Kipling Bags Plans Book

Jungle Ad Campaign

Eureka Foong Chen Yew

December 3, 2013

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Situation Analysis

The Company

The parent company of the Kipling brand is V.F. Corporation, a global leader in

manufacturing apparel and footwear. According to a Forbes article, V.F. Corporation was

founded in 1899 as the Reading Glove and Mitten Manufacturing Company in

Pennsylvania (Loeb, 2013). From the early 1920s to 1950s, the company expanded its

business to include silk lingerie under the brand name Vanity Fair; hence, the company

renamed itself Vanity Fair Silk Mills Inc. The embargo on silk during World War II

forced the company to drop the word “silk” from its name. When the company became

public in 1951, it began to acquire a diverse set of brands such as Blue Bell and

Bestform. Under the leadership of its president, Mackey McDonald in 2001, Vanity Fair

Mills began outsourcing production to parts of Asia to lower costs and, in 2007, it

became known as V.F. Corporation. The company continues to expand its scope of

business today by acquiring well-known brands and companies that have otherwise been

underperforming. It currently has its headquarters in Greensboro, North Carolina, with

operations spanning the United States, South America, Central America, Canada, Europe,

the Middle East, Africa, and the Asia-Pacific region (V.F. Corporation, 2013).

Although it is classified as a manufacturer of men’s and boy’s trousers, slacks and

jeans under the North American Industry Classification System (NAICS) (LexisNexis,

2013), V.F. Corporation owns more than 30 well-known brands that can be categorized

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into five coalitions – Outdoor and Action Sports (e.g. The North Face, Timberland,

Vans), Jeanswear (e.g. Wrangler, Lee), Imagewear (e.g. Red Kap, Majestic), Sportswear

(e.g. Nautica, Kipling) and Contemporary Brands (e.g. 7 For All Mankind) (Loeb, 2013).

As stated on the company’s website, V.F. Corporation’s mission is to constantly

innovate and produce exciting apparel products that foster a sense of brand loyalty (V.F.

Corporation, 2013). To achieve this mission, the company lists six goals or “Growth

Drivers” on its website. Among these goals are to grow and acquire lifestyle brands,

expand on a global platform, enhance its direct-to-consumer (DTC) business,

continuously innovate and create value, invest in developing employees, and gain insight

into customer’s needs and wants.

As one of the largest apparel and footwear manufacturers in the world (Loeb,

2013), V.F. Corporation earned close to $10.9 billion in sales and more than $1 billion in

net income in the year ending August 2013 (Thomson Financial, 2013). The company is

ranked number 227 on the Fortune 500, a list of the top 500 corporations in the United

States that have brought in the most gross revenue (LexisNexis, 2013).

The Kipling brand was founded in Antwerp, Belgium in 1987, where its bags are

still being designed today (Kipling, 2013). Kipling was acquired by V.F. Corporation in

August 2003. A division of the Sportswear coalition, Kipling North America has its

headquarters in New York. Kipling International’s headquarters remain in Bornem,

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Belgium. Other brands in the coalition include Nautica and John Varvatos. Kipling is also

listed as a brand under V.F. Corporation’s Outdoor and Action Sports coalition. Most

recently, the brand’s president, Julie Dimperio, said in an interview that Kipling’s main

focus is on increasing brand awareness through customer engagement via digital media

channels and online communities (Sieczkowski, 2012). There are 250 Kipling stores

worldwide in 67 countries; in the United States, they are primarily sold in retail and

department stores and via their website.

The Product

Product Description and Positioning

Kipling produces upscale handbags, backpacks, messenger bags and totes, luggage and

accessories that are primarily aimed at women. Kipling bags are distinct from other bags

because of their iconic water-resistant crinkle nylon fabric that comes in an array of

colors and fashionable patterns. Special collections, such as their CLUB collection,

occasionally make use of other materials, including leather. Besides being lightweight

and durable, these bags also contain numerous compartments to store items such as pens,

wallets and water bottles. Each bag is adorned with a colorful monkey keychain, which is

also the brand’s logo. Inspired by the monkeys from The Jungle Book by Rudyard

Kipling, these monkey keychains have unique names based on the line of bags they are

in. The names are derived from the names of actual Kipling employees from around the

world. According to the Kipling USA website, Kipling handbags, on average, cost

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between $40 and $240. Their line of luggage can range between $70 and $400. The brand

is especially reputable in Europe, where Kipling was founded. The brand’s website states

that there are more Kipling bags than there are people in Belgium (Kipling, 2013).

