honda brand imc campaign- slides + transcript: justin ryan thomas
TRANSCRIPT
Honda Motor Company Inc.
Justin Thomas
Céline Chevalier
Kimberly Guzman
Stephen Hattersley
Shenna Huynh
Edwardson Lim
*Slides + Highlights from Transcript
13 May 2010
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Slide 1
Céline ChevalierKimberly GuzmanStephen HattersleyEdwardson LimShenna HuynhJustin Thomas
SDSU IMC Consulting
Slide 2
Introduction Overview
Situation Analysis Internal
External
SWOT
Communication Strategy Target Market
Communications Objectives
Marketing Objectives
Big Idea
Execution Conclusion Q&A
AgendaSituation AnalysisIntroduction Comm. Strategy Execution
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Slide 3
INTRODUCTION
Situation AnalysisIntroduction Comm. Strategy Execution
Statement of Purpose
Steven Center, the Vice-President of Marketing for American Honda Motor Co, contacted SDSU
IMC Consulting to develop a 2.5 year integrated marketing campaign, targeted to the older
undergraduate and young professional markets. According to Mr. Center’s current market-research
resources Honda is already #1 in these consumer’s minds. Our instructions are to increase the amount
of this market that considers Honda #1 in terms of fun, safety and environmental friendliness. In doing
so, we are to increase the amount of the target market that views Honda as the #1 brand amongst their
main competitors.
1.b. Executive Summary
SDSU IMC Consulting will increase the margin by which the target market see Honda
automobiles as being fun, safe, and environmentally clean, as compared to the corporation’s main
competitors. We will do so by creating an integrated marketing communications plan to effectively
connect these values to the brand, in the eyes of our target market and target audience.
We will begin by exploring Honda Motor Company’s internal and external environment,
identifying strengths, weaknesses and potential opportunities. We will then conduct primary and
secondary research on our target market, in order to gain insights that will help us create
communications to effectively connect the Honda brand with the image of fun, safety and
environmentally cleanliness. We will deliver communications through advertising, public relations, and
social media vehicles, and set specific objectives relative to each. Using the insights gained through
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research, we will propose a 2.5 year course of action to Honda Motor Co., and recommend metrics for
measuring success.
Slide 9
“Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction.”
Mission StatementSituation AnalysisIntroduction Comm. Strategy Execution
The company values the "basic principles" of respect for the individual and the "three joys," (buying, selling and creating). They have five important management policies: Proceed always with ambition and youthfulness. Honda focuses on the innovation of their products to better "improve mobility and benefit society." * Respect sound theory, develop fresh ideas, and make the most effective use of time. * Enjoy work and encourage open communication. * Strive constantly for a harmonious flow of work. * Be ever mindful of the value of research and endeavor. Honda's operations reflect and further their mission statement and the position we would like to maintain, as the brand that is most "fun, safe and environmentally friendly." In order to do deliver the highest quality products and stay at the cutting edge of innovation, Honda places a great amount of effort into research and development. The management policies help make employee groups more efficient and encourage a better delivery of their mission. In order to remain globally efficient, Honda places sales networks, research and development centers, and manufacturing facilities in each region they market to. By localizing their operations Honda can more effectively tailor their brand to the needs of different cultures and societies. Honda strives for social consciousness by emphasizing innovations in safety and environmental efficiency, while keeping fun and performance in mind.
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Slide 10
VCM
Hybrid IMA
CVT
VTEC
SH-AWD
Crash compatibility body
TechnologySituation AnalysisIntroduction Comm. Strategy Execution
Honda's innovations in automotive technology help bolster their position of "safe, fun, and environmentally conscious." Their research and development departments spend much of the company's resources ($5.733 billion in 2009 alone) developing technologies that will help solidify Honda's place as the #1 spot in their position. Honda carries patented technologies that support this goal, and continuously builds on their resource pool. One such patented technology is VCM, or variable cylinder management, which delivers power while saving fuel and reducing Co2 emissions. VCM accomplishes this by deactivating engine cylinders at low speeds and reactivating them when high performance is necessary. Honda is currently the only automaker to offer a v6 engine with 3-stage cylinder deactivation. (VCM System) Honda is also responsible for IVTEC, or intelligent variable valve timing and lift. IVTEC is an engine innovation that opens the valves a small amount at low speeds and wider as speed increases. This also allows for everyday drivability, fuel efficiency and high performance simultaneously. (VTEC) IMA, integrated motor assist, is Honda's hybrid engine system. It is a parallel system powered by an internal combustion engine assisted by an electric motor. The electric motor assists the engine during standing starts and during acceleration, when engine fuel consumption is high. This system allows for performance and fuel efficiency simultaneously. Honda believes the parallel IMA system will prove to be the world's most effective hybrid. (Hybrid IMA)
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CVT, continuously variable transmission, is a transmission that can change without steps, eliminating the need for gear changes. No gear changes means less exertion on the vehicle and less engine load. This system results in drastically improved fuel economy. SH-AWD, Super Handling All-Wheel Drive, is a system that allows for vastly improved cornering in four-wheel drive vehicles. During a turn, the system distributes more power to the outside rear wheel and holds power back from the inside rear wheel for much more efficient turning. It is the First four-wheel drive system to freely distribute drive torque to rear wheels and makes for a more fun ride. Honda is also working on the mass distribution of zero emissions fuel cell vehicles. These vehicles run off of hydrogen fuel cells, which power an electric motor, using no gasoline and producing zero emissions. Honda released the FCX Clarity fuel cell vehicle in 2008 at select distributors and plans to mass distribute in the near future. The Honda Crash-Compatibility Body exhibits industry leading safety technology. Honda frames are built to align with different frames during impact, disperse collision loads for impact with heavier vehicles and improve energy absorption to reduce body deformation in smaller vehicles. This technology helps make the road safer for everyone involved in the crash, no matter the size or make of their vehicle. Honda's technology is reflective of the brand's positioning, mission, vision, and goals. The IVTEC, VCM, IMA Hybrid, CVT, SH-AWD, and fuel cell technology allow for increased fuel efficiency and high performance. The crash compatible frames are state of the art in terms of safety. Technology clearly allows Honda to pursue its vision of promoting environmental consciousness and driver safety, while delivering the performance their target market craves.
2.a.iii. Financial Health
Honda, like most automotive companies was negatively affected by the economic downturn. 2008 was a remarkably detrimental year for Honda, as displayed by recent financial statements. Sales, income and assets are all down in these records, due to the economic hit. However, the worst appears to be over and the company is currently taking steps to boost profitability and move on. Honda forecasts that as they continue to implement a temporary cost reduction strategy, sales and income will gradually return. Recent statements show the effects of the downturn as well as the early results of their strategy to minimize the damages. According to the 2009 annual financial reports, income was down due to decreased revenue attributable to lowered unit sales along with unfavorable currency effects. (See Appendix 2.a.iii.1.) Operating income was measured to be down by 15.9% (See Appendix 2.a.iii.2.). This decrease can be attributed to a 28.5% decrease in unit sales of every category (power products, motorcycles and automobiles) when compared with the subsequent period. Negative currency effects have also added to the effect of decreased sales. Honda estimates that if the currency exchange rates remained the same as in the previous period, operating revenue would have only decreased by 6%.
In order to deal with the hit, Honda has gone with a temporary cost reduction strategy. They have significantly cut several costs, most notably Research and Development and Sales General and Administrative expenses. By doing so, they hope to improve returns to shareholders until the market sees economic recovery. The strategy seems to have effectively
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counteracted the effects of exchange rates and decreased sales, as in the recently measured 3rd quarter of 2010 Operating income has improved 74 billion yen, or 72.7% over the measured Q3 of 2009.
There is evidence of a “slowdown in the slowdown,” as measured by current reports. 2010 financial statements report that revenue from sales is still dropping, but not as drastically as it was during the same period last year. This could be a sign of gradual recovery. Currency effects, yen vs. dollar, are still a major factor for the decrease in Honda’s operating income. This is a significant threat to future returns, and must be addressed adequately.
Several of Honda's important markets have had significant changes and are important for a globally minded corporation like Honda to note. The US market is in recovery, and the European market has bottomed out and is expected to see recovery soon. Japanese consumers are spending more, though they are still not completely "out of the trenches," with respect to unemployment and other detrimental aspects of the downturn. China and India's economy's have both fully recovered, and are particularly compelling, as demand for Honda in these markets has expanded significantly.
Slide 11
Company Values Innovation Research and Development
Quality Uniqueness
Company ValuesSituation AnalysisIntroduction Comm. Strategy Execution
Competitive Advantage
Honda’s focus on technology, quality and uniqueness has allowed Honda to become a leading brand name in the automobile industry. Honda’s Research and Development (R&D) strengthens the ability to create new and unique technologies and products, which is the origin on Honda’s uniqueness. They are able to produce products ahead of the times, which in turn exceed customer expectations. Honda's growth is due to consistently improving its products. Their focus is not growth for the sake of growth.
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Their growth and overall business performance comes from finding ways to expand the product line by producing multiple models on a single assembly line. Honda's manufacturing efficiency is aimed at highly competitive cost and high quality. They build three to five different vehicles on the same line meaning high asset utilization and reduced variability that contributes to better quality. There is little "badge engineering" where three to five vehicles with the same features are built using different nameplates and adding higher costs to market sell, service and support the products. Position & Brand
Honda vehicles appeal to young buyers, even as loyal older customers move up market into more expensive near-luxury Honda models. Honda is well known fun, safe, and economical engine performance as well as clean operation. Honda has demonstrated a long term approach to the transportation industry. They have built a strong vehicle brand based on reliable, quality products. Their engines are both economical and environmentally friendly. The company's rich history, high quality products and emphasis on research and development are key factors in Honda's strong brand value. Honda is a household name around the world thanks to its reputation for developing innovative, reliable and extremely well engineered products. As a company that manufactures a broad range of products spanning cars, motorcycles, advanced four-stroke power equipment and marine products, there are many positive halo effects. Owners who have experienced Honda products become extremely loyal and are likely to consider a Honda in another product category. The company continually strives for product improvement, which is an attraction for new customers. Streamlining the cooperation in research and development across all departments delivers product innovation, cutting-edge technology and top-tier design. The brand is recently valued at 19.079 million and has the most models to top J.D. Power & Association satisfaction surveys.
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Slide 12
DemographicsSituation AnalysisIntroduction Comm. Strategy Execution
Buyer’s Age 18-49 Young Professionals
Mature Professional Couples
Middle Class Income $75,000+
2.a.viii. Customer Analysis Honda’s vehicles reach across several generations. Generally, Honda customers are middle-class Americans who have typically shown a desire for high quality, reliable, and affordable cars. This group can be further broken down into young professional couples and older professional couples. Young professional couples are young Generation Y newlyweds with no children. They are flourishing early in their careers and enjoy “couple-hood”. The couple shares a $70,000 dual income. This is compared to older professional couples, buyers who are in the second phase of their life. They are older baby boomers whose children have already moved out. Some may be beginning second careers like starting their own business while other are just beginning retirement. Their household income ranges around $90,000. Despite the generation gap, Honda is able to appeal to both market segments. 2.a.ix. Demographics Honda provides a number of different automobile models that cater to separate demographic profiles. Statistics from a Honda sales staff training manual provided insight on buyer demographics and characteristics specific to each model, as of 2010. The Accord Sedan markets itself as having a full-size sedan presence with a high-performance look and feel with wide-opening doors for ease of entry and exit. This automobile attracts primarily Baby Boomers who have an average income of $75,000. Buyers are 48% male and 53% female who are married with a college degree. The Accord Coupe is a sport vehicle that targets individuals who love the feel and look of driving a high-performance vehicle. Individuals in Generation Y are greatly attracted to this vehicle. The demographics of this vehicle contain a median age of 38 with an average income of $70,000 a
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year. 39% of Accord Coupe buyers are male and are 61% female. These individuals are mainly single with a college degree.
