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Jonathan Beacham

Hypothetical

Marketing Plan:

STANCE Socks

WORD COUNT:1496 words

Year 12, SACE Stage 2 Business and Enterprise

EXECUTIVE SUMMARY

Stance is a worldwide company based in California(^1 ). Its new sock product STANCE Progressive is to be marketed throughout America which has a high population of people within their target market(^2 ) for both their regular socks and their new athletic sock. If successful the marketing campaign will run for 6 months to promote the product and give time for marketing objectives to be achieved. (^1) Stance.com, 2015, Stance Careers, https://www.stance.com/careers, Accessed: /22/05/ (^2) Daily Grind Skate Co., Customer Services, 27/06/15, Adelaide CBD

• EXECUTIVE SUMMARY...........................................................................................................................
• TABLE OF CONTENTS.............................................................................................................................
• E OF FIGURES.........................................................................................................................................
• SITUATIONAL ANALYSIS.........................................................................................................................
• IDENTIFICATION OF TARGET MARKET...................................................................................................
• MARKETING OBJECTIVES.......................................................................................................................
• DEVELOPMENT OF MARKETING STRATEGIES........................................................................................
  • Display Ad Rates..............................................................................................................................
• IMPLEMENTATION, MONITORING AND CONTROLLING.......................................................................
• CONCLUSION.......................................................................................................................................
• BIBLIOGRAPHY.....................................................................................................................................
• EXECUTIVE SUMMARY........................................................................................................................... TABLE OF FIGURES
• TABLE OF CONTENTS.............................................................................................................................
• E OF FIGURES.........................................................................................................................................
• SITUATIONAL ANALYSIS.........................................................................................................................
• IDENTIFICATION OF TARGET MARKET...................................................................................................
• MARKETING OBJECTIVES.......................................................................................................................
• DEVELOPMENT OF MARKETING STRATEGIES........................................................................................
  • Display Ad Rates..............................................................................................................................
• IMPLEMENTATION, MONITORING AND CONTROLLING.......................................................................
• CONCLUSION.......................................................................................................................................
• BIBLIOGRAPHY.....................................................................................................................................

SITUATIONAL ANALYSIS

Stance is one of the world’s leading sock companies with a brand image focussed on individuality and providing the best quality sock(^3 )(^4 )(^5 ). Although Stance sells their socks for aboveaverage price compared to competitors, Stance socks have the following competitive advantages(^6 )(^7 ):

- High Quality - Fashionable&Range of styles - Extreme comfort - High Durability - High Breathability Stance’s new sock has an even higher quality, durability and breathability level. Pricing the new sock at above average but not most expensive would as shown in figure 1 strategically position the sock amongst competitor products to give a competitive advantage(^8 ). 1 2 3 4 5 6 7 8 9 10 Price B A Q R N G Z StS H Quality and Durability A B G Z Q N S St H Comfort A B G Q R N S H St Range A G B Q R N Z S H St Figure 1 - Product Placement and Competitor Analysis Matrix(^9 )(^10 )(^11 )(^12 )(^13 )(^14 )(^15 )(^16 ) (^3) Stance.com, 2015, About Stance, https://www.stance.com/about, Accessed: 22/05/ (^4) Product Me, 2015, STANCE, http://myproductme.com/meet-the-brands/meet-the-brands-stance-socks/, Accessed: 9/06/ (^5) Stance.com, 2015, Stance Socks, https://www.stance.com/, Accessed: 22/05/ (^6) Looi .J, 2014, Stace Socks Review: A Stylish Yet Functional Option for Travelers, http://www.thetravelgearreviews.com/stance-socks-review, Accessed: 22/05/ (^7) Bomb Flow Magazine Contributor, n.d., Stance Sock Review, http://www.bombflow.com/archives/stance- sock-review, Accessed: 9/06/ (^8) Adam .S,Armstrong .G, Brown .L, Kotler .P, 1998, Marketing, 4th (^) Edition, Prentice Hall, Australia, Accessed: 11/06/ (^9) Platypus Shoes, Customer Services, 20/06/15, Tea Tree Plaza, Adelaide (^10) Platypus Shoes, Customer Feedback, 20/06/15, Tea Tree Plaza, Adelaide (^11) Surf Dive ‘n’ Ski, Customer Services, 20/06/15, Tea Tree Plaza, Adelaide (^12) JR’s Surf & Ski, Customer Services, 27/06/15, Adelaide CBD (^13) Daily Grind Skate Co., Customer Services, 27/06/15, Adelaide CBD (^14) STANCE Socks Hypothetical Marketing Assignment Survey conducted by Jonathan Beacham, 2/07/ (^15) Surfstich.com, 2015, Mens Socks, http://www.surfstitch.com/category/mens-clothing/mens-socks-and- underwear/mens-socks- online#facets=1002egg:cat250002v:2004v:cat250002v:&page=1&pageSize=100&sortCode=default, Accessed: 9/06/ (^16) Surfstich.com, 2015, Womens Socks,http://www.surfstitch.com/category/womens-clothing/womens-socks %2Bunderwear/womens-socks, Accessed: 9/06/