Additionally, The Independent in the United Kingdom claimed that Kipling’s line of

Firefly backpacks were one of the 10 best school bags in 2011 (Hilpern, 2011). In the

Asia-Pacific region, Kipling is a key leader in the market for premium bags (Yeung,

2012).

Product Sales

During an investor day event in 2013, Karen Murray, the president of V.F. Corporation’s

Sportswear coalition, stated that the coalition brought in $577 million in revenues in 2012

(Murray, 2013). The Kipling brand contributed 15 percent of the coalition revenue, which

is an estimated $86.55 million (Murray, 2013). In terms of units, the company sold an

estimated eight million Kipling bags in 2012, or roughly 30 bags per minute. The intense

sale of Kipling bags, despite the fact that they are sold in over 60 countries, demonstrates

that the selective demand for this brand is fairly high. The Kipling website states that

there are approximately 35 million people in the world who own at least one Kipling bag.

An online article in Accessories magazine stated that sales in V.F. Corporation’s

Sportswear coalition grew by 14 percent in the second quarter of 2013, and this was

driven primarily by the 30 percent growth in sales of the Kipling USA brand (Prine,

2013). The same article mentioned that Kipling sales increased by 18 percent worldwide.

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The Market

Current Customers

The Kipling brand is targeted toward the “imaginista” (“2013 VF Investor Day – Final,”

2013). Imaginistas are women who are not slaves to fashion and seek to be unique. They

are women who are on the go or travel frequently and need bags that are well organized

and easy to carry. They typically have families. Stephen Dull, the vice president of

strategy and innovation at V.F. Corporation, recently said that the Kipling brand strives to

lighten the load of their core customer’s day – physically, emotionally and mentally.

The current customers of Kipling bags reside in urban and suburban regions of the

United States. The majority of department and specialty stores that the Kipling brand is

sold at is in urban or suburban areas in California, New Jersey, Pennsylvania and New

York. Kipling bags are also sold in other regions of the country, including Hawaii,

Illinois, Colorado, Oregon, Florida and Massachusetts. Because the bags are in the

moderately expensive to expensive range, current Kipling customers have a moderate to

high level of income. In the VALS Framework, Kipling imaginistas would be a mix of

Achievers and Experiencers; they are both goal-oriented and busy in their lives, yet are

also motivated by the need to express themselves and to feel young. I estimate that the

age range for core Kipling customers would be 25 to 44 years old. Finally, it is also likely

that Kipling customers in the United States are women who have traveled abroad because

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the brand is significantly more prominent in Europe and the Asia-Pacific region of the

world.

Product SWOT Analysis

Strengths

Unlike other women’s handbag brands, most Kipling bags are made from a water-

resistant crinkle nylon material. Because the target market for these bags are women with

an eye for unique fashion items, this unusual material actually plays out as one of its

strengths. The brand also features a wide range of designs and styles that are suitable for

travel, work, school and everyday use. Furthermore, the brand has an excellent and

growing reputation in Europe and the Asia-Pacific region. Besides that, I think that the

Kipling brand will benefit from the V.F. Corporation’s overall mission to innovate their

brands as much as possible. I anticipate that this might lead to the creation of new designs

and styles that will help propel the Kipling name in the United States. Another strength is

its parent company’s increase in profitability, from $3.5 billion in 2010 to $4.2 billion in

2011 (Global Data, 2012).

Weaknesses

Although the brand has gained recognition in Europe and is expanding in the Asia-Pacific

region, it remains relatively unknown in the United States. In addition, although the brand

is available in most states and through its website, it should be noted that there are no

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Kipling distributors in 20 out of the 50 states (“Find a store,” 2013). In general, the look

of the brand is chunkier compared to other upscale women’s handbag brands. This is

partly due to the crinkle nylon material that the bags are made of and also the heavy duty

zippers that are used.