The Civic Sedan offers technology, performance, and value. The marketing of this automobile attracts those under the age of 35 with an average income of $64,000. 55% of Civic Sedan buyers are male and 45% female. 75% are married and 57% have earned a college degree.
Another Civic model is the Civic Coupe that is a two-door vehicle that establishes itself as sharply styles and feature rich automobiles that claims to turn every drive into an escape. The stylish look of the car attracts those under the age of 35. Of these buyers, 60% are male, while the remaining 40% are female. Civic Coupe buyers have an average income of $78,000, being primarily married with a college degree.
The Civic SI Sedan was created for those who are performance oriented, four door, and sports vehicle. SI Sedan buyers range from 20-40 years old, with a median age of 29. Males take up 83% of the buyer demographic while only 17% are female, which is a major difference compared to the gender demographics of other Honda models. The buyers of this automobile have an average income of $85,000 are primarily married, and educated.
A hybrid model of the Civic was created for individuals who desire the comfort and characteristics of a Civic with better fuel efficiency. The Civic Hybrid contains buyers demographic who are between the ages of 45-64. 61% of these buyers are male and 39% female. They contain an average income of $100,000. Most are married with a college degree.
The New Insight targets those who are concerned with the effects cars have on the environment. This automobile caters to two different markets. The first market are buyers between the ages of 25-29 years old who are entry level professionals earning an average income of $45,000-$55,000. The buyers are evenly male and female and primarily single. The second market of the New Insight targets those who are retired professionals with an average age of 55. They have a high or fixed income and this automobile is their second vehicle. The FIT is Honda’s second attempt for a hybrid vehicle and was created to compete with the Toyota Prius. 19% of these buyers are professionals earning an average income of $76,000.
The Honda Odyssey is a minivan that prides itself of innovative safety features and advanced technology. The average age of these buyers is 45 years old making an average income of $90,000 per year. 93% of Odyssey owners are married and 61% have children. The “soccer mom” reputations of the Odyssey minivan lead to the creation of the Honda Pilot that has the same features as the later vehicle with a trendy, SUV look. The buyers of the Pilot are primarily between the ages of 35-45 earning $70,000, who are married with children. Honda also produces trucks. One model is the Ridge Line, which is a 4-door pickup. JD Power and Associates recently named this truck Truck of The Year. This model attracts primarily 45-year-old males who are married with children. The average income of these buyers earns $79,000 a year and lives a suburban lifestyle.
Another truck that Honda produces is the Truck Element. Interestingly, this truck was designed for recent college graduates, but has attracted those who are over 50 years old. These buyers are mostly male earning an average $77,000 per year. Truck Element owners are 67% married and enjoys an active outdoor lifestyle.
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After comparing the different models and buyer characteristics of the automobiles above, it is proven that Honda car owner demographics are incredibly diverse and contain the ability to succeed in any market.
In summary, the Accord and Civic sedan provides a full-sized automobile in which an older market may find valuable. The Accord and Civic Coupe, and Civic SI satisfy those who desire an affordable high performance vehicle. For those who are following the trends of environmentally automobiles, Honda provides the Civic Hybrid, Insight, and FIT. Honda also understands family is an important factor in the lives of many and has launched the Odyssey and Pilot for a family friendly car. Finally, for those who have an active lifestyle enjoy the benefits of the Truck Element and the Ridgeline. After researching buyer demographics of Honda car owners for 2010 fiscal year, it is prevalent that this company caters to many markets in the automobile industry ranging from age, income, and lifestyles.
This research has also concluded that the Accord and Civic models are ideal vehicles that cater to our target market based on current demographic characteristics. A more in depth analysis was then conducted on consumers who own these models using the Media Mark Research and Intelligence. After assessing consumer information on the Honda Accord and Civic models, as well as their Big 3 competitors, a list of potential mediums were found. For magazines, Lucky, Spin, and Wired were concluded to be the best magazines to advertise in based on consumer readership. Among television networks, Bravo, CNBC, Discovery, MTV2, and Adult Swim was shown to be the most viewed networks with Accord and Civic owners as well as those in our target market. Lastly, the most popular websites were Yahoo!, aol.com, nbc.com, and YouTube.com. These findings will help to aid in the media schedule for the marketing communications plan.
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Slide 13
Current CompetitionSituation AnalysisIntroduction Comm. Strategy Execution
Honda is the 6th largest car manufacturer in the worldMain competitors include:
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2.a.x. Direct Competitors Honda is the world's largest manufacturer of motorcycles as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than 14 million internal combustion engines each year. Honda surpassed Nissan in 2001 to become the second-largest Japanese automobile manufacturer. As of August 2008, Honda surpassed Chrysler as the fourth largest automobile manufacturer in the United States. Honda is the sixth largest automobile manufacturer in the world.
In June 2008, during a weak economy and with high fuel prices, Honda reported a 1% sales increase. On the contrary, its rivals that include the Detroit Big Three and Toyota have reported double-digit losses. Honda's sales were up almost 20 percent from the same month last year. The Civic and the Accord were in the top five list of sales. Analysts have attributed this to two main factors. First, Honda's product lineup consists of mostly small to mid-size, highly fuel-efficient vehicles. Secondly, over the last ten years, Honda has designed its factories to be flexible, in that they can be easily retooled to produce any Honda model that may be in demand at the moment.
Nonetheless, Honda, Nissan and Toyota, were still not immune to the global financial crisis of 2008, as these companies reduced their profitability forecasts. Top Honda North America, Inc Competitors Big Three: General Motors, Ford, Chrysler Nissan
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Toyota World’s ranking (Turnover): 1. Toyota Motors 2. General Motors 3. Ford 4. Volkswagen 5. Daimler 6. Honda 7. Fiat 8. Nissan Motors 9. PSA Peugoet Citroën 10. BMW 11. Renault 12. Chrysler 13. Suzuki
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Slide 14
Situation AnalysisIntroduction Comm. Strategy Execution
EXTERNAL ANALYSIS
Potential Competitors
China's automobile industry has been developing rapidly since the year 2000. In 2009, 13.83
million motor vehicles were manufactured in China, surpassing Japan as the largest automobile maker.
Moreover, with total sales of 13.64 million, China became the largest automobile market in the world for
the full year 2009, overtaking the United States.
The consulting firm McKinsey & Company estimates that China's car market will grow tenfold
between 2005 and 2030. The main national industry group is the China Association of Automobile
Manufacturers. China encourages the development of clean and fuel-efficient vehicles in an effort to
sustain continued growth of the country’s automobile industry.
India has seen a dynamic 17% annual growth in automobile production and 30% annual growth
in exports of automotive components and automobiles. India produces around 2 million automobiles
currently. Total turnover of the Indian automobile industry is expected to grow from USD 34 Billion in
2006 to USD 122 Billion in 2016. The largest automotive companies in India are Maruti Suzuki, Hyundai
Motor India, Tata Motors and Mahindra & Mahindra. Tata Motors has just launched Tata Nano, the
cheapest car in the world at USD 2200
Suzuki Motor Corp, Hyundai Motor Co, and Nissan Motor Co are making India their
manufacturing hub for small cars.
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Slide 15
Government and compliance
Environmental Issues
Society
Community Participation
Social Welfare
Disaster Relief
Volunteer Activities
Value Communications
Legal Ethical FactorsSituation AnalysisIntroduction Comm. Strategy Execution
Honda Motor Co. prides itself on being one of the most law abiding and ethical companies around. To uphold its standards, Honda’s compliance involves the utmost respect for the law and social norms. Honda continually abides laws and regulations for ethics. Honda also values environmental protection, such as the proper processing of waste and pollutants, the efficient use of natural resources and recycling, and legally required measurements, recording, and reporting.
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Slide 16
Government and compliance
Environment
Society
Community Participation
Social Welfare
Disaster Relief
Volunteer Activities
Value Communications
Legal Ethical FactorsSituation AnalysisIntroduction Comm. Strategy Execution
Slide 17
Government and compliance
Environment
Society
Community Participation
Social Welfare
Disaster Relief
Volunteer Activities
Value Communications
Legal Ethical FactorsSituation AnalysisIntroduction Comm. Strategy Execution
Honda spends a great deal of time and money on contributions to society. The corporation strongly believes in community participation, social welfare, disaster relief, and volunteer activities. Honda participates in the American Cancer Society Relay for Life, hosts Red Cross blood drives, and partakes in civic reading circles for children and sea turtle preservation in Mexico. Honda also offers scientific research internships for high schools students as part of
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the Harlem Children Society, hosts design and problem-solving trainings for youth in the Future Engineers Center at UMASS, and participates in the Ride for Kids charitable motorcycling program that supports the Pediatric Brain Tumor foundation.
In assisting disaster relief, Honda contributed in excess of $1.5 million in support assistance and products to aid recovery efforts and to help victims of 9/11 cope with their losses. In addition, American Honda also pledged $5 million to the American Red Cross Disaster Relief Fund in the wake of the devastating Hurricane Katrina. Slide 18
High Fuel Prices
Weak U.S. Economy
Financial Crises
Global Financial Crisis of 2008
Automotive Industry Crisis 2008-2010
Economy / PoliticsSituation AnalysisIntroduction Comm. Strategy Execution
Slide 19
High Fuel Prices
Weak U.S. Economy
Financial Crises
Global Financial Crisis of 2008
Automotive Industry Crisis 2008-2010
Economy / PoliticsSituation AnalysisIntroduction Comm. Strategy Execution
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High Fuel Prices
Weak U.S. Economy
Financial Crises
Global Financial Crisis of 2008
Automotive Industry Crisis 2008-2010
Economy / PoliticsSituation AnalysisIntroduction Comm. Strategy Execution
Slide 21
Government bailouts for General Motors and Chrysler
Toyota Recalls of 2010
Cash for Clunkers Car Allowance Rebate System
Results:o 690,114 dealer transactions with Honda accounting for 13.0% of saleso #2 Selling Car Honda Civico Led to gain in market share for Japanese and European manufacturers at the
expense of American car makers
Economy / Politics Cont.Situation AnalysisIntroduction Comm. Strategy Execution
Slide 22
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Government bailouts for General Motors and Chrysler
Toyota Recalls of 2010
Cash for Clunkers Car Allowance Rebate System
Results:
▪ 690,114 dealer transactions with Honda accounting for 13.0% of sales
▪ #2 Selling Car Honda Civic
▪ Led to gain in market share for Japanese and European manufacturers at the
expense of American car makers
Economy / Politics Cont.Situation AnalysisIntroduction Comm. Strategy Execution
Slide 23
Government bailouts for General Motors and Chrysler
Toyota Recalls of 2010
Cash for Clunkers Car Allowance Rebate System
Results:
▪ 690,114 dealer transactions with Honda accounting for 13.0% of sales.
▪ #2 Selling Car Honda Civic
▪ Led to gain in market share for Japanese and European manufacturers at the expense of American car makers
Economy / Politics Cont.Situation AnalysisIntroduction Comm. Strategy Execution
Multiple economic and political factors such as high fuel prices, the weak economy, and government programs affect the Honda Motor Co. High fuel prices lead to an increase in public transportation, car pooling, alternative forms of transportation, and an increased demand for fuel efficient cars. The weak U.S. economy has led to dramatic decreases in car sales worldwide. The most relevant economic factors that have recently affected the Honda Motor Co. are the recent financial crises such as the Global Financial Crisis of 2008 and the Automotive Industry Crisis of 2008-2010. The Global Financial Crisis of 2008 was first triggered by the burst of the U.S. Housing Bubble that resulted in liquidity shortfall in the U.S. This resulted in the collapse of large financial institutions, the “bail out” of banks by the U.S. government, and downturns in stock markets around the world. The Global Financial Crisis of 2008 is considered by economists
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to be the worst financial crisis since The Great Depression in the 1930’s. The impact of the recession led to declining automobile sales and widespread Automotive Industry Crisis of 2008-2010. This affected European and Asian car manufacturers but was primarily felt by American car manufacturers. North American consumers then turned to higher quality, more fuel-efficient vehicles European or Japanese made.
