Marketing for Startup Growth

1. What are strengths and weaknesses in Hubble’s current business model? What are
the expected changes in consumer behavior and decision making for the business
model to work?

Hubble is a subscription-based consumer contact lens brand promoted through social

media. They used data-driven strategies to target and engage with potential customers.
The problem they face is thinking about the marketing strategies that have led them to
their current success and discussing changes that will allow them to grow exponentially.

Strenghts:

- The attractive packaging helps to get more attention through social media
- Low-price product
- Primary supplier advantage, building relationships with consumers and some
optometrists
- Low-weight product leads to low transport costs
- A high level of customer loyalty is achieved through annual subscription

Weaknesses:

- Customer retention seems to be a problem because of 4% monthly churn rate

- Optometrists believe Hubble lenses are inferior to the leading technologies available
- It is easy for competitors to create a DTC brand that can compete with Hubble
- Packaging and social media attraction may be limited to a specific niche

Expected changes in consumer behaviour and decision making

- Perceive worsened vision

- Make optometrist appointment Hubbles website info about nearby optometrist
- Optometrist perform eye exam
- Consult optometrist on type of eyewear Hubbles B2B push efforts
- Optometrist fits a particular brand
- Receive a prescription
- Fill the prescription
- Receive lenses
- Use and evaluate contact lenses

2. How efficiently does Hubble acquire and retain customers? What do they do well?
What needs improvement?

Customer acquisition and retention:

Hubble uses data-driven strategies to identify and reach potential customers who are
likely to be interested in their contact lenses. This targeted approach enables the
company to optimize its advertising efforts and improve customer acquisition efficiency.
By tailoring its marketing messages to individual customers and their preferences and
needs, Hubble increases the chances of attracting new customers. Personalization helps
create a stronger connection between the brand and its target audience.

Hubble's subscription model offers customers convenience and cost savings. Regular and
hassle-free contact lens delivery increases customer loyalty and promotes long-term
retention. Hubble actively encourages customer feedback and uses positive reviews as
testimonials in its marketing efforts. This approach builds trust, credibility, and loyalty
among existing and potential customers, helping to increase customer retention.

Improvement:

Improving aspects such as website usability, order fulfillment, and customer support can
further solidify customer satisfaction and retention. Although Hubble employs data-
driven strategies, continuous optimization of marketing campaigns and customer
contacts can help refine the approach. Regular analysis of data and feedback can identify
opportunities for improvement and increase the efficiency of customer acquisition.

3. Assess how Hubble has used owned, earned, and paid media to support the
customer journey and move customers through the acquisition funnel? What needs
to change as the company scales? Why?

Hubble has used proprietary media channels such as its website, social media accounts
and email marketing to target customers at different stages of the acquisition funnel. The
company has created informative and engaging content on its website that allows
potential customers to learn about its contact lenses and subscription model. Hubble has
used paid media channels such as online advertising, influencer partnerships, and
sponsored content to reach a broader audience and drive customer acquisition.

As the company grows, it is critical for Hubble to diversify its paid media channels. The
company should explore additional advertising platforms and channels that align with
the preferences and behaviors of its target audience. This will reduce the risks associated
with over-reliance on a single advertising platform and increase reach. As Hubble scales,
it will collect more customer data, making it important to improve its data analytics
capabilities. Using advanced analytics tools and techniques will enable deeper insights
into customer behavior, optimize campaigns, and improve customer targeting for better
acquisition funnel movement. Implementing a robust CRM system enables Hubble to
efficiently manage and maintain customer relationships as the company grows. This
includes personalized communication, tracking customer interactions, and providing
timely support. A CRM system helps improve the customer journey and enables effective
customer engagement strategies. As the customer base grows, Hubble must ensure that
the customer support infrastructure scales accordingly. Investments in technology,
additional support staff, and streamlined processes help ensure excellent customer
service and a high level of customer satisfaction.

4. What is the role of offline and online advertising in acquiring Hubble customers?
Evaluate the following decisions facing Hubble regarding online versus offline media
allocation:
 As of April 2018, Hubble is allocating 78% of its paid media spend to online
advertising and 22% to traditional channels (i.e., TV, radio, podcast, and direct
 mail). Is this budget allocation between online and offline appropriate and if
not, how would you adjust it?