Opportunities

An opportunity for the Kipling brand is that Coach, the leader in the women’s handbags

market, is losing traction in the marketplace. In January 2013, Coach shares dropped 16

percent, its biggest decline in almost half a year (Timberlake, 2013). Wedbush Inc.

analyst Corrina Freedman interprets Coach’s shortcoming as a failure to define a highly

specific target market, calling its description of a “Coach woman” “generic” (Timberlake,

2013). Another potential opportunity for Kipling is its placement as one of the more

practical and affordable women’s handbag brands. Many of dominating brands in the

U.S. handbag market, such as Michael Kors and Kate Spade, are rolling out ad campaigns

that portray upscale but unrealistic lifestyles. Coach, for example, has launched a video

campaign that follows two supermodels as they express their love for working in New

York (Marinelli, 2013). I see this as an opportunity for the Kipling brand to reach out to

women who desire practicality and a bag that they can use every day.

Threats

Both V.F. Corporation and the Kipling brand are threatened by a highly competitive

market. The Kipling brand, in particular, must distinguish itself from other brands of

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upscale women’s handbags that have already established a name for themselves. As an

apparel company, V.F. Corporation is also threatened by fast-changing fashion trends.

Thus, the company needs to understand its customers’ preferences and innovate new

styles for the Kipling brand in response to these changing preferences in a timely manner.

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Target Market Analysis

Primary and Selective Demand

The United States is the largest consumer and importer of handbags and travel

goods in the world. In terms of value, women’s handbags represent one-third of the

women’s accessories market in the U.S., while in terms of popularity among women,

handbags are the second most desirable accessory after shoes (Global Industry Analysts,

Inc. [GIA], 2010). From 2008 to 2011, the demand for handbags declined in the U.S. due

to dwindling economic conditions. In 2011, the domestic demand for women’s handbags

and purses recovered, totaling an estimated $2.7 billion (CompaniesandMarkets.com,

2012). The domestic demand refers to the industry’s shipment value once import value

has been added and export value has been subtracted. This demand continued to increase

in 2012 to a value of $3.0 billion (Supplier Relations US, 2013), and is projected to reach

$9.0 billion by 2015 according to a report by Global Industry Analysts, Inc. (GIA, 2010).

In the worldwide market for women’s handbags and purses, Coach, Inc. remains

the market leader. With a large pool of prospects and customers, the market for women’s

handbags is rife with competition. Some of the key companies in this sector include

Dooney & Bourke, Inc., Etienne Aigner, Inc., Guess, Inc., Chanel and Samsonite

Corporation (GIA, 2010). Although Kipling is not listed as one of the major brands in

this market, its 30 percent sales growth in 2013 indicates that it has the potential to

increase its market share in the domestic market for women’s handbags (Prine, 2013). In

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2012, the Kipling brand brought in an estimated $86.55 million in sales through the sale

of more than eight million bags worldwide (“2013 VF Investor Day – Final,” 2013).

Should it leverage on the industry’s trend toward online shopping and creative design

(CompaniesandMarkets.com, 2012), Kipling may be able to make itself a key player in

the domestic women’s handbags market. However, it must also tackle some of the

industry’s major threats, including a high percentage of consumers who report they can

do without luxury handbags, the lure of discounted prices at outlet malls, and the

propagation of counterfeit goods (The Gale Group, Inc., 2013).

The Target Market

The target market that presents a substantial potential for sales are women ages 25

to 44 who are employed and early or in the middle of their careers. Some will have

families, but most will not. Hence, a substantial portion of this market will be young and

single without children, or with children below six years old. Kevin Yeung, the General

Manager of Kipling in the Asia-Pacific region, referred to these customers as

“imaginistas” (“APAC & China 2017 Plan,” 2012). These imaginistas are medium to

heavy users of handbags, purchasing handbags at least once a year. They live in urban or

suburban areas of the country. They are repertoire users of handbags, perceiving more

than one brand to have superior qualities and are willing to pay full price for these

brands. Since the women’s handbags market is fiercely competitive and repertoire users

are the primary brand switchers (Arens, Schaefer, & Weigold, 2012), it makes sense that

this group should be the focus of Kipling’s marketing efforts.