The financial crises also lead to government bailouts for General Motors and Chrysler. In late September 2008, Congress approved a more than $630 billion spending bill, which included a measure for $25 billion in loans to the auto industry. These low-interest loans are intended to aid the industry in its push to build more fuel-efficient, environmentally friendly vehicles and to keep the Detroit 3 out of bankruptcy and millions of lost jobs.
A government implemented program that increased sales for Honda was the Cash for Clunkers (Car Allowance Rebate System) that took place July 1, 2009- August 24, 2009. This $3 billion U.S. Federal Scrappage Program intended to provide economic incentives to U.S. residents to purchase a new, more fuel-efficient vehicle when trading in a less fuel-efficient vehicle. The program was promoted as providing stimulus to the economy by boosting auto sales, while putting safer, cleaner and more fuel-efficient vehicles on the roadways. This program resulted in 690,114 dealer transactions submitted with Honda accounting for 13.0% of sales. The #2 highest selling car was the Honda Civic. This led to a gain in market share for Japanese and European manufacturers at the expense of American carmakers.
Slide 24
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Slide 25
Shift towards more economical, fuel efficient vehicles due to:
Frequently high gas prices
Increased environmental awareness
Green movement encouraging more fuel efficient transportation
Carpooling
Public Transportation
Alternative transportation (bikes, skateboards, etc.)
Most viable solution; increasing use of the hybrid engine
Social TrendsSituation AnalysisIntroduction Comm. Strategy Execution
As public awareness and the environmental sciences have improved in recent years, environmental issues such as sustainability, ozone depletion, and global warming have arisen, among many others. Along with the growing concerns over the environment, the recession has also greatly impacted social trends relating to the automobile industry. Due to these growing issues, there has been a noticeable shift toward more economical, reliable, and more fuel-efficient vehicles.
Global warming and the consumer and statutory requirements for cars with higher fuel efficiency have led to major upheavals and changes in the automotive industry, especially in the United States, where average fuel economy is the lowest in the developed world. The frequently high price of gasoline has driven consumers' demand toward smaller, more fuel-efficient vehicles. In addition, environmentalists have become more influential in American politics and have spearheaded numerous U.S. environmental laws, including the Clean Air Act and the formation of the US Environmental Protection Agency in 1970. Being that the US is responsible for 2/3 of the world’s oil consumption sector, it has greatly affected the US automobile industry. According to MSNBC, research by the consulting firm CSM Worldwide shows that American consumers preferred large cars and trucks up through 2007. By supplying that demand, and not focusing on smaller, more fuel-efficient cars, the New York Times reported that American car manufacturers are ill prepared to fill the demand created for more fuel-efficient cars. Companies that have maintained their smaller product lines such as Japanese automakers Toyota and Honda are better positioned to maintain profits over the short term. Increased fuel efficiency standards, a result of global warming concerns, have also put American car
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manufacturers in a competitive bind while they rebuild their portfolio of smaller, more fuel-efficient cars. In recent news, Hummer, the expensive, notorious gas guzzling, army tank resembling truck, has failed to find itself a company buyer and the company has completely folded. This validates the social trends towards smaller, more fuel efficient, and economical automobiles. In response to these social trends, companies have started to invest huge amounts of money into the development of advanced alternative fuel vehicles. The concept of hybrids has emerged as the most viable solution to deal with these problems and is gaining immense amounts of attention from the major industry players. Slide 26
SWOT AnalysisSituation AnalysisIntroduction Comm. Strategy Execution
• Economic Slowdown
• Raw Material Costs
• Focus on Fuel efficiency
• Toyota recalls
• Decreased R & D
• Decreased SG&A• Innovation
• Brand Name
Strengths Weaknesses
ThreatsOpportunities
3.a.i. Strengths Honda’s brand image is a clear strength within the company. One piece of evidence for their brand dominance is that Honda is the only automaker with four vehicle models claiming the number one spot in JD Power & Associates Customer Satisfaction Survey, in the same year. Honda’s brand is valued at a whopping $19.079 billion, and is growing year on year. The brand is positioned as the automaker that is most fun, safe and environmentally conscious, a claim backed by unmatched technological resources.
Technology is also a clear strength of Honda automobiles. As explained in the situation analysis, patented technologies support and solidify the brand’s position. The CVT, IVTEC, Hybrid IMA, VCM, SH-AWD, and Fuel Cell technologies are all revolutionary, patented innovations that produce industry leading fuel economy while delivering performance and fun. Honda’s Crash Compatibility body has proven extremely safe even beyond strict industry standards. Honda supports its image of fun, safe and environmentally friendly by keeping their automobiles on the cutting edge of each of these categories.
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Slide 27
SWOT AnalysisSituation AnalysisIntroduction Comm. Strategy Execution
• Economic Slowdown
• Raw Material Costs
• Focus on Fuel efficiency
• Toyota recalls
• Decreased R & D
• Decreased SG&A
• Innovations
• Brand Name
Strengths Weaknesses
ThreatsOpportunities
3.a.ii. Weaknesses Due to the loss of operating income during the economic downturn, Honda took on a new strategy calling for substantial cost cutting. Top management decided to heavily cut spending in both research and development (R&D) and sales, general and administrative expenses (SG&A). This strategy has limited Honda’s resources in several aspects of the marketing mix including promotion and product innovation. These elements of the mix will be adversely affected, at least in the short-term. (See Financial Health , below for a detailed financial report.) Cutting R&D expenses could lead to a slowdown in innovations to new Honda models. As mentioned in the internal situation analysis, Honda’s mission and position is heavily focused on constant innovation. The mission statement explicitly states; “Honda focuses on the innovation of their products to better improve mobility and benefit society." Due to R&D’s critical role in Honda’s competitive advantage, decreased resources available to innovate new models may prove to be a substantial weakness in upcoming years. However, as noted earlier, Honda has a powerful base of patented technologies, and a distribution process not easily matched by competitors. The reduction of SG&A expenses could lead to a decreased ability to gain pricey exposure. With diminished resources available to invest in promotion, Honda may have to look to less pricey means of exposure. However, as mentioned in the situation analysis, Honda currently has a powerful industry lead in terms of brand image. Options for budgeting and exposure techniques will be explored later in the report.
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Slide 28
SWOT AnalysisSituation AnalysisIntroduction Comm. Strategy Execution
• Economic Slowdown
• Raw Material Costs
• Focus on Fuel efficiency
• Toyota recalls
• Decreased R & D
• Decreased SG&A
• Innovations
• Brand Name
Strengths Weaknesses
ThreatsOpportunities
3.b. Opportunities and Threats Honda’s major opportunities and threats, as identified by the situation analysis, are heavily related to a volatile economic climate. The financial section of the internal analysis mentions that the Chinese and Indian markets have fully recovered. These healthy markets could create both opportunities and threats for the Honda automobile industry. The financial data also indicates a negative change in currency effects, which has proven detrimental and is still a substantial threat. Our social trends section indicates changing value of fuel economy among our consumer base, which is also important for Honda to note, as is the current situation with Toyota. Since the Toyota Recall incident of 2010, this company’s brand equity has decreased immensely. Considering that Toyota is one of Honda’s “Big 3” Competitors, Honda may be able to capitalize and gain market share. 3.b.i. Opportunities
The Financial Health and Potential Competitors sections discuss the recent upturn of Chinese and Indian economies. These markets could prove very beneficial to Honda. Since China’s recovery, demand has risen significantly and is expected to increase from 6.3 million units in 2007 to 12 million in 2010. Demand in India is also up, and vehicle production is
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expected to double over the same period. Honda looks at this as an opportunity and has taken initiative by building a second plant as well as expanding on its existing plant in India. They hope to take advantage of the situation by localizing operations. This strategy is typical of Honda, and part of their mission to “remain globally efficient,” as discussed earlier in the internal analysis. The current political and economical climate has produced changes in consumer’s value of fuel economy. Increased emissions regulations, for example, indicate an upward shift in environmental concern. Reduced disposable income has affected consumer’s willingness to pay for travel. These shifts have created a consumer need for more affordable and efficient vehicles. Demand for hybrid cars is expected to expand to 4 billion units by 2015. Our technology section explains exactly how and why Honda is the market leader in fuel efficiency, and how they plan to maintain and expand their lead. Honda’s position at the cutting edge of fuel efficiency will be a great opportunity as consumer attitudes continue to shift in this direction. Toyota’s situation is also potentially a significant opportunity. When a crisis such as this recall hits a competitor, there is an important ethical question of whether or not to attack. Whether Honda does or does not decide to take advantage, a major competitor losing brand equity in such fashion could be inherently beneficial to Honda’s image and market share.
Slide 29
SWOT AnalysisSituation AnalysisIntroduction Comm. Strategy Execution
• Economic Slowdown
• Raw Material Costs
• Focus on Fuel efficiency
• Toyota recalls
• Decreased R & D
• Decreased SG&A
• Innovations
• Brand Name
Strengths Weaknesses
ThreatsOpportunities
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3.b.ii. Threats While China and India’s economic situations could prove to be beneficial, they are also a potential threat. While demand for Honda has risen in China, demand for competitors has risen as well. Emerging Chinese and Indian car manufacturers are important competitors to note. In 2008 China surpassed the United States as the second largest automobile maker, after Japan. The competitive threat of Chinese and Indian automakers could become much stronger as their economic climate continues to improve.
Our financial data indicates that the current economic climate of the US and Europe is still problematic. While the US is considered to be in recovery, sales continue to fall. Europe’s auto market has presumably hit rock bottom and expected to see recovery soon. While the worst is forecasted to be over, these increasingly volatile markets must be monitored closely. Changing currency effects, particularly yen vs. the US dollar have proven to be detrimental to Honda. Along with the economic downturn, the yen has significantly appreciated over the dollar as recently measured. These effects may prove problematic, as they have affected the pricing and cost of materials adversely.
