You and your team do marketing and sales support for “Real Simple Magazine.” You have been contacted by the CMO of Haier America (John O’Malley), who is requesting a meeting with you regarding a “marketing program for 2017+.” You are hopeful they are looking to do a multi-page ad buy for the magazine for 2016 and possibly beyond.
Instead, Mr. O’Malley says he and Haier America are actually looking for a true high-value strategic marketing partnership for the next two years. He goes on to tell you (under NDA of course), that the parent company is making changes to his company next month and that senior management decided to cut the entire marketing and advertising staff other than the CMO, VP of Marketing (Steven Menges), and the 10 interns that begin shortly, because they, “...want all the marketing $ spent on customer-facing marketing and achieving a “Wow Factor!”
The new Haier America marketing budget is $25M/year for two years and John and Steve will choose if most or all of it goes to one “marketing partner.”
Mr. O’Malley needs to present to his CEO and Board of Directors soon, so he’s asking you and your team to create and “pitch” a marketing program for Haier America in ~5 weeks.
He said the Board wants a PowerPoint presentation plus a “marketing action plan” write-up, which details the program’s different elements and details, so that’s what he wants from your team too.
He also said he wants each team member to present part of the plan so he can get a good idea of who he’ll be working with if your team is selected. You may ask the CMO and the VP of Marketing questions during the designated “project time” at the end of class each week until the deadline. Below are more assignment details supplied by Haier America’s CMO.
Assignment Details:
Develop a Marketing Action Plan (essentially a Marketing Plan which includes both strategy and tactics), and associated “Pitch Presentation” that includes all of the following elements:
Analysis of the current marketing situation (Market, Products, Competition, Distribution, Macroenvironment)
Analysis of the Key Opportunities and Issues facing this product or company
Financial and Marketing Objectives (with clear rationale)
Marketing Strategy for the Product Line
Action Plans for all key marketing programs within the plan Projected budget and returns on investment
Monitoring Controls/Metrics (to measure progress versus goals and enable the in-flight adjustments all plans require)
2. WHO ARE WE?
Gregory Chi
Wanling Zhao
Ruobing Chen
Yash Mehta
WHO ARE WE?
HAIER
OVERVIEW
OBJECTIVES
SWOT ANALYSIS
COMPETITIVE ANALYSIS
TARGET AUDIENCE
INTEGRATED MARKETING CAMPAIGN
TIMELINE
CAMPAIGN 1
CAMPAIGN 2
CAMPAIGN 3
CAMPAIGN 4
ADDITIONAL CAMPAIGNS
BUDGET & METRICS
RETURN ON INVESTMENT
CONCLUSION
QUESTIONS
3. HAIER
WHO ARE WE?
HAIER
OVERVIEW
OBJECTIVES
SWOT ANALYSIS
COMPETITIVE ANALYSIS
TARGET AUDIENCE
INTEGRATED MARKETING CAMPAIGN
TIMELINE
CAMPAIGN 1
CAMPAIGN 2
CAMPAIGN 3
CAMPAIGN 4
ADDITIONAL CAMPAIGNS
BUDGET & METRICS
RETURN ON INVESTMENT
CONCLUSION
QUESTIONS
HAIER Is A Chinese Multinational Consumer Electronics And Home Appliances Company
Famous For Providing White Goods To Its Consumers And Building An Eventful Experience
Designs, Designs, Develops, Manufactures And Sells Products Including Air Conditioners, Heaters,
Kitchen Appliances, Washing Machines, Refrigerators And Televisions
5. OBJECTIVES
WHO ARE WE?
