Hyundai Ioniq Media Plan
Serena Haubrich, Amelia Easterbrook, Kara Ojebuoboh
Brand Background ● Hyundai Motor Company is a division of Hyundai Kia Automotive Group ● Hyundai Motor Company was established in 1967 ● South Korea’s largest car manufacturer ● Sold 4.4 Million vehicles worldwide in 2012 ● Started selling vehicles in North America in 1986 ● Hyundai Assurance Program in 2009
Product Features ● Available in three version of electric and hybrid power ○ ○ ○
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An all-electric plug-in Plug-in hybrid Hybrid power
The base price is expected to start at less than $20,000 Gearbox allows 96% more efficient transmission New and advanced technology Better rear-view visibility than the Prius Forward-collision warning with automatic emergency background
Target Audience
● Primary Audience ○ Young, 20-somethings ○ College Graduates ○ Very first new car ○ Looking for eco-conscious vehicle ● Secondary Audience ○ 30-40 year olds ○ Current owners of a competitive brand ○ “Conquest” target ○ Appreciate eco-friendly vehicles
Competitors
Brand Comparisons ●
Chevrolet Spark ○
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Toyota Prius ○
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Similar pricing to Hyundai IONIQ and is also an entry level vehicle that is ecologically friendly
Nissan Leaf ○
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Known for being a hybrid vehicle with low gas mileage
Honda Fit ○
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Has high U.S. retail sales and competitive pricing
Competitive brand and competitive price range to IONIQ
Ford Focus ○
Leads the market in SOV and SOM
Share of Market Car
Car Retail Sales, US 2014
Share of Market (%)
Hyundai Elantra
108264
13.8
Chevrolet Spark
140808
17.9
Toyota Prius
99578
12.7
Honda Fit
51810
6.6
Nissan Leaf
93539
11.9
Ford Focus
292693
37.2
Category Total Sales
786,692
The Hyundai Elantra share of market is 13.8% which means that compared to others in the market they are selling 13.8% of the cars sold.
Share of Market ●
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Ford Focus is selling the majority of vehicles in this market Hyundai is in third place for selling most vehicles in this market The Focus will be a major source of competition
Share of Voice Car
Total Carline Spend
Share of Voice (%)
Hyundai Elantra
$67,845
13.10%
Chevrolet Spark
$89,769
17.40%
Toyota Prius
$103,557
20.10%
Honda Fit
$19,618
38.00%
Nissan Leaf
$24,909
4.80%
Ford Focus
$210,257
40.80%
Category Total Spend
$515,955
100%
The Hyundai Elantra share of voice is 13.10%, which means in comparison to other competitors we are spending 13.10% of the total amount spent on advertising.
Share of Voice ● ● ● ●
Ford Focus is spending the most in this category Toyota Prius is spending the second most Hyundai is fourth in spending for this category Hyundai might consider spending more to be competitive with Ford and Toyota
SWOT Analysis Strengths: ● Latest and advanced technology ● Customizable/available in three versions: hybrid, plug-in hybrid, and electric to cater towards customer preferences ● Environmentally-friendly ● 100,000 mile powertrain warranty ● Gearbox allows 96% more efficient transmission
Weaknesses: ● Lacks 0-30 mph “zip” of other cars ● Bland look that resembles a Prius ● Lower-quality materials ● Hyundai spends less on advertising than most competitors ● Has a lower share of market than Ford and Chevrolet
Opportunities: ● Significantly lower base price than other eco-friendly cars ● Offers alternatives to rising gas prices
Threats: ● ● ● ● ● ●
Relatively unestablished brand compared to competitors High number of environmentally-friendly car choices in the market New Toyota Prius is being released soon Model resembles other vehicles in its class Ford Focus has a 37.2% Share of Market Ford, Toyota, and Chevrolet spend more money are marketing and have a larger SOV
Hyundai Elantra Brand Development Index ●
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The strongest markets are in Miami, Phoenix, and Tampa The weakest markets are in Orlando and Detroit Miami, Phoenix, and Tampa would be good places to test the IONIQ because Hyundai has high market share in these locations.
Category Development Index The highest CDI’s are in Miami, San Francisco, and Washington D.C. respectively. This means that the category as a whole is strong in these areas. The lowest CDI’s are in Orlando, Detroit, and New York.
