herschel supply company media plan

M e d i a P l a n : H e r s c h e l S u p p l y C o m p a n y

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T h e B r a n d • Herschel makes many different types of travel bags, like luggage, duffel bags,

backpacks, messenger bags, wallets, and phone and tablet cases

• In 2009, Jamie and Lyndon Cormack began the brand in Vancouver, Canada

• Though the brand is based in Canada, their products can be found all over North

America online and in retail stores like The Apple Store, Zumiez, Urban Outfitters,

and Nordstrom.

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T h e P r o d u c t

• The Herschel Backpack • Fashionable, yet simple, durable, and practical • Comes in many different colors and styles

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Marketing Objectives: • Objectives:

o Within one year, increase Herschel Supply Company’s market share by 1-‐2% o Within the same year, increase online sales by 5,000

• To fulfill objectives, the media plan will target current users and encourage them to be repeat customers, challenge the competition by converting their consumers into Herschel users, and also target new users who are not currently loyal to any particular backpack brand by using a high frequency strategy.

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Marketing Objectives & Competitive Overview: • VF Corporation is the parent company to multiple backpack brands, so the 56% is split up among five different competing brands

• Herschel Supply is a small fraction of the “other” category that makes up the last 16% of the share.

2012 Backpack Market Share VF Corp. 56%

Camelback Products L.L.C. 28% Other 16%

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Competitive Overview:

• In 2011, 287 different backpack products were produced.

• Currently there are 5,277 employees and 301 businesses in the backpack and courier industry

• Total revenue from the backpack market in 2011 was $730.3 million, but growth is at a negative .2%.

• Because foreign production is cheaper, many domestic brands, like Herschel Supply, are finding it more beneficial to manufacture in countries like China and Mexico.

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Competitive Overview:

• Herschel Supply’s top competitors:

• Herschel is a smaller company than many of its competitors, making it harder to increase

market share in the backpack industry • That can be used as an advantage advertising-‐wise because it is a family owned and operated

company with a focused product line

Jansport, Timberland, EastPack, NorthFace, L.L. Bean

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Target Market:

• Primary Audience: o White and Asian students ages 18-‐34 o Parents with HHI of $75,000-‐149,000 o In college towns and major cities in Western areas of the United States o The typical Herschel backpack user is a high school to college student with a busy schedule and a huge need for a versatile, durable, fashionable backpack to allow for easy travel and commuting.

o They are very social and like to have fun and explore places they’ve never been.

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Target Market: • Secondary Audience:

o White and Asian Parents ages 25-‐54 o HHI of $75,000-‐149,000 to $150,000+ o Live in the Western areas of the United States o Married o With children ages 6-‐17 or without children o The typical Herschel backpack user or buyer has a busy lifestyle juggling work and family.

o They not only want a durable, simple, and trustworthy backpack to carry everyday necessities, but also want a quality bag for their children.

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Target Market:

• Competition’s Target Demographics:

O w n s J a n s p o r t

Pct Down

Index

Age: 18-‐24

18.4 144 Age: 25-‐34

20.1 112

Age: 35-‐44

18.1 102 Age: 45-‐54

23.6 122

HHI: 150,000+

14.7 146 HHI: $75,000-‐$149,999

39.6 140

Census Region: West

29.6 129 Marital Status: Now Married

62.8 116

Child age: 2 -‐ 5 Years

15.9 111 Child age: 6 -‐ 11 Years

22.2 122


27.3 137 Race: White

83 109

Race: Asian * 5.9 183

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O w n s H i g h S i e r r a

Pct Down

Index

Age: 18-‐24 * 8.5 66 Age: 25-‐34

23.6 132

Age: 35-‐44

28.9 164 Age: 45-‐54

18.8 97

HHI: 150,000+

14.2 141 HHI: $75,000-‐$149,999

31.5 112

Census Region: West

33 144 Marital Status: Now Married

60 111

Child age: 2 -‐ 5 Years * 17.6 123 Child age: 6 -‐ 11 Years

24.3 133


25.7 128 Race: White

83.8 110

Race: Asian * 3.7 117

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Media Objectives:

• National plan • Advertisements will build brand awareness:

o Requires a high frequency strategy reaching the target audience at least four times in a three week period, and even more during certain times of the year

o Uses magazines, television, internet, and outdoor media to reach the target to inform them about the product and direct them to the Herschel Supply Co. website

• Advertisements will also increase E-‐Commerce sales: o The frequency strategy will also apply to this objective because all forms of media will call for the target market to visit the website (www.herschelsupply.com)

o It will also require a lot of internet advertising, getting 50 million impressions in 10 months with a high click through rate

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Geography:

• Though this is a national plan, there are some areas to focus on.

• Based on the geographic indexes of Herschel Supply Co. competitors Jansport and High Sierra, extra emphasis should be placed on the Western areas because more the target is more likely to buy competitor’s backpacks in that region

Jansport Users Index Census Region: West 129

High Sierra Users Census Region: West 144

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Seasonality:

• This plan lasts for 10 months focusing on prime backpack selling months o Spring break o Back to school o Holiday season

• Advertisements will run in various forms of media all throughout the 10 months, however there will be peaks of higher frequency in: o March and April (Spring break) o July, August, and September (Back to school) o November and December (Holiday season)

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Media Mix & Strategies: • 50% Magazines

o Strategy 1: To target a tight audience and also put the product in the right fashionable context, magazines will make up the majority of the budget.

o Strategy 2: Magazines also run all month, so it allows for steady exposure throughout all 10 months

• 40% Television o Strategy: During the peak months (March, April, July, August, September), television commercials will run during primetime, late night, and daytime

o This will reach the target audience at key points in the year when they might be thinking about purchasing a backpack

• 5% Internet o Internet is a huge part of meeting the objective to raise E-‐Commerce sales o Cheap, but provides a lot of impressions o Strategy: Provide direct links to the Herschel Supply online store to people who are in the target market and thinking about buying.

