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Transcript of Media Plan Final
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Table of Contents Executive Summary………………………………………………………………………………………………………………………..3
Situation Analysis………………………………………………………………………………………………………………...…….4-42
History of the Market……………………………..…………………………………...………………………………...……….4-9
Nissan: History and Current State…………………………………..………………...…………………………………….…10-16
Distribution Channels……………….……………………………………………………………………………………...….17-19
Product Consumer: Demographics, Psychographics and Buyer Habits.………………………....………………..…….........20-38
Target Consumer Profiles..………………………………………………………………………………………………….....39-42
Competitive Analysis………………………………………………………………………………………………………..…….…..43-78
Toyota Motor Corp. ……………………………………………………………………………………………………….…..44-50
Chevrolet, Division of General Motors………………………………………………………………………...……………...51-58
Ford Motor………………………………………………………………………………………………………….....….……59-65
Hyundai Motor Company………………………………………………………………………………………………….…..66-72
Honda Motor Company Ltd. ……………………………………………………………………………………………….....73-78
Media Plan…………………………………………………………………………………………………………………………...79-115
Overview………………………………………………………………………………………………………………….…...80-84
Media Selections and Rationale…………………………………………………………………………………...…….…….85-97
Media Considered But Not Recommended……………………………………………………………………….................98-101
Seasonality of Media Buys………………………………………………………………………………………………….102-109
Decision Dates and Cancellation Flexibility…………………………………………………………………….................110-116
Appendix A…………………………………………………………………………………………………………………………117-120
Appendix B: Sources……………………………………………………………………………………………………………………121
2
3
As Nissan hopes to increase multicultural Millennial share of market specifically targeting Hispanics, African
Americans, and Chinese, it is imperative for the company to understand what makes this target
unique. Research conducted by CPMedia concludes findings that the multicultural Millennial target would
best be reached through a combination of national, local, and interactive components. Thus, we have
included national print and network TV, in combination with outdoor advertising in four specific DMA’s,
strategically picked for their high density of multicultural Millennials in order to maximize the number of
targets we reach in addition to the frequency in which we reach them. Further, we allocated a large
percentage of the budget to cover Internet advertising because the target is more likely to spend their time
online than engaged in any other media. We have incorporated non-traditional buys into the plan that utilize
celebrity endorsements that the target can ethnically identify with, which also contain a strong call to action
to visit the Nissan YouTube page. With this creative campaign CPMedia has created an overall message that
encompasses the idea of individuality through the tagline, Free to be you. Free to be Nissan. The overall
message in the campaign will appeal to the multicultural Millennial’s desire to be unique and stand out.
Through these specific media buys and the non-traditional approach of identifying with your target, you will
generate future revenues with the multicultural Millennials.
Executive Summary
4
History of the Market
Nissan’s total market share is 8.8%; however these six competitors comprise 70% of the market. 5
Nissan vs. the Market
Primary Players
19.7%
16.6%
11.5% 8.5%
8.8%
4.9%
30%
Other GM
Ford
Toyota
Honda Nissan
Hyundai
1"Auto Sales - Markets Data Center." Wall Street Journal. Web. 07 Oct. 2011. <http://online.wsj.com/mdc/public/page/2_3022-autosales.html>.
Automotive Industry Market Share Wall Street Journal - September 20111 General Motors
Ford Motor
Toyota Motor Corp.
Nissan Motor Corp., Ltd.
Honda Motor Company Ltd.
Hyundai Motor Company
6
Nissan vs. the Market
How Nissan is Gaining Market Share
2Nissan Cars, Trucks, Crossovers, & SUVs | Nissan USA. Web. 06 Oct. 2011. <http://www.nissanusa.com/>. 3Ibid.
• Only 100% electric vehicle in
market compared to
competitors
• Focus on manufacturing 100%
electronic, emission-free
vehicles (ESFLOW & LEAF)2
• Beginning 2013, Exclusive automobile for
New York City TLC (Nissan NV200)3
7 4Web. 28 Sept. 2011. <http://www.mergentonline.com/competitors.php?compnumber=6050>.
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
Ford Motor Co. General MotorsCo.
Honda MotorCo., Ltd.
Hyundai MotorCo., Ltd.
Nissan MotorCo., Ltd.
Toyota MotorCorp
$9.86
$21.00
$29.21 $25.25
$16.55
$67.85
Automotive Share Prices4 Day-end September 28, 2011
Nissan vs. the Market
Share Price Comparison
8 5Web. 28 Sept. 2011. <http://www.mergentonline.com/competitors.php?compnumber=6050>.
Nissan vs. the Market
Revenue Comparison
Hyundai Motor Co.
Nissan Motor Co.
Honda Motor Co.
Ford Motor Co.
General Motors Co.
Toyota Motor Corp.
$100,400,000
$106,000,000
$108,000,000
$129,000,000
$135,600,000
$229,400,000
Automotive Revenue Comparison 20105 (000)
9
Company Name Ticker Market Value ($ - 000) EPS* Yield % β**
Toyota Motor Corp. TM 105,547.39 $1.68 1.60% 0.71
Ford Motor Co. F 43,927.34 $1.74 2.39
Nissan Motor Company Ltd. NSANY 39,321.47 $1.71 1.58
General Motors Co. GM 36,763.97 $4.75
Nissan vs. the Market
Company Market Value
*EPS denotes Earnings Per Share
**β denotes Beta (investment risk) where average Beta is
equal to 1.00
Nissan’s market value, observed at the fiscal year end, is approximately $40 million. It ranks third in
market value when compared to the primary players of the automotive market.6
Nissan Earnings Per Share
(Justification of Market Value)
Q1 EPS: 0.56
Q2 EPS: 0.57
Q3 EPS: 0.46
Q4 EPS: 0.18
Year EPS: 1.79
6"Nissan Motor Co ADS." NetAdvantage. Web. 15 Oct. 2011.
<http://www.netadvantage.standardandpoors.com/NASApp/NetAdvantage/cp/companyAllCompetitors.do://>.
10
Nissan
History and Current State
11
Nissan Motor Co., Ltd.
A Brief Overview
History7
• Nissan Motor Co., Ltd. date of establishment: December 26, 1933
• The founder of Nissan was Yoshisuke Aikawa, who planned to produce 10,000 – 15,000
units per year.
• The first Datsun passenger car emerged off the assembly line in April of 1935
• Nissan’s original slogan was "The Rising Sun as the flag and Datsun as the car of choice.”
Nissan Motor Co., Slogan: SHIFT_The way you move
Future Outlook8
• Nissan announced a six-year business plan called "Nissan Power 88."
• It calls for growth across new markets for the six fiscal years ending March 31, 2017
• During this 6 year plan Nissan plans to deliver an all-new vehicle every six weeks
• Nissan’s global portfolio will have 66 vehicles and will cover 92% of all markets and
segments under this plan
• Also, by 2017 the company aims to achieve a global market share of 8%
7"NISSAN | CORPORATE INFORMATION | Outline of Company TOP." Nissan Motor Company Global Website. Web. 08 Oct. 2011. <http://www.nissan-
global.com/EN/COMPANY/PROFILE/>.
8“Nissan Motor Co." Business Summary. Sun. 09 Oct. 2011. <www.netadvantage.standardandpoors.com>
The Product Itself
Product History
12
1933:
Nissan Motor Co., Ltd. is
established in Japan9
1937:
The Datsun Type 15 is the
first mass produced Japanese
vehicle. Other Type 15 models
include a mini pickup and
delivery van.
9"Nissan Heritage." Nissan USA. Web. 13 Oct. 2011. <http://www.nissanusa.com/about/heritage/the-early-days.html>.
1958:
The first Datsun sedan
is sold in America.
1975:
Datsun becomes the top
U.S. vehicle imported.
2011:
Nissan introduces the
Leaf trying to reach their
100% electricity 0 emission
objective.
1968:
The first car styled
for the U.S. market is
launched, the Datsun 510.
1993:
Nissan celebrates 10 years of
manufacturing cars in the U.S. ,
Altima tops sales records, and
the Maxima surpasses one million
cars sold.
13
Nissan Motor Co., Ltd.
Ad Spending for 2010
Spending Overview10
• In 2010 Nissan Motor Co. spent at total of $866,435,000 on media in the United
States, which gave it a ranking of 42 out of the 100 companies that spent the
most in media.
• Of the different channels of media that Nissan allocated its budget to, the
categories that received the most amount for 2010 were:
• Network TV
• Cable TV
• Spot TV
10"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 28 Sept. 2011. http://adage.comdatacenter/marketertrees2011/.
14
Nissan Motor Co., Ltd.
Where is the Money Going?
11"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 28 Sept. 2011. http://adage.comdatacenter/marketertrees2011/.
9.35% 0.03% 0.05% 0.00% 0.91%
0.67%
0.01%
0.04%
22.67%
2.64% 10.73%
0.02%
11.43%
0.07%
1.15%
10.67%
29.54%
Magazines
B-to-B Magazines
Local Magazines
Spanish-language Magazines
Newspaper
National Newspaper
Spanish-language Newspaper
Outdoor
Network TV
Spanish-language Network TV
Spot TV
Syndication
Cable TV
Network Radio
Local Radio
Internet
Unmeasured
Fiscal Year Ending 201011
Nissan’s total Ad Spending is approximately $866 million
Sales (000)
81,029
242
399
22
7,878
5,829
126
360
196,427
22,882
92,990
186
99,031
638
9,933
92,487
255,976
*A specified breakdown of unmeasured spending can be found in the appendix
*
15
Nissan Motor Co., Ltd.
Advertising Seasonality Nissan Advertising Seasonality12
12
The most significant pattern
observed with Nissan
advertising expenses is that
they do not advertise in Q4
and spend significantly less
money in Q1 when compared
to the other quarters of the
year. It’s possible that the
company is saving funds to
spend the most amount
possible in Super Bowl
advertising. They could also
be waiting to spend more
money advertising newer
models, which come out at
the start of the year.
Also, in 2009 Nissan spent
considerably more on
advertising than in 2010 and
2011; however, it seems they
are spending more and more
each year, and each quarter
since then.
12 Bloomberg L.P. (2011). ARD Advertising Expenses graph for Nissan Motor Corp. 2000 to 2011. Retrieved Oct. 6, 2011 from Bloomberg terminal.
16
SWOT Analysis
Strengths
Industry’s first fully electric vehicle
Affordable
Exclusive automobile for New York City TLC
Red Tent Event
Nissan Power 88
Weaknesses
Low market share
Overall low gas mileage
Mediocre brand image
Advertising spending towards a small percentage of potential customers
Opportunities
Media plan focus towards multicultural Millennials
Improve upon product line’s gas mileage
Promote big sales and new model releases
Enhanced sponsorships
Creative buys geared towards target
Threats
High direct competition (other car companies)
Exclusive sponsorship deals already signed by competition
Media waste
Public transportation leverages target audience
SWOT
17
Distribution Channels
18
Distribution Channels
Exclusive Nissan Dealerships
• Nissan’s exclusive dealerships are located in 49 states, excluding Hawaii.
• In total Nissan owns 1,065 exclusive dealerships throughout the United States
• The concentrated regions where Nissan places the most dealerships are: California,
Texas, New York, and Florida13
13 "Find a Nissan Dealer | Nissan USA." Nissan Cars, Trucks, Crossovers, & SUVs | Nissan USA. Web. 27 Oct. 2011. <http://www.nissanusa.com/apps/dealerlocator>.
19
Distribution Channels
Nissan’s National Tent Event
• Nissan’s National Tent Event is an annual end of summer sale, which aims to get rid of
their old models in preparation for the releases of new models in September.
• The Tent Event runs from July to September each year.
• This is promoted and hosted at ALL local Nissan dealers
• Red and white tents are placed at dealerships to promote the seasonal deals
• Nissan chooses to spend heavily during Q3 (i.e. July, August and September). This is in
preparation for the Tent Event, the biggest dealership sales promotion of the year and for
the new models released in September.14
14 2011 Nissan Tent Event | Nissan National Tent Event | Come Save Today!! Web. 27 Oct. 2011. <http://www.thenissantentevent.com>.
20
Product Consumer
Demographics, Psychographics & Buyer Habits
21
Product Consumer
Demographics
Who is the target demographic?15 • The target demographic for this initiative is
Multicultural Millennials, ages 18-29, in the African
American, Hispanic and Chinese segments.
• The target is comprised of 57% men and 43% women.
• The MC Millennial is 41% more likely than the
average to have a household income of $60,000+ and
32% more likely than the average to have attended
college.
• In terms of occupation the MC Millennials are highly
likely to work in the Arts, Design, Entertainment,
Sports and Media industry; and are 186% more likely
than the average to do so. The second most common
occupation this target holds is in Sales/Office, and the
Multicultural Millennials are 60% more likely than the
average to hold a position in this field.
15Nissan Client Brief
22
Target Demographic Population
Of the United States population, there are a total of 7,750,700 Multicultural Millennials which accounts for
approximately 2.44% of the population. Further broken down by demographic, African American, Hispanic
and Chinese Millennials account for 1.07%, 1.28% and .09% of the total population respectively. Thus, when
allocating budget and media buys, the largest percent of the budget corresponds to the largest demographic,
Hispanic Millennials, followed by African American Millennials, and last Chinese Millennials. While this
target may be a small percentage of the entire U.S. population, it still accounts for close to 8,000,000 people,
which has the potential to create large sales volume increases for Nissan.16
162010 U.S. Census
Product Consumer
Demographics
• Big purchase decisions are based on style, function, quality and reliability.
• Want to be defined by their choice in music, art, and celebrity association.
• A cause or incentive is necessary to follow a mass brand.
