UnME Jeans on WebCOPY
Transcript of UnME Jeans on WebCOPY
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UnME Jeans on Web 2.0
"You never change things by fighting theexisting reality. To change something, build a
new model that makes the existing modelobsolete" - Buckminster Fuller
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Synopsis
Brand Manager, UnME Jeans, MargaretFoley, facing an increasingly complexmedia situation:
Traditional media plan not effective; Declining audiences;
Increased advertising clutter &
Consumers tuning out. Foley exploring Web 2.0: must cut through
hype & determine options best for her.
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Synopsis (BM)
New social media outlets (virtual worlds,social networking sites, video sharingsites) require strategic thinking &knowledge of consumer behavior in a new
media landscape. Concept such as Co-creation of Brands:
mechanics & impact to be understood;
New consumer mindset impactingcontemporary culture, changing the wayBrand Managers & Consumers interact &communicate.
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Case Study Objectives
1. Explore opportunities and risks formarketers in the emerging social mediaenvironment;
2. Understand changing cultural mindset &factors driving consumers;
3. Discover use of blogs, wikis, Twitter,
widgets, podcasts, mash ups;4. Optimize Second Life, Facebook,
MySpace & YouTube usage.
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Case Study Objectives
5. Recognize mismatch between currentmedia purchasing approaches & currentconsumer environment;
6. Evaluate obstacles against traditionalinterruption model the need to talkwith rather than talk to or talk atconsumers;
7. Understand risks associated with socialmedia;
8. Use of media metrics: reach, frequency,
CPM? WHAT ELSE?
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A. Diagnosing Foleys Problems Interruption model of advertising:
Traditional advertising interrupts mediaviewing: TV, radio, print (Ads in betweeneditorial content);
Commercial interruptions at home, atplace of work, along the road, at shoppingcenters & malls, on the cell phone, in the
inbox; Reach measures achievement target
market exposed to advertisement;
CPM basis for comparing media costs.
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A. Diagnosing Foleys Problems
Interruption model of advertising:
Reach is a measure of exposureexposure is not the same thing as
perception; CAN EXPOSURE TRIGGER PURCHASE
DECISION-MAKING IN A CROWDED
MEDIA LANDSCAPE? Frequency becomes important: Effective
Frequency the key!
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A. Diagnosing Foleys Problems
Interruption model of advertising: In the interruption model, Marketers insert
advertisements into media programs thatsupport their brand image;
How do you measure Impact?
Impact is a qualitative measure of valueof an ad appearing in a particular mediavehicle, or of its placement in the vehicle.
Key advantage of Interruption model:
Complete control over the message!
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A. Diagnosing Foleys Problems Tuning Out Traditional Media:
Foleys traditional media plans targetedprograms like American Idol, Gossip Girl,fashion & beauty magazines (CPM $3.50to $29.95);
Cost of traditional media increasing Y-on-Y;
Audience size decreasing;
Multiple touch-points require moreinvestment;
Gen Y tuning out of traditional media
SHOULD FOLEY TOO?
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A. Diagnosing Foleys Problems
Tuning Out Traditional Media:
Foley already using Internet: BUT,Online banners & Google searchadvertising.
Is it enough?
Are these the right media vehicles?
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A. Diagnosing Foleys Problems
Tuning Out Traditional Media:
Foley overspending on TV & under-spending on the Internet;
Based on Gen Y consumer profile,
spending on net is inadequate.
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A. Diagnosing Foleys Problems
Tuning Out Traditional Media: CASEFACTS!
Exhibit 2: Banner/display decreasingimportance;
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A. Diagnosing Foleys Problems Tuning Out Traditional Media: CASE
FACTS! Exhibit 4: marketing spend in social
media expected to grow 70% (CAGR)over 5 years;
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A. Diagnosing Foleys Problems Tuning Out Traditional Media: CASE
FACTS!
Exhibit 5: Online video to grow by 62%(CAGR) over five years;
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A. Diagnosing Foleys Problems
Tuning Out Traditional Media: CASEFACTS!
Exhibit 6:Facebookto grow by85% Y-on-Y.
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A. Diagnosing Foleys Problems Tuning Out Traditional Media:
Reach & frequency metrics do notindicate if Foleys target consumersperceive, pay attention to & process heradvertising.
Two trends seen in consumer behaviorthat suggest ineffectiveness:
1. Advertising clutter: 5,000 admessages / day;
2. Opt-out options: Digital videorecorders and commercial free media
options.
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WHY Web 2.0 Model of Advertising?
Talking with & not talking to consumers;
Four cultural values of the Web:
1. Consumer co-creation: interactive,participatory, collaborator. Co-creation
includes customization of brandconsumer, consumer generatedadvertising, consumer testimonials &storytelling;
2. Social affiliation: sense of communityprofile pages, branded widgets, sharingof affiliation, rapidly spreading
messages.
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WHY Web 2.0 Model of Advertising?
Four cultural values of the Web:3. Digital self-expression: Avatars (digital
representations of self), online identities,opportunities for virtual brandexperience;
4. Sharing: P2P relationships, word-of-mouth communication, viral marketing.
Threat: negative buzz, hacking.
What benefits & risks does Web 2.0offer?
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B. Benefits & Risks: Branding in Web 2.0
Benefits: Access to Gen Y consumers: Foleys
active social media users;
Consumer receptivity: high because ofparticipative nature;
Consumer endorsement: WOM morebelievable & persuasive;
Brand authenticity: participation & co-creation suggests authenticity. Risk ofposeurs exists.
