Advertising and Promotion Strategy for Release of Bold (P&G's Cinch) -- Deliverable

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This is a project I did during my junior year Brand Management class. This is the deliverable so it's a lot less visual than my presentation (which is also uploaded). The data used originates from a …

This is a project I did during my junior year Brand Management class. This is the deliverable so it's a lot less visual than my presentation (which is also uploaded). The data used originates from a harvard business school case.

This project includes a full promotional strategy (couponing, trial sizes, sampling, etc.) for the product given a specific budget as well as an advertising strategy that included TV, billboard, and other forms of advertising.

There are notes in the notes pages that include further expansion as well as the calculations.

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  • Our metric for determining the calculation is super bowl historic ads
  • Note: cost takes into account the actual materials for the billboards. Assumption $500/month per billboard for leasing
  • All brands advertising, but necessary for first month. There needs to be a quick injectionfor efficient trial generation (not subject to incremental trial). Event 1A:Calculation was derived from $2.70 X 105 (statistical cases).Necessary expenditure for first 3 months as given in case.Event 1B:Cost: 40 million households at 41 cents/sampleTrial: 40 million households X 35% (given usage rate)Event 1C:Sent to the remaining 40 million households of the market.Calculations from spreadsheet, given 17.4% redemption rate and $0.20 face value.
  • Large event chosen as Dawn was not present (who has a performance benefit and at highest risk for cannibalization).Event 2A:Trade allowance continues from previous month, as per case requirements. Event 2B:Assumption: trial size has similar margins to P&G of 32% Gross MarginAssumption: 25% of volume for the month would through trial size (some cannibalization of other sizes)Calculation: [105,000 (stat. cases) X .25 (volume) X 48 (bottles per case)] X $0.12On-Pack premiums gain attention and often get special placement in stores. Will cause trial and repeat.Assumption: $2.00 sponge (in 2011 dollars) has a reverse-inflation adjusted retail cost of ~$0.80 in 1983Assumption: P&G would buy at wholesale and achieve economies of scale in purchasingCalculation: $0.50 (per sponge) X 1,260,000 (units sold)Trial HH Calulation: 1,260,000 (units sold) X .50 (incremental trial rate for second event)
  • Cost Calulation:25 vans for 28 days cross-country.Cost per van:3 employees at $10/hourvan rental $100 a day (rationale: rentals cost ~$25-50 now and when adjusted for inflation would be ~$10-22 in1983. Premium in placedue to need to decorate vans with decals (thus decal costs and higher rental fee)Gas $40 a day (rationale: avg. $1.24 gas prices)800 trial sizes given away at $0.30 for $240 a day800 t-shirts given away at $4.00 for $3200 a dayMiscellaneous expenditures (food costs, sponges, activities) of $150 a dayTotal costs per van, per day: $4,020 X 25 (# of vans) X 28 (# of days) = $2,814,000Trial Calculation: (800 (trial bottle giveaways) X 25 vans X 28 days) X 25% incremental
  • Cost Calculation: Volume per size (10% for 48 oz., 30% for 32, 45% for 22 and 15% for 12 oz.) X 420,000 stat cases X # of bottles in each statistical case by size of bottles = # of bottles sold per size for June X 10% discount on retail price on each bottle + $300,000 delivery costsMultiplied by the 15% redemption rateTrial Calculation: # of bottles sold for month X 15% redemption rate X 25% incremental trial
  • Cost Calculation: Sum of volume sold per size multiplied by discountTrial Calculation: # of bottles sold for month (stat cases X volume sold per size X # bottles in case) X 25% incremental
  • Cost Calulation: $125 per kitchen, for 20,000 households