HAIER
OVERVIEW
OBJECTIVES
SWOT ANALYSIS
COMPETITIVE ANALYSIS
TARGET AUDIENCE
INTEGRATED MARKETING CAMPAIGN
TIMELINE
CAMPAIGN 1
CAMPAIGN 2
CAMPAIGN 3
CAMPAIGN 4
ADDITIONAL CAMPAIGNS
BUDGET & METRICS
RETURN ON INVESTMENT
CONCLUSION
QUESTIONS
• Increase Brand Awareness & Customer Engagement For Each Target Audience
• Deepen Penetration In The Market To Increase Market Share
• Increase Reach And Awareness Of Haier Products
• Increase Haier’s Target Audience
• Integrate Multiple Media Channels In Order To Reach Larger Target Audiences
• Build A Community Amongst The Target Audience
6. SWOT ANALYSIS
WHO ARE WE?
HAIER
OVERVIEW
OBJECTIVES
SWOT ANALYSIS
COMPETITIVE ANALYSIS
TARGET AUDIENCE
INTEGRATED MARKETING CAMPAIGN
TIMELINE
CAMPAIGN 1
CAMPAIGN 2
CAMPAIGN 3
CAMPAIGN 4
ADDITIONAL CAMPAIGNS
BUDGET & METRICS
RETURN ON INVESTMENT
CONCLUSION
QUESTIONS
STRENGTHS
STRONG CUSTOMER BASE
STRONG DISTRIBUTION NETWORK
TARGET HAS HIGHEST HHI AMONG
WOMEN’S MAGAZINES
STRATEGIC PARTNERSHIP WITH RETAILERS
REACH AND EXPOSURE
WEAKNESSES
LIMITED TARGET AUDIENCE
OUT-OF-DATE CONTENT
TOO MANY ADS
LACK OF COUPONS
OPPORTUNITIES
MORE ACCESSIBLE
INCREASE SOCIAL TREND
INCREASE SHARIBILITY
THREATS
CUT THROAT COMPETITION
CHANGE OF PUBLIC’S READING STYLE
7. SWOT ANALYSIS
WHO ARE WE?
HAIER
OVERVIEW
OBJECTIVES
SWOT ANALYSIS
COMPETITIVE ANALYSIS
TARGET AUDIENCE
INTEGRATED MARKETING CAMPAIGN
TIMELINE
CAMPAIGN 1
CAMPAIGN 2
CAMPAIGN 3
CAMPAIGN 4
ADDITIONAL CAMPAIGNS
BUDGET & METRICS
RETURN ON INVESTMENT
CONCLUSION
QUESTIONS
STRENGTHS
LARGEST MARKET SHARE IN WHITE GOODS
LARGE CUSTOMER BASE
NEW CULTURE OF INNOVATION
EXPERTISE IN HOME APPLIANCES
GROWING INTERNATIONAL REACH
STRONG BRAND NAME & IMAGE
WEAKNESSES
PRODUCT FAILURES
POOR CUSTOMER SERVICE
LIMITED DISTRIBUTION CHANNELS
CANNOT PURCHASE ON WEBSITE
POOR CONSUMER AFFAIRS
OPPORTUNITIES
INCREASE REACH WITH REAL SIMPLE
TAP INTO DIFFERENT TARGET MARKETS
BRANDED CONTENT WITH REAL SIMPLE
INTRODUCE COUPONS AND DISCOUNTS
MAKE PRODUCTS MORE ACCESSIBLE
THREATS
HIGH COMPETITION IN THE MARKET
PRICE WAR WITH COMPETITION
LOW BRAND RECOGNITION AMONG
MARKET
9. TARGET AUDIENCE
WHO ARE WE?
HAIER
OVERVIEW
OBJECTIVES
SWOT ANALYSIS
COMPETITIVE ANALYSIS
TARGET AUDIENCE
INTEGRATED MARKETING CAMPAIGN
TIMELINE
CAMPAIGN 1
CAMPAIGN 2
CAMPAIGN 3
CAMPAIGN 4
ADDITIONAL CAMPAIGNS
BUDGET & METRICS
RETURN ON INVESTMENT
CONCLUSION
QUESTIONS
REAL SIMPLE
DEMOGRAPHICS:
Women aged 30(35)-54
PSYCHOGRAPHICS:
INCOME: $75k - $100k
EDUCATION: College Graduate Degree
EMPLOYMENT: Professional/Managerial
MARITAL STATUS: Single/Married with kids
HAIER
DEMOGRAPHICS:
College Students
Middle/Higher/Lower Income Young People
Baby Boomers (40s-60s)
Older People (>60s)
PSYCHOGRAPHICS:
INCOME: $75k - $100k
EDUCATION: College Graduate Degree
EMPLOYMENT: Professional/Managerial
MARITAL STATUS: Single/Married with kids
10. TARGET AUDIENCE
WHO ARE WE?
