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Snip to be Cool
with dELiA*s
DMEF Collegiate ECHO Challenge Proposal 2012-2013
St. Lawrence College
Kingston, ON
Canada
5/17/2013
dELiA*s has been challenging the teenage retail market and so far succeeding in growing into a plentiful
company with a large following of customers. Their clothing is girly, colourful and always fashion-aware.
But the term ‘teenager’ is vague and they’re now seeking a secondary younger audience for their lifestyle
brands. 11
With such big competition like Aeropostale, American Apparel and American Eagle – not to
mention Hot Topic among others 8,18
dELiA*s is struggling to maintain its position and keep its brand
recognition. Our main objective was to gain new customers in the ‘Tween generation’ of ages 12-14 while
still engaging their existing customers of 17 year old girls. 9
Our campaign recommendation uses a cut-out model to intrigue consumers about the products. Consumers
will receive a promotional brochure (or have to use dELiA*s various social media to download a copy)
with a cut-out model attached. Girls will then have to use their dELiA*s catalogs, the brochure itself and/or
social media platforms (Facebook, Twitter, Instagram, Pinterest) to find clothes that they like to dress the
model. The model will be then glued onto an Entry Form to be entered into a weekly contest. All entries
(mailed into their local store or scanned and uploaded online) will be entered into a draw to win free items,
discounted coupons…etc. The contest will run twice a week for 8 weeks from July 6th 2013 until August
31st 2013. Judging will be conducted by the store owners and assistant managers of each store.
Bus terminal advertising and television broadcasts will be produced for initial build-up followed by the
direct mail (brochure) distribution and social media interaction (posting about contest details and links to
catalog and clothing images.) The television commercials will be placed on the FOX & CW network to
catch audience’s attention while watching popular shows like ‘Glee’ and ‘America’s Next Top Model.’ 4
Print advertising will also be produced during the run of the campaign partnered with SEVENTEEN
magazine. 1
Company Profile
dELiA*s, Inc. is a multi-channel retail company comprised of two lifestyle brands called dELiA*s and
Alloy. The company sells apparel, accessories and footwear to young teenage girls through direct mail
catalogs, websites and for dELiA*s, mall-based retail stores. 8
The company was founded in New York and
now consists of well over 100 stores across the United States. 9
Industry Apparel Retailers Sector Consumer Services
Fiscal Year-end 01/2014 Revenue $222.70M
Net Income $-21.55M 2013 Sales Growth 2.6%
Employees 2,040
The company currently relies on third parties for essential business operations and services such as
printing, shipping, paper supplies, operating their e-commerce webpages and the outsourcing of their call
center function.11
dELiA*s currently has 4,330 Twitter followers20
, 691,000 Facebook ‘likes’19
, 106484
Instagram followers21
& 10,641 Pinterest followers.22
Market Segments
dELiA*s reported generating net sales primarily from direct marketing (catalogs along with dELiA*s and
Alloy e-commerce websites called www.delias.com and www.alloyapparel.com) and their retail stores.11
Fiscal Net sales (thousands) 2012 2011 2010
Retail $ 125,595 $ 123,223 $ 122,444
Phone 3,836 6,872 11,713
Internet 93,268 87,057 86,540
Total Direct 97,104 93,929 98,253
Total Net Sales $ 222,699 $ 217,152 $ 220,697
Consumer Data
dELiA*s primary target audience are 17yr old girls in Junior high school; 9
a target within the 12-19yr old
demographic approximately 33 million strong and reportedly among the fastest growing in the United
States. 17
Currently, teens and tweens born between 1991-2002 make up nearly 20 percent of the US
population, are more ethnically diverse than any other generation of the past, never knew a world without
the Internet, cell phones, or Google and are extremely savvy and educated consumers. 15
Competitor Analysis
dELiA*s key competitors are Aeropostale Inc, American Apparel Inc, Rue21 Inc, Body Central Corp, Wet
Seal Inc, Zumiez Inc, Hot Topic Inc & Pacific Sunwear of California Inc. 8
Along with American Eagle,
Hollister & Urban Outfitters. 18
 Aéropostale designs and sells casual apparel and accessories; targeting consumers in ages 14 to 17
teens. Typical merchandise includes graphic T-shirts, sweaters, jeans, outerwear and accessories. The
company is also known to hold special sales events on college campuses. The company launched its first
online catalog in 2005 and reported net sales totaled $129 million in fiscal 2009 (ended January 30
2010), up 48 percent from the year before. 12
 American Apparel has the largest sewing facility in North America. Unlike their competitors, they make
their own product. The company also committed to sustainability. It has the strictest and most
progressive EPA standards in the US. As of May 1, 2013 American Apparel had approximately operates
248 retail stores in 20 countries & serves over 60 countries worldwide on their e-commerce website. 2
 American Eagle is a mall-based retailer that sells denim and other casual apparel and accessories
(sweaters, t-shirts, fleece, outerwear, and accessories) aimed at young men and women ages 15-25. The
chain operates more than 1,000 stores in all 50 US states, Puerto Rico, Canada, and now in the Middle
East. Virtually all of the company's products bear its private-label brand names: American Eagle
Outfitters and aerie. Direct sales come from the company's website and its AE magazine; a lifestyle
publication that doubles as a catalog. 3
 Hollister Co. provides apparel for men and women. The company was founded in 2000 and is based in
Los Angeles, California. The company’s products include logo tees, sweaters, jeans, shorts, outerwear,
tanks, sleepwear and a wide range of accessories. Hollister also offers a diverse collection of body care
products, as well as gift cards. The company distributes its products through a chain of stores in the
United States, Canada, and the United Kingdom. In addition, it sells its products online. Hollister Co.
