Posted: December 17th, 2014

Newspaper Market Analysis Assignment-Kohl’s Department Stores;

Newspaper Market Analysis Assignment-Kohl’s Department Stores;

MEDIA MATH
Absolute cost is Actual cost.
Relative cost is used for comparison.

Relative cost measures:
CPM is cost per thousand, used for print.
CPP is cost per point, refers to ratings points and is used for broadcast.

Formula: CPM=CPI/CIRCULATION x 1,000

Cost per thousand equals cost per insertion divided by circulation times one thousand.
Cost per insertion is the cost for one ad.
Example of CPM:
Newspaper A:
$5,000 CPI
100,000 circulation
Newspaper B:
$3750   CPI
80,000 circulation

A: 5,000 x 1,000 = $50
100,000
Divide 5000 by 100,000 then multiply by 1000 equals $50
B: 3750 x 1,000= $46.90
80,000

Divide 3750 by 80,000 times by 1000 equals $46.90 and that is the better deal.

TCPM is Targeted CPM:

You need to adjust the circulation number by the percent of the target who are readers. Everything else in the formula stays the same.

Magazine A.
Circulation = 270,000
CPI =$ 9,000
Target= 50% of readers
CPM= $9,000 x 1,000 = $33.33
270,000
Divide 9000 by 270,000 times by 1000 to get $33.33 which is the CPM

TCPM=  9,000 x 1,000 = $66.67
50%(270,000)

First, adjust circulation number to reflect target readers:
270,000 times 50%= 135,000

To find TCPM, divide 9000 by 135,000 then times by 1000 equals $66.67 TCPM

TOTAL # OF IMPRESSIONS is:

CIRCULATION x FREQUENCY
Example:
270,000 x 5 = 1,350,000 million
285,000 x 5 = 1,425,000 million
+ 2,755,000 million = total # of impressions
BROADCAST
Rating points are percentages that are expressed as a whole number- i.e. a rating of 4 means 4% of total TV Households (TV HHs) in DMA
TVHHs represents total TV households in the DMA.
Frequency is number of times commercial runs.
GRPs are gross rating points.

CPP= CPI/rating
Cost per point equals cost per insertion divided by the rating
Example:  Oprah has a rating of 4 and a CPI of $10,000
$10,000/4= $2,500 CPP
Divide 10,000 by 4 = $2500 cost per point
Total cost= frequency times CPI
Example: You will run the commercial 3 times on Oprah
3 times $10,000 equals $30,000 total cost for Oprah
You must also add up all Total Costs of the 3 programs listed in the chart below to get  total cost for entire buy.
GRPs is gross ratings points and equals ratings times frequency.
Example: Oprah has a rating of 4, so multiply that times the frequency of 3 that you were given in chart, and you buy 12 GRPs on Oprah.
Add 12 plus 32 plus 21 to get 65 total GRP’s for entire buy.

PROGRAM    RATING     FREQ.    GRP’s    CPP    CPI    Total Cost
Oprah    4           3                    12    $2,500    $10,000    $30,000
Jeopardy    8    4    32    $2,000    $16,000    $64,000
Wheel of Fortune    7    3    21    $3,000    $21,000    $63,000

To find total households watching a program and share:
Example
BOSTON DMA has 1,000,000 total TVHH’s
HUTS means HOUSEHOLDS USING TV SETS and in the Boston DMA is  500,000 TV HHs at 4 pm.

How many households are watching each program?
You multiply total TVHHs in DMA by the rating.
BUT the rating must be converted to its decimal equivalent first.
Example:
Oprah has a rating of 4, so you multiply 1,000,000 by .04 to get 40,000 TVHHs watching Oprah
Jeopardy has a rating of 8, so you multiply 1,000,000 by .08 to get 80,000 TV HHs watching Jeopardy.
Wheel of Fortune has a rating of 7, so you multiply  1,000,000 by .07 to get 70,000 TV HHs watching Wheel of Fortune.

HUTS    TVHH’s    SHARE= TVHH / HUTS
OPRAH    40,000    40,000/500,000 = .08×100 = 8
JEOPARDY    80,000    80,000/500,000 = .16×100 =16
WHEEL of FORTUNE    70,000    70,000/500,000 = .14×100= 14

To figure out share, you use the HUT level instead of total TV HHs.

You also need to use the TV HHs watching program number that you figured out first.

Example:
There are 40,000 TV HHs watching Oprah, so you divide 40,000 by 500,000 which equals  .08 .
You must convert that answer to a percent, so multiply .08 by 100 and you get a share of 8.

Remember, rating is a percent of total TV Households in the DMA.
Share is a percent of TV households using the HUT level.

