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Reebok ZigTech Media Plan January 2014-December 2014 Chloe Derse


Table of Contents Situation Analysis………………………………………………………………………………...3 Competitive Spending Analysis……………………………………………………………. 9 Target Demographic and Psychographic Information………………………….... 18 Target Media Use………………………………………………………………………………… 25 Media Strategies ……………………………………………………………………………….... 30 Flowchart …………………………………………………………………………………………... 37 Appendix ………………………………………………………………………………………….... 38

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Situation Analysis 3


Background Information          

 

Reebok International Limited, founded in 1895, is a well-known sports clothing and footwear corporation whose parent company is Adidas. 3 Reebok introduced ZigTech running shoes in early 2010, and the shoes became available in stores during March. 4 Shoppers most often go to department stores to buy shoes, but people with high incomes tend to look at upscale shops. 1 Women ages 25-34 purchase new shoes most often. (66% bought a new pair within the last year). 2 People ages 25-44 are most likely to buy running or jogging shoes. 2 58% of all women bought a new pair of athletic shoes in the past year. 2 Women most often buy casual athletic shoes, with walking shoes next, and running or jogging shoes after that. 2 Of women who bought a new pair of shoes in the past year, 11% purchased Reebok shoes. 2 Of people who bought a new pair of Reebok shoes in the last year, the majority make less than $25,000. 2 Households with an income over $100,000 are most likely to have bought a new pair of shoes within the last year. Because wealthy households have a higher disposable income, they have the freedom to purchase shoes more often and do not need to be concerned with saving money for essentials, such as groceries and paying bills. 2 In the press release that launched Reebok ZigTechs, the shoes were likened to “an energy drink for your feet.” The premise behind this concept is the zigzag design on the shoe, which passes along a surge of energy through the foot. Reebok asserts that this allows athletes to train longer and more intensely without fatiguing. Reebok has also emphasized the fact that the shoes can minimize injuries on central muscles that runners use often. 4 Peyton Manning has a quote in the press release that highlights the key features of the shoes, such as their ability to minimize muscle strain. Chad Ochocinco commented on the shoes’ bold look, and several other professional athletes in sports ranging from soccer to boxing to baseball are also mentioned in order to appeal to a variety of athletes. There are, however, no female athletes included. 4 Available sizes range from five to 11. 5 Buying the shoes directly from Reebok’s website costs $99.99, but one can purchase them for $60 from websites such as www.finishline.com. 5,6

4


Simmons Demographic Information for Reebok Shoes

General demographic information for women who bought Reeboks last year

Age breakdown of women who bought Reeboks last year

Competitive Analysis 

The competitive category for the ZigTech 3.0 is Trendy Women Runners. This group is active and healthy, and they are in-tune with the latest styles and trends in many facets of their lives. These women are not the type to run trails outdoors, but are more inclined to be part of a gym and participate in new types of workouts, such as CrossFit or P90X.

Competitors and their top features8: 

 

The main selling point of the Nike Free 5.0+ is its lightweight, almost-barefoot feeling. Nike uses this concept to emphasize the fact that the shoes won’t weigh runners down, but will help support the foot’s natural landing with the ground. 9 The Mobium Elite Glow Women’s Running Shoe, made by Puma, focuses on the shoe’s ability to propel the wearer forward while conserving energy, which is similar to the ZigTech’s primary feature. 10 Skechers GOrun 2 for women stresses the shoe’s light and minimalistic design, which supports a natural stride for running. 11 The key feature of the Adidas Energy Boost Shoe is the “energy-returning boostTM midsole,” which gives athletes an extra bounce with each step. Like the ZigTech, it promises a constant source of energy to keep runners going longer. 12 Fila’s Memory Deluxe 3 for women features memory foam that helps conform to each individual’s different foot shape, and this ultimately helps reduce any uncomfortable pressure points that runners experience. 13 Asics Gel-Super J33TM for women has gel components inside of the shoe to cushion the foot and absorb shock to minimize excessive stress on muscles and joints. 14 5


ZigTech’s Top Three Competitors: 