operates as a subsidiary of Abercrombie & Fitch Management Co. 7
Marketing Objectives
 To increase amount of existing 17yr old Junior high primary target market repeat/impulse purchases 9
 To expand brand presence & awareness to new secondary target market of 12-14yr old ‘Tweens’ 9
Target Market Profile
Demographics:
 Females between the ages of 12 to 15 (classified as ‘Generation Y’ tweens) 13
 Enrolled in junior high or entering high secondary education 9, 11
 Living in a working middle-class or blue-collar family
 Disposable income from doing chores, receiving gifts or borrowing from family & friends
Psychographics:
 Time spent playing with friends, doing household chores, reading/drawing in bedroom, playing on
computer or pestering other siblings
 Highly socially active in order to become childhood role models/icons
 Decreasing interest in sports and growing interest in males and fashion
 Very concerned about ‘fitting-in’ with their outward appearance and being fashion-forward
 Usually walking to destinations with friends or using public transit to feel more independent
Geographics:
 Living in mostly residential suburban communities in highly populated areas
 Spending most time with friends at high social areas like the mall, school or downtown
Behaviour Response:
Despite the recent economic downturns of the past few years and a decrease in available money for youth,
they report spending an average of $150 per month on media (music, video games, and magazines) fashion
and technology. Their spending power exceeds $200 billion, with an average of $30 spent per mall or
online shopping visit. 15
Product Strategy
Our cut-out model empowers our consumer’s unique style and creativity that makes them prefer dELiA*s
clothing in the first place. As they are transitioning out of playing with dolls but may have dreams of
becoming a fashion/make-up designer they will still feel compelled to complete an entry. It also encourages
an activity to do with your sister or mother in order to take advantage of their older sense of fashion. It can
also create entertainment and competition between groups of friends to see who can make their model look
the best (even a possible birthday party theme.)
Distribution Strategy
‘Closet brochures’ will be mailed to 32 select states with high populated residential areas. Judging will be
conducted by fashion buyers, store owners & the assistant managers of the selected stores.
Alabama, Missouri, Arizona, Nebraska, Colorado, New Hampshire, Connecticut, 4 stores in New Jersey,
Delaware, 3 stores in New York & Florida, North Carolina, Georgia, Ohio, 2 stores in Illinois &
Pennsylvania, Indiana, Rhode Island, Iowa, South Carolina, Louisiana, 2 stores in Tennessee, Maine, 2
stores in Texas, Maryland, Virginia, 3 stores in Massachusetts, West Virginia, Michigan, Washington,
Minnesota and Wisconsin. These states house dELiA*s retail stores and will have the highest amount of
brand awareness within the target market.
Contest advertising will also be shown on dELiA*s homepage on their website, Facebook page, Twitter
page background, magazine advertising, outdoor public transit advertising, along with television
broadcasting.
Positioning Strategy
dELiA*s is seen as a young, bright always trendy lifestyle brand of clothing for females. This campaign
plays off of their website and online catalogue design to stay bright, girly and playful. The campaign uses
the idea of ‘cutting’ out the cost that consumers would be paying at full price by cutting out our model.
Budget
The proposed budget is $500,000 in possible upfront spending (but must fall within an advertising to spend
ratio of 50 or less) to run an 8-week direct integrated marketing campaign in the year 2013. 9
This budget
will cover our run period of July 6th
2013 until August 31st
2013.
Media objectives
 The target audience for this campaign is 12-15 year old ‘Generation Y’ females. These girls still have a
childish outlook on life but are seeking more maturity and respect as they start to transition into early
adolescents.
 The message for this campaign is that simply by cutting out our model and using your unique sense of
style to dress her you have a chance to win new additions to your summer or back to school wardrobe.
 Pre-production will take place during early May through June. Advertising will begin in late June for the
July campaign opening with heavy scheduling through July until the end of August.
 Advertising will be throughout the entire nation of the United States, heavily scheduled within key
urban markets within the selected 32 states.
 Our direct mail pieces will be sent out with high reach as the preliminary start to the campaign. Our
frequency and continuity will be throughout print, outdoor and online advertising. Our television
broadcasting will also run throughout pre-production ending & campaign run period.
Media Strategy
Target Market
We are using a profile-matching ‘rifle’ strategy to target our consumers. This generation has grown up
flooded with technology exposure and therefore don’t understand the value of traditional media or
advertising as much as other generations. They aren’t used to getting mail specifically for them (other than
postcards or birthday cards from family.) This generation highly enjoys interacting on their mobile devices
or computer instead of face-to-face interaction. Our campaign takes advantages of both of these facts by
sending them ‘personal mail’ using dELiA*s website database and using heavy online advertising.
