Executive Level Professional- Other 16 Finance and Accounting 14 Information Technology 16 Lawyers and Paralegals 12 Medical Practitioners 16 General Administrative and Operational Staff 10
(ProMatcher, 2015)
PEOPLEWORKS 14
Distribution
Distribution options will be tailored to meet the client’s need and may include any or all of the following:
• Onsite (In person meeting)
• Phone consultation
• Video conference/live streaming
• Online chat/text/email
• Social media
Marketing Communications Plan
1. Establish our company website in addition to a social media presence on LinkedIn,
Facebook, and Twitter.
2. Engage in Search Engine Marketing utilizing Search Engine Optimization through
Google Ads to push our website to top of search results for Seattle/Bellevue region.
Website
SocialMediaPresence
SearchEngineMarketing
TradeShows
BusinessNetworkingEvents
YouTube InStreamAdvertising
EstablishasSubjectMatterExpert
RegionalBusinessJournalAdvertising
WordofMouth
PEOPLEWORKS 15
3. Participate in Trade Shows
4. Attend business networking events with local organizations such as:
a. Washington Technology Industry Association
b. Seattle Philanthropic Advisors Network
c. Seattle Society for Human Resource Management
d. Northwest Chapter: Turnaround Management Association
e. HR Roundtable – The High Technology Human Resources Society
f. Washington State Healthcare Human Resources Association
5. Professionally filmed, low budget commercial to air on YouTube
6. Establish our firm as subject matter experts through our social media presence (blogging,
tweeting, and podcasting) as well as through volunteer speaking engagements for local
small business groups and other organizations.
7. Print advertisements in Seattle/Bellevue regional Business Journals
8. Word of mouth.
Target Markets
The target market will be businesses in the Seattle-Tacoma-Bellevue area of the
Pacific Northwest region. We will focus on small to medium-sized business enterprises
(SMEs) with fewer than 200 employees. The following is a detailed target market grid
showing our product offerings broken down into main product offerings for both small
and medium sized companies. The reason for this is to show the primary purchaser and
the key influencers for each main product offering. This will help us target our
marketing to the right persons.
PEOPLEWORKS 16
Company Size
Small (< 50 employees)
Midsize (51-200 employees)
HR Department
Structure
• The HR function is usually less formal and in many cases the HR function is often run by an operations or office manager
• Business Owner usually makes the HR-related decisions
• In many cases outsource their HR needs.
• Buying process is less structured and often with conflicting internal forces between the purchaser and influencers.
• The HR function is more formal and functions dedicated to HR and usually there’s a mix of in-house and outsourced solutions.
• Greater level of delegation from senior management
• Structured buying process with a cohesive strategic direction
General HR Consulting Functions
Primary Purchaser: Business Owner Key influencers: Associations, Benefits Broker, Outsourced HR services firm, Attorney, CPA
Primary Purchaser: VP of Human Resources Key influencers: Human Resource Manager, Department Manager, Legal, CFO
Employee Benefits
Primary Purchaser: Business Owner Key influencers: Associations, Benefits Broker, Outsourced HR services firm
Primary Purchaser: VP or Director of Benefits Key influencers: VP of Human Resources, CFO, IT Employee Benefit Consultants/Brokers
Training and Development
Primary Purchaser: Business Owner Key influencers: Department heads
Primary Purchaser: VP of Human Resources Key influencers: Human Resource Manager, Department Manager, Legal
Recruitment and Staffing
Primary Purchaser: Business Owner Key influencers: Attorney, Benefits Broker, Outsourced HR services firm
Primary Purchaser: VP or Director of HR, VP of Operations Key influencers: CFO, IT, Legal, Manager level of Recruitment and Staffing departments