HAIER
OVERVIEW
OBJECTIVES
SWOT ANALYSIS
COMPETITIVE ANALYSIS
TARGET AUDIENCE
INTEGRATED MARKETING CAMPAIGN
TIMELINE
CAMPAIGN 1
CAMPAIGN 2
CAMPAIGN 3
CAMPAIGN 4
ADDITIONAL CAMPAIGNS
BUDGET & METRICS
RETURN ON INVESTMENT
CONCLUSION
QUESTIONS
COMBINED TARGET AUDIENCE
DEMOGRAPHICS:
WHO: Women & Men in the United States;
College Students
Lower/Middle/Higher Income Young People
Baby Boomers (40s-60s)
Older People (>60s)
AGE: 18-60
PSYCHOGRAPHICS:
Wellbeing-oriented:
Highly educated, high income earning, environmentally health
conscious, prioritize health when shopping
Social-Dining Oriented:
Prefer to eat out & show little interest toward kitchen
appliances. Less sensitive to price
Family Oriented:
Prefer clean and neat kitchen and household appliances and
are not reluctant to purchase new and large-sized appliances
Innovation Oriented:
Strongest need to make improvements and changes in their
lives. They take interest in large-sized kitchen appliances and
value family and the environment
Convenience Oriented:
They favor convenience in life over family health. Interested in
modern and large kitchen appliances
11. INTEGRATED MARKETING CAMPAIGN
WHO ARE WE?
HAIER
OVERVIEW
OBJECTIVES
SWOT ANALYSIS
COMPETITIVE ANALYSIS
TARGET AUDIENCE
INTEGRATED MARKETING CAMPAIGN
TIMELINE
CAMPAIGN 1
CAMPAIGN 2
CAMPAIGN 3
CAMPAIGN 4
ADDITIONAL CAMPAIGNS
BUDGET & METRICS
RETURN ON INVESTMENT
CONCLUSION
QUESTIONS
4 Major Campaigns:
Online Cooking Competition
Television Cooking Show
HotSpot and ChillSpot Event Experience
Mobile App – Community Based
12. TIMELINE
WHO ARE WE?
HAIER
OVERVIEW
OBJECTIVES
SWOT ANALYSIS
COMPETITIVE ANALYSIS
TARGET AUDIENCE
INTEGRATED MARKETING CAMPAIGN
TIMELINE
CAMPAIGN 1
CAMPAIGN 2
CAMPAIGN 3
CAMPAIGN 4
ADDITIONAL CAMPAIGNS
BUDGET & METRICS
RETURN ON INVESTMENT
CONCLUSION
QUESTIONS
March ’17 - June ’17 - “Star Chef” Online Competition
May ‘17 - Aug ’17 – “The Chill Spot”
Aug ‘17 - Oct ’17 - “Star Kitchen” TV Show
Nov‘17 - Feb ’18 - “The Hot Spot”
Mobile App: Throughout The Year
Mar ‘17 - June ‘17
May ‘17 - Aug ‘17
Aug ‘17 - Oct ‘17
Nov ‘17 - Feb ‘17
REPEAT
14. CAMPAIGN 2
WHO ARE WE?