Puma’s Mobium Elite Glow Women’s Running Shoe is a top competitor because its selling features are analogous to ZigTech’s. Both shoes claim to help runners prolong their workout sessions and combat muscle fatigue through the unique design of the shoe. 10 Adidas’s Energy Boost Shoe is also a top competitor because the technology of the shoe is very similar to ZigTech. Women who are considering buying either of these shoes will be faced with the same general information. 12 Asics Gel-Super J33TM is a strong competitor because the gel in the shoe’s insole helps reduce strain. ZigTechs also minimize muscle strain, but they use different technology in the zigzag outsole of the shoe to achieve the same result. 14

Strengths

Weaknesses

Puma -Expansion Pods provide extra cushion10 -Has reflective strips throughout the shoe 10

Adidas -Wide range of colors 12 -Shoe is lightweight 12 -Claims to return energy back to the foot with each stride 12

-Only three color options10 -Designed for a “neutral runner” who does not over or under pronate10

-Cost of shoe 12 -Shoe is angled downward from heel to toe12 -Website recommends buying shoes ½ size larger12

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Asics -Targets runners who over pronate 14 -Shoe is lightweight14 -Cost is comparable to Reebok ZigTechs14 -Contains the American Podiatric Medical Association Seal of Excellence14 -Only two color options14 -Uses unclear shoe technology jargon in shoe description14


Personality and positioning of brand

Cost Benefits of brand

Reebok -Emphasizes not only running, but different types of training and workouts that make up one’s lifestyle 5 $99.99 5 -Partnership with CrossFit 5

Puma -A classic, yet edgy brand that carries both athletic and casual shoes 10

Adidas -Successful company that carries shoes for a wide variety of sports12

Asics -Specializes in running shoes, including trail shoes14

$110 10 -Strong brand recognition paired with quality-made products

$150 12 -Highest annual sales out of these four brands 8

$100 14 -Helps runners identify whether they over or under pronate and can suggest shoes based on that information 14

SWOT Analysis Strengths  Other brands have not replicated the unique zigzag design  Offers the lowest price out of the closest competition 5  Reebok has partnered with CrossFit 5 Weaknesses  Does not recognize any professional female athletes that wear ZigTechs 5  No clear differentiation between the various styles of ZigTechs (such as the ZigTech Shark Pursuit 360, ZigUltra, ZigKick Ride) 5 Opportunities  The shoe industry has been fairly resistant against the economic downturn 1  Becoming active and strong has become a popular trend among women  Social media use is high for the group of women targeted Threats  Other shoe brands have similar, but not identical, features for their running shoes  With nearly endless shoe technology terms, it can be overwhelming for consumers looking to purchase a quality pair of running shoes that is right for them  The current fad for running shoes is bright, bold colors and this may not appeal to some athletes

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Objectives for the Media Plan 

Sales Objective: Increase sales 0.7% in 2014

Marketing Objective: Convince 10% of active women to purchase Reebok’s ZigTech 3.0 Running Shoe for women

Advertising Objective: Educate and inform active women about the functional benefits of the ZigTech zigzag outsole

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Competitive Spending Analysis

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2012 Budgets for Reebok and its Competitors $(000) Reebok $53,230 Puma $6,260 Adidas $26,443 Asics $17,225  Reebok had the highest budget in 2012 out of these three competitors

Share of Spending for Reebok and Competitors $(000) Reebok

17%

Puma 52%

26%

Adidas Asics

6%

Reebok’s spending accounted for over half of the share of spending when comparing these four brands.

Network TV Expenditures $(000) - $18,801 Total Reebok: $9,845 Puma: $0

48% 52%

Adidas: $8,956 Asics: $0

Reebok and Adidas were the only two brands that used advertising dollars in network television, and the amount they spent is similar.

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Cable TV Expenditures $(000) - $19,106 Total Reebok: $13,453 30%

Puma: $0 Adidas: $5,653 70%

Asics: $0

Adidas allocated some spending to cable television, but Reebok stands as the leader in this medium.

Syndicated TV Expenditures $(000) - $5,463 Total 

Adidas was the only brand that spent any money in syndicated television.

Television Expenditures Overall $(000) - $43,370 Total Reebok: $23,298 46%

Puma: $0 54%

Adidas: 20,072 Asics: $0

 

Reebok was the leader in television expenditures, with Adidas not far behind. Puma and Asics did not use any television advertising as part of their media plan.

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Magazine Expenditures $(000) - $49,721.2 Total Reebok: $25,856.4

33%

Puma: $2,143 52%

Adidas: $5,463

11%

Asics: $16,258

4%

  

Reebok was the leader again in magazine expenditures. Asics came in behind Reebok with spending, and Asics dedicates almost all of its advertising budget to magazines. Puma and Adidas spent a minimal amount in magazines.