• Internet, Television, and Magazines are the three most popular medias for
relaxation.17
23
Media Index
Internet: All 3 186
Television: Source of Information and Relaxation 207
Magazines: Source of Relaxation only 643
Radio: Source of Inspiration only 141
Radio: Source of Relaxation only 130
Note: Information, Relaxation, and Inspiration = Internet: All 3
17Nissan Client Brief
24
Psychographics
Attitudes Towards Cars and Driving
18Simmon Choices 3
OFTEN DRIVE BY SELF FOR SENSE OF FREEDOM
Sample 2,840 36 23 263
(000) 54,113 1,416 952 2,572
Vertical 25% 29% 34% 30%
Horizontal 100% 2.62% 1.76% 4.75%
Index 100 117 136 121
Base 25% 0.65% 0.44% 1.18%
African Americans
Asians Hispanics
MY CAR SHOULD EXPRESS MY
PERSONALITY
Sample 3,526 39 38 325
(000) 65,212 1,735 1,577 2,850
Vertical 30% 35% 56% 33%
Horizontal 100% 2.66% 2.42% 4.37%
Index 100 119 187 112
Base 30% 0.79% 0.72% 1.30%
• Nissan’s target often drive by themselves for a sense of freedom.
• Nissan’s target feel that their car should express their personality.
• The research shows that, overall, Nissan’s demographic is independent.
These users consume products that can be personalized and fit their lifestyles.18
25
Psychographics
Attitudes Towards the Ideal Car
• African American, Chinese, and Hispanic
Millennials have formed their own attitudes towards
cars.
• Their ideal car is fast, exciting, friendly to the
environment, makes use of technology, and allows
them to include their own personal style.
• They will choose a car based on looks and style.
• The target is:
• 80 times more likely to “seek out designs
that stand out from others”
• 66 times more likely to “seek our cars that
support their commitment to the environment”
• 34 times more likely to “enjoy personalizing
their vehicle”19
19 Nissan Client Brief
Car Attitudes
Agree Completely Index
Seek out bold, innovative designs that stand out from others
180
Seek out vehicles that support my commitment to the environment
166
Having a fun vehicle to drive is a top consideration
152
Look forward to technology advances in new vehicles
139
Enjoy personalizing my vehicles to reflect my individual tastes
134
Consider myself to be an automotive enthusiast
125
Generally purchase the most expensive model with all luxury appointments
116
26
Psychographics
Attitudes Toward Car Purchases
20Simmon Choices 3
• Asians, overall, are 213 times more likely to purchase a Japanese, Korean or other Asian originated
vehicle in their next vehicle purchase. Asian Millennials are 212 times more likely to make this purchase
than the average individual. All Asians are 107 times more likely to purchase a new Nissan, and 31 times
more likely to own a Nissan than the average population.
• Hispanic Millennials and Hispanics overall are not highly likely to purchase a Nissan, but the segment
follows the average of Nissan purchases.
• African Americans overall are 46 times more likely than the average to have most recently acquired a
Nissan.20
Sample 228
(000) 3,474
Vertical 37%
Horizontal 14%
Index 313
Sample 1.59%
Sample 52
(000) 709
Vertical 7.49%
Horizontal 8.96%
Index 207
Sample 0.32%
Next vehicle Japanese, Korean
or Other Asian Bought a new Nissan
Asian
Psychographics
Reasons for Driving
27
Reasons Target Drives: Adults 18 - 29
Race: African American
Race: Asian
Spanish spoken in home
Commute to Work 3 times
less likely 20 times less likely
13 times more likely
5 times less likely
Other Driving for Work 19 times
less likely 27 times less likely
12 times less likely
9 times less likely
Leisure 16 times
less likely 39 times
less likely 16 times less likely
31 times less likely
Errands 20 times
less likely 39 times less likely
28 times less likely
25 times less likely
Transport Others Average 28 times
less likely 8 times
less likely 6 times
less likely
Other 91 times
more likely 15 times less likely
2 times less likely
10 times more likely
21 MRI Mediamark Reporter. Fall 2010. Web. 19 Oct. 2011. <http://www.mriplus.com.rlib.pace.edu/account/home.aspx>.
MRI Fall 2010 Automotive21
• According to MRI, adults 18-24 are 91 times more likely to describe their reasons for driving as other.
This pattern of being the most relevant information is seen again for African Americans as well as
Hispanics. Asians are the only segment who responded that they were 13 times more likely to use a car
to commute to work as the primary reason for driving.
Sample 309
(000) 3,744
Vertical 9.40%
Horizontal 24%
Index 131 28
Psychographics
Attitudes Towards Nissan
22Simmon Choices 3
• Nissan car-buyers were evaluated in conjunction with the target audience. There was no significant data
regarding African American Millennials and Asian Millennials in regards to their preferences towards
Nissan. However, Hispanic Millennials and Millennials overall are likely to favor Nissan.
• Hispanic Millennials are 45 times more likely to have most recently acquired a Nissan than the average
individual. Millennials – overall – are 29 times more likely to have most recently acquired a Nissan and
34 times more likely to have acquired a Nissan within no specific timeframe than the average individual.
Millennials are 31 times more likely than the average to own a Nissan. With significance in the Millennial
age range, the target audience may be reached through their social environments and word of mouth
buzz.22
Own a Nissan
Sample 390
(000) 4,584
Vertical 12%
Horizontal 24%
Index 134
Recently acquire a Nissan
Millennials
Note: In this instance, “own” denotes an owner of a Nissan that has obtained the Nissan by no specific means. “Acquire” denotes an individual
that has obtained a Nissan for oneself, by oneself (as in bought for oneself).
29
Psychographics
Attitudes Towards Technology
Technology Interests
Agree Completely Index
I am first among my friends to try new technology.
213
I am fascinated by new technology.
164
Technology helps make me more organized.
134
I like to read reviews before buying new technology.
133
Computers can be a good source of entertainment.
116
When I find new technology I typically recommend it to people I know.
114
• Millennials are 113
times more likely to try
new technology.
• Millennials are 33 times
more likely to read
reviews.23
23 Nissan Client Brief
30
Psychographics
Attitudes Toward Electronics
24Simmons Choices 3
• It is clear that the target demographic holds an exponentially favorable attitude towards electronics.
African Americans, Asians and Hispanics (ages 18-29) are 101%, 208% and 106%, respectively, more
likely than the average to pay anything for an electronic product that they want. With this directional
research we can conclude that because the target is willing to pay anything for an electronic product they
want, they place this kind of technology in high regard; this is something to consider when appealing to
their attitudes in a campaign.
• Additionally, the Millennial African Americans, Asians and Hispanics are 133%, 198% and 64%,
respectively, more likely than the average to be the first of their friends to have new electronic equipment.
This demonstrates the target can be considered purchasing leaders among their peers.24
African Americans
Asians Hispanics
PAY ANYTHING FOR ELECTRONIC PRODUCT I WANT
Sample 2,517 62 45 388
(000) 22,479 988 779 1,789
Vertical 10% 21% 32% 21%
Horizontal 100% 4.40% 3.47% 7.96%
Index 100 201 308 206
Base 10% 0.45% 0.36% 0.82%
31
Psychographics
Attitudes Towards the Media
25Simmons Choices 3
• The target also favorably agreed with the following
statements regarding media attitudes:
• I find television advertising interesting
• Magazines are my main source of entertainment
• I often notice the ads at bus stops
• I often notice ads on trains
• I often notice the ads on buses
• I often notice the ads on taxis
Nissan Outdoor Advertising
Nissan Print Advertising • This demonstrates that Multicultural
Millennials do pay attention to
advertising in the above mediums. They
are less likely than the average to listen
to the radio for quick news updates and
do not rely on newspapers to keep
informed.25
32
Psychographics
Attitudes Towards Internet and Entertainment
26Simmons Choices 3
• Millennial African Americans, Asians and Hispanics are 42%, 268% and 49%, respectively, more likely
than the average to view the internet as their prime source of entertainment.
• The target also greatly agrees with the statement “internet is the new way I socialize and meet others” as
well as “internet is the prime source of family entertainment.” These findings allow us to understand that
the target demographic is not just casually on the internet, but rather it is an important component that
affects multiple aspects of their life.26
African
Americans Asians Hispanics
INTERNET PRIME SOURCE MY ENTERTAINMENT
Sample 3,315 60 68 448
(000) 32,810 1,022 1,359 1,894
Vertical 15% 21% 55% 22%
Horizontal 100% 3.12% 4.14% 5.77%
Index 100 142 368 149
Base 15% 0.47% 0.62% 0.87%
INTERNET NEW WAY I SOCIALIZE/MEET OTHERS
Sample 2,871 77 65 445
(000) 29,091 1,256 1,275 2,044
Vertical 13% 26% 52% 24%
Horizontal 100% 4.32% 4.38% 7.03%
Index 100 197 390 181
Base 13% 0.57% 0.58% 0.93%
33
Psychographics
Focused on African American Millennials
27Simmon Choices 3
• There are two lifestyle statements that are unique in African Americans Millennials:
• People always ask my advice on a car buy
• I like a new car every two or three years
• The significance of these statements show that this segment considers themselves to be
influencers. African American Millennials are also active consumers in the automotive
market.27
LIKE A NEW CAR EVERY TWO OR THREE YEARS
Sample 26
(000) 1,054
Vertical 22%
Horizontal 3.43%
Index 153
Base 0.48%
PEOPLE ALWAYS ASK MY ADVICE ON CAR BUY
Sample 22
(000) 721
Vertical 15%
Horizontal 2.47%
Index 111
Base 0.33%
34
Psychographics
Focused on Asian Millennials
28Simmon Choices 3
• 60% of Asians 18 – 29 feel that comfort is the most important thing in a car and 51%
normally drive without any passengers.
• This segment focuses heavily self concept. Asian Millennials are conscious of self-
perception as well as how they are perceived by others.
Sample 27
(000) 1,199
Vertical 42%
Horizontal 4.77%
Index 368
Base 0.55%
Sample 37
(000) 1,401
Vertical 49%
Horizontal 2.48%
Index 191
Base 0.64%
I can tell a lot about someone
by the car they drive
My car should catch people’s attention
• The following lifestyle statements were significant in
support of these insights:
• Foreign cars have more prestige than American cars
• I like to drive faster than normal
• Foreign cars are of higher quality than American cars
• I prefer driving a luxury vehicle
• I choose a car mainly on looks
• I would pay extra for an engine with more horsepower28
35
Psychographics
Focused on Asian Millenials
29Simmon Choices 3
American Cars Versus Foreign Cars • The Asian segment holds different attitudes than the other segments of Nissan’s target. Asian Millennials
hold a higher value in foreign vehicles over American vehicles.
• The segment is 259 times more likely than African American Millennials and 164 times more likely than
Hispanic Millienials to feel that foreign cars hold more prestige than American cars.
• Asian Millennials are also 93 times more likely than African American Milliennials and 99 times more
likely than Hispanic Millennials to feel that foreign cards are of higher quality than American cars.
Cars and Self-Perception • The segment is 62 times more likely than African Americans and 51 times more likely than Hispanics to
agree with the statement, “My car should catch people’s attention.”
• Asian Millennials are also 77 times more likely than African Americans and 28 times more likely than
Hispanic Millennials to feel that they can tell about someone by the car they drive.29
36
Psychographics
Focused on Hispanic Millennials
30Simmon Choices 3
• Hispanic Millennials are similar to Asian Millennials in the perception of foreign vehicles.
This information is useful to Nissan as these segments are likely to purchase a foreign
vehicle. The segment is similar to African American Milliennials as influencers in the
market.
Sample 186
(000) 1,611
Vertical 19%
Horizontal 6.41%
Index 164
Base 0.74%
Sample 172
(000) 1,638
Vertical 19%
Horizontal 5.62%
Index 144
Base 0.75%
Foreign cars have more
prestige than American
People always ask my
advice on car buys
• The Hispanic Millennials segment was found to
be likely to agree to the following statements:
• My car should catch people’s attention
• Options on a car impress me
• Can tell about someone by the car driven
• Often in car with more than one person
• Choose a car mainly on looks30
37
Buyer Habits
Amount Target Spent in Total
Amount Spent in Total on Vehicle:
Adults 18 - 29
Race: African American
Race: Asian
Spanish spoken in home
$50,000+ 61 times less likely
41 times less likely
71 times more likely
18 times more likely
$30,000 - $39,999 49 times less likely
44 times less likely
41 times more likely
26 times less likely
$15,000 - $19,999 39 times
less likely 38 times less likely
21 times less likely
17 times less likely
Under $10,000 7 times
more likely 15 times less likely
28 times less likely
4 times more likely
MRI Fall 2010 Automotive31
31 MRI Mediamark Reporter. Fall 2010. Web. 19 Oct. 2011. <http://www.mriplus.com.rlib.pace.edu/account/home.aspx>.
• When purchasing a new vehicle, Nissan’s target market of adults 18 to 24 years old of African America, Chinese,
and Hispanic race will consider price as one of the most important aspects. According to the above data from MRI
Fall 2010 Product: Automotive, Asians and those who speak Spanish within the home are more willing to spend a
large amount of their money on an automotive vehicle ($50,000 or more). While the average adult 18 – 24 years
old, especially African Americans, stated they are not willing to spend a large amount to buy a vehicle. As the
price of the vehicle reduces, African Americans are more willing to buy, as opposed Asians who display an
opposite pattern. Spanish speaking households are more willing to buy when the price is either high or very low,
but not an in between value. This may be due to income and perceived value of the product according to price.
38
Buyer Habits
How Target Purchased Vehicle
32 MRI Mediamark Reporter. Fall 2010. Web. 19 Oct. 2011. <http://www.mriplus.com.rlib.pace.edu/account/home.aspx>.
MRI Fall 2010 Automotive32
How Target Purchased Vehicle:
Adults 18 - 29
Race: African American
Race: Asian
Spanish spoken in home
Bought 27 times less likely
27 times less likely
6 times less likely
13 times less likely
Leased 22 times
more likely 7 times
less likely 31 times
more likely 16 times
more likely
With Cash 21 times
less likely 42 times
less likely 7 times
less likely 11 times less likely
With Trade-in 49 times
less likely 49 times less likely
23 times less likely
37 times less likely
Financing from Dealer 31 times
less likely 6 times
less likely 16 times
more likely 5 times
less likely
Bank Loan 38 times
less likely 47 times less likely
24 times less likely
21 times less likely
Credit Union Loan 34 times
less likely 24 times
less likely 26 times
less likely 33 times
less likely
Financing from Auto Manufacturer
50 times less likely
11 times less likely
27 times less likely
31 times less likely
• How to purchase a vehicle consists of multiple options as displayed in the chart above. Adults 18 to 24 will choose to lease a vehicle
over buying the product, this is because leasing a vehicle does not require the young buyer to be responsible for the full price only
fixed monthly payments. The data displays that these 3 ethnicity groups are likely to avoid loans and trade-ins to purchase a vehicle
(49-21 times less likely). Financing from Dealer is the most attractive option with only 5-16 times less likely rates.
