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ADVERTISING MEDIA PLAN

2010

Carolyn Siska
Sarah Schubert
Brad Ulrich
ADVERTISING MEDIA PLAN 2010 A&F
TABLE OF CONTENTS

Situational Analysis 6

Marketing Goal 8

Media Objectives 8

Media Strategies 9

Media Tactics 10

Media Scheduling and Cost

Flowchart 12
Budget Sheets 14

Plan Performance 16

Appendix 19
SITUATIONAL ANALYSIS

PRODUCT EVALUATION
Abercrombie and Fitch is known for selling upscale men’s, women’s and kids casual clothes
and accessories. There are 1,000+ stores located mostly in malls, but products can also be
bought via catalog and online (Hoover’s).

TARGET MARKET (MRIPLUS )


Demographics
• AGE: 12-17
• SEX: male and female
• RACE: predominantly white
• MARITAL STATUS: single
• EDUCATION: in school

Psychographics
• They have attended some college.
• Their occupation of choice is business related with a
household income of $150,000+.
• They have owned their house for in-between 1-4 years.

Geographics
• Nationwide

Consumer Profile
• GUY: Kyle is 17 years old and loves sports. He enjoys
listening to rock and rap. He likes hanging out with chicks.
In his free time, he likes to work out and play video games.
He watches MTV and ESPN.

• GIRL: Brittney is 16 years old is an avid shopper. She enjoys


listening to pop and rap. She watches MTV and One Tree
Hill. In her free time, she likes to hang out at the mall or go
tanning.

SALES HISTORY
2008: Revenues for the fiscal year totaled $3,540.3 million, a 13% decrease from $3,749.8
million the previous year. Abercrombie and Fitch reported negative earnings (Abercrombie
and Fitch Investors).

2007: Abercrombie and Fitch reported $3,749.8 million in revenue at the end of the fiscal year,
a 1% decrease from the previous year. They are ranked number 602 among the Fortune 500
companies in 2007. (CNN Money)

6
PRODUCT DISTRIBUTION
Abercrombie and Fitch has grown from a national chain to an international chain. They now
operate out of London with one location and Canada with three locations. Construction is
underway to open more stores outside of London later this year. An Abercrombie and Fitch
store is scheduled to open in Tokyo in late 2009.

SWOT
Strengths
• Abercrombie and Fitch has been around for more than
100 years and it is still able to supply the trendy clothes that
people want (Funding Universe).

Weaknesses
• The target market is specific, and it is hard to target the
specific demographic.

Threats
• Due to the economy, the company is struggling because it
produces luxury products.
• The All-American look isn’t as popular anymore with more
people changing to the sophisticated international look.
This opens the door for companies like Urban Outfitters
and American Apparel.

Opportunities
• Between Ruehl and Hollister, these subgroups split the
revenue of Abercrombie and Fitch, the parent company.

COMPETITIVE ANALYSIS
1. American Eagle targets 15-25 year old girls and guys with high-quality, trendy clothing.
They operate more than 954 stores in the US and Canada. They reported a loss of $111,878
thousand in the 2008 fiscal year. (American Eagle Outfitters)
2. Aeropostale is a mall retailer that provides activewear apparel to its target of 14-17 year old
young men and women. They operate more then 800 stores in the U.S. and Canada. Aeropostale
reported a gain of $177.7 million in the 2008 fiscal year (Aeropostale).

ADVERTISING HISTORY
In the past Abercrombie and Fitch sold safari clothes to Ernest Hemingway and Teddy
Roosevelt via its 456-page catalogue. They sent out more then 50,000 copies almost forcing
the company into bankruptcy (Funding Universe).
In 2003, Abercrombie and Fitch discontinued its U.S. quarterly magazine due to its provocative
nature. The company is preparing for the magazine’s 2009 European launch. (Rozhon)
Today, Abercrombie and Fitch still sends its catalogs to their target market to reverse declining
revenues. (Funding Universe)

7
MARKETING GOAL

The purpose of this media campaign is for Abercrombie & Fitch to match last year’s sales and
maintain luxury brand status through the economic recession.

MEDIA OBJECTIVES

TARGET AUDIENCE
Media will be directed toward both male and female, 12-17
year-old, middle and high school students who are financially
dependent on their parents.

GEOGRAPHIC COVERAGE
National media will be used because the Abercrombie &
Fitch brand reaches across the country with more than
1,000 stores in 50 states. A&F Naturals© distribution in
New York, Chicago and Los Angeles will be accompanied
by local and online promotion.

SEASONALITY
Advertising will run year round and intensify before back
to school, Christmas and summer seasons that accompany
new product launches – specifically the new A&F Naturals©
line in August.

REACH & FREQUENCY


Optimum reach is 85% with a frequency of five. Frequency
will increase to eight during new product launch seasons.

