Research

Step 1

Decide on Your Objective, Develop Your Strategy and Identify Your Target Market

The following demonstrates how an advertiser can take advantage of the resources available from The Vancouver Sun and The Province, to plan and execute a yearly advertising campaign.

Advertiser:

  • Furniture retailer with one location and $1,000,000 in annual sales
  • The furniture is one of a kind and as such is a destination store.

Objective:

  • Maintain a presence with furniture buyers during the spring and summer months and then increase their presence in the fall in order to capture the market when more people are typically buying furniture.
  • Reach target market building towards a frequency of three times per month as research indicates this is the optimum

Target Audience:

  • Households who plan to purchase furniture in the next twelve months.  With help from The Vancouver Sun and The Province’s research department, we can build a profile of this audience:
  • Accounts for 24% of all households
  • Index high against a household income making $75,000+ per year, with an average household income of $68,900
  • Fairly evenly distributed throughout the entire Lower Mainland
  • 59% of these households own their own home
  • Almost 72% have read The Vancouver Sun and/or The Province in the past week

Source: NADbank 2004

Step 2

Plan Your Advertising Budget

$1,000,000 annual sales x 5.4% (based on Chart A) = $54,000
+ co-op from manufacturers $15,000
+ Auction dollars (wholesale dollars) $20,000
Total budget $89,000

Step 3

Develop Your Month-by-month Plan

Once you have a general spending target in mind, check Chart B to guide your advertising spending by month. Record this year’s plan in Chart C.

Chart B: Retail Sales for B.C. (% breakdown by month)

STORE TYPE JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC
All Other Food Stores 8.4 7.2 8.2 8.1 8.4 8.5 8.6 8.9 8.2 8 7.4 10.1
Automotive Parts, Accessories & Services 7 6.6 7.9 7.9 9.1 9.1 9.1 9.2 7.6 8.5 8.8 9.1
Clothing Stores, Men’s 6.9 5.4 6.9 6.9 8.4 8.3 7.9 7.8 7.4 8.1 9.3 16.5
Clothing Stores, Other 6.3 5.8 7.7 7.3 7.6 7.7 7.6 8.9 8.4 8.8 9.3 14.6
Clothing Stores, Women’s 6.4 6 7.4 7.3 8.4 8.2 8.3 8.7 8 8.3 8.5 14.4
General Merchandise Stores 6.1 6.2 7.5 7.4 8.1 8.2 8.2 8.3 7.9 8.6 9.6 14
Household Furnishings Stores 7.2 6.7 7.7 6.9 7.7 8.7 8.3 9 8.4 8.6 9.3 11.4
Household Furniture & Appliance Stores 7.2 6.3 7.5 6.7 7.1 7.6 7.5 8.6 8.3 8.8 9.8 14.5
Motor Vehicle and Recreational Vehicles 7.1 7 8.4 8.6 9.7 9.8 9.3 8.5 7.9 7.6 8 7.9
Other Retail Stores 6.4 6.7 8 7.4 8.3 8.5 8.8 9.5 8.5 8.2 8.4 11.3
Shoe Stores 6.6 5.8 7.4 7.8 9.1 8.7 8.1 9.2 8.7 8.8 8.1 11.6
Supermarkets & Grocery Stores 7.4 7.3 8.4 7.8 8.5 8.8 8.6 9 8.4 8.2 8.4 9.

Source: Retail Council of Canada

Chart A: Average % of Sales Spent on Advertising

Commodity or
Class of Business
Average % Commodity or
Class of Business
Average % Commodity or
Class of Business
Average %
Appliances and electronics 2.4 Hardware stores 1.1 Paints, varnishes, lacquers 2.5
Appliance dealer 2.8 Under $750,000 2.4-2.5 Photo/video stores
Electronics dealers 3.6 $750,000 -$999,999 2.7 Without on-site processing 1.6
Appliance & electronics dealers 3.1 $750,000 -$999,999 2.7 With on-site processing 2.7 – 3.3
Auto dealers 1 $1,000,000 or more 2.2 Radio, TV & consumer electronic stores 3.3
Auto and home supply stores 1.1 Hobby, toy and game shops 1.4 Restaurants
Bicycle dealers 3.3 Home centers Full menu with table service Under $1,000,000 -1.9
Building materials, hardware, garden(retail) 2.9 Under $5,000,000 1.7 $1,000,000 or more 2.2-2.3
Computer and office equipment 0.9 $5,000,000 or more 1.2 Limited menu with table service Under $1,000,000 4.2-5.2
Decorating retailers 3.3 Home furnishing stores $1,000,000 or more 2.6
Department stores Under $1,000,000 5.4 Limited menu with no table service Under $600,000 2.9
All department stores 3.5 Over $1,000,000 6.0-6.4 $600,000 or more 4.2
Under $100 million 3.9 Hotels, motels, tourist courts 3.6 Security brokers and dealers 1.2
$100 million – $300 million 2.8 Household appliances 2.6 Shoes 2.4
$300 million – $600 million 3.5 Household furniture 4.5 Specialty stores 3.2
Over $600 million 3.9 Investment advice 5.1 Sporting goods stores
Discount stores 1.2-2.9 Jewellery stores 3.9 General 2.1
Drug and proprietary stores 1.1 Men’s wear stores 3.1 Specialty 3
Educational services 7.4 Motion picture theatres 2.8 Tire dealers 3.0-5.0
Family clothing stores 2.7 Musical instruments 2.4 Video specialty retailers
Finance services 3 Natural food stores 1.2 Video superstores 4.7
Grocery stores 1.1 Optical dispensers Average 2.1
Optical chains 8 Women’s clothing stores 2.6
Independents 5.7

Source: Retail Council of Canada

Step 4

Develop Your Month-by-month Plan Using Chart B

  • January to June, this advertiser should plan to spend an average of 7.5% of the budget per month, which translates to $6,675 per month
  • July and November, the budget fluctuates between 8.3% and 9.3%
  • $20,000 in auction dollars must be spent in July and August
  • 11.4% allocated in December

Positioning:

  • At Home and Westcoast Homes in The Vancouver Sun and The Province respectively, appealing to an audience interested in home decorating
  • Newspapers’ websites

Size:

  • Banner ads have a nice clean look, but aren’t large which allows for more frequency while keeping within the budget
  • Leaderboard ads online will have consistent look with in-paper ads

Blocking Chart:

January February March April May June July August September October November December
Online Banners (100,00) impressions X X X X X X X X X X X X
Vancouver Sun (M-F) 2 2 2 2 2 2 4 4 3 3 3 4
Province (M-F) 2 2 2 2 2 2 4 4 3 3 3 4
Reach against target* 49% 49% 49% 49% 49% 49% 55% 55% 53% 53% 53% 55%
Frequency* 2.02 2.02 2.02 2.02 2.02 2.02 3.56 3.56 2.80 2.80 2.80 3.56

*NADBank 2010 Full Study

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