AARP Financial Marketing Plan

06/09/2006Confidential — Do Not Distribute

AARP Financial Marketing PlanAchieving our social and financial mission

DRAFT

06/09/2006 • Confidential — Do Not Distribute 2

Overview

Achieving our social and financial mission 2

The “Do More Than Dream” Tour 4

Why it works 6

Tour communication plan 7

The media mix 20

How much it will cost 30


Achieving our social andfinancial mission

• Helping Americans save more for retirement

• Demonstrating AARP Financial’s new vision for the American investor

• Engaging AARP members and prospective members

• Involving the entire AARP organization

• Building assets in the AARP Funds

• Targeted rollout allows for ramp-up from pilot tonational marketing

Demonstrating our

commitment to helping

members and investors

create a more secure

financial future.


A region-by-region national rollout

• A grassroots approach that brings your messageto the mass market

• Supported by a major internal launch event

• Integration of advertising, public relations, Internet and direct mail delivers synergies and increases effectiveness

• Great opportunity to involve local state offices, volunteers and AARP Outreach Group

• Regional marketing allows for media testing and cost management

• National campaign overlay simultaneously increases awareness among target AARP members

Market-by-market media and

direct response campaigns

tied to local events


The “Do More Than Dream” Tour

• A unique advocacy and educational initiative in key regional markets

• A grassroots approach that brings our message to the mass market

• Creating opportunities to increase response rates to our direct marketing efforts

Dreaming alone can’t get

you to your goals. To build

a secure financial future, you

must do more — especially

when you’re over 50.


Why a tour?

“Recent studies show that passive educational tools that

rely on print media, newsletters and brochures generally

work only modestly well to increase savings, while high-

touch educational efforts, seminars and one-on-one

phone and in-person counseling have been effective.”

ANNAMARIA LUSARDI

Pension Research CouncilThe Wharton School


Why it works

• Reaches out to our audience

• Targets key demographic areas

• Increases potential for free press and strongpublic relations

• Flexible, cost effective, exciting

• Generates excitement and word-of-mouth buzz

The tour creates opportunities

to fulfill our social and

financial mission.


Tour communications plan

• Tour events and seminars in prominent locations (e.g., Home Depot or mall parking lots)

• One-month local media saturation (TV, radio, newspaper, billboards)

• Regional direct mail and email campaigns timed totour events

• Public relations initiatives to generate local press coverage

• “Do More Than Dream” microsite featuring tour blog

• Multiple opportunities to invest (on-site, direct mail, direct-response print/TV/radio, online, call center)

• Tour kickoff event in DC for national press coverage

• Tailor events to local audiences

The tour is scheduled to

run from September

to mid November 2006.


Tour route selection criteria

Rollout markets were selected on the following criteria:

• A minimum of 0.5% of U.S. households (551,000 per market)

– This allows for a big enough sample base for meaningful measurement projections

• Adults 50–64 make up a minimum of 20.7% of the market’s population*

– This equates to a 93 index versus the average U.S. market (22.4% of the U.S. adult 18+ populationis aged 50–64)

• Adults 50+ make up a minimum of 39.4% of the market’s population**

– This equates to a 101 index versus the average U.S. market (39.% of the U.S. adult 18+ populationis aged 50+)

• Active AARP members by selected states make up a minimum of 0.67% of the entire 22 million AARP households

For the purposes of this document we have provided prototype media plan costs for two sizes of markets

• Large markets (1.4% of U.S. households or more)

• Midsize markets (0.7–1.3% of U.S. households)

* Demographic definitions as per AC Nielsen. Does not include St. Louis, MO.**Does not include Anaheim, CA


Top marketsAdults 50–64

In selecting large and midsize markets, the tour routes focus on strong concentrations of both age segments, adults 50–64 and 50+.

