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Leeds University Business School
Assessed Coursework for LUBS/MATH
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MODULE TITLE:
Media Planning and Strategy
MODULE LEADER:
Kendi Kinuthia
STUDENT NUMBER:
WORD COUNT:
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FROM AUDI A1 TO THE AUDI A1 SPORTBACK ASSESSED COURSEWORK FOR LUBS 5426 MEDIA PLANNING AND STRATEGY
TABLE OF CONTENTS I. Background Analysis
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II.
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III.
Target Audience Specification Media Objectives
IV. Media Mix V. Media Schedule
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VI. Budget Allocation
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VII. Media Evaluation
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VIII. Bibliography
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IX. Appendix
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I. BACKGROUND ANALYSIS MEDIA TRENDS AND ADVERTISING SPEND The total share of total automotive adspend in Europe was of 19%, third in the list versus 51% in North America, 22% in Asia-pacific, 7% in Latin America and 2% in the Middle east & Africa. In addition, this global adspend is destined to different categories and the automotive represents fourth category with most adspend in the world with 9.2% (WARC, 2013).
The most used form of media around the world is still TV which represents 39.4% of the adspend, followed by the internet, newspapers, radio, magazines and finally, outdoor media (WARC, 2014).
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Nevertheless, in the UK, the media with most adspend is the Internet, followed by TV and newspapers. Radio is the least favourite form of media and outdoor is much more used than in other countries.
In the automotive industry, it shows that TV remains to be the most powerful form of media, followed by press and outdoor media (Nairn, A., 2013).
AUDI Audi is part of the Volkswagen Group who has been a car manufacturer since 1909. They introduced their first Audi car named “Audi Quattro” in 1980. The car was successful around the world and it marked the beginning of the brands market share growth.
Audi has always positioned itself as “Vorsprung Durch Technik”; as a brand that believes in progress through technology. Theyʼre perceived as a premium prestige marque for itʼs unique design, quality products and prices. It has been successful since itʼs introduction to the market and has been in the top 5 premium marques for years (TrueCar, 2010). Audi started their communications campaign from 1982-1999; established their own identity and built their German engineering credentials to distinguish themselves from the competition. But they were perceived as an alternative to the leading premium car brands, rather than a unique brand. By the beginning of the millennium, Audi decided to showcase their leading models and used creativity for planning media. Theyʼve not only used traditional forms of media and communication but have also created their 4
own content for their users to engage with. For example, their very own brand-owned TV channel in the UK and being able to personalise your own Audi on their website (Boot, E., et al., 2008).
Audiʼs primarily form of media in advertising is still TV but it has adapted their adverts to the iTV. They continue to use direct marketing because it has proved to have high response rates. In addition, theyʼve started to use mobile advertising and online media in their campaigns because of the high levels of engagement.
II. TARGET AUDIENCE SPECIFICATION The average Audi owner has always been 40-60 year old professional men with managerial positions and an income of atleast £180,000 a year. However, the new Audi A1 Sportback has a different size and design that no longer appeals to the traditional Audi owners. Consequently, the new car is targeted as the premium offer to young urban ABC1 males between 25-35 with high income, are attracted to technology and enjoy the driving experience.
The target audience that has been selected can be referred to as the “Generation Y”, those who are 25-29 years old and “Generation X”, who are 30-35 years old. Both generations are well disposed towards owning a car because it “enhances their lifestyle in an important way” and it allows them to have spontaneous trips (TNS, 2013). They believe that cars have benefits beyond being a form of transportation. Their core values can be classified into three (Moore, H., 2008): savvy, diversity and entrepreneurial mindset.
The target audience is categorized into the “rising prosperity” and “city sophisticates”. They own iPhones, iPads and other smartphone and tablet devices and are considered to double the ownership, of these devices, above national average. They use the Internet on a daily basis and frequently to stay updated on current affairs, shops, music, films and TV shows. “They have a cosmopolitan outlook a enjoy their urban lifestyle. They like to eat out in restaurants, go to the theatre and cinema and make the most of the culture and nightlife of the big city”. They enjoy living in larger cities and love all the opportunities to socialize and spend (ACORN User guide, 2013).
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These customers demand personal attention and products that suit their lifestyle and avoid at all cost mistargeted and misguided promotions. “They expect directness, transparency, authenticity and closeness from the brands they embrace which require brands to stay true to its roots, to be open and respectful and to listen like a friend” (De Ruyck, T. et al, 2013).
III. MEDIA OBJECTIVES In order to set the media objectives of the campaign for the Audi A1 Sportback, itʼs important to state the consumer-decision making process explained in The Media Handbook (Katz, H., 2010): •
NEED: Purchase a new car that responds to their lifestyle.