NBA MLB Skateboarding Motorcross Athletics Tomboys Style Sensed Stance Segmented Markets Figure 2- Summary of Stance’s Segmented Target Markets

MARKETING OBJECTIVES

To develop an effective marketing plan, Stance must first decide what the company wants to achieve with the product release. Stance has the following marketing objectives:

- Profit Maximisation and Increased Sales Since its founding in 2009, Stance has sold 15 million pairs of socks(^25 ). Stance socks aren’t under threat by competitors and therefore aren’t struggling to survive. Stance do however have the opportunity to grow. Moreover with the release of the new sock Stance is aiming at maximising its product sales by selling 300,000 pairs of this sock within 12 months. - Market Share Leadership Aiming the new sock product at an athletic market, Stance is seeking to overcome the leading market leader, NIKE. NIKE with a 37% leading market share(^26 ), Stance’s objective is to reduce NIKE’s market share to about 25% and reach its own share of 20% or greater. (^25) Shontell .A, 2015, Sock Startup Raises $50 Million, http://www.businessinsider.com.au/stance-socks-raises- 50-million-2015-3, Accessed: 30/06/ (^26) Siemers .E, 2013, Nike Capitilizes on Athletic Sock Trend, http://www.bizjournals.com/portland/print-edition/ 2013/02/08/nike-is-capitalizes-on-athletic-socks.html, Accessed: 17/06/

Promotion Methods of promotion are as follows:

- Social media advertising (facebook, instagram and youtube)  Target market of a younger demographic use social media frequently, therefore this promotion will be used to reach them.  Special offers such on Stance’s website to loyal customers who follow on social media - Billboards - Transit advertising - In store advertising - Magazine advertising Objectives As stated in the marketing objectives section Stance is aiming to sell 300,000 pairs of this athletic sock and become a leading athletic sock market shareholder. Budget Stance is a thriving, large company have the resources for a large budget for the marketing campaign. A bottom up strategy for budgeting will be used to ensure that objectives are set and effective, reasonably priced activities are planned to achieve objectives and keep costs to a minimum(^32 ). Audience Advertising will be aimed at the target market of both male and female teenage to young adult exercise and sports enthusiasts. Communication Strategy The main message Stance wants to get across is that their product provides you with the best performance in durability, versatility and style a sock can give for everyday life and in sports. Stance has had past dealings with sport stars that the target audience idolise who could be used to get this message across.Some of these include(^33 ): - NBA players Klay Thompson and Dwayne Wade(^34 ) - Skateboarder Nyjah Huston - Surfer John John Florence - Mountain Runner Anton Krupicka (^32) Chand .S, Objective and Task Approach to Advertisement, http://www.yourarticlelibrary.com/advertising/objective-and-task-approach-to-advertisement/22285/, Accessed: 23/06/ (^33) Stance.com, 2015, Stance Socks, https://www.stance.com/, Accessed: 22/05/ (^34) Bradstreet .K, 2013, Stance Branches out to the NBA with the new Wade Collection, http://business.transworld.net/143272/news/stance-branches-nba-new-wade-collection/, Accessed: 10/06/

Creative Strategy One creative strategyis to develop an advertisement featuring a range of sport stars like the ones already listed giving testimonials and demonstrate the socks use in sports with the numerous styles that can adapt to each of their lifestyles. A plan for this ad can be seen below: Figure 3- Story board plan for video advertisement Other creative strategies to market the productinclude creating product displays posters that can be placed around sports shops and events. Displays can also be advertised in sports magazines the target audience read and can be adapted to billboards and transit advertising.

Costs of these promotional activities will add up to the overall budget. Therefore keeping in mind the bottom up strategy for the budget, estimates of overall costs of advertising activities are summarized in the tables below. Cost ($US) Expected cost over 6 month campaign Youtube Advertising 0.10-0.30 per view 378, 000-1,134,000 (with max 30,000 daily view budget) Facebook Advertising 1,000 daily budget 182, 000 Instagram Advertising Nil to post photos - Max Total Expected Cost: 1, 316, 000 $US Figure 7- Summary of Social Media Advertising Costs(^35 )(^36 ) Display Ad Rates 1x 3x 6x 12x FULL-PAGE Black & White $2,535 $2,355 $2,175 $2, Two-Color $2,940 $2,760 $2,580 $2, Four-Color $3,460 $3,275 $3,100 $2, Figure 8- Magazine Advertising Rates(^37 ) Magazines come out monthly so over the course of the 6 month campaign magazine advertising will be done 6 times for 10 differing magazines for a approximated cost of 207,600 $US. Type of Transit Advertising Maximum cost per ad per 4 week period ($US) Maximum Expected cost over 6 month campaign Bus Advertising 4,500 450, 000 (1st^ , 2nd^ 4 wk period- 50 buses) Bus Stop Advertising 4,500 450, 000 (3rd^ , 4th^ 4 wk period- 50 bus stops) Max Total Expected Cost: 900, 000 $US Figure 9- Summary of Transit Advertising Costs(^38 ) (^35) Alleger .J, 2012, How Much Do Ads on YouTube Cost?, http://www.pennapowers.com/how-much-do-ads-on- youtube-cost/, Accessed: 2/07/ (^36) Facebook, 2015, How much do Facebook Adverts cost?, https://www.facebook.com/business/learn/how- much-facebook-ads-cost/, Accessed: 2/07/ (^37) Quirks Marketing Research Media, 2015, Magazine Advertising Rates, http://www.quirks.com/advertise/print/adrates.aspx, Accessed: 2/07/ (^38) Blue Line Media, 2015, Transit Advertising, http://www.bluelinemedia.com/transit-advertising, Accessed: 2/07/

