un me jeans branding in web 2.0

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UnME Jeans stands for “you and me”, a brand that is designed to encourage women to forge their own unique identities and to promote tolerance and appreciation for differences of opinions and tastes.

Margaret foley is Brand Manager of UnME Jeans

What is the present situation?

Foley had been struggling to justify the money she was spending to advertise her brand in traditional media outlets.

Her media plan was designed to maximize reach and frequency among her target market of women 12 to 24 and to obtain media placements that were consistent and supported fashion brand.

Situation Analysis (1/2)

Foley asked her advertising agency to investigate few of emerging Web 2.0 social media options to explore

Biggest challenge can be cutting through all of the type surrounding Web 2.0 and analyzing its potential for her brand from media prospective.

Situation Analysis (2/2)

What is the Object?

Objective

• To understand the importance of communication channels• What kind of communication channels do the consumers prefer

most?• To find appropriate social media channel for branding• What are the benefits and risks of each channel?• Analyze different media channels to find best suitable media plan for

branding of UnME• Budgeting of the media plan

Media in the New Millennium

Foley realized following trends to be driving radical change in the media markets having potential to reduce the effectiveness of her current media plan.

1 Consumer Changing Habits

23% online media consumption 5% newspapers

3% magazines

12 hours per week spending online

10/6 hours per week watching television

2 Difficulties to break through advertising clutter

5,000 advertising messages

every day

On television, 35% of every hour in

prime time devoted to marketing

messages

Consumers remember only 1% to 3% of the advertising to which they are exposed

2 Turning out of Advertisements

70% of viewers change channels through commercial breaks in the television to avoid advertising.

Online advertising is the

only bright spot

Six times more growth rate than traditional media between 2006 and 2009 having $21.4 billion business

Internet Advertising Revenues (as of 2007)

32%

17%

41%

Sales

Banner / Display Ads Classified Ads Search Advertising

The Web 2.0 was dominated by more interactive, participatory, and

collaborative behaviors that included consumers themselves as co-creators and disseminators of the

content available on the internet.

The Web 2.0 make the most of the intrinsic advantages of that platform:

delivering software, consuming and remixing data.

Few of big companies using Web 2.0

Cultural Ideology of Web 2.0

Consumer co-creation1

Gives consumers the ability to directly

contribute to the online conversation and

content available on web.

A user generated video sharing website attracted 66 million U.S. visitors in 2005, spending an average of 50 minutes on site per month

Social Affiliation2

Connecting consumers to others forming a

basis for the cultural value of Web 2.0

Net rating of Social Networking Site traffic (U.S. home and work)

Percent of U.S. online consumers who use social networking sites

Digital Self-expression3

Capturing the desire for people to express their identities online by creating digital representations

Example:

Second Life Virtual Product Sales (1/2)

Second Life Virtual Product Sales (1/2)

Sharing4

Building peer to peer relationship enabling consumers to quickly share information with each other and collaborate with othersIf you are interested in branding, you don’t want to

double up and do online the same way as offline.

Three social media outlets were suggested by advertising agencies:

Foley believed to do less “talking at” and more “talking with” her consumers

Foley wanted to go for media plan which Is most receptive to her brand story Would foster most constructive dialogue

about her brand Seamlessly integrate with and support her

existing media plan Making an impact on sales

Would develop a line of virtual UnME Jeans that would be sold to Avatars on Zwinktopia through a virtual UnME Jeans retail store

Budget for the Zwinktopia program $200,000 for upfront creative development $100,000 per year for operation, maintenance and updating

1

UnME purchasing targeted banners advertising on Facebook, targeting women ages 12 to 24 with an interest in Fashion

Budget for the Facebook program $350,000 for creative development of profile page, widget & banner ads $150,000 for a three month advertising program

Agency would develop an UnME brand profile page for Facebook having features of fictional character Sasha who would embody the UnME brand personality.

2

3

Agency would develop 3-4 minute YouTube video ads telling the stories of teen girls who embodied the brand essence of UnME

Budget for the YouTube program $300,000 for creative development of brand channel and video ads $300,000 for buying media with YouTube, which sold the brand channel and in-video ads at a CPM of $40.

Comparison of Media Plan

Media Budget / year

Zwinktopia $200,000 + $100,000 / year

Facebook $350,000 + $600,000 / year

YouTube $300,000 + $40 CPM

Existing Media Plan of Foley’s UnME Jeans

Budget (in 000’s) CPM

Television $10,000 $29.95

Magazines $2,000 $11.91

Radio $1,000 $11.55

Online Banner Advertising $250 $3.50

Google Search Advertising $250 $8.52

Total Budget for Media Plan = $13,500,000

Nielsen/Net Rating of Social Networking Site Traffic(U.S. Home and Work)

Comparative Study of Media Plans (1/3)

Potential user base Low cost advertising Direct interaction with

consumers

Virtual product validation Limited user base High risk

Potential user base Good for teen age group Less time taking

High cost involvement Not necessary to reach target market Less growth rate

High user base Customer reach based cost

involvement Good for video lovers

Attractive videos required Long videos may be rejected

from consumers

Which one?

Any pair?

can be a good option to reach target customer but……

Possesses high growth rate butEffective only for video lovers

Now what???

Having high video quality with short time duration targeting teen age girls

Can be a good option but only for a short duration of time because of less growth rate

Disparity of Ad spending and Household spent with Media

Media Type Ad spending (%)

Household spending (%) Household / Ad

TV 43 31 0.73

Newspapers 30 8 0.27

Radio 12 20 1.67

Magazines 8 7 0.88

Online 7 34 4.86

Online Advertising Budget

$300,000

$950,000

$600,000

$1,850,000 / year

Remaining Budget = 13,500,000 – 1,850,000 = 11,650,000

Budgeting of Media Plan

Media Type

Ad spending

(%)

Household spending

(%)Household / Ad

Budget Required (in

000’s)TV 43 31 0.73 $2,396,000

Newspaper 30 8 0.27 $866,000

Radio 12 20 1.67 $5,480,000

Magazines 8 7 0.88 $2,908,000

Online 7 34 4.86 $1,850,000

$13,500,000

Created By:

Rohit Kumar Mittal IIT (BHU), Varanasi

During an internship by:

Prof. Sameer Mathur IIM Lucknow