HAIER
OVERVIEW
OBJECTIVES
SWOT ANALYSIS
COMPETITIVE ANALYSIS
TARGET AUDIENCE
INTEGRATED MARKETING CAMPAIGN
TIMELINE
CAMPAIGN 1
CAMPAIGN 2
CAMPAIGN 3
CAMPAIGN 4
ADDITIONAL CAMPAIGNS
BUDGET & METRICS
RETURN ON INVESTMENT
CONCLUSION
QUESTIONS
Summer Campaign: Chill Spots
Target Audience: Everyone
Time: May ‘17 - Aug ’17
An event with a cool experience
To beat the summer heat, we install a spot & invite the audience to step inside and beat the heat
The focus will be on Haier’s air conditioners and coolers
Once they chill at our #CoolSpot, they will beat the heat
With access to free Wi-Fi, they can download the app
15. CAMPAIGN 2
WHO ARE WE?
HAIER
OVERVIEW
OBJECTIVES
SWOT ANALYSIS
COMPETITIVE ANALYSIS
TARGET AUDIENCE
INTEGRATED MARKETING CAMPAIGN
TIMELINE
CAMPAIGN 1
CAMPAIGN 2
CAMPAIGN 3
CAMPAIGN 4
ADDITIONAL CAMPAIGNS
BUDGET & METRICS
RETURN ON INVESTMENT
CONCLUSION
QUESTIONS
Winter Campaign: Hot Spots
Target Audience: Everyone
Time: Nov‘17 - Feb ’17
Similar to the Summer campaign, we create the same event and experience to beat the winter cold It’s
time for our target to #TurnTheHeatUp
Focus on Haier’s heaters
16. CAMPAIGN 3
WHO ARE WE?
HAIER
OVERVIEW
OBJECTIVES
SWOT ANALYSIS
COMPETITIVE ANALYSIS
TARGET AUDIENCE
INTEGRATED MARKETING CAMPAIGN
TIMELINE
CAMPAIGN 1
CAMPAIGN 2
CAMPAIGN 3
CAMPAIGN 4
ADDITIONAL CAMPAIGNS
BUDGET & METRICS
RETURN ON INVESTMENT
CONCLUSION
QUESTIONS
Target Audience: Cooking Lovers/Housewives
Time: Aug ‘17 - Oct ’17, 7 P.M. every Friday on Times Warner
Focus: Haier’s Kitchen Appliances
Cost: $6,000,000
Metrics: TRP’s, Sales
17. CAMPAIGN 4
WHO ARE WE?
HAIER
OVERVIEW
OBJECTIVES
SWOT ANALYSIS
COMPETITIVE ANALYSIS
TARGET AUDIENCE
INTEGRATED MARKETING CAMPAIGN
TIMELINE
CAMPAIGN 1
CAMPAIGN 2
CAMPAIGN 3
CAMPAIGN 4
ADDITIONAL CAMPAIGNS
BUDGET & METRICS
RETURN ON INVESTMENT
CONCLUSION
QUESTIONS
Target Audience: Working Professionals with a healthy
lifestyle, on-the-go
Time: Throughout the Year
Focus: Build an online Community of #HaierHelpers
Cost: $750,000
Metrics: App Downloads, Interaction Tracking on App
20. ADDITIONAL CAMPAIGNS
WHO ARE WE?
HAIER
OVERVIEW
OBJECTIVES
SWOT ANALYSIS
COMPETITIVE ANALYSIS
TARGET AUDIENCE
INTEGRATED MARKETING CAMPAIGN
TIMELINE
CAMPAIGN 1
CAMPAIGN 2
CAMPAIGN 3
CAMPAIGN 4
ADDITIONAL CAMPAIGNS
BUDGET & METRICS
RETURN ON INVESTMENT
CONCLUSION
QUESTIONS
Social Media Promotion:
Ad Campaigns On Facebook/Instagram/Twitter Promoting Haier’s Products
Website Integration:
Blogs/Articles/Listicles/Diy Videos About Why And How To Buy Haier Products
Banner Ads On The Websites
Daily Content On All Social Media Channels
Print Ads In Real Simple Magazine
Ooh Advertising
21. SOCIAL MEDIA
WHO ARE WE?
