Tag Heuer Executive Line IMC Plan by Brenna Teichen

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  1 | P a g e

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 | P a g e

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 | P a g e

marker of status, they are also seeking a line of products which will be convenient to choose  from, they do not want to risk buying an accessory that will send the wrong signal (Appendix 2).    Target Market Size: 5,221,000 (Appendix 1: Based on MediaMark: Adults that purchased dress  watches within last 12 months and have a household income of $75,000 or greater)

Trade Target Market Definition and Size  Direct to Retailer:   Distribution will take place directly to the retailers within the major cities of the United States.  Due to the fact that this is a new product line for business professionals, this will be the first  stage of introduction. Major cities include but are not limited to: New York City, Los Angeles,  San Francisco, Chicago, San Diego, Miami, and Washington D.C. (Appendix 3). The retailers that  will be targeted will be upper‐end department stores, such as Nordstrom and Neiman Marcus.  We will limit distribution to the top two highest traffic stores within each of these major cities.

Direct to Consumer:  There will be direct to consumer locations in the major airports in order to be accessible for  business travellers.  There will be offerings on the Tag Heuer website as well, for those who  prefer to shop online or do not have access to the major cities listed above.

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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.                 8 | P a g e

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 | P a g e

Other luxury neckties

Neckties  made of top  quality  materials  and variation  in style  based on  occasion

‐Silk  ‐High thread  count  ‐Aligns with  latest industry  styles

‐Calvin Klein  ‐Collezioni  Armani  ‐Kenneth Cole  ‐Hugo Boss  ‐Burberry

Lower end:  $40    Upper  end:  $200

Consistent styles and  patterns that are  impactful in a way  which illustrates a high  level of  professionalism.  Colors will not be too  bright or subtle. Bold  but not flashy.  Patterns will not be  too busy, they will be  simple but stylish.

Wallets  Low end:  $20  Upper  end:  $800    Handbags  Low end:  $150  Upper  end:  >$5,000

Handbags will be sleek  and unassuming while  at the same time being  instantly recognizable  with their prestige.  Bright colors and  gaudy hardware will  be avoided,  extraneous pockets,  etc. will also be  absent. They will be  made from higher  quality leathers such  as buffalo and  lambskin.

Low end:  $30    Upper  end:  $500

Differentiation among  the gloves will be less  pronounced than the  other accessories but  will rely on the added  brand value and be a  complementary piece  to the rest of the  Executive Line. The  gloves will be simple,  without  embellishment.

Wallets/Handbags  Other luxury  wallets/handbags

Wallets and  purses made  of top quality  material,  easily  recognizable  as a symbol  of status

‐Made from  top quality  leather  ‐Aligns with  latest industry  styles  ‐Storage for  credit cards  and cash  (wallets)

‐Gucci  ‐Channel  ‐Calvin Klein  ‐Dior  ‐Coach  ‐Dolce &  Gabanna  ‐Versace  ‐Emporio  Armani  ‐Prada  ‐Cole Haan  ‐Kenneth Cole  ‐Burberry

Gloves  Other luxury gloves

Gloves made  of top quality  leather or  cashmere,

‐Made from  top quality,  supple  material

‐Calvin Klein  ‐Dior  ‐Prada  ‐Kenneth Cole  ‐Hugo Boss  ‐Coach

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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.

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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 | P a g e

Marketing Mix  Product Strategy  The Tag Heuer Executive Line is a fully integrated line of accessories for the business  professional. The accessories will provide the primary benefit of serving as a symbol of status.  Business professionals will know that they can choose any accessory from the Executive Line  and be easily recognized by their peers as a person of status and style.  The products will signal status through their premium quality materials and workmanship. The  Tag Heuer logo will be easily recognizable on all products, but will only be displayed in black,  grey or white so not to appear overly flashy.  All products will be styled in dark, neutral colors  and embellishment should be minimal in order to match the businessperson’s professional  wardrobe.  The line will include the following accessories:  • • • • • •

Watches  Sunglasses  Neckties  Wallets  Handbags  Gloves

Pricing Strategy  All products will be priced using a premium pricing strategy in order to signal that they are of  the upmost quality and designed for those with luxurious tastes. Please see table on previous  page for breakdown of pricing by item.

Distribution Strategy  We will launch this new product line in approximately 21 locations nationwide, within major  airports and upper‐end department stores in the following cities: New York City, Los Angeles,  San Francisco, Chicago, San Diego, Miami, and Washington D.C. (Appendix 3).

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Advertising   Communication Objectives   1. Increase brand awareness to 80% (Assumption 5) within our target market in order to  be in the same evoked and choice sets as competitors such as Rolex and Louis Vuitton,  in the United States, beginning with New York City, Los Angeles, San Francisco, Chicago,  San Diego, Miami and Washington D.C. (Appendix 3)  2. Influence consumer perception that Tag Heuer is the luxury brand of choice for business  professionals.  3. Promote Tag Heuer Executive line using image ads in order to build association between  the products and a remarkable professional presence.

Communication Effects  Pyramid  Target Market Size:  5,221,000                 (Appendix 1)  Our advertising will influence the  awareness of our product line, as well  as consumer knowledge about luxury  accessories. Due to the fact that Tag  Heuer is a luxury brand, we will have to  be careful as to how much we  advertise our new product line for  business professionals, and utilize  media that will effectively reach our  target market without diminishing our brand image.  • •

Awareness:     Knowledge:

80%  50%

4,176,800  2,610,500

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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%

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Copy Platform  Target Market  Demographic Dimensions (Appendix 1)  • Age: 25‐54  • Sex: Male or Female  • Income: Greater than $75,000  • Occupation  o  Professional and technical  o Management  o Business and financial operations  o Sales and administrative  • Education: At least some college  • Race: All inclusive  • Dwelling: Own home, apartment or condominium    Geographic Dimensions (Appendix 1 & 3)  • Region: Northeastern and Western United States  • Population:  >1,000,000  • Density: Urban; Suburban  • Target Cities:  o San Francisco, CA  o New York, NY  o Los Angeles, CA  o Miami, FL  o Washington, DC  o Chicago, IL    Psychographic Dimensions (Appendix 2)  • Personality  o Gregarious  o Extroverted  o Ambitious  o Goal‐driven  o Adventurous  • Lifestyle  o Image‐conscious  16 | P a g e

Prefers designer brands  Prefers to buy from specialty stores  Strives to be the center of attention  Interested in the arts  Travels  Active  On‐the‐go    Benefits Sought  • High quality materials and workmanship  • Status symbol  • Aesthetically pleasing  • Uniform product line  o o o o o o o

Objective  The goal is to improve brand awareness of Tag Heuer while simultaneously building a unique  association between the luxury accessories and a high degree of professionalism. Additionally,  we would like to increase consumer knowledge about the accessibility of a luxury accessory line  and build a preference for the Tag Heuer brand. Tag Heuer products will be preferred over  those of their competitors due to the high quality materials, moderate price range, convenience  of choice, and the social status provided.  Promote Brand Recall:   The first message objective is to increase awareness of the Tag Heuer brand in the United  States among business professionals, who are not currently offered a moderately priced and  uniform luxury accessory line.    Linking a Key Attribute or Benefit to the Brand Name:  The second message objective is to link the Tag Heuer brand with a luxurious yet professional  image to appeal to the target market, which is interested in having a convenient business  accessory line that enhances their image.