Market Coverage
Since dELiA*s is a strictly American brand & company the only media coverage we have to focus on is
locally by region. All media coverage will be distributed throughout the 32 selected states. The budget
available will determine the extent of key-market coverage.
Timing
Advertising will be a combination of build-up & blitz scheduling. There will be an increasing amount of
outdoor public transit and social media advertising as the mail pieces are sent out. Once the mail piece are
distributed a heavier scheduling of social media, television & print advertising will be scheduled. This
schedule will decrease as the campaign comes to an end.
Since not all ‘tweens’ live in a purely technological world, traditional media will still be used in this
campaign. Flights of advertising will be distributed throughout late June until the end of August. Outdoor,
print and broadcast advertising will be spread out in a skip schedule in combination with the mail pieces
and social media build-up.
Reach, Frequency Continuity
 dELiA*s has a mailing list of over 550,000 11
with 3,585 active users talking about their Facebook
page,19
4,343 Twitter followers 20
& a circulation of 2,000,000 with SEVENTEEN magazine. 1
This
totals to a reach range of 2,557,928 impressions.
 A continuity of 1 month for our magazine advertisement and 2 months for our television broadcasting
and social media.
 Frequency will be between 1-2 weeks as the campaign is so short that overloading consumers with the
message will begin to deter them from the offer due to irritation.
Media Selection Rationale
Television (50sec full colour spots)
Most busy parents leave it to computers and technology to parent their children for them so it would be
easy to target them through tangible and online streaming. It’s the best way to use full ‘theatre of the mind’
to all senses of our target audience.
Direct Mail
Most young girls rarely receive mail specifically for them other than postcards from friends or birthday
cards from relatives. This is a great way to increase our consumer interaction and help aid in their needed
growing sense of independence.
Outdoor (inside public transit & bus stop posters)
Many girls take public transit in order to gain a sense of independence. So they are in constant view of
billboards, bus stop signage, inside bus ads and rack cards along with other outdoor signage. Just like print
and direct mail it is a great way to target a massive audience with creative powerful messaging.
Print (SEVENTEEN magazine)
Print is a good way to profile-match our target market. Many young girls read magazines and look at
outdoor advertising to learn about fashion, makeup, relationships and ‘trendy’ habits from celebrities.
Online (website, Facebook, Twitter, Pinterest & Instagram)
Using social media platforms for advertising is the fastest most cost effective way to target Generation Y
girls. They are constantly online or interacting with each other for communication, gossip and news.
Facebook and Twitter and free to users so it’s the simplest way to reach our profile target market.
Media Rejection Rationale
Radio
Since our campaign is so visual it seemed a waste of resources and budget to add radio into our campaign.
It’s not as clear of a message just to describe what our cut-out model looks like or the prizes offered,
especially when most young girls listen to music on their iPod and not the radio.
Creative Objectives
 To communicate that dELiA*s is a trendy and generation-connected brand (consumer interaction) that
supports the unique style and creativity of it’s customers
 To communicate that dELiA*s clothing should be your go-to summer/fall choice
Key Benefit Statement
Choose dELiA*s as your trendy summer makeover choice.
Creative Strategy
Image
Our goal is that customers see how easy it is to participate in a dELiA*s promotion, engage in the
interaction and realize the fashion-forward trendy quality of the lifestyle brand while picking out their
model’s clothing. This will prompt impulse buying while completing their Entry Form and additional sales.
Theme
Our theme describes how cool it is to be creative and unique with dELiA*s clothing. It emphasizes the
wide range of colourful fashions that the company has to offer.
Tone and Style
All messages are straight-forward with a simple layout. The colour and context are consistent and connect
with each other (ie: social media refers to print, broadcasts refer to social media…etc.)
Appeal Techniques
Our theme uses a ‘customer can...’ appeal; It explains how cool you can be if you enter our contest because
you get to show off your sense of style and win exclusive prizes to make your wardrobe better than others.
