Wp paperfinal by Tiara Dees

2014 STRATEGIC MEDIA PLAN Report by Tiara Dees

2014 Strategic Media Plan > Warby Parker | 3

TABLE OF CONTENTS I. EXECUTIVE SUMMARY ...................................................................................................................... 4 II. SITUATION ANALYSIS ...................................................................................................................... 5 COMPANY: WARBY PARKER EYEWEAR ............................................................................................................... 5 CURRENT MARKET & CONSUMERS: ..................................................................................................................... 6 Current Demographical Trends for Eyewear Industry ...................................................................... 6 COMPETITIVE LANDSCAPE ..................................................................................................................................... 7 SWOT ANALYSIS ..................................................................................................................................................... 9 III. OBJECTIVES ..................................................................................................................................... 10 MARKETING OBJECTIVES ...................................................................................................................................... 10 COMMUNICATION OBJECTIVES ............................................................................................................................ 10 IV. CONSUMER TARGET MARKET ................................................................................................... 10 PRIMARY TARGET MARKET PROFILE ................................................................................................................ 10 SECONDARY TARGET MARKET ............................................................................................................................ 13 V. CONSUMER TARGET MARKET STRATEGY .............................................................................. 16 MONTHLY REACH AND FREQUENCY ............................................................................................................ 17 SPOT MARKET GEOGRAPHY ................................................................................................................................. 18 TIMING & STRATEGY ............................................................................................................................................. 19 SCHEDULING & MEDIA MIX ................................................................................................................................. 20 Possible Programming Choices .................................................................................................................. 21 DIGITAL MEDIA & SALES PROMOTIONS ............................................................................................................ 22 VI. MEDIA SCOPE & BUDGET ............................................................................................................ 24 REACH & FREQUENCY FLOWCHARTS: SPOT/NATIONAL MARKETS ............................................................ 24 BUDGET RECAP ...................................................................................................................................................... 26 VII. ENDNOTES & SOURCES ............................................................................................................... 27

2014 Strategic Media Plan > Warby Parker | 4

I. Executive Summary The Company WARBY PARKER EYEWEAR was founded in 2008 with a unique vision to create change within the eyewear industry. To do this, founders Neil Blumenthal and Dave Gilboa borrowed $150,000 and one and a half years later, launched the business that completely changed the way eyeglasses were purchased. Setting a price point of $95, Warby Parker changed the way an eyeglasses manufacturer did business with its customers. Gone were the licensing fees, and high markups for quality frames. Gone was the uncomfortable experience trying on new frames in store, only to return them because the frames did not turn out to be what the consumer expected. Not only did Warby Parker innovate the industry by allowing the consumer more time to try on glasses and find the perfect fit through its home try on program, but this unique eyewear manufacturer guarantees that with each pair sold, another pair would be given to someone in need.

The Problem THOUGH WARBY PARKER innovated the eyewear scene, the competition is still tough, and there is a lot room to grow within this industry. The eyewear industry is a massive one, and with few large competitors such as Luxottica, Safilo and De Rigio with the majority of market share within this industry. Luxottica, for example, owns Oakley brands, as well as upscale eyewear stores such as LensCrafters, Pearle Vision and the Sunglasses Huts. So the problem is “how does Warby Parker compete with large competitors that have such an impact on an industry?”

The Solution THE ANSWER to that question is through the way Warby Parker reaches and engages its customers through media. In the past, Warby Parker has targeted the youthful and spirited millennial generation. This generation has shown to be extremely active online, and cares about Warby Parker’s “do good” mission, as well as brand. However, there is an untouched market within the Generation X group, as these older people are often inspired by their younger counterparts in terms of style, and online activity. Through targeting both of these groups, Warby Parker will be able to expand its reach and begin to overtake this industry from its overpriced competitors.

The Vision THE FOLLOWING 2012 strategic media plan will outline this vision for success through covering several areas such as the consumer target markets, competitors, media mix and more to reach a national base, and six spot markets across the country. Through enacting this strategic media plan, Warby Parker will be able to continue to fulfill its core values and bring a quality product to its consumers for a lower price.

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II. Situation Analysis WARBY PARKER conducted research on the current US market to gather

information about the current eyewear market and its competitors. This research was based mainly off of secondary research, which included demographic and psychographic data, media data, and Internet sources.

