⊲ THE STOCK MARKET OF THINGS® ⊳
INTEGRATED MARKETING CAMPAIGN – SERVICE
TABLE OF CONTENTS
EXECUTIVE SUMMARY……………………………………………………………1
DESCRIPTION……………………………………………………………………….2
CAMPAIGN OBJECTIVES…………………………………………………………..2
CAMPAIGN TARGET MARKETS………………………………………………….3
CAMPAIGN ACTIVITIES AND SCHEDULE………………………………………4
BUDGET………………………………………………………………………………5
KEY METRICS……………………………………………………………………….6
BIBLIOGRAPHY………………………………………………………………….6-7
I. Executive Summary
Overview:
StockX is a live virtual marketplace for buying and selling limited edition sneakers, watches, handbags, and streetwear. The company is based out of Detroit, Michigan, and was co-founded in February 2016 by Quicken Loans founder Dan Gilbert and former Campless founder Josh Luber. The marketplace takes place over the internet where buyers can place bids and sellers can place asks via the mobile app “StockX”.
Problem:
While StockX is rapidly growing among students in high school and college, it has gained very little if any visibility from adults and seniors. Because of this, StockX is losing the opportunity to capitalize on sales from a larger and more diverse audience.
We are seeking to increase the diversity of inventory to expand marketing/promotional opportunities. Additionally, we plan to attract an older demographic through social media advertising strategies, special contests/giveaways, discounts, promotional deals, and “Pop-up shops” in malls throughout the United States.
Objectives:
Attract over 1 million new customers who are the age of 30 or older.
Increase sales within the senior and adult markets by $4.1 million.
Establish a more diverse inventory to increase marketing/promotional opportunities.
Influence over 10 million people across each of the three platforms of advertising listed.
Target Market:
Primary: Adults (30-54): Family Income: $50,000+, living in mainly suburban and urban areas, Owner of technological appliances, Desires fashionable clothing/accessories
Secondary: Seniors (55+) Retired, living in mainly suburban and urban areas, Owner of some technological appliances, possesses disposable income
Marketing Strategy:
– TV and Newspaper Advertisements – Contests/Giveaways and Discounts
– Social Media Advertising (Facebook) – Pop-up Shops
Budget/Metrics
In order to carry out this campaign, a total of $1,012,190 will be necessary. This cost will cover all logistics involved with the campaign which is about 7.1% of annual revenue. The success of the campaign will be measured based on the fulfillment of increasing sales within the senior and adult markets by $4.1 million.
II. Description
StockX is the world’s first online consumer for high demand, limited edition products.
The company operates much like eBay, but it authenticates goods in its warehouses before shipping them to buyers. Prices of the products rise and fall by demand and supply similar to the stock market. Customers are able to buy and sell products in a marketplace where they can anonymously trade in a live stock market. StockX exchange offers buyers and sellers stock market-like features such as historical price and volume metrics, real-time bids and asks, time-stamped trades, individualized portfolio tracking and metrics, along with market analysis and news. The company treats shoes, accessories, and other items as investments. Since launching three years ago, StockX has grown to a team of almost 500 and sees more than $2 million transactions daily, about 700 million a year, and projected soon to be more than $1 billion.
III. Campaign Objectives
The overall objective of the campaign is to increase brand awareness among adults and seniors. In order for this to be accomplished, the inventory must be changed to allow for adult and senior clothing and accessory preferences. The current items on the market are based solely on the preferences of teens and young adults. Once the products of StockX become desirable for seniors and adults, activity on social media accounts and the StockX marketplace will increase substantially. In addition, physical stores called “Pop-ups” would be opened to attract an older audience that aren’t as technologically savvy as the youth. We are looking to influence over 10 million new facebook accounts, and of people who are the age of 30 or older, attract 1 million new customers of an older demographic, and increase the sales of seniors and adults by $4.1 million.
IV. CAMPAIGN TARGET MARKETS
Primary Markets
______________________________________________________________________________
Demographics – Ages 30-54, Family Income: $50,000+, mainly suburban and urban areas, Owner of technological appliances, Possesses disposable income
Geographics – Worldwide, primarily U.S. citizens
Psychographics – Desires fashionable clothing/accessories, “Sneaker-heads” Facebook user, Impulse spender, May have interest in stocks or earning profits
The main focus of this campaign will be placed on adults between the ages of 30-54. This is the ideal target Market for StockX because the company has a high potential in reaping large profits from this target market. Most people at this age have some disposable income and are purchasing the largest amount of items in their life time. StockX’s “Stock Market of Things” would be especially convenient for this target market.