Expenditure by Type of Medium
Medium $ Expenditure % of Total
Outdoor 6
$9,000 1.8%
Print 1
$140,180 28%
Television 4
$328,456 66%
Direct Mail 5
$17,900 3.5%
Total $495,536 99.3% of Plan Budget
Expenditure by Medium
Print
Magazine Frequency Cost $ Total Cost
SEVENTEEN magazine 1
Standard 1/3Page 4Colour
2 $70,090 $140,180
Outdoor (Public Transit Bus Stops)
Market GRPs Rate Flights $ Total Cost
Blue Line Media 6
Standard 47.5"
x68.5
" 4Colour
50 $4,500 2 $9,000
Direct Mail
Distributor Printing Shipping/Handling $ Total Cost
Printingcenterusa.com 5
Standard 8.5
"x11" Landscape, 4Colour
$4,000 $13,900 $17,900
Television Broadcast
Network # of Spots Cost/30sec Spot $ Total Cost
FOX – Glee 4
CW – America’s Next Top Model 4
1
1
$267,141
$61,315
$328,456
Blocking Chart
Activity May June July August September
Outdoor
National (32 States)
Print
SEVENTEEN Magazine
Television
National (FOX & CW Networks)
Direct Mail
National
Online Social Media
E-commerce, Facebook, Twitter
Cost Per Piece
= $495,536 cost of campaign / 2,557,928 impressions
= $0.19 CPP
Cost Per Response
= $495,536 cost of campaign / 520,000 responses
= $0.95 CPR
Gross Profit
= $495,536 cost of campaign + $3,000 (discount lost opportunity cost budget)
= $498,536 – $ 312,000 generated offer revenue
= ($186,536) Gross Profit
Bottom Line Profit
= $495,536 cost of campaign + $3,000 (discount lost opportunity cost budget)
= $498,536 - $182,000 revenue from all related sales
= ($316,536) Bottom Line Profit
ROI (Return on investment)
= $182,000 revenue from all related sales + $312,000
= $494,000 - $495,536 cost of campaign
= ($1,536) ROI
Lifetime Value of a Customer (LTV)
= 6 annual customer visits x 4 year churn rate x $360 annual spending + $1.14 customer replacement
= $8,641.14 Lifetime Value of Customer
Lifetime Value of a Campaign (LTC)
= $8,641.14 Lifetime Value of Customer x 520,000 responses
= $4,493,392,800 Lifetime Value of Campaign
Key Market Research Conclusions Proposed Strategy Solution
Increase the online social engagement between
dELiA*s and it’s consumers.
Contestants will have to interact with dELiA*s
various social media to find clothing choices –
which will also help increase impulse purchases.
A stronger positioning and brand loyalty of
dELiA*s lifestyle brand with primary and secondary
target market combined.
Our campaign positions dELiA*s as a trendy
fashion-forward colourful brand that fits your
unique lifestyle.
A stronger integration of all traditional, direct and
non-conventional mediums to promote/advertise.
We use traditional advertising to distribute the
initial message and cut-out model and reinforce our
messaging and overall campaign with social media.
1
2013 advertising rate card. (2013, February). Retrieved from (n.d.). Retrieved from
http://www.seventeenmediakit.com/r5/showkiosk.asp?listing_id=4473758&category_id=31772
2
American apparel, inc. reports first quarter 2013 financial results and reiterates outlook for full year
2013. (2013, May 8). Retrieved from
http://investors.americanapparel.net/releasedetail.cfm?ReleaseID=763288
3
American eagle outfitters, inc. company profile. (n.d.). Retrieved from
http://www.hoovers.com/company-information/cs/company-
profile.American_Eagle_Outfitters_Inc.b053d9f251729e59.html
4
Brian, S. (2011, October 24). 'American Idol' pro football duke it out for priciest TV spot. Advertising
Age, Retrieved from http://adage.coverleaf.com/advertisingage/20111024?pg=3
5
Brochure, newsletter, flyer & sell sheet quote. (n.d.). Retrieved from
http://www.printingcenterusa.com/Product/tabid/81/ProdID/31870/cid/171/gid/0/default.aspx
6
Bus stop / bus shelter advertising. (2013). Retrieved from http://www.bluelinemedia.com/bus-
advertising/bus-stop-shelter
7
Company overview of hollister co.. (n.d.). Retrieved from
http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=25668082
8
Dlia key statistics. (n.d.). Retrieved from http://www.marketwatch.com/investing/stock/dlia/profile
9
Frequently asked questions about the collegiate echo campaign. (n.d.). Retrieved from
http://www.directworks.org/dmef-marketing-programs/collegiate-echo-2012-2013/faqs
10
Goldstein , J. [Web log message]. Retrieved from http://joelgoldstein.com/direct-marketing-for-
generation-y/
11
Investor information. (n.d.). Retrieved from http://www.deliasinc.com/
12
Lamiman, K. Better Investing (2007, May). Retrieved from
http://search.proquest.com/docview/812732803
13
Maloney, G. (2002). Gen y and the future of mall retailing. In Retrieved from
http://www.us.am.joneslanglasalle.com/Lists/ExpertiseInAction/Attachments/255/JLL-Gen-Y-Mall-
Retailing.pdf
14
Management's discussion and analysis of financial condition and results of operations . (n.d.). Retrieved
from http://biz.yahoo.com/e/130423/dlia10-k.html
15
Marketing to tweens and teens: insights, strategies, and tactics. Bill Carter, Source: The Licensing
Journal. 31.7 (Aug. 2011): Retrieved from
http://www.aspenpublishers.com/Product.asp?catalog_name=Aspen&category_name=&product_id=99000
57000&cookie%5Ftest=1
16
Tuckwell, K. (2012). Canadian advertising in action. (9th ed.). Toronto: Pearson Canada Inc.
