I attached assignments "#doc." 1 to 4

MSB210

Spring 2018

Assignment #3-- Strategy Application, Media Plan, and Creative Samples

Due Date: Tuesday, March 20th Midnight

Executive Summary

For effective advertisement of the new products in the market, there must be planning and effective steps followed in order to ensure the consumer gets information about the new product in the market.

Part 1: Marketing Strategy Application

· In the select your age range, in the between 1981 and 2000 section, 290 of the 377 participants are age 18-23, while the other 79 are 24-35.

· T-We need to set up two different strategies to market to different age groups, 18-23 and 24-35

· 18-23: social media, youtube,

· 24-35: billboards, radio, TV (news), pop ups, online newspaper,

For this marketing strategy we are setting up two different ways to attack each section. We split up our target market age range so that we can have two different strategies. The reason we are doing this is because 18-23 year olds live a much different lifestyle than 24-35 year olds. For example 24-35 year olds have more of an opportunity of owning a house or owning a car than an 18-23 year old. The age range is not dramatic but it is significant because of the way we live. The way we live is determined by the purchases we make at these ages. Social media is more appealing to 18-23 year olds than it is to 24-35 year olds, whereas online newspapers are more appealing to 24-35 year olds. We need to market to two target markets differently because lifestyles change and so do personalities. The reason we will market 18-23 year olds on social media and YouTube is because that age group is more technologically savvy and spend most of their time on electronic devices.

Bottom Half Strategy

Communication is in a new era. The way communication is done is not so much done face-to-face and technology is advancing at a rapid rate. One way we are planning to attack our 18-23 year old target market is by advertising our product on social media. Our biggest outlet for social media would be Instagram because pictures are apart of technology and would highlight the aspects of our watches from Fossil.

Top Half Strategy

As for 24-35 year olds, we have a different approach. Our approach is changing because we need to be as efficient as possible and where we will find the highest number of people to reach. We will reach the highest number of 24-35 year olds by aiming at online newspapers, TV, billboards, and radio. These first came to mind because 24-35 year olds are not as much on social media. For example, they are getting up out of bed and going to check to see what’s happened in the news overnight but they’ll do it all online so maybe a pop-up ad will thrive. Then, they’ll turn on the weather to see what the day is going to be like so they can prepare for work. While they are driving to work they are looking at billboards and listening to the radio. Maybe not all of these areas will be hit exactly as said but are bound to happen.

Celebrity Strategy

Zac Efron and Kevin Hart are the three endorsements that we have come down to because they all have a different style.

Zac Efron is an actor and a singer who is a popular figure in a bunch of movies but it’s not just his movies as to why we’ve chosen him. His style is classy, sophisticated, and appealing to men who are about to be in their 30’s or in them currently while all women are attracted to Zac. Men try to emulate his dress code and style throughout movies. He has starred in movies like every High School Musical, Hairspray, and 17 Again. All of these movies show his classy and sophisticated style while still appealing to both genders.

Kevin Hart is a known worldwide for being a comedian. For him, he was such a good comedian that he was asked to star in multiple movies enhancing his views worldwide. A couple movies he has starred in other than his stand up comedies are “Ride Along” and “Get Hard’ starring alongside other comedians like Will Ferrell and “Ice Cube”. Kevin Hart will cause any consumer to stop and listen to our ad because the consumer will know they will get a laugh out of it. Kevin Hart is one of the most recognizable voices, bodies, and comedian across America.

Part 2: Media Planning

In this

Social Media Advertising (Facebook, Twitter, Instagram, Pinterest, whatsapp, etc.)

Part of the Bottom Half Strategy, 18-23. Not as many of the Top Half are on social media as their younger counterparts. So to help market the Fossil smartwatch and hybrid watch we will be taking advantage of social media to market the product. The first posts on media such as Instagram, Facebook, and Twitter will be pictures of the products with general information on the product that makes it exciting, new and easy to use. On media like Snapchat, since the snaps are so short, the watch will be on display to advertise the looks. The second part will have more posts and videos persuading people to buy the watches. Things like promotions will be use, buy one watch get a wallet free.

Outdoor/Indoor Billboards/Radio

Works for the Top Half Strategy. Billboards are great way to advertise to those who don’t spend as much time on social media. For example, this helps the watches appeal to drivers on their way to work or going home for the day. We will try to get the billboards along highways in the places where people will have to drive to work. Such place would be along the highway onto the way into the city. Other billboards are electronic and played within city limits like in New York’s Times Square and other place where millions of Americans can see it. Depending on the electronic billboard, there will be an advertisement saying that the new smartwatch is out, check it out! Also will be advertised at sports games on the jumbotrons. We will pay to have our brand announced during sports games for example, this powerplay is sponsored by Fossil Q Smartwatch.

