Felicia Garcia, Lynsey Hentrich, Fanny MAzna, Morgan Nickles & Melanie Early (SIU Graduates & Undergraduates - Spring 2016)
Table of Contents I. Kohlâ€™s History and Research Kohlâ€™s History Page 3 Vision and Mission Page 4 Products and Services Page 5 Current Marketing & Advertising Page 6 SWOT Analysis Page 7 Competitors Page 8 II. Consumer Research Research Findings Page 10 & 11 Target Audience Page 12 III. Creative Objectives & Strategies Print Ads Page 15 & 16 Radio Ad Page 17 TV/Digital Online Ad Page 18 Events and Public Relations Page 19 & 20 Website Page 21 Pretest Results Page 22 IV. Media Plan Objectives & Strategies Page 23 Budget Allocation Page 24 & 25 Media Plan Page 26 V. Evaluation Page 27
Company History & Research
Kohl’s History Fast Facts • • • • • • • • • • • • • • • •
Founded by Maxwell Kohl in Milwaukee, Wisconsin in 1946 The 1st Kohl’s store was a supermarket 1st department store opened in 1962 1972: British-American Tobacco Company took a controlling interest in the company 1979: The Kohl family left the management of the company 1986: Group of investors purchased the company from British-American Tobacco and took it public in 1992 2nd Largest department store by retail sales in the U.S. (right after Macy’s) Headquarters located in Menomonee Fall, Wisconsin Current Chairman/CEO is Kevin Mansell 140,00 employees throughout 1,146 stores in 49 states Loyal customer base 21 million unique shoppers Top 10 Favorite Online Retailer Offer one stop shop place for deals “Expect Great Things” was the slogan from 2010 to 2014 Wide range of brands for more audiences “Find Your Yes” slogan beginning in 2014 to present
Vision “We not only offer the best merchandise at the best prices, but we’re always working to make your shopping experience enjoyable.”
Mission To be the leading family-focused, value-oriented specialty department store offering quality exclusive and national brand merchandise to the customer in an environment that is convenient, friendly, and exciting. Kohl’s strives to embrace the core values that have long-defined our mission in this industry. We look toward the future, but remain principled in the past.
Corporate Responsibility • Every purchase helps the kids • 100% of net profits of certain items go to kids • Hospital partners • Offers car seats, healthy eating programs, etc. • Associations in action • 8000 unique non-profit organizations
• Environmental initiatives • Eco friendly stores • Use less power • Some stores are solar powered
Kohl’s History Products 12 Different Departments 1. For the home 2. Bed & Bath 3. Furniture 4. Women 5. Men 6. Kids 7. Juniors 8. Baby 9. Shoes 10. Toys 11. Jewelry and Watches 12. Sports Fan Shop
• • • • • • •
Same-Day Delivery for online purchases in select markets Buy online, Pick Up in store across all channels Accepts Apple Pay in Store Redesigned Mobile Kohls.com Site and Tablet App Offers daily ads Order Tracking Enhanced Mobile Payment Options
Past Marketing & Advertising Kohl’s multi-year strategic Greatness Agenda, which commenced in late 2014/ early 2015, aims to drive its top line growth. The first year of Kohl’s growth strategy included the following: • Launch of the new ‘Yes2You’ Rewards loyalty program • Earn points when you shop • Points become rewards cash • Roll-out of an expanded and enhanced beauty department • Expanding beauty sections by carrying prestige brands, like Lorac Cosmetics, Bliss, Cargo Cosmetics, Pur Minerals Makeup, and Fekkai hair care. • Made improvements to 500 of its 1,164 stores, which include a larger beauty department that is 500 to 800 square feet • Launch of a new mobile app • Allows users to access their account or shop at anytime, anywhere. • Has a mobile wallet feature where shoppers can scan in their Kohl’s cash rewards and discount codes and simply present the wallet on the app at checkout in the retail store. • Kohl’s uses an indoor positioning system which integrates with the consumer’s prior shopping behavior. • This system tracks the consumer in the store and data based on previous shopping habits and feeds information into the system which in turn provides the consumer with relevant offers that may inspire or influence a purchase. • Focus on the active and wellness