Marketing Campaign: Piaggio's Vespa Scooters

Slide 1: Marketing Campaign: Piaggio’s Vespa Scooters Presented by Jaclyn Susan Mosher Chrisanne Sikora Jia Liu Vidya Gopalan Natalia Musatova

Slide 2: Structure of Presentation Part One History, Marketing Now, Competitors, Market Trends Part Two Audience Part Three Young people Divided into Media 2 target markets Retirees Part Four Other Marketing

Slide 3: History Marketing Now Part One Competitors Market Trends

Slide 4: History of the Vespa  Parent company Piaggio (Genoa, Italy)  First appeared in 1946; by 1951, 100,000 sold  Not sold in US from 1980-2000  Made famous in films (Roman Holiday, right)

Slide 5: What is Vespanomics?  Meaning: the ecological, economic, and personal satisfaction one achieves after buying a Vespa scooter. Vespanomics promotes embracing motor scooters as an alternative form of transportation to reduce oil consumption, pollution and traffic congestion.  Additional meanings: 1. A feeling of total exhilaration; consistent with riding a stylish, high performance Vespa. 2. The incomparable level of satisfaction that can only come from helping the environment while also saving a boatload of money on gas.  Origin: A union of the words Vespa and economics. Related words: Vespanomic, adj, vespanomically, adv = ? Play vide

Slide 6: Brand Extension and Promotional Events  Vespa clothing line (top left)  Vintage posters – for sale and used in new campaigns  Models on Vespa – create a scene  Vespa on the Red Carpet

Slide 7: Competition  Brand Name (Vespa) vs. Price (Yamaha, Honda)  Two “knock-off” competitors: Yamaha Vino (left) and Honda Metropolitan (right)  Similar campaigns: “Euro style,” urban, “fun”

Slide 8: Part Two Audience

Slide 9: Audience  Geography: Urban/Suburban settings across the country Coastal Cities as well as interior regions Behavior/Psychographics:  Commuters looking for fun alternative to cars Attracted by lower fuel costs and flexible parking options Easier to maneuver in city

Slide 10: Audience (cont.)  Demographics divided into two distinct age groups Younger consumers (20+ years old)  College kids, young professionals  Older professionals, Baby Boomers, enthusiasts   Approximately half of Vespa consumers are women

Slide 11: Young Consumers (20-35 years old) Attracted by: Vespas in Love  Low up-front cost (when compared to cars)  Low fuel costs  High customizability of Vespa —no two are exactly alike

Slide 12: Older consumers (45+ years old) Attracted by: I feel Low fuel costs as young as him “fun” alternative means of commute Way to reclaim lost youth Enthusiasts who enjoy weekend rides as a hobby People who enjoy fixing/restoring old vehicles

Slide 13: Women  Attracted by high level of customizability  Vespas less intimidating than most motorcycles

Slide 14: Part Three Media

Slide 15: Marketing in the Past  2002: $340,400 Media Used: Magazine, Sports TV, National Sports Radio  2006 Media Used: Co-op Advertising, Foreign, Special Events Marketing  2007 Vespanomics: Go Green Challenge Campaign

Slide 16: Vespanomics Video Contest Measurement Total Videos: 7 Subscribers: 28 Date Range: 8/13-12/05 Total Views:7,639 Total Comments:90

Slide 17: Targeting Younger Market  Segment College students and urban professionals (Boston)  Objective Arouse brand awareness among younger generation Promote two Models: LX 50 and LX150  Positioning 3F (Fun, Fashion, and Freedom)

Slide 18: Why do they love Vespa? I love the style elements It gives me a sense of freedom “ It’s just fun. ”

Slide 19: What is 3F?  Fun Ride your buddy Solo adventure, group ride, or Vespa rally  Freedom Out of congestion and close to Mother Nature Less worry about money (gas & insurance), time, parking, and global warming  Fashion Vespa design Vespa customization

Slide 20: Media Mix  Outdoor media On vehicle advertisements  Print media Magazines and Brochures  Radio  Electronic media Social networking sites Content Communities Screensavers and wall papers

Slide 21: On Vehicle Advertisements  A relatively inexpensive medium with high frequency and reach  MBTA subway system 598,200 passenger trips each weekday Most of the riders are commuting concerned young consumers A relatively longer riding time

Slide 22: Print Media: Magazines Improper Bostonian Circulation: 85,000 Readership: 420,500 Young trendsetters A d Size: ½ Page Horizontal Spread Fashion Feel the wind in your soul patch. Just the thing for your freedom. Never have to help your friends move again. Source: Print ads by McClain Finlon.