Slide 30
Communication StrategySituation AnalysisIntroduction Comm. Strategy Execution
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Slide 31
Primary Market
Middle and Upper socio economic classes
Financially stable
Desire to purchase a vehicle
Style conscious
Considers value Secondary Market
Entry-Level buyers
Desire an affordable, yet stylish vehicle Tertiary Market
Bloggers, those who participate or view online diaries, podcasts, or other forms of social media
Important to influencing the perception of brands
Target Market Situation AnalysisIntroduction Comm. Strategy Execution
5.a. Target Markets Honda’s target market is characterized by consumer attitude, behavior, and lifestyle information. However, there are other criteria that need to be considered a valid segment for this market. These criteria include age, professional status, education, income, and the actual/potential need for transportation. Honda largely targets individuals who are matured, educated, have a profession, but are still conscious of pop culture image and style trends. Honda produces vehicles that meet the demands of this lifestyle, creating cars of aesthetic appeal and value. Honda also targets those who have a professional status because they attain the buying power to purchase automobiles. According to secondary research found in the Honda Training Manual 2010, average income of Honda buyers ranged from $35,000 – over $100,000. The most affordable vehicle that Honda carries starts at $20,000. Lastly, Honda targets those who have a need for their products, which are potential automobile consumers. Of these potential buyers, Honda targets those who desire a car that is fun, safe, and environmentally friendly. Honda currently targets sociable, success-driven consumers that have active lifestyles and are style and image conscious, yet intelligent and value-savvy. Honda has identified two broad target markets that fit these characteristics. Honda has named their first market “Young Professional Couples.” These couples are Generation Y newly weds, with no children, and earn of average household income of $70,000. Young Professionals have thriving careers and are enjoying the benefits of “couple hood.” Honda’s second target market is “Older Professional
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Couples.” These couples are Baby Boomers, earning a $90,000 household income, and have grown children that have moved away. Older Professionals are retired and beginning their second careers. Honda believes young couples are needed to pilot the next generation of the company’s automobiles, while older couples are loyal Honda consumers they must nurture. Honda’s primary markets are individuals in middle and upper socio economic classes, financially stable, and desire to purchase a vehicle. They are 25-34 year old individuals who have graduated from college, and are now past entry levels in their professions. They are style conscious, and consider value a priority in their automobile purchases. Slide 32
Primary Market
Middle and Upper socio economic classes
Financially stable
Desire to purchase a vehicle
Style conscious
Considers value
Secondary Market
Entry-Level buyers
Desire an affordable, yet stylish vehicle Tertiary Market
Bloggers, those who participate or view online diaries, podcasts, or other forms of social media
Important to influencing the perception of brands
Target MarketSituation AnalysisIntroduction Comm. Strategy Execution
Honda’s secondary market consists of Entry-Level buyers. They are individuals ages 18-25 that have not yet entered their first professional career. Their parents often act as cosigners on loans since they do not have the funds available yet. They desire an affordable, yet stylish vehicle to enter the young professional stage in their lives. To gain more insight on Honda, primary research conducted at San Diego State University surveyed 150 students to determine the perception of their brand. Results showed that among the other companies Honda ranked number 1 for Safety (38%), Fun (36%), and environmentally consciousness (48.7%). The research also showed that Honda ranked number 1 overall among competitors (42.7%). A Likert Scale was also included in the survey having respondents rank Honda cars from 1 (Weak) to 6 (Strong) based on certain attributes. On Average, Honda scored a 4 for Fun, 5 for Safe, 6 for Fuel Efficient, 5 for stylish, 5 for value, and 5 for great resale value.
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Slide 33
Primary Market
Middle and Upper socio economic classes
Financially stable
Desire to purchase a vehicle
Style conscious
Considers value Secondary Market
Entry-Level buyers
Desire an affordable, yet stylish vehicle
Tertiary Market
Bloggers, those who participate or view online diaries, podcasts, or other forms of social media
Important to influencing the perception of brands
Target MarketSituation AnalysisIntroduction Comm. Strategy Execution
Slide 34
Jeunes Diplômés
Target Market Cont. Situation AnalysisIntroduction Comm. Strategy Execution
After analyzing data, our team has decided to target the older collegiate and entry level professional market, with an age range of 20 to 28 and an annual income range of $30,000 to $65,000. Honda caters to all aspects of this target market’s desires through its fun, safe, and environmentally conscious campaign. According to research, Honda is already a top ranked brand in this segment’s evoked set. This market has strong potential for a campaign that has longevity and flexibility. By targeting this young market, Honda can create a strong positive brand image that will stay with them well into the future. This brand image will make them brand loyal as the years progress.
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Slide 35
Customer Profile: JD
1. Age: 222. Location: San Diego, CA 3. Education Level: College Senior (Last Semester)4. Job: Internship at a small investment firm5. Interests: Television, movies, learning French6. Hobbies: Playing guitar, photography, following
Pro Sport fantasy leagues
What he’s thinking right now:
What he’s worried about right now:
Target Market Cont. Situation AnalysisIntroduction Comm. Strategy Execution
Honda’s primary market is individuals in middle and upper socio economic classes, financially stable, and desire to purchase a vehicle. These individuals have graduated from college, and are now past entry levels in their professions. They are style conscious, and consider value a priority in their automobile purchases. Honda’s secondary market is what they call Entry-Level buyers. They are college students that have not yet entered their first professional career and their parents as cosigners on loans. Honda knows college students are generally cash-challenged, so the Civic, and often Certified Pre-Owned Civics are the cars that appeal to and are marketed to that demographic. Advertising content is designed to appeal to 18-25 year olds, with appropriate graphics and verbiage. They desire an affordable, yet stylish vehicle to enter the young professional stage in their lives.
Honda’s tertiary market includes those who contribute to blogs, online diaries, podcasts, twitter.com, facebook.com, or other forms of social media. The Internet has become the most popular medium for information seeking and social media popularity is soaring simultaneously. According to doshdosh.com people are likely to solicit advice from blogs, etc. and follow their advice. Therefore, it is important that Honda cater to these targets in order to maintain a good brand image.
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Slide 36
Target Market + Others reached via marketing communications, to include:
General press/ Automotive specialty press
Media companies
Bloggers
Honda Staff
Target Audience Situation AnalysisIntroduction Comm. Strategy Execution
5.b. Target Audience
Our target audience consists of members of our target market as well as other individuals and groups we plan to communicate with via marketing communications. Our target market are older undergrads, recent graduate students and young entry-level professionals looking for their first car, as a right of passage when they enter this new life stage. Other members of our target audience consist of the general press and the press specialized in cars, media companies, bloggers, and Honda salesmen and employees. It is vital that we reach all of these groups in order to effectively deliver our messages, maintain a strong image that will resonate with the entire target audience and most importantly, the target market.
We have decided to target employees, press, and bloggers in order to create an ongoing cycle of information that will effectively reach our target market. By reaching these members they will spread the word about Honda and we need to make sure they do so in a positive way. We have to target the press and the media because we want them to talk about the company. It is a good way to communicate efficiently and for free. Reaching these individuals will permit us to gain attention from our target market more easily, efficiently and effectively.
In order to capture the attention of this target audience, we plan on creating press releases for the media and maintaining and improving relationships with Honda employees and salesmen. Firstly, the media receives a lot of demands everyday; they are often very busy and are going to pay attention only to clarified press releases. Working quickly and proactively is imperative. Journalists tend to report the first information they get. The media should be given as much information as possible and we must be able to deliver valuable, accurate information in a timely fashion. Secondly, the company’s relationship with its employees and salesmen are essential in maintaining a positive reputation. Keeping good relations and providing a pleasant work environment within the company is fundamental to Honda’s success.
In order to take advantage of our economies of scale to work quickly and efficiently, we are going to spread the information to the media only. In fact, the media will keep spreading the
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message to the entire world, so bloggers will get the information and use it for their blogs. In doing this, we will be able to reach all of our target audience easily and rapidly. Our target audience is going to aid the delivery of our new campaign to the target market. The media, the bloggers and the employees are primordial targets if we want our campaign to be a success.
Slide 37
Brand Image
Build the brand image amongst the target market
Focus on communicating specific values
Fun, Safety, Environmental friendliness
Media
Print, streaming video, direct marketing, internet, outdoor
Cause Marketing
Support a cause relevant to our target market
Communication ObjectivesSituation AnalysisIntroduction Comm. Strategy Execution
6.a. Communication Objectives Our primary communication objectives are to increase the members of our target audience who perceive Honda cars as #1 in fun by 23.5%, safety by 21.3% and environmental friendliness by 14.4%. Since 36% of our respondents ranked Honda number one for fun, 38% in safety, 48.7% in environmental consciousness, and 42.7% overall, we feel that our target brand image increases are appropriate. We will implement our plan and reach our objectives within the 2.5-year life of the campaign.
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Slide 38
Brand Image
Build the brand image amongst the 18-24, educated market
Focus on communicating specific values
Fun, Safety, Environmental friendliness
Media
Print, streaming video, direct marketing, internet, outdoor
Cause Marketing
Support a cause relevant to our target market
Communication ObjectivesSituation AnalysisIntroduction Comm. Strategy Execution
Slide 39
Brand Image
Build the brand image amongst the 18-24, educated market
Focus on communicating specific values
Fun, Safety, Environmental friendliness
Media
Print, streaming video, direct marketing, website, outdoor
Cause Marketing
Support a cause relevant to our target market
Communication ObjectivesSituation AnalysisIntroduction Comm. Strategy Execution
In order to reach our target brand image increases, we will illicit advertising, public relations, direct marketing and the internet. We plan to coordinate our marketing and public relations efforts to create a synergistic effect that will improve Honda’s overall brand image more than either if implemented alone. We will also construct a website and social media platform dedicated to supporting the campaign and delivering information about Honda’s superiority with respect to our image objectives. We believe these media will coordinate to meet our objectives most effectively.
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We must create and place advertising messages to appropriately reach our target market. For this purpose, we will place advertisements on media we have identified as attractive to 18 to 24 year olds with at least some college experience. These media must also have a tendency to attract consumers likely to purchase Honda or competing brand’s models directed toward this demographic. For this purpose, we will place ads on magazines, websites and TV shows which have both a high readership in the 18 to 24 year old educated market, and have shown a high proportion of audience members who have purchased models such as the Civic, Accord, Toyota Camry and the Ford Mustang. By doing so, we believe we will reach a high frequency of our target market, and effectively increase their support of the Honda image.
By using the Internet, a medium that the collegiate market are comfortable with and prefer, we hope to increase the effectiveness and reach of our messages. We will also use additional media to support, bring more visitors to and generate more interest in our Internet campaign. By using these additional media we will also generate buzz and create a viral effect leading to further interest in the campaign.
Basing our campaign on the Internet will also be beneficial to our communication objectives, and will help reach our target audience more effectively. The Internet is increasingly and definitively a preferred medium of our target market. According to a study by ClickZ magazine, 40 % of college students watch 10 or more hours of TV per week, while only 17 % watch 10 or more hours of TV. When asked which medium they would rather give up, more college also students said TV. However, the study also indicates; “Campaigns spanning more than one medium are 50 percent more likely to get a response from college students and recent grads.” This is why our campaign will include other media, which will direct consumers toward and bolster our online base.
By using social media we plan to aid our communications as well as our budget goals. Today, 65% of college students are part of a social media network, making this media an essential platform for our campaign to reach. Social media is also an excellent choice for a small budget. This medium will be particularly beneficial to Honda in terms of budget, due to recent cuts in R & D expenditures. Social networking is also one of the top ways viral marketing campaigns get started. This could prove particularly beneficial since “going viral,” is a major communication objective of our campaign.
Creating a “buzz” and trying to “go viral,” will be an essential part of our campaign for several reasons. Word of mouth is the number two way people find out about new websites, second only to search engines. 9 of 10 U.S. adult Internet users share content with others via email. 88% of internet users share humorous content, jokes and cartoons. This may be a reason to use humor appeals in our creative strategy. In order to go viral, we will have to effectively get posted on blogs and message boards, use optimized press release, direct email marketing and social media websites. Going viral will be extremely beneficial to our campaign, and could greatly increase awareness interest and recall.
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Slide 40
Brand Image
Build the brand image amongst the 18-24, educated market
Focus on communicating specific values
Fun, Safety, Environmental friendliness
Media
Print, streaming video, direct marketing, internet, outdoor
Cause Marketing
Support a cause relevant to our target market
Communication ObjectivesSituation AnalysisIntroduction Comm. Strategy Execution
Because our objectives relate to brand image we feel that public relations is essential and necessary to create synergy in our campaign, as effective public relations are key to establishing a positive, strong brand image. Since we are not targeting the general public, but a narrow demographic segment, we have decided that cause related marketing is an efficient and effective means of public relations. Association with a cause has proven to increase differentiation and generate favorable publicity. 80% of consumers say they have a more positive image of companies that support a cause. For example, BMW’s sponsorship of the Susan Komen Breast Cancer Drive led to a significant increase in sales and brand image. Wendy’s, Aspirin, Visa and Evian have all seen similar results after implementing cause-marketing programs. Cause marketing is also intended to be a very targeted form of PR, which will prove beneficial if tailored to our target market and our communications objectives.
