Kristen Morgan 1

Dooney & Bourke Advertising Plan

Brand Performance

Description of product/service:
• Dooney and Bourke Inc. is a privately owned company that primarily produces
high- end fashion handbags.

Sales history over the past three years in SF:

Year Sales
2003 22.5 million
2004 31 million
2005 30 million

Geographic Distribution within San Francisco:

• Department stores such as Macys and Nordstrom

• Online on company website.
• Company mail-order catalog.

Pricing strategy:
• Expensive

Advertising expenditures over past three calendar years:

Year Ad expenditure
2003 2.5 million
2004 3 million
2005 2.8 million

Competitive Trends

Two major competitors in SF:

• Coach Inc.
• Juicy Couture Inc.

Sales history over the past three years in SF for Coach and Juicy Couture:

Year Coach Juicy Couture

2003 34 million 16 million
2004 44 million 19.5 million
2005 39 million 20.1 million
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Coach Inc:

Product lines/unique advantages:

• Produces high-end, classic, high-quality hand bags.
• Coach’s unique advantage is their signature “C” that is placed on all their
merchandise.
• Has also been in the fashion industry the longest and has a longer established brand
history with consumers, which provides the company both older and younger
customers.
How they position their products:
• Department stores such as Macy and Nordstrom
• Company (Coach) stores
• Company mail-order catalogs
• Company web site.

How they market their advertisements:

• Through magazine advertisements
• E-mail newsletters
• Newspaper advertisements
• Outdoor

Juicy Couture Inc:

Product lines/unique advantages:

• Produces high-end fashion hand bags mostly in velour and terry cloth fabrics.
• The advantage of this company is its appeal to the younger generation and its
signature “j” that is placed on merchandise.
• This company also has the edge because its products are seen as “celebrity wear”
because most celebrities are caught wearing Juicy Couture.
• Juicy handbags are sold in more stores than competitors.

How they position their products:

• High-end stores such as Neiman Marcus, Nordstrom, and Saks Fifth Avenue.
• High-end boutiques in the city.

How they market their advertisements:

• Distributing them to celebrities
• Paparazzi pictures in magazines
• Television spots
• E-mail newsletters

How much they each spend on advertising:

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Year Coach Juicy Couture

2003 1.5 million 1 million
2004 2.5 million 2 million
2005 2 million 2.5 million

Each brands’ “share-of-voice” during the past three years:

Year Dooney & Bourke Coach Juicy Couture

2003 50% 30% 20%
2004 40% 33% 27%
2005 38% 28% 34%

Each brands’ “share-of-market” during the past three years:

Year Dooney and Bourke Coach Juicy Couture

2003 31% 47% 22%
2004 33% 47% 20%
2005 34% 44% 22%

Industry Trends

Size of the industry in SF:

Year Industry Size

2003 72.5 million
2004 94.5 million
2005 89.1 million

Industry growth trend in SF over past three years:

Year Industry
Growth
2003 N/A
2004 +30%
2005 -6%

Significant changes in industry:

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• In the past three years consumers of all class levels have become aware or are now more
aware of high-end fashion designers. Because of this recent trend, there has been a surge
in the fashion industry for high-end goods.
• These companies have all benefited from this increased awareness.
• This awareness stems from celebrities in all categories but especially the hip-hop artists
and TV actors who are constantly seen wearing these labels or singing about them in their
songs, on television, or in paparazzi photographs displayed in mass-distributed
magazines.

Consumer profile:

Who purchases the products in this industry:

Demographics:
• Mostly women age 15-45
• High school and/or college level education
• Varying income levels
• Students and/or Professionals
• Majority do not have children
• Majority are of single marital status.

Psychographics:
• Actualizers
• Experiencers
• Achievers

What segments exist among these purchasers:

15%
17%

High School Students

College Students

Young Professionals
(22-30)
Older Professionals
(31-45)
31%
37%

What were the levels of brand awareness for the past three years:
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Brand Awareness Dooney and Bourke Coach Juicy Couture

Unaided 82% 86% 43%
Aided 90.5% 93% 84%
Top-of Mind 31% 46% 23%

Problems and Opportunities:

Problems:
• Because these products are unreachable by certain incomes, the lower income population
may buy knock-offs instead. This may also cause some of the demographic that do not
care if they have the “real” thing to purchase knock-offs as well.
• Dooney & Bourke does not have a very large distribution through out the city. These
products are mostly sold only in department stores and high-end boutiques.
• Share of voice heavily decreased for Dooney and Bourke from 50% in 2003 to 38% in
2005.
• The growth for this industry has decreased by 6% in the past year, despite its 30%
increase in 2004.

Opportunities:
• Because some consumers are priced out of the market, these goods become more of a
luxury item and the brand gains this reputation.
• The limited supply allows few in the population to own these products and this
psychographic likes that not everyone has these products. The merchandise and the
brand become exclusive.
• Dooney & Bourke benefits from high brand awareness at 82% unaided and 90.5% aided.
• Dooney & Bourke also has steadily increased in share of market from 31% in 2003 to
34% in 2005.

Marketing Objectives
• Increase dollar sales from $30 million in 2005 to $42 million in 2006.

Marketing Strategies
• Product: Diversify items by offering more color and size options per style.
• Price: Remain expensive but offer lower prices for smaller sized products.
• Distribution: Build more intensive distribution.
• Promotion: Increase to encourage brand switching and increase purchases of product
category.

