KATE FLOWERS BRENNA TEICHEN BEN WILKENING
Table of Contents Executive Summary .............................................................................................................................. 2 Assumptions ................................................................................................................................................ 3 Segmentation Strategy ................................................................................................................................ 5 Positioning Strategy .................................................................................................................................... 8 Differentiation Strategy .............................................................................................................................. 8 Competitive Analysis ................................................................................................................................... 9 Perceptual Map ......................................................................................................................................... 11 Marketing Objectives ................................................................................................................................ 12 Marketing Mix ........................................................................................................................................... 13 Advertising ................................................................................................................................................. 14 Communications Objectives ................................................................................................................... 14 Communication Effects Pyramid ............................................................................................................ 14 Promotion Budget .................................................................................................................................. 15 Copy Platform ............................................................................................................................................ 16 Message Strategy ...................................................................................................................................... 20 Media Plan ................................................................................................................................................. 22 Media Objectives .................................................................................................................................... 22 Media Strategies .................................................................................................................................... 22 Media Mix .............................................................................................................................................. 23 Media Budget ......................................................................................................................................... 34 Competitive Media Assessment ............................................................................................................. 34 Direct Marketing ........................................................................................................................................ 37 Website ...................................................................................................................................................... 39 Sales Promotion ......................................................................................................................................... 41 Public Relations ......................................................................................................................................... 42 Event Sponsorship ..................................................................................................................................... 44 Support Media ........................................................................................................................................... 46 Point‐of‐Purchase ...................................................................................................................................... 47 Evaluation of Promotional Plan ................................................................................................................ 49 IMC Budget ................................................................................................................................................ 51 1 | P a g e
The new Tag Heuer Executive Line is a set of luxury accessories designed from premium metals, precious gems and high quality fabric for business professionals who want to improve their social status and command respect from their peers. The Executive Line caters to both male and female professionals and includes the following accessories: watches, sunglasses, neckties, wallets, handbags and gloves. All consumers in the business field deserve to be rewarded for their success and can do so by purchasing one of the luxurious accessories available to them. Our plan focuses on people who earn an annual income of $75,000 or more and have purchased a dress watch in the last twelve months. Since the Executive Line consists solely of luxury goods, we target those who are able to afford such items. Our target audience is also more likely to be highly educated and ambitious, have an active lifestyle, prefer designer brands, and be conscious of their image. Due to the fact that luxury goods require high involvement decision making processes and that the Tag Heuer brand doesn’t have as strong a presence in the United States as in Europe, accomplishing an overall brand awareness of 80% is critical. With such a level of awareness, we can expect a purchase rate of 1.5%. When considering that luxury accessories are priced as such and the country is still facing poor economic conditions, we feel that this is an adequate figure. The following integrated marketing communication (IMC) plan introduces Tag Heuer’s new Executive Line through multimedia and non‐media communication devices to effectively reach and influence those within our target audience. Television, print and internet advertisements will be utilized for increasing awareness of the Tag Heuer brand in addition to non‐media elements such as an event sponsorship for the PGA Tour, direct marketing through the use of catalogues at the BaselWorld Trade Show, and point‐of‐purchase (POP) displays in high‐end department stores such as Nordstrom and Neiman Marcus. In order to integrate communication through all of these channels, a consistent theme of improved social status of owning and wearing a Tag Heuer accessory communicated through the association with a luxurious lifestyle. The Tag Heuer Executive Line will be launched March 1, 2010, timed to coincide with the PGA Tour and BaselWorld Trade Show, thereby creating an opportunity for publicity. In order to achieve our awareness of 80% to be comparable to other well‐known luxury brands such as Rolex and Louis Vuitton, 14.36% of our estimated first year sales will be devoted to the IMC plan resulting in the first year budget of $37,405,344.06.
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Assumptions 1. There is demand for a uniform luxury accessory line for business professionals. 2. People who buy watches over $500 also buy other accessories within a similar price range. 3. Our target market size is based on the projected number of adults that have purchased a dress watch within the last 12 months, and have an annual household income of $75,000+. 4. Because the products in Tag Heuer’s Executive Line are luxury goods and priced as such, a large discrepancy is anticipated between the percentage of consumers who develop preference for the products and the percentage who actually purchase. Therefore, a use rate of 1.5% is assumed. 5. Rolex and Louis Vuitton, the brands which Tag Heuer will be competing with, have brand awareness in the United States of at least 80%. Therefore, Tag Heuer has set the goal of reaching 80% awareness. 6. Typical markups are 2x wholesale or more for luxury goods (Appendix 4) and retail prices were estimated from the price ranges indicated in the Competitive Analysis (pages 8‐9). 7. Media mix consists of cable TV networks and time slots will be allocated, instead of specific vehicles, and is based on when business professionals are likely to have free time to become exposed to Tag Heuer advertisements. This is based on a general assumption of the typical work day from 8am to 5pm on weekdays. 8. The highest historical bid (CPM) on Google AdWords is the best estimate to use for budgeting purposes. 9. Since our target market is calculated as the number of adults who have purchased dress watches in the past 12 months and have an income greater than $75,000 (49.32%) this same ratio will be used to calculate the reach of individual media vehicles. Because of this assumption, reach will be calculated not by the percent down column in MediaMark, but by using the projected number column. 10. Trade advertising will exist in its current form of catalogue distribution to major retail partners and department stores and will not diverge from already established costs for doing so. 11. Tag Heuer sets up a tradeshow booth on a yearly basis at the BaselWorld watch and jewelry tradeshow. Costs associated with promoting products for this event are already included in a yearly budget plan for the company.
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12. We assume the cost to test our television ads will cost $15,000. 13. We assume the cost to test our print ads will cost $10,000. 14. Pre‐testing of our promotional plan components were conducted in‐house as part of our initial strategy development and incurs no additional cost. 15. The Tag Heuer website will experience increased traffic during and following its sponsorship of the PGA Tour – this is how the event sponsorship will be post‐tested for effectiveness. 16. The advertising‐to‐sales ratio calculated for LVMH, Tag Heuer’s parent company, could be inaccurate due to the fact that it owns many other luxury brands. For this reason, it may not be a helpful ratio in benchmarking with the advertising‐to‐sales ratio that we calculated for Tag Heuer. 17. Due to the fact that Tag Heuer already distributes POP displays to higher‐end department stores such as Nordstrom and Neiman Marcus, the replacement of existing displays will not incur any additional costs for our POP promotions. 18. Because Tag Heuer already has an existing website, no additional costs will be incurred for the addition of the Executive Line. Web development costs are already included in Tag Heuer’s corporate costs. 19. Trade advertising will exist in its current form of catalogue distribution to major retail partners and department stores and will not diverge from already established costs for doing so. 20. Tag Heuer sets up a tradeshow booth on a yearly basis at the BaselWorld watch and jewelry trade show. Costs associated with promoting products for this event are already included in a yearly budget plan for the company. 21. Top three watch review and blog sites are ablogtoread.com, watchreport.com, and wristwatchreview.com based on a search for “top watch review sites.”
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Segmentation Strategy Segmentation Variables
Main Dimension CUSTOMER CHARACTERISTICS Geographic
Segmentation Variable Typical Breakdowns Region City or metropolitan statistical area (MSA) size Density Climate
Age Sex Family Size
25 to 34; 35 to 44; 45 to 54 Male; female Any Engaged; now married; never married Youngest child under 6; youngest child 2 to 5; youngest child 6 to 11 Any $75,000 to $149,999; $150,000+ Professional and technical; management; business and financial operations; sales and administrative Some college; college graduate; post graduate Caucasian; Black/African American; Asian; multiple classifications; other Own home House; apartment; condominium
Stage of family life cycle
Ages of children
Children under 18 Income Occupation
Home ownership Dwelling Personality
1,000,000+ Urban, suburban Northern; Southern
Gregarious; extroverted; ambitious; goal‐driven; adventurous; creative 5 | P a g e
Life style BUYING SITUATION Benefits Sought
Product features Needs
Benefits Rate of use User states
Awareness and intentions
Readiness to buy
Brand familiarity Buying condition
Type of buying activity Kind of store
Conscious of image; prefers designer brands; center of attention; interested in the arts; travels; active Premium metals; precious gems; high quality fabric Product line catered to business professionals Image; quality; status‐ symbol; convenient ���Medium user; heavy user First‐time user; potential user; regular user; converted customer Aware; interested in luxury brands; desirous buyers; intending to buy; dissatisfied with competitor offerings Familiar; recognize brand; familiar with competitor offerings Comparison buying; special effort buying Specialty
Target Market Definition and Size The target customer for the Tag Heuer Executive Line is male or female between the ages of 25 and 54. These customers have an average annual income above $75,000 and are likely to work in the fields of professional and technical management, business and financial operations or sales and administrative services. Typically they will also have attended at least some college and will be of African American, Asian, or Caucasian descent. The target customer is likely to own their own dwelling, whether it be a single family home, apartment, or condominium (Appendix 1). The line will be targeted toward those with gregarious and ambitious personality traits whose lifestyles center around image consciousness and a preference for designer brands. These customers are seeking products made from the highest quality materials that serve as a 6 | P a g e
marker of status, they are also seeking a line of products which will be convenient to choose from, they do not want to risk buying an accessory that will send the wrong signal (Appendix 2). Target Market Size: 5,221,000 (Appendix 1: Based on MediaMark: Adults that purchased dress watches within last 12 months and have a household income of $75,000 or greater)
Trade Target Market Definition and Size Direct to Retailer: Distribution will take place directly to the retailers within the major cities of the United States. Due to the fact that this is a new product line for business professionals, this will be the first stage of introduction. Major cities include but are not limited to: New York City, Los Angeles, San Francisco, Chicago, San Diego, Miami, and Washington D.C. (Appendix 3). The retailers that will be targeted will be upper‐end department stores, such as Nordstrom and Neiman Marcus. We will limit distribution to the top two highest traffic stores within each of these major cities.
Direct to Consumer: There will be direct to consumer locations in the major airports in order to be accessible for business travellers. There will be offerings on the Tag Heuer website as well, for those who prefer to shop online or do not have access to the major cities listed above.
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The Tag Heuer Executive Accessory line will be predominantly focused around offering an alluring and prestigious signaling device that is indicative of both fashion appeal and status as a social symbol in the professional work environment. In the current landscape, there is not a luxury brand who currently services the business professional in any specific sense. Additionally, there is not an easy, convenient, uniformly branded choice set for aspiring or existing white collar professionals who wish to tie together a wardrobe for the workplace while signaling status and power (Assumption 1). We wish to proliferate the culture of the Tag Heuer brand into this extension category as to not undermine the company’s overall image, but rather to build upon it in a meaningful way which reaches a segment of professionals who may look elsewhere to purchase or who otherwise opt out completely.
Differentiation Strategy Tag Heuer will offer a coherent line of accessories catered specifically toward the business executive who is looking for a competitive edge as it relates to status and prominence in comparison to his/her peers. The emotional draw of this will be one of a remarkable identification with the Tag Heuer brand as the marquee brand in this category. Class, professionalism, success, intellect and clout will be instantly referenced whenever someone thinks of the Tag Heuer Executive line. 8 | P a g e
Competitive Analysis Competing Product Category
Other luxury watches
Watches made of top quality materials, purchased for emotional rather than functional appeal
‐No battery ‐Perpetual motion charging system ‐Components made from high quality precious gems ‐Comprised of almost exclusively precious metals ‐Long lasting, resilient
Lower end: $250 Upper end: >$20,000
The design of Tag Heuer’s Executive watches will be less rigid, include less specific functions, will not only be made of highest quality materials but will also be easily recognized as such.
Lower end: $50 Upper end: $500
Tag Heuer’s executive sunglasses will be subtly styled to match the unassuming sophistication of the businessperson. They will not be as flashy or glamorous as the typified luxury sunglass brands.
Watches ‐Calvin Klein ‐Dolce & Gabanna ‐Versace ‐Emporio Armani ‐Kenneth Cole ‐Hugo Boss ‐Rolex ‐Omega ‐Coach
Sunglasses Other luxury sunglasses
Sunglasses made of top quality materials, recognizable as a symbol of status
‐Frames made of top quality metals ‐Recognizable, prestigious logo at temple ‐100% UV protection
‐Gucci ‐Channel ‐Calvin Klein ‐Dior ‐Cole Haan ‐Versace ‐Prada ‐Burberry ‐Yves Saint Laurent ‐Hugo Boss ‐Coach
Neckties 9 | P a g e
Other luxury neckties
Neckties made of top quality materials and variation in style based on occasion
‐Silk ‐High thread count ‐Aligns with latest industry styles
‐Calvin Klein ‐Collezioni Armani ‐Kenneth Cole ‐Hugo Boss ‐Burberry
Lower end: $40 Upper end: $200
Consistent styles and patterns that are impactful in a way which illustrates a high level of professionalism. Colors will not be too bright or subtle. Bold but not flashy. Patterns will not be too busy, they will be simple but stylish.
Wallets Low end: $20 Upper end: $800 Handbags Low end: $150 Upper end: >$5,000
Handbags will be sleek and unassuming while at the same time being instantly recognizable with their prestige. Bright colors and gaudy hardware will be avoided, extraneous pockets, etc. will also be absent. They will be made from higher quality leathers such as buffalo and lambskin.
Low end: $30 Upper end: $500
Differentiation among the gloves will be less pronounced than the other accessories but will rely on the added brand value and be a complementary piece to the rest of the Executive Line. The gloves will be simple, without embellishment.
Wallets/Handbags Other luxury wallets/handbags
Wallets and purses made of top quality material, easily recognizable as a symbol of status
‐Made from top quality leather ‐Aligns with latest industry styles ‐Storage for credit cards and cash (wallets)
‐Gucci ‐Channel ‐Calvin Klein ‐Dior ‐Coach ‐Dolce & Gabanna ‐Versace ‐Emporio Armani ‐Prada ‐Cole Haan ‐Kenneth Cole ‐Burberry
Gloves Other luxury gloves
Gloves made of top quality leather or cashmere,
‐Made from top quality, supple material
‐Calvin Klein ‐Dior ‐Prada ‐Kenneth Cole ‐Hugo Boss ‐Coach
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Although many luxury brands exist in the marketplace today, price is still a relatively big differentiator between them. When consumers begin their information search for luxury items, price and the level of prestige are the main drivers. Price includes all costs included in the buying process. The level of prestige includes the level of quality, the image associated with the brand, and the perceived scarcity of the product.
