PROYEK STRATEGI IKLAN UNTUK SUNBEAM Advertising Strategy [PDF]

UNIVERSITAS INDONESIA

PROYEK STRATEGI IKLAN UNTUK SUNBEAM Advertising Strategy Project for Sunbeam MAKALAH NON SEMINAR Diajukan sebagai salah satu syarat untuk memperoleh gelar Sarjana Ekonomi

CINDY MANILA SUKARYA 0906551565

FAKULTAS EKONOMI PROGRAM STUDI KELAS KHUSUS INTERNASIONAL DEPOK AGUSTUS 2013

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ABSTRAK Nama Program Studi Judul

: Cindy Manila Sukarya : Kelas Khusus Internasional : Proyek Strategi Iklan untuk Sunbeam

Laporan ini membahas tentang strategi iklan yang tepat untuk perusahaan Sunbeam sebagai perusahaan alat rumah tangga tertua yang ada di Australia. Namun, dikarenakan meningkatnya persaingan alat-alat rumah tangga dari berbagai macam negara, khususnya Eropa, persentase penjualan Sunbeam mulai menurun dari tahun ke tahun. Melalui laporan ini, akan dibahas bagaimana cara untuk kembali meningkatkan persentase penjualan tersebut melalui strategi rebranding untuk menggapai target konsumen yang baru dan lebih luas.

Kata kunci: Strategi iklan, rebranding

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ABSTRACT Name Study Program Title

: Cindy Manila Sukarya : International Class : Advertising Strategy Project for Sunbeam

This report will discuss about the right advertising strategy for Sunbeam as the oldest small house appliances company in Australia. However, due to the increasing number of competitors in the same industry from all over the world, especially from Europe, the sales percentage of Sunbeam has been increasing throughout the years. Through this report, we will discuss on how to pick up the sales through the rebranding strategy in order to reach new and broader target consumers.

Key words: Advertising strategy, rebranding

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DAFTAR ISI Executive Summary ....................................................... Error! Bookmark not defined. Table of Contents............................................................ Error! Bookmark not defined. Situation Analysis / Strategic Research ................. Error! Bookmark not defined. The Organisation................................................................................................... 12 Brief historical & background sketch ................................................................. 12 Organizational mission, organizational objectives, marketing objectives .......... 12 Organizational structure for advertising.............................................................. 12 Other relevant organizational factors .................................................................. 13 Market Research ................................................................................................... 15 Industry ............................................................................................................... 15 Competition ......................................................................................................... 15 Product Research .................................................................................................. 16 Product attributes ................................................................................................ 16 Competitive strengths and weaknesses ............................................................... 16 Other relevant product factors & key elements of marketing strategy ............... 16 Customer Insight Research .................................................................................. 17 Buying motives ................................................................................................... 19 Nature and extent of demand for product and brand........................................... 19 Buying habits ...................................................................................................... 19 Sources of customer information for this product category ................................ 20 Media habits ........................................................................................................ 20 SWOT Analysis ..................................................................................................... 21 Key Advertising Problem and Advertising Opportunity .................................. 21 Advertising Objectives ...................................................................................................23 Target Audience .................................................................................................... 23 Recommended Advertising Appropriation............................................................. 23 Creative Strategy ..............................................................................................................25 Advertising Message Idea ..................................................................................... 25 Message Format .................................................................................................... 27 Rough Ads and Commercials............................................................................... 29

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Print Ads ............................................................................................................. 29 TV Commercial ................................................................................................... 33 Media Strategy...................................................................................................................34 Media Objectives ................................................................................................... 34 Media Mix .............................................................................................................. 34 Magazines ........................................................................................................... 34 Outdoor advertising............................................................................................. 39 TV commercial.................................................................................................... 42 Total Media Cost ................................................................................................. 44 Media Schedule ................................................................................................... 45 Evaluation Strategy .........................................................................................................46 Conclusion ..........................................................................................................................47 References ..........................................................................................................................48 Appendix ........................................................................... Error! Bookmark not defined. Appendix 1 – Product Attributes ......................................................................... 51 Appendix 2 - TV Commercial Storyboard ......................................................... 55 Appendix 3 - Media coverage ............................................................................... 58

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CHAPTER 1: Situation Analysis / Strategic Research The Organisation Brief historical & background sketch

Sunbeam is a division of GUD Holdings Limited, a publicly listed Australian company. Sunbeam products are sold through an Australia-wide network of retail stores including some of Australia’s biggest retailers such as Myer, Harvey Norman, and Big W.

It harks back to 1910, when the company imported the revolutionary Princess Electric Iron from the U.S - and forever changed the way Australians took to their ironing. Following the popularity of this first small electrical appliance, Sunbeam began importing more and more - and in 1948, launched the Sunbeam Mixmaster, the first small electrical appliance to be manufactured in Australia. Costing more than a month's wages, the Mixmaster sold more than 725,000 units in just 10 years.

Organizational mission, organizational objectives, marketing objectives

Organizational mission 

Simplifying the lives of everyday Australians



Making simple, sophisticated, and elegant design products

Organizational objectives To produce long-term shareholder returns above the cost of capital and to maximize the value of its most important asset – its brand portfolio.

Marketing objectives Sunbeam’s current marketing objectives is to pick up their declining sales for the past 10 years due to an increasing competition from European brands that are cheaper.

Organizational structure for advertising

Sunbeam doesn’t have its own in-house advertising organization. For their 4

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previous TV commercials, Sunbeam had been using several advertising agencies such as Brave from Sydney for their “You Are My Sunbeam” TV commercial in 2010.

Image 1 - "You Are My Sunbeam" TV commercial by Brave agency, Sydney

Other relevant organizational factors Past advertising & promotion situation



Sunbeam’s focus on new products in the key selling periods of Mother’s Day, Father’s Day and Christmas.



