BUILT FOR THE WILD ONES ADVERTISING MKTG 4650 DR. HUTCHINS DECEMBER 2, 2014
THOMAS GUNTER | EMILY LORD BECCA MORROW | JAKE RIESCHER AMANDA SEYDEN | BRITTANY TANNER MELISSA WALKER
TABLE OF CONTENTS INTRODUCTION ............................................................................................................................................2 COMPANY BACKGROUND .............................................................................................................................2 YETI/INDUSTRY REVIEW ...............................................................................................................................2 DIRECT COMPETITION ..................................................................................................................................3 MODIFICATION TO THE MARKETING MIX .....................................................................................................4 CREATIVE STRATEGY STATEMENT ..................................................................................................................8 IMC MIX ........................................................................................................................................................8 FINANCIAL ANALYSIS ..................................................................................................................................16 MEDIA RATIONALE STATEMENT ..................................................................................................................17 CONCLUSION ..............................................................................................................................................19 WORKS CITED .............................................................................................................................................20
INTRODUCTION BAM Incorporated seeks to reposition YETI coolers and exploit opportunities amongst a different target market. The objectives of our integrated marketing communications campaign are: (1) to increase the new target market’s awareness of our client’s product, and (2) to inform the aforementioned consumers about and effectively differentiate the YETI brand. We plan to accomplish our agenda by conveying that: (1) YETI coolers are durable, high quality products, (2) YETI coolers are easy to customize, and (3) owning a YETI cooler projects a specific image, further enhancing purchasers’ status. Our campaign employs three outlets: event promotions/ demonstrations, print, and Internet (digital advertising and social media).
COMPANY BACKGROUND We are a full service advertising company, and we are passionate about building brands that are diverse, unique, and memorable. Our mission is to discover businesses that desire to expand their products into the sports industry. The BAM Incorporated team consists of specialists from various fields: marketing analytics, brand planning, creative graphic designers, social media managers, and accounting/financial supervisors. We are fully dedicated to expanding your brand, and helping you to launch your company into new, successful markets.
YETI/INDUSTRY REVIEW YETI belongs to the consumer products/services industry, and specifically to the personal cooler industry. This industry focuses on providing consumers with insulated products to keep food and drinks cool. The first portable ice chest was invented by Richard Laramy in1951, and was created to replace wooden drinking buckets commonly used by construction, oilfield, and dock workers. During 1965, plastic coolers were introduced to the market. Numerous companies are involved in the portable ice chest industry, and some well-known companies are: Coleman, Igloo, Rubbermaid, Thermos, and YETI. YETI Coolers, Incorporated was cofounded by brothers Roy and Ryan Seiders in 2006. The two outdoor enthusiasts were determined to revolutionize the industry by creating a cooler
that is both durable and portable. Furthermore, they wanted their product to be of high quality, and appropriate for daily use. The company is privately held, based out of Austin, Texas, and focuses on providing consumers with refrigerated storage with long lasting ice retention. YETI has successfully transformed the everyday cooler into a luxury item. When they first entered the market, the main channel of distribution consisted of niche stores, such as retailers that specialize in hunting products. The brand maintains a wide-ranging product depth constituted by various coolers. Five options exist to fulfill consumer needs: the Hopper, the Tundra, the Roadie, the Tank, and the Collegiate cooler. Prices range from $250 to $1,400, depending on the model selected.
DIRECT COMPETITION The direct competitors we will discuss are Igloo Coolers (Yukon Series) and Pelican 45 Elite. While each company exhibits strengths, weaknesses that YETI may exploit are also present. Igloo’s primary strength is their pricing scheme. Additionally, Igloo employs “cool riser” technology, which distances the cooler further from the ground than competitors’ products, preventing ice from melting at a more rapid rate. Lastly, their website provides a comparison of coolers (including YETI) to persuade consumers to reassess their beliefs regarding the various brands. However, Igloo’s social media presence is rather weak, and fails to offer consumers intangible benefits, such as a sense of community. Pelican 45 Elite’s primary strength over YETI is their warranty. Pelican offers purchasers a lifetime warranty, while YETI offers a warranty that expires after five years. Furthermore, Pelican maintains numerous channels of distribution: Wal-Mart, Home Depot, Amazon, and eBay. Their product mix is more extensive; in addition to coolers, they also sell cases, pro-gear, backpacks, and flashlights. The composition of their product mix increases overall brand awareness, because consumers are able to associate the brand with a greater number of outdoor products. Finally, Pelican’s pricing scheme is narrower, typically ranging from $200 to $350, which makes them preferable when price is a deciding factor. However, their coolers are usually heavier than YETI’s products, and their product line depth is shallow by comparison.