Key Benefits  The key benefits are that the Tag Heuer luxury accessory line enhances the social status of  business professionals, while having a moderately priced and convenient selection of products  that specifically caters to them.

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Key Product Attributes  •

• • • •

High quality materials:   o Premium metals  o Precious gems  o High quality fabric  Status symbol  Uniform product line; accessories will be similarly styled and easily coordinated  Moderately priced (relative to competitors)  Timeless design

Campaign Theme  • •

• • •

“You’ve earned it.”  Message conveys that this is a luxury product line that isn’t priced so high to where it is  only attainable by celebrities; rather it is a reasonable purchase for business  professionals.   Speaks to those who have reached an honorable point in their career and want to be  recognized for their achievements.  Message conveys their social status and professional demeanor in order to be taken  seriously by their peers.  Evokes feeling of empowerment for the wearer of luxury accessories.

Analysis  Target Audience  The target customer for the Tag Heuer Executive Line is successful and career oriented. This  group is currently underserved in the market for luxury accessories which are commonly  targeted toward those who enjoy more leisurely lifestyles. The user of Tag’s Executive  accessories has worked hard to get to where they are in life and desires recognition of this fact,  they do not want to be associated with, let alone wear the same accessories as celebrities who  are often perceived as reckless.   Objective  Because the Tag Heuer brand is not currently highly recognized in the United States, nor have  their products previously been targeted toward business professionals, the first goal of our  promotional campaign will be to promote brand recall among this segment. Because the core  benefit sought by our target audience is recognition as a successful business professional the  secondary goal of the promotional campaign will seek to link Tag Heuer’s Executive Line to a  luxurious, professional image.   18 | P a g e

Benefits/Attributes  The core benefit of the line is that it offers a status symbol by specifically catering to business  professionals. By owning a Tag Heuer accessory the wearer is communicating their position as a  successful individual within their industry; this is accomplished through the use of high quality  materials and timeless design.   Campaign Theme  These goals will be achieved through a fully integrated campaign centering around the tagline  “You’ve earned it” which will persuade customers that this isn’t a line for celebrities who were  born into money but instead for those who have worked hard for what they have. Those  celebrities may be able to pay over $20,000 for a watch but our advertisements will  communicate that our products are attainable by sensible, white‐collar individuals.

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Message Strategy  Our primary message objective is to promote brand recall because the Tag Heuer brand is not  as familiar in the United States as in Europe. This will be achieved through the repetition of  coherent image advertisements, so that our target audience will immediately recognize the  prestigious appeal of Tag Heuer. From these image advertisements, business professionals will  aspire to own one of the various Tag Heuer luxury accessories available to them, in order to  further convey their achieved status to their peers and that “they’ve earned it.”  Integration – To ensure the effectiveness of the campaign, we will integrate the logo, tagline,  color schemes, URL and other forms of brand identification into every print, internet, and  television advertisement as well as in other promotional tools, such as event sponsorships.  •

•

Logo – the logo will be in grayscale with “Executive Line” in caps underneath in  Copperplate Gothic Light font. In addition, the logo will be located in the bottom, right‐ hand corner of all print advertisements, centered for all television advertisements with a  black background, and to the far right of all internet advertisements (banner ads).  Font – the fonts chosen across all forms of advertising will be Copperplate Gothic Light  for “Executive Line” in the logo and for the URL, and Vani font will be used for the  tagline. The size of the font will vary from Tagline to URL, the former being larger to  improve the chances of Tag Heuer being recalled by our target audience.   Tagline – the tagline “You’ve earned it” will be in Vani font centered at the bottom of all  print and television advertisements in a bigger font size than the URL. For internet  advertisements, specifically banner ads, the tagline will be located in Vani font to the  left of the Tag Heuer logo.  URL – the URL will be in Copperplate Gothic Light font and located at the bottom, left‐ hand corner of all print advertisements and will be centered at the very bottom of all  television advertisements. The URL will be in a smaller font size than the tagline so that  it will not reduce the ability of our target audience to recall brand Tag Heuer. The URL  will be excluded from internet advertisements (banner ads) because users can be  connected directly to the Tag Heuer website by clicking on the banner ad.  Color Schemes – the colors that will be utilized throughout all forms of advertising are  white, gray, and black in order to reflect the professional and luxurious appeal of the  Tag Heuer accessory line.  Image Types – the types of images that will be used in all Tag Heuer advertisements will  be those associated with a luxurious lifestyle.

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Theme – the theme of all of the print, internet, and television advertisements will be  the improved social status of owning and wearing a Tag Heuer accessory, which will be  communicated through the association with a luxurious lifestyle. This will be  accomplished by focusing the lighting on the accessory alone and casting shadows  across other elements within the advertisement. The television advertisements will have  no dialogue, but will instead play music pertaining to the upper class, such as the use of  string instruments or a piano.

Print Ad Layout (Appendix 8)  TV Ad Storyboard (Appendix 9)    Radio Advertising: Tag Heuer will not engage in radio advertising primarily because it wants a  “scarce” appeal to maintain its luxurious brand image, and therefore wants to limit its use of  mass media. As far as the use of television spots, Tag Heuer limits its advertising to special  events which the target audience will likely be exposed to.  Branded Entertainment: YouTube episodes linked to Tag Heuer website

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Media Plan  Timeline: The media plan covers a twelve month period from March 1, 2012 to February 28,  2013.

Media Objectives  1. Increase brand awareness and preference for Tag Heuer to men and women between  the ages of 25 and 54 with an annual income greater than $75,000 who are in need of  revamping their professional appearance and overall demeanor.   2. Geographic scope of the media plan is national, but predominately focused on the  following urban areas: New York City, Los Angeles, San Francisco, Chicago, San Diego,  Miami, and Washington D.C. (Appendix 3)  3. During the 12 month period spanned by this marketing plan the gross impressions  across TV, print and internet will be 17,956,820. (Appendix 23)

Media Strategies  •

•

Reach/Frequency   o Reach is 90% of the target market, 4 times over an average 4 week period  o This high reach will aid in achieving the objective of raising brand awareness to 80%  Scheduling Method: Pulsing  o A pulsing scheduling method is going to be utilized with a combination of continuous  scheduling for print and internet advertising as well as a flighting scheduling method  for advertising on cable TV.    The print advertisements will be continuously placed on a monthly basis in  selected magazines that belong to our target audience’s media habits.    When it comes to internet advertising, a Tag Heuer webpage will be created  that will have the new luxury accessory line available for sale. In addition,  there will be advertisements on wsj.com, nbc.com and abc.com since they  belong to our target audience’s media habits.    Heavy advertising will be used on cable television during the introductory  period of three months in order to educate target audience of new luxury  accessories. No advertising will be conducted after this initial season, but will  continue with heavy advertisements for special events such as golf and  tennis tournaments.  o Justification:  A pulsing scheduling method would be most appropriate for our  marketing campaign because it takes advantage of the benefits of both the flighting  and continuous scheduling methods. By having a continuous scheduling method for  22 | P a g e

