An Integrated Marketing Communications Plan. Alexis Neel Katie Shive Jessica Taylor Trevor York

An Integrated Marketing Communications Plan Alexis Neel Katie Shive Jessica Taylor Trevor York

TABLE OF CONTENTS Executive Summary Strategic Summary Chart Company Info Product Analysis 1 Secondary Research Competitive Analysis 2 SWOT Analysis 2 Target Market Analysis 3 Marketing Strategy Marketing Objectives 5 The Big Idea 5 Media & Creative Plan Mobile Application 6 Promotions 6 Social Media 7 Viral Videos 7 Media Objectives 8 Media Outlets 8 Evaluation 10 Appendices DIRECTV Package Offerings 11 Competitive Analysis Chart 12 Detailed Budget Plan 13 Return on Investment Projections 14 Creative Samples 15 References 22

EXECUTIVE SUMMARY DIRECTV s Refer a Friend program is a unique promotion offered only to current subscribers. Although this program accounts for a small portion of overall newly acquired subscribers annually, the value of every new customer is significant in relation to customer lifetime value and churn. Ultimately, DIRECTV must increase program usage amongst existing subscribers as a means to boost total company sales. This integrated marketing campaign will focus on increasing the number of subscriptions driven through the Refer-A-Friend program. This will be done by motivating and engaging current DIRECTV subscribers through the Refer a Friend mobile application and website in order to facilitate referring activity, as well as promote repeat referrals. The total campaign budget is $1,000,000 with full national reach of all 20 million current subscribers. The current subscriber base will be reached through various media platforms including: Facebook, Twitter, Instagram, YouTube, direct mail, e-mail, and text message. The campaign s big idea, My DIRECTV 100, will encourage current subscribers to refer individuals in order to receive the savings and benefits the referral program offers. Moreover, additional promotional codes will be distributed to subscribers bi-annually. The mobile app and website will facilitate referring activity and make it easy for subscribers to use the program. DIRECTV will concentrate its efforts toward its current subscribers. Within that broad customer base, Millennials (ages 20-37) will be targeted specifically due to their value seeking and tech-savvy behavior. Due to this target market s value-seeking behavior, individuals will be drawn to the savings offered by DIRECTV. Ultimately, DIRECTV s goal of increasing the number of participants in Refer a Friend program from 10% to 25% will be achieved.

STRATEGIC SUMMARY CHART Research Findings Millennials place the highest importance on getting value for their money and on having a positive purchase experience (O Donnell, 2014). Millennials are the most tech savvy generation, are the most open to trying new apps, recommending them, and even paying for them (Erwina, 2014). Corresponding Strategies Make the Refer a Friend program easy and convenient to use, thus ensuring the overall purchase experience is positive for current subscribers. Create a program-specific mobile application where current customers can refer individuals and track the number of referrals made and total discounts received. More than half of mobile app users report light usage (four hours per week or less). This suggests that the majority of apps need to provide value within short usage time windows (Harmond, 2014). 39% of Millennials aged 25-34 use as many loyalty programs as possible. More specifically, Millennial men are more likely than consumers in other segments to adjust their behavior in order to get the rewards they want (Kaiserman, 2013). Due to the economic downturn in 2008, the use of loyalty programs significantly increased as consumers looked for ways to save money on everyday household products and services (Fay, 2010). According to Billy Hulkower (2014), 24% of networkers with 200 or more friends will only follow a company if they are having a promotion or sale. 82% of homes in America currently pay for television service, and of that percentage, 43% are happy with their current service (Hulkower, 2014). Make the promotional campaign digitally integrated through the addition of a mobile app and better social media management will attract this target market. The My DTV 100 campaign emphasizes how individuals can use the money they save from using the referral program. Additional promotional codes will be distributed biannually for even more savings. The campaign should focus on the benefits the customers and referred individuals receive using the Refer a Friend program, so we will create a hashtag on all social channels that allow others to share their story. Create additional promotional codes in the amount of $10, $25, and $50 and distribute to subscribers who refer individuals to sign up with DIRECTV.