39
Target Consumer Profiles
Target Consumer Profile
Meet Carlos
40
Carlos prefers a foreign vehicle that will catch the
attention of his friends. Carlos feels that foreign cars
are more prestigious than American cars. The new
and innovative vehicles provided by Nissan are ideal
for him. Carlos seeks out vehicles with options that
may impress him and his friends. He feels that he
can tell about someone by the car they drive. Carlos
will choose his next vehicle based on its looks as he
will be driving with more than one passenger.34
33Client Brief 34Simmons Choices 3
Profile Highlights
Name: Carlos
Age: 23
Location: Los Angeles, California
Job Title: Retail Manager
Annual HHI: $45,00033
Marital Status: Single
Target Consumer Profile
Meet Charles
41
Charles, being tech savvy, is the first among his friends to get the latest electronics.
Several Nissan vehicles come equipped with voice command electronic systems which
can help Charles navigate, find local restaurants, and play his favorite music. Charles
spends much of his time online, browsing Yahoo!, or watching funny videos on YouTube.
He works hard and looks for a car that can keep up with his busy life. Good thing the
Nissan Maxima delivers an impressive 290 HP.36
35Client Brief 36Simmons Choices 3
Profile Highlights
Name: Charles
Age: 27
Location: New York, NY
Job Title: Sales Manager
Annual HHI: $65,00035
Marital Status: Engaged
Target Consumer Profile
Meet Valerie
42 37Client Brief 38Simmons Choices 3
Valerie is a new buyer to the automotive market.
She is likely to buy a new car every two to three
years, which makes her a potential lifetime
buyer of Nissan. Valerie will purchase a car that
expresses her personality. She will be driving
her car alone and will seek out a car that makes
her feel comfortable.38
Profile Highlights
Name: Valerie
Age: 19
Location: Atlanta, Georgia
Job Title: Student
Annual Income: Dependent
Annual HHI: $66,00037
Marital Status: Single
43
Competitive Analysis
44
Toyota Motor Corp.
The Competition
45
History39 • Toyota Motor Co., Ltd. was founded in 1937 by Mr. Sakichi Toyoda, however Toyoda had
been working toward the inception since 1924.
• In 1957 Toyota Motor Sales Co., Ltd. Was established despite a major financial crisis facing
the company.
• In 1982 the two entities merged to become what we know as Toyota Motor Corp.
• Today Toyota is the world's largest vehicle manufacturer based on sales and production
volume.
39"History of Toyota." TOYOTA MOTOR CORPORATION GLOBAL WEBSITE. 1995-2011. Web. 07 Oct. 2011. <http://www.toyota-
global.com/company/history_of_toyota/>. 40Levy, Efraim. Sector Scorecard: GICS Sub-Industry Summary. Rep. Standard & Poor's, 2011. NetAdvantage. Web. 26 Sept. 2011.
<http://http://www.netadvantage.standardandpoors.com.rlib.pace.edu/NASApp/NetAdvantage/cp/companyIndustryPage.do>.
Toyota Motor Corp.
A Brief Overview
Toyota Motor Corp. Slogan: Moving Forward
Outlook for the Future40 • Toyota’s outlook for the automobile manufacturers sub-industry for 2012 is positive, as U.S. demand for
automotive is raising annually. Japanese automakers are recuperating from the recent tragedy at a rapid
rate.
• Toyota is paying full attention to economic factors that may weaken sales
• Due to rising gasoline prices in the U.S., Toyota predicts the possibility of a decrease in sales
volume and vehicle mix
• Rising raw material costs are causing compressions in margins
• Thus, Toyota predicts that growth will occur in smaller trucks and SUVs
46
Spending Overview41
• During 2010 Toyota Motor Corp. allocated
$916,524,600 to media buys throughout various
channels of communication.
Toyota Motor Corp.
Ad Spending for 2010
41"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 26 Sept. 2011. http://adage.comdatacenter/marketertrees2011/.
• When compared to other companies, Toyota was ranked as the 16th company to
spend the most amount of money on media in 2010.
• When compared to Nissan Motor Co. Ltd, Toyota spent significantly more on
media (about $432,158,000). Nissan’s media spending in 2010 totaled to
$484,366,600; Toyota nearly doubled what Nissan spent on media in 2010.
7.65% 0.33%
0.06% 0.00%
0.03%
1.14%
0.63%
0.03%
21.98%
7.80%
1.11%
11.13%
3.82% 0.06%
0.00% 0.28% 0.99%
7.57%
35.37%
Magazine
Sunday magazine
B-to-B magazine
Local magazine
Spanish-language magazine
Newspaper
National newspaper
Spanish-language newspaper
Network TV
Spot TV
Syndicated TV
Cable TV networks
Spanish-language network TV
Network radio
National spot radio
Local radio
Outdoor
Internet (display only)
Unmeasured spending
47 42"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 26 Sept. 2011. http://adage.comdatacenter/marketertrees2011/.
Toyota Motor Corp.
Where is the Money Going?
Fiscal Year Ending 201042
Sales (000)
132,833
5,705
975
44
559
19,835
10,976
607
381,432
135,394
19,342
193,205
66,261
1,047
60
4,911
17,210
131,337
613,929 *
*A specified breakdown of unmeasured spending can be found in the appendix
48
It seems that after juggling
with the advertising budget
in the early 90’s, Toyota
has progressively spent
more and more on
advertising over the years.
However, in 2003 the
aggressive growth pattern
leveled out and it’s
appropriate to predict that
Toyota’s budget since 2003
has rose, but not in the
exponential way we see in
earlier years. Because of
the 2008 financial crisis
Toyota’s advertising budget
most likely declined during
2008 and 2009. Due to
recalls of their product in
2010, Toyota most likely
increased spending on
advertisements to regain
public trust.43
Toyota Motor Corp.
Advertising Seasonality
43Bloomberg L.P. (2011). ARD Advertising Expenses graph for Toyota Motor Corp. 2000 to 2011. Retrieved Oct. 6, 2011 from Bloomberg terminal.
49
Both Toyota and Nissan spent high percentages of their respective budgets on similar channels of media: Magazines, Network TV, Spot TV and
Cable TV. While Toyota focused spending on Network and Cable TV, Nissan honed in on Magazines and Spot TV. This allows us to better
understand the consumers both companies are hoping to reach. It’s appropriate to conclude that the target Toyota was attempting to reach in 2010
were heavy Network and Cable TV watchers.
Toyota Motor Corp.
Media Buys Compared to Nissan Fiscal Year Ending
201015
44"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 26 Sept. 2011. http://adage.comdatacenter/marketertrees2011/.
Nissan
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
Magazines
B-to-BMagazin
es
LocalMagazin
es
SundayMagazin
es
Spanish-languag
eMagazin
es
Newspaper
NationalNewspa
per
Spanish-languag
eNewspa
per
OutdoorNetwor
k TV
Spanish-languag
eNetwor
k TV
Spot TVSyndicat
ionCable
TVNetwork Radio
LocalRadio
NationalSpot
RadioInternet
Unmeasured
Nissan 9.4% 0.0% 0.0% 0.0% 0.0% 0.9% 0.7% 0.0% 0.0% 22.7% 2.6% 10.7% 0.0% 11.4% 0.1% 1.1% 0.0% 10.7% 29.5%
Toyota 7.7% 0.1% 0.0% 0.3% 0.0% 1.1% 0.6% 0.0% 1.0% 22.0% 3.8% 7.8% 1.1% 11.1% 0.1% 0.3% 0.0% 7.6% 35.4%
Toyota vs. Nissan Budget Allocation (by percent)
Nissan Toyota
50
Toyota Motor Corp.
How Toyota is Gaining Market Share
Toyota ’s Sports45
• Toyota is very active in the sports world with from sponsorships to special events. The
company is currently an official sponsor of the FIFA World Cup (soccer) as well as the
IAAF World Championships (track and field).
• Toyota also sponsors various football events during the Unites States football season,
however their current focus is on soccer.
• Motor Sports sponsorships are also a large chunk of Toyota’s annual budget. The
company sponsors races and programs annually as well as participates in motor sports
through their vehicles.
Toyota Believes the Children are Our Future46
• The Fritz Kreisler Violin Competition and the Dream Car Art Contest are two cultural
events that Toyota also sponsors.
• Both contests encourage children and young adults to tap into their full potential and be
their generations leaders, whether it be leading by excellence or leading with
imagination.
45"Sports Sponsorship." TOYOTA MOTOR CORPORATION GLOBAL WEBSITE. 1995-2011. Web. 28 Sept. 2011. <http://www.toyota-
global.com/events/sports_sponsorship/>. 46”Cultural Events." TOYOTA MOTOR CORPORATION GLOBAL WEBSITE. 1995-2011. Web. 28 Sept. 2011. http://www.toyota-
global.com/events/cultural_events/.
Chevrolet, Division of General Motors
The Competition
51
History
• General Motors owns Chevrolet, GMC, Cadillac and Buick47
• The company was incepted in Detroit, MI in 1908
• It is the world’s 2nd largest car & truck manufacturer and the largest
in the United States48
• The Chevrolet division was established in 191149
• Founded by racer Louis Chevrolet and original General Motors founder William C. “Billy”
Durant
• Chevy produced cars, crossovers, SUVs, and trucks
• Chevrolet is the 4th largest automotive brand in the world
• 52% of GM’s advertising budget was allocated to Chevy in 201050
Chevrolet Slogan: An American Revolution
Current Situation and Future Outlook
• 27% of GM is owned by the United States due to when the company filed for bankruptcy in 200951
• GM is confident they will return to normal production by 201152
• The company plans to increase to 12.9 million units of production in 2011
52
Chevrolet
A Brief Overview
47"Chevy Culture | Chevrolet 100 Years Strong." 2011 Cars, SUVs, Trucks, Crossovers & Vans | Chevrolet. Web. 06 Oct. 2011. <http://www.chevrolet.com/culture/article/chevrolet-centennial/>. 48"Standard & Poor's." Web. 07 Oct. 2011. <http://www.netadvantage.standardandpoors.com/NASApp/NetAdvantage/companyOverview.jsp>. 48"Chevy Culture | Chevrolet 100 Years Strong." 2011 Cars, SUVs, Trucks, Crossovers & Vans | Chevrolet. Web. 06 Oct. 2011. <http://www.chevrolet.com/culture/article/chevrolet-centennial/>. 50"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 28 Sept. 2011. http://adage.comdatacenter/marketertrees2011/.
"Standard & Poor's." Web. 07 Oct. 2011. <http://www.netadvantage.standardandpoors.com/NASApp/NetAdvantage/companyOverview.jsp>. 51ibid. 52ibid.
53
General Motors & Chevrolet
Ad Spending for 2010
General Motors Spending Overview53
• GM Motors is the third highest spender in advertising in the United States.
• In 2010 alone the company spent $2.87 billion in advertising.
• Highest expenditure is Network TV ($602.5 million)
• Advertising in Spanish-language magazines ($3.6 million)
• Advertising in Spanish-language newspaper ($2.9 million)
• Advertising in Spanish-language network TV ($76.8 million)
Chevrolet Spending Overview
• Chevy began advertising on Hispanic networks in August 2010.
• It was the highest expenditure for GM in 2010 ($1.1 billion)
• 2nd highest advertising expenditure is for GMC at $335 million
53"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 28 Sept. 2011. <http://adage.comdatacenter/marketertrees2011/>.
13.72% 0.07%
0.26%
0.09%
0.13%
7.50% 0.96%
0.10%
21%
6.55%
1.45%
10.23%
2.68%
1.09% 0.30% 0.56%
0.61%
8.37%
24.32%
Magazine
Sunday magazine
B-to-B magazine
Local magazine
Spanish-language magazine
Newspaper
National newspaper
Spanish-language newspaper
Network TV
Spot TV
Syndicated TV
Cable TV networks
Spanish-language network TV
Network radio
National spot radio
Local radio
Outdoor
Internet
Unmeasured
54
General Motors
Where is the Money Going?
54"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 28 Sept. 2011. http://adage.comdatacenter/marketertrees2011/.
Fiscal Year Ending 201054
Sales (000)
393,718
7,516
2,641
2,108
3,642
215,086
27,559
2,934
17,469
602,547
76,857
188,033
41,523
293,618
31,285
16,091
8,654
240,003
697,670
*A specified breakdown of unmeasured spending can be found in the appendix
*
55
General Motors
Where is the Money Going?
55Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 28 Sept. 2011. http://adage.comdatacenter/marketertrees2011/.
Chevrolet $1,128,746,000
52%
GMC $335,327,000
16%
Cadillac $297,126,000
14%
Buick $248,487,000
11%
OnStar $66,628,000
3%
GM $51,312,000
2%
Goodwrench $38,067,000
2%
GM allocated 52% of total
advertising spending to
Chevrolet amounting to a total
of approximately $1.1 billion
Ad Spend (2010)55
56
General Motors
Advertising Seasonality
There was an exponential
increase in GM’s
advertising expenses from
2009 to 2010. This can be
linked to the deep financial
burden GM experienced
before the government
bailout. After the 2008
financial crisis, GM most
likely cut budget from the
most obvious place to cut
from – advertising. Upon
its initial recovery phase in
2009, GM has been able to
up the advertising budget
and will most likely
continue to do so in 2012.
