2009 Media Plan: Harley Davidson
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Transcript of 2009 Media Plan: Harley Davidson
2009 Harley-Davidson
Media Plan
By: Brian Moses
Table of ContentsExecutive Summary…………………………………………………………1Situation Analysis……………………………………………………..…2-7
Analysis of Marketing Objectives and Strategies……………..2Competitive Considerations……………………………………………3Target Audience…………………………………………………………….4Geography Breakdown ………………………………………………….5Timing and Purchasing Cycle…………………………………………6Media Mix…………………………………………………………………….7
Media Objectives, Rationales, and Strategies…………..8-12Target Audience Objective..……………………………………………8Timing/Scheduling Objective…………………………………………9Reach and Frequency Objective…………………………………….10Media Budget Objective……….……………………………………...11Geography Objective…………………………………………………….12
Flowchart…………………………………………………………….…….13-14Goal Summary……………………………………………..……………15-16Market List…………………………………………………………………….17Yearly Summary…………………………………………………………….18Monthly Detail (May)……………………………………………………19Frequency Distribution for May-August……………………..20
Executive SummaryWithin the past few decades,
Harley-Davidson has become more popular among females. Woman bike owners in the 850 cc class have grown 5.3 percent to 10.8 percent in the last ten years alone.
Harley-Davidson plans to improve on this market by increasing sales of all models 883cc – 1200cc among women by 3000 units in the next year. In addition to sales increase, Harley-Davidson will also improve upon its image to female riders.
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Analysis of Marketing Objectives and StrategiesMethods used to sell
product Outdoor Television (Spot, Cable,
Net) Newspaper Magazine
Market/Brand Brand/Product is at a
mature market level Market size for women is
7,000,000 Strong Brand Recognition Regionally and nationally
distributedBudget
Past Budget - $26,554,800 Current Budget -
$23,000,000
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Product
Sportster Prices
883 $ 6,999
Iron 883 $ 7,899
883 Low $ 7,999
1200 Low $ 9,799
Nightster $ 9,899
1200 Custom $ 9,999
XR 1200 $ 10,799
Competitor Considerations
Major Competitive Players BMW Cagiva Honda Motors Indian MC Kawasaki KTM Motorsport Polaris Suzuki Triumph Yamaha Victory M.C.
Competitor’s Media vs. Harley-Davidson’s Competitors use same media as Harley-Davidson
except for three. Syndication television, and national newspaper and radio.
However, these three mediums have a weak target audience and CDI
Harley-Davidson spends more ad dollars in every medium participated in except for cable TV. (Harley-Davidson $7,997,100 – Honda $8,510,100
Competitors spend most of their ad budget in March, April, May, and June
BMW AG $4,714.40
HARLEY-DAVIDSON MOTOR CO $26,554.80
HONDA MOTOR CO LTD $14,842.20
KAWASAKI $9,085.50
SUZUKI
$3,866.80
TRI-UMP
H MO-TOR-CY-
CLES LTD
$1,398.40
YAMAHA
CORP OF
JAPAN
$12,875.80
Ad Dollars Spent by Major Competitors and Harley-
Davidson
3
Target AudienceDemographics
Women ages 18-54Household income greater
than $50,000Employed – part or full timeCollege educationHome ownerMarried
PsychographicsStrong Confident WomenWomen wanting a sense of
adventure
4
Geography BreakdownBrand/Product/
Advertisement DistributionDistributed
nationally and regionally in West and East Central, and the South West.
Non MSA and MSA Suburban
Ads are distributed nationally with a heavy emphasis on spot advertising in prominent markets.