Launching new products using a television infomercial, national magazine and publicity campaign to create awareness, product sampling to generate positive word-of-mouth, colorful packaging, cross-selling brochures, and publicity-driven coloring-in competitions.



Recent sales promotions have utilized sweepstakes and gift-with-purchase offers, designed to stimulate brand switching and further reinforce the Sunbeam franchise. (Ex: ‘I love Sunbeam’ Gold Heart and Chain Giveaway, ‘You Can Count on Sunbeam’ Win a Diamond Solitaire and ‘Sunbeam Cooking up a Storm’ Family Circle Bonus Cook Book offer.)



Sunbeam also utilizes packaging as a primary vehicle to maximize in-store impact and provide essential information to simplify purchase decisions.

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Product range



Kitchen products: toasters, kettles, frypans, food preparation appliances, snack makers, juicers, water chillers and filters, ice cream and milk shake makers, coffee machines and grinders, compact ovens and food preservation systems.



Household products: irons and ironing boards, electric blankets and throws and electric heating and cooling products.



Personal use products: hairdryers and epilators.



Outdoor entertaining products: electric grills and Innovo gas barbeques.

Financial situation

Due to an increasing competition in small appliance industry, Sunbeam has to suffer declining sales for the past couple of years. This fierce competition forced Sunbeam to lower its price in order to be able to compete with another cheaper brands. Table 1 – Sunbeam’s performance summary table

(in millions)

2009

2010

2011

2012

Segment Sales

$254,863

$249,721

$235,880

$219,164

$33,864

$38,847

$32,675

$140,114

$123,298

$121,912

Underlying Segment $29,940 Profit Segment Assets

Chart

1

$138,416

-

Performance

Summary

Chart

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Market Research

Industry

Small electrical appliances

Competition

Breville Small kitchen appliances maker; founded in Sydney, Australia in 1932. Financial situation

Performance summary ($ millions except where indicated) Tabl

2012

2011

e 2 -

Revenue

427.9

393.6

Brev

EBITDA

72.5

52.0

Net profit after tax

46.0

31.7

Earnings per share (cents)

35.4

24.5

ille's perfo rma nce sum

Return on equity (%)

25.9

20.7

mary

table

Advertising and promotion

 Amount spent: $16,817 millions.  Strategy used: Breville increased its marketing investment in key geographies with national television campaigns across the U.S., New Zealand, Canada and Australia. Running throughout the year, the campaigns focused on ‘seeing is believing’ and showcasing Breville’s flagship innovation. Product category distribution

Geographically, Breville distributes their products to Australia, New Zealand, North America, Canada, and to some Asia-Pacific regions through premium department stores and specialist electrical stores as their primary distribution channels, such as David Jones, Harvey Norman, and Target. These department

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stores and specialist electrical stores also distribute Breville’s products through their website so customer can buy them online. However, Breville does not use their website as one of their distribution channels just like most kitchen and small appliances brand.

Product Research

Product attributes

For the product attributes, please refer to Appendix 1.

Competitive strengths and weaknesses Table 3 - Competitive strengths and weaknesses

Strengths -

-

-

Weaknesses

The company has been well established for a long time Wide range of products and prices to suit a larger target market (kitchen appliances to health care appliances) Warranty and guarantee offers for all of their electrical products Offer support services for customers who experience problems with their products Provide extensive information about the product (features and specifications) on their website including the instruction booklet Provide information about where to purchase the product Provide an easy comparison feature between similar products on the website

-

Some categories only provide one of that product (e.g. mincers) Website doesn’t have a direct link to the retailers where the product can be purchased

Other relevant product factors & key elements of marketing strategy

Sunbeam Café Series includes kitchen appliances of commercial quality and highperformance products that are durable enough to be used on a daily basis for a

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long period of time. This is aimed towards businesses and people who want to use kitchen appliances for commercial reasons. This is a key marketing strategy as it provides kitchen appliances not only for household use, but also for commercial use in cafes, restaurants, bars etc. This strategy allows them to target a wider audience and attract more customers.

Customer Insight Research Target market definition Potential buyers for Sunbeam products tend to be older people from the ages of 30 and above, also with families, since Sunbeam is an older brand on the market. Their target market earns a mid to high income annually and has a university degree (Refer to Table 4). They value good education, strong work ethic, achievements as well family and social events (Refer to Table 5).

The primary core target market choice for Sunbeam should be focused on younger couples between the ages of 23 to 35. This market has not been penetrated by Sunbeam as of yet, as it is an older brand on the market. Young people and couples should be made more aware of the excellent quality and prices Sunbeam products offer. The growing trend in Australia reveals younger people and couples obtaining jobs earlier instead of starting families, which means their savings are greater. This also means they will be able to afford Sunbeam products. The chances are if young couples start off with choosing Sunbeam products over other brands, they will continue to purchase Sunbeam for the rest of their life and pass this knowledge onto their children. This will increase the overall market share for Sunbeam.

The secondary target market choice for Sunbeam should be focused on families, younger and older, with children. Sunbeam’s focus is current family oriented but they need to make this connection stronger. Research has revealed that Australian’s are not starting families until they are older (28-32) which means they have a greater chance to be successful and established in their chosen field of work. This also means their income on average is higher. Universitas Indonesia

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Table 4 - Demographics of people who purchase Sunbeam

DEMOGRAPHICS of target market of people who purchase Sunbeam products Age

30+ (Refer to Graph 1)

Gender

60% female, 40% male Family oriented

Education

High

education

standard

(University

degree) Income

Mid to high income range

Chart 2 - Age of Sunbeam current target market

Table 5 - Psychographics of people who purchase Sunbeam

PSYCHOGRAPHICS of target market of people who purchase Sunbeam products Club membership, strong work ethic, Activities social events Politics, business, education Opinions Interests

Family, job, achievements

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Buying motives

The main reason why people buy Sunbeam products is to make their life easier and for comfort reasons. Busy families purchase products that will benefits their whole family such as kitchen appliances to make cooking more efficient. This is the same for work-oriented people who are always in a rush or on the go. The target market of Sunbeam choose to buy their products over other brands for reasons relating to reliability, durability and quality. These elements satisfy numerous consumer needs and wants.