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Marketing Objectives Year of Plan Timeline: 12 month period from March 1, 2012 to February 28, 2013. In the first year of the launch of Tag Heuer’s Executive Line the core marketing objectives will be to convert one‐time users into repeat purchasers, current users of Tag watches will be motivated to purchase other prestigious items from the line. In addition we will work to encourage brand switching from competing luxury brands such as Rolex and Prada. Ultimately our goal will be an increase in sales, detailed below.
Year One Sales Forecast Product
Watches Sunglasses Neckties Wallets Handbags Gloves Total
1 1 1 1 1 1
1/yr. 2/yr. 4/yr. 1/yr. 4/yr. 1/yr.
Wholesale Forecasted Price Wholesale Sales $1,500 $200 $50 $125 $250 $100
$117,472,500 $31,326,000 $15,663,000 $9,789,375 $78,315,000 $7,831,500 $260,397,375
Forecasted Retail Sales
$3,000 $400 $100 $250 $500 $200
$234,945,000 $62,652,000 $31,326,000 $19,578,750 $156,630,000 $15,663,000 $520,794,750
Size of Target Market: 5,221,000 (Appendix 1) Percentage of target market that will purchase: 1.5% (Assumption 4) Number Who Will Purchase = Size of Target Market * Percentage of Target Market That Will Purchase = 5,221,000 * .015 = 78,315 •
Year One Forecasted Wholesale Sales = Number Who Will Purchase x Purchase Quantity x Purchase Frequency x Wholesale Price (repeat with all products) Year One Forecasted Retail Sales = Number Who Will Purchase x Purchase Quantity x Purchase Frequency x Retail Price (repeat will all products)
Wholesale and Retail Prices: (Assumption 6) Annual Category Retail Sales: $9,000,000,000 (Appendix 5) •
Year One Market Share = Year One Retail Sales / Annual Category Retail Sales = $520,794,750.00 / $9,000,000,000.00 = 0.06 or 6%. 12 | P a g e
Marketing Mix Product Strategy The Tag Heuer Executive Line is a fully integrated line of accessories for the business professional. The accessories will provide the primary benefit of serving as a symbol of status. Business professionals will know that they can choose any accessory from the Executive Line and be easily recognized by their peers as a person of status and style. The products will signal status through their premium quality materials and workmanship. The Tag Heuer logo will be easily recognizable on all products, but will only be displayed in black, grey or white so not to appear overly flashy. All products will be styled in dark, neutral colors and embellishment should be minimal in order to match the businessperson’s professional wardrobe. The line will include the following accessories: • • • • • •
Watches Sunglasses Neckties Wallets Handbags Gloves
Pricing Strategy All products will be priced using a premium pricing strategy in order to signal that they are of the upmost quality and designed for those with luxurious tastes. Please see table on previous page for breakdown of pricing by item.
Distribution Strategy We will launch this new product line in approximately 21 locations nationwide, within major airports and upper‐end department stores in the following cities: New York City, Los Angeles, San Francisco, Chicago, San Diego, Miami, and Washington D.C. (Appendix 3).
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Advertising Communication Objectives 1. Increase brand awareness to 80% (Assumption 5) within our target market in order to be in the same evoked and choice sets as competitors such as Rolex and Louis Vuitton, in the United States, beginning with New York City, Los Angeles, San Francisco, Chicago, San Diego, Miami and Washington D.C. (Appendix 3) 2. Influence consumer perception that Tag Heuer is the luxury brand of choice for business professionals. 3. Promote Tag Heuer Executive line using image ads in order to build association between the products and a remarkable professional presence.
Communication Effects Pyramid Target Market Size: 5,221,000 (Appendix 1) Our advertising will influence the awareness of our product line, as well as consumer knowledge about luxury accessories. Due to the fact that Tag Heuer is a luxury brand, we will have to be careful as to how much we advertise our new product line for business professionals, and utilize media that will effectively reach our target market without diminishing our brand image. • •
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There will be some discrepancy between liking and preference due to the sheer amount of competitors in the luxury brand market. Tag Heuer will be competing with more well‐known brands, such as Rolex, thereby making it a challenge to encourage consumers to have a preference for our luxury accessories versus merely liking them. • •
There is a very small difference between trial and use. Due to the fact that Tag Heuer is a luxury brand, it is difficult for consumers to purchase accessories for a limited amount of time. Trial is a higher percentage because we are acknowledging the possibility that some may return Tag Heuer products shortly after purchasing them. • •
88,757 78,315 (Assumption 5)
Promotion Budget Budget Method: We have used the objective and task budgeting method in order to avoid the shortcomings of the percentage of sales approach (i.e. advertising decreases as sales decrease). IMC Budget Ceiling: Maximum of 20% of first year wholesale sales will be allocated in order to achieve 80% brand awareness. Maximum Forecasted Advertising Budget: • •
Forecasted year one wholesale sales = $260,397,375 Forecasted year one advertising budget ceiling = 20% * $260,397,375 = $52,079,475
Industry Advertising to Sales Ratio: • • •
Watch Industry Advertising Dollars: $381,400,000 (Appendix 6) Watch Industry Revenue: $8,360,000,000 (Appendix 7) A/S Ratio: Watch Industry Advertising Dollars / Watch Industry Revenue $381,400,000/$8,360,000,000= .046 or 4.6%
Share of Voice: • • •
SOV Spending = Multiplier x Market Share x Category Ad $ $57,210,000 = 2.5 x 0.06 x $381,400,000 Share of Voice = SOV Spend / (SOV Spend + Category Ad $) = 0.130434783 or 13.04%
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Copy Platform Target Market Demographic Dimensions (Appendix 1) • Age: 25‐54 • Sex: Male or Female • Income: Greater than $75,000 • Occupation o Professional and technical o Management o Business and financial operations o Sales and administrative • Education: At least some college • Race: All inclusive • Dwelling: Own home, apartment or condominium Geographic Dimensions (Appendix 1 & 3) • Region: Northeastern and Western United States • Population: >1,000,000 • Density: Urban; Suburban • Target Cities: o San Francisco, CA o New York, NY o Los Angeles, CA o Miami, FL o Washington, DC o Chicago, IL Psychographic Dimensions (Appendix 2) • Personality o Gregarious o Extroverted o Ambitious o Goal‐driven o Adventurous • Lifestyle o Image‐conscious 16 | P a g e
Prefers designer brands Prefers to buy from specialty stores Strives to be the center of attention Interested in the arts Travels Active On‐the‐go Benefits Sought • High quality materials and workmanship • Status symbol • Aesthetically pleasing • Uniform product line o o o o o o o
Objective The goal is to improve brand awareness of Tag Heuer while simultaneously building a unique association between the luxury accessories and a high degree of professionalism. Additionally, we would like to increase consumer knowledge about the accessibility of a luxury accessory line and build a preference for the Tag Heuer brand. Tag Heuer products will be preferred over those of their competitors due to the high quality materials, moderate price range, convenience of choice, and the social status provided. Promote Brand Recall: The first message objective is to increase awareness of the Tag Heuer brand in the United States among business professionals, who are not currently offered a moderately priced and uniform luxury accessory line. Linking a Key Attribute or Benefit to the Brand Name: The second message objective is to link the Tag Heuer brand with a luxurious yet professional image to appeal to the target market, which is interested in having a convenient business accessory line that enhances their image.
Key Benefits The key benefits are that the Tag Heuer luxury accessory line enhances the social status of business professionals, while having a moderately priced and convenient selection of products that specifically caters to them.
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Key Product Attributes •
• • • •
High quality materials: o Premium metals o Precious gems o High quality fabric Status symbol Uniform product line; accessories will be similarly styled and easily coordinated Moderately priced (relative to competitors) Timeless design
Campaign Theme • •
• • •
“You’ve earned it.” Message conveys that this is a luxury product line that isn’t priced so high to where it is only attainable by celebrities; rather it is a reasonable purchase for business professionals. Speaks to those who have reached an honorable point in their career and want to be recognized for their achievements. Message conveys their social status and professional demeanor in order to be taken seriously by their peers. Evokes feeling of empowerment for the wearer of luxury accessories.
Analysis Target Audience The target customer for the Tag Heuer Executive Line is successful and career oriented. This group is currently underserved in the market for luxury accessories which are commonly targeted toward those who enjoy more leisurely lifestyles. The user of Tag’s Executive accessories has worked hard to get to where they are in life and desires recognition of this fact, they do not want to be associated with, let alone wear the same accessories as celebrities who are often perceived as reckless. Objective Because the Tag Heuer brand is not currently highly recognized in the United States, nor have their products previously been targeted toward business professionals, the first goal of our promotional campaign will be to promote brand recall among this segment. Because the core benefit sought by our target audience is recognition as a successful business professional the secondary goal of the promotional campaign will seek to link Tag Heuer’s Executive Line to a luxurious, professional image. 18 | P a g e
Benefits/Attributes The core benefit of the line is that it offers a status symbol by specifically catering to business professionals. By owning a Tag Heuer accessory the wearer is communicating their position as a successful individual within their industry; this is accomplished through the use of high quality materials and timeless design. Campaign Theme These goals will be achieved through a fully integrated campaign centering around the tagline “You’ve earned it” which will persuade customers that this isn’t a line for celebrities who were born into money but instead for those who have worked hard for what they have. Those celebrities may be able to pay over $20,000 for a watch but our advertisements will communicate that our products are attainable by sensible, white‐collar individuals.
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Message Strategy Our primary message objective is to promote brand recall because the Tag Heuer brand is not as familiar in the United States as in Europe. This will be achieved through the repetition of coherent image advertisements, so that our target audience will immediately recognize the prestigious appeal of Tag Heuer. From these image advertisements, business professionals will aspire to own one of the various Tag Heuer luxury accessories available to them, in order to further convey their achieved status to their peers and that “they’ve earned it.” Integration – To ensure the effectiveness of the campaign, we will integrate the logo, tagline, color schemes, URL and other forms of brand identification into every print, internet, and television advertisement as well as in other promotional tools, such as event sponsorships. •
Logo – the logo will be in grayscale with “Executive Line” in caps underneath in Copperplate Gothic Light font. In addition, the logo will be located in the bottom, right‐ hand corner of all print advertisements, centered for all television advertisements with a black background, and to the far right of all internet advertisements (banner ads). Font – the fonts chosen across all forms of advertising will be Copperplate Gothic Light for “Executive Line” in the logo and for the URL, and Vani font will be used for the tagline. The size of the font will vary from Tagline to URL, the former being larger to improve the chances of Tag Heuer being recalled by our target audience. Tagline – the tagline “You’ve earned it” will be in Vani font centered at the bottom of all print and television advertisements in a bigger font size than the URL. For internet advertisements, specifically banner ads, the tagline will be located in Vani font to the left of the Tag Heuer logo. URL – the URL will be in Copperplate Gothic Light font and located at the bottom, left‐ hand corner of all print advertisements and will be centered at the very bottom of all television advertisements. The URL will be in a smaller font size than the tagline so that it will not reduce the ability of our target audience to recall brand Tag Heuer. The URL will be excluded from internet advertisements (banner ads) because users can be connected directly to the Tag Heuer website by clicking on the banner ad. Color Schemes – the colors that will be utilized throughout all forms of advertising are white, gray, and black in order to reflect the professional and luxurious appeal of the Tag Heuer accessory line. Image Types – the types of images that will be used in all Tag Heuer advertisements will be those associated with a luxurious lifestyle.
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Theme – the theme of all of the print, internet, and television advertisements will be the improved social status of owning and wearing a Tag Heuer accessory, which will be communicated through the association with a luxurious lifestyle. This will be accomplished by focusing the lighting on the accessory alone and casting shadows across other elements within the advertisement. The television advertisements will have no dialogue, but will instead play music pertaining to the upper class, such as the use of string instruments or a piano.
Print Ad Layout (Appendix 8) TV Ad Storyboard (Appendix 9) Radio Advertising: Tag Heuer will not engage in radio advertising primarily because it wants a “scarce” appeal to maintain its luxurious brand image, and therefore wants to limit its use of mass media. As far as the use of television spots, Tag Heuer limits its advertising to special events which the target audience will likely be exposed to. Branded Entertainment: YouTube episodes linked to Tag Heuer website
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Media Plan Timeline: The media plan covers a twelve month period from March 1, 2012 to February 28, 2013.