Top Geographic Areas
City CDI
San Diego, CA 159
Phoenix, AZ 153
Orlando et al, FL 149
Portland-Auburn, ME 149
Pittsburgh, PA 148
Tampa et al, FL 141
Wilkes Barre et al, PA 140
Birmingham et al, AL 130
Sacramento et al, CA 130
Harrisburg et al, PA 126
Norfolk et al, VA 125
Greenville et al, SC-NC 125
Nashville, TN 122
Charlotte, NC 122
Greensboro et al, NC 120
Raleigh et al, NC 115
Seattle-Tacoma, WA 114
San Antonio, TX 113
Buffalo, NY 113
Los Angeles, CA 111
Baltimore, MD 111
Atlanta, GA 109
Detroit, MI 109
W. Palm Beach et al, FL 105
Hartford & New Haven, CT 105
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Timing and Purchasing Cycle Purchasing Cycle
Typically bikes are purchased during the beginning of the warmer seasons and during holidays
Parts and Accessories and bought throughout the purchasing cycle
Purchasing months include – April, May, June, July, August, and December
Timing Cycle Recent advertising does not match up with
purchasing months Large part of the ad budget is spent in August
JAN 04
FEB 04
MAR 04
APR 04
MAY 04
JUN 04
JUL 04
AUG 04
SEP 04
OCT 04
NOV 04
DEC 04
Month
980.4 3756.3
3336.3
2976.5
1734.9
594.1 351.2 5526.9
2088.8
1357.9
2505.7
1345.8
$500.00 $1,500.00 $2,500.00 $3,500.00 $4,500.00 $5,500.00
Ad Dollars Spent per Month in 2004
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Media MixBrand
The Harley-Davidson brand has been turned into a lifestyle
Strong brand recognitionConsumers and non consumers immediately
associate the logo with the brand’s imageMedia vehicles matching the lifestyle
Simple images/messages are key as the brand/product does not need much explanation
Ideal mediums include mostly visuals – outdoor, print, direct mail
CONS MAGS; $11,758.70
LCL NWSP; $81.90 OUTDR; $531.30 NET TV; $5,807.00
SPOT TV; $348.70
CABLE TV; $7,997.10
NTL SPT RAD; $30.10
Current Ad dollars Spend Across Mediums
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Target Audience ObjectivePrimary Target Audience
Women 18 – 54 First time rider/buyers Employed House-Hold Income over $50,000
Secondary Target Audience Women 18 – 54 Owners of Harley-Davidson bikes Employed House-Hold Income over $50,000
Psychographics Strong Independent Women Wives of Harley-Davidson bike owners
Target Audience Sales ObjectiveIncrease sales of all models 883cc – 1200cc
among women by 3000 units in the next year.
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Timing/Scheduling ObjectiveSpring/Summer Months
Primary Scheduling April – September will be hit hard with
advertisements due to motorcycles being mostly weather-dependent
Approximately $2.8 million will be used per month for this time period
The advertising budget for these months will be spent fairly consistently.
The campaign will launch at the beginning of spring (April) to get riders excited for the summer months ahead.
Fall/Winter Months Secondary Scheduling October – March will not be as strong due to the
weather and lack of interest in the winter months Advertising in January will be significantly
reduced due to January being a ‘dead’ month. Approximately $1 million will be user per month
for this time period The advertising budget for these months will be
spent fairly consistently
Outlier Months December will have increased advertising
despite the winter due to the Christmas season. The ad budget for this month will increase to
$1.3million
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Reach and Frequency ObjectiveSpring/Summer Reach and
Frequency Objectives Spot reach – 80Spot frequency – 5National reach – 70National Frequency - 5
Fall/Winter Reach and Frequency ObjectivesSpot reach – 70Spot frequency – 5
December Reach and Frequency ObjectivesSpot reach – 80Spot frequency – 5National reach – 70National Frequency - 3
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Media Budget ObjectiveSpot and National Campaign
The budget will primarily be directed towards the spot campaign.
The spot campaign was chosen because of the high CDI numbers in select markets.