YOU MUST USE THIS SPREADSHEET FORMAT FOR YOUR NEWSPAPER ASSIGNMENT FOR KOHL’S DEPARTMENT STORES
Winter 2015 Newspaper Market Analysis Assignment

Market    Newspaper    Sun. Circ.    Open rate    BDI    CDI    CPI (Cost Per Insertion)    Freq.    CPM    Impressions    Cost

Providence RI    Providence Journal    111,404    $360.60     119    143    45,436    3    $407.85    334,212.00    $136,306.80
Boston MA    Boston Globe    382,452    $685.00     125    165    $86,310.00         $225.68
Hartford CT    Hartford Courant    222,940    $430.00     100    116    $54,180.00
Stamford CT    Stamford Advocate    33,732    $78     100    100
Portland, ME    Portalnd Press Herald    100,454    $125     90    98
Manchester NH    NH Union Leader    68,499    $55.80     108    113
Albany NY    Times Union    143,261    $312.20     103    104
Buffalo NY    Buffalo News    255,369    $370.02     102    122
Syracuse NY    Post-Standard    157,799    $253.45     143    105
New York NY    New York Times    1,233,174    $1,340.00     138    167
Newark NJ    Newark Star Ledger    404,903    $740.08     159    121
Burlington, VT    Burlington Free Press    31,904    $90.00     101    130

CPI = Cost Per Insertion, which is Cost For One Ad                            Total Impressions    $334,212.00
Impressions = Circulation X Frequency                            Total Costs    $136,306.80
Budget Limit:    $1,000,000.00
Budget Remaining    $863,693.20

Newspaper Market Analysis Assignment-Kohl’s Department Stores
CE Class, Wednesday 6-9:30
ADVC1011

Your client is Kohl’s department store, and you will be tasked with developing a newspaper media buy to present to the new product development team. Before we can even think about where we want to run our newspaper ads (in the North East Region only) we must first get to know Kohl’s as a company, and get to know the Kohl’s customer. This can be achieved by accessing MRI+ and other JWU library databases located on my Lib Guide. I have also posted a background document on Kohl’s for your reference.

Your first task for your newspaper media buy is to study the context and makeup of the Kohl’s Department store network, which includes the number and geographic locations of the stores in the Northeast Region.  Information should also be gathered about the Kohl’s consumers who live in the Northeast region, and who reads the specific newspapers in this region. A list of all the newspapers is included in this summary.

The New Product Development team that is launching a new private label jean for Kohl’s has asked the Media Planning team (that’s you!) to start thinking about a newspaper print campaign to generate awareness about the new private label jean line, offered exclusively at Kohl’s, in a limited launch with the Northeast Region.

You or your team will accomplish this in part by utilizing Sunday newspaper full page advertisements. Your job is to decide, based on a variety of factors (including Kohl’s store locations), in which newspapers to buy ad space. You will complete a spreadsheet of your recommendations for the New Product Development team and include a rationale as to why your newspaper selections optimize the media budget, which is set at $1,000,000.

Also, one recommended traffic-driving sales promotion is required to drive customers into Kohl’s stores to see the new jean line. But, since the New Product Development team hasn’t named the jean yet, or determined which customer segments they will design jeans for (men vs women, teens vs children) you have to recommend a sales promotion that would work well for all of these potential jean customer segments. You can’t use “Kohl’s Cash”, as that is already a regular part of their sales promotion strategy.

Since the jean launch would most likely happen in the Spring/Fall, the tentative time frame to place newspaper ads would be August 1 – October 1, 2015. While you are developing your traffic-driving promotion to get people into Kohl’s for these new jean lines, consider carefully your target audience, what other department store competition is doing, using any digital or social media to integrate with your newspaper print promotion idea.  Also, make sure your traffic-driving sales promotion idea is original, and is not something that is common practice in retail like BOGO, or coupon discounts, really try to be unique and creative for Kohl’s and make them stand out as they launch this new line of private label jeans.

The following specifications are required for your newspaper print buy written assignment
1.    Background on Kohl’s
2.    Newspaper media plan objectives
3.    Newspaper media plan strategies
4.    Target audience for the Kohl’s shopper
5.    Summary of what newspapers, what markets, total costs, total impressions
6.    Include detailed spreadsheet
Other important details for this Newspaper buy:

You are only buying a FPBW ad (Full Page, Black & White Ad) in Sunday papers for Kohl’s
(We can assume that all of these newspapers have a digital version, and for the purpose of this assignment, I only want you to focus on the print versions.)
Budget: $1,000,000
You decide which Sundays you want to run ads, August 1 – October 1, 2015, but keep in mind the New Product Development team may need to change this after you present your recommendations. For now provide your rationale as to why you chose the Sunday papers and the dates of the Sundays during that time frame.
Maximum frequency of 4 ads in a recommended newspaper-in other words, you can’t put your eggs all in one basket. You need to look at where Kohl’s has stores, and determine the best way to advertise in the Newspapers in the Northeast region.
BDI/CDI consideration for the markets outlined on the spreadsheet

The Northeast/Mid-Atlantic cities (and the newspapers that serve them) that you can choose are as follows:

1.    Providence, RI                Providence Journal
2.    Boston, MA                Boston Globe
3.    Hartford, CT                Hartford Courant
4.    Stamford, CT                Stamford Advocate
5.    Portland, ME                Portland Press Herald
6.    Manchester, NH            New Hampshire Union Leader
7.    Albany, NY                Times Union
8.    Buffalo, NY                Buffalo News
9.    Syracuse, NY                Post-Standard
10.    New York, NY                 New York Times
11.    Newark, NJ                Newark Star Ledger
12.    Burlington, VT                Burlington Free Press

Please refer to the attached spreadsheet for relevant data about each newspaper that you must use in your decision-making process for Kohl’s department store.

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