July 9, 2014

COMPETITIVE, TARGET ANALYSIS & MEDIA LANDSCAPES

Be Brave Be Inventive Defy Expectations

WHERE WE ARE IN THE PLANNING PROCESS

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Kick off Meeting Brand ImmersionStrategic

Development

Tech Infrastructure Development

Develop Tactical Media PlansImplementation

Measure, Analyze, and

Optimize

PART ONE: COMPETITIVE

What is competitive?

Why is it important?

Tools and Process

Example

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WHAT IS COMPETITIVE?

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FROM A BRAND PERSPECTIVE

A COMPETITIVE ANALYSIS IS AN HONEST ASSESSMENT OF WHERE WE STAND IN THE MARKETPLACE

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WHY IS IT IMPORTANT?

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PURPOSE

BRANDS DO NOT OPERATE IN A VACUUM. A STRONG COMPETITIVE ANALYSIS PROVIDES KNOWLEDGE FOR PLANNING AND HELPS US

(AND OUR CLIENTS) MAKE BETTER DECISIONS.

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PURPOSE

BECAUSE WE CAN’T ALWAYS BE THE BIGGEST...BUT WE CAN BE THE SMARTEST.

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KNOWING THE COMPETITION CAN HELP BRANDS...

IDENTIFY THEIR NICHE

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ANTICIPATE THE MARKETPLACE

STAY INNOVATIVE

OUR ROLE AT TMK

OUR CLIENTS KNOW THEIR COMPETITORS. IT IS OUR JOB TO KNOW THE MEDIA MARKETPLACE.

- WHAT IS OUR COMPETITION DOING?

- WHAT DOES IT SAY ABOUT THEIR STRATEGY, TARGET AND APPROACH TO

MEDIA?

- HOW DOES IT COMPARE TO WHAT WE ARE DOING?

- HOW CAN IT BETTER INFORM WHAT WE DO IN THE FUTURE?

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TOOLS AND PROCESS

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NAVIGATING THE LANDSCAPE

THE MEDIA LANDSCAPE IS GROWING MORE COMPLEX BY THE DAY, SO WE NEED TO LOOK TO MULTIPLE SOURCES TO TRULY GET AN IDEA OF WHAT OUR COMPETITORS ARE DOING

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TOOLS AND PROCESS

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STEP ONE: PREP WORK

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FINALIZE COMPETITIVE SET• Enlist the client and make sure you are on the same page before pulling any data. • Identify core vs secondary competitors vs aspirational brands

DETERMINE TIMING• Figure out how many years of data you need to view to identify trends• Calendar year vs recent data?• Is everything available in Kantar?

OUTLINE THE KIND OF DATA THAT WOULD BE USEFUL TO THE CLIENT• Level of Detail (basic spend data vs media properties)• Social Media• Search

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STEP TWO: PULL THE RAW DATA AND MAKE SURE IT IS RIGHT

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START WITH KANTAR AND PULL ADDITIONAL DATA AS NECESSARY

DO THE NUMBERS LOOK RIGHT?• Your own brand is a good starting point. • Don’t underestimate the power of common sense.• If you submitted numbers in the past, do they match what was pulled this time?• Troubleshoot if the data looks wrong. Are all the brands included?

PROVIDE THE PROPER CONTEXT• % change YOY• SO$ and SOV• Determine any areas where data may be less accurate.

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STEP THREE: BUILD THE CHARTS

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PRESENT THE DATA IN AN EASY TO FOLLOW WAY. OFTEN TIMES SIMPLE IS BEST. • Think about how you would explain the chart to the client.

LOOKING GOOD IS HALF THE BATTLE• Pretty charts get client oohs and aahs. • Illustrate the data in a way that your client can grasp even without explanation.• Is everything properly labeled and sourced?• Are the chart components big enough that they are easily identified?

CONSISTENCY IS BEST• Show data in similar charts for each brand or category• If share of media is a pie chart in one part of the deck, keep it consistent throughout.• Source, source, and source some more.