Media Objectives 1. Increase brand awareness and preference for Tag Heuer to men and women between the ages of 25 and 54 with an annual income greater than $75,000 who are in need of revamping their professional appearance and overall demeanor. 2. Geographic scope of the media plan is national, but predominately focused on the following urban areas: New York City, Los Angeles, San Francisco, Chicago, San Diego, Miami, and Washington D.C. (Appendix 3) 3. During the 12 month period spanned by this marketing plan the gross impressions across TV, print and internet will be 17,956,820. (Appendix 23)
Media Strategies •
Reach/Frequency o Reach is 90% of the target market, 4 times over an average 4 week period o This high reach will aid in achieving the objective of raising brand awareness to 80% Scheduling Method: Pulsing o A pulsing scheduling method is going to be utilized with a combination of continuous scheduling for print and internet advertising as well as a flighting scheduling method for advertising on cable TV. The print advertisements will be continuously placed on a monthly basis in selected magazines that belong to our target audience’s media habits. When it comes to internet advertising, a Tag Heuer webpage will be created that will have the new luxury accessory line available for sale. In addition, there will be advertisements on wsj.com, nbc.com and abc.com since they belong to our target audience’s media habits. Heavy advertising will be used on cable television during the introductory period of three months in order to educate target audience of new luxury accessories. No advertising will be conducted after this initial season, but will continue with heavy advertisements for special events such as golf and tennis tournaments. o Justification: A pulsing scheduling method would be most appropriate for our marketing campaign because it takes advantage of the benefits of both the flighting and continuous scheduling methods. By having a continuous scheduling method for 22 | P a g e
print and internet advertising, we will be more effective in increasing awareness of the Tag Heuer brand. In addition, by having heavy advertising on cable television during our event sponsorships, we will be able to reach prospective buyers of Tag Heuer products due to the fact that these golf and tennis tournaments belong to a business professional’s media habits. o Please see Media Schedule (Appendix 11) Length and size of advertisements: o 30 sec TV spots o Full color magazine advertisements (full page) o Full color online banner ads
Media Mix Variables • •
Target Market Size = 5,221,000 (Appendix 1) Coefficient for Media Calculations = 0.4932 (Assumption 9, Appendix 1)
Cable TV • •
Commercials will be run on cable television in order to gain national reach without the high costs associated with network television. Television commercials support the communication objective of linking Tag Heuer’s Executive Line products with a luxurious and professional image by allowing for high production quality and the use of a creative storyline. Our target market of business professionals are likely to be concerned with financial and other news so are likely to regularly watch CNN and CNBC. (Appendix 17)
CNN • Reach = Number exposed in target market / Target market size o Number exposed in target market = 0.4932 * # exposed who bought dress watches in past 12 months (Assumption 9, Appendix 1) Number exposed who bought dress watches = 4,217,000 (Appendix 17) o Target market size = 5,221,000 (Appendix 1) o Reach = (4,217,000 * 0.4932) / 5,221,000 = 39.83% o Target market exposed = 39.83% * 5,221,000 = 2,079,825
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Frequency: o Daytime Twice weekly during the following shows throughout 3 month launch period (shows selected based on Assumption 7) • The Situation Room with Wolf Blitzer M‐F 5:00‐7:00 PM • John King, USA M‐F 7:00‐8:00 PM 2 times weekly * 4 weeks per month * 3 months per year = 24 o Primetime Twice weekly during the following shows throughout 3 month launch period (shows selected based on Assumption 7) • In the Arena M‐F 8:00‐9:00 PM • Piers Morgan M‐F 9:00 ‐10:00 PM • Anderson Cooper 360 M‐F 10:00 PM‐11:00 PM 2 times weekly * 4 weeks per month * 3 months per year = 24 o Total of 48 commercials Cost per commercial o Daytime Prior to 8:00 PM $6,500 (Appendix 10) o Primetime 8:00 – 11:00 PM $30,000 (Appendix 10) CPM‐TM = (Ad cost / Targeted audience) * 1,000 o Daytime Ad cost = $6,500 (Appendix 10) Targeted audience = 0.4932 * # exposed who bought dress watches in past 12 months (Assumption 9, Appendix 1) • Number exposed who bought dress watches = 4,217,000 (Appendix 17) CPM‐TM = [$6,500 / (0.4932 * 4,217,000)] * 1,000 = $3.13 o Primetime Ad cost = $30,000 (Appendix 10) Targeted audience = 0.4932 * # exposed who bought dress watches in past 12 months (Assumption 9, Appendix 1) • Number exposed who bought dress watches = 4,217,000 (Appendix 17) CPM‐TM = [$30,000 / (0.4932 * 4,217,000)] * 1,000 = $14.24 24 | P a g e
• • •
Total Cost = (Daytime frequency * Daytime cost) + (Primetime frequency * Primetime cost) o (24 * $6,500) + (24 * $30,000) = $876,000 Index = 117 (Appendix 17) Justification o According to MediaMark (Appendix 17), adults who have purchased a dress watch in the past 12 months are 17% more likely to watch CNN than average. This data was cross‐referenced with MediaMark Media reports (Appendix 18) and it was found that CNN also has a high index for all income segments greater than or equal to $75,000. Indexes range from 122 to 158, indicating that adults with an annual income of $75,000+ are 22% to 58% more likely to watch CNN than average.CNN was primarily chosen for its high reach, we will be able to reach a large portion of our target market for a relatively low CPM
CNBC • Frequency: o Twice weekly during three month launch period Monday through Friday between 5:00 and 8:00 PM (Assumption 7) • Fast Money 5:00 PM • Mad Money 6:00 PM • The Kudlow Report 7:00 PM • Varying featured programming 8:00 PM o 2 times weekly * 4 weeks per month * 3 months per year = 24 • Reach = Number exposed in target market / Target market size o Number exposed in target market = 0.4932 * # exposed who bought dress watches in past 12 months (Assumption 9, Appendix 1) Number exposed who bought dress watches = 2,517,000 (appendix 18) o Target market size = 5,221,000 (Appendix 1) o Reach = (2,517,000 * 0.4932) / 5,221,000 = 23.78% o Target market exposed = 23.78% * 5,221,000 = 1,241,384 • CPM o $7.00 (Appendix 12) • Total Cost = Cost to run each commercial * Frequency o Cost to run each commercial = (CPM * Average viewership) / 1,000 Average viewership = 215,000 (Appendix 13) o [($7.00 * 215,000)/1,000] * 24 = $36,120 • Index = 125 (Appendix 17) • Justification o According to MediaMark (Appendix 17), adults who have purchased a dress watch in the past 12 months are 25% more likely to watch CNBC than average. This data was 25 | P a g e
cross‐referenced with MediaMark Media reports (Appendix 18) and it was found that CNBC has a high index for all income segments greater or equal to $75,000. Indexes range from 123 to 210, illustrating that adults with an annual income of $75,000+ are 23% to 110% more likely than average to watch CNBC. Integration Assessment: We will integrate cable television advertisements by utilizing the consistent theme of an improved social status of the individual who wears a Tag Heuer accessory. By focusing the lighting on the Tag Heuer accessory and casting shadows across other elements within the advertisement, the theme will be emphasized by associating the individual with a luxurious lifestyle. The television advertisements will have no dialogue, but will instead play music pertaining to the upper class, such as the use of string instruments or a piano. At the end of these television advertisements, the logo will be prominently displayed in the center with a black background, the tagline “You’ve earned it” in a gray Vani font located below the logo, and a smaller gray URL in Copperplate Gothic Light font located at the very bottom. All elements in the last frame will be centered, thereby immediately drawing the attention of our target audience and enhancing brand recall.
Print • • • • • •
Print advertisements will be used to gain high frequency and accomplish national reach. Supports creative strategy of defining the brand image by utilizing image advertisements with a high production value. Print media caters to specific lifestyles and advertisements can reach business professionals effectively. Target market’s media habits include magazines such as Forbes, Golf Magazine, GQ, Newsweek, Travel + Leisure, and Wall Street Journal. Target market size = 5,221,000 (Appendix 1) Due to Assumption 9, 49.32% will also be applied to the projected number (number exposed in TM) in Appendix 18 to calculate reach, instead of the percent down column. Percent down takes into consideration all adults who have purchased a dress watch in the last 12 months, not those with an annual income of $75,000+.
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Forbes (monthly) • Reach = Number exposed in target market / Target market size o Number exposed in target market = 0.4932* # exposed who bought dress watches in the last 12 months (Assumption 9) Number exposed who bought dress watches = 286,000 (Appendix 17) o Target Market Size = 5,221,000 (Appendix 1) o Reach = (286,000*.4932) /5,221,000 = 2.7% o Target Market Reached = 2.7%* 5,221,000 = 141,056 • Frequency =1 per month (full page/full color) = 12/year • CPM‐TM = (Ad Cost/targeted audience)*1,000 o Ad Cost = $100,960 (Appendix 16, page 157) o Number exposed in target market = 286,000 (Appendix 17) o Targeted audience = Number exposed in target market*0.4932 = 141,056 o CPM‐TM = (100,960 / 141,056)*1,000 = $715.75 • Total Cost = Ad Cost*Frequency o Ad Cost = $100,960 (Appendix 15, page 157) o Frequency = 12/year o Total Cost = $100,960*12 = $1,211,520 • Index =101 (Appendix 17) • Justification o According to MediaMark (Appendix 17), adults who have purchased a dress watch in the past 12 months are 1% more likely to read Forbes Magazine than average. Although this is a small percentage, we cross‐referenced this data with MediaMark Media (Appendix 18) and discovered that Forbes Magazine has a high index for all income segments greater or equal to $75,000. Indexes range from 170 to 626, which signifies that adults with an annual income of $75,000+ are 70% to 526% more likely to read Forbes Magazine than average. Golf Magazine (monthly): • Reach = (Number exposed in target market / Target market size o Number exposed in target market = 0.4932 * # exposed who bought dress watches in the past 12 months (Assumption 9) Number exposed who bought dress watches = 315,000 (Appendix 17) o Target Market Size = 5,221,000 (Appendix 1) o Reach = (315,000*0.4932) / 5,221,000 = 2.98% o Target Market Reached = 2.98% * 5,221,000 = 155,358 • Frequency =1 per month (full page/full color)= 12/year • CPM‐TM = (Ad Cost/targeted audience)*1,000 o Ad Cost = $159,000 (Appendix 15, page 157) 27 | P a g e
o Number exposed in target market = 315,000 (Appendix 17) o Targeted audience = Number exposed in target market*0.4932 = 155,358 o CPM‐TM = (159,000 / 155,358)*1,000 =$1,023.44 Total Cost = Ad Cost*Frequency o Ad Cost = $159,000 (Appendix 15, page 157) o Frequency = 12/year o Total Cost = $159,000*12 = $1,908,000 Index = 120 (Appendix 17) Justification o According to Mediamark (Appendix 17), adults who have purchased a dress watch in the past 12 months are 20% more likely to read Golf Magazine than average. We cross‐referenced this data with MediaMark Media (Appendix 18) and discovered that Golf Magazine has a high index for all income segments greater or equal to $75,000. Indexes range from 158 to 514, which signifies that adults with an annual income of $75,000+ are 58% to 414% more likely to read Golf Magazine than average.
GQ (monthly) • Reach = (Number exposed in target market / Target market size o Number exposed in target market = 0.4932 * # exposed who bought dress watches in the past 12 months (Assumption 9) Number exposed who bought dress watches = 458,000 (Appendix 17) o Target Market Size = 5,221,000 (Appendix 1) o Reach = (458,000*.4932) / 5,221,000 = 4.3% o Target Market Reached = 4.3% * 5,221,000 = 225,885 • Frequency =1 per month (full page/full color)= 12/year • CPM‐TM = (Ad Cost/targeted audience)*1,000 o Ad Cost = $103,425 (Appendix 15, page 157) o Number exposed in target market = 458,000 (Appendix 17) o Targeted audience = Number exposed in target market*0.4932 = 225,885 o CPM‐TM = ($103,425 / 225,885)*1,000 =$457.87 • Total Cost = Ad Cost*Frequency o Ad Cost = $103,425 (Appendix 15, page 157) o Frequency = 12/year o Total Cost = $103,425*12 = $1,241,100 • Index = 144 (Appendix 17) • Justification o According to Mediamark (Appendix 17), adults who have purchased a dress watch in the past 12 months are 44% more likely to read GQ than average. We cross‐ 28 | P a g e
referenced this data with MediaMark Media (Appendix 18) and discovered that GQ has a high index for all income segments greater or equal to $75,000. Indexes range from 138 to 184, which signifies that adults with an annual income of $75,000+ are 38% to 84% more likely to read GQ than average. Newsweek (monthly) • Reach = Number exposed in target market / Target market size o Number exposed in target market = 0.4932 * #exposed who bought dress watches in the past 12 months (Assumption 9) Number exposed who bought dress watches = 881,000 (Appendix 17) o Target market size = 5,221,000 (Appendix 1) o Reach = (881,000*.4932) / 5,221,000 = 8.32% o Target Market Reached = 8.32% *5,221,000 =434,509 • Frequency =1 per month (full page/full color) = 12/year • CPM‐TM = (Ad Cost/targeted audience)*1,000 o Ad Cost = $231,525 (Appendix 15, page 158) o Number exposed in target market = 881,000 (Appendix 17) o Targeted audience = Number exposed in target market*0.4932 = 434,509 o CMP‐TM=($231,525 / 434,509)*1,000 =$532.84 • Total cost = Ad Cost*Frequency o Ad Cost = $231,525 (Appendix 15, page 158) o Frequency = 12/year o Total Cost = $231,525*12 = $2,778,300 • Index = 113 (Appendix 17) • Justification o According to Mediamark (Appendix 17), adults who have purchased a dress watch in the past 12 months are 13% more likely to read Newsweek than average. We cross‐ referenced this data with MediaMark Media (Appendix 18) and discovered that Newsweek has a high index for all income segments greater or equal to $75,000. Indexes range from 137 to 197, which signifies that adults with an annual income of $75,000+ are 37% to 97% more likely to read Newsweek than average.
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Travel + Leisure (monthly) • Reach = Number exposed in target market / Target market size o Number exposed in target market = 0.4932 *# exposed who bought dress watches in the past 12 months (Assumption 9) Number exposed who bought dress watches = 368,000 (Appendix 17) o Target market size = 5,221,000 (Appendix 1) o Reach = (368,000*0.4932) / 5,221,000 = 3.48% o Target market reached = 3.48% * 5,221,000 = 181,497 • Frequency =1 per month (full page/full color)= 12/year • CPM‐TM = (Ad Cost/targeted audience)*1,000 o Ad Cost = $101,325 (Appendix 15, page 159) o Number exposed in target market = 368,000 (Appendix 17) o Targeted audience = Number exposed in target market*0.4932 = 181,497 o CPM‐TM = ($101,325/181,497)*1,000 =$558.27 • Total cost = Ad Cost*Frequency o Ad Cost = $101,325 (Appendix 15, page 159) o Frequency = 12/year o Total cost = $101,325*12 = $1,215,900 • Index = 163 (Appendix 17) • Justification o According to Mediamark (Appendix 17), adults who have purchased a dress watch in the past 12 months are 63% more likely than average to read Travel + Leisure. We cross‐referenced this data with MediaMark Media (Appendix 18) and discovered that Travel + Leisure has a high index for all income segments greater or equal to $75,000. Indexes range from 145 to 378, which signifies that adults with an annual income of $75,000+ are 45% to 278% more likely to read Travel + Leisure than average. Integration Assessment: We will integrate print advertisements by utilizing the consistent theme of an improved social status of the individual who wears a Tag Heuer accessory. By focusing the lighting on the Tag Heuer accessory and casting shadows across other elements within the advertisement, the theme of a luxurious lifestyle will be emphasized. Print advertisements will have the Tag Heuer logo located at the bottom, right‐hand corner of the page with the tagline “You’ve earned it” centered at the bottom. In addition, the URL will be in the bottom, left‐hand corner in Copperplate Gothic Light in a smaller font size than the tagline (in Vani font), thus allowing the tagline to be remembered by those who are exposed to the print advertisement. There will be coherent color schemes as the other forms of advertising and include white, gray and black shades.