National Newspaper Expenditures $(000) - $1,045 Total 

Puma was the only brand that allocated advertising dollars to national newspapers.

Internet Expenditures $(000) - $7,862.3 Total 12%

12%

Reebok: $2,916 37%

Puma: $3,072

Adidas: $908 Asics: $966.3

39%

 

All four brands spent some of their advertising budget on Internet. Puma’s expenditures are the highest for Internet costs, with Reebok close behind.

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Puma  

Total budget $(000): $6,260 Share of Spending: 6%

Puma's Media Mix $(000) Magazines: $2,143 34%

National Newspapers: $1,045

49%

Internet: $3,072 17%

   

Puma has an overall small budget compared to Reebok, Adidas and Asics. Internet spending comprised nearly half of Puma’s ad spending. Puma is the only brand that uses national newspapers to advertise. Unlike Reebok and Adidas, Puma does not allocate any money to television.

Seasonality:  Puma’s spending is completely equal for all 12 months, showing that they use the continuity strategy.  They spend a little over half a million dollars each month ($521,700).

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Adidas  

Total budget $(000): $26,443 Share of spending : 26%

Adidas's Media Mix $(000) 3% Network TV: $8,956

21%

Cable TV: $5,633

34%

Syndicated TV: $5,463 21%

Magazines: $5,463

21%

    

Internet: $908

Adidas has the second largest budget after Reebok. Three quarters of their ad budget is spent on television. Network television makes up one third of their media mix. Adidas allocates about equal amounts to cable television, syndicated television, and magazines. Internet is a small fraction of their media mix.

Seasonality:  Adidas employs the flighting method.

Adidas: Yearly Spending Patterns 4000000 3500000 3000000 2500000 2000000 1500000 1000000 500000 0

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Asics  

Total budget $(000): $17,225 Share of spending: 17%

Asics' Media Mix $(000) 6%

Magazines: $16,258.8 Internet: $966.3 94%

  

Asics’ overall budget is on the low end in comparison to the other three brands. Their media mix only uses two different mediums, with the vast majority being spent in magazines and a small amount directed towards Internet ads. Asics does not employ television advertising at all.

Seasonality:  Asics utilizes the continuity strategy, with the exception of January.  This is most likely an attempt to target people who have a New Year’s resolution.

Asics: Yearly Spending Patterns 2,500,000 2,000,000 1,500,000 1,000,000

500,000 0

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Opportunities for Reebok  

None of the other brands use outdoor advertising, so there is an opportunity for Reebok to dominate in this medium. Although traditional radio may not be the best option, Internet radio is a way to reach the selected target. Many people listen to sites such as Pandora while working out, and placing ads that are on workout music stations will expose active women to the advertisements. In addition, many Pandora advertisements are videos, and this would be an opportunity to highlight the visual aspects of the shoe. Reebok’s top competitors assign a fairly small portion of their ad budgets to Internet. Their lack of involvement on the Internet is a chance for Reebok to lead in this medium. The most effective way for using Internet ads is to advertise with websites that active women are likely to visit, or by using custom ads that have tracked which websites people have recently visited.

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Media Objectives The target for Reebok ZigTechs is active, educated women ages 30-39.  According to Simmons data, the type of woman that is most likely to purchase Reebok ZigTechs fits into the criteria above. This will be a nationwide campaign, with heavy-ups in California, Colorado, Oregon, Washington, Maryland, Minnesota, and North Carolina.  Simmons data shows that the Western region of the United States is the most likely area for active women to live.  Maryland, Minnesota, and North Carolina have extraordinarily high indexes for being the home to active women. Seasonality and scheduling for Reebok ZigTechs will incorporate a pulsing strategy, with an emphasis on early morning during the week and Sunday evenings.  A pulsing strategy is the best option for Reebok because the summer months and the holiday season are excellent times of the year to advertise.  Summer is a time of the year when women are especially active. By making Reebok more salient during these months, active women will be more likely to look to Reebok for their athletic shoe needs.  There will also be extra spending during January and December. Many people adopt a healthier lifestyle for a New Year’s Resolution, so January is an important month to have extra advertising. The holiday season is a time of the year for big spending, and many people are also preparing for their New Year’s Resolution during December.  To avoid being forgotten, there will be a steady stream of advertising throughout the entire year as well. The goals for plan performance are 80-90% reach, an average frequency of 3, and TRPs of 255.  Reach is moderately important for this campaign because it is essential to reach as many active women as possible. However, since this is not a new product, it is not necessary to make the reach greater than 90%.  Using the Ostrow method, a desired frequency of 3 was calculated. The frequency adjustment for Market Factors was -0.4, the adjustment for Message Factors was -0.1, and the adjustment for Media factors was -0.5.  The TRPs are 255 because 85 (the average reach) X 3 = 255. The budget for the campaign is $34 million.

