1

Skullcandy Lowrider Ad Campaign

Gabi Nygaard

May 22, 2012

2

Target Market Analysis

Demand: Headphones in general are a mature product and primary demand is strong. People

from all walks of life need headphones for a variety of purposes such as for use with music

players, laptops, cell phones and other consumer electronics. There aren’t quite any alternative

product categories offering the same functional utility that headphones do in the market so there

is currently no danger of decline. This being the case, producers must focus on cultivating

selective demand and differentiating their products to fight for market share. Additionally, the

increasing popularity of smartphones, tablets and other electronics helps solidify the position of

headphones, a factor that Skullcandy has tuned into. Skullcandy’s 2011 prospectus argues “that

the growing demand for portable media and music devices, like smartphones and Apple’s iPod,

is driving a massive demand for accessories such as headphones. The document points to IDC

Research, which estimates that, from 2010 through 2014, the number of smartphones available

worldwide will grow at an annual rate of 24 percent” (Magnan). Primary demand for

Skullcandy’s product category should benefit in tandem.

Secondary demand for Skullcandy headphones is also strong. In a February 22 release,

Skullcandy reported that in 2011 annual net sales increased 44.8 percent to $232.5 million with

domestic net sales increasing 34 percent in the past year. Gross profit for 2011 was reported to be

$115.5 million. In the same release, Jeremy Andrus, Skullcandy’s President and CEO, called

2011 “the best year in Skullcandy’s history with strong net sales growth and sequential margin

improvement.” Andrus stated, “We made key acquisitions during the year and continue to make

investments in critical areas of the business to support long-term growth, including product

development, international expansion, interactive media and point of sale merchandising.”

(“Skullcandy Reports Record Fourth Quarter and 2011 Financial Results”). Skullcandy has

3

experienced rapid growth and success since entering the market in 2003 and retains a strong base

of loyal customers, most notably the niche of action sports enthusiasts. Standard & Poor’s ranks

Skullcandy sixth among competitors including such giant corporations as Panasonic and Sony

("Competitors (All).").

Target market: Skullcandy’s brand reflects and appeals to “music, fashion and action sports

lifestyles.” Skullcandy pioneered its distribution in “specialty retailers focused on action sports

and the youth lifestyle,” thereafter expanding to select mass merchandisers, consumer

electronics, sporting goods and mobile phone retailers (“Investor FAQs”). Skullcandy’s early

success can be largely attributed to this unique distribution method. As Andrus stated in 2010,

“[Skullcandy’s] most important success has been bringing headphones into stores that never sold

headphones before. Action sports and lifestyle fashion shops had never considered headphones

until Skullcandy came along” (Stewart and Little).

Skullcandy has strong roots in action sports and is a respected and widely used name

among skateboarders, snowboarders and surfers. The breadth of specialty stores that carry

Skullcandy’s products as well as its endorsement by and affiliation with professional athletes

attest to this. Action sports have provided a solid foundation from which Skullcandy has already

begun to branch off. According to one distributor’s brand description, from its foundation in the

action sports scene in 2003, “market demand grew, requiring Skullcandy to produce even more

styles, making sure that every person out there could find the style that they want in at least one

item” (“About Skullcandy”). These aspects prime Skullcandy for expansion in this campaign’s

proposed direction.

To continue Skullcandy’s expansion and further its efforts to diversify, this advertising

campaign focuses on the fashion aspects of the brand image to appeal to a target market with a

4

special interest in this realm. Skullcandy is already in a position to capitalize on its potential

appeal to fashion lovers given its wide variety of designs and styles and its edgy vibe. This

branding appeals particularly to a younger, hip audience. For the abovementioned reasons, a

young, fashion-minded target audience has been selected for the advertising campaign.

Skullcandy touts both high quality functionality and a desirable, attractive aesthetic and

symbolism/status associated with its products that will appeal to this audience.