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Slide 41
No specific sales/ market share objectives
Offer little guidance for promotional development
Marketing communications do not have an immediate impact
Consumers must be in the market
Passive approach
Focus on creating favorable predispositions
Make Honda #1 among all auto brands
Marketing ObjectivesSituation AnalysisIntroduction Comm. Strategy Execution
Slide 42
No specific sales/ market share objectives
Offer little guidance for promotional development
Marketing communications do not have an immediate impact
Consumers must be in the market
Passive approach
Focus on creating favorable predispositions
Make Honda #1 among all auto brands
Marketing ObjectivesSituation AnalysisIntroduction Comm. Strategy Execution
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Slide 43
No specific sales/ market share objectives
Offer little guidance for promotional development
Marketing communications do not have an immediate impact
Consumers must be in the market
Passive approach
Focus on creating favorable predispositions
Make Honda #1 among all auto brands
Marketing ObjectivesSituation AnalysisIntroduction Comm. Strategy Execution
6.b. Marketing Objectives
According to Honda senior VP of Marketing, Steve Center, Honda’s corporate objectives follow a passive structure, in that they do not set specific market share goals for any given year. Instead, they allow the market share to “fall where it will” based on the volume of the market in any given year. This passive approach allows Honda marketers to focus primarily on communications objectives relating to brand image. According to Center Honda’s primary goal is “to be number 1 in rank among all auto brands.”
Honda is, in fact, currently viewed as number 1 in fun, safety and environment, which has a mental impact on consumers who value these characteristics. In terms of Environment, Honda was rated “leader in alternative fuels,” by DYG (Daniel Yankelovitch Group,) and “most committed to the environment” by GFK customer research. Proprietary survey research has also placed Honda as number one in fun and safety within cars of its class. These factors will have an impact on market share because consumers with this perception will look to Honda first in their evoked set when it comes time for a new car purchase.
Our primary research supports the fact that our niche holds similar perceptions to the overall market and has allowed us to set specific benchmarks and objectives. When asked to rank Honda cars among top competitors, 36% of our respondents ranked it number one for fun, 38% in safety, 48.7% in environmental consciousness, and 42.7% overall. These percentages represent that Honda holds the number one spot in each of the criteria. After analyzing trends in our target market’s perception of Honda compared to top competition we have reached specific benchmarks for improvement. We will increase the lead in safety by 23.5%, for a total of
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61.5% of the respondents ranking Honda number one. We will increase the lead for fun by 21.3%, for a total of 57.3%, and environmental consciousness by 14.4%, for a total of 63.1%. By increasing Honda’s lead in these criteria among our target market we can inherently boost market share. We plan to “increase the gap” of Honda’s current lead in consumer perception, by converting the attitudes of consumers in the collegiate market who do not already hold Honda as number 1, and strengthening the beliefs of those who do. By accomplishing this, we can bring Honda to the forefront of our markets evoked set when it comes time for a new purchase, which can be particularly beneficial for the older colligates, who are entering a new life stage and may consider new cars in the near future. We plan to accomplish an increase in this gap by the end of our campaign, and have identified a sequence of events we must take to do so.
Slide 44
Primary Research
Social MediaTwitter
To conduct primary research we chose to use a survey vehicle to gather opinions and
preferences on different auto manufacturer brands and the values that consumers associated with each
brand (See Appendix 4.a.1.).
We then sampled two hundred students at San Diego State University using appropriate
standardized marketing research methods. We compiled the data into the data organization and analysis
program, SPSS (See Appendix 4.a.2.)
Our analysis of the data provided three key results:
1. Honda is the top brand ranked #1 in the Fun category, at 36%
2. Honda is the top brand ranked #1 in Safety, at 38%
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3. Honda is the top brand considered #1 in Environmental Friendliness,
at 49%
Our results with these values proved consistent with the information our client Honda Motor Co
provided us. Their prediction from their own research was that Honda is ranked by consumers as being
the number one automobile that is considered, fun, safe, and clean (environmentally friendly). From our
own primary research, we found this to be true, even when transferred specifically to the San Diego State
University market.
Other interesting results we found were that college students placed a high emphasis on price,
fuel economy, and reliability as being key features that are most important in an automobile.
Slide 45
“Consumer Sweet Spot”
Recently entered or approaching a new life stage
Cognitive dissonance
Honda will help them transition
Allow the driver to be both responsible and free spirited
Supporting evidence
Technology
Fun = free spirit
Safety/Environment = responsible
Big IdeaSituation AnalysisIntroduction Comm. Strategy Execution
Our advertising must focus on increasing our target market’s image of the Honda brand, in terms of fun, safety and environment. Messages must relate to 18 to 24 year old consumers with at least some college experience. In order to reach this target market we will explore the segment’s psychographic profile, and design our messages accordingly. Certain insights about this group will help us tailor messages to efficiently communicate with the market. These consumers are either approaching, or have recently entered a new life stage as college graduates. For many of them, a new car will be their rite of passage after
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graduating and entering the full time work force. They will be feeling some degree of cognitive dissonance, as the new life stage may be quite different and present them with entirely new challenges. We plan to leverage their anxiety, and use it to construct a campaign that portrays Honda as a brand that will help them through this transition. Slide 46
“Consumer Sweet Spot”
Recently entered or approaching a new life stage
Cognitive dissonance
Honda will help them transition
Allow the driver to be both responsible and free spirited
Supporting evidence
Technology
Fun = free spirit
Safety/Environment = responsible
Big IdeaSituation AnalysisIntroduction Comm. Strategy Execution
We want consumers to look at Honda as the friend that will accompany them and help them transition into their new life stage, no matter what the circumstances. The consumer must feel assured that they can be professional, productive members of the work force and still be the same free spirits they were in college. Honda is the brand that will allow them to be both professional and free spirited.
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Slide 47
“Consumer Sweet Spot”
Recently entered or approaching a new life stage
Cognitive dissonance
Honda will help them transition
Allow the driver to be both responsible and free spirited
Supporting evidence
Technology
Fun = free spirit
Safety/Environment = responsible
Big IdeaSituation AnalysisIntroduction Comm. Strategy Execution
We will support this message with specific evidence with respect to Honda features. We will point out that Honda has continuously proven #1 in safety and environment. These features relate to the idea of being a responsible member of society. We will also highlight the continuously innovative performance technology that makes Honda #1 in fun. These features will allow the consumer to be a free spirit. We will tell the consumer specifically how Honda allows them to be both free spirited and responsible, which will make our messages believable and actionable. We must also address certain industry trends, when creating our message delivery. Due to the economic downturn and an increased focus on “green” initiatives, consumers have become more concerned with fuel efficiency. As a result, fuel-efficient cars are in high demand, and Hybrid purchases predicted to reach record highs in the coming years. We must take advantage of this trend by highlighting Honda as the leader in environmental friendliness. We must stay focused on fun, safety and environment, and design messages that will increase our target market’s image of Honda in these areas. We must highlight specific features that assert Honda’s dominance. We believe our creative idea will complement this objective, and will lend itself to messages that will effectively reach the target market.
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Slide 48
Media and Creative StrategySituation AnalysisIntroduction Comm. Strategy Execution
6.c. Marketing Communications Objective Sequence In order to create awareness of our campaign amongst our target audience, we will begin with Outdoor, Internet, and print advertising. These advertisements will be mostly visual, and contain a simple message, they will not contain argumentative or benefit related copy. The objective of this initial advertising is to reach a 90% awareness of the new campaign among our target audience. At this stage, we will not try to change minds, only to build awareness (See Appendix 6.c.1.).
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Slide 49
Print MediaSituation AnalysisIntroduction Comm. Strategy Execution
We used data from GfK Mediamark Research & Intelligence to determine which media vehicles we would use for marketing communications. Using MRI we have identified media attractive to our target market, 18 to 24 year olds with at least some college experience. These media vehicles ALSO have a tendency to attract consumers likely to purchase Honda models or competing brand’s models, that are marketed to our population of interest. For this purpose, we will place ads on magazines, websites and TV shows which have both a high readership in the 18 to 24 year old educated market, and have shown a high proportion of audience members who have purchased models such as the Civic, Accord, Toyota Camry and the Ford Mustang. By doing so, we believe we will reach a high frequency of our target market, and effectively increase their support of the Honda image. The following magazine vehicles have a significantly large readership from our population of interest (18-24, higher education) and a significant population of readers who have purchased a Honda Civic, Accord, Toyota Camry or Ford Mustang in the past 6 months; * Elle * New Yorker * Lucky * Spin * Men’s Journal * Wired * Motor Trend * Maxim
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Slide 50
AD 1 NO COPY
We will implement print ads throughout the campaign in order to assist our communication objectives. In order to maintain the strategy stated in our “big idea,” the ads stress fun, safety and environment, while illustrating Honda as the brand that will help our target market make the transition into a new life stage as college graduates. We will alter the copy of the ads at each sequential stage of the campaign, in order to most effectively match each corresponding objective. We will place the ads in magazines that have demonstrated a high proportion of readers that are 18-24 and have a tendency to buy automobile models directed to our market. The idea of the ads is to create the image of two different worlds meeting on one page. A model roughly the age of our target market stands at the center of the page, in front of one of the Honda cars directed to our target market. The page splits in half, on one side the model is portrayed as a professional in business attire and the background relates to the business world. On the other side the model is portrayed as free-spirited, laid back and fun. These ads are intended to align the Honda car with the ability to be both free spirited and professional. We will release our print ads early on in the campaign, in order to aid a 90% awareness among our target market. These ads will include no copy, as their objective is only to make viewers aware of the Full of Life campaign, not to convince them of superiority.
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Slide 51
Ad 2 no copy
Another Print ad with similar theme, still with no copy.
Slide 52
BILLBOARD
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We will use the same copy-less ads used in print on billboards. These billboard advertisements will be placed in high populated college areas. We will implement them early in the campaign, as a “teaser” to the remaining media action. These areas that we place billboards will correspond with the areas we plan to visit during the green fleet contest, (to be discussed in a later slide.) Advertisements will contain the same image as the magazine advertisements in order to achieve reach and frequency within our target market. It will cost approximately $8,190,000.00. We will measure the effectiveness of this outdoor medium we will use Simmons Marketing Research Bureau which provides demographic data, and exposure. (See Appendix 9.g.1.)
Slide 53
Social Media
9.a. Internet & Interactive Media The Honda Full Of Life web site, FullOfLife.com, will act as an online extension of the campaign. This digital medium is meant to achieve several objectives to include: featuring specific qualities of Honda such as fun, safe and environmentally friendly technology, connecting fans and consumers, leveraging social media, and promoting other aspects of the campaign, such as the Green Fleet contest. Ultimately, the web site will be built to increase brand image, generate interest, and create buzz for the Full Of Life campaign (See Appendix 9.a.1.). The content for FullOfLife.com will cover overviews of the campaign and the overall Honda brand. Social media tools will be leveraged throughout the site. Users on the site will be able to connect with Honda and other consumers on different levels of interactivity under the
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Media Center—YouTube for videos, Facebook for pictures, Twitter for consistently streaming updates, and other elements such as wallpapers and games. Other content includes information about Honda’s upcoming contests and events, options for newsletter sign-ups, and an updated blog. The blog itself will document the execution stages of the campaign. News surrounding the campaign will also be available on the site. All content is created to encourage users to participate and become part of the Full Of Life campaign. The site itself will reflect our target market, collegiate students. Like other Honda web sites, FullOfLife.com will be clean and organized for a better user experience. However, we will take a more liberal and youthful approach when it comes to the style and content of the site. Transparency is key; we want our consumers to feel like this site is a major congregation of other young Honda buyers. We will measure the success of our Internet and social media initiatives using analytics software, trackable URLs, direct request, and keyword search terms. Analytics software will measure the views, visits, and clicks of the user’s experience to evaluate the perception of the Honda brand. Trackable URLs show where visitors come from, and whether the visit originated with a banner or video player ad. That way, we will know which online ad buys are driving the most traffic to our website. Direct request and keyword search terms can also be a good indicator of online brand value. We will use these metrics as an indication of brand value change over the course of the campaign. After implementing these techniques, we will be able to measure the progress of our internet initiatives, the success of our internet and social media campaign. We will also be able to determine which areas need improvement, and can then begin to optimize those areas.
