Table of Contents

Executive Summary 2
Problem Statement 2
Situation Analysis Company Objectives 2 Company Background 3 S.W.O.T. Analysis 4
Market Analysis 5
STEEPL 6
Consumer Analysis 7
Case Keys 8
Alternatives 9
Recommendation 10
Action Plan 10
Contingency Plan 11 Appendix A Exhibit 1 Segmentation Chart 12
Bibliography 12

Executive Summary
MMI Product Placement Inc., established in 1985, is the pioneer in the business of product placement in Canada. MMI leveraged its relationship with the Canadian entertainment industry to incorporate its clients’ brands into films and TV shows. Greyhound, the country’s largest provider of intercity bus transportation, recruited MMI services to provide cost-effective ways to communicate its marketing message to consumers. Philip Hart, president of MMI, was preparing to make a final pitch to sign up Greyhound as client.
For Greyhound, the major competitors include VIA Rail, owned automobile, and airline transportation companies. The consumer segmentation can be divided into three groups including college and university students, newer professionals and established professionals. The target market will be age 18 to 24 college and university young professionals. Philip Hart needs to decide which promotional vehicle would be best for Greyhound’s product placement. The alternative choices include to stick with traditional advertising, or product placement on TV series shows like “Corner Gas” or “Canadian Idol”. We would recommend that MMI present Greyhound in the TV series called “Making the Cut”.
Problem Statement
Philip Hart, president of Toronto based MM1 Product Placement (MM1) is close to signing Greyhound Canada as a client. The main issue is to find the best promotional vehicle, a new show called “Making the Cut” or an already well-established show like “Corner Gas”, for Greyhound in order to achieve the best exposure and maximum client satisfaction.
Situation Analysis

Company Objectives:

Objectives for MMI The short-term objective is to assure Greyhound’s marketing director that product placement is beneficial and persuade them to sign as a client. The long-term objective is to determine the best promotional vehicles for its clients, sustain relationship with the entertainment industry, and nurture relationships with current and potential clients.

Objectives for Greyhound
The short-term objective for Greyhound is to reposition itself in the marketplace so that product placement will be effective and increase customer awareness. The long-term objective for Greyhound is transporting the population effectively and efficiently inside the city limits and avoiding negative social and environmental costs of operating the system.
Company Background:
MMI Product Placement Inc. pioneered product placement in Canada in 1985 and has maintained its leadership role ever since. It had over 2,000 product placements to its credit in feature films and TV episodes. Its mandate was to select the best placement opportunities for its clients, to negotiate placement contracts for client brands and to offer value by providing exposure at an extremely attractive cost per thousand viewers. MMI reviews scripts from TV and Film companies to look for product placement opportunities for its clients.
Greyhound Canada, Canada’s largest provider of intercity bus transportation, owns 40% market share. It serviced 6.5 million passengers each year and its Greyhound running dog is one of the most recognized brands in the world. Primarily it is known for its transportation services for medium to long distance travels, many travelers actually use it to commute to and from work.

S.W.O.T Analysis: MMI Greyhound
Strengths - Have been in business for over 20 years and is well established in the industry. -Has an established customer base with over 2,000 product placements in feature films and TV episodes. - MMI has a proprietary Placement Quantifying Scale for measuring the value of each placement. - Strong relationships with the Canadian entertainment industry. - Provide cost-effective promotion; reasonable cost per thousand viewers (CPM). - Greyhound, an intercity bus transportation company with 75 years history, provides safe, enjoyable and affordable travel to 6.5 million passengers each year.
-Greyhound running dog was one of the most-recognized brands in the world. - Planning on doing product upgrades including internet service on buses. -Traditional Ad (30 secs cost CDN$14,000) while the cost of a product placement in a scene is Cdn $2,500, so this is a much cheaper alternative.
Weaknesses - There are no generally accepted performance metrics to measure performance.
- Measuring the amount of people that watch a particular show is time consuming and expensive.
-They only offer product placement services, where other advertising companies offer more services. - Currently not at the top of the list as a travel method for most consumers. -For the measurements obtained from outside companies they are based on statistical sampling and estimates. As a result Greyhound cannot be assured on the exact level of awareness that will be generated. - Limited market share. Even Greyhound has a market share that approached 40%. The major target consumer was 32% earned over $35,000 and 48% had a college degree. 50% of these customers had used an airline. Greyhound must strive to maintain existing customers and find away to attract new customers.
Opportunities - Demand for product placement is increasing- by 2010 product placements would be present in 75% of all prime time scripted shows. - Greyhound is the largest provider of intercity bus transportation and MMI has a great opportunity to have the as a client. - Buses a more convenient way for people traveling in Canada due to its longer distances.
- Many passengers (young professionals) of Greyhound used the service to commute to and from work.
-Changing tradition transportation option by adding “alive and well”. Provide wire on Greyhound buses for internet access.
Threats - Growing competition from full service ad agencies that provide product placement as “one-stop shop”. - Product placement is a small portion of the total TV advertisement spending. - If airlines become more affordable they would be top of the list on consumers’ minds to save time instead of buses.
- Rising fuel cost. Gas price have been rising steadily over last five years. This poses a potential threat to any transportation service provider relying on gas line.