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Target Demographic and Psychographic Profile 18


Age and Race

Vertical %

Index

Ages 75+ Ages 30-34 Ages 35-39

4.5% 11.8% 9.2%

58 124 115

Black 10.6% 88 White 78.0% 101 Asian 6% 130  The target group for Reebok ZigTechs is white women ages 30-39.  There is an opportunity to target Asian women as well because of the high index.

Education and Martial Status

Vertical %

Index

Did not graduate high school Graduated from a 4-year college

7.6% 20.1%

60 133

Presently Married 56.5% 104  The target is likely to have a college education.  Marital status does not appear to be a significant predictor of the target group.

Employment Status, Hours Worked per Week, and Occupation

Vertical %

Index

Retired Employed part time

12.3% 15.2%

73 131

Hours worked weekly: 51+ Hours worked weekly: 15-29

3.8% 9.9%

78 146

Food Services 2.9% 75 Educational Services 9.6% 169 Office and Administrative Support 11.6% 155 Homemaker 13.7% 211  The women who do work are most likely to work part-time in an educational setting or in an office.  The target group is very likely to be homemakers.

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Household Information

Vertical %

Index

Parent/guardian of any 55.7% 105 children No. of children: 2 15.7% 117  Women who have children are slightly more likely to be part of the target group.  The most common number of kids that the target has is two.

Household Income and Vertical % Type of Residence

Index

$75,000-$99,999 $100,000-149,999

113 132

14.8% 17.0%

Condominium/Apartment 16.8% 98 House 79.4% 103  The target is wealthy, with many making over $100,000 per year.  The majority of women are homeowners.

Geography Information

Vertical %

Index

Northeast Midwest South West

17.7% 22.1% 33.2% 26.9%

96 101 92 115

County Size “A” 44.4% County Size “D” 12.6%  The target is likely to live in cities in the Western US.

108 87

States

Index

Vertical %

Virginia 1.9% 75 California 12.4% 107 Colorado 1.87% 128 Oregon 1.7% 139 Washington 4.6% 123 Maryland 2.5% 135 Minnesota 2.3% 140 North Carolina 4.2% 124  The target is likely to live in Western states, such as California, Colorado, Oregon and Washington. This information aligns with the geography information above.  Places outside of the West, such as Maryland, Minnesota and North Carolina, are potential locations for a heavy-up. 20


Recycling and Political Views

Vertical %

Index

Recycles newspapers very often Recycles plastic beverage containers

57.3% 56.6%

121 118

Very conservative 11.6% 80 Somewhat liberal 17.0% 134  The women in this target group are very likely to recycle.  They are least likely to consider themselves very conservative and most likely to be somewhat liberal.

Attitudes about Clothing: Agree a Lot Vertical %

Index

Designer labels improve a person’s image 2.4% 69 I like to keep up with the latest fashions 11.7% 158 I often buy clothes I don’t need 8.3% 126 I like to make a unique fashion statement 8.2% 154 It is important to look attractive to others 35.5% 128 I really enjoy clothes shopping 28.3% 166  The target is fashion-oriented, but they are not preoccupied with designer clothes.  They are not afraid to make a bold clothing choice.  They value their appearance and like to go clothes shopping.

Attitudes about Health: Agree a Lot

Vertical %

Index

Due to my busy lifestyle, I don’t take care of 9.9% 82 myself as much as I should I am working at eating a well-balanced diet 35.0% 170 I exercise regularly 35.5% 203 My friends ask my opinion about nutrition 9.3% 168  The target is more health-conscious than the average person, and they invest a lot of effort into their well-being by eating healthy and exercising.  Others look to them for advice about health.

