dELiA*s 2013 Campaign
Upcoming SlideShare
Loading in...5
×
 

dELiA*s 2013 Campaign

on

  • 3,082 views

 

Statistics

Views

Total Views
3,082
Views on SlideShare
3,082
Embed Views
0

Actions

Likes
1
Downloads
18
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

dELiA*s 2013 Campaign dELiA*s 2013 Campaign Presentation Transcript

  • dELiA s v Presentation 2013 1
  • Situation Market Research4
  • Company InformationdELiA’s is a direct marketing and retail company launched in 1993 by Stephen Kahnand Christopher Edgar. Currently they have 100 retail stores in 35 states, consistingof products that provide consumers with a vintage feel at an affordable price. Withover a decade of success behind them, they have struggled in recent years to remainpopular with the target market.dELiA’s is attempting to start fresh again, starting at their executive level. As of April1, 2013, CEO Walter Killough is stepping down four months prior to his contractexpiring. Company chairman Carter Evans said: "Walter has been a great leader,following through on our strategic initiatives and positioning Delias on the right courseto profitability." However, they have remained unprofitable over the past 4 years, butare searching for new opportunities to reestablish their brand and attract new youthfulcustomers. This change comes at a time when the world is online and at the fingertipsof every teenage in the world. They are searching for a new executive with thepassion and drive to utilize this and rejuvenate this company. 1 5
  • Consumer Analysis In 2012, teenagers ages 12-17 represented 7.9% of the U.S. population. That percentage represents 25 million individuals. In the next 5 years, that number is projected to increase 5.3% increasing sales opportunity within dELiA*s target market. These consumers are trendsetters and early adopters. Although teen spending was at a decline in 2012, personal influences 2 such as parent opinions, circumstances and abilities to save, influence these numbers. Age and gender influenced spending and saving habits as well. Boys tended to save more than girls, and older teens saved more than younger teens. 3 Teen Spending Teen Income & Spending Working/job Money from parents/ Teenage girls spend most of their money on clothing and things grandparents that impact their appearance. In the U.S., teenagers have the 4 80% Parents pay for disposable income to spend up to $918 million per week. A everything directly Mintel data report states that weekly teenagers are receiving 60% a total of $36.73 from sources including allowances, jobs and 40% gifts. The report also states that 41% of teens spending money is given to them in the form of allowances or gifts. Another 20% 26% say that their parents pay for all of their expenses. This 0% information is portrayed in the chart to the right. 3 $0 $1-5 $6-10 $11-20 $21-40 $41+ Mintel. (2013) Marketing to Teens - US. - November 2012. Retrieved from Mintel Market Research database.6
  • Teen AttitudesTeens attitudes towards money incorporate financial responsibility. They like to save and do not like the idea of being in debt.52% of teens said that they are good at saving money. Yet the reason for the financial responsibility is linked to wealth. Teenswant to be rich. These attitudes about wealth increase with older teens as their desire for money management improves. Thechart below explores these attitudes. 5 How teens spend money All Teens 15-17 I spend money without thinking I like to save my money at home I am very careful with my money All Teens 12-14 I am good at saving money I like saving money I want to be rich I don’t like the idea of being in debt 0% 20% 40% 60% 80% Mintel. (2013) Marketing to Teens - US. - November 2012. Retrieved from Mintel Market Research database.Word-of-mouth marketing is a huge influencer for teens.This type of marketing is especially relevant to teenage girls. 84% of them use word-of-mouth marketing to share brandpreferences and personal interests. Word-of-mouth marketing is crucial for a social media driven target. This marketingtechnique shows huge potential for dELiA*s especially if teens can become brand advocates who influence other teens. 3 7
  • Teen Values & Identity Teens value being smart, fun and nice. They like to see this reflection in advertising and in their favorite brands. The top values are listed in the chart below and key into what teens look for in their products, brands and advertisements. How teens want to be perceived ...are fun to be around ...are nice to other kids ...are a good citizen ...are good looking ...wear cool clothes ...have talent ...post interesting things on facebook ...know about celebrities and pop culture 0% 25% 50% 75% 100% Mintel. (2013) Marketing to Teens - US. - November 2012. Retrieved from Mintel Market Research database. When teens describe themselves, the top four things they say are that they enjoy school, they are decision makers, they want to be famous and they have been bullied. This can be attributed to the appeal of reality TV stars and other teen programming. Cyberbullying is a huge part of teen life and teens place influence on causes that help prevent this type of bullying. In older teens, a reach for independence and individuality occurs and they become more confident in decision-making. 38
