Presented to: Universal Studios & Professor Tomlin PromotionsMarketing 430

Presented by: Hannah Tran, Jennifer Hart, Jimmy Borland, Ashley Oliver & JJ Holen

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Table of Contents

Situation Analysis 3

Company Background 3 Partnerships 12

Opportunities and Threats 4 Advertising Program & Strategy 12

Competitive Analysis 6 TV Spot 13

Target Market Specifications 7 Newspaper Ad 13

Size of Target Market 7 Browser and AdWords 14

Demographics Characteristics 7 Website 14

Psychographic Characteristics 8 Social Media 15

Product Evaluation 9 Out of Home 16

Brand Name 9 Sales Promotion Program 16

Package Considerations and Pricing 10 Trade Objectives 17

Channel of Distribution

Marketing Objectives

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Consumer Objectives 17

Consumer Promotions 18

Budget

Timeline

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Situation Analysis

Company Background

Illumination Entertainment is an American film production company, founded by Chris Meledandri after he left his post as

President of 20th Century Fox Animation Studios in 2007.

In 2008, Illumination Entertainment struck a deal that would position it as NBC Universal’s family entertainment branch

that would produce one or two films a year starting in 2010. It is co-owned by Universal, who exclusively distributes the

films, but Illumination Entertainment retains creative control as an independent production company.

Illumination’s world headquarters and main production office is based in Santa Monica, California. The company

subscribes to a philosophy of global filmmaking and contracts independent studios all over the world on a film-by-film

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basis. By 2011, Illumination Entertainment acquired the animation department of the French animation and visual effects

studio Mac Guff.

Opportunities and Threats The success of operations results from correctly delivering public tastes and preferences, while understanding the

opportunities and threats within the market segments which Illumination Entertainment competes.

Opportunities

Despicable Me 2 is supported by its fans. There is a large and loyal fan base to Despicable Me that serves as an

aspiration group for new fans to Despicable Me 2. These new fans are attracted because of the popularity and

excitement produced from the Despicable Me film and its fans. The opportunity to distribute through various types of

channels of distribution allows Despicable Me 2 to be readily available to any consumer, anytime, anywhere. Finally, the

theme park Universal Studios Orlando serves as a backbone for interactive entertainment for the film. Consumers can

visit the theme park to enjoy the interaction with the film’s cast.

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Threats

Illumination Entertainment is not the only studio in the market segment in which it competes. With Illumination

Entertainment being in its infancy its competing with better established brands. During the time of the DVD/Blu-Ray

release of Despicable Me 2, other studios will be releasing DVD/Blu-Ray copies as well. In addition to the release of

DVD/Blu-Ray copies to consumers through the various types of channels of distribution, piracy and illegal downloads also

exist.

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Competitive Analysis Illumination Entertainment plans to release the DVD/Blu-Ray for Despicable Me 2 in December of 2013, and will not be

the only studio launching the DVD/Blu-Ray of a theatrical film. Competing studios, who share the same target market of

Despicable Me 2, plan to launch theatrical films for November, 2013 and December, 2013. These films and studios

include:

● Phase 4 Films: The Legend of Sarila

● 20th Century Fox: Turbo

● Walt Disney Pictures: Planes

● Columbia Pictures: The Smurfs 2

● Walt Disney Pictures: Monsters University

● Warner Brothers: Pacific Rim

● 20th Century Fox: Wolverine

● 20th Century Fox: Epic

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Target Market SpecificationsSize of Target Market

We estimated to have 165 Million people that make up the entire target market.

Demographics Characteristics

Our primary target market for Despicable Me 2 DVD/Blu-Ray is Despicable Me fanatics. This includes fans of the original

Despicable Me movie, who can’t get enough of the Minions army. This group consists of children, ages 5-12, and their

parents. Since the kids are the main resource to drive our DVD/Blu-Ray sales, we also understand that the parents play

an important role in the purchasing decisions.

Our secondary target market for this movie is animated movie lovers. This group already has a strong interest in other

well-known animated movies such as Coraline, The Tale of Despereaux, ParaNorman, and more. It may consist of

teenagers, young adults, and adults.

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Psychographic Characteristics

We want to target towards family-oriented groups. This is when the adults come into play and make up a fair amount of

our target segment. Not to mention, they hold the power for all the purchasing decisions. The medium income families

(aka middle class) consists of working parents, or at least one of them provides for the family. Their moderate income

allows them the luxury to spoil their little ones; by taking them out to dinner, buying popular toys, and of course taking

them to the movies.

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Product Evaluation

Brand Name

Universal Pictures has an exclusive partnership with Illumination Entertainment, an American animation film production

company. Illumination is known for their first Despicable Me movie and has recently developed a sequel, Despicable Me

2. Hence, they are able to develop their Despicable Me brand name.

Despicable Me 2 continues to tell the story of an ex-super villain that is trying to adjust to family life, and is faced with

difficult obstacles along the way trying to balance career and the family. The brand has chosen popular voices for the

characters such as: Steve Carell, Russell Brand, Kristen Wiig, Miranda Cosgrove, Dana Gaier, and Elsie Fisher. They’ve

secured these superstars to market their film to a diversify fan base. Universal Pictures and Illumination Entertainment are

certain to continue producing popular movies for generations to come.