(Fisher Vista, 2015)
PEOPLEWORKS 17
Integration Diagram
InquiryGeneration• SocialMedia• SearchEngine
Marketing• Attendevents• YouTube
Commercial• SubjectMatter
Expertactivities
• Regionalprintadvertising
Inquiry
InquiryFulfillment• Website• YouTube
videos• Podcasts• SalesCall• Printed
brochures
SecondInquiry
SalesCall• Onsitevisit• Phonecall• Video
streaming
PurchaseDecision
Purchase
RelationshipMarketing(securerepeatandreferralbusiness)• Postpurchasedripmarketing
o Emailnewsletterswithindustryupdateso Holiday/specialoccasioncontactso Maildistributionofsmallpromotionalmerchandise
• Postpurchasecustomerserviceo Immediateresponsetocustomerconcerns(same
businessdaywheneverpossible)o Seekfeedbackforcustomerexperienceviaemailo Invitecustomerstoparticipateinannualcustomer
satisfactionsurveyviaSurveyMonkey
Tracking• Totalvisitstowebsite/websitebouncerate• Totalconversions• Leadtocloseratio• Costperlead• Customerretentionrate• ProjectedROI
(DeMers,2014)
PEOPLEWORKS 18
Positioning
• Our services bring our client:
o Highly personalized interaction that large firm cannot effectively handle
o High value service through our research, expertise, and experience staff
o Cost that is very flexible to meet our client’s budget
• Perceptual Map
Highly Personalized
Unexceptional
Service
Exceptional
Service
Not Personalized
People Works Large Firm Internal HR Department
Highly Personalized
Low Cost
Flexibility
High Cost
Flexibility
Not Personalized
People Works Large Firm Internal HR Department
PEOPLEWORKS 19
Marketing Research Needed
• Focus Group designed to gather information for use in conducting a larger scale survey
o Small business owner group
o Manager group (small to midsize businesses)
o Identify trends
o Gather “real life” scenario data and opinions
o Comparative analysis of product offering options and pricing
• Marketing Survey designed using the Focus Group data which will determine the
following data
o Most common HR challenges
o HR wish list (what employers want HR providers to accomplish that they usually
do not or do not do well)
o Most useful HR metrics from employer perspective
o HR budget – what employers expect to spend
o Service delivery option expectations
• Research competitors
o Verify specific offerings and pricing structures
o Analyze competitor strategy and anticipate reaction and impact of reaction
PEOPLEWORKS 20
Tactics
Tactics Diagram
We will employ a strategic multiphase roll-out of the recommended marketing
tactics. Each successive phase will building upon the prior one. The following Diagram
illustrates the components of each phase.
Ø Phase 1: Establish an internet presence through a new website, social media accounts
(Facebook, Twitter, YouTube), and updated printed informational material.
Ø Phase 2: Contract to list contact data in the Society for Human Resource Management
Business Directory; begin volunteer SME speaking engagements; publish first podcast.
Ø Phase 3: Upload YouTube video to social media; employ SEO and LinkedIn Display
Advertising to drive inquiries to website and social media.
Ø Phase 4: Begin running targeted YouTube In Stream Advertisement.
Ø Phase 5: Run print ads with the Puget Sound Business Journal and Seattle Business
Magazine before and after Trade Shows.
Phase1
WebsiteSocialMediaUpdatedPrintMaterial
Phase2
SHRMDirectorySubjectMatterExpertActivitiesPodcasting
Phase3
YouTubeVideoSearchEngineOptimizationLinkedInDisplayAds
Phase4
YouTubeInstreamCommercialAdvertising
Phase5
PrintAdsTradeShows
PEOPLEWORKS 21
Tactics Recommendations
Website
Background
- Prior to establishing a business relationship, clients want a simple and accessible way to
learn about a company and its values (backgrounds, prior projects, references, product
offering packages, who we are, how we are different) (Marshall & Johnston, 2015).
Recommendation
- Spend $6,600 for website creation, active hosting, and troubleshooting.
- Establish social media pages on Facebook, Twitter, and YouTube.