Demographics:

Age: 13-25, teenagers and young adult age groups

Gender: male and female

Occupation: students, clerical/sales

Family life cycle: young, single

Income: under $40,000

Behaviors:

User status: potential user

Loyalty status: none

Readiness stage: unaware through desirous

Marketing-factor sensitivity: advertising

Psychographics:

Lifestyle: strivers, achievers, actualizers

Personality: Impulsive, gregarious, unconventional, active, energetic, enthusiastic

Value: Self-expression

VALS framework: Experiencers: Motivated by self-expressive needs with sufficient

resources to purchase Skullcandy headphones. Experiencers are young and “savor the

5

offbeat,” matching Skullcandy’s rebellious image. As avid consumers who “spend a

comparatively high proportion of their income on fashion, entertainment, and socializing”

with purchases that “reflect the emphasis that they place on looking good and having

"cool" stuff,” they are the perfect targets for Skullcandy’s products, which are used in

entertainment pursuits, appeal to fashion sense and, simply, “cool” (“Experiencers”).

MindBase framework: Expressive

Benefits sought: prestige, quality, symbolism/image, self-expression

No geographic delimiters (nationwide distributors)

Product Situation Analysis

Product Analysis

The Company

History: Skullcandy was founded in 2003 by Rick Alden, originally selling a device

connecting cell phones to portable music players known as the Skullcandy LINK. As an action

sports enthusiast and entrepreneur, “from the beginning, Alden saw Skullcandy as more of a

lifestyle brand than a consumer electronics brand” (“Skullcandy, Inc.”). Skullcandy introduced

subsequent innovative audio products including a variety of designer and noise-canceling

headphones, thereafter making headphones its focus (“Skullcandy, Inc.”). Skullcandy achieved

large-scale success in branding the previously commoditized headphone, initially targeting an

action sports audience and then expanding its mass market reach in 2007 when retail outlets

Target, Best Buy and Circuit City began to carry the line (“Skullcandy, Inc.”).

Mission: Although Skullcandy’s Facebook page lists “World Domination” as its mission,

a more realistic statement can be found on many of its distributors websites, stating that

“Skullcandy’s mission is to put out the most stylish, affordable and innovative headphones that

6

can be easily integrated into your life. Our line of headphones is always expanding to meet the

demands of our loyal customers.” In response to an inquiry, Skullcandy customer service

responded, “Our Mission Statement is very simple: Being the leader in lifestyle and performance

audio.”

Goals: Skullcandy’s motto is “Every revolution needs a soundtrack.” It is Skullcandy’s

overarching goal to provide for that need to today’s generation with its products and thereby

position itself as leader in its category. Skullcandy strives to be an authentic lifestyle brand that

makes lifelong connections and maintains mutually beneficial relationships with consumers.

In its investor presentation, Skullcandy identifies the following specific, immediate goals

related to significant growth opportunities: further penetrate the domestic retail channel, grow

internationally, expand online platform and grow premium product offering (“Skullcandy

Investor Presentation”).

Scope of business: Skullcandy products are sold nationwide in the U.S. and in more than

70 other countries (“Investor FAQs”). In addition to its mainstay of headphones, Skullcandy also

sells accessories and apparel including hats, T-shirts, socks, sweatshirts, backpacks, wallets,

belts, and iPhone and iPod Touch cases (“Skullcandy, Inc.”).

Skullcandy carries multiple lines of headphones at different price points. Its headphones

fall under three main types: over-ear headphones, on-ear headphones and earbuds (in ear

headphones). Within these model types are various lines that exhibit different features such as

microphones and specifications that gear them for use during sports or for DJing. Generally,

earbuds are the cheapest models, starting at $20, followed by on-ear headphones with over-ear

headphones being the highest in price and quality, the most expensive model costing $300.

7

Profitability: Skullcandy has experienced consistent financial success since its founding.

In a February 22 release, Skullcandy reported that in 2011 annual net sales increased 44.8

percent to $232.5 million with domestic net sales increasing 34 percent in the past year. Gross

profit for 2011 was reported to be $115.5 million. In the same release, Jeremy Andrus,

Skullcandy’s President and CEO, called 2011 “the best year in Skullcandy’s history with strong

net sales growth and sequential margin improvement” with reports that the company expects

continued growth in 2012, anticipating net sales of $275 million to $295 million for the full year

(“Skullcandy Reports Record Fourth Quarter and 2011 Financial Results”).