COMPANY INFO DIRECTV was founded in 1990 and began offering digital entertainment to households and businesses across the United States in 1994 (A Brief History of DIRECTV). DIRECTV quickly became the industry leader by the end 1995, boasting more than one million satisfied customers. DIRECTV disrupted the satellite television industry and continues to incorporate new innovation into its product offering. High definition technology was introduced in 2007, as well as connectivity to the Internet (About Us: Company Profile). Today, DIRECTV is one of the largest premiere digital television service providers in the United States, offering high-definition entertainment to more than 20 million households and businesses (Marketing Edge, 2014). DIRECTV s Refer-A-Friend program is a unique promotion offered only to current subscribers. Although this program accounts for only a small portion of overall new subscribers each year, the value of every new customer is significant in relation to customer lifetime value and churn (Marketing Edge, 2014). Ultimately, DIRECTV must increase program awareness amongst existing subscribers as a means to boost total sales. Product Analysis DIRECTV offers customizable packages for all types of entertainment enthusiasts ranging from babies to grandparents, movie lovers to die hard sports fanatics. Subscribers of DIRECTV can enjoy more than 285 channels, all of the latest Hollywood hits, and sports packages that no fan can deny (About Us: Our Company). DIRECTV offers six different base packages, ranging in price from $19.99-$87.99. Subscribers may enhance any package offering with additional upgrades for an extra fee. Customizability is an attractive quality to customers because they ultimately get to choose a package that fits their budget. All plans are charged monthly and require a contractual agreement. (Review Appendix A for more detailed information.) 1

SECONDARY RESERACH Competitive Analysis Competition in the market is fierce and companies are vying for market share. DIRECTV s competition comes from television service providers, such as Dish and Comcast. Secondary competition comes from online video distributors, such as Hulu and Amazon Instant Video. Currently, DIRECTV holds approximately 20% market share in the United States (DIRECTV Annual Report, 2013). Although this number is larger than other competitors, the company is still fighting to keep current subscribers, while at the same time gain new ones. Two ways the company does this by offering the more HD channels and exhaustive sports packages. Although Dish and Comcast offer lower average monthly rates, neither company has nearly close the amount of HD channels or sports packages. A competitive analysis chart is provided in Appendix B for further reference. SWOT Analysis The strengths of DIRECTV include: a large subscriber base (holding 20% of the market share in the United States), high brand recognition, strong customer satisfactions rates, substantial channel capacity, and exclusive programming content. Some weaknesses of the company include a lack of intrigue of customers for the Refer a Friend program, the requirement of an annual contract, and higher package prices over competitors, such as Dish and Comcast. If customers must sign an annual agreement, many may be turned off from using the service, especially if they are value-seekers. Opportunities for DIRECTV include higher user-involvement through subscriptions and user expectations, such as High Definition television and recording capabilities, as well a rebounding economy, which allows for more disposable income and the purchasing of luxury items, such as DIRECTV. One threat the company faces is the recent joint marketing agreement between Verizon, Comcast, Time Warner Cable, Cox, and Brighthouse Networks. This huge merger has high 2

credibility and a large customer base. As well, the television industry is dramatically being influenced by technology advancements. Some new improvements include: remote viewing, HD channels, and 3D capabilities. These rapid changes are threats to DIRECTV. Another threat the company faces is the increased cost of satellite services for all providers (DIRECTV, 2014). Finally, demand for online distributors, such as Hulu, Amazon, Roku, and Apple is increasing in popularity annually, leaving less market share for satellite service providers. Target Market Analysis According to DIRECTV, its target audience is current subscribers specifically new customers who have just come onto the platform, customers who actively participate in referral programs, customers who have positive experiences with DIRECTV, and value seekers looking for ways to save money on their bill. Based on the secondary research conducted, the findings support DIRECTV s target market. Therefore, the primary target market for this campaign will focus on Millennials who are current DIRECTV subscribers, are satisfied with their service, and ultimately seek out value when making purchase decisions. Millennials make up the largest share of the US population, accounting for approximately 25%, or 80 million people (O Donnell, 2014). This group ranges in age from 20 to 37 years old. Millennials have a significant influence on today s consumer market because they are quick to adopt new technologies. According to Ika Erwina (2014), Retail & Technology Analyst for Mintel, Millennials are the most tech savvy generation, are the most open to trying new apps, recommending them, and even paying for them. Fiona O Donnell, a Category Manager for Mintel, states that Millennials often seek out value when making purchases because their annual income-to-expenditure ratio is nearly even (O Donnell, 2014). Furthermore, Millennials place the highest importance on getting value for 3