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In terms of psychographics, the target market consists of a mix of Achievers and

Experiencers in the VALS framework. As goal-oriented women leading busy lives, they

are motivated by their desire to express their individuality and feel young. They are

independent, optimistic, carefree, playful and imaginative and look for products that

balance function with style and innovation. This target market is also likely to have

traveled abroad or aspire to travel abroad. Among those who have traveled abroad, they

have been enlightened by their experiences with products on the international market.

Imaginistas seek high quality and performance in the bags that they purchase.

They also seek to own things that others do not. From a focus group conducted with

women in the target market, it is clear that most of these women make independent

purchasing decisions and look for style, quality, size and uniqueness when purchasing

new bags. However, they are usually not able or willing pay luxury brand prices. For

them, a bag is a status symbol, but that is not all it represents. A bag must also be able to

balance style and functionality.

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Advertising Objectives

The primary objective of this advertising campaign is to generate awareness and

increase familiarity of the Kipling brand among women ages 25 to 44 in the United

States. A preliminary survey of 35 women in the target market showed that only six out

of these 35 women could recognize the brand’s name, and one did so incorrectly. These

results are unsurprising because the Kipling brand is marketed more heavily and is

achieving greater sales abroad in parts of Europe and the Asia-Pacific region.

The secondary objective of this advertising campaign is to help potential

customers understand the benefits of owning a Kipling bag. By helping prospects

comprehend why purchasing this bag would provide utility to them, we would be able to

move them closer toward feeling conviction or belief in the value of this product.

Referring to results from the focus group, it is clear that certain features of the bag should

be highlighted, such as its style, durability and organizational features.

The tertiary objective in this campaign is to build brand confidence and enhance

the brand’s image in the target market. The potential outcome of achieving this objective

is converting nonusers to users of the brand or at least encouraging nonusers to try the

brand the next time they are in the market for a new bag. According to results from the

focus group, most of the women in the target market are not loyal to any particular

brands. Hence, by making Kipling part of the brand repertoire of these users, there will be

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a greater chance that they will try the brand when the need to purchase a new bag arises.

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Creative Brief

Company Name

V.F. Corporation (parent company of Kipling North America)

Product Name

Kipling women’s bags (handbags, backpacks, messenger bags, totes, luggage and

wallets)

Problem

Although the Kipling brand is popular among women in Europe and the Asia Pacific

region, awareness of the brand among women ages 25 to 44 in the United States is low.

Less than 20 percent of women in a focus group could recognize the brand’s name, and

several misidentified the Kipling logo.

Advertising Objectives

In one year, this ad should communicate the existence of Kipling brand of bags to one

million members of the target audience. At the same time, this group should be able to

connect Kipling’s unique monkey logo to the brand. The secondary objective is to get

two-thirds of the aware group to comprehend the brand’s personality and benefits. They

should understand that the bags have well-organized compartments and come in multiple

forms, designs and colors. The third objective for this ad is to get two-thirds of the

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“comprehending” group to believe that the brand represents high-quality and long-lasting

European style. By the end of this campaign, this group should be able to add the Kipling

brand to their brand repertoire of luxury bags.

Target Audience

The target of this ad campaign is the imaginista – a woman between 25 and 44 years old

who is early or in the middle of her career. She might have a family, but is more likely to

be single with no children. She is a medium to heavy handbag consumer living in urban

and suburban areas of the United States. The imaginista has a running list of handbag

brands that she believes are superior to others. She is goal-oriented, leads a busy life, is

motivated by the desire to express her individuality and feel young, and seeks things to

own things that others do not. The imaginista is independent, optimistic, carefree, playful

and imaginative. When she is in the market for a new bag, she looks for products that

balance quality and function with style and innovation. She is also likely to have traveled

abroad or aspires to travel abroad. However, she is usually not able or willing to pay

luxury brand prices for a bag that is more form than function.