Segmentation Strategy
Target Audience:
• Demographics: Young adult females ages 18-30, Urban and/or Suburban, Some
disposable income, but have parents with disposable income, and lead active lifestyles.
• Psychographics: Achievers, Experiencers, and Actualizers.
• Brand Awareness: Moderate brand awareness and shop at competitor’s stores.
Consumer Buying System
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• Need Recognition: Desire to keep up with the current trends and styles in fashion,
especially in handbags.
• Internal Search: Past experiences with different fashion labels and brand awareness.
• External Search: Ask friends and family who are trendy and buy these products. Check
online and in magazines for more information, and visit department stores.
• Consideration Set: Narrow down the options to three labels: Dooney & Bourke, Coach,
and Juicy Couture.
• Evaluative Criteria: Quality+Color Options+Size Options+Style +Newness+Lasting style
Price
• Purchase: Buy Dooney & Bourke handbag from department store.
• Experience: Very good choice, and will purchase from brand again and recommend to
others.

Brand Positioning
• To young adult females, Dooney & Bourke is a premium handbag designer label that
offers a more stylish line of handbags.
• Criteria: True, relevant, simple, distinctive, and long-lasting.

Advertising Budget Determination:

• Based on Percent of Sales: We will be using 7.3% of our last years sales to determine
our next years budget.

• Percent Amount (millions)

7.3% $2.2 million

• Rationale
o The percentage method is being used because it is simple and affordable for
the company. Furthermore, we want this campaign to be bigger than our past
campaigns but more cost effective at the same time in order to really push the
label and see the great improvement in profits.

Media Plan:
• Objectives:
o Reach 60% of target audience 10 times during an average 4 weeks of
advertising.
o Advertise during all 12 months of the year, but more heavily in the months of
December, February, April, and June, due to holidays and breaks from school.
o Execute this advertisement plan in San Francisco.

• Strategies:
o Purchase 600 Gross Rating Points per average of 4 weeks of advertising in
San Francisco.
o Schedule advertising during the months of December, February, April, and
June more than the other months during the year.
o Utilize the mediums of magazines, outdoor, internet, and newspaper.
Advertising Units
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Medium GRP
Magazine 3600
Outdoor 1800
Internet 1100
Newspaper 700
TOTAL 7200

GRP’s Distribution

GRP = Reach X Average Frequency Total GRP’s= 600 X 12 (4 week period)

= 60 X 10 = 7,200
= 600

Detailed Recommendation:
• Flow Chart:
Medium Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
GRP
Magazine 300 300 300 300 300 300 300 300 300 300 300 300 3600

Outdoor 150 150 150 150 150 150 150 150 150 150 150 150 1800
Internet 100 75 100 75 100 75 100 100 100 100 100 75 1100
Newspaper 50 75 50 75 50 75 50 50 50 50 50 75 700
TOTAL 600 600 600 600 600 600 600 600 600 600 600 600 7200

Budget Details
• Media Cost: $913,000.00
• Production Cost: $795,000.00
• Research Cost (Survey): $20,000.00
• PR Cost: $300,000.00
• Promotional Cost: $200,000.00
Grand Total: $2,228,00.00
Media Cost Chart:

Medium Total GRP’s Cost Per GRP Total Cost

Magazine 3600 $200 $720,000

Outdoor 1800 $50 $90,000

Internet 1100 $30 $33,000
Newspaper 700 $100 $70,000
Media Cost $913,000
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Production Cost Chart:

Production # Units Cost Total

Magazine 3 $20,000 $60,000

Outdoor 3 $75,000 $225,000

Internet 48 $10,000 $480,000
Newspaper 3 $10,000 $30,000
Production Cost $795,000

Media Rationale:

• Magazine: We will be using 3 different 4 color magazine advertisements to target our

target audience. This medium will be used because our target audience is highly
receptive to magazine publications through suscribing, reading, and buying. It is also
very important that as a fashion brand, our product is displayed in fashion magazines in
order to appear up-to-date and stylish.

• Outdoor: We will be using 3 different 4 color outdoor advertisements. This medium will
be used because it is highly receptive to all audiences, but will be focused primarily on
our target audience. This is the largest piece of advertising we will have since mass
amounts of people will be subjected to it daily.

• Internet: We will be using 48 different internet advertisements that will be sent to email
subscribers weekly and will also be used as the homepage for our company website. This
medium will be used because our target audience of Actualizers are very technologically
savvy. Furthermore, this medium will hopefully entice the Experiencers to impulse buy
our products online. Since the internet advertising is weekly, it gives the appearance that
the company is fast past and on the leading edge of style.

• Newspaper: We will be using 3 different half page black and white newspaper
advertisements. This medium will be used because our target audience as Actualizers
and Achievers are highly receptive to news publications. This also has a large reach to
other audiences, especially the parents of the target audience.
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Creative Brief

• Why are we advertising at all?

o Increase dollar sales from $30 million in 2005 to $42 million in 2006.

• Who are we advertising to?

o We are advertising to young adult females ages 18-30 that live in/around San
Francisco. They are Urban and/or Suburban, have some disposable income, but
have parents with more disposable income, and they lead active lifestyles.

• What do we know about them?

o Through the VALS system they are characterized as Achievers, Experiencers, and
Actualizers. This means they are attracted to premium products, follow fashion
and fads, and are highly receptive to newspaper and magazine publications.

• What do we want them to think or do?

o Purchase Dooney & Bourke handbags.

• What’s the main idea we need to communicate?

o That Dooney & Bourke is a premium handbag designer label that offers a more
stylish line of handbags.

• What support is there for the main idea?

o Dooney & Bourke offers a private label designer handbag line of up-to-date and
timeless styles that are exclusively sold in select department stores as well as the
company website and mail-order catalog.

• What mandatory requirements are there?

o Show the Dooney & Bourke logo
o Show the company website
o Show the product itself

Tracking Study
Advertising Objective:
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• To increase dollar sales from $30 million in 2005 to $42 million in 2006.

Tracking Plan:
• Benchmark study to track the effectiveness of our campaign.
• Surveys that poll target audience issued in January, July, and December.