However the increase will
be slight and when
compared to the increase
from 2009 to 2010, it will
seem minimal.56
56Bloomberg L.P. (2011). ARD Advertising Expenses graph for General Motors. 2000 to 2011. Retrieved Oct. 6, 2011 from Bloomberg terminal.
Nissan
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Magazines
B-to-BMagazi
ne
LocalMagazi
ne
SundayMagazi
nes
Spanish-
language
Magazines
Newspaper
National
Newspaper
Spanish-
language
Newspaper
Outdoor
Network TV
Spanish-
language
Network TV
Spot TVSyndica
tionCable
TVNetwork Radio
LocalRadio
National SpotRadio
InternetUnmeas
ured
Nissan 9.4% 0.0% 0.0% 0.0% 0.0% 0.9% 0.7% 0.0% 0.0% 22.7% 2.6% 10.7% 0.0% 11.4% 0.1% 1.1% 0.0% 10.7% 29.5%
General Motors 13.7% 0.3% 0.1% 0.1% 0.1% 7.5% 1.0% 0.1% 0.6% 21.0% 2.7% 6.6% 1.4% 10.2% 1.1% 0.6% 0.3% 8.4% 24.3%
General Motors vs. Nissan Budget Allocation (by percent)
Nissan General Motors
57
General Motors Co.
Media Buys Compared to Nissan
57"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 28 Sept. 2011. http://adage.comdatacenter/marketertrees2011/.
Fiscal Year Ending
201057
• GM spends 10% of advertising on Newspapers, while Nissan spends just over 1%. We can conclude that because of GM’s larger advertising
budget, they can spend larger amounts on different channels of media.
• Nissan spends nearly 50% more on Spot TV than GM in terms of percent respective to their budget
• Nissan’s primary focus on spending is in television media, while GM allocates money to all channels of advertising with a higher focus on
print media.
58
Chevrolet
How Chevrolet is Gaining Market Share
Chevy Leads the Way • Chevrolet is the automotive volume leader for GM
• Chevrolet focuses on vehicles with higher fuel efficiency than their competitors58
582011 Cars, SUVs, Trucks, Crossovers & Vans | Chevrolet. Web. 28 Sept. 2011. <http://www.chevrolet.com/>. 59Lico, Nick. “Chevy takes value, volume message, and wraps it in flag.” Advertising Age 79.34 (2008): C-4. Business Source Premier. EBSCO. Web. 27 Sept. 2011. 602011 Cars, SUVs, Trucks, Crossovers & Vans | Chevrolet. Web. 28 Sept. 2011. <http://www.chevrolet.com/>.
Chevrolet: All American. All the Time.59 •Chevy used the slogan, “Baseball, Hot Dogs, Apple Pie, and
Chevrolet” in the 1970s
•The company focuses on affordability and gas efficiency
The 2008 financial crisis’ effect on gas prices caused a drop in
sales
Chevrolet is an international brand •Chevy produces vehicles in Central & South America, China, Egypt, Jordan, Kenya,
and South Africa60
Ford Motor
The Competition
59
Ford Motor
A Brief Overview
History • Henry Ford founded Ford and developed the Model T in October 1903 • In 1913 Ford began mass production in Highland Park, Michigan; Michigan is now home to
Ford headquarters • Ford is the 2nd largest U.S. motor vehicle manufacturer Ford Slogan: “Ford. Drive One.” • Ford Motor Produces:
• Cars • Crossovers & SUVs • Trucks • Hybrids & EVs • Commercial vehicles61
• “Ford Motor Co. in 2010 had the highest U.S. market-share growth of any automaker, and Ford became the top-selling nameplate in the U.S. in 2010”
Future Outlook • Ford was the only company out of the Detroit 3 who survived through the economic downturn
in 2008-2009 without relying on taxpayer bailout (as GM and Chrysler did) • Due to shrinking U.S. market share, the company has announced restructuring plans in an
attempt to lower its costs • The company announced plans to discontinue production of Mercury brand vehicles62
61Ford – New Cars, Trucks, SUVs, Hybrids & Crossovers | Ford Vehicles. Web. 01 Oct. 2011. <http://ford.com>. 62“Ford Motor." Business Summary. Sun. 09 Oct. 2011. <www.netadvantage.standardandpoors.com>
60
Ford Motor
Ad Spending for 2010
Spending Overview63
• As of June 2011 Ford Motor is ranked #13 of the 100 Leading National Advertisers
spending a total of $1.91 billion in U.S. Advertising4
• Ford allocated the majority of its entire budget to the following categories:
• Network TV - $561,555,000
• Internet - $145,369,000
• Magazine - $136,854,000
• The U.S. accounted for 49.1% of the company's worldwide revenue in 2010; 46.1% in
2009; and 42.1% in 2008
• The company reported worldwide advertising costs of
• $3.9 billion in 2010 or 3.02% of net sales
• $3.2 billion in 2009 or 2.75% of net sales
63 "2010 U.S Ad Spending." Marketer Trees 2011. Web. 28 Sept. 2011. <http://adage.com.rlib.pace.edu/datacenter/marketertrees2011/>
61
Ford Motor
Where is the Money Going?
64 "2010 U.S Ad Spending." Marketer Trees 2011. Web. 28 Sept. 2011. <http://adage.com.rlib.pace.edu/datacenter/marketertrees2011/>
Fiscal Year Ending 201064 62
7.15% 0.38% 0.00% 0.04% 0.34%
0.71% 0.00%
0.20%
29.32%
0.74%
4.28% 1.48%
6.48%
1.04% 0.53% 0.15%
7.59%
39.58%
Magazines
B-to-B Magazine
Local Magazine
Sunday Magazines
Spanish-language Magazines
Newspaper
National Newspaper
Spanish-language Newspaper
Outdoor
Network TV
Spanish-language Network TV
Spot TV
Syndication
Cable TV
Network Radio
Local Radio
National Spot Radio
Internet
Unmeasured
Sales (000)
136,854
7,191
21
0
672
6,424
13,545
72
3,887
561,555
14,078
81,972
28,425
124,200
19,937
10,099
2,914
145,369
758,119 *
*A specified breakdown of unmeasured spending can be found in the appendix
63
Ford Motor
Advertising Seasonality
We see the same pattern in
Ford’s advertising expense
that we have seen in the
competitors. Ford
increased spending from
2006 to 2007, but after the
2008 financial crisis Ford
decreased spending
significantly to stay afloat
during trying times in
2009. Once the economy
started to get back on its
feet, Ford increased
advertising expenditures
slowly. It is applicable to
predict that Ford will
continue to increase
advertising budget and
expense in 2012 and again
2013, assuming the
economy continues to
flourish without speed
bumps.65
65Bloomberg L.P. (2011). ARD Advertising Expenses graph for Ford Motor. 2000 to 2011. Retrieved Oct. 6, 2011 from Bloomberg terminal.
Nissan
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
Magazines
B-to-BMagazin
e
LocalMagazin
e
SundayMagazin
es
Spanish-languag
eMagazin
es
Newspaper
NationalNewspa
per
Spanish-languag
eNewspa
per
OutdoorNetwork
TV
Spanish-languag
eNetwork
TV
Spot TVSyndicat
ionCable TV
NetworkRadio
LocalRadio
NationalSpot
RadioInternet
Unmeasured
Nissan 9.4% 0.0% 0.0% 0.0% 0.0% 0.9% 0.7% 0.0% 0.0% 22.7% 2.6% 10.7% 0.0% 11.4% 0.1% 1.1% 0.0% 10.7% 29.5%
Ford 7.1% 0.4% 0.0% 0.0% 0.0% 0.3% 0.7% 0.0% 0.2% 29.3% 0.7% 4.3% 1.5% 6.5% 1.0% 0.5% 0.2% 7.6% 39.6%
Ford vs. Nissan Budget Allocation (by percent)
Nissan Ford
64
Ford Motor
Media Buys Compared to Nissan
66"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 28 Sept. 2011. http://adage.comdatacenter/marketertrees2011/.
Both Ford and Nissan spend high percentages of their media budgets on Network TV, Spot TV, Cable TV medias. Ford focuses more on
digital media such as TV and Internet. Ford does not dedicate as much of the budget to print media as Nissan does; this includes
newspapers, Local, B-to-B, and Spanish-language magazines. Both Ford and Nissan chose not to spend on Sunday Magazines. A significant
amount of each company’s budget falls into unmeasured spending.
Fiscal Year Ending
201037
Ford Motor
How Ford is Gaining Market Share
Ford Supports67
• Ford offers a College Student Purchase Program
• Includes $500 Student Bonus + National Ford Incentives
• Eligible Vehicles ”Any eligible new 2011 or 2012 Ford or Lincoln car, minivan, truck or SUV purchased or leased and delivered during the program period. See your dealer for a complete list of eligible vehicles.”
• Program period: Purchase or lease vehicle between Jan 2011 – Jan 2012
• Eligible Customers: Student enrolled fulltime or part-time at four year school, will graduate between May 2009 – Jan 2012 or enrolled in Graduate School Program
• Warriors In Pink Fight Against Breast Cancer
• 17-years and Counting: Ford has been a National Sponsor of Komen Race for the Cure
• Ford has donated more than $110 million to this cause
• More than 75,000 Ford employees participate in the Race for the Cure
• Ford works to increase breast cancer awareness through their multiple
media impressions
67 Ford Vehicles. Web. 01 Oct. 2011. <http://www.ford.com>.
65
66
Hyundai Motor Company
The Competition
67
Hyundai Motor Company
A Brief Overview
Hyundai Motor company was first established in the year 1967 in South
Korea and has since grown to have a brand value of $5 billion, which it
contributes to its loyal customers. Hyundai’s newest campaign, launched in
2011, carries the tag line “New thinking. New Possibilities.”, which Chairman
and CEO Mong-Koo, Chung says is going to ensure energy and growth for the
company.
68"Financial Information: Annual Report | Hyundai Motors." Hyundai Motor Company | Worldwide Official Website. Web. 01 Oct. 2011.
<http://worldwide.hyundai.com/company-overview/investor-relations/financial-information-annual-report.aspx>.
The global auto market is overcoming the extreme recession from two years ago but continues to
be sluggish as demand in advanced markets…Amidst this situation, in 2010, Hyundai Motor Company
posted its biggest production and sales gains in its history, drawing attention from major media around
the world.68
Like many automotive companies, Hyundai struggled to make sales during the recession.
However, based off below statistics it is evident that Hyundai has recovered nicely from the hit they
took in 2008 and 2009 in wake of the financial crisis. President and CEO Steve S. Yang stated in his
address in the Hyundai annual report:
• Sales Unit (Domestic and Export): 3,461,364
• Sales ($): 36,739,426,000
• Sales Growth: 15.4%
• Net Revenue ($): 98,858,266,000
• Net Revenue Percent Change from 2009: 28%
• Market share of the automotive industry (U.S.): 4.9
68
Hyundai Motor Company
Ad Spending for 2010
Spending Overview
• In 2010 Hyundai Motor Company spent a total of $468,700,000 on media, ranking it 73
out of the top 100 highest spending companies of media in the United States.
• Hyundai allocated the majority of its entire budget to the following categories:
• Network TV- $154,252,000
• Cable TV- $73,422,000
• Magazines- $33,871,000
• As Hyundai has been a sponsor multiple times for large, worldwide sporting events, including
the World Cup in recent years, it is important to note that its’ unmeasured media spending
totaled $152,247,000.69
69"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 29Sept. 2011. http://adage.comdatacenter/marketertrees2011/.
69
Hyundai Motor Company
Where is the Money Going?
70"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 29Sept. 2011. http://adage.comdatacenter/marketertrees2011/.
7% 0% 1%
0%
32.97%
4%
0%
15.69% 0% 1%
0%
5%
32.54%
Magazine
B-to-B Magazine
Newspaper
National Newspaper
Network TV
Spot TV
Sydicated TV
Cable TV Networks
Network Radio
Local Radio
Outdoor
Internet (display only)
Unmeasured Spending
Fiscal Year Ending 201070
Sales (000)
33,871
428
2,638
1,305
1,466
154,252
20,649
395
73,422
200
3,686
23,283
152,247
*A specified breakdown of unmeasured spending can be found in the appendix
*
70
Hyundai Motor Company
Advertising Seasonality
Hyundai is very similar to
Nissan in that it does not
advertise in Q4 (or has
very little advertising
expense in Q4). Like its
competitors, Hyundai too
reduced advertising
expense in 2009 because of
the financial crisis in 2008.
It’s interesting to note,
thought, that Hyundai
spent the most in Q3 (June,
July and August) of 2008,
right before the financial
crisis hit. It’s likely that
much of the expense was
useless because after Q4 in
2008, Hyundai’s target
wasn’t in a position to
purchase a vehicle. Also,
Hyundai spent the least
since 2006 in Q1 of 2009.71
71Bloomberg L.P. (2011). ARD Advertising Expenses graph for Hyundai Motor Corp. 2000 to 2011. Retrieved Oct. 6, 2011 from Bloomberg terminal.
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
Magazines
B-to-BMagazin
e
LocalMagazin
e
SundayMagazin
es
Spanish-languag
eMagazin
es
Newspaper
NationalNewspa
per
Spanish-languag
eNewspa
per
OutdoorNetwor
k TV
Spanish-languag
eNetwor
k TV
Spot TVSyndicat
ionCable
TVNetwork Radio
LocalRadio
NationalSpot
RadioInternet
Unmeasured
Nissan 9.4% 0.0% 0.0% 0.0% 0.0% 0.9% 0.7% 0.0% 0.0% 22.7% 2.6% 10.7% 0.0% 11.4% 0.1% 1.1% 0.0% 10.7% 29.5%
Hyundai 7.2% 0.1% 0.0% 0.0% 0.0% 0.6% 0.3% 0.0% 0.3% 33.0% 0.0% 4.4% 0.1% 15.7% 0.0% 0.8% 0.0% 5.0% 32.5%
Hyundai vs. Nissan Budget Allocation (by percent)
Nissan Hyundai
71
Hyundai Motor Company
Media Buys Compared to Nissan
While Hyundai did not spend as much as Nissan on media, both companies generally allocated similar percentages of their budgets to
the same media, with the most for both companies going to magazine, network TV, cable TV and spot TV. This data tells us that
Hyundai and Nissan have target markets that use similar media.