Brand Personality

Kipling bags are a jetsetter’s best friend – stylish, organized, unique and well-built. But

these ads should specifically communicate how Kipling can bring these values to women

in their everyday lives. The ads should convey an independent and imaginative spirit that

tells consumers this is a brand for the bold, driven and stylish. Through this campaign, it

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should be clear that the Kipling brand is synonymous with high quality, imaginative

European design and superior functionality.

Benefits

Kipling bags will help imaginistas stay organized amidst their busy lives and do so

stylishly. Their bold colors, patterns and shapes also feed an imaginista’s need to

distinguish herself from the rest. At the same time, Kipling bags will help take the load

off of the imaginista’s shoulders – literally and figuratively – as she will know she can

place her faith in this reliable brand.

Support for Benefits

Kipling bags are designed in Belgium and distributed worldwide, and according to some

statistics, more than 35 million people in the world now own a Kipling bag (Kipling,

2013). Images of Kipling bags and their multiple compartments (e.g. pockets for holding

bottles, for storing pens) will support the statement that Kipling bags help an imaginista

stay organized. Most of these bags also come with a key ring strap that makes it easy for

women to find their keys or wallet. Additionally, Kipling makes numerous styles and

models of bags, enabling women to choose a bag that is suitable for the function they

need it to serve. For example, the line includes messenger bags and tote bags, as well as

classic handbags and travel luggage. Kipling bags come in a variety of solid colors and

patterns, ensuring that imaginstas are able to find the perfect one that defines their

personal style. These lightweight bags are also made to last. They are made from a

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crinkle nylon material that is durable and water-resistant. Hence, these women will not

have to be as concerned about where they bring their bag or set it down – the durability of

the brand is one thing they can rely on almost effortlessly.

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Creative Concept

The big idea for this ad campaign is that life can be a mess but a woman’s handbag

should never be, and that the Kipling brand of bags and accessories can help a working

woman stay organized amidst a busy lifestyle. The “boom factor” for this campaign is

expected to occur when viewers understand that the ad’s headline, “keep the jungle out

there,” is a play on the idiom, “it’s a jungle out there.” Another potential “boom” moment

is when viewers realize that the jungle metaphor refers to a messy and disorganized

handbag. Yet another “boom” moment might occur when viewers notice that the Kipling

mascot, the iconic monkey, is itself a jungle animal. To keep the ad light and humorous,

ads will contain an illustration of anthropomorphic jungle animals in a variety of settings,

such as an office. On the following page is an example of a layout for a full page

magazine ad for this campaign.

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Eurek

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Media Plan

Media Objectives

Audience Objective

To reach career-driven women ages 25 to 44 years old who are early or in the middle of

their careers and come from medium- to high-income households.

Message-distribution Objectives

1. To deliver at least ten million advertising impressions to the Kipling brand.

2. To achieve an effective reach of at least 1 million people in the target audience.

3. To reach urban and suburban areas across the United States where retailers of the

brand (i.e. department stores, outlet malls) are located.

4. To concentrate advertising in urban areas along the East and West coasts, where

the highest number of Kipling retailers can be found.

5. To provide extra weight during the early spring (March) and Christmas

(December) season, followed by a low but consistent level of advertising

impressions throughout the rest of the advertising period. Results from a focus

group showed that many women in the target market purchased bags after their

old bags had worn out or when they needed a bag for a specific function. The

beginning of the New Year and the beginning of spring are typically times when

old items are replaced with newer items. The beginning of a new season also

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marks the renewal of fashions and styles. The holidays in particular are also a

time for travel and thus, may stimulate the demand for durable travel bags, such

as those the brand offers. The ad campaign should last about 12 months.

6. To use media that will reinforce the creative strategy’s emphasis on organization,

individuality, and durability.

7. To attain the highest advertising frequency possible once the above objectives

have been fulfilled and the specific demands of the media vehicles have been

considered.