business, and the launch of several national brands, including Fit Bit and Madden In October 2015, the company announced new initiatives under its Greatness Agenda strategic framework: • The company aims to offer unique assortments in its stores based on local preferences, to focus on the women’s apparel business, to launch new store formats and distribution channels, and to enhance digital capabilities. An improvement in the company’s sales driven by these initiatives could positively impact its valuation. Kohl’s has a brand new way to segment customers, and is shifting to a more personalized and targeted messages, with a renewed emphasis on loyalty. • Commercial: http://www.ispot.tv/ad/786q/kohls-active-bust-a-brand-new-move-song-by-junior-senior
SWOT Analysis Strengths
Merchandising relationships Prices Loyal customers Recognizable brands Good quality merchandise Constant promotions and discounts
• Customer service • Store clutter • Plain Logo / Brand has older feeling
• Diversity • Online growth • Make a connection with millennial shoppers (and college students) • Advertise more online / social media • Increase campus involvement
• Competition • Competitors are taking discount and promotional ideas • Other stores may come off as having better brands and better brand appearance
• • • • • •
Competitors One of the nation’s largest apparel and home furnishings retailers who are focused on the Company’s three strategic priorities of strengthening private brands, becoming a world-class omnichannel retailer and increasing revenue per customer. JC Penney Cares, is a non-profit organization committed to helping children succeed by keeping them safe, healthy and engaged beyond the classroom. “Beyond the classroom” means making sure children across the country have what they need to succeed... everything from basics to the greatest of experiences.
Programs: Partners in Time (employee volunteer program that caters to community needs to make a difference) **Macy’s has many other programs like Matching Gifts, and also contributes to a sustainable environments (Just like Kohl’s and JC Penney)
TJ Maxx- offers men’s, women’s and children’s apparel and shoes, as well as other areas such as toys, bath and beauty, accessories, and home products ranging from furniture to kitchen utensils. Through in-store fundraising programs, local store support of community events and corporate donations, T.J.Maxx has helped raise funds and awareness for charitable organizations that work to improve the lives of those who count on their support. TJ Maxx also has a Donation Program
Target Audience Primary • • • • • • • • •
Millennial / College Students in Carbondale. IL location Recent graduates Male and Female Busy Fashionable / Always on trend Likes to hang out with friends Likes to be active Wants to save money Looks for a one-stop shop store for items
Secondary • • • • • • •
Adults and Families Male and Female Single and Married Looks for one-stop shop to save time and money Active Family oriented Professional
Creative Objectives • Increase brand awareness (and brand reminders) by 10-15% during next season (June-September) • Re-brand Kohl’s as a fun, up to date retail store with a fun, fashionable personality using color scheme • Print and TV ads will target in on 10% of millennial shoppers to consider Kohl’s
Print Ads will feature a bold photo and simple text highlighting select pieces of clothings, house-
hold items, etc. TV ad will be similar to print ad and feature a song and theme that will attract millennial shoppers.
One event that will be held will attract the family demographic, while another event will attract the
college student demographic. These events will showcase and highlight Kohl’s items and offer a free reusable bag to show Kohl’s sustainability efforts and encourage attendees to earn discounts in store.
Radio Ad Client- Kohl’s Department Store Campaign- “Kohl’s Bags for Bags” Duration- 30 seconds Format- Radio (Local)
-Referee whistle (upbeat music)
-Attention Saluki fans and Kohl’s shoppers! Are you ready to earn money just for showing off your saluki spirit?
-Fans cheering (upbeat music)
-Kohl’s of Carbondale will be hosting a Bags for Bags tailgate near the alumni tent before Saluki football!