Basis for Recommendation
- A professionally designed website will allow us choices in design and utility to create the
web experience we want for our clients.
- A reputable budget web hosting firm with a history of low downtime will serve to ensure
uninterrupted access to our site.
- Serves the purpose of inquiry fulfilment and generating leads for sales calls and
transactions.
- Serves as a point of contact for existing clients to reach us.
- Allows for tracking of visits, bounce rate, conversion rate which can be translated into
marketing metrics on brand awareness (DeMers, 2014).
Printed Marketing Materials
Background
- Printed marketing material is an effective tool for use in response to customer inquiries.
Recommendation
- Spend $4800 for redesigned and updated printed marketing materials including:
o Brochures
o Business cards
o Trade show display and presentation materials
Basis for Recommendation
- Marketing materials serve to answer basic questions about who we are, what we do, and
the value proposition we are offering our clients.
PEOPLEWORKS 22
- They serve to generate leads and direct potential clients to our website and social media
pages.
Society of Human Resource Management Directory
Background
- SHRM is the largest most recognizable name in the HR industry (SHRM, 2015).
- It is considered the authority on best practices and standard industry knowledge (SHRM,
2015).
Recommendation
- Spend $2000 for an annual listing in the SHRM business directory.
Basis for Recommendation
- The directory is consulted regularly by business professionals looking for reputable HR
services and information.
Subject Matter Expert Activities, Podcasting, and Social Media
Background
- Creates a reputation as an industry thought leader.
- Ensures that we stay current in our field of expertise.
- Brings awareness to the PeopleWorks brand.
- Podcasts are convenient and easy to consume on clients’ own time (portable/on demand).
- These activities contribute to an overall networking/social networking strategy.
Recommendation
- Engage in volunteer speaking opportunities and blogging to establish PeopleWorks
consultants as SME for HR Industry knowledge.
- Record podcasts for social media consumption.
Basis for Recommendation
- The cost is captured by wages, travel expenses, and consultants’ own time investment.
- Allows PeopleWorks to build an in house content library for future use.
- Podcasts are cost saving way to educate clients and potential clients.
- SME activities lend credibility to the firm.
- SME engagements provide networking opportunities.
PEOPLEWORKS 23
Search Engine Optimization
Background
- Generates more traffic by directing potential clients to the website (Marshall & Johnston,
2015).
- Contributes to the conversion of browsers to buyers (Marshall & Johnston, 2015).
- Helps achieve better conversion rates and local brand awareness.
- Helps to identify new customers and generate growth.
Recommendation
- Spend $5600 for the Bronze geo-targeted SEO package through Seattle Search Engine
Optimization or other low cost, reputable local firm.
Basis for Recommendation
- Improves online rankings – pushes our website to page one of Google’s search results.
- Contributes to gathering marketing metric data for website effectiveness/efficiency.
- Seattle SEO is a lower cost option which provides an overall better value than Google
AdWords (Seattle SEO, 2015). Our research indicates that Google AdWords is usually
not profitable for small firms due to cost (Google, 2015).
LinkedIn Display Advertising
Background
- LinkedIn reaches specific small business owners, entrepreneurs, key purchasers, and
influencers within our target market.
- Provides options for regional geo-targeting.
- Allows us to learn more about the interests of potential clients by viewing their LinkedIn
data.
Recommendation
- Spend $9000 to secure geo-targeted display ad space with LinkedIn.
Basis for Recommendation
- LinkedIn business services provides automatic feedback reports to track effectiveness of
marketing efforts (LinkedIn, 2015).
- Daily or weekly statistical updates allow for real-time strategy correction.
PEOPLEWORKS 24
- A/B split testing capability: allows for controlled testing of ad strategies to determine
which is most effective for reaching our target market (LinkedIn, 2015).
YouTube Video
Background
- YouTube is a popular social media video website.
- Online videos are an effective method of delivering information to customers.