  • Brand RelationshipsTeens identify with brands. Their favorite apparel brands reflected inner desires to “ be cool and look good.” The chart belowexplores teen thoughts about brands. This chart is based on data from 1,490 teens aged 12-17 with internet access. What teens like about brands Is something all my friends know about 73% Tweets to its fans 68% Supports good causes or gives to charities 67% Has its own store or place where you can buy this brand 66% Has a Facebook page that I like to go to 59% Makes me feel confident 52% Has great TV commercials 52% Makes me feel like I’m in the know 51% Shares behind-the-scenes information with me 43% Is a brand my parents love as much as I do 40% Is always doing things that surprise me 39% Offers great discounts or prices 33% Mintel. (2013) Marketing to Teens - US. - November 2012. Retrieved from Mintel Market Research database.Teens want brands that have a strong social conscious and care about causes and charities. Social media pairs well withbrand identity and recognition. Twitter, Facebook and television are among the top media outlets to reach out to teens. Thisis a great way to interact and incorporate brand relationships. 9
  • Product Analysis dELiA*s products are described as “funky”, “fung shui” and “trendy.” Their products include a diverse collection of fashion-forward apparel including dresses, jeans, shorts, swimwear and t-shirts. dELiA*s also has a wide variety of other products such as cosmetics, costume jewelry, home furnishings, household articles, light furniture, sunglasses, and watches. 6 Consumers Say.. Consumers are giving dELiA*s a thumbs down for overall buying experience. According to ResellerRatings.com, dELiA*s scored a 1.5 out of 10 on customer satisfaction, with only two customers out of 23 rating the company above one star. These same statistics blanked over numerous websites as 7 customers complain about customer service and delivery issues. Customers are bashing dELiA*s online store and if these issues are not fixed, it can potentially lead to sinking profits, poor brand image, and termination of loyal customers.10
  • The target market speaks!"I love the clothes there. I think a lot of girls would be "Ive never heard of dELiA*s before, interested. The clothes are cute and summer-like. I but the clothes are really cute! " would definitely shop there because they have cute - Kathleen Kennedy - Age 17 clothes at a reasonable price. " - Cathy Park - Age 17 11
  • Market Analysis DELiA’S is apart of the Internet and mail-order retailing market as well as the women’s clothing market. Companies in the mail- ordering industry sell products through the Internet or mail-order. Some of the top companies include Lands’ End, LL Bean, Amazon, Overstock, and Hanover Direct, as well as GS Home Shopping (South Korea), N Brown Group (the UK), and Otto Group (Germany). Price/Earnings Ratio Price/Cash Flow Ratio Price/Sales Ratio Income & Sales percentages in the Market dELiA*s American Eagle Hot Topic Abercrombie & Fitch Industry Median Market Median -15 0 15 30 45 60 Teen Income & Spending12
  • Worldwide, revenue from Internet and mail-ordering retail totals up to $1 trillion annually. Expansion of the middle classand internet access in developing countries increases growth in this market. In the US, about 20,000 companies are in thismarket and have a combined annual revenue of about $270 billion. In the next two years, the US electronic shopping andmail-order houses is projected to grow at a moderate pace. There will also be an annual compounded rate of six percentbetween 2012 and 2016. Consumer spending habits and technology innovations serve as key growth drivers.In the women’s clothing industry, companies operate in physical retailestablishments that sell clothing and accessories. Top companies in "Worldwide, revenue fromthe market include TJX Companies, Gap, Limited Brands, Hennes andMauritz, Inditex’s Zara chain and Arcadia Group’s Topshop. In the US, internet and mail-orderingthe women’s clothing industry has about 100,000 stores and a combinedannual revenue of $165 billion. In the next two years, the market is retail totals up to $1 trillionprojected to grow at a low rate. Popular clothing styles and consumerspending levels drive the market’s growth. annually."Discount merchants have succeeded in fueling the competition for the lower end part of the clothing market. Discountstores give consumers an offer of fashionable apparel at low prices. Clothing stores typically strive to attract customerswith a certain lifestyle to oppose the sameness of bigger stores. Companies can increase sales through selling distinctiveretail; provide a unique shopping experience, or offering excellent customer service. 8 13
  • Industry Demand Trends Retail companies with the same target market as dELiA’s are experiencing a slightly higher growth over the past 5 years. Many of the store have more store locations, in more states and countries. Brands such as Abercrombie and American Eagle are more established brands that have built well recognized brand images and control a substantial amount of the target market. Over the past three years, the industry average has experienced a 7.52% growth, while over the past twelve months has only seen a .07% growth. With the economy struggling as it is, the retail industry has taken a hit. Aside from the top few company’s: Abercrombie, American Eagle, Forever 21 who each have each seen at least a 2.85% increase, the teenage female retail industry has struggled tremendously. This is a good opportunity for dELiA’s to extend their market share before the economy takes off. 914
  • Competition In annual sales, Delia’s made $217.15 million in 2012. In comparison, this is less than half of what the top competition makes. They have a $32 million market value. In April 2012, their direct marketing gross profit for the quarter ends was $9.7 million or 41.3% of related revenues as compared to $9.9 million or 44.6% of related revenues for the quarter ended April 2011. The cut in gross profit, mainly resulted from lesser merchandise margins, correlated with increased markdowns on clearance goods and more vigorous promotional techniques to attain new consumers, increased shipping and handling costs. 8Abercrombie and Fitch is an upscale clothing brand for young men, women, and kids. It is widely popular, operatingworldwide with about 1,045 stores in Europe, North America, and Asia, through both stores and catalogs alike. ANFgenerated $3.47 billion in net sales in 2010, up from $2.9 billion in 2009. ANF top competitors are Gap (GPS), Aeropostale(ARO) and American Eagle Outfitters (AEO). ANF has consistently been at the top of its sector in terms of profitabilityand sales. As a point of reference, the approximate average price for a pair of mens jeans at Abercrombie & Fitch is $80 10compared with $45 at American Eagle, $25 at Aeropostale and $50 at Gap. 15