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Media Mix & Strategies:

• 5% Outdoor o Strategy: Outdoor media caters to the commuters and travelers who have the need for a good quality backpack, so it will be placed where the target audience can likely be found

Media Mix

Magazines

Television

Internet

Outdoor

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Magazines: To Increase brand Awareness/Market Share • Magazine usage (1 insertion each) and the user index for competitors: (Index: Jansport, High Sierra) o Glamour: 3 months, July-‐September (Index: 167, 134) o GQ: 6 months, July-‐December (Index: 170, 119) o National Geographic Traveler: 5 months, March-‐August (Index: 187, 203)

o Parents: 3 months, July-‐September (Index: 198, 114) o Seventeen: 6 months, July-‐December (Index: 187, 60) o Sports Illustrated: 2 months, March & April (Index: 133, 164) o Travel + Leisure: 5 months, March-‐July (Index: 166, 161)

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• Magazine selection is based on the target audience and the time of year they will most likely be looking to purchase a backpack:

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Television: To Increase Market Share

• Used in key months to increase message frequency when the target audience is most likely to think about purchasing a backpack

• Time of the year and time of day of advertisement exposure is based on the target audience:

o Section 1: Beginning of March – Beginning of May (9 weeks)

§ Primetime § Target Audience: Students and spring break travelers with a need for luggage/backpacks

§ Watches: Popular primetime programming (CBS, FOX, NBC) § 5 CPP’s per week § Late Fringe § Target Audience: Students in high school and college thinking about traveling for spring break

§ Watches: Late Night with…, SNL, Adult Swim § 5 CPPs per week

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Television:

o Section 2: Beginning of July – End of September (15 weeks) § Daytime § Target Audience 1: Parents (Especially moms) beginning their back-‐to-‐school shopping

§ Watches: The View, the daily news, soap operas, Food Network, HGTV § 10 CPPs per week § Target Audience 2: Older students on summer break thinking about going back to school

§ Watches: Cartoon Network, MTV, VH1, TLC, E! § 10 CPPs per week

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Internet: To Increase E-Commerce Sales • Ad messages will lead the customer to Herschel Supply’s website, providing a direct link and

proper context to urge online shopping instantaneously, therefore increasing online sales • Sites where advertisements will be placed: Facebook, Twitter, YouTube, Amazon, fashion

blogs, parenting blogs, travel agency websites (Expedia, Hotwire), travel blogs • 50 million impressions spread unevenly in 10 months based on time of year and when the

target audience is most likely to think about purchasing a backpack o March: 5 million IMP o April: 5 million IMP o May: 5 million IMP o June: 1 million IMP o July: 2 million IMP o August: 10 million IMP o September: 5 million IMP o October: 1 million IMP o November: 8 million IMP o December: 8 million IMP

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Monthly Impressions (Out of 50 Million) March April

May June

July August

September October

November December

Internet: • Focus areas:

o March – May: Common for travel because of spring break o August & September: Back to school shopping season o November & December: Holiday season

§ Online shopping season § A good way to remind customers of Herschel for when they do need a backpack

later on

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Outdoor: To increase brand awareness/market share • Used for two months (August and September) during the 10 month plan during back to school season o To target students that commute to school and parents that drive to work o Build frequency among not only the target audience, but people that haven’t been targeted with magazine, television, and internet advertisements

• 177 Clear Channel 30-‐Sheet billboards will be used for two months in each city and some suburbs to target parents driving to and from work

• 70 CBS bus shelters will be used in each city suburb area to target commuter students that are about to start school

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Budget Allocation: • 50% Magazines ($5 million):

o Glamour (3 months): $688,827 o GQ (6 months): $1,014,576 o National Geographic Traveler (5 months): $480,000 o Parents (3 months): $566,220 o Seventeen (6 months): $870,930 o Sports Illustrated (2 months): $716,600 o Travel + Leisure (5 months): $659,100

Total magazines: $4,996,253

• 40% Television ($4 million): o Primetime Daypart (5 points/week for 9 weeks): $1,138,500 o Late Fringe Daypart (5 points/week for 9 weeks): $900,000 o Daytime Daypart (20 points/week for 15 weeks): $2,100,000

Total Television: $4,138,500

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Budget Allocation (Cont.): • 5% Internet ($500,000)

o March (5 million IMP): $50,000 o April (5 million IMP): $50,000 o May (5 million IMP): $50,000 o June (1 million IMP): $10,000 o July (2 million IMP): $20,000 o August (10 million IMP): $100,000 o September (5 million IMP): $50,000 o October (1 million IMP): $10,000 o November (8 million IMP): $80,000 o December (8 million IMP): $80,000

Total Internet: $500,000 • 5% Outdoor ($500,000)

o Clear Channel 30-‐Sheets (2 Months): $427,986 o CBS Outdoor Bus Shelters (2 Months): $45,500

Total Outdoor: $473,486

T o t a l M e d i a S p e n d i n g : $ 1 0 , 1 0 8 , 2 3 9 . 0 0

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Flowchart:

herschel supply company media plan

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