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AWARENESS: Make potential customers and current car owners aware of the new cars product features. This will make the target audience want to research on the new product and push them to try it.
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PREFERENCE: Things like the possibility to personalise the car online, the brand values, the product features and the reviews of the new car will make the audience choose the Sportback over the competition.
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SEARCH: In Audi centres and online.
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SELECTION: Through the test drives and sales vendors. Also, bloggers and vloggers can play a big part in this stage.
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PURCHASE AND USE: Once theyʼve tried and have tried the Audi driving experience, they will be pushed to purchasing it.
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SATISFACTION: Based on their experiences, they will develop a degree of satisfaction with their new purchase and will purchase the same brand in the future if theyʼre happy.
Therefore, the media objectives for introducing the new car are: •
Generate awareness of the A1 Sportback among 75% of the new target audience within the first 3 months of the campaign.
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Generate product awareness among 50% of the target audience of other Audi car models within the first 3 months of the campaign.
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Gain market-share points from small car segmentsʼ competitors in the next 6 months.
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IV. MEDIA MIX The media mix should be multi-dimensional to provide the audience with a personal appeal and generate a long-term relationship.
TV This target audience mainly watch sports (Football, Formula 1), comedy and factual (The News) (Thinkbox, 2014). Therefore, adverts will be placed in entertainment and news channels such as iTV1, iTV4 and iTV3 and in shows that our target audience can relate to like for example, Top Gear. Also, theyʼll be placed in sports channels like Eurosports in big sports events. The TV adverts will also be uploaded to Audiʼs Youtube channel and theyʼll include a hashtag in order to engage with the customers through social media. As mentioned before, TV is the most-used media channel in the automotive industry because of itʼs most lifelike form in re-creating experiences and show the target audience the product features, itʼs wide reach and exposure and because itʼs the most pervasive media form available (Katz, H. 2010).
OUTDOOR BILLBOARDS Adverts will be placed in locations where our target audience usually goes to, such as, airports, train stations, tube stations, cinemas, theatres, office areas and near upscale restaurants and bars. This form of media is beneficial to the campaign because the size of the billboard will get noticed, the targeted location reinforces the campaign message and adds more exposure and reach.
MAGAZINES Consumer lifestyle magazines with different kinds of topics from music to politics, health to fashion, lifestyle tips to inspiring features and beautiful women such as Forbes, Foyer, Hunger, Esquire, GQ and Loaded. In addition, ads should also be included in Motoring magazines such as Auto Express, Autocar, BBC Top Gear and Evo. Magazines allow us to target our niche market and upmarket consumers who are involved with the publication and retain the information. Information read in magazines tend to be remembered longer than in TV because they tend to trust the magazines more (Katz, H., 2010)
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DIRECT MARKETING Audi Car owners should be aware of the new car and theyʼll be informed through e-mail newsletters and direct mail. This will generate awareness in the traditional target audience.
SPOTIFY The Audi ad will be played to the users of Spotify who are 25-35 years old in the UK. It will assure a targeted reach, high frequency and flexibility for a low cost. In addition, a branded playlist will be created that will contain the latest singles of independent and emerging bands.
ONLINE ADVERTISING AND SOCIAL MEDIA MARKETING Interactive banner ads in the Google adsense network and will appear in lifestyle, technology and automotive websites, blogs and vlogs (Youtube). In addition, ads will also be placed in Google Adwords network and will appear when customers search for keywords like “best car”, “premium car”, “high-tech car”, “best small car”. Finally, Audi already has a successful fan base on their social networks and itʼs important to continue to use them to communicate the new car. Itʼs important to include it in the media mix because it allows us to target the messages to maximize the reach to our target audience and itʼs easy to measure and evaluate.
MOBILE APP Create an app to showcase the new car with the technology of augmented reality. Users will be able to see the car in their driveway through their smartphones and tablets to get a feel of the personality of the car. The app will also have a GPS located map for users to check-in in their favourite locations and review them. This app will be able to synchronize it with the GPS of their future A1 Sportbackʼs. The target audience is always looking for ways to stand out from the crowd and love having the latest technology. This app will help them locate the best locations in town and theyʼll be able to test and see the car. This will generate buzz around the online networks and will increase awareness and reach our target audience.