Company: Warby Parker Eyewear According to the case study packet, Warby Parker Eyewear was named after two literary figures and was created after Neil Blumenthal broke an expensive pair of glasses. Blumenthal and Wharton MBA classmate Dave Gilboa decided to create an eyewear company specifically that would “disrupt an industry” and “…create an iconic fashion brand […] that did good in the world.”1 Today, their vision has come to light, as Warby Parker is valued at $300 million, and “…within two years, the online eyewear retailer sold out of 15 styles of glasses in four weeks and built a wait list of 20,000 customers.”2 Warby Parker Eyewear only costs $95, instead of several hundred dollars compared to its major competitors.3 The firm is able to accomplish this price point by ordering materials directly from suppliers and creating its own unique styles that are not marked up through licensing fees.4 Warby Parker allows consumers to try on glasses for free with their home try on program, as well as donates a pair of glasses to the needy through the “Buy One, Give One” program. Though there are plenty of advantages to Warby Parker’s competitive strategy, there are also disadvantages. One major disadvantage is that the $95 price point could rise

2014 Strategic Media Plan > Warby Parker | 6 depending on how expensive it is to obtain materials such as acetate to produce glasses. Another disadvantage is that Warby Parker’s policy of only hiring millennial employees could allow them to miss out on key opportunities to grow their company and increase market share by targeting older consumers, as this specific market could be ideal for continued growth.

Current Market & Consumers: According to data from the Vision Council Consumer Barometer, “…23% of people say they are likely to buy a new pair of prescription glasses in the next six months” and Mintel reports that the sales of prescription eyeglasses is expected to grow 15% by 2018.5 According to the case study packet, there is data “that makes it clear that this category is growing, likely because of the recovery from the recession has caused people who had been putting off the purchase of new glasses…” to buy eyewear now. A potential threat to the wearable eyewear industry is laser eye surgery. According to the case study packet, “…while only 3% of current recipients of eye surgery used to wear glasses or contacts, a hefty 35% of current or potential corrective vision users say they are interested in this procedure.”6 The following table is pulled from the case study packet, detailing the market demographical trends for the wearable eyewear industry:

Current Demographical Trends for Eyewear Industry7 Age

Adults, 55+

Race

Asian Americans more likely to purchase

Ages 65-74 expected to increase by 21% by 2018. Hispanic market expected to grow 12% by 2018.

Young people are more likely to care about brand names or style.

2014 Strategic Media Plan > Warby Parker | 7

Gender

Female

Females are more likely to own more than one pair of glasses

Men or women are not satisfied with selection in optometrists’ offices and more likely to purchase online.

Figure 2-1 (Table source: Warby Parker Case Study Packet)

To summarize, there is potential growth in the eyewear market, especially with groups that are older, female, and more focused on style. These groups are also less satisfied with eyewear stores, and are willing to shop online for their glasses purchases.

Competitive Landscape The eyewear market in the United States is a massive one. According to data by Euromonitor, the eyewear industry in the US has made almost $30 million so far in 2013.8 According to the case study packet, the top three competitors to Warby Parker are Luxottica brands (which include brands such as Oakley and owners of eyewear retailers such as LensCrafters, Sunglasses Hut and Pearle Vision), Safilo Group (which brands include Dior and Hugo Boss), and De Rigo (which brands include Givenchy and Fila).9 Competition in the eyewear industry is especially tough as competitors are large and take the majority of the market share. The above table by Euromonitor in Figure 2-2 shows the current market share for major competitors in the eyewear industry at this time and how large the competitors have grown over the past few years. However, though competition is tough, Warby Parker has advantages over big eyewear companies like Luxottica. According to a report titled “Luxottica Retail North America Inc in Eyewear (USA)” by Euromonitor, the large eyewear retailer has online