  • Hot Topic has 625 mall-based stores in the US, Canada, and Puerto Rico. They sell rock-inspired clothing and accessories to kids ages 12 to 22. With a fiscal year-end in January, Hot Topic’s sales in 2013 were at $741.75 million with an annual sales 11 growth rate of 6.28%. Their net income in 2013 was $19.47 million with a market value at $586.01 million. 12 2012 Competitive Landscape Alexandra Biesada. (n.d.). delia*s company overview. Retrieved from http://subscriber.hoovers.com.libdata. lib.ua.edu/H/company360/overview. html?companyId=52630000000000 Although once a supplier of only outdoor gear, American Eagle Outfitters is now widely known for its casual wear in all aspects of fashion, from jeans and t shirts to pajamas and bathing suits. The retailer is strictly based within malls, and is aimed at both young women and men in their late teens and early twenties. With a market value of $3.96 billion and a low prescreen store, 13 AEO had a 10% sales increase this past year. During the January fiscal year, AEO’s net income in 2013 was $232.11 million 14 and total assets equaling to $1.76 billion. 1516
  • Ranked in Forbes Private Companies #121 in November 2012, Forever 21 is a fat-growing retailer with almost 500 storesin North American, Asia, the Middle East, and the UK, as well as online. The chain offers cheap, fashionable apparel and 16accessories for men, women, teens, and kids. At the fiscal year-end in February they had $3.40 billion in sales with an annualsales growth rate of 30.77% and a low prescreen score. 17Aéropostale is a premiere store in youth fashion, operating more than 1,050 clothing stores in every state in America, Canada,and Puerto Rico. Its brand name P.S. is run for fashion-seeking children, while its main brand is operated towards young adultsand older teens. Although once a private label, the company has become a specialty store concept and has mostly mall-based 18stores. During the fiscal year of January 2013, Aeropostale’s market value was $1.08 billion dollars with a low prescreen score.It also had a sales growth of 1.88% with a net income in 2013 of$34.92 million. Their total assets equaled $741.98 million.With increased competition in the market, Aeropostale has been forced to increase promotions and offer more discounts on itsmerchandise. 19 17
  • SWO T Analysis Strengths Opportunities * Experienced 25 years in retail, catalog and e-commerce * Growth in target market having/ using mobile devices management team to access information 20 * Diverse collection of name brands and proprietary brands * Ability to penetrate the massive growing social media which allow for quick adjustments to rend changes market * Circulating 38.8 million direct mail catalogs each month * Low costs of raw materials 21 * High degree of control over the flow of merchandize * Expand customer base through internet sales, and less mail order Weaknesses Threats * Combined target audiences form a broad target market * Seasonal variations * Weak brand identity * Weakening economy * Inventory decline per store * Less mall traffic * Shipping & Delivery issues and customer complaints 7 * Increased trend in teens to save money18
  • Primary ResearchOur research plan consists of questioning and surveying a select number of females 16-19 years old. With our ultimate goal ofincreasing sales by 6%, we wish to get inside the minds of the target market. We will be asking questions in the survey about howmuch money the consumers spend, where they find their fashion inspiration from, what affects their decisions and where they buyclothing. To gain more information we also conducted continuous in-depth interviews with Cathy Park. She is a 17 year old girlfrom California and her opinions greatly benefited the primary research and analysis of our the campaign.SurveyWho: 38 girls ages 16-19 were surveyed for this campaign.Where: There were 21 surveys completed in California, 11 completed in Alabama, 2 completed in Georgia, 2 completed inFlorida, and 1 survey completed in TexasHow: Our team used Kwik Surveys to create a survey online. This website also was used to analyze and document data.Objective: The objective of this survey is to discover how the target market perceives todays fashion.Goals: The goal of this survey is to find out the most effective ways to relate our message to the target market. We will do this byanalyzing consumer opinions, buying habits and general interest in order to create a successful campaign. 19
  • Results Through our survey we found out that our target market is plugged in online and uses media such as Instagram, Youtube and Pinterest to find fashion inspiration. Friends are the biggest personal influences to whom advice and wardrobe are catered to. When we asked if they had ever heard of dELiA’s, 57% said they had not, 72% of which originated from California. This is why we chose to sponsor the Outside Lands Festival in San Francisco, just in time for back to school shopping. They all said ads and promos heavily effected what they bought, so media buys were catered to this information. Where do you get your fashion inspiration? Despite all of our surveyors being under the age 20 of 18, all of them said them would rather shop in 15 stores rather than online, opposite of what our other primary research stated. We think that 10 promo coupons that provide the option online or 5 in stores will be the best way to effectively reach the entire target. For more results and survey 0 Pinterest Wanelo Online Magazines Instagram Youtube questions flip to the appendix. Team Voodoo Survey. (February 20 2013). Retrieved on February 20, 2013, from http://kwiksurveys.com/app/item-liveresults.asp20