Nature and extent of demand for product and brand

Over the past 10 years, the demand for Sunbeam products has been on a steady decline. Sunbeam has also stopped a lot of their promotional campaigns, as they cannot afford it. Sunbeam used to be one of the most popular brands for household appliances relying on word-of-mouth advertising to convince customers to buy their products. Due to stiff competition from high-end Europeans brands as well as cheaper home brands, Sunbeam is suffering economically. The demise of Retravision as a major retailer also dented Sunbeam’s sales. In response to this, Sunbeam was forced to lower its product pricing to remain competitive. To begin to increase sales of Sunbeam products they need to increase the demand for them with a new advertising campaign targeting a different or larger target audience. Buying habits

The most popular time for the target market to purchase Sunbeam products is around November through to January. This is a seasonal holiday period where people tend to buy the products as gifts for other people. The most common way for people to purchase Sunbeam products is through the use of a credit or debit card as Sunbeam products are not disposable and therefore are more expensive. Everywhere Sunbeam products are sold, the choice of using card to pay is always an option.

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Sources of customer information for

this product category

Sunbeam products is through their website. Wordof-mouth used to be

the main

Image 2 – Retailers that sell Sunbeam’s products

communication travel but times have changed and the fastest and most efficient way to communicate information to consumers is through the Internet. Sunbeam also used mass media as a communication channel but mainly used it for promotion.

Media habits

Research has shown that the majority of Sunbeam’s target audience spends more time watching TV and reading magazines/newspapers over surfing the Internet and listening to the radio. This is because their target audience currently is older couples and families who have not been brought up with the Internet.

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SWOT Analysis Table 6 - SWOT analysis of Sunbeam

STRENGTHS WEAKNESSES - High quality products made with - Sales very slow just after the high quality materials Christmas holiday period - Products are durable - Lack of print advertisement - Warranty’s and guarantee’s for products - Range of prices to suit more consumers needs - Products target a large audience - Well-known and established brand image - Products sold in many different retail stores and online - Café series attracts a wider consumer market (commercial market) OPPORTUNITIES THREATS - Fierce competitiveness from - Shift their target market to focus on cheaper home brands and more a wider audience expensive European brands - Strategic alliance - Lowered prices to attempt to - Possibility of a merge with another compete which has pushed similar company their profit margin down - Make more products or introduce - Increased supplier and buyer new product categories bargaining power - New advertising campaign to increase target market and therefore overall sales Key Advertising Problem and Advertising Opportunity The key advertising problem Sunbeam has is its lack of print advertisement on magazines or newspapers. If we search on the internet, there’s no single printed advertisement will be found. There is only Sunbeam print advertisement from the 70s where their products are mostly no longer available now and the features are no longer applicable with today’s technology.

Also, Sunbeam is an older brand, which means younger couples and families may be unaware of its high-quality and wide range of appliances. So, Sunbeam should aim to target the younger generation to increase their awareness of Sunbeam products and how they can satisfy everyday consumer needs/wants. They should Universitas Indonesia

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advertise through magazines and TV as these types of media are the most commonly used with younger generations.

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CHAPTER 2: Advertising Objectives Target Audience For this campaign, we are targeting young couples or young families and newlyweds who have just begun their journey as a family with an age range of 23 to 30 years old. Since Sunbeam has been used for a long time ago, this brand has always been associated with an older buyer or market. Thus, in order to expand the consumer range, we decide to target the young family and newlyweds, especially the wives.

We would like to regain and increase our brand awareness from the usual level to 80% six months after the ad campaign’s launched, and increase the overall sales of all its product line by 15% to 20% after the ad campaign’s launch by creating a new brand image and restoring favorable brand association. We want to allow the consumers in the market to refresh their memories of Sunbeam and remember the brand through our new ads.

Recommended Advertising Appropriation The method chosen to determine the amount spend on advertising would be based on our advertising budget, taking into cost the cost of advertising on different TV channels, programs and time slots, reaching the major population and our target audience. We would do this by determining the programs and time slots our target audience would most likely engage on then allocate our TV advertisement budget according to the list of show vs. the number of our target audience. For the magazine advertisement, we would mainly place our ads on popular cooking magazines, since our products are cooking wares, as well as other popular magazines amongst our target audience.

According to our estimation, the media cost, which includes TV commercials, magazine ads, and outdoor advertising would be the largest section of the advertising budget. It is estimated to cost around 90% of our advertising budget,

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which

would

cost

approximately

AUD$6.3

million.

For the remaining AUD$700,000 would be allocated for primary and secondary research, which would cost approximately AUD$100,000 and AUD$50,000. In addition to both of the research, an amount of AUD$50,000 would be allocated for the advertisement design and AUD$100,000 would be assigned for commercial production. The remaining AUD$400,000 would be split half-half between administrative cost and emergency cost. The emergency cost would cover all the cost incurred due to any emergency issues, such as insufficient budget, a raise on advertising or production cost and the cost of delays etc.

Chart 3 - Sunbeam's advertising budget allocation

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Creative Strategy Advertising Message Idea The main idea of our new ad campaign for Sunbeam is “durable love”, which depicts the durability and reliability of Sunbeam’s products. Sunbeam products have been around since our grandparents’ era and have been used for over than 100 years, yet many people are still using this brand until now. Even some people are still keeping one or two Sunbeam’s products from their earlier age. Thus, in order to celebrate the durability of the brand and also the products, we created the “durable love” ad campaign that mostly will be depicted as close family relationship that lasts forever in all of our ads. Another purpose of this campaign is also to expand our target market to younger generations, especially newlyweds, young couples or young families.

