INCREASING THE SALES OF WALL WORDS, INC.
INTRODUCTION
Since 1997, Wall Words has sold vinyl wall décor to businesses and individuals across
the country. Wall Words’ bestselling products are custom quotes and custom designed
decals. Customers are able to design and order their decals or quotes directly from the
company’s website. The company has been able to earn a profit for many years, but
because of the recent economic downturn and a competitive marketplace, Wall Words’
sales have dropped 30 percent between 2008 and 2010.
The purpose of this report is to provide Wall Words with a marketing plan that will
increase sales. By the time you finish reading this report you will understand why
marketing to Generation Y is Wall Words’ best opportunity to increase sales.
Additionally, you will understand why social media is the most cost effective way to
market Wall Words’ products to Gen Y.
Based on a thorough analysis of company sales, demographic data, and competitor
websites, we determined that Wall Words could most easily increase its sales by
marketing to Generation Y. We then researched the most effective methods for
marketing to Generation Y by studying academic databases, reputable business
publications, and statistical surveys. Finally, we gathered information from marketing
textbooks and marketing industry publications to provide initial plan for implementing
our proposal.
INDUSTRY ANALYSIS
According to an industry analyst firm (Home Accents today article), the wall decor
industry is expected to grow 13 percent, from $6.1 billion to $6.9 billion, from 2008 to
2013. As illustrated by Figure 1, the greatest growth will be in the South and the West
regions of the United States.
Wall Décor Growth
Figure 1: Percentage of Wall Décor Growth by 2013
Source 1: Garland-McLean, (2009)
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Competitors
Four of Wall Words’ primary competitors have lower prices than Wall Words. Table 2
shows a price comparison of the companies and their relative price per individual letter
at various sizes. Wall Words’ prices are, on average, $0.55 higher than the prices of its
competitors. We believe that this is especially detrimental to Wall Words’ sales because
budget conscious customers are likely to perform price comparisons before making a
final purchase.
Advertising in the vinyl decal industry currently targets a demographic of older women
and gardening enthusiasts. Wall Words, for example, advertises in gardening and
home décor magazines whose primary readership is composed of women over 35
years old (C. Caldwell, personal communication, March 30, 2011). Since their
advertising does not reach Gen Y, the websites of Wall Words and its competitors
receive very little traffic from 18-34 year olds (Alexa.com).
Current Market
Wall Words currently sells signs, monograms, banners, and custom wall quotes to a
diverse array of customers who use the decals in schools, churches, medical offices,
and local businesses. Since Wall Words is online and catalog based, customers can
easily and conveniently order at home. Schools and churches use Wall Words to post
slogans or inspirational messages on the walls of their institutions. Medical offices use
Wall Words to post relaxing and reassuring messages for patients to read while in an
exam or waiting rooms. Finally, businesses use Wall Words’ products to display their
company slogan or motto.
TARGETING A NEW DEMOGRAPHIC
The numerous businesses serving the wall decor market have left little room for Wall
Words to expand its customer base. In order to increase its customer base and its
revenue, Wall Words must market to a new demographic.
Generation Y: Who are they?
Generation Y is composed of people born between 1978 and 1994. A number of
factors differentiate Generation Y from previous generations:




Composed of individuals aged 18-34 years
Also known as Millenials, Gen-Y and Generation Me
$200 billion annual spending power (GenY, web design, eye tracking)
First generation to be exposed to technology from an early age (GenY, web
design, eye tracking)
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 Demands personalized attention from businesses; especially online businesses
(Djamasbi et al., 2009)
Part of Generation Y’s appeal to businesses is its spending power. Many Gen Yers are
living with their parents and staying unmarried well into their 20s, which means that
more of Gen Y’s income is discretionary (Noble et al., 2009; Passport Country Reports,
2010). As a result, Gen Y has over $200 billion in annual purchasing power (Djamasbi,
Siegel, & Tullis, 2009; Noble, Haytko, & Phillips, 2009). In fact, Kit Yarrow and Jayne
O’Donnell (2009), authors of a marketing book about Generation Y, predict that by
2017, Gen Y will have more spending power than Baby Boomers.
The opinions of Generation Y are primarily influenced by what their friends think
(Yarrow & O’Donnell, 2009; Galloway, 2010a; Edelman, 2010; Brown, 2011). For
example, some companies have found that ads featuring Generation Y individuals are
more effective than ads featuring celebrities (Yarrow & O’Donnell, 2009). Additionally,
marketing companies note that when Gen Yers purchase a brand, they are
broadcasting a life style and identifying themselves within a community (Yarrow &
O’Donnell, 2009).
An important part of the Gen Y lifestyle is a belief in the importance of self-expression
and creativity. The following three examples, and Figure 2, illustrate this:
1. Thirty-eight percent of Gen Yers have tattoos, compared to 32 percent of
Generation Xers and 15 percent of Baby Boomers. Gen Yers have more tattoos
because they place a
higher importance on selfexpression than previous
generations.