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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

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Frequency:   o Daytime   Twice weekly during the following shows throughout 3 month launch period  (shows selected based on Assumption 7)   • The Situation Room with Wolf Blitzer M‐F 5:00‐7:00 PM   • John King, USA M‐F 7:00‐8:00 PM    2 times weekly * 4 weeks per month * 3 months per year = 24    o Primetime   Twice weekly during the following shows throughout 3 month launch period  (shows selected based on Assumption 7)  • In the Arena M‐F 8:00‐9:00 PM  • Piers Morgan M‐F 9:00 ‐10:00 PM  • Anderson Cooper 360 M‐F 10:00 PM‐11:00 PM     2 times weekly * 4 weeks per month * 3 months per year  = 24  o Total of 48 commercials  Cost per commercial  o Daytime   Prior to 8:00 PM   $6,500 (Appendix 10)   o Primetime   8:00 – 11:00 PM   $30,000 (Appendix 10)  CPM‐TM = (Ad cost / Targeted audience) * 1,000  o Daytime   Ad cost = $6,500 (Appendix 10)   Targeted audience = 0.4932 * # exposed who bought dress watches in past  12 months (Assumption 9, Appendix 1)  • Number exposed who bought dress watches = 4,217,000 (Appendix  17)   CPM‐TM = [$6,500 / (0.4932 * 4,217,000)] * 1,000 = $3.13  o Primetime   Ad cost = $30,000 (Appendix 10)   Targeted audience = 0.4932 * # exposed who bought dress watches in past  12 months (Assumption 9, Appendix 1)  • Number exposed who bought dress watches = 4,217,000 (Appendix  17)   CPM‐TM = [$30,000 / (0.4932 * 4,217,000)] * 1,000 = $14.24  24 | P a g e

• • •

Total Cost = (Daytime frequency * Daytime cost) + (Primetime frequency * Primetime cost)  o (24 * $6,500) + (24 * $30,000) = $876,000  Index = 117 (Appendix 17)   Justification  o According to MediaMark (Appendix 17), adults who have purchased a dress watch in  the past 12 months are 17% more likely to watch CNN than average. This data was  cross‐referenced with MediaMark Media reports (Appendix 18) and it was found  that CNN also has a high index for all income segments greater than or equal to  $75,000. Indexes range from 122 to 158, indicating that adults with an annual  income of $75,000+ are 22% to 58% more likely to watch CNN than average.CNN  was primarily chosen for its high reach, we will be able to reach a large portion of  our target market for a relatively low CPM

CNBC    • Frequency:  o Twice weekly during three month launch period    Monday through Friday between 5:00 and 8:00 PM (Assumption 7)  • Fast Money 5:00 PM  • Mad Money 6:00 PM  • The Kudlow Report 7:00 PM  • Varying featured programming 8:00 PM  o 2 times weekly * 4 weeks per month * 3 months per year = 24  • Reach = Number exposed in target market / Target market size  o Number exposed in target market = 0.4932 * # exposed who bought dress watches  in past 12 months (Assumption 9, Appendix 1)   Number exposed who bought dress watches  =  2,517,000 (appendix 18)  o Target market size = 5,221,000  (Appendix 1)  o Reach = (2,517,000 * 0.4932) / 5,221,000 = 23.78%  o Target market exposed  = 23.78% * 5,221,000 = 1,241,384  • CPM   o $7.00 (Appendix 12)  • Total Cost  = Cost to run each commercial * Frequency  o Cost to run each commercial = (CPM * Average viewership) / 1,000   Average viewership = 215,000  (Appendix 13)  o [($7.00 * 215,000)/1,000] * 24 = $36,120  • Index = 125 (Appendix 17)  • Justification  o According to MediaMark (Appendix 17), adults who have purchased a dress watch in  the past 12 months are 25% more likely to watch CNBC than average. This data was  25 | P a g e

cross‐referenced with MediaMark Media reports (Appendix 18) and it was found  that CNBC has a high index for all income segments greater or equal to $75,000.  Indexes range from 123 to 210, illustrating that adults with an annual income of  $75,000+ are 23% to 110% more likely than average to watch CNBC.    Integration Assessment: We will integrate cable television advertisements by utilizing the  consistent theme of an improved social status of the individual who wears a Tag Heuer  accessory. By focusing the lighting on the Tag Heuer accessory and casting shadows across  other elements within the advertisement, the theme will be emphasized by associating the  individual with a luxurious lifestyle. The television advertisements will have no dialogue, but  will instead play music pertaining to the upper class, such as the use of string instruments or  a piano.  At the end of these television advertisements, the logo will be prominently  displayed in the center with a black background, the tagline “You’ve earned it” in a gray  Vani font located below the logo, and a smaller gray URL in Copperplate Gothic Light font  located at the very bottom. All elements in the last frame will be centered, thereby  immediately drawing the attention of our target audience and enhancing brand recall.

Print   • • • • • •

Print advertisements will be used to gain high frequency and accomplish national reach.  Supports creative strategy of defining the brand image by utilizing image advertisements  with a high production value.  Print media caters to specific lifestyles and advertisements can reach business professionals  effectively.  Target market’s media habits include magazines such as Forbes, Golf Magazine, GQ,  Newsweek, Travel + Leisure, and Wall Street Journal.   Target market size = 5,221,000 (Appendix 1)  Due to Assumption 9, 49.32% will also be applied to the projected number (number  exposed in TM) in Appendix 18 to calculate reach, instead of the percent down column.  Percent down takes into consideration all adults who have purchased a dress watch in the  last 12 months, not those with an annual income of $75,000+.

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Forbes (monthly)  • Reach = Number exposed in target market  / Target market size  o Number exposed in target market = 0.4932* # exposed who bought dress watches in  the last 12 months (Assumption 9)   Number exposed who bought dress watches = 286,000 (Appendix 17)  o Target Market Size = 5,221,000 (Appendix 1)  o Reach = (286,000*.4932) /5,221,000 = 2.7%  o Target Market Reached = 2.7%* 5,221,000 = 141,056   • Frequency =1 per month (full page/full color) = 12/year  • CPM‐TM = (Ad Cost/targeted audience)*1,000  o Ad Cost = $100,960 (Appendix 16, page 157)  o Number exposed in target market = 286,000 (Appendix 17)  o Targeted audience = Number exposed in target market*0.4932 = 141,056  o CPM‐TM = (100,960 / 141,056)*1,000 = $715.75  • Total Cost = Ad Cost*Frequency   o Ad Cost = $100,960 (Appendix 15, page 157)  o Frequency = 12/year  o Total Cost = $100,960*12 = $1,211,520  • Index =101 (Appendix 17)  • Justification  o  According to MediaMark (Appendix 17), adults who have purchased a dress watch  in the past 12 months are 1% more likely to read Forbes Magazine than average.  Although this is a small percentage, we cross‐referenced this data with MediaMark  Media (Appendix 18) and discovered that Forbes Magazine has a high index for all  income segments greater or equal to $75,000. Indexes range from 170 to 626, which  signifies that adults with an annual income of $75,000+ are 70% to 526% more likely  to read Forbes Magazine than average.  Golf Magazine (monthly):  • Reach = (Number exposed in target market  / Target market size  o Number exposed in target market = 0.4932 * # exposed who bought dress watches  in the past 12 months (Assumption 9)   Number exposed who bought dress watches = 315,000 (Appendix 17)  o Target Market Size = 5,221,000 (Appendix 1)  o Reach = (315,000*0.4932) / 5,221,000 = 2.98%  o Target Market Reached = 2.98% * 5,221,000 = 155,358  • Frequency =1 per month (full page/full color)= 12/year  • CPM‐TM = (Ad Cost/targeted audience)*1,000  o Ad Cost = $159,000 (Appendix 15, page 157)  27 | P a g e