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Package Considerations and Pricing

Despicable Me 2 consists of six different DVD and Blu-Ray configurations. The first option is a standard DVD for $19.99.

The second contains both the DVD and the Blu-Ray at a price of $24.99. The third option has a DVD, Blu-Ray, and digital

copy for a price of $29.99. For the movies enthusiast, the fourth option consists of the DVD, 3D Blu-Ray, Blu-Ray, and

digital copy for a price of $34.99. The fifth option is a collectors’ edition which includes everything from option four but with

stylish 3D Minion glasses. The final option is a combo package with both Despicable Me and Despicable Me 2 for the late

minion followers. This package will cost a total of $28.99 and has fun features on each of the discs. Below is a list of the

features for each media types listed above:

DVD Copy: Include with entertaining features such as, Gru’s girls, gadgets galore, winner’s contest script and feature

commentary with directors Chris Renaud and Pierre Coffin.

Blu-Ray Copy: This combo pack includes three special mini-movies, the making of the mini-movies, deleted scenes, the

minions, evil Minions, a Gru-some transformation, El hombre malo, Gru’s girls, gadgets Galore, winner’s contest script

and a feature commentary with directors Chris Renaud and Pierre Coffin.

Digital Copy: This package contains the same features as the DVD and Blu-Ray combo with an extra bonus of the digital

copy for tech savvy target market.

Blu-Ray 3D Copy: Films in created for home 3D enjoyment.

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Channels of Distribution

There will be three main channels of distribution for the Despicable Me 2 film, which include: brick and mortar, online, and

digital. The primary channel of distribution is our in-store retailers consisting of Target, Wal-Mart, and Best Buy with an

addition of grocery stores. These three retailers will give the consumers the option to purchase the DVD or Blu-Ray in-

store or online through their websites. The movie will also be available to purchase from digital retailers such as iTunes,

Amazon, and Google Play. This will make it easy for the consumers, particularly the busy families, to purchase the movie

and have instant access to it. The third and final channel of distribution is rental through Netflix, Redbox, and OnDemand.

Our rental options make it enjoyable for consumers to rent the movie at their own convenience without having to commit

to owning, which is often popular amongst Gen X and Millennial.

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Marketing Objectives

Partnerships

The goal for our marketing and promotional campaign for the release of the Despicable Me 2 DVD/Blu-Ray is to generate

sales of approximately 4 millions units and $60 millions in revenue. We will partner up with Target, Kodak, Hostess, AMC,

NBC, and Macy’s to accomplish these goals.

Advertising Program and Strategy

The purpose of our advertising program is to increase awareness, generate sales, and revenue for the Despicable Me 2

DVD/Blu-Ray release. The execution consists of multiple platforms of advertising. For our advertising strategy, we will use

advertising banners on the internet via popular search engines, Google AdWords, the www.despicableme.com website,

and various social media platforms to communicate our message to our target market.

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TV Spot

Universal is owned by NBC, and NBC is owned by Comcast. So, to avoid any conflicts of interest, we plan to have our

commercials for Despicable Me 2 air on the NBC channel. Our Target Market enjoys watching television, specifically on

the NBC channel, during specific times during Sunday – Saturday. We plan to heavily advertise our Despicable Me 2

commercials for the DVD/Blu-Ray release during the time zones in which the largest viewing audience of our target

market will be present. These commercials will be aired nationwide during their respective time zones. The time zones are

as follows:

• Monday – Friday: 5:00pm – 8:00pm (EST, CST, and PST)

• Saturday and Sunday: 7:00am – 10:00am (EST, CST, and PST)

Newspaper Ad

Part of our target market enjoys reading Sunday newspapers. We will launch ads in the Sunday LA Times and New York

Times for the release of the Despicable Me 2 DVD/Blu-Ray. Also, we will place a large ad on the Sunday Wrap to catch

the eye of our target market reminding them.

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Browser and AdWords

Internet advertising banners will launch at the start of the campaign on June 3, 2013. The advertising banners will appear

on popular internet browsers that include google.com, yahoo.com, and bing.com. These ads will deliver our message

about the video script contest, Twinkies promotion and sweepstakes, other promotions with AMC, Minionization

Sweepstakes, and release date of the DVD/Blu-Ray for Despicable Me 2. Also, the ads will direct our audience to our

social media platforms and the www.despicableme.com website. In addition to advertising banners, we will use Google

AdWords to attract our target market to our social media platforms and the www.despicableme.com.