Composition Composition Index

DMA Name Total HH % of US Adults 18+ Adults 50-64 Adults 50-64 (vs. Avg. US)

Knoxville 507,300 0.5% 928,507 226,306 24.4% 109

Albany-Schenectady-Troy 550,400 0.5% 998,648 242,230 24.3% 109

Richmond-Petersburg 519,000 0.5% 961,346 231,594 24.1% 108

Greenvll-Spart-Ashevll-And 820,600 0.7% 1,503,032 360,702 24.0% 108

Charleston-Huntington 503,900 0.5% 926,768 222,395 24.0% 108

Albuquerque-Santa Fe 662,100 0.6% 1,214,824 288,714 23.8% 106

Portland, OR 1,111,500 1.0% 2,075,610 493,260 23.8% 106

Hartford & New Haven 1,014,900 0.9% 1,892,018 448,165 23.7% 106

Dayton 517,100 0.5% 944,223 223,480 23.7% 106

Baltimore 1,095,800 1.0% 2,067,591 489,097 23.7% 106

Harrisburg-Lncstr-Leb-York 654,100 0.6% 1,226,863 289,652 23.6% 106

Seattle-Tacoma 1,746,900 1.6% 3,216,739 758,284 23.6% 106

Washington, DC (Hagrstwn) 2,260,300 2.0% 4,352,760 1,025,923 23.6% 106

Wilkes Barre-Scranton 599,300 0.5% 1,120,003 263,095 23.5% 105

Tulsa 513,400 0.5% 941,815 220,788 23.4% 105

Cleveland 1,563,300 1.4% 2,881,997 673,025 23.4% 105

Pittsburgh 1,189,000 1.1% 2,187,600 510,481 23.3% 105

Greensboro-H.Point-W.Salem 653,500 0.6% 1,205,558 280,785 23.3% 104

Louisville 632,600 0.6% 1,160,731 269,125 23.2% 104

Little Rock-Pine Bluff 533,400 0.5% 970,769 224,462 23.1% 104

Mobile-Pensacola (Ft Walt) 505,200 0.5% 938,202 216,063 23.0% 103

Jacksonville, Brunswick 608,100 0.6% 1,136,995 261,643 23.0% 103

Buffalo 655,500 0.6% 1,205,133 277,191 23.0% 103

Birmingham (Ann,Tusc) 707,000 0.6% 1,301,180 299,184 23.0% 103

San Francisco-Oak-San Jose 2,533,800 2.3% 5,140,001 1,175,973 22.9% 103

Las Vegas 611,400 0.6% 1,205,467 274,982 22.8% 102

Denver 1,437,000 1.3% 2,683,440 610,325 22.7% 102

New Orleans 674,500 0.6% 1,282,928 291,150 22.7% 102

Boston (Manchester) 2,424,800 2.2% 4,615,898 1,047,445 22.7% 102

Detroit 1,942,400 1.8% 3,676,507 833,603 22.7% 102

Philadelphia 2,908,000 2.6% 5,590,044 1,267,076 22.7% 102

Charlotte 1,000,500 0.9% 1,881,140 425,334 22.6% 101


Top marketsAdults 50+

In selecting large and midsize markets, the tour routes focus on strong concentrations of both age segments, adults 50–64 and 50+.

Composition Composition Index

DMA Name Total HH % of US Adults 18+ Adults 50+ Adults 50+ (vs. Avg. US)

