By: Abby Roderique,
Abby Rowland, and
Nancy Oconnell
THE MARTIN AGENCY
TO FRUIT OF THE
LOOM
Positions within Martin Agency
Abby Rowland
Account Supervisor
The Account Supervisor provides strategic recommendations and manages all agency
resources to ensure the client's marketing needs are met. She is responsible for developing
creative advertising strategies for clients, as well as maintaining budgets for the work
Martin Agency provides.
Nancy O’Connell
Group Account Director
The Group Account Director manages various accounts by overseeing the pitch and then
negotiating, staffing, and running the account. This position is also responsible for
leadership and overall management of the relationship with the client on one large or
multiple accounts. She is also responsible for driving long-term business and building and
overseeing account team management.
Abby Roderique
Director of Business Development
This positions looks to connect marketing leaders with our unique services to help build
brands that consumers will engage with and talk about. She is responsible for building up a
business by contacting prospective clients and acquiring new accounts.
Objective
Fruit of the Loom is conducting an advertising agency review and considering switching
agencies from the Richards group. We, The Martin Agency, would like to be selected. Fruit of
the Loom has indicated some unhappiness with their female shoppers. They are looking to
gain a “fresh perspective on how to market their brands and strengthen consumer
engagement” (McMains). If selected, the Martin Agency intends to significantly increase
purchases from the female shopper demographic as well as continue to improve Fruit of the
Loom’s overall image.
Customer Profile
Name: Fruit of the Loom
Address of Company: 1 Fruit of the Loom Dr.
Bowling Green, KY 42103
Type of Business: Retail clothing manufacturer/Lingerie
Buyer Positions: SVP of Brand Communications
Director of Advertising
Sales and Marketing Manager
Competitive Analysis
Competitors
1) The Richards Group
2) Mullen
3) Deutch
Competitor Summaries
THE RICHARDS GROUP
Richards Group is based in Dallas and is one of the world's largest single-owner advertising
agencies. Founder Stan Richards controls 100% of the equity of the shop. Without any other
owners or outside investors, Richard’s Group feels like they can better focus on their work.
It has for many years operated under an open-door policy where the staff is not divided by
department and there are no walls or cubes so that no one is separated from everyone else.
In 2007, it overtook Doner to become America's largest independent agency by revenues,
and has maintained that position ever since with a marginal lead.
Clients: Home Depot, Gamestop, QuikTrip, Chick-fil-A, Fruit of the Loom, HoneyBaked Ham,
Motel 6, The Salvation Army, TV Guide, and many more.
Strengths
The Richard’s group is consistently ranked among the nation’s most creative teams. They
pride themselves on telling “truths” versus just selling ads. The Richard’s Group was ranked
No. 37 on Ad Age’s best places to work list. Their average employees have tenure of 17
years.
Weaknesses
The Richard’s group does not have as strong of an analytical team. Unlike Martin Agency
who has Consumer Forensics, the Richard’s group lacks the hard evidence that Martin
Agency has. Richard’s Group’s strongest client is Chick fil’ A , but Martin Agency has many
clients with strong campaigns as well.
Strategy
The Richards Group focuses on building brands in all forms of communication at every
contact point. According to their website, “We've assembled all the important resources an
agency should offer, as well as services agencies 10 times our size can't or won't.” They
offer services in advertising and marketing, relationship marketing/direct marketing,
Hispanic/ethnic marketing and advertising, public affairs, public relations, sales promotion,
naming, graphics design, interactive communications, employee brand training and
employee selection. Their mission is to become the best advertising agency in the world,
while having fun and doing some of the best work.
MULLEN
Founded in 1970 by Jim Mullen, Mullen Advertising is a full-service advertising and
marketing agency headquartered in Boston, MA, with offices also in New York, Winston-
Salem, Pittsburgh, Detroit, and soon-to-be San Francisco. As a subsidiary of parent company
Interpublic Group of Companies (IPG), Mullen is the 22nd largest agency in the United
States. Mullen is publicly traded on the Toronto Stock Exchange under the symbol MTL.
