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OBEY Clothing Advertising Plans Book

By Kohl Calhoun 5/14/2012

2 Kohl Calhoun 5/15/12 Plans Book

Target Market Report


The primary demand for my product, OBEY Clothing, is hard to pinpoint exactly. Shepard Fairey, the owner of both One 3 Two, Inc. (doing business as OBEY Clothing) and OBEY Giant LLC (his art company), keeps a tight hold on the financials of his various businesses. In 2011, OBEY Clothing reported $6,100,000 made in net sales. While they dont release their market share info and is nearly impossible to find their market rank, you can compare their 2011 net sales to competing companies RVCA ($1,900,000), Quiksilver ($1,953,100,000) and Billabong ($1,825,431,628) to get an idea of where they are at in the streetwear market. It stands to reason however that OBEY Clothing, founded in 2001, is doing fairly well as far as sales go. According to a market report for competing company Johnny Cupcakes (Situational analysis), OBEY Clothing is sold in over 20 countries worldwide in many different stores that appeal to its target market such as Zumiez, PacSun and Buckle. Along with its online store, this is the primary way that OBEY sells its products since it does not have any store locations devoted solely to its products. This means OBEY Clothings overall market share is less than competing brands like Billabong and Quiksilver, yet greater than brands such as RVCA and The Freshness.

Target Market
Demographics: 1. Young Adults (mostly male, ages 16-30) 2. Lives in urban/suburban areas 3. High School education 4. Some College education 5. Middle-class to high-class income Behaviors: Going to College Taking part in various aspects of urban culture (music, art, film, ect..) Psychographics: Societally conscious (take part in social movements, such as Occupy, Kony 2012, ect.) Trendsetters Culturally motivated (more likely to produce art and culture) All three of these characteristics fall under the Innovators/Thinkers sections of the VALS framework because these products appeal to a higher income bracket and those who have the capacity to be more culturally aware. Benefits sought: Looking cool Being an individual Supporting art growth Looking culturally relevant

4 Geographic delimiters: OBEY products will be best received by an urban or suburban audience. The ideas portrayed dont mesh well with the views by those who typically live in rural areas.

The method of segmentation that was most useful for me was the geographic delimiters. This was because while seeing those who live in such areas typically have ideas, morals and views that are displayed by Faireys art. These more liberal, revolutionary ideas arent as prevalent in rural areas and, therefore, Farieys clothing is more likely to not sell as well there.

Product Analysis
The Company
One 3 Two, Inc., which publiclly does business as OBEY Clothing, was founded by prominent street and political artist Shepard Fairey in 2001 as another canvas for his art and as a way to fund his other art and the numerous social causes he supports (OBEY About Us page). Fairey works with designers Mike Ternosky and Erin Wignall to transform his brand of social commentary into fashionable clothing for his fans. The companys goal, according to the OBEY Clothing about page, is with biting sarcasm verging on reverse psychology, he (Fairey) goads viewers, using the imperative obey, to take heed of the propagandists out to bend the world to their agendas. The company keeps a tight hold on sales information and information in general. However, according to a report found on the One 3 Two, Inc. LexisNexis company search, OBEY Clothing had net sales of $6,100,000 in 2011.

5 According to Fairey in an essay on his OBEY Giant website, the profit margin for clothing companies who dont have their own physical stores, such as OBEY Clothing, tends to be around 20%, especially given the standard prices for the streetwear market that OBEY is in. OBEY has a good standing with streetwear users. Faireys work has been displayed on a national scale. He was the designer of the HOPE poster that became the centerpiece of Barack Obamas 2008 Presidential campaign, he has been featured in the Academy Award-nominated documentary Exit Through the Gift Shop and has created album artwork for artists such as Led Zeppelin and Tom Petty.

The Product
Product Description and positioning
Features: Thick, durable material Unique designs Wide array of clothing options (e.g.: t-shirts, sweatshirts, jackets, jeans, shoes, other accessories) Benefits: Keeps you warm/dry Look cool and cultured Look unique and different from wearers of other streetwear brands. Differentiating qualities: Designs made by Shepard Fairey using his edgy political visual style. Price: Typical t-shirt costs between $20-$30 at retailers. Jackets and sweatshirts cost over $40.