Using emotional appeal for high involvement / think product For our proposed ad, we decided to use transformational advertising rather than informational. As electrical kitchen appliances, Sunbeam’s products falls in the first quadrant of the FCB Model (Ewing & Reed, 2004) where it is described as high involvement/thinking products, such as house, cars, and other important and costly products that require information before purchasing (Vaughn, 1980). According to the FCB Grid and Rossiter and Percy Grid (Vaughn, 1980; Rossiter & Percy, 1987), it is recommended that advertisers match the advertising appeal to the attitude basis, for example, use informational advertising for “thinking” products and transformational advertising for “feeling” products.

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Figure 1 - FCB model

However, there have been many studies that investigate whether advertisers should use a match strategy between advertising appeal and the attitude basis. For example, Dube et al. (1996) failed to find the concurrence with the recommendations of current planning models that attitude bases and ad content should match. She revealed that food products use informational appeals, although food product attitudes are primarily based on emotion. Another research (Williams, 2000) also revealed how a priori outboard motors, which is more of a “thinking” than a “feeling” product, uses emotional appeal for the ad that featured vignettes of families sharing special times in the outdoors together. Hence, by using mismatch strategy, there’s a chance that advertisements succeed in making consumers consider “thinking” products from perspectives that they have not thought of before which may help develop a richer, more elaborate network of associations (Aaker and Keller, 1990; Keller, 1993) and as a result, more positive attitudes.

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Message Format Tone (mood and manner) of ads According to Lee and Sternthal (1999), ads that give positive mood to the viewers enhance the learning of brand names and thus will increase the likelihood of brand recall. Along with the theme’s campaign, which is durable love, we want to let the audience experience and feel the warm atmosphere of the family relationship that Sunbeam will showcase in its new ad campaign. Warmth is defined as a positive, mild, volatile emotion, involving physiological arousal and precipitated by experiencing directly or vicariously a love, family, or friendship relationship (Aaker et al., 1986). Furthermore, according to Burke and Edell (1987) and Batra and Ray (1986), warm emotional responses have been found to be commonly evoked among advertising viewers.

Motivational appeal According to Kotler and Armstrong (1994), emotional appeals attempt to stir up either negative or positive emotions that can motivate purchase, including fear, guilt, and shame for negative emotions and love, humor, pride, and joy for positive emotions. In order to evoke the emotion of the customers when viewing Sunbeam’s ad, we are using emotional appeal ad to convey the message of the ad campaign and to motivate purchase actions. Some researches have also suggested that emotional appeal ads result in more positive reactions (Goldberg and Gorn, 1987) and higher levels of recall (Choi and Thorson, 1983).

Presentation method For the proposed ad campaign, we are using a combination of slice-of-life and dramatization ad execution techniques. Slice-of-life ad technique portrays a problem or conflict that consumers might face in their daily life and the product or service that is being advertised will resolve the problem, while dramatization ad technique focus on telling a short story with the product or service as the star (Belch & Belch, 2012). Through both of these combinations, Sunbeam wants to portray how the products are very relatable to consumers’ everyday life and are very close to the consumers emotionally. We also want to show that Sunbeam’s

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products have experienced a long family relationship due to its durability that enables it to witness the durable love of its owner to his or her family through the ad.

Slogan The slogan for Sunbeam’s ad campaign is “Durable Love”, which depicts the durability of Sunbeam’s quality through the ad theme of a long lasting family relationship. The “durable love” copy will be used in both of the TV commercial and the print ad series.

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Rough Ads and Commercials Print Ads

There will be 3 print ads that will be featured in some magazines to support our main ad, a TV commercial. Continuing from last year’s Sunbeam’s selling key point, two print ads will be created for Mother’s day and Christmas occasion and one regular print ad with no special occasion. 1. Mother’s day print ad

Image 3 - "Durable love is motherly love"

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The ad shows a multi-generation of women who are baking a cake together in the kitchen, with a copy ad on the side that says “Durable love is motherly love.” with a Sunbeam’s logo underneath. Two of the women in the ad are mothers and the daughter is also going to be a mother someday. Through this ad, we want to convey a message that motherly love is a durable love that will last forever and that family relationship also lasts forever. Although we won’t expect Sunbeam’s products to last forever, but we want to relate this message to the fact that Sunbeam’s products have a durable quality that will last a long time, and not a one-time product with a cheap quality. We also add a “Happy mother’s day” line on the ad for the Mother’s day celebration.

The font chosen on this ad is in a handwritten style to create a feeling of sincerity in conveying the ad, as if it’s a human’s handwriting. The font color chosen is grey which is less strong than black to go along with the subtlety of the theme color of the picture. We could see this ad potentially in women’s magazine, a food magazine, or even in a furniture magazine with an editorial layout or half-page magazine layout. This ad is also a good potential to be put on billboard on mother’s day.

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2. Christmas print ad This ad is created for Christmas day, which is one of Sunbeam’s best key selling points. The picture shows a young couple baking a cake together on Christmas day, with a copy ad underneath that says, “Durable love lasts all seasons, Merry Christmas.” Through this print ad, we want to convey the message of a warm Christmas celebration with our loved ones.

The font type chosen on this ad is still the same, which is the Figure42- -"Durable "Durablelove lovelasts lastsall allseasons" seasons" Image

handwritten type and the color used is still using a subtle color.

There is also a Sunbeam’s logo underneath the copy ad for brand awareness.