CREATIVE IMPLICATIONS
Advertisements and promotions must be visually stimulating
and feature Abercrombie & Fitch’s sexually charged
photographic style.

PROMOTIONAL SUPPORT
A&F Naturals©, an organically and ethically sourced line,
will debut in August in three major DMAs – New York,
Chicago and Los Angeles. Local and online advertising and
promotion will precede the launch.

8
MEDIA STRATEGIES

TARGET AUDIENCE
Internet, magazines, television and mall display advertising are the best media to reach the
target audience.
RATIONALE: High school students are likely to watch television (CW and MTV) and surf Web
sites (Facebook and MySpace) on a daily basis. Magazines (Seventeen and Sports Illustraed)
have high readership within this target. Malls are the primary locations the target purchases
clothing.

GEOGRAPHIC COVERAGE
National coverage is achieved through Internet, magazines and mall displays.
RATIONALE: Internet is no more expensive to advertise nationally than locally. Magazine ads
have a long shelf life and have an average reach of four. Abercrombie and Fitch is in each
state so it is important to advertise in major shopping areas.
Local coverage is achieved through television.
RATIONALE: Television is expensive so this medium is only used in the areas the A&F Naturals©
line is launched.

PATTERN OF SCHEDULING
To achieve continuity, Internet, magazines and mall displays are used.
RATIONALE: These media are relatively inexpensive reach media.
Television and outdoor advertisements are used to heavy-up.
RATIONALE: Television is too expensive to run year-round, but will be used to increase reach
during peak seasonal and promotional seasons, especially leading up to the A&F Naturals©
launch in August.

REACH & FREQUENCY


For highest reach, television and magazines are used.
RATIONALE: These media are the best choices to increase reach.
For highest frequency, mall displays and Internet are used.
RATIONALE: Because of the locations of these ads, greater frequency will be generated.

CREATIVE IMPLICATIONS
Due to the product type, visual media are used.
RATIONALE: Sex appeal is a major brand factor, therefore, it is vital to use visual media. Magazine
rates are potentially less expensive using black and white advertisements, which is already part
of the creative voice of the brand.

PROMOTIONAL SUPPORT
Promotions are supported with Internet, television and magazine inserts.
RATIONALE: Advertisements are geographically specific with these media, which is helpful in
promoting the launch in select locations.

9
MEDIA TACTICS

MAGAZINES
Sports Illustrated
Seventeen Magazine
Full page black and white with bleed
Monthly
Continuity

TELEVISION
The CW: primetime
MTV: late fringe
Gossip Girl or One Tree Hill
:30 second spot
Weekly
Flighting

INTERNET
Facebook
Fandango
Google Adwords
MySpace
Rectangle ad
Continuity

MALL DISPLAYS
Top 3 DMAs:
New York City: 24 malls
Los Angeles: 22 malls
Chicago: 20 malls
Backlit display
Flighting

10
MEDIA SCHEDULING & COSTS Flowchart 12 • Budget Sheets 14

11
MEDIA FLOWCHART

January February March April May June


MEDIA 5 12 19 26 2 9 16 23 2 9 16 23 30 6 13 20 27 4 11 18 25 1 8 15 22 29
Magazine:
Seventeen
Magazine
Sports
Illustrated
Internet:
Facebook
Myspace
Google
Adwords
Fandango
Non-traditional:
Mall
Displays
Television:
MTV-
Late
fringe
CW-
primetime
TOTAL:

12
July August September October November December Cost
6 13 20 27 3 10 17 24 31 7 14 21 28 5 12 19 26 2 9 16 23 30 7 14 21 28

$1,008,000
$2,857,400
$4,320,000

$217,800

$7,110,720
$9,425,700
$24,939,620

13
BUDGET WORKSHEETS

DMA: Nationwide

First
Qtr Second
Qtr Third
Qtr Fourth
Qtr TOTAL


MTV:
 GRP 0 320 320 320 960
Late
Fringe CPP 0 









 
 7,407 









 
 7,407 









 
 7,407 









 
 5,555
Cost $0 $2,370,240 $2,370,240 $2,370,240 $7,110,720
The
CW:
 GRP 0 300 300 300 900
Primetime CPP 0 







 
 10,473 







 
 10,473 







 
 10,473 









 
 7,855
Cost $0 $3,141,900 $3,141,900 $3,141,900 $9,425,700
Magazine:
 GRP 96 96 96 96 384
Seventeen Frequency 3 3 3 3 3
Rate $84,000 $84,000 $84,000 $84,000
Cost $252,000 $252,000 $252,000 $252,000 $1,008,000
Internet: GRP 252 252 252 252 