•

• •

o Number exposed in target market = 315,000 (Appendix 17)  o Targeted audience = Number exposed in target market*0.4932 = 155,358  o CPM‐TM = (159,000 / 155,358)*1,000 =$1,023.44  Total Cost  = Ad Cost*Frequency  o Ad Cost = $159,000 (Appendix 15, page 157)  o Frequency = 12/year  o Total Cost = $159,000*12 = $1,908,000  Index = 120 (Appendix 17)  Justification  o According to Mediamark (Appendix 17), adults who have purchased a dress watch in  the past 12 months are 20% more likely to read Golf Magazine than average. We  cross‐referenced this data with MediaMark Media (Appendix 18) and discovered  that Golf Magazine has a high index for all income segments greater or equal to  $75,000. Indexes range from 158 to 514, which signifies that adults with an annual  income of $75,000+ are 58% to 414% more likely to read Golf Magazine than  average.

GQ (monthly)  • Reach = (Number exposed in target market  / Target market size  o Number exposed in target market = 0.4932 * # exposed who bought dress watches  in the past 12 months (Assumption 9)   Number exposed who bought dress watches = 458,000 (Appendix 17)  o Target Market Size = 5,221,000 (Appendix 1)  o Reach = (458,000*.4932) / 5,221,000 = 4.3%  o Target Market Reached = 4.3% * 5,221,000 = 225,885  • Frequency =1 per month (full page/full color)= 12/year  • CPM‐TM = (Ad Cost/targeted audience)*1,000  o Ad Cost = $103,425 (Appendix 15, page 157)  o Number exposed in target market = 458,000 (Appendix 17)  o Targeted audience = Number exposed in target market*0.4932 = 225,885  o CPM‐TM = ($103,425 / 225,885)*1,000 =$457.87  • Total Cost = Ad Cost*Frequency  o Ad Cost = $103,425 (Appendix 15, page 157)  o Frequency = 12/year  o Total Cost = $103,425*12 = $1,241,100  • Index = 144 (Appendix 17)  • Justification  o According to Mediamark (Appendix 17), adults who have purchased a dress watch in  the past 12 months are 44% more likely to read GQ than average. We cross‐ 28 | P a g e

referenced this data with MediaMark Media (Appendix 18) and discovered that GQ  has a high index for all income segments greater or equal to $75,000. Indexes range  from 138 to 184, which signifies that adults with an annual income of $75,000+ are  38% to 84% more likely to read GQ than average.  Newsweek (monthly)  • Reach  = Number exposed in target market  / Target market size  o Number exposed in target market = 0.4932 * #exposed who bought dress watches in  the past 12 months (Assumption 9)   Number exposed who bought dress watches = 881,000 (Appendix 17)  o Target market size = 5,221,000 (Appendix 1)  o Reach = (881,000*.4932) / 5,221,000 = 8.32%  o Target Market Reached = 8.32% *5,221,000 =434,509  • Frequency =1 per month (full page/full color) = 12/year  • CPM‐TM = (Ad Cost/targeted audience)*1,000  o Ad Cost = $231,525 (Appendix 15, page 158)  o Number exposed in target market = 881,000 (Appendix 17)  o Targeted audience = Number exposed in target market*0.4932 = 434,509  o CMP‐TM=($231,525 / 434,509)*1,000 =$532.84  • Total cost = Ad Cost*Frequency  o Ad Cost = $231,525 (Appendix 15, page 158)  o Frequency = 12/year  o Total Cost = $231,525*12 = $2,778,300  • Index = 113 (Appendix 17)  • Justification  o According to Mediamark (Appendix 17), adults who have purchased a dress watch in  the past 12 months are 13% more likely to read Newsweek than average. We cross‐ referenced this data with MediaMark Media (Appendix 18) and discovered that  Newsweek has a high index for all income segments greater or equal to $75,000.  Indexes range from 137 to 197, which signifies that adults with an annual income of  $75,000+ are 37% to 97% more likely to read Newsweek than average.

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Travel + Leisure (monthly)  • Reach  = Number exposed in target market  / Target market size  o Number exposed in target market = 0.4932 *# exposed who bought dress watches in  the past 12 months (Assumption 9)   Number exposed who bought dress watches = 368,000 (Appendix 17)  o Target market size = 5,221,000 (Appendix 1)  o Reach = (368,000*0.4932) / 5,221,000 = 3.48%  o Target market reached = 3.48% * 5,221,000 = 181,497  • Frequency =1 per month (full page/full color)= 12/year  • CPM‐TM = (Ad Cost/targeted audience)*1,000  o Ad Cost = $101,325 (Appendix 15, page 159)  o Number exposed in target market = 368,000 (Appendix 17)  o Targeted audience = Number exposed in target market*0.4932 = 181,497  o CPM‐TM = ($101,325/181,497)*1,000 =$558.27  • Total cost = Ad Cost*Frequency  o Ad Cost = $101,325 (Appendix 15, page 159)  o Frequency = 12/year  o Total cost = $101,325*12 = $1,215,900  • Index = 163 (Appendix 17)  • Justification  o According to Mediamark (Appendix 17), adults who have purchased a dress watch in  the past 12 months are 63% more likely than average to read Travel + Leisure. We  cross‐referenced this data with MediaMark Media (Appendix 18) and discovered  that Travel + Leisure has a high index for all income segments greater or equal to  $75,000. Indexes range from 145 to 378, which signifies that adults with an annual  income of $75,000+ are 45% to 278% more likely to read Travel + Leisure than  average.  Integration Assessment: We will integrate print advertisements by utilizing the consistent  theme of an improved social status of the individual who wears a Tag Heuer accessory. By  focusing the lighting on the Tag Heuer accessory and casting shadows across other elements  within the advertisement, the theme of a luxurious lifestyle will be emphasized. Print  advertisements will have the Tag Heuer logo located at the bottom, right‐hand corner of the  page with the tagline “You’ve earned it” centered at the bottom. In addition, the URL will be  in the bottom, left‐hand corner in Copperplate Gothic Light in a smaller font size than the  tagline (in Vani font), thus allowing the tagline to be remembered by those who are  exposed to the print advertisement. There will be coherent color schemes as the other  forms of advertising and include white, gray and black shades.