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3. Forever love print ad

Image 5 - "Durable love lasts forever"

The ad shows a couple of husband and wife in the kitchen cooking together. The picture on the left shows when they were just got married in 2013 and they were cooking together as a new family in the kitchen. As a newlywed, surely they were madly in love to each other; even they were staring into each other’s eyes when cooking. The picture on the right side still shows the same couple but in the future year, which is 2038, and shows how they are still madly in love to each other after 25 years being together which is shown from their eye-to-eye contact while the husband hugging the wife from behind while they are doing their favourite thing together, which is cooking. Underneath the “2038” script, we added “and still counting…” line to emphasize that their love and relationship as a family and a couple will still going strong for years to come. Underneath of this ad, we put the “Durable love lasts forever.” copy ad to convey the whole message about real love that

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lasts forever like the couple in the ad, which we want to relate, again, to the durability of Sunbeam’s products.

TV Commercial

A 30 seconds TV commercial is created as our main ad for the “durable love” campaign. This TV commercial is using a combination of slice-of-life and dramatization ad execution technique to evoke the viewers’ emotion in relating to their everyday life (see Appendix 1 for storyboard).

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CHAPTER 3: Media Strategy Media Objectives The campaign will run in a 12-month campaign period with the target audience of young couple or young family, age less than 35 years old (Australian Bureau of Statistics). The total target consumers are approximately 425,000 households of young couple (Australian Bureau of Statistics) and we’re aiming at reaching at least 50% of the households or around 212,500 households.

Media Mix Magazines

Magazines will be our primary media vehicles for this campaign to maximize the reach of the print ads. We are going to put this ad on the magazines that relate with the product the most, which are women’s magazines, food magazines, and homes and furnishing magazines.

Figure 2 - Top ten magazines among 25 - 34-year-old-women with kids and without kids

According to Roy Morgan Research, women without kids mostly read women’s magazines and home and furnishing magazines, such as Women’s Weekly and Better Homes and Gardens magazine like it is shown in Figure 2 above. Thus, we will put our print ads in both of these magazines. Since kitchen appliances are

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closely related to food, we will also put our print ad in food magazines such as Super Food Ideas.

Figure 3 - Women's Weekly magazine's readership

Figure 4 - Better Homes and Gardens magazine's readership

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Figure 5 - Super Food Ideas magazine's readership

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Layout For each of these magazines, we will put the print ad in full color and full-page spread, positioned in the first half of the magazine content to adjust with the advertising budget.

Image 6 - Sunbeam ad layout in magazine

Advertisement cost

Figure 6 - Women's Weekly magazine's advertisement rates

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Figure 7 - Better Homes and Gardens magazine's advertisement rates

Figure 8 - Super Food Ideas magazine's advertisement rates

Referring to Figure 6, 7, and 8, hence the total cost of magazine’s advertisements for Sunbeam is calculated in the table below:

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Table 7 - Total magazine advertisement cost

Magazine Women’s Weekly Better Homes Gardens Super Food Ideas

Full-page & color (6x) $34,120 and $27,602 $16,650

Prime Position 1st Quarter: $10,236 First half RHP: $4,140 IFC: $19,980

TOTAL COST $ 112,728 Full-page & color (6x) + Prime position Table 8 - CPM

Magazine Women’s Weekly Better Homes & Gardens Super Food Ideas

Rate $ 44,356 $ 31,742

Audience (‘000s) 261 237

CPM $169 $133

$ 36, 630

202

$181

Better Homes & Gardens is the cheapest and most cost efficient, however Women’s Weekly has the highest reach among the all of the magazines. Reach, Frequency, GRP, and Impressions Total target consumer: 425,000 households Table 9 - GRP and impressions

Magazine Women’s Weekly Better Homes & Gardens Super Food Ideas

Readership 261,000

% Reach 61%

Frequency 6

GRP 366

Impressions 1,555,500

237,000

56%

6

336

1,428,000

202,000

47%

6

285

1,211,250

Outdoor advertising

Outdoor advertising has evolved to the extent that it can be almost as useful as some traditional forms of advertising like newspaper, radio and TV (Lichtenthal, 2006) because it delivers its message to people on their way to work, play, or shop (Wilson, 1952). One of the biggest advantage of outdoor advertising is that the

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audience cannot zap, discard, or even click away from it (Business Wire, 2002). That is why we think outdoor advertising is also as important as print ads and tv commercials in reaching target consumers. For outdoor advertising, we will use 2 media, which are bus shelter advertisement and billboard.

Bus shelter advertisement

We will put the print ad in bus shelter advertisement form all over Australia in the CBDs and suburbs (please refer to Appendix 3 for coverage map). Advertisement cost

Figure 9 - Bus shelter ad rates Source: http://www.billboardsource.com/ Table 10 - Total bus shelter advertisement cost

4+ units Production cost Panels Months TOTAL (Production cost x 200 panels) + (4+ units x 6 months x 200 panels)

Rates $250/month $100/ panel 200 panels 6 months $ 320,000

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Layout

Image 7 - Bus shelter ad layout

Billboard

We will place 10 billboards across the country in the busiest spot in the CBD and inner CBD area of each state (please refer to Appendix 2 for coverage map) for 6 key months (will be explained in media schedule part). Each billboard has over 40 square meters of advertising impact. The billboard specification is 12.66m x 5.35m sites.

Advertisement cost Table 11 - Total billboard advertisement cost

Market rate Installation Print production TOTAL ((Market rate x 6 months) + installation + print production) x 10 billboards

Price $20,000 per month $ 800 $1,195 $ 1,219,950

Source: http://www.billboardsmelbourne.com.au/billboard_prices.html#

Layout

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Image 8 - Billboard layout

TV commercial

The TV commercial will run for 30 seconds on Channel 10 during the Master Chef TV show as it is a very good chance for the TV commercial to be seen by the Master Chef TV audience who loves cooking. Master Chef show runs for 2.5 months per season and usually runs from the beginning of May to the end of July. The ad will run in full 2.5 months long and will be shown 4 times during the show or in commercial break. Advertisement cost Below is the cost for airing a TV commercial during the Master Chef show on Channel Ten.