  • ProblemsIn recent years, dELiA’s brand has been struggling toremain popular against competitors such as Forever 21,American Eagle Outfitters, Hot Topic, and Abercrombie& Fitch. Most of the growth efforts have been directedtowards the mall-based stores operation due its boomingsales. Store profits have skyrocketed over both thewebsite and catalogs sales and represent more than50% of total sales. Yet with this said, store profits haveseen less than a 1% increase in sales over the pastyear.  Direct market sales have also fallen more than 4%.dELiA*s has also decreased the amount of catalogs byapproximately 31 million in the past 4 years, hoping toincrease its Internet growth.  Overall the past 4 or 5 years dELiA’s have remained unprofitable, seeing a 3% decrease in sales from fiscal 2010 to2012.  Other problem areas are with brand image, broad target consumer base and customer service. dELiA’s hasrecently changed its merchandise assortments and presentations in attempt to reverse this slide. 22 21
  • New Opportunites dELiA’s is at a peak moment of exciting new opportunities.  We believe that despite high market competition, there are many rich opportunities to take advantage of. With the ever increasing growth of technologies and availability of social media, we will be able to reach a highly sought after target consumer. With a more specified target market, dELiA*s will create a consistent brand image. The company also has the potential to boost sales and brand relationships by opening stores in west coast markets. With the 2013 direct/interactive marketing campaign, dELiA*s will revamp their brand image to entice new customers, as well as maintain positive consumer relationships with current customers.22
  • Marketing Strategy 23
  • Target Market dELiA*s primary target consumer is a trendy, unique teenage girl who is environmentally conscious and a heavy user of social media.  Specifically, she is a 17 year old caucasian female who is a junior in high school.  Her parents are 40 - 55 and married, with an annual household income starting at $40,000. The secondary target audience is non-race specific and includes females between the ages of 12 and 14.  This target includes teens with both single and married parents who have an annual household income above $37,000.    2324
  • Marketing Objective dELiA*s objective for the 2013 direct/interactive marketing campaign is to increase sales 6%.  This will be achieved through traditional and non-traditional media which will increase reach and frequency across target consumers.Advertising Objective dELiA*s 2013 campaign will attract a consumer who trendy, unique and environmentally aware.  The focus of this campaign is to build brand awareness and change consumer perspectives. This campaign will position dELiA*s as a brand attuned to the consumer’s needs and lifestyle.  In addition, dELiA*s will become the ‘cooler’ choice for our target consumer who is focused on unique fashion. 25
  • Marketing Communication Strategy dELiA*s will use nontraditional and traditional media to attract a trendy, unique, and environmentally conscious consumer. We want to revolutionize the perceptions of dELiA’s shoppers and spectators into a more unique, cool, and free-spirited brand. By doing this, we will distinguish dELiA*s from the competition. This will be achieved through the integration of our three sales promotions, interactive and traditional media buys, as well as creative social media buys. The sales promotion portion will be coordinated with transit advertising and innovative social media buys. The interactive and digital part of the campaign will create a cohesive brand image as well as entice new customers. By using a variety of communication tools, dELiA*s will be able to achieve marketing and advertising objectives and have a successful 8-week campaign.26
  • Sales Promotions Outside Lands SponsorshipThe first sales promotion is a sponsorship of Outside Lands.  This music festival will take place in San Francisco, Californiaon August 9th - 11th.  Outside Lands is an eco-friendly music festival that also incorporates music, food, and art.  The targetmarket will be drawn to the eclectically cool feel of this festival.  Included in our sponsorship is a booth for the weekend.  At 24the booth, we will have promotional items such as dELiA*s headbands and beach balls as giveaways.  We will also have a street team that will hand out more giveaways throughout the course of the festival.  The booth will bedecorated to entice our target market.  It will also include a photostation.  This station will be a place where teens can come taketheir picture in front of a cool decorated wall.  If they choose,they can instagram the pictures to #* and it could appear in thetransit advertising.  Examples of this are in the creative executionsection.  The final part of Outside Lands sponsorship is a glowstick balloon drop.  On the last night we will drop thousands ofLED balloons on the crowd.  These balloons will have dELiA*slogo on them and will generate social media buzz. Above: example of dELiA*s booth at the festival 27
  • Do Something Award Show Sponsorship The second sales promotion will be the sponsorship of the Do Something Award Show.  The award show date has not been set yet, but it is assumed to be in late August, around the 25th.  The show will be aired on VH1 and will honor 5 finalist and 1 grand winner with $100,000.  DoSomething. org is the country’s largest nonprofit for young people and social change.  The award show honors 13 - 25 year olds who have stood up and made a change.  dELiA*s sponsorship of this event will boost interest and social commentary by the target audience.  It will also increase positive brand identity as well as relate to dELiA*s consumer base. 2528