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Internet   • • •

•

Internet advertisements will be used to gain a broad national reach and accomplish the  communication objective of building brand awareness.  Internet advertising will consist of banner ads which will be used to gain high frequency  with member of our target audience because of their media habits. (Appendix 17)  Index = 126 (Appendix 19)  o Internet advertising is used because those in our target market are heavy internet  users – they are 26% more likely than the average adult to use the internet heavily.  (Appendix 19)  Our target market is likely to use WSJ.com and nytimes.com because business professionals  commonly follow stock data and other market information. In addition, they also travel  frequently for business and leisure so they are likely to use Expedia.com     Average CPM for business banner ads = $5.98 (Appendix 16)  Percent down column not used in calculating reach, rather the projected number  column (Assumption 9)

WSJ.com  • Reach = Number exposed in target market  / Target market size  o Number exposed in target market  = 0.4932 * # exposed who bought dress watches  in past 12 months (Assumption 9)   Number exposed who bought dress watches  = 307,000  (Appendix 17)  o Target Market Size = 5,221,000 (Appendix 1)  o Reach = ( 307,000*0.4932) / 5,221,000 = 2.9%  o Target Market Reached = 2.9% * 5,221,000 = 151,409  • Frequency  o 2 times/day = 365 days/year = 730 times per year (2*365)  o This high frequency is used because it is anticipated that the average viewer spends  a brief amount of time on the website daily and will only be exposed to the ads on  some days  • CPM   o $5.98 (Appendix 16)  • Cost  o Ad Cost = (CPM * Target Market Reached) / 1,000  o Ad Cost = ($5.98 * 151,409) / 1,000 = $905  o Total Cost = ad cost * annual frequency  o Total Cost = $905 * 730 = $660,500  • Index = 150 (Appendix 17)  • Justification  31 | P a g e

o According to MediaMark (Appendix 17), adults who have purchased a dress watch in  the past 12 months are 50% more likely to visit WSJ.com than average. This data was  cross‐referenced with MediaMark Media (Appendix 18) and it was found that  WSJ.com has an extremely high index for all income segments greater or equal to  $75,000. Indexes range from 278 to 654, illustrating that adults with an annual  income of $75,000+ are 178% to 554% more likely to visit WSJ.com than average.  Expedia.com  • Reach = Number exposed in target market  / Target market size  o Number exposed in target market  = 0.4932 * # exposed who bought dress watches  in past 12 months (Assumption 9)   Number exposed who bought dress watches  = 1,382,000  (Appendix 17)  o Target market size = 5,221,000 (Appendix 1)  o Reach = (1,382,000*0.4932) / 5,221,000 = 13.05%  o Target market reached = 13.05% * 5,221,000 = 681,341  • Frequency  o 2 times/day = 365 days/year = 730 times/year  o This high frequency is used because it is anticipated that the average consumer only  uses the website on periodic occasions (when they are planning travel), on the  occasion that a member of our target market does go to Expedia.com there should  be a good chance that they will see a Tag Heuer advertisement.  • CPM   o $5.98 (Appendix 16)  • Cost  o Ad Cost = (CPM * Target Market Reached) / 1,000  o Ad Cost = ($5.98 * 681,341) / 1,000 = $4,074.42  o Total Cost = ad cost * annual frequency  o Total Cost = $4,074.42 * 730 = $2,974,326.60  • Index = 140 (Appendix 17)  • Justification: According to MediaMark (Appendix 17), adults who have purchased a dress  watch in the past 12 months are 40% more likely to visit Expedia.com than average. This  data was cross‐referenced with MediaMark Media (Appendix 18) and it was found that  Expedia.com has a high index for all income segments greater or equal to $75,000. Indexes  range from 179 to 230, illustrating that adults with an annual income of $75,000+ are 79%  to 230% more likely to visit Expedia.com than average.

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NYtimes.com  • Reach = Number exposed in target market  / Target market size  o Number exposed in target market  = 0.4932 * # exposed who bought dress watches  in past 12 months (Assumption 9)   Number exposed who bought dress watches  = 500,000  (Appendix 17)  o Target market size = 5,221,000 (Appendix 1)  o Reach = (500,000*0.4932) / 5,221,000 = 4.72%  o Target market reached = 4.72% * 5,221,000 = 246,600  • Frequency  o 2 times/day = 365 days/year = 730 times/year  o This high frequency is used because it is anticipated that the average viewer spends  a brief amount of time on the website daily and will only be exposed to the ads on  some days  • CPM   o $5.98 (Appendix 16)  • Cost  o Ad Cost = (CPM * Target Market Reached) / 1,000  o Ad Cost = ($5.98 * 246,600) / 1,000 = $1,471.08  o Total Cost = Ad Cost * Annual Frequency  o Total Cost = $1,471.08 * 730 = $1,073,888.40  • Index = 112 (Appendix 17)  • Justification: According to MediaMark (Appendix 17), adults who have purchased a dress  watch in the past 12 months are 12% more likely to visit nytimes.com than average. This  data was cross‐referenced with MediaMark Media (Appendix 18) and it was found that  nytimes.com has a high index for all income segments greater or equal to $75,000. Indexes  range from 201 to 372, illustrating that adults with an annual income of $75,000+ are 101%  to 272% more likely to visit nytimes.com than average.    Integration Assessment: We will integrate internet advertisements by utilizing the  consistent theme of an improved social status of the individual who wears a Tag Heuer  accessory. By focusing the lighting on the Tag Heuer accessory and casting shadows across  other elements within the advertisement, the theme of a luxurious lifestyle will be  emphasized. Display advertisements  on selected websites will have the Tag Heuer logo  (with “Executive Line” in Copperplate Light Gothic font directly below ) located at the very  right‐hand corner of the display advertisement with the tagline “You’ve earned it” directly  to its left in Vani font. Because those who click on the display advertisement will be directly  connected to the Tag Heuer website, the URL will be excluded from this advertisement.  There will be coherent color schemes as the other forms of advertising and include white,  gray and black shades to allude to a luxurious lifestyle.  33 | P a g e

Media Budget (Appendix 24)  • • • • • • •

Total TV Advertising Cost  o $912,120.00  Total Print Advertising Cost  o $8,354,820.00  Total Internet Advertising Cost  o $4,708,714.60  Total Advertising Cost  o $13,976,654.60  Production Cost  o $1,397,565.46  Total Cost of Advertising  o $15,373,220.06  Advertising to Sales Ratio  o Year One Cost of Advertising: $15,373,220.06  o Year One Forecasted Wholesale Sales: $173,593,812.15  o Advertising to Sales Ratio = Year One Cost of Advertising / Year One Forecasted  Wholesale Sales  = $15,373,220.06 / $173,593,812.15 = 8.86%

Competitive Media Assessment   •

•

LVMH (Assumption 16)  o Ad Spending (1997) = $28 million (Appendix 14)   Since this source has outdated information (from 1997), we utilized an  inflation calculator on the internet to find out how much $28 million is worth  today, which provided us with the figure of $38,040,922.08.  o Revenue (€) (2010) = €20.3 billion (Appendix 20)   Due to the fact that our source provided LVMH’s revenue in euros, we used a  currency converter to figure out the dollar amount. This provided us with the  figure of $29,680,911,053.68.   Rolex   o Ad Spending (2001) = $13.33 million (Appendix 21)   Because ad spending in 2001 is outdated, we used an inflation calculator on  the internet to find out how much $13.33 million dollars was worth today,  which provided us with the figure of $16,443,434.41.   o Revenue ($) (2001)  = $25.84 billion (Appendix 22)   Due to the fact that revenue from 2001 is outdated information, we used an  inflation calculator which provided us with the figure of $31,875,344,718.62.