National ads will run far less than spot ads. Spot ad budget - $16million National ad budget - $7 million
Media Mediums used include national and spot
radio, magazines, internet, outdoor, and direct mail due to their high CDIs and strong following of consumers in the target audience
Net Radio; $7,084,000
Magazine; $7,000,400
Internet; $1,925,000
Spot Radio; $1,298,500
Outdoor; $5,233,300
Direct Mail; $1,420,800
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Geography ObjectiveBinghamton, NYSacramento - Stockton, CANorfolk et al, VAWilkes - Barre et al, PASan Diego, CATampa et al, FLCharlotte, NCPortland, ORGreensboro et al, NCGreenville et al, SC-NCHarrisburg et al, PANashville, TNOrlando et al, FLPhoenix, AZPittsburgh, PA
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FlowchartMedium Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Net Radio-Morning Drive 200 200 200 200 200 200 70 GRPs: 1,270$[000] 586 586 586 586 586 586 205 Cost: 3,724
Net Radio-Evening Drive 200 200 200 200 200 200 70 GRPs: 1,270$[000] 529 529 529 529 529 529 185 Cost: 3,360
Magazines-General Interest 20 20 20 20 20 20 GRPs: 120$[000] 297 297 297 297 297 297 Cost: 1,779
Magazines-Womens 30 30 30 80 80 80 80 80 80 30 30 50 GRPs: 680$[000] 230 230 230 614 614 614 614 614 614 230 230 384 Cost: 5,221
Internet-Trgtd Sites Imps/Mo Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes GRPs: 10$[000] 175 175 175 175 175 175 175 175 175 175 Cost: 1,750
Spot Radio-Morning Drive 30 30 30 80 80 80 80 80 80 30 30 5 GRPs: 635$[000] 33 33 33 88 88 88 88 88 88 33 33 6 Cost: 699
Spot Radio-Evening Drive 30 30 30 80 80 80 80 80 80 30 30 5 GRPs: 635$[000] 28 28 28 76 76 76 76 76 76 28 28 5 Cost: 599
Outdoor 1,234 1,234 1,234 1,234 1,234 1,234 1,234 1,234 1,234 1,234 1,234 GRPs:13,57
4$[000] 436 436 436 436 436 436 436 436 436 436 436 Cost: 4,797
Direct Mail 1 1 1 1 1 1 1 1 1 1 1 GRPs: 11$[000] 118 118 118 118 118 118 118 118 118 118 118 Cost: 1,302
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Flowchart (cont)Medium Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
National Only Area
GRPs 30 30 30 500 500 500 500 500 500 30 30 190 GRPs: 3,340
$[000] 230 405 405 2201 2201 2201 2201 2201 2201 405 405 774 Cost: 15,835
Reach 25 25 25 83 83 83 83 83 83 25 25 66
Avg. Freq. 1 1 1 6 6 6 6 6 6 1 1 3
Spot Only Area
GRPs 60 1295 1295 1395 1395 1395 1395 1395 1395 1295 1295 1245 GRPs: 14,858
$[000] 61 616 616 718 718 718 718 718 718 616 616 565 Cost: 7,398
Reach 30 89 89 91 91 91 91 91 91 89 89 87
Avg. Freq. 2 15 15 15 15 15 15 15 15 15 15 14
National+Spot
GRPs 90 1325 1325 1895 1895 1895 1895 1895 1895 1325 1325 1435 GRPs: 18,198
$[000] 292 1021 1021 2920 2920 2920 2920 2920 2920 1021 1021 1339 Cost: 23,233
Reach 47 91 91 95 95 95 95 95 95 91 91 93
Avg. Freq. 2 15 15 20 20 20 20 20 20 15 15 16
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Goal SummaryNational Plan Reach Freq. GRPs Share Est. $(000)
January 0 0 0 0 0
February 0 0 0 0 0
March 0 0 0 0 0
April 70 5 350 7.7 1,653.80
May 70 5 350 7.7 1,653.80
June 70 5 350 7.7 1,653.80
July 70 5 350 7.7 1,653.80
August 70 5 350 7.7 1,653.80
September 70 5 350 7.7 1,653.80
October 0 0 0 0 0
November 0 0 0 0 0
December 70 3 210 4.6 992.3
National Media 2,310.00 50.8 10,915.40
National Contingency 1,000.00
Total National 11,915.40
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Goal Summary (cont)Spot Plan Reach Freq. GRPs Share Est. $(000)
January 70 5 350 7.7 1,653.80
February 70 5 350 7.7 1,653.80
March 70 5 350 7.7 1,653.80
April 80 5 50 1.1 236.3
May 80 5 50 1.1 236.3
June 80 5 50 1.1 236.3
July 80 5 50 1.1 236.3
August 80 5 50 1.1 236.3
September 80 5 50 1.1 236.3
October 70 5 350 7.7 1,653.80
November 70 5 350 7.7 1,653.80
December 80 5 190 4.2 897.8
Spot Media 2,240.00 49.2 10,584.60
Spot Contingency 500
Total Spot 11,084.60
Total Plan 23,000.00
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Market ListMarket Name Rank CDI %US