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Internet • • •
Internet advertisements will be used to gain a broad national reach and accomplish the communication objective of building brand awareness. Internet advertising will consist of banner ads which will be used to gain high frequency with member of our target audience because of their media habits. (Appendix 17) Index = 126 (Appendix 19) o Internet advertising is used because those in our target market are heavy internet users – they are 26% more likely than the average adult to use the internet heavily. (Appendix 19) Our target market is likely to use WSJ.com and nytimes.com because business professionals commonly follow stock data and other market information. In addition, they also travel frequently for business and leisure so they are likely to use Expedia.com Average CPM for business banner ads = $5.98 (Appendix 16) Percent down column not used in calculating reach, rather the projected number column (Assumption 9)
WSJ.com • Reach = Number exposed in target market / Target market size o Number exposed in target market = 0.4932 * # exposed who bought dress watches in past 12 months (Assumption 9) Number exposed who bought dress watches = 307,000 (Appendix 17) o Target Market Size = 5,221,000 (Appendix 1) o Reach = ( 307,000*0.4932) / 5,221,000 = 2.9% o Target Market Reached = 2.9% * 5,221,000 = 151,409 • Frequency o 2 times/day = 365 days/year = 730 times per year (2*365) o This high frequency is used because it is anticipated that the average viewer spends a brief amount of time on the website daily and will only be exposed to the ads on some days • CPM o $5.98 (Appendix 16) • Cost o Ad Cost = (CPM * Target Market Reached) / 1,000 o Ad Cost = ($5.98 * 151,409) / 1,000 = $905 o Total Cost = ad cost * annual frequency o Total Cost = $905 * 730 = $660,500 • Index = 150 (Appendix 17) • Justification 31 | P a g e
o According to MediaMark (Appendix 17), adults who have purchased a dress watch in the past 12 months are 50% more likely to visit WSJ.com than average. This data was cross‐referenced with MediaMark Media (Appendix 18) and it was found that WSJ.com has an extremely high index for all income segments greater or equal to $75,000. Indexes range from 278 to 654, illustrating that adults with an annual income of $75,000+ are 178% to 554% more likely to visit WSJ.com than average. Expedia.com • Reach = Number exposed in target market / Target market size o Number exposed in target market = 0.4932 * # exposed who bought dress watches in past 12 months (Assumption 9) Number exposed who bought dress watches = 1,382,000 (Appendix 17) o Target market size = 5,221,000 (Appendix 1) o Reach = (1,382,000*0.4932) / 5,221,000 = 13.05% o Target market reached = 13.05% * 5,221,000 = 681,341 • Frequency o 2 times/day = 365 days/year = 730 times/year o This high frequency is used because it is anticipated that the average consumer only uses the website on periodic occasions (when they are planning travel), on the occasion that a member of our target market does go to Expedia.com there should be a good chance that they will see a Tag Heuer advertisement. • CPM o $5.98 (Appendix 16) • Cost o Ad Cost = (CPM * Target Market Reached) / 1,000 o Ad Cost = ($5.98 * 681,341) / 1,000 = $4,074.42 o Total Cost = ad cost * annual frequency o Total Cost = $4,074.42 * 730 = $2,974,326.60 • Index = 140 (Appendix 17) • Justification: According to MediaMark (Appendix 17), adults who have purchased a dress watch in the past 12 months are 40% more likely to visit Expedia.com than average. This data was cross‐referenced with MediaMark Media (Appendix 18) and it was found that Expedia.com has a high index for all income segments greater or equal to $75,000. Indexes range from 179 to 230, illustrating that adults with an annual income of $75,000+ are 79% to 230% more likely to visit Expedia.com than average.
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NYtimes.com • Reach = Number exposed in target market / Target market size o Number exposed in target market = 0.4932 * # exposed who bought dress watches in past 12 months (Assumption 9) Number exposed who bought dress watches = 500,000 (Appendix 17) o Target market size = 5,221,000 (Appendix 1) o Reach = (500,000*0.4932) / 5,221,000 = 4.72% o Target market reached = 4.72% * 5,221,000 = 246,600 • Frequency o 2 times/day = 365 days/year = 730 times/year o This high frequency is used because it is anticipated that the average viewer spends a brief amount of time on the website daily and will only be exposed to the ads on some days • CPM o $5.98 (Appendix 16) • Cost o Ad Cost = (CPM * Target Market Reached) / 1,000 o Ad Cost = ($5.98 * 246,600) / 1,000 = $1,471.08 o Total Cost = Ad Cost * Annual Frequency o Total Cost = $1,471.08 * 730 = $1,073,888.40 • Index = 112 (Appendix 17) • Justification: According to MediaMark (Appendix 17), adults who have purchased a dress watch in the past 12 months are 12% more likely to visit nytimes.com than average. This data was cross‐referenced with MediaMark Media (Appendix 18) and it was found that nytimes.com has a high index for all income segments greater or equal to $75,000. Indexes range from 201 to 372, illustrating that adults with an annual income of $75,000+ are 101% to 272% more likely to visit nytimes.com than average. Integration Assessment: We will integrate internet advertisements by utilizing the consistent theme of an improved social status of the individual who wears a Tag Heuer accessory. By focusing the lighting on the Tag Heuer accessory and casting shadows across other elements within the advertisement, the theme of a luxurious lifestyle will be emphasized. Display advertisements on selected websites will have the Tag Heuer logo (with “Executive Line” in Copperplate Light Gothic font directly below ) located at the very right‐hand corner of the display advertisement with the tagline “You’ve earned it” directly to its left in Vani font. Because those who click on the display advertisement will be directly connected to the Tag Heuer website, the URL will be excluded from this advertisement. There will be coherent color schemes as the other forms of advertising and include white, gray and black shades to allude to a luxurious lifestyle. 33 | P a g e
Media Budget (Appendix 24) • • • • • • •
Total TV Advertising Cost o $912,120.00 Total Print Advertising Cost o $8,354,820.00 Total Internet Advertising Cost o $4,708,714.60 Total Advertising Cost o $13,976,654.60 Production Cost o $1,397,565.46 Total Cost of Advertising o $15,373,220.06 Advertising to Sales Ratio o Year One Cost of Advertising: $15,373,220.06 o Year One Forecasted Wholesale Sales: $173,593,812.15 o Advertising to Sales Ratio = Year One Cost of Advertising / Year One Forecasted Wholesale Sales = $15,373,220.06 / $173,593,812.15 = 8.86%
Competitive Media Assessment •
LVMH (Assumption 16) o Ad Spending (1997) = $28 million (Appendix 14) Since this source has outdated information (from 1997), we utilized an inflation calculator on the internet to find out how much $28 million is worth today, which provided us with the figure of $38,040,922.08. o Revenue (€) (2010) = €20.3 billion (Appendix 20) Due to the fact that our source provided LVMH’s revenue in euros, we used a currency converter to figure out the dollar amount. This provided us with the figure of $29,680,911,053.68. Rolex o Ad Spending (2001) = $13.33 million (Appendix 21) Because ad spending in 2001 is outdated, we used an inflation calculator on the internet to find out how much $13.33 million dollars was worth today, which provided us with the figure of $16,443,434.41. o Revenue ($) (2001) = $25.84 billion (Appendix 22) Due to the fact that revenue from 2001 is outdated information, we used an inflation calculator which provided us with the figure of $31,875,344,718.62.
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Advertising‐to‐Sales Ratios Ad Spending 1997
Ad Spending Inflation (2010)
Revenue (€) (2010)
Revenue ($) (2010)
LVMH $28,000,000 $38,040,922.08 €20,300,000,000.00 $29,680,911,053.68 Ad Ad Spending Revenue ($) (2010) Spending Inflation Revenue ($) (2001) w/ Inflation (2001) (2010) Rolex
A/S Ratio 0.1282% A/S Ratio
A/S Ratio = Ad Spending (2010) / Revenue (2010) o LVMH = Ad Spending Inflation (2010) / Revenue (2010) $38,040,922.08 / $29,680,911,053.68 = 0.1282% (Assumption 16) o Rolex = Ad Spending (Inflation 2010) / Revenue (Inflation 2010) $16,443,434.41 / $31,875,344,718.62 = 0.0516% Tag Heuer o Total Cost of Advertising $15,373,220.06 o Tag Heuer Executive Line Advertising to Sales Ratio Year One Cost of Advertising: $15,373,220.06 Year One Forecasted Wholesale Sales: $173,593,812.15 Advertising to Sales Ratio = Year One Cost of Advertising / Year One Forecasted Wholesale Sales = $15,373,220.06 / $173,593,812.15 = 8.86% o The observed advertising‐to‐sales ratios of LVMH (Tag Heuer’s parent company) and Rolex are so low because luxury brands have such a strong existing brand value that they do not rely on as much advertising. Tag Heuer’s ratio is so much higher because a greater effort has to be made to build brand value to the level of LVMH and Rolex. Share of Voice: o SOV Spending = Multiplier x Market Share x Category Ad $ o Multiplier = 2.5 o Market Share = Year One Retail Sales / Annual Category Retail Sales Year One Retail Sales = $520,794,750 (Marketing Objectives Section of Report) Annual Category Retail Sales = $9 billion (Appendix 5) Market Share = = $520,794,750/$9billion=0.06 or 6% o Category Ad $ = $381,400,000 (Appendix 6) o SOV Spending = (2.5*0.06*$381,400,000)=$57,210,000 35 | P a g e
o Share of Voice = SOV Spending / (SOV Spending + Category Ad $) = $57,210,000/($57,210,000+$381,400,000) = 13.04% o By having an A/S Ratio of 8.86% and a share of voice of 13.04%, Tag Heuer is able to improve its overall brand awareness, thereby improving its ability to persuade its target audience to move up the communication pyramid and eventually arrive at product use.
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Direct Marketing Direct Marketing to Consumer Direct to consumer strategy will not be used as it conflicts with the brand’s image and would elicit the wrong message in terms of scarcity and quality. Objective Encourage personalized purchases through offering order catalogues on site at retail locations for consumers to browse and order through – we hope to stimulate trial of 1.7%. This figure is low due to the fact that Tag Heuer sells luxury goods and are priced as such and the poor state of the economy would influence the number who actually arrive at this stage in the communication effects hierarchy. Description Due to the fact that Tag Heuer already has an existing catalogue, pages containing information on the Tag Heuer Executive Line will simply be inserted. Provide sufficient stock of ready‐to‐ purchase items for customers to not only buy on‐site or by way of impulse, but also to serve as a tangible visual aid for consumers who browse through the catalogue that is offered at a particular retail location. To encourage the additional purchase of congruent Tag Heuer Executive Line products, package recommendations will be shown in the same section, helping consumers to match similar Executive Line products together.
Cost Since implementing the Executive Line is a brand extension to Tag Heuer’s current offering, the existing distribution channels the company has will be used to add the new product line into the lineup. Sections for the Executive Line will be added into the catalogue’s current format and will be little to no extra cost to the company (Assumption 10). In addition, it is unfeasible to expect to create a large enough install base within the first year for any sort of pull strategy to be implemented among potential business partners. Therefore, using existing avenues in the introduction phase is the only pertinent move to make.
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Integration A consistent theme of an improved social status will be utilized in our direct marketing efforts and will be accomplished through the allure and scarcity of the Tag Heuer brand image. As in other elements in the IMC plan, there will be coherent color schemes of white, gray and black to allude to a luxurious lifestyle associated with owning and wearing an accessory from the Executive Line. The catalogue will have the Tag Heuer logo located at the bottom, right‐hand corner of the page with the tagline “You’ve earned it” centered at the bottom in Vani font. By placing these items at the bottom, the catalogue will have a focused attention on the accessories themselves. The URL will not be included for this direct marketing tactic because it might encourage those who view the catalogue to refer to the website instead, thereby avoiding the decision to purchase in‐store. Through the use of personalizing an order to ones’ own liking, the customer will be assured that they are getting something truly unique and status worthy.
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Website Please see Appendix 32 to view website
Objective To increase our target audience’s knowledge to 50% by having a hub for all necessary information: product specifications, news, and branded entertainment (YouTube).
Description Through the website, we are able to tie together all other functions of advertising and media into a centralized nexus for information and promotional elements to be easily found in an aggregated form. The new iteration of the Tag Heuer website, which will introduce the Executive Line of products, will launch alongside the start of the advertising and promotional campaigns the first weekend of March 2012 in accordance with the PGA Tour event sponsorship and BaselWorld Trade Show. The main body of the site will consist of very large and prominent images of the luxury accessories in the Executive Line, and will be a flash‐enabled, interactive scroll where the user may shift back and forth between images. These can be clicked on in order to immediately link the visitor to the appropriate page where the product they chose is located. Along the left side will be a dropdown style menu which will be able to collapse and expand each selection to unveil the subcategory of the option selected. Separate sections for men and women will be included, detailing the full line of products available to them – most notably with the addition of “Executive” sections in each. Information about the brand will be available as well as a store locator list of where to buy said products and a news section which will include all press releases and other articles. Along the bottom will be the YouTube plug‐in enabled scroll‐ through‐bar, linking the branded entertainment campaign directly to the website. In addition, it will be updated as new content is released. To help visitors find elements with a larger degree of specificity, a search function will also be imbedded along the top right of the webpage.
Cost Due to the fact that Tag Heuer already has a website and maintains it, there will be no additional costs associated with including Tag Heuer’s new Executive Line. (Assumption 18)
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Integration This is where all the support and promotional pieces of the campaign will come together. We will integrate the website with other elements in the IMC plan by utilizing the consistent theme of an improved social status by owning and wearing a Tag Heuer accessory from the Executive Line. The theme of a luxurious lifestyle will be emphasized by focusing the lighting on the Tag Heuer accessory and casting shadows across other elements within the advertisement. There will be coherent color schemes as the other forms of advertising and include white, gray and black shades to allude to a luxurious lifestyle. The website URL is referenced in print and television advertisements, on‐site at PGA Tour sponsorship event and also ties directly into the BaselWorld trade show, which will be the unveiling vehicle for the product. Therefore, by consistently using the URL throughout multiple advertising and promotional elements, we will greatly increase traffic to the Tag Heuer website.
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Sales Promotion Consumer Providing discounts or “freebies” has the potential to erode the perceived value of luxury products. Therefore, Tag Heuer will not participate in any consumer sales promotion for the Executive Line in order to accomplish the objective of promoting the product as a luxury good.
Trade – BaselWorld Trade Show Objective To increase the knowledge of the Tag Heuer brand to 50% by having a presence at the BaselWorld Trade Show. Having introduced the Executive Line the previous weekend, this event will be used as an opportune platform for educating consumers and the media about the product.
Description Direct‐to‐retail channels are already established and sought‐after strong impressions will create a sense of optimism for the brand’s product line in order to translate into more support for placement in the marketplace. This will be the first instance of a widespread tangible impression after its previous week's hype build and the product line will launch in stores the week following BaselWorld.
Cost Trade show costs are something which Tag Heuer already incurs as part of its business model and are already forecasted into their yearly operating budgets. Tag Heuer already participates in this trade show and therefore would not incur any additional costs (Assumption 11).
