advertising media plan
2010
Carolyn Siska Sarah Schubert Brad Ulrich
advertising media plan 2010
A&F
TABLE OF CONTENTS Situational Analysis 6 Marketing Goal 8 Media Objectives 8 Media Strategies 9 Media Tactics 10 Media Scheduling and Cost Flowchart 12 Budget Sheets 14 Plan Performance 16
Summary 17 Appendix 19
Situational Analysis product evaluation Abercrombie and Fitch is known for selling upscale men’s, women’s and kids casual clothes and accessories. There are 1,000+ stores located mostly in malls, but products can also be bought via catalog and online (Hoover’s). target market (MRIplus ) Demographics • age: 12-17 • sex: male and female • race: predominantly white • marital status: single • education: in school Psychographics • They have attended some college. • Their occupation of choice is business related with a household income of $150,000+. • They have owned their house for in-between 1-4 years. Geographics • Nationwide Consumer Profile • guy: Kyle is 17 years old and loves sports. He enjoys listening to rock and rap. He likes hanging out with chicks. In his free time, he likes to work out and play video games. He watches MTV and ESPN. • girl: Brittney is 16 years old is an avid shopper. She enjoys listening to pop and rap. She watches MTV and One Tree Hill. In her free time, she likes to hang out at the mall or go tanning. sales history 2008: Revenues for the fiscal year totaled $3,540.3 million, a 13% decrease from $3,749.8 million the previous year. Abercrombie and Fitch reported negative earnings (Abercrombie and Fitch Investors). 2007: Abercrombie and Fitch reported $3,749.8 million in revenue at the end of the fiscal year, a 1% decrease from the previous year. They are ranked number 602 among the Fortune 500 companies in 2007. (CNN Money)
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product distribution Abercrombie and Fitch has grown from a national chain to an international chain. They now operate out of London with one location and Canada with three locations. Construction is underway to open more stores outside of London later this year. An Abercrombie and Fitch store is scheduled to open in Tokyo in late 2009. SWOT Strengths • Abercrombie and Fitch has been around for more than 100 years and it is still able to supply the trendy clothes that people want (Funding Universe). Weaknesses • The target market is specific, and it is hard to target the specific demographic. Threats • Due to the economy, the company is struggling because it produces luxury products. • The All-American look isn’t as popular anymore with more people changing to the sophisticated international look. This opens the door for companies like Urban Outfitters and American Apparel. Opportunities • Between Ruehl and Hollister, these subgroups split the revenue of Abercrombie and Fitch, the parent company. competitive analysis 1. American Eagle targets 15-25 year old girls and guys with high-quality, trendy clothing. They operate more than 954 stores in the US and Canada. They reported a loss of $111,878 thousand in the 2008 fiscal year. (American Eagle Outfitters) 2. Aeropostale is a mall retailer that provides activewear apparel to its target of 14-17 year old young men and women. They operate more then 800 stores in the U.S. and Canada. Aeropostale reported a gain of $177.7 million in the 2008 fiscal year (Aeropostale). advertising history In the past Abercrombie and Fitch sold safari clothes to Ernest Hemingway and Teddy Roosevelt via its 456-page catalogue. They sent out more then 50,000 copies almost forcing the company into bankruptcy (Funding Universe). In 2003, Abercrombie and Fitch discontinued its U.S. quarterly magazine due to its provocative nature. The company is preparing for the magazine’s 2009 European launch. (Rozhon) Today, Abercrombie and Fitch still sends its catalogs to their target market to reverse declining revenues. (Funding Universe)
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Marketing Goal The purpose of this media campaign is for Abercrombie & Fitch to match last year’s sales and maintain luxury brand status through the economic recession. Media Objectives Target Audience Media will be directed toward both male and female, 12-17 year-old, middle and high school students who are financially dependent on their parents. Geographic Coverage National media will be used because the Abercrombie & Fitch brand reaches across the country with more than 1,000 stores in 50 states. A&F Naturals© distribution in New York, Chicago and Los Angeles will be accompanied by local and online promotion. Seasonality Advertising will run year round and intensify before back to school, Christmas and summer seasons that accompany new product launches – specifically the new A&F Naturals© line in August. Reach & Frequency Optimum reach is 85% with a frequency of five. Frequency will increase to eight during new product launch seasons. Creative Implications Advertisements and promotions must be visually stimulating and feature Abercrombie & Fitch’s sexually charged photographic style. Promotional Support A&F Naturals©, an organically and ethically sourced line, will debut in August in three major DMAs – New York, Chicago and Los Angeles. Local and online advertising and promotion will precede the launch.