MODIFICATION TO THE MARKETING MIX Current Position and Product Review YETI currently maintains a position in the marketplace that has strategically defined a clear market segment. With the combination of their integrated marketing communication campaign, product lines and product mix, and overall brand image, the company has created an image of the brand that is durable, functional, and made for the outdoors. Furthermore, the intrinsic and intangible benefits that YETI prompts within the consumer contributes to the fostering of brand loyalty. Their positioning strategy is consumer focused, as opposed to competitor focused. The existing slogan, “Built for the Wild,” reflects their concentration on the “extreme outdoorsman” market segment. An excellent example is illustrated in the banner advertisement below. The banner aims to promote the collegiate cooler line, hence the University of Alabama emblem. Many characteristics of YETI’s current target market are visible; the audience assumes the man in the ad is well educated. His education enables him to earn a high discretionary income, and-thus, purchase a deep-sea fishing boat, along with all the necessary equipment. Furthermore, the man in the ad is an avid fisherman that has cultivated a lifestyle that allows him the time to enjoy a leisurely hobby.
! New Product Design Repositioning a brand requires modifications to the marketing mix. These adjustments will occur with both product and promotion. Concerning the product, modifications will occur to attract and benefit the new target market; consumers will be able to customize their cooler via the
YETI website. For example, after selecting the desired model, customers should be able to choose the college logo and its placement, and then designate the color(s) of the cooler. We have created the ad below to demonstrate how Kennesaw State University students might choose to customize their coolers.
! Target Market Analysis To reposition our product, an analysis of the desired target market is necessary. For the collegiate line, we have analyzed primary and secondary segments. While these segments differ demographically, their behavioral and psychographic characteristics are similar. Primary The primary target market is alumni of SEC and ACC universities. Furthermore, the alum we are targeting will maintain a sense of institutional pride; they are college sports fans with an affinity for their teams and schools. This segment consists of season ticket holders that may be emotionally affected by the wins/losses of their preferred team, due to high-involvement. Individuals in this segment purchase related apparel items and support their teams during the off season.
Geographic • Suburban population density
Behavioral • Benefits sought are: image enhancement, value, functionality, sportiness, and excitement • Medium product usage • “Game day” occasions
Secondary The secondary market consists of current students at universities with high ranking football teams. This segment is similar to the aforementioned segment in that they also maintain an affinity for their university and its team. The individual in question is young, lively, and a sports enthusiast. He or she plans and prepares for each game day. Sharing the experience with peers and friends enhances his/her quality of life. Attending games builds friendships, loyalty, and a positive self-image. These fans will be at the game, rain or shine, win or lose. Demographic • Male and female • College students • American • Annual income of $12,000-$30,000 • Age 21-29 Geographic • Urban population density
Psychographic • Outgoing, energetic personality • Physically active • High-involvement sports fan lifestyle • Motivated by school pride, a desire to ‘belong,’ status, and the experience of tailgating Behavioral • Benefits sought are: image enhancement, value, functionality, sportiness, and excitement • Light to medium product usage • “Game day” occasions
Targeting and Positioning
The two aforementioned market segments share a strong characteristic: an affinity for their college football teams. Attending games is something both parties look forward to, and the experience of the event enhances their self-esteem and image. Since there is a strong relationship between the experience and the tailgater, the opportunity for YETI to penetrate these segments with a product that will enrich game day exists. YETI collegiate coolers are purchased to improve game days, not just to keep beverages cold. BAM, Incorporated suggests a two-fold positioning strategy. First, our IMC campaign will concentrate on positioning the brand utilizing product attributes and benefits. While this includes the functional attributes of the cooler, it also capitalizes on the intrinsic benefits consumers seek. This will differentiate the YETI brand from competitors, such as Igloo and Pelican. Consumers should desire to purchase YETI coolers because they can be customized by school logo and colors. The ability to customize the product enriches the overall experience of the brand, because each cooler is tailored specifically for the customer, producing an item that will be unlike any other at tailgating events. Additionally, ice will last throughout the tailgating weekend. These salient, physical attributes are what consumers consider when comparing YETI to competitors. This positioning strategy includes the intrinsic and intangible benefits the customer receives after purchasing a YETI cooler. The end user will associate the cooler with game day and recall the atmosphere: entertaining, emotional, lively, wild, and meaningful. Furthermore, the YETI collegiate cooler is a status symbol that starts conversations at tailgating events, and enhances the self-esteem of the owner. The second positioning strategy employs a concentrated marketing approach. We will position by product user. BAM, Incorporated will target a very specific market: alum season ticket holders and current university students. Knowing our end customer is vital because a complete analysis will facilitate an understanding of how to effectively market to him/her. The primary benefit of positioning by product user is that consumers will associate ownership with a sense of belonging. Our goal is to position YETI as an experience, not a product. To the consumer, YETI must be a part of his/her tailgate, no questions asked, because the product is
necessary for the tailgating experience. YETI is made for the tailgate, YETI is part of the tailgate, and YETI is built for the wild ones.