Attitudes about Environment: Agree a Lot

Vertical %

Index

Everyone has an obligation to be 50.2% 118 environmentally responsible It is important to me that others see me as 24.7% 124 environmentally conscious I am likely to buy environmentally friendly 30.8% 125 products  Women in this target group value the environment and want to portray themselves as environmentally friendly. 21


Attitudes about Life: Agree a Lot

Vertical %

Index

I am willing to sacrifice time with my family to get ahead 7.6% 88 I am a workaholic 6.2% 84 We rarely eat a meal together as a family 4.8% 60 A woman’s place is in the home 4.2% 82 I am more likely to buy products that sponsor sports 4.1% 91 teams and sports events I like to buy the same products that celebrities use 2.4% 87 It is important that a company acts ethically 60.1% 120 It is important to me to attend religious services 32.2% 119 I am willing to volunteer my time to a good cause 41.0% 130 I am interested in other cultures 26.1% 132 I prefer to have as few possessions as possible 5.3% 80 I enjoy entertaining people in my home 26.2% 122 It is important to keep young-looking 16.2% 133 Home décor is of particular interest to me 20.5% 154 I am perfectly happy with my standard of living 26.9% 126  These women do not put work before their family, and they value spending time together with their family.  Although the target is very likely to be a homemaker, these women do not believe that they are limited to staying at home.  These women do not seem to care if a product is used by someone famous or if it is associated with a sports team, but they do pay attention to the ethical decisions that companies make.  Religion and volunteering are an important part of their lives.  These women are open to learning about other cultures.  It is important that others see them as attractive, and that their friends admire their home, which is most likely filled with material possessions.  They are generally happy with their lives.

Attitudes about Social Interactions: Agree a Lot

Vertical %

Index

I am expressive when sharing my opinion 24.2% 125 Others look to me to organize social activities 14.0% 148 I enjoy keeping in touch with friends 43.8% 148  The women in this target are generally friendly and outgoing, which helps keep their social life active.  These women are likely to initiate a social activity that brings people together.

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Attitudes about the Shopping: Agree a Lot

Vertical %

Index

When shopping, I just get what I need and leave 14.9% 63 For inexpensive items, I shop at different stores to 43.4% 128 get the best price I am usually the first of my friends to shop at a new 4.9% 132 store I usually go to the clearance section right away 24.4% 152 I ask others for advice before buying something 13.7% 132 People come to me for advice before buying 5.9% 129 something new  The target enjoys the process of shopping, rather than viewing it as a burden.  Although these women are wealthy, they still like sales and clearance items.  Others look up to the target group for their opinion on buying something, and the target also asks others of their opinion about a future purchase decision.

Memberships

Vertical %

Index

Veterans Clubs 1.5% 39 Church/Temple/Synagogue 39.5% 128 Art Association (Museum, Symphony, Opera, Dance) 6.3% 193 Environmentalist Organization 4.3% 202 PTA/Parents Association 9.1% 214  Women in this target are likely to be involved in their religious organization.  They have a very strong presence in the arts, environmental causes, and the PTA.

Personality Traits

Vertical %

Index

Awkward, forgetful, careless 3.7% 77 Affectionate and Passionate 23.2% 121 Efficient and organized 21.0% 134 Refined, gracious, dignified 17.1% 121  These women describe themselves positively; they view themselves as loving, structured and sophisticated.

Hobbies

Vertical %

Index

Photography 29.6% 157 Listening to music 80.4% 121 Needlework, quilting 16.8% 200 Going to bars/nightclubs/dancing 28.1% 134 Painting, drawing, sculpting 17.1% 181 Scrapbooking 16.3% 231  The target enjoys individual (creating art, photography) as well as social activities (going to bars). The majority of their interests are craft-based and artistic. 23


Exercising Activities

Vertical %

Index

Working out one times per week 3.3% 63 Working out three to four times per week 43.3% 187 Working out five times per week or more 21.6% 198 Exercising at home 51.3% 169 Exercise at a private club 19.8% 194 Exercise at YMCA/YWCA 6.3% 186  The majority of the target exercises three to four times per week at home.

Favorite Music

Vertical %

Index

Children’s 6.8% 203 Pure pop 17.9% 189 Mainstream/Pop country 26.0% 154 Pop R&B 19.9% 150 Teen pop 7.5% 185  There does not appear to be any particular type of music that the target enjoys.