17
Chensvold, Christian; Apparel Magazine; Dec2009, Vol. 51 Issue 4, p13-14, 2p, 3 Color Photographs,
Document Type: Article
18
Hoover's Inc. (n.d.). delia*s, inc. company information. Retrieved from
http://www.hoovers.com/company-information/cs/company-profile.dELiA*s_Inc.3b1ebb494313598b.html
19
www.Facebook.com/shopdelias
20
www.Twitter.com/delias
21
www.Instagram.com/delias
22
www.Pinterest.com/delias

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DMEF Collegiate ECHO Challenge 2013 'Snip to be Cool with dELIA*s

  • 1. Snip to be Cool with dELiA*s DMEF Collegiate ECHO Challenge Proposal 2012-2013 St. Lawrence College Kingston, ON Canada 5/17/2013
  • 2. dELiA*s has been challenging the teenage retail market and so far succeeding in growing into a plentiful company with a large following of customers. Their clothing is girly, colourful and always fashion-aware. But the term ‘teenager’ is vague and they’re now seeking a secondary younger audience for their lifestyle brands. 11 With such big competition like Aeropostale, American Apparel and American Eagle – not to mention Hot Topic among others 8,18 dELiA*s is struggling to maintain its position and keep its brand recognition. Our main objective was to gain new customers in the ‘Tween generation’ of ages 12-14 while still engaging their existing customers of 17 year old girls. 9 Our campaign recommendation uses a cut-out model to intrigue consumers about the products. Consumers will receive a promotional brochure (or have to use dELiA*s various social media to download a copy) with a cut-out model attached. Girls will then have to use their dELiA*s catalogs, the brochure itself and/or social media platforms (Facebook, Twitter, Instagram, Pinterest) to find clothes that they like to dress the model. The model will be then glued onto an Entry Form to be entered into a weekly contest. All entries (mailed into their local store or scanned and uploaded online) will be entered into a draw to win free items, discounted coupons…etc. The contest will run twice a week for 8 weeks from July 6th 2013 until August 31st 2013. Judging will be conducted by the store owners and assistant managers of each store. Bus terminal advertising and television broadcasts will be produced for initial build-up followed by the direct mail (brochure) distribution and social media interaction (posting about contest details and links to catalog and clothing images.) The television commercials will be placed on the FOX & CW network to catch audience’s attention while watching popular shows like ‘Glee’ and ‘America’s Next Top Model.’ 4 Print advertising will also be produced during the run of the campaign partnered with SEVENTEEN magazine. 1
  • 3. Company Profile dELiA*s, Inc. is a multi-channel retail company comprised of two lifestyle brands called dELiA*s and Alloy. The company sells apparel, accessories and footwear to young teenage girls through direct mail catalogs, websites and for dELiA*s, mall-based retail stores. 8 The company was founded in New York and now consists of well over 100 stores across the United States. 9 Industry Apparel Retailers Sector Consumer Services Fiscal Year-end 01/2014 Revenue $222.70M Net Income $-21.55M 2013 Sales Growth 2.6% Employees 2,040 The company currently relies on third parties for essential business operations and services such as printing, shipping, paper supplies, operating their e-commerce webpages and the outsourcing of their call center function.11 dELiA*s currently has 4,330 Twitter followers20 , 691,000 Facebook ‘likes’19 , 106484 Instagram followers21 & 10,641 Pinterest followers.22 Market Segments dELiA*s reported generating net sales primarily from direct marketing (catalogs along with dELiA*s and Alloy e-commerce websites called www.delias.com and www.alloyapparel.com) and their retail stores.11 Fiscal Net sales (thousands) 2012 2011 2010 Retail $ 125,595 $ 123,223 $ 122,444 Phone 3,836 6,872 11,713 Internet 93,268 87,057 86,540 Total Direct 97,104 93,929 98,253 Total Net Sales $ 222,699 $ 217,152 $ 220,697 Consumer Data dELiA*s primary target audience are 17yr old girls in Junior high school; 9 a target within the 12-19yr old demographic approximately 33 million strong and reportedly among the fastest growing in the United States. 17 Currently, teens and tweens born between 1991-2002 make up nearly 20 percent of the US population, are more ethnically diverse than any other generation of the past, never knew a world without the Internet, cell phones, or Google and are extremely savvy and educated consumers. 15