their money and on having a positive purchase experience (O Donnell, 2014). One primary source of value comes from loyalty programs. According to Robyn Kaiserman (2013), Financial Services Analyst for Mintel, 39% of Millennials aged 25-34 use as many loyalty programs as possible. More specifically, Millennial men are more likely than consumers in other segments to adjust their behavior in order to get the rewards they want (Kaiserman, 2013). At the same time, Millennial women prefer purchasing products and services at a discount (O Donnell, 2014). Due to the economic downturn in 2008, the use of loyalty programs significantly increased as consumers looked for ways to save money on everyday household products and services ( (Fay, 2010)Fay, 2010). According to Kat Fay (2010), consumer research analyst for Mintel, many companies who created these loyalty programs found the following characteristics useful in maintaining a strong customer base: focusing on making customers even more loyal, incorporating core strategic value and not just making a transaction, focusing on the individual, enabling new technologies, and empowering employees to meet customer needs. Customer satisfaction is pivotal in retaining customer membership. If customers are unhappy with their service provider, they will seek alternatives, which results in loss of revenue for the provider. According to Billy Hulkower (2014), a Senior Technology Analyst for Mintel, 82% of homes in America currently pay for television service, and of that percentage, 43% are happy with their current service. MARKETING STRATEGY The strength of DIRECTV s marketing strategy will be based upon the premise that the program is easy to use, offers significant value to subscribers and referred individuals, and has a strong emotional appeal. 4

DIRECTV offers the Refer a Friend program to all current subscribers. For every successful referral made, the subscriber and the friend receive $100 off their bill in the form of $10 credits over a 10-month period. The value of a referred customer, as opposed to a nonreferred customer, is most beneficial for DIRECTV in the form of lifetime value and churn (Marketing Edge, 2014). Although awareness of the program is high among current subscribers, less than 10% use the program, those who do only refer once (Marketing Edge, 2014). The main objective for the My DTV 100 campaign is to increase the number of referrals through the program. DIRECTV will use the My DTV 100 campaign to encourage engagement in the Refer a Friend program by allowing subscribers to envision what they could do with the $100 they will save off their bill, which provides emotional appeal to the program. Marketing Objectives Increase the number of current subscribers participating in the referral program from 10% to 25% Increase the number of average multiple referrals to 20% Increase the overall number of DIRECTV subscribers by 25% The Big Idea The My DIRECTV 100 campaign is designed to increase the number of subscriptions driven through the Refer a Friend program by focusing on motivating existing DIRECTV subscribers to increase referral activity. This will be done in three ways: 1. Streamline Refer a Friend Program the Refer a Friend program needs to be easy and convenient to use for existing and potential subscribers. Creating a mobile application will allow current subscriber to refer friends easily. As well, the web page will be redesigned to be user-friendly, making it easier for individuals to sign up after being 5

referred. The web page will also explain the My DTV 100 campaign. The homepage of DIRECTV s main site will have a pop-up ad informing current subscribers of the Refer a Friend program, and when clicked on, will direct them to the program s web page. 2. MyDTV100Codes Discount codes will be distributed bi-annually to existing subscribers through direct mail, e-mail, text message, and the mobile application. The discount code can be easily shared with friends. The friend will enter in the discount code at time of sign-up. This will allow both the current subscriber and friend to receive a discount in addition to the current offer. 3. How will you spend your $100? A series of Internet videos will be created to show how easy it is to refer a friend, as well as the benefits of saving $100. Social media will also be used to showcase the benefits of using the referral program. MEDIA & CREATIVE PLAN Mobile Application The mobile application is strictly for the Refer a Friend program. Current subscribers can refer individuals through the delivery of a personalized email or text message. The dashboard in the app will show subscribers the number of referrals made, as well as how much has much money has been saved as a result of program participation. Information will be sent to the referred individual, directing them to the website. Lastly, there will be a social feed inside the mobile application, combining Facebook, Twitter, and Instagram posts using the #MYDTV100. Promotions Current subscribers will receive MyDTV100Codes bi-annually in addition to the current $100 discount offer. The code will be delivered through direct mail, e-mail, text message 6

and messages in the mobile application. Codes will only be available for use during a limited period of time. Upon signing up for DIRECTV service, the referred individual will be given the option to enter the provided discount code. The discount amount will be revealed at time of signup. A discount amount of $10, $25, or $50 will be will be deducted from both the subscriber and referred individual s next monthly bill. Social Media The goal of social media is to create awareness around the benefits of the program. According to Billy Hulkower (2014), 24% of networkers with 200 or more friends will only follow a company if they are having a promotion or sale. The My DTV 100 campaign allows customers to envision what they could do with $100 dollars, as well as share the benefits of the Refer a Friend program with their online contacts. Facebook and Twitter will be used to explain the My DTV 100 campaign and encourage customers to share stories of how they spent their $100 through the #MyDTV100. Instagram will showcase the Pic of the Week under the #MyDTV100, which will display photos from current subscribers. Viral Videos A video series called How will you spend your $100? will be created and posted on YouTube. A 30-something working professional male will be the main character of this series. The introductory video will show the man explaining the My DTV 100 campaign, as well as introducing the new mobile application. A new video will be posted weekly, which will show the man continually referring friends. Ultimately, this will lead to an overall improved lifestyle due to the money he is saving. This video series will show over exaggerated, yet comical situations. The videos will be distributed through all social channels. 7