HAIER
OVERVIEW
OBJECTIVES
SWOT ANALYSIS
COMPETITIVE ANALYSIS
TARGET AUDIENCE
INTEGRATED MARKETING CAMPAIGN
TIMELINE
CAMPAIGN 1
CAMPAIGN 2
CAMPAIGN 3
CAMPAIGN 4
ADDITIONAL CAMPAIGNS
BUDGET & METRICS
RETURN ON INVESTMENT
CONCLUSION
QUESTIONS
Social Media Promotion:
Ad Campaigns on Facebook/Instagram/Twitter promoting Haier’s Products
Website Integration:
Blogs/Articles/Listicles/DIY Videos about why and how to buy Haier products
Banner ads on the websites
Daily content on all Social Media Channels
22. PRINT ADS
WHO ARE WE?
HAIER
OVERVIEW
OBJECTIVES
SWOT ANALYSIS
COMPETITIVE ANALYSIS
TARGET AUDIENCE
INTEGRATED MARKETING CAMPAIGN
TIMELINE
CAMPAIGN 1
CAMPAIGN 2
CAMPAIGN 3
CAMPAIGN 4
ADDITIONAL CAMPAIGNS
BUDGET & METRICS
RETURN ON INVESTMENT
CONCLUSION
QUESTIONS
Print Ads in Real Simple Magazine:
Cost:
Full Page Ad: $230,200 x 12 = 2,762,400
Cover 4: $310,800 x 6 = 1,864,800
Cover 2: $287,800 x 6 = 1,726,800
Total: $6,354,000
23. OOH
WHO ARE WE?
HAIER
OVERVIEW
OBJECTIVES
SWOT ANALYSIS
COMPETITIVE ANALYSIS
TARGET AUDIENCE
INTEGRATED MARKETING CAMPAIGN
TIMELINE
CAMPAIGN 1
CAMPAIGN 2
CAMPAIGN 3
CAMPAIGN 4
ADDITIONAL CAMPAIGNS
BUDGET & METRICS
RETURN ON INVESTMENT
CONCLUSION
QUESTIONS
OOH Advertising:
Cost:
New York - Times Square: $2.5 Million/year
Subway Ads (Interior + Entrance Ads): $50,000 x 12 = $600,000/year
LA: $271,920 x 4(summer) = $1,087,680
Chicago: $251,430 x 4(winter) = $1,005,720
Boston: $218,988 x 4(Winter) = $875,952
24. BUDGET
WHO ARE WE?
HAIER
OVERVIEW
OBJECTIVES
SWOT ANALYSIS
COMPETITIVE ANALYSIS
TARGET AUDIENCE
INTEGRATED MARKETING CAMPAIGN
TIMELINE
CAMPAIGN 1
CAMPAIGN 2
CAMPAIGN 3
CAMPAIGN 4
ADDITIONAL CAMPAIGNS
BUDGET & METRICS
RETURN ON INVESTMENT
CONCLUSION
QUESTIONS
28%
27%
22%
15%
3% 3%2%
Budget Allocation
Print Ads OOH Events TV Show
Mobile App Social Media Online Competition
Budget: $25,000,000/Year
Spend: $22,818,352
Savings: $2,181,648
Allocation:
Print Advertising: $6,354,000
OOH: $6,069,352
Events: $5,000,000
TV Show: $3,560,000
Mobile App: $750,000
Social Media: $750,000
Online Competition: $335,000
28. CONCLUSION
WHO ARE WE?
HAIER
OVERVIEW
OBJECTIVES
SWOT ANALYSIS
COMPETITIVE ANALYSIS
TARGET AUDIENCE
INTEGRATED MARKETING CAMPAIGN
TIMELINE
CAMPAIGN 1
CAMPAIGN 2
CAMPAIGN 3
CAMPAIGN 4
ADDITIONAL CAMPAIGNS
BUDGET & METRICS
RETURN ON INVESTMENT
CONCLUSION
QUESTIONS
With The Integrated Marketing Campaigns, Haier Will Be Able To Reach A Larger Target Audience
Sales For Haier Appliances Will Increase Tremendously
Haier Will Penetrate Larger Markets Thereby Increasing Their Market Share