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Media Strategies Target Audience Internet, magazines, television and mall display advertising are the best media to reach the target audience. rationale: High school students are likely to watch television (CW and MTV) and surf Web sites (Facebook and MySpace) on a daily basis. Magazines (Seventeen and Sports Illustraed) have high readership within this target. Malls are the primary locations the target purchases clothing. Geographic Coverage National coverage is achieved through Internet, magazines and mall displays. rationale: Internet is no more expensive to advertise nationally than locally. Magazine ads have a long shelf life and have an average reach of four. Abercrombie and Fitch is in each state so it is important to advertise in major shopping areas. Local coverage is achieved through television. rationale: Television is expensive so this medium is only used in the areas the A&F NaturalsŠ line is launched. Pattern of Scheduling To achieve continuity, Internet, magazines and mall displays are used. rationale: These media are relatively inexpensive reach media. Television and outdoor advertisements are used to heavy-up. rationale: Television is too expensive to run year-round, but will be used to increase reach during peak seasonal and promotional seasons, especially leading up to the A&F NaturalsŠ launch in August. Reach & Frequency For highest reach, television and magazines are used. rationale: These media are the best choices to increase reach. For highest frequency, mall displays and Internet are used. rationale: Because of the locations of these ads, greater frequency will be generated. Creative Implications Due to the product type, visual media are used. rationale: Sex appeal is a major brand factor, therefore, it is vital to use visual media. Magazine rates are potentially less expensive using black and white advertisements, which is already part of the creative voice of the brand. Promotional Support Promotions are supported with Internet, television and magazine inserts. rationale: Advertisements are geographically specific with these media, which is helpful in promoting the launch in select locations.
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Media Tactics Magazines Sports Illustrated Seventeen Magazine Full page black and white with bleed Monthly Continuity
Television The CW: primetime MTV: late fringe Gossip Girl or One Tree Hill :30 second spot Weekly Flighting
Internet Facebook Fandango Google Adwords MySpace Rectangle ad Continuity
Mall Displays Top 3 DMAs: New York City: 24 malls Los Angeles: 22 malls Chicago: 20 malls Backlit display Flighting
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media scheduling
& costs Flowchart 12 • Budget Sheets 14
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Media Flowchart
MEDIA Magazine: Seventeen Magazine Sports Illustrated Internet: Facebook Myspace Google Adwords Fandango Non-traditional: Mall Displays Television: MTV- Late fringe CW- primetime TOTAL:
12
January 5 12 19
26
2
February 9 16
23
2
March 9 16 23
30
April 6 13 20
27
May 4 11 18
25
1
June 8 15 22
29
July 6 13 20
27
3 10
August 17 24
31
September 7 14 21 28
October 5 12 19
26
2
November 9 16 23
30
December 7 14 21
Cost 28 $1,008,000 $2,857,400 $4,320,000
$217,800 $7,110,720 $9,425,700 $24,939,620
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Budget worksheets DMA: Nationwide
MTV: Late Fringe The CW: Primetime Magazine: Seventeen Internet:
Magazine: Sports Illustrated TOTAL
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GRP CPP Cost GRP CPP Cost GRP Frequency Rate Cost GRP Frequency Rate Cost GRP Frequency Rate Cost GRP Average CPP Cost
First Qtr
0 0 $0 0 0 $0 96 3 $84,000 $252,000 252 12 $5,400 $1,080,000 192 3 $204,100 $612,300 540 0 $1,944,300
Second Qtr
320 7,407 $2,370,240 300 10,473 $3,141,900 96 3 $84,000 $252,000 252 12 $5,400 $1,080,000 192 3 $204,100 $612,300 1,160 8,940 $7,456,440
Third Qtr
320 7,407 $2,370,240 300 10,473 $3,141,900 96 3 $84,000 $252,000 252 12 $5,400 $1,080,000 192 5 $204,100 $1,020,500 1,160 8,940 $7,864,640
Fourth Qtr