2014 Strategic Media Plan > Warby Parker | 8 websites for Pearle Vision or LensCrafters, but do not have a way for customers to purchase glasses online.10 The reason is “…due to the inherent challenges of buying prescription spectacles online.” Euromonitor also cites that “…when buying spectacles, consumers tend to test various options to gauge the fit and style of a pair of before making a decision.”11 Warby Parker has a potential advantage over Luxxotica through online sales, as more consumers (young and old) are shopping online for eyeglasses, and Warby Parker’s five day, five pair home try on program give consumers a longer amount of time to test eyewear for free. Price can also play a large role in Warby Parker’s competitive strategy. Though many are driven to expensive brands such as Oakley or Dolce & Gabbana, Warby Parker’s $95 price point may drive more cost-conscious consumers to purchase over expensive brands. According to research that was included in the case study packet by Mintel, 45% of consumers in a survey answered that they would “replace my glasses more often if they were not so expensive,” compared to 13% of consumers in the same study that stated that they would purchase “the latest styles of eyeglasses.”12 In an article by Inc.com called “Attack of the Warby Parker Clones,” Warby Parker’s unique online business model may also be inspiring smaller competitors to arise as well. Competitors such as Classic Specs, Lookmatic, Mezzmer, Made Eyewear, Eyefly, Rivet and Sway have appeared up in the past two years, with “…similar aesthetic[s] and online business model[s].”13 Smaller firms using similar strategies could be troublesome for Warby Parker, as this could cause consumer confusion and detract from Warby Parker’s brand awareness.

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SWOT Analysis THE FOLLOWING is a situation analysis of Warby Parker. This analysis includes

internal components such as business strengths and weaknesses, and external components such as opportunities and threats.

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III. Objectives Marketing Objectives MARKETING OBJECTIVES for the 2014 year will be to increase sales by 20

percent. The following report will detail how this goal will be met through targeting specific markets.

Communication Objectives COMMUNICATION OBJECTIVES for the 2014 year will be to increase awareness

of Warby Parker’s products among target markets. Communication objectives will be obtained through increasing reach through the strategic use of media.

IV. Consumer Target Market Primary Target Market Profile WARBY PARKER currently targets the “millennial” generation for its eyewear

products.14 According to a report by the Pew Research Center, millennials are “…the American teens and twenty-somethings who are making the passage into adulthood at the start of a new millennium” and are known to be “confident, self-expressive, liberal, upbeat and open to change.15 According to Pew, the millennial generation is more ethnically diverse than older generations. The above chart shows a growing black, Hispanic, Asian and bi-racial segments of this market, compared to adults 30 years or older.

2014 Strategic Media Plan > Warby Parker | 11 Millennials are also more likely to be technologically savvy, with 24% of this target market stating that they believe technology use is what makes their generation unique in open-ended responses in Pewâ&#x20AC;&#x2122;s surveys. According to Pewâ&#x20AC;&#x2122;s research, this generation is also more likely to use social media networking sites, with 75% of respondents surveyed stating that they have social networking profiles. As a company, Warby Parker to date has positioned itself to target the millennial generation for its eyewear products. The bulk of eyewear products purchased through Warby Parker are online, as there are only a few brick-and-mortar stores available for consumers to visit. Warby Parker also targets this specific market through its social media outreach, specifically on Facebook, Twitter and Instagram. It is also important to examine who is purchasing eyeglasses within the millennial age group, as well as how this could affect the overall media plan. The following is the results from a cross-tabulation on Simmons OneView on specific factors such as demographics, psychographics, and behaviors toward shopping for new eyewear:

Demographical Data for Ages 18-3416 Market that wears or purchases eyeglasses

Gender

Race

Education

Income

Mostly female

White

Most have been to college for 1-3 years (Highest index: 20 year-olds)

Many make in between $40 $100k a year (Highest index: 18 y/o at $75k a year)

Location

Eyeglass Types

Point of Purchase

Many live Most do Most in the West not wear purchase or in the glasses, but glasses at eye South if when doctor, but (Highest they do, some index: 18 they wear purchase y/o in lenses over online South, 30contacts 34 y/o in the West.)

2014 Strategic Media Plan > Warby Parker | 12 Index

Sample:

Female: 109 Male: 90 Female: 3,975 Male: 2,702

105

20 y/o: 223

18 y/o: 149

5,592

20 y/o: 77

18 y/o: 118

18 y/o: 117 30-34 y/o: 122 18 y/o: 94 6,677 30-34: 187

Eye doctor: 1,308 Online: 72

Source: Simmons OneView, Fall 2010 NHCS Adult Study, 6 months Total sample size for 18-34 year olds: 2,403 Total sample size for males: 5,365 Total sample size for females: 6,985

Psychographic Data for Ages 18-34 17 Psychographic:

18 – 21 y/o

22 – 24 y/o

25 – 29 y/o

30 – 34 y/o

Impulse Shopper

Average

Above Average/Far Above Average

Average

Above Average

Brand Loyal

Below Average/Average

Far Below Average

Child Influenced

Average

Average/Above Average

Radio Involvement TV Involvement Newspaper Involvement Magazine Involvement Ad Receptivity