CREATIVE STRATEGY STATEMENT The new slogan, “Built for the Wild Ones,” is based on YETI’s existing slogan, “Built for the Wild.” Our goal is to convey that YETI coolers are not just for outdoorsmen, but for anyone that likes to have fun. The phrase “wild ones” targets individuals that participate in tailgating events specifically. While YETI is known as a quality, outdoor cooler, our goal is to reposition the brand as a must have item when preparing for games. YETI products are grizzly-proof certified, meaning the body of the cooler is nature-tested and durable. The promise we will convey to consumers is that YETI coolers will last for years. Furthermore, coolers are available in a variety of sizes, to fit different lifestyles and needs; YETI coolers are large enough to contain all the food and drinks you and your friends will need for your tailgating event, and small enough to carry your lunch to work. Lastly, YETI coolers can preserve ice for up to four days, if the cooler is properly shut using the T-Rex latches. The benefits that Yeti offers to consumers are numerous: enhanced self-image, beverage refrigeration, item protection, and all in a variety of sizes. YETI owners maintain a positive selfimage and belong to the YETI community. Since YETI coolers are a higher-end product, ownership denotes an investment that will be noticed by other purchasers, possibly spurring conversation and connection. YETI coolers feature: T-Rex latches, a never-fail hinge system, permafrost insulation, fatwall design, anchor point tie-down slots, and lip grip handles. Such features ensure that food and beverages will remain protected throughout tailgating events, regardless of the conditions. The hard exterior will withstand any amount of contact, including abuse.
IMC MIX Online Promotions WEBSITE
One strategy we will employ to reach our target market is to utilize websites that share common segments. Since we wish to reach SEC football fans specifically, we must advertise on sites that our segments would visit. ESPN’s website includes a section for SEC news, scores, and blogs. This section is an ideal place for YETI to purchase ad space due to the large amount of traffic the site frequently experiences. ESPN.com is the fourteenth most popular website in the United States (Competitive Intelligence). We propose that YETI purchase an advertising banner on ESPN.com that is both eye-catching and appealing to our target audience. Below is our advertisement prototype.
! The goal of this message is to communicate our revised slogan of “Built for the Wild Ones” in an appropriate manner. In the photograph, college-aged students enjoy a game day tailgate. Our message is that, no matter how “wild” you get on game day, YETI is built to withstand it all. While our message may reach a demographic that cannot afford the product, we will still succeed by positioning YETI as an important tailgating accessory. Also, a benefit of the banner is that it will lead directly to YETI’s website, which will help increase web traffic and sales by ten percent each.
We plan to allocate thirty percent of our budget to online advertising. Doing so will enable YETI to purchase ad space year round, which will serve to inform and remind our target market about the product. SOCIAL MEDIA Our second online strategy is to utilize social media to reach our target market. A survey of 260 college students, conducted in 2013, yielded the following statistics: 95 percent of respondents used Facebook, 80 percent used Twitter, 73 percent used Instagram, and 48 percent used Pinterest (Study Breaks College Media). Since social media is a prominent means of communication among our target market, we will employ eye-catching advertisements that will be promoted via social media channels. By using Instagram or Twitter, YETI will be able to target each school with its own stylized cooler. Below we have provided an example that YETI may use to target university fan bases.
! Social media can also be used to promote contests. According to the aforementioned survey, 47 percent of students will “like� a page to participate in contests (Study Breaks College Media). Once again, we have provided an example of a contest that YETI may implement to engage followers and build excitement.
! Furthermore, social media can be utilized to communicate humorous messages that will appeal to our target market. YETI may post creative, entertaining photos that promote the product. We have provided an example of one such message on the next page.