Media Strategy

Classes of Media

This campaign will take a mixed-media approach and will involve advertising in

print media, on broadcast television and on the Internet. Specifically, ads will be run in

magazines, as spots on broadcast television and on the Internet. Magazines were chosen

as a class of media for this campaign because they offer high audience selectivity and

will allow us to communicate to our specific target audience with little wasted

circulation. Besides that, magazines have permanence and allow readers more time to

view and review the ad. Magazines also have proven selling power. To overcome the lack

of immediacy that comes with advertising in magazines, ads will also be disseminated

through broadcast television. Advertising on broadcast TV will provide this campaign

with mass coverage suitable for a national advertiser such as Kipling. Furthermore, this

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medium allows for the use of video and sounds to communicate the advertising message.

For most people, TV is also considered the most authoritative medium (Arens, Schaefer,

& Weigold, 2012). Lastly, advertising messages will also be delivered via the Internet to

reach women in the target audience who are online to connect with others, complete work

or seek out entertainment. As an interactive and personal medium, the Internet provides

many opportunities for reaching specific subsets of individuals in the target audience.

Internet ads also allow consumers to learn more about the brand and visit the Kipling

website near instantaneously.

Media Vehicles

This campaign will utilize five media vehicles. We will advertise in two national

women’s fashion magazines – Cosmopolitan and Vogue. These two magazines were

chosen for their large audience sizes. Cosmopolitan, in a 2009 MRI report, was estimated

to have a female audience size of 15.4 million, about 53 percent of whom were aged 25

to 44 (“Demographic Profile,” 2009). Of all of its female readers, the majority were

single and employed full-time, with a median household income of $57,298. In

comparison, Vogue has a total audience size of about 11.3 million, but reaches slightly

older and more affluent readers. According to circulation demographics featured on the

Condé Nast website, the median age of readers of Vogue is 38 years old and the median

household income is $63,088 (“Circulation Demographics,” 2013).

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On broadcast TV, this ad campaign will run as spots on two popular primetime

shows – Dateline NBC and The Amazing Race. These two vehicles were chosen for the

types of audiences they attract, as well as for their consistently high ratings. Dateline

NBC’s target audience is “younger, more educated, and more economically motivated

than the TV viewing median.” Former Dateline NBC executive producer, Neal Shapiro,

has also said that Dateline is a “featurish show aimed at women” (Johnston, 2000, p.

106). Furthermore, Dateline NBC ranked second among shows on ABC, CBS, NBC and

Fox in women ages 25 to 54 for its time slot on November 15th, 2013 (Bibel, 2013).

Because The Amazing Race appeals to people who have traveled abroad or aspire to, we

hope to reach an audience who has a higher probability of already being familiar with

Kipling or of trying an international brand in general. According to Nielsen TV Ratings,

The Amazing Race drew in 9.38 million viewers on Sunday, November 3rd, 2013, ranking

first among Fox, ABC and CBS shows shown at the same time (Kondolojy, 2013).

On the Internet, we have chosen to advertise on YouTube. Although the CPM of

this media vehicle is comparatively high, this website offers a more targeted reach

through the pay-per-click scheme. Under this scheme, we will set a daily ad budget and

each time a prospect clicks on our ad, a specified amount will be deducted from our daily

budget. This ensures that the people we are reaching are either within the target audience

or are interested in learning more about the product.

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Size/Length of Ads

Print ads for this campaign will either be full page or on the fourth cover of the

magazine, and will be in full color. Full page ads command more attention that smaller,

partial page ads. A full page ad also makes it more likely that there will be less clutter

and other advertisements adjacent to our ad. The fourth cover position will give our ad

the potential of being viewed by readers, even if they have not opened the magazine.

Because it stands alone, readers will also not be distracted by adjacent ads in the

magazine.

Our television ads will run as 30-second spots on Dateline NBC and The Amazing

Race. Although 30-second spots are slightly less memorable than 60-second spots,

placing these spots during popular primetime shows provides us more opportunities to

reach the target audience, in comparison to buying cheaper, longer spots on shows with

lower ratings at a different time of day.

On YouTube, we plan to use 30-second in-stream video ads, which are ads a

viewer must watch before being able to view a YouTube video. Although these ads are

slightly more expensive compared to placing our video ad in the “Suggested Videos”

section of the website, it is a more intrusive way of reaching viewers and ensures that the

ad will be seen, even if it has not been clicked. When an ad is clicked, the ad will bring

the viewer to the homepage of the Kipling USA website (www.kipling-usa.com).

