Date post: | 21-Oct-2014 |
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Media PlanSarah M. Rubin
2010
About the Product• Online service offering
flat-rate DVD and Blu-ray Disc rental-by-mail and instant video streaming
• No late fees, No due dates
• Plans from $4.99 - $49.99 per month
• 12.3 million+ subscribers
• 10,000+ titles
• Ships 1.9 million+ discs per day
How it WorksDVDs by Mail:
1. Users sign up and create a list of movies, or a Queue
2. Netflix mails users movies from the Queue
3. Users watch the DVDs and keep them as long as they want
4. Users return viewed movies to get new ones from their Queue
Instant Streaming:5. Users watch online using Mac
or PC6. Users watch on TV via Netflix-
ready devices (Wii, PS3, etc.)
The Industry• The movie rental
industry is constantly having to adapt to new technology and social trends. Brick-and-mortar rental stores are overshadowed by online services, and now $1 rentals are being made available by kiosks all over the country.
• The industry is not yet oversaturated, but the amount of competition is certainly growing.
• In 2009, the industry grossed $6.5 billion in revenue, a 5% decrease from the year before.
• Digital Distribution (download-to-own, video-on-demand, etc.) revenue grew by 27% to $617 million.
Main Competitors• There are several smaller competitors like local
rental businesses and illegal online streaming websites, but Netflix’s two main competitors are Blockbuster (in-store & rental-by-mail) and Redbox ($1 rental kiosks).
Market Share Analysis
Netflix
26%
Redbo
x12%
Blockbuster17%
Other Kiosks
2%
Other
On-line
/Store-front44%
Netflix: $1.67 billion
Blockbuster: $1.08 billion
Redbox: $7.74 million
Other Online/Storefront: $2.85 billion
Other Kiosks: $1.3 million
Total Industry Revenue: $6.5 billion
Share of Wallet Percentages
Marketing GoalTo introduce Netflix to a new niche market, the LGBT
(Lesbian, Gay, Bi-Sexual, Transgendered) community, in order to increase subscriptions and
decrease rate of churn.
LGBT Market Demographics- Chicago
Chicago’s Market Rank 3
Total LGBT Adult Population
114,449
Average HHI $85,400+
Densely LGBT Populated Neighborhoods
Lakeview, Andersonville
LGBT Market Statistics• The Annual Value of
the LGBT Market is $515 billion
• 72% of LGBT online users prefer to buy from companies that advertise specifically to the gay market, and 87% say that they will remain loyal to those companies
• 65% identify themselves as having to have the "latest”
• 77% "believe in indulging in themselves”
• 52% use and/or subscribe to online services
• Online usage is 7-10 times above the national average
Consumer Profile- DemographicsThe “Trendy Gay
Professional”• Persons 25-54• Well-educated (College+)• Resides just north of the city
(Lincoln Park, Lakeview, Andersonville, etc.)
• Likely to own a pet (71%) and likely treat the pet as part of the family (91%)
• Likely to be politically active for causes such as LGBT rights, women’s rights, animal rights, and environmental issues.
Consumer Profile- Activities
• Surfing the Internet (176)• Reading Music,
Technology, Fitness, and Entertainment Magazines (123)
• Reading News Publications (124)
• Watching TV via online streaming or DVR
• Commuting via the CTA • Going to local LGBT
friendly clubs, bars, and events
• Caring for/playing with a pet
Ways to Reach the Consumer
Planning Parameters• Budget– $1,000,000.00
• Seasonality– Heavier TV in Q4 &
Q1– Heavier OOH &
Sponsorship in Q2 &Q3
– Focus on LGBT Pride Month (June)
• Geography
– Chicago (focus on Lakeview & Andersonville neighborhoods)
Media Objectives & Strategies
• To reach at least 50% of the target at least 3 times per week (R=50%, F=3.0x)
• To use a mix of print, interactive, television, OOH, and community event sponsorship to reach the target
• Concentrate on print, interactive, & OOH with a special focus on event sponsorship since the target is loyal to brands that support the LGBT community
• Complement the media plan with minimal television exposure.
• Consider adding more television in the future if budget allows
Media MixPrint Digital Commu
nity Events
OOH Television
Radio
Target is very
likely to read
newspapers and
magazines,
especially those
targeting to the LGBT
community
Target is very tech-savvy and is
frequently
online
Target is extremely brand loyal to
companies who openly support
the LGBT communi
ty through event
sponsorships and partnersh
ips
Target is always on the go, and
lives in a metropol
itan area, so is likely to take public
transportation
Target watches some fringe and late
fringe
Due to minimal usage by
our target, Radio will
not be included
or detailed in this plan,
barring any
remotes that come along as added
value to any of our
event sponsorshi
ps
Print• Concentrate on Print, Digital, & OOH with a
special focus on Event Sponsorship since the target is loyal to brands that support the LGBT community.
• Complement the media plan with minimal television exposure. Consider adding more television in the future if budget allows.