72"Advertising Age." Advertising Agency & Marketing Industry News - Advertising Age. 20 June 2011. Web. 29Sept. 2011. http://adage.comdatacenter/marketertrees2011/.
Fiscal Year Ending
201043
72
Hyundai Motor Company
How Hyundai is Gaining Market Share
As mentioned earlier, Hyundai has been known to advertise, partner, and
sponsor major sporting events. In 2009, they were a main sponsor of the U.S. Super
Bowl as well as the FIFA Confederations Cup. Hyundai is now a FIFA partner, which
is the highest tier of their three tier partnership program. This benefits Hyundai mainly
by allowing them to participate in a global event and supports the development of
football worldwide. Additionally, the only other company in the in the automotive
industry that is also a partner for FIFA, is Kia, which is owned by Hyundai, which sets
them apart from their true competition.
73FIFA.com." FIFA.com - Fédération Internationale De Football Association (FIFA). Web. 01 Oct. 2011.
<http://www.fifa.com/aboutfifa/organisation/marketing/sponsorship/strategy.html>.
Hyundai’s partnership with FIFA is a major
competitive advantage because the event
draws worldwide attention and holds a
passionate fan base, many of which are
members of the Millennial generation. In the
United States alone, the 2010 World Cup
final ranked as the most watched soccer
game ever with 24 million viewers watching
the live game, tuning in via ABC or
Univision.73
73
Honda Motor Company Ltd.
The Competition
Honda Motor Company Ltd.
A Brief Overview
Honda Motor Company Ltd. Slogan: The Power of Dreams • Honda advertisements do not use their slogan as a result of Mr. Honda’s belief that well built
products will sell themselves.
Future Outlook75 • Production levels were down 9.3% from the previous year as a result of the tsunami in March
2011.
• Full production levels are expected within the next month.
• The Yen is at a record high which makes building cars for export uneconomical.
74 74"Honda Worldwide History." Honda. Web. 01 Oct. 2011. <http://world.honda.com/history/>. 75 Soble, Jonathan. "Japan Carmakers See Recovery in Production." FT.com (2011): n/a. ABI/INFORM Global. Web. 29 Sep. 2011.
History74
• Founded in 1948, Honda is the world’s largest motorcycle producer, as well as,
Japan’s second largest automobile manufacturer.
• As of August 2008 Honda surpassed Chrysler to become the fourth largest
automobile manufacturer in the United States and sixth in the world.
Honda Motor Company Ltd.
Ad Spending for 2010
Total Advertising Budget (2010) : $ 1,060,000,00076
Magazines ………………. $91,213,000
Network TV ……………… $162,337,000
Spot TV ……………… $274,029,000
Cable TV …………….. $74,578,000
75 76"2010 U.S Ad Spending." Marketer Trees 2011. Web. 28 Sept. 2011. <http://adage.com.rlib.pace.edu/datacenter/marketertrees2011/>
8.60% 0.25% 0.26% 0.01% 0.85%
0.77% 0.01%
0.46%
15.30%
0.99%
25.83%
0.03%
7.03%
0.73%
0.40% 0.00%
3.50%
34.96%
Magazines
B-to-B Magazine
Local Magazine
Sunday Magazines
Spanish-language Magazines
Newspaper
National Newspaper
Spanish-language Newspaper
Outdoor
Network TV
Spanish-language Network TV
Spot TV
Syndication
Cable TV
Network Radio
Local Radio
National Spot Radio
Internet
UnmeasuredFiscal Year Ending 201077
Honda Motor Company Ltd.
Where is the Money Going?
76 77"2010 U.S Ad Spending." Marketer Trees 2011. Web. 28 Sept. 2011.
<http://adage.com.rlib.pace.edu/datacenter/marketertrees2011/>
Sales (000)
91,213
2,634
4
2,770
104
9,064
8,207
104
4,864
162,337
10,494
274,029
268
74,578
7,788
4,290
0
37,159
370,856
*A specified breakdown of unmeasured spending can be found in the appendix
*
77 782010 U.S Ad Spending." Marketer Trees 2011. Web. 28 Sept. 2011. <http://adage.com.rlib.pace.edu/datacenter/marketertrees2011/>
Honda Motor Company Ltd.
Media Buys Compared to Nissan
Both Nissan and Honda spend the majority of their budgets in similar media, including
magazines, network tv, spot tv, and cable tv. This indicates that the target demographic
for both competitors are similar in their media exposure.
Fiscal Year Ending
201050
Nissan
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
Magazines
B-to-BMagazin
e
LocalMagazin
e
SundayMagazin
es
Spanish-languag
eMagazin
es
Newspaper
NationalNewspa
per
Spanish-languag
eNewspa
per
OutdoorNetwork
TV
Spanish-languag
eNetwork
TV
Spot TVSyndicat
ionCable
TVNetwork
RadioLocalRadio
NationalSpot
RadioInternet
Unmeasured
Nissan 9.4% 0.0% 0.0% 0.0% 0.0% 0.9% 0.7% 0.0% 0.0% 22.7% 2.6% 10.7% 0.0% 11.4% 0.1% 1.1% 0.0% 10.7% 29.5%
Honda 8.6% 0.2% 0.0% 0.3% 0.0% 0.9% 0.8% 0.0% 0.5% 15.3% 1.0% 25.8% 0.0% 7.0% 0.7% 0.4% 0.0% 3.5% 35.0%
Honda vs. Nissan Budget Allocation (by percent)
Nissan Honda
78
Honda Motor Company Ltd.
How Honda is Gaining Market Share
79"Honda - Sponsorships & Events." Honda. Web. 06 Oct. 2011. <http://corporate.honda.com/america/sponsorships.aspx>.
Honda Battle of the Bands79 • The 2011 Showcase had 1,800 student musicians from eight Historically Black Colleges
and Universities (HBCU) perform at Atlanta’s Georgia Dome.
• The eight major bands were awarded $20,000 each for their music education programs.
• Honda also awarded a $1,000 grant to each of the 45 bands that participated.
• Since the program’s inception Honda has donated nearly $2 million.
Honda Campus All-Star Challenge • Top students from 48 of the nation’s HBCU gather for several days of intense academic
competition.
• The winning team receives a $50,000 grant .
79
Media Plan
80
Nissan Media Objectives
• Introduce 2014 models in third and fourth quarters of business year.
• To promote Nissan through local mediums* to reach the multicultural Millennials in the areas where they reside.
•*Specific to local mediums the target engages in
• To highlight Nissan’s versatile product features,
including affordability, and create product
desirability in order to increase Nissan year end
sales by end of fiscal year 2013.
• To create national awareness and positive word of mouth within the multicultural Millennial population focused on the Red Tent Event prior to August 2013.
Create awareness
Appeal to the
target
Call them to action
Reach them. Not
everyone.
81
Nissan Media Strategy
1. To create national awareness and positive word of mouth within the multicultural Millennial population focused on the Red Tent
Event prior to August 2013.
2. To highlight Nissan’s versatile product features, including affordability, and create product desirability in order to increase Nissan
year end sales by end of fiscal year 2013
Specific media selections will be utilized in order to create national awareness and positive word of mouth in preparation for the Red Tent
Event. These selections will also assist Nissan in increasing their year end sales. The Red Tent Event occurs from July through September.
Advertising will heavy up from April through September in preparation for the sale. Maxim and Cosmopolitan insertions will be placed from
May through July. New York Times will be utilized in July. Family Guy spots will run from April through May. Each selection will promote
the Red Tent Event prior to the sale. All outdoor media in Florida, California, New York and Texas (excluding billboards, which run year-
round) will be strategically placed on display from June through September. The outdoor media selections that will be on display include
train wraps, bus advertisements and train advertisements. Spots on Univision will be broadcasted from June through August. These
selections will increase promotions during the Red Tent Event. Within the advertisements we will highlight the product features as well as
the affordable price that Millennials are looking for.
3. To highlight Nissan’s versatile product features, including affordability, and create product desirability in order to increase Nissan
year end sales by end of fiscal year 2013
Nissan will be introducing the incoming 2014 models throughout the third and fourth quarters of 2013. Media selections will be utilized to
promote awareness of the new product line. Advertising will heavy up from September, the start of the introductions, throughout December.
Insertions in Vogue will be placed during September. Spots will be broadcasted during NBC Sunday Night Football and X Factor from
September through December. More spots will be purchased on Family Guy, Vampire Diaries and E! from September through November.
Spots on TBS will be broadcasted from October through December. Spots on Galavision will be broadcasted through October and
December. Advertising on Hulu and Pandora will be placed during October only, in the midst of the sales of new models.
4. To promote Nissan through local mediums to reach the multicultural Millennials in the areas where they reside.
Advertising in local mediums is necessary in order to reach multicultural Millennials in the areas where they reside. Spot television will be
broadcast throughout the four DMA’s in Florida, California, Texas and New York in local CW and FOX spots. Outdoor advertising on buses,
trains and billboards from June through September will be needed. Outdoor advertising in New York will only occur during June and July
because the selections are more efficient.
82
Media Selections Overview
Print Media
Magazines
GamePro
AutoWeek
Maxim
Glamour
Vogue
Cosmopolitan
ELLE
Parents
Us Weekly
Shape
Men's Fitness
In Touch
Spanish Magazines
People En Espanol
Latina
Ser Padres
National Newspaper
Wall Street Journal
New York Times
Spanish Newspaper
Hoy - Chicago
El Nuevo Herald - Miami
La Opinion - LA
El Diario - NYC
Outdoor
(Florida, Texas, New York & California)
Billboard
Bus Advertisements (Exterior)
Train Advertisements
Train Wrap
Internet
Cars.com
Download.com
Facebook.com
Google.com
Yahoo.com
Hulu.com
Pandora.com
YouTube.com
Television
Network TV
NBC: Sunday Night Football
NBC: Primetime (General)
FOX: Family Guy
FOX: X Factor
FOX: Primetime (General)
CW: Vampire Diaries
CW: Primetime (General)
Spanish Language TV
Univision
Telemundo
Galavision
Cable TV
Adult Swim
BET
E!
G4
MTV
Nick at Nite
TBS
TV One
VH1
KXLA
WMBC-TV SinoVision
Spot TV (FL, TX, NY and CA)
Local CW and FOX
83
Budget Overview &
Recommended Media Selection Rationale In order to effectively reach the multicultural Millennial target demographic, we have decided to create a media plan that encompasses a variety
of different media strategies to ensure that the message will be received. Based on extensive research to discover where multicultural Millennials
turn most of their attention, our plan includes buys in magazines, Spanish magazines, national newspapers, Spanish newspapers, outdoor media,
network TV, Spanish language network TV, spot TV, cable TV, and the Internet. A significant percent of the budget is being allocated towards
internet, network TV, cable TV, and magazines. Research shows that these areas are where Millennials are best reached, for example,
multicultural Millennials are all 86 times more likely to spend time on the internet then other demographics. Also, all three are 107 times more
likely to watch television as both a source of relaxation and information. Magazines, surprisingly, had a Simmons index of 643 which means our
target is 543 times more likely than the rest of the population to read magazines. Since TV, magazines, and internet are the most used media by
our target we allocated the largest percent of the budget to these areas. This comprehensive approach allows for Hispanics, African American and
Chinese American Millennials to be exposed to Nissan advertisements throughout the course of their normal daily life through media that they use
frequently. Within each media type we strategically chose publications, shows, day parts and websites to correspond with the usage of Hispanic,
African American, and Chinese Millennials. The media selections recommended are all targeted to best reach the multicultural Millennials to
avoid significant advertising waste. Below is a break down of our budget by media type:
11.6% 0.7%
2.0%
1.0%
2.1%
21.0%
3.0%
12.0%
17.0%
22.0% 7.0%
0.7%
Magazine
Spanish Magazine
National newspaper
Spanish newspaper
Outdoor
Network TV
Spanish language network TV
Spot TV
Cable TV
Internet
Non-traditional buys
Unexpected costs
Media Type Total Cost
Magazine $11,624,627
Spanish Magazine 700,374
National newspaper 2,025,222
Spanish newspaper 969,696
Outdoor 2,070,196
Network TV 20,993,520
Spanish language network TV 2,976,000
Spot TV 12,000,000
Cable TV 16,988,500
Internet 21,998,569
Non-traditional buys 7,000,000
Unexpected costs 653,296
$100,000,000
84
Budget Overview Specific to Demographic
The budget has been allocated between three demographic targets. Most of the media selections will reach each target together. However, this
chart shows the media selections that provide reach to a specific target only.
AutoWeek, BET, Adult Swim, E!, G4, Nick at Nite and TV One will reach African American Millennials for $9,236,357. KXLA, WMBC-TV
SinoVision, TBS, Download and Yahoo! will reach Chinese American Millennials for $6,762,637. Maxim, Parents, People en Espanol, Latina, Ser
Padres, Hoy, El Nuevo Herald, La Opinion, El Diario, Univision, Telefundo, Galavision, Cars.com, CW: Vampire Diaries and Primetime will
reach Hispanic American Millennials for $10,405,398. Therefore 9.23%, 6.76% and 10.41% of the overall $100 million budget has been allocated
specifically for African American, Chinese American and Hispanic American Millennials, respectively.
African American Millennials are 685 times more likely to watch BET than the average individual. Chinese American Millennials are 166 times
more likely to visit Download.com than the average. Hispanic American Millennials are 311 times more likely to watch CW’s Vampire Diaries.