-Sand bags from game dropping on wooden board (upbeat music)
-More cheering (upbeat music)
-Upbeat music continues
-We want you to come show us what you’ve got. We’ll even give you a free Kohl’s reusable Karrier Bag that can get you 5% off your in-store purchases. -Anyone to take a picture of their new Kohl’s Karrier Bag with the hashtag #Kohlsbagsforbags will have the chance to win $20 in Kohl’s Cash! -We’ve got spirit! Do you? -Check out our store website at kohls.com or siusalukis.com for tailgate dates and times.
-Upbeat music stops
-Whistle blows and cheering proceeds
-Kohl’s: Arrive Expect Great Things in Style
TV/Digital Commercial Ad 1.
SFX: Middle by DJ Snake Model takes off sunglasses
SFX: Middle by DJ Snake In Slow motion model twirls
SFX: Middle by DJ Snake In slow motion model wipes forehead after set
SFX: Middle by DJ Snake Cut to new model doing sit ups 6.
SFX: Middle by DJ Snake Cut to new model sitting on rock looking away
SFX: Middle by DJ Snake Model smiles into camera and Kohlâ€™s logo appears
Events & Promo Items SIUC Tailgating - Kohl’s Bags for Bags • Kohl’s will set up a tent with hacky sack boxes • Students are encouraged to tailgate and play a game of bags before a Saluki Football game • Students or fans that play a game receive a reusable Saluki Kohl’s bag • If students take a picture and use the hash tag #KohlsBags on Instagram and Twitter, they are entered into a drawing to win $10 Kohl’s cash.
• Games to Attend: • September 17, 2016 (Family Weekend) • October 22, 2016 (Homecoming) • October 29, 2016 (Black Out for Cancer Game) • November 19, 2016 (Senior Night) Set up will be by the Alumni Tent We want to be where the crowds are gathering most
Kohl’s Kickin’ for Kids
• Event will take place at Carbondale Superblock • May 14, 2016 • Proceeds will benefit the Boys and Girls Club in Carbondale • Soccer Tournament • 2 leagues • Family league • Student/Saluki League (High School and College Students) • All teams will receive their choice of Kohl’s reusable shopping bag • Refreshments will be provided • $5 per team member • Guaranteed to play 2 games
Press Release RELEASE MAY 1ST May 14, 2016 Contact: U & G Creative 618-987-6543 email@example.com Kohl’s Kickin’ for Kids Soccer Tournament Carbondale, Illinois- The local Carbondale Kohl’s is giving back to the children of Southern Illinois. In efforts to raise money for the Boys and Girl Club, Kohl’s will be hosting a soccer tournament at the Carbondale Superblock Complex. This event will take place on May 14th from 10:00 a.m. to 3 p.m. There will be two divisions that individuals can participate: Family and Saluki. The family division is for families with up to 5 members. The Saluki division is for high school and college students. The entry fee will be $15 per person. Each participant will receive a t-shirt and a free Kohl’s reusable shopping bag. Concessions will be available for purchase. Bring your kneepads, cleats and be ready to support a good cause with the Carbondale Kohl’s. ### U & G Creative is a team of experienced marketing strategists, writers, designers, web, and print experts who seek to represent their clients in a unique ways. Contact them at firstname.lastname@example.org or call 618-987-6543
Pretest Results A focus group of ten participants took place to examine and test the creative. 6 females and 4 males College undergraduate and graduate students Print ads were effective, different from current and past Kohl’s campaigns Commercial was effective and fun, song was attracting
“The ads are fresh and fun, I believe they’ll catch the attention of college students and young professionals, especially the Commercial!” - Female, age 22 “The events are interesting and would benefit Kohl’s within the college community.” - Male, age 23
Media Plan Objectives • Reach 10 - 15% college student and millennial shoppers to recognize the importance of Kohl’s and what they offer • Reach 15% of families to remind them that Kohl’s is their one-stop shop for everything • Increase sales by 10 - 15% during next season (June - September)
Strategies Online and digital advertising will have the most media spend. Kohl’s primary target audience is online, therefore the number of advertising must be large. TV commercials, print and out-of-home must have Kohl’s presence to attract both target audiences. Media schedule will run from June to September (4 months).
