Potato Express

Potato Express

making your advertising make money

Objectives/StrategiesObjectives• The purpose of this plan is to prepare for the launch of Potato Express, a direct

response product that allows the consumer to cook a baked potato in a microwave in just a few minutes.

• Direct Response products gain revenue by generating leads, or calls to inquire about and/or purchase the product. Our Media Plan aims to generate the highest amount of leads and calls for the lowest cost per thousand impressions.

Strategies• We will achieve our objectives by creating a media plan that is solely television

based. The strategy involves a balance of reach and frequency, as some stations will have a large audience with a few advertisements and others will have a smaller audience but numerous advertisements.

• We decided on media selections based on numerous reports of the target’s lifestyle trends, and media habits, as well as an analysis of the product’s top 5 competitors.

• Our plans “heavy up” on Cable as it places an emphasis on cable television over Broadcast Television and Syndicated Television, with a stronger focus on Daypart distributions.


Planning Parameters

Media Type National TVFlight Dates Round 1: November 25th – December 22nd

Hiatus: December 23rd – December 29th Round 2: December 30th – January 26th

Hiatus: January 27th – February 2nd Round 3: February 3rd – March 16th

TV Outlets Cable

Creative Rotation 16% :60s84% :30s

Est. Weekly GRPs Cable: Round 1: 8.79

Round 2: 12.51Round 3: 24.12

Budgets ~$50,000-90,000 week/ $1,000,000 Total


Target Market• To create an effective and efficient media plan, we ran

reports on three different database systems to identify and reach the target market– Simmons Oneview– Kantar Media– Nielsen


Syndicated Research Report - Simmons • Simmons OneView is a database

system that is used to examine U.S. adult consumer data on product and brand usage, sending behavior, media habits, and more. It can be used to create customized reports analyzing the psychographics and demographic characteristics of product users and there media habits

• After creating a customizes report, we discovered some interesting facts based on the index numbers in the crosstab. We entered ages and genders that matched out target, along with lifestyle questions. These psychographic questions focused on cooking and culinary interests because our product is used to make food. Our goal was to discover whom in our target is interested in food/cooking products and which television stations had a high index to match these psychographics.

• This report helped us identify our target consumer.


Syndicated Research Report - Simmons

• To the left is a portion of our Simmons Report. As we mentioned in our previous slide, this report helped us define whom, within our target is interested in food/cooking products and which television stations had a high index to match these psychographics.

• The Index is the most important column because it represents either a positive or negative correlation between the row and column crosstab. A 100 is a perfect score, so anything above is positive and anything below is negative. As we can see to the left, the indices begin to increase at the 35+ mark which proves that our main target falls anywhere between the 35+ male & female demographic.


Syndicated Research Report - Simmons

• To the left is a portion of our Simmons Report in reference to the cable stations our target watches the most. As we know, an index above 100 is positive, meaning that those stations that index over 100 are one that we should consider allocating money towards. For example, since the index for the Cooking Channel is at 132 for Females 35-64 and 96 for Males 35-64, we would highly consider running spots on this station in our first or second round of testing for our media plan.


Competitive Report – Kantar/TNS

• When trying to advertise a new products and/or service, understanding the market you are entering and learning what your competitors are doing is necessary to manage your products’ brand and reputation.

• Kantar Media provides strategic expertise in the following categories: competitive intelligence, consumer behavior, audience research, digital insights, social media influence. Kantar is recognized as the world leader in analyzing media as it draws on huge comparative data sources. Associated Products of Kantar Media are shown on the right.

• For the purposes of developing a Media Plan for Potato Express, we used Stradegy in order to see an overview of our competitions’ network mix.


Competitive Report – Kantar/TNS • Using the list of competitor’s for

Potato express that were provided to us, we constructed a Stradegy report for the following competitors:

– EZ Pockets– OrGreenic Kitchenware– Perfect Tortilla Pan– Stone Wave

• After exporting this report to an excel file, we were able to create a Pivot table from the information provided, in order to see the amount of emphasis our competitors’ put on specific Network stations, Cable stations, and Syndication.

