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AN INTEGRATED MARKETING
COMMUNICATION PROPOSAL
Executive Summary
Market Research APPENDIX
Marketing Strategy Magazine Advertisements
Situational Analysis Email Promotions
Product Analysis Social Media Pages
Competitive Analysis Conceptual Model
SWOT Analysis Communication Plan
Market Segmentation Strategic Summary Chart
Target Market Story Board
Positioning Media Plan
Marketing Objectives Budget Calculations
Communication Strategy Interview Questions
Media Plan
Media Objectives
Media Vehicles
specialized watchmakers,
opportunities with multiple international
increased consumer brands with a higher brand
interest in healthier awareness, keeping up with
lifestyles market, fashion trends can be
especially with the extremely difficult, in an
smartwatches. extremely competitive
market segment.
(MBA Skool)
Market Strategy
Market Segmentation
Fossil Group, Inc. is segmented towards fashion forward, middle-
to-upper-income men and women aged 18-35. Fossil largely
focuses on selling watches and smartwatches to men and women
due to the fact that watches are 70% of their revenue (EuroMonitor
International). Fossil is highly focused on maintaining its loyal
customers, but also branches into new market segmentations.
Since Fossil has such a broad price range, they have a somewhat
broad customer base. Customers who shop at department stores
such as Nordstrom, Macy's, and Neiman Marcus are most likely to
purchase the brand. Watches tend to be classified as a luxury item,
so many people who purchase watches are households with a
higher income. Despite this, a Fossil watch is not something that is
considered highly expensive, so they have a wider customer base.
As said above, Fossil is geared towards 18-35 year olds, which
includes Millennials and Generation Xers. With the invention of
phones, watches are now used as an accessory instead of a
timekeeper. With this being the new trend, Fossil consumers
purchase the watches due to lower cost and fashion trends.
Fossil watches tend to be bought as presents due to their affordable
price, and this is one of the reason Millennials are such an
important target market. The economy is a large driving factor
when making purchases, and Millennials tend to be more racially
and ethnically diverse than older adults. Millennials also tend to be
less religious, less likely to serve in the military, and are currently
on the road to being the most educated generation in American
history (Eads, 1). Millennials look to watches for fashion, but are also
extremely tech-savvy, making them a perfect segment for a
smartwatch.
Market Strategy
Target Markets
1) Young Professionals: Men and women aged 20-30 who are young
professionals, either starting off their career or working on their college
degree, who live a business-oriented, yet somewhat unpredictable
lifestyle. They are always looking for a way to help organize their life as
they work long hours and are generally completing tasks or planning their
week. Values hard work and superior quality.
Main Benefits:
-Generate word-of-mouth throughout the office and social groups
-Work with people who are like-minded
-Looking for ways to organize their hectic lifestyle (Need all-in-one watch)
-Business people tend to wear watches
2) Tech-Savvy: This segment includes men and women, ages 18-25, who
are the first to buy new technology. This individual is always up to date on
the latest technological trends and values efficiency.
Main Benefits:
-Word of Mouth through social media and face to face
-Acknowledges the importance of a quality watch
-Knowledgeable about product’s features
-Intellectual
3) Active Lifestyle: Men and women, aged 18 to 35, who put care and
consideration into being fit and living a healthy lifestyle. This person is
highly dynamic and may be involved in sports or other physically
demanding activities.
Main Benefits:
-Extremely interested on what is going on inside their body (e.i. Heart
rate, sleep schedule)
-Very Competitive
-Use word-of-mouth marketing during sports/working out/other events
-Like to track fitness goals
Marketing Strategy
Positioning
Fossil is present in a time where Millennials are ruling the fashion
trends, and comprise a large portion of the global population.
