ADVERTISING CAMPAIGN

PRESENTED BY: FRANCISCO FRANCO

BUS 89

SUMMER 2015

AUGUST 5, 2015

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TABLE OF CONTENTS

Page 2: Introduction: Executive Summary

Page 3 Introduction: Objectives

Page 4 Target Market: Product Demographics

Page 5 Target market: Target Contact Demographics

Page 6 Call to Action: Desired Outcome/ Pull-Through Offer

Page 7 Creative Strategy: Social Media

Page 8 Creative Strategy: Television

Page 9 Creative Strategy: Print/ Billboards/ Local Events

Page 10 Creative Strategy: Sponsorships

Page 11 Predator Instinct Commercial: Script

Page 12 Budget: Overview/ Cost of Advertising

Page 13 Cost of Advertising (cont.)

Page 14 References

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INTRODUCTION

EXECUTIVE SUMMARY

Puma Group is a German based multi-national company that owns the brands PUMA,

Cobra Golf, Dobotex, and Brandon. The Puma group offers performance and sports

inspired lifestyle products in areas such as soccer, football, golf, motorsports, running,

and fitness. In 65 years their brand PUMA has established a history of creating the

fastest products for the fastest athletes, and today they are active in more than 120

countries worldwide. Even though PUMA is one of the world’s leading sports brands,

they fall far behind Nike and Adidas when it comes to sales. Under Armour is very close

to Puma in the market share and also could pose a threat.

In order to secure long term worldwide distribution, and an increase in sales

Puma will be launching a national advertising campaign through various medias. The

brand will be completely reimaged, except for the logo, in order to win customers over.

Puma’s investment will surely pay off. We have a clear idea of where Puma stands in the

market, along with a very well defined target market and target areas. Once consumers

see Puma products and ads just as much as competitors, and become aware of the quality

of Puma products, occasional customers will become steady customers. With this

campaign the negative perception of the brand many consumers have will change

immediately, and sales increases will come slowly, but surely.

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OBJECTIVES

Puma wishes to increase long term sales. In order to do that Puma that has set the

objective of converting users of Adidas and Nike to users of Puma. Although, Puma is well

aware that to increase sales, another necessary objective is to hold present customers. Another

important objective that will increase sales is to make steady customers out of occasional ones.

Puma also feel that demand for new products is very low, they wish to establish a “reputation

platform” for launching new brands and product lines. If they can increase demand for product,

Puma will be able to reach another objective they have set, which is to build confidence in the

company and the brand. Although, Puma will not offer many sales or coupons because they feel

that those tactics will only hurt long term sales. Puma has also set the objective of correcting

the false impression that the competitors’ products are better than their own products. Puma

wishes to enhance brand image by creating an image of growth, progressiveness, and technical

leadership. Puma will supplement advertising with new models, features, and packages in order

get people to enter Puma stores. With time Puma wishes to reach their objective of secure

worldwide distribution. Puma’s large investment will pay off.

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TARGET MARKET

PRODUCT DEMOGRAPHICS

Puma offers all type of athletic and casual apparel ranging from socks, shirts, shoes,

hats, headbands, underwear, sweatpants, jackets, and more. Puma is known for having the

fastest products in sports. These sports include soccer, running, golf, football, and more. The

first product that will be individually advertised when we begin work with Puma will be the

Puma Clyde sneaker. We will use the fact that they were the first suede basketball shoe to push

them in a fashion sense. Different products will be advertised in different parts of the country,

depending on area and climate. Track jackets will be pushed heavily for casual wear nationwide

since they can be worn in California on a cold day, and in New York on a warm day. Puma caps

and beanies will also be marketed nationwide. Heavy duty jackets will be strategically placed in

markets with large amounts of rainfall and wind, while lighter jackets will be marketed in

hotter areas. Puma T-shirts and tank tops also constitute a large portion of sales, but the current

models are a bit outdated. Puma has agreed to work with artists outside of our company to

produce newer, simpler, but, more stylish designs for t-shirts. The only thing that will not be

changed is the logo due to the fact that it has years of history, and it is already a very

recognizable logo. Puma will also release a new line of slim sweatpants that will not be

advertised much; we believe the sweatpants will sell as long as people walk in the store since

slim has been in style for so long. Underwear, sock, and accessory sales are believed to rise

along with the sales of larger products.