Conclusion:

Greyhound was in the middle of organizational strategy change. Greyhound should take advantage of the opportunity to attract young professionals who us service to commute to and from work. By providing affordable, convenient, and safe travel, the new marketing promotion strategy should also emphasize on “alive and well” transportation option and build awareness for consumers.

Market Analysis:

Overview:
Product – The transportation industry has grown dramatically in recent years. Greyhound’s scheduled services compete with the private automobile, low-cost airlines and other intercity coach companies.
Place – Most of the bus terminals are in major cities and within easy access. The location for the bus company is a very important factor to consider as many customers would want to get there without much hassle. Price – Air travel prices are declining because of a lot of competition (West Jet vs. Air Canada) and they are becoming more affordable. The average price of a Greyhound ticket is $45 which is a reasonable fare compared to air ticket or train ticket. Promotion – Greyhound needs to reposition itself in the market place with the help of appearing in a TV series to get audience attention.
Competition:
There are major medium and long distances transportation providers around the GTA area include VIA Rail, owned automobile, and airline transportation companies. The Following is the duration time and fare related to one way route from Toronto Union station to Montreal PQ.

Modes Strength Weakness
Air
-Safer and easier way to travel especially for new parents. - Majority of long distance travelers - -Fastest mode of travel fares getting cheaper - Waiting lines at airport - Wait to check-in luggage and pick it up. Rail - Faster - Comfortable - No waiting time - Trains take the same amount of time as bus and they are more expensive.
Bus
- Many locations to get on or off and goes through major populated cities - More affordable than train or plane. - No wait time - Uses regular highways which could be crowded due to rush hours or accidents. - Slowest mode of transportation.

Greyhound
(Greyhound website) VIA Rail
(VIA website) Owned automobile
(Google map) West Jet
(WestJet website)
Duration (average) 8 hrs 6hr 48 minutes 7 hr 23 minutes
(by Google map 1 hr 17 minutes
Price (one adult) $56 $121 $290.7 * $204

- Price based on business reimbursement $0.45/km * 646 km = $290.7

Positioning Chart:

1. Airline
2. Passenger owned automobile
3. Greyhound
4. VIA Rail

STEEPL (PESTE):
Social
Greyhound’s goal is to make a safe, pleasant and convenient experience. The drivers, customer service personnel and contractors are available to meet the needs of passengers with special needs (customers with disabilities). (www.greyhound.ca)
Technological
Greyhound has put a brand new spin on the idea of the wireless router. Now passengers can access the internet super highway from the regular highway. Greyhound should also invest in upgrades within the buses such as TV’s and personal air-conditioning etc., that can increase the value the consumers receive.
Environmental
Greyhound is a greener means of transportation. It’s more environmentally friendly; their fuel-efficient engines take close to 40 cars off the road per day. It generates nearly three times less carbon dioxide per passenger, per mile than a hybrid vehicle. Greyhound should annually test their buses to ensure their compliance with these environmental laws.
Economic
The current economic climate promotes using more affordable ways to commute which Greyhound is clearly providing. Greyhound provides several deals and discounts which include advance purchase, web only fares, student fares, and friends & family promotion package.
Political and Legal
Greyhound is responsible for adhering with the acts of Transport Canada, a government body responsible for developing regulations, policies and services of transportation methods in Canada. Their buses should meet the standards set by Transport Canada.
Conclusion:

The social, environmental and economic factors are most favorable to Greyhound transportation service. Technology has to be enhanced during year 2005.

Consumer Analysis:
Greyhound’s passengers consisted of 32% who earned over CDN $35,000 per year, and 48% who had a college degree. 50% of this group traveled for business purposes and used an airline in 2004. Most passengers own automobiles. They used the bus service due to safe, economical or environmental reasons. Half of all Greyhound passengers used the service more than five times a year.
As a result of commuters, Greyhounds new target market are the young professionals age 18-44. They concentrate on the younger age students (age18 to 24) so that they can win these passengers over and hopefully continue the services when they became employed.
Segmentation:
The segmentation chart provided in Appendix B is based on the type of passengers that would like choose certain kinds pf transportation tools to travel.