Size of Billboard Maximum cost per location per 4 week period ($US) Maximum Expected cost over 6 month campaign Large 30,000 150, 000 (1st^ 4 wk period- 5 billboards) Medium 2,000 120, 000 (2nd, 3rd, 4th^ 4wk periods- 20 in each) Small 750 45, 000 (2nd, 3rd, 4th^ 4wk periods- 20 in each) Digital/LED Bulletin 25,000 for an 8 second spot in a 64 second loop 125, 000 (1st^ 4 wk period- 5 billboards) Max Total Expected Cost: 440,000 $US Figure 10- Summary of Billboard Advertising Costs(^39 ) Campaign Research and Evaluation Pre-testingdone with target audiencerepresentatives has shown that the most attractive name for the product is “STANCE Progressive” and that the planned advertising is likely to be effective in achieving objectives. During the campaign activities will be closely monitored in post-testing and will be evaluated on their effectiveness in attributing to objectives. This will be done in monitoring and controlling as discussed in the next section. (^39) Blue Line Media, 2015, Billboard Advertising, http://www.bluelinemedia.com/billboard-advertising, Accessed: 2/07/

Controlling From the monitoring step of comparing planned effectiveness and actual effectiveness of promotional activities controlling actions can then be undertaken if needed. These actions may consist of altering the marketing mix of product, price, promotion and placement of the sock if the marketing campaign is not meeting quotas(^43 ). (^43) Adam .S,Armstrong .G, Brown .L, Kotler .P, 1998, Marketing, 4th (^) Edition, Prentice Hall, Australia, Accessed: 11/06/

CONCLUSION

Stance has developed a SWOT analysis to identify internal weaknesses, strengths, threats and opportunities for the marketing campaign. Figure 12- SWOT Analysis for Stance Progression Strengths:

• Large company with strong customer base -New high quality product (competitor advantage) Strengths:
• Large company with strong customer base -New high quality product (competitor advantage) Weaknesses:
• Overpriced product? -Ineffective advertising
• Consumers may not want product Weaknesses:
• Overpriced product? -Ineffective advertising
• Consumers may not want product Opportunities:
• Growing Business
• New product for large profit
• Increasing Brand Awareness
• New market and more customers Opportunities:
• Growing Business
• New product for large profit
• Increasing Brand Awareness
• New market and more customers Threats:
• Major competitors such as NIKE may release matching product Threats:
• Major competitors such as NIKE may release matching product

Rovell .D, 2015, NBA agrees to licensing deal with Stance as league’s official sock , http://espn.go.com/nba/story/_/id/12774759/nba-agrees-licensing-deal-stance-league-official-sock, Accessed: 9/06/ Shontell .A, 2015, Sock Startup Raises $50 Million , http://www.businessinsider.com.au/stance-socks- raises-50-million-2015-3, Accessed: 30/06/ Siemers .E, 2013, Nike Capitilizes on Athletic Sock Trend , http://www.bizjournals.com/portland/print- edition/2013/02/08/nike-is-capitalizes-on-athletic-socks.html, Accessed: 17/06/ Stance.com, 2015, About Stance , https://www.stance.com/about, Accessed: 22/05/ Stance.com, 2015, Stance Careers , https://www.stance.com/careers, Accessed: /22/05/ Stance.com, 2015, Stance Socks , https://www.stance.com/, Accessed: 22/05/ Surfstich.com, 2015, Mens Socks, http://www.surfstitch.com/category/mens-clothing/mens-socks- and-underwear/mens-socks- online#facets=1002egg:cat250002v:2004v:cat250002v:&page=1&pageSize=100&sortCode=default, Accessed: 9/06/ Surfstich.com, 2015, Womens Socks,http://www.surfstitch.com/category/womens-clothing/womens-socks%2Bunderwear/ womens-socks, Accessed: 9/06/ Book Sources: Adam .S, Armstrong .G, Brown .L, Kotler .P, 1998, Marketing, 4th^ Edition, Prentice Hall, Australia, Accessed: 11/06/ Chapman .S, Devenish .N, Dhall .M, Norris .C, 2011, Business Studies in Action- HSC Course, Australia, John Wiley & Sons Ltd, Accessed: 18/06/ Neal .C, Hawkins .D, Quester .P, 1999, Consumer Behaviour: Implications for Marketing Strategy, 2nd Edition, Irwin McGraw Hill, Australia, Accessed: 11/06/