Recommendation
- Spend $1500 to hire a videographer to shoot and edit an informational video and a
shortened 30 second commercial version which can be used for YouTube Advertising.
Basis for Recommendation
- Provides an immediate informational video, available 24 hours a day, in response to
potential customers’ inquiries.
- Strengthens our social media presence
YouTube In Stream Advertising
Background
- YouTube Ad In Streaming services runs commercial advertising before videos
(YouTube, 2015).
- It can be geo-targeted and phrase targeted to reach a specific market (YouTube, 2015).
Recommendation
- Spend $300 per month to publish geo-targeted and phrase targeted in stream commercials
which will play prior to videos on YouTube.
Basis for Recommendation
- You tube provides a cost effective, yet intrusive media, which allows for geo targeting of
ads based on YouTube video content.
- This form of media advertising cuts through clutter to reach potential clients directly.
- Radio, the other type of intrusive media considered, was determined to not be feasible:
Prime time hours (Monday – Friday 6 AM - 7 PM) on top rated stations could cost as
much as $100 or more to air a radio commercial in Seattle (Best Radio Ads, 2015). In
order to achieve the frequency necessary, we would need to play 2-3 times per day in
PEOPLEWORKS 25
prime time, each weekday resulting in a cost per month at $6000 (3
times*$100*5days*4weeks). That is incompatible with our budget and we reach a much
broader target than what we actually need. This money is better spent on YouTube Ads.
Puget Sound Business Journal and Seattle Business Magazine
Background
- Average household net worth of print readers is $2.6 million (Puget Sound Business
Journal, 2015).
- 17,553 in paid print circulation and estimated 135,750 readership (Puget Sound Business
Journal, 2015).
- Targets top level executives, owners and managers (Seattle Business Magazine, 2015).
Recommendation
- Spend $6500 for print advertising in the Puget Sound Business Journal and Seattle
Business Magazine to raise brand awareness and awareness around our presence at
spring/summer trade shows.
- Run ads prior to and following trade shows
Basis for Recommendation
- Instant presence and credibility within the Puget sound business community.
- Access to consumers who are likely to make or directly influence purchasing decisions
for their organizations.
Trade Shows
Background
- Trade shows offer an opportunity to showcase our service offerings and build brand
awareness among the business community in the Seattle and Bellevue area specifically.
Recommendation
- Spend $4900 for presentations and displays at regional/local trade shows.
- Attend the Seattle Small Business Expo, the Seattle Chamber of Commerce Small
Business Trade Show, and the Bellevue Chamber of Commerce Small Business Trade
Show.
PEOPLEWORKS 26
o Cost includes the purchase of the additional marketing package for the Small
Business Expo which provides:
§ Ad in Expo Show guide
§ Exposure via the Expo official Facebook & Twitter
§ Registrant list w/names, company & email contact information
§ One year subscription to email marketing services
(Small Business Expo, 2015)
Basis for Recommendation
- Research shows that most clients are retained through networking (Nolsoe Grunbaum,
Andresen, Hollensen, & Khale, 2013).
- Trade shows offer opportunities to build networks through face to face contact (Marshall
& Johnston, 2015).
- High lead generation potential.
- Low cost/barrier access to all attendees and their contact information.
- Direct sales opportunities as attendees are part of highly targeted market.
Projected Timeline
• Secure the contract with web design firm by 6/15/2015.
• Select web hosting company and secure domain names by 6/30/2015.
• Complete new design templates for business cards and brochures by 6/30/2015.
• Identify five business networking groups and send letter volunteering SME services
(book engagements) by 6/30/2015.
• Schedule first focus group session and secure participants by 6/30/2015.
• Select web design, functions (usability- ease of use), cross platform compatibility (PC,
tablet, mobile) by 6/30/2015.
• Secure contract with professional videographer by 6/30/2015.
PEOPLEWORKS 27
• Publish new website linked to social media pages by 7/31/2015.
