Marketing Plan
OtterBox 2020
"OtterBox zozo,
We've got your vision covered."
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OtterBox 2020
Table of Contents
Executive Summary. .....-............3 Current Market Situation.. ....... 5 SWOT Analysis.... .........7 Demographics and Psychographics......... ... ......... 9
Age
Ethnicity
Gonder
Profession
Education
Income
Lifesfyle & Hobbies
Trends
Status Soeking
Phone Usage
OurCustomerProfile... ........... 15 Unique Selling Point....... .....17 S.M.A.R.T Objectives. .......... 18 G.antt Chart/Budget..... ....:.:. ................ 19 AetionPlan.... ..............20
Selling Activities
Media Advertising Activities
Print Advertisement
Online Advertisement
Promotional Activities a Resources Consulted.. ...........25
OtterBox 2020
Executive Summary
In the phone case industry, there ire many phone cases that claim to be protective and
functional. However, there is one area in which these protective and functional phone cases are
lacking: vision. To satisfu this greatly unsatisfied consumer need, the Otterbox 2020 phone case
enters the market. The Otterbox2D2D does not only provide smartphones with the same
protective features and functionality as any other Otterbox model, but also offers a flip-over
screen that comes in a wide range of general prescription lenses. The Otterbox2020 also comes
in a variety of trendy pafferns, colors, and designs. Essentially, the Otterbox2020 phone case
looks good, while providing advanced protection and advanced functionality to those with
imperfect vision and who want to read text on their smartphones with ease.
Entering into the phone case market under the Otterbox brand and name provides the
Otterbox 2020 model with many strengths and opporhrnities. Namely, strong brand recognition,
a good portion of the market share, and the competitive advantage of being the first and only
phone case of its kind. This competitive advantage provides the Otterbox 2020 with its unique
selling point, which is that it has best adalted to the needs of low vision users, so they that may
conveniently and easily read text on their smartphone whilst having a stylish and protective
cover to prevent any cornmon potential damage.
Otterbox 2l2}'stargetmarket is woman between the ages of 45-55 who are experiencing
the low vision that comes with aging. They are Generation X, well educatbd, above average
income, and family oriented consumers. ihis niche targetmarket has been identified as including
consumers who are most willing and able to purchase, make use of, and spread the word about
the Otterbox2020 phone case.
OtterBox 2020
The Otterbox 2020 will be distributed in the Los Angeles county during the first fiscal
year at a mix of big box retailers and cell phone retailers. Otterbox 2020 phone cases will be in
Target Walmart, Costco, and Best Buy. The cell phone retailers will include Sprint" Verizon,
AT&T, and T-mobile- Test expansion to surrounding counties will occur in year one, and in the
coming years the product will be rolled out nationwide. Advertising will be done through print
and online strategies to reach the target markgt. Print advertisements will include holiday
advertisements in Walmart and Target as well as Black Friday coupons. Online advertising will
be done through Amazon display ads, Google ads, and Facebook ads.
OtterBox 2020
Current Market Situation
Otter Products LLC, more commonly known as the OtterBox company, is the leading
manufacturer and designer of the electronics accessory industry. The products are highly trusted
by consumers because of their drop proof, waterproof, and shockproof features. According to a
recent study conducted by The Statistics Portal, about 80% of smartphone users use protective
phone cases, andthe other20Yo do notuse any phone cases. ,
Do you use a protective case for your smartphone?
Below Statistics show number of reasons behind why those 20Yo strvey participants
chose not to use a phone case.
Ir ir
OfferBox 2020
Reasons For Not Using a Smartphone Case
a iPhone owners aAnd6;d own€rs
Cses add too rnuch bulk to the phone
I ilke the look/deslgn of my phone without a cur 24!a
l'm not worr'€d about dropping/damagiag my phone
CEses afe too exp€nsivr
Source: The NPD Group/Smartphone Case Segmentation Study
In addition to the aforementioned study, a research conducted by The NPD Group
showed that about 87% of iPhone users prefer a strong and protective case, while only 66Yo of
Android users feel the need to use a protective case for their phone. This result helps the
OtterBox company to narrow down target audience for the new product, OtterBox 2020,to
iPhone users who fit our customer profile. OtterBox 2020 isa flip phone case which has an
optical glass over the screen to correct nEsbyopia, a common aging phenomenon of
deteriorating eyesight. Currently, there is no existing product in the market that resolve the
inconvenience of needing reading glasses while using smartphones.