6 Reputation: Good standing in the streetwear market, known for subversive political art style. Competitive Positioning: Not exactly know given lack of market share information. My guess is somewhere in the middle of the market, not as big as companies like Quiksilver or Billabong, but larger than companies like RVCA and The Freshness. Using Faireys artistic style, OBEY tends to have a much edgier appearance than most of its competitors.

Product Sales
In 2011, OBEY Clothing reported $6,100,000 made in net sales. While they dont release their market share info and it is nearly impossible to find their market rank, you can compare their 2011 net sales to competing companies RVCA ($1,900,000), Quiksilver ($1,953,100,000) and Billabong ($1,825,431,628) to get an idea of where they are at in the streetwear market, ahead of some major players yet miles behind the titans and forerunners of the industry.

The Market
Current Customers
The current customers of OBEY Clothing are young adults, mostly male, age 16-30, who live in an urban or suburban area. They typically have finished high school and have at least some college education. They usually take part in various aspects of urban culture, such as music, art film, skateboarding ect.. They tend to have a higher awareness of socio-political causes both in the U.S. and worldwide and

7 are accordingly more likely to take part and raise awareness of them. Their desire to have higher quality than average clothing and their tendency to pay a little extra to ensure that quality is one of the factors that draws them towards OBEY. Above all else, however, the thing that sets OBEY customers apart from customers of competing brands is the love and appreciation of the artwork and messages of Shepard Fairey. Customers buy their OBEY products at either the online store or through retailers such as Zumiez, PacSun or Buckle. They buy OBEY for its guaranteed quality, trendy appearance and appreciation of Faireys art.

Target Market
The target market is the current audience. OBEY Clothing is very good at reaching its targets. The target market of OBEY Clothing desires to look cool, look like an individual, remain culturally relevant and support the growth of art, particularly that of Shepard Fairey. They are often conscious of social causes, motivated by the culture in the places they live and are usually trendsetters.

Product S.W.O.T. Analysis


Strengths
The products themselves are very reliable. According to an essay written by Fairey on his OBEY Giant website, the company ensures that the working conditions of factories that produce OBEY Clothing are fair and the workers are not overworked and underpaid. Availability in many different stores allows a wider group of people to discover the product.

8 Faireys style is very popular right now and recognizable by many people due to the wide distribution of his Obama HOPE poster. Street art association provides buyers a chance to buy clothing that supports progressive, forward thinking art.

Weaknesses
Products are made in factories over seas, which could potentially lead to backlash from human rights activists over working conditions, regardless of whether they are treated poorly or not. Lack of physical stores is indicative of small market share and sales.

Opportunities
According to Fairey in the documentary Exit Through the Gift Shop, the OBEY brand builds itself from repetition. The more times someone sees OBEY, the more people will think that its an important brand, and the more people think that its an important brand, the more important it will become one due to perceived importance.

Threats
Association with Obama may turn some people off. Faireys legal battle with the Associated Press over his usage of copyrighted pictures for his Obama poster may turn some people off. o This may also cost the company a lot of money in legal fees. Street art, still called graffiti by many people, association may turn some people off.

9 The repetitious model of OBEY may turn some people off. Products being produced overseas could lead to a backlash from certain groups over taking money out of the U.S. economy by not providing many job opportunities in the U.S.

Advertising Objectives
The main objective OBEY Clothing should set is increasing its market share in the streetwear market by building a long-range consumer franchise, such as competitors Quiksilver and Billabong have already done. As Fairey says, first building a perceived importance of the brand will eventually lead to the brand becoming actually important to the consumer. The brand already has strong recognition thanks to the ubiquitous Obama image associated with it, but further brand awareness and recognition is key to increasing the marketability of the brand and therefore should be the primary objective of all advertising. Building customer demand should be the secondary objective of the advertising. After strong recognition of the OBEY image and style is built, an increase in customer demand will naturally follow. Securing near universal distribution (stores that typically sell streetwear such as Zumiez and PacSun, as well as bigger stores that sell only the most popular streetwear brands, such as Macys and JC Pennys) is the natural tertiary goal of this market strategy. After building a strong brand image that becomes important to the consumer, customer demand will increase. After customer demand increases, a wider variety of retailers will find it in their interests to stock OBEY Clothing to increase sales. When this happens, even more demand

