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EXECUTIVE LINE


 


Marketing
483


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
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Executive
Summary
 


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



 
 
 
Demographic
 
 


Segmentation
Variable
 Typical
Breakdowns
 
 Region
 City
or
metropolitan
 statistical
area
(MSA)
size
 Density
 Climate



 Northeast;
West



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


Education



 Race
 
 
 
 
 Psychographic


Home
ownership
 Dwelling
 
 Personality


1,000,000+
 Urban,
suburban
 Northern;
Southern



 Gregarious;
extroverted;
 ambitious;
goal‐driven;
 adventurous;
creative
 5
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Life
style
 
 
 BUYING
SITUATION
 Benefits
Sought



 
 Product
features
 Needs



 
 
Usage
 


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
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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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Positioning
Strategy
 


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.

 
 
 
 
 
 
 
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Competitive
Analysis
 Competing
Product
 Category


Definition


Features


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


Manufacturers


Price


Differentiation


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
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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



 10
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Perceptual
Map
 


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.
 
 



 
 
 


11
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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


Purchase
 Quantity


Purchase
 Frequency


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


Retail
 Price


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
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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).


13
|
P a g e 
 



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.
 • • 


Awareness:

 
 Knowledge:

 



 


80%��� 50%



 


4,176,800
 2,610,500


14
|
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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.

 • •

Liking:


 
 Preference:

 



 


45%
 30%



 


2,349,450
 1,566,300


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.
 • •

Trial:

 
 Use:

 



 



 


1.7%
 
 1.5%
 


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%


15
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P a g e 
 



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.
 


17
|
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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.

 


19
|
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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.

 


20
|
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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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


21
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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
|
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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


23
|
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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
|
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• • •

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
|
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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+.

 


26
|
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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
|
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• •

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
|
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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.
 
 


29
|
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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.



30
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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
|
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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.
 
 


32
|
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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
|
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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.
 


34
|
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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


$13,330,000

 $16,443,434.41



$25,840,000,000



A/S
 Ratio
 0.1282%
 A/S
 Ratio


$31,875,344,718.62

 0.0516%


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
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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.
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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).


44
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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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


45
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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.
 


46
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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)
 



 


47
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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
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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


(Assumption
10)


(Assumption18)


(Assumption
11)


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


$7,000,000.00
 $7,000,000.00


Support
Media
Costs
 •

Branded
Entertainment
 $15,000,000.00
 51
|
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Total


$15,000,000.00


Point
of
Purchase
Costs
 •

No
additional
costs


(Assumption
17)


Promotional
Plan
Evaluation
Costs
 • • •

Television
 Print
 Total


$15,000.00
 $10,000.00
 $25,000.00


Total
IMC
Budget
 •


Total


$
37,405,344.06



Total
IMC
Budget
as
a
Percentage
of
Forecasted
Sales
 •

Budget
/
Sales


14.36%


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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|
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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






30,311



 

 

 

 

 

 

 



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


1,864


6.2


17.6


131



 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Occupation:
Management,
 Business
and
Financial
 Operations






21,717


1,234


5.7


11.7


121


Occupation:
Sales
and
Office
 Occupation






33,214


1,823


5.5


17.2


117


HHI150,000+
 HHI$75,000‐$149,999




 



23,605
 64,718


1,648
 3,573


7
 5.5


15.6
 33.8


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


43,013


1,922


4.5


18.2


95



 
 
 
 

 



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






16,612


999


6


9.4


128






45,233


2,345


5.2


22.2


111


48,276


2,027


4.2


19.2


90



 *
 

 



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


*


2,545


216


8.5


2


181




 



5,969
 21,576
 170,380


380
 1,179
 7,173


6.4
 5.5
 4.2


3.6
 11.1
 67.8


25,505


1,657


6.5


15.7


136
 
 117
 
 90
 
 
 139


30,001


1,756


5.9


16.6


125



 

 

 
 

 



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


 Lifestyle
Title



 Count



 Index


Like to Stand Out in a Crowd, Agr (A)