OtterBox 2020
SWOT Analysis
Strengths
o OtterBox already has a strong brand image and strong brand recognition within the phone
case industry. This gives OtterBox competitive brand equity.
Otterbox has a market share of 28% in the phone case industry.
The OtterBox2020 is a new and innovative phone case that does not currently have any
comparable competitors in the market. It focuses on a specific target market that can
utilize and enjoy the unique product on a daily basis.
OtterBox 2020 is a multipurpose phone case that not only provides the same protection as
other OfferBox phone case models, but also provides users with deteriorating vision to
easily and conveniently read their smartphones. Additionally, the optical screen can be
used a magniffing glass to quickly read other items like restaurant menus, newspapers,
magazines, and brochures.
The OtterBox 2020 provides an added convenience to the typical protective phone case.
Consumers who purchase the the btterBox 2020 willno longer have to take out their
reading glasses to see on their smartphones. The phone case will not only provide
protection from falls and scratches, but will also allow an easier smartphone experience.
OfferBox also provides a warranty on all "OtterBox products against defects in material
or workmanship for a period of one year from the original date of ilurchase of the product
by a consumer." Therefo.", "onrion"rs
have up to a year to ensufe that their product is in
good working condition and functions properly.
OtterBox 2020
Weaknesses
o Currently, OtterBox mainly focuses marketing efforts on men. This is shown through the
use of Peyton Manning, a famous NFL football player, as a spokesperson. OtterBox TV
and social media commercials involve Peyton Manning and the OtterBox mascot in
outdoor camping seffings. This does not appeal to OtterBox 2020's target market of
45-55 year old women.
o The optical glass cover of the OfferBox 2020 phone case could more easily break than
other screen protectors, rendering the feature useless. If this damage occurs during the
one year warranty, OtterBox could potentially be replacing a large volume of these phone
cases and incurring losses.
Opportunities
o Generation X (bom in 1965 to 1984) adapts to technology well and spends a si$nificant
amount of time on smartphones. Therefore, they will require accessories to go along with
their smartphone, including protective phone cases.
o There is currently no other protecfrve phone case that offers an optical glass cover.
OtterBox can patent this new phone case to initially prevent competitors from creating
the same type of phone case.
Threats
o With technology being more advanced than ever, more people are open to having
eyesight improvement surgeryuih u, intracor laser eye surgery.
o This type of phone case could possibly be replicated by competitors at a cheaper price
and distributed faster nationally.
Age
OfferBox 2020
Demographics & Psychographics
When reaching the age of 40, adults start having problems seeing clearly at a close
distance as the lens of the eye begins to get stiff and less able to focus. The eye's focusing ability
deteriorates as we progress in age. Presbyopia, the most common aging phenomenon between
ages 40 to 60, is not preventable but can be eorrected by wearing reading glasses, contacts, or
refractive surgery.
More than 2.9 million Americans age 40 and older have low vision. Low vision is
defined as best-corrected visual acurty worse than20l40, excluding those who are legally blind.
Nearly 4.2 million Americans age 40 and older are visually impaired, meaning they have
best-corrected visual acuity worse than20140 in their better-seeing eye. This number includes
both those with low vision and those who are legally blind. In2012, abott6IYo of the population
reported to wear glasses, contact lenses, or other reading or visual aids. This percentage steadily
rises each year. The use of visual aids grows rapidly as people get older, with the majority of
people in their forties always o. o""uriorlily wear glasses or contact lenses. The rate for people
in their fifties is more than90Yo and nearly all over-75s wear glasses.5TVo of people wear
glasses as opposed to the l2Yothatwear contacts and the9Yo that wear both.25Yo of contact lens
wearers are ages 45 and older. 54Vo of people who wear glasses use them more or less on a
full-time basis.
