M + K

Agency
WILLIAMSBURG
IDEAS TO INNOVATION
"







Creati vi ty i s an adverti si ng
agency s most val uabl e asset,
because i t i s the rarest.
- Jef. I Ri chards








#
TABLE OF CONTENTS

Executi ve Summary 3
M+K Agency 5
Recrui tment
Cul ture
Company 7
Vi si on
Executi ve Team
Board of Advi sors
Target Market 9
Customers
New Busi ness Pi tch Process
M+K Agency Servi ces 10
Soci al Medi a
Pri nt and Brandi ng Desi gn
Publ i c Rel ati ons
Pri ci ng 11
Opportuni ti es & Threats 12
Competi ti on
Growth & Expansi on 13
Worst Case
Exi t Strategy
Terms of Agreement 14
Appendi x 15
I ncome Statement
Assumpti ons






$
Executi ve Summary

M+K LLC. is an advertising agency built to offer creative solutions for businesses
in the Greater Williamsburg area. Currently the opportunities for College of
William & Mary students to pursue advertising opportunities alongside
coursework is practically nonexistent. M+K is the answer to this problem.

Founded by a previous W&M Marketing graduate, M+K will function as an Ideas
University. Students will gain real-world experience with account management,
strategic planning or copywriting and art direction. Workshops, networking
functions, guest lectures, and scholarships will be offered to immerse students
for a semester in the advertising trade.

The culture created at M+K is integral to the companys objectives. Students will
be drawn to the atmosphere of team collaboration, total transparency, and
rewards for innovation. Through an exclusive agreement with W&M, M+K will
implement advertising campaigns for local businesses. Students will go through
the process of new business pitching, creating a campaign, and measuring its
reach. The W&M brand, with a marketing program that is ranked #1 nationwide,
will elevate M+Ks position in the market.

M+Ks main sell for its clients is its expertise in social media marketing and
management. The agency workers are all up-to-date on the latest trends offering
a solution to businesses that have trouble with changes in the social sphere.

The market of agencies is fragmented with small consultants who perform
multiple functions or specialize in one niche. M+K will maintain a competitive
edge by offering businesses the option of a short-term commitment and a team
of workers who are replaced each semester to offer a continuous source of new
ideas.

M+K is seeking a loan investment of $220,000 at 10% in order to build workshops
and training programs for the students, create scholarship rewards, and fund new
business pitching through the start-up phase. The full principal will be repaid in
the seventh year of operations.

M+K is providing new opportunities for education advancement for students,
adding further integrity to the W&M Academic Program, and providing local
%
businesses with a source of new ideas. Just an idea at first that will soon innovate
advertising in Williamsburg.

Sincerely,

Meghana Indurti

Meghana Indurti
Chief Executive Officer of M+K Agency



















&
M+K Agency
M+K is an advertising agency fueled by the creative students individually chosen
from The College of William and Mary. It, at first, exists on a virtual space where
freelancers can collaborate together using chat and e-mail programs. M+K offers
marketing services for local clients in the Williamsburg area seeking help with
branding, social media, public relations, and print advertising. After producing
several ideas for a business, instead of wasting the unused ideas, M+K will
recycle and sell them with customization to other businesses.

M+K also functions as an Ideas University for students to gain first-hand
experience with the business of advertising. A group of freelancers are
contracted to work on an account for a semester where they are faced with real-
world client problems. M+K will maintain a lean model by only having two full-
time employees, the two founders, and subcontracting the students.

Recrui tment
The students are hired as freelancers through a competitive application system
that looks at relevant experience, GPA, and courses taken. Diversity of staff is
important and therefore students with skills in Business, Statistics, Art, English,
and other fields of study will be encouraged to apply. Additional elements are
based on the department. Account assistants will need to demonstrate a sales
pitch, strategy hires should have a good knowledge of excel and research
methods, and creatives will submit a portfolio of written works or art.

Depending on the account, there will be 1-2 hires in each of the three
aforementioned departments per account. Juniors and seniors will have
preference but competitive sophomores will also be considered. They will
collaborate together and report back time sheets and progress reports on a bi-
monthly basis or per request by the two founders. They will be billed by an hourly
basis negotiated in the contract. For certain projects, a flat fee option will be
available.