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Schedule of Insertions

The campaign should begin in March 2014, at the beginning of the spring season.

In March, we will concentrate advertising by placing a fourth cover ad in Vogue

magazine and a full page ad in Cosmopolitan magazine. Both of these magazines are

published on a monthly basis. On broadcast TV, we will air a 30-second spot each week

for four weeks on Dateline NBC, which appears on NBC from 8:00 p.m. – 9:00 p.m. on

Fridays. Also in March, we will air a 30-second spot for two consecutive weeks on The

Amazing Race, which appears on CBS from 8:00 p.m. – 9:00 p.m. on Sundays. Two full-

page ads will be placed in Cosmopolitan at the beginning of the summer and fall seasons

– June and September. Starting the second week of November and into the second week

of December, we will air four more weekly 30-second spots during Dateline NBC.

Similarly, two 30-second spots will be shown on The Amazing Race for two consecutive

weeks during the last week of November and the first week of December. To maintain

our advertising concentration during this pre-Christmas season, a fourth cover ad will be

run in Vogue magazine’s December issue, and a full page ad will be run in Cosmopolitan

magazine’s December issue. Ads will be displayed on YouTube throughout the year. A

daily ad budget will be determined and, once the budget has been reached, YouTube will

not display any more of our ads until the following day. This insertion schedule is

summarized in the table on the following page.

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Month/Media Vehicle

Mar‘14

Apr‘14

May

‘14

Jun‘14

Jul‘14

Aug‘14

Sept

‘14

Oct‘14

Nov‘14

Dec‘14

Jan‘15

Feb‘15

Cosmopolitan magazine

Full page

Full page

Full page

Full page

Vogue magazine

Fourth cover

Fourth cover

Dateline NBC(Fridays,8:00 – 9:00 p.m.)

4 wks of :30 spots

2 wks of :30 spots

2 wks of :30 spots

The Amazing Race(Sundays, 8:00 – 9:00 p.m.)

2 wks of :30 spots

:30 spot

:30 spot

YouTube Daily budget spaced throughout the year

Budget

Based on past reports of the profitability of the company and of the brand, the

estimated budget for this ad campaign is $2.5 million. This budget was estimated by

comparing the market leader’s market share to its advertising expenses. The market

leader in the women’s handbags industry is Coach, which has about 30 percent of the

market share (Cheng, 2013). In 2002, total advertising expenses of the company were

estimated to total $56 million. (“Coach Repositions Itself,” n.d.). Therefore, if our goal is

for the Kipling brand to have a one percent share of the market by the end of the

campaign, the estimated budget for this advertising campaign should be $2.5 million. A

table of the costs of each ad buy is on the following page.

Media Ad size Cost per Number Total cost Total CPM ($)

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Vehicle or length insertion ($)

of insertions

for schedule ($)

Audience Size

Cosmopolitan magazine (March, June, September, December)

Full page 289,110 4 1,156,440 15,400,000x 4= 61,600,000

18.77

Vogue magazine(March, December)

Fourth cover

226,642 2 453,284 11,265,000x 2= 22,530,000

20.12

NBC’s Dateline NBC

:30 spot 37,165 8 297,320 5,600,000x8= 44,800,000

6.64

CBS’s The Amazing Race

:30 spot 94,150 4 376,600 9,380,000x4= 37,520,000

10.04

YouTube In-stream video

0.30 690,000 207,000 690,000 300.00

Totals 690,018 2,490,644 167,140,000

* Cosmopolitan ad buys based on Cosmopolitan magazine’s 2013 display advertising rates (http://tinyurl.com/crl628j) * Vogue ad buys based on Vogue’s print media kit (http://tinyurl.com/k5zkloo) * Dateline NBC and The Amazing Race spot costs based on AdWeek’s estimates for the cost of primetime television spots (http://tinyurl.com/kzoqbyw) * YouTube ad buys based on an estimate of cost-per-click for in-steam video ads (http://tinyurl.com/mhgwkm3)

Foong 29

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