320 7,407 $2,370,240 300 10,473 $3,141,900 96 3 $84,000 $252,000 252 12 $5,400 $1,080,000 192 3 $204,100 $612,300 1,160 8,940 $7,456,440
TOTAL
960 5,555 $7,110,720 900 7,855 $9,425,700 384 3 $1,008,000 1,008 12 $4,320,000 768 3.5
$2,857,400 4,020 6,705 $24,721,820
DMA: New York
GRP Non-trad: Mall Display Frequency Rate Cost GRP TOTAL Average Frequency Cost
First Qtr
0 0 $1,000 $0 0 0 $0
Second Qtr
1,680 24 $1,000 $24,000 1,680 24 $24,000
Third Qtr
1,680 24 $1,000 $24,000 1,680 24 $24,000
Fourth Qtr
1,680 24 $1,300 $31,200 1,680
TOTAL
5,040 18 $79,200 5,040
24 $31,200
18 $79,200
DMA: Los Angeles
GRP Non-trad: Mall Display Frequency Rate Cost GRP TOTAL Average Frequency Cost
First Qtr
0 0 $1,000 $0 0 0 $0
Second Qtr
1,496 22 $1,000 $22,000 1,496 22 $22,000
Third Qtr
1,496 22 $1,000 $22,000 1,496 24 $24,000
Fourth Qtr
1,496 22 $1,300 $28,600 1,496
TOTAL
4,488 16.5 $72,600 4,488
22 $28,600
16.5 $72,600
DMA: Chicago
GRP Non-trad: Mall Display Frequency Rate Cost GRP TOTAL Average Frequency Cost
First Qtr
0 0 $1,000 $0 0 0 $0
Second Qtr
1,300 20 $1,000 $20,000 1,300 20 $20,000
Third Qtr
1,300 20 $1,000 $20,000 1,300 20 $20,000
Fourth Qtr
1,300 20 $1,300 $26,000 1,300 20 $26,000
TOTAL
3,900 15 $66,000 3,900 15 $66,000
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Plan performance Magazines Seventeen Reach: 32 Frequency: 1 GRP: 32 Sports Illustrated Reach: 64 Frequency: 3 GRP: 192
New York City DMA Reach: 70 (given) (Cir.) 8,694,000 x (R) .70= (Univ.) 6,085,800 Frequency: 12 GRP: 840 (R) 70 x (F) 12= 840 Gross Impressions: 6,085,800 x 840 = 5,112,072,000
Combined GRP: 32 + 192 = 224 Combined Reach: .32 + .64 = .96 .32 x .64 = .20 .96 - .20 = .76 Combined Frequency: 224 / 76 = 2.9 Gross Impressions: (Univ.) 31,630,845 x (GRP) 224 = 7,085,309,280
Los Angeles DMA Reach: 68 (given) (Cir.) 12,186,000 x (R) .68= (Univ.) 8,286,480 Frequency: 11 GRP: 748 (R) 68 x (F) 11= 748 Gross Impressions: 8,286,480 x 748 = 6,198,287,040
Internet Reach: 63 Frequency: 252 GRP: 15,876
Chicago DMA Reach: 65 (given) (Cir.) 2,858,000 x (R) .65= (Univ.) 1,857,700 Frequency: 10 GRP: 650 (R) 65 x (F) 10= 650 Gross Impressions: 1,857,700 x 650 = 1,207,505,000
Combined GRP: (R) 63 x (F) 4 = 252 Combined Reach: (Impr.) 20,000,000/ (Univ.) 31,630,845 = .63 Combined Frequency: (# sites) = 4 Gross Impressions: (Univ.) 31,630,845 x (GRP) 252 = 7,970,972,940 Cable Television MTV Reach: 80 Frequency: 4 GRP: 320 The CW Reach: 75 Frequency: 4 GRP: 300 Combined GRP: 320+300 = 620 Combined Reach: .80 +.75 = 1.55 .80 x .75 = .60 1.55 - .60 = .95 Combined Frequency: 620 / 95 = 6.5 Gross Impressions: 31,630,845 x 620 = 19,611,123,900 16
Non-traditional: Mall Displays
Total Combined: GRP: 224 + 252 + 620 = 1,096 Combined Reach: .76 + .63 = 1.39 .91 + .95 = 1.86 .99 x .95 = .94 .76 x .63 = .47 .91 x .95 = .86 1.39 - .47 = .91 1.86 - .86 = .99 Combined Frequency: 1,096 / 94 = 11 Gross Impressions: 7,085,309,280 + 7,970,972,940 + 19,611,123,900 = 34,667,406,120
Medium Magazines Internet Cable TV TOTAL
Combined Reach Combined Freq. Combined GRPs Gross Imp. Cost 76 2.9 224 7,085,309,280 $696,300 4 252 7,970,972,940 $1,080,000 63 6.5 620 19,611,123,900 $6,104,700 95 94 11.6 1,096 34,667,406,120 $7,881,000
Medium Combined Reach Combined Freq. Combined GRPs Gross Imp. Cost Mall Displays 12 840 5,112,072,000 NY DMA 70
$12,000
Medium Combined Reach Combined Freq. Combined GRPs Gross Imp. Cost Mall Displays 11 748 6,198,287,040 LA DMA 68
$11,000
Medium Combined Reach Combined Freq. Combined GRPs Gross Imp. Cost Mall Displays Chicago DMA 65 10 650 1,207,505,000
$10,000
TOTAL COST
$7,914,000
Summary What did we want? We wanted to achieve 85% reach with a frequency of five. During new product launch seasons, frequency will increased to eight. What did we achieve? We achieved combined reach of 94% and a combined frequency of 11.6. In separate DMAs, an average combined reach of 67% and an average combined frequency of 11 was achieved. Why will this plan work? This plan will work because we have increased the advertising reach and frequency. With the launch of A&F NaturalsŠ, we have increased the Abercrombie & Fitch customer base, therefore, increasing sales and awareness of the company.
