The Traditional Family Brand

TEAM Andrea Brown Megan Gill Courtney Scott Johnique Smith Table of Contents ‡ Executive Summary͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.4 ‡ Situation Analysis ‡ SWOT Analysis͙͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙..͙.5 ‡ Price Point͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙..6 ‡ The Competition͙͙͙͙͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙7-8 ‡ Industry & Category Analysis͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙....͙͙͙͙͙͙͙͙͙͙͙͙͙9-11 ‡ Market Analysis͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙..12-22 ‡ Target Analysis͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙..23-28 ‡ Problems and Opportunity Summary͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙...... 29 ‡ Key Problems & Insights͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙30-37 ‡ Marketing Communications Objectives͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙..38-41 ‡ Marketing Strategies & Rationale͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙..42-48 ‡ Advertising, Media & Promotional Tools͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.49-65 ‡ Campaign Evaluation͙͙͙͙͙.....͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.66-69 ‡ Budget͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.70-73 ‡ Campaign Conclusion͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙74 ‡ Appendix͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙75 ‡ Research͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙..76-80 ‡ References͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.͙͙͙͙͙͙͙͙͙͙͙͙..͙͙͙..81-84 2 Executive Summary:

Hanes is the leading manufacturer of intimate apparel, coined the term, ͞apparel essentials.͟ Within this highly competitive sector, Hanes must act now to a capture burgeoning segment of the U.S. market before its competitors. Hanes is the ͞go-to brand͟ for many of its Latino customers, yet has lacked consideration for the booming Latino market that demonstrates rapidly rising buying power, as well as strong loyalties to trusted family brands.

Univision is the leading Spanish-language media company in the . By utilizing Univision͛s television, Internet and mobile platforms, this aggressive media campaign will solidify the relationship between Latina Women and Hanes. Hanes will take advantage of additional opportunities for revitalizing the brand with new consumers in mind through Univision.

The message: Hanes is the traditional, comfort, family brand that can be found in every home, every community, and is the brand of choice among Hispanic families that are living the ͞American Dream͟ yet rooted in their rich Latino heritage.

Simple advertising imagery will depict Latino families and culture, along with celebrity spokespersons who appear often Univision media. Creative promotions with partners will be used to engage and motivate Latino customers.

Following the recommendations in this campaign will put Hanes on track to increase Hanes underwear sales by 8% from July 2012 to July 2013.

3 Situation Analysis SWOT : Strengths: ‡ Hanes is over 100 years old and well established ‡ Hanes is the largest seller of apparel essentials in the U.S. ‡ Hanes can be found in 8 out of 10 American households ‡ Hanes is in 85% of U.S. households that have purchased in 12-months ‡ Held the # 1 spot for the 6 consecutive years ¶03 ± ¶09 ‡ Was #1 for 5 consecutive years in Women¶s Wear Daily Top 100 Brands Weaknesses:

‡ Hanes does not currently market to the rapidly growing Hispanic population in the U.S ‡ Brands needs be rejuvenated to appeal to a younger demographic ‡ Hanes is vulnerable to any influx of changes in their customers or store dynamics

Opportunities: ‡ Market to the rapidly growing U.S. Hispanic population with increasing disposable income. ‡ Hispanic women gave a highest awareness rating to Hanes and Hanes Her Way (Hall, 2005) ‡ Hispanic women gave a highest awareness rating to Hanes and Hanes Her Way (Hall, 2005) ‡ Hanes previously targeted Hispanics before the separation with Sara Lee Threats:

‡ Highly competitive and rapidly evolving market, so must make sure to keep up with the competition ‡ Hanes¶ older image. ‡ Current economic conditions may impact demand for Hanes products ‡ Sales could be reduced if retailers devote less selling space to apparel products ‡ Must manage inventory effectively to meet customer demands so that margins don¶t lower 5 Source: Inc., 2010 Price Point

‡ Hanes boys͛ Classic , white, 6-pack, $11.50 on Hanes.com.

‡ boys͛ 6-pack, white, briefs, $10 list price on Amazon.com.

‡ Jockey boys͛ Classic Briefs, white, 3 pack, $12 on Jockey.com.