Publication Circulation Published Demographics
Red Eye 250,000 Daily Persons 18-40Average HHI:
$76,700
Time Out Chicago
52,660 Weekly Persons 21-39Average HHI:
$152,900
Boi Magazine
20,000 Bi-Weekly Persons 18-54Average HHI:
$50,000*
Chicago Reader
120,000 Weekly Persons 25-54Average HHI:
$57,817
*estimate based on averages by distribution area.
Print PlanPublicatio
nAd Size/Type Quantit
yCost Per
AdTotal Cost
Red Eye ¼ Page, 4 Color
50 $3,821 $191,000
Time Out Chicago
Full Page, 4 Color
7 $5,970 $41,790
Chicago Reader
Jr. Page, 4 Color
12 $3,732 $44,784
Boi Magazine
Full Page, 4 ColorPrime
Placement
6 $1,069 $6,414Total Print Cost: $283,988
Digital
• Gay Ad Network and Lesbian Ad Network can geo-target viewers in Chicago by city and by zip code, focusing on Andersonville (60640) and Lakeview (60657)
• Reaches over 6.6 million unique users on over 250 LGBT websites and social networking platforms
• Reaches over 500,000 unique users on ‘apple-approved’ LGBT mobile apps
• Buy 35 million impressions total
DigitalLeaderboards, Skyscrapers, Rectangles, Mobile Ad Units,& Custom Placements
Digital PlanMedia Vehicle Impressions CPM
Gay Ad Network 18,000,000 $10
Lesbian Ad Network
10,000,000 $10
LGBT Mobile Apps
2,000,000 $10Total Digital Cost: $300,000
Buy roughly twice as many impressions with Gay Ad Network because not only does the
demographic skew slightly male, but Gay Ad Network also includes some lesbian-targeted
media.
Community Events• Sponsor and participate in several different LGBT
events in order to show support for the LGBT community
• Community involvement not only shows a commitment to the LGBT community, but also to the Chicago
community as a whole
Community Events PlanEvent Date(s) Sponsorship
LevelCost Attendan
ce
Reeling Film Festival
Nov. 4-13
Presenting $10,000 17,000
Chicago Pride Fest
June 25-27
Presenting $20,000 45,000
Northalsted Market Days
Aug 7-8 Supporting $12,500 150,000
Out at Wrigley July 18 Homerun $10,000 40,000
AIDS Run & Walk Chicago
Oct. 2 Red Ribbon $5,000 6,000Total Community Events Cost: $57,500
Community Events Added Value
• On-Site Signage (banners, posters, street pole banners, etc.)
• On-Site Visibility (branded tents, tables, parade floats, etc.)
• :30 Spot on Screen before all films at Reeling Film Festival
• Logo Placement (event posters, press releases, media buys, etc.)– Comcast Spots (2
million+ impressions)– Logo w/ Link on all
interactive media buys
• Radio Coverage (Jack FM, Kiss FM, Q101, 750AM)
• Mentions on various social networking sites (facebook, myspace, twitter,etc.)
• Announcer Mentions and Verbal Thanks at all sponsored events
• Brand Ambassadors at all sponsored events
• Full-page 4-color Ads in program guides
• VIP passes to all sponsored ticketed events
• Swag Bags from various sponsors
Out of Home• Bus Shelters will go live in
June & October with Wallscapes and Branded Buses going live in June.
• June is National LGBT Pride Month, and there are several LGBT events throughout the month, many of which take place outdoors.
• AIDS Run & Walk Chicago is in October, as is the promotion for Reeling Film Festival in November, so all ad copy should reflect support for those specific events.
Out of Home PlanType Uni
tsLocation Duratio
nCost/Month
Total Cost
Bus Shelter
70 Lakeview, Andersonville
2 months
$35,000
$70,000
Wallscape
3 Lakeview 1 month
$40,000
$40,000
Branded Bus
120
#22, #36 1 month
$42,353
$42,353
Total Out of Home Cost: $152,353
Television• Buy :30 spots on Logo
(LGBT cable network) on a local level
• Ads will run in Q3 & Q4 for a total of 30 weeks.
• Ads will run during fringe and late fringe in winter months since that is when they are most likely to reach the target
Television PlanDaypart Points Per
WeekCPP Weeks Total
Fringe 15 $485 15 $109,125
Late Fringe
20 $296 15 $88,800
Total Television Cost: $197,925
Daypart Mix
Fringe43%
Late Fringe57%
Total Media Dollars SpentCommunity Events
$57,500Balance Remain-
ing $8,234
OOH $152,353
Television $197,925
Print $283,988
Interac-tive
$300,000
Sources
• MRI• Scarborough• Nielsen• DART
• Netflix.Com• Netflix Annual Report
• Media Kits from Logo, Gay Ad Network, Boi Magazine, Red Eye,
Time Out Chicago, Chicago Reader, & Facebook