I. BACKGROUNDGeorge Miller and Louis Metzger are not your average entrepreneurs. For starters, they’re both nineteen years old and are just completing their freshman year at the University of Southern California and the University of California, Santa Barbara respectively.
Yet, like most successful businessmen, the two saw a problem and decided it was time for a solution. The problem: wedgies, chaffing and swamp @$%, the solution: Hold Ups— a revolutionary custom brief that has the potential to solve all their problems. Sitting in class, plagued with “a recurring discomfort,” Miller says “It escalated to the point where underwear irritation actually impaired my learning.” And so began the long process of perfecting the brief. Miller reached out to a close friend who happened to have experience with a clothing line of his own and the two set out on their journey toward comfort and practicality. The young start-up founders took their biggest concerns and maximized efficiency. Featuring a tight-to-body side pocket perfect for a phone when working out, Hold Ups let men like themselves forget about tucking their phones into their waistband. The fabric wicks moisture away from the body, so they can focus on their workout with no distractions or discomfort. Hold Ups combine the best elements of briefs across the nation and add their own addition to the world of underwear with the universal pocket. The waistband is made from the softest woven elastic, and the briefs themselves are made from a revolutionary organic fiber called Lyocell©. Not only is Lyocell extremely sustainable and all-natural unlike synthetic materials like polyester and nylon, but it has the softest feel of any fabric and is made using 100% recycled solvent. After they established the idea and the business plan, the young start-up founders took matters into their own hands and ventured illegally, with forged invoices, into the fashion district of Los Angeles to explore more than ten floors of endless rooms of suppliers to hand pick the best manufacturers. Among many, the eighteen year olds narrowed down the most reliable fabric printer, fabric weaver, sewing contractor, waistband manufacturer, label manufacture, fabric washers to preshrink and more from all different places so that they could guarantee a quality affordable product. Already, in the first 11 hours the project was live, the company was able to meet 10% of their goal and site viewings are at a record high of 17% compared to the nationwide average of 1-13%. The last step the project needs to complete is raising enough money through Kickstarter, an online crowd funding website, to officially launch their first line. |
II.
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The primary goal of Hold Ups Briefs is to create, market and sell a high quality and affordable product. While implementing the use of sustainable materials, the company strives to produce a hybrid brief with unique features to maximize comfort and utility. Hold Ups produces original video footage and runs several social media campaigns to gain backers in order to produce the first mass order and eventually turn a profit. The ultimate goal of the company is to gain enough prestige to be in a position to be bought out by a larger company.
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III. State-ment of Problem |
The Hold Ups company is brand new and is trying to raise enough money through backers to kick start the program and get their orders under way to start turning a profit. However, unlike most start ups, the company does not currently have any substantial investors or large baseline funds to cover the early stages of production. In addition to this setback, the company is run by two freshmen in college who lack the professional business experience and training that similar competitors might have. The founders' youth might also come across as unprofessional, which could make potential backers reluctant to support the company.
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IV. Communications GoalsOverall Goal: Promote the brand image in order to sustain the company and maximize sales.
A. Convince potential investors and backers that the product and management of the company is worth supporting and that it will do well on the market. -The company needs as much financial support as it can get, so potential backers need to have faith in the brand and feel comfortable investing their money. The more professional the company looks to the public, the more backers the company will secure. B. Influence consumers to consider the purchase of Hold Ups. -Because there other similar and cheaper underwear companies, Hold Ups must differentiate their product. The unique design that features a pocket sets the company apart, so it is important to stress the utility of the pocket in order to make the product seem revolutionary and most importantly desirable. The high quality and soft feel should be stressed as well, but will be harder to convey without the customer seeing the product in person. C. Promote the brand image with the purpose of reaching a wide range of potential customers and gaining media attention -Different audiences will value different aspects of the company, so it is important to communicate differently to different potential customers, investors and media outlets. Businessmen will want to see that the company is professional, organized and reliable. Customers will want to know what makes the briefs so special. Media outlets will want to hear about the unique story of young entrepreneurs. |
V. Research |
A. Research Goals