Reputation: Skullcandy refers to itself as the world’s “most distinct audio brand” in its

press releases. The company’s relationships with athletes, DJs, musicians and artists help to

“validate form, function and sound” (“Skullcandy Investor Presentation”). Based on customer

reviews and word of mouth, Skullcandy generally seems to have a positive reputation with

quality, value and image being key assets.

The Product: Skullcandy Lowrider Headphones

Features: Lowrider headphones feature over-ear, padded 90° swivel articulating ear cups

with 40mm diameter speakers. They have a lightweight (15.8 ounces, 7 in.x 6 in.x 3 in.

dimensions), foldable and adjustable headband design. The cable is 1.2 meters in length and

includes an in-line (on cord) microphone and play/pause/track control buttons functional with

music players. The 3.5mm gold plated plug is compatible with standard headphone jacks.

Lowrider headphones include a lifetime limited manufacturer warranty. They are available in a

variety of colors and designs.

Benefits: Lowrider headphones satisfy a host of utilitarian needs and offer tangible

benefits, including, as per the standard function of headphones, quality audio performance. They

8

are reasonably priced and perceived at a high level of value by customers. The lightweight and

foldable design makes the headphones easy to store and transport. The ear cups and headband are

adjustable and comfortable, ensuring a snug fit and satisfactory user experience.

In addition to function, Skullcandy has pioneered the provision for ego needs within its

category, “[revolutionizing] the headphone market by stylizing a previously-commoditized

product” (“Investor FAQs”). Lowrider headphones are available in a host of colors, patterns and

designs, infusing style into the product and allowing consumers to mark their individuality, stand

out and express themselves through their headphones. This provides an emotional and esteem or

well-being related benefit, especially to Skullcandy’s primary youth target audience who

particularly value separation from the mainstream and being “cool.” People routinely express

themselves through their fashion and music choices. At the convergence point of the two,

Skullcandy “[capitalizes] on the increasing personalization of music” by creating a new way for

consumers to display coolness/fulfill esteem needs and express their individuality (“Investor

FAQs”). This symbolism is a major benefit the product offers to consumers and one absent from

competing products.

Uses: These headphones are compatible with a wide range of consumer electronics,

fitting any standard headphone jack, making them perfect for music players, computers,

smartphones, tablets, and so on. They are also suitable for use during activities such as

skateboarding and other action sports.

Differentiating qualities: Skullcandy was the first to stylize headphones, “bringing color,

character and performance to an otherwise monochromatic space” (“Skullcandy Reports Record

Fourth Quarter and 2011 Financial Results”). The product itself is visibly different from the

competition with not only a unique model design but variety of exclusive color and style options

9

unavailable elsewhere. Not only does the style of the product differentiate it from the

competition, it also allows consumers to differentiate themselves from the crowd when they use

it. The perceptible difference of design is also part of the branding that creates the induced

difference of cool symbolism and image attached to the product. These factors make Lowrider

headphones vastly different from products with comparable technological features. In addition,

Lowrider headphones’ foldable design and portability is a strong point that similar products

typically lack .

Price: $39.95

Reputation: Reviews of the product are generally quite favorable as viewable online at

the manufacturer’s and various distributer’s websites. Customers report satisfaction with the

quality, value and comfort of the product. Much of the praise voiced is for the style and cool look

of the product as well as for its portability with most negative comments regarding durability.

However, the product’s lifetime warranty effectively compensates for this potential shortcoming.

Competitive positioning: Standard & Poor’s ranks Skullcandy sixth among competitors

including such giant corporations as Panasonic and Sony ("Competitors (All)."). However,

Skullcandy has the edge of being the only lifestyle brand in the market. Although the

competition offers products at similar price points fulfilling the same uses, the benefit of

satisfying ego needs and the product attribute of style is unique to Skullcandy’s product.

Sales: Information about sales of the particular product is not available. However,

according to an Investor Presentation available on its website, in 2011 market share Skullcandy

was number one in earbuds and number two in total units as ranked by unit volume market share

(“Skullcandy Investor Presentation”). In 2011 Skullcandy’s annual net sales increased 44.8%

10

to $232.5 million for a gross profit of $115.5 million (“Skullcandy Reports Record Fourth

Quarter and 2011 Financial Results"). As such, sales seem relatively strong.