10 will increase until the OBEY image becomes more and more ubiquitous with the consumer, once again creating a higher demand for the products and once again increasing the amount of retailers who will find it beneficial to carry OBEY Clothing. This advertising plan is self-sufficient in a way, as the more the top goal is achieved, the more the other goals will fall into place and repeat themselves as the brand awareness continues to grow. This could eventually lead to OBEY opening stores that sell only their products and an eventual diversification of the already wide product line if demand is high enough. This strategy is exactly what Shepard Fairey described, turning perceived importance into actual importance.

Creative Brief
Whats the Problem?
OBEY Clothing, although an eye-catching brand is not very well known to the general public. Most, if not all of America is aware of the OBEY style, thanks to Shepard Faireys ubiquitous HOPE image made for Barack Obamas 2008 Presidential campaign, but only those who are fans of Faireys style or who did some research have made the connection that the two are linked. The main problem is that the relationship between HOPE and OBEY hasnt been connected by nearly enough people. In order for OBEY Clothing to truly capitalize on the very strong power of branding that is already out there, people must connect the dots and OBEY must strengthen the image of OBEY in the peoples minds.

The Objective

11 The main objective of this ad campaign is to raise awareness of OBEY. Shepard Faireys OBEY philosophy is that the more people see a certain image or visual style, the more people will perceive that image or style as important. Eventually, more people perceiving that image or style as important will increase its actual importance to those people. This philosophy will be adopted into the advertising strategy for this campaign. Through the increase of perceived importance, the OBEY brand will become more important to the consumer.

The Target Audience


The target audience of OBEY Clothing are young adults, mostly male, age 1630, who live in an urban or suburban area. They typically have finished high school and have at least some college education. They usually take part in various aspects of urban culture, such as music, art film, ect.. They tend to have a higher awareness for socio-political causes both in the U.S. and worldwide and are accordingly more likely to take part and raise awareness for them. Their desire to have higher quality clothing and their tendency to pay a little extra to ensure that quality is one of the factors that draws them towards OBEY. Above all else, however, the thing that sets OBEY customers apart from customers of competing brands is the love and appreciation of the artwork and messages of Shepard Fairey. They buy OBEY for its guaranteed quality, trendy appearance and appreciation of Faireys art.

Brand Personality
The personality of the OBEY Clothing is the attitude of artist Shepard Fairey: Bold yet subtle, political yet sarcastic and most importantly, in your face. The brand makes you look at it and demands your attention. This style is an important need of

12 the target audience. Whether they are making art, music, films, trying to get you to sign their petition for whatever cause they are supporting or just trying to stand out in a crowd, if they are wearing OBEY, people will take notice. The experience of the brand is to be noticed, whether someone is interested in where they got the shirt, what the message of it is, or just trying to figure out what exactly is on the shirt, people will notice it and you. This bold personality that OBEY Clothing has can be utilized to catch the eye of the viewer and get people to see the brand for what they want out of it.

Benefits to Communicate
As said in the Brand Personality section, the bold visual style of OBEY clothing satisfies the need to be noticed and stand out for the consumer. When a person is wearing OBEY, they definitely get noticed by whoever they are around.

Support for Benefits


According to a 2008 interview with Shepard Fairey in The Huffington Post, the OBEY style seen in the Obama HOPE poster was quickly noticed by people and went viral very quickly after Shepard began selling posters and stickers on the streets. Fairey said they printed over 200,000 posters and over 500,000 stickers of the image to spread the image across the country, thereby cementing the images ubiquitous status. He also included a subtle, yet noticeable OBEY Star in the original images to recruit his loyal followers into supporting the campaign. Fairey set out to make an image that would get people excited about the Obama campaign, and his image not only did that but gave the campaign a symbol to rally behind.