Television commercial

Works for the Top Half Strategy. Television is another way we'll be getting the message out there. Through television we will be able to release commercials to get the word out about our smart watches. The first wave of commercials in our communication plan will be aiming to inform the public that our smartwatches and our hybrid watches are ready to be sold and inform them on the capabilities of these new watches. We definitely want to have the consumers know that our watch is better than our competitors. Zac Efron will be in some of these commercials to help explain and show the classiness of the watches. The second wave of commercials will be aiming to persuade people to buy the watches. We will have commercials with promotions and ads with Kevin Hart to add humor to the mix. Both waves of commercials will be played on many prime time channels like news channels, sports channels, and comedy channels, and st prime hours so that we will be able to get the most viewers after work to promote the product. Commercials will be broadcasted during big shows like The Big Bang Theory, Sunday Night Football, and American Idol to get the most views.

Celebrity Endorsements

Works for both strategies. We will be using certain celebrities to promote the new smart watches. We will have Zac Efron and Kevin Hart wear our new watches. They will appear in commercials and ads around America. Zac Efron will appear in the commercials meant to inform the public on the watches. He will also be there to show the level of classinsess that these watches have. Kevin Hart will also appear in commercials. He will appear in the persuasion commercials to make them funnier and to keep the public eyes on the product. Who doesn’t laugh when a comedian speaks? Both Efron and Hart will appear on short ads or pics on Instagram, and short snaps on Snapchat displaying the watch. They will also wear their watches during any sort of show they have. For example, Kevin Hart will wear it during his comedy shows, and Zac Efron will wear it during the filming of a movie or a talk show he is on.

Part 3: Creative Samples

A. Big Idea - The Tagline: “Leaving the old generation behind, one Fossil at a time.”

a. This tagline means that for each Fossil watch put forth, older versions of watches will become obsolete, leaving other watches in the dirt and standing out. Trying to innovate the watch game with a smartwatch and a hybrid watch by surpassing watches nowadays and making watches more relevant for today’s uses in techechnology and life.

B. Communication Samples -

a. Social Media- Instagram Ad’s are our choice because both markets that we are targeting both use Instagram.

b. Celebrity- Zac Ef and Kevin Hart. These two celebrities have made the final cut because they all have a style of class and are adored by millions of fans across America.

Communication Plan

	July	August	September	October	November	December
18-23 year old	In the first three months of our marketing we will be informing our consumers on what our product is leading to the persuasion stage	In the last three months of our marketing we will be persuading our consumers to purchase our product
	Instagram is a social media platform that will reach more consumers than any other platform	Instagram is a social media platform that will reach more consumers than any other platform	In the finishing stages of our “Intro” we will have an ad with Zac Efron concentrating on the sophisticated look for the watch	In the start of the persuasion stage Zac Efron will still be used concentrating on the sophisticated look for the watch	In the middle of the persuasion stage we will have an ad with Kevin Hart which will be more humor	In the end of the persuasion stage we will have an ad with Kevin Hart which will be more humor
24-35 year old	In the first three months of our marketing we will be informing our consumers on what our product is leading to the persuasion stage.	In the last three months of our marketing we will be persuading our consumers to purchase our product.
	Facebook is a social media plaatofrm that dominates this age group and will receive more viewers.	Along with our Facebook ad we will have an ad with Zac Efron concentrating on the sophisticated look for the watch	In the finishing stage of “Intro" we will have an ad with Kevin Hart which will be more humor	In the start of the persuasion stage Zac Efron will still be used concentrating on the sophisticated look for the watch	In the middle of the persuasion stage we will have an ad with Kevin Hart which will be more humor	In the end of the persuasion stage we will have an ad with Kevin Hart which will be more humor

Executive Summary

Fossil company is a business that is dedicated to offering high quality

accessories all over the world in a way that servers all the customers’ needs. The

company specializes in accessories that are designed from the company depending on

the customer’s specifications. All the accessories are coated with real gold and are

long- lasting. It has been observed that people working, especially from the age of 18

to 35, have a tendency of not answering their personal phones because they did not

hear it ring or they were too busy to see it ring. Fossil company has decided to come

to their rescue where they have designed smartwatches that have a Bluetooth

connectivity that will help them connect it to their phones so that they can keep track

of who is calling them by just looking at the smartwatch because it alerts them

whenever they are connected.

Currently, the company dealing with smartwatches does not do designer

smartwatches. Fossil company, on the other hand, designs the smartwatches

depending on what the customers want them designed. These watches will be offered

at a reasonable price and delivery will be done on time.