Transcript

  • 1. Trial Goal 20,000,000Trial Reached 24,331,835Budget Available $37,000,000Budget Used $36,926,721Advertising Budget Available $18,000,000Advertising Budget Used $18,000,000
  • 2. • Pay careful consideration to defining what the brand positioning will be in the market.• Very aggressive promotional strategy in year one• Advertising strategy that works in accordance with our promotional strategy and communicates our brand position
  • 3. Core & ExtendedIdentity Statement Scrubbing Liquid Advert. system Materials -Innovative Uses Herbal -Superior smell Performance Users “Do -Efficiency POS life, not -Family Displays dishes” Brand Colors Packaging Distribution P&G Channels
  • 4. Functional benefits:• More effective• Saves time and effort• Limits need to scrub and scour• Non-abrasive scrubbing system• Parity cleaning when diluted
  • 5. Emotional benefits:• “Saves me time for family”• “Cleaning dishes should be easy, not a chore”• “Trusted friend, supports my family”
  • 6. Self-expressive benefits:• “I am a woman who wants to spend time with my family, not my dishes”• “I work hard. I deserve the best stuff and I refuse the settle for less”• “I’m a mother, not a housewife.”
  • 7. Competence• Reliable, hardworking, secure, efficient, trust worthy, leaderSincerity• Down-to-earth, family- oriented, conventional, sincere, real, though tful, caring, original, friendly
  • 8. Thinking: “Bold is a high Feeling: “Bold is the top-of-the-performance LDL that limits the line cleaning solution to my need to scrub and scour problems with tough caked-on dishes, and saves time and dishes. It frees up time and effort while also being non- energy that I can spend on more abrasive through our important things like my familyproprietary scrubbing system.” and myself.” “Do life, not dishes.”
  • 9. “Bold is the solution to all your problems with tough to clean dishes. It uses its innovative and non-abrasive scrubbing system to assist in tough cleaning jobsand is superior to any other system in the market. Now you can spend less time in the kitchen, and more time with more important things.”
  • 10. Our advertising strategy is comprised of five parts:1. Copy/Objective2. Reason why3. Style/Tone4. Target5. Channels
  • 11. Our copy objective is to show the consumer that Bold is a superior product for cleaning dishes that normally require a lot of time, effort, scrubbing and scouring. Itallows its users to spend much less time and effort on those tough jobs.
  • 12. Bold has an innovative scrubber system that uses biodegradable shells of sea organisms to provide a non- abrasive, homogenous dishwashing liquid that is proven to be tough on caked-on dishes. Product samples anddemonstrations used to prove dramatic difference.
  • 13. In general, ads should have environmentsand situations that emphasize family andour target customer. They should oftenemphasize the functional benefits, thetime/effort saved, and the associatedemotional benefits of this extra free time.The actresses should be women that ourtarget market can identify with to heightenthe self-expressive benefits.
  • 14. Dull red is chosen for the logo andbrand colors for a number of reasons:• Chosen for its association with strength and protection.• Chosen for its high visibility ratings for a market with high competition.• Energetic and Confident color.• Dull (as opposed to scarlet) chosen to avoid red’s association with anger and power.
  • 15. We chose Cooper Standard Black font for ourlogo for a number of reasons:• It is a serif font and serifs have association with professionalism, quality and tradition. – This is similar to Sincerity and Competence (Aaker)• Cooper Standard Black chosen specifically because it is traditional, and yet its asymmetrical circles lends modern influences.• It is a font that projects strength when in bold.
  • 16. • She is a female head of a larger household.• She is age 18-35.• She uses a lot of LDL.• Multiple kids, all with their own busy lives.• She feels she doesn’t have enough time in a day.• She goes to bed exhausted.• She may be a housewife, but she doesn’t enjoy doing chores. She enjoys her family, not the chores.• She looks for quality when she shops, she is not a value customer looking for the cheapest price.• She looks for opportunities to save time.• She wants a brand that feels like family to her.
  • 17. • Husbands of overworked wives.• Single fathers.• Customers who do want value and like that Bold can be diluted (saving money).
  • 18. • Television Advertisements• Magazine Ads• Product Placement• Billboards• Ground-level marketing campaigns (“buzz” marketing)
  • 19. We’re going to advertise primarily duringfamily-oriented shows (full house, family matters). In addition, we’re going to advertise on daytime TV (soap operas) and prime time spots.