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Media Plan
Media Objectives
1. To target the general streetwear audience with an emphasis on expressing individuality and a change from the normal streetwear style. 2. To reach 500,000 people with this campaign. 3. To focus the weight of advertising in urban and suburban areas, focusing mostly on major cities on either coast (New York, Los Angeles, Miami, Boston, Seattle, Portland, ect.) and around the Great Lakes area (Chicago, Detroit, ect.). The message and ideals of the product will resonate best in these major metropolitan areas where there is more artistic culture. 4. The campaign will start in late summer/early fall and go consistently through the rest of the year. The advertising should be focused during the primetime, late news and late night TV day parts Sunday through Thursday with a peak on Tuesday nights with advertising during the Comedy Central program Tosh.0. 5. To aggressively market through social media platforms such as Facebook and Twitter. 6. To have an average frequency of exposure to each audience member of 5.5 of the course of the campaign.

Media Strategy
The media outlets used in this campaign will be cable TV and the Internet. We will use the cable network Comedy Central for our TV vehicle. Famous for shows

14 such as South Park, The Daily Show and The Colbert Report, Comedy Central features programming that appeals primarily to my target demographic of 16-30. Advertising will be :30-1:00 long and will start during primetime and run through the late night day part. Ads will be particularly focused during the customary twohour block of the show Tosh.0 on Tuesday nights. This decision is due to the show consistently winning in not only the Tuesday night cable rankings according to tvbythenumbers.com, but also in the Adults 18-34 category, which makes up a large part of my target demographic. For our Internet strategy, we will use the music blog aggregator hypem.com, also known as The Hype Machine. While it doesnt have the name recognition that Comedy Central has, hypem.com is well known by college students, new and indie music junkies and audiophiles alike, all of which fall into my target audience. Advertising will be banner-ads near the top of the page. Media Vehicle Ad Size/Length Cost per Insertion Frequency Total Audience Cost for Size Schedule $2,000* 42,170,547 CPM

Hypem.com Leaderboard $2,000* 1* $0.05 (728x90) Comedy :30 Spot $28,000** 5.5 $154,000 2,643,000 $10.59 Centrals x 5.5 = Tosh.0 14,536,500 Totals $156,000 56,707,047 *Estimations based on readily available 6-month plan figure (from http://stattrek.com/site/advertising.aspx) **Estimation based on calculated cost of a :30 on The Daily Show (from http://www.unc.edu/~emharris/Advertising%20on%20Comedy%20Central.pdf)

References

Advertising rates and programs. (n.d.). Retrieved from http://tinyurl.com/7oxkegl

15 Arnon, B. (2008, October 13). How the obama "hope" poster reached a tipping point and became a cultural phenomenon: An interview with the artist shepard fairey. The Huffington Post. Retrieved from http://tinyurl.com/4qytx9 Bibel, S. (2012, April 4). Tuesday cable ratings: 'tosh.0' wins again 'dance moms,' 'hardcore pawn', 'justified','storage wars texas','real housewives' & more. Retrieved from http://tinyurl.com/723cjwr Billabong international ltd. (2012, Jnuary 20). Retrieved from http://tinyurl.com/3ve7ajj Comedy central program schedule. (n.d.). Retrieved from http://tinyurl.com/7swh886 Fairey, S. (Performer) (2010). Exit through the gift shop [DVD]. Harris, E. (2003, December 10). Advertising on comedy centrals the daily show with jon stewart. Retrieved from http://tinyurl.com/6r4flo5 Hypem.com site info. (n.d.). Retrieved from http://tinyurl.com/74xxnx4 Obey clothing-about. (n.d.). Retrieved from http://tinyurl.com/7l2u6y7 One 3 two, inc.. (2012, March 8). Retrieved from http://tinyurl.com/3ve7ajj Quiksilver inc. (2012, March 20). Retrieved from http://tinyurl.com/3ve7ajj Rvca corporation. (2012, March 8). Retrieved from http://tinyurl.com/3ve7ajj Salfiti, M., & Fairey, S. (2003, July 8). Obey clothing: Domestic concerns. Retrieved from http://tinyurl.com/737usq5 Situational analysis. Unpublished raw data, University of Wisconsin-Eau Claire, Eau Claire, Wisconson. Retrieved from people.uwec.edu/HILDLE/web/JohnnyCupcakes.pdf

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