Fossil has many competitors that are more high-end than they
are, but in this day and age, this is by no means a weakness. Fossil
has geared itself towards the public as a whole, not as one
segmented group. Its iconic tin packaging and retro feel make it a
staple in a specific consumer's mind, allowing it to venture into
new territories and segments. This is why when it comes to the
smartwatch, there are many different ways to position the
product. The smartwatch is more high-end than the average
Fossil watch, giving athletes, business professionals, and tech-
savvy people the chance to flourish with the product and all of its
features. It has been able to position itself against iconic brands
such a Apple and Swatch, while still maintaining an affordable,
original feel.
Marketing objective
The marketing objective is to create an integrated marketing
campaign for the Fossil Q Smartwatch while increasing
awareness and sales. This objective is targeted mainly towards
18-35 year olds that are stylish, innovative men and women who
tend to live busy and hectic lifestyles, and are often on the go.
=
Creative strategy
Creative Brief
Issue being addressed: Fossil sales have been declining at a
relatively rapid race. Sales have gone down nearly $500,000 in
the past two years (Annual Reports). Fossil, being the innovate
company it is, decided to release a new smartwatch collection,
Fossil Q. Unfortunately, sales are not what they had anticipated.
Strategy
The tagline for this campaign is that "Fossil Smartwatch never stops, even when
you do" and it is important to emphasize that throughout the advertising campaign.
Celebrities will be hired that embody each of the target segments, but not
necessarily A-list due to the budget. With those celebrities, the plan is to have
magazine ads with images of the smartwatch and catchy taglines. Commercials that
show products in use will be made, since the main focal point of this campaign is to
emphasize the features and how it helps organize a hectic lifestyle. We plan to
advertise on Spotify, YouTube, Social media, and TV. Commercials will air during
Black Friday and Christmas time, and we want the advertising to directly connect
Social Media
with the target markets.
Fossil’s presence on social media will grow to allow for more interaction between
customers online. Through Facebook, Instagram, and YouTube, Fossil will have the
potential to build new relationships and strengthen existing ones. We will promote
directly to the target markets. Many members are active online, through these
mobile apps and websites. Increasing Fossil's presence through these platforms will
allow for them to have a wider reach within these market segments.
Magazine Ads
Email Promotions
Social Media Ads
Conceptual Model
Communication Plan
Strategic Summary Chart
Finding Action
Insertions:
-Runner's World: 3 months, 2 ads per issue
-Forbes: 4 months, 1 ad per issues
-Wired: 3 month, 1 ad per issue
-This is Us: 2 30 second spots
-Shark Tank, Scorpion, Football in America: 3 30 second spots
-Fox Sports Saturday: College Football: 4 30 second spots
-Facebook: 1 ad weekly for 4 months
Instagram: 1 ad weekly for 4 months
-YouTube: 2 ads a month for 2 months
-Spotify: 2 ads weekly for 2 months
Fossil Fashion Challenge: 1 ad weekly for 1 month
Email Promotions: 2 ads weekly for 2 months
Interview Questions
Wearable Technology Awareness - brand recall test
-What brands of wearable technology are you aware of?
-Do you own a smartwatch?
-Would you ever buy one?
General Advertising
-Where do you buy your wearable technology/where would you
go to buy?
Price
-How much would you pay for this?
-It’s on the market for $250, how do you feel about this?
Social Media
-If you saw this in an advertisement would it catch your eye
(what about it catches your eye)?
Perceptual Map
ROI
Low Response (5%):
$7,665,000 - $ 5,000,000= 53.3%
$5,000,000
* Fossil Q Smartwatches were approximately 14% of total watch sales in 2017, which
equalled $2.119 billion. This makes wearable sales $306,600,000 for the entire year of
2017. The goal of this campaign was to increase sales by 10% in 6 months, making an
increase in sales of $15,330,000. With the budget of $5,000,000, the ROI equaled
206.60% if all goes accordingly.
Forecast
Projected Sales for
Total Impressions
Campaign
(10%) 15,330,000
2,224,550,000 (7.5%) 11,497,500
(5%) 7,665,000
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