 
 1,008
Frequency 12 12 12 12 12
Rate $5,400 $5,400 $5,400 $5,400
Cost $1,080,000 $1,080,000 $1,080,000 $1,080,000 $4,320,000
Magazine: GRP 192 192 192 192 768
Sports
 Frequency 3 3 5 3 3.5
Illustrated Rate $204,100 $204,100 $204,100 $204,100
Cost $612,300 $612,300 $1,020,500 $612,300 $2,857,400
TOTAL GRP 











 
 540 









 
 1,160 









 
 1,160 









 
 1,160 









 
 4,020
Average
CPP 0 









 
 8,940 









 
 8,940 









 
 8,940 









 
 6,705
Cost $1,944,300 $7,456,440 $7,864,640 $7,456,440 $24,721,820

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DMA: New York

First
Qtr Second
Qtr Third
Qtr Fourth
Qtr TOTAL


Non-trad: GRP 0 









 
 1,680 









 
 1,680 









 
 1,680 









 
 5,040
Mall
Display Frequency 0 24 24 24 18
Rate $1,000 $1,000 $1,000 $1,300
Cost $0 $24,000 $24,000 $31,200 $79,200
TOTAL GRP 0 









 
 1,680 









 
 1,680 









 
 1,680 









 
 5,040
Average

Frequency 0 24 24 24 18
Cost $0 $24,000 $24,000 $31,200 $79,200

DMA: Los Angeles

First
Qtr Second
Qtr Third
Qtr Fourth
Qtr TOTAL


Non-trad: GRP 0 









 
 1,496 









 
 1,496 









 
 1,496 









 
 4,488
Mall
Display Frequency 0 22 22 22 16.5
Rate $1,000 $1,000 $1,000 $1,300
Cost $0 $22,000 $22,000 $28,600 $72,600
TOTAL GRP 0 









 
 1,496 









 
 1,496 









 
 1,496 









 
 4,488
Average

Frequency 0 22 24 22 16.5
Cost $0 $22,000 $24,000 $28,600 $72,600

DMA: Chicago

First
Qtr Second
Qtr Third
Qtr Fourth
Qtr TOTAL


Non-trad: GRP 0 









 

 1,300 1,300 









 
 1,300 









 
 3,900
Mall
Display Frequency 0 20 20 20 15
Rate $1,000 $1,000 $1,000 $1,300
Cost $0 $20,000 $20,000 $26,000 $66,000
TOTAL GRP 0 









 

 1,300 1,300 









 
 1,300 









 
 3,900
Average

Frequency 0 20 20 20 15
Cost $0 $20,000 $20,000 $26,000 $66,000

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PLAN PERFORMANCE

MAGAZINES NON-TRADITIONAL: Mall Displays


Seventeen
Reach: 32 New York City DMA
Frequency: 1 Reach: 70 (given)
GRP: 32 (Cir.) 8,694,000 x (R) .70= (Univ.) 6,085,800
Sports Illustrated Frequency: 12
Reach: 64 GRP: 840
Frequency: 3 (R) 70 x (F) 12= 840
GRP: 192 Gross Impressions: 6,085,800 x 840 = 5,112,072,000

Combined GRP: 32 + 192 = 224 Los Angeles DMA


Combined Reach: .32 + .64 = .96 Reach: 68 (given)
.32 x .64 = .20 (Cir.) 12,186,000 x (R) .68= (Univ.) 8,286,480
.96 - .20 = .76 Frequency: 11
Combined Frequency: 224 / 76 = 2.9 GRP: 748
Gross Impressions: (R) 68 x (F) 11= 748
(Univ.) 31,630,845 x (GRP) 224 = 7,085,309,280 Gross Impressions: 8,286,480 x 748 = 6,198,287,040

INTERNET Chicago DMA


Reach: 63 Reach: 65 (given)
Frequency: 252 (Cir.) 2,858,000 x (R) .65= (Univ.) 1,857,700
GRP: 15,876 Frequency: 10
GRP: 650
Combined GRP: (R) 63 x (F) 4 = 252 (R) 65 x (F) 10= 650
Combined Reach: (Impr.) 20,000,000/ Gross Impressions: 1,857,700 x 650 = 1,207,505,000
(Univ.) 31,630,845 = .63
Combined Frequency: (# sites) = 4 TOTAL COMBINED:
Gross Impressions: GRP: 224 + 252 + 620 = 1,096
(Univ.) 31,630,845 x (GRP) 252 = 7,970,972,940
Combined Reach:
CABLE TELEVISION .76 + .63 = 1.39
MTV .91 + .95 = 1.86
Reach: 80 .99 x .95 = .94
Frequency: 4 .76 x .63 = .47
GRP: 320 .91 x .95 = .86
The CW 1.39 - .47 = .91
Reach: 75 1.86 - .86 = .99
Frequency: 4
GRP: 300 Combined Frequency: 1,096 / 94 = 11