Because of this affliction, OtterBox 2020 istargeting consumers in the 45-55 age range.
Focus will be on the younger side of the age range because those consumers are more likely to be
regular users of smartphones, as opposed to those over age 55.
OtterBox 2020
l0
Ethnicity
Certain types of visual disturbances affect some races more frequently. Asian Americans
are more likely to be farsighted than Caucasians or African Americans. African Americans have
the lowest incidence of farsightedness. Eye problems, including the need for glasses, can also be
genetic and run in the family.
Gender
'Women's Eye Health Task Force reports that nearly two-thirds of all visually impaired
and blind people in the world are women. Generally, more women than men wear glasses or
contact lenses. Women are twice as likely to wear contact lenses than men are, and about
two-thirds of contact lens wearers are female. About 65% of women 18 and older wear
prescription glasses or contact lenses, compared to the 54Yo of men who do. Among the 35-49
year age bracket, there's a significantly higher proportion of women wearing glasses or contacts
than men.
Profession
OtterBox 2020 istargeting *o.kefr in the knowledge economy, since they are more
likely to have high income and be frequent users of smartphones.
o Historians - They research, analyze, interpre! and present the past by studying historical
documents and source.
o Librarian - Avid researchers who know how to leverage the many resources and
ref-erence materials that libraries have to oflbr.
o Editors - They plan, coordinate, or edit content of material for publication - and may
also review proposals and drafts for possible publication.
OtterBox 2020
11
o Lawyers - They represent clients in criminal and civil litigation and other legal
proceedings, draw up legal documents, or manage or advise clients on legal transactions.
They may specialize in a single area or may practice broadly in many areas of law.
o Translators - Translators convert written material from one language to another, doing
their best to ensure that the true intent ofthe original author carries over.
o Writers/bloggers - This group uses online platfoln extensively for journal writing and
information sharing.
o Doctors
o Researchers, Professors, Teachers, Educators
o Accountants and Finance professionals
o Salespeople - Spend much of their time travelling and on-the-go. This group relies on
their phones to stay constantly connected.
Education
The target market includes those in the college-educated population. Typically, coltege
graduates have higher-paying jobs anO ar;'fo"rsed more in the knowledge ecortomy rather than
in blue collar positions. Inthe 2015 census, neady I in 3 adults had a bachelor's degree or
higher. The difference between men (34Yo) and women (33%) degree attainment was negligible.
It can be predicted that professionals with degrees higher than a Bachelor's are more likely to
purchase an OfierBox 2020 product- 1.2%o of respondents in the 2015 census reported having
advanced degrees, which allows for a good portion of the population to target.
Income
OtterBox 2020
t2
Because the college-educated population is being targeted, the income of the target
market will be higher than the US average.ln2017, the average income of someone with a
Bachelor's degree was $59,124 per year or $1,137 per week. This is in contrast to the
high-school educated population making an average of $35,256 per year. The more specific
niche of advanced degree holders makes significantly higher than their bachelor's holding
counterparts. The average for someone with.a master's degree is $69,732 per year, and the
average for someone with a Doctorate is $84,396 per year. Entering into more metropolitan areas
first, these income numbers will most likely go up, since those in bigger cities generally make
more money due to the higher cost of living.
Lifestyle & Hobbies
Many consumers in the target market have jobs five days a week and then spend the rest
of their time and their weekends with their families or doing other activities. Family is very
important to this target market, as most are mothers or have close relationships to their siblings
and relatives.
In the target market, consumers' ti5bbi", consist of group-oriented activities they can do
with their friends or families. Women in the target market are involved in book clubs where they
meet up once a week to discuss the book they are reading. They are now starting to use
technology based items such as smartphones, tablets, and e-readers to read their books on. The
use of smartphones or tablets is increasing in everyday activities.
These women are also switching iom in-store shopping to online shopping, mainly on
computers, smartphones, and tablets. They frequent online stores, such as Amazon.com,
Target.com, HSN.com, and QVC.com. Women in the target market enjoy the convenience of
OtterBox 2020
13
online shopping, but are still wary of not being able to physically try clothing on or test out a
product.