Budget Allocation Print: $5,505 • NEWSPAPERS = $1,505 • Daily Egyptian ($1,200) Sponsor for Crossword= $10 per day * 35 days = $350 Inserts = $85 per $1,000. $85 * 10 = $850
• Sponsorships with Saluki Athletics = $3,000 for 3 months
• Southern Illinoisan ($305.00) 12 Inch – 3 Month Agreement $305.00 (2 Print Ads per Week plus 50,000 monthly online ads)
• River Radio $11 (per 30 sec commercial) 5 radio ads per day * 7 days in one week = 35 ads per week *$11 = $385 per radio station * 5 radio stations = $1,925
• DIRECT RESPONSE = $4,000 • 1 week in August = $4,000 (.40 * 10,000 household addresses)
Out-of-Home/Event: $6,000 • Billboards = $5,000 ($5,000 per billboard for 4 weeks) 2 wks June/ 2 wks Aug. • Food/Drinks = Reach out to local businesses to donate or sell products at Soccer Tournament Volunteer Compensation = $500 (10 volunteers at $50 * 10) Employee Compensation = $500 (10 employees at $50 * 10)
TV (Local): $10,900 • Local TV = $6,000 (30secs or $200 * 10 Shows June - Sept three times a week ( * 3 ) for AM and Late Night newscasts)
• News (30secs for $350 * 14 (two newscasts per day) = $4,900 per week
Online/Digital: $20,316 • Daily Egyptian Online = $1,000 Leaderboard Online = $300 per month * 2 months =$600 Large Rectangle = $200 per month * 2 months = $400 • Facebook Ads / Boosted Posts = $1,220 (Cost-Per-Impression. Daily Budget of $10 for 122 days ) • Facebook Retargeting = $2,500 (2,500 for 4 weeks or 1 mo.) • Search Engine Optimization = $2,396 (599 per month * 4 months) • Google Adwords (Pay-Per-Click) = $1,800 ($15 per day * 30 days in a month = $450 * 4 months) • Pandora = $3,750 ($15 per audio/visual ad * 250 ads) • Spotify = $2,000 ($10 per audio/visual ad * 200 ads)
Budget Allocation • Hulu Ads & Sponsorship = $2,250 $45 Cost per Thousand ($45 * 50 • Instagram .06 * 40,000 views = $2,400 • Mobile App Advertisements (Game Apps) = $1,000 (Cost Per Click.Average $1 * 1,000 clicks ) Advertisements on the top downloaded apps: • Clash of Clans • Game of War • Candy Crush Saga • Covet Fashion
Production: $1,900 •Production cost for graphics, TV and radio commercial can be $300 * 3 = $900 • Reach out to SIU film/ photo student and graphic artists for design competition $300 for winners • Bags $1,000 (Merchop ) • On Campus Promo Team = $0- Already in progress Send Store Associates during their shifts to be on campus • Hand out info or speak to students • Have a table at different buildings on campus
Media Plan 2016 SUNDAY START DATE 1. ONLINE/DIGITAL Facebook Ads Facebook Retargeting Google Adwords Search Engine Optimization Pandora Spotify Hulu Ads and Sponsorships Instagram Ads Mobile App Advertisements Daily Egyptian Online 2. TELEVISION Local TV 6 P.M. News & 10 P.M. Newscasts 3. PRINT (Newspapers & Direct Mail) Daily Egyptian Southern Illinoisian Direct Mailings 4. OUT-OF-HOME Billboards Events 5. SPONSOR AD Saluki Stadium 5. RADIO River Radio
Evaluations In order to accurately measure the progress of the new Kohlâ€™s Campaign, we plan on having a social media monitor to manage the number of click through, likes, shares and comments. Print Ads and Commercial ads will be monitored via Nielson data as to how many actually viewed the advertisement. The events will be monitored by keeping track of the number in attendance (adults and children) and then the stores will be monitored to see if sales have increased. All progress will be tracked so that Kohlâ€™s can evaluate the number of sales, consumer increase, and how many actually have used the eco bag to shop instore or to use discounts.
Created for MCMA 566 Brand Management 2016