Specific indices for select media are outlined below:
African American Cost Index
Autoweek $397,677 296
BET $1,980,000 785
Adult Swim $1,221,600 421
E! $1,009,800 263
G4 $1,832,400 282
Nick at Nite $1,334,880 332
TV One $1,460,000 603
Total $9,236,357
Hispanic Cost Index
Maxim $1,477,680 157
Parents $725,920 195
People en Espanol $70,350 HPA*
Latina $528,804 HPA
Ser Padres $101,220 HPA
Hoy $131,040 HPA
El Nuevo Herald $279,552 HPA
La Opinion $279,552 HPA
El Diario $279,552 HPA
Univision $996,000 HPA
Telemundo $1,320,000 HPA
Galavision $660,000 HPA
Cars $42,481 130
CW: Vampire Diaries $1,296,384 411
CW: Primetime $2,216,863
Total $10,405,398
Chinese Cost Index
KXLA $1,152,000
WMBC-TV SinoVision $321,200
TBS $2,747,520 172
Download $1,929 266
Yahoo! $2,539,988 204
Total $6,762,637
*Denotes Hispanic Fact Pack
85
Media Selections & Rationale
Print Media
Magazine Selections & Rationale
Magazine selections for our target market of African American, Hispanic and Chinese Millennials, was based on Simmons Choice 3 data. The
data illustrated that multicultural Millennials purchase and read a wide variety of magazines. These also range in genre including health, fashion,
automotive, gaming, life advice and celebrity news magazines. After extensive consideration, we have chosen the following selection of specific
magazines to run Nissan advertisements in:
GamePro, AutoWeek, Maxim, Glamour, Vogue, Cosmopolitan, ELLE, Parents, US Weekly, Shape, Men’s Fitness, In Touch
80Simmon Choices 3
The magazine selection is based on data that indicates that the multicultural Millennial is at least 30 times more likely than the average individual
to read the specific publication (denoted by an index of 130 or higher). This will ensure strong readership of each selection. A 12-month purchase
of advertising space was made for the following titles: GamePro, AutoWeek, Glamour, Men’s Fitness and InTouch. Nissan will run an ad in each
monthly issue of these selections. We will run advertisements twice a year in the power issues (September & March) of Vogue magazine. An
average of 6 ads for the year will run in the remaining selections, rotating months in magazines of similar genres. This includes a full page, 4
color make up for all print ads.
Magazine Total Cost Coverage CPM
GamePro $120,000 425,000 $23.53
AutoWeek 397,677 275,000 123.51
Maxim 1,477,680 2,530,440 97.33
Glamour 2,340,948 2,304,146 84.66
Vogue 294,112 1,248,121 117.82
Cosmo 1,464,600 3,032,000 80.51
ELLE 745,590 1,100,000 112.97
Parents 725,920 2,215,645 81.91
US Weekly 1,055,022 13,100,000 13.42
Shape 1,092,138 1,656,678 109.87
Men's Fitness 870,480 600,000 120.9
InTouch 1,040,460 5,600,000 15.48
Spanish Magazine Total Cost Coverage CPM
People en Espanol $70,350 540,000 $130.28
Latina 528,804 500,000 88.13
Ser Padres 101,220 850,000 119.08
Spanish language magazines were also chosen for ad space, considering
that Hispanics are the largest of all three demographic segments. Hispanic
Millennials have a strong readership of People En Espanol, Latina and Ser
Padres along with the other English language magazines.80
Advertisement size is displayed
here. All print ads in magazines
will be bleed ads in full color.
86
Print Media
Detailed Newspaper Selections & Rationale Secondary research revealed that our target market does read a small selection of newspapers, but does not utilize it as a main source of
information or advertisement seeking. The Wall Street Journal and New York Times are the two newspaper mediums that received the highest
indices when asked what the consumer read throughout the whole week. Therefore, 12 spaces will be bought throughout the year at the beginning
of every month in the national version of the Wall Street Journal, along with 26 spaces throughout the year in the start and end of every month for
the New York Times. Here we will heavy up advertisements in June & July in preparation for Nissan’s Red Tent Event. Each advertisement will be
black and white and 1/3 of a page in size.
How each demographic segment reads and purchases or subscribes to the above newspapers was also analyzed. Chinese Millennials choose to
read the paper at their office, read someone else’s copy or subscribe at home. All three of these reading habits can be further analyzed through the
assumption of a high pass along rate. The Hispanic and African American segments tend to read someone else’s copy or purchase the newspaper
at a newsstand for both daily and Sunday issues.
Spanish-language newspapers were also selected given the significant focus we would like to place on the Hispanic segment. Hoy, El Nuevo
Herald, La Opinion and El Diario are the newspapers most fit for selection. Advertisements will appear once a week for 52 weeks in each chosen
Spanish-language newspaper. The advertisement size will be 2/3 of a page per unit.81
81Simmon Choices 3
National Newspaper Total Cost
Wall Street Journal $929,400
New York Times 1,950,822
Spanish Newspaper Total Cost
Hoy (Chicago) $131,040
El Nuevo Herald (Miami) 279,552
La Opinion (LA) 279,552
El Diario (NYC) 279,552
87
Magazine Rationale
Motor and Trend CPM of $196.72 is less efficient than CPM of AutoWeek
Hot Rod Weaker readership than AutoWeek
Four Wheeler Weaker readership than AutoWeek
GQ Weak readership; Low index within all demographics (under 110); CPM of $159 indicates inefficiency
Allure Already advertising in two Conde Nast publications as well as similar genres
Fitness Index below 110 in all three demographics indicates minimal interest and engagement from target
xBox Too low of an index for the Asian demographic in order for the media buy to be efficient
American Baby CPM of $100.79 is less efficient than Parents
Sports Illustrated Index below 110 in all three demographics indicates minimal interest and engagement from target
Muscle & Fitness Target is less likely to read this when compared to Men's Fitness in all three demographics
Business Week Inefficient CPM of $377.65
Oprah Index below 110 in all three demographics indicates minimal interest and engagement from target
Rolling Stone Inefficient CPM of $125.77
Brides Inefficient CPM of $245.90 88
Print Media
Selections Considered But Not Recommended Magazines
When researching magazines, multiple genres and target preferences must be considered. After running Simmons Choice 3, data the following
magazines were considered but not recommended based on either a low index/readership, inefficient CPM, or costly rates.
Newspaper
Daily newspapers considered, but not recommend are USA Today, Washington Post and local newspapers. The demographic shows adversity
towards local news via print media, thus we will not be advertising here. All three lacked a strong readership with indices below 110.82
82Simmon
Choices 3
89
Outdoor
After reviewing African American, Chinese and Hispanic
Millennial driving habits, it is recommended that advertising
dollars be spent on outdoor instead of radio spots. The
average indices for time spent in a car between 6 AM and
11:59 PM are 73, 90 and 118, for African American, Chinese
and Hispanics, respectively. However, indices for using
public transportation in the last 30 days are 244, 151 and 278,
respectively. This indicates that the target would be better
reached through subway and bus advertisements when
compared to radio, making the use of advertising dollars
more efficient. A combination of subway posters, subway car
wraps, billboards and bus advertisements will be used.
Because the target is travelling via mass public transportation
more than they are in cars, we decided to allocate a larger
amount of money to advertising in train stations and buses
with a small amount allocated to billboards. A detailed
breakdown is shown here.
To best target the demographic, all outdoor advertisements will be run in
California, New York, Texas, and Florida since these areas have the
highest percent of the total target demographic living there.*
Outdoor - Florida Total Cost Frequency
Billboards $145,200 7 panels
Buses 171,600 11 buses
Trains 147,000 Jumbo King posters in 300 stations
Train Wraps 50,000 1 unit/52 weeks
Outdoor – Texas Total Cost Frequency
Billboards $148,800 6 panels
Buses 172,800 9 buses
Trains 147,000 Jumbo King posters in 300 stations
Train Wraps 50,000 1 unit/52 weeks
Outdoor – New York Total Cost Frequency
Billboards $141,821 7 panels
Buses 172,800 8 buses
Trains 147,000 Jumbo King posters in 300 stations
Train Wraps 50,000 1 unit/52 weeks
Outdoor – California Total Cost Frequency
Billboards $149,175 11 panels
Buses 180,000 10 buses
Trains 147,000 Jumbo King posters in 300 stations
Train Wraps 50,000 1 unit/52 weeks
*For complete population breakdown please review Spot Market List Rationale.
90
Detailed Broadcast Estimates
Network TV Selections & Rationale The following selections are recommended for Nissan’s advertising within network TV. They will ensure less media waste
since advertising dollars spent on these networks and shows will reach the target audience in the most efficient manner.
These selections are highly targeted, as network TV costs are significantly higher than other media channels. The broadcast
selections were based on viewership by multicultural Millennials with Simmons index numbers of 196, 259 and 123 for
Chinese, African American and Hispanics, respectively. This indicates that the target demographic is more likely to watch the
CW, Fox and NBC rather than other networks.83
Network Program Cost Spot Time
CW Primetime $2,216,863 :30
CW Vampire Diaries $1,296,384 :30
FOX Family Guy $4,768,416 :30
FOX Primetime $2,189,043 :30
FOX X Factor $4,168,697 :30
NBC Primetime $2,255,180 :30
NBC Sunday Night Football $4,098,936 :30
Galavision Non-specific $660,000 :30
Telemundo Non-specific $1,320,000 :30
Univision Non-specific $996,000 :30
By choosing these broadcast selections, a total of
$21,939,519 will be spent from the overall $100
million budget.
83"Media Works." Advertising Agency & Marketing Industry News - Advertising Age. Web. 25 Nov. 2011.
<http://adage.com/article/mediaworks/chart-american-idol-nfl-duke-priciest-tv-spot/230547/>.
91
Detailed Broadcast Estimates
Network TV Selections Considered But Not Recommended
Because of the high costs of Network TV, we
wanted to eliminate as much media waste as
possible by focusing solely on the target and what
they are specifically watching. The chart to the
right shows a list of selections that were
considered but not recommended for Nissan’s
media plan. The audiences for the recommended
broadcast selections also watch these programs,
however, the selected broadcast spots are more
cost efficient.
Network Program Cost Spot Time
ABC Dancing with the Stars $233,482 :30
ABC Dancing with the Stars Results $216,703 :30
ABC The Bachelor $177,150 :30
ABC Modern Family $249,288 :30
ABC Saturday College Football $85,200 :30
CBS The Amazing Race $124,091 :30
CBS Survivor $144,478 :30
CBS How I Met Your Mother $168,829 :30
CBS Two and a Half Men $252,418 :30
NBC The Office $178,840 :30
NBC Glee $267,141 :30
NBC American Idol $502,900 :30
CW Gossip Girl $50,304 :30
CW America's Next Top Model $61,315 :30
TeleFutura Non-specific $10,000 :30
By not choosing these broadcast selections, the
plan’s budget has saved $2,722,139. These
savings reflect the cost of one :30 spot buy for
each selection.84
84"Media Works." Advertising Agency & Marketing Industry News - Advertising Age. Web. 25 Nov. 2011. <http://adage.com/article/mediaworks/chart-american-
idol-nfl-duke-priciest-tv-spot/230547/>.
92
Detailed Broadcast Estimates
Cable Selections & Rationale Results from secondary research showed that multicultural Millennials were most likely to watch these selected cable
channels. Each selection was highly likely to be viewed by all three demographic targets for Nissan.
For example, African American Millennials are 391 times more likely than the average to watch MTV. Chinese American
Millennials are 165 times more likely than the average to watch MTV. Hispanic American Millennials are 147 times more
likely than the average to watch MTV.85
KXLA and WMBC-TV SinoVision are selected cable channels that are geared toward the Chinese American Millennial.
These channels are the two most prominent Mandarin-speaking channels offered in the United States. By advertising on these
channels we are specifically targeting that demographic.
Cable Channel Frequency Cost
Adult Swim 240 $1,221,600
BET 337 $1,980,000
E! 180 $1,009,800
G4 360 $1,832,400
MTV 300 $1,454,400
Nick at Nite 270 $1,334,880
TBS 180 $2,747,520
TV One 730 $1,460,000
VH1 730 $2,474,700
KXLA 365 $1,168,000
WMBC-TV SinoVision 730 $321,200
85Simmon Choices 3
93
Detailed Broadcast Estimates Cable Channel Selections Considered But Not Recommended
The following chart reflects all the cable channels we considered
but are not recommending to Nissan. Many of these channels do
not reach all three demographics, which could quickly lead to
media waste and cost inefficiency. Thus, instead of advertising in
a vast range of channels sporadically with no strategy, we
recommend that Nissan advertise in those channels that the target
is often engaged with. Further, we found that the target has a
stronger relationship with the recommended channels rather than
the ones we have decided to reject advertising on.
No premium selections were considered because these channels
do not accept advertising.86
Cable & Premium Channels
A&E Lifetime
ABC Family Lifetime Movie Network
Bravo MSNBC
Cartoon Network MTV2
CNBC Nick
Comedy Central Oxygen
Court TV Soapnet
Discover Home Spike
Discovery Health Style
Discovery Times The Movie Channel
Disney Channel TLC
ESPN 2 TNT
ESPN Classic Toon Disney
ESPN News USA
Food Network WE TV
Fuse WGN
FX
86Simmon Choices 3
Spot Market List &
Media Dollar Allocation Rationale
94 87 2010 Census. Web. 23 Nov. 2011. <http://2010.census.gov/2010census/>.
When selecting spot market media, the most effective method to gain reach is to buy commercial time in the DMA’s, designated market areas, of
the four states with higher multicultural populations, as well as, the largest number of Nissan dealerships in the country. The selected states
include New York, California, Florida and Texas.
According to the 2010 U.S. Census, 61.7% of the Hispanic demographic is found within these four states. California alone accounts for 27.8% of
the Hispanic population. The African American demographic is also found mostly in New York, California, Florida, and Texas with 33.4% of
their total U.S. population living in these four states.87 The Census notes that this population is found mostly in the south and in urban areas.
Advertising should focus on major cities over rural areas. The Chinese population is found mostly on the coast in cities in California and New
York which is also covered in our region selections.
Along with high population percentages for our target demographics, the areas with the most Nissan dealerships are found in New York,
California, Florida, and Texas. New York has 59 dealerships, California 104, Florida 57, and Texas 60. We felt that since advertising is going to
be focused on those areas because our target lives there, it is important to know that the distribution channel for Nissan will be readily available
for them.