The Market

Current customers: Skullcandy’s primary customer base has been called “a low-attention-

span generation interested in listening to music all the time” and “disposable-income-rich

demographic of 12-to-25-year-olds” (Burger). Nationwide they buy the product online and in

stores to fulfill the previously discussed uses and needs the product satisfies. Skullcandy’s

foundation of loyal customers is an action sports market. The company pioneered its distribution

in “specialty retailers focused on action sports and the youth lifestyle,” thereafter expanding to

“select consumer electronics, mass, sporting goods and mobile phone retailers” (“Investor

FAQs”). Skullcandy’s early success can be largely attributed to this unique distribution method

and devoted customer base. As Andrus stated in 2010, “[Skullcandy’s] most important success

has been bringing headphones into stores that never sold headphones before. Action sports and

lifestyle fashion shops had never considered headphones until Skullcandy came along” (Stewart

and Little). A major appeal to this group is the branding; "The striking designs draw their graphic

imagery from hip-hop culture, accessorized with everything from rhinestones to faux animal

skin. This enables the wearer to show that he is into the cool ski, surf and skate lifestyle"

(Burger). As a skateboarder and snowboarder himself, Skullcandy founder Alden was “well

aware that participants in board sports were also very devoted to their music, and he targeted

them as core customers for Skullcandy audio products” (“Skullcandy, Inc.”). Alden said these

original customers are the key to Skullcandy’s long-term growth, stating, "we’ve got to be edgy

and keep our original consumer happy, because without him, we'll lose people like me—old guys

who want to buy cool young products, too” (“Skullcandy, Inc.”). This action sports audience is

11

the lifeblood of Skullcandy. The credibility and image it has allowed Skullcandy to achieve

allow the company to expand to further markets.

Target market: To expand and diversify, this advertising campaign aims to appeal to a

young, fashion-minded target market. Skullcandy is in a position to capitalize on its potential

appeal to fashion lovers given its array of designs and edgy vibe. This branding appeals

particularly to a younger, hip audience. The product touts both high quality functionality and a

desirable, attractive aesthetic and symbolism/status associated with it that will appeal to this

audience. Demographically, this market consists of young, single 13-25 year old males and

females. Psychographically defined, they have an interest in fashion and value self-expression.

This market is known as “Experiencers” in the VALS framework and consists of avid consumers

who “spend a comparatively high proportion of their income on fashion, entertainment, and

socializing” with purchases that “reflect the emphasis that they place on looking good and having

‘cool’ stuff,” making them the perfect targets for the product, which can be used in entertainment

pursuits, appeals to fashion sense and, simply, is “cool” (“Experiencers”). This target market has

sufficient resources to purchase the product which is at one of Skullcandy’s mid-range price

points. The benefits this market seeks include quality, symbolism/image and self-expression.

Behaviorally they are potential users who may be in the unaware through desirous stages of

readiness.

Product SWOT Analysis

Strengths: Skullcandy identifies its “authentic lifestyle brand” and “targeted distribution

model” to constitute “significant growth opportunities,” but as they are internal factors they can

also be viewed as strengths of the company (“Skullcandy Investor Presentation”). The main

strength of the product suited for leverage in advertising is the self-expression benefit it offers.

This is a unique asset that the competition does not have; “Skullcandy is cool,” its logo displayed

12

proudly by customers on car bumper stickers, for example (“I challenge you to find a Sony

bumper sticker”) (Burger). Skullcandy’s image and positive reputation are essential to the

product’s success. The product’s price is reasonable and seen as a value to its current customers.

It is available from multiple distributors, making it easy to obtain and widening its appeal.

Skullcandy’s relationships with and endorsement by athletes, DJs, musicians and artists can also

lend credibility and desirability to the brand and product. Additionally, the company’s online and

mobile phone platforms “deliver the flagship brand experience, allow direct interaction with our

consumers, build the brand and establish lifetime relationships” with consumers (“Skullcandy

Investor Presentation”).

Weakness: Conversely, some of Skullcandy’s strengths could be viewed as weaknesses to

different members of the same audience, including image and price. Although this product is one

of Skullcandy’s low-mid range price points, it could be too expensive for some members of the

target audience, especially younger teens who may rely on parents for disposable income.