24


Target Media Use

25


Magazines

Vertical %

Index

Cooking Light 6.8% 222 Fitness 5.1% 262 Self 6.0% 301 Shape 6.8% 326 Cosmopolitan 8.6% 196 Glamour 7.6% 230 Martha Stewart Living 5.1% 227 Real Simple 5.6% 245 American Baby 3.3% 225 Brides 2.1% 226 US Weekly 10.0% 215  The target group enjoys reading health, fashion, and home magazines.  There are a few other specialty magazines that the target is likely to read, such as parenting, bridal, and celebrity gossip magazines.

Newspaper Sections

Vertical %

Index

Sports 9.8% 58 Fashion 11.4% 225 Entertainment (movies, restaurants) 18.7% 142 Food/Cooking 19.1% 174 Home/Furnishings/Gardening 10.4% 184 Travel 7.9% 157  These women are especially interested in the fashion and home section in the newspaper.

Cable Television

Vertical %

Index

Fox Sports Network 2.9% 63 The Golf Channel 2.9% 66 Style 5.7% 181 DIY 6.6% 128 HGTV 21.4% 149 Food Network 27.4% 134 ABC Family 22.7% 139 Bravo 15.7% 148 Discovery Health Channel 8.3% 134 E! 16.1% 143 Lifetime 26.4% 130  The target group is most likely to watch style, home, and entertainment channels, which aligns with their interest in fashion and the home.  A large percentage watch Food Network and Lifetime.

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TV Dayparts

Vertical %

Index

Mon-Fri 6am-9am 45.0% 111 Mon-Fri 10am-4pm 45.8% 108 Mon-Sat 8pm-11pm, 84.3% 107 Sun 7pm-11pm Saturday 8pm-11pm 47.1% 101 Sunday 7pm-11pm 43.2% 112  The target group is not significantly more likely than the rest of the nation to watch TV at any time throughout the day.  They are most likely to view television during primetime.

Specific TV Shows

Index

Cops 72 Judge Judy 83 Access Hollywood (Weekend) 164 America’s Next Top Model 194 The Bachelor 195 The Biggest Loser 178 Good Morning America: Weekend Edition 127 Parenthood 171 The Vampire Diaries 162 Glee 193 Modern Family 158  The target watches a wide variety of shows, including celebrity news, reality television shows, drama, and comedy.

Radio Listening Hours

Vertical %

Index

Mon-Fri 7pm-Midnight 24.5% 118 Sat-Sun 10am-3pm 40.4% 124 Sat-Sun 7pm-Midnight 21.4% 118  These women are most likely to listen to the radio from the morning to afternoon during the weekend.  They also listen to the radio during weeknights.

27


Type of Music

Vertical %

Index

Sports 2.9% 52 Contemporary Hits 24.0% 158 Country 22.0% 119 Classical 4.1% 161 Religious 9.8% 134  These women enjoy listening to a wide variety of music, not any one type in particular.

Internet Ads

Vertical %

Index

Banner ads- Never lead to purchase 64.0% 111 Email ads- Never lead to purchase 73.0% 111 Floating ads- Never lead to purchase 60.9% 106 Full-motion video ads- Never lead to purchase 74.4% 112 Pop-up/Under window ads- Never lead to 74.5% 111 purchase Sponsored websites from search results- Never 61.4% 109 lead to purchase Webpage links- Never lead to purchase 60.4% 107  The majority of the target is not likely to purchase items from any type of online advertisement.

Internet Use and Time of Vertical % Day

Index

Used Internet in last week 75.3% 116 Used Internet from 9am-4pm 28.8% 123 last weekend Used Internet from 7am-9am 14.0% 123 last weekend  The majority of women used internet in the last week.  During the previous weekend, the target most often used Internet from midmorning to afternoon, and these women are also on the Internet earlier in the morning.

28


Internet Activities

Vertical %

Index

Travel Airline/car/hotel info 15.5% 157 Entertainment Blogs/blogging 12.7% 134 Digital imaging/Online photo 14.2% 158 albums Movie reviews/ information 19.3% 168 Internet Radio 8.8% 128 Connecting with Others Email 70.4% 124 Personal ads/Dating services 2.2% 146 Information and Research Medical services/Information 14.7% 174 News/weather 45.5% 126 Gathering information for 27.3% 164 shopping Make a purchase 23.5% 151  The target group uses the Internet for travel information, entertainment, music, connecting with others, research, news, and shopping.