Media Objectives Have 1 million subscribers download mobile application in a 12-month period Have 1 million hits on the YouTube video in a 12-month period Gain 100,000 likes on Facebook in a 12-month period Gain 10,000 new followers on Twitter in a 12-month period Gain 1,000 new followers on Instagram in a 12-month period Media Outlets Promotions The MyDTV100Codes will be distributed bi-annually through direct mail, e-mail, text message, and messages in the mobile application. This will be an additional incentive for subscribers to use the referral program. $120,000 will be allocated to promotional codes. Mobile Application According to Bryant Harmond (2014), technology analyst for Mintel, more than half of mobile app users report light usage (four hours per week or less). This suggests that the majority of apps need to provide value within short usage time windows. The mobile application offers a convenient means to quickly refer friends. $150,000 will be allocated to the creation of a mobile application. Website Referred individuals will receive a text message or e-mail from DIRECTV on behalf of the current subscriber. They will be directed to the website, which will contain relevant information necessary to sign-up. The current subscriber s account number will be included in the message to ensure the subscriber receives the bill credit. The website will also explain the My DTV 100 campaign and urge people to share their stories through social media. $50,000 will be allocated to redesign the website. 8

Social Media Facebook will be used to urge people to share their My DTV 100 stories, and to display a new videos from the How will you spend your $100? series. $50,000 will be allocated for a Social Media Marketing Manager to oversee all channels. Twitter posts will coincide will all Facebook posts. $50,000 will be allocated for a Social Media Marketing Manager to oversee all channels. Instagram will be used to post user-generated content with #MyDTV100. $50,000 will be allocated for a Social Media Marketing Manager to oversee all channels. A video series will be created and posted to DIRECTV s YouTube channel. A new video will be posted twice a month. $75,000 will be allocated to create 24 videos and maintain the YouTube account. E-mail & Text Messaging E-mails and text messages will be sent to current subscribers monthly advertising the Refer a Friend program, as well as explain the My DTV 100 campaign. Newly acquired customers will receive personalized e-mails and text-messages welcoming them to DIRECTV and sharing the benefits of using the Refer a Friend program. Lastly, e-mails and text messages will be sent to referred individuals, requesting them to sign-up. $25,000 will be allocated to this media outlet. Direct Mail According to DIRECTV, 70% of its referrals come through direct mail. The direct mailer will be redesigned to show current subscribers how to use the mobile app to refer friends. It will also have a detachable card with the necessary information to give to individuals, who can then sign up through the website. $500,000 will be allocated to redesigning direct-mail fliers. 9

EVALUATION During the campaign, the number of existing subscribers who use the referral program, as well as the number of recently joined subscribers, will be measured. Google Analytics will be used to track the number of signups through the mobile app and website. Hootsuite will be used to measure engagement on all social media channels. The number of active likes, tweets, and views, as well as the number of current subscribers, who are actively involved in sharing their My DTV 100 stories, will be measured as an indicator of campaign success. The #MyDTV100 will also be an easy indicator of social media engagement for this campaign. Post-campaign, effectiveness will be evaluated through surveys distributed to participants via e-mail, text message, and social media. The survey will measure satisfaction with the referral program itself and whether the My DTV 100 was effective in motivating them to use the referral program. 10

APPENDIX A DIRECTV Package Offerings PACKAGE OFFERINGS PRICE Select 130+ channels $19.99 FREE Genie HD DVR Upgrade FREE premiums for 3 months Entertainment 140+ channels $24.99 FREE Genie HD DVR Upgrade FREE premiums for 3 months Choice 150+ channels $29.99 2014 NFL Sunday Ticket Max FREE Genie HD DVR Upgrade FREE premiums for 3 months Xtra 205+ channels $34.99 2014 NFL Sunday Ticket Max FREE Genie HD DVR Upgrade FREE premiums for 3 months Ultimate 225+ channels $39.99 11 extra movie channels 2014 NFL Sunday Ticket Max FREE Genie HD DVR Upgrade FREE premiums for 3 months Premier 285+ channels $87.99 Everything wanted in TV entertainment 2014 NFL Sunday Ticket Max Sports to the Max FREE Genie HD DVR Upgrade All premium networks Source: DIRECTV Packages and Pricing. (n.d.). Retrieved November 21, 2014, from DIRECTV: https://www.directv.com/dtvapp/pepod/configure.jsp?acm=false&lpos=header:3#packagesection 11