6 Competition: Fruit of the Loom, Inc.

‡ Underwear made under the BVD, Fruit of the Loom, and Lofteez names ‡ Active wear, , and children's underwear sold under names such as Russell, Funpals, Fungals, and Underoos (which feature licensed characters). ‡ Boasts the largest market share for branded men's and boy's underwear ‡ Sold primarily in North America through discount and mass merchandisers the likes of Wal-Mart and Target, as well as to department stores, wholesale clubs, and screen printers.

‡ Partnered with Telemundo for 2010 Miss Universe Pageant (HispanicAd.com, 2010).

7 Competition: , Inc.

‡ Makes men's, women's, and children's underwear and loungewear.

‡ Sold through thousands of department and specialty stores such as Bloomingdales and JC Penny.

‡ Privately owned company, 130 years old.

‡ Has not launched any significant campaigns geared specifically to the Hispanic market.

‡ Additional competition: Department store brands.

(Hoovers, 2010)

8 Apparel Manufacturing Industry & Intimate Apparel Category Analysis

9 The Hanes Numbers:

‡ Hanesbrand, Inc. is in the Apparel Manufacturing Industry and is the Category leader in the Intimate Apparel Category.

‡ According to Hoover͛s Online is the category leader with 4,326.71M in sales and a gross profit margin of 32.52%.

‡ Hanes saw $4.3 billion sales in 2010, up 11.1 percent from $3.9 billion in 2009. (Hoovers, 2011) ‡ 2010 sales were slightly higher than 2008 sales of $4.25 billion. (Hoovers, 2011) ‡ Hanesbrands anticipates 2% to 4% annual net sales growth in 2011 and beyond. (, 2010)

10 The Hanes Numbers:

‡ Innerwear segment sales increased 12 percent in the fourth quarter and 10 percent for the year.

‡ Male underwear full-year sales were up 19 percent, in part on the strength of product innovation such as Hanes Lay Flat Collar T-shirts and Hanes Comfortsoft waistband briefs and boxers.

‡ Outerwear segment sales increased 20 percent for the year with across- the-board strength in retail active wear (), retail casual wear (Just My Size) and wholesale casual wear (Hanes).

(Hall, 2011)

11 Market Analysis

12 Apparel Essentials Market :

‡ Highly competitive and rapidly evolving

‡ Price, brand name recognition, product quality, selection, service and purchasing convenience play roles in purchasing decisions

‡ Women͛s intimate apparel weathering the storm. Slow, steady growth after discouraging 2008 (Aarkstore, 2008).

‡ Online sales growing in women͛ market (Aarkstore, 2008).

13 Apparel Essentials Market :

‡ Hanes has a well-established relationships with the largest apparel retailers in the world (Hanesbrands Inc., 2010, p. 6).

‡ 2010 ʹ Hanes strikes deal with Dollar General to carry Hanes underwear basics. (Pediatrics Week, 2010)

‡ 2009 ‡ No. 1 Wal-Mart : Sales exceeded $1 billion (27 percent of total sales). ‡ Target: 17 percent of total sales ‡ Kohl͛s: 7 percent of total sales

(Hanesbrands, 2010)

14 Trends:

‡ Innerwear as outerwear for teens. ‡ Plus-size still going strong ‡ Strong Growth in Sustainable Apparel Through 2012 ‡ Intelligent Fabrics ‡ Despite recent growth, luxury segment slowing. ‡ Younger women want style. ‡ Older Women Want Comfort and Value ‡ Price is Important to Women of All Ages and income levels. ‡ Good corporate citizens reap rewards among women buyers. ‡ Department Stores Still No. 1 Choice for Women ‡ One-Third of Women Shop at Department Stores

(Aarkstore, 2008)

15 U.S. Hispanic Market

‡ 50.5 million Hispanics (U.S. Census, 2010) ‡ 16.3% of U.S. population ‡ Projected to reach 132,8 million by 2050 or 30 percent of U.S. population (Westlund, 2009) Consumer Attitudes ‡ Nation͛s largest minority ‡ Rely heavily on social networks ‡ High cultural sensitivity ‡ More positive toward advertising and marketing ‡ Identify with prestigious ͞search͟ brands.

