LG L Integrated Marketing Communications UK Launch Proposal


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LG L Integrated Marketing Communications UK Launch Proposal

  1. 1. Today A journey to understand your target Consumer purchasing behaviour Implications Retail environment Strategy Plan Creative Activities Media Budget Measurement
  2. 2. Our understanding of your challenge A campaign that achieves our objectives between March (launch) and August, addressing the following issues:  What the L series stand for in the target consumer’s mind  What role does each handset play (L3/L5/L7)  Choosing a handset to focus on out of the three:  A creative thought and platform to bring the chosen handset  A creative and media response to launch this handset  How does all of this activity relate back to helping the brand create a clear identity and positioning within the UK LG Mobile’s current brand performance indicates a need to clarify what the brand stands for and to tell a clear story relative to competitors To compete, LG must rectify brand perception issues around style, functionality, innovation and acceptance Working with a budget of £3m pounds
  3. 3.  Creative integrated approach to marketing communications Effective strategies based on thinking like your target Based on in depth consumer behaviour understanding Experienced professionals in different areas of IMC Out of the box…
  4. 4. Our IMC 360° approach
  5. 5. Your objectives This objective is key to the success of LG Mobile: Business Objective : Sell 400k of the L Range to drive continued listings in retailers  Sell 400k units of the ‘L’ series phone range between March and August of 2012 Secondary objectives: Create a clear identity for the phones within the ‘L’ series, giving consumers a clear reason to consider the range and a specific phone within it Improve perceptions of the LG mobile brand around performance, quality/value or preference
  6. 6. Our objectivesSupport you in delivering the target sales, but also… Create consumer interest and purchase in LG Smart phones that have no real technological edge vs competition Ensuring we create a platform to grow the market share and position of the brand towards the future Create differentiation through IMC in a commoditized category Push and pull Get the mobile brand to a new position
  7. 7. Our insights Young men (15-19) are more oriented to specs and technical savvy in buying mobiles Young women (15-19) are more oriented to fashion and social trends Smartphones are becoming commodities Little product differentiation: similar specs Mobile retail stores are saturated Young women are price conscious and want to spend more money in their looks Most use pay as you go phones The most common use is social networking sites. Almost everyone who has used their smartphone to access the Internet has visited a shopping site. Younger people use the smartphone for entertainment and communication.
  8. 8. Our insights Phones 4U has by far the youngest profile – perhaps reflecting its price-led image. (Note that the sample size is quite small and so less reliable for than for the others). Network stores attract younger customers. Female consumers are more likely to take advice (45%) about technology products. Under-25s are the major driver of online and mobile sales Effectively targeting them with marketing campaigns and offers is crucial Interaction is the new buzz word in this respect Fashion-themed challenge apps providing an engaging way for brands and retailers to connect with their core audience and raise their brand credentials
  9. 9. A picture of our target More than one in five (22%) under-25s are currently out of work The rising cost of living and the difficulty for youths to get a toehold on the property ladder is forcing more youths to remain in the family home But under-25s are most preoccupied with their appearance, with the majority believing it is important to look well-dressed and be attractive to the opposite sex. Young females are the most fashion-obsessed Teenage girls from the AB socio-economic group stand are the most avid fashion purchasers It is important for one in five 15-24s to win the approval of their peers by mainly buying clothing that they know their friends/boyfriend/girlfriend will like
  10. 10. A picture of our target Six in ten young women include New Look within their repertoire of clothing outlets and its popularity peaks among 15-19s. Under-25s are devoted shoppers, with six in ten (58%) really enjoying the clothes shopping experience and four in ten (41%) spending a lot on clothes (TGI). Mintel’s research reveals that over six in ten (62%) 15-24s make fashion purchases at least once a month. Difference between youths in their teenage years and early twenties:  Teenage are free to buy new garments frivolously as they are yet to take on the substantial financial burden of living independently  Over 20s spent half (53%) of their income on rent or mortgage repayments and bills
  11. 11. Who are they? Young women from 15-20 They still live in their parents home They study school or college They love fashion shopping They are price conscious They love social sharing and interacting They are from a family ABC1 They want a smartphone but only will use basic: web, SMS, music, video, camera They can’t buy a high end smartphone Their parents will buy a phone of a reasonable price
  12. 12. Purchasing behaviour of our target Over a third (36%) view shopping for clothes as an enjoyable social activity to share with friends, rising to four in ten (41%) females and almost half (47%) of teens. A fifth of teenagers like to buy clothes with their parents because they are willing to pay for items Retailers need to enhance the experiential element of their retail environment, for example by adding interactive features or by hosting fashion-themed entertainment events exclusively for youths to stimulate sales from these wealthy social shoppers In-store competitions and fashion-orientated challenges whereby shoppers can win rewards such as discounts or entry into competitions would provide good incentives. Evolution within bricks-and-mortar stores will help to add excitement to the retail experience. Revolutionary store designs, compelling displays and interactive elements will help to encourage spending from the youth market.