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TARGET CONTACT DEMOGRAPHICS

Puma group is interested in targeting youth who live an athletic lifestyle, and/or want to

be fashionable. Puma will continue to push clothing meant to be used for sports, but the main

objective is to increase sales in casual wear or “street” wear. The ages we are mainly focusing

on are 18-35, which is when athletic ability is at its peak for most people. People who are

between the 18-35 age group are also very concerned with being fashionable, and if this age

group embraces the brand, other age groups will see Puma as fashionable as well. We have

reached an agreement with Puma to keep prices equal with competitors, and in some instances

higher than the competitors. We strongly believe that lowering prices and offering sales will

only devalue the brand. Because the brand Puma will be fairly expensive, we will target

segments in metropolitan areas that consist primarily of young professionals. Singles will be

targeted more than couples, but not a significant amount. Someone who is single might be more

inclined to better themselves than someone with a significant other, and therefore more easily

inclined to be persuaded.

Another large segment that will be targeted are college students, as college students can

afford the brand, and are motivated to be the best they can be. One of the messages we will be

heavily pushing, both directly and indirectly, is that Puma is the best. A third significant

segment we will target is younger to middle aged families. If brand loyalty is reached with this

third segment, it will boost sales significantly because parents also need to buy clothing for

children. Also, if children are accustomed to Puma, they will grow up thinking Puma is the

right brand.

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CALL TO ACTION

WHAT IS THE DESIRED OUTCOME?

Our work with Puma will begin to make steady customers out of occasional ones.

Advertising is also expected to increase customer demand, and in turn create a platform from

which Puma can launch new brands and product lines. With demand for the brand increasing,

confidence in the brand will also increase. Immediately, advertising should change the false

impression a lot of consumers have, that Puma products are inferior to the competition. In the

long run, our work with Puma will be the beginning of secure worldwide distribution, and will

result in an increase in sales.

WHAT IS THE PULL-THROUGH OFFER?

While competitors place a huge emphasis on the technology of their products, Puma will

emphasize efficiency and comfort. Puma products take a step back and do what they are

supposed to do. For example, Puma shoes will last and get you where you need to go the fastest,

while still containing the same technology the competitors have. Puma also has the ability to use

the reimaging of the brand as a selling point, whereas the competition seem stay the same, as

they have for years. This will all be communicated through social media advertising, television

advertising, print advertising, and through word of mouth.

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CREATIVE STRATAGEY

SOCIAL MEDIA

Our campaign for Puma will initiate on interactive media. Puma will launch a campaign

on Facebook, Twitter, and Instagram. Banners will be strategically placed on all of these

platforms in areas where large portions of our target consumers reside. Puma will also increase

our presence on social media by having those who manage our accounts be more interactive

with our followers, and take more risks. Using trends on these social medias to advertise can be

a good way to begin to develop a relationship with our consumers. For example, the current

feud over ghost-writing between rappers Drake and Meek Mill on Twitter can be quickly turned

to a marketing tactic for Puma by connecting the issue to Puma through a tweet. In addition to

placing banners on social media, Puma will place banners on amazon, and negotiate with

Amazon so all Puma products can be Prime. Puma will also place banners on popular websites

such as Complex and Pinterest. Also, ads will be placed YouTube channels that continuously

receive a vast amount of viewers such as Vevo. In addition, the keywords “speed”, “predator”,

“instinct”, and various sports will be purchased across all the previously mentioned websites if

possible.

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TELEVISION

Puma will be looking to do just as much on Television as on interactive media for this

campaign. Puma’s “Predator Instinct” commercial will only appear on the nation’s top channels

during prime time, which is they will get the most viewers. These channels include Fox, NBC,

MTV, and ABC. Puma will only purchase commercials during prime time, unless it is for a

strategic reason such as a big sporting game or event. Due to recent trends Puma will also

follow up with advertisements on Netflix, and Hulu plus. Rather than advertise on all their

material, Puma will look to place advertisements on movies and series that we believe will pass

the test of time, and attract the target audience. Puma will also invest in minor product

placement in multiple films, unless an opportunity arises where it would be smart to invest

heavily in just one film. The recent film Southpaw, would have been a great investment for

example. The film is a comeback story, which fits perfectly with what Puma stands for. Having

the Puma logo appear on the main character’s water bottle would have been more than enough.

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PRINT

Puma will also engage in print advertising on magazines that our target consumers might

read. Magazines such as Complex, People, and Espn for example. Puma will look to invest in a

back cover on Complex, and from there on Puma will allow the magazine to place our ads

wherever they like. There will be three unique ads: one for the Complex back cover, and two

for our other magazines depending on the consumers those magazines will be reaching. All of

the magazine ads will bleed off the page, and will be overwhelmingly red in order to attract the

most attention.

BILLBOARDS

Puma will also have a unique ad for billboards on heavily transited highways in our

target markets, and signs on buildings within cities. Sign will also be placed on bus stops,

stadiums, furniture, and wherever strategically favorable. Print advertising will make up the

least of the investment.