Website

The www.despicableme.com website will serve as a medium to communicate to our Target Market the details for our

contest, sweepstakes, other promotions, and the DVD/Blu-Ray release for Despicable Me 2. As a strategy, the website

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will direct our audience to our Social Media platforms to drive traffic to our Facebook and Twitter pages, and our Social

Media will direct our audience to our website. This will drive traffic and create a community for each of the pages and

website involved.

Social Media

The social media platforms we plan to incorporate will include Facebook and Twitter. The Facebook fan page will

announce the Mini Video Script Contest, Universal Orlando Sweepstakes, Twinkies Promotion, Twinkies Sweepstakes,

AMC Promotions, and release date for the DVD/Blu-Ray release of Despicable Me 2. Facebook will launch at the start of

the campaign on June 3, 2013, and run until the end of the campaign in December 31, 2013. Twitter will announce

winners for the Minion Video Script Contest, Universal Orlando Sweepstakes, Twinkies Sweepstakes,and the release

date for the DVD/Blu-Ray. Twitter will launch at the start of the campaign on January 3, 2013 and run until December 10,

2013.

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Out of Home

Out of home advertising is a great tool to catch the attention of our target audience. This method will help increase the

awareness of both parents and children while they are out and about. We will utilize billboards, busses and bus stops to

reach our consumers.

Sales Promotion Program

Trade Objectives

Our trade objective is to successfully persuade retail stores to carry Despicable Me 2 DVD/Blu-Ray products, create brand

awareness, generate inventory sales, and offer premiums values. In addition to retailers carrying the product we hope to

obtain premium shelf space in entertainment, impulse purchase, and front of store sections which creates movement

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throughout the store to increase retailers sales. We’ve also created a specialized product by partnering with Hostess and

obtaining space in food areas at retail stores.

Consumer Objectives

Implement creative sweepstakes, contests, and promotional programs to encourage consumers’ participation and

enhance interest in the product line. By doing so, we will utilize social media platforms to create a strong buzz in order to

entice consumers to purchase Despicable Me 2 DVDs/Blu-Rays and additional related merchandise.

Point of Purchase Program

We implement the POP as a “Despicable You” end cap that is located in electronics section at Target. It is a compilation

of Despicable Me 2 merchandise, and Kodak printers. What unique about this endcap is that there is a minion decale trail

leading from the toy department to the endcap. The POP is designed with a minionization gun as a camera. A child can

stand under the gun to take a picture of his or herself. The minionization gun takes dominant facial features and

transforms the image of the child into a minion. They can review their minion image before they decide to print it out

instantly with Kodak printer.

With the “Despicable You” end cap, consumers have a chance to customize their DVD/Blu-Ray packages with the image

of themselves minionized on the cover of the package for only $1.99 extra. Retail DVD/Blu-Ray pre-orders will run for

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three months from July 3 to October 3. Moreover, there will be the option to share their minionized image on social media

platforms such as Facebook, Instagram, and Twitter. This gives the consumers a chance to enter into our sweepstakes

program, with no purchase necessary.

Consumer Promotions

The following promotions were designed to join the trade objectives with consumer objectives. We utilize our in store

experiences with the growing digital marketing popularity to reach a full IMC program. We have created two sweepstakes,

one contest, and a special event to achieve our goals.

Minionization Sweepstakes

As mentioned on POP program, consumers can upload their minionized image on social media sites. This will

automatically enter them into our sweepstakes program with a chance to win a trip to Universal Orlando. The grand prize

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winner will receive; first class travel accommodations for four, a two nights stay in minionized suite, $5,000 cash, and a

V.I.P. dinner with the Minions.

Twinkies Promotional Sweepstakes

We integrate promotion and sweepstakes to create awareness for the DVD/Blu-Ray release. To accomplish this, there is

a $2 off on-pack coupon for the DVD/Blu-Ray purchase on any Twinkies box that you buy. Moreover, there will be in-pack

frosting in the Twinkies box, which consumers can use to create their minion Twinkies.

Participants submit a photo of their created minion Twinkies on social media platforms using #despicableyou. Favorite

minion pictures will be chosen randomly. Daily winners receive random prizes from between two AMC movie tickets

(Golden Edition) and one $25 Target gift card.

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Mini Movie Script Contest

Participants can submit a funny script of Minions where they can be creative with their theme. The script should be

submitted on despicableme.com from June 3 to August 3. Each submission will receive an email confirmation with a $10

off coupon to Universal Studios in Orlando or Hollywood. Winning script receives $500 gift card to Target and their script

will be featured as a Bonus Feature in the DVD/Blu-ray release.

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Special Events: Macy’s Thanksgiving Day Parade

Despicable Me 2 will be featured as a float in the Macy’s Thanksgiving Day Parade right before the DVD/Blu-Ray release

in December. The float will include giant blow-ups of Gru and the little girls, followed by a marching band of Minions army.

On the float, there will be a live performance of Pharrel Williams singing “Happy” from the movie soundtrack.

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