Figure 10 - Cost of airing a TV commercial during shows in Channel 10 Source: http://lrrpublic.cli.det.nsw.edu.au/lrrSecure/Sites/LRRView/8892/documents/ad_rates.doc

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And below is the national advertising production cost in average.

Figure 11 - Average TV commercial production cost

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Table 12 - Total TV advertisement cost

Rates $ 300,000 Production cost (in average) Airing cost (during average $ 11,500 Master Chef episodes) Airing cost (during final night $ 23,800 Master Chef episode) Airing cost (regular, not during $3,000 any TV show) TOTAL $ 5,076,000 Production cost + ((average MC episodes x 70 days) + (final night x 5 days) + (regular commercial x 90 days) x 4 times/day) Total Media Cost Table 13 - Grand total of the media cost

Magazine ad cost Bus shelter ad cost Billboard cost TV commercial cost GRAND TOTAL

Rates $ 112, 728 $ 320,000 $ 1,219,950 $ 5,076,000 $ 6,728,678

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Media Schedule

Figure 12 - Media scheduling

For the magazine ad, we use the continuity scheduling where the campaign will be running for half of the campaign period (December 2013 – June 2014). The reason why is because placing the cost in placing magazine advertisements is not as high as outdoor advertisement and TV commercial. The readership of these magazines is also quite high which can help us maximizing our target reach.

For the outdoor advertisement, we choose the flighting scheduling because we consider the cost of the outdoor advertisement, which is quite expensive. So, we will put the ad on the billboard only 3 times during the campaign period that coincides with our key selling month, which is December – January for Christmas and April – May for Mother’s day.

As for the TV commercial, we are using the seasonal priming pattern where the ad will be shown 3 months before the Master Chef show starts to warm up the audience with less intensity and then in full intensity while show airs. However, we will still air the ad even after the show finished so the audience do not forget about Sunbeam although the ad will not be aired as intense as during the Master Chef show.

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CHAPTER 4: Evaluation Strategy Successful advertising depends upon executions, which are effective for the campaign’s objectives. The campaign will carry out a tracking method to measure its effectiveness in distinguishing Sunbeam within the marketplace and positioning of the products in consumer minds.

Outdoor advertising can be measured through Daily Effective Circulation (DEC) and Eyes On Impressions (EOI) (Alasdair, 2005). DEC is the average number of Persons 18+ potentially exposed to an advertising display each day, while Eyes On Impressions (EOI) is the average number of persons who are likely to notice an ad on outdoor display each week. EOIs are generally used together with DECs by a formula that accounts for display size, visibility and physical characteristics of each display that effect drawing power of the billboard (Alasdair, 2005). Apart from this, a slogan should be included in the billboard and the bus shelter ad in order to strengthen the main message of the ad. Also, a colorful and bright ad can catch the audience’s eyes and their attention.

The effectiveness of TV commercial can be measured by its rating. In addition, it can be measured by examining the sales. If there is a buzz in sales, this is an indication of how effective the commercial is. Sunbeam can set a target reach to determine TV commercial effectiveness.

According to Belch (2012), the impact of product image in print advertisements can be measured through personal interviews and online panels to determine consumer perception. An online poll will be posted on Sunbeam homepage to understand consumers’ perception of the magazine ad and determine its position within the marketplace. Additionally, face-to-face interviews will be conducted throughout shopping malls as participant response can be measured more accurately through verbal and emotional cues as well as body language (Opdenakker, 2006).

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Conclusion Sunbeam has been established over 100 years and most of its users are the older generations that have grown up with the brand. We think that it is the time for Sunbeam to target a new, fresher and younger target market, creating a new generation of Sunbeam users.

With all the media mix that we are using, we are confident in reaching at least 50% of our target market for this campaign, which is a young couple age less than 35 years old all over Australia within the advertising budget of $7,000,000. By using the emotional appeal in our ad campaign, we hope that the ad will capture the target consumers’ heart, especially the women in the young household as women tend to have the most attachment with their cooking tools. Also, as our main objectives of this campaign, we hope that Sunbeam could pick their sales up and get back as the leading small kitchen appliances seller in Australia.

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References Aaker, D. A., Stayman, D. M., & Hagerty, M. R. 1986. Warmth in Advertising: Measurement, Impact and Sequence Effects. Journal of Consumer Research, 12: 365-381. Aaker, D. A. & Keller, K. L. 1990. Consumer Evaluations of Brand Extensions. Journal of Marketing, 54(1): 27- 41. Alasdair, R. 2005. Outdoor Audience Measurement. Campaign, suppl. THE TOP 300 AGENCIES, 10. Australian Bureau of Statistics. Australian Social Trends 2006. Australian Bureau of Statistics 2007, Australian Social Trends, Canberra, viewed 15 May 2013, Australian Bureau of Statistics. Australian Social Trends 2009. Batra, R. & Ray, M. 1986. Affective Responses Mediating Acceptance of Advertising. Journal of Consumer Research, 13: 234-239. Belch, G. E. & Belch, M. A. 2012. Advertising and Promotion: An Integrated Marketing Communications Perspective 9th ed. New York: McGrawHill/Irwin. Belch, G. E., Belch, M. A., Kerr, G. & Powell, I. 2012. Advertising: An Integrated Marketing Communication Perspective (2E). NSW: McGraw-Hill Australia Ptd Ltd. Breville Group Limited Annual Report 2012. Burke, M. C. & Edell, J. A. 1987. The Impact of Feelings on Ad-Based Affect and Cognition. Journal of Marketing Research, 26: 69-83. Choi, Y. & Thorson, E. 1983. “Memory for Factual, Emotional and Balanced Ads Under Two Instructional Sets” in Fletcher, A.D. (Ed.), Proceedings of the 1983 Conference of the American Academy of Advertising, University of Tennessee, Knoxville, TN. Dubé, L., Chattiopadhyay, A. & Letarte, A. 1996. Should Advertising Appeals Match the Basis of Consumers’ Attitudes? Journal of Advertising Research, 82-89.

