Media Plan Jacob Como and Greg Schillinger Jour 495 April, 26, 2016 1
Situation Analysis: 's story began in 1820 when the Casella family planted grapes at their home in Italy. They began selling their wine, and continued to build their business over the next 137 years. In 1957, the family packed up and moved to Australia. After a decade, the family decided to re-start their business and re-kindle their love of wine making. Following cues from other Australian wine makers, Filippo Casella and his wife Maria soon perfected the brand. Decades later, in 2000, John, the son of Filippo, joined forces with another Australian Winemaker, W.J. Dutch & Sons, for what would soon be a very successful venture, known as. Today, nearly one third of the grapes used to create wines are still grown on the family's 540 acre vineyard in the Riverina region of Australia. (1) is just one of many wineries that call Australia home. In fact, Australian wine has been increasing in popularity in the United States. In 2015, with over 16 million cases of wine sold in the US, Australia has become the number two importer of wine, second only to Italy. A study from the United Kingdom's International Wine and Spirit Research (IWSP) did show that sales of still wine has decreased a small amount, but Australian wines are still at the top of the pack, so the small drop in sales is not an immediate issue. In fact, in certain sectors, sales of Australian wine has been increasing. According to the IWSP, sales of Australian wines retailing up to $7.99 were up 33 percent and sales of Australian wines priced at $8.00 and above were up 2
nearly 11 percent. (2) This is good news for the Brand, as the the bulk of their wine retails for about $7 to $25. In Pennsylvania, strong sales indicate that the wine industry is in a good position. The Pennsylvania Liquor Control Board released sales figures for the 2014-2015 fiscal year and sales of wine and spirits were up $95 million, topping out at $2.2 billion overall. Wine sales were slightly less than spirit sales- 49.37% vs 50.63% respectively. Still, it is obviously that the wine market in Pennsylvania is thriving. Allegheny County, Pennsylvania, which is home to Pittsburgh, tops the list of Pennsylvania county sales, which means that Pittsburgh is a good market to be focusing on. (3) Pennsylvania currently has strict laws which limits the location of wine sales to state owned liquor stores and select retailers. But those laws may soon loosen, and that would mean more opportunity for. In December of 2015, the Pennsylvania Senate voted in favor of House Bill 1690, which would expand wine sales in grocery stores and restaurants, while also keeping existing state run wine and spirits stores. This bill does not call for the privatization of the liquor industry in Pennsylvania, but provides more options for the distribution of wine. (4) Senior Jay Costa (D-Allegheny Country) said that HB 1690, known as the liquor modernization bill, is supported by Tom Wolf. The bill includes components that include: no restrictions on hours or Sunday operation of state liquor stores, grocery stores that currently sell beer may sell up to four bottles of wine, as well as allowing state stores to open up loyalty programs and accept coupons. (4) 3
Due to the increase in demand and rise in sales of Australian wine and the prosperous wine and liquor market in Pittsburgh and Allegheny county, as well as the possibility of new distribution outlets, has a good opportunity for increasing sales in the region. Marketing Objectives and Strategy Roughly two billion dollars of alcohol is spent in Pennsylvania alone every year. Wine sales represents roughly 45% of the statistic and wine makes up a small portion of that 45%. is one of the most popular wine manufactures exported by Australia to the United States, the goal of the campaign is to increase the awareness of wines in the Pittsburgh region from 10% to 20% by the end of Summer 2016. To achieve this goal of awareness the brand will: Focus branding in the 2nd and 3rd quarters finishing at the end of Summer 2016 Focused advertising to Fine WIne & Good Spirits stores around the Pittsburgh region and private wineries specializing in imported wines. Focused advertising in radio, magazines, and outdoor in hopes of reaching the consumer in an environment with readily available access to the product. The media plan will run April 1st through September 30th and will effect the middle two quarters of 2016. There will be an allotted $1,000,000 to spend on media creation/ advertising for the promotion and sales of wine. Advertising Objectives 4
In order to increase the brand awareness from 10% to 20% the advertising and promotions of wine will cater to the target demographic (adults 25-49) in the Pittsburgh area through creative, compelling advertising over magazine, radio, and outdoor. Seeing as many of YellowTail competitors don t advertise or promote on television, there will be a small focus to capture the potential lost customer base in the overlooked television sector. Most wine and alcohol drinkers in the Pittsburgh region purchase their goods at Fine Wine & Good Spirits stores (which is the Pittsburgh metro s exclusive liquor and wine store) or at other secondary sellers just outside the city limits (the Pennsylvania Liquor Control Board prohibits the sale of liquor or alcohol in any public stores or gas stations, however is being slowly integrated into businesses outside the city limits). Due to this, the media campaign will be designed to drive customers to those stores within the Pittsburgh metropolitan area, with focused advertising during summer months. This offers a good customer-client relationship because most Fine Wine & Good Spirits stores offer specials regularly throughout the summer season, complete with wine tastings in store for customers to sample the product right in the environment they would be buying the product. The advertising will better inform consumers of the wine and liquor stores that carry the brand, as well as inform them about the seasonal summer sales offered for the brand. This increased brand awareness and customer loyalty will ultimately increase sales in the Pittsburgh region and continue even after the April-September media plan finishes. Seasonality: 5
