UnME Jeans: Branding in Web 2.0

UnME J E A N S

Branding in Web 2.0

A Harvard case analysis by-

Deepali Jain

O V E R V I E W O F

UnME B R A N D

UnME B R A N D

A jeans brand for young woman which produce fashion forward jeans famous for its highly decorated designs.

The brand encourages teens to forge their unique identities and celebrates individuality.

TARGET Young women of age 12-24

PRICE

WHERE TO GET

Slight premium price that other brands

Available at upscale department stores & specialty retailers.Not available ONLINE.

BRAND EQUITY

Brand valued for its limited edition unique products.Consumers tend to be social & taste leaders in schools and communities.

UnME B R A N D

BRAND MANAGE

RMARGERET FOLEY

WHAT IS THE PRESENT

SITUATION?

PRESENT SITUATION

• The brand is spending a total of $13500 in advertising.

• Foley is struggling to justify the money she was spending in advertising traditionally.

PRESENT SITUATION

• Investigating some of the emerging Web 2.0 social media options to explore if they could better to achieve UnME brands advertising objectives.

• The agency came back with a huge of social

media options to consider.

WHY TO STUDY THE CASE?

OBJECTIVES

• To study the changing trends in media habits of people and the

WEB 2.0 opportunities for the company.

• To analyse the risks and benefits of the alternative that would be beneficial for the brand.

• To use analysis methods to develop an advertising strategy for an upcoming company at the time of changing marketing media scenario

WHAT IS THE CURRENT

ADVERTISING PLAN OF THE BRAND?

CURRENT MEDIA PLAN

The brand is spending a total of $13,500,000 in advertising, 74% of which in television.

CURRENT MEDIA PLAN

• 30 sec T.V. advertising on most popular programs like gossip girl, American Idol & One-tree Hill.

• Full page magazine print advertising in beauty & fashion magazine.

• 60 sec radio advertising spots on Top 40 radio stations.

CURRENT MEDIA PLAN

UnME

UnME

UnME

UnMEj e a n s

• A corporate website.

• Online banner & display advertising.

• Key word search

WHAT ARE THE FACTORS HAVING POTENTIAL TO

REDUCE THE EFFECTIVENESS OF THE CURRENT MEDIA PLAN?

TRENDS BRINGING CHANGE IN MEDIA

HABITS1. CONSUMERS MEDIA HABITS WERE RAPIDLY

CHANGING

• Communication Channels have increased 14-fold over last 20 years

• Advent of technologies like computer, DVD players, iPods


HABITS

T.V. Audiences, news paper, magazines readers,

radio stations are declining.

Online content provider,Users listening music downloaded to their

iPods are rising.

Although of media consumption,

5% to newspaper & 23% to online channels 3% to magazines

UnMEj e a n s


HABITS2. Advertisement Clutter

Over 5,000 messages each day.


HABITSWe can barely remember 1% -3% of all the messages

3. CAPABILITY TO IGNORE ADVERTISEMENTS


HABITS

70% OF VIEWERS are able to ignore

T.V. ads.


HABITSNew commercial free media such as satellite radio seems attractive

To ignore ads, Do not Call. Pop-up blockers, caller identification, spam filters are available now

The only bright spot seen in the

current media plan in online

advertisement.

The difference b/w consumer time spending

and ads spending online

is highest.

Online Media

Classified ads

Banner/ Display Ads

Search Ads

2.5 7.512.5

17.522.5

27.532.5

37.542.5

Classified ads

Banner/ Display Ads

Search Ads

On-line Spending in %

17 32 41

Internet Advertising Revenues (2007)

Online Media

41%

32%

17%

Online MediaSearch Ads Popped up when specific keywords

are typed.

Click rates are

5 %

Banner Ads

UnMEj e a n s

Online MediaDesigned to capture user attention

and communicate brand messages.

Click Rates have

declined from 0.75% to 0.20%

in 2007.

Classified AdsThe advertisements are grouped into categories or classes such as "for sale—telephones", "wanted—kitchen appliances", and “fashion—jeans", hence the term "classified".

Online Media

2007 2008 2009 2010 2011 2012012345678

U.S Marketing Spending in Social Billion ($ bil-lions)

U.S Marketing Spend-ing in Social Billion ($ billions)

Online MediaAdvertising Spending on social media was projected to

explode from $600 million in 2007 to $6.9 billion by 2012.

Online MediaAdvertising Spending on sites like you tube are also going to

explode.

This online media have the potential to deliver even more saturation clutter.

Online Media

What’s next in advertising then?

THE WEB 2.0 OPPORTUNITY

WEB 2.0

WEB 2.0It is a 2 way network where consumers could create content and share it thus transforming all of us into digital writers, movie makers, journalists.

Rather than using net to seek information,

one could actually be the news ,

the culture and the information.

WEB 2.0

WEB 2.0 IS

YOU!!

WEB 2.0

ConsumerCo-Creation

SocialAffiliation

SharingDigital Expression

ideologies

of WEB 2.0

WEB 2.0Consumer Co-Creation

It gives consumers the ability to directly

contribute to the online conversation

and content available on the web.

WEB 2.0

We Can upload a file on Wikipedia.

How about uploading a video on You tube.

SocialAffiliation

Connection consumers to other.

Marketers could target users by their passion ,

interest and giving relevant ads to right people at right time.