  • Pinwheel Event MarketingThe final sales promotion piece is a guerrilla marketing coupon event. According to our primary research, 73.7% of oursample uses coupons to purchase clothing. This is why a couponing event was selected. This event will take place 26during the month of September, in each of the 6 spot markets.  During the event, a street team will place thousands ofpinwheels in a major park in the selected spot market.  Each pinwheel will have a 20% off coupon attached to it and by-passers are free to take one.  This event will take place in a different spot location every week in September.  The firstand lasts weeks of the month will have two coupon events per week to be able to cover all 6 spot markets. This event willgenerate social media buzz as well as increase reach among the target consumers. 29
  • Media P lan30
  • Media ObjectivesThe goal of dELiA*s 2013 campaign is to optimize reach and increase frequency in order to boost salesand brand identity.  The campaign will focus on interactive and digital media and include traditionalmedia buys.  By using this strategy, dELiA*s will optimize reach, increase brand awareness and expandconsumer relationships. 31
  • Timing The 2013 dELiA*s campaign will begin in August and end in September. It will run on a continuous schedule using interactive, digital and media buys. Running the campaign in August and September will take advantage of peak buying during back to school months. August will have high reach due to media buys surrounding the two promotional events: “Outside Lands” and “Do Something Awards.” August will also mark the launch of the dELiA*s app, utilize social media, and manipulate both search engine marketing (SEM) and search engine optimization (SEO). In September there will also be high reach because dELiA*s will run a guerrilla marketing couponing campaign in the 6 spot markets. In the 8-week campaign spread, dELiA*s will have continuous buys in magazine, transit, digital, and social media to maintain campaign consistency and achve high reach and frequency goals. 27 Back to Christmas Birthdays Change of School SeasonTimes 10% 0% 20% 40%Chosen When do you buy the most clothes? The reason back to school season was chosen was based 40% on data from our primary research. Although it was not the 30% highest choice, it shows potential for sales increase. Our 20% target likes to buy during a change of season. This will pair 10% well with our creative strategy and will generate new sales for the campaign buying months of August and September. 0% Back to School Christmas Birthdays Change of Season Team Voodoo Survey. (February 20 2013). Retrieved on February 20, 2013, 32 from http://kwiksurveys.com/app/item-liveresults.asp
  • Geography Spot Marketing will be used to reach the target audience. Spot markets were chosen based on the prevalence of stores per state, population size, and potential for growth. The six spot markets include: Albany, NY; Staten Island, NJ; Miami, FL; Dallas, TX; Tuscan, AZ; Roseville, CA. 28 Albany, NYRoseville, Ca Staten Island, NJ Tuscan, AZ Miami, FL Dallas, TX 33
  • Reach & Frequency Goals Reach is the main focus of dELiA*s 2013 direct/iteractive media buying schedule. A higher reach goal will help to acheive marketing and advertising objectives. By optimizing reach goals, we will increase frequency goals as well. This media buying strategy will increase sales, brand identity and expand consumer relationships. Since our campaign is heavy in social and digital media, many of the reach and frequency goals are guesstimations and are subject to change. In order to cover additional costs or opportunity buys a contingency fund will be set aside. With that said, we have done our best to anticipate reach and frequency goals based on available information. During the sales promotional weeks, reach and frequency goals will be higher than other weeks. The reach ranges from 75-80% for spot buys and 65-70% for national buys. Social media and interactive buys are included in national buys. This is why the national reach is set at that range. The frequency for these weeks ranges from 4-7 for spot buys and 4-5 for national buys.34
  • Spot Reach National Reach Spot Frequency National Frequency 80 60 40 20 0 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8Throughout the rest of the campaign dELiA*s will have continuous buys in magazine, transit, digital,and social media. The spot reach will be set at 70% with a frequency of 4. The national reach willbe set at 60% wil a frequency of 5. By using a continuous buying schedule, dELiA*s will be able to successfully meet campaign objectives by utilizing high reach and frequency media buys. 35
  • Spot dELiA*s 2013 spot media buying campaign will consist of 85% of the total $500,000 budget.  By using a heavy spot buying campaign, dELiA*s will be able to better target primary consumers.  This will generate more sales due to high frequency and reach among the 6 spot markets.  To accomplish this, traditional media such as magazine inserts and transit advertising will be used.  The two sales promotional sponsorships will also generate more buzz and business within the opportune spot locations. Magazine Inserts Sponsorships 23% Promotional items 41% 1% 35% Transit Advertising36