Birmingham, AL 50 130 0.55
Charlotte, NC 31 122 0.81
Greensboro et al, NC 48 120 0.57
Greenville et al, SC-NC 35 125 0.72
Harrisburg et al, PA 47 126 0.59
Nashville, TN 33 122 0.79
Norfolk et al, VA 38 125 0.66
Orlando et al, FL 23 149 1.01
Phoenix, AZ 20 153 1.11
Pittsburgh, PA 17 148 1.24
Portland, OR 27 149 0.92
Sacramento-Stockton, CA 19 130 1.14
San Diego, CA 25 159 0.99
Tampa et al, FL 16 141 1.35
Wilkes-Barre et al, PA 49 140 0.56
15 Markets chosen, covering 13.01% of US households.
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Yearly SummaryReach Avg Freq GRPs $[000]
Goal Est. Goal Est. Goal Est. Diff. Goal Est. Diff.
January 70 47.1 5 1.9 350 90 -260 1,653.80 291.7 1,362.20
February 70 90.7 5 14.6 350 1,325.20 975.2 1,653.80 1,021.20 632.6
March 70 90.7 5 14.6 350 1,325.20 975.2 1,653.80 1,021.20 632.6
April 80 94.6 5 20 400 1,895.20 1,495.20 1,890.10 2,919.50 -1,029.40
May 80 94.6 5 20 400 1,895.20 1,495.20 1,890.10 2,919.50 -1,029.40
June 80 94.6 5 20 400 1,895.20 1,495.20 1,890.10 2,919.50 -1,029.40
July 80 94.6 5 20 400 1,895.20 1,495.20 1,890.10 2,919.50 -1,029.40
August 80 94.6 5 20 400 1,895.20 1,495.20 1,890.10 2,919.50 -1,029.40
September 80 94.6 5 20 400 1,895.20 1,495.20 1,890.10 2,919.50 -1,029.40
October 70 90.7 5 14.6 350 1,325.20 975.2 1,653.80 1,021.20 632.6
November 70 90.7 5 14.6 350 1,325.20 975.2 1,653.80 1,021.20 632.6
December 80 92.7 5 15.5 400 1,435.20 1,035.20 1,890.10 1,339.10 551
TOTAL 4,550.00 18,197.60 -13647.6 21,500.00 23,232.60 -1,732.60
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Monthly Detail(May)Medium Covg. Unit GRPs CPP CPM Total Cost
Net Radio-Morning Drive NATL :30 200 2,932 $4.43 586,400
Net Radio-Evening Drive NATL :30 200 2,646 $4.00 529,200
Magazines-General Interest NATL FPG 4C 20 14,828 $22.41 296,560
Magazines-Womens NATL FPG 4C 80 7,678 $11.61 614,240
Internet-Trgtd Sites Imps/Mo NATL 10MM/Mo Yes 175,000 $264.53 175,000
National Totals 501 4,394 $6.64 2,201,400
Spot Radio-Morning Drive SPOT :30 80 1,101 $13.31 88,080
Spot Radio-Evening Drive SPOT :30 80 944 $11.41 75,520
Outdoor SPOT 50 Show Yes 353 $4.27 436,112
Direct Mail SPOT 0.50/IMP 1 118,396 $1431.55 118,396
Spot Totals 1395 515 $6.22 718,108
Total Plan (Natl+Spot in combined area) 1896 1,540 $6.33 2,919,508
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Frequency Distribution forMay through August
May – August Frequency Distribution(same for all four months)
National Spot Combined
F F+ F F+ F F+
0 16.9 100 9.5 100 5.4 100
1 15.9 83.1 4.9 90.5 1.4 94.6
2 13.6 67.2 4.5 85.6 2.1 93.2
3 10.4 53.6 4.1 81.1 2.5 91.1
4 7.8 43.2 3.8 77 2.7 88.7
5 6 35.4 3.5 73.2 2.9 85.9
6 4.7 29.4 3.3 69.7 2.9 83.1
7 3.7 24.8 3.1 66.4 2.9 80.2
8 3.1 21 3 63.3 2.9 77.3
9 2.6 17.9 2.8 60.3 2.8 74.4
10 2.2 15.4 2.7 57.5 2.8 71.5
GRP: 500 1,395 1,895
Reach: 83.1 90.5 94.6
Avg Frequency: 6 15.4 20
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