Trends
Generation X includes those who were born between 1965 and 1984 and are
approximately 35-55 years old. Generation X (66 million) is smaller in population than baby
boomers (75 million) and millennials, but research revealed that this generation has more
spending power than any other generation. Generation X currently makes more money than
millennials, but they also have major financial commitments, meaning that they are value-driven,
practical budgeters and investors.
Those in Generation X may have grown up without the Internet, but they have quickly
adopted a digital lifestyle with a high penetration of smartphone, tablet, computer, and
Intemet-connected TV usage. At least one in four Gen Xers claim to be the first among their
friends to try new technologies, making them early adopters and prime targets for new
technology and products. Those with college degrees are well educated, highty motivaGd, and
very aware of their surroundings. This leiiis them to be more open to accepting social change, as
they are continuously doing research to stay informed.
As the generation between baby boomers and millennials, Gen Xers respond to both
digital advertising and traditional advertising. They respond to online advertising, email
marketing, consumer reviews, and social media. However, traditiona[ media still plays a huge
role in the Generation X lifestyle, as 487o listen to the radio and 62Yostill read the newspaper.
Their purchasing decisions are most influenced by family or friend recommendations, TV ads,
emails, online reviews, and direct mail.
OtterBox 2020
t4
Generation X is the most highly-educated generation, as 35% of them have a college
degree. 55% of startup founders are also Gen Xers.
Status seeking
Status seeking adults rely on items that will elevate their social status and purchase items
that are sleek and elegant in design. Targeting status seeking adults can generate more interest in
a specific product by telling their friends of similar age about it. People will choose options with
higher perceived status. In addition, paying attention to how much an individual values status it
can help determine buying behavior. Status seekers will take into account how much something
will influence their social status.
Phone usage
Phone usage among the older generation has increased greatly. Older adults have started
to use smartphones and tablets more, despite being later adopters to new technologies. Mobile
devices have become a common way for many adults to obtain and read their news. There has
been an increased growth in this especially among Americans ages 50 and older. This has caused
arecent sarge of Z4Yoand has increased &e amount of older adults who use their smartphone.
Popular online and digital activities among Generation X include social networking
(Facebook, Twitter, and YouTube), banking, shopping, and driline gaming. 8l% of Gen X is on
Facebook and 5.9 million have Snapchat accounts. However, they engage with their online
personzn less for selfie-centered promotion and more to keep track of the world and reach their
Millennial kids (on Snapchat). :i
OtterBox 2020
l5
Customer Profile
Based on the demographics and psychographics gathered to identiry Otterbox 2020's
target market, a specific customer profile,rcan also be created. The ideal customer profile would
be a woman who is between 48 and 52years old, has a preference for mobile online shopping,
and likes to stay connected on her smartphone through news apps, social media networking apps,
and email apps. She is an educated, working woman who only has free time on the weekends, in
which she would prefer to spend that time with her family. This would include her children, most
likely between the ages of 13 to 23 years pld, that keep her up to date on the latest smartphone
trends and apps that they believe would be useful for her lifestyle. Her children would also keep
her aware of the trendiest and most functional smartphone accessories, like phone cases and
headphones.
Gender Female
Age 45-55 years old
Geographic Middle class suburban/metropolitan areas, family communities in LA countlz, family communities in other California counties eventually
Psychographic Hobbies: bqok clubs, online,shopping, group exercise classes
Interests: social medi4 latest accessory trends, staying up-to-date on news and cuffent events
Values: trendiness, quality, convenience, practicality
Customer Needs/Wants r A convenient and practical way to read text on smartphones
o A durable phone case that protects smartphones from daily use and falls
o A phone case that has different designs and patterns that appeal to a wide range of women
OtterBox 2020
t6
The ideal customer would either discover Otterbox 2020 phone cases through targeted
online ads, a Costco trial booth during her bi-weekly grocery shopping trip, or through her
children. As someone who participates in a book club, she would spread the word about her new
Otterbox 2020 phone case to her group of friends. The Otterbox 2020 phone cases would be
spread throughout the communrty bV word of mouth, with targeted online ads, print ads, and
television ads as reinforcements. The customer would enjoy being a trendsetter in her friend
group, as well as the overall convenience and protectiveness ofher new phone case. The upscale
price of the Otterbox 2020 phone case would not deter her or her friends from purchasing the
produc! as their incomes are above average due to their higher education. They also vdlue
trendiness, practicality, convenience, and qualrty when it comes to purchasing new products.