• Contact SHRM and provide listing data for listing by 7/31/2015.
• Plan script and outline of video by 7/31/2015.
• Finalize contract with Seattle SEO by 7/31/2015.
• Record first podcast and upload to social media by 8/31/2015.
• Contact LinkedIn to determine ad requirements and limitations by 8/31/2015.
• Contact Google business services to determine YouTube ad requirements and limitations
by 8/31/2015.
• Complete video shoot and editing; upload to Social Media by 9/30/2015.
• Publish LinkedIn ad by 9/30/2015.
• Secure contract with YouTube and publish on YouTube Ads by 10/31/2015.
• Secure trade show booths and booth locations by 2/28/2016.
• Plan displays and presentations for booths by 3/31/2016.
• Work with contact at Puget Sound Business Journal and Seattle Business Magazine to
design print ads by 3/31/2016.
• Complete design and print of promotional materials for tradeshows by 4/30/2016.
• Secure contract for ad placement in June, Aug & September issues by 5/15/2016.
Budget Projections
2016Projection Target Conservative AggressiveGrossRevenue 420,723$ 375,539$ 500,877$lessMarketingExpense 376,523$ 331,339$ 456,677$
NetOperatingProfit 262,223$ 217,039$ 342,377$
PEOPLEWORKS 28
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
PeopleWorks
12 Months Sales Forecast
Budget Year: 2016
$28,000 $29,120 $30,285 $31,496 $32,756 $34,066 $35,429 $36,846 $38,320 $39,853 $41,447 $43,105
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
PEOPLEWORKS 29
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Projected
Annual Revenue
# of Consultants 4 4 4 4 4 4 4 4 4 4 4 4
Conservative: 2% Revenue increase per Consultant/mo.
$7,000 $7,140 $7,283 $7,428 $7,577 $7,729 $7,883 $8,041 $8,202 $8,366 $8,533 $8,704 $375,539
Target: 4% Revenue increase per Consultant/mo.
$7,000 $7,280 $7,571 $7,874 $8,189 $8,517 $8,857 $9,212 $9,580 $9,963 $10,362 $10,776 $420,723
Aggressive: 7% Revenue increase per Consultant/mo.
$7,000 $7,490 $8,014 $8,575 $9,176 $9,818 $10,505 $11,240 $12,027 $12,869 $13,770 $14,734 $500,877
Monthly Revenue Forecast at targeted 4% monthly increase
$28,000 $29,120 $30,285 $31,496 $32,756 $34,066 $35,429 $36,846 $38,320 $39,853 $41,447 $43,105 $420,723
12 Months Sales Forecast - Budget Year: 2016
PEOPLEWORKS 30
PeopleWorks Marketing budget
Planned Expenses Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YEAR
Employee Costs Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YEAR
Wages $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $36,000
Benefits $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $28,800
Subtotal $5,400 $5,400 $5,400 $5,400 $5,400 $5,400 $5,400 $5,400 $5,400 $5,400 $5,400 $5,400 $64,800
Office Costs Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YEAR
Office lease $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $24,000
Utilities $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $3,000
Telephone $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $1,500
Internet access $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $600
Office supplies $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $2,400
Subtotal $2,625 $2,625 $2,625 $2,625 $2,625 $2,625 $2,625 $2,625 $2,625 $2,625 $2,625 $2,625 $31,500
Training/Travel Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YEAR
Training costs $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $6,000
Travel costs $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $12,000
Subtotal $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $18,000
PEOPLEWORKS 31
Marketing Budget continued
Planned Expenses Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YEAR