APPENDIX B Competitive Analysis Chart Package Price Range Minimum Term Required Number of HD Channels Bundling Internet & Phone $19.99-87.99 $19.99-44.99 $30.15-99.99 $7.99 Pay-Per-Use YES YES NO NO NO 199 96 104 N/A N/A YES YES YES NO NO Sources: About Us. (n.d.). Retrieved November 21, 2014, from HULU: http://www.hulu.com/about DIRECTV Packages and Pricing. (n.d.). Retrieved November 21, 2014, from DIRECTV: https://www.directv.com/dtvapp/pepod/configure.jsp?acm=false&lpos=header:3#packagesection Find Your Package. (n.d.). Retrieved November 21, 2014, from Dish: http://www.dish.com/dishdeals/ XFINITY TV- Comcast Digital Television Service. (n.d.). Retrieved November 21, 2014, from XFINITY: http://www.comcast.com/corporate/learn/digitalcable/digitalcable.html 12

Media Allocation: $850,000 Promotional Allocation: $120,000 Contingency Allocation: $30,000 Total Budget: $1,000,000 APPENDIX C Detailed Budget Plan Campaign Period: January 1-December 31, 2015 Media $ Amount Percent Mobile Application- $150,000 15% Website Re-Design- $50,000 5% MyDTV100Codes - $120,000 12% Social Media Manager - $50,000 Facebook Twitter Instagram YouTube 5% Video Production (24 Videos) - $75,000 7.5% Email & Text Message Platform- $25,000 2.5% Direct Mail- $500,000 50% Contingency Plan- $30,000 3% Total- $1,000,000 100% Sources: How Much Should I Budget for a Website Redesign? (n.d.). Retrieved November 21, 2014, from Rocket Media: http://rocketmedia.com/blog/article/setting-budget-for-a-websiteredesign#.vhauslbr8b5 Mobile Forms and Applications Blog. (n.d.). Retrieved November 21, 2014, from Formotus: http://www.formotus.com/14018/blog-mobility/figuring-the-costs-of-custom-mobilebusiness-app-development 13

Proje APPENDIX D Return on Investment Projections Return on Investment Total Customers Marketed To: 20,000,000 Total Program Projected Costs: $970,000 Cost per Impression: $0.05 Projected Response Rate: 25% Projected Conversion Rate: 15% Average Customer Spending: $420 Respondents: 3,000,000 Cost per Response: $.17 Total Revenue: $120,000,000 Return on Investment: 212% 14

REFERENCES About Us: Company Profile. (n.d.). Retrieved October 3, 2014, from http://www.directv.com/dtvapp/content/about_us/company_profile A Brief History of DIRECTV. (2006, January 26). Retrieved October 3, 2014, from http://ezinearticles.com/?a-brief-history-of-directv&id=134763 Build Your Perfect Entertainment Package. (n.d.). Retrieved October 3, 2014, from https://www.directv.com/dtvapp/pepod/configure.jsp#package-section Comcast. (n.d.). Retrieved October 3, 2014, from http://www.comcast.com/corporate/learn/bundles/bundles.html DIRECTV. (2013). Annual report 2013. Retrieved from http://investor.directv.com/files/doc_financials/annual/directv%202013%20annual% 20Report.pdf Erwina, I. (2014). Mobile Apps - US - September 2013 - Infographic Overview. Infographic, Mintel. Experience TV Like A King. (n.d.). Retrieved October 3, 2014, from http://bit.ly/1vybv4f Fay, K. (2010, January). Customer Satisfaction and Loyalty Programs - US - January 2010. Retrieved November 21, 2014, from Mintel : http://0academic.mintel.com.innopac.library.unr.edu/display/482442/ Harland, B. (2014, October). Mobile Apps - US - October 2014. Retrieved November 21, 2014, from Mintel: http://0-academic.mintel.com.innopac.library.unr.edu/display/679805/ Hulkower, B. (2014, October). Pay TV and Home Communication Services - US - October 2014. Retrieved November 21, 2014, from Mintel: http://0academic.mintel.com.innopac.library.unr.edu/display/679803/ Kaiserman, R. (2014, March 31). Attract Millennials with Loyalty Programs. Retrieved November 21, 2014, from Mintel: http://0academic.mintel.com.innopac.library.unr.edu/display/700133/ Marketing Edge (2014). 2014-2015 Collegiate Echo Marketing Challenge. O'Donnell, F. (2014, February). Marketing to Millennials - US - February 2014. Retrieved November 21, 2014, from Mintel: http://0academic.mintel.com.innopac.library.unr.edu/display/680599/?highligh 15