Websites Visited

Vertical %

Index

Research About.com 3.0% 192 Webmd.com 5.3% 184 Shopping Amazon.com 20.2% 154 Cheaptickets.com 3.6% 164 Coupons.com 5.1% 176 Fandango.com 3.8% 207 Overstock.com 4.3% 178 For the Home Foodnetwork.com 5.5% 169 HGTV.com 3.1% 212 DIYnetwork.com 1.4% 203 Connecting with Others LinkedIn.com 3.0% 144 Evite.com 2.9% 273 Facebook.com 44.9% 139 Travel Travelocity.com 3.7% 173 Expedia.com 5.3% 182  Specific websites that the target is likely to visit include ones for research, shopping, home, connecting with others, and travel. 29


Media Strategies 30


Network TV: Early Morning    

Based on Simmons data, the target women are likely to watch early morning TV. Early morning television advertising rates are one of the most inexpensive dayparts. This is an excellent way to reach the target without exhausting the budget. Out of Reebok’s top three competitors, Adidas is the only brand that uses national television advertising, meaning that there is not a lot of clutter for similar brands. Seeing an advertisement for an athletic shoe during the morning will be wellreceived because the viewers have the entire day ahead of them, and this would probably be the most likely time of day to exercise. Since the target is likely to be homemakers, they will be more engaged with the ad because they are not distracted while getting ready for work.

Network TV: Primetime     

Simmons information shows that a large percentage of the target women watch television during primetime, so this is an opportunity to reach many active women. The reach achieved here is worth the higher cost of advertising during primetime. Puma and Asics do not allocate any money towards national television advertising, so Adidas would be the only comparable brand to have advertising during this time. Having ads in well-liked primetime shows will help viewers associate the product with a show that they enjoy. Since the product has a unique design, viewers will be able to see the visual features of the ZigTechs.

Women’s Magazines    

Several fitness magazines have incredibly high indexes, indicating that active women are likely to read certain types of magazines. Women’s magazines are fairly inexpensive, so this is a good way to reach women through a high-quality medium. By incorporating magazine ads into Reebok’s media plan, this ensures that Reebok does not get overpowered by the competitions’ advertisements. Reebok can benefit from the fact that some magazines have special issues, such as The Fitness Issue.

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Internet: Targeted Sites    

Although the target is not especially likely to make a purchase from an internet ad, this still gives exposure to ZigTechs and increases their top-of-mindedness. Internet ads are pricy, but they are able to reach the woman that is most likely to buy these shoes at a later time since these advertisements are on targeted websites. Reebok has the highest spending for Internet out of the top three competitors, so women who spend a lot of time online will be most likely to receive these messages. These advertisements will all be on credible, trusted websites that the women are likely to visit.

Spot TV: Primetime 

The heavy-up markets will have higher exposure to the ads during primetime because most of the target’s favorite TV shows air during primetime.

Media Mix National Campaign $5,676,000

$3,712,000

Network TV: Early Morning (12%) Network TV: Primetime (47%) Women's Magazines (23%)

$6,975,400 $14,564,200

Internet: Targeted Websites (18%)

Heavy-Up Markets $1,902,300

$3,712,000

$5,676,000

Network TV: Early Morning (11%) Network TV: Primetime (45%) Women's Magazines (21%)

$6,975,400

$14,564,200

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Internet: Targeted Websites (17%) Spot TV: Primetime (6%)


CPMs by Medium Network Television: Early Morning $33.07 Network Television: Primetime $73.42 Women’s Magazines $50.06 Internet: Targeted Sites $122.20  The CPMs for early morning are low, which means that the target will view the advertisements at a key time during the day.  Primetime CPMs are still relatively low, which means that a large portion of the target audience will be exposed to the message in a cost-effective way.  The CPMs for women’s magazines are low, especially considering the advertisements are P4CB.  Although the CPMs for Internet are high, these advertisements will serve as a reminder and keep Reebok fresh in the target’s mind.

National Monthly Reach, Frequency and GRPs February, March, September, October, November Reach 78.2% Frequency 3.1 GRPs 239  During the months of February, March, September, October and November, the national reach is nearly 80% and average frequency is about 3.