West Palm Beach-Ft. Pierce 721,600 0.7% 1,332,192 692,705 52.0% 133

Tampa-St. Pete (Sarasota) 1,667,100 1.5% 3,037,343 1,502,898 49.5% 127

Wilkes Barre-Scranton 599,300 0.5% 1,120,003 511,339 45.7% 117

Pittsburgh 1,189,000 1.1% 2,187,600 985,578 45.1% 115

Orlando-Daytona Bch-Melbrn 1,281,000 1.2% 2,434,578 1,073,632 44.1% 113

Albany-Schenectady-Troy 550,400 0.5% 998,648 433,826 43.4% 111

Buffalo 655,500 0.6% 1,205,133 518,638 43.0% 110

Charleston-Huntington 503,900 0.5% 926,768 398,770 43.0% 110

Greenvll-Spart-Ashevll-And 820,600 0.7% 1,503,032 646,469 43.0% 110

Knoxville 507,300 0.5% 928,507 396,704 42.7% 109

Cleveland 1,563,300 1.4% 2,881,997 1,211,295 42.0% 108

Harrisburg-Lncstr-Leb-York 654,100 0.6% 1,226,863 515,345 42.0% 107

Dayton 517,100 0.5% 944,223 395,800 41.9% 107

Little Rock-Pine Bluff 533,400 0.5% 970,769 404,857 41.7% 107

Hartford & New Haven 1,014,900 0.9% 1,892,018 788,476 41.7% 107

Tulsa 513,400 0.5% 941,815 390,966 41.5% 106

Mobile-Pensacola (Ft Walt) 505,200 0.5% 938,202 381,836 40.7% 104

Miami-Ft. Lauderdale 1,536,900 1.4% 3,132,891 1,273,239 40.6% 104

Providence-New Bedford 641,700 0.6% 1,206,796 489,326 40.5% 104

Richmond-Petersburg 519,000 0.5% 961,346 389,614 40.5% 104

Birmingham (Ann,Tusc) 707,000 0.6% 1,301,180 527,146 40.5% 104

Philadelphia 2,908,000 2.6% 5,590,044 2,261,653 40.5% 104

Greensboro-H.Point-W.Salem 653,500 0.6% 1,205,558 486,623 40.4% 103

Albuquerque-Santa Fe 662,100 0.6% 1,214,824 489,361 40.3% 103

St. Louis 1,217,300 1.1% 2,259,368 901,750 39.9% 102

Baltimore 1,095,800 1.0% 2,067,591 824,092 39.9% 102

Louisville 632,600 0.6% 1,160,731 460,652 39.7% 102

Phoenix 1,599,500 1.4% 3,097,357 1,220,066 39.4% 101

Boston (Manchester) 2,424,800 2.2% 4,615,898 1,817,078 39.4% 101

Oklahoma City 656,400 0.6% 1,199,018 470,888 39.3% 100

Portland, OR 1,111,500 1.0% 2,075,610 810,994 39.1% 100

New York 7,542,800 6.8% 15,223,585 5,931,008 39.0% 100


National multicity tour routeTour A

Washington, DC

Las Vegas, NV

Anaheim, CA

Phoenix, AZ

Tulsa, OK

Louisville, KY

Philadelphia, PA

St. Louis, MO

Cleveland, OH

Pittsburgh, PA

Albuquerque, NM

Coordinated with Life at 50 event (Oct 26–28)


National multicity tour calendarTour A – September through mid November 2006

National magazines

Online

1-day kickoff event (Washington, DC)

Philadelphia, PA (9/7–9/10)

Pittsburgh, PA (9/14–9/17)

Cleveland, OH (9/21–9/24)

Louisville, KY (9/28–10/1)

St. Louis, MO (10/5–10/8)

Tulsa, OK (10/12–10/15)

Albuquerque, NM (10/19–10/22)

Anaheim, CA (10/26–10/29)

Las Vegas, NV (11/2–11/5)

Phoenix, AZ (11/9–11/12)

12November

1 8 15 22 29 5Sept October

3 10 17 24


Concentrated market tour routeTour B

Cleveland, OH

Pittsburgh, PA

Louisville, KY

Knoxville, TN

Richmond, VAWashington, DC


Concentrated market tour calendarTour B – September through mid November 2006

Pittsburgh, PA9/7–9/109/13–9/159/16–9/18

Cleveland, OH9/21–9/249/27–9/299/30–10/2

Louisville, KY10/5–10/810/11–10/1310/14–10/16

Knoxville, TN10/19–10/2210/25–10/2710/28–10/30

Richmond, VA11/2–11/511/8–11/1011/11–11/13

12November

1 8 15 22 29 5Sept October

3 10 17 24

1st locationMedia kickoff:Thurs–Sun

2nd locationSmall businesstraffic:Wed–Fri

3rd locationPedestrian traffic:Sat–Mon


Event agenda

Thursday, September 15 Friday, September 16

Morning: Truck arrival,site setup

Afternoon: Do More Than Dream Tour kickoff speech from senior AARP representative

Media event/interviews

Entertainment – live music/BBQ

Evening: Seminar: How to retireon your terms

Seminar: Retirementplans for small business owners

10:00 – 12:00 Site setup

12:00 – 12:30 Seminar: How to create enough retirement income to live on

12:30 – 1:00 Registration, site tours, retirement planning workshops, information distribution

1:00 – 2:00 Break/refreshments

2:00 – 2:30 Seminar: Retirement plans for small business owners

2:30 – 4:00 Ongoing registration, site tours, information distribution


4:30 – 5:00 Break/ongoing seminar registration, site tours, information distribution


5:30 – 6:00 Workshop: Retirement distribution basics



7:00 – 7:30 Seminar: How to retire on your terms

7:30 – 8:30 Registration for next days events


Event agenda (continued)

Saturday, September 16 Sunday, September 17

10:00 – 12:00 Site setup


12:30 – 1:00 Registration, site tours, retirement planning workshops, information distribution



2:30 – 4:00 Ongoing registration, site tours, information distribution


4:30 – 5:00 Break/ongoing seminar registration, site tours, information distribution


5:30 – 6:00 Workshop: Job transition basics




7:30 – 8:30 Registration for next days events

Repeat Saturday agenda


Tour route recommendation

Tour A (our recommendation)

• Utilizes more of 2006 marketing budget

• Hits more markets

• Consistent with national market-by-market approach

Tour B

• Test approach

• Allows for local market saturation, but lessnational exposure

• Easier to manage logistically


Hello, Pittsburgh!Hello, Cleveland!