Integration Continuity wise, this event transitions perfectly from initial awareness of our product into a direct knowledge base and further promotion to lead consumers immediately through the early stages of the communication hierarchy. Tag Heuer, being already one of the most prestigious brands at BaselWorld, and thus, creating the desired prestige and image for the new product line will be an almost natural occurrence. To instigate a lasting luxury in line with other elements of the campaign, the 25x25 ft booth at the tradeshow will incorporate same color scheme, logo and theme as other mediums used. Public relations will be of utmost consideration throughout the course of the tradeshow running March 8 to 15, 2012. Specific focus of the event this year will be around Executive Line. By continuing to focus on key influencers, media correspondents will be sought after to give impressions of new product. 41 | P a g e
Public Relations See Appendix 33 for sample press release
Consumer Strategies Objective To achieve an overall brand awareness of 80% by collecting information about Tag Heuer’s presence at the BaselWorld trade show and providing a compelling press release that will successfully capture the media’s attention. By using a press release, we hope to achieve an early adoption of the initial promotional mentions.
Description Through the use of a press release, we will be able to take early exposure of Tag Heuer’s new Executive Line for business professionals, which is only available to insiders of the industry and members of the media, and communicate the benefits to our consumer base in a way they can easily understand. We will utilize PR Newswire’s affiliate press‐release‐writing.com to issue a press release chronicling positive impressions of the product line to our target audience (Appendix 3).
Timing The press release will be published to concur with the end of the BaselWorld trade show on March 15, 2012 after influential members of the industry gain accurate, first‐hand knowledge with the luxury accessories offered in the Tag Heuer Executive Line.
Cost 400 word press release distributed via press‐release‐writing.com = $449 (Appendix 4).
Integration The press release will tie into the industry trade show BaselWorld and will give a meaningful and worthwhile account of the quality and status the Executive Line accessories can provide to our targeted consumers. Coinciding with both the timing of the tradeshow and launch of the brand extension, this will allow for a faster rate of exposure, a faster rate of awareness and help to educate our consumers about the benefits that they can expect from the image associated with owning Tag Heuer products. These releases will be available to consumers visiting the Tag Heuer website under the "News" section of the navigation menu.
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Viral Strategies Objective Increase overall awareness to 80% by offering a larger knowledge base of technicalities and features to consumers through use of industry expert reviews.
Description Provide a sampling kit of an entire suite of Tag Heuer Executive Line products to three of the top watch review blog sites on the web (Assumption 19). These kits will include one of each of our Executive Line products (a watch, pair of sunglasses, tie, wallet, pair of gloves, and handbag) in addition to a pair of cufflinks which are being given as part of the POP promotion and a technical specs brochure of the products. By providing a sampling kit in addition to cufflinks and brochure, we will be to generate further buzz across the web about the new line.
Timing These kits will be sent to the blog sites in association with the beginning of the BaselWorld trade event and beginning of our product launch on March 8, 2012.
Cost The wholesale cost of sending out a kit ($1,500‐watch + $200‐sunglasses + $50‐tie + $125‐ wallet + $100‐gloves + $250‐handbag) = $2,225 (x 3 blog sites) = $6,675
Justification Due to the extremely high quality and legacy associated to the Tag Heuer brand and its merchandise, sending out kits to industry influencers will communicate our image in a trustworthy fashion to consumers who could potentially purchase the Executive Line accessories. In filling a gap in the industry, the message to be portrayed would be one of superiority with easily accessible options for the business professional to purchase with little effort, while knowing that what they are purchasing matches other offerings of the product line unlike anything else currently offered on the market from other competing brands.
Integration Like the press release, these blogs will be available to read on the Tag Heuer website under the "News" section of the navigation menu. The packaging that will contain each of the luxury accessories in the new Tag Heuer Executive Line will maintain the consistent color schemes as the other elements in the IMC Plan as to reinforce the luxuriousness of the brand’s image. The bloggers will also be provided with the media kit containing the brand’s logo, font, URL and quality images of the products in order to incorporate that onto their blog site.
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Event Sponsorship PGA Event Sponsorship Objective To promote a large influx of brand awareness up to 80% from the genesis of the product launch by providing the most comprehensive promotion strategy of the campaign.
Description By initiating the sponsorship in alignment with the launch of the product, the event will be used as a springboard for all future advertising and promotional efforts in hopes to generate word of mouth buzz, website visits and begin the process of teaching our target audience about the benefits of our product. Being introduced at an event will not only carry influence with our target market but will also proliferate these effects to a degree of much larger efficacy. With an all‐inclusive sponsorship deal with PGA, the tournament will be named after our product line and air on the ESPN network at the beginning of the campaign to start the first weekend in March 2012. TV ad spots and sponsorship mentions by event hosts will be used often throughout the event and occur in the last slot of the commercial pod when aired. Banner ads (Appendix 34) will be used on site at golf course grounds and clubhouse area for those in attendance to be directly exposed to. TV commentators will be provided exclusively with Tag Heuer Executive Line accessorizing with their attire as nuance to the promotion. The ultimate outcome in the form of the tournament trophy presentation will also sport the Tag Heuer Executive Line logo and campaign themes and the winner will be presented with Tag Heuer Executive Line watch and the overall purse and winnings of the event will be covered by Tag Heuer as part of the promotion.
Cost All inclusive cost of a four day weekend PGA sponsorship deal (including all TV ad costs, promotional mentions, on site advertising, and purse winnings) = $7,000,000 (Appendix 31).
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Integration In congruency with our target market's interests, the choice of a PGA event to sponsor is on par with having the ability to effectively and efficiently educate consumers about the new product line rollout. The feel and image of TV ads and print ads will carry through to the banner ads scattered across golf course grounds and will appeal to the quality which is accentuated in all other avenues of the product advertising and promotion strategy and will help to further reinforce its status connotation. Product website URL will be posted to link people online and further encouragement to visit will be garnered through TV commentator advisement throughout the weekend. Seeing the product itself being worn first hand by influencers of our segment will likely lead many through to the liking stage immediately and cause a more impactful weight from which all of the pieces of the IMC plan will benefit.
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Support Media Branded Episodic Entertainment Objective Increase overall awareness to 80% with audience who may not consume traditional forms of advertising and media. Through a less conventional approach and focusing on the key messages which promote Tag Heuer's brand equity to consumers, we would be able to engage them in a distinctive and entertaining way unique to any other experience they can get elsewhere. Our goal is for 100,000 views in initial 4 day weekend of product launch (during PGA tournament).
Description We plan to hire top name actors and directors to theme these episodes in line with Tag Heuer's offering at any given time. The initial run will consist of one episode which will be available on day one of the first year of the campaign and will be available on a Tag Heuer YouTube channel. This will be linked via imbedded plug‐in which will be posted as content on the company website. The episode will be approximately five minutes long and will be gauged successful or unsuccessful based on reaching the opening weekend goal of 100,000 views (Appendix 28). If deemed successful, more content will be created with additional actor and director partnerships.
Cost Per episode: $3,000,000 (Appendix 29) 5 episodes * $3,000,000 = $15,000,000
Integration By launching the episodic campaign on YouTube to correspond with the PGA tournament sponsorship, a golf themed episode will be the first to be presented to the audience to tie together all Executive Line products to a message that aligns with the feel of the event. The website will carry an imbedded plug‐in to the Tag Heuer YouTube channel and vice versa to quickly and easily bring together internet users for more effective viral spread. Tones and imagery used in other forms of media and advertisements will provide a similar look and feel as to not delineate from core approach and meaning of the Tag Heuer identity. Tones include classical music that pertains to the upper class lifestyle and imagery refers to those often associated with a luxurious lifestyle.
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Point‐of‐Purchase (POP) Objective To draw attention to Tag Heuer’s Executive Line products in fine department stores such as Nordstrom and Neiman Marcus, retailers will be provided with elegantly styled point‐of‐ purchase (POP) displays. Description Retailers will be provided with signage to include in their existing jewelry counter displays where other luxury watches are sold. The signage will consist of Tag Heuer’s logo and the tagline “You’ve Earned It” in Vani font, and will be packaged with fine leather briefcases that the Executive Line watches are to be placed on top and inside of the glass display counter. The same strategy will be repeated in the sunglasses display counter. Retailers will also be provided with signage and instructions for the placement of a display in the women’s accessories department near the handbags. The display will include the complete women’s Executive line: watches, sunglasses, wallets, handbags and gloves. Retailers will be instructed to place the display in an existing glass counter with the same signage included in the watch and sunglasses display.
Timing Retailers will be provided with the displays with their first shipment of Tag Heuer’s Executive Line products. This is anticipated to follow shortly after the launch of the line at BaselWorld from March 8 to 15, 2012.
Cost Because Tag Heuer already distributes watches and sunglasses through Nordstrom and Neiman Marcus and the Executive Line displays will replace existing Tag Heuer displays, there will be no additional costs. Point‐of‐purchase (POP) displays are already updated seasonally. (Assumption 17)
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Integration We will integrate the point‐of‐purchase (POP) displays by utilizing the consistent theme of an improved social status gained by owning and wearing a Tag Heuer accessory. By focusing the lighting on the Tag Heuer accessory and casting shadows across other elements within the advertisement, the theme of a luxurious lifestyle will be emphasized. As mentioned in the point‐of‐purchase description, we will be utilizing signage to make the Tag Heuer logo visible to customers in the jewelry department. In addition, the tagline will be located beneath the logo in Copperplate Gothic Light font, to maintain consistency throughout all IMC elements. There will be coherent color schemes as the other forms of advertising and include white, gray and black shades to allude to a luxurious lifestyle. The only aspect of the IMC plan that will be missing from our displays is the URL, which will not be applied to the displays due to the fact that we are aiming for an in‐store purchase.
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Evaluation of Promotional Plan Since our objective is to increase awareness for the Tag Heuer brand, all components in our IMC plan will be measured on their ability to effectively reach an overall awareness of 80%. With these measurements, an assessment of our IMC plan can be reached and the appropriate modifications can take place. Measurements will be conducted using the Gallop & Robinson’s Impact System. Justification: By using Gallop & Robinson’s Impact System (Appendix 25), our advertisements will be post‐tested to determine their effectiveness in improving Tag Heuer’s brand awareness. To evaluate our television advertisements, InTeleTest will be utilized because it is the most realistic system available to stimulate a normal viewing environment (Appendix 26). For print advertisements we will use MIRS (Magazine Impact Research Service) because it is the industry leader for print testing (Appendix 27). Media Advertising An assessment of our media advertising will be conducted in order to determine how well the objectives of increased brand awareness, knowledge and preference for the Tag Heuer brand have been met. •
Television – InTeleTest Total cost to test television ad effectiveness for one TV ad = $15,000 (Assumption 12) Magazines – MIRS (Magazine Impact Research Service) Since we will only be using full page, full color, there is only a need to evaluate the effectiveness of a single print advertisement. Total cost to test effectiveness of one print advertisement = $10,000 (Assumption 13)
Other Promotional Elements Pretesting was conducted as part of the initial strategy development of our overall IMC plan and will therefore incur no additional costs (Assumption 14). Google Analytics, a free service offered by Google that generates detailed statistics about website visitors, will be used to post‐ test the effectiveness of our website as well as banner advertisements in enhancing brand recall. For our event sponsorship of the PGA Tour, we will post‐test its effectiveness by evaluating the before‐and‐after website traffic that is generated (Assumption 15).When it comes to post‐testing direct marketing, point‐of‐purchase, and public relations, a variety of methods will be utilized to measure their effectiveness such as the number of orders processed for our catalog, exit polls and tracking sales for our point‐of‐purchase, and the number of press clippings and media coverage for our public relations. 49 | P a g e
Internet Advertising Posttest using click‐through rate (Google Analytics) No added cost Website Posttest using data on hits, pages viewed, unique visitors, etc. (Google Analytics) No added cost Direct Marketing: Catalog Posttest using number of orders processed No added cost POP In‐store display of Tag Heuer accessory line Posttest using exit poll and tracking sales in upper‐end department stores, such as Nordstrom and Neiman Marcus Public Relations: Press Release Posttest by tracking total number of press clippings, where the coverage appeared, positive and negative media coverage by PGA Tour sponsorship, and the accuracy of information No added cost Event Sponsorship: PGA Tour Posttest with traffic to Tag Heuer website during and directly following the sponsorship (Assumption 15) No added cost
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IMC Budget Budgeting Method: • •
Objective Budgeting o Build/Bottom‐up Percent of Sales o Year one forecasted wholesale sales o 4% floor = .04 * $260,397,375 o 20% ceiling = .2 * $260,397,375
= = =
$260,397,375 $10,415,895 $52,079,475
Advertising Costs • • • • •
Television Print Internet Production (10%) Total
$912,120.00 $8,354,820.00 $4,708,714.60 $1,397,565.46 $15,373,220.06
Direct Marketing Costs •
No additional costs
Website Costs •
No additional costs
Sales Promotion Costs •
No additional costs
Point‐of‐Purchase Costs •
No additional costs
Public Relations Costs • • •
Consumer Viral Total
$449.00 $6,675.00 $7,124.00
Event Sponsorship Costs • •
PGA Tour Total
Support Media Costs •
Branded Entertainment $15,000,000.00 51 | P a g e
Point of Purchase Costs •
No additional costs
Promotional Plan Evaluation Costs • • •
Television Print Total
$15,000.00 $10,000.00 $25,000.00
Total IMC Budget •
Total IMC Budget as a Percentage of Forecasted Sales •
Budget / Sales
Competitive Assessment •
• • •
Industry A/S ratios o LVMH 0.1282% o Rolex 0.0516% The 14.35% of sales IMC budget is significantly higher than the competitors’ ratios listed above This discrepancy is related to the wide portfolio of brands held by LVMH as well as the extremely strong established brand value held by all of their subsidiaries as well as Rolex Because Tag Heuer does not have the level of established brand value in the United States that their competitors do, the relatively high A/S and Budget/Sales is necessary in order to achieve the communication objective of increasing brand awareness to 80%.
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Appendix 1 Fall 2009 Product Apparel/Accessories
Watches ‐ Kinds Dress Bought any in last 12 months Base: Adults HHI ($75‐$149K) = 3,573 HHI ($150K+)=1,648 HHI($75K+)= 3,573+1,648 = 5,221 million 5.221 million/10.586 million = 0.4932‐‐> 49.32% of adults who purchased a dress watch in the last 12 months have an annual HHI of $75,000 or more.
