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Media Plan 2015-2016 By: Natalie Edwards Situation Analysis

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Media Plan 2015-2016 By: Natalie Edwards Situation Analysis RAY-BAN MEDIA PLAN 2015-2016 BY: NATALIE EDWARDS SITUATION ANALYSIS Company Overview: q In 1937, the Ray-Ban brand was founded in Rochester NY by American company Bausch & Lomb q In 1999, sold to the Italian Luxottica Group for $640 million q Company is owned by Sebastian Zurita V. and Luxottica Group q Produce eyewear for brands such as Oakley, Chanel, Dolce & Gabbanna, and Burberry q Company headquartered in Milan, Italy q Products are sold nationwide COMPANY OVERVIEW q Luxottica’s Annual 2014 Revenue = $9.3 billion q Market Share = 80% hold on the eyewear market q Monopoly status (27%) q Luxottica owns most sunglass retailers q Sears / Target Optical, Sunglass Hut, LensCrafters q Estimated 77,000 employees q Produced over 77 million pairs of glasses in 2014 q Ray-Ban = World’s #1 Seller COMPANY / BRAND BACKGROUND q The first Ray-Ban sunglasses were created for the U.S. Army Air Corps q The army was looking for an elegant looking sunglass to protect aviators from the sun q In May 1937, Bausch & Lomb patented the “Aviator” sunglass q First sunglass to incorporate an anti-glare lens and have a lightweight metal frame q Became popular during WWII and quickly became a part of American fashion and popular culture in the 1950s and 1960s q Worn by celebrities and musicians; product placement in movies PRODUCT INFORMATION Ray-Ban offers 6 types of signature sunglasses, available in different shapes and colors (polarized and non-polarized): q Aviator q Wayfarer q Clubmaster q Round q Justin q Erica PRODUCT INFORMATION q Where to Buy q Ray-Ban’s website (ray-ban.com) q Retailers (LensCrafters, Sunglass Hut) q Optical Centers q Average Price of Product = $100 to $220 INDUSTRY ANALYSIS q Luxottica controls 80% of the eyewear segment q Includes the following brands: Ray-Ban, Oakley, Top Sunglass Burberry, D&G, and more Frame Makers q Super-Manufacturer Luxottica owns most of Ray- 2012 Ban’s direct competitors q Saturated market makes it costly to acquire new customers q Luxottica’s Advertising spending 2011-2013 = $141.6 million q Luxottica Competitors (Eyewear Segment): q Safilo Group, De Rigo, and Marcolin COMPETITIVE ANALYSIS Oakley Warby Parker q Subsidiary of Luxottica q Luxottica Start-up q Revenue: $768 million company q Market Share: Luxottica q Revenue: $116 million (27%) q Market Share: N/A Retailer Knockoffs q Revenue: N/A q Market Share: N/A q Knockoff sunglasses with styles similar to Ray-Ban’s products COMPETITION q Oakley q Makes and sells performance sunglasses and ski goggles for sports and fashion enthusiasts (expensive) q Oakley is known for its customizable lens technologies, including 3D, and especially for its High-Definition Optics q Warby Parker q Starting at $95, Warby designs glasses in-house and sells directly to customers to avoid retail markups q The company primarily sells eyewear online and through its New York City headquarters q Retailer Knockoffs q Cheaper products available ($5-20), but poorer quality q Wal-Mart, Target, Walgreens, American Eagle, H&M ADVANTAGE Ray-Ban’s Benefits: q Recognized as an iconic American brand q Timeless style and trendsetting qualities q More affordable than Oakley products q Better quality / durability than knockoff sunglasses q Have better product warranty than Warby Parker COMPETITION Knockoffs Oakley Warby Parker TARGET AUDIENCE q Demographics q Age: 18-34 q Gender: Male / Female q HHI: $35K - $100K q Education: Some College q Marital Status: Single / Now Married q Occupation: Working Class or Professional q Race: Mixed (Caucasian / African American / Hispanic) q Geography: Anywhere in the U.S. TARGET AUDIENCE q Psychographics q Interests: Listening to music, hanging out at the local bar/ coffee shop, going “thrifting”. q Hobbies: Attending concerts, playing intermural sports, going to the gym, playing an instrument. q Lifestyle: Active, on-the-go, watch less TV and pay more attention to OOH. q Attitudes/Behaviors: Strong emphasis on individuality and self- expression. They do not believe in spending a significant amount of money on a pair of sunglasses, but they do like buying and wearing accessories. q Media Outlets q Heavy Magazine, OOH, Internet and Mobile App users. MARKETING OBJECTIVES Marketing Objective: q Improve the trial and repurchase of the product q Despite the expensive price of their sunglasses, we want people to buy and invest in more than just one pair. Target Audience: q Nonusers and Light Users (18-34 years old) q We want to target the people who haven’t shopped with the brand before; the type of people who would rather spend $10 on a cheap pair than invest in a quality pair. Challenge: q Getting consumers to stray away from buying from our competitors