• Direct mail and email to members and non-members announcing dates and locations

• Out-of-home advertising in strategic areas such as commuter routes

• Newspaper (traditional and online) and radio advertising in regional media

• Initial national launch announcing tour kickoff

• Public relations support to generate media and consumer interest

• Advocacy and educational approach supportcore mission

• Geographic-based paid search advertising

• Conduct field survey of local retirement readiness

Full-scale media blitz before

the tour hits a region


Pre-Event Event Post Event

Timing Pre Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Post

AARP national media Run throughout

Website/Blog Run throughout

Research Conduct field researchsurvey in July

Direct mail Send invitations one monthprior to tour arrival

Newspaper* Place advertorial two weeksbefore event

Outdoor Start two weeks prior to eventContinue for one week after

DRTV Start one week prior to eventContinue for two weeks after

Radio* Start one week prior to eventContinue for two weeks after

Newspaper* FSIs (free-standing inserts)

Newspaper (print and online)

ROP – 1/2 Page B/W; banner ads

Event (Option A) Thursday/Sunday

Event (Option B) Thurs–Sun; Wed–Fri;Sat–Sun

Communications plan timeline (per market)

* Option B: May increase media spend per market, due to extended stay per market

Sunday

Friday Wed, Fri Wednesday

Thurs–Sun;Wed–Fri;Sat–Sun

Thu–Sun

Sunday

100 GRP/wk.

100 GRP/wk.

#25 Showing (25% of target sees each month)


Print and outdoor advertising

• Generate local and national interest in the tour

• Drive lead generation

• Reinforce brand positioning and messages

• Strategic publication selection process based on:

– Audience demographics

– Editorial relevance

– Target audience delivery efficiencies

Advertising in AARP

publications, regional

newspapers, such as the

Pittsburgh Post Gazette

and financial publications

emphasizes the educational

nature and advocacy-based

focus of the tour.


Public relations

• Press releases to various national and regional media outlets

• Conduct investor polls focused on regional retirement preparedness

• Investor poll results released prior to road shows

• Local angle generates additional media andinvestor interest

The road show allows

AARP to capitalize on the

power of the free press.


Marketing collateral

• Develop retirement checklist, annual financial checkup

• Retirement calculator

• Create investor information and education series

• Produce life-event guides

• Create educational seminars

Seminar topics could include:

• How to create retirement income to live on

• How to retire on your terms

• Retirement plans for small business owners

Complement core

marketing materials with

event support.


TV and radio

• Interviews with senior AARP executives

• Local radio spots

• Direct Response Television (DRTV)

– Infomercials (product and educational approach)

Local and national

media plans are designed

to increase tour

attendance and sales

of AARP Funds.


Direct mail approach

• Maximize learning through testing

• Use a scientific approach

• Deliver constant flow of leads

• Focus on inquirers

• Drive to all channels

Ongoing campaigns are

focused on creating brand

and product awareness,

generating interest in events

and increasing sales through

educational, multi-channel

follow-up.


Direct mail campaigns

• Invitations with tour dates, locations andseminar topics

• Continue to develop AARP Funds’ benefits messages

• Promote advocacy and our new vision for theAmerican investor

Free guides could include:

• Finding the money: 10 easy ways to save more

• AARP Financial’s five principles of sound investing

Direct mail provides an

effective way to drive

consumers to events or to

respond to specific offers.