  • 4. Competitor Analysis dELiA*s key competitors are Aeropostale Inc, American Apparel Inc, Rue21 Inc, Body Central Corp, Wet Seal Inc, Zumiez Inc, Hot Topic Inc & Pacific Sunwear of California Inc. 8 Along with American Eagle, Hollister & Urban Outfitters. 18  Aéropostale designs and sells casual apparel and accessories; targeting consumers in ages 14 to 17 teens. Typical merchandise includes graphic T-shirts, sweaters, jeans, outerwear and accessories. The company is also known to hold special sales events on college campuses. The company launched its first online catalog in 2005 and reported net sales totaled $129 million in fiscal 2009 (ended January 30 2010), up 48 percent from the year before. 12  American Apparel has the largest sewing facility in North America. Unlike their competitors, they make their own product. The company also committed to sustainability. It has the strictest and most progressive EPA standards in the US. As of May 1, 2013 American Apparel had approximately operates 248 retail stores in 20 countries & serves over 60 countries worldwide on their e-commerce website. 2  American Eagle is a mall-based retailer that sells denim and other casual apparel and accessories (sweaters, t-shirts, fleece, outerwear, and accessories) aimed at young men and women ages 15-25. The chain operates more than 1,000 stores in all 50 US states, Puerto Rico, Canada, and now in the Middle East. Virtually all of the company's products bear its private-label brand names: American Eagle Outfitters and aerie. Direct sales come from the company's website and its AE magazine; a lifestyle publication that doubles as a catalog. 3  Hollister Co. provides apparel for men and women. The company was founded in 2000 and is based in Los Angeles, California. The company’s products include logo tees, sweaters, jeans, shorts, outerwear, tanks, sleepwear and a wide range of accessories. Hollister also offers a diverse collection of body care products, as well as gift cards. The company distributes its products through a chain of stores in the United States, Canada, and the United Kingdom. In addition, it sells its products online. Hollister Co. operates as a subsidiary of Abercrombie & Fitch Management Co. 7
  • 5. Marketing Objectives  To increase amount of existing 17yr old Junior high primary target market repeat/impulse purchases 9  To expand brand presence & awareness to new secondary target market of 12-14yr old ‘Tweens’ 9 Target Market Profile Demographics:  Females between the ages of 12 to 15 (classified as ‘Generation Y’ tweens) 13  Enrolled in junior high or entering high secondary education 9, 11  Living in a working middle-class or blue-collar family  Disposable income from doing chores, receiving gifts or borrowing from family & friends Psychographics:  Time spent playing with friends, doing household chores, reading/drawing in bedroom, playing on computer or pestering other siblings  Highly socially active in order to become childhood role models/icons  Decreasing interest in sports and growing interest in males and fashion  Very concerned about ‘fitting-in’ with their outward appearance and being fashion-forward  Usually walking to destinations with friends or using public transit to feel more independent Geographics:  Living in mostly residential suburban communities in highly populated areas  Spending most time with friends at high social areas like the mall, school or downtown Behaviour Response: Despite the recent economic downturns of the past few years and a decrease in available money for youth, they report spending an average of $150 per month on media (music, video games, and magazines) fashion and technology. Their spending power exceeds $200 billion, with an average of $30 spent per mall or online shopping visit. 15
  • 6. Product Strategy Our cut-out model empowers our consumer’s unique style and creativity that makes them prefer dELiA*s clothing in the first place. As they are transitioning out of playing with dolls but may have dreams of becoming a fashion/make-up designer they will still feel compelled to complete an entry. It also encourages an activity to do with your sister or mother in order to take advantage of their older sense of fashion. It can also create entertainment and competition between groups of friends to see who can make their model look the best (even a possible birthday party theme.) Distribution Strategy ‘Closet brochures’ will be mailed to 32 select states with high populated residential areas. Judging will be conducted by fashion buyers, store owners & the assistant managers of the selected stores. Alabama, Missouri, Arizona, Nebraska, Colorado, New Hampshire, Connecticut, 4 stores in New Jersey, Delaware, 3 stores in New York & Florida, North Carolina, Georgia, Ohio, 2 stores in Illinois & Pennsylvania, Indiana, Rhode Island, Iowa, South Carolina, Louisiana, 2 stores in Tennessee, Maine, 2 stores in Texas, Maryland, Virginia, 3 stores in Massachusetts, West Virginia, Michigan, Washington, Minnesota and Wisconsin. These states house dELiA*s retail stores and will have the highest amount of brand awareness within the target market. Contest advertising will also be shown on dELiA*s homepage on their website, Facebook page, Twitter page background, magazine advertising, outdoor public transit advertising, along with television broadcasting. Positioning Strategy dELiA*s is seen as a young, bright always trendy lifestyle brand of clothing for females. This campaign plays off of their website and online catalogue design to stay bright, girly and playful. The campaign uses the idea of ‘cutting’ out the cost that consumers would be paying at full price by cutting out our model.