LOCAL EVENTS

The rest of the investment will go to local sporting events, charity events, and music

events that represent the image of the brand. These events will provide Puma the opportunity to

interact directly with customers. Puma will truly be making an attempt to appear everywhere

target consumers are present.

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SPONSORSHIPS

Puma already counts with many sports figures such as Usain Bolt and Olivier Giroud. In

December superstar musician Rihanna was recruited as a sponsor. Puma will be looking to

acquire more pop-culture sponsors to promote the brand. With pop-culture stars such as

Rihanna supporting the brand, consumers will be more inclined to purchase Puma products for

fashion purposes.

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PREDATOR INSTINCT COMMERCIAL

SCRIPT

Character stares into space, then the camera angle switches.

Voice Over: There are certain places you can’t find with a map.

Scene switches to a quick shot of a bridge, then the character is shown running on that bridge. The scene then returns to the character staring into space.

Voice Over: Hidden deep in the Earth past the tallest trees.

The character is then shown running in three different terrains: dirt, grass, and train tracks. Then he is shown staring into space again.

Voice Over: Certain places that can’t be reached with the fastest car or the highest plane.

A panning shot at the beach occurs then the scene returns to show the character running in different train tracks. The camera then quickly switches to a side view of the character running.

Voice Over: It takes not only strength, but instinct to make it.

The character is shown running in the middle of the street. Then another shot of him staring into space, but this time from a further distance. The scene quickly switches to him running in the forest.

Voice Over: Instinct a trait only a few of us still possess.

Running scene in the forest continues then switches to a quick shot of a trail in the forest. Then a side shot of the character running is shown again.

Voice Over: But for the few of us who create our own paths,

Shot of character running in the forest is shown again, then a close of his Puma shirt. Then he is shown staring into space again.

Voice Over: the few of us who create our own destinies,

Panning shot of a river, then switches to a shot of a Puma shirt on a rock.

Voice Over: instinct lives.

Character jumps in river from the rock, then the camera moves in on the splash created (the hook for the song plays for rest of commercial). Camera then switches back to the Puma shirt on the rock and logo appears.

Voice Over: Puma, predator instinct.

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BUDGET

OVERVIEW

Puma will be allocating $179,789,775 to advertising, which will be paid through a fee

based system over the next year. This sum represents 15% of Puma’s sales in 2014, and was

reached using the percentage of sales method. Puma currently holds third place in the market,

but are very distant from second place, Adidas, and first place, Nike. Puma has agreed to

allocate 15 percent of their sales budget to us every year as long as objectives are being met.

They will increase or decrease that percentage depending on the effectiveness of advertising.

COST OF ADVERTISING

Advertising will start at the beginning of 2016, with hopes of long term upward trends.

Advertising on Twitter is going to cost between 50 cents to $4 per engagement on a promoted

tweet, Facebook is going to cost 66 cents CPM, and Instagram will cost between $350,000 to 1

million per month. Advertising on websites should cost about $15 to $20 CPM, more popular

websites being more expensive than others. Youtube advertisements will cost anywhere

between 10 to 30 cents CPM, and purchasing keywords will cost around $1 to $2 per click; the

word “speed” and sports titles are expected to cost more. If the sports titles are over the budget,

further negotiations will cease.

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COST OF ADVERTISING (CONT.)

Advertising on TV will be more expensive, Puma is looking to spend around $400,000

per commercial during prime time television. Spending for product placement is estimated to be

around that price, Puma will only spend more only for the right deal. In regards to magazine

advertising, Puma might be spending up to $20,000 per advertisement, but they will hunt for the

right package deals. The back cover of Complex is estimated to cost around $300,000. Puma

will also be looking to pay around $500 for each billboard purchased. The rest of the funds will

be allocated to sporting events, charity events, and music events that give the company an

opportunity to interact directly with target consumers.

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REFERENCES

http://about.puma.com/en/this-is-puma/history

http://about.puma.com/en/investor-relations/financial-reports

http://about.puma.com/en/newsroom/corporate-news/2014/february/puma-meets-full-year- sales-guidance

http://smallbusiness.chron.com/much-television-advertising-really-cost-58718.html

http://www.pennapowers.com/how-much-do-ads-on-twitter-cost/

http://fitsmallbusiness.com/how-much-does-facebook-advertising-cost/

http://adage.com/article/digital/monthly-cost-instagram-ad-campaign-approach-1m/292441/

http://www.entrepreneur.com/article/83094

http://priceonomics.com/the-economics-of-product-placements/

http://fitsmallbusiness.com/how-much-does-billboard-advertising-cost/

http://www.pennapowers.com/how-much-do-ads-on-youtube-cost/

http://www.wordstream.com/blog/ws/2015/05/21/how-much-does-adwords-cost

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