• We ran our report across the full length of one broadcast year so that we could also take note on any patterns in spend, if any our competitors are following. In order to narrow down our station choices for our first test we looked for stations in which our competitor allocated bigger portions of their media budget.


Competitive Report – Kantar/TNS • To the right is a screenshot of

Orgreenic Kitchenware’s spending for the first quarter of the broadcast year of 2013.

• Overall, Orgreenic allocated huge media dollars on the following Cable stations:

– A&E

– Animal Planet

– CLOO

– Game Show Network

– H2

– Hallmark

– TWC

• Because of this, we decided to include as many of these stations as possible in or media plan.


Viewership Report - Nielsen • Nielsen ratings allow us to

measure the audience size and composition of television programming in the United States. This gave us the ability to strategically choose the markets we should focus on to advertise our product for the highest number of impressions possible.

• After being told that our target falls anywhere in the 18+ demographic, we were able to build a report that showed us exactly where our target demographic is in terms of the networks and shows they are watching.

• To the right is a screenshot of the report we built using Nielson.


Viewership Report - Nielsen

• To the right a a screenshot of a portion of our

Nielson report. From this report we were able to

see the specific programs that had the highest

number of impressions against our target.

• From this report it is clear that the Broadcast

Networks listed on top have the highest levels of

impressions across all other programming.

However, when calculating the CPM for each

network, we decided not to allocate any money on

these stations due to the high expense.


Agency Threshold – Cable Television

Household Universe (000) Media Cost (CPM)

90,000+ $6

80,000 – 90,000 $5

60,000 – 80,000 $4

Less than 60,000 $3

• The impressions and CPM listed above represent the standard rates of our agency for cable television. We used these parameters to calculate our rates.


Viewership Report - Nielsen • To the right is a screenshot of a

portion of the Nielson report showing network households.

• Each test consisted of 2-3 Large Stations (90 million+ households), 3-5 Medium Stations (80-90 million households), and 3-8 Small Stations (80 million or fewer households).


Media Cost Calculation• In order to calculate our rates for each station, we applied the 30 second CPM structure to network

impressions to determine network rates.

• To obtain 60 second rates, we applied a factor of 2 to the 30 second rate (30 second rate * 2 = 60 second rate).

• To calculate the Media Cost

– Take the station’s total impressions (000) and multiply by the CPM (cost per thousand).

– To find the total media cost for the campaign, take the cost from each station multiplied by the

number of spots for that testing period. Conclude by adding all the station costs for each round

together.

• Example: The Food Network

– 645 (Impressions in millions for a 60 second spot) * $6 (CPM) = $3870

– $3,870 (Food Network cost round 1) * 2 (Number of spots for that media selection round) =

$7,740


GRP Calculation

• To calculate the Gross Ratings Product– Take the station’s total impressions (000) and divide by the total

television universe. Then take that product and multiply by 100.– To find the total GRP for the campaign, take the GRP from each

station and multiply it by how many spots are running on that station

• Example: The Food Network– 322.5 (Impressions in millions) / 115,800 (TV Universe) = 0.28– 0.28 (Food Network GRP) * 3 (Number of spots for that media

selection round) = 0.84

Media Recommendations


Media Selection Rationale - Round 1Cable Network Syndication

The Food Network

Bravo

Hallmark

National Geographic

Game Show Network

H2

Cooking Network

We decided not to use Broadcast Networks due to the high cost per thousand (CPM) for spots on these stations. While broadcast stations have a higher reach, we did not feel that using these stations would be an efficient use of our client’s media dollars. Additionally, because broadcast stations only run direct response ads during certain hours, we have a smaller chance of our spots actually clearing.

We decided not to use Syndicated programs for our media plan because it takes longer to generate calls and leads through such programming, which prevents us from being able to see the initial impact of our campaign on that specific market. Additionally, our competitive research has shown that our clients’ competitors are not spending much of their ad dollars on syndicated programming.