National Monthly Reach, Frequency and GRPs January, April, May, June, July, August, December Reach 74.8% Frequency 2.6 GRPs 194  During January, April, May, June, July, August and December, the national reach is almost ¾ of the nation, and average frequency is 2.6.

Monthly Reach, Frequency and GRPs for Heavy-Up Markets January, April, May, June, July, August, December Reach 82.8% Frequency 3.0 GRPs 244  For the heavy-up markets during January, April, May, June, July, August and December, reach is over 80% and average frequency is 3.

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Heavy-Up Market Details Colorado Springs, CO Denver, CO Minneapolis-St. Paul, MN Baltimore, MD Raleigh-Durham, NC Charlotte, NC Portland, OR Eugene, OR Spokane, WA Seattle-Tacoma, WA San Francisco, CA San Diego, CA Los Angeles, CA Fresno-Visalia, CA

0.29% 1.31% 1.51% 0.97% 0.92% 0.92% 1.02% 0.21% 0.36% 1.58% 2.14% 0.93% 5.0% 0.5%

Total 17.7% of US Households  Western states, such as California, Colorado and Oregon are likely places for the target demographic to live.  Minnesota, Maryland and North Carolina are other states where the target women are likely to live.

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Recommended Television Shows       

America’s Next Top Model The Bachelor The Biggest Loser Good Morning America Parenthood Glee Modern Family

Recommended Magazines      

Cooking Light Fitness Self Shape Cosmopolitan Real Simple

Recommended Internet Sites       

Amazon.com Cheaptickets.com Foodnetwork.com HGTV.com DIYnetwork.com Evite.com Facebook.com

Recommended Creative Units     

Early morning commercials on network TV will be 15 seconds. Network TV ads during primetime will be 15 seconds. Advertisements in women’s magazines will be full page four color bleed advertisements. Internet ads for targeted websites will be banner ads. Primetime ads for heavy-up markets will be 15 seconds.

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Non-traditional Media       

The current budget adds up to $32,829,800. With a budget of $34MM, there is $1,170,200 left over. This remaining portion of the budget will be used for Internet radio advertisements on mobile devices. Many active people listen to music, such as Pandora, on their mobile device during their workouts. If possible, the ads will be limited to women who are near the target’s age range. This will be based on the demographic information gathered when registering. By selecting stations that play workout-type music, the ad will appear to women who are already active. Many, if not all, of the advertisements are videos on mobile devices, so this highlights the distinctive visual component of the shoe.

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Appendix (1): Lipson, A. “Footwear-US-November 2010.” Mintel. (2010). Web. 25 Sept. 2013 (2): Lipson, A. “Purchases of Sneakers/Athletic Shoes.” Mintel. (2010). Web. 25 Sept. 2013 (3): “Reebok.” Wikipedia. 20 Sept. 2013. Web. 25 Sept. 2013. (4): Business Wire 2010. Reebok Debuts ZigTech - An Energy Drink for Your Feet. [Press Release] Feb. 5, 2010. Retrieved 25 Sept. 2010 (5): "Reebok Women's ZigTech 3.0 Shoes." Reebok, 2013. Web. 26 Sept. 2013. <http://shop.reebok.com/us/product/women-zigtech-3.0-shoes/NT085>. (6): "Women's Reebok ZigTech Shark 3.0 Running Shoes." Finishline, 2013. Web. 26 Sept. 2013. <http://www.finishline.com/store/checkout/cart.jsp>. (7) Experian Simmons. (2011). Spring 2011 National Household Consumer Survey adult survey 12-month [Data file]. Retrieved from http://oneview.experian.com (8): “Reebok International Ltd.” Hoover’s Company Records. 2013. Retrieved 25 Sept. 2013. (9): Nike Free 3.0. Nike, 2013. Web. 26 Sept. 2013 (10): Mobium Elite Glow Women's Running Shoes. Puma, 2013. Web. 26 Sept. 2013 (11): Women’s Skechers GOrun 2. Skechers, 2013. Web. 26 Sept. 2013 (12): Women’s Adidas Energy Boost Shoes. Adidas, 2013. Web. 26 Sept. 2013 (13): Women’s Memory Deluxe 3. Fila, 2013. Web. 26 Sept 2013 (14): Gel-Super J33 TM. Asics, 2013. Web. 27 Sept 2013

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Reebok ZigTech Media Plan