12,406,615

45.99

107

Prefer Specialty Stores because Have Best Brands, Agr (A)

11,833,370

43.86

106

Listen Less to Non-Internet Radio because of Internet, Agr (A)

6,642,456

24.62

106

Rely On Magazines to Keep Me Informed, Agr (A)

7,587,381

28.12

105

Interested in The Arts, Agr (A)

21,319,300

79.02

105

Prefer to Buy Products from Specialty Stores, Agr (A)

14,538,501

53.89

104

Prefer Specialty Store because Employee Knowledge, Agr (A)

18,985,182

70.37

104

Always Look for Brand Name, Agr (A)

18,646,838

69.12

104

Would Pay More for Environmentally Friendly Products, Agr (A)

18,526,234

68.67

104

Ban Products that Pollute, Agr (A)

19,010,752

70.47

103

Do Some Sport/Exercise Once a Week, Agr (A)

28,085,233

104.1

103

People Have a Duty to Recycle, Agr (A)

30,412,043

112.73

103

Rely on Radio to Keep Me Informed, Agr (A)

14,384,312

53.32

103

Have a Keen Sense of Adventure, Agr (A)

24,314,254

90.12

102

Consider Myself a Creative Person, Agr (A)

32,243,849

119.52

102

Typically Avoid Watching TV Commercials, Agr (A)

24,902,721

92.31

102

My Faith is Really Important to Me, Agr (A)

30,054,918

111.4

102

Always Look for Special Offers, Agr (A)

31,126,644

115.38

102

Like Spending Most Time Home with Family, Agr (A)

33,781,349

125.22

102

How I Spend Time Is More Important than Money, Agr (A)

30,896,723

114.52

102

Rely on Newspaper to Keep Me Informed, Agr (A)

18,374,929

68.11

101

Only Go Shopping to Buy Something I Really Need, Agr (A)

34,225,902

126.86

101

Rely on TV To Keep Me Informed, Agr (A)

26,123,347

96.83

101

Advertising to Kids Is Wrong, Agr (A)

22,614,409

83.82

101

Consider Myself a Spiritual Person, Agr (A)

29,319,095

108.68

101

Try to Buy Goods Produced by Own Country, Agr (A)

24,887,976

92.25

99

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

Geo
 Code

Market
Name

Base
 Count

Base
Count
 %Comp 


Estimate d
Users 


Estimated
 Users
 %Comp 


528

Miami-Ft. Lauderdale, FL

1,558,543

1.34

449,999

1.67

28.87

124

501

New York, NY

7,608,074

6.55

2,192,561

8.13

28.82

124

803

Los Angeles, CA

5,748,557

4.95

1,637,012

6.07

28.48

123

839

Las Vegas, NV

723,839

0.62

200,813

0.74

27.74

119

807

San Francisco et al, CA

2,568,938

2.21

708,330

2.63

27.57

119

602

Chicago, IL

3,533,645

3.04

935,985

3.47

26.49

114

825

San Diego, CA

1,091,399

0.94

284,811

1.06

26.1

112

765

El Paso et al, TXNM

313,750

0.27

80,595

0.3

25.69

111

Quintile 1

23,146,745

19.93

6,490,106

24.06

28.04

121

511

Washington et al, DC-MD

2,358,064

2.03

604,836

2.24

25.65

110

505

Detroit, MI

1,897,477

1.63

482,251

1.79

25.42

109


 
 



Appendix
4

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.

o

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.

o

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?

o

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?


 
 
 http://www.ehow.com/how_4669997_use‐pricing‐as‐marketing‐strategy.html



Appendix
5



 
 
 
 
 
 
 
 
 
 



Appendix
6
 1. 07-25-2009 04:26 AM#1 Hamilton

TKF Member

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


Appendix
7
 



 Watch
Industry
Revenue
=
0.19
x
$44.0bn
=
$8,360,000,000
 



Appendix
8



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

Appendix 9


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&#x20AC;&#x2122;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

Cable
Television

2012‐2013

Media
Scheduling

*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
11



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.


 http://business.highbeam.com/137332/article‐1G1‐93800935/action‐tracking‐ad‐spending‐top‐12‐ advertising‐categories




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/


Appendix
17


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.