Additionally, the edgy image may not be one that everyone finds appealing and wants to be

associated with. If members of a fashion-minded target market believe Skullcandy products are

meant solely for action sports enthusiasts, this could hurt sales to this group and thus should be

something that advertising addresses, communicating that the brand is diverse and appeals to

individuals outside the athlete niche as well.

Opportunities: The increasing popularity of smartphones, tablets and other consumer

electronics helps to solidify the position of the entire headphone product category and constitutes

an opportunity. Skullcandy’s 2011 prospectus states “that the growing demand for portable

media and music devices, like smartphones and Apple's iPod, is driving a massive demand for

accessories such as headphones. [Research] estimates that, from 2010 through 2014, the number

13

of smartphones available worldwide will grow at an annual rate of 24 percent” (Magnan).

Primary demand for Skullcandy’s product category should benefit in tandem. Positioning its

product as suitable for smartphone use is an external opportunity to leverage the product’s

success.

Threats: One of the only threats to the success of the product is competition. Competition

includes large companies with vast resources such as Sony and Panasonic. These and other

competitors have copycatted Skullcandy in introducing brightly colored headphones a at

comparable prices but have yet been able to achieve the same level of success as Skullcandy.

The competition simply does not offer the lifestyle entree that Skullcandy does and is not as

attuned to youth tastes, making threat to Skullcandy’s hold on its young target market minimal.

Advertising Objectives

The campaign’s top three advertising objectives are: communicate existence of the

product to a total audience of 15 million; develop comprehension of the product’s brand image in

two-thirds of the aware group; and convince two-thirds of the comprehending group that the

product offers the benefit of self-expression. Within these objectives, conviction ranks primary,

comprehension secondary and awareness of tertiary importance, although the chronological

order in which these would logically be achieved is in the opposite (initially listed) order.

Developing conviction of the benefit the product offers is the top objective because this benefit is

the key strength of the product to be leveraged in advertising and what seems to be the most

convincing stimulus to action for the target market. Achieving this objective will most contribute

to the product’s success, and as such is considered primary. Potential customers must be aware

of the product’s availability to consider buying it. As such, communicating its existence is a

basic foundational step that must be achieved, one that can easily be paired with a message

14

aimed at achieving other objectives since any advertising about the product should communicate

its existence. After awareness and conducive to conviction is the objective of comprehension of

the brand’s image, an objective which can be seen as intermediate and supportive of the primary

goal. As such, it is ranked as secondary. If the audience understands the product’s image, they’ll

be more receptive to the brand and the idea that the product provides the self-expression benefit.

Creative Brief

Problem/opportunity

Skullcandy is often perceived as a brand intended primarily for action sport enthusiasts

because of the company’s history and roots with this group. A prime audience for the product,

one whose interest can be piqued by the individuality and fashion-embracing facet of

Skullcandy, is not being targeted. Skullcandy is in an ideal position to capitalize on its potential

appeal to fashion-conscious teens and young adults and expand to this new market given its

attractive, cool symbolism and vast array of hip product styles. Expanding the narrow image of

the brand and addressing this audience will augment success.

Communication objective

Objectives: To develop comprehension of the brand image and conviction of the

product’s self-expressive use to the target market. By providing the consumer with knowledge

about the nature of the brand’s image, beliefs that will ultimately drive demand for the product

can be shaped. The goal is to reach the new target audience with a message about the benefit the

product provides, establishing a clearer image of the brand in the process.

Target audience

The target audience is composed of single 13-25-year-old males and females who have

an interest in fashion and value self-expression. Their purchases “reflect the emphasis that they

15

place on looking good and having ‘cool’ stuff” (“Experiencers”). The shared need of the

audience that the brand can fulfill is one of self-expression. Typically, separation from the

mainstream, expressing individuality and being “cool” are of particular importance to youth.

Personal fashion and music choices are among the most common delineators of individuality and

personal taste in modern society.

Brand personality

Skullcandy meets the audience’s shared need both with its branding associated with

coolness and through the product itself. Available in a host of colors and designs, from metallic

pink to Rastafarian inspired and vibrant red to sleek navy, the product allows consumers to mark

their individuality, stand out and express their personal style. This addresses the shared need by

giving consumers an outlet for self-expression as well as entrée into the cool lifestyle associated

with the brand.