Marketing Costs Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YEAR
Web site $3,300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $6,600
SEO $1,200 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $5,600
LinkedIn Advertising $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $9,000
YouTube video making $1,500 $1,500
YouTube Advertising $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $3,300
Trade shows $500 $500 $3,900 $4,900
Puget Sound Business Journal $3,500 $3,500
Seattle Business Magazine $1,500 $1,500 $3,000
SHRM Directory Listing $2,000 $2,000
Podcasting/Social Media/SME Note: Cost captured under wages, travel, and owners' time investment
Marketing materials $300 $1,500 $1,500 $1,500 $4,800
Subtotal $9,050 $1,750 $1,750 $1,750 $3,750 $8,750 $7,150 $3,250 $1,750 $1,750 $1,750 $1,750 $44,200
TOTALS
Monthly Planned Expenses $18,075 $10,775 $10,775 $10,775 $12,775 $17,775 $17,175 $13,275 $11,775 $11,775 $11,775 $11,775 $158,500
TOTAL Planned Expenses $18,075 $28,850 $39,625 $50,400 $63,175 $80,950 $98,125 $111,400 $123,175 $134,950 $146,725 $158,500
PEOPLEWORKS 32
Next Steps
The marketing executive will work in conjunction with the PeopleWorks representative to
complete the following next steps by June 30, 2015 in anticipation of implementing Phase 1 and
in preparation for Phase 2 and beyond:
LinkedInAdvertising
20%Marketingmaterials
11%
PugetSoundBusinessJournal8%
SeattleBusinessMagazine
7%
SEO13%
SHRMDirectoryListing5%
Tradeshows11%
Website15%
YoutubeAdvertising
7%
Youtubevideomaking3%
MarketingBudgetBreakdown
Select web hosting company and secure domain names
Secure contract with web design firm, select design, site functions , and cross platform compatibility (PC, tablet, mobile)
Complete new design templates for business cards and brochures.
Identify five business networking groups and contact to volunteer SME services
Schedule first focus group session and secure participants
Secure contract with professional videographer
PEOPLEWORKS 33
References
Best Radio Ads. (2015, May 25). What Does Radio Advertising Cost in Seattle? Retrieved from
Best Radio Ads: http://www.bestradioads.com/what-does-radio-advertising-cost-in-
seattle/
C. Barnes & Co. . (2014). BARNES Reports: U.S. Human Resources Consulting Services (NAICS
541612). Woolwich: C. Barnes & Co. .
Concept Draw. (2015, April 16). Small Business Consultancy. Retrieved from Concept Draw
Corporate Web site: https://conceptdraw.com/a461c3/preview--
SWOT%20analysis%20matrix%20diagram
DeMers, J. (2014, August 15). 10 Online Marketing Metrics You Need To Be Measuring.
Retrieved from Forbes: http://www.forbes.com/sites/jaysondemers/2014/08/15/10-online-
marketing-metrics-you-need-to-be-measuring/
Edwards, J. (2014, October). HR Consulting in the US. Retrieved from IBIS World:
http://clients1.ibisworld.com.proxy.cityu.edu/reports/us/industry/default.aspx?entid=1423
Fisher Vista. (2015, May 10). Marketing and Selling in the Human Resource Marketplace.
Retrieved from HR Marketer: http://www.hrmarketer.com/selling_to_HR.pdf
Google. (2015, May 25). AdWords Help. Retrieved from Google AdWords:
https://support.google.com/adwords/answer/2472735?hl=en
LinkedIn. (2015, May 25). Ads Campaign Pricing Overview. Retrieved from LinkedIn:
https://help.linkedin.com/app/answers/detail/a_id/7431/~/linkedin-ads-campaign-pricing-
--overview
Marshall, G. W., & Johnston, M. W. (2015). Marketing Management. New York: McGraw-Hill
Education.
PEOPLEWORKS 34
Nolsoe Grunbaum, N., Andresen, M., Hollensen, S., & Khale, L. (2013). Industrial Buying
Behavior Related to Human Resource Consulting Services. IUP Journal of Marketing
Management, 12(3), 27-51.