Good weather, family barbecues, and sleuths of summer holidays offers a great platform for wine to advertise their refreshing and flexible wine products during the 2nd and 3rd quarters of the 2016 calendar year. Rationale: The heavy-up marketing and planning period will exist during the April and May months with heavier periods of advertising in early July (July 4th) and September (Labor Day). Marketing and promotion will continue throughout both summer quarters with advertising campaigns centered around the summer holidays mentioned above. Target Audience wine appeals to anyone who is looking to buy bottles of high-quality, tasty, satisfying wine in the $8- $25 dollar range. Our target audience will be adults 25-49 and will not be narrowed. This adult population of the Pittsburgh market is roughly 700,000 people. The reason the audience is broad is due to the wide and affordable price range wine offers. The brand appeals to anyone looking to find an affordable wine for any occasion, and is not limited to high-income or expensive taste families. For example, someone with an annual income less than $25,000/yr. could very well purchase and drink the same bottle of wine that someone with an income over $75,000/yr. does. The Psychographics of the region include moderate, middle aged families with the adult members of the family being under 55 years of age. According to Nielsen Prizm, the Bohemian Mix makes up the top percentage of people living in the Pittsburgh metropolitan area, they: shop at the gap, read GQ, live in urban neighborhoods, and have a middle-upper income scale. The 3rd most common psychographic for the region 6
include Urban Achievers which include: people who have lower-mid income, live in urban neighborhoods, read New Yorker, and have an average age range under 35 years of age. With this information it further shows the importance for the brand to appeal to people in the age range aforementioned (25-49) and is not limited to any one budget scale. People with mid-high incomes and those with lower-mid incomes make up a significant and similar portion of the Pittsburgh metropolitan area, and should be continued to be viewed as the target demographic for the wine media plan. The Nielsen PRIZM ratings also offer great insight into what magazines and lifestyles interests our customer base has (urban living, shopping at mid-scale retailers, and reading popular magazine/news publications). S.W.O.T. Analysis: Strengths Strengths for the brand include the the fact that it is priced cheaply, while offering a range of varieties, it's catchy name and alluring Australian branding, it's enticing fruity flavors, as well as it's wide availability. also seems like an approachable, fun brand to buy for all ages and sexes. Weaknesses s low price point could also be a weakness. People buying wine might skip over the brand due to their perception that cheap wine is inferior. Adversaries to may also argue that since the company uses a large scale production model, the wine is less desirable that smaller vineyard's products. 7
Another weakness for the company might be that it is Australian, and although Australian wines are becoming more popular than ever, potential consumers might not realize that the wine from down under is worth trying. A final weakness that is specific for the Pennsylvania market is that currently, wine can only be sold in liquor stores. In other states, could promote and sell their product in grocery stores, restaurants, convince stores, etc, but in Pittsburgh, sales of the wine is limited to state run stores which currently has limited hours and days of operation. Opportunities An opportunity for the Brand in Pittsburgh is that the wine market is thriving in the region. Pittsburgh is home to many colleges and universities. These schools are full of college students looking for low budget, fun, decent wines. Yellow Tail is a perfect brand for them to purchase. As these students age, their love of Yellow Tail wine will stay with them and they. Another opportunity is the prospects of being able to sell wine in grocery stores and other locations. Threats An obvious threat to is the vast market of affordable wines. Liquor stores offer many wines that are priced at 's price point, as well as offering many sales on wines that are more expensive than. The threat of wines grown and produced in the United States is something to consider. Companies and vineyards that are located in the US may be able to make better wine for cheaper due to 's shipping costs and taxes. 8
Competitive Analysis The wine industry gathers most it s sales from commercial retailers, therefore radio spots, commercial magazines (fashion and health), and outdoor advertising offer the best mediums to reach the consumer in an environment where they are most likely to make a purchase of the product. Most of the direct competitors of don t focus on television advertising at all, so pursuing some sort of marketing and promotion over television could prove to be helpful in reaching our target demographic while our competitors are focused on more traditional outlets (such as newspaper). Below is a breakdown of our competitors advertising budget, and how they compare to each other: Competitor 1: Barefoot Television: $50,000 Newspaper: $100,000 Magazine: $500,000 Radio: $350,000 Outdoor: $150,000 Total: $1,150,000 Competitor 2: Sutter Home Television: $100,000 Newspaper: $50,000 9