  • 20. Costs: $10,000,000 for ~1500 adsCalculation: To determine a television ad cost baseline, we found the cost of a 1983 super bowl commercial vs. 2011. We used that ratio as our standard.
  • 21. Example 1:Pleasant music and shot of mom cleaningdishes with Bold before joining her family forgame night. “Bold: Do life, not dishes.”Example 2:Video opens up on schedule on fridge, soccergame for kids in 15 minutes. She looks at asinkful of dishes with Bold 48 oz. prominentlydisplayed and she says “okay kids, be ready infive minutes.” “Bold: Do life, not dishes.”
  • 22. Example 3:Tired working woman comes home fromwork, exhausted, sees sinkful of dishes andgroans. Looks on the counter and sees anew bottle of Bold left by her husband witha note "try me". She finishes the dishes withminimal effort then hugs her husband.“Bold: Do life, not dishes.”
  • 23. Example 4:Shot opens on fingernail-painted hand turning doorknob. The door opens and the woman enters herkitchen to see a guy wearing a shirt that says“competitor dish soap”. He’s grabbing her dishesand throwing them against the wall. Camera pansto her with a look of horror on her face. Scenerewinds. She enters again, but this time it’s a guywith a Bold t-shirt on and he’s being gentle with herchina. Fade to black. Bold logo. “Keep your dishessafe with Bold.”
  • 24. Example 5:Television advertisements that showBold’s guerilla advertisingcampaigns, more on those in laterslides.
  • 25. We’re going to take out creative full-page and full-color advertisements ineighteen magazines catered to familywomen, and two catered to dads(hobby magazines) to capture the singledad/husband shopping for wifesecondary target customer.
  • 26. Costs: $3,000,000 for the yearCalculated by taking the cost of threefull page ads in Good Housekeeping in2011 (~$150,000) and multiplying it bytwenty magazines.
  • 27. Example 1:Page opens up and a familiar sight is there.It’s a white plate on a mahogany table. Theplate is covered in dried food gunk. Aboveit says “Is this a familiar sight? Peel tab.”There’s a plastic tab and when you pull itremoves off the page to reveal a perfectlyclean plate underneath with the phrase“Never fear, Bold is here.”
  • 28. Example 2:Similar to cologne ads, you can peel back the page tosmell Bold’s herbal fragrance, a unique product benefit.Example 3:Page opens up, two sections.• Your planner today: 1. Dinner 2. Dishes 3. Bed• Your planner on Bold, please fill in the blanks: 1. Dinner 2. Dishes 3. _______ 4. ______ 5. _______ 6. Bed “Bold: Do life, not dishes.”
  • 29. We will plan aggressive product placement incooking shows such as those that were on PBSduring the 1980’s. The cooks will wash their disheswith Bold dishwashing liquid and will occasionallyplug the product subtly.Cost: $2,000,000Rationale: We can use a form of judo branddiversion to gain valuable associations withconsumers who watch these shows and have grownto trust the cooks that run them. Customers canalso constantly see Bold in action.
  • 30. We chose to do billboard advertising due to itscost/effectiveness and its consistent highexposure. Whereas TV advertisements are one-time affairs for 30 seconds, a billboard can be24/7 365 days a year. We will place thesebillboards in close proximity to the 27% ofgrocery stores that account for 75 of salesvolume (footnote 18 in case)Cost: $3,000,000 for 400 billboards
  • 31. In addition to traditional marketing activities, wewill unveil two guerilla marketing campaignsmeant to generate “buzz” and drive home ourbrand positioning. These two campaigns are:• “Meet Bold”• “Bold to the Rescue”• Cost: costs are incurred in promotional budget
  • 32. Meet bold is a campaign where 25 vans deckedout in Bold Branding criss-cross nationwidesetting up product demonstrations andgiveaways. Each van does 800 giveaways a dayand spend 30 minutes to 1 hour at each location.They give out trial size products of Bold as well ast-shirts. Also, they will conduct informal marketresearch to assist in advertising/promotionefforts for the rest of the year
  • 33. For the t-shirts, we wanted them to be highlyinteresting shirts people would wear regularly.We are thinking t-shirts with printed musclesand on the back: “Bold: You’ll feel like a bodybuilder”
  • 34. “Bold to the Rescue” is a campaign we’ve devised tohelp create an association as a trusted family friendas we look to next year. On thanksgiving, around5:00pm we will deploy/outsource cleaning teams to20,000 households. 10,000 will be as a mail-inprize, 10,000 will be random. The cleaning crewswill enter the houses and take over cleaning dutyfor thanksgiving so that families can spend moretime together on Thanksgiving.
  • 35. In order to drive trial customers andrepeat purchases, Bold will also haveto partake in an aggressive (or dare Isay…bold?) promotional strategy toattract and retain the necessaryemployees.