! The game spotlighted in this post is the 2013 Iron Bowl. This was a historic game for many football fans, particularly SEC fans, and is well known. We are communicating the message that YETI coolers will keep your beer cold, both before and after the game. We plan to allocate five percent of our budget to social media. These funds should be spent on boosting the number of posts on Facebook and Twitter, increasing social media followers, and covering the cost of contests. YETI should market the collegiate line via social media year-round, and increase spending from August to October. Our objective is to increase YETI’s social media following by 35 percent. Print Advertising The next channel we recommend YETI pursue is print advertising. Sports Illustrated Magazine has 3.5 million subscribers, is read by 23 million people each week, and 18 million of
those readers are men. We feel the aforementioned magazine is ideal for YETI because it is well known and respected. Full page, glossy advertisements will showcase YETI’s product in such a way that will resonate with our new market segments. We want to illustrate how the tailgater can depend on the product and, also, become the life of the party. The ad will feature UGA football coach Mark Rich as the celebrity spokesperson. He was selected because he is a noticeable figurehead that our target market will identify with. Additionally, we think it is important to include the social media slogan “#BuildfortheWildOnes” because it will connect readers with YETI’s new social media campaign. On the next page is an example of our print advertisement.
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We will allocate 25 percent of our budget to print advertising. This will allow YETI to use print advertising year-round, with one advertisement per month from November to March, and two advertisements per month from April to October. By increasing the number of advertisements at crucial times during the year (major games and the beginning of the sports season), we will build consumer awareness of the product. Our objective is to utilize print advertising to increase total sales by ten percent. Sales Promotion Face-to-face interaction via sales promotion is a strong option for reaching YETI’s target market. We want consumers to recognize YETI as a respected brand in the tailgating industry. Football is the highest average attended sport, so far, for the 2013-2014 season. Super Bowl XLVIII was viewed by 111.5 million and attended by over 82,000 individuals. Some people tailgate for hours, or days, before big games, so we want to give them something to do while they wait for the game to begin. We will represent YETI at the largest games of the year to personally reach as many consumers as possible. YETI tents will be set up around the tailgating area for demonstrations, giving potential customers the opportunity to ask representatives questions. Forty percent of our budget will be spent on sales promotion events. The reason for allocating a high percentage of our resources to sales promotion is that we believe this approach will be most effective in reaching our target market. Demonstrations would primarily occur from September through January. YETI representatives will walk around the complex and pass out flyers that inform consumers of demonstrations and giveaways that are scheduled to take place that day. At each game, a personalized team cooler for each opponent will be filled with merchandise (cups, t-shirts, and koozies) sporting the YETI logo. A raffle will be held to attract tailgaters to the YETI tent, the prizes being the aforementioned coolers and merchandise. Interested parties will be required to fill out a short form (name and email address), to provide another avenue for YETI to reach potential customers in the future. The grand prize consists of the two customized coolers (one for each team), and will be awarded separately depending on the team each fan supports. T-shirts and cups will be awarded as second place prizes, and third place
prizes will be a YETI koozie. This type of interaction with the target market will allow YETI to obtain more information and immediate feedback. Our objective concerning sales promotion events is to increase sales by ten percent, and YETI’s social media following by 35 percent.
FINANCIAL ANALYSIS We chose the figure of 1.5 million dollars as our entire advertising budget. This figure is based on several factors, including similar budgets across our competitors, estimated sales figures, and potential return on investment. Our budget adheres to a common industry rule of five to seven percent of overall sales. With almost thirty million in estimated sales for the 2013 fiscal year, YETI accounted for approximately five percent of the market share for coolers. YETI’s small market share and cult following among their customers has led to us engineering an IMC campaign that we feel will increase website traffic by ten percent in six months, along with sales by ten percent and social media following by 35 percent in the same time period. Our budget will be allocated to all four of our different channels. Face-to-face marketing will be the largest percentage of our budget at forty percent. We feel that is the most important avenue to increase sales, as YETI coolers are an investment, and people are more apt to spend money on something that has been proven to last forever. Our digital ads are our second most expensive outlet, coming in at thirty percent of our overall budget. The amount of money allocated here will allow us to market YETI coolers on ESPN.com, which will in turn place us firmly in the public eye. As mentioned elsewhere in the paper, ESPN.com is the fourteenth most popular website in the United States (Competitive Intelligence), and is at the top of the sports world. Our online ad will be run in the College Football portion of ESPN’s website, and will reach our intended target market. Print ads make up 25 percent of our budget, and focus on covering our entire potential customer base. Our online and in person advertising appeals to the more hardcore fan, who might potentially go out of their way to see what YETI coolers are all about; however, with our print ads we are looking to target the more casual fan. This print ad will be run in Sports Illustrated Magazine due to its incredible range of readers, and its positive image in America. Lastly, we will devote five percent of our budget to social media marketing. This is an important channel because it is by far the cheapest way to generate additional sales.