2. Generation Y is more
involved with social media
sites than previous
generations.
3. Gen Yers post more online
videos of themselves as an
outlet for creativity and
self-expression.
Figure 2: Comparisons of Generations
Source: Taylor & Keeter, (2010)
Wall Words products will appeal to Generation Y because the company allows
customers to order custom quotes in a variety of sizes, colors, and fonts.
As the first company in its industry to market directly to Generation Y, Wall Words will
be able to capitalize on the strong brand loyalty of these individuals (Tsai, 2008; Noble,
et al., 2009). One company that has already gained loyalty from marketing to Gen Y is
Axe deodorant (Yarrow & O’Donnell, 2009). This company’s website caters specifically
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to the interests of Generation Y, and as a result, the company has higher loyalty ratings
than any other brand (Yarrow & O’Donnell, 2009). The loyalty that Wall Words can gain
today will be increasingly valuable as Generation Y ages and replaces Baby Boomers
as the biggest spending demographic.
MARKETING STRATEGIES
Based on our research, we recommend the following three methods for advertising to
Generation Y. Each of these methods will appeal to at least one of Generation Y’s
demands as discussed above:
Alternative 1: Magazine Advertising
Pros
 Magazines are the most effective traditional advertising medium for targeting
Gen Y
 Wall Words has experience with magazine advertising
 Magazine ads can be customized to specifically target the interests of the
magazine’s reader
Cons
 Magazine advertising is expensive
 Magazine advertising is not as interactive as other advertising methods
Of all traditional advertising mediums, including magazines, newspaper, television, and
radio, magazines have proven the most effective at enticing Generation Y to act. By
marketing to Gen Y through magazines, Wall Words will ensure that its ads have a
strong impact on those that see them.
Data from MRI+ (2009), a media demographic research firm, indicate that Generation
Y’s top ten most read magazines are often very specific to the magazine’s target
demographic. For example, the top three magazines for Men age 22-35 are Maxim,
Sports Illustrated, and ESPN the Magazine (MRI+, 2009). Wall Words, by creating ads
tailored for the target demographic of each magazine, such as football/goal post shaped
stickers for ESPN and Sports Illustrated, will appeal to Generation Y’s need to have
products personalized to their habits.
The primary disadvantage for magazines is their cost relative to their reach. The
average cost of a one page black and white ad in Generation Y’s top 15 magazines is
over $140,000 per year (MRI+ Rate Report). The least expensive magazine, Xbox
Magazine, only costs $24,403 per year, but it has less than one-third the reach of the
most expensive magazine (MRI+ Rate Report).
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Alternative 2: Social Media
Pros
 Inexpensive
 Has the ability to reach many users daily
 Most effective method for appealing to Generation Y
Cons
 Competing with other established brands
 Older generation may have a hard time
 It will take some time for Wall Words to fully establish itself on social media sites
As the largest social networking website with 500 million active users and over 250
million users who log in daily, Facebook is a great way to reach Generation Y
(Branckaute, 2010). Businesses are beginning to advertise with their company’s
Facebook website rather than the company’s actual website (Weinberg, 2010).
Wall Words will be able to put company information, pictures, videos, and special event
details on its Facebook page. By creating a Facebook business page, Wall Words will
be able to observe and interact with people who follow them. For example, users can
personally write to us and suggest things to help our business. Also, Gen Y customers
will feel more comfortable using Facebook as a means of communication with Wall
Words. Wall Words’ Facebook business page will allow it to post specific deals only for
people who are currently following us. Also, when generating new ideas for a sticker,
Wall Words will be able to create a poll and see what kind of stickers people would want
to purchase. Finally, by creating a business account, Wall Words will be able to create a
Facebook-only advertisement which will be shown to Facebook users who have similar
interests in our product (Facebook, n.d.).
Two limiting factors will affect the usefulness of Facebook:


Facebook allows business pages to have only limited information about the
people that follow them, therefore, it is not possible to create custom ads or
promotions that are targeted at the habits of specific users.
Facebook does not allow users to search for businesses from inside Facebook.
The only way to get people to find Wall Words’ Facebook will be through some
other type of advertisement (Weinberg, T, 2010).
Like Facebook, Twitter is a social media website that has been growing in popularity.
With over 105 million users registered and 300,000 newly registered users a day,
Twitter will allow Wall Words to reach an increasing number of people each day
(“Huffpost Tech”, 2010). According to Jacob Morgan (2009), as of 2009, 39 percent of
online adults between the ages of 18-34 have used Twitter. Wall Words will be able to
use Twitter to advertise special promotions.