16 Spanish Language Media

‡ Hispanic TV homes up 2.3 percent to 12.9 million. (Total U.S. TV homes up only .3 percent) (Westlund, 2009). ‡ Persons age 2 and older in Hispanic TV homes grew 2.4 percent to 44.3 million (Westlund, 2009). ‡ Watch TV as a group with family and friends (Korzenny, 2006)

17 Shopping Habits

‡ A family event. (Karolefski, 2007) ‡ Want an enjoyable shopping experience in a store that has large shelves and is easy to navigate. ‡ Are in no hurry to get in and out. (Arreaga, 2009) ‡ Less likely to shop at discount or close-out stores. (Kelly, 2008) ‡ More likely to know which brands of products they are going to buy before shopping. (Arreaga, 2009) ‡ May be influenced by in-store price reductions and in-store ads. (Arreaga, 2009) ‡ Less likely to ask questions in store about items related to personal matters. (Karolefski, 2007)

18 Innerwear Attitudes

‡ Of the more than $10.8 million invested in the U.S. Hispanic market by makers of , lingerie and underwear, nearly $9.4 million of it was attributable to two brands controlled by - Fruit of the Loom and (Hispanic Market Weekly, 2007).

19 Hispanic Growth

‡ In 2010: ‡ 33.3 million Hispanics ages 18+, a 45% increase from 2000 ‡ 50,478 million Hispanics compared to 35,306 million in 2000, a growth of 43% ‡ The number of Hispanic children grew 39% since 2000, and adults grew 45%

(U.S. Census, 2010) 20 Latino Lifestyle trends 20-39

‡ Maintaining strong family and cultural ties, while taking advantage of U.S. lifestyles. ‡ High stress associated with acculturation. ‡ Hard working, education-oriented ‡ Forming young families, first child births

(Valdes, 2008, pp. 159-60) 21 Cell Phone Savvy

‡ High mobile phone use, especially among Spanish- speakers (average 9 hours/week talking on cell phones) ‡ Average 1-2 hours using cell phone for something other than talking. ‡ Nearly 65-70 percent have cell phone with camera ‡ Less likely to have cell phone with MP3 player. ‡ English-speakers more likely to have high-speed Internet.

(Korzenny, 2008)

22 Target Market Profile Audience

‡ The primary audience is women 18-49, who are the main purchasers of family brands. These women live in multigenerational, blended families living together: mothers, fathers, grandparents, and children. They aren͛t considered wealthy, but grounded in the middle class.

‡ Women in this segment are also influenced by endorsements, Hispanic celebrity mom endorsements have a positive impact on Hispanic moms and offer a great vehicle to enhance and make the brand more memorable (Trivisonno, 2009). This will be beneficial in achieving Hanes Marketing Communication objectives.

‡ With advertising to multigenerational families we will create ads that are both in English and Spanish catering to the language needs of older family members and younger one. Culture drives the conversation between brands and Hispanic moms. Advertising in Spanish that features authentic cultural imagery has more impact than advertising in English for all Hispanic moms, regardless of level of acculturation (PR Newswire, 2009).

‡ Those who are in the primary audience are passionate about family. From sharing family meals to watching television, many activities are done as a family group. When it comes to visual representations of Hispanic moms, they prefer images of family and togetherness vs. individual pursuits (PR Newswire, 2009). They tend to adopt brands that are most recommended by trusted friends and family members (Travisonno, 2009).

24 Target Group: Influenced by͙

‡ Celebrity influence is growing: In 2004, 23 percent of Latinas cited celebrities as a source of ideas vs. 13 percent in 1994 (Latina Flavor, 2005). ‡ Hispanic celebrity mom endorsements have a positive impact on Hispanic moms and offer a great vehicle to enhance and make the brand more memorable (Trivisonno, 2009). This will be beneficial in achieving Hanes Marketing Communication objectives. ‡ When it comes to visual representations of Hispanic moms, they prefer images of family and togetherness vs. individual pursuits (PR Newswire, 2009). ‡ Culture drives the conversation between brands and Hispanic moms. Advertising in Spanish that features authentic cultural imagery has more impact than advertising in English for all Hispanic moms, regardless of level of acculturation (PR Newswire, 2009).