 
 
 
 
 
 
 
 
 
 



Appendix
18
 
 

 



Bought
Dress
Watch
in
Last
12
Months
 Total
 Proj
'000
 '000


Pct
 Across


Pct
 Down


Index


Total


225887


10586


4.7


100


100


Cable:
CNBC
Any
watching


42855


2517


5.9


23.8


125


Cable:
CNN
(Cable
News
Network)
Any
watching


77218


4217


5.5


39.8


117


Golf
Magazine


5603


315


5.6


3


120


GQ
(Gentlemen's
Quarterly)


6773


458


6.8


4.3


144


Newsweek


16601


881


5.3


8.3


113


Travel
+
Leisure


4813


368


7.6


3.5


163


nytimes.com


9535


500


5.2


4.7


112


wsj.com


4366


307


7


2.9


150


Expedia.com


21014


1382


6.6


13.1


140


Pct
 Across


Pct
 Down


Index




 



Respondent
Income
$75,000‐$99,999
 Total
 Proj
'000
 '000


Total


225887


11335


5


100


100


Cable:
CNN
(Cable
News
Network)


77218


4732


6.1


41.7


122


Cable:
CNBC


42855


2644


6.2


23.3


123


Forbes


6032


513


8.5


4.5


170


Golf
Magazine


5603


445


7.9


3.9


158


GQ
(Gentlemen's
Quarterly)


6773


468


6.9


4.1


138


Newsweek


16601


1439


8.7


12.7


173


Travel
+
Leisure


4813


351


7.3


3.1


145


wsj.com


4366


610


14


5.4


278


nytimes.com


9535


960


10.1


8.5


201


Expedia.com


21014


2387


11.4


21.1


226


Pct
 Across


Pct
 Down


Index




 



Respondent
Income
$100,000‐$149,999
 Total
 Proj
'000
 '000


Total


225887


7627


3.4


100


100


Cable:
CNN
(Cable
News
Network)


77218


3676


4.8


48.2


141


Cable:
CNBC


42855


2319


5.4


30.4


160


Forbes


6032


461


7.6


6


226


Golf
Magazine


5603


492


8.8


6.5


260


GQ
(Gentlemen's
Quarterly)


6773


352


5.2


4.6


154


Newsweek


16601


820


4.9


10.8


146


Travel
+
Leisure


4813


410


8.5


5.4


252


wsj.com


4366


678


15.5


8.9


460


nytimes.com


9535


956


10


12.5


297


Expedia.com


21014


1554


7.4


20.4


219



Total


Pct
 Across


Pct
 Down


Index


225887


2075


0.9


100


100


Cable:
CNN
(Cable
News
Network)


77218


1123


1.5


54.1


158


Cable:
CNBC


42855


652


1.5


31.4


166


Forbes


6032


139


2.3


6.7


251


Golf
Magazine


5603


265


4.7


12.8


514


GQ
(Gentlemen's
Quarterly)


6773


90


1.3


4.3


144


Newsweek


16601


298


1.8


14.4


196


Travel
+
Leisure


4813


127


2.6


6.1


287


wsj.com


4366


197


4.5


9.5


492


nytimes.com


9535


325


3.4


15.7


372


Expedia.com


21014


431


2


20.8


223


Pct
 Across


Pct
 Down


Index




 

 Total


Respondent
Income
$200,000‐$249,999
 Total
 Proj
'000
 '000
 225887


829


0.4


100


100


Cable:
CNN
(Cable
News
Network)


77218


391


0.5


47.1


138


Cable:
CNBC


42855


255


0.6


30.8


162


Forbes


6032


139


2.3


16.7


626


Golf
Magazine


5603


42


0.8


5.1


206


GQ
(Gentlemen's
Quarterly)