Combined GRP: 320+300 = 620 Gross Impressions:


Combined Reach: .80 +.75 = 1.55 7,085,309,280 + 7,970,972,940 + 19,611,123,900 =
.80 x .75 = .60 34,667,406,120
1.55 - .60 = .95
Combined Frequency: 620 / 95 = 6.5
Gross Impressions:
31,630,845 x 620 = 19,611,123,900
16
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APPENDIX Cost Calculations • Rates • Research

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COST CALCULATIONS

MAGAZINES
Seventeen Sports Illustrated
• YEAR • YEAR
Reach: 32 Reach: 64
(Cir.) 2,350,000 x (RPC) 4.38= 10,293,000 (Cir.) 3,150,000 x (RPC) 6.45= 20,317,500
10,293,000/ (Univ.) 31,630,845= .32 20,317,500/ (Univ.) 31,630,845= .64
Frequency: 12 Frequency: 12
GRP: 384 GRP: 768
(R) 32 x (F) 12= 384 (R) 64 x (F) 12= 768

• MONTH • MONTH
Reach: 32 Reach: 64
(Cir.) 2,350,000 x (RPC) 4.38= 10,293,000 (Cir.) 3,150,000 x (RPC) 6.45= 20,317,500
10,293,000/ (Univ.) 31,630,845= .32 20,317,500/ (Univ.) 31,630,845= .64
Frequency: 1 Frequency: 1
GRP: 32 GRP: 64
(R) 32 x (F) 1= 32 (R) 64 x (F) 1= 64

• QUARTER • QUARTER
Reach: 32 Reach: 64
(Cir.) 2,350,000 x (RPC) 4.38= 10,293,000 (Cir.) 3,150,000 x (RPC) 6.45= 20,317,500
10,293,000/ (Univ.) 31,630,845= .32 20,317,500/ (Univ.) 31,630,845= .64
Frequency: 3 Frequency: 3
GRP: 96 GRP: 192
(R) 32 x (F) 3= 96 (R) 64 x (F) 3= 192

• 3RD QUARTER
Reach: 64
(Cir.) 3,150,000 x (RPC) 6.45= 20,317,500
20,317,500/ (Univ.) 31,630,845= .64
Frequency: 5
GRP: 64
(R) 64 x (F) 5= 320

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INTERNET NON-TRADITIONAL
• MONTH Mall Displays
Reach: 63 • MONTH
(Impr.) 20,000,000/ (Univ.) 31,630,845= .63 New York City DMA
Frequency: 4 Reach: 70 (given)
GRP: 252 (Cir.) 8,694,000 x (R) .70= (Univ.) 6,085,800
(R) 63 x (F) 4= 252 Frequency: 12
GRP: 840
• QUARTER (R) 70 x (F) 12= 840
Reach: 63 Los Angeles DMA
(Impr.) 20,000,000/ (Univ.) 31,630,845= .63 Reach: 68 (given)
Frequency: 12 (Cir.) 12,186,000 x (R) .68= (Univ.) 8,286,480
GRP: 252 Frequency: 11
(R) 63 x (F) 12= 756 GRP: 748
(R) 68 x (F) 11= 748
TELEVISION Chicago DMA
• MONTH Reach: 65 (given)
MTV (Cir.) 2,858,000 x (R) .65= (Univ.) 1,857,700
Reach: 80 (given) Frequency: 10
Frequency: 4 GRP: 650
GRP: 320 (R) 65 x (F) 10= 650
(R) 80 x (F) 4= 320
CPP: 7,407 (given) • QUARTER
Cost: $2,962,800 New York City DMA
(CPP) 7,407 x (GRP) 320= $2,962,800 Reach: 70 (given)
The CW (Cir.) 8,694,000 x (R) .70= (Univ.) 6,085,800
Reach: 80 (given) Frequency: 24
Frequency: 3.7 GRP: 1,680
GRP: 300 (R) 70 x (F) 24= 1,680
(R) 80 x (F) 3.75= 300 Los Angeles DMA
CPP: 10,473 (given) Reach: 68 (given)
Cost: $3,141,900 (Cir.) 12,186,000 x (R) .68= (Univ.) 8,286,480
(CPP) 10,473 x (GRP) 300= $3,141,900 Frequency: 22
GRP: 1,496
- (R) 68 x (F) 22= 1,496
Chicago DMA
Reach: 65 (given)
(Cir.) 2,858,000 x (R) .65= (Univ.) 1,857,700
Frequency: 20
GRP: 1,300
(R) 65 x (F) 20= 1,300

21
Carolyn Siska • Sarah Schubert • Brad Ulrich