Simmons Analysis - Hyundai Elantra ● ● ● ●
18-24, Asian, make $30,000-39,999 a year. Hobbies: education courses, go karting, painting, and going to the beach Preferred Magazines: Elle Decor, PC Magazine, Marie Claire, and other budget travelling magazines. Websites: united.com, chowhound.com, bedbathandbeyond.com
Simmons Analysis - Honda Fit ● ● ● ●
25-34, white and make $40,000-49,999 a year. Hobbies: Playing musical instruments, playing bingo, going to bars/nightclubs, and visiting state fairs Preferred Magazines: Runner’s World, GQ, Sky, and Men’s Fitness They visit websites such as rei.com, wellsfargo.com and ikea.com.
Simmons Analysis - Nissan Leaf ● ● ● ● ● ●
45-54 year old, white, females that have at least graduated college. Married and have a household income of $100,000 or more Main Forms of Media: Internet Spend some time outdoors and listening to the radio Prefered Magazines: Wired, Food & Wine, National Geographic, Texas Monthly, and USA Weekend. Hobbies: Reading gaming magazines, education courses, visiting a zoo, going to bars, nightclubs, and dancing, and gardening.
Simmons Analysis - Ford Focus ● ● ● ● ● ● ●
25-34 year old white, employed males that have some college education. Annual Income: $20,000-$29,000 Hobbies: going to bars, nightclubs, and dancing, going go carting, playing a musical instrument, visiting state fairs, and refinishing woodwork and furniture. They are medium users of the radio and television. Main Forms of Media: Internet, Outdoor Preferred Magazines: Rolling Stone, Men’s Fitness, GQ, and Entertainment Weekly Preferred Websites: hallmark.com, insurance.comparison.org, vevo.com, justjared.buzznet.com, entretenimiento.univision.com, myspace.com, americanexpress.com, and smokerssignup.com.
Simmons Analysis - Toyota Prius ● ● ● ● ● ● ●
55-64 years old, closely followed by 45-54 years, slightly male skewed Mostly Asian or White Completed grad school or college, are married, and homeowners Salary: $100,000+ Preferred Media Outlets: Outdoor and Internet Preferred Magazines: The Economist, The Atlantic and The New Yorker Hobbies: educational activities, including education courses, visiting museums, playing instruments, gardening, and bird watching
Simmons Analysis - Chevy Spark ● ● ● ● ● ●
Employed, single, white, female homeowners Age: 45-54 who have completed high school or some college. Annual Income: $40,000-49,000 annually Main forms of Media: Outdoor, radio and television Hobbies are playing bingo, woodwork, educational courses, scrapbooking and painting/drawing. Self, Fitness, All You, Food & Wine and Martha Stewart Living are their magazine preferences, indicating an interest in food, homemaking and health/fitness.
Objectives and Strategies
Media Objectives
● Who ○ 18-24 years old ○ Male ○ College Graduates ○ Very first new car ○ Looking for eco-conscious vehicle ○ Asian ○ $30,000-$39,999
Where
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Combination of national, regional, and local Local ○ Miami and Tampa- have the highest BDI and highest CDI’s ■ Greatest market for this brand and this type of car National - To create national awareness and conquest other competitor car buyers Regional ○ Greater Miami area ■ Hyundai is a very strong brand in this area ○ Northern California ■ This category is very strong in San Francisco and would be a good place to conquest consumers
When
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January and February ○ ○
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March-May ○ ○
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High pulse of advertising due to seasonality
September-October ○ ○
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Sustaining period Low pulse
June-August ○
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Launch; introductory period Major promotional period
Sustaining period Low pulse
November and December ○
High pulse of advertising due to holiday season
What
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Heavy outdoor users Do not use radio regularly Magazines ○
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Leisure ○
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Education, go carting, card games, painting, drawing, sculpting, playing a musical instrument and going to the beach or lake
PC Websites ○
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Elle Decor, PC Magazine, Arthur Frommers Budget Travel, Petersons 4 -Wheel and Off-Road, Prevention and Marie Claire
Subway.com, chowhound.com, groups.google.com, 123greetings.com, my.msn.com, and buycheapr.com
Mobile Websites ○
Mobileunited.com, bedbathandbeyond.com, mcdonalds.com, bn.com, fingerhut.com, papajohns.com, cbs.com
Budget ● Spend 30% on outdoor spending (Q1) ○ Our audience spends a lot of time outdoors and would be likely to be exposed to Hyundai media ● Spend 10% on internet spending (Q5) ○ The internet will help generate awareness for the IONIQ and its features ● Spend 20% on Print (Q5) ● Spend 40% on television media ○ Television media will reach many consumers who have previously purchased the Honda Fit and the Ford Focus (Q4)
Communication Goal ● Reach Emphasized ○ Because the Ioniq is a new product for Hyundai we want to emphasize reaching the target audience ○ Create awareness through promotion ○ Promote IONIQ features ● Create awareness and preference for IONIQ ○ Attract first new car buyers ● Generate excitement ○ For eco-friendly electric or hybrid economy car
Promotional Requirements ●
Concentrate spending on outdoor media ○ ○ ○
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Internet media ○ ○ ○
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Local billboards will direct drivers towards the nearest Hyundai dealership Advertise in malls, bus stops, and charging stations Help with sustaining the launch activity Use various social media platforms to generate awareness and direct potential customers to the Hyundai website Make banners and website ads that connect customers to the website Videos that highlight features of the IONIQ
Television media ○
Create commercials that advertise locally ■ News channels for local advertisements ■ Purchase spots during popular television programs ■ Help announce IONIQ by displaying features and appearance of vehicle
Media Strategy â—? â—? â—?