Account executives are responsible for new business searches, pitching, and
communicating with the client throughout the contract. Strategy workers will
focus on understanding the market research, consolidating audience insights,
and creating a marketing plan strategy to execute. Creatives will be responsible
for writing copy, creating graphic designs, editing media, and coming up with
ideas for the new business pitches.
'

Cul ture
Since an agency is run by ideas, maintaining a creative atmosphere is important.
Despite the lack of a physical office at first, M+K will engage in routine meetings
and conference calls that embed the company philosophy into the freelancers.
Ideas University will remain the core of the culture and the following programs
will be implemented so that the best talent will keep coming back semester after
semester.

Newsl etter: Once a week, the two followers will send an e-newsletter with
funny observations about the ad business, recent advertising, and community
events. Contributions can be suggested by anyone on the team.
Rewards: Scholarships and stipends will regularly be awarded to at least three
students to pursue advertising career prospects and contests across the country.
Workshops and Lectures: Alumni of this program, W&M professors, and
other distinguished personnel will be invited to hold conferences and labs
regarding the different fields of advertising and marketing. Key workshops in new
technology or business techniques will be important to stay competitive.
Total Transparency: Frequent virtual and in-person meetings will occur bi-
monthly where all the freelancers currently signed on will be in the clear
regarding the agencys outlook and their roles. Updates about individual projects
to other teammates, new business prospects, upcoming training plans, and
managements outlook on financials will create an open air.
Betterment of Soci ety: An important aspect of joining M+K and Ideas
University is the non-profit aspect of it. All of the freelancers will choose to
work together for a non-profit or cause of their choice, on or off-campus, and
help with promotion and planning for it. Freelancers are welcome to create their
own initiative or support an existing one. A budget will be provided for each
team. Ideally this creates a collaborative air where connections and learning is
possible from students working on other accounts.








(
Vi si on
To function as a continuously changing agency
of creative students that produces innovative
ideas that solve problems.

Executi ve Team

Chi ef Executi ve Offi cer
Meghana Indurti is a BBA Marketing and Entrepreneurship
graduate of the College of William & Mary. After receiving
her degree, she worked for Leo Burnett as a copywriter and
eventually progressed to become the Associate Creative
Director. Meghana is passionate about higher education
and has spent the past few years guest lecturing the
business department at the University of Chicago.

Chi ef Operati ons Offi cer
Kennedy Daniela Madriz graduated with degree in BA
Advertising and Finance from the University of North
Carolina, Chapel Hill. She has had her artwork displayed in 4
different art galleries in Guatemala City. After spending
several years as an Art Director at Bartle Bogle Hegarty, NY,
she transferred to Leo Burnett to become Creative Director. Daniela has spent
the last couple of years financing and running her own boutique agency in New
York, Madriz Productions.









)
Board of Advi sors

Ri ck Spatz
Spatz began his 30-year career in advertising with Leo
Burnett, moved to DAarcy, Madiusm and Benton & Bowles
where he worked with several international accounts. He
worked on strategy and account services for agency clients
such as Proctor & Gamble, Mars Inc, Nestle, Roche,
Cadbury, and Heinz. Currently Rick is the director of the
Executive Partners program at the College of William & Mary where he works
with the entrepreneurship center and the MBA Marketing students.

Ri chard Ash
Ash is a professor of Entrepreneurship and executive
director of the Entrepreneurship center at the College of
William & Mary. Ash previously founded Dilon Technologies,
Inc., a medical device company. He has also contributed to
the success of several venture capital firms. He is an
acclaimed professor for both undergraduate and MBA
students at the College where he has won multiple awards.

Loui se Pri tchard
She is currently the founder and co-owner of Patton
Pritchard Consulting, an advertising agency in the
Williamsburg area. Previously she was Senior Sales Manager
for FORTUNE magazine and was the Director of Marketing
for Holiday Inn Worldwide. She has served as the Director of
Marketing for a childrens hospital for two years. She is a part of the Executive
Partners program at W&M.