Here's an assessment of the budget split between online and offline advertising and
suggestions for adjustments based on some of the 6 M's:

Marketing: Hubble's target market consists of tech-savvy consumers who are likely to be
active online. Online advertising fits well with the preferences of the target group and
enables targeted and measurable campaigns. However, it is important to consider whether
the target group also uses offline channels and whether offline advertising can reach
untapped segments.

Message: Assess the nature of the marketing message and its compatibility with online and
offline platforms. Online channels offer flexibility for dynamic and interactive content, while
offline channels may be better suited for storytelling and brand building.

Media: Evaluate the reach and impact of every ad. Online advertising offers precise
targeting, broad reach, and real-time data, making it an attractive option. However, offline
channels such as television, radio, and direct mail can still achieve great reach, especially
among certain demographic groups or geographic areas.

Money: Consider the cost effectiveness of online and offline advertising. Online channels
often offer more cost-effective options, especially for startups and direct-to-consumer
brands like Hubble. Offline channels, on the other hand, may require a higher investment
but can offer significant reach and brand exposure. Assess the budget allocated to each
channel and evaluate the ROI for both online and offline efforts.

Measurement: Online advertising typically offers more comprehensive tracking and

measurement capabilities that enable real-time optimization and performance analysis.
Offline channels may require additional tracking mechanisms, such as custom URLs or
unique promo codes, to accurately assess their impact.

 Based on the results of the TV test campaigns (i.e. the $1 Million test across
different markets and the World Series TV test), would you recommend that
Hubble switch some of its spending to TV? Why or why not? How much do
you trust the data coming out of these tests?

Marketing: If the target market includes a significant proportion of people who watch
television programs, it may be justified to allocate a portion of the budget to television
advertising. Assess whether the TV audience matches the demographic characteristics of
Hubble's target audience and whether TV can effectively reach untapped segments.

Media: TV advertising can have a wide reach and impact, especially during popular events
such as the World Series. Assess the potential impact of TV advertising in terms of increasing
awareness, creating brand recall, and driving website visits or conversions. Compare this to
the reach and impact of online advertising channels.

Money: TV advertising can be more expensive and requires a significant investment.

Consider the available budget and potential return on investment (ROI) of TV advertising
compared to online advertising. Assess whether the additional investment in TV advertising
is compatible with the company's financial goals and resources.

Based on the information provided, it is difficult to make a final recommendation to switch

spending to TV without detailed insight into the specific test results. The decision should be
based on a comprehensive analysis of the test data and consider factors such as reach,
impact, cost and alignment with Hubble's target market.

 Should Hubble continue to spend the bulk of its budget on reaching new
consumers or reallocate some of that spending to retarget those who have
already been exposed to its ads? Why?

Market: Evaluate the growth potential of new customer acquisition versus the value of
retaining existing customers.

Message: Tailor the marketing message to the specific goals to reach new customers or
retarget existing customers.

Measurement: Use data and analytics to measure the effectiveness of each strategy and
make data-driven decisions.

Ultimately, Hubble should strike a balance between reaching new customers and retargeting
existing customers. Allocating a portion of the budget to retargeting can help nurture
customer relationships, increase lifetime value, and drive loyalty. However, the exact
allocation depends on factors such as growth potential, customer retention rates and the
competitive landscape. Regular analysis of data, campaign performance, and customer
behavior provides insights to optimize media allocation strategy.

5. As Hubble prepares to scale its business following its upcoming fundraise, how should
they allocate capital across the following decisions? Which, if any, would you
priotitize in the short term?

In terms of short-term prioritization, it is prudent for Hubble to focus on expanding its

product line and potentially explore the wholesale model or reseller options. These decisions
leverage Hubble's existing strengths and customer base while allowing for additional growth
and market reach. However, the final prioritization should be based on Hubble's overall
business strategy, financial capabilities and market opportunities.

For the pitch: calculate for capital need, asking for money fort he project

Human capital, salary