Skullcandy embodies youth and rebellion. The brand experience revolves around

standing out from the crowd and being unique and bold. Skullcandy offers many different styles

to match the specific personality and style of the consumer. Skullcandy products provide the

base of a cool vibe that the consumer can supplement with their personal fashion choices.

The overarching personality of the brand is cool and young whilst offering a variety of

options allowing it to suit the individual and be integrated into any style. Skullcandy embraces

the vibrancy and vitality of the youth lifestyle. It pioneered its distribution with an action sports

audience but is not exclusively suited to this niche. Although the edgy vibe that action sports

embody is shared by Skullcandy, not all Skullcandy consumers need necessarily belong to this

group. Skullcandy, in its loud, bright and fashion-forward style and branding, has something for

everyone; as its motto suggests, every revolution needs a soundtrack, i.e. Skullcandy’s product.

16

The Skullcandy brand experience hinges on youth and coolness, but beyond that, is what the

consumers make of it, allowing them to express their individuality and personal style.

The mood/tone should be fun, cool and young. It must be palatable to both current

customers and the target. Emphasis on sports can be sacrificed, and references to it in fact should

not appear, in order to appeal to a wider audience. However, the edgy vibe associated with this

lifestyle that is at the core of the brand experience must persist and emanate through the other

features of the ad such as the logo so as to maintain consistency and stay true to the brand’s

roots, avoiding alienation of current customers.

Benefits

The benefit to be communicated is the product’s satisfaction of self-expression needs.

Skullcandy should be positioned as a conduit for expressing individuality and coolness. As one

article describes, its "striking designs draw their graphic imagery from hip-hop culture,

accessorized with everything from rhinestones to faux animal skin. This enables the wearer to

show that he is into the cool ski, surf and skate lifestyle" (Burger). However, as of late, the cool

“ski, surf and skate” lifestyle that Skullcandy was predicated on has expanded to a more broad,

simply cool and youthful one.

The personality of Skullcandy should also be made apparent and comprehensible to the

audience. Skullcandy “symbolizes youth and rebellion” and embodies the motto "Every

revolution needs a soundtrack" (“Investor FAQs”). As such, it encourages boldness and

creativity and allows consumers to express themselves and what makes them cool and distinct.

Support

This message is appropriate to Skullcandy, a brand that was the first to stylize and

individualize in the previously undifferentiated, commoditized headphone product category,

17

“bringing color, character and performance to an otherwise monochromatic space” (“Skullcandy

Reports Record Fourth Quarter and 2011 Financial Results”). Just as Skullcandy brought color to

the category, the brand can also help the individual bring color to his or her life and express a

unique flair.

Skullcandy stands out in its category. Whereas the competition produces products

focused on merely satisfying the utilitarian function of the product, Skullcandy is first and

foremost “more of a lifestyle brand than a consumer electronics brand,” delivering quality

performance on-level with competitors whilst keeping lifestyle in the front seat (“Skullcandy,

Inc.”). Skullcandy is unique as the first to stylize the product, and is famous for its cool branding;

Skullcandy is as cool and unique as it promises to make its consumer, qualifying it for the task.

Evidence can be found in consumer reviews of the product on the company’s website in which

Lowriders are described as “cool-looking,” “pretty sweet,” “stylish,” and “awesome.”

Additionally, one reviewer notes that “they are very comfortable on your ears and even when

sitting around your neck for the style,” suggesting a use beyond the utilitarian for the product;

even when not in use, they can be worn for the sole purpose of augmenting one’s style. Other

reviews add that “the Lowriders make you look cool at school and outside,” with one stating that

“all my friends ask where I got them,” hinting at the social status the product can confer.

Suggestions/other considerations

The advertising should utilize or, at minimum, visibly include the Skullcandy logo and motto

“Every revolution needs a soundtrack.”