Sean Fi tzpatri ck
Fitzpatrick served a Chief Creative Officer for JWT
advertising agency, Vice President of McCann-Erickson
World Group, Creative Director of Bing Crosby Productions
and Columbia Pictures. He has won more than 300
international creative awards for his advertising campaigns.
He is a member of The Wall Street Journals Creative Legends Series and has
judged the Cannes International Advertising Film Festival. Currently he is an
adjunct lecturer and Executive Partner at W&M.
*

Mi chael Luchs
He is a professor of Marketing Research at W&M. He is
spearheading the Design Studio concentration and lecture
series at the college. He has acclaimed published research
especially in the area of sustainability. He has worked as a
consultant for PwC where he worked to improve product
development and marketing performance. He served as a senior Vice President
of Marketing for Labtec Inc. and as a Product Manager for Black & Decker.

Matt Mattox
Mattox is Vice President and Group Planner for the Martin
Agency in Richmond, Virginia. He is also an adjunct
professor at Virginia Commonwealth University. His
expertise is in serving as the conduit between the corporate
goals and the agency creative staff.


Target Market

Customers
The customers lie in the local Williamsburg and Hampton Roads community. This
area currently holds a variety of small businesses varying from dining services,
education start-ups, entertainment venues, financial services and banks, non-
profits, medical center, and other personal services.

Most of these businesses have a relationship with several local agencies that are
specialized in a particular skill or topic. Prospective clients need a team of
consultants better equipped with social media and brand channel management.
Although clients have social media handles, they are in need of more engaging
and consistent posts.

New Busi ness Pi tch Process
M+K holds a portfolio built through promotional work with College of William
and Marys student clubs and events. Additionally, using connections from the
executive partners, professors, and alumni of the college, cold calls and e-mails
will be necessary to start attracting clients.
"+

M+K will emphasize three points in the pitch process: relationship with W&M,
continuous employee turnover, and low-cost business model. Having a board of
advisors with professors and executive partners will allow internal promotion of
the agency from business, art, research, and other related classes.

A new set of students each year means an employee source that is updated with
the latest skillset in technology and tools. Agencies typically have a high turnover
rate. M+K has a built-in source for new ideas every year. Finally, with the agency
existing on a virtual space at first and a contractual system with only two full-time
employers, there is a constant supply of talent and only a short-term
commitment required.

M+K Agency Servi ces
Marketing campaigns will be tailored for the client focused on reaching a set of
brand objectives that the client and freelance team will outline prior to the
implementation. The process will begin with conducting in-depth research that
will identify the brands strengths and weaknesses, competition, target audience
trends, and external environment so that a clear positioning can be identified.
M+K takes what people already love about a brand and then expands the
clientele. Once the client narrows down the options of creatives on storyboard,
implementation will go according to schedule.

Defi ned M+K Approach:
1. Identify the clients need
2. Identify brand strengths in partnership with a 3
rd
party research agency
3. Identify M+Ks strategy based off of client goals and brand audit
4. Brief the creative team
5. Creative team synthesizes research to come up with a core idea
6. Implement the strategy through different channels (social, print, etc.)
7. Measure interaction between brand and consumer to focus energy on
different aspects of the strategy
8. Shelve rejected ideas for other brands to consider

Soci al Medi a
New media is old media overnight. Innovations are constant and cause
disruptions in strategic planning and outlook. Where there is disruption, there is
opportunity.
""

The competitive edge of M+K lies with social media management. Students
recruited each semester are currently millennials. They have grown up with social
media and understand best how to use it. Students will manage social channels
for accounts, including Facebook, Twitter, Instagram, YouTube, Tumblr, Vine,
Yelp and other necessary tools. Original engagement posts, photos, videos, and
graphics will be provided consistently according to the marketing plan.
Additionally an analysis of reach and social interactions will be given at the end
of each month.

Mobile marketing is gaining more popularity and therefore, development of
apps and targeted outreach will be explored for client projects.

Pri nt and Brandi ng Desi gn
Original photography and design of magazine, and newspaper ads can be
requested. For new start-ups and events, branding, logo design, and/or design
of menus and catalogs are offered. Website design and development is a
popular service for older small businesses looking to reach new audiences.