  • 7. Budget The proposed budget is $500,000 in possible upfront spending (but must fall within an advertising to spend ratio of 50 or less) to run an 8-week direct integrated marketing campaign in the year 2013. 9 This budget will cover our run period of July 6th 2013 until August 31st 2013. Media objectives  The target audience for this campaign is 12-15 year old ‘Generation Y’ females. These girls still have a childish outlook on life but are seeking more maturity and respect as they start to transition into early adolescents.  The message for this campaign is that simply by cutting out our model and using your unique sense of style to dress her you have a chance to win new additions to your summer or back to school wardrobe.  Pre-production will take place during early May through June. Advertising will begin in late June for the July campaign opening with heavy scheduling through July until the end of August.  Advertising will be throughout the entire nation of the United States, heavily scheduled within key urban markets within the selected 32 states.  Our direct mail pieces will be sent out with high reach as the preliminary start to the campaign. Our frequency and continuity will be throughout print, outdoor and online advertising. Our television broadcasting will also run throughout pre-production ending & campaign run period. Media Strategy Target Market We are using a profile-matching ‘rifle’ strategy to target our consumers. This generation has grown up flooded with technology exposure and therefore don’t understand the value of traditional media or advertising as much as other generations. They aren’t used to getting mail specifically for them (other than postcards or birthday cards from family.) This generation highly enjoys interacting on their mobile devices
  • 8. or computer instead of face-to-face interaction. Our campaign takes advantages of both of these facts by sending them ‘personal mail’ using dELiA*s website database and using heavy online advertising. Market Coverage Since dELiA*s is a strictly American brand & company the only media coverage we have to focus on is locally by region. All media coverage will be distributed throughout the 32 selected states. The budget available will determine the extent of key-market coverage. Timing Advertising will be a combination of build-up & blitz scheduling. There will be an increasing amount of outdoor public transit and social media advertising as the mail pieces are sent out. Once the mail piece are distributed a heavier scheduling of social media, television & print advertising will be scheduled. This schedule will decrease as the campaign comes to an end. Since not all ‘tweens’ live in a purely technological world, traditional media will still be used in this campaign. Flights of advertising will be distributed throughout late June until the end of August. Outdoor, print and broadcast advertising will be spread out in a skip schedule in combination with the mail pieces and social media build-up. Reach, Frequency Continuity  dELiA*s has a mailing list of over 550,000 11 with 3,585 active users talking about their Facebook page,19 4,343 Twitter followers 20 & a circulation of 2,000,000 with SEVENTEEN magazine. 1 This totals to a reach range of 2,557,928 impressions.  A continuity of 1 month for our magazine advertisement and 2 months for our television broadcasting and social media.  Frequency will be between 1-2 weeks as the campaign is so short that overloading consumers with the message will begin to deter them from the offer due to irritation.
  • 9. Media Selection Rationale Television (50sec full colour spots) Most busy parents leave it to computers and technology to parent their children for them so it would be easy to target them through tangible and online streaming. It’s the best way to use full ‘theatre of the mind’ to all senses of our target audience. Direct Mail Most young girls rarely receive mail specifically for them other than postcards from friends or birthday cards from relatives. This is a great way to increase our consumer interaction and help aid in their needed growing sense of independence. Outdoor (inside public transit & bus stop posters) Many girls take public transit in order to gain a sense of independence. So they are in constant view of billboards, bus stop signage, inside bus ads and rack cards along with other outdoor signage. Just like print and direct mail it is a great way to target a massive audience with creative powerful messaging. Print (SEVENTEEN magazine) Print is a good way to profile-match our target market. Many young girls read magazines and look at outdoor advertising to learn about fashion, makeup, relationships and ‘trendy’ habits from celebrities. Online (website, Facebook, Twitter, Pinterest & Instagram) Using social media platforms for advertising is the fastest most cost effective way to target Generation Y girls. They are constantly online or interacting with each other for communication, gossip and news. Facebook and Twitter and free to users so it’s the simplest way to reach our profile target market. Media Rejection Rationale Radio Since our campaign is so visual it seemed a waste of resources and budget to add radio into our campaign. It’s not as clear of a message just to describe what our cut-out model looks like or the prizes offered, especially when most young girls listen to music on their iPod and not the radio.
  • 10. Creative Objectives  To communicate that dELiA*s is a trendy and generation-connected brand (consumer interaction) that supports the unique style and creativity of it’s customers  To communicate that dELiA*s clothing should be your go-to summer/fall choice Key Benefit Statement Choose dELiA*s as your trendy summer makeover choice. Creative Strategy Image Our goal is that customers see how easy it is to participate in a dELiA*s promotion, engage in the interaction and realize the fashion-forward trendy quality of the lifestyle brand while picking out their model’s clothing. This will prompt impulse buying while completing their Entry Form and additional sales. Theme Our theme describes how cool it is to be creative and unique with dELiA*s clothing. It emphasizes the wide range of colourful fashions that the company has to offer. Tone and Style All messages are straight-forward with a simple layout. The colour and context are consistent and connect with each other (ie: social media refers to print, broadcasts refer to social media…etc.) Appeal Techniques Our theme uses a ‘customer can...’ appeal; It explains how cool you can be if you enter our contest because you get to show off your sense of style and win exclusive prizes to make your wardrobe better than others.