2. To identify the best methods to raise money -The company cannot begin selling their product without start up funding, so it is important to first identify the best fund raising methods to get the company up and running before it can turn a profit. 3. To assess audience attitudes and perceptions -To communicate and advertise most effectively, it is important to understand how potential investors and customers feel about the product and the campaign. Understanding how these groups of people feel will help to maximize the efficiency of everything from the design of the product to media methods to deciding which channels to utilize for communication. 4. To identify key issues/trends affecting the situation -Understanding the real surrounding the company, such as other similar companies' success or the timing of the launch of the product will help organize the rest of the campaign. Without understanding external factors, the company's internal efforts will not be as effective. B. Research Methodology 1. Primary a. qualitative -interview other young entrepreneurs about their fundraising and production methods -interview people who backed other similar start ups to see what they look for in a business to invest in -conduct a focus group on several college campuses esp. in the greek community to see how effective the videos and articles are and also to test product reception -conduct a focus group on college campuses with women and bring a prototype to see how they would react to a women's line b. quantitative -issue a survey at different gyms (one downtown LA-golds at fig at 7th, one at a country club in a neighborhood, one on a college campus) asking if they tuck their phone into their underwear band or purposely avoid shorts without pockets to work out in -issue a survey to the backers to inquire about how they found out about the project and what made them want to invest c. online monitoring -monitor the trends in backing money for the kickstart : 6 days the project was live, the company was able to raise $10,000 of their $27,000 goal, first 11 hours: 10% of the goal, but it has been slowing down since then -monitor the Facebook ads and Facebook page: Average clock through rate (see it verse click, average is 4%) 1-13%, currently at 17% -monitor the views of the website -monitor the views on the youtube video -monitor the followers and likes on the instagram account -monitor google searches of ages 12-30 on underwear -monitor similar ongoing campaigns on kickstarter and see how their methods pay off 2. Secondary -research previous companies to succeed using kickstart to view their advertising methods and tactics -research where underwear ads do most successfully- bill boards, social media websites, google ads, ads on shopping websites, magazines, promo articles in newspapers and magazines, etc. -research how similar companies gained backers—possibly use other methods besides kickstarter -research how similar companies ran their advertising and social media |
VI. Situation Analysis |
A. strengths- college environment, good story-eighteen year old entrepreneurs, good connections
B. weaknesses- lack of funding, brand new-young so less authority and clout, no big brand-can’t get into certain warehouses, lack of organization due to experience, unreliable because of small middle men situation C. opportunities- los angeles, publicity because of young entrepreneurs, media attention-digital age, surrounded by social media, sexualizing the product, unique design D. threats- inability to gain funding, other boxer companies, lack of reputation/prestige-large companies might not want to promote E. conclusion: after looking at the SWOT, what conclusions and insights do you have that will affect the design of the overall campaign 1. The messages need to highlight the fact that the two are eighteen years old in order to gain publicity with a good story about teenage entrepreneurs, but also make it clear that the company is organized and reliable. It must seem like the two are “go-getters” and self sufficient in that they go out and accomplish business goals for themselves instead of using handouts. 2. The product will do well in the college environment if the PR campaign sexualizes the product. It is necessary to differentiate the product from other regular underwear brands to make it seem worth the increased price. 3. To make the company seem more respectable and distance it from the “young entrepreneur” stereotype, it is necessary to be aware of the target audience for business and the target audience for advertisements. |
VII. ObjectivesA. By May 27th, raise $27,000 in order to complete the first mass order of about 3,000 Hold Ups.
-In order to ship all existing orders out by August and have excess product to sell at the beginning of the fall semester, the order must be placed by the beginning to middle of June. B. Within the first quarter of the campaign (May-July), increase click through rate on Facebook ads and website by 6%. -While the online readership is currently above average, the more recognition the product can get, the easier it will be to sell out of the first shipment when the product is finally available for public purchase. C. Sell out of the available product by October to use the revenue for the next order. -If the product sells out by October, it will be easier to order another mass shipment to sell before the end of the first semester and then have enough revenue to launch a new line in early January, 2016. D. Raise enough awareness to complete the next order and begin a regular cycle in order to turn a profit by 2016. -If the social media and news campaigns are successful enough to make the product well known outside of local southern California, the company can expand quickly and launch new lines. The quicker the company turns a product, the quicker and easier it will be to expand and take the company to the next level. |
VIII. Key Audiences |
A. College Males —specifically California and America, these are potential customers with a specific target for advertising: sexualize the product, promote on social media, TFM and Buzzfeed