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Ewing, M. T. & Reed, P. W. 2004. How Advertising Works: Alternative Situational and Attitudinal Explanations, Marketing Theory, 4(2): 91 – 112. Goldberg, M. E. & Gorn, G. J. 1987. Happy and Sad TV Programs: How They Affect Reactions to Commercials. Journal of Consumer Research, 14: 387403. GUD Holdings Annual Report 2011. GUD Holdings Annual Report 2012. Keller, K. L. 1993. Conceptualizing, Measuring, and Managing Customer-Based Brand Equity. Journal of Marketing, 57(1): 1-22. Kotler, P. & Armstrong, G. 1994. Principles of Marketing, 6th ed. Englewood Cliffs, NJ: Prentice-Hall. Lichtenthal, J. D. & Donthu, V. Y. N. 2006. Outdoor Advertising for Business Markets. Industrial Marketing Management, 35: 236 – 247. Millar, M. G. & Millar, K. U. 1990. Attitude Changes as a Function of Attitude Type and Argument Type. Journal of Personality and Social Psychology, 59(2): 217-28. Opdenakker, R. 2006. Advantages and Disadvantages of Four Interview Techniques in Qualitative Research. Forum: Qualitative Social Research, 7(4). Quinn, K. 2009. Results of 4A’s 2008 Television Production Cost Survey, online bulletin, Rossiter, J. R., Percy, L.
 & Donovan, R. J. 1987. Advertising and Promotion Management. New York: McGraw-Hill. Sternthal, B. & Lee, A. Y. 1999. The Effects of Positive Mood on Memory
 . Journal of Consumer Research, 26(2): 115-127 Sunbeam Australia: small electrical appliances 2013, Sunbeam Products, Australia viewed 16 May 2013, Supski, S. 2007. It Was Another Skin: The Kitchen in 1950s Western Australia. Peter Lang: Bern, Switzerland. Vaughn, R. 1980. How Advertising Works: A Planning Model. Journal of Advertising Research, 20(5): 27 – 33. Williams, P. 2000. The Impact of Emotional Advertising Appeals on Consumer Implicit and Explicit Memory: An Accessibility / Diagnosticity Perspective.

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The Wharton School, University of Pennsylvania. Wilson. T. N. 1952. Essentials of Outdoor Advertising. Association of National Advertisers.

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Appendix Appendix 1 – Product Attributes Table 14 - Sunbeam's most popular products

Product categories

Function

Features for most expensive product in the range

Expresso machines

Makes coffee

Coffee grinders

Grinds whole coffee beans

Drip filters

Automatic coffee brewer

Automatic pump espresso machine with LCD, One touch operation for café lattes, Milk frothing system for café lattes, cappuccinos or grande lattes, Intuitive LCD - simple to follow, Programmable for personalised coffees, Compact size, 15 BAR pump, Thermoblock heating system, 1.4 litre removable water reservoir, Automatic cleaning and descaling programs, Milk system cleaning program, Adjustable coffee dispensing spouts, Adjustable conical burr grinder, Adjustable coffee beans container capacity No mess design, 40 grind settings, Large 400g bean hopper with cone design for improved performance, Large removable base plate for easy cleaning and tamping pad for preparing coffee handle, Grind directly into coffee handle grind only what you need to maintain bean freshness, Conical burrs, Powerful DC motor for slow speed grinding which optimises bean profile, Removable burrs for easy cleaning, Die cast body 12 cup drip filter coffee maker, Programmable timer for auto-brew, LCD 24 hour clock, 1100 watts for fast, hot coffee, Permanent mesh filter basket, Removable filter basket holder, Anti-drip valve, Multi-dispersion screen, Thermostatically controlled non-stick warming plate, Easy-read water gauge

Features for least expensive product in the range Manual pump espresso machine, 15 BAR pump - Italian made, Thermoblock heating system, Crema system Italian designed, 1.3 litre removable water reservoir, Large cup warming tray, Large cup height clearance - fits mugs, Accessories: 500mL stainless milk jug, coffee spoon with tamp

Price range ($)

Warranty

Min: 999 Max: 119

12 months

Coffee bean, herb and spice grinder, Brushed stainless steel design, Stainless steel wingblade system, Stainless steel grinding bowl, One touch operation, Transparent lid, 165 watt motor, Cord storage

Min: 34.95 Max: 249

12 months

12 cup drip filter coffee maker Fast brewing, Coffee strength selector - mild to strong, Permanent mesh filter, Anti-drip valve, Easy-view water gauge, Thermostatically controlled warming plate, Easy to operate On/Off switch

Min: 34.95 Max: 64.95

12 months

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Mixers Bench

Automatic hands-free mixer

Mixers Handheld

Hand-held mixer

Food processors

Mix, blend, cut, chop, dice food

Kettles & Urns

Boil/heat water

Planetary mixing action, 1000 watt motor, Full die-cast body with sintered metal gears, 12 variable speeds, 4.5 litre capacity stainless steel mixing bowl, Mixing attachments:
 die-cast beater
 Scrapemaster™ spatula beater
 whisk
 dough hook, LCD screen with timer functions:
 count-up 
 countdown
 kitchen timer
 stopwatch, Instant 'Pause' function, Splashguard with pouring chute, Cord storage Powerful 350 watt motor, 6 speeds plus 'boost’, Stylish design, 'V-groove' beaters, Dough hooks, Balloon whisks, Quick release ejection button