Stub Total Educ: graduated college plus Educ: attended college Educ: post graduate Age 25‐34 Age 35‐44 Age 45‐54 Age 55‐64 Age 65+ Adults 18‐34 Adults 18‐49 Adults 25‐54 Women 18‐34 Women 18‐49 Women 25‐54 Occupation: Professional and Related Occupation
Total '000 225,887 60,806 63,023 20,290 40,349 42,375 44,155 33,466 37,006 68,885 134,084 126,879 34,196 67,241 64,064
Proj '000 10,586 3,177 3,327 1,094 1,956 2,207 2,328 1,550 1,368 3,133 6,443 6,490 1,745 3,581 3,844
Pct Across 4.7 5.2 5.3 5.4 4.8 5.2 5.3 4.6 3.7 4.5 4.8 5.1 5.1 5.3 6
Pct Down 100 30 31.4 10.3 18.5 20.8 22 14.6 12.9 29.6 60.9 61.3 16.5 33.8 36.3
Index 100 111 113 115 103 111 112 99 79 97 103 109 109 114 128
Occupation: Management, Business and Financial Operations
Occupation: Sales and Office Occupation
HHI$60,000‐$74,999 HHI$50,000‐$59,999 HHI$40,000‐$49,999
24,815 18,924 20,241
963 780 741
3.9 4.1 3.7
9.1 7.4 7
149 118 83 88 78
HHI$30,000‐$39,999 HHI$20,000‐$29,999 HHI<$20,000 Census Region: North East Census Region: South Census Region: Midwest Census Region: West Marital Status: Never Married Marital Status: Now Married Marital Status: Engaged
992 767 1,122 2,222 3,892 1,959 2,513 2,735 5,929 604
4.7 3.6 3.7 5.3 4.7 3.9 4.9 4.7 4.8 5.4
9.4 7.2 10.6 21 36.8 18.5 23.7 25.8 56 5.7
99 76 78 114 100 84 104 100 102 116
9,017 8,592 17,038 41,670 32,266 42,124 44,996 158,033
357 430 767 1,667 1,323 1,888 2,032 7,449
4 5 4.5 4 4.1 4.5 4.5 4.7
3.4 4.1 7.2 15.7 12.5 17.8 19.2 70.4
84 107 96 85 87 96 96 101
19,099 8,768 173,131 26,199
624 219 7,343 1,669
3.3 2.5 4.2 6.4
5.9 2.1 69.4 15.8
70 53 91 136
5,969 21,576 170,380
380 1,179 7,173
6.4 5.5 4.2
3.6 11.1 67.8
136 117 90 139
Marital Status: Widowed/Divorced/Legally Separated
Child age: <12 months Child age: 12‐23 months Child age: <2 years Child age: <6 years Child age: 2‐5 years Child age: 6‐11 years Child age: 12‐17 years Home: Owned Home value: $500,000+ Dollars Home value: $200,000‐ $499,999
Home value: $100,000‐ $199,999 Home value: $50,000‐$99,999 Home value: <$50,000 Race: White Race: Black/African American Race: American Indian or Alaska Native Race: Asian Race: Other Race: White only Race: Black/African American only
Race: Other Race: /Multiple Classifications
21,328 21,550 30,706 41,622 83,038 49,827 51,401 58,619 124,254 11,083
Appendix 2 Lifestyle Analysis Reports: Lifestyle Ranking Index
Apparel & Jewelry: Designer Label Improves Person's Image, Agr (A)
Lifestyle Category: Psychographics
Like to Stand Out in a Crowd, Agr (A)
Prefer Specialty Stores because Have Best Brands, Agr (A)
Listen Less to Non-Internet Radio because of Internet, Agr (A)
Rely On Magazines to Keep Me Informed, Agr (A)
Interested in The Arts, Agr (A)
Prefer to Buy Products from Specialty Stores, Agr (A)
Prefer Specialty Store because Employee Knowledge, Agr (A)
Always Look for Brand Name, Agr (A)
Would Pay More for Environmentally Friendly Products, Agr (A)
Ban Products that Pollute, Agr (A)
Do Some Sport/Exercise Once a Week, Agr (A)
People Have a Duty to Recycle, Agr (A)
Rely on Radio to Keep Me Informed, Agr (A)
Have a Keen Sense of Adventure, Agr (A)
Consider Myself a Creative Person, Agr (A)
Typically Avoid Watching TV Commercials, Agr (A)
My Faith is Really Important to Me, Agr (A)
Always Look for Special Offers, Agr (A)
Like Spending Most Time Home with Family, Agr (A)
How I Spend Time Is More Important than Money, Agr (A)
Rely on Newspaper to Keep Me Informed, Agr (A)
Only Go Shopping to Buy Something I Really Need, Agr (A)
Rely on TV To Keep Me Informed, Agr (A)
Advertising to Kids Is Wrong, Agr (A)
Consider Myself a Spiritual Person, Agr (A)
Try to Buy Goods Produced by Own Country, Agr (A)
Prepared On: Mon, 18 Apr 2011 PRIZM, 2010 © 2010 EXPERIAN Marketing Solutions, Inc. All Rights Reserved. © 2010 The Nielsen Company. All rights reserved.
Users / 100 HHs
Appendix 3 Lifestyle Analysis Reports: Market Potential Report
Apparel & Jewelry: Designer Label Improves Person's Image, Agr (A)
Users / 100 HHs
Market Potentia l Index
United States by DMA
Base Count %Comp
Estimate d Users
Estimated Users %Comp
Miami-Ft. Lauderdale, FL
New York, NY
Los Angeles, CA
Las Vegas, NV
San Francisco et al, CA
San Diego, CA
El Paso et al, TXNM
Washington et al, DC-MD
How to Use Pricing as a Marketing Strategy By Jeanne Grunert, eHow User
Price Can be an Important Marketing Strategy Product, price, place and promotion form the cornerstones of any marketing strategy, yet one aspect - price - is perhaps the easiest and most flexible aspect to test and measure its impact on marketing success. Pricing is both an art and a science, and marketing decisions regarding pricing items are based both on sound market research as well as instinct. Based on over twenty years of marketing management experience managing various retail firms, here are some guidelines for using pricing as a marketing strategy or as part of a marketing plan.
1 Begin examing the prices of similar items sold by competitors. For bricks and mortar stores, you need to visit competitors stores once per season. Examine items that are similar or the same as ones you are selling and note prices and discounts. For online retailers, shop major categories. It may be helpful to create a rudimentary spreadsheet in Microsoft Excel to track prices.
2 Look through newspapers, magazines, and other forms of advertising and note how your competitors are using discounts. Are they giving out coupons or offering one day sales?
3 Next, examine your own markup policies. What is your markup range? Do you even have one? Markup is typically calculated by multiplying the wholesale cost plus the shipping costs by a number to get the retail price. The retail price has to account for overhead, marketing costs and profit. Typical markups are 2x wholesale or more for luxury goods. Are your markups pushing your retail prices too high, or perhaps too low?
Appendix 6 1. 07-25-2009 04:26 AM#1 Hamilton
Join Date Jul 2008 Location USA Real Name Hamilton Carvalho Watch(es) Rolex, Omega, Hamilton, and many more Posts 1,816
Rolex Leads U.S. Watch Advertiser Pack This article is from WatchTime HEY, BIG SPENDERS TOP 25 WATCH ADVERTISERS U.S. Market, 2008 RANK BRAND AMOUNT ($ millions) 1 Rolex 49.30 2 Breitling 28.92 3 TAG Heuer 25.97 4 Citizen 19.51 5 Movado 18.68 6 Omega 14.59 7 Cartier 14.41 8 Bulova 12.01 9 Seiko 8.84 10 Gucci 7.14 11 Chanel 6.75 12 Patek Philippe 6.69
Please See Following Page
13 14 15 16 17 18 19 20 21 22 23 24 25
IWC 5.75 Hublot 5.48 Bell & Ross 5.31 Ulysse Nardin 4.56 Longines 4.29 Breguet 4.20 Dolce & Gabbana 3.98 Ebel 3.74 Jacob & Co. 3.68 Rado 3.41 Jaeger-LeCoultre 3.34 Raymond Weil 3.33 Baume & Mercier 3.21
Source: TNS Media Intelligence U.S. AD SPENDING ON WATCHES ($ millions) 2004: 2005: 2006: 2007: 2008:
238.0 282.6 329.6 387.6 381.4
Watch Industry Revenue = 0.19 x $44.0bn = $8,360,000,000
Scene 1: Scene 2: Scene flashes to woman getting ready in the morning for the Man goes into his neatly organized closet and selects his same business meeting best Tag Heuer necktie
Scene 4: Scene 5: Woman goes to her dresser where her jewelry box is located, Woman goes into her neatly organized closet and seslowly opens it, revealing her biggest weapon—her Tag Heu- lects her best purse. er luxury watch
Opening Shot: Early in the morning—man is getting ready for his business meeting (string instruments—violin, cello—begin playing)
Scene 3: Man goes to his dresser where his jewelry box is located, slowly opens it, revealing his biggest weapon—his Tag Heuer luxury watch, puts watch on
Appendix: TV Advertisement
Scene 7: As woman is leaving her house, she puts on her Tag Heuer sunglasses and steps into her luxury automobile
Scene 10: The businessman and woman make eye contact and smile with confidence as they head to the conference room (music begins to fade)
Scene 6: As business man is leaving his house, he puts on his Tag Heuer sunglasses and steps into his luxury automobile
Scene 9: As they walk through the office towards the conference room, everybody around them stops what theyâ€™re doing to look at their Tag Heuer accessories
Closing Shot: Fade to Tag Heuer Executive Line Logo, tagline and URL to website. (music fades completely)
Scene 8: Both arrive at business office and walk together into the building
Appendix 10 Please see following page
THE MEDIA BUSINESS: ADVERTISING; The Fox News Channel tops CNN's audience, and casts its eyes toward its advertising rates. By Jane L. Levere Published: January 30, 2002 FOR the first time in its five-year history, the Fox News Channel has drawn a larger audience than CNN for a full month, and it has also topped it in the major demographic categories. Though the victory, which came in the January ratings, has been long in the making, it represents an important milestone for Fox News, which was widely considered to be a long shot to overtake CNN when it was started in 1996 by the News Corporation. Perhaps most important, the Fox News Channel now has new bragging rights on Madison Avenue, where its news status could help it raise its advertising rates, which have generally lagged those of CNN. The surge of Fox News in January does have some elements of surprise: it comes after an extraordinarily busy news environment during the fall that many news industry analysts said they thought would play to the strengths of CNN and help it keep its lead over Fox when the pace of news slowed. The January ratings measurement period ended on Sunday. The Fox News Channel has clearly been aided by an increase of more than 30 percent in its distribution in the last year. But it is still available in about nine million fewer homes than CNN, an indication that Fox News could establish itself as a solid front-runner if it manages to close that gap in distribution. (Fox News is available in roughly 77 million homes, while CNN is in about 86 million homes.) Mindful that the CNN audience tends to surge during big breaking news events -- which in the post-Sept. 11 climate could conceivably occur at any moment -- executives at Fox were careful not to overstate the victory.
''We got in their turf and took the fight to them,'' said Roger Ailes, the chairman of the Fox News Channel. ''But they are experienced, knowledgeable journalists who are going to fight back hard. I think that this is still a horse race.'' This month, Fox News has been watched by an average of 656,000 people a day, according to Nielsen Media Research, CNN by an average of 596,000 people, MSNBC by 296,000 and CNN Headline News by 235,000. CNBC, a former front-runner, has been watched by an average of 241,000. Among people ages 25 to 54 -- the demographic that advertisers care most about in news -- Fox News has been watched by 277,000 people, CNN by 202,000 and MSNBC by 150,000. CNN executives said they did not think that Fox's gains had come at the expense of their network. The average CNN audience, they noted, was more than 50 percent larger this month than it was last January. Rather, they said, Fox and CNN seem to be the beneficiaries of a larger cable news audience. Now, Fox News hopes it can catch up to CNN in advertising revenue. Executives at both networks estimate that Fox's 30-second commercial spots cost $3,000 to $4,000 during the day and up to $20,000 in prime time, and that CNN's cost $6,000 to $7,000 during the day and up to $30,000 in prime time. http://www.nytimes.com/2002/01/30/business/media-business-advertising-fox-channel-tops-cnns-audience-casts-its-eyes-toward.html Average for CNN= $6,000+$7,000=$13,000/2 =$6,500
CNBC CNN ESPN‐PGA Sponsorship Magazines Forbes Golf Magazine GQ Newsweek Travel + Leisure Newspapers Wall Street Journal Internet Advertising wsj.com Amazon.com
*Print Schedules based on typical publication dates **Timeslots in green = selected times for publication & airing
March April May June July August September October November December January February 4 11 18 25 1 8 15 29 6 13 20 27 3 10 17 24 1 8 15 22 5 12 19 26 2 9 16 23 7 14 21 28 4 11 18 25 2 9 16 23 6 13 20 27 3 10 17 24
Appendix 12 Please see following page
CNBC slides as viewers get crunched Aggressive business network becomes a turn-off • •
Andrew Clark in New York The Observer, Sunday 9 August 2009
Jim Cramer, CNBC's controversial "Mad Money" stockpicker. Photograph: Lisa Carpenter
With a steely gaze, the pin-striped CNBC television host Larry Kudlow looks meaningfully into the camera. "We believe that free market capitalism is the best path to prosperity," he declares, reciting his trademark "creed" before enthusiastically launching into the day's financial action. Share prices flicker across the bottom of the screen. Traders bicker about the fundamentals of the market. A "breaking news" flash delivers US non-farm payroll numbers. Welcome to CNBC, the world's top business television channel, which broadcasts across the globe from the nondescript suburban town of Englewood Cliffs, New Jersey. Courting constant controversy for its evangelism of financial speculation, CNBC has never had so much attention. It devotes 16 hours of live coverage every day to the markets and has analysed every detail of the credit crunch. So why are its ratings slumping?............................