who offer similar, cheaper sunglasses. MEDIA OBJECTIVES q With Ray-Ban’s “Never Hide” campaign, we want to reach 70% of new target audience while maintaining average frequency of 3 (more exposure) q Magazines, Television, and Internet q Increase website and social media traffic / engagement by 25% in the first 6 months of the campaign q Ray-Ban.com and Facebook q Obtain new customers and improve product sales by 20% q Through event sponsorships and direct mail / coupon offers MEDIA MIX q Traditional q Alternative/ Media Ambient Media q Television q Event q Magazines Marketing q OOH q Digital Media q Marketing q Internet/Website Services Media q Social Media Ads q Direct Marketing/ Couponing MEDIA STRATEGIES q Utilize the pulsing method during year-long campaign q Combine flighting and continuous scheduling by using a low advertising level all year round and heavy advertising during peak selling periods. q Heavy advertising for TV and Magazines à beginning of spring, summertime, near Black Friday, and Christmastime q Air commercials before and during sponsored events to gain exposure and bring awareness to the brand q Continuous OOH advertising year round during all seasons with the implementation of guerrilla marketing tactics q Heavy outdoor exposure regardless of the weather q A constant Internet / social media presence will engage consumers and remind people of the brand GEOGRAPHY / SEASONALITY GEOGRAPHIC CONSIDERATIONS SEASONALITY q Nationwide q Continuous Advertising Advertising q Internet and TV q More prominent advertising in major q Seasonally U.S. cities (Chicago, q Heavy product New York, Los advertising during Angeles, Miami) specific times q OOH ads, q At the start of spring, during the special events, summer, and near and coupon Christmas time distribution MEDIA TACTICS Overview: q Television q Magazines q Event Marketing q Internet q Out-of-Home q Coupons BUDGET BREAKDOWN q Television (40%) $4,000,000 q Magazines (20%) $2,000,000 q Event Marketing (20%) $2,000,000 q Internet (10%) $1,000,000 q Out-of-Home (5%) $500,000 q Couponing (5%) $500,000 Total Budget = $10 million TELEVISION Daytime = 25% ($1 million) Allocated Budget = $4 million Primetime = 75% q Daytime = 7,000 CPP ($3 million) q 1,000,000/7,000 = 142 TRPs q Primetime = 25,300 CPP q 3,000,000/25,300 = 118 TRPs 142 + 118 = 260pts 260pts / 20pts = 13 Weeks of TV TELEVISION Day Part Cost Total Points Total Spending Daytime $7,000 9 $1,000,000 (12pm-4pm) Primetime $25,300 11 $3,000,000 (8pm-11pm) Channels: MTV, Comedy Central, USA Network, TBS, and E! Rationale: q Daytime TV will target the consumers who are more likely to be home during the daytime (get home from school / work early) q Primetime TV will target entire audience (18-34), who enjoy watching late night TV and talk shows that relate to their interests and hobbies TOTAL TELEVISION SPENDING = $4,000,000 MAGAZINES q Biweekly magazine q Circulation = 1,415 q Frequency = 24 q 4C Base Rate = $211,580 Purchased 5 inserts = $1,057,900 Rationale: Appeal to the current target audience; advertise in print medium in which they are already interested in. MAGAZINES q Bimonthly magazine q Digital / Web-based q Circulation = 102 q Frequency = 6 q 4C Base Rate = $55,220 Purchased 4 inserts = $220,880 Rationale: Print ad in digital form will appeal to consumers who prefer the internet / mobile. MAGAZINES q Bimonthly magazine q Circulation = 1,066 q Frequency = 12 q 4C Base Rate = $163,465 Purchased 4 inserts = $653,860 Rationale: Appeal primarily to the female audience with ad placement in popular women’s fashion magazine. MAGAZINES Magazine Circulation Cost per # of Total Cost Insertion Insertions Rolling 1,415 $211,580 5 $1,057,900 Stone Spin 102 $55,220 4 $220,880 Elle 1,066 $163,465 4 $653,860 Rationale: Our target consumers are heavy print / magazine readers, as well as fashion and music enthusiasts. These three specific magazines will be popular among both men and women (18-34) and will cater to their interests. TOTAL MAGAZINE SPENDING = $1,932,640 EVENT MARKETING Event Sponsorships Feature brand ambassadors, free sunglass giveaways, signage, pop- up stores, and other unique experiences throughout the duration of both music festivals. q Coachella Music Festival q Indio, CA q April 15th – April 24th 2016 q Lollapalooza q Chicago, IL q July 28th – 31st 2016 EVENT MARKETING Event Total Spending Coachella $1,000,000 Lollapalooza $1,000,000 Rationale: Sponsoring two of the most popular music festivals in the United States will generate brand awareness and goodwill for Ray-Ban. Sponsorship of these two events will give Ray-Ban the opportunity to reach festival attendees, Ray-Ban loyalists, and potential customers. These events target people who love music and fashion as well. TOTAL EVENT SPENDING = $2,000,000 INTERNET Rationale: q It is necessary for the brand to have an online presence
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