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Advertising‐to‐Sales Ratios  Ad  Spending  1997

Ad Spending  Inflation  (2010)

Revenue (€) (2010)

Revenue ($) (2010)

LVMH  $28,000,000   $38,040,922.08  €20,300,000,000.00  $29,680,911,053.68  Ad  Ad Spending  Revenue ($) (2010)  Spending  Inflation  Revenue ($) (2001)  w/ Inflation  (2001)  (2010)     Rolex

$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 | P a g e

o Share of Voice = SOV Spending / (SOV Spending + Category Ad $) =  $57,210,000/($57,210,000+$381,400,000) = 13.04%  o By having an A/S Ratio of 8.86% and a share of voice of 13.04%, Tag Heuer is able  to improve its overall brand awareness, thereby improving its ability to persuade  its target audience to move up the communication pyramid and eventually arrive  at product use.

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Direct Marketing  Direct Marketing to Consumer   Direct to consumer strategy will not be used as it conflicts with the brand’s image and would  elicit the wrong message in terms of scarcity and quality.    Objective  Encourage personalized purchases through offering order catalogues on site at retail locations  for consumers to browse and order through – we hope to stimulate trial of 1.7%. This figure is  low due to the fact that Tag Heuer sells luxury goods and are priced as such and the poor state  of the economy would influence the number who actually arrive at this stage in the  communication effects hierarchy.     Description  Due to the fact that Tag Heuer already has an existing catalogue, pages containing information  on the Tag Heuer Executive Line will simply be inserted. Provide sufficient stock of ready‐to‐ purchase items for customers to not only buy on‐site or by way of impulse, but also to serve as  a tangible visual aid for consumers who browse through the catalogue that is offered at a  particular retail location. To encourage the additional purchase of congruent Tag Heuer  Executive Line products, package recommendations will be shown in the same section, helping  consumers to match similar Executive Line products together.

Cost  Since implementing the Executive Line is a brand extension to Tag Heuer’s current offering, the  existing distribution channels the company has will be used to add the new product line into  the lineup. Sections for the Executive Line will be added into the catalogue’s current format and  will be little to no extra cost to the company (Assumption 10). In addition, it is unfeasible to  expect to create a large enough install base within the first year for any sort of pull strategy to  be implemented among potential business partners. Therefore, using existing avenues in the  introduction phase is the only pertinent move to make.

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Integration  A consistent theme of an improved social status will be utilized in our direct marketing efforts  and will be accomplished through the allure and scarcity of the Tag Heuer brand image. As in  other elements in the IMC plan, there will be coherent color schemes of white, gray and black  to allude to a luxurious lifestyle associated with owning and wearing an accessory from the  Executive Line. The catalogue will have the Tag Heuer logo located at the bottom, right‐hand  corner of the page with the tagline “You’ve earned it” centered at the bottom in Vani font. By  placing these items at the bottom, the catalogue will have a focused attention on the  accessories themselves. The URL will not be included for this direct marketing tactic because it  might encourage those who view the catalogue to refer to the website instead, thereby  avoiding the decision to purchase in‐store. Through the use of personalizing an order to ones’  own liking, the customer will be assured that they are getting something truly unique and  status worthy.

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Website  Please see Appendix 32 to view website

Objective  To increase our target audience’s knowledge to 50% by having a hub for all necessary  information: product specifications, news, and branded entertainment (YouTube).

Description  Through the website, we are able to tie together all other functions of advertising and media  into a centralized nexus for information and promotional elements to be easily found in an  aggregated form.   The new iteration of the Tag Heuer website, which will introduce the Executive Line of products,  will launch alongside the start of the advertising and promotional campaigns the first weekend  of March 2012 in accordance with the PGA Tour event sponsorship and BaselWorld Trade Show.  The main body of the site will consist of very large and prominent images of the luxury  accessories in the Executive Line, and will be a flash‐enabled, interactive scroll where the user  may shift back and forth between images. These can be clicked on in order to immediately link  the visitor to the appropriate page where the product they chose is located. Along the left side  will be a dropdown style menu which will be able to collapse and expand each selection to  unveil the subcategory of the option selected. Separate sections for men and women will be  included, detailing the full line of products available to them – most notably with the addition  of “Executive” sections in each. Information about the brand will be available as well as a store  locator list of where to buy said products and a news section which will include all press  releases and other articles. Along the bottom will be the YouTube plug‐in enabled scroll‐ through‐bar, linking the branded entertainment campaign directly to the website. In addition, it  will be updated as new content is released. To help visitors find elements with a larger degree  of specificity, a search function will also be imbedded along the top right of the webpage.

Cost  Due to the fact that Tag Heuer already has a website and maintains it, there will be no  additional costs associated with including Tag Heuer’s new Executive Line. (Assumption 18)

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Integration  This is where all the support and promotional pieces of the campaign will come together. We  will integrate the website with other elements in the IMC plan by utilizing the consistent theme  of an improved social status by owning and wearing a Tag Heuer accessory from the Executive  Line. The theme of a luxurious lifestyle will be emphasized by focusing the lighting on the Tag  Heuer accessory and casting shadows across other elements within the advertisement. There  will be coherent color schemes as the other forms of advertising and include white, gray and  black shades to allude to a luxurious lifestyle. The website URL is referenced in print and  television advertisements, on‐site at PGA Tour sponsorship event and also ties directly into the  BaselWorld trade show, which will be the unveiling vehicle for the product. Therefore, by  consistently using the URL throughout multiple advertising and promotional elements, we will  greatly increase traffic to the Tag Heuer website.

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Sales Promotion  Consumer   Providing discounts or “freebies” has the potential to erode the perceived value of luxury  products. Therefore, Tag Heuer will not participate in any consumer sales promotion for the  Executive Line in order to accomplish the objective of promoting the product as a luxury good.

Trade – BaselWorld Trade Show  Objective  To increase the knowledge of the Tag Heuer brand to 50% by having a presence at the  BaselWorld Trade Show. Having introduced the Executive Line the previous weekend, this event  will be used as an opportune platform for educating consumers and the media about the  product.

Description   Direct‐to‐retail channels are already established and sought‐after strong impressions will create  a sense of optimism for the brand’s product line in order to translate into more support for  placement in the marketplace. This will be the first instance of a widespread tangible  impression after its previous week's hype build and the product line will launch in stores the  week following BaselWorld.

Cost  Trade show costs are something which Tag Heuer already incurs as part of its business model  and are already forecasted into their yearly operating budgets. Tag Heuer already participates  in this trade show and therefore would not incur any additional costs (Assumption 11).