18

Creative Concept

:30 TV advertisement: Concept for a live action commercial using a voice-over, supers, a

lifestyle technique and some components of a slice of life commercial. Open on video of a bland

outfit of a white shirt and white pants as a voice-over says “you wouldn’t wear this.” Cut to an

iPod as voice-over says “or listen to this” and boring elevator music plays. Video cuts to tangled,

plain white earbuds as the voice-over says “so why should you use these?” The music abruptly

stops with a record scratch sound effect as, paralleling these boring images, stylish versions are

shown; first the video cuts to a close-up of a hand buttoning a stylish shirt, followed by video of

the same hand pressing play on an iPod and cool/upbeat techno or similar popular, young music

starts. Then the person wearing the shirt, a stylish young man, is shown from behind putting on

Lowriders as the voice-over says the product name, “Skullcandy Lowriders.” Cut to video of the

stylish young man walking down a crowded city street toward the camera as the people on the

street visibly notice him and the voice-over asks “what does your music say about you?” A

stylish girl walking the opposite direction passes the man, then turns and looks back at him over

her shoulder and both smile. The video cuts to a close-up of the product which flashes through

various colors/designs along with a super of the Skullcandy logo and slogan “every revolution

needs a soundtrack” (See attached storyboard).

The big idea is to utilize parallel structure and juxtapose the boring and undifferentiated

items (outfit, music, headphones) with cool and unique examples to demonstrate the product’s

self-expression benefit. This strategy also invokes how music is considered connected to self-

expression and suggests how one’s individuality that stems from taste in music and fashion can

be outwardly portrayed with the product. Showing another person noticing the user of the

19

product will also communicate how it confers a certain status/serves ego needs and makes the

user stand out.

Media Plan

Media Objectives

Audience objectives: To reach a target audience composed of single 13-25-year-old males

and females who have an interest in fashion and value self-expression. They place

emphasis on “looking good and having ‘cool’ stuff” (“Experiencers”).

Message-distribution objectives:

Desired message weight (total audience size) for the campaign: 15 million (gross

impressions, ignoring overlap and duplication)

Geographic reach: Nationwide

Timing: 2-month campaign around the peak selling Christmas season because of the

product’s purchase cycle (not regularly purchased)

Desired average frequency of exposure to the ad: 5

Media Strategy

Classes of media to use in the campaign

Magazine: Teen fashion magazines. The hip and young tone desired for the ad matches that

of the medium. The ad will benefit from the lively, fashionable environment this medium

provides and will also be imbued with its authority on style and what’s cool. The audience

selectivity magazines offer makes it possible to speak directly to the target market with

virtually no waste. The national reach mirrors the availability of the product. Magazines offer

reasonable CPM and proven selling power, and the readers of teen fashion magazines fit the

female portion of the target market perfectly, making it a cost efficient medium for the ad.

20

Cable/satellite TV: Placing the ad on a select cable channel will utilize the medium’s

selectivity, reaching a narrower niche and minimizing waste as opposed to broadcast TV

which would reach many outside of the target market and is also generally more expensive.

A channel with an environment and lifestyle matching the brand can be selected. The channel

can also lend prestige and authority associated with it to the ad.

Radio: Radio can be used to reinforce the other media classes and create synergy. Its

possibilities for the creation of repetition and frequency can enhance success of the ads run in

the more costly print and TV media channels. Radio also reaches those unavailable through

other media, i.e. the males who don’t read fashion magazines. It is cost efficient and

appropriate to the product which is music related.

Media vehicles to use in the campaign

Magazine: Seventeen Magazine: Seventeen is the largest selling teen beauty and fashion

magazine with a primary audience of females 12-19. The median age of readers is 16.5. The

readers of Seventeen fall within the target demographic and psychographic as they are

interested in fashion, cool products and pop culture. Seventeen’s young, hip and vibrant tone

suits the proposed advertising.

Cable: MTV: MTV owns the youth demographic on cable TV. The target of teens and young

adults turn to MTV as an authority on music, fashion, lifestyle and pop culture. The median

viewer age is 21, significantly younger than that of other cable channels, and young adults

12-34 name MTV as the most recognized network (“MTV”). MTV’s cool lifestyle also

provides an appropriate environment for the ad.