Far Below Average to Far Below Average Average Above Average/Above Average/Far Average Above Average

Far Below Average/Above Average/Below Average Average Below Below Average Average/Average Average/Average Far Below Far Below Far Below Average to Average/Below Average/Below Average Average Average Above Above Above Average/Far Average/Far Average/Far Above Average Above Average Above Average Far Below Average Far Below Average Far Above Average Below Average/Average

Smart Shopper

Average

Below Average

Above Average/Far Above Average

Early Adopter

Above Average/Far Above Average

Average Average Far Below Average/Below Average Above Average/Far Above Average Average Above Average/Far Above Average Far Above Average

2014 Strategic Media Plan > Warby Parker | 13 Internet Activity

Above Average/Far Above Average

Above Above Above Average/Far Average/Far Average/Far Above Average Above Average Above Average Source: Simmons OneView, Fall 2010 NHCS Adult Study, 6 months

Looking at the demographical and psychographic data, the primary target market for this media plan is 18-34 year old females. Many people of this age group live in the South or West, and do not wear eyeglasses. However, the ones that do wear eyeglasses chose lenses over contacts. Though most purchase through their doctor’s offices, some do purchase online, and this trend is looking to grow in the future as stores work to improve the online buying experience. The psychographic data also indicates that people in this age group is not brand loyal and somewhat of impulsive shoppers. Older millennials are also heavily childinfluenced shoppers. Most of this generation are heavily involved in radio and magazines and have high Internet usage activities. This media plan will mainly focus on radio, magazines and Internet as the main media vehicles for this age group.

Secondary Target Market WHILE MANY may believe that the millennial generation dominates all forms of

online activity, according to the Pew Research Center, Generation X — ages 33 to 44 —are more likely to “…bank (67%), shop (80%) and look for health information online (82%)” and Pew even refers to this generation as “online grown ups.” 18 Pew also mentions in another report that Gen X “…continues to lead in online shopping.”19 The following chart from Pew’s “Generations Online in 2009” report lists Internet usage and populations of millenials, Generation X and more:

2014 Strategic Media Plan > Warby Parker | 14

Source: Pew Internet, “Generations Online in 2009,” January 28, 2009

Targeting Generation X as a secondary market could help increase brand awareness and market share for Warby Parker’s products, as this generation is engaging in online shopping more than younger generations. The following is research conducted using Simmons OneView also showing similar patterns and specific demographics and psychographics of this generation:

Demographical Data for Ages 35-4520 Market

Gender

Race

Education

Income

Location

Eyeglass Types

Point of Purchase

Mostly

White

Groups 35-

Age group

Ages 35-39

Higher

2014 Strategic Media Plan > Warby Parker | 15 that wears or purchases eyeglasses

female

39 and Groups 4044 were more likely to have graduated from college

Index

Female: 109 Male: 90

105

Sample:

Female: 3,975 Male: 2,702

5,592

likely to make in between $40 $100k a year

35-39 y/o: 116 40-45 y/o: 119 35-39 y/o: 315 40-44: 400

40-44 more likely to live in the Northeast

are more likely to wear regular eyeglasses over contacts

40-44 y/o: 116

35-39 y/o: 128

40-44 y/o: 208

35-39 y/o: 197

income earners ($60k or more) are more likely to purchase their glasses at Costco or Online.

Source: Simmons OneView, Fall 2010 NHCS Adult Study, 6 months Total sample size for 35-45 year olds: 1,948 Total sample size for males: 5,365 Total sample size for females: 6,985

Psychographic Data for Ages 35-45 21 Psychographic:

35 â&#x20AC;&#x201C; 39 y/o

40 â&#x20AC;&#x201C; 45 y/o

Impulse Shopper

Above Average

Far Above Average

Brand Loyal Child Influenced Radio Involvement TV Involvement Newspaper Involvement Magazine Involvement Ad Receptivity Smart Shopper

Far Below Average Far Below Average Far Above Far Above Average Average Far Above Above Average Average Above Average Below Average Far Below Average/Below Average Far Above Average Far Above Average Average

Far Below Average/Below Average Far Above Average Below Average Above Average

2014 Strategic Media Plan > Warby Parker | 16 Early Adopter Internet Activity

Far Above Average Far Above Average

Below Average Average Source: Simmons OneView, Fall 2010 NHCS Adult Study, 6 months

Looking at the demographical and psychographic data, the secondary target market for this media plan is 35-45 year old females. Many people in the Gen X population live in the Northeast, have most likely graduated from college, and make between $40,000 and $100,000 a year. Higher income earners are more likely to purchase their glasses at Costco or online; however, most income brackets are more likely to purchase through Costco and not at Wal-Mart. Psychographic data shows that this group is highly influenced by their children, not loyal to any particular brands, and smart shoppers. This group is more likely to be involved with magazines, radio, and TV, as well as have high amounts of Internet activity. For this media plan, we will focus on TV, magazines, radio and Internet for this particular target market.