Conclusion:

Greyhound should also focus separate marketing mixes for the other selected targets as there is potential for the company to grow within these segments as well.

Financial Analysis

1. How affordable is it?

Following is the estimated placement value of Greyhound in Making the Cut by using MMI-PQS template.

TV program Cost of 30-second spot($) Placement rating (%) Placement value ($) Viewership
Corner Gas 14,000 100 21,000 1,150,000
Canadian Idol 10,000 100 15,000 1,425,000
Making the Cut 2,500 100 3,750 368,000 *

The value of product placement was per following:

Value of placement = Cost of 30s spot ($) * placement value (%) * multiple airings factor (#) = $2,500 *100% *1.5 = 3,750

Estimated viewership for Making the cut = 3,750/66,825*6,543,000 = 368,000.
Product placement cost between 15,000 and 50,000 as a fixed annual fee.
Conclusion:

The cost of using “Making the Cu” will be affordable by Greyhound and may achieve more favourable results than the other alternatives.

Case Keys

Key Success Factors:
• Having the Greyhound bus portrayed in a favourable light in whichever show it is featured. Having success with product placement to achieve a cost per thousand viewers that the client is pleased with.
• Provide affordable, convenient and safe travel experience and eco-friendly new trip method.

Key Uncertainties:
• Viewership data for Making the Cut would not be available until after the show aired, making it impossible to know that the audience would match Greyhounds target market.
• The promotion from competitors such as VIA train and airline.
• Unpredictable knowledge if product placement is making a difference to their business or not, no measurable way to gauge the effectiveness.
Alternatives

1 – Place Greyhound into TV serial Making the Cut: Last Man Standing
Pros:
• Good exposure with serial of 21 episodes with 45 seconds total exposure in each episode allowing the brand image logo to be clearly viewed by the audience.
• Hokey is popular among the 18 to 44 age group and target audience is the 18-24 year olds that Greyhound is aiming for.
• Show is scheduled on nationally during the week-end prime time on the Global television network.
• The cost is desirable compared to television commercial that is shorter.

Cons:
• Viewership data will not be available until after the show aired.
• Absence of track record means that Hart could neither guarantee viewership nor provide detailed audience demographics.
• The show is new and might not be successful.
• Greyhound may not like using a new show.

2 – Placing Greyhound into a hit show like Corner Gas or Canadian Idol which has a built-in audience Pros:
• Viewership data is available and MMI can provide more accurate audience demographics information.
• High probability that the media would be most noticeable due to viewer statistics being the highest.
• Many opportunities in the show to use product placement.
• Re-runs continue to air allowing the product to be seen over and over
Cons:
• It would be difficult to fit Greyhound to the same degree as it would be placed in Making the Cut due to the nature if the show “Corner Gas”.
• As the show is very popular and established the cost will likely be higher.
3 – Status quo. Greyhound sticks with traditional advertising and wait for another opportunity better suited.
Pros:
• The audience demographics and tangible metrics can be measured.
• Allow Hart more time to think on another solution
• Find a better match to Greyhound’s needs.
Cons:
• It is inefficient way to attract new target market-age group 18 to 24.
• Greyhound needs action now and not later.
• Opportunity once there could be lost forever.

Recommendations:
MMI must choose the best promotional vehicle for the Greyhound product in order to achieve the best product exposure and maximum client satisfaction.

The primary recommendation at this time is for Greyhound to take the script for the reality-based TV series “Making the Cut”. The most attractive reason would be the 36 hockey players include 18 who are current or former Canadian Hockey league juniors. Hockey is number one sport among Canadian boys. The college or university student’s age group of 18 to 24 would like this show due to the fact that the atmosphere is as realistic hockey environment. The visible Greyhound logo will be featured prominently during 45 seconds in each episode and represent an important transportation tools for its target market – young professionals.
Action Plan:
Immediate Action Plan:
• Phil Hart presents the final pitch to the Greyhound marketing team for placing buses into Making the Cut.
• Hart will promote cost-effective methods in the pitch. The new script, without guaranteed viewership or detailed audience demographics data can be used to negotiate low placement costs of an equivalent 30-second commercial.

Long-Term Action Plan
• MMI should gather more viewership or detailed audience demographics for every product placement from both film and TV. The history data can be used to support any future product placement in the similar films and TV episodes.

Contingency Plan
Hart should prepare another script for Greyhound as a backup plan. The backup plan can either be a hit show like Corner Gas or Canadian Idol since the viewership is the highest for that TV program. The guarantee viewership and detailed audience demographics may be accepted by Greyhound even though the cost may be higher.
Greyhound is a well-known brand already, so current customers must be constantly reminded about it. The brand must be reinforced in the minds of the customers.

References:

1. www.greyhound.ca