25 Target Group: Decision Making

‡ Likely to respond to friendly advice, seek a second opinion and trust advice of family members (Latina Flavor, 2005). ‡ More likely to make in-store brand decisions for clothing. (HispanicCMO.com, 2010) ‡ Comparison shopping is common, both in-store and online (HispanicCMO.com, 2010). ‡ Hispanic moms like to be professional, practical and fashionable, but at the end of the day it is all about the family͛s well being, so family comes first (Trivisonno, 2009).

26 Target Group: Brand Sense

‡ They consider it risky to buy a brand they are not familiar with and prefer to choose brands they recognize and trust (Travisonno, 2009). ‡ They tend to adopt brands that are most recommended by trusted friends and family members (Travisonno, 2009).

27 Target Group: Influenced by͙

‡ Celebrity influence is growing: In 2004, 23 percent of Latinas cited celebrities as a source of clothing ideas vs. 13 percent in 1994 (Latina Flavor, 2005).

‡ Hispanic celebrity mom endorsements have a positive impact on Hispanic moms and offer a great vehicle to enhance and make the brand more memorable (Trivisonno, 2009). This will be beneficial in achieving Hanes Marketing Communication objectives.

‡ Culture drives the conversation between brands and Hispanic moms. Advertising in Spanish that features authentic cultural imagery has more impact than advertising in English for all Hispanic moms, regardless of level of acculturation (PR Newswire, 2009).

28 Key Problems, Insights, & Opportunities Key Problems

‡ Hanes does not currently market to the enormously growing Hispanic population in the U.S. ‡ Hanes is not presently taking advantage of interacting with consumers through mobile communication. ‡ Hanes is largely dependent on sales through Wal- mart, Target, and Kohl's, making them vulnerable to any influx of changes in their customers or store dynamics (Datamonitor, 2009). 30 Key Problems

‡ Although Hanes spokesman Michael Jordan is a well- known and adored athlete, the sport he represents, basketball, does not connect with soccer fans. This is important because soccer is the number 1 sport in the Hispanic community.

31 Key Insights & Opportunities

‡ The Hanes is a family brand, offering a line of products for women, men, and children (Datamonitor, 2009). ‡ The brand͛s largest customers are Wal-Mart, Target, and Kohl͛s (Hanesbrands Inc., 2010, p. 6).

32 Key Insights & Opportunities ‡ Some companies listed in the top ten advertisers to Hispanics/Latinos are Lexicon Marketing Corporation, Procter & Gamble Company, Univision Communications Inc., General Motors Corporation, Johnson & Johnson, McDonalds Corporation, and PepsiCo Inc.; there within lies an opportunity to work with them to reach this rapidly growing, and young segment (Hispanic/Latino Market Profiles, 2010, p. 17).

‡ Partner with Univision, which is among the top 10 Hispanic advertisers.

33 Key Insights & Opportunities

‡ Hanes has a ͞Comfort Rewards͟ program that allows customers to also donate and support causes such as classroom projects through donorschoose.org (Comfortrewards.com, 2010).

‡ Hanes also currently has an outlet stores rewards program that can be used at any L͛eggs, Hanes Bali, Playtex, or Hanesbrands Outlet Store (Onehanesplace.com, 2010).

34 Key Insights & Opportunities

‡ In 2010, Hanes conducted a national advertising campaign called ͞For Future Generations͟ along with an EcoSmart apparel line and green- focused website featuring a new fleece apparel made in part from the equivalent of 25 million recycled plastic bottles, EcoSmart made of 55 percent recycled fiber, and 67 percent of the classic men͛s and boy͛s made using renewable energy (Hanesbrands Inc., 2010).

‡ Hanes participates in a number of community initiatives, that benefit communities where employees live and work (Hanesbrands Inc., 2010).

‡ Hanes also focuses on efforts to ensure that communities receive great access to health, welfare and education services through improving the healthcare and wellness systems and educational programs in various communities including Bona, Domincan Republic; San Juan Opico, El Salvador; Winston-Salem, NC; Chaiyaphum Province, Thailand; and Vietnam (Hanesbrands Inc., 2010).

35 Key Insights & Opportunities

‡ Hanes donated one million socks to The Salvation Army during a December 2010 Holiday Drive launched to address the need for the no. 1 most-requested item at homeless shelters (Salvationarmy.com, 2010).