Assignment 4

Executive Summary:

Assignment #4 is a transition from the business aspect of the project to the financial aspect. In the past assignments, the designing of an approach to lead to our action items was put forth. This assignment will be building on the last assignment but this one will now be incorporating the costs of items and other actions to determine the price of this marketing strategy.

Determining the expenses ended with predictions of the price. The strategies pricing came with marketing research and evidence that would result in the implementation of the plan. Every cost was allocated and used to stay within the allotted budget of 5 million dollars. After creating the budget, a Return on Investment chart was created to calculate the amount of money the watches will bring in for Fossil.

Assignment 4 Part 1:

Bottom Half Strategy:

· Social Media

· Hire Social Media Director to make ads

· Purchase information from Facebook to help market the watches

· Facebook user likes/friends/shares information from Facebook

· Purchase information from Twitter to help market the watches

· Twitter user likes/followers/retweets information from Facebook

· Purchase information from Instagram to help market the watches

· Instagram user likes/followers/shares information from Facebook

· Ads will be posted weekly on all social media feeds as well as posts on the Fossil social media accounts. ?!!!!!

Top Half Strategy:

· News

· Hire news marketing director to get our ads in good spots in a newspaper like the New York Times

· Ads will run in the New York Times.

· The ads will run in the newspaper for a two-month time period. Will be on the front page. !!!?

· Television

· Outsource commercial production to a director.

· Commercial will be presented during Monday Night Football. Viewership is averaging 11.9 million for Monday Night Football as of 2017 (usatoday.com).

· Billboard

· Pay for the creation of a billboard to put along roads that will attract potential customers. Make sure it’s easy to read and understand.

· Pay rent to the billboard owners in New York City, Houston, Dallas, Los Angeles, and Chicago.

· Radio

· Pay to have radio ads played on the radio. ?!!!!!

· Broadcast ads across the country.

· Number of People Listening x Cost to Reach 1,000 listeners (CPM) = Cost of Advertising Per Spot (Fitsmallbusiness.com/radio-advertising)

Celebrity Strategy:

· Kevin Hart:

· He is well known for his comedy routines and he can get the consumer’s attention.

· Make a contract with Mr. Hart to wear our watches for 4 months.

Assignment 4 Part 2: PUT IN CHART

Top Half Determining expenses / Expenses Report

· Newspaper:

· New York Times ad $150,000 (Poynter.org)

· This ad will run for a two-month time period.

· Television:

· A lot of the budget will be spent on commercial ads.

· Director/Commercial is $30,000

· Avg. 11.9 million viewers of Monday Night Football. 13% are millennials. 11.9 million X 13% millennials = 1,547,000 viewers of MNF on ESPN.

· 30 second commercial costs $385,000 on Monday Night football. Play four commercials during Monday Night Football. (Variety.com)

· $385,000 X 4 commercials = $1,540,000

· Total: $1,570,000

· Billboard rent:

· Designing a billboard $750.

· $14,000 per billboard in NYC, $3,000 per billboard in Houston, Dallas, Los Angeles, Chicago (Fitsmallbusiness.com).

Cities	Cost	Time	Amount	Total
New York City	$14,000 per month	4 months	2	$504,000
Houston	$3,000 per month	6 months	2	$36,000
Dallas	$3,000 per month	6 months	2	$36,000
Los Angeles	$3,000 per month	6 months	2	$36,000
Chicago	$3,000 per month	6 months	2	$36,000
Total				$648,000

· Radio:

· For a 30-60 second radio ad in New York, Los Angeles, Chicago is $4,000-8,000 (Fitsmallbusiness.com/radio-advertising)

· For a 30-60 second radio ad in Dallas/Fort Worth, Houston, Phoenix, San Diego is $2,000-5,000 (Fitsmallbusiness.com/radio-advertising)

Bottom Half Determining Expenses / Expenses Report

· Social Media

· Twitter- $5.92 per 1,000 impressions (blog.adstage.io).

· Instagram- $6.7 per 1,000 impressions (thrivehive.com).

· Snapchat- Snapchat has two types of advertising and one is through their “Discover” which costs about $50,000 and a snapchat ad costs $1,000 per day (mannixmarketing.com)

· Facebook- $7.19 per 1,000 impressions (bluecorona.com)

Celebrity Determining Expenses / Expenses Report

· Celebrity contracts need to be paid

· Kevin Hart sponsorhip

· Pay him $250,000 to wear out watches. He demands between $100,000 - $1,000,000 for a contract deal (Celebrityspeakersbureau.com).

