David Cromer Jacki Juenger Katie Chapin Krystal Plomatos

Agenda
oThe MBT Brand oThe Assignment oThe Target oObjectives and Strategies oCompetitive Analysis oReach and Frequency Goals oMedia Recommendations

Brand Background
MBT would like to help people all over the world lead a healthier, more active and happier life.

MBT is convinced that human fitness and health are significantly influenced by the way we walk this conviction has already been substantiated objectively by many scientific studies.

MBT Brand Essence

The World's Smallest Gym "I view them as more of a piece of equipment, than a pair of shoes. I feel like a trip to the grocery store could almost qualify as a workout."
Anti-Shoe Allure This style is very comfortable and have a super cool kicking-it look!

Comfortable "MBTs save my life & career! They're the only way I can I can stay on my feet all day and be happy, too.

The Assignment
o Broaden MBT's appeal to a new target without alienating their core audience (A35-64)

Target Analysis
Qualifying Statements: 5+ of the following
o o o o o o o o o Pay anything when it concerns my health Should exercise more than I do Dont have time to prepare/eat healthy meals Ill try any new diet I am currently dieting I try to lose weight by dieting I am a workaholic I do some sport/exercise once a week I participate in fitness walking/exercise walking occasionally

Target Population
Adults 18-34 Total Pop. 12,186,000 64% Female
36% Male

The Try-It Diettes

The Target
Pyschographic Painting a Picture of the Target

Obstacles
oPrice (approx. $250) oLoyal to Nike & Adidas oPicky about fashion oThey don't yet suffer from foot/back/posture/plantar fasciitis problems that the current core user does.

Media Usage
MEDIA
Cable TV Network TV Magazines Radio Internet (Work) Internet (Home) Newspaper Out of Home

LOW

MEDIUM

HIGH

Objectives and Strategies

Objective 1: Raise awareness of the fitness benefits of MBT shoes among 18-34 year olds.

Strategy: o Reach our target when they are thinking about improving their image

Objectives and Strategies

Objective 2: Increase traffic to the MBT website.

Strategies: o Reach our target when they are searching for entry level fitness regimens o Reach our target when they are searching for diet information

Objectives and Strategies

Objective 3: Drive foot traffic to retail locations that carry MBT.

Strategy: o Reach our target when they are already shopping near the retail outlet

Competitive Analysis

Share of Voice- Total Media 2008

1%
2% 3% 3% 2% 1%

New Balance MBT Rockport Reebok Earth

4%

4%

7%

Merrell
54%

Keen Dansko Brooks

7%

12%

Total Spend: $44,328,37 9

Saucony Ecco Mephisto

Note: Does not include brands with under 1% share of voice Source: TNS Media Intelligence

Category Media Mix 2008

3% 4% 2%

Magazine Network TV
37%

6%

8%

Cable TV
US Internet Spot TV

14%

Newspaper Sunday Magazines

26%

B to B

Note: Does not include media under 1% of spend Source: TNS Media Intelligence

Media Spending by Month 2008

$14,000,000

$12,000,000

$10,000,000

$8,000,000

$6,000,000

$4,000,000

$2,000,000

$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Source: TNS Media Intelligence

Media Spending Highest in the Spring

Reach and Frequency Goals

Marketing Factors
Frequency Range
1 Product Lifecycle Message Complexity Competition 2 3 4 5 6 7 8 9

Media Weight Moderate

Frequency: 6+ Comments Scheduling

Flighted Competitive SOV

Strategy Acquisition/Penetrati on

Effective Reach: 75%

Media Recommendations

o o o o o

:30 & :60 Spots on Cable TV Banner Ads on popular fitness websites Ads/Advertorial in health/lifestyle magazines Google keywords related to dieting Out of Home near MBT retailers

Cable TV

Online
Shape.com Self.com Active.com Fitwatch.com Shapefit.com Fitnessmagazine.com

Magazines

Google Keywords

Out of Home

Additional Tactics
Public Relations

Celebrity Spokesperson

Geography
Top 20 DMAs

Media Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Cable

Online

Print

Keywor ds OOH

Projected Media Spending

1% 3% 11%

Out of Home Cable TV Print

45%

Google Keywords Online

40%

Media Costs

Total Cost Total Impressions Average CPM Total GRPs

$24,827,908 1,102,436,400 $22.52 4,030

$25,000,0000 Budget

Questions?

Appendix

Print Spending by Title 2008

$2,500,000 $2,000,000

$1,500,000

$1,000,000

$500,000

$0

TV Spending by Program Type 2008

1% 1% 1% 2% 2% 3% 23% 3% 1%

College Basketball Situation Comedy Slice-of-Life Sportscast Variety-General

5%

5%

Drama/Adventure Other Specific EventGame Feature Film Variety-Musical

7% 22%

6%

Game Show Childrens/Family Entertainment Professional Basketball

18%

Note: Does not program types under 1% of spend Source: TNS Media Intelligence

General Sports Show (local)

TV Spending by Month 2008

$9,000,000 $8,000,000

$7,000,000

$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

$0 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08

Source: TNS Media Intelligence

Media Cost
Media Vehicles Titles Cable TV Weekend Prime Access $1,440 $4,275 *CPP Online Shape.com Self.com Fitnessmagazine.co m Active.com Fitwatch.com Shapefit.com $5 $5 $5 $5 $5 $5 205,300 422,700 632,900 2,100,000 94,400 338,100 Rate Base x 2 Pass Along 5,800,000 3,000,000 4,500,000 4,600,000 6,900,000 2,950,000 3,300,000 3,800,000 9 9 9 9 9 9 1,847,700 3,804,300 5,696,100 18,900,000 849,600 3,042,900 $9,239 $19,022 $28,481 $94,500 $4,248 $15,215 $7,853 $16,168 $24,208 $80,325 $3,611 $12,932 $145,098 Print Cosmopolitan Fitness Glamour Oprah People Self Shape US Weekly $8 $8 $8 $8 $8 $8 $8 $8 75 80 *Points per Week 26 26 *Weeks 237,627,000 253,468,800 $2,808,000 $8,892,000 $2,386,800 $7,558,200 $9,945,00 0 CPM Gross Impressions per month/per issue # of Months Ads Will Run Total Impressions Gross Cost Total Budget $25,000,0 12,186,000 00 Universe Net Cost Budget

6 6 6 6 24 6 6 24

34,800,000 18,000,000 27,000,000 27,600,000 165,600,000 17,700,000 19,800,000 91,200,000

$278,400 $144,000 $216,000 $220,800 $1,324,800 $141,600 $158,400 $729,600

$236,640 $122,400 $183,600 $187,680 $1,126,080 $120,360 $134,640 $620,160 $2,731,56 0

Google Keywords

$2

Cost per Click

12

500,000

$1,000,000

$850,000

$850,000

"A world without my MBTs would be a sad place."

I only wear my MBT's because it's the only way I can stay on my feet all day and be happy, too.
I am off to buy another pair. They are the best medical investment I have spent. These are the most comfortable shoes I have ever tried. I am buying a pair for my husband and father for Christmas this year.