Awarded the Ad Age Stand-Out Agency, Fast Company's "Most Innovative Company,” Omma
Agency of the Year, and ranking on Ad Age's A-List, Mullen has grown from once a regional
advertising firm, to expanding nationwide and attracting some of the biggest name clients in
the world.
Clients: Google, Barnes&Noble, Fage, Adidas, Grey Goose, and more.
Strengths
Mullen prides itself on not only providing innovative, quality products to big-name
companies with histories of longevity, but also creating a working environment that
continues to foster the type of creativity and cutting-edge thought processes needed to keep
their clients at the top.
Weaknesses
While Mullen has displayed consistent success with big-box corporations, such as Google,
they admit that working with smaller, niche-market clients may not be an area they're fully
developed in yet.
Strategy
The overall strategy of the Mullen Agency is to turn their clients into valuable topics of
conversation rather than have them be ‘interpreters’. The objective is to pull conversations
towards their client’s brands in a positive way, and to ultimately ‘amaze and delight’
consumers.
DEUTSCH
Deutsch is based in Los Angeles with a location in New York. They became a power house
in 1989 and went global when it was bought by Interpublic Group of Companies and was
aligned with Lowe Worldwide. It does both integrated advertising and digital advertising
and is “just as obsessed with great storytelling as with technology, experiential, search, and
media.” They have received many international awards and have proven results. Their
focus is great storytelling, technology, experiential, search and media. They do everything
from Super Bowl TV spots to business strategies. In their own words, the “fun, open,
friendly” culture at their offices is what makes the employees happy, work harder, and
create and overall stronger agency. They build brands and grow businesses through their
creativity and technology.
Clients: Anthem, Real California Milk, Degree, DirectTV, Dr. Pepper, Emerald, Galderma, Go
Daddy, HSN, htc, Johnson & Johnson, Microsoft, Playstation, Snapple, Target, Unilever,
Volkswagen, and more.
Strengths
Deutsch is one of the most well-respected and successful advertising agencies in the US.
They are known for doing great creative work. They are full service with over 1,000
employees. They are ranked No. 19 on Ad Age’s best places to work. It has locations on
both the east and west coast.
Weaknesses
Deutsch, like Martin Agency, is part of Interpublic Group of Companies. This could be a
problem in that they are competing for the same client. They are not as familiar with Fruit
of the Loom’s products or products in the same category as their client list only includes one
clothing retailer.
Strategy
Deutsch prides themselves with having a strong internal culture that shines through in their
work. Deutsch is at its core a business building machine. It's not just about making ads.
They are about developing strategically sound, insightful creative that connects with people
at the right moment in the right environment. They are a fully integrated service agency.
They make everything from Super Bowl TV spots to large-scale dot coms to mobile
applications to events, new products, media plans, and business strategies. Their services
include: account management, account planning, creative, creative technology, data
strategy, design, digital, experience design, experiential marketing, integrated production,
invention strategy, media planning and buying, mobile marketing, and search. They have a
strong commitment to creativity as well as making sure their ads are personal, remarkable,
and authentic.
Customer Benefit Plan
(1) Our recommended pilot campaign acts as a form of insurance by providing initial,
valuable data to assess before spending the remainder, and larger part, of Fruit of the
Loom’s advertising budget.
(2) Martin Agency’s top-of-the-line Consumer Forensics team offers an unparalleled,
detailed analysis of data collected prior to, during, and after all aspects of the campaign,
enabling Martin Agency to better advise Fruit of the Loom based on quality statistical
evidence.
(3) Martin Agency’s experience in appropriately using celebrity endorsement has been
proven to yield returns of at least 3 million dollars more per year, while also gaining social
prestige.
(Martin Agency plans to use a high profile celebrity in both the pilot and nationwide Fruit of
the Loom campaign).
Marketing Plan
Knowing that Fruit of the Loom is not entirely satisfied with their current ad agency, we
have developed a marketing plan to resolve what we believe to be some of their issues,
specifically with their female shopper demographic. Martin Agency is prepared to run both
a pilot marketing campaign in a metropolis testing area to gather and analyze initial results,
as well as take the final marketing campaign to the national stage. We are interested in
specific product promotion (female underwear), while simultaneously reinforcing and
enhancing your current brand image.