V. Consumer Target Market Strategy THE FOLLOWING SECTION will cover media objectives, strategies and tactics

for the 2014 advertising year. This plan will start on January 1 of next year, until December 31, 2014. It will include the following goals and specifics: monthly reach and frequency, geography, timing and scheduling decisions, media mix, as well as selected sales promotions. This media planâ&#x20AC;&#x2122;s simulation market will be adults, ages 18-49. The total universes for these markets are 131,026,000 nationally and 30,331,000 in the six spot markets.

2014 Strategic Media Plan > Warby Parker | 17

Monthly Reach and Frequency WARBY PARKER Eyewear is relatively new in the eyewear industry, and many consumers have still not heard about this brand, its products, or its message. In order to help increase awareness about Warby Parkerâ&#x20AC;&#x2122;s brand and product offerings, this plan will focus on optimizing frequency over optimizing reach. According to Chapter 7 in the Media Flight Plan handbook, by optimizing frequency, Warby Parker will be able to introduce their products into new market.22 Utilizing the Media Flight Plan simulation software, here are the following reach and frequency goals for the 2014 year:

Source: Media Flight Plan Simulation

2014 Strategic Media Plan > Warby Parker | 18 The 2014 media plan will be a national and spot campaign, with reach remaining at 50 throughout the year for spot and national markets. Average frequency will remain low nationally as well, and higher frequency campaigns will be focused in 6 urban spot markets across the country. Share of Voice (SOV) will remain around 16.7% by Q4 nationally and 33.3% in selected spot markets. Gross Rating Points (GRP) will total to be 1,050 nationally by the end of 2014 and 1,650 in spot markets.

Spot Market Geography SPOT MARKETS for the 2014 strategic media plan will be the following:

These six spot markets were chosen based off current Designated Market Area (DMA) rank and geographical locations throughout the United States and these markets make up approximately 20.63% of US households. Each location was chosen in order to provide widespread advertising coverage across six major cities in the US.

2014 Strategic Media Plan > Warby Parker | 19 Timing & Strategy TIMING for the 2014 media plan will be based off of a flighted advertising schedule. The reason for this decision was that according to the 2012 Warby Parker Annual Report, sales for later quarters were much higher than earlier in the year. The following graphic on the left is an example pulled from the Warby Parker Annual Report. The advertising schedule for the 2014 year will officially begin in June 2014.

Source: 2012 Warby Parker Annual Report

The following timeline on the next page shows when and

what type of advertising will take place throughout this season for spot markets. Selected media for both target audiences is a mix of net and spot radio, spot TV, magazines (women), and Internet (targeted sites, search and sponsorship). This media will be used to achieve a high reach in spot market areas. A chart on page 22 will list specific television, magazine, radio and Internet sites and titles that will be included in Warby Parkerâ&#x20AC;&#x2122;s media strategy for the upcoming year.

2014 Strategic Media Plan > Warby Parker | 20

Scheduling & Media Mix

June July Aug. Sept. Oct. Nov. Dec.

• Net Radio: Morning Drive, Daytime, Evening Drive, Nighttime • Women's Magazines • Internet: Targeted Sites, Sponsorship • Spot Radio: Morning Drive, Daytime, Evening Drive; Spot TV: Daytime

•  Net Radio: Morning Drive, Daytime, Evening Drive, Nighttime •  Internet: Targeted Sites, Sponsorship •  Spot Radio: Morning Drive, Daytime, Evening Drive, Nighttime

•  Net Radio: Morning Drive, Daytime, Evening Drive, Nighttime •  Internet: Keyword Search, Targeted Sites, Sponsorship •  Spot Radio: Morning Drive, Daytime, Evening Drive, Nighttime