  13. 13. Purchasing behaviour of our target Some 57% of youths prefer to go shopping alone because it is quicker and easier In today’s hectic society, shoppers want to maximize every spare minute Retailers need to make the shopping process streamlined and convenient. ‘Tweet mirrors’ in fitting rooms, which capture pictures of customers in different outfits, and shared with friends via social networking sites, enable these solo shoppers to get feedback from peers and help them with their purchasing decision. Young consumers desire a boundary-free shopping experience, the convenience and flexibility of using a smartphone to make fashion purchases at any time and almost anywhere. Skype has become the latest vehicle to be used in the rapidly advancing multichannel retail technology Fashion retailers and brands must discover innovative and compelling new ways to attract their clientele. Interactive and radical new retail features take the in-store shopping experience to a new level and are likely to draw in younger shoppers through their novelty factor.
  14. 14. They search online and consult withfriends… FIGURE 5: How next phone will be chosen, December 2011 Base: 1,896 internet users aged 16+, who use mobile phones SOURCE: GMI/Mintel
  15. 15. They buy online or look online first FIGURE 42: Process of buying mobile phone, December 2011 Base: 1,896 internet users aged 16+, who use mobile phones SOURCE: GMI/Mintel
  16. 16. They plan to change their smartphonein the next 3 months… FIGURE 3: Plans for purchase or upgrade of consumer technology products in the next three months, January 2012 Base: 2,000 internet users aged 16+ SOURCE: GMI/Mintel
  17. 17. They are very likely to switch in theshort term…Plans for purchase or upgradeFIGURE 43: Plans for purchase or upgrade of mobile phones in the next three months,by age, January 2012Base: 2,000 internet users aged 16+SOURCE: GMI/Mintel
  18. 18. Almost 50% haven’t decided and 17%want Android… FIGURE 44: Desire for future mobile phone operating system, December 2011 Base: 1,905 internet users aged 16+ who have a mobile phone SOURCE: GMI/Mintel
  19. 19. They share pics and video, they talkonline and use audio FIGURE 61: Social and sharing online activities performed in the past three months, by device, January 2012 Base: 1,983 internet users aged 16+ who used a computer, smartphone, and/or tablet to access the internet in the past three months SOURCE: GMI/Mintel
  20. 20. Women are more likely to use socialnetworks… FIGURE 62: Social and sharing online activities performed in the past three months, by gender, January 2012 Base: 1,983 internet users aged 16+ who used a computer, smartphone, and/or tablet to access the internet in the past three months Note: Results are a net of online activities performed across computers, smartphones, and tablet computers SOURCE: GMI/Mintel
  21. 21. They are high spenders in clothing andshoes… FIGURE 46: Expenditure ranking, by age group, September 2011 SOURCE: Ipsos MORI/Mintel
  22. 22. They have a preference forfashionable but affordable clothes… FIGURE 5: Retailers shopped at in the last 12 months, September 2011 Base: 960 adults aged 15-24 who buy clothes SOURCE: Ipsos MORI/Mintel
  23. 23. Brand assessment Lack of specific targeting Ads lack USP and don’t reflect style: • Modern design? Not unique feature • Large screen? All smartphones have it Brand wheel is generic Search ability is low (need SEO) Promotion is not very attractive (O2 Arena too) Three handsets: find how we communicate with consumers which one is the one for them Their Facebook is not very interactive • Not engaging activities (contest is generic) • No response to critics • No dialogue
  24. 24. But, this is not bad,it’s an opportunity to create over blank
  25. 25. Target market sizeFIGURE 16: Trends in the age structure of the UK population, 2006-16 2006 2011 2016 % % (proj) (proj) change change 000s % 000s % 000s % 2006- 2011- 11 160-4 3,496 5.8 3,883 6.2 3,898 6.0 +11.1 +0.45-9 3,490 5.8 3,508 5.6 3,892 6.0 +0.5 +10.910-14 3,751 6.2 3,500 5.6 3,515 5.4 -6.7 +0.415-19 3,996 6.6 3,832 6.1 3,571 5.5 -4.1 -6.820-24 4,024 6.6 4,359 7.0 4,182 6.5 +8.3 -4.025-34 7,897 13.0 8,385 13.4 9,257 14.3 +6.2 +10.435-44 9,262 15.3 8,660 13.8 8,081 12.5 -6.5 -6.745-54 7,834 12.9 8,705 13.9 9,095 14.0 +11.1 +4.555-64 7,150 11.8 7,330 11.7 7,428 11.5 +2.5 +1.365-74 4,971 8.2 5,501 8.8 6,344 9.8 +10.7 +15.375-84 3,440 5.7 3,540 5.7 3,829 5.9 +2.9 +8.285+ 1,276 2.1 1,446 2.3 1,681 2.6 +13.3 +16.3Total 60,588 100.0 62,649 100.0 64,773 100.0 +3.4 +3.4SOURCE: Office for National Statistics/GAD/Mintel