Extra wide chute: 14cm wide to avoid cutting food into pieces, Second smaller bowl: ideal for dressings or chopping herbs, Auto pulse: chop with integrity for a predetermined length of time, On-board storage drawer: store accessories in one place, 1400W motor, Die case construction, 2L capacity bowl, Chute safety interlock feature, Patent-pending robust stainless steel interlock, prevents food catching and building up, ensuring easy cleaning, Attachments: 'S' blade; Variable slicing blade, julienne disc, course & fine shaving disc, grating disc, shredding disc, small 's' blade, Cord storage Stainless steel with contrasting brushed and polished components, 1.8 litre / 7 cup capacity, Easy to use control panel with 5 brewing temperatures: 80°C, 85°C, 90°C, 95°C and 100°C, LCD screen displays water temperature and time remaining until selected water temperature is reached, Keep Warm function maintains

Stand/hand mixer, 350 watt motor, Dual bowl speed control, 3.1 litre shatterproof plastic bowl, 10 speeds plus 'Boost’, Tilt back and lock down mixer head, 'Vgroove' beaters

Min: 99.95 Max: 499

5 year motor, 12 month

Lightweight hand mixer, folds, creams, mixes, beats and whips, 200 watt motor, 5 speed plus 'Boost', 'V-groove' beaters, Ejection button 450 Watt motor, 500mL Processing bowl, 2 Speeds, Double blade system, Non-slip pad

Min: 39.95 Max: 69.95

12 month

Min: 49.95 Max: 399

10 year motor, 12 month

Sleek black design, 1.4 litre automatic cordless kettle, Fast-boil, 2400 watt stainless steel element, Robust onepiece design for added safety, Water gauge with large easy read measurements, Large pour spout for easy filling at the tap,

Min: 29.95 Max: 129

12 month

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Toasters

Toast bread

Blenders

Blend soft/small pieces of food

Stick blenders

Purees and blends soft/small ingredients - handheld

Juicers

Juices whole fruit and vegetable pieces

water temperature for up to 20 minutes, Handle activated lid with one button release for one handed filling, Twin, full length water gauges, Fast boil concealed heating element, Removable mesh filter, Alert at the end of the heating cycle, 360 degree cordless power base, Cord storage 4 Slice electronic toaster, 2400 watts, 5 year element guarantee, Replaceable elements, Specialised crumpet setting, Self-centring, extra wide and deep toasting slots, High-lift lever, Cancel button, Electronic browning control dial, Removable crumb tray, Tidy cord storage 2 litre Duralite™ impact resistant jug utilises an ultradurable BPA free material Stainless steel blades are precision cut for superior hardness and sharpness, Preprogrammed functions and the manual control dial allows for total blending control, 2000 watt motor, Detachable blade system, Processing baton, Cord-wrap, Non-slip feet Powerful 600 watt motor, Unique ice crushing blade system, Variable speed control plus 'Pulse', 1.25L processing bowl with chopping, Stainless steel shaft, Stainless steel whisk attachment, Milk frother attachment, Convenient accessory stand

Die-cast metal and stainless steel juice extractor, Commercial powered 1250 watt DC motor, Extra large feed chute for juicing whole fruit & vegetables, Heavyduty blade and filtering basket - fitted with twin blades &

3-way safety system

2 slice electronic toaster, Electronic browning control dial, High-lift lever, Complete cool touch body, Defrost and Cancel functions, Removable crumb tray, Cord storage

Min: 29.95 Max: 199

5 year, 12 month

650 watts, 1.5L plastic jug with pouring hole and 50ml ingredient cup, 4-way stainless serrated blade system, 2 speeds and pulse, Cord storage, Non slip feet

Min: 59.95 Max: 249

5 year motor, 12 month

Unique blade design with vertical teeth for optimal blending, crushes ice in 10 seconds, High performance 600 watt motor is ideal for tackling the most demanding blending tasks, High and low speed settings, Large 1 litre beaker ideal for measuring ingredients, Attachments are dishwasher-safe for easy cleaning Stainless steel filter, Large and small juicing cones, Antidrip spout, Autoreverse juicing action, Auto start/stop, 40 watts, Cord storage, Storage

Min: 44.95 Max: 149

12 month

Min: 269 Max: 39.95

5 year motor, 12 months

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stainless steel photo-etched mesh for extracting maximum juice yield, Two speed control, 3.0 litre pulp container, Bonus 1 litre jug, Dishwasher safe

cover

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Appendix 2 - TV Commercial Storyboard The ad starts with a flashback of the mother and daughter baking a cake together in the earlier years using a Sunbeam Mix Master classic. (4 seconds)

And then the time shifts to the present where the mother is getting older and the daughter has become a grown up, still baking a cake together using a Sunbeam Mix Master classic. However, this is actually their last time baking a cake together or won’t be able to bake a cake as frequently as they used to, as the daughter is getting married the next day and will move in to a new house with her groom. (4 seconds)

The next day is the daughter’s wedding day. The mother gets emotional seeing her daughter in her wedding dress for the first time. (4 seconds)

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And then the daughter goes down the aisle with her groom to say her vow. (3 seconds)

After the wedding day, the daughter moves in to their new home with her new husband and start filling their new home with

new

furniture

and

household

appliances. But she feels like something is still missing. (4 seconds)

Suddenly, her mother comes to her new house and surprises her with a gift, which is a Sunbeam Mix Master. Her daughter was so happy to receive the gift because Sunbeam Mix Master always brings her the fondest memories of her and her mom. (4 seconds)

After the daughter received the gift, they hug each other while smiling happily. She knew that her mom would love her forever. (4 seconds)

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And then the last scene turns blurry and Sunbeam’s logo and tagline appears. (3 seconds)

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Appendix 3 - Media coverage

Image 9 - Media coverage in Canberra

Image 10 -Media coverage in Adelaide

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Image 11 - Media coverage in Brisbane

Image 12 - Media coverage in Melbourne

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Image 13 - Media coverage in Perth

Image 14 - Media coverage in Sydney

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