WEB 2.0

Adults(18+)

Young Adults(18-20)

Teenagers (12-17)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Percentage of online consumers using social network-ing site(by 2006) like facebook, MySpace etc

Used social networking site Did not use social networking sites

WEB 2.0

61%

80%

29%

WEB 2.0

Digital Self-Expression

It gives an opportunity to create a virtual world & 3-D digital representation of their selves known avatars.

• Unlike muti player online games where 3-D characters are premade, sites like second life, Zwinktopia provided a blank state for which users could create lives for their avatars.

WEB 2.0

Marketers could open virtual stores, could organise contests for the sake of advertisements.

WEB 2.0Sharing

Consumers were building peer to

peer relationships and transferring

information within the network

What sort of media plan Foley wanted?

Foley’s Wish

Foley wanted to interact with customers through the web that would make an impact on the sales of the company.

She wanted to choose media outlets where consumers would be the most receptive to her brand story.

Also, she wanted to foster the most constructive dialogue about her brand.

What options does Foleyhave?

Seeing the Web 2.0 opportunity and the high no. of people especially girls in age 12-25.

If we go into digital expression, Zwinktopia had 7 million users in June 2007 , also the site is to target girls between 13 -24 years old.

Options avai lable

Options avai lable

73% users use such video sites.

Brand could upload videos , give display ads and

purchase brand channels & users could comment ,

upload their own videos.

ACTIVEENGAGEMENT

Teen girls would be invited to

upload videos about themselves and friends.

A 3-4 min video ad compiled with the contest winning video

would be run on the site and would also purchase a

brand channel.

COST

Media Plan

$300,00 + $40(CPM)

Options avai lable

50-60 million people predicted by 2011 in metaverses.

Brand could interact with

users virtually.

Avatars called “zwinky”

created

Options avai lable

Media Plan

Would develop a virtual version of every real jeans for the avatars

online through a virtual UnME retail store.

Would have contest to ask “Zwinkies” design the jeans

who’s winner jeans would be launched in real.

COST $200,000 + $100,000 (per year)

Options avai lable

80 million active users with 35% each year growth

It sells advertisement, banner ads, search ads and

also one can develop profile pages and widgets to

connect with consumers

Options avai lable

Media PlanWould develop a UnME brand profile and

UnMe widget where consumers could design jeans and post it and other fashion photos of

the page or share it with their friends.

Purchase targeted banner advertisements which would

be embedded in users “news feed” section.

COST$350,000

+ $600,000(per year)

Options avai lable

Risks associated and analysis of the

options

It is really just an aggregate of niches,

there is absence of community network there.

The brand’s target teen girlsMight feel reluctant to

upload their videos as it could even be

accessed by the strangers.

This option seems not benefial

because of lack of network and target

customers being teen girlsRisks &

analysis

Virtual might not turn into the real sale in stores.

Lack of seriousness as

for some people, it is merely a game.

There is lack of control here , also language &

local restriction is there.

Regarding the risks, and money, this option may be

ineffective for the brand

Risks & analysis

High advertising cost.Facebook fraud is

increasing , i.e. the brand page may even get spam

likes reducing its efficiency.

Using multiple options like widgets,

advertisements & profile page won’t be affected

much by fraud. Thus this option seems the more

reliable and efficient one.Risks & analysis

Proposed media plan and cost

analysis

Spending should be made

proportionate to the total time

consumers spend on media

sources.

31%

34%

7%

20%

8%

Proposed Media Plan

Should be the main focusCOST- $950,000

ONLINE MEDIA

Payment based on

click rates should be adopted as it tells about the

effectiveness of the current media plan.Proposed

Media Plan

ONLINE MEDIA

SEARCH AND BANNER

ADVERTISEMENT

Should be continued at least for the coming year

as online ads clutter is yet to come

COST- $500,000

Proposed Media Plan

TRADITIONAL MEDIA

TELEVISION COST- 0.31*13500000=$4,185,000

RADIO COST- 0.20*13500000=$2,700,000

MAGAZINES COST- 0.07*13500000=$945,000

NEWSPAPERThe company can also spend in newspaper

media as 8% time is given in that media.

COST- 0.08*13500000=$1,080,000

Proposed Media Plan

Total spendingOnline + traditi onal

950,000+500,000+4,185,000+ 2,700,000+ 945,000+ 1,080,000 =

$10,360,000=

Total money al located to media

$13,500,000

Money Left13,500,000 - 10,360,000 =

$3,140,000

=

=The remaining money could be allocated in television media

only as it is still the media having highest no of users and if the ad is creative enough could catch attention Proposed

Med ia P lan

RECOMMENDED FINAL

MEDIA PLAN

MEDIA ORIGINAL BUDGET(in 000’s)

PROPOSED BUDGET(in 000’s)

Television $10,000 $7,325

Magazines $2,000 $945

Radio $1,000 $2,700

Newspaper - $1,080

Online banner Advertising $250 $250

Google Search Advertising $250 $250

Facebook - $950

Total $13,500

FINAL MEDIA PLAN

THANK YOU

CREDITS

The Harvard Case- UnME Jeans: Branding in Web 2.0(With due thanks to the owners of Photographs)

Created by-

Deepali JainH.B.T.I. Kanpur

during internship by

Prof. Sameer Mathur, IIM

Lucknowwww.iiminternship.com