The advertisement objectives address the marketing needs of Peloton Company. Since the company anticipates increasing its market share by 20 percent, it must anchor its goals on the traditional advertising pyramid to create awareness of its main products, including stationary bicycles and treadmills (Germelmann et al. 143). The company should create high market awareness of its products and build brand reputations. Hence, the specific objectives that guide Peloton Company include the following areas.
- To achieve a 10% market growth by selling stationary bicycles and treadmills in 12 months.
- To create increased treadmills product awareness by 5 percent in the existing market.
- To increase brand loyalty by 10 percent in 12 months.
- Advertising Budget
The budget will be around $15,000 to cover different promotional activities, including pricing, social media hashtags, story scheduling, and technical marketing for stationary bicycles and treadmills. There will also be activities for all forms of broadcast, print, social media advertising, promotional designs, graphics and video scheduling, direct marketing, sales promotion, and market research for Peloton’s products such as stationary bicycles and treadmills.
Table 1 below shows the prices for different activities in the budget. The advertisement campaign will ensure that there is a 30 percent reduction in Peloton’s operational costs. The strategies for budgeting will begin with the development of the mission, vision, and strategies that support the business’s growth in a sportsmen’s target market. As a result, Peloton Company will consider various approaches to synergize with the budgetary divisions. Therefore, it will give estimates for the various departments and areas of operations in the firm, especially crucial departments, such as marketing and sales, and administrations, to provide detailed inventory control, operational expenses, purchases, and supplies.
Table 1: Advertisement Budget
|Technical Marketing (pricings of the technology used to create the graphics, social media hashtags, and other stories scheduling||5,500|
Social Media advertising
Promotional Designs, graphics, and video scheduling
Direct marketing and sales promotion
Ongoing Promotional Budget
ü Technical Marketing creating websites, webpages, graphics, and social media hashtags
ü Broadcast Advertising
ü Social Media advertising
ü Promotional Designs, graphics, and video scheduling
ü Direct marketing and sales promotion
- Advertising Strategy
Rational or emotional appeals
Advertisement for the company will focus on the target market to appeal to their emotional and rational needs. Peloton Company will utilize high involvement to move its product to the highest level of feeling scale. Under such an approach, Masui, Genki, and Norimichi maintain that the advertisements will increase pleasure and sensation in the target market (50). Advertising influences customers to consume the products and enhances the credibility of the services of the company.
Product Benefits and Key Messages
The company will use various tools of advertisement to increase product awareness. Thus, it will provide the company with the opportunity to give the clients all forms of communication. Therefore, the company will develop a promotional plan to advertise its products in broadcast and print media. Overall, the company will send periodic news releases to local press and media and trade magazines.
Media to be used and rationale
Television: The advertisement will use television to raise awareness of the product and allow customers to relate to the product. Broadcast advertising impacts the credibility of marketing communication (Masui, Genki, and Norimichi 52). As a result, this will increase the sales that the company will make.
Radio: The Company will also use radio as a medium of advertisement. The radio has an extensive market reach and will help the company to achieve its advertisement objectives.
Social Media Marketing: The use of social media marketing will be suitable for the company. Social media targets a considerable market and emphasizes the current and potential customers, highlighting the new trends in business, upcoming trade shows, and conventions.