The money allocated to this channel will be used mainly for contests, as our aggressive goal to increase social media following by 35 percent will be hard to obtain. The goal here is to obtain a chain reaction of followers, with as much customer engagement as possible.
Budget Allocation
100%
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MEDIA RATIONALE STATEMENT Reach Our print advertisements will be distributed via Sports Illustrated Magazine, which has 3.5 million subscribers. Ads will also be placed on the ESPN website; ESPN currently has 13.2 million Facebook “likes.” We have selected these vehicles because they share common market segments that we are targeting in our campaign. YETI’s Facebook page has 240,000 “likes,” and their Twitter page has 44,700 followers. Our objective to increase web traffic by 35 percent can be measured directly by the aforementioned figures. Frequency Sports Illustrated is a weekly magazine, and we recommend running one or two ads per month, year-round. From April to October ad space should be purchased on a biweekly basis. Year-round advertising seeks to penetrate market segments that may not be reached by social
media or event promotion. The latter increase in spending seeks to influence consumers to buy the product when the message is most timely. As part of the social media campaign, we suggest posting on Facebook and Twitter at least twice a day, at ten o’clock in the morning and two o’clock in the afternoon. High frequency is preferred due to low cost, with the goal of notifying followers in a timely manner of events, generating interest, and developing/maintaining connections with consumers. Geography Our IMC campaign is both national and regional in geographical scope. Print ads and Internet efforts will reach a national audience, while event promotion is restricted to a certain region. The region that we have selected is the southeast, due to the presence of the Southeastern Conference of NCAA football. This region includes the following states: Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, and Tennessee. We have decided to concentrate on the southeast because focusing on a region will allow us to allocate the promotional budget more efficiently and effectively. Greater funds can be spent at each event due to a narrower coverage, and events can be scheduled more frequently. Repeat exposure to our efforts will increase consumer awareness and knowledge, which is our main objective. Scheduling The social media portion of our campaign is scheduled to occur year-round, for one year, with increased activity during the tailgating season (August to October). Since social media will allow YETI to interact and build relationships with consumers, we recommend maintaining these connections during the off season. Social media is preferable to accomplish this goal because of the relative low cost when compared to other elements of the IMC mix. Print advertising will also be scheduled year-round, for one year, with increases in spending from April to October. The purpose of the print campaign is to narrowly target
consumers interested in sports, with a higher annual income, and inform them of the benefits of purchasing a YETI cooler. Advertising will ramp up from April to October so that our message is timely when consumers are considering the purchase of equipment for tailgates. Promotional efforts will be concentrated between September and January, as this time period encompasses the majority of the tailgating season. Events such as these represent forty percent of our advertising efforts, via selling at SEC tailgates. We have selected promotional events because this allows greater interaction and feedback with consumers, increasing the likelihood of awareness, knowledge, and sales. January
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CONCLUSION  We will conclude by restating our objectives, the outlets we plan to employ, and the percentage of resources to be allocated to each avenue. Our first objective is to increase consumer awareness of the YETI brand via our IMC campaign. Second, we seek to inform consumers about YETI coolers and differentiate the brand. The measurable components of our objectives are as follows: (1) increase website traffic by ten percent in six months, (2) increase YETI’s social media following by 35 percent in six months, and (3) increase overall sales by ten percent in six months. We will achieve the aforementioned objectives by means of three outlets: event promotion, print, and Internet (digital ads and social media). Forty percent of our resources will be allocated to event promotion; thirty percent to digital ads; 25 percent to print advertising, and five percent to social media.
WORKS CITED "Competitive Intelligence." Espn.go.com Site Overview. Web. 20 Nov. 2014. East, Andy. "Playing It Cool: The Founders of Yeti Coolers." Austin Man Magazine. N.p., n.d. Web. 01 Dec. 2014. Study Breaks College Media . Social Media Statistics: How College Students Are Using Social Networking . 7 Februrary 2014. 3 November 2014 "YETI Coolers: Number 458 on the 2012 Inc. 5000." Inc.com. N.p., n.d. Web. 01 Dec. 2014. Zaragoza, Sandra. "Yeti's Cool Yet Mighty Roar - Austin Business Journal." Widgets RSS. N.p., 6 July 2012. Web. 01 Dec. 2014.