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B. Benefits & Risks: Branding in Web 2.0 Risks:
Lack of control: When consumers co-create brands, some loss of brand meaningoccurs;
Pro-brand & Anti-brand Co-creation:Brands experience favorable & unfavorableprojection;
Bad news travels fast & wide: networkedconsumers exchange comments;
A crowded bandwagon: Web 2.0 gettingcluttered; banners & widgets crowding the
space.
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B. Benefits & Risks: Branding in Web 2.0
Risks: Receptivity? Deluge of commercial
messages impacting receptivity;
Is Web 2.0 just a fad? Fad? Or here tostay? Should Foley make the most of itwhile it is viable?
Measurement of success is difficult:Do metrics from traditional media meanmuch on Web 2.0? ROI is difficult toassess.
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C. Creating New Metrics for Web 2.0
Metrics for Web 2.0 must be able tomeasure:
1. Consumers co-creation of brandsmeaning,
2. Use of brand for digital self-expression;
3. Infiltration into social networks &
4. P2P sharing of information.
WHAT CAN FOLEY USE? ANYIDEAS?
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C. Creating New Metrics for Web 2.0 WHAT CAN FOLEY USE?
1. Receptivity measures: Number ofconsumers who opt-in to receive brandinformation;
2. Participation measures: Number or percentage of consumers
participating in contests/ games;
Number clicking through for info; Number of times customer visits
branded space (virtual store in
Zwinktopia).
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C. Creating New Metrics for Web 2.0 WHAT CAN FOLEY USE?
3. Co-creation measures: Number ofconsumers posting to web forums,creating messages or brand fanmaterials: songs, poems, fan-fiction,designs for jeans, or downloadingUnME widgets;
4. Sharing measures:
Number or percentage of consumerswho share brand info (share UnMEwidgets);
Number of people using the network.
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D. Analyzing Three Social Media Options
Q.Which of the three social mediaplans should Foley pursue? Whatbenefits do they offer, what risks tothey entail? How can the risks be
mitigated?
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D. Analyzing Three Social Media Options
Zwinktopia Strengths:
1. Highly targeted matches UnME market;
2. Likely to create buzz in fashion pressonline & off-line;
3. Virtual product offers opportunity for
additional sales;4. Virtual stores can offer multifaceted online
experience;
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D. Analyzing Three Social Media Options
Zwinktopia Strengths:
5. Digital self expression opportunity
strengthens relationships;6. Co-creation opportunities via virtual
soapbox & design competition;
7. Consumer to consumer sharing ofdesigns expand reach, get brandendorsement.
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D. Analyzing Three Social Media Options
Zwinktopia Strengths:
8. Zwinkies exported to Facebook &
MySpace give the brand exposure.Zwinktopia users can post videos onYouTube;
9. Not many marketers here yet UnMEcould gain first mover advantage;
10. Low-cost: upfront & recurring.
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D. Analyzing Three Social Media Options Zwinktopia
Weaknesses:
1. Zwinktopia has small reach: 7 millionusers;
2. Relatively new. Second Life declining inpopularity;
3. Difficult to measure RO I sales one
indicator;4. Higher CPM ($14.29) than Facebook,
magazines, radio, online search,
banner advertising.
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D. Analyzing Three Social Media Options
Facebook
Strengths:
1. UnME can strengthen brand personalitythrough character Sasha;
2. Opt in nature of brand profile pagereceptive audience;
3. Experience with fashion sites e.g.Victorias Secret positive;
4. Large reach, frequent/ dailyinteractions;
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D. Analyzing Three Social Media Options
Facebook Strengths:
5. Digital self-expression for consumers
strengthens relationship with brand inreal life/ virtual life;
6. Co-creation using widget designs for
posting to Sasha profile page;7. Customer to customer sharing of
designs encourages endorsement;
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D. Analyzing Three Social Media Options
Facebook
Strengths:
8. Facebook much better established thanZwinktopia, even though shared;
9. Low upfront investment;
10. Very low CPM ($3.57).
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D. Analyzing Three Social Media Options Facebook
Weaknesses:1. Less targeted than Zwinktopia;
2. Likely to generate less buzz many
brands;3. Larger recurring investment needed;
4. Loss of control a big risk: Wal-Mart
experience negative comments;5. Currency was likely to be less receptive
see it as intrusion in their profile
pages;
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D. Analyzing Three Social Media Options
Facebook
Weaknesses:
6. Facebook getting cluttered;
7. Difficult to measure ROI ( traditionalmeasures of reach, frequency, CPMmay be used).
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D. Analyzing Three Social Media Options Video sharing on YouTube
Strengths:1. Allows strengthening of product in the
two inspirational stories of target
market (teenage girls);2. Large reach (66 million);
3. Co-creation opportunities/ videouploading of testimonials;
4. Video ads more creative than TV ads;
5. Well established medium/ low upfrontcost.
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D. Analyzing Three Social Media Options Video sharing on YouTube
Weaknesses:1. Less targeted than Zwinktopia;
2. Large recurring investments;
3.
Risk of loss of control;4. Poor receptiveness YouTubeexperience with advertising initiallyweak;
5. Clutter;6. Difficult to measure ROI;
7. Very high CPM compare to other