‡ Donation efforts for the sock drive were derived from the Hanes Facebook social networking page, donating one pair of socks for each person who ͞liked͟ the Hanes page and clicked ͞Help Hanes Donate͟ (Salvationarmy.com, 2010).

36 Key Insights & Opportunities

‡ Hanes is the official apparel sponsor of fundraising program, ͞Passionately Pink for the Cure,͟ created by Susan G. Komen For the Cure (Hanesbrands Inc., 2010, p. 7).

37 Marketing Communications Objectives Hanes = Family ‡ Our project goal is to convince Hispanic women, 18-49, that Hanes is the best brand of underwear for their families because it is soft, reliable and familiar. ‡ Hanes is the traditional, comfort family brand that can be found in every home, every community. ‡ It is the brand of choice among Hispanic families who living the ͞American Dream,͟ while still rooted in their rich Latino heritage. 39 Campaign Objective: At Year͛s End ͙

1. An 8% increase in sales will be achieved by tapping a growing market.

2. An increase in consumer interaction with the Hanes brand.

3. Hanes will gain brand awareness among the Hispanic community.

40 Communications Strategy

‡ Convince U.S. Hispanic women, 18-49 that Hanes is the brand that suits their family- oriented lifestyle by creating and utilizing interactive platforms to enhance brand awareness among the target audience.

41 Key Strategies

‡ Drive the target audience into key retail locations using promotions ‡ Create interaction with Hispanic consumers via mobile marketing and social media ‡ Utilize relatable images that appeal to Hispanic women and reflect their cultural values

42 Objective Rationale No. 1

‡ To increase sales of Hanes products among the Hispanic demographic by 8% by the end of the 1- year campaign.

‡ Rationale: ‡ Hispanics in the United States are growing at a rapid rate. By 2013, the U.S. Hispanic populations is anticipated to grow to 54 million, a 17% increase from 2000 population numbers (U.S. Census Bureau, 2008).

43 Objective Rationale No. 2

‡ To increase Hispanic consumers interaction with the Hanes brand by the end of the 1-year campaign.

‡ Rationale: ‡ U.S. Hispanics are at the bleeding edge of social media, (Vann, 2011). Social media has experienced a burst in growth and is growing each day. Hanes needs to stay at the forefront by connecting with the demographic at the forefront of this growth.

44 Objective Rationale No. 3

‡ To make Hanes the preferred brand of underwear for Hispanic women 18-49 and their families by the end of the 1-year campaign.

‡ Rationale: ‡ Hanes has a variety of products to meet the needs and comfort of the whole family. They are affordable and quality products, from a family- friendly, trustworthy brand. Hispanics are brand loyal, and they often adopt brands recommended by trusted friends and family (Trivisonno, 2009).

45 Key Selling Idea

‡ Hanes is the traditional, comfort, family brand that can be found in every home, every community, and is the brand of choice among Hispanic families that are living the ͞American Dream͟ yet rooted in their rich Latino heritage.

46 Key Message

‡ To position Hanes as a brand that cares about Hispanic families. ‡ Rationale: ‡ Hispanic mothers consider their children and families the central focus of their lives. Shopping is a family affair, and bringing quality to their families is of most importance to them. Hispanics as a whole are more brand loyal, and prefer to buy a well known brand that they are familiar with (Trivisonno, 2009).

47 A Friendly Voice

‡ The tone of voice is friendly and wise, because Hispanic women are likely to respond to friendly advice and tend to trust brands that are most recommended by friends and family and brands that they recognize and trust.

‡ The key points that are being communicated are family friendly, affordable, quality, and comfort.

‡ One sentence to get through all the clutter: Hanes is the traditional, comfortable and affordable family brand that offers quality needs to suit the needs of Hispanic Families.

48 Advertising, Media & Promotional Tools Media Overview

‡ The campaign will start on July 15, 2012 to coincide with back-to-school and will involve a tie-in partnership with leading retailer (i.e. Wal-mart, Target, or a department store).

‡ Campaign will feature an aggressive and ongoing presence on Univision Internet and mobile throughout the year.

‡ Supporting social media promotions will be ongoing throughout the year-long campaign.