  26. 26. Strategic approachWe want to… Associate the brand with fashion Get close to our target audience Get out of the traditional retail space Seek for brand identification within the target Team with a more powerful brand for the target Offer an experience Interact with the target to build engagement Continue to activate the traditional retailers Have an aspirational approach to the brand
  27. 27. Strategic plan deploymentMarch April May June July August Launch event Advertising Regional activation Facebook contest In store activation Retailer activation DIM campaign PR campaign
  28. 28. Brand wheel Value: Makes me feel young, stylish and unique; Makes me feel I spend my money wisely; Fits my needs; Allows me to buy other things I like Personality: Model; Young; Stylish; Fashionable; Energetic; Chic Benefits: Accessible price; Variety of Apps; Free paid Apps; User friendly; Convenient; Customizable; Perfect screen for video Attribute: Android new system; Basic function you need; HD screen and big; Uncomplicated; Thin, light; Modern design; Supported by major brand
  29. 29. Creative conceptWe want to position the phone as… A stylish accessible smartphone Does all that you need Associate with fashion to leverage our brand Great for socializing It’s trendy and fashionable It is…. Simply perfect
  30. 30. How to engage with the target? Teenage girls follow role models. They like fashion and love music. They rather see someone like them but better. That is why we think we should adopt the current trend setters… Become brand ambassadors and campaign image Use the mobile phone for all and show it Launch event Interact and engage in Social Media Participate in activation around UK Adopting a way for the brand to communicate with the target
  31. 31. Little mix X Factor winners 2011 Loved by teen women Loved by moms Hugely voted in X Factor New album 4 different styles of girls that represent our target Fashion icons Loved by the media 315,000 fans on Facebook Famous but not unreachable Represents our brand positioning well Very good at digital engagement
  32. 32. Creative resultBrand identificationand effective stylish positioning
  33. 33. Activities Partnership with fashion brand (ie. New Look)  In store special display: LG Lounge  LG contest to select best model in LG lounge taking pic with phone  Interactive application for trying clothes on  Interactive changing rooms with phone and social sharing
  34. 34. Activities A pull program with sales promotions for channel:  Contest for salespeople on traditional retailers  Launch event with training, fashion advise and a free coupon for one look  Special exhibition in retailers  Train salespeople to offer the whole collection of L Series
  35. 35. Activities  Direct and interactive marketing:  Facebook updates, ads and app  Mobile site  Campaign microsite  Email  New look flyers  SMS LIST/MEDIATYPE # of contacts Response Rate Number of responses Conversion Rate SalesFacebook 1.600.000 1,0% 16.000 1/4 4.000Facebook ads 5.072.980 0,1% 5.073 1/4 1.268Facebook app 366.000 10,0% 36.600 1/4 9.150Email 2.000.000 0,1% 2.000 1/4 500New look flyers 10.000.000 0,1% 10.000 1/4 2.500SMS 5.000.000 5,0% 250.000 1/4 62.500TOTAL 31.418.000 319.673 79.918
  36. 36. Activities Contest for background design:  People can create their design for background cover  All shared on Facebook and open to public vote in both brands page  Best 10 designs will be produced and give for free to all clients of the fashion retailer
  37. 37. Activities Very targeted advertising campaign:  Newspaper  Teen magazines  Digital, Google Ad words and social media  Buses  Tube ads
  38. 38. Activities An integrated public relations approach:  Press conference  Press event with fashion advisors for IT journalists  One to one media interviews with Little Mix and Fashion editors, bloggers and websites  PR supporting regional activation  Media relations activation for launch event with red carpet and online social sharing with pics to select best dressed  Regular updates on brand advance
  39. 39. Launching event Simply perfect fashion show & Rock ‘n’ Roll 3rd March 2012 LG Arena Combination of product launching fashion show and mini concert, the stage will design with both performing stage and runway The background of the Stage will use projector to illustrate the L Serial Video The LG ambassador – Little Mix will be perform for the launching event During the performance there will be models walking on the runway to shows the LG L Serial and new collection from New Look Entrance for all is a red carpet and all women should come in fashionable outfits.