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STEP FOUR: ANALYZE THE DATA

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MINING FOR INSIGHTS IS THE MOST IMPORTANT PART OF THE ANALYSIS. • Clients can read the numbers themselves. They rely on us to extract meaning and insights from

the data. • If your left with questions about a brand’s activity, chances are your client will be too. Do a little

more digging.

START BROAD AND WORK YOUR WAY INTO MORE DETAILS• Category insights, trends and broad comparisons are a good way to start.• Individual detail by brand can come later.• Be sure to include a clear summary of insights at the end of the deck.

ALWAYS TIE THE DATA BACK TO WHAT WOULD BE MOST USEFUL TO THE CLIENTS (AND TO YOU IN PLANNING)• Constantly ask yourself what the data means and what kind of implications it could have for

media decisions• Make sure the client understands how category trends affect what they are doing. Often times

clients use this information as a tool for internal support.

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STEP FIVE: FILL IN THE BLANKS

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THE TOOLS DON’T ALWAYS CAPTURE EVERYTHING • Kantar has limitations, especially in tracking heavy digital spend, events, content creation and

bigger partnerships.• If the numbers really seem off, call in reinforcements• Try to identify gaps in the data and do additional research

GOING THE EXTRA MILE• Do an audit of owned and social media assets (website, FB/Twitter/Instagram/YT/Pinterest)• Check the trades. Have your competitors done anything interesting lately that was picked up in

the press?• Keep your eyes open, especially on media where you know the category frequents.• Rely on the sales community. Many have a strong grasp on what other brands in your category

are doing.

EXAMPLE

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COMPETITIVE LANDSCAPE REVIEW

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*Per Client Direction

Plus Size Specific General Aspirational

CONSIDERATION SET*

^

^J Crew only looked at directionally ; not included in category spend analysis

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CONSTRAINTS TO CONSIDER

Plus size specific product spending is not reported for general brands. Spend reflects all women’s specific and general spending for ASOS, H&M, Eileen Fisher, Nordstrom's, Macy’s, Kohl’s, Talbots, Chico’s, Forever21, and Old Navy

Digital spending tends to be under represented - numbers should be taken directionally

Social & mobile specific spending is not recorded in Kantar and therefore not reflected

Desk Research & Industry News

QUALITATIVE RESEARCH QUANTITATIVE RESEARCH

METHODOLOGY

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• Lane Bryant falls in the middle of the category at $8.3M in spend, on par with non plus size specific brands such as Ann Taylor at $10.8M and Eileen Fisher at $6.9M

• As a group, the 17 brands spent $392M in 2013

• The competitive spending landscape is dominated by Old Navy at $165M last year, making up 42% of category spend

$165,906(

$73,650(

$42,440(

$29,208($23,204(

$17,036($13,837(

$10,871( $8,308( $6,960($3,649( $2,277( $1,069( $1,069( $637( $292( $92( $47(

$0.00(

$20,000.00(

$40,000.00(

$60,000.00(

$80,000.00(

$100,000.00(

$120,000.00(

$140,000.00(

$160,000.00(

$180,000.00(

Old(Navy(

Macys(

Kohls(

H&M((

Nordstrom(

White(House(Black(M

arket(

Chicos(

Ann(Taylor(

Lane(Bryant((

Eileen(Fisher(

Forever(21(

Asos.com((

Catherine's(

Talbots(Store(

Avenue(

Eloquii((

Torrid((

Gwynnie(Bee((

Dollars'(0

00)'

Plus Size BrandsGeneral Brands

FY 2013 TOTAL SPEND BY BRAND

Source: Kantar

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•While nearly 50% of category spend falls into TV, 75% of this is driven by Old Navy

•TV spend ranged from $139M for the highest spender (Old Navy) to $8-$9M for brands likes White House Black Market & Chico’s