Integration  Continuity wise, this event transitions perfectly from initial awareness of our product into a  direct knowledge base and further promotion to lead consumers immediately through the early  stages of the communication hierarchy. Tag Heuer, being already one of the most prestigious  brands at BaselWorld, and thus, creating the desired prestige and image for the new product  line will be an almost natural occurrence. To instigate a lasting luxury in line with other  elements of the campaign, the 25x25 ft booth at the tradeshow will incorporate same color  scheme, logo and theme as other mediums used. Public relations will be of utmost  consideration throughout the course of the tradeshow running March 8 to 15, 2012. Specific  focus of the event this year will be around Executive Line. By continuing to focus on key  influencers, media correspondents will be sought after to give impressions of new product.  41 | P a g e

Public Relations  See Appendix 33 for sample press release

Consumer Strategies  Objective  To achieve an overall brand awareness of 80% by collecting information about Tag Heuer’s  presence at the BaselWorld trade show and providing a compelling press release that will  successfully capture the media’s attention. By using a press release, we hope to achieve an  early adoption of the initial promotional mentions.

Description   Through the use of a press release, we will be able to take early exposure of Tag Heuer’s new  Executive Line for business professionals, which is only available to insiders of the industry and  members of the media, and communicate the benefits to our consumer base in a way they can  easily understand. We will utilize PR Newswire’s affiliate press‐release‐writing.com to issue a  press release chronicling positive impressions of the product line to our target audience  (Appendix 3).

Timing  The press release will be published to concur with the end of the BaselWorld trade show on  March 15, 2012 after influential members of the industry gain accurate, first‐hand knowledge  with the luxury accessories offered in the Tag Heuer Executive Line.

Cost  400 word press release distributed via press‐release‐writing.com = $449 (Appendix 4).

Integration  The press release will tie into the industry trade show BaselWorld and will give a meaningful  and worthwhile account of the quality and status the Executive Line accessories can provide to  our targeted consumers. Coinciding with both the timing of the tradeshow and launch of the  brand extension, this will allow for a faster rate of exposure, a faster rate of awareness and help  to educate our consumers about the benefits that they can expect from the image associated  with owning Tag Heuer products. These releases will be available to consumers visiting the Tag  Heuer website under the "News" section of the navigation menu.

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Viral Strategies  Objective  Increase overall awareness to 80% by offering a larger knowledge base of technicalities and  features to consumers through use of industry expert reviews.

Description  Provide a sampling kit of an entire suite of Tag Heuer Executive Line products to three of the  top watch review blog sites on the web (Assumption 19). These kits will include one of each of  our Executive Line products (a watch, pair of sunglasses, tie, wallet, pair of gloves, and handbag)  in addition to a pair of cufflinks which are being given as part of the POP promotion and a  technical specs brochure of the products. By providing a sampling kit in addition to cufflinks and  brochure, we will be to generate further buzz across the web about the new line.

Timing  These kits will be sent to the blog sites in association with the beginning of the BaselWorld  trade event and beginning of our product launch on March 8, 2012.

Cost  The wholesale cost of sending out a kit ($1,500‐watch + $200‐sunglasses + $50‐tie + $125‐ wallet + $100‐gloves + $250‐handbag) = $2,225 (x 3 blog sites) = $6,675

Justification  Due to the extremely high quality and legacy associated to the Tag Heuer brand and its  merchandise, sending out kits to industry influencers will communicate our image in a  trustworthy fashion to consumers who could potentially purchase the Executive Line  accessories. In filling a gap in the industry, the message to be portrayed would be one of  superiority with easily accessible options for the business professional to purchase with little  effort, while knowing that what they are purchasing matches other offerings of the product line  unlike anything else currently offered on the market from other competing brands.

Integration  Like the press release, these blogs will be available to read on the Tag Heuer website under the  "News" section of the navigation menu. The packaging that will contain each of the luxury  accessories in the new Tag Heuer Executive Line will maintain the consistent color schemes as  the other elements in the IMC Plan as to reinforce the luxuriousness of the brand’s image. The  bloggers will also be provided with the media kit containing the brand’s logo, font, URL and  quality images of the products in order to incorporate that onto their blog site.

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Event Sponsorship  PGA Event Sponsorship  Objective  To promote a large influx of brand awareness up to 80% from the genesis of the product launch  by providing the most comprehensive promotion strategy of the campaign.

Description   By initiating the sponsorship in alignment with the launch of the product, the event will be used  as a springboard for all future advertising and promotional efforts in hopes to generate word of  mouth buzz, website visits and begin the process of teaching our target audience about the  benefits of our product. Being introduced at an event will not only carry influence with our  target market but will also proliferate these effects to a degree of much larger efficacy.    With an all‐inclusive sponsorship deal with PGA, the tournament will be named after our  product line and air on the ESPN network at the beginning of the campaign to start the first  weekend in March 2012. TV ad spots and sponsorship mentions by event hosts will be used  often throughout the event and occur in the last slot of the commercial pod when aired. Banner  ads (Appendix 34) will be used on site at golf course grounds and clubhouse area for those in  attendance to be directly exposed to. TV commentators will be provided exclusively with Tag  Heuer Executive Line accessorizing with their attire as nuance to the promotion. The ultimate  outcome in the form of the tournament trophy presentation will also sport the Tag Heuer  Executive Line logo and campaign themes and the winner will be presented with Tag Heuer  Executive Line watch and the overall purse and winnings of the event will be covered by Tag  Heuer as part of the promotion.

Cost  All inclusive cost of a four day weekend PGA sponsorship deal (including all TV ad costs,  promotional mentions, on site advertising, and purse winnings) = $7,000,000 (Appendix 31).

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Integration  In congruency with our target market's interests, the choice of a PGA event to sponsor is on par  with having the ability to effectively and efficiently educate consumers about the new product  line rollout. The feel and image of TV ads and print ads will carry through to the banner ads  scattered across golf course grounds and will appeal to the quality which is accentuated in all  other avenues of the product advertising and promotion strategy and will help to further  reinforce its status connotation. Product website URL will be posted to link people online and  further encouragement to visit will be garnered through TV commentator advisement  throughout the weekend. Seeing the product itself being worn first hand by influencers of our  segment will likely lead many through to the liking stage immediately and cause a more  impactful weight from which all of the pieces of the IMC plan will benefit.

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Support Media  Branded Episodic Entertainment  Objective  Increase overall awareness to 80% with audience who may not consume traditional forms of  advertising and media. Through a less conventional approach and focusing on the key messages  which promote Tag Heuer's brand equity to consumers, we would be able to engage them in a  distinctive and entertaining way unique to any other experience they can get elsewhere. Our  goal is for 100,000 views in initial 4 day weekend of product launch (during PGA tournament).

Description  We plan to hire top name actors and directors to theme these episodes in line with Tag Heuer's  offering at any given time. The initial run will consist of one episode which will be available on  day one of the first year of the campaign and will be available on a Tag Heuer YouTube channel.  This will be linked via imbedded plug‐in which will be posted as content on the company  website. The episode will be approximately five minutes long and will be gauged successful or  unsuccessful based on reaching the opening weekend goal of 100,000 views (Appendix 28). If  deemed successful, more content will be created with additional actor and director  partnerships.