Pulsing Heavy Intro for maximum awareness of launch Reach
Print and outdoor are the main forms of media used, while internet and television are supplemental due to their lower media quintiles. This media mix reaches our target audience and secondary audiences and maintains a steady presence in the eyes of consumers. Print will provide national coverage, while television and outdoor focus on local and regional areas. These areas include Miami, Tampa, and San Francisco among others due to their high BDIs and CDIs. The pulsing strategy also focuses on seasonality, specifically the launch, the summer months, and the holiday season.
Media Quintiles
Radio
Quintile 5 (Low)
TV
Quintile 4
Internet
Quintile 5
Outdoor
Quintile 1 (high)
Meet the Primary Audience: Andrew Lee
● Andrew is a recent college grad, age 23 ● Asian ● Hometown: Miami, Florida ● Enjoys reading GQ, going to the beach and go karting with his friends ● Is looking for an eco-friendly car to start his post-grad life
Outdoor ● ● ● ●
Budget: $5,616,000 Placed in San Francisco, Washington DC, Tampa, Phoenix, Miami, Boston, Houston, Atlanta, Denver Based on highest BDI and CDI 100 showings in each market
TV ● ● ●
Budget: $11,879,914. We chose to focus on regional coverage because TV is so expensive, in Miami, Phoenix, Tampa, San Francisco, and Washington D.C. We will focus our coverage among early morning, primetime, sports, late news, and cable dayparts.
Print Budget: $5,908,596
Print ● ● ● ● ● ●
Popular magazines for Hyundai customers and their competitors Magazines reach both male and females, match the target audience, and have high circulation Have effective CPMs Magazines have national reach Consistent flighting; layered in heavy months High Pulses: Covers and full-page color ads ○
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January, February, June, July, August, November, December
Low Pulses: Half-page color ads ○
March, April, May, September, October
Covers
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Start campaign Most impactful High Reach Used in launch and high pulses
Full Page Ads & Spreads
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Used in launch and high pulses High impact and high reach
Half Page Ads
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Less impact Remind the readers
Internet ● ● ● ● ●
$300,000 per general interest site $750,000 per automotive site Mix of leaderboard and skyscraper ads $20 or $25 CPM Websites ○ ○ ○ ○ ○ ○ ○
United.com Chowhound.com Bedbathandbeyond.com Bn.com Fingerhut.com Kbb.com edmunds.com
Impressions ● 75,000,000 general interest ● 60,000,000 automotive ● Total: 135,000,000 Takeovers ● MSN, AOL Total Spent: ● $3,910,000
Added Value ● ●
Run an e-newsletter featuring the Hyundai Ioniq with their digital publication with purchase of 6 placements Bonus ad with purchase of 20 placements
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Website banners with purchase of 2 covers Publication promoted email blasts with 3 placements
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Highlight the Ioniq in the “advertorial” section Feature a Ioniq vehicle at a magazine event with purchase of 5 placements
Budget Breakdown
Outdoor: $5,616,000 TV: $11,879,914 Print: $5,908,596 Internet: $3,910,000 Total: $27,314,510
Appendix
Outdoor Calculations
Outdoor Flowchart
Print Calculations
Print Schedule
Internet Calculations
Internet Flowchart
TV Calculations
TV Flowchart