OtterBox 2020
t7
Unique Selling Point
. The product is adapting to the needs of users with low vision so users are able to read
their smartphone easily and conveniently.
o It provides an ego boost for users since taking out glasses at a restaurant or public setting
would not be necessary-
o The OtterBox 2020 has the unique feafure of an optimal glass over fhe screen to correct
Presbyopia.
o The product provides protection from scratches and falls while providing an easier
smartphone experience for those who have low vision.
o OtterBox is a reputable brand that consumers tmst which gives OtterBox competitive
brand equrty.
r The product is innovative, multipurpose phone case that currently does not have any
comparable competitors in the market.
OtterBox 2020
18
SMART Objectives
lncorporate at 5006 of Target,
Walmart, Costoo, and
Best Buy locations in Los Angreles County
lnoorporate et 30% of aell phone retail
outlets {Verizon, Sprint, T-mobile,
AT&T) in Los Angelos County
Expand to an additionalS0
retail(rutlets in Oranp,
Riverside, and San Diego counties
Achieve sales of $1.7 million in ihe Southern
Califomia Area
The SMART objectives for Otterbox 2020 are for the first fiscal year of operations.
Otterbox 2020's main goals include expanding into new areas to reach the target market in
Southern California. Entering into 50%o of Targets, Costcos, and Best Buys, as well as 30% of
cell phone retail outlets in the Los Angeles count5i will allow Otterbox 2020 to be more readily
available to consumers. Expanding into 5O additional retail outlets in the Orange, Riverside, and
San Diego counties will further Otterbox 2020's reach to consumers outside of the Los Angeles
county area that fit into the target market. Mainly, Otterbox 2020's goal is to reach as many
consumers in the target market as possible within the first fiscal year of operations. Becoming
available in outlets where these consumers shopmost frequently is necessary to have any
implemented advertising be effective. If Otterbox2020 enters the projected amount of locations
and sells the projected amount of units per store per month included in the first two SMART
objectives, then $1.7 million worth of sales in the Southem Californiaareawill be achievable by
the end of the first fiscal year of operations.
OtterBox 2020
t9
Gantt ChartlBudget
Otter8ox 2020 Project
Selling ActMUes
Media Adrsrtising Activilisg
Pmmotonal Aclivifies
Sahs Repe Expsnd cell pttons rotaihr p(o6ance
30 second crynmerciel on Televlsion
Got daeoment iil chrisfuna ade twalmart,
OtterBox 2020
20
Action Plan
Selling Activities
Since OtterBox2020 has the backing of it's brand, OfferBox, the time to market will be
significantly shorter than if the product were on its own. With five sales reps in the field
distributing this product to the stores they service, it is expected to be in enough stores to create
$3.46 million in year one. As stated in the SMART objectives, at the end of year one, this
product will be n 50% of Big Box stores and30o/o of cell phone retail locations in Los Angeles
County in the first year. This test market will allow visibility into buying patterns, timing, and
quantlty per store so that in year 2 sales projections can be more accurate. In addition, the
product will be distributed more widely geographically after year l.
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By selling to stores like Target and Best Buy, sales reps are able to save valuable time.
Big Box stores like these generally have regional buyers, meaning the reps do not have to go to
every store to try to sell. Since OtterBox already distributes to all of the locations listed, the
product can be integrated into regular shipments easily. The most time-consuming activity for
representatives will be visiting locations to ensure the shelves of product are presented nicely and
to put up displays.
IL Medio Advertising Activilies
OtterBox 2020
21
A. Print Advertisement
According to WebpageFX, the average cost to advertise nationally in a magazine is
$250,000 per ad, and the cost to advertise nationally in a newspaper is $113,000 per ad. Since
there is not public data on costs to advertise in Walmart or Target catalogues, it is estimated that
each southern california regional ad will cost $30,000. Since ads will be run for both Black
Friday and the Christmas season at each of our big retailers (Target, Walmart, Best Buy), the
total print advertisement expenditure will be $180,000.