• Net Radio: Morning Drive, Daytime, Evening Drive, Nighttime • Women's Magazines • Internet: Keyword Search, Targeted Sites, Sponsorship • Spot Radio: Morning Drive, Daytime, Evening Drive, Nighttime

2014 Strategic Media Plan > Warby Parker | 21

Possible Programming Choices TV

Alternative AOR (Excluding Rock) AOR (Including Rock) Classic Classic Rock Contemporary Christian Contemporary Radio HOT AC Inspirational Mexican Modern Rock Modern Rock Oldies Spanish Spanish AC Urban Variety

Net

Spot

Radio

BET Bravo CBS Disney Food Network FX ESPN Fine Living Fuse G4 HSN Nick @ Nite Nickelodeon Showtime Speed Spike TLC Style VH1/ VH1 Classic

Womenâ&#x20AC;&#x2122;s Magazines

Internet Specific Search Terms

All You Cooking Light Cosmopolitan Elle First for Women Good Housekeeping InStyle Prevention Real Simple Womanâ&#x20AC;&#x2122;s World

Specific Targeted Promo Sites Toward Women: Cosmopolitan Manhattan Fashion Magazine Spotsify Magazine VivMag Magazine Women's Health Magazine Glamour Targeted Banners & Advertising on: Online Magazine Sites Social Media Networks Search Engines

2014 Strategic Media Plan > Warby Parker | 22 THE MEDIA and programming choices were chosen specifically to target both 18-

34 year olds as well as 34-44 year olds in spot market and national areas in order to meet optimal frequency. TV advertising will utilize the past television ad created for Warby Parker. High frequency radio advertising will market Warby Parker’s $95 price point, “Buy One, Give One” campaign, as well as the free opportunity to try on five pairs for free, for five days. In the summer, the radio and magazine advertising will be focused on selling Warby Parker’s line of sunglasses, and in the fall/winter, radio and magazine ads will feature promotions specifically for Back-to-School or Christmas promotions. Internet advertising will be focused on keyword searches, banner ads and promotional sites on clothing websites and social media networks.

Digital Media & Sales Promotions THE USE OF DIGITAL MEDIA is essential to Warby Parker’s strategy for the 2014 year. According to the 2012 Warby Parker Annual Report, 50% of customer service related issues are handled through the Internet, as opposed to 45% handled over the phone and 5% in store.23 The Twitter account @WarbyParkerHelp has tweeted over 90,000 times in order to assist customers with purchases, or to help lock in a purchasing decision. This activity will continue throughout the 2014 year, as well as Facebook page activity, and Facebook promotions. Another way to access the younger generation is by focusing some radio advertising on free services such as Spotify or Pandora, and developing special “Warby Parker” stations where people can tune in, and get specific Warby Parker related advertising. Many ads over Spotify offer special promotions specifically for listeners, and this could be an asset to pushing promotions that could be cheap and effective.

2014 Strategic Media Plan > Warby Parker | 23 PROMOTIONS will also be an essential asset to Warby Parker for the upcoming year, allowing the company to build continuing relationships with consumers, as well as create new customers or brand awareness. The following chart will show what types of promotions will take place throughout the 2014 year, and specifically how these promotions can help build this awareness for the Warby Parker brand:

Promotion

Place/Advertising

Month

“Insta-great” Win a Pair

Nationwide, advertised through Facebook, Instagram, Twitter and other social media networks.

January

“Get in the Shade” Summer Try On Promotion

Specific spot markets: Atlanta, GA; Houston, TX; Los Angeles, CA; New York, NY

June

“Back to School” Buy One, Get One Half Off

Spot Markets, advertised through radio, magazine and spot TV markets

September

Description Participants can Instagram a photo of themselves (“selfie”) and describe why they would look great in Warby Parker glasses. Several winners will be chosen and given a free pair Representatives from Warby Parker travel to these spot market areas and allow customers try on glasses. Participants can tag Warby Parker in these pair to receive a special promotional discount for their own sunglasses. Campaign focused toward older adults purchasing glasses for their high school/college age children. If parent buys child new glasses, they get their own pair of sunglasses or lenses for half off.

2014 Strategic Media Plan > Warby Parker | 24

VI. Media Scope & Budget THE FOLLOWING CHARTS will display the scope and budget of the final strategic media plan for 2014. This will include the reach and frequency levels, as well as a final recap of the budget for the upcoming year.