Cost  Per episode: $3,000,000 (Appendix 29)  5 episodes * $3,000,000 = $15,000,000

Integration  By launching the episodic campaign on YouTube to correspond with the PGA tournament  sponsorship, a golf themed episode will be the first to be presented to the audience to tie  together all Executive Line products to a message that aligns with the feel of the event. The  website will carry an imbedded plug‐in to the Tag Heuer YouTube channel and vice versa to  quickly and easily bring together internet users for more effective viral spread. Tones and  imagery used in other forms of media and advertisements will provide a similar look and feel as  to not delineate from core approach and meaning of the Tag Heuer identity. Tones include  classical music that pertains to the upper class lifestyle and imagery refers to those often  associated with a luxurious lifestyle.

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Point‐of‐Purchase (POP)  Objective  To draw attention to Tag Heuer’s Executive Line products in fine department stores such as  Nordstrom and Neiman Marcus, retailers will be provided with elegantly styled point‐of‐ purchase (POP) displays.   Description  Retailers will be provided with signage to include in their existing jewelry counter displays  where other luxury watches are sold. The signage will consist of Tag Heuer’s logo and the  tagline “You’ve Earned It” in Vani font, and will be packaged with fine leather briefcases that  the Executive Line watches are to be placed on top and inside of the glass display counter. The  same strategy will be repeated in the sunglasses display counter.  Retailers will also be provided with signage and instructions for the placement of a display in  the women’s accessories department near the handbags.  The display will include the complete  women’s Executive line: watches, sunglasses, wallets, handbags and gloves. Retailers will be  instructed to place the display in an existing glass counter with the same signage included in the  watch and sunglasses display.

Timing  Retailers will be provided with the displays with their first shipment of Tag Heuer’s Executive  Line products. This is anticipated to follow shortly after the launch of the line at BaselWorld  from March 8 to 15, 2012.

Cost  Because Tag Heuer already distributes watches and sunglasses through Nordstrom and Neiman  Marcus and the Executive Line displays will replace existing Tag Heuer displays, there will be no  additional costs. Point‐of‐purchase (POP) displays are already updated seasonally. (Assumption  17)

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Integration  We will integrate the point‐of‐purchase (POP) displays by utilizing the consistent theme of an  improved social status gained by owning and wearing a Tag Heuer accessory. By focusing the  lighting on the Tag Heuer accessory and casting shadows across other elements within the  advertisement, the theme of a luxurious lifestyle will be emphasized. As mentioned in the  point‐of‐purchase description, we will be utilizing signage to make the Tag Heuer logo visible to  customers in the jewelry department. In addition, the tagline will be located beneath the logo  in Copperplate Gothic Light font, to maintain consistency throughout all IMC elements. There  will be coherent color schemes as the other forms of advertising and include white, gray and  black shades to allude to a luxurious lifestyle. The only aspect of the IMC plan that will be  missing from our displays is the URL, which will not be applied to the displays due to the fact  that we are aiming for an in‐store purchase.

48 | P a g e

Evaluation of Promotional Plan  Since our objective is to increase awareness for the Tag Heuer brand, all components in our  IMC plan will be measured on their ability to effectively reach an overall awareness of 80%.  With these measurements, an assessment of our IMC plan can be reached and the appropriate  modifications can take place. Measurements will be conducted using the Gallop & Robinson’s  Impact System.  Justification: By using Gallop & Robinson’s Impact System (Appendix 25), our advertisements  will be post‐tested to determine their effectiveness in improving Tag Heuer’s brand awareness.  To evaluate our television advertisements, InTeleTest will be utilized because it is the most  realistic system available to stimulate a normal viewing environment (Appendix 26). For print  advertisements we will use MIRS (Magazine Impact Research Service) because it is the industry  leader for print testing (Appendix 27).  Media Advertising  An assessment of our media advertising will be conducted in order to determine how well the  objectives of increased brand awareness, knowledge and preference for the Tag Heuer brand  have been met.  •

•

Television – InTeleTest   Total cost to test television ad effectiveness for one TV ad =  $15,000 (Assumption 12)    Magazines – MIRS (Magazine Impact Research Service)  Since we will only be using full page, full color, there is only a need to evaluate the  effectiveness of a single print advertisement.   Total cost  to test effectiveness of one print advertisement = $10,000 (Assumption 13)

Other Promotional Elements  Pretesting was conducted as part of the initial strategy development of our overall IMC plan  and will therefore incur no additional costs (Assumption 14). Google Analytics, a free service  offered by Google that generates detailed statistics about website visitors, will be used to post‐ test the effectiveness of our website as well as banner advertisements in enhancing brand  recall. For our event sponsorship of the PGA Tour, we will post‐test its effectiveness by  evaluating the before‐and‐after website traffic that is generated (Assumption 15).When it  comes to post‐testing direct marketing, point‐of‐purchase, and public relations, a variety of  methods will be utilized to measure their effectiveness such as the number of orders processed  for our catalog, exit polls and tracking sales for our point‐of‐purchase, and the number of press  clippings and media coverage for our public relations.   49 | P a g e

Internet Advertising  Posttest using click‐through rate (Google Analytics)  No added cost  Website  Posttest using data on hits, pages viewed, unique visitors, etc. (Google Analytics)   No added cost  Direct Marketing: Catalog   Posttest using number of orders processed  No added cost  POP  In‐store display of Tag Heuer accessory line  Posttest using exit poll and tracking sales in upper‐end department stores, such as Nordstrom  and Neiman Marcus  Public Relations: Press Release   Posttest by tracking total number of press clippings, where the coverage appeared, positive and  negative media coverage by PGA Tour sponsorship, and the accuracy of information  No added cost  Event Sponsorship: PGA Tour  Posttest with traffic to Tag Heuer website during and directly following the sponsorship   (Assumption 15)  No added cost

50 | P a g e

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 | P a g e

•

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%.

52 | P a g e

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

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

9.4

128

45,233

2,345

5.2

22.2

111

48,276

2,027

4.2

19.2

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

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

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.

1 Begin examing the prices of similar items sold by competitors. For bricks and mortar stores, you need to visit competitors stores once per season. Examine items that are similar or the same as ones you are selling and note prices and discounts. For online retailers, shop major categories. It may be helpful to create a rudimentary spreadsheet in Microsoft Excel to track prices.

2 Look through newspapers, magazines, and other forms of advertising and note how your competitors are using discounts. Are they giving out coupons or offering one day sales?

3 Next, examine your own markup policies. What is your markup range? Do you even have one? Markup is typically calculated by multiplying the wholesale cost plus the shipping costs by a number to get the retail price. The retail price has to account for overhead, marketing costs and profit. Typical markups are 2x wholesale or more for luxury goods. Are your markups pushing your retail prices too high, or perhaps too low?

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

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

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

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

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

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

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

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

12.5

297

Expedia.com

21014

1554

7.4

20.4

219

Total

Pct  Across

Pct  Down

Index

225887

2075

0.9

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

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

20.8

223

Pct  Across

Pct  Down

Index

Total

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

829

0.4

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

0.8

5.1

206

GQ (Gentlemen's Quarterly)

6773

0.8

6.3

209

Newsweek

16601

0.5

10.1

137

Travel + Leisure

4813

0.9

5.3

248

wsj.com

4366

1.4

7.5

389

nytimes.com

9535

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

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

5.5

184

Newsweek

16601

174

1.1

14.5

197

Travel + Leisure

4813

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

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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