Online Advertising Situation Analysis

SITUATION ANALYSIS

EXTERNAL ANALYSIS

Opportunities:

* Online advertising predicted to grow six times more quickly than traditional media between 2006 to 2009. Online business is now a $21.4 billion business.

* The social networking websites have huge potentials, currently there are 61% of teens and 80% of young adults are using social networking websites.

* Quite different with Web 1.0 where firms utilized the Internet as a distribution for content, Web 2.0: is a two ways communication platform, through social networks on cyber world. Web 2.0 is more interactive, participatory, and collaborative. Therefore, on social media websites, users can create their own personalized experiences on the webs and share them with others around the globe. It is a perfect channel for a new product to be spread around.

Threats:

* Consumer's media habits were rapidly changing For the first time in history, television audiences were declining, newspaper and magazines were losing readers to online content providers. As a result, a firm might spend the same amount of media budget, but won't be able to get the same Return on Advertisements as before.

* Consumers generally receive more than 5000 advertising message each day. Therefore it makes it very hard for marketers to break through, and make their products stand out. Before of the advertising messages overload, the ability for consumers to remember any ads after 24hours is very low.

* With the help of new technologies, consumers started to avoid advertising. Consumers now have the option to changing channels or fast-forwarding the TV shows or movies they want to watch, to skip the ads.

INTERNAL ANALYSIS

Strengths:

* Brand reputation: UnME jeans is already one of the most successful up-and-coming players in the junior denim market.

* UnME jeans have a very clear and positive mission statement which is to encourage their consumers to speak out against peer pressure and conformity.

* UnME Jeans already have a niche market in girls who tend to be social and taste leaders in their schools and communities.

* In the exhibit of the case, it shows that The Forrester Research Study on Social Networking sites shows that: 685 of young adults, age between 18-21, visit social networking sites once per day or more; and 28% of teens and young adults, age 12-21, showed interest in the profiles of marketers, retailer or service providers on social media websites.

Weaknesses:

* UnME jeans were available in upscale department stores and specialty retailers, and sold at a slight price premium to comparable brands. Consumers might choose other cheaper brands over UnME jeans if the design and quality is similar.

* UnME currently deliver their ads through television, magazine, radio, and popular teenage websites. No previous experience in using social network of Web 2.0.

KEY MARKETING ISSUE

The advertising buying season is approaching, Margaret Foley, the brand manager of UnME jeans had been struggling to justify the money she was spending to advertise UnME brand in traditional media. There is an increasing advertising clutter which means more competitions, and consumers now have the ability to skip or delete television ads. At the same time, although the television audiences have been declining, the prices to purchase television advertising were increasing year over years. As the result of all the above factors, Foley realized her current media plan's effectiveness is about to be reduced. Therefore, she is now reviewing three Web 2.0 options to see if there is an appropriate social media channels for UnME Jeans.

OBJECTIVES

The objectives for UnME Jeans is to maximize reach and frequency among the target market of women 12 to 24 years old and to obtain media placements that were consistent with and supported UnME, the stylish, cutting-edge, and socially conscious fashion brand. Currently, Foley and the advertising agency is trying to find the social media outlet that fit their needs: enable them to "talking with" their consumers, and where consumers would be morst receptive to UnME brand story. At the same time, the social media outlet has to seamlessly integrate with and support their existing media plan, and also stimulate their sales.

EVALUATION OF ALTERNATIVES

ALTERNATIVE 1: Bring UnMe Jeans to Zwinktopia social media outlet

Advantages:

* Zwinktopia's target market was girls from 13-24, with the focus of the site being fashion and music. Which fit the target demographic (12-24 years old) for UnME Jeans brand perfectly.

* In Zwinktopia, users can create their own avatars, and users would be invited to speak out against conformity on a public soapbox in the center of the store, and also share their avatars with other users and customers.

* Gartner Research estimated that 80% of online users (50-60 million people) would have a presence in metaverses by 2011.

* After the Zwinkies avatar been created, it can be link to other social network websites like facebook and Myspace.

Disadvantages:

* The number of virtual products on Zwinktopia is increasing, which cause an increasing competition between different brand products

* The Return on investment is