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V. MEDIA SCHEDULE The media schedule would look something like this: Media Channel WEEK #
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TV Outdoor Magazines Direct Marketing Spotify Banner ads Search marketing Social media Mobile app
TV The first month would be heavyweight and use burst ratings in order to get at least 100 tvrs per week and reach a large group of our target audience quickly. The ads will last 30 seconds. The second month would use the drip model, a lighter weight use of 15 second adverts and in the third month, Audi would be advertise every other week to remind the customers.
OUTDOOR, BANNER ADS, SEARCH MARKETING AND MOBILE APP The ads will be up during the whole campaign period. The mobile app will be launched in the beginning of the campaign and will be shared through online PR and social media throughout the whole campaign.
MAGAZINES The ads will appear in a monthly/weekly basis during the first two months.
SPOTIFY The radio ad will be played during the whole first month as a heavyweight campaign and then will appear every other week in the next two months to remind the user of the product. The branded playlist will be created in the beginning of the campaign and will be updated from then on.
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DIRECT MARKETING It will be sent twice in the first two weeks of the campaign to inform of the new car. It will also be sent in the last two weeks of the campaign to remind them of the existence of the car.
VI. BUDGET ALLOCATION Companies like Coca Cola and Google make use of the 70:20:10 allocation model when it comes to media planning. Audi should adapt this model in order to effectively plan their media budget (Boot, E. et al, 2008). •
70%: low-risk media options such as TV, outdoor, magazines, online and social media marketing. Spotifyʼs branded playlist will be inside the social media budget.
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20%: to innovate and use something theyʼve proven has worked in the past, such as direct marketing and Spotify radio.
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10%: to innovate in high-risk media content such as the mobile app and the online PR behind it.
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VII. MEDIA EVALUATION All media channels will be reviewed through their cost effectiveness and customers will be asked by single question method where theyʼve heard about the new car.
TV The TV campaignʼs effectiveness will be evaluated through: •
BARBʼs measurement system that monitors over 5,000 UK-representative homes. This will help evaluate the total reach and efficiency of the adverts on TV.
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Television Rating Points will measure the % of our target audience who have seen the ads. The universe of the defined target audience, the reach of the number of people from our target who have been exposed to the ad and the total Gross Rating Points will be measured and evaluated.
OUTDOOR The main tool that will be used to evaluate the outdoor adverts is the POSTAR model. This will give us information on an estimation of the number of: •
Traffic and Pedestrian Counts: an estimate of the traffic in the locations planned. This will give us a gross audience OTS.
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Travel Survey: reach and frequency on the use of different travel patterns of the total target audience.
MAGAZINES •
NRS readership survey: will give us an estimate of how many copies have been distributed and an estimate of how many people of our target audience have seen the ad. The survey also offers what else they read and lifestyle data for future advertising campaigns in press media.
DIRECT MARKETING The cost per mail, cost per acquisition, CTR of email marketing and the total response rate will be measured and evaluated.
ONLINE RADIO Measurement of the impressions (the amount of times the ad has been reproduced), the clicks and most importantly, the total CTR. For the branded playlist, itʼs important to measure the followers and the times the music has been played.
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DIGITAL Evaluate the CPC, customer acquisition rate and the total CTR. It始s also important to study Audi始s Website: cost per conversion, page stickiness, their frequency and duration and most importantly, how many people have personalised their own Audi A1 Sportback on the website and how many have booked a test drive. It will also be important to cross the information of the Audi Centres of those who have purchased the car thanks to the booked appointment done online.
MOBILE APP Evaluation through the number of downloads and number of times it始s been mentioned on websites and social networks.
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VIII. BIBLIOGRAPHY •
Audi. 2014. A1. [Online]. [Accessed 10 May 2014]. Available from: http://www.audi.co.uk/new-cars/a1.html
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Beck, J and Griffiths R. 2010. The Connected Audience: bringing together audience measurement and understanding across platforms. [Online]. [Accessed 10 May 2014]. Available from: http://www.warc.com
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Boot, E., Knight, A., Hauck, D. And Hatton, R. 2008. Audi – Firing up the Quattro: How Audi accelerated into the 21st Century. [Online]. [Accessed 10 May 2014]. Available from: http://www.warc.com
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Bull, N. 2012. Marketing cars: change media gear. [Online]. [Accessed 10 May 2014]. Available from: http://www.warc.com
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Caci Limited. 2013. The ACORN user guide. [Online]. [Accessed 4 May 2014]. Available from: http://acorn.caci.co.uk/downloads/Acorn-User-guide.pdf
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Desor, N. and Ellis, R. 2014. How cars really get bought: Beyond the purchase funnel - new insights from digital ethnography. [Online]. [Accessed 10 May 2014]. Available from: http://www.warc.com
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De Ruyck, T., Van Den Bergh, J., Balkan, E., Willems, A. and Verhaeghe, A. 2013. Think Big and Connect to the Max: How PepsiCo (re) connected the Ruffles brand with Generation Y. [Online]. [Accessed 10 May 2014]. Available from: http://www.warc.com
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Edwards, D. and Gilmore, O. 2013. Admap. Marketing cars: A prestige marque for the young. [Online]. [Accessed 13 May 2014]. Available from: http://www.warc.com
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Euromonitor International. 2009. The Worldʼs Gen Xers: Latchkey Kids (29-44s) Come into Their Own – Executive Briefing. [Online]. [Accessed 13 May 2014]. Available from: http://www.warc.com
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Fill, C. 2013. Marketing communications. 6th Ed. Harlow: Pearson Education.