• Plus size specific brands showed no reported spend in TV

• 96% of spending fell into Display, Search, or Magazine

PLUS SIZE SPECIFIC VS GENERAL BRANDS: MEDIA MIX

48%

4% 1% 6%

19%

18%

4%

Int Display

Int Search

Magazines

Newspapers

OutdoorRadio

TV

Media Mix - Category Overall Media Mix - Plus Size Brands Only

76%

11%

10%1%

2%

Magazines

Outdoor2%

Radio1%

Int Display

Int Search

Source: Kantar

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• The 17 brands demonstrated similar trends across the board

• Major spend spikes happen in March, September, and December, corresponding with Spring and Fall line launches, and Holiday pushes

CATEGORY SEASONALITY

$70,000

$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

$0

Jan. Feb. Mar. Apr. May Jun. Ju l . Aug. Sep. Oct. Nov. Dec.

Spr ing Fashion

Fal l Fashion

Holiday

Category Spend - Seasonality

Source: Kantar

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Limited plus size focusFor non plus size specific brands, promoting the plus size category offerings does not seem to be a focus in messaging/advertising.

For plus size specific brands, spend is significantly lower than general brands.

CATEGORY TRENDS

TV for the big spendersWhile TV spend appears to make up a large bulk of the category spend, it doesn’t reflect the entire group- with primarily only the largest spenders investing in TV.

Of the brands with less TV spend, we see an effort to align TV with other media and platforms, to engage users beyond the :30s spot

White House Black Market #wearwhatworks hashtag promoted on TV spots

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Shift to programmatic buyingWhile digital spend is a smaller slice of the pie for many of the larger fashion brands, programmatic approaches are a common theme suggesting that display campaigns are a lower funnel tactic used to complement offline and social efforts

Print in the forefront Despite the decreasing amount of time that consumers are spending with print, brands continue to prioritize print in their media mix

CATEGORY TRENDS

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CATEGORY TREND: SOCIAL PLATFORMS ENGAGE

Brands are engaging their users to sell a lifestyle rather than product as hero, utilizing social media for everything from branding to driving response. Programs run the gamut from blown out content creation platforms, to photo submission contests, to simply keeping a finger on the pulse of fashion trends through reblogs from other influencers.

Asos Curve #Makemeacurvemodel: UK Model search on Instagram, 7,900 submissions

Ann Taylor, “Smartest Thing She Ever Said”: Tumblr blog curated by artists & story editors; 25M impressions and almost 200K blog mentions

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Mobile experiences are not just for the younger demo. Many brands are expanding their mobile efforts beyond SMS to include beacon technology, integrated apps, user generated content, etc throughout the media plan.

CATEGORY TRENDS: UNIVERSAL MOBILE

Chico’s Mobile Programs using to beacon technology for

personalized messages and engaging and personalized

“Customer Closet” app

Interactive digital signage also being introduced into retail stores, like Chico’s

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CATEGORY TRENDS: PROMOTIONAL

Brands also feature promos, giveaways, discounts, or coupons to entice users to engage with the brand and take action both online and in store. Some brands are getting creative with how they deliver the promotions, using digital technology or blogger influence to reach their consumer.

Eloquii Blogger Promotions: Promotional offers via Fashion bloggers

Avenue SMS Program: Weekly promotional messages,30% MOM growth in membership

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CATEGORY TRENDS: SHOPPABLE CONTENT

Social content is no longer just for engagement; brands are using their social platforms to also push products via shoppable content. Video content, streamable fashion runway shows, and shoppable Pinterest boards are just some of the ways brands are letting their owned media work for them.