B. Athletic Males/Gym Rats (ages 12-30)—these are potential customers, with a specific target for advertising: highlight the athletic utility of the pocket, promote on social media, in men’s health and in newspapers/magazines C. Men and Women ages 23-50—these are the potential backers and investors. To appeal to this group it is necessary to uphold a professional, organized image that will allow them to have confidence in the brand. D. Other Underwear Companies in the same market, someone who believes in the company and wants to expand the company with previous connections in the industry—These are the potential companies that might consider buying out the business. To appeal to this group, it is necessary to present the company as professional, profitable and organized and to highlight the growth potential. E. Opinion Leaders and influencers—esp. social media gurus who will promote the brand and online magazines with the potential to do a feature on the product F. Social Media accounts with the potential to support and promote the brand—ex: Australian start up mag, cool inventions, buzzed, etc. |
IX. Key Messages |
A. College Males
1. Hold Ups are unlike any underwear you have ever owned. 2. Hold Ups are trendy, sexy and cool. 3. The pocket is convenient and will make your life easier. B. Athletic Males/ Gym Rats 1. Hold Ups are the perfect underwear to work out in. 2. Hold Ups will increase your performance. C. Men and Women ages 23-50 1. Hold Ups is a smart investment. 2. Hold Ups is a well organized and reliable company. 3. The product will be very popular. D. Potential buy-out 1. Hold Ups are unlike anything else on the market. 2. Hold Ups have the growth potential to become the next big thing. E.Opinion Leaders 1. Hold Ups are unique and high quality 2. Hold Ups are trending, sexy and fashionable. F. Social Media Outlets 1. The Hold Ups company has a unique story worth sharing. 2. Hold Ups are trending, high quality and convenient. |
X. Strategies |
A. Tactical:
1. Implement a large scale media campaign. 2. Implement a grassroots campaign. 3. Organize a series of special events. B. Thematic: 1. Emphasize different aspects of the product to appeal to different key audiences. 2. Highlight the unique design and high quality of the product. C. Tonality 1. Frame the product to appeal to the different key audiences. 2. Highlight specific elements of the product on different media channels. |
XI. Tactics |
A. Revamp and update Hold Ups presence on social media and partner with other accounts with large social media recognition.
1. Instagram: -Run an instagram contest. Get followers to post pictures in Hold Ups with the hashtag #holdupsbriefs for a chance to win a give away and shout out. -Partner with insta-famous accounts to get them to expose Hold Ups to their followers (@jayalvarrez, @codysimpson, @scotteastwood, etc.) -Contract different brand ambassadors by posting a link on instagram, offering free products in exchange for promotions to utilize their follower base. 2. Twitter -Run a twitter contest by tweeting a picture in Hold Ups with a clever comment with the hashtag #holdupsbriefs for the chance to win briefs. -Partner with twitter-famous accounts to get them to expose Hold Ups to their followers -Contract different brand ambassadors by posting a tweet, offering free products in exchange for reaching their follower base. 3. Facebook -Run a new Facebook campaign with an updated photo shoot and new video. -Get friends to promote and share the pictures. 4. Create a seasonal feature on the website where fans can put their face on one of the underwear models then make the photos shareable via Facebook, twitter and instagram with the Hold Ups brand watermark. B. Contract ambassadors to represent the company at different universities across the country. 1. Organize on-campus booths with samples and advertisements to demonstrate the quality. 2. Set up on-campus pop up shops. 3. Offer discounts through the representatives and their organizations—clubs, fraternities, etc. C. Offer money to a fraternity to throw a launch party in support of the company. Make it a requirement for entry to like the Facebook page. Have members of the house wear the product and have a pop up shop at the party payable by venmo (a popular mobile app to transfer money.) D. Run articles in different newspapers, magazines and other online news sources. 1. Run an article in Men’s Health highlighting the utility of the pocket for working out. 2. Run an article on TFM sexualizing the product and making it appear trendy. 3. Run an article in the business section of the LA times highlighting the journey and hard work of the two eighteen year old entrepreneurs. E. Get George and Louis, the co-founders, on local news stations. 1. On USC Trojan Vision, highlight the unique design and utility of the pocket for athletics and intimacy. 2. On local LA stations, highlight the high quality, unique design, organization of the company and “boot straps” story of the two eighteen year old entrepreneurs. F. Use local connections to partner with, expand and back the brand. 1. Utilize Patrick Shwarzenegger to expand the presence at USC, on social media and nationally. |
XII. Evaluation |
A. Evaluation of fundraising- Did the company achieve the goal?
(By May 27th, raise $27,000 in order to complete the first mass order of about 3,000 Hold Ups in order to ship all existing orders out by August.) B. Gross Readership- Did the company increase their gross readership by the desired amount? (Within the first quarter of the campaign (May-July), increase clock through rate on Facebook ads and website by 6%.) C. Sales- Did the company meet their sales quotas? (Sell out of the available product by October to use the revenue for the next order.) (Raise enough awareness to complete the next order and begin a regular cycle in order to turn a profit by 2016.) D. Message Content- Did the company reach the correct audiences? -Break down which groups were reached most effectively. (Gain enough support to launch a new line by January, 2016.) E. Post Research -Conduct focus groups made up of different members from each of the key audiences including college males, high school males, young adult males, business men/women, representatives from other underwear companies and opinion leaders. Ask questions about how they were impacted by the campaign, how they view the brand as a result and ask if they have any suggestions for improving the campaign or the brand. |