Publ i c Rel ati ons
Consumers increasingly demand a dialogue with brands they like. Services
include press releases, analysis of audience insights, connection of brands and
products with others to create sponsorship opportunities, and community
outreach. From the web to local newspapers, the brand will be represented
according to an approved PR strategy.

Pri ci ng
Two founders make $95 per hour and pay the difference to the contractors;
100 hours per month per account.

All of the following prices are per account.
Freel ance Account Executi ve - $20 per hour; 20-25 hours per month
New Business prospect research
New Business pitches
Client meetings and monthly reports
Community outreach
Freel ance Strategi c Pl anner - $30 per hour; 25-30 hours per month
Coordinating with 3
rd
party research agencies
"#
Conducting focus groups and market research
Industry audits
Measurement of ongoing campaigns
Brand management
Freel ance Copywri ter and Art Di rector - $40 per hour; 35-40 hours
per month
Coming up with creative storyboards for marketing campaigns
Putting together a brand position
Designing art and copy for the campaign
Design and editing of photography and video
Writing press releases and necessary blog posts
Social channel management

Opportuni ti es & Threats
Forbes.com consistently ranks Virginia the Best State for Business. The Greater
Williamsburg area has one of the lowest combined state and local tax rates in the
nation. The business cost of Workers compensation and Unemployment
insurance is the lowest in the nation. Williamsburg is characterized by small
businesses with 35% having fewer than 50 employees. Since the spring of 2013,
there have been 40 new established and private start-up firms.

Sourcing talent directly from W&M will help establish M+K quickly as The
College is the #1 employer in the Williamsburg area. W&M stands in the center
of the Williamsburg economy with consulting experience that students have
done for Williamsburg businesses for other classes. There is already a positive
relationship between W&M and the local market.

The majority of small businesses are adding social media into their Integrated
Marketing Communications mix. Offering a cost-effective approach and
reputable student body will capitalize on this trend.

Competi ti on
The competitive landscape is fragmented with many agencies and consulting
companies that even specialize in one skill or area. Very few of them offer more
than basic graphic design and printing services. However, the current companies
do have a strong relationship and contract with their clients that will make it more
difficult for M+K to interfere.

"$
Growth & Expansi on
M+K is in negotiations with The College of William & Mary and is currently
awaiting a finalized agreement. W&M agrees to encourage strong student
applicants to the program if M+K promises to exclusively hire from the College
and promote the partnership. The core goals and values of W&M align with
those of M+K, especially with the Ideas University segment. M+K will provide
W&M students with real-world opportunities and experience. The program will
draw nationwide attention.

Under the terms of agreement, W&M will agree to disseminate application
information and provide professors in relevant departments with the ability to
recommend strong candidates. W&M will also provide an opportunity to rent
conference rooms for client meetings and pitches and team meetings.
Additionally, the school will provide valuable consulting and networking
opportunities for M+K. The connections W&M currently has with local businesses
will give M+K a strong starting point to set up meetings.

In the second year of operations, M+K hopes to purchase a sales office where
the two founders can work and provide space for other teams to collaborate.
M+K will increase cost of Ideas University by spending more for computers,
scholarships and grants, and workshops and training programs for students.

Worst Case
If M+K cannot afford to put more investment into Ideas University, the sell to
W&M will be weak. Even at worst case scenario, M+K will operate at a profit. At
worst case scenario, only two accounts will be won and a total of six students will
be hired per semester. While a positive net income still exists, this is very risky for
an agency because there is no guarantee that the accounts will sign on for the
next term. Hours will either have to be cut or be wasted at low utility.

Exi t Strategy
M+K has requested a $220,000 loan from investors, with the agreement that
annual interest payments in the amount of 10% will be made beginning in the fall
of 2014. M+K is prepared to repay the principal amount of $220,000 in the
seventh year of operations.