Slide 54
Internet Advertising VehiclesSituation AnalysisIntroduction Comm. Strategy Execution
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We used data from GfK Mediamark Research & Intelligence to determine which media vehicles we would use for marketing communications. Using MRI we have identified media attractive to 18 to 24 year olds with at least some college experience. These media vehicles also have a tendency to attract consumers likely to purchase Honda models or competing brand’s models, that are directed toward our population of interest. For this purpose, we will place ads on magazines, websites and TV shows which have both a high readership in the 18 to 24 year old educated market, and have shown a high proportion of audience members who have purchased models such as the Civic, Accord, Toyota Camry and the Ford Mustang. By doing so, we believe we will reach a high frequency of our target market, and effectively increase their support of the Honda image. The following Internet vehicles have a significantly high visit-rate from our population of interest (18-24, higher education) as well as a significant population of visitors who have purchased a Honda Civic, Accord, Toyota Camry or Ford Mustang in the past 6 months; * Youtube.com •AolSports.com •NBC.COM •Yahoo.com •Facebook.com •Twitter.com
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Media and Creative StrategySituation AnalysisIntroduction Comm. Strategy Execution
After we establish awareness, we will begin to implement streaming video in addition to the media all ready in place. These advertisements will stress the specific benefits of Honda’s safety features, fun factor and environmental friendliness. At this stage we will ad copy to the print ads and focus on image building. We will not include argumentative or competitive copy. We will also create a website specific to the campaign, containing information about Honda's benefits in terms of fun, safety and environment. Our objective during this stage of the campaign will be to induce a 60% recall of our messages amongst the target market (See Appendix 6.c.2.). We will than launch a cause-marketing event in order to assist with recall objectives, while escalating brand image. Our first task will be to construct a press release introducing the event, which will draw attention from the press, and in turn generate more awareness amongst our target market. By making our information timely, newsworthy and including keywords we could more effectively become posted on blogs and message boards. This will increase the amount of sites linking back to our campaign, which will increase awareness, as well as search rankings.
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Paid Media AdvertisingSituation AnalysisIntroduction Comm. Strategy Execution
South Park
Always Sunny in Philadelphia
The Office
Jersey Shore
We used data from GfK Mediamark Research & Intelligence to determine which media vehicles we would use for marketing communications. Using MRI we have identified media attractive to 18 to 24 year olds with at least some college experience. These media vehicles also have a tendency to attract consumers likely to purchase Honda models or competing brand’s models, that are directed toward our population of interest. For this purpose, we will place ads on magazines, websites, networks and TV shows which have both a high readership in the 18 to 24 year old educated market, and have shown a high proportion of audience members who have purchased models such as the Civic, Accord, Toyota Camry and the Ford Mustang. By doing so, we believe we will reach a high frequency of our target market, and effectively increase their support of the Honda image. The following broadcast vehicles have a significantly high viewership from our population of interest (18-24, higher education) as well as a significant population of viewers who have purchased a Honda Civic, Accord, Toyota Camry or Ford Mustang in the past 6 months Their respective websites follow the same trend, as mentioned in the Internet section; * MTV (Jersey Shore) • Comedy Central (South Park) • NBC (The Office) • FX (It’s always Sunny in Philadelphia)
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The statistics on T.V. show advertising prices have been evaluated using Ad Age’s Fall 2009 data. There are various shows to run commercials on; however our choices of The Office, Jersey Shore, South Park, and Always Sunny, best solidify our targeted demographics. The four shows incorporate those who are between the ages of 25-35 and are within the $80,000-$120,000 income bracket. Slide 57
The Other 9-5
Teaser commercial used in the summer months meant to entice viewers to visit the Full of Life website
Have target audience associate “positive feelings” with the Honda Brand
Exhibit the different lifestyles that JDs balance everyday
Online Teaser AdvertisementSituation AnalysisIntroduction Comm. Strategy Execution
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Slide 58
PRINT W/ IMAGE COPY
During the next phase, in order to aid with the objective of 60% recall, we will include image building copy. This ad contains image-building copy, and will supplement the recall objectives of our campaign. The copy reads; “Honda’s IVTEC engine is more fuel efficient, and higher performance than ever, allowing you to be a responsible member of society, and a free spirit.” It stresses the specific benefits of Honda’s IVTEC technology, in terms of fun and environmental friendliness, with a message on strategy and relevant to the target market.
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Slide 59
AD 2 COPY
This is another ad with image-building copy, we will implement during the recall phase of the campaign. The copy stresses the specific benefits of Honda’s safety features, and equates them with the ability to be responsible, and free spirited. Slide 60
Which University can design the most effective environmental-action movement
$100,000 budget
Incentives
$10,000 scholarship
Green Fleet edition Honda CRZ
Jack Johnson Concert at winning University
Events at competing universities
Webisode series to document team’s progress
Cause Marketing
The Honda Full of Life
Green Fleet Contest
Situation AnalysisIntroduction Comm. Strategy Execution
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9.e.i. The Green Fleet Contest During the “Green Fleet Contest” contestants will compete to create the best environmental-action movement. Individuals or student groups of 5 or less will submit a “Green Fleet” application in which they will explain how they would allocate a $100,000 budget to most effectively raise environmental awareness and help improve the environment. A board of judges will select five individuals or university-teams, based on the quality of their proposal. They will then have the opportunity to implement their movement, funded by Honda.
Slide 61
Which University can design the most effective environmental movement
$100,000 budget
Incentives
$10,000 scholarship
Green Fleet edition Honda CRZ
Jack Johnson Concert at winning University
Events at competing universities
Webisode series to document team’s progress
Cause Marketing
The Honda Full of Life
Green Fleet Contest
Situation AnalysisIntroduction Comm. Strategy Execution
The winner will be the individual or group who best allocates the funds provided to the most effective campaign, which the board of judges will determine. The winning group will each receive a $10,000 scholarship, a Green Fleet edition Honda CRZ and an Jack Johnson concert at their University.
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Slide 62
Which University can design the most effective environmental movement
$100,000 budget
Incentives
$10,000 scholarship
Green Fleet edition Honda CRZ
Jack Johnson Concert at winning University
Events at competing universities
Webisode series to document team’s progress
Cause Marketing
The Honda Full of Life
Green Fleet Contest
Situation AnalysisIntroduction Comm. Strategy Execution
In order to generate buzz, Honda will sponsor an event at each of the participating universities. During the events, the “Green Fleet,” a group of green Honda automobiles equipped with emission reducing, performance and safety enhancing technology will be placed on campus. The fleet will consist of models targeted to our market, such as the Accord, Civic, and the new CRZ. Honda representatives will be stationed next to the green fleet, and will hand out informational flyers about the contest, along with Honda key chains, and prompt students to sign the mailing list (See Appendix 9.e.i.1.). They will also be their to assist with questions about the cars themselves. We will send direct emails to members of the mailing list, with information about the “Full Of Life” campaign newsletters. There will be a kiosk in a central area on campus where students who join the FullOfLife.com website and/or Honda Facebook fan page. The kiosk will also explain the benefits of a green life and overall, increase understanding of the Green Fleet contest. We will also create a press release in order to reach important members of our target audience (See Appendix 9.e.i.3.). We will draw bloggers attention, which will in turn feed the story to the press. The press will issue stories about the contest, which will reach our target market. The optimized press release will also increase search engine rankings, and increase traffic to the website, where they will find information regarding all aspects of the contest, as well as the rest of the “Full Of Life,” campaign.
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Slide 63
Which University can design the most effective environmental movement
$100,000 budget
Incentives
$10,000 scholarship
Green Fleet edition Honda CRZ
Jack Johnson Concert at winning University
Events at competing universities
Webisode series to document team’s progress
Cause Marketing
The Honda Full of Life
Green Fleet Contest
Situation AnalysisIntroduction Comm. Strategy Execution
A “webisode reality series” featuring the five finalists will follow each as they embark on their mission. These webisodes will give us an opportunity to take green fleet viral. We hope to increase awareness and interest in the campaign, and follow brand image goals simultaneously.
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Slide 64
Aligns Honda with two causes
Environment
Higher Education
Opportunity to go viral
Webisodes
Takes advantage of star power
Jack Johnson
Cause Marketing
The Honda Full of Life
Green Fleet Contest Cont.
Situation AnalysisIntroduction Comm. Strategy Execution
The goal of the Green Fleet contest is to increase awareness and recall for the "Full Of Life" campaign, and to increase the Honda brand image amongst the target audience. The contest will create a positive image through the movement itself, as cause marketing has proven to increase differentiation, generate positive publicity and increase brand image in past campaigns, such as BMW, Wendy's, Evian and Aspirin. The contest will also promote Honda’s specific features in terms of fun, safety and environment. The contest will communicate messages promoting the features that make Honda #1. It will also direct consumers back to the "Full Of Life" website, where they will be able to find all types of information regarding Honda features, promotions, etc.
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Slide 65
Aligns Honda with two causes
Environment
Higher Education
Opportunity to go viral
Webisodes
Takes advantage of star power
Jack Johnson
Cause Marketing
The Honda Full of Life
Green Fleet Contest Cont.
Situation AnalysisIntroduction Comm. Strategy Execution
A “webisode reality series” featuring the five finalists will follow each as they embark on their mission. These webisodes will give us an opportunity to take green fleet viral. We hope to increase awareness and interest in the campaign, and follow brand image goals simultaneously.
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Slide 66
Aligns Honda with two causes
Environment
Higher Education
Opportunity to go viral
Webisodes
Takes advantage of “star power”
Jack Johnson
Cause Marketing
The Honda Full of Life
Green Fleet Contest Cont.
Situation AnalysisIntroduction Comm. Strategy Execution
Jack Johnson will hold a concert at the winning university on earth day, and will meet with the members of the winning group to personally congratulate them. We chose Jack Johnson because his cultural meanings are directly in line with the objectives of the contest. He has a heavy fan base of 18-24 year old college students, and he has shown extraordinary vigor for environmental initiatives through contributions, charity concerts and even stepping up as the president of a Hawaiian environmental agency. Jack will also meet with the group to congratulate them personally. The encounter will be showcased in the webisode series. This should increase the likelihood of the webisode series going viral, exponentially.
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Green fleet cars
A traditional “Z” pattern banner-ad showing the actual “Green Fleet” of Honda vehicles that will be visiting each finalist university
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Slide 68
Green fleet Flyer
This is an Internet ad for the Green Fleet Contest. It follows the half & half theme of the Full of Life campaign, but with a twist. The creative approach is designed to enhance interest and awareness for the contest, and follow the brand image goals of the campaign as a whole. The ad follows a “Z” pattern, with interest generating copy in the upper left, image in the center-right, and Tagline with call to action, starting in the bottom left. The interest-building copy reads; Earn a scholarship, Win a Honda, Bring Jack Johnson to your university, Help save the environment. The image follows the concept of half & half, and aims to convince students to be a college student, and an environmental crusader. The tagline; “You can be a student… and a member of Honda’s Green Fleet.” the call-to-action; “Find out how at Honda.com/greenfleet” The call to action encourages students to visit the website, where they will obtain further understanding;
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Media and Creative StrategySituation AnalysisIntroduction Comm. Strategy Execution
We must than spark interest in our target market by utilizing star power, and promoting with social media (See Appendix 6.c.3.). The target market must be comfortable with this celebrity, and they must embody cultural meanings that match the desired brand image of fun, safe and environmentally friendly. Social media will allow our market to communicate with each other as well as the company, and find information related to the campaign. At this stage we hope to achieve a 50% interest among the target market.