Internet advertising

• Banner ads on AARP.org and select national sites generate interest in tour

• Banner ads on local newspaper sites and emails to local AARP members and targeted non-members generate interest in local event and seminars

• Paid search ads (i.e., Google AdWords) targeted to regions, prior to events, lead to tour site

• Tour site provides consistent destination as call to action for all media

• Product-based banner ads lead to specialized campaign pages to generate leads and direct sales

Promotes national mutual

funds rollout and overall

brand awareness


Internet communications plan

• Do More Than Dream Tour site includes:

– Information about the tour

– Online quiz/retirement calculator

– Blog about tour with videos

• Customized local pages provide survey results andpre-registration for seminars

• Collect information in return for alert when Flash-based seminar and/or podcast of seminar is available

• Links to AARPfunds.com for more education

• Generates interest in tour, leads and direct sales

• Leverage AARP.org

Leveraging the power of one

of America’s most important

Internet communities


Internal communications

• Increase involvement with state offices andAARP volunteers

• Increase membership drive potential

• Create excitement and participation across the entire AARP organization

Build partnerships to reach

members, to drive traffic to

multiple channels and to

provide valuable products

and services.


Support at the national level

In addition to the targeted local marketing efforts, we recommend:

• Ongoing national direct mail campaigns

• National Internet advertising

• National advertising with AARP communication channels


How much it will costSeptember through mid November 2006 (based on $10 million budget)

Event planning$895,000

Creative andproduction$900,000

Local media$5,008,218

Remainingbudget$1,385,317

Creative andproduction$900,000

Remainingbudget$4,269,811

Event planning$965,000

Local media$2,053,724

TOUR A TOUR B

Nationalmedia$1,811,465

Nationalmedia$1,811,465

Note: Postage, publicity, survey, entertainment, catering and AARP staff costs are not included


National Media

Print AdvertisingAARP Magazine, 50–59 edition; 2 Page 4C ads w/ BRC $797,760AARP Bulletin, 50–59 edition; 2 Page 4C ads $834,000Provider Pack $65,000Wall Street Journal, Washington, DC edition — Page B/W $14,705

Internet advertising (AARP.org)Fixed position on the Money & Work section of the site (3 mos) $25,000Run of site (ROS), 500,000 impressions (viewers) (6 mos) $75,000

Total National Media $1,811,465

Local Media

Large Market – e.g., Cleveland4 weeks of DRTV @ 100 GRP per week $144,8002 FSIs – Cleveland Plains Dealer (Sunday) $63,3364 1/2 Page B/W ads - Cleveland Plains Dealer (week day) $114,1562 1/4 page B/W Advertorials $28,0004 weeks of Radio @ 100 GRP per week $92,4601 month Outdoor (#25 Showing) $101,000Fixed position on financial section of newspaper website, per mo. $7,000

Total Large Market $550,752

Midsize market – e.g., Pittsburgh 4 weeks of DRTV @ 100 GRP per week $128,0002 FSIs – Pittsburgh Post Gazette (Sunday) $42,2034 1/2 Page B/W ads - Pittsburgh Post Gazette (week day) $68,0402 1/4 page B/W Advertorials $17,0004 weeks of Radio @ 100 GRP per week $57,5001 month Outdoor (#25 Showing) $58,000Fixed position on financial section of newspaper website, per mo. $5,000

Total Midsize Market $375,743

Total Local Media– Tour A (5 Large, 6 Midsize) $5,008,218Total Local Media– Tour B (1 Large, 4 Midsize) $2,053,724

Total media – Tour A $6,819,683Total media – Tour B $3,865,189

Media plan budgetSeptember through mid November 2006


Creative and production budgetSeptember through mid November 2006

Advertising: $400,000 • Print advertising: FSI (revised per market),

one national ad, one local ad (revised per market),one WSJ kickoff ad

• Broadcast advertising: radio (revised per market), DRTV• Out-of-home advertising: one billboard per market • Online advertising: one national ad, one local ad

(revised per market)

Printed literature $200,000 (creative only) • Do More Than Dream Kits: prospectus

(printing only, not included in budget), Do More Than Dream overview, worksheet

• Seminars (3 topics)• Direct mail/Provider pack buckslips

Website $200,000• Website (including pre-registration as email,

blogging/forum component)• Online quiz/retirement calculator with customized output• Podcast• Flash-based seminar• Banner ads• HTML email• Campaign pages for product-based ads

Event support $100,000 (creative only)• Truck interior/exterior signage • Age-based hand-outs • Premiums

Total (Tour A or B) $900,000



Event budgetSeptember through mid November 2006

Truck rental for 3 months (Tour A or B) $575,000(includes 2 drivers and one tour manager)

Truck ground staff of 3 Tour A $45,000Tour B $90,000

Truck location rental (depending on location type and duration of stay)

Tour A $55,000–$275,000Tour B $60,000–$300,000

Total Tour A $675,000–$895,000Tour B $725,000–$965,000


Documents

AARP Financial Marketing Plan