  • NationaldELiA*s will use 10% of the 2013 media total buying budget on national buying.  Due to a relatively lowbudget, a national campaign was not ideal.  The money used for national advertising consisted of internetadvertising.  This includes banner advertisements, social media upkeep and innovations as well assearch engine optimization.  By utilizing interactive national media buys, dELiA*s 2013 campaign will beable to reach a wide consumer base and reinforce customer relationships. SEO Banner ads 16% 10% 75% Social Media 37
  • Media Mix SEO Contingency 2% Social Media 4% 8% Magazine Inserts 35% Sponsorships 20% 1% Promotional items Banner ads 30% 1% Transit Advertising38
  • Magazine InsertsOur biggest media investment was 35% of our $500,000 budget into spot magazine inserts. Despite 51% of our targetmarket being daily users of social media, 78% are still weekly readers of traditional magazines. With so many socialmedia outlets we feel as if these inserts will have a profound impact on these teenage females. 29The unique nature of these seed paper inserts will draw our audience’s curiosity not only towards the advertisement,but will spark an interest in dELiA’s brand all together. The magazine insert will be placed in 17 Magazine. What makesthis medium unique to the campaign is that the advertisements will be printed on environmentally friendly seed paper.This specialized paper has the ability to grow flowers when planted. This medium is not only accessible to over 2 millionteenaged girls 16-19, but also aligns with the campaigns advertising and creative strategies. 39
  • Transit Advertisement Transit advertising will be utilized within the 6 spot markets. The advertisements will be placed on transit bus stations and will run for two 4-week periods. This advertising will be effective to the target market because it will be interactive. The ad itself will have movement and will generate buzz and social media conversation. Transit advertising will increase reach as well as generate frequency in spot market areas. Transit advertising will account for 30% of our total budget. As Generation Y continues to age and mature, an environmentally concerned stereotype is beginning to emerge. They are finding the use of public transportation, bikes, and foot power a more economical way to get where they are going. With the rise of technologies such as social media, teens are finding the world they are growing up in smaller and smaller. Studies show that over the past decade, young people 16-34 years old have decreased the annual number of vehicle miles traveled by 23%. With 30 such an increase in use of public transportation, we believe that our eye-catching advertisements in select transit spots will spark interest to our target market. It will engage them in the ads and generate buzz on social media outlets.40
  • SponsorshipsFrom August 9th - 11th dELiA*S will sponsor Outside Lands Music Festival in San Francisco, CA. This is a three-day green-movement festival, usually attracting between 40,000 - 60,000 attendees a day. Over half of all attendees are under the ageof 25. We are not just targeting residents within driving distance of the closest Brentwood store, but instead the 72% of youngpeople traveling from outside the bay area to partake in the festival. 31Our interactive booth and trendy promotional items will allow us to not only fit in the hipster west coast atmosphere, but will allowus to stand out and create social media buzz. With the glowing balloon drop on the last night, we will leave a positive lastingimpression on the target market attendees. This sponsorship will reinforce our campaign message and encouraging youthfulawareness. Our other sponsorship of the Do Something Awards, engages the target consumers in a fun and socially awareatmosphere. Both of these sponsorships align with marketing and advertising objectives. 41
  • Social Media With 90% of our target market plugged into Social Media, this buy is a must. 75% of our national buying will go into this category. Social media can be accessed everywhere, allowing teens to incorporate more online time in their daily lives. 32 31% of the time teens spend on smartphones is spent on social media. With a target consumer entwined into the digital world, social media becomes pivotal. dELiA*s is currently plugged into the typical social media scene with accounts on facebook, twitter and instagram. Yet they have not fully embraced the potential of new technology. In order to understand the target consumer, social media buys need to be extended.42
  • YoutubeThe first extension of the social media buys is to incorporate Youtube. Youtube is a great medium to use generate interest,increase reach and build better consumer relationships. For this medium, we will purchase in-stream advertisements.Although they are often overlooked and skipped, it offers a bonus that regular youtube ads don’t have. In-stream buyingoffers the ability to change the background of the webpage as well as play a video advertisement. This will be a great wayto change consumer attitudes and generate interest among the target audience.Along side in-stream advertisements, we will also launch a dELiA*s Youtubechannel. This channel will provide the target audience with numerous resourcesand entertainment. Ideas for weekly posts are bulleted below.* DIY clothing tutorials* The best of youtube - top 10 videos of the week* Nail art tutorials* Technology/app updates 32* Celebrity looks from dELiA*s* Music scene updates 43
  • App Renovation: The second extension of social media buys for the 2013 campaign will be app renovation. Although dELiA*s recently launched a catalog app, it is lacking basic brand application necessities. This media buy will redesign and refocus the dELiA*s mobile app. By incorporating these elements below into one app, the target consumer will be more likely to engage with the new image for dELiA*s brand. According to ypulse.com, the top 5 reason our target market uses a mobile phone while shopping are33: * To find store locations * To get discounts and coupons * To research prices * To take photos so they can look for the product at other places * To find product information44 32