50 Visual Goals

‡ There are two main goals for the creative design. We want to keep a simplistic overall look that resonates comfort and familiarity. ‡ We also want to incorporate images of families, their individual members (mom, dad, etc.) and their activities, making Hanes and its positioning relatable to Hispanic families.

51 Family TV

‡ The primary medium that will be used to reach the intended audience will be television. ‡ This is Univision͛s main outlet and has the greatest potential to reach our targeted audience. ‡ Watching television with the family is more commonplace in the Hispanic culture than other cultures which coincides with Hanes being a family brand. ‡ Celebrity spokesperson, such as telenovela star Itati Cantoral or singer Thalia will make promotional appearances on game, talk, and morning news shows. 52 Shows that Women Like to Watch

‡ Regular 30-second spots during top Univision shows: ‡ Prime-time telenovelas ‡ Sabado Gigante (strong family viewership) ‡ Despierta America ‡ El Gordo y La Flaca ‡ Sponsorships on prominent awards shows ‡ Premio Lo Nuestro ‡ Latin Grammys

53 Constant Messaging

Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun

Specials

Premios Juventud (July)

Latin Grammy (Nov.) PrimeTime Telenovela Base Media Plan Internet Móvil 54 Video Audio

FS Fast changing scenes of Fast traditional Latino music Latina dancers twirling in up for first :05 and under colorful traditional dresses throughout

FS More fast changing scenes :10 VO: (Excited) The colors of Latina dancers twirling in :15 VO: The fabric. colorful traditional dresses :20 VO: The movement.

MCU Of three women holding :25 VO: A beautiful tradition. A down their twirling skirts to strong foundation (Slight keep from exposing their pause). Don͛t be caught underwear. without yours! Hanes. A family brand.

55 Video Audio

MCU of mother and baby Mellow music up and under cuddling on bed. throughout

MCU of a father and young :05 VO: A mother knows son sitting on floor in front of what͛s best for her little one washer and dryer and makes sure she has it :15 VO: A father is his first example

CU of family laying to :20 VO: In every home, for head in circle in the sand every family. :05: Show them you care͙ with Hanes.

56 Media

Start July 2012

Back-to-school

Univision site and mobile

Supporting social media promotions

57 Music Downloads Promotion

‡ Promotion will premier Nov. 10 on Latin Grammys, in partnership with major retailer and run through Dec. 24. ‡ Packages will contain codes for free music downloads available on website and through mobile application. ‡ Music selection will feature artists that appeal to all ages, including children͛s music, popular Latin music and U.S. pop music. ‡ Public relations campaign will support launch of promotion through the holiday buying season.

58 Supporting Media Channels

‡ Univision Internet ‡ Banner Advertisements ‡ Music downloads ‡ Univision movil ‡ App w/comparison shopping mini-site ‡ Banner Advertisements ‡ Music downloads ‡ Other social media ‡ Facebook advertisements ‡ Twitter 59 Nuestra familia. Nuestra tradición. Nuestro Hanes.

Muéstreles que usted cuidado con Hanes.

60 Supporting Media Rationale: Interactive Connections ‡ Research shows that young Hispanics are on the bleeding edge of technology. Heavy internet and social media usage shows these are effective media channels. ‡ These are also all interactive channels, aiding in Hanes͛ efforts to reconnect with the Hispanic population. ‡ Facebook will be mainly used for banner ads and to create buzz about Hanes and promote interaction with its target audience. ‡ Twitter will be used to interact with and inform the target audience about the Hanes brand and to also interact with Univision to create a relationship that will cause the target audience to associate the two.

61 Nuestra familia. En cada hogar« Muéstreles que N usted cuidado con «encuentre la uestra tradición. Hanes. comodidad de Hanes.

Nuestro Hanes.

62 63 Street Team:

Front Back

Para escuela, «Su Hanes!

No se olvide«

For School don¶t forget, your Hanes! T-shirt Giveaway:

Nuestra familia Nuestra tradición Nuestra familia Nuestro Hanes Nuestra tradición Nuestro Hanes

Our family, Our tradition, Our Hanes Campaign Evaluation Objective No. 1 Metrics

8% increase in sales.

‡ Compare sales at beginning of campaign with figures at the end of the campaign year against objective.

‡ Track monthly sales figures.