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Slide 70
Jack Johnson
A flier for the Jack Johnson Concert at the winning university. Again, following the half & half campaign theme for Full of Life.
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Social MediaTwitter
9.b. Social Media In addition, all pages on our Full Of Life web site will contain a social media bar at the bottom. This will allow easy access to our social media accounts with Twitter, Facebook, and YouTube and will make it very easy to become a Fan, Friend, or Follower (See Appendix 9.a.2.). All of our social media accounts will be aggregated. There will be a social media news feed on the homepage of the Full Of Life website. This will allow users to easily reply to blogs, statuses, and updates, as well as make their own.
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Slide 72
Social Media
9.b. Social Media In addition, all pages on our Full Of Life web site will contain a social media bar at the bottom. This will allow easy access to our social media accounts with Twitter, Facebook, and YouTube and will make it very easy to become a Fan, Friend, or Follower (See Appendix 9.a.2.). All of our social media accounts will be aggregated. There will also be an aggregated social media news feed on the homepage of the Full Of Life website. This will allow users to easily reply to blogs, statuses, and updates, as well as make their own.
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Media and Creative StrategySituation AnalysisIntroduction Comm. Strategy Execution
Our next step is to solidify understanding of our campaign (See Appendix 6.c.4.). In order to do so we will turn to direct marketing. We will create a database by collecting info about members of our target market who have attended the cause marketing events, or viewed the website, social media and other online advertisements. We will than send direct emails to approving users including information and incentives which will stimulate requests for more information, and draw more views to our online media. At this stage of the campaign we expect a 40% level of understanding among the target market.
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E-Mail MarketingSituation AnalysisIntroduction Comm. Strategy Execution
Month: May
Sender: The Honda Green Fleet
Subject Line: Check out the season finale
webisode for Honda’s Green Fleet Contest
Body: Green Fleet contest promotion, Honda
new graduate car deals, featured webisodes,
large graphic, landing page to Full of Life website
and Green Fleet contest, trackable URL
9.d. Direct Marketing Our direct marketing efforts will kick off with compiling mailing lists. Our Full Of Life website will provide an easy-to-find, easy-to-sign up “Join our Mailing List!” feature on the homepage. We will also have Full Of Life volunteers at events, handing out promotional items such as Full Of Life reusable water bottles and key chains. In exchange for a promotional item, we will receive the participant's contact information and e-mail address. With our e-mail mailing lists, we will send out monthly newsletters that are timely, informative, promote the Full Of Life campaign, and offer special features. Some examples of our monthly emails are as follows: Month: April Sender: Honda "Full Of Life" Subject Line: "Happy Earth Day! Get tips on being green, healthy and Full Of Life!" Body: Green Fleet contest promotion, Featured webisodes, Health and Environment, Quick Tips, Landing page to Full Of Life website, Trackable URL Month: May
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Sender: Honda "Full Of Life" Subject Line: "Congratulations graduate! Where will life Life take you now?" Body: Green Fleet contest promotion, Honda new graduate car deals, Featured webisodes, Large graphic, Landing page to Full Of Life website, Trackable URLL Month: November Sender: Honda “Full Of Life” Subject Line: “We thank you for being apart of our Life! What are you thankful for this holiday season? Body: Landing page to post a story/experience that has made you thankful on Full Of Life website, Green Fleet contest update, Trackable URL, Thanksgiving video message compilation from wide, diverse range of Honda employees and executives like custodian, factory worker, salesperson, general manager, HR, president, etc. We will measure the effectiveness of our direct marketing efforts using analytic software, with special attention to trackable URLs, landing pages, and posts and replies to our social media accounts, especially to our active blog.
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Media and Creative StrategySituation AnalysisIntroduction Comm. Strategy Execution
Finally, we will accomplish attitude change by furthering our direct marketing efforts, while continuing our advertising strategy and directing as much traffic as possible to the web site. At this point, we will focus copy on asserting Honda's dominance, and will be competitive. At this stage of the campaign, we hope to reach our final objectives of increasing the members of our target market who perceive Honda as #1 in fun by 23.5%, safety by 21.3% and environmental friendliness by 14.4% (See Appendix 6.c.5.).
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Slide 76
Ad1-competitive copy
During the attitude change phase of the campaign we will alter the copy to be competitive, in order to aid the objective of increasing the proportion of the target market who perceives Honda as #1 in fun, safety and environment. In this ad, we alter the copy to be more competitive, in order to supplement the attitude change phase of our campaign, while promoting specific features supporting fun, safety and environmental friendliness. The copy reads; With features that constantly prove Honda #1 in fun, safety and environmental friendliness, you can be a responsible member of society… and a free spirit. We will measure the success of our print ads at each level of the campaign. In order to do so we will evaluate total audience or readership. This will include total number of primary and pass-along readers measured by circulation average per issue. By doing so we will be able to more effectively evaluate how the print ads are contributing to our communication objectives.
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Slide 77
Media Schedule
Medium Vehicle January February March April May June July August September October November December
PrintMagazines w/ copy
El leNew YorkerLuckySpinMen's JournalWiredMotor TrendsMaxim
Magazines w/ competitive copy
El leNew YorkerLuckySpinMen's JournalWiredMotor TrendsMaxim
Outdoor Bi l lboards
InternetWebs ites
ful lofl i fe.comBanner ads
Youtube.comaolsports .comnbc.comYahoo.com
Socia l Media Facebook.comTwitter.com
Direct Marketinge-mai l Marketing
Public RelationsPress Release
Envoronmental BlogsEvents
Cause Marketing Campaigns
ConcertJack Johnson
Year 3: 2013
6.c. Marketing Communications Objective Sequence In order to create awareness of our campaign amongst our target audience, we will begin with Outdoor, Internet, and print advertising. These advertisements will be mostly visual, and contain a simple message, they will not contain argumentative or benefit related copy. The objective of this initial advertising is to reach a 90% awareness of the new campaign among our target audience. At this stage, we will not try to change minds, only to build awareness (See Appendix 6.c.1.). After we establish awareness, we will begin to implement streaming video in addition to the media all ready in place. These advertisements will stress the specific benefits of Honda’s safety features, fun factor and environmental friendliness. At this stage we will ad copy to the print ads and focus on image building. We will not include argumentative or competitive copy. We will also create a website specific to the campaign, containing information about Honda's benefits in terms of fun, safety and environment. Our objective during this stage of the campaign will be to induce a 60% recall of our messages amongst the target market (See Appendix 6.c.2.). We will than launch a cause-marketing event in order to assist with recall objectives, while escalating brand image. Our first task will be to construct a press release introducing the event, which will draw attention from the press, and in turn generate more awareness amongst our target market. By making our information timely, newsworthy and including keywords we could more effectively become posted on blogs and message boards. This will increase the amount of sites linking back to our campaign, which will increase awareness, as well as search rankings. We must than spark interest in our target market by utilizing star power, and promoting with social media (See Appendix 6.c.3.). The target market must be comfortable with this
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celebrity, and they must embody cultural meanings that match the desired brand image of fun, safe and environmentally friendly. Social media will allow our market to communicate with each other as well as the company, and find information related to the campaign. At this stage we hope to achieve a 50% interest among the target market.
Our next step is to solidify understanding of our campaign (See Appendix 6.c.4.). In order to do so we will turn to direct marketing. We will create a database by collecting info about members of our target market who have attended the cause marketing events, or viewed the website, social media and other online advertisements. We will than send direct emails to approving users including information and incentives which will stimulate requests for more information, and draw more views to our online media. At this stage of the campaign we expect a 40% level of understanding among the target market.
Finally, we will accomplish attitude change by furthering our direct marketing efforts, while continuing our advertising strategy and
directing as much traffic as possible to the web site. At this point, we will focus copy on asserting Honda's dominance, and will be competitive. At this stage of the campaign, we hope to reach our final objectives of increasing the members of our target market who perceive Honda as #1 in fun by 23.5%, safety by 21.3% and environmental friendliness by 14.4% (See Appendix 6.c.5.). Slide 78
Budget Allocation
Media Costs
Internet $10,689,480.00
Outdoor $8,190,000.00
Direct Marketing $64,200.00
Print $14,914,032.00
Event $939,875.00
Production Cost $75,000.00
Total $34,872,587
As requested by our client, we utilized the bottom-up approach when compiling our Media Budget. Our Media Budget is as follows:
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10.1. Media Budget
Internet- $3,880,480.00 Website Design and Development- $800,000 Facebook- $0 Twitter- $0 YouTube-$0 Online Ad Buys- $180,000 Banner Ads Skyscraper Ads Streaming Video- $2,900,480 Jersey Shore: (4 Episodes) (4 Month Coverage) = 629,956
The Office: (24 Episodes) (9 Months of Coverage) = 1,260,000 It’s Always Sunny in Philadelphia: (14 Episodes) (5 Months of Coverage) = 468,000 South Park: (15 Episodes) (8 Months of Coverage) = 615,000
Outdoor- $8, 190,000.00 Billboards Direct Marketing- $64,200.00 Email Marketing Print- $14,914,032.00
Magazines- $14, 914, 032 Elle – 112,115 x 24 Issues = $2,690,760 Spin – 32,440 x 24 Issues = $778,560 Men’s Journal – 19,950 x 24 Issues = $478,800 Wired – 88,533 x 24 Issues = $2,124,792 Motor Trends – 145,000 x 24 Issues = $3,480,000 Maxim – 223,380 x 24 Issues = $5,361,120
Event- $939,875.00 Green Fleet Contest $909,875 Jack Johnson Concert $30,000 Production Costs- $5,175,00.00 Webisode Series- $425,000 Streaming Video Commercials - $4,750,000
TOTAL- $33,163,587.00
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Slide 79
Metrics
Media Vehicle MetricPrint Magazines Total audience or readership by circulation of average per issue
Internet Website Analytics software, trackable URLs, direct requests, keyword search
Banner Ads Analytics software, Clickstream Data, trackable URLs
Skyscrpaers Analytics software, Clickstream Data, trackable URLs
Social Media Analytics software, trackable URLs, direct requests, keyword search, Twitter followers, Facebook Fans, landing pages
Streaming Video Direct requests
Outdoor Billboards Simmons Marketing Research Bureau
Direct Marketing E-Mail Marketing Analytics software, trackable URLs, landing pages, post and replies to social media accounts
Public Relations Press Release Responses to blog, Analytics software, Clickstream data
Events Green Fleet Contest Number of E-Mails generated, number of applicants, Facebook Fans, Twitter followers, Website traffic
Jack Johnson Concert Number of attendees
We will measure the success of our Internet and social media initiatives using analytics software, trackable URLs, direct request, and keyword search terms. Analytics software will measure the views, visits, and clicks of the user’s experience to evaluate the perception of the Honda brand. Trackable URLs show where visitors come from, and whether the visit originated with a banner or video player ad. That way, we will know which online ad buys are driving the most traffic to our website. Direct request and keyword search terms can also be a good indicator of online brand value. We will use these metrics as an indication of brand value change over the course of the campaign. After implementing these techniques, we will be able to measure the progress of our internet initiatives, the success thus far of our internet and social media campaign, and most importantly, which areas need improvement and can later be optimized. We can measure the effectiveness of each online ad buy by tracking click stream data from each ad. We will track which leads generated page views, and the quality of those page views. Analytic software will allow us to determine which advertisements lead consumers to the “Full Of Life” homepage, and to analyze their activity once they have entered the site. We will also rotate different ad formats on each host site, and measure the relative success of each ad. This data will give us an idea which sites, and which ad formats were most effective, and allow us to adjust accordingly.