Hispanic African American Chinese
95
Internet
Website Selections & Rationale The internet site selections were chosen as a final list that would
provide the widest reach across all three targets at the most efficient
price. The costs for Google and Facebook are based on cost-per-click
charges. The other sites charge for advertising based on the placement
and size of each advertisement.
According to Simmons data the target is more likely to visit these sites
due to the genre they fall under. For example, the multicultural
Millennial is most likely to visit a website that allows him/her to
download music, movies, games, etc. such as Download.com
Website Selection Cost
Cars.com $42,481
Download.com $1,929
Facebook.com $4,000,000
Google.com $4,000,000
Yahoo.com $2,539,988
Youtube.com $8,714,986
Hulu.com $1,349,593
Pandora.com $1,349,593
96
Internet
Websites Considered But Not Recommended
The chart represents the list of internet sites that were initially
considered, but have not been included into the Nissan media plan.
These selections were not chosen in order to focus continuously on a
smaller list of internet sites that are being visited more often by the
targets. In order to get effective reach, we decided that frequent
advertising on select websites would be more beneficial than a few
advertisements on websites that the target may or may not be visiting.
Further, with a more focused list of websites we are able to reach the
target specifically to minimize waste. We found that advertising on the
following sites would be inefficient:
Website Selections
Amazon Twitter
AOL Huffington Post
Ebay Business Insider
Fandango Engadget
GameSpot Perez Hilton
Monster Mashable
CareerBuilder TechCrunch
Mapquest Flickr
Moviefone NYT.com
Movies WSJ.com
MSN NFL.com
NBA Enterprise
Ticketmaster Hertz
Weather Budget
97
Non-Traditional Buys
What are you free to be?
To get our multicultural Millennials involved with the Nissan brand, three celebrity endorsements were selected to attract
each segment. These spokespeople will star in short videos that will air on network television as well as the Nissan YouTube
Channel. They will finish the campaign tagline, Free to be_____, celebrating cultural heritage and being unique. The videos
will air in the months of September and October in 2013 for Hispanic Heritage Month and during January and February in
2014 for Chinese New Year and Black History Month respectively. The videos will have a call to action that instructs
multicultural Millennials to log on to YouTube and upload their own videos filling in the tagline. Throughout the specific
months we will use uploaded videos as actual commercials, giving Millennials the opportunity to star in a nation-wide
campaign.
Total Budget: $7 million
America Ferrera Will Smith Lucy Liu
Free to be you. Free to be
98
Media Considered But Not Recommended
99
Media Considered But Not Recommended
Radio In order to decide whether or not Nissan should allocate any of the budget to radio advertising, we researched the radio listening habits of the
Chinese, African American and Hispanic Millennial.
We found that the multicultural Millennial is, on average, 24 times less likely to listen to the radio on a daily basis when compared to the general
consumer. Looking in to this further, we derived that African Americans are 26 times less likely, Chinese Americans are 27 times less likely and
Hispanic Americans are 19 times less likely to listen to the radio on a daily basis. After analyzing the radio listening habits of the target
demographic, we looked at whether the target consumer listens to the radio for a quick news update or to keep him/her informed occasionally.
On average the multicultural Millennial is approximately 27 times less likely to listen to the radio for a quick news update and 11 times less
likely to rely on the radio for information than the common individual.
Before we ruled out radio advertising completely, we looked at the driving habits of the consumer to ensure they correspond with the radio
listening habits, as many consumers listen to the radio while they are in the car. We found that the multicultural Millennial is more likely to
utilize public transportation rather than use a car as a primary source of transportation. The African American Millennial is 233% more likely to
use public transportation than use a car. The Hispanic Millennial is nearly 30% more likely to use public transportation and the Chinese
Millennial is about 209% more likely to utilize public transportation rather than a car.
As a result of the findings, we decided advertising on the radio would result in more media waste than sales. Thus, we recommend that Nissan
allocate money in outdoor* advertising rather than radio to be more efficient.
*For a detailed breakdown of outdoor advertising, please refer to the outdoor selections section of this report
African American (18-29)
Chinese (18-29)
Hispanic (18-29)
I rely on the radio for information 81 98 87
I listen to the radio for a quick news update 71 78 69
I listen to the radio everyday 74 73 83
I’ve used public transportation in the last 30 days 244 151 278
100
Media Considered But Not Recommended
Local Coverage
Local coverage was found to be unsuccessful in reaching any of the multicultural Millennials.
African American, Chinese American and Hispanic American Millennials are not likely to
value local newspapers and local coverage. Chinese American Millennials are 24 times less
likely to value local coverage. African American Millennials are 36 times less likely to value
local coverage. Hispanic American Millennials are 33 times less likely to value local coverage.
Since the demographic does not hold value in local news or engage in local news readership,
we have decided that it would be wasteful to place advertising in local newspapers and
magazines. The target is not watching local news, however they are watching local network
television channels. With this information, we recommend allocating funds from the budget to
the spot television selections where the targets are actively watching. The national coverage in
newspapers, magazines and network spots will provide a wider coverage to the target audiences
with more efficiency than the local costs.
Chinese (18-29)
African American (18-29)
Hispanic (18-29)
I value local newspapers/local coverage 76 64 67
101
Media Considered But Not Recommended
B2B Magazines
Business-to-business buys would provide Nissan with business consumers and potentially strengthen a
business-to-business relationship. Multicultural Millennials cannot be reached as a business but as a specific
consumer. Advertising in business-to-business magazines would be highly ineffective and wasteful in budget
spending.
The budget does not allow for spending in this medium as the targets are consumers of the general
population. The younger audience is more likely to be students and not reading business-to-business
magazines over consumer magazines. Simmons research provides strongly supportive data that multicultural
Millennials are reading consumer magazines. There was no significant data to support any business-to-
business media buys for multicultural Millennials.
102
Seasonality of Media Buys
103
Product Seasonality
While there are certain media in this plan that we have chosen to advertise in throughout the full fiscal year of April 2013 to
March 2014, we have also proposed additional strategic buys during specific seasons. Most notably there are heavy media
buys the two months prior, and the three months during Nissan’s Red Tent Event, July, August, and September. Because the
majority of the Millennial generation is trying to establish themselves financially, as opposed to an already established older
demographic, we felt it important to raise awareness for this event to ensure the target knows when and where the discounts
will be happening closest to them, in an effort to increase sales for Nissan. For instance, the only consecutive time we will
be advertising in Cosmopolitan will be May, June, and July and we will also be buying one consecutive ad per week in the
New York Times starting the last week in June through the last week in July. Similarly, the portion of the outdoor budget
allocated to billboards, which will be running in the four areas where both dealerships and the target demographic are heavily
populated, will be running June, July, August, and September, with the exception of New York which will be just June and
July.
While the Red Tent Event promotes sales, it also serves a second purpose by helping dealerships clear out inventory to make
way for the new models. Thus, there are also heavy media buys starting towards the tail end of the Red Tent Event in
September and into October promoting the new models that will be coming out in time for the new year. For instance, on
network TV we bought consecutive weekly commercial time for both Family Guy and the XFactor throughout the months of
September to October, and September to December respectively. Additionally, on cable TV we allocated all 180 commercial
spots to TBS from the months October through December, all in an effort to make sure that Multicultural Millennials are up
to date with what Nissan has to offer. Our internet initiatives will further support the new Nissan models by running
advertisements on Hulu and Pandora throughout the month of October.
2013-2014 Media Schedule Flow Chart
Month April (2013) May June July Aug September October November December January (2014) February March
31 7 14 21 28 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 1 8 15 22 29 6 13 20 27 3 10 17 24 1 8 15 22 29 5 12 19 26 2 9 16 23 2 9 16 23 30 Insertions Cost
Magazines
GamePro 12 $120,000
AutoWeek 12 $397,677
Maxim 6 $1,477,680
Glamour 12 $2,340,948
Vogue 2 $294,112
Cosmopolitan 6 $1,464,600
ELLE 6 $745,590
Parents 4 $725,920
Us Weekly 6 $1,055,022
Shape 6 $1,092,138
Men's Fitness 12 $870,480
In Touch 12 $1,040,460
Spanish Magazine
People En Espanol 11 $70,350
Latina 12 $528,804
Ser Padres 8 $101,220
National Newspaper
Wall Street Journal 12 $929,400
New York Times 26 $1,095,822
Spanish Newspaper
Hoy - Chicago 52 $131,040
El Nuevo Herald - Miami 52 $279,552
La Opinion - LA 52 $279,552
El Diario - NYC 52 $279,552
Outdoor
Florida
Billboard 7 $145,200
Bus 11 $171,600
Train 300 $147,000
Train Wrap 1 $50,000
Texas
Billboard 6 $148,800
Bus 9 $172,800
Train 300 $147,000
Train Wrap 1 $50,000
New York
Billboard 7 $141,821
Bus 8 $172,800
Train 300 $147,000
Train Wrap 1 $50,000
California
Billboard 11 $149,175
Bus 10 $180,000
Train 300 $147,000
Train Wrap 1 $50,000
Network Television
NBC: Sunday Night Football 8 $4,098,936
NBC: Primetime 20 $2,255,180
FOX: Family Guy 18 $4,768,416
FOX: X Factor 13 $4,168,697
FOX: Primetime 12 $2,189,043
CW: Vampire Diaries 22 $1,296,384
CW: Primetime 49 $2,216,863
Spanish Language TV
Univision 83 $996,000
Telemundo 132 $1,320,000
Galavision 220 $660,000
Cable TV
Adult Swim 240 $1,221,600
BET 337 $1,980,000
E! 180 $1,009,800
G4 360 $1,832,400
MTV 300 $1,454,400
Nick at Nite 270 $1,334,880
TBS 180 $2,747,520
TV One 730 $1,460,000
VH1 730 $2,474,700
KXLA 365 $1,152,000
WMBC-TV SinoVision 730 $321,200
Internet
Cars.com $42,481
Download.com $1,929
Facebook.com $4,000,000
Google.com $4,000,000
Yahoo.com $2,539,988
Youtube.com $8,714,986
Hulu.com $1,349,593
Pandora.com $1,349,593
Non-Traditional
NBC: Primetime 17 $1,916,903
FOX: Primetime 10 $1,824,204
CW: Primetime 44 $1,990,653
105
Flowchart
Magazines
Magazine Advertising Seasonality
April (2013) May June July Aug September October November December
January
(2014) February March Cost
31 7 14 21 28 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 1 8 15 22 29 6 13 20 27 3 10 17 24 1 8 15 22 29 5 12 19 26 2 9 16 23 2 9 16 23 30 # (000)
Magazines
GamePro 12 $120
AutoWeek 12 $397
Maxim 6 $1,477
Glamour 12 $2,340
Vogue 2 $294
Cosmopolitan 6 $1,464
ELLE 6 $745
Parents 4 $725
Us Weekly 6 $1,055
Shape 6 $1,092
Men's Fitness 12 $870
In Touch 12 $1,040
Spanish
Magazine
People En
Espanol 11 $70
Latina 12 $528
Ser Padres 8 $101
106
Flowchart
Newspaper
National and Spanish Newspaper Seasonality
April (2013) May June July Aug September October November December
January
(2014) February March Cost
31 7 14 21 28 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 1 8 15 22 29 6 13 20 27 3 10 17 24 1 8 15 22 29 5 12 19 26 2 9 16 23 2 9 16 23 30 # (000)
National
Newspaper
WSJ 12 $929
NYT 26 $1,095
Spanish
Newspaper
Hoy - Chicago 52 $131
El Nuevo
Herald 52 $279
La Opinion 52 $279
El Diario 52 $279
107
Flowchart
Outdoor
Outdoor Advertising Seasonality
April (2013) May June July Aug September October November December
January
(2014) February March Cost
3
1 7 14 21 28 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 1 8 15 22 29 6 13 20 27 3 10 17 24 1 8 15 22 29 5 12 19 26 2 9 16 23 2 9 16 23 30 #
(000
)
Outdoor
Florida
Billboard 7 $145
Bus 11 $171
Train 300 $147
Train
Wrap 1 $50
Texas
Billboard 6 $148
Bus 9 $172
Train 300 $147
Train
Wrap 1 $50
New York
Billboard 7 $141
Bus 8 $172
Train 300 $147
Train
Wrap 1 $50
California
Billboard 11 $149
Bus 10 $180
Train 300 $147
Train
Wrap 1 $50
108
Flowchart
Broadcast
Network, Spanish and Cable Television Advertising Seasonality