Slide 23: Print Media: Brochures Educational Brochure Your Guide to the Road Your Guide Content to the Road Licensing Maintenance Parking Safety concerns Vespa customization DIY tips Vespa local and national clubs info Distribution T stations Shopping districts Adapted small flyers attached to T ads

Slide 24: Radio Boston’s #1 hit music station Target group : women 18-34 Reach more female consumers and rescue frustrated drivers in the traffic Chosen Programs Matty in the Morning Romeo Chosen Spot Duration: 15 second

Slide 25: Electronic Media No.6 most trafficked site in the U.S Mostly college students and young professionals 306,307 members in Boston alone 253 groups about Vespa globally Free business page: two-way communication and viral effects Popular photo sharing site Very active online communities 252 groups about Vespa Thousands of photos tagged as Vespa Screensavers and wall papers Low cost, dynamic

Slide 26: The Photo Contest Vespa Micro site •Cartoon style photos from Facebook •Real photographing artwork from Flickr •Build up a Vespa Contest Group •Develop application •Identify enthusiasts •Vespa Cartoon photo •Send out messages customization •News feed viral distribution •Produced based on top 100 winners •Downloading links posted on both sites Screensavers and wall papers

Slide 27: Rewards Top 1000: A free T shirt (designed by Vespa) Top 100: A free T shirt (printed with their own photos) Top 2: A free Vespa LX 150 They become Vespa’s moving ads.

Slide 28: Marketing Time Frame and Budget Slightly Heavy Slow Heavy down December New Year Early March

Slide 29: Targeting Older Market Market: Boston Seniors rank number 3, among the top 10 markets for number of retirees. Seniors make up a nearly third of the Boston population  newspapers advertisement prompted the seniors for a store visit Media Newspaper Online Newspaper Magazine

Slide 30: Newspaper Scarborough Research Boston Globe (Audit Bureau of Circulation) Metro Boston Different Sections and Features  General Arts and Entertainment Travel Education  Retail

Slide 31: General Rates

Slide 32: Ads must measure 3 columns by 10.5 inches This special position is ideal for high end goods: apparel, travel, automotive and technology. Advertisers reserving space on this page will pay a 15% premium on their existing rate

Slide 33: Metro Boston Metro reaches nearly 250,000 people daily, mainly the commuter riders

Slide 34: Online Advertising Boston.Com Reaches 4.4 million visitors Contextual targeting matches the audience Different Sections News Business Sports

Slide 35: Ad Specification Beltway The Beltway is one of four ads appearing above the fold on Boston.com's homepage as well as in their main Sports page Pixels: 170x65 Max. File Size: 4K max Animation: Static Rich Media: No Third Party: No Location: Boston.com homepage; Sports homepage Half-page Ad The Half-Page Ad, as its name suggests, takes up half of article pages. Pixels: 336x850 Max. File Size: 60K Animation: Up to 30 seconds Rich Media: Yes Third Party: Yes Location: Article pages Notes: Expandable ads can expand up to 504x800

Slide 36: Magazine E-magazine- Environment Friendly Magazine E-reader Survey Female readers: 64%, Male: 36% Age group from 40-44 and 50-54 48% of the e-readers who currently own or intend to buy environment friendly products 74% of e readers included fuel efficiency as a factor in purchasing a vehicle 30% of e readers are presently considering the purchase of a new vehicle

Slide 37: Part Four Other Marketing

Slide 38: Other Marketing Strategies I Product placement in movies and shows II Cause-related sponsorship III Sales promotions and events

Slide 39: A number of celebrities and filmmakers are seen on Vespas (e.g. Jerry Seinfeld, Robert De Niro, Kirsten Dunst, Andy Dick, and Lenny Kravitz). Vespas are showing up in the movies and television shows (e.g. Diane Lane's in "Under the Tuscan Sun" and Hilary Duff in "The Lizzie McGuire Movie."

Slide 40: Two "Ugly Betty" cast members, Hayden Panettiere Ana Ortiz and Michael Urie at the modeling a Vespa GTS: Environmental Media Association Awards, held on 10/24/07, showing their love for Vespas!

Slide 41: Vespa's Go Green Challenge  A chance to win one of three scooters  Create a video about the economic and environmental benefits related to the use of a scooter Play Video

Slide 42: Future Promotional Contest Piaggio will sponsor another video contest (asking people to demonstrate their love for Vespa scooter) Piaggio will sponsor a contest to find the “Best Vespa parking spot” (the crazier the location, the better)

Slide 43: Sales Promotions Pizza delivery services and other food delivery services Offer scooters at the price of 5 for 4. Special pizza carriage installed at the back of the scooter Gap clothing stores are offering a chance to win Vespa Partnering with Credit Card companies (AMEX, Discover) to offer a Vespa scooter in exchange for miles saved up on a credit card  Cause-related Vespa sale Pink Vespa for Breast Cancer cause Red Vespa for AIDS cause

Slide 44: Thank you for your precious time! Any questions or comments? Or, go and buy a Vespa…