ProMatcher. (2015, May 5). HR Consultants Cost and Prices. Retrieved from ProMatcher:
http://human-resources.promatcher.com/cost/
Puget Sound Business Journal. (2015, May 25). Rates and Products. Retrieved from Puget
Sound Business Journal:
http://www.bizjournalsmediakit.com/predownload.aspx?id=8661a5ab-c479-409a-b159-
c35349fa7347&at=1#page=1
Resourceful HR. (2015, May 5). Services. Retrieved from Resourceful HR:
http://www.resourcefulhr.com/
Seattle Business Magazine. (2015, May 25). Advertise. Retrieved from Seattle Business
Magazine: http://www.seattlebusinessmag.com/article/advertise
Seattle SEO. (2015, May 25). Packages. Retrieved from Seattle Search Engine Optimization:
http://www.seattlesearchengineoptimization.net/SEO-Packages.php
SHRM. (2015, May 25). Get Listed. Retrieved from Society for Human Resource Managment:
http://vendordirectory.shrm.org/GetListed.aspx
Small Business Expo. (2015, May 25). Exhibit. Retrieved from Small Business Expo:
http://www.thesmallbusinessexpo.com/exhibit/
YouTube. (2015, May 25). Advertising Overview. Retrieved from YouTube:
http://www.youtube.com/yt/advertise/index.html?subid=us-en-bs-
v_ads_search_aware&sourceid=awo&utm_source=online_ads&utm_medium=adcpc&ut
PEOPLEWORKS 35
m_campaign=google_search&utm_term=youtube%20advertising%20cost&utm_content
=en_us&gclid=CjwKEAjwkcWrBRDg5u6SuPS11C0SJAChL
PEOPLEWORKS 36 Appendix
Industry sales data analysis for the state of Washington taken from the Barnes Report
2014FirmSize
NumberofFirmsinWA
TotalEmployedinthisfirmsizecategoryinWA
TotalIndustryRevenueinWA
Averagerevenueperemployeebasedondata
Averagerevenueperfirmbasedondata
Averagemonthlyrevenueperfirmbasedondata
TotalRevenueofourfirmbasedonScenario
MonthlyrevenueofourfirmbasedonScenario
MontlyrevenueofourfirmperconsultantbasedonScenario
ScenarioA 4 148 443 44,700,000$ 100,902.93$ 302,027.03$ 25,168.92$ 403,611.74$ 33,634.31$ 8,408.58$ScenarioB 6 17 103 14,500,000$ 140,776.70$ 852,941.18$ 71,078.43$ 844,660.19$ 70,388.35$ 11,731.39$
2015FirmSize
NumberofFirmsinWA
TotalEmployedinthisfirmsizecategoryinWA
TotalIndustryRevenueinWA
Averagerevenueperemployeebasedondata
Averagerevenueperfirmbasedondata
Averagemonthyrevenueperfirmbasedondata
TotalRevenueofourfirmbasedonScenario
MonthlyrevenueofourfirmbasedonScenario
MontlyrevenueofourfirmperconsultantbasedonScenario
ScenarioA 4 152 457 49,100,000$ 107,439.82$ 323,026.32$ 26,918.86$ 429,759.30$ 35,813.27$ 8,953.32$ScenarioB 6 18 106 15,900,000$ 150,000.00$ 883,333.33$ 73,611.11$ 900,000.00$ 75,000.00$ 12,500.00$
PEOPLEWORKS 37 Appendix Cont.
TradeshowcostdataBoothRentalFee
AdditionalMarketingPackageFee
AnnualDate
MajorRegionalSmallBusinessExpo 2900 1000
IncludesAdinExpoShowguide,Facebook&Twitter;registrantlistw/name,company&email;and1yearsubscriptiontoemailmarketingservice July
SeattleChamberofCommerceSmallBusinessTradeshow 475 MayBellevueChamberofCommerceBusinessShowcase 500 June
IndustryDirectoryListings
AnnualAdvertisingFee
DiversityRecruitersNetwork 1000
SocietyforHumanResourceManagement 2000