  • 11. Expenditure by Type of Medium Medium $ Expenditure % of Total Outdoor 6 $9,000 1.8% Print 1 $140,180 28% Television 4 $328,456 66% Direct Mail 5 $17,900 3.5% Total $495,536 99.3% of Plan Budget Expenditure by Medium Print Magazine Frequency Cost $ Total Cost SEVENTEEN magazine 1 Standard 1/3Page 4Colour 2 $70,090 $140,180 Outdoor (Public Transit Bus Stops) Market GRPs Rate Flights $ Total Cost Blue Line Media 6 Standard 47.5" x68.5 " 4Colour 50 $4,500 2 $9,000 Direct Mail Distributor Printing Shipping/Handling $ Total Cost Printingcenterusa.com 5 Standard 8.5 "x11" Landscape, 4Colour $4,000 $13,900 $17,900 Television Broadcast Network # of Spots Cost/30sec Spot $ Total Cost FOX – Glee 4 CW – America’s Next Top Model 4 1 1 $267,141 $61,315 $328,456 Blocking Chart Activity May June July August September Outdoor National (32 States) Print SEVENTEEN Magazine Television National (FOX & CW Networks) Direct Mail National Online Social Media E-commerce, Facebook, Twitter
  • 12. Cost Per Piece = $495,536 cost of campaign / 2,557,928 impressions = $0.19 CPP Cost Per Response = $495,536 cost of campaign / 520,000 responses = $0.95 CPR Gross Profit = $495,536 cost of campaign + $3,000 (discount lost opportunity cost budget) = $498,536 – $ 312,000 generated offer revenue = ($186,536) Gross Profit Bottom Line Profit = $495,536 cost of campaign + $3,000 (discount lost opportunity cost budget) = $498,536 - $182,000 revenue from all related sales = ($316,536) Bottom Line Profit ROI (Return on investment) = $182,000 revenue from all related sales + $312,000 = $494,000 - $495,536 cost of campaign = ($1,536) ROI Lifetime Value of a Customer (LTV) = 6 annual customer visits x 4 year churn rate x $360 annual spending + $1.14 customer replacement = $8,641.14 Lifetime Value of Customer Lifetime Value of a Campaign (LTC) = $8,641.14 Lifetime Value of Customer x 520,000 responses = $4,493,392,800 Lifetime Value of Campaign
  • 13. Key Market Research Conclusions Proposed Strategy Solution Increase the online social engagement between dELiA*s and it’s consumers. Contestants will have to interact with dELiA*s various social media to find clothing choices – which will also help increase impulse purchases. A stronger positioning and brand loyalty of dELiA*s lifestyle brand with primary and secondary target market combined. Our campaign positions dELiA*s as a trendy fashion-forward colourful brand that fits your unique lifestyle. A stronger integration of all traditional, direct and non-conventional mediums to promote/advertise. We use traditional advertising to distribute the initial message and cut-out model and reinforce our messaging and overall campaign with social media.
  • 14. 1 2013 advertising rate card. (2013, February). Retrieved from (n.d.). Retrieved from http://www.seventeenmediakit.com/r5/showkiosk.asp?listing_id=4473758&category_id=31772 2 American apparel, inc. reports first quarter 2013 financial results and reiterates outlook for full year 2013. (2013, May 8). Retrieved from http://investors.americanapparel.net/releasedetail.cfm?ReleaseID=763288 3 American eagle outfitters, inc. company profile. (n.d.). Retrieved from http://www.hoovers.com/company-information/cs/company- profile.American_Eagle_Outfitters_Inc.b053d9f251729e59.html 4 Brian, S. (2011, October 24). 'American Idol' pro football duke it out for priciest TV spot. Advertising Age, Retrieved from http://adage.coverleaf.com/advertisingage/20111024?pg=3 5 Brochure, newsletter, flyer & sell sheet quote. (n.d.). Retrieved from http://www.printingcenterusa.com/Product/tabid/81/ProdID/31870/cid/171/gid/0/default.aspx 6 Bus stop / bus shelter advertising. (2013). Retrieved from http://www.bluelinemedia.com/bus- advertising/bus-stop-shelter 7 Company overview of hollister co.. (n.d.). Retrieved from http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=25668082 8 Dlia key statistics. (n.d.). Retrieved from http://www.marketwatch.com/investing/stock/dlia/profile 9 Frequently asked questions about the collegiate echo campaign. (n.d.). Retrieved from http://www.directworks.org/dmef-marketing-programs/collegiate-echo-2012-2013/faqs 10 Goldstein , J. [Web log message]. Retrieved from http://joelgoldstein.com/direct-marketing-for- generation-y/ 11 Investor information. (n.d.). Retrieved from http://www.deliasinc.com/ 12 Lamiman, K. Better Investing (2007, May). Retrieved from http://search.proquest.com/docview/812732803
  • 15. 13 Maloney, G. (2002). Gen y and the future of mall retailing. In Retrieved from http://www.us.am.joneslanglasalle.com/Lists/ExpertiseInAction/Attachments/255/JLL-Gen-Y-Mall- Retailing.pdf 14 Management's discussion and analysis of financial condition and results of operations . (n.d.). Retrieved from http://biz.yahoo.com/e/130423/dlia10-k.html 15 Marketing to tweens and teens: insights, strategies, and tactics. Bill Carter, Source: The Licensing Journal. 31.7 (Aug. 2011): Retrieved from http://www.aspenpublishers.com/Product.asp?catalog_name=Aspen&category_name=&product_id=99000 57000&cookie%5Ftest=1 16 Tuckwell, K. (2012). Canadian advertising in action. (9th ed.). Toronto: Pearson Canada Inc. 17 Chensvold, Christian; Apparel Magazine; Dec2009, Vol. 51 Issue 4, p13-14, 2p, 3 Color Photographs, Document Type: Article 18 Hoover's Inc. (n.d.). delia*s, inc. company information. Retrieved from http://www.hoovers.com/company-information/cs/company-profile.dELiA*s_Inc.3b1ebb494313598b.html 19 www.Facebook.com/shopdelias 20 www.Twitter.com/delias 21 www.Instagram.com/delias 22 www.Pinterest.com/delias