According to figures supplied to the Observer by Nielsen, the television tracking agency, the average number of Americans watching CNBC at any point on the 24-hour clock was 188,000 last month, a drop of 11% on last year. A more detailed breakdown leaked on the internet reveals a 28% plunge in CNBC viewers during the core business day, between 5am and 7pm. Bloomberg, which offers much more serious coverage, has tried to ramp up its popularity through a series of high-profile signings and has better distribution in Europe, reaching 130m households. But it is rarely the choice of trading floors and is widely regarded as dull. Rupert Murdoch's Business is approaching its second anniversary but its efforts to take Wall Street to Main Street have gone largely unnoticed. Its ratings are not publicly released by Nielsen, but industry insiders say its US viewer numbers amount to five, rather than six, figures. Executives at CNBC say numbers are only part of the picture. The network stresses quality, rather than quantity, and offers advertisers affluent, well-educated viewers. A spokesman said: "Nielsen does not measure affluent homes or out-of-home viewing such as corporate suites, trading floors, hotel rooms, country clubs and other high-end locations, all of which represent CNBC's core." They have a point, according to Derek Baine, an analyst at media consultancy SNL Kagan, who reckons that because of its wealthy following, financial TV can command an advertising rate around $7 for every 1,000 viewers reached, rather than $4-$5 for other cable networks. Fans of CNBC say delicate souls who shudder at its bombastic delivery are missing the point. Andrew Leckey, a former CNBC anchorman who chairs Arizona State University's centre for business journalism, says: "CNBC's audience is a very finite group, most of whom are quite well-heeled, mostly quite serious. They know where the presenters are coming from, they know what they are - they know they're provocateurs." guardian.co.uk © Guardian News and Media Limited 2011
Appendix 13 CNBC Is Bleeding Viewers April 27, 2010 4:28 PM EDT
While the stock market has been soaring, investors have been hitting the sell button on CNBC's market coverage over the last 12 months and have been leaving in droves in the last two months, according to data released today from Nielsen Media Research. Over the last 12 months the network has seen its number of average viewer during the prime market news hours of 5:00 am to 7:00 pm Eastern plummet 28 percent, and the number of viewer in the key demographic (ages 25-54) free-fall 41 percent. April, which is the latest month released today from Nielsen, was its lowest rated in a 16-month period at 215,000 average viewers, down from the 311,000 the network saw in January 2010. The key demographic number also fell to its lowest level at 49,000 in April, down more from 83,000 in April 2009. CNBC's average monthly rating is down to a 0.2 percent share in April from 0.3 percent just two months prior. Two of the networks biggest shows, "Mad Money" with Jim Cramer and "Street Signs" with Erin Burnett have weighed on the business news source's results recently. Investors seem to care less and less each month about what Cramer sees in the markets, as the last 12-months has seen his shows number of viewers drop 39 percent overall and 42 percent in the key age demographic according to Nielsen. The over-the-top investor-guru's show has seen its average monthly drop to a 0.1 percent share after holding a 0.2 percent share for the previous 15-months of the period examined. As for "Street Signs," the key demographic has lost its way as the number of average viewers has slipped 56 percent and overall by 34 percent. Street Signs ratings have gone from a 0.4 percent share in the January 2009 to 0.2 percent in the current month. The sharpest drop in the average number of viewers for CNBC has been seen in the last month, as the total is down 11 percent overall, lower by 12 percent for "Street Signs" and down 13 percent for "Mad Money." It is unknown if rival Fox Business Network is finally gaining traction with investors, if investors are turning more toward Internet shows from the WSJ and others, or if investors simply lost interest in the cable business network. http://www.streetinsider.com/Insiders+Blog/CNBC+Is+Bleeding+Viewers/5568261.html
Appendix 14 please see following page
Where the action is tracking ad spending in the top 12 advertising categories. (Industry Analysis). Article from: Mediaweek | October 21, 2002 | Case, Tony Looking ahead is much more difficult than looking back. In the spring, we try to make sense of the year that just passed, to determine which magazines have grown, and which will continue to thrive. Now, with our annual Fall Magazine Report, we are going out on a limb and looking ahead, attempting to predict which magazines will lead, and which will fall behind, in ad sales. This is not a list of hot magazines. Instead, we have analyzed the 12 ad categories tracked by Publishers Information Bureau. Then, using numbers from Competitive Media Reporting, we looked at the top spenders in each ad category for the years 1997, the peak year of 2000, the rock-bottom year of 2001, and the current year through September. Next, we calculated the top 30 titles, by dollars, in each magazine category, using the Mediaweek Monitor as our guide, in order to determine which types of magazines are grabbing the greatest share of ad dollars. Finally, we report the top 10 magazines, according to revenue, and rank the leaders and laggards across each ad category. We passed this comprehensive chart along to leading media executives and analysts, who took time to pore over the numbers and help us to unearth trends. What we've come up with is an indicator of what the next year may hold for some of the biggest magazines. Comments from these media executives regarding specific titles and categories can be found on the following 12 pages, but they also had some general observations on ad spending, including this from Mike McHale, group media director of Optimedia International: "If you look at the more rational year of 1997, versus 2000 when Wall Street was funding the budgets of Madison Avenue, what you see is positive, normal growth." While some categories might be struggling, overall, these numbers indicate that magazines are holding their own in an unpredictable economy. Mediaweek contributing editor Tony Case was the lead writer and researcher on this project; he had invaluable help from Adweek's research editor Jim English. Art director Paul Virga structured a readable layout. And copy editor Mary Callahan provided a fresh pair of eyes when ours were aching from looking at so many numbers. Patricia Orsini Hot List Review
In the past, we have done our Hot List in March, then never looked back. But this year, we thought we'd do a midseason review, and look at how our picks from last spring are faring, based on ad sales so far this year. Our top pick, Maxim, shows up as a leader in apparel, a category the book has aggressively pursued. Perennial Hot List-er In Style, from Time Inc., leads a host of categories, including toiletries/cosmetics and retail. YM is one of the leaders in the toiletries category, hanging in there in a tough year. Hearst's Good HouseKeeping, which muscled onto the list, benefits from spending in the food category. Another perennial, Martha Stewart Living, is holding its own in household furnishings and food products, while slipping in retail. Another list mainstay, Vanity Fair, seems to be slipping in apparel. While some Hot Listers--Teen People, ESPN, Cooking Light and Marie Claire--don't show up at all, others, such as Time, Sports Illustrated and Better Homes and Gardens show up several times. Keep in mind that we are looking at market share, while the Hot List looks at revenue growth. Still, this gives us an idea of titles we may be looking at next spring. Apparel & Accessories Ad Spending 1997 RANK #5 Ad Spending $987.6 million DOLLARS *
NO. OF PAGES
SPENDERS Nike Polo/RL Vanity Fair Corp. LVMH Tommy Hilfiger Sara Lee Liz Claiborne Movado Reebok DeBeers
43.8 39.1 34.9 28.0 24.3 22.3 22.2 20.0 18.8 17.3
705.3 627.6 463.3 577.2 417.9 323.9 363.3 379.9 332.5 251.7
* In millions.
Appendix 16 The Average CPM Rates Across Different Verticals Ads by Google The Google Engage Program www.google.com/ads/engage
If you are curious to know the average CPM rates for online advertising across verticals, this graph from Adify should give you a good idea. CPM trends across verticals
Average CPM for Business = ($6.01+$6.26+ $5.68) / 3 = $5.98
Except Food, Entertainment and Real Estate, the CPM rates for display ads have declined across industries in the last three quarters which is quite good news for online advertisers but not so good news for web publishers and bloggers. For some unknown reason, this Adify Report excludes the Technology sector which also commands high CPM rates (the CPM rates for tech industry were around $15 in Q2 2009). CPM = cost per thousand ad impressions. http://www.labnol.org/internet/average-cpm-rates/11315/
Total Cable: CNBC Any watching Cable: CNN (Cable News Network) Any watching Magazines: Forbes Average Audience Magazines: Golf Magazine Average Audience Magazines: GQ (Gentlemen's Quarterly) Average Audience Magazines: Newsweek Average Audience Magazines: Travel + Leisure Average Audience Web Sites: nytimes.com Web Sites: wsj.com Web Sites: Expedia.com
Fall 2009 Product: Apparel/Accessories Watches - Kinds Dress Bought any in last 12 months Adults Total Proj Pct Pct Inde '000 '000 Acros Dow x s n 22588 1058 7 6 4.7 100 100 42855 2517 5.9 23.8 125 77218 4217 5.5 39.8 117 * 6032 286 4.7 2.7 101 * 5603 315 5.6 3 120 6773 16601 4813 9535 4366 21014
458 881 368 500 307 1382
6.8 5.3 7.6 5.2 7 6.6
4.3 8.3 3.5 4.7 2.9 13.1
144 113 163 112 150 140
* Denotes sample size is less than 50.
Bought Dress Watch in Last 12 Months Total Proj '000 '000
Cable: CNBC Any watching
Cable: CNN (Cable News Network) Any watching
GQ (Gentlemen's Quarterly)
Travel + Leisure
Respondent Income $75,000‐$99,999 Total Proj '000 '000
Cable: CNN (Cable News Network)
GQ (Gentlemen's Quarterly)
Travel + Leisure
Respondent Income $100,000‐$149,999 Total Proj '000 '000
Cable: CNN (Cable News Network)
GQ (Gentlemen's Quarterly)
Travel + Leisure
Cable: CNN (Cable News Network)
GQ (Gentlemen's Quarterly)
Travel + Leisure
Respondent Income $200,000‐$249,999 Total Proj '000 '000 225887
Cable: CNN (Cable News Network)
GQ (Gentlemen's Quarterly)
Travel + Leisure
Respondent Income $150,000‐$199,999 Total Proj '000 '000
Respondent Income $200,000‐$249,999 Total Proj '000 '000 225887
Cable: CNN (Cable News Network)
GQ (Gentlemen's Quarterly)
Travel + Leisure
Appendix 19 Fall 2009 Product: Apparel/Accessories Watches - Kinds Dress Bought any in last 12 months Adults Total Proj Pct '000 '000 Across Total Internet Quintile Internet Quintile Internet Quintile Internet Quintile Internet Quintile
I (Heavy) II III IV V (Light)
225887 45203 45161 45178 45168 45177
10586 2675 2370 1944 1613 1983
4.7 5.9 5.2 4.3 3.6 4.4
100 25.3 22.4 18.4 15.2 18.7
100 126 112 92 76 94
Watch Advertising Up 21%; Rolex Takes the Lead Publication: National Jeweler Date: Wednesday, August 1 2001 It's official: U.S. watch advertisers enjoyed a splurge-fest last year, spending $186.56 million, a 21 percent increase over 1999. It's a new record. The figure comes from Competitive Media Reporting (CMR), a N.Y. company that tracks brands' advertising in 11 different media and uses open rates to estimates expenditures. Last year brought some changes to the industry's top spenders. The Rolex brand took over first place, knocking the Timex brand into the second spot. Rolex increased its advertising spending by 12 percent to $13.33 million, while Timex decreased its spending by 33 percent to $9.62 million. Omega, which came in third in 1999, slipped to No. 7 this year due to its 18 percent spending decrease to $8.27 million. The Movado brand, boosted by its 12 percent increase, took over the No. 3 spot from No. 5 the year before. Citizen spent $9.19 million, four percent less than in 1999, and retained its No. 4 spot from the year before. Rounding out the top five spending brands was TAG Heuer, which increased its spending by 14 percent to just under $9 million.
The CMR report, produced annually, contained some other interesting tidbits. For one, Seiko climbed back onto the list of top 20 advertisers after a one-year absence. The brand's spending has moved up and down like a roller coaster over the past few years, hitting $15 million in 1998, then dropping to almost nothing in 1999, when the company regrouped and decided what to promote and how to promote it. Last year, the brand spent $5.18 million, CMR estimated, and moved into the No. 9 spot. Also, the Bulova brand more than doubled its spending to $5.06 million. As a result, it rose to the No. 10 spot from No. 17 the year before. In 2000, the number of watch brands spending more than $1 million increased to 43, up from 33 in 1999. Among the new high rollers were Bedat & Co., which spent a very handsome $4.23 million, and Yurman, which came in at $3.08 million. Both made the top 20 list. The biggest-spending watch company was the Movado Group, which spent $21.71 million on advertising, slightly more than in 1999. The Swatch Group ranked second, the same as the prior year, with expenditures pegged at $17.63 million, three percent more than in 1999. Richemont North America rose to become the third-biggest spending company at $14.67 million. Included in its $4.9 million increase is $2.91 million in expenditures by IWC and Jaeger-LeCoultre, which Richemont acquired inJuly of 2000……………….. http://www.allbusiness.com/retail-trade/apparel-accessory-stores-womens-specialty/4241328-1.html
TV CNN CNBC Print Forbes Golf Magazine GQ Newsweek Travel + Leisure Internet Expedia.com nytimes.com wsj.com
# of Runs* (per 12 Viewership months) (millions) 48 77.22 24 42.86 12 6.03 12 5.60 12 6.77 12 16.60 12 4.81 365 21.01 365 9.54 365 4.37
Total Gross Impressions (millions)
Gross Impressions (millions) 3,706.46 1,028.52 72.38 67.24 81.28 199.21 57.76 7,670.11 3,480.28 1,593.59 17,956.82
* does not account for multiple runs per day (internet) See MediaMark, appendix 18 for viewership data
Appendix 24 Media Budget TV CNN CNBC TV Total
Frequency (per 12 months) Advertising Cost 48 $ 876,000.00 24 $ 36,120.00 $ 912,120.00
Print Forbes Golf Magazine GQ Newsweek Travel + Leisure
Internet Expedia.com nytimes.com wsj.com
730 $ 2,974,326.60 730 $ 1,073,888.00 730 $ 660,500.00
12 12 12 12 12
$ 1,211,520.00 $ 1,908,000.00 $ 1,241,100.00 $ 2,778,300.00 $ 1,215,900.00
Total Production Cost (10%)
$ 13,975,654.60 $ 1,397,565.46
Total Cost of Advertising
Appendix 25 Copy Testing The Gallup & Robinson Impact System
Understanding the performance of individual advertising executions and campaigns - their strengths and weaknesses - in the context of alternatives, past experience or category norms - that is the objective of Gallup & Robinson's Impact System. G&R pioneered Impact based on experimental work that Dr. Gallup began at Young & Rubicam in the early 1940's. It is used both to evaluate advertising effectiveness and to diagnose its performance.
What It Tests Impact can be applied to the evaluation of print advertising in magazines or newspapers or to broadcast commercials on TV or radio. It is equally suited to pre-testing rough advertising executions or post-testing the finished product. The basic Impact system can also be used to test FSIs, direct marketing and Internet advertising. The majority of our testing has been in the consumer sector. We also have considerable experience with B2B ads, for which we have developed normative data for many categories and target audiences.
Methodology Our general methodology is substantially more than “day after recall” and includes a full spectrum of important metrics. The Impact procedure begins with a systematic mapping of ten widely dispersed U.S. markets to ensure that we reach a representative survey sample. Our interviewers contact potential respondents door-to-door or, if low incidence, over the telephone and screen them for specified sample characteristics. If qualified, respondents receive a test stimulus and are instructed to read or view it that day in their home as they normally would. Test ads or commercials are embedded with editorial/programming content and clutter ads to simulate realistic reading or viewing conditions. The next day respondents are recontacted by telephone, confirmed as readers/viewers and taken through a structured interview. They do not refer to the test ad or commercial as they answer the questions covering our core metrics, which include intrusiveness (recall), idea communication, persuasion, brand rating and ad liking. Respondents are then asked to look at the test stimulus again as the diagnostic section of the interview is administered, containing both standardized and custom questions about ad reactions and brand attributes.