  • Paid Exposure:Social media is moving at such a fast rate that advertisers oftentimes just cannot keep up. Many of the most popular appsand websites have not even formulated payment options for emerging advertising media. One solution to this problemis our third extension which is paid exposure. Companies are paying influential teens to repost brand content, images orto just generate positive social media buzz. We decided to use this tactic because we believe this is the future of socialmedia. The chart below was taken from our primary research, indicating the influence teens have over their peers. Friends Family Boyfriend Celebrities 60% 0% 10% 0%We are going to use 1,000 influential teens in our target Whose fashion advice is most important?market to generate buzz about dELiA*s. The sites that 60%they are going to implement this media buy are bulletedbelow. These sites and applications are extremely 45%popular among the target consumer. The sooner wecan brand dELiA*s with the current trends, the better our 30%chances for a successful campaign. 15%* Pinterest* Wanelo 0%* Vine Friends Family Boyfriend Celebrities* Tumblr Team Voodoo Survey. (February 20 2013). Retrieved on February 10, 2013, from http://kwiksurveys.com/app/item-liveresults.asp 45
  • Social Media Upkeep With a heavy social media campaign, we want to make sure there is consistency among all technologies. We will purchase social media upkeep to maintain a single voice throughout the campaign. This buy will also revamp the current facebook, twitter, and instagram to align with an older, trendier target consumer. Banner Advertisement 32 dELiA*s target market is plugged in. Their world is online and that is where we want to be. Banner Advertisements are a great way to direct web traffic and generate reach when battling a lower end budget. Since our target market is so in tune with social media related sites, we will have our primary banners on sites with links to Foursquare, Tumblr, Twitter, etc. Because Banner Ads have such low click-thru rate (usually .2%-.5%), 34 we are not investing a large amount of our budget in this medium. We do think, however, that our creative banners entice current and potential customers. Although typical internet advertisements can get lost in the clutter, our ads will be bold and unique. They will direct the target consumers to dELiA*s website and potentially generate sales. Banner Advertisements will also boost exposure for new customers and serve as reminder advertising for current consumers.46
  • Search Engine OptimizationSearch Engine Optimization will serve as a preliminary launch buy. This will lay the groundwork for the increased internet 5and web traffic. 20% of the target markets time online is spent searching. With that said, we feel that Search EngineOptimization will increase the success of our campaign. It will create a gateway into social media buzz, and generate trafficflow to dELiA*s website. This will also lead to increasing reach and frequency throughout the course of our campaign.Contingency FunddELiA*s 2013 direct/interactive marketing campaign incorporates non-traditional and traditional media. Yet with a largeportion of innovative social media buys, a contingency fund is necessary. Right now, costs can only be estimated for mostof the social media extensions. The $19,502 contingency fund will be used to cover any additional costs in the social mediaarea. The campaign creatively is focused on the intangible cool factor. Inevitably some media buys will just work betterthan others. With a contingency fund, we will have more flexibility to successfully optimize sales potential. 47
  • Creative Strategy48
  • Creative Objectives dELiA*s 2013 creative campaign will engage the target consumer to achieve marketing and advertising objectives. The designs will be interactive, engaging and evoke new purchases. It will also revamp dELiA*s image and increase brand relationships. Live Freely Live Freely will be the tagline of dELiA*s 2013 campaign. This tagline will relate and engage the target market. dELiA*s 2013 campaign also will have a green feel to it. This idea was generated by re-invention and growth of dELiA*s brand image. The idea was sparked by the dELiA*s asterisk. It evolved into a flower which represents growth and life. We wanted to position dELiA*s as a brand that cares and represents all aspects of life. By using a trendy and enviornmentally aware feel for the campaign, dELiA*s can fully target the primary audience. Banner Advertisement 49
  • Magazine Insert Interactive Transit Advertising50
  • The Target Market Speaks! "I really like these ads! The ads and the video both capture the essence of "live freely." They make me feel young, carefree, [and] happy. I think the music for the video is perfect because itsvery upbeat. I think the video and the ads will appealto many girls my age because it incorporates a lot of colors, cute clothes, and a girly vibe." Mobile App Cathy Park - Age 17 51
  • Budget Recap 53
  • Total: $429,498 100%ational Medium Total Dollars Spent % of Budget Budget Banner Ads Social Media $5,000 $38,000 10% 75% Search Engine Optimization $8,000 16% dELiA*s 2013 creative campaign budget was $500,000. With our campaign strategy and creative executions, Total: $51,000 we anticipate using all of the budget with a contingency fund included. 100%udget Recap Medium Total Dollars Spent % of Budget Magazine Inserts $175,000 35% Transit $150,000 30% Banner Ads $5,000 1% Promotional Items $4,498 1% Sponsorships $100,000 20% Social Media $38,000 8% Search Engine Optimization $8,000 2% Contingency $19,502 4% Total: $500,000 100% 54