YouTube, a video sharing website, is a type of social media that is different from both
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Facebook and Twitter. YouTube has a broad demographic of 18-54 year old
(“YouTube”, n.d.). Wall Words will be able to use YouTube to post many types of
demonstrative videos, including: videos featuring application techniques for applying the
decals to various wall textures, videos of a step by step video tutorial which walks
customers through the entire application process of more complex decals, and monthly
video newsletters which Wall Words can use to show customers what the company
plans to release in the near future. To engage the ‘social’ aspect of YouTube and to
increase Wall Words’ subscriber base, the company should have monthly contests
challenging users to create and design vinyl sticker ideas, which they can then submit
via a video response.
Groupon is a deal-of-the-day website that is offered to locals of the city. The
demographics of Groupon users range from 18-34 year olds. Groupon is used for many
local and small businesses in our area. A business survey that Groupon released said
89 percent of customers that purchased a Groupon from their company were most likely
going to be a repeat customer. Clients are saying that using Groupon is 86 percent
more effective than print, 94 percent more effective than broadcast, and 90 percent
more effective than online advertising (“Groupon”, n.d.).
Technology is moving forward fast. The internet and social media are becoming the
norm when it comes to advertising and marketing. There are many advantages to using
social media to target our Generation Y demographic. With the internet being easily
accessible to just about everywhere, we can stay connected to our customers.
According to Scott Galloway (2010), a Clinical Associate Professor of Marketing at New
York University, word of mouth is still the most important force in shaping Generation Y.
By using social media, Wall Words will be able to increase Gen Y’s awareness of the
company and its products. Galloway’s studies have also found that 63 percent of Gen
Yers use social media to engage with brands and more than 50 percent say Facebook,
blogs, and brand videos affect their opinions about products.
Social media is important to reaching Generation Y, that total ad spending on social
media is expected to double between 2008 and 2013, increasing from $1.5 billion to $3
billion (Kozinets, Valck, Wojnicki, & Wilner, 2010). Businesses are increasing their
social media expenditures because even small amounts of social media exposure can
increase a web site's traffic. For example, a recent study found that retailers who
include on their website a link to their Facebook page generate an 80 percent higher
traffic growth over a three-month period (Galloway 2010b).
Alternative 3: University Campuses and Dormitories
Pros
 Direct contact with Generation Y
 Inexpensive marketing strategy
Cons
 Least effective marketing strategy
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Generation Y can mostly be found in Colleges and Universities. Thus, it would be a
perfect opportunity to market to Generation Y on campuses and dormitories by using
various forms of advertisements; such as flyers, brochures, and coupons. Advertising in
Gen Y’s environment will allow Wall Words to have direct contact with the demographic
in an inexpensive method.
Posting and passing out various flyers on campus would be beneficial to Wall Words
and Generation Y. It will ensure that Wall Words is marketing to the generation
specifically about the company and their product. Also, these forms of advertisements
will be inexpensive because they can be printed in-house and free to post on campus.
(Dean of Students Office, personal communication, April 21, 2011)
However, this may be the least effective method of advertising. These form of
advertisements are easy to dismiss and discard. The individual that receives the
advertisement, may just glance at the flyer and then discard it.
Advertising to Generation Y in their own environment will definitely attract their attention
to Wall Words, but it may not be enough for them to purchase any products.
CONCLUSION AND RECOMMENDATION
Wall Words’ sales have dropped almost 30 percent over the last two years. While sales
are expected to increase slightly this year, there is no indication that they will be able to
reach 2008 levels any time soon. One reason for the drop in total sales is Wall Words’
higher prices have driven budget conscious consumers towards less expensive,
potentially lower quality competitors. In order to increase Wall Words sales, the
company should market to a new demographic: Generation Y.
Of the best three methods for reaching Gen Y, Social Media marketing will provide the
greatest increase in sales with the least expense. While magazine advertisements are
very effective at enticing Gen Y to act, they lack the two communication between
business and consumer that is afforded by Social Media. Additionally, social media
allows Gen Yers to easily share and discuss company offerings, while both magazine
and University advertising is limited to face to face discussion and sharing.
Given the almost exponential growth in business involvement with social media, it is
reasonable to assume that Wall Words’ competitors will soon launch social media
campaigns of their own, thus securing the advantage of being the first mover. We
recommend that Wall Words act immediately to launch its own Facebook page and
Twitter account. These pages should be only minimally designed, and are intended
primarily to hold Wall Words’ name in reserve on the Facebook website.
Following the setup of a Twitter and Facebook page, we recommend that Wall Words
perform the following steps to begin their social media marketing campaign:
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1. Hire a part time Gen Y consultant
a. This person will be responsible for maintaing the social media ‘face’ of the
company and ensuring that the company’s social media pages are
updated frequently and conform to Gen Y’s expectations of business
marketing.
2. Launch competitions encouraging social media followers to design their own
sticker idea and post a video of them discussing the idea
a. The winners of these competitions should be rewarded with a free sticker,
as well as a small percentage of the proceeds earned from selling these
stickers to others.
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