Magazine: $200,000 Radio: $150,000 Outdoor: $150,000 Total: $650,000 Competitor 3: Beringer Newspaper: $50,000 Magazine: $200,000 Radio: $250,000 Outdoor: $50,000 Total: $550,000 Media Selection and Rationale The media plan will feature advertising over four mediums: television, magazine, radio, and outdoor. will use the competitor s advertising spending as a guideline, however plans to make more of an impact over television than our competitors as it will help gain the attention of the untapped audience our competitors are leaving behind. also recognizes newspaper advertising as a bad way to reach our demographic; most of our competitors choose to spend the least amount of their advertising dollars on newspaper promotion. The mediums chosen for the media advertising plan offer the most flexible and visible ways to increase brand awareness, as well as reach the consumer in a timely manner to make a purchase. 10
Como/Schillinger 11
TV Television is going to be an important part of our campaign early on in the second quarter of the of 2016. We feel that is a good brand for consumers to purchase and enjoy during the summer months, and because of this, we chose to have a heavy-up television schedule in April and May. This will allow the brand to have maximum impressions right before the beginning of summer. In April will will run 200 points a week for four weeks, for a total of 800 points. This will be our second most expensive month in terms of television advertising. Those 800 points will cost $120,000. In May, the second month of heavy-up television advertising, we will run 200 points a week for a total of 1000 points. This month will be the most expensive month only because there is one additional week in comparison to April. The total cost for the 1000 points in May will be $150,000. After April and May are over, advertising on television will slow to a maintenance level. We will pulse advertise until the end of November, running 100 points about every other week for 200 points a month at a cost of $30,000 per month. The four months that we will be pulsing for will earn us 1200 points in all and will cost a total of $180,000. We say that we will run "about" every other week because we will be making sure to advertising on weeks of holidays, which don't always happen every other week. Finally, after pulsing ends in Novmeber, we will heavy-up advertise in December. We will run 200 points a week for a total of 800 points at a cost of $120,000. This 12
December schedule will ensure that there is ample advertising during the holiday season, as many people enjoy wine during the holidays. The total impressions that we will get from our television schedule is 26,000,000 at a cost of $570,000. Television is a good opportunity for to advertising on because sight, sound, and motion are good ways to advertise, and seeing and hearing about refreshing wine will be beneficial during the sunny, exciting summer months. Historically, Yellow Tail has had very intriguing television advertising and we believe that ads like the ones used before will be very successful. The down side to television advertising is that it is not a low cost media class. This is why we utilize pulse advertising during the weeks in the middle of summer, while still hitting holidays in which consumers will be buying alcoholic beverages. Radio The second media class that we will be utilizing for advertising is radio. Radio is a good place to advertise because it has a high frequency and lower cost. It also has a high summer exposure and is excellent for mobile populations. This is great for our brand because summer is when we will be advertising and summer is also when people are on the move. Our radio schedule will consist of a heavy-up period during the months of April and May. We will run 150 points during the four weeks of April and the five weeks of May for a cost of $48,000 and $60,000, respectively. From these two months we will get 1,350 impression. 13
After the heavy-up period, we will pulse for the next four months (until September). We will run 50 points each week (100 points per month) for a cost of $8,000 each month. Our total cost of radio advertising is $140,000 and we will gain 12,250,000 impressions. Magazine The third media vehicle that we will use will be magazines. We will use MNI Beauty, MNI Entertainment, and MNI Healthy Living. We will advertise in Beauty on a pulsing schedule: in April, June, September, and December. This is because women most likely would read this magazine regularly, and a pulsing schedule maintains impressions for that particular magazine. The schedule is not evenly pulsed because we wanted to hit the first month of the campaign (April), June, because it is the start of summer and leads up to the Fourth of July, and December, because of the holidays. We will advertise in Entertainment in April, July, and August. This is because April is the beginning of the campaign, and July and August is when there are many concerts in the Pittsburgh region. Finally, we will advertise in Healthy Living in April, May, June, and July because, again, April is the start of 's campaign, and we expect people to be reading this magazine when summer is approaching, as well as when it in full swing. The total cost for magazine advertising is $160,675. The total impressions we will gain from magazines is 3,837,000. We feel that advertising in magazines is good for because it is selective, has a large pass-along audience, and looks very good in color. 14
Outdoor The fourth and final vehicle (literally) that we will be utilizing for advertising is busses. In April and May we will advertise on kings and bus cards. Then, in June, July, and August we will use queens and bus cards. Finally, in September, we will discontinue using queens and only advertise with bus cards. The total cost for outdoor advertising is $123,480 and the total impressions we will receive is 57,750. Outdoor advertising, specifically transit media, is beneficial because it provides mass coverage of the metropolitan area. This provides high frequency and efficiency. It is generally a low cost advertising vehicle. 15