6773


52


0.8


6.3


209


Newsweek


16601


83


0.5


10.1


137


Travel
+
Leisure


4813


44


0.9


5.3


248


wsj.com


4366


62


1.4


7.5


389


nytimes.com


9535


86


0.9


10.4


246


Expedia.com


21014


138


0.7


16.7


179


Pct
 Across


Pct
 Down


Index




 

 Total


Respondent
Income
$150,000‐$199,999
 Total
 Proj
'000
 '000


Respondent
Income
$200,000‐$249,999
 Total
 Proj
'000
 '000
 225887


1207


0.5


100


100


Cable:
CNN
(Cable
News
Network)


77218


642


0.8


53.2


156


Cable:
CNBC


42855


480


1.1


39.8


210


Forbes


6032


172


2.9


14.3


535


Golf
Magazine


5603


153


2.7


12.6


510


GQ
(Gentlemen's
Quarterly)


6773


66


1


5.5


184


Newsweek


16601


174


1.1


14.5


197


Travel
+
Leisure


4813


97


2


8.1


378


wsj.com


4366


153


3.5


12.6


654


nytimes.com


9535


154


1.6


12.8


303


Expedia.com


21014


258


1.2


21.4


230



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

Pct Down

Index

100 25.3 22.4 18.4 15.2 18.7

100 126 112 92 76 94


 
 
 
 
 
 
 
 
 
 
 
 
 
 



Appendix
20



 
 
 
 
 



Appendix
21


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


Appendix
22



 http://www.scribd.com/doc/57180308/Rolex‐Branding




 
 
 
 
 
 



Appendix
23
 




 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






Print
Total







$



8,354,820.00



Internet
 Expedia.com
 nytimes.com
 wsj.com








 730
 
$



2,974,326.60

 730
 
$



1,073,888.00

 730
 
$







660,500.00



Internet
Total







$



4,708,714.60



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



$

15,373,220.06




 
 
 
 
 
 
 
 



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.


 http://www.gallup‐robinson.com/copytesting.html




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


 http://www.gallup‐robinson.com/inteletest.html

 
 



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


 http://www.gallup‐robinson.com/mirs.html

 



Branded Entertainment: Web Advertising’s Future Format

Appendix
28


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 info@mrpwebmedia.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 



Appendix
30
 Press
Release
Distribution
Pricing
Information
 Enhance your product/service visibility, create branding and increase traffic to your Web site with a press release of newsworthy information. Publicity is the most cost-effective marketing tool there is and it’s the only part of a marketing strategy that builds credibility. With the Internet and the World Wide Web being a feeding frenzy for the press, PRW makes press release distribution easy. The bottom line is we give you more bang for the buck. Take a look at our distribution list. Press
Release
Services
Pricing/Options
 Description


Price


Press
Release
Writing
&
Distribution
–
Professional
press
release
written
by
a
PRW
 staff
writer.
Includes
distribution.


$449.00

Basic
Distribution
Package
–
The
most
complete
single
distribution
option
(over
 35,000
journalists
and
media
outlets).


$249.00

For more information on the above options click a link below or continue to the order form. ….
 “I
want
to
thank
you
for
providing
such
a
great
service.
Shortly
after
our
release
went
out
we
were
 Contacted
by
CNN
and
many
other
“heavy
hitters”.
Without
your
service,
we
would
be
struggling
to
find
 media
lists
and
having
to
work
overtime
to
get
our
releases
out
by
regular
mail.
Your
company
also
did
a
 superb
job
writing
our
press
release.
Press‐Release‐Writing.com
makes
our
lives
easier!
I
hold
your
 company
in
high
regard
and
would
recommend
your
services
to
anyone”


David Gantner President ITZ Toys, Inc http://www.press‐release‐writing.com/press‐release‐distribution‐pricing‐information/

 
 
 



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&#x20AC;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

 
 
 
 
 
 
 
 
 
 
 



Appendix
32



Appendix
33


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



Appendix
34



Tag Heuer Executive Line IMC Plan