Appendix 26 InTeleTest InTeleTest provides validated, evaluative and full-sample diagnostic information in one comprehensive testing system. Respondents are screened door-to-door in ten markets and given VCR cassettes or DVDs containing unviewed programming and pods of commercials, including the test commercial with its position rotated among fillers. They are asked to view the stimulus that day as they normally would under the pretext that we are testing a potential TV pilot. The next day they are recontacted by telephone and interviewed on our core metrics of intrusiveness (recall), persuasion, brand rating and commercial liking. All respondents are then asked to view the test commercial again and are taken through a standardized diagnostic battery that may also include custom questions. InTeleTest, thus provides a rich combination of delayed and immediate evaluative and diagnostic information. Because its viewing environment is in-home and in-context, InTeleTest offers the most realistically-based, predictive measures available anywhere. Reports include tabulations of all data relative to norms, verbatim respondents playback, performance summary and a diagnostic analysis based on G&R's proprietary database of success factors. A variation of this methodology tests commercials as they appear in actual on-air programming and is available as an alternative. In it, respondents are screened by telephone and invited to watch a program scheduled to appear as a regular telecast. They are recontacted by phone on the next day and confirmed viewers are taken through the same questionnaire that is used in a standard InTeleTest, but are not re-exposed to test commercials. This is the preferred design when the advertising needs to be tested in the context of actual scheduled programming. It can test any program of interest, including such events as the Super Bowl, Academy Awards, Olympics or the World Series. Key Benefits and Features: • Most realistic system available to simulate normal viewing environment •
• • • •
Independent evaluation of commercial effectiveness against a validated battery of performance measures Full-sample diagnostic base Equally applicable for pre-testing or post-testing rough or finished commercials Basic design offered as an on-air option Norms available in most categories, based on over 50,000 tested commercials
Appendix 27 Magazine Impact Research Service (MIRS) MIRS is our prototype Impact testing system, developed by Dr. Gallup and enhanced in many ways since its inception. Conducted in ten widely dispersed markets, interviewers screen respondents for eligibility door-to-door and ask them to read a current issue magazine as they normally would at home. The issue they receive contains a test ad that either appears there naturally or is tipped in so as to be undetectable. The following day they are recontacted and taken through our core measures (intrusiveness, persuasion, brand rating and ad liking) without looking at the magazine. Next, the entire sample is asked to look at the test ad before they are administered diagnostic questions, which are both standardized and custom. Data can be enhanced with a variety of proprietary analytic procedures. Reports include tabulations of all data relative to norms, verbatim respondent playback, performance summary and a diagnostic analysis based on G&R's proprietary database of success factors.
Key Benefits and Features: • • • • •
Industry leader in print testing Assesses ad performance in real-world conditions Validated battery of performance measures Can test in virtually any magazine - consumer or B2B Rock solid product/service category norms based on 150,000 magazine ad tests InTeleTest | MIRS | NIMS | RIMS Physician Journal Impact
Branded Entertainment: Web Advertising’s Future Format
October 9th, 2010 | Author: Admin
Branded Entertainment: Web advertising’s Future Format How do you deliver a marketing message to a Web-audience that hates advertising? A few years back I proposed a solution based on short-form television-style programs: the “120 Second Solution,” two minute brand-story commercials formatted in a mini three act Web-video presentation. Today this concept is called Branded Entertainment: a two to seven minute commercial that combines content, advertising, and entertainment in a brand story format designed to attract and hold an audience’s attention while delivering a memorable core marketing message. The concept has been a hard sell as it flies in the face of a lot of conventional wisdom about advertising formats, attention spans, and content credibility. Like most good ideas it seems that branded entertainment’s time has finally come. Various marketing blogs are all a twitter about Orbit Gum’s new campaign called “Dirty Shorts” featuring it’s first branded entertainment effort, a 5:17 minute branded video from Jason Bateman and Will Arnett. It seems these well-known actors have enough faith in this advertising format that they’ve formed DumbDumb, a branded video production company. Their first effort, “The Prom Date,’ was viewed 110,000 times in just three days. Commitment To A Core Message Of course not everyone has the deep pockets required to hire Jason Bateman, but with proper planning and implementation a branded entertainment video campaign is within reach of most successful small and medium sized companies. The single biggest obstacle in implementing this kind of campaign is not the cost, but rather, the commitment to a style and format most business owners find hard to swallow: the need to focus on a single core reason why customers should buy your product or service and to deliver that message in some bold or offbeat manner. … Jerry Bader is Senior Partner at MRPwebmedia, a Thornhill, Ontario based website design firm that specializes in delivering their North American, Australian, and British clients’ marketing messages using the latest audio, video, and interactive Flash presentation techniques to create compelling, informative and memorable Web-experiences that enhance brand personality and increase sales and profits. Visit http://www.mrpwebmedia.com, http://www.136words.com http://www.sonicpersonality.com. Contact at email@example.com or telephone (905) 7641246. http://websiteadvertising.theinternetmarketingblog.net/tag/orbit‐gum#
Appendix 29 See following page BMW Films – The Hire featuring Clive Owen | Complete Series Posted by Sifter in ART & DESIGN | Comments (8)
One of the great marketing campaigns of this millennium, BMW’s The Hire was lauded for its embrace of online marketing and branded content. Bolstered by tangible results and heaps of awards, it also helped launch the career of Clive Owen into the mainstream. The Setup Like most car companies, BMW traditionally executes advertising campaigns (i.e., television, print and radio) to support new vehicle launches. However in 2000, there was no new vehicle launch for BMW, so the opportunity to spend advertising budget on pure branding arose (a marketer’s dream). The Key Insight Through extensive consumer research, BMW found their typical customer was 46 years old, with a median income of about $150,000 (USD). Two-thirds were male, married, and had no children. Delving deeper, they discovered this nugget: Success and Accolades Tangible Love - In 2001, BMW sales increased by 12.5% compared to 2000, surpassing the 200,000 mark for the first time in history
- The following year, BMW’s sales rose 17.2 percent between 2001 and 2002, helping the automaker to outsell Mercedes and placing it second only to Lexus in the luxury-car market - During the four month core of the promotion (series 1), the films were viewed more than 11 million times, with more than 100+ million views to date Industry Love - Awarded the Cyber Lion Grand Prix at Cannes in 2002 (Cannes is the ‘Academy Awards’ of advertising) - Awarded “Best Excuse for Broadband” at WIRED Magazine’s third annual Rave Awards in 2001 - Recipient of two Grand Clio Awards and Best of Show at the One Show Interactive competition - In 2002, the Los Angeles International Short Film Festival’s “Best Action Short” award was given to director John Woo for Hostage - Won the first-ever Titanium Lion, the highest honor at the Cannes International Advertising Festival. The award recognizes campaigns that caused ‘‘the industry to stop in its tracks and reconsider the way forward.’’ - In 2003, The Hire series was inducted into the permanent collection of the Museum of Modern Art (MOMA) COST: The five initial films cost an estimated $15 million, and the three made in 2002 cost about $10 million. Click here for an excellent marketing campaign case study for The Hire Sources: - http://www.imediaconnection.com/content/546.asp - http://www.motortrend.com/auto_news/112_news051015_bmw_the_hire/index.html - http://marketing-case-studies.blogspot.com/2008/03/hire-campaign.html
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Press Release Writing & Distribution – Professional press release written by a PRW staff writer. Includes distribution.
Basic Distribution Package – The most complete single distribution option (over 35,000 journalists and media outlets).
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Appendix 31 See following page Wednesday, February 14, 2007 Updated: February 18, 6:56 PM ET PGA Tour events are risky business By Bob Harig Special to ESPN.com It sounds so simple, really. Certainly there are any number of corporations out there that want to promote themselves through golf, a game played by executives across the country and watched by a high‐end demographic many businesses covet.
So they fork over many millions of dollars to put their name on a tournament, which is beamed across the land and into foreign markets. They get heavy local exposure. They treat their best clients and employees to a week of sun and fun. And everybody's happy. Except, well … too many people are not happy. Last week's sudden and swift demise of The International in Colorado should not have been as shocking as it is being portrayed. The surprise, really, is that this sort of thing doesn't happen more often. We always wonder what the breaking point in sports is, and perhaps golf has reached that threshold. The cost of doing business is getting to be too much -- especially if you're not going to get Tiger Woods in your tournament -- which is becoming less and less likely for events he doesn't normally frequent. At least that is the message creeping out, little by little. Sure, the PGA Tour and commissioner Tim Finchem will find a way to stage a tournament during Fourth Dean Wilson won what became the final edition of July weekend, someplace, somewhere. They do of The International last August. not allow holes in their schedule, and there are other markets starving for the PGA Tour to come their way. But while sponsors used to be lined up, waiting, that is no longer the situation.
Maybe it is a case of only the strong surviving, but it is very telling that no title sponsor could be found to extend the life of a popular event near Denver played on a pristine golf course, one the players enjoyed, a tournament won by a who's who list of past champions. Another example came recently at the PGA Tour event near Tampa, Fla., now called the PODS Championship. Despite a prime date in March on an excellent golf course that has been universally praised by the players, the tournament was without a title sponsor for nearly a year after Chrysler dropped out. Had PODS, a portable storage unit company, not stepped up at the last minute, it is likely the tournament would have disbanded after this year. To get PODS to sign, however, the PGA Tour gave the company a discount. "I think like any business deal, there is an asking price and a negotiated price. We got a negotiated price," said Peter Warhurst, the CEO and founder of PODS. "I think we're paying a fair price. I think we're both very, very happy." No doubt. The tournament is saved. But the problem with such deals is there is no negotiating when it comes to the $5.3 million purse. The players still get paid the same. And the advertising units assured to be bought on Golf Channel and NBC as part of the network contract with the PGA Tour must still be paid. TV takes no discount. The local tournament organizing committee, a nonprofit organization, still has to pay its bills, but with less money coming in from the title sponsor. So it gets squeezed, making it more difficult to give money to charity. Sponsoring a regular PGA Tour event costs in the neighborhood of $7 million per year. That money covers a portion of the purse, a television advertising commitment, a fee to the PGA Tour and to the tournament. Spread that out over the six-year length of the network contracts, and you're talking about $42 million or more. It is a hefty price, especially given the modest television ratings. Those small numbers -- usually in the 2 million-to-3 million range for a weekend network telecast -- were always justified because they were reaching the "right" kind of people â€Ś i.e. those with disposable income. With golf, less meant more. But as the price has kept going up, those company executives began looking at the numbers more closely. And some of them have started to say that enough is enough -- especially if Woods doesn't play. "We're in a new era," said Jack Vickers, who founded The International. "We have one outstanding, unbelievable player in Tiger Woods. When he's playing, the ratings are great. When he's not, the ratings are not so hot." To make a distinction between tournaments with Tiger and those without is too simple. There are plenty of events that would no doubt benefit from his presence but do just fine without him. The recent FBR Open in Scottsdale, Ariz., and the AT&T Pebble Beach National Pro-Am come to mind.
The truth is, Woods plays in less than half the tournaments staged, so potential title sponsors need to be aware they might not get him. This week's Nissan Open would no doubt love to have Woods, but still has attracted one of the best fields of the year to date. And yet, that is not always enough. Finchem has done an admirable job of trying to do right by his players when it comes to purses, which have more than quadrupled since Woods came along a decade ago. Back then, Finchem felt it was imperative to get top golfers paid better than a backup second baseman. But all of that doesn't do much good if tournaments start disbanding or can't find sponsorship. And there are no easy answers. Cutting back purses would be a start, but you know that is not going to happen, even though it's hard to believe any tour player would be upset by walking away with a $700,000 winner's check as opposed to $1 million. Maybe there's too much golf on television. If you trim the number of hours, the commercial commitment would be less. Perhaps the PGA Tour and its tournaments need to be content with giving less money to charity. One thing is certain, the tour is trying to bring together the best players in the world more often with events such as the World Golf Championships and the FedEx Cup playoff tournaments, but has inadvertently put a big squeeze on the very tournaments that form its backbone, the rankand-file PGA Tour events. Not only do they have to compete with the bigger, more prominent events for secondary sponsors, but for the top players as well. The International happens to be a high-profile victim. http://espn.go.com/espn/print?id=2764924&type=story
Finally, a remarkably styled business watch New watch and accessory line from TAG Heuer creates new meaning for professional fashion BASEL, SWITZERLAND; Mar. 15/‐Skepticism abound, every years’ trip to the BaselWorld tradeshow, the watch industries’ most prestigious annual event, has become progressively less noteworthy as of late. Quality has always been paramount and prominent throughout but the differentiation between the world’s top brands has become far too under pronounced. However, this year’s event garnered a new product line from one such brand which may prove to be a game changer in opposition to many of its competitors. The brand is TAG Heuer, and its launch of a new “Executive Line” of watches and accessories provides just enough of a departure from its typical offering to provide a relevant solution to the problem of stagnancy in the market. The launch of TAG Heuer’s Executive Line of accessories will allude to something that goes deeper than a simple design aesthetic. Instead, it aims to capture an appeal of matching that design effectively and meaningfully to a purpose that exudes status to an entire fashion line. By incorporating a whole lineup of similarly themed attire, including sunglasses, neckties, wallets, and gloves, the Executive Line watches will not stand alone but instead act as a centerpiece to a suave and sophisticated style. Integration of this kind is completely uncharted territory in the watch market but if early impressions are any indication, this may prove to be a uniquely packaged set of goods which can truly promote a sense of confidence and professionalism to the wearer. Given that TAG Heuer already creates one of the most superior timepieces out there, it should come as no surprise that only the best and highest quality materials were used in crafting some of the most handsome and gorgeous watches released in recent years. Classic and cultured, the watches benefit from a sense of gained referent power when coupled with the rest of their accessory counterparts. Although making other accessories is not necessarily something new for TAG, the scale to which it is being done in this instance is something of a marvel. Never before has a line of products that matches and fit so well together been released with such tasteful affiliation. TAG Heuer has been vying for a larger piece of the market for years and has taken a proverbial back seat to its two largest Swiss competitors, Rolex and Omega. It seems as if, though, the Executive Line will hurtle them into their rightful place in the conversation once again among the pacesetters and in many ways surpass them. The Executive Line launches this week in the US at many high end retailers across the country in major cities and metropolitan areas. To learn more, visit http://executiveline.tagheuer.com. CONTACT Benjamin Wilkening Vice President, Public Relations TAG Heuer Executive Line Phone: (111) 111‐1111 benjamin.wilkening@TAGHeuerPR.com