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appendix Cost Calculations • Rates • Research
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Cost Calculations Magazines Seventeen • year Reach: 32 (Cir.) 2,350,000 x (RPC) 4.38= 10,293,000 10,293,000/ (Univ.) 31,630,845= .32 Frequency: 12 GRP: 384 (R) 32 x (F) 12= 384
Sports Illustrated • year Reach: 64 (Cir.) 3,150,000 x (RPC) 6.45= 20,317,500 20,317,500/ (Univ.) 31,630,845= .64 Frequency: 12 GRP: 768 (R) 64 x (F) 12= 768
• month Reach: 32 (Cir.) 2,350,000 x (RPC) 4.38= 10,293,000 10,293,000/ (Univ.) 31,630,845= .32 Frequency: 1 GRP: 32 (R) 32 x (F) 1= 32
• month Reach: 64 (Cir.) 3,150,000 x (RPC) 6.45= 20,317,500 20,317,500/ (Univ.) 31,630,845= .64 Frequency: 1 GRP: 64 (R) 64 x (F) 1= 64
• quarter Reach: 32 (Cir.) 2,350,000 x (RPC) 4.38= 10,293,000 10,293,000/ (Univ.) 31,630,845= .32 Frequency: 3 GRP: 96 (R) 32 x (F) 3= 96
• quarter Reach: 64 (Cir.) 3,150,000 x (RPC) 6.45= 20,317,500 20,317,500/ (Univ.) 31,630,845= .64 Frequency: 3 GRP: 192 (R) 64 x (F) 3= 192 • 3rd quarter Reach: 64 (Cir.) 3,150,000 x (RPC) 6.45= 20,317,500 20,317,500/ (Univ.) 31,630,845= .64 Frequency: 5 GRP: 64 (R) 64 x (F) 5= 320
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Internet • month Reach: 63 (Impr.) 20,000,000/ (Univ.) 31,630,845= .63 Frequency: 4 GRP: 252 (R) 63 x (F) 4= 252 • quarter Reach: 63 (Impr.) 20,000,000/ (Univ.) 31,630,845= .63 Frequency: 12 GRP: 252 (R) 63 x (F) 12= 756 Television • month MTV Reach: 80 (given) Frequency: 4 GRP: 320 (R) 80 x (F) 4= 320 CPP: 7,407 (given) Cost: $2,962,800 (CPP) 7,407 x (GRP) 320= $2,962,800 The CW Reach: 80 (given) Frequency: 3.7 GRP: 300 (R) 80 x (F) 3.75= 300 CPP: 10,473 (given) Cost: $3,141,900 (CPP) 10,473 x (GRP) 300= $3,141,900
Non-traditional Mall Displays • month New York City DMA Reach: 70 (given) (Cir.) 8,694,000 x (R) .70= (Univ.) 6,085,800 Frequency: 12 GRP: 840 (R) 70 x (F) 12= 840 Los Angeles DMA Reach: 68 (given) (Cir.) 12,186,000 x (R) .68= (Univ.) 8,286,480 Frequency: 11 GRP: 748 (R) 68 x (F) 11= 748 Chicago DMA Reach: 65 (given) (Cir.) 2,858,000 x (R) .65= (Univ.) 1,857,700 Frequency: 10 GRP: 650 (R) 65 x (F) 10= 650 • quarter New York City DMA Reach: 70 (given) (Cir.) 8,694,000 x (R) .70= (Univ.) 6,085,800 Frequency: 24 GRP: 1,680 (R) 70 x (F) 24= 1,680 Los Angeles DMA Reach: 68 (given) (Cir.) 12,186,000 x (R) .68= (Univ.) 8,286,480 Frequency: 22 GRP: 1,496 - (R) 68 x (F) 22= 1,496 Chicago DMA Reach: 65 (given) (Cir.) 2,858,000 x (R) .65= (Univ.) 1,857,700 Frequency: 20 GRP: 1,300 (R) 65 x (F) 20= 1,300
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Carolyn Siska • Sarah Schubert • Brad Ulrich