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We will measure the effectiveness of our direct marketing efforts using analytic software, with special attention to trackable URLs, landing pages, and posts and replies to our social media accounts, especially to our active blog. We will measure the success of our print ads at each level of the campaign. In order to do so we will evaluate total audience or readership. This will include total number of primary and pass-along readers measured by circulation average per issue. By doing so we will be able to more effectively evaluate how the print ads are contributing to our communication objectives. In order to measure the effectiveness of outdoor media we will use Simmons Marketing Research Bureau which provides demographic data, and exposure. Slide 80
Conclusion / Q&A
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12. Campaign Summary We believe that the Full of Life campaign will efficiently achieve our communication objectives, by reaching our target market with messages relevant to them, on the media they prefer, while addressing the issues we identified in the internal analysis. The campaign highlights Honda’s strengths, in terms of fun safety, and environmental friendliness, while taking advantage of market opportunities and minimizes the impact of potential threats and
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weaknesses. We have designed messages that specifically follow insights about our target market in order to do so most effectively. During our target market analysis we identified insights about our audience that helped us design messages specifically tailored to address their concerns. This market is about to, or has recently entered a new life stage as college graduates. They are excited to graduate but anxious about losing the fun, free spirited persona they carried in their college years. The Full of Life campaign leverages their anxiety by presenting Honda as the brand that will help them make the transition. By using insights from our situation analysis, the campaign eases the target market’s cognitive dissonance by nullifying their notion of conflicting ideologies between free-spiritedness and responsibility. In our situation analysis we identified that Honda’s major strengths were related to brand image and innovation, through research and development. We take advantage of these strengths, and use them to aid our goal of improving brand image in terms of fun, safety and environmental friendliness, by highlighting innovations specific to the Honda brand. As such, our ads are believable, actionable, and stress specific benefits of Honda’s fun, environmental, and safe technology. We have designed a series of vehicles that will deliver this message; “Honda’s innovations will allow you to be free spirited, responsible and professional. We also identified that Honda’s weaknesses and threats were related to a decreased promotional budget. In order to address this issue, we adjusted aspects of our promotional execution. Instead of using traditional 30-second broadcast commercials, the Full of Life campaign uses streaming video, a less costly medium that is still highly preferred by our target market. The medium also provides us a very real opportunity to “go viral,” a phenomenon that would synergize the success of our campaign. The cause marketing portion of our campaign takes advantage of the opportunities we identified concerning environmental trends, and aids our brand image objectives. The Green Fleet contest addresses the push toward fuel efficiency and green living, in a way that is relevant and engaging to our target market. In a culture that has lost a degree of faith in the automotive industry, the contest gives Honda the opportunity to shine as a hero, and restore consumer’s faith by providing a valuable service to the community. As previously noted, auto companies aligned with a cause have enjoyed a statistically heightened brand image over those who do not. Considering the market’s current environment, Green Fleet is the perfect sales promotion for the Full of Life campaign. We believe all branches of the campaign are directly in line with our objectives and follow insights about our target market, as well as the market environment. We have designed marketing communications that stress the fun, safety and environmental friendliness of Honda automobiles and that will reach our target market effectively, through the media vehicles they prefer. We have also taken into account societal trends, and incorporated facets that will synergize the campaign’s effectiveness. By doing so we believe the Full of life campaign will reach our target objectives within its 2.5 year life.
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14. Appendix
2.a.iii.1. Financial Data
2.a.iii.2. Operating Income
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2.a.iv.1. Managerial Structure
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4.a.1. Primary Research
Survey:
Honda Brand Survey
First, thank you for taking the time to fill out this survey. Your participation means a great deal to our
research group. The survey is being conducted to gain information that will help us understand the public perception
of the Honda Brand. We hope to use this information to further provide you with a product and service second to
none. The survey will take only a few minutes and will remain strictly confidential.
Please check one answer that best applies to you (unless otherwise noted).
Have you ever owned a Honda automobile?
1. Yes___ No___
(If no skip to Question 4)
2. If Yes, what was the
Year________________
Model_______________
3. I was very satisfied with my Honda:
___Strongly Agree ___Somewhat Agree ___Neutral ___Somewhat disagree ___Strongly disagree
4. What automobile traits are most important to you? (Indicate top 3)
____ Safety ____ Fun ____ Fuel economy ____ Resale Value ____ Style ____ Price ____ Reliability _____________________Other (please specify)
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5. Please rank the following companies in terms of SAFETY (indicate top 3) ____ Honda ____ Ford ____ Toyota ____ Nissan __________________ Other (please specify)
6. Please rank the following companies in terms of FUN (indicate top 3) ____ Honda ____ Ford ____ Toyota ____ Nissan __________________Other (please specify)
7. Please rank the following companies in terms of ENVIRONMENTAL CONSCIOUSNESS (indicate top
3) ____ Honda ____ Ford ____ Toyota ____ Nissan ___________________ Other (please specify)
8. How do you rank the following Automobile companies OVERALL? (Indicate top 3) ____ Honda ____ Ford ____ Toyota ____ Nissan ____________________ Other (please specify)
For questions 9-14, please indicate how strongly you agree with the following statements 1 as being the weakest and 6 being the strongest:
9. Honda cars are fun: 1 2 3 4 5 6
10. Honda cars are safe: 1 2 3 4 5 6
11. Honda cars are fuel efficient: 1 2 3 4 5 6
12. Honda cars are stylish: 1 2 3 4 5 6
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13. Honda cars have great value: 1 2 3 4 5 6
14. Honda cars have great resale value: 1 2 3 4 5 6
15. Gender: ____Male ____Female
16. Age _____
17. Ethnicity: ____ African American ____ Mexican American ____ Other Hispanic ____ Asian/ SE Asian/ Pacific Islander ____ Filipino ____ Multiple Ethnicities ____ White ____ Other (please specify)
18. Which category represents your total family income for 2009?
____ Less than $25,000 ____$25,000 to $45,000
____$46,000 to $75,000
____$76,000 to $100,000
____$100,000 or more
19. What is the highest level of education you have completed? ____ 12
th grade or less (no diploma)
____ High School/ GED ____ Some college, no degree ____ Associate or technical degree ____ Bachelor’s degree ____ Graduate degree/ professional
20. Occupation
Thank you for your time and effort!
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4.a.2. Primary Research Results
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What automobile traits are most important to you?
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Economy
Resale Value Style Price Reliability Other
Automobile Traits
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CONSCIOUSNESS
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6.c.1. Marketing Communications Objectives Sequence
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6.c.2. Marketing Communications Objectives Sequence
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6.c.3. Marketing Communications Objectives Sequence
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6.c.4. Marketing Communications Objectives Sequence
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6.c.5. Marketing Communications Objectives Sequence
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9.a.1. Internet & Interactive Media
9.b.1. Social Media
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9.b.2. Social Media
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9.c.1. Online Ad Buys
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9.e.i.1. PR / Cause Marketing
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9.e.i.3. PR / Cause Marketing
MEDIA ADVISORY
GREEN FLEET: HONDA WILL GIVE U.S. UNIVERSITIES THE OPPORTUNITY TO CREATE A TRUE
ENVIRONMENTAL CRUSADE
The Green Fleet
WHO: College students throughout America who aspire to create a more
environmentally friendly community.
WHAT: Interested students will have the opportunity to compete and create the best
environmental/green movement, in order to become a member of Honda’s “Green
Fleet.” Honda will give five finalist groups $100,000 each, in order to implement their
plans, and each group will document their progress through a series of webisodes.
However, only one group will become the green fleet! The first place winners of the
contest will each receive a $10,000 scholarship, a Green Fleet edition Honda CR-Z, and a
Jack Johnson concert at their university.
WHEN: September 2012- March 2013
WHY: As fuel prices, and the fear of climate change increase, it is our responsibility to become
proactive in cultivating and protecting our environment. Environmentally friendly
transportation is a major concern, and thus Honda has released the GREEN FLEET, a
squadron equipped with unmatched efficiency, and emissions crushing Power.
While transportation is a major concern, in reality the problems with our environment
go far deeper. For this reason, Honda is CALLING OUT to US universities, in order to find
new members of the GREEN FLEET. These new additions to the team will compete to
build a true environmental crusade, reaching all angles of the green spectrum.
CONTACT: John Doe
555.555.555
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9.f.1. Print Ads
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9.f.2. Print Ads
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9.g.1. Outdoor
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9.h.1. Media Schedule
Medium Vehicle July August September October November December
PrintMagazines w/out copy
El leNew YorkerLuckySpinMen's JournalWiredMotor TrendsMaxim
Magazines w/ copyEl leNew YorkerLuckySpinMen's JournalWiredMotor TrendsMaxim
InternetWebs ites
ful lofl i fe.comBanner ads
Youtube.comaolsports .comnbc.comYahoo.com
SkyscrapersYoutube.comaolsports .comnbc.comYahoo.com
Socia l Media Facebook.comTwitter.com
Streaming VideosNBC
Adult SwimDiscovery ChannelMTV
Outdoor Bi l lboards
Direct Marketinge-mai l Marketing
Year 1: 2011
Medium Vehicle January February March April May June July August September October November December
Magazines w/ copyEl leNew YorkerLuckySpin
Men's JournalWiredMotor TrendsMaxim
InternetWebs ites
ful lofl i fe.comBanner ads
Youtube.com
aolsports .comnbc.comYahoo.com
Socia l Media Facebook.com
Twitter.comStreaming Videos
NBCAdult Swim
Discovery ChannelMTV
Outdoor Bi l lboards
Direct Marketing
e-mai l MarketingPublic Relations
Press ReleaseEnvoronmental Blogs
Events
Cause Marketing Campaigns
Year 2: 2012
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Medium Vehicle January February March April May June July August September October November December
PrintMagazines w/ copy
El leNew YorkerLuckySpinMen's JournalWiredMotor TrendsMaxim
Magazines w/ competitive copy
El leNew YorkerLuckySpinMen's JournalWiredMotor TrendsMaxim
Outdoor Bi l lboards
InternetWebs ites
ful lofl i fe.comBanner ads
Youtube.comaolsports .comnbc.comYahoo.com
Socia l Media Facebook.comTwitter.com
Direct Marketinge-mai l Marketing
Public RelationsPress Release
Envoronmental BlogsEvents
Cause Marketing Campaigns
ConcertJack Johnson
Year 3: 2013
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10.1. Media Budget
Internet- $3,880,480.00 Website Design and Development- $800,000 Facebook- $0 Twitter- $0 YouTube-$0 Online Ad Buys- $180,000 Banner Ads Skyscraper Ads Streaming Video- $2,900,480 Jersey Shore: (4 Episodes) (4 Month Coverage) = 629,956
The Office: (24 Episodes) (9 Months of Coverage) = 1,260,000 It’s Always Sunny in Philadelphia: (14 Episodes) (5 Months of Coverage) = 468,000 South Park: (15 Episodes) (8 Months of Coverage) = 615,000
Outdoor- $8, 190,000.00 Billboards Direct Marketing- $64,200.00 Email Marketing Print- $14,914,032.00
Magazines- $14, 914, 032 Elle – 112,115 x 24 Issues = $2,690,760 Spin – 32,440 x 24 Issues = $778,560 Men’s Journal – 19,950 x 24 Issues = $478,800 Wired – 88,533 x 24 Issues = $2,124,792 Motor Trends – 145,000 x 24 Issues = $3,480,000 Maxim – 223,380 x 24 Issues = $5,361,120
Event- $939,875.00 Green Fleet Contest $909,875 Jack Johnson Concert $30,000 Production Costs- $5,175,00.00 Webisode Series- $425,000 Streaming Video Commercials - $4,750,000
TOTAL- $33,163,587.00
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11.1. Metrics
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