April (2013) May June July Aug September October November December
January
(2014) February March Cost
31 7 14 21 28 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 1 8 15 22 29 6 13 20 27 3 10 17 24 1 8 15 22 29 5 12 19 26 2 9 16 23 2 9 16 23 30 # (000)
Network
Television
Sunday Night
Football 8 $4,098
NBC Primetime 20 $2,255
Family Guy 18 $4,768
X Factor 13 $4,168
FOX Primetime 12 $2,189
Vampire Diaries 22 $1,296
CW Primetime 49 $2,216
Spanish
Television
Univision 83 $996
Telemundo 132 $1,320
Galavision 220 $660
Cable TV
Adult Swim 240 $1,221
BET 337 $1,980
E! 180 $1,009
G4 360 $1,832
MTV 300 $1,454
Nick at Nite 270 $1,334
TBS 180 $2,747
TV One 730 $1,460
VH1 730 $2,474
KXLA 365 $1,152
SinoVision 730 $1,152
109
Flowchart
Internet & Non-traditional
Internet and Non-Traditional Advertising Seasonality
April (2013) May June July Aug September October November December
January
(2014) February March Cost
31 7 14 21 28 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 1 8 15 22 29 6 13 20 27 3 10 17 24 1 8 15 22 29 5 12 19 26 2 9 16 23 2 9 16 23 30 # (000)
Internet
Cars $42
Download $2
Facebook $4,000
Google $4,000
Yahoo! $2,539
YouTube $8,714
Hulu $1,349
Pandora $1,349
Non-
Traditional
NBC:
Primetime 17 $1,916
FOX:
Primetime 10 $1,824
CW:
Primetime 44 $1,990
110
Decision Dates & Cancellation Flexibility
111
Monthly Magazine Decision Dates
Magazine
Selection88
April
(2013)
May
(2013)
June
(2013)
July
(2013)
August
(2013)
September
(2013)
October
(2013)
November
(2013)
December
(2013)
January
(2014)
February
(2014)
March
(2014)
GamePro 1/20/13 1/20/13 4/20/13 4/20/13 4/20/13 8/10/13 8/10/13 8/10/13 9/23/13 9/23/13 9/23/13 1/20/14
Maxim - 3/1/13 3/29/13 5/3/13 - - 8/2/13 - 9/27/13 - 12/1/13 -
Glamour 1/20/13 2/17/13 3/20/13 4/20/13 5/18/13 6/20/13 7/20/13 8/20/13 9/20/13 10/20/13 11/18/13 12/20/13
Vogue - - - - - 6/29/13 - - - - - 12/30/13
Cosmopolitan - 2/21/13 3/20/13 4/17/13 - - 7/24/13 - 9/18/13 - 11/22/13 -
ELLE 1/31/13 - - - 5/30/13 6/27/13 - 8/29/13 - 10/25/13 - 12/27/13
Parents 1/20/13 - - 4/20/13 - - 7/20/13 - - 10/20/13 - -
Shape - 2/29/13 - 5/2/13 - 6/27/13 - 8/29/13 - 11/2/13 - 1/4/14
Men's Fitness 1/5/13 2/2/13 3/16/13 3/16/13 5/18/13 6/22/13 7/20/13 8/24/13 9/21/13 10/19/13 11/3/13 12/8/13
• All monthly magazine selections have deadlines provided by the publication
• All monthly magazine selections will be long-term buys
88Please see respective media kits provided in appendix
112
Other Magazine Decision Dates
Magazine
Selection89
April
(2013)
May
(2013)
June
(2013)
July
(2013)
August
(2013)
September
(2013)
October
(2013)
November
(2013)
December
(2013)
January
(2014)
February
(2014)
March
(2014)
AutoWeek 3/7/13
3/21/13
4/4/13
4/18/13
5/2/13
5/16/13
5/30/13
6/13/13
6/27/13
7/11/13
7/25/13
8/8/13
8/22/13
9/5/13
9/19/13
10/3/13
10/17/13
10/31/13
11/14/13
11/28/13
12/13/2013
12/27/13
1/10/14
1/24/14
2/7/14
2/21/14
US Weekly
3/7/13
3/14/13
3/21/13
3/28/13
-
5/9/13
5/16/13
5/23/13
5/27/13
-
7/4/13
7/11/13
7/18/13
7/25/13
8/1/13
-
9/2/13
9/12/13
9/19/13
9/26/13
-
11/7/13
11/14/13
11/21/13
11/28/13
-
1/10/14
1/14/14
1/24/14
1/31/14
-
In Touch
2/24/13
3/2/13
3/9/13
3/16/13
3/23/13
3/30/13
4/6/13
4/13/13
4/27/13
5/4/13
5/11/13
5/18/13
5/25/13
6/1/13
6/8/13
6/15/13
6/22/13
6/29/13
7/6/13
7/13/13
7/20/13
7/27/13
8/3/13
8/10/13
8/17/13
8/24/13
8/31/13
9/7/13
9/14/13
9/21/13
9/28/13
10/5/13
10/12/13
10/19/13
10/26/13
11/2/13
11/9/13
11/16/13
11/23/13
11/25/13
12/2/13
12/9/13
12/16/13
12/23/13
12/30/13
1/6/14
1/13/14
1/20/14
1/27/14
2/3/14
2/10/14
2/17/14
People en
Espanol 1/30/13 2/27/13 3/26/13 4/30/13 5/28/13 7/2/13 7/30/13 9/3/13 10/8/13 10/8/13 11/21/13 1/2/14
Latina 1/23/13 2/20/13 3/26/13 3/26/13 5/21/13 7/2/13 7/23/13 8/27/13 9/24/13 9/24/13 11/21/13 12/26/13
Ser Padres 1/27/13 2/24/13 3/30/13 3/30/13 6/1/13 6/1/13 - 8/31/13 - 9/28/13 - -
• All other magazine selections have multiple deadlines provided by the publication specific to each issue
• All other magazine selections will be long-term buys
89Please see respective media kits provided in appendix
113
Newspaper Decision Dates
National Newspapers
The national newspaper selections include the Wall Street Journal and The New York Times. These selections
have a decision date of 2 weeks prior to the publication. To select these mediums in a longer term buy, the
decision dates will be one month prior to the publication. The early decision will secure the advertisement
placement.
Spanish-language Newspaper
The Spanish-language newspaper selections are in DMA specific publications. Hoy will be distributed in
Chicago. El Nuevo Herald will be distributed in Miami. La Opinion will be distributed in Los Angeles. El
Diario will be distributed in New York City. These publications require a decision date approximately 3 days
prior to the publication. To secure advertising, the decision for these selections will be made two weeks prior
to the publication.
Newspaper
Selection90
April
(2013)
May
(2013)
June
(2013)
July
(2013)
August
(2013)
September
(2013)
October
(2013)
November
(2013)
December
(2013)
January
(2014)
February
(2014)
March
(2014)
Wall Street
Journal 3/1/13 4/1/13 5/1/13 6/1/13 7/1/13 8/1/13 9/1/13 10/1/13 11/1/13 12/1/13 1/1/14 2/1/14
NY Times 3/1/13 4/1/13 5/1/13 6/1/13 7/1/13 8/1/13 9/1/13 10/1/13 11/1/13 12/1/13 1/1/14 2/1/14
Hoy 3/15/13 4/15/13 5/15/13 6/15/13 7/15/13 8/15/13 9/15/13 10/15/13 11/15/13 12/15/13 1/15/14 2/15/14
La Opinion 3/15/13 4/15/13 5/15/13 6/15/13 7/15/13 8/15/13 9/15/13 10/15/13 11/15/13 12/15/13 1/15/14 2/15/14
El Diario 3/15/13 4/15/13 5/15/13 6/15/13 7/15/13 8/15/13 9/15/13 10/15/13 11/15/13 12/15/13 1/15/14 2/15/14
90Please see respective media kits
114
Outdoor Decision Dates
All outdoor buys will be long term buys. These advanced buys will secure advertising placement
for the selected DMA’s. Florida, Texas, New York and California will display outdoor Nissan
advertisements. The advertisements will be seen on billboards, buses, trains and a train wrap in
each DMA.
Outdoor
Selection
April
(2013)
May
(2013)
June
(2013)
July
(2013)
Augus
t
(2013)
September
(2013)
October
(2013)
November
(2013)
December
(2013)
January
(2014)
February
(2014)
March
(2014)
Florida 4/1/12 5/1/12 6/1/12 7/1/12 8/1/12 9/1/12 10/1/12 11/1/12 12/1/12 1/1/13 2/1/13 3/1/13
Texas 4/1/12 5/1/12 6/1/12 7/1/12 8/1/12 9/1/12 10/1/12 11/1/12 12/1/12 1/1/13 2/1/13 3/1/13
New York 4/1/12 5/1/12 6/1/12 7/1/12 8/1/12 9/1/12 10/1/12 11/1/12 12/1/12 1/1/13 2/1/13 3/1/13
California 4/1/12 5/1/12 6/1/12 7/1/12 8/1/12 9/1/12 10/1/12 11/1/12 12/1/12 1/1/13 2/1/13 3/1/13
115
Broadcast Decision Dates
The network, Spanish-language and cable television spots will be decided as long term buys. The
early decisions will help plan these media selections one year in advance to secure spot
placement (e.g. April 2013 buys will be decided by April 1st, 2012). The network television
selections will include :30 spots on NBC, FOX, and CW. NBC spots will air on Sunday Night
Football. FOX spots will air on Family Guy and X Factor. CW spots will be air on Vampire
Diaries. The Spanish-language television selections will include :30 spots on Univision,
Telemundo and Galavision. The cable television selections will include :30 spots on Adult Swim,
BET, E!, G4, MTV, Nick @ Nite, TBS, TV One, VH1, KXLA and WMBC-TV SinoVision.
Syndicated television selections were not considered and replaced by a larger budget allocation
towards spot television. The spot television selections are DMA specific for Florida, Texas, New
York and California. The spot networks will be CW and FOX. These buys will be efficiency buys
to be determined by the status of current events.
Television
Selection
April
(2013)
May
(2013)
June
(2013)
July
(2013)
August
(2013)
September
(2013)
October
(2013)
November
(2013)
December
(2013)
January
(2014)
February
(2014)
March
(2014)
Network 4/1/12 5/1/12 6/1/12 7/1/12 8/1/12 9/1/12 10/1/12 11/1/12 12/1/12 1/1/13 2/1/13 3/1/13
Spanish-
language 4/1/12 5/1/12 6/1/12 7/1/12 8/1/12 9/1/12 10/1/12 11/1/12 12/1/12 1/1/13 2/1/13 3/1/13
Cable 4/1/12 5/1/12 6/1/12 7/1/12 8/1/12 9/1/12 10/1/12 11/1/12 12/1/12 1/1/13 2/1/13 3/1/13
Spot TBA TBA TBA TBA TBA TBA TBA TBA TBA TBA TBA TBA
116
Internet Decision Dates
• All internet selection buys will be decided one month in advance
• These decision dates are earlier than the requested dates. We will select these mediums early for
secured advertisements
Internet
Selection
April
(2013)
May
(2013)
June
(2013)
July
(2013)
August
(2013)
Septembe
r (2013)
October
(2013)
November
(2013)
December
(2013)
January
(2014)
February
(2014)
March
(2014)
Cars 3/1/13 4/1/13 5/1/13 6/1/13 7/1/13 8/1/13 9/1/13 10/1/13 11/1/13 12/1/13 1/1/14 2/1/14
Download 3/1/13 4/1/13 5/1/13 6/1/13 7/1/13 8/1/13 9/1/13 10/1/13 11/1/13 12/1/13 1/1/14 2/1/14
Facebook 3/1/13 4/1/13 5/1/13 6/1/13 7/1/13 8/1/13 9/1/13 10/1/13 11/1/13 12/1/13 1/1/14 2/1/14
Google 3/1/13 4/1/13 5/1/13 6/1/13 7/1/13 8/1/13 9/1/13 10/1/13 11/1/13 12/1/13 1/1/14 2/1/14
Yahoo! 3/1/13 4/1/13 5/1/13 6/1/13 7/1/13 8/1/13 9/1/13 10/1/13 11/1/13 12/1/13 1/1/14 2/1/14
Hulu - - - - - - 9/1/13 - - - - -
Pandora - - - - - - 9/1/13 - - - - -
117
Appendix A
118
Assumptions & Limitations
Assumptions
There were several assumptions made in the creation of this media plan. To ensure there is no confusion or
miscommunication between the client and the agency, we have created a list of assumptions for your reference.
• The $100 million budget does not include production costs
• All rates seen here do not include CPMedia agency fees
• This media plan is specifically for the multicultural Millennial demographic consisting of African American, Hispanic
and Chinese Millennials from the ages of 18-29. We are assuming that the client is targeting the general public in a
separate media plan
• All rates seen here are pre-negotiations and can expect to experience a discount post-negotiations
• The proposed creative campaign is a framework for Nissan’s creative department to enhance and complete
Limitations
Below is an outline of the limitations we experienced in the creation of this media plan.
• Accessibility to resources
• Secondary information is limited to broad generalizations of the Asian population
• Availability of Chinese specific media in the United States
119
Defining Directional Costs
Magazines & Newspapers
Rates for selected magazines and newspapers were derived directly from each respective media kit; rates vary depending on size and color
choices. By taking the rate provided (including discounts for running multiple months), we multiplied the cost for one ad by the number of ads
we will run within the year to obtain the total cost of each medium.
Cable TV
Directional rates were derived using the Conway Corporation rate card. This divides shows into 3 tiers, which provides a CPM focused on
specific shows and the time of day the advertisement will run. Because we are only advertising in primetime, we only used the CPM’s for
primetime throughout the three tiers. After obtaining CPM, we used TVbytheNumbers to obtain the average viewership during primetime. This
allowed us to perform the following cost calculation- (CPM × Viewership) ÷ 1000- to determine cost per 30-second spot during primetime of
cable TV. SinoVision and KXLA costs were pulled directly from their respective rate cards.
Network TV
Specific rates for networks CW, FOX, and NBC were derived from the AdAge database. These rates were associated with cost to advertise on
the network’s most viewed shows throughout the week. To determine an average rate for a 30-second spot during primetime hours on these
channels, we averaged the cost of all shows specific to network.
Spot TV
We allocated specific amount for each DMA to put equal focus on each region. We are utilizing this as an efficiency buy.
Internet
To begin we looked at the rates for The Olympian, which is a website that provided rates to the public. Next, we did a percent change formula
for impression levels from The Olympian compared to our selected websites. We applied this percent change as a mark-up/mark-down to the
original rate provided. From here we derived a directional cost for the websites we are advertising in.
Outdoor
Rates here were obtained from the Clear Channel website. They provided costs for billboard, buses, trains and other forms of transit in specific
city areas. We chose to advertise in the four states with the most Nissan dealerships and allocated a set budget to each area within the overall
$1 million budget for outdoor. These rates allowed us to calculate costs for number of months and panels, buses and stations needed. By
multiplying the 4-week rate for one unit to the frequency of the ads and the amount of units.
120
Unmeasured Spending
Direct Marketing
Coupons
Coop
Product Placement
Events
Digital Media
Catalogs
Promotion
According to AdAge, unmeasured spending is the difference between a company’s
measured media and its total ad costs. This value includes the following possible
expenses.91
91"Methodology Leading National Advertisers." Advertising Agency & Marketing Industry News. 27 Nov. 2011 <http://adage.com/article/datacenter-
advertising-spending/methodology-100-leading-national-advertisers-2011-edition/227903/>.
121
Appendix B: Sources