21

Radio: Contemporary Hit/Top 40 format that is known to appeal to teens (could utilize a

national radio network to simplify and potentially save money as opposed to the time

consuming process of placing ads locally throughout the nation)

Size/length of ads

TV: 30 seconds, typical commercial length and sufficient time to communicate the message

Radio: 30 seconds

Magazine: full page (costs $48,650 more than a half-page option, but is worth the price to

avoid clutter of being placed near other ads and to enhance impact. Bigger ads also gain more

readership and recall)

Positioning of ads No special positioning, not directly related to a specific show on the

selected cable channel or in a certain time on the radio to vary when ads are broadcast across

various dayparts to expand reach and to save costs

TV: Spot

Radio: Run-of-station (ROS)

Magazine: Standard full page, no special positioning (ROB)

Schedule of insertions:

Magazine: December cover date issue (leading up to Christmas, a prime purchase season; the

young target will be on the lookout for cool products and might ask for it as a gift or receive

money at Christmas enabling them to purchase)

TV: pulsing, 30 spots over a period of 2 months around Christmas so as to never be

completely absent from airwaves but also not so excessive as to wear the audience out

Radio: same as TV but higher frequency, e.g. once daily

22

Budget:

Media Vehicle

Ad size/length

Cost per insertion

Frequency

Total cost for schedule

Audience size

CPM

Seventeen magazine

Full page, 4-color

$138,430

1 $138,430

2,000,000 x 1 = 2,000,000

$69.21

MTV :30 spot $11,884*

30 $356,520

488,000** x 30 = 14,640,000

$24.35 CPM

Totals $410,340

16,640,000

*Cost estimate based on the average rate for 30 seconds of airtime on a top-15 cable network last quarter (from http://www.adweek.com/news/advertising-branding/broadcast-spot-pricing-continues-creep-138106)

**Nielsen statistic from the Cabletelevision Advertising Bureau (from http://www.thecab.tv/php/networkprofiles/12profileData/2012pdf/12MTV.pdf)

References

"About Skullcandy." Zappos.com. <http://www.zappos.com/skullcandy>.

Burger, David. "Skullcandy Feeds Your Head." The Salt Lake Tribune 16 Apr. 2009. The Salt

Lake Tribune. <http://www.sltrib.com/ci_12149760>.

"Competitors (All)." Standard & Poor's.

<http://www.netadvantage.standardandpoors.com.ezproxy.linfield.edu:2048/NASApp/Ne

tAdvantage/cp/companyAllCompetitors.do>.

"Experiencers." Strategic Business Insights.

<http://strategicbusinessinsights.com/vals/ustypes/experiencers.shtml>.

"Investor FAQs." Skullcandy, Inc. <http://investors.skullcandy.com/faq.cfm>.

Magnan, Michelle. "Sounds Like A Hot Investment." Maclean's 124.6 (2011): 40. Business

23

Source Premier.

<https://ezproxy.linfield.edu/login?url=http://search.ebscohost.com/login.aspx?direct=tru

e&db=buh&AN=58152428&site=ehost-live>

"MTV." Cabletelevision Advertising Bureau.

<http://www.thecab.tv/php/networkprofiles/12profileData/2012pdf/12MTV.pdf>.

"MTV." Parents Television Council. <http://www.parentstv.org/PTC/campaigns/Skins/MTV

%20Music%20Television%20Profile.htm>.

Seventeen Media Kit. Hearst Magazines. <http://www.seventeenmediakit.com/>.

"Skullcandy, Inc." International Directory of Company Histories, Vol. 123. St. James Press,

2011. Reproduced in Business and Company Resource Center. Farmington Hills,

Mich.: Gale Group. 2012.

"Skullcandy Investor Presentation." Skullcandy, Inc.

<http://files.shareholder.com/downloads/ABEA5FMQI8/1741148066x0x548289/

DE072634-D64B-4F6A-8E83-A5684A82FCFF/Skullcandy_Investor_Presentation_3-8-

12.pdf>.

"Skullcandy Reports Record Fourth Quarter and 2011 Financial Results." Skullcandy, Inc., 22

Feb. 2012. <http://investors.skullcandy.com/releasedetail.cfm?releaseid=650672>.

Stewart, Heather, and Candace M. Little. "Fast 50." Utah Business Sept. 2010: 44-48. Utah

Business. Utah Business Publishers LLC, Sept. 2010.

24