The Martin Agency is better suited as a potential ad agency for Fruit of the Loom for many
reasons. First, Fruit of the Loom has a competitive advantage over agencies like The
Richard’s Group because of the plentiful experience in the category including work for
women’s underwear marketer Vanity Fair, Children’s Brand Healthtex, Sportswear maker
Wrangler, and, most famously, Hanes “Her Way.” Not only with experience within the
clothing and underwear category, in particular, but The Martin Agency was able to
completely transform the Hanes Brand to better appeal to the female consumer, which we
think that Fruit of the Loom should consider targeting as well. We pride ourselves on our
strong analytical team and ability to discover and effectively advertise to the right target
market. While we’d like to propose an ad campaign that particularly targets female
shoppers, we still would like to focus on improving the brand image as a whole while
maintaining the roots with which the company was built.
We recognize the need for analysis and the ability to adapt to consumer response, which the
Martin Agency really excels in, thus, recommend the initial step in reshaping Fruit of the
Loom's image to female shoppers be a pilot campaign to test in metropolis Columbus, Ohio.
We would like to test out a campaign that gives off a more “sexy appeal” to female shoppers
of all shapes and sizes. This can be achieved in a number of ways:
Phase 1: Pilot Campaign
Through an advertising partnership with existing Martin Agency client, Wal-Mart, we would
like to run a six month exposure campaign in area retailers (Wal-Mart, Target, Kmart) with
full advertisement (celebrity endorsement) to collect data for consumer response analysis.
The Martin Agency would launch the endorsement TV ads on local Columbus channels, both
in-store and newspaper print ads along with online ads. Options for potential celebrity
endorsers include Mila Kunis, Tyra Banks, or Rachel McAdams.
Phase 2: Analysis
After the 6 month period, our analytics team would spend 3 months performing Consumer
Forensics on the pilot campaign, giving final results and recommendations to the Martin
Agency team assigned to Fruit of the Loom.
Phase 3: National Campaign
Our marketing team, working closely with our analytics team, will then make appropriate
changes to the overall campaign strategy before taking the campaign national. We will
continue to use the celebrity endorser from the pilot campaign to establish a recognition
with consumers.
Established brands, like Fruit of the Loom, have success with endorsements because they
have enough money to afford people that align with their desired brand image. The current
absence of a celebrity endorser makes it difficult for customers to identify with the brand;
therefore, by selecting an endorser, you will give your customers someone they can relate to
and identify with. In addition, celebrity endorsers increase firms market share and utility
and allow the customer to feel as if they have gained social prestige. Taking into account
the inherent quality of the endorser, the endorsement effect leads not only to a significant
number of existing customers switching toward the endorsed products but also has a
primary demand effect.
We recommend that you hire Mila Kunis, Tyra Banks, or Rachel McAdams endorse your
rejuvenated brand. The two most important factors when choosing endorsers are the
attractiveness of the celebrity and the expertise and trustworthiness of the endorser. Mila
Kunis has just been selected as Esquire’s Sexiest Woman Alive, Tyra Banks is a former
supermodel, and Rachel McAdams is an up and coming actress who is well known for her
roles in Mean Girls and The Notebook. In a study by Chung, Derdenger, and Srinivasan,
they found that the more attractive the celebrity, the greater the impact on sales. Thus,
these women are a great choice. Promoting self-esteem in all individuals is one of the core
competencies of Fruit of the Loom, and these women embody that.
Business Proposition
In the event a partnership between Fruit of the Loom and Martin Agency is established, we
would negotiate costs for our services, including free consumer forensics by our expert
analytics team on your first campaign with us, as well as provide Fruit of the Loom with
detailed product pricing, profit forecasts, and ROI to be expected from a campaign like the
one outlined above.