Station Size Station Name # of Spots Media CostLarge Food Network 2 $7,740

Bravo 2 $2,420

Medium Hallmark 8 $16,568

Nat Geo 8 $1,696

Small GSN 15 $10,998

H2 15 $7,613

Cooking 15 $4,084

Media Selections - Round 1

Cable


Media Selection Rationale - Round 1

• Food Network: This network was chosen because the product is used to prepare food. The Food Network has a high index with our target market for lifestyle trends such as “Usually refer to recipes when cooking” or “I like to try new recipes.” The correlation was also particularly high with females in our target. Additionally, our Kantar analysis proved that the competition was selecting this station as well. Since Potato Express is a food-related product we felt that spots on this network should be 60 seconds long instead of 30 seconds long.

• Bravo: We choose Bravo because of the high Simmons index with females in our target for viewership and lifestyle trends.

Large TV Cable Stations



• Hallmark: This station has an incredibly high Simmons index with females and males. We also took note that our competitors allocated a large portion of their media budget to this station.• National Geographic: We choose National Geographic

because it had high viewership in our target audience according to Nielsen reports.

Medium Cable TV Stations



• Game Show Network: Although this station had a low index for our target in terms of lifestyle trends, a majority of our competitors allocated large portions of their media budget to this station.

• H2: We choose H2 because it had high viewership in our target audience according to Nielsen reports, as well as having been used by some of our competitors.

• Cooking Network: Since this network was a cooking network, we felt it would be a smart recommendation for our client since our product was food related. Apart from this we also saw it as an opportunity to increase frequency with our spots since it was a smaller station and therefore had a low CPM. In addition, we felt that spots on this network should be 60 seconds long instead of 30 seconds long.

Small Cable TV Stations


Media Selection Round 2Cable TV Stations

Food NetworkA&EBravoHallmarkSoapnetNational GeographicCookingGame Show NetworkChillerDIYHallmark Movie Channel


Media Selections – Round 2

Cable

Station Size Station Name # of Spots Total Media Cost

Large Food Network 3 $7,740

Bravo 2 $2,420A&E 2 $6,074

Medium Hallmark 10 $20,710Nat Geo 10 $2,120Soapnet 10 $1,960

Small GSN 15 $10,998Cooking 15 $4,084Chiller 15 $1,823DIY 15 $3,363

Hallmark Movie 15 $7,193


Media Selection Rationale – Round 2Large TV Cable Stations

• Food Network: This network worked extremely well for us in our first round so we decided to keep it for our second round of testing.

• A&E: Since our first two larger networks proved to be a success for our first round of testing, we felt that it would be a good idea to test another station that was particularly popular with our target demographic. This network was chosen because it has a high index with our target market for lifestyle trends such as “Usually refer to recipes when cooking” or “I like to try new recipes.” The correlation was also particularly high with females in our target.

• Bravo: This network worked extremely well for us in our first round so we decided to keep it for our second round of testing.



• Hallmark: This network worked extremely well for us in our first round so we decided to keep it for our second round of testing.• National Geographic: This network worked extremely

well for us in our first round so we decided to keep it for our second round of testing.• Soapnet: Since Hallmark worked well in our first round

of testing, we felt that this station would work just as well because of its similar audience. This network was not used by any of our immediate competitors so it could also have the potential to reach an audience that is currently being overlooked.



Media Selection Rationale – Round 2

• Game Show Network: This network worked extremely well for us in our first round so we decided to keep it for our second round of testing.

• Cooking Network: This network worked extremely well for us in our first round so we decided to keep it for our second round of testing.

• Chiller: All but one of our competitors allocated large portions of their media budget to this station.

• DIY: Since our product is a cooking product that allows consumers to cook a baked potato in a microwave, in just a few minutes, we believe it would be extremely popular with consumers that watch this network.

• Hallmark Movie: Since the Hallmark network worked so well for us in our first round of testing, we wanted to see how our product would do on its network partner.