67 Objective No. 2 Metrics

An increase in consumer interaction with the Hanes brand. ‡ Use insights to track Facebook activity. ‡ Track tweets and retweets. ‡ Weekly numbers tracking of Twitter followers and Facebook friends. ‡ Track number of participants in back-to- school promotions. ‡ Track music download numbers. ‡ Track T-shirt giveaway numbers.

68 Objective No. 3 Metrics

Hanes will gain brand awareness among the Hispanic community. ‡ Track and compare monthly analytics for advertising on Univision web, Univision mobile and Facebook. ‡ Track analytics on comparison shopping mini- site in mobile app, with separate analytic model for site activity involving Hanes. ‡ Track quarterly sales at retail locations in areas with heavy Hispanic populations, July 2012-13.

69 . Budget Budget ($5 million)

71 Budget ($5 million)

Telenovela Spots $1,750,00 Base Plan $1,090,000 Latin Grammy $760,000 Internet $700,000 Premios Juventad $400,000 Univision Movil $300,000

72 Promo. Budget ($2 million)

Celebrity Endorsements $800,000 Event/Guerilla Marketing $450,000 Music Downloads $250,000 Public Relations $250,000 Mobile app/mini-site $150,000 Facebook Ads $100,000 In-store displays/retail support $0

73 The Time for CHANGE is NOW

Hispanic Population Hanes

‡ The booming Hispanic market MUST be targeted by Hanes ‡ Fruit of the Loom is capturing this market, while Hanes is ignoring this enormous growth and has ignored Hispanics since 2007 ‡ Univision is the key for Hanes to reach this rapidly exploding population

74 Appendix: A-C A. Online Survey

76 Results (8 Respondents)

1. What is your age and gender? ‡ (1) Female 18-21 ‡ (1) Female 22-34 ‡ (1) Female 35-44 ‡ (1) Female 45-54 ‡ (4) Male 22-34 2. Out of the brands listed below, which one would you be most likely to purchase? ‡ (1) Fruit of the Loom ‡ (4) Hanes ‡ (3) Calvin Klein ‡ (0) Jockey, Store brand 3. Why did you choose that particular brand over the others? ‡ Best, Because that͛s what Wal-mart sells, I like Calvin Klein, Quality, Using since I was a kid 4. Who buys the underwear/garments for your family? ‡ All said self, 1 said mother and aunt 5. When buying underwear, what is most important to you? Please rate with 1 being the most important, 7 being the least important to you (Average Responses) ‡ Brand name 4.75 ‡ Convenience 4.38 ‡ Quantity 4.25 ‡ Price 3.25 ‡ Comfort 2.75 ‡ Fit 2.63 ‡ Quality 2.50 77 Online Survey Results

6. Where do you typically purchase your underwear? ‡ (87.5%) Department stores ‡ (12.5%) Mass Retail (e.g. Wal-mart or Target) 7. When do you buy underwear (what time of year, specific season, etc.)? ‡ (4) Whenever I need them ‡ (1) Not based on seasonality ‡ (1) Sale/Clearance ‡ (1) Spring ‡ (1) Christmas 8. Where do you see Hanes advertised? ‡ (8) Television 9. When you hear the brand Hanes, what comes to mind? ‡ (1) Men͛s underwear ‡ (6) Michael Jordan ‡ (1) Quality T-shirts, affordable products for all the family 10. What Latino Star do you think should be the next Hanes ambassador? ‡ Eva Longoria, George Lopez, America Ferrara, Carlos Ponce, Sofia Vergara, Wisin & Yandel, Enrique Iglesias

78 B. Interviews

79 Interviews

Carolina, 46, buys Hanes underwear for ³my babies´ her two sons, 17 and 26. Both live at home and she still buys their underwear. ³I buy all the time,´ she said. She likes Hanes because of its ³soft´ texture. She purchases Hanes at Kohl¶s. She watches ³soap operas´ (telenovelas) on Univision. Carolina thinks ³El Gordo y La Flaca would be a good place to promote Hanes underwear.

Sotero, 53, said his wife buys his underwear, Fruit of the Loom. He always accompanies his family on shopping trips, but he just follows along. His wife makes the clothing-buying decisions. He watches the news on Univision. Sotero thinks El Gordo y El Flaca would be a good place to promote Hanes underwear.

80 C. References

81 References

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