  • Sources 15 AEO: Competitive Analysis for American Eagle Outfitters - SmartMoney.com. (n.d.). Online Investing: Stocks, Personal Finance & Mutual Funds at SmartMoney.com - SmartMoney.com. Retrieved April 1, 2013, from http:// www.smartmoney.com/quote/AEO/?story=competition. 19 Aeropostale Margins Dive But Stocks Still A Double - Forbes. (n.d.). Information for the Worlds Business Leaders - Forbes.com. Retrieved April 1, 2013, from http://www.forbes.com/sites/greatspeculations/2011/09/12/ aeropostale-margins-dive-but-stocks-still-a-double/. 13 Alexandra Biesada. (2013). American Eagle Outfitters, Inc.. In http://subscriber.hoovers.com.libdata.lib. ua.edu/H/company360/overview.html?companyId=17231000000000#. Retrieved Monday, April 1, 2013, from hoovers.com/. 22 Alexandra Biesada. (2013). dELiA’s, Inc. Retrieved from http://subscriber.hoovers.com.libdata.lib.ua.edu/H/ company360/overview.html?companyId=52630000000000. 18 Alexandra Biesada. (2013). hoovers.com/. In Aéropostale, Inc.. Retrieved Monday, April 1, 2013, from http:// subscriber.hoovers.com.libdata.lib.ua.edu/H/company360/overview.html?companyId=105882000000000. 17 Alexandra Biesada. (2013). hoovers.com/. In Forever 21. Retrieved Monday, April 1, 2013, from http://http:// subscriber.hoovers.com.libdata.lib.ua.edu/H/company360/overview.html?companyId=103504000000000. 11 Alexandra Biesada. (2013). hoovers.com/. In Hot Topic. Retrieved Monday, April 1, 2013, from http:// subscriber.hoovers.com.libdata.lib.ua.edu/H/company360/overview.html?companyId=47342000000000. 8 Alexandra Biesada. (n.d.). delia*s company overview. Retrieved from http://subscriber.hoovers.com.libdata.lib. ua.edu/H/company360/overview.html?companyId=52630000000000. 7 Answers Corporation. (2013). dELiA*s. In Reseller Ratings. Retrieved January 28, 2013, from http://www. resellerratings.com/store/dELiA_s. 1 Barrie, Leonie. (2013, January 8). Delias begins search for new CEO. Retrieved from http://www.just-style. com/news/delias-begins-search-for-new-ceo_id116578.aspx. 23 Best Customers: demographics of consumer demand/ by the editors of New Strategist Publications. (2010). Ithaca, N.Y. : New Strategist Publications, 2010. 28 Biesada, A.  (n.d.).  dELiA*s, Inc.  Hoovers A D&B Company.  Retrieved February 25, 2013, from http:// hoovers.com.libdata.lib.ua.edu. 28 20 Bill Thompson. (January 8, 2012). dELiAs, Inc. (DLIA) - Financial and Strategic SWOT Analysis Review. In PR-inside.com. Retrieved February 3, 2013, from http://www.pr-inside.com/new-market-report-delia-s-inc- dlia-r2987768.htm. 34 Dave Chaffey. (February 1, 2013). Display Advertising Click-through Rates. In Smart Insights. Retrieved March 2, 2013, from http://www.smartinsights.com/internet-advertising/internet-advertising-analytics/display- advertising-clickthrough-rates/. 2 Dave Smith. (May 08 2012). Marketing to Teens. In International Business Times. Retrieved February 15, 2013, from http://www.ibtimes.com/marketing-teens-and-millennials-how-turn-social-consumers-change- makers-697461.58
  • 21 dELiA*s, Inc. (April 10, 2008). dELiA*s Business Strengths. In WikiInvest. Retrieved February 02, 2013, fromhttp://www.wikinvest.com/stock/DELIA*s_(DLIA)/Business_Strengths.25 DoSomething.org. (2012). About Us. In Do Something Awards. Retrieved March 19 2013, from http://www.dosomething.org/.27 Erwina, I.  January 2013.  Back-to-School Shopping. Mintel.  Retrieved March 14, 2013, from http://academic.mintel.com.libdata.lib.ua.edu.14 Event brief of Q3 2012 american eagle outfitters inc earnings conference call - final. (2012, Nov 28). FairDisclosure Wire. Retrieved from http://search.proquest.com/docview/1237166289?accountid=14472.24 Fast Atmosphere. (2012). Latest News. In Outside Lands Music and Arts Festival . Retrieved March 17 2013,from http://www.sfoutsidelands.com/news/.16 Forever 21 Fortune - Forbes.com. (n.d.). Information for the Worlds Business Leaders - Forbes.com.Retrieved April 1, 2013, from http://www.forbes.com/2009/04/29/billionaire-retail-forever21-korea-rich-09-wealth.html.6 Hoovers, Inc. (2013). dELiA*s inc. fact sheet. Retrieved February 4, 2013, from Hoovers Company Recordsdatabase.12 HOTT Competitors | Hot Topic, Inc. Stock - Yahoo! Finance. (n.d.). Yahoo! Finance - Business Finance, StockMarket, Quotes, News. Retrieved April 1, 2013, from http://finance.yahoo.com/q/co?s=HOTT.32 Jessica Draws. (2013). Jessica Draws. In The Social Media Revolution. Retrieved February 27, 2013, fromhttp://jessicadraws.com/infographics/.30 Lipman, Susan Sachs. (2012, July 12). Teens waiting to get drivers’ licenses, prefer publictransportation. Retrieved from http://www.csmonitor.com/The-Culture/Family/Modern-Parenthood/2012/0712/Teens-waiting-to-get-drivers-licenses-prefer-public-transport.3 Mintel. (2013) Marketing to Teens - US. - November 2012. Retrieved from Mintel Market Research database.4 Mintel. (2013) Spending Habits of the Teen Consumer - US.- August 2013. Retrieved from Mintel MarketResearch database.5 Mintel. (2013) Teens and Finance - US - January 2009. Retrieved from Mintel Research database.9 Novellino, Teresa. (2011 February 25). Delia’s Looking to Make a Deal. Retrieved from http://upstart.bizjournals.com/news/wire/2011/02/25/delias-reportedly-putting-itself-up-for-sale.html?page=all.29 Seventeen. (n.d). Seventeen Magazine Media Kit. Retrieved March 12, 2013, from http://www.seventeenmediakit.com.26 Team Voodoo Survey. (February 20 2013). Retrieved on February 15, 2013, from http://kwiksurveys.com/app/item-liveresults.asp.31 Treewingers. (2012, August 14).  Outside Lands 2012. Retrieved from http://treeswingers.com/category/outside-lands-2/.10 Woodhull, S. (2011, January 10). Wikinvest.com. Retrieved from http://www.wikinvest.com/stock/Abercrombie_&_Fitch_Company_(ANF).33 Youth Pulse. (July 25, 2012). Social Shoppers Infographic. In YPulse. Retrieved March 1, 2013, from http://www.ypulse.com/post/view/social-shoppers-infographic. 59
  • The End.64