6 Month Pilot Campaign
Celebrity Endorsement
Options: Mila Kunis, Rachel McAdams, or Tyra Banks
6 months, pro-rated $10,000,000/5 years/12 months x 6= $1,000,000
Billboard (CBS Outdoor Advertising)
$2,000/mo (Jan-June)
1. High traffic area
2. Digital board
3. 14' x 48'
12 Billboards=$24,000 x 6 months= $144,000
Mall Dioramas (CBS Indoor Advertising)
$500/mo (Jan-June)
1. Easton Town Center (best shopping district, home to both Express, Victoria's
Secret, & New York&Co. flagship stores because Limited Brands is headquartered in
Columbus i.e. many pilot products are released here)
2. Best quality of materials for ads
3. 70" H x 48" W
12 Mall Dioramas-planning to have them all over the complex (Easton Town Center is a
cross between outdoor shopping, with an indoor mall section)=$6000 x 6 months= $36,000
Local T.V. Station (WBNS "10 TV")
High frequency schedule
6a.m. ($400) noon ($300) 5pm ($500) 6pm ($700) 11pm ($800)
1. 60 seconds
2. Demographic figures are based on = women 25-30
3. About $15,000/month x 6 months= $90,000
Newspaper/Online (Columbus Dispatch)
$4,850/mo. (Jan-June)
1. full page
2. color
3. PACKAGE DEAL
-Runs either Monday or Tuesday (i.e. 1 day a week)
-100,000 online ads/week
-Runs full page color ad ALSO in "The Onion" and "Alive", both local
magazines that reach the 25-35 female demographic
$4,850x6= 29,100
Pilot Total
$1,299,100
National Campaign
Our services (what Fruit of the Loom would owe us)=
$6,000,000 (15% of overall campaign costs)
Product pricing (what it will cost Fruit of the Loom aside from paying Martin Agency)=
$34,000,000
Includes:
1. Celebrity Endorsement
2. TV
3. Radio
4. Billboard
5. Online
Expected Return
Fruit of the Loom has expressed interest in a 3 to 1 Return on Investment, and we believe
we can allow for such a great return. Through the celebrity endorsement alone, our
research shows that you can get returns of at least three million or more per year while
also gaining social prestige, increasing Fruit of the Loom’s market share, measurable
impressions, and utility. The endorser will sign a contract for five years and upon the
expiration of the contract, we will evaluate how she has affected sales and perform market
research to see how our target market views the brand.
Suggested Order
Martin Agency would like you, Fruit of the Loom, to sign a seven year contract with us
today. The campaign will be $40 million overall which includes $1,299,100 for the pilot
campaign, $10 million for a five year contract with the endorser of your choice, and our fees.
We would love Fruit of the Loom to be our client and are positive that this investment will
greatly benefit your business and attract a customer base that has not yet been reached.
Works Cited
Berkshire Hathaway, Inc. Consumer Report.
http://www.berkshirehathaway.com/2011ar/2011ar.pdf
Celebrity Endorsement. Squidoo. http://www.squidoo.com/celebrity-endorsement
http://adage.com/article/media/tv-ad-prices-idol-match-football/237874/
Deutsch. Ad Forum. http://us.adforum.com/agency/4799/print-view
Deutch interview/email correspondence. http://www.deutschinc.com/#!/about/facts
Deutsch Is No. 19 on Ad Age's Best Places to Work List. AdvertisingAge.
http://adage.com/article/special-report-best-places-to-work-2012/deutsch-19-ad-age-splaces-work-list/233659/
Fruit of the Loom. Empowering Our People.
http://socialresponsibility.fruit.com/core_values.html
Geico’s Marketing & Advertising Campaign Strategy. HubPages.
http://romper20.hubpages.com/hub/Why-Geico-is-an-Advertising-Tycoon
Griswold, Alicia. The Martin Agency Defeats Hanes’ Roster Lineup. Adweek Southeast
Edition. http://web.ebscohost.com/bsi/detail?vid=13&hid=18&sid=a17750c7-3776-452881f2ba7ac9177d27%40sessionmgr14&bdata=JnNpdGU9YnNpLWxpdmU%3d#db=buh&A
N=4917965
Joseph, Chris. The Disadvantages of Using and Advertising Agency. eHow.
http://www.ehow.com/list_6183423_disadvantages-using-advertising-agency.html
McMains, Andrew. Updated: Fruit of the Loom Launches Ad Review. Ad Age.
http://www.adweek.com/news/advertising-branding/updated-fruit-loom-launches-adreview-143501
Mullen. http://www.mullen.com/about/
The Richards Group. http://www.richards.com/index.html#/approach/