Target has been experimenting with shoppable video

series

J. Crew launched a shoppable Pinterest board

Burberry Spring shoppable runway show streamed live on Facebook

Kate Spade Saturday e-shoppable store window

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TitleInsertion Date:FP4C Cost:Circulation:

MARKETPLACE LANDSCAPE SUMMARY

• Category spend is dominated by larger, more general retail stores. General brands don’t show specific messaging for Plus Size offerings and plus size specific brands show limited spend

• Only the top 6 spending brands are investing in TV, focusing on a mix of network and cable. The lowest TV spend of the competitive set is larger than Lane Bryant’s reported media spend in 2013

• Lane Bryant has the opportunity to be a leader in the Plus Size Market, but will need to choose media where we can make an impact in order to compete against the general women’s brands

• Consider more targeted methods of TV buying (e.g. programmatic) that allow for a more focused and efficient TV presence, in order to break through the marketplace clutter

• Magazines are still a category favorite, especially when looking at Plus Size specific brands- representing a large bulk of category spend

• Lane Bryant has the opportunity to breakthrough by focusing on more efficient media where our target is spending the most time

OBSERVATION IMPLICATION FOR LANE BRYANT

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TitleInsertion Date:FP4C Cost:Circulation:

• Despite the proportionately low digital spend for the category, owned and earned digital media programs are prevalent among the competitive set and appear to be the driving force for how brands are engaging with their consumers

MARKETPLACE LANDSCAPE SUMMARY

• Paid, owned and earned media must work cohesively to engage the Lane Bryant consumer and stand out from other women’s retailers. For the launch of Be Phenomenal, all media should work together to earn additional engagement

• The category is not prioritizing digital- online spend only makes up 4% of total category spend

• Lane Bryant can own the digital space and be a category leader in a space that’s less cluttered than other mediums

OBSERVATION IMPLICATION FOR LANE BRYANT

• Brands are using mobile as a stand alone tactic, but programs vary- ranging from traditional SMS programs to technologically advanced use of beacons for 1-to-1 messaging

• Include mobile strategies as another consumer touchpoint for 360 engagement in the Spring

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Total Spend: $4.0M Top Spending Category: Magazines - $2.3MPeak Months: Feb-Apr, Aug-Oct# of Stores: 333

Key Takeaways:• In 2013 J.Crew spent most of their budget in print with titles such as Vogue, InStyle, Martha Stewart Weddings, and New York Times, hinting at a

targeting strategy focused on sophisticated mid to upper class women with a focus on wedding planning. • In 2014 J.Crew is starting to shift their budgets to rely more heavily on digital and social spending, due to the insight that consumers who are engaged

with the brand socially tend to spend twice as much. • J.Crew has a robust social strategy and utilizes various platforms to feature background stories about the collection, interviews with fashion influencers,

event promotions, and product promotions.

J. CREW FY 2013 SPEND

Source: Kantar

1%22%

57%

7%

13% Search

Outdoor

NewspapersInt Display

Magazines

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Having found that their socially engaged customers spend 2x all others, as of 2014 J. Crew shifted to a heavy digital focus and utilizes eCommerce throughout social.

Pinterest CatalogsJ. Crew pins their entire catalogs onto Pinterest, linking directly to their product pages and inviting their Pinterest followers to call or email to have a personal stylist help them with their looks.

#JCrewStyleThe #JCrewOnFilm series posted on Youtube and their website strikes a balance between interesting content and product, which all linked out to the J. Crew product pages.

DiscoveredThe Discovered” page on jcrew.com is a curated collection of items inspired from pieces around the world. The page includes a summary of each item’s story with links to purchase directly.

J. CREW - SHOPPABLE CONTENT

TARGETING & MEDIA LANDSCAPES

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PART TWO: TARGETING AND MEDIA LANDSCAPES

What is a target?

Process

Building and Discovering through Research

Defining the Landscape

Example

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WHAT IS A TARGET?

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WHAT DOES IT MEAN FOR MARKETERS?

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The specific group of individuals to whom the advertising message is directed

women

women18-34

current customer lookalikes

new, younger, hipper, more

fashion-forward

women18-34

who love dogs and have low credit

scores

dog lovers

people who need an internet provider

STEPS TO UNDERSTANDING THE TARGET

Gather available information from all

relevant parties

Outline key prospects based on brand research and

identified brand attributes

Create a target using psychographic statements & behaviors using qualitative

and quantitative tools

Deep dive into target datapoints to understand target and determine key media touchpoints from output data

Refine and Test

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START WITH THE CLIENT BRIEF

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And ask lots of provocative questions during an immersion meeting...