Media Selection Round 3Cable TV Stations

SpikeFood NetworkBravoTV LandBiography ChannelHallmarkSoapnetNational GeographicCloo DIYChillerCooking NetworkHallmark Movie ChannelGame Show NetworkNational Geographic


Media Selections– Round 3

Cable

Station Size Station Name # of Spots Total Media CostLarge Food Network 3 $11,610

Bravo 3 $3,631Spike 2 $3,525TV Land 2 $4,377

Medium Hallmark 8 $16,568Nat Geo 15 $3,182Soapnet 15 $2,240Bio 10 $4,097

Small GSN 20 $14,664Cooking 20 $5,447Chiller 20 $2,442

DIY 20 $4,884Hallmark Movie 20 $9,592Nat Geo Wild 15 $2,070Lifetime Movie 10 $11,425


Media Selection Rationale – Round 3Large TV Cable Stations

• Spike: Apart from this network indexing high among our male target, this proves to be

a smart investment for our client since majority of our competitors are also allocating

large portions of their media budget to this station.

• Food Network: This network worked extremely well for us again in our second round

so we decided to keep it for our last round of testing.

• Bravo: This network worked extremely well for us again in our second round so we

decided to keep it for our last round of testing.

• TV Land: This network was chosen because it has a high index with our target

market for lifestyle trends such as “Usually refer to recipes when cooking” or “I like to

try new recipes.” The correlation was also particularly high with males in our target.

Apart from this, we found that most of our competitors were allocating larger portions

of their media budget to this station.



• Hallmark: This network worked extremely well for us again in our second round so we decided to keep it for our last round of testing.

• National Geographic: This network worked extremely well for us again in our second round so we decided to keep it for our last round of testing.

• Soapnet: This network worked extremely well for us again in our second round so we decided to keep it for our last round of testing.

• BIO: This network was chosen because it has a high index with our target market (both male and female) for lifestyle trends such as “Usually refer to recipes when cooking” or “I like to try new recipes.” In reference to our competitive research, this network also proves popular with our competitors.



Media Selection Rationale – Round 3• Game Show Network: This network worked extremely well for us again in our

second round so we decided to keep it for our last round of testing.• Cooking Network: This network worked extremely well for us again in our second

round so we decided to keep it for our last round of testing.• Chiller: This network worked extremely well for us again in our second round so we

decided to keep it for our last round of testing.• DIY: This network worked extremely well for us again in our second round so we

decided to keep it for our last round of testing.• Hallmark Movie: This network worked extremely well for us again in our second

round so we decided to keep it for our last round of testing.• National Geographic Wild: Since the National Geographic network worked so well

for us in our first and second rounds of testing, we wanted to see how our product would do on its sister network.

• Lifetime Movie: Since the Hallmark network and its sister network (Hallmark Movie) worked so well for us in our first and second rounds of testing, we felt it also had the potential of working for us on a similar network like this one.


Budget Recommendations


Flow Chart: Spending


Flow Chart: GRP


Bracketing• Increased Budget

– If our budget was increased, we would suggest utilizing broadcast and syndication spots. We decided not to use them for this plan due to the high cost of Broadcast Television and the fact that Syndicated Television is difficult to monitor for Direct Response campaigns. The reach on these stations is high, and with a larger budget we could create a plan that balances reach and frequency on each TV outlet (Cable, Broadcast and Syndication).

• Decreased Budget– If our budget was decreased, we would suggest removing spots

on larger cable stations and allocating more money on smaller ones for higher levels of frequency. While these stations generate the most impressions for our campaign, the CPM is rather high.


Future Recommendations• Begin allocating media dollars into Broadcast Networks:

– Although we decided not to use Broadcast Networks for our flight dates in this quarter, broadcast stations have a higher reach. Therefore if our client is willing to extend reach in the next quarter, Broadcast Networks should be considered.

• Expand further in Cable Television:

– We found much success with our cable network selections and believe that our client should continue investing media dollars on similar networks.

• Consider placing longer spots on Cable Networks:

– We decided to focus the majority of our media dollars on 30 second spots in order to maintain a low CPM for each round of testing. For the next quarter however, our client could look into running spots of 60 seconds or higher in order to further educate their target audience on the product being sold.


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Documents

Potato Express