B. Online Advertisement
An effective way to introduce a product to consumers is by targeting them through
Facebook, Amazon, and Google ads. Using this marketing tactic is an easy and effective way to
inform thousands of consumers about a product. OtterBox will use these three sources weekly to
introduce OtterBox 2020.
Facebook and Amazon ads allows the company to set their own personal audience,
budget, and starUend time, which can be edited at any time- The first step to creating these types
of ads is deciding who will see the adverthements. They can select oomale", "female", or "both"
as well as choosing an age, ranging from 13 to 65+ years old. Once the gender and age is
identified, the company can set a location (anywhere around the world) they would like their ad
to be seen. After the target audience is chosen, the business can then make their own personal
budget and set their duration time. The budget is the total amount the company wishes to spend
daily and relies on the number of clicks the ad recieves, meaning each time a person clicks on the
ad a percentage gets taken out of the set budget. This means if a business would like to spend a
OtterBox 2020
22
for 3 days the company would pay about $16 every daytotal of $50 for their ad and have it run
until the ad ends.
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The pictures shown is OtterBox's Facebook and Amazon advertisement for a new
product being introduced called OfferBox 2020.Tlte Facebook ads are targeting women between
the ages of 45 and 55 living in Los Angeles County. OtterBox has decided to spend a little over
$10,000 each on these two types of advertisements by the end of the year. For Facebook,
OtterBox will spend $200 every week an*-will be charged an average of $28.57 every day for
these ads. Running these ads weekly for the entire year guarantees it will reach 2,300 to 7,2OO
consumers daily. Facebook and Amazonads can help target consumers and bring in more sales.
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OfferBox 2020
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The photo presented above shows the Google advertisement for OtterBox2020. This type
of ad will help spread awireness about OtterBox's newest product OtterBox 2020. Ottetbox is
planning to pay $10,000 for one year for search network ads, which cost an average of $l to $2
per click. This means advertisements for OtterBox2020 will appear on the top of Google's
search engine when someone sedtches a term that is related to one of OtterBox's set keywords in
the advertisement.
III. Promotional Activities
OtterBoxplans to hold a demonstration center at select Costco stores in the Los Angeles
area during year l. Costco's trial stations are outsourced and run by companies such as Club
Demonstration Services (CDS). CDS does both food and non-food demonstration centers. A
positive side of these demos being outsomced is that it reduces the cost to get materials and set
up the booth. Effective June 2018, CDS charges $179 for 6.5 hours plus $8.50 for the company's
supplies. For one weekend this would bring the cost to $375. Our intent is to set up trial stations
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OtterBox2020 24
for mroweekenrl puiods at diffenent Costco looations ftroughout the selffitod months of Janury;
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OtterBox 2020
25
Resources Consulted
Amazon.com: Frequently Asked Questions about Sponsored Products and Headline Search Ads.
(n.d.). Retrieved May 29,2018, from https://services.amilzon.com/advertising/faq.html
AT&T Locations in Los Angeles County. (n.d.).Retrieved May 22,2018, from
http ://www. city-data. com/locationsiATT/L os-Angeles-County-CA-4.html
Becket, X. (2017, September 06). The Cost of Advertising Nationally Broken Down by Medium.
Retrieved INday 29,2018, from
hfips://www.webpagefr.com/blog/business-advice/the-cost-of-advertising-nationally-bro
ken-down-by-medium/
Buying Facebook ads. (n.d.). Retrieved May 29,2018, from
https : //www. facebook. com/business/learn/how-much-facebook-ads-cost
Costco Locations in Los Angeles County. (n.d.).Retrieved May 22,2018, from
http://www.city-data.com/locations/Costco/Los-Angeles-County-CA-2.html
Find a Sprint location near you. (n.d.). Retrieved May 22,2018, from
https ://storelocator.sprint.com/bchor/
Hanbury, M. (2018; March 24). People are obsessed with Costco's free samples - but it's actually
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