Reach & Frequency Flowcharts: Spot/National Markets

Reach

Reach (Goal & Est.) - Spot & National 100 90 80 70 60 50 40 30 20 10 0

Sept Janu Febr Marc Augu Octo Nove Dece April May June July emb ary uary h st ber mber mber er

Reach Goal

Reach Est

88.1 88.1 90.1 91.4 92.4 92.4 92.4

Average Frequency

Average Frequency - Spot & National 20 18 16 14 12 10 8 6 4 2 0

Sept Nove Dece Janu Febr Marc Augu Octo April May June July emb mbe mbe ary uary h st ber er r r

Avg Freq Est

6.2

7.3

8.3

Avg Freq Goal

2014 Strategic Media Plan > Warby Parker | 25

Gross Rating Points

GRPS - Spot & National 9000 8000 7000 6000 5000 4000 3000 2000 1000 0

Sept Janu Febr Marc Augu Octo Nove Dece April May June July emb Total ary uary h st ber mber mber er

GRPS Balance

-‐250 -‐250 -‐310 -‐360 -‐380 -‐380 -‐380

GRPS Est

550 550 660 760 830 830 830 5010

GRPS Goal

300 300 350 400 450 450 450 2700

To conclude, reach was set at 50% across national and spot markets, with frequency remaining at 3 for national markets and varying between 6 and 9 for spot markets. In some instances throughout this campaign, it is possible for reach to be very high, even with very high frequency. The months with the highest frequency will be October, November and December, as the 2012 Warby Parker Annual Report has shown that sales increase by the end of the year. On the next page is the budget recap and total for 2014.

2014 Strategic Media Plan > Warby Parker | 26 Budget Recap

Budget Recap (In Millions) 70000

Budget (In Millions)

60000 50000 40000 30000 20000 10000 0

Januar Febru March April y ary

May

June

July

8.1

$(000) Balance

$(000) Est

$(000) Goal

Augus Septe Octob t mber er 32.6

179.2

65.9

Nove Decem Total mber ber 65.9

65.9 425.59 3325.2 3325.2 3856.3 4265.3 4934.1 4934.1 4934.1 29574.4 1 3333.3 3333.3 3888.9 4444.4 5000 5000 5000 30000

THE SET BUDGET for the 2014 strategic media campaign was $30 million. By

starting later in the year with advertising, Warby Parker will be able to heavy up in Q3 and Q4 to capture those sales. By the end of the year, there should be around $425,590 left in contingency funds or extra advertising media spending.

2014 Strategic Media Plan > Warby Parker | 27

VII. Endnotes & Sources 1

Warby Parker Case Study Packet Warby Parker Case Study Packet 3 Warby Parker Case Study Packet 4 Warby Parker Case Study Packet 5 Warby Parker Case Study Packet 6 Warby Parker Case Study Packet 7 Warby Parker Case Study Packet 8 Euromonitor Datagraphic 9 Warby Parker Case Study Packet 10 “Luxottica Retail North America Inc in Eyewear (USA),” Euromonitor, Dec. 6, 2012 11 “Luxottica Retail North America Inc in Eyewear (USA),” Euromonitor, Dec. 6, 2012 12 Warby Parker Case Study Packet 13 “Attack of the Warby Parker Clones,” Inc.com, Jill Krasny, July 15, 2013 14 Warby Parker Case Study Packet, Mintel 2013 15 Pew Research Center Social & Demographic Trends, “Millennials: Confident. Connected. Open to Change.” Feb. 2010, http://www.pewsocialtrends.org/2010/02/24/millennialsconfident-connected-open-to-change/ 16 Simmons OneView, Fall 2010 NHCS Adult Study, 6 months 17 Simmons OneView, Fall 2010 NHCS Adult Study, 6 months 18 Pew Research Center, “Gen X: Online Grown Ups,” http://www.pewresearch.org/dailynumber/gen-x-online-grown-ups/ 19 Pew Internet, “Generations Online in 2009,” January 28, 2009, Sydney Jones and Susannah Fox, http://pewinternet.org/Reports/2009/Generations-Online-in2009/Generational-Differences-in-Online-Activities.aspx?view=all 20 Simmons OneView, Fall 2010 NHCS Adult Study, 6 months 21 Simmons OneView, Fall 2010 NHCS Adult Study, 6 months 22 Media Flight Plan, Chapter 7, Dennis Martin and Robert Coons, 2011 23 2012 Warby Parker Annual Report 2