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Decide on Casper's new communications budget (which was $ 30000 at launch (p 7). What should its budget be when it wants to target the
Decide on Casper's new communications budget (which was $ 30000 at launch (p 7).
What should its budget be when it wants to target the much bigger mainstream consumer outside the metropolitan areas?
How many impressions will it generate?
Using the ad to sales ratio from The Core Curriculum readings how will you attribute the total sales growth from TV?
Perform similar comparisons for other media or a combination of them
Pgs. 7 & 11 provide CPM for outdoor call my podcast and radio.
Which has higher impact on sales growth and ROMI? Justify.
Future Communications Strategy As the summer of 2015 drew to a close, the founding team and Casper's communications specialists (Kaplan and Rockovich) gathered to map out communications strategy for the future. What message, what tonality, what media were best for the next stage? The 15 months since the product launch in April 2014 had featured a total of 678 press mentions. Sales had reached a $100 million annual rate in June 2015 and continued to trend up. Most important, according to Krim, was that "Our NPS scores are off-the-charts." "NPS stood for Net Promoter Score, a metric used by many companies to assess customer satisfaction. NPS was determined from a survey in which customers rated their overall experience with the company on a 1-10 scale. The NPS score was the "% rating 9 or 10" minus the "% rating 1 to 6." The "9/10s" were generally considered likely to be advocates for the brand, a source of positive word-of-mouth, and "1/6s" likely detractors. Parikh commented: This is all great. The people who know us and have interacted with us love us. But the fact of the matter is that most people in the country have never heard of us. Our media choices have all worked well, but they have been pretty niche - podcasts and celeb radio. And all the New York subway riders certainly know us, but stop somebody in Chicago and ask them, 'what mattress companies do you know?' They'll say, 'Simmons, Sealy, Serta, and ... and then what? Not us. We want to get to scale. I know everybody in the start-up world says television advertising is a waste - if you are any good, you can drive organic growth. But, how do we get to scale with more podcast advertising? Television can get us awareness, and that's the first step. Table 2 below shows an estimate of the allocation of advertising dollars by media for the U.S. market for 2015 and Casper's spending allocation from April 2014 to August 2015. Table 2 Advertising Budget Allocation by Media Type U.S. Market Overall Advertising Spending Casper 2015 4/2014 - 8/2015 Television 36% 0% Internet 28% 55% Newspaper 11% 1% Radio 10% 25% Magazine 10% 1% Outdoor and Cinema 5% 18% Source: Advertising Age Marketing Fact Book, 2016 ed., p. 16, and company estimates. a Includes podcasts. While some of Casper's radio endorsements had been large contractual commitments, it had generally used relatively "low-cost" media, according to the common cost-per-thousand (abbreviated as CPM for cost-per-mille) metric. The CPM for radio was generally about $10 for a 30-second radio spot. Given its celebrity endorsers, Casper was slightly higher - about $12 CPM. A typical 30-second podcast CPM was $20 CPM. Outdoor ads had a cost of about $3 per thousand impressions. Casper's estimated impression CPM for subway / taxi tops and billboards in New York City was somewhat less due to strategic media buying taking advantage of "remainder" deals. Future Communications Strategy As the summer of 2015 drew to a close, the founding team and Casper's communications specialists (Kaplan and Rockovich) gathered to map out communications strategy for the future. What message, what tonality, what media were best for the next stage? The 15 months since the product launch in April 2014 had featured a total of 678 press mentions. Sales had reached a $100 million annual rate in June 2015 and continued to trend up. Most important, according to Krim, was that "Our NPS scores are off-the-charts." "NPS stood for Net Promoter Score, a metric used by many companies to assess customer satisfaction. NPS was determined from a survey in which customers rated their overall experience with the company on a 1-10 scale. The NPS score was the "% rating 9 or 10" minus the "% rating 1 to 6." The "9/10s" were generally considered likely to be advocates for the brand, a source of positive word-of-mouth, and "1/6s" likely detractors. Parikh commented: This is all great. The people who know us and have interacted with us love us. But the fact of the matter is that most people in the country have never heard of us. Our media choices have all worked well, but they have been pretty niche - podcasts and celeb radio. And all the New York subway riders certainly know us, but stop somebody in Chicago and ask them, 'what mattress companies do you know?' They'll say, 'Simmons, Sealy, Serta, and ... and then what? Not us. We want to get to scale. I know everybody in the start-up world says television advertising is a waste - if you are any good, you can drive organic growth. But, how do we get to scale with more podcast advertising? Television can get us awareness, and that's the first step. Table 2 below shows an estimate of the allocation of advertising dollars by media for the U.S. market for 2015 and Casper's spending allocation from April 2014 to August 2015. Table 2 Advertising Budget Allocation by Media Type U.S. Market Overall Advertising Spending Casper 2015 4/2014 - 8/2015 Television 36% 0% Internet 28% 55% Newspaper 11% 1% Radio 10% 25% Magazine 10% 1% Outdoor and Cinema 5% 18% Source: Advertising Age Marketing Fact Book, 2016 ed., p. 16, and company estimates. a Includes podcasts. While some of Casper's radio endorsements had been large contractual commitments, it had generally used relatively "low-cost" media, according to the common cost-per-thousand (abbreviated as CPM for cost-per-mille) metric. The CPM for radio was generally about $10 for a 30-second radio spot. Given its celebrity endorsers, Casper was slightly higher - about $12 CPM. A typical 30-second podcast CPM was $20 CPM. Outdoor ads had a cost of about $3 per thousand impressions. Casper's estimated impression CPM for subway / taxi tops and billboards in New York City was somewhat less due to strategic media buying taking advantage of "remainder" dealsStep by Step Solution
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