  • 36. • Event 1A Rationale: – $2.70 trade allowance ($283,500) • Trade allowance will insure that product gets stocked in• Event 1B stores at good line of sight. – 1.5 oz. sample to 40 million • 1.5 oz. sample has high trial- households generating ability and can be – Cost: $16,400,000 sent out for good value/trial – 14,000,000 HH trial • Single brand chosen for its• Event 1C ability to avoid being lost in – Single brand mail coupon to sea of other brands and for it’s remaining 40 million households higher redemption rates. Also, – Cost: $6,383,600 this allows us to perform brand positioning. – 6,264,000 HH trial
  • 37. • Event 2A Rationale: Trade – $2.70 trade allowance ($283,500) allowance continues.• Event 2B – 6 oz. Trial Size + on-pack sponge Trial size most liked for $0.40 total device for consumers – Trial size: $0.12 revenue per sale buying a brand never for total $151,200 revenue used before and sponge – Sponge: $0.50 times 1,260,000 sold items gains extra attention and – Total Cost: $478,800 special placement. – 630,000 HH trial (50% incremental)
  • 38. • Event 3A Rationale: Necessary trade allowance – $2.70 TA cont. ($756,000) continued from prior• Event 3B months. Co-op – Ext. Co-op couponing couponing events can event only be done in month 3 and 7. Good – Cost: $2,543,600 value per trial #. Used – Trial HH: 1,566,000 (25% instead of POS price incremental) pack to limit Dawn cannibalization.
  • 39. Event 4A:April is the rollout of a big guerilla marketing promotionalstrategy (titled “Meet Bold”) involving productdemonstrations, giveaways and 25 decorated Bold vansthat hold events cross-country.• Cost: $2,814,000• Trial HH: 140,000• Primary Goal: awareness and “buzz” behind brand• Secondary Goal: Market Research
  • 40. May does not have promotional events. Thiswas decided for a couple of reasons: the first is avoid overabundance of promotion. Thesecond reason was to avoid promoting when Dawn is doing a trade allowance and FSI couponing. It’s important that we avoid promotion with Dawn where possible as Dawn’s primary benefit is performance andstands to receive a disproportionate amount of cannibalization if we are not careful
  • 41. • Event 5A Rationale: Due to high trial – On-pack coupon for 10% levels, the remainder of the year off all sizes to be used on we are looking to drive repeat next purchase. rates and do promotional events – Cost: $427,990 that implant our brand CVP in – Trial HH: 216,247 the consumer’s mind. There is• Also attached: details on more on the mail-in offer on the our “Bold to the November slide. Rescue” mail-in offer
  • 42. There is nothing new scheduled in July toavoid competition with Dawn and to avoidoverabundance of promotional events. On- pack coupons from previous month can still be redeemed in the month of July.
  • 43. • Event 6A: Rationale: Trade – Trade allowance of $2.70 allowance and price pack ($1,134,000) chosen to get preferred• Event 6B stocking and line of sight – Price Pack for 20% off all in distribution channels. sizes. Price pack chosen for it’s – Advertising for “Bold to excellent ability to drive the Rescue” continues. repeat purchases. – Cost: $1,722, 800 Advertising continues to – Trial HH: 1,441,650 keep promotion relevant
  • 44. • Event 7A Rationale: Chosen –Bonus Pack: to draw –12 oz. free with attention, gain 48 oz. better placement in –Cost: $168,932 stores and to –Trial HH: 73,937 encourage repeat purchases
  • 45. No promotion chosen for October tolimit cannibalization of Dawn and toavoid overabundance of promotional events. There is also a break to continue preparation for thanksgiving promotion.
  • 46. • Event 8A Rationale: At this point we – Deployment of have large trial points and thanksgiving dinner sustained repeat. This cleaning teams nationwide promotion is to drive that enter houses and word-of-mouth and to clean up after thanksgiving dinner for free using Bold. hammer home our brand 10,000 mail-in positioning of saving winners, 10,000 random female HOH time so they houses chosen also. can spend it on more – Cost: $2,500,000 important things (e.g.• Mail-in process for family on holidays). December promotion begins.
  • 47. • Event 9A Rationale: Event chosen to – Mail-in event drive repeat and continue – $5 in proof of purchase Bold’s movement into a for a $15 gift card to trusted friendship role in family-oriented stores our target market’s eyes – 100,000 households – Cost: $1,030,000 ($30,000 delivery fee)
  • 48. Trial Goal 20,000,000Trial Reached 24,331,835Budget Available $37,000,000Budget Used $36,926,721Advertising Budget Available $18,000,000Advertising Budget Used $18,000,000
  • 49. Thanks from ! Chalisa Poolvoraluck, NityaSahni, Ross Simons, and Youssef Talaat