  40. 40. Regional plan LG Mobile Lounge Every weekend from March to August Six major city in the UK (by population)  Birmingham, Liverpool, Leeds, Sheffield, Bristol, Manchester The Lounge will be place on the high street The Lounge will use Volkswagen T1 to design as a mini show room. Every Lounge will have 6 male models to attract the target audiences The male model will be training to be familiar with the L serial products in order to present to the customers.
  41. 41. Media Plan Advertising on Teenage magazine -Shout website (homepage takeover) for 10 weeks -Shout (full colour page) for 6 months -Bliss (full colour page) for 6 months -Top of the pops (full colour page) for 6 months -Mizz (full colour page) for 6 months Advertising on the Metro national colour full page for 8 day Advertising on London Buses 100 Central London Buses (T-Sides) for 2 weeks Advertising on London underground – oxford circus station 20 Digital Escalators Panels for 6 weeks (targeted schedule: week 4-7 pm), weekend 8-12pm) Advertising on Facebook Target Audiences: UK, 15-19, Female (5,072,980 people) Advertising on Google Adwords
  42. 42. Media Plan Budgets Advertising on Teenage magazine Shout website(homepage takeover) cost = £2,000 (per week) * 10 wks = £20,000 Shout(full page colour) cost = £3,885(per ad) * 6 = £23,310 Bliss (full page colour) cost = £7,800 (per ad) * 6 = £46,800 Top of the pops (full page colour) cost = £9,050 (per ad) * 6 = £54,300 Mizz (full page colour) cost = £3,600 (per ad) * 6 = £21,600 Advertising on the Metro (national colour full page ) cost = £37,000 (per ad) * 8 = £296,000
  43. 43. Media Plan Budgets Advertising on London Buses cost for 2 weeks= £1,212 *100 Buses = £121,200 Advertising on London underground – oxford circus station 20 Digital Escalators Pannel = £67,780 Advertising on Facebook 5,072,980 (target) * 1% (RR) * £0.31 (per click) = £15,726 Advertising on Google Adwords £300,000 (people per month) * 0.62 (per click) = £186,000 Total budget = £852,716
  44. 44. Media TimelineWeeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2 4ShoutonlineShoutBlissTop of thepopsMizzMetroBusesTubeFacebookAdwords
  45. 45. Budget Item Quantity Unit cost Total costDirect and interactive campaign 1 £321.573 £321.573Media campaign 1 £852.716,00 £852.716Launch event 1 £500.000,00 £500.000Little mix contract 1 £350.000,00 £350.000PR agency and campaign 1 £200.000,00 £200.000Regional events 1 £300.000,00 £300.000Digital development 1 £150.000,00 £150.000Sales promotion costs 1 £200.000,00 £200.000Channel marketing activation 1 £100.000,00 £100.000 TOTAL £2.974.289
  46. 46. Measurement and evaluationAs per your brief, the following are the KPIs we will measure. Volume sales of the L series phones Awareness of LG mobile and the L series Consumer brand favourability and purchase intentThis should be measured by the following methods: Pre-testing focus groups for copy, creative and other alternatives. Pilot for DIM campaign: SMS, e-mail, Facebook ads, and Adwords Sales in non-traditional channel Sales through traditional channel with salespeople program Increase of volume of shares per shop towards previous products Online sales achieved by the DIM campaign (ROI) Share of voice on publications Tracking study Position of the LG Mobile brand in wider market tracking studies