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Green, Antony. 2014. Marketing cars: driving digital success. [Online]. [Accessed 10 May 2014]. Available from: http://www.warc.com
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Katz, H. 2010. The Media Handbook. [Online]. 4th edition. New York: Routledge. [Accessed 10 May 2014]. Available from: http://www.dawsonera.com
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Kinuthia, K. 2014. Digital, social and interactive media. Lecture notes distributed in LUBS 5407 Advertising. 11 March, University of Leeds.
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Kinuthia, K. 2014. Out of home media. Lecture notes distributed in LUBS 5407 Advertising. 18 March, University of Leeds.
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Kinuthia, K. 2014. Challenges facing media planners, Audi A1 and Ogilvy China. Lecture notes distributed in LUBS 5407 Advertising. 29 April, University of Leeds.
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Kinuthia, K. 2014. Press and radio. Lecture notes distributed in LUBS 5407 Advertising. 4 March, University of Leeds.
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Kinuthia, K. 2014. Television. Lecture notes distributed in LUBS 5407 Advertising. 25 February, University of Leeds.
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Kinuthia, K. 2014. Advanced media planning. Lecture notes distributed in LUBS 5407 Advertising. 18 February, University of Leeds.
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Moore, H. 2008. 10 things about Generation X. [Online]. ]. [Accessed 10 May 2014]. Available from: http://www.warc.com
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Nairn, A. 2014. How automotive advertising works. [Online]. [Accessed 12 May 2014]. Available from: http://www.warc.com
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National Readership Survey. Lifestyle data. [Online]. [Accessed 8 May 2014]. Available from: http://www.nrs.co.uk/lifestyle-data/
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TNS. 2013. Automotive in the UK: Are the wheels coming off for Generation Y? [Online]. [Accessed 13 May 2014]. Available from: http://www.warc.com
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TrueCar. Top 10 models for young drivers. [Online]. [Accessed 7 May 2014]. Available from: http://blog.truecar.com/2010/05/12/top-10-models-for-young-drivers/
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USA Touchpoints. 2013. Reaching active auto shoppers. [Online]. [Accessed 12 May 2014]. Available from: http://www.warc.com
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US Direct Marketing Association. 2013. Audi: the first email test drive. [Online]. [Accessed 12 May 2014]. Available from: http://www.warc.com
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Walshe, P. and Bull, N. 2013. Car brands: The road to riches fuelled by brand power. [Online]. [Accessed 12 May 2014]. Available from: http://www.warc.com
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WARC. 2014. Adstats: Advertising Outlook. [Online]. [Accessed 12 May 2014]. Available from: http://www.warc.com
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WARC. 2013. Adstats: Automotive adspend. [Online]. [Accessed 12 May 2014]. Available from: http://www.warc.com
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WARC. 2012. Adstats: Online advertising. [Online]. [Accessed 12 May 2014]. Available from: http://www.warc.com
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WARC. 2014. Consensus Adspend Forecast. [Online]. [Accessed 12 May 2014]. Available from: http://www.warc.com
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Whiteside, S. 2014. How Audi used Snapchat to engage consumers. [Online]. [Accessed 13 May 2014]. Available from: http://www.warc.com
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Young, S. 2014. Global marketing index, April 2014: Marketer confidence rises as mobile spend is set to rocket. [Online]. [Accessed 12 May 2014]. Available from: http://www.warc.com
IX. APPENDIX
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CPC: Cost per click
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Customer acquisition rate: costs/number of clicks
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CTR: Cost through rate (impressions/clicks)
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Cost per conversion: the amount of money Audi has had to invest in order to get sales
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Page stickiness: the amount of time users visit the website multiplied by the amount of time they spend on the site
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Frequency: total number of visits during the campaign divided by the number of unique visitors in the period
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OTS (Opportunity to see): the number of times of exposures to the campaign.
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