Expense Report

Action Item	Total Cost
Bottom Half Strategy:
Instagram	$132,000
Twitter	$133,500
Facebook	$135,000
Snapchat (SnapAd + Discover page)	$232,500
Bottom Half Total:	$633,000
Top Half Strategy:
Newspaper Advertising (New York Times + design ad)	$125,000
Television/Streaming Commercials (ESPN Monday Night Football + making commercial costs)	$1,570,000
Billboard Advertising (New York + Houston + Dallas + Los Angeles + Chicago + design costs)	$648,000
Arena/Spots Advertising	$500,000
Radio Advertising	$990,000
Top Half Total:	$
Celebrity Strategy:
Kevin Hart	$250,000
Celebrity Total:
Total Costs:	$

Assignment 4 Part 3:

Forecasting and ROI

Formulas:

Exposure x .05 = Impressions x .2 = Buyers x 200

.05 is amount of Impressions

.2 is amount of Buyers

200 is the cost of a watch 500,000?

Expense Chart (Medium)	Cost ($)	Exposure (people)	Impressions (people)	Buyers (people)	Sales ($)
Instagram Advertising	$132,000	950,000	47,500	9,500	$1,900,000
Facebook Advertising	$133,500	1,500,000	75,000	15,000	$3,000,000
Twitter Advertising	$135,000	500,000	25,000	5,000	$1,000,000
Snapchat Advertising	$232,500	2,250,000	112,500	22,500	$4,500,000
Newpaper Advertising	$125,000	1,000,000	50,000	10,000	$2,000,000
TV Commercial Ads	$1,577,000	1,547,000	77,350	15,470	$3,094,000
Billboard Advertising	$648,000	10,000,000	500,000	100,000	$2,000,000
Arena/Sports Ads	$500,000	1,000,000	50,000	10,000	$2,000,000
Radio Advertising	$990,000	500,000	25,000	5,000	$1,000,000
Total	$4,473,000	20,247,000	962,350	202,470	$21,994,000
ROI	352.32%

ROI Forecast

After the completion of the Return on Investment chart, it was noticed that the watches could possibly bring a return percentage of 215%. A two-step approach to advertising for the smartwatches has been taken, which will include a Bottom-Half strategy and a Top-Half strategy. The Bottom-Half strategy is solely based on social media advertising. The social media is aiming towards the target market ages of 18-23 year olds. Four social media platforms, Instagram, Facebook, Twitter, and Snapchat, will be used in this strategy. The Top-Half strategy is advertising for the 24-35 year olds. The 24-35 year olds are being advertised to through Newspaper, Commercials, Billboards, Arenas, Radio and Celebrities.

The cost to social media platforms will not be as expensive because the social media posts will stay on the social media pages without a cost. Instagram, Facebook, Twitter, and Snapchat posts from Fossil’s account will only have a cost for the designing of the posts. There will be a Social Media Director and a small team hired to help create these. The advertisements will consume the majority of the cost. The numbers we received from these platforms come directly from their social media sites info that we collected without any payment, just by viewing the pictures/posts/tweets/snapchats.

The Top-Half strategy is a list of more traditional advertisements that will connect with the ages of 24-35. The cost of the Top-Half strategy will be more expensive because there is a budget for the advertisements. While the cost is more expensive, the exposure and impressions will be much greater leading to more sales and profit. The celebrities will introduce a product by wearing and creating exposure through TV show and advertisements. Paying celebrities will cause for sales not only because of the product but of the character wearing our watch.

our watch.

Sources:

https://adespresso.com/blog/facebook-ads-cost/

https://aggregateblog.com/facebook-ads-cost-and-bidding/

https://www.marketingcharts.com/featured-24817

https://www.poynter.org/news/new-york-times-publishes-full-page-ad-celebrating-jon-stewart

https://fitsmallbusiness.com/how-much-does-billboard-advertising-cost/

https://fitsmallbusiness.com/radio-advertising/

https://www.usatoday.com/story/sports/nfl/2017/10/03/ratings-monday-night-football-up-again/729798001/

https://www.celebrityspeakersbureau.com/talent/zac-efron/ https://www.celebrityspeakersbureau.com/talent/kevin-hart/

https://blog.adstage.io/2018/02/15/twitter-ads-cost-2017/

https://thrivehive.com/how-much-does-it-cost-to-advertise-on-instagram/

https://www.mannixmarketing.com/blog/6-snapchat-advertising-options/

https://www.shopify.com/blog/12731545-which-social-media-platforms-drive-the-most-sales-infographic

http://variety.com/2017/tv/news/tv-ad-prices-football-walking-dead-empire-1202602792/

https://www.bluecorona.com/blog/how-much-facebook-advertising-costs

Older Millennials (25-34) watched 18 hours and 23 minutes per week in 2017 (Marketingcharts.com)