"%
TERMS OF AGREEMENT
Required Investment: $220,000
Loan repayment beginning year 1 with an interest of 10%
Principal to be repaid in the 7
th
year of operations


































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APPENDI X 5: Assumpti ons
Fi nanci al s:
The business opens September of 2014
Business works on a tri-semester basis. September-December makes up
the Fall Semester. January-April makes up the Spring Semester. May-
August makes up the Summer Semester.
The user raised $80,000 from family and friends help.
M+K assumed that an hourly rate of $95 would be paid based on a
competitor pricing.
M+K assumes that a total of 100 hours will be negotiated in a contract per
month, giving about 1200 hours a year of service per account.
The number of accounts is assumed to be increasing by a constant growth
rate (1 new account per year). Given the loss of an account, a new account
must be found to replace it to maintain this strategy.
Account management, Strategy planning, and Creative team pay ratios
are derived and rounded evenly from U.S. National Average Salary for
those positions.
All financials are based on hourly rate calculations and no flat fee contracts
were included.
The Business Personal Property tax rate is 3.4% in Williamsburg
A Business License must be renewed each year at 35% of the gross
income
Sales and Use Tax is necessary for advertising services in the state of
Virginia. The Virginia and the additional Hampton Roads tax make it an
estimate of 6%.
A fee is undifferentiated based on service offered. For example, social
media channel management or logo design will both be offered at the
same hourly rate.
SG&A expenses include workshop funding, networking alumni outreach,
and funds for scholarships for students.
Adobe Software costs $70 per month and other computer equipment is
included in Software & Equipment Expense
Liability expense was derived from comparable quotes in Williamsburg
Average basic health insurance and benefits is $90 per month
Average cost for contract and lawyer consultation is $75 per hour
Rent expense is added in the third year of operations based on $1500 for
1500 square feet office space and utilities.

1axes 8eLurn 8aLe
ersonal roperLy 3.30 10
8uslness Llcense 36
Sales and use 6
# of AccounLs MosL Llkely 8esL WorsL
!"#$%&" ("$")*" +,-&*-,.%/) 0/1. 2%3"-4 5"1. 6/#1. 7/*#-4 (,." lall 2014-Summer 2013 4 6 2
# of AccounLs 4 6 2 $93 lall 2013-Summer 2016 3 7 3
Pours per monLh worklng 100 120 100 lall 2016-Summer 2017 6 8 4
1oLal Pours ln a year 1200 1440 1200 lall 2017-Summer 2018 7 9 3
LsLlmaLed 8evenue per AccounL $114,000 $136,800 $114,000 lall 2018-Summer 2019 8 10 6
8/.,- !"#$%&" ("$")*" 9:;<=>>> 9?@>=?>> 9@@?=>>> A#/B.C (,."
7/*#-4 (,." # of AccounLs MosL Llkely 8esL WorsL
+/1. /D !,-"1 0/1. 2%3"-4 5"1. 6/#1. E&&/*). $20 lall 2014-Summer 2013 - - -
E&&/*). FG"&*.%$" +/1. H"# ,&&/*). 9;=@?> 9:=?>> 9<=>>> !.#,."I4 $30 lall 2013-Summer 2016 0.23 0.16666667 0.3
Pours per monLh worklng 22 20 23 +#",.%$" $40 lall 2016-Summer 2017 0.2 0.14283714 0.33333333
1oLal Pours ln a year 264 240 300 lall 2017-Summer 2018 0.166666667 0.123 0.23
!.#,."I4 J-,))"# +/1. H"# ,&&/*). 9K=L@> 9K=>>> 9M>=?>> lall 2018-Summer 2019 0.142837143 0.11111111 0.2
Pours per monLh worklng 27 23 30
1oLal Pours ln a year 324 300 360
+#",.%$" 8",N +/1. H"# ,&&/*). 9ML=L<> 9M<=?>> 9MK=@>>
Pours per monLh worklng 37 33 40
1oLal Pours ln a year 444 420 480
E&&/*).= !.#,."I4= +#",.%$" H"# ,&&/*). 9O@=L<> 9O>=<>> 9O<=>>>
AccounL LxecuLlves 1oLal CosL $21,120 $28,800 $12,000
SLraLegy lanners 1oLal CosL $38,880 $34,000 $21,600
CreaLlve 1eam 1oLal CosL $71,040 $100,800 $38,400
8/.,- +/1. /D !,-"1 9MOM=>:> 9M?O=<>> 9L@=>>>
References

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