Do you know who is buying your product?

Does it align with your idea of who should be buying your product?

Is their untapped potential within you current audience? Have we captured all low hanging fruit?

Are there other characteristics of your customers that present opportunities to expand the targeting pool?

Does the brand/product appeal to any groups that aren’t currently aware?

Do heavy users look different than light ones? Are some segments more important than others (to brand image? to revenue potential?)

Are we missing opportunity because are target definition is too narrow?

Qualitative Data:

Focus GroupsTrend ResearchEthnographies

Competitive Analysis

Quantitative Data:

Syndicated dataClient Based Data

Site AnalyticsTesting

Audience Insights Pixel??!

NEXT BUILD YOUR TARGET...

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When building your target, you should keep in mind a few factors:

• Segmentation: Are there varying segments of consumers who could serve as a potential target? Do current customers look different than prospective?

• Influencers: Who are the “alpha consumers” who will help spread the word or be most easily influenced by the advertising

• Target Population: Is the population size of the target realistic given factors such as current sales and budget?

• Demographic Qualifiers: Is it important to include an age, gender, or geographic qualifier?

DEFINING A TARGET AUDIENCE

Syndicated Studies (Quantitative)

• Simmons• MRI•Monroe Mendelsohn (MMR)• Erdos & Morgan• ComScore/Fusion• Big Data

UNDERSTANDING THE DATA

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1. Sample population size2. Projected population size3. Coverage (% reach of target audience)4. Composition (how much of this audience is made up of our target)5. Index (based off composition, comparison to general population)

Regardless of the study, syndicated research output tends to have the same format and show the same data measurements

Target audience

Total population

Tips:• Only use for directional purposes • Sort by index for quick data glance...but don’t forget to think about reach, especially when looking at media properties• If you forget what each line measures...remember, its all in the numbers!

BUILDING A TARGET ANALYSIS

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One you have your target you can delve into the insights to better understand who your target audience is and how you should

reachspeak

interactengage

...etc with them in your communications plan

Media Deep Dives...

to uncover what media channels and properties they

consume to inform media landscapes & tactical

planning

Psychographics Deep Dive

to get a deep 360degree perspective on who your

target is, what the advertising y value, how they react to, to inform

brand strategy

Day in the Life

combine media, demo, psychographic findings to understand target’s daily life and potential media

touchpoints

Basic Demo Overview

to get a general synopsis of who your audience is

and inform buying demos, geo-parameters,

etc

Target deep dives vary based on your starting

point, objective of exercise and are not exclusive of

each other

DON’T STOP WITH SIMMONS

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Trending Tools (Qualitative)

• Iconoculture• Mintel• eMarketer• Forrester

Audience Insights

Audience Insights can come from multiple sources beyond

subscribed tools

• Publisher target studies• VMM Insights• Google Trends

DEFINING YOUR LANDSCAPE

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TVVideo

Mobile

Social

Newspaper

OOHContent

Digital

Programmatic

Video On Demand

Radio

Direct Mail

EXTRACTING MEDIA INSIGHTS

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When looking to create a media landscape try to answer the following...

TIME SPENT: Where is the target spending the most time? Which media is most relevant? How does that compare to the general population?

ENGAGEMENT: How does she use each medium? What is her multitasking behavior? Are there certain times that she is more engaged?

NEW MEDIA: How does social media come into play? Is she active on Facebook or just a passive user? How is she consuming content online? On her phone?

PURCHASE BEHAVIOR: How does it all tie back to the purchase funnel? Where is she converting? Where is she making purchase decisions? Where is she getting information?

EXAMPLE

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APPENDIX

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KANTAR

COMSCORE

IMS

SYSOMOS

GOOGLE