The Traditional Family Brand TEAM HANES 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 United States. 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 on Univision media. Creative promotions with retail 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: Hanesbrands Inc., 2010 Price Point Hanes boys͛ Classic Briefs, white, 6-pack, $11.50 on Hanes.com. Fruit of the Loom 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, casual 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: Jockey International, 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. (Business Wire, 2010) 10.