Secondary Markets
______________________________________________________________________________
Demographics – Ages 55+; Retired, living mainly suburban and urban areas, Owner of some technological appliances, Possesses disposable income
Geographics – Worldwide, primarily U.S. citizens
Psychographics – Desires fashionable clothing/accessories, Facebook user, May have interest in profiting off the StockX marketplace
The secondary focus of this campaign will be placed on seniors of the age 55 or older. The vast majority of the people in this group are retired and live in smaller homes. Typically, the people in this group own a computer or TV, but not all own a smartphone. They typically possess a considerable amount of disposable income that can be used for investing in the StockX marketplace.
V. CAMPAIGN ACTIVITIES AND SCHEDULE
June
July
Aug
Sept
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Campaign
X
X
X
X
Television
Advertising
X
X
X
X
Newspaper Advertising
X
X
X
X
Contests and Giveaways
X
X
X
X
X
X
X
X
X
X
X
X
Pop-Up Shops
X
X
X
X
X
X
X
X
X
X
X
X
VI. BUDGET
Advertising or Promotional Method
Description
Cost per unit
Total Cost
Facebook Campaign
Facebook users ages 30+ will have StockX advertisements appear on their personal feed
$9.02 per 1,000 views
$90,200
Newspaper Advertising
StockX advertisement 6” by 2” on the Sunday Newspaper during Aug, Nov, Feb, May
$15.86 per 1,000 views
$158,600
TV Advertising
StockX commercials will premiere at 7:00pm Mon-Fri during July, Oct, Jan, Apr
$28.18 per 1,000 views
$281,800
Pop-up shops
Physical live StockX shops are put up temporarily in malls each month
$12,000 x 12 months
$144,000
Social Media Marketing Staff
Employees will update and renovate social media pages
5,000 x 12 months
x 3 Staff Members
$180,000
Pop-up Shop Staff
Employees will supervise and assist customers in shops
3,000 x 12 months x 2 Staff members
$72,000
Contest and Giveaway Prizes
Prizes given away via social media such as shoes, clothing, accessories, etc.
$500 x 12 months
$6,000
Total Expenses
$932,600
15% Agency Commission
$79,590
Grand Total = $1,012,190
We estimate that the campaign will cost $932,600. With the Agency Commission, the total cost will be approximately $1,012,190. If we are able to meet our objective by increasing sales of seniors and adults by 4.1 million, we estimate a 400% return on investments. The success of this campaign will be tracked by social media activity, and a gradual increase in customers who are the age of 30 or older.
VII. KEY METRICS
The effectiveness of these advertising and promotional events will be measured by comparing the amount of older demographic contributing to StockX sales from the beginning and at end of the campaign. Additionally, we will observe the overall trend in demographics at “Pop-up Shops”.
The amount of clicks per view and the amount of activity on social media activity will be measured to deem whether the specific advertising strategies are effective to adult and senior target markets.
The amount of sales from adults and seniors will be measured to ultimately determine whether the Integrated Marketing Plan strategies were effective in attracting a true older audience into the StockX marketplace.
VIII. BIBLIOGRAPHY
Engvall, Nick. “StockX Closes $6 Million Round With Investment from Several High-Profile Investors.” AQ0818-148, StockX, 20 Mar. 2017, stockx.com/news/stockx-closes-6-million-round-investment-several-high-profile-investors/.
Graham, Adam. “Detroit-Based Online Sneaker Market’s Stock Soaring.” Detroit News, AP, 25 May 2018, www.detroitnews.com/story/news/local/detroit-city/2018/05/24/detroit-news-stock-day-detroit-josh-luber-dan-gilbert-sneakerheads/35333399/.
Ismael, Amir. “Meet StockX, the Sneaker Resale Startup Making Sure You Never Get Scammed When Buying Collectible Shoes Online.” Business Insider, Business Insider, 24 Jan. 2019, www.businessinsider.com/how-does-stockx-work-2019-1.
McAlone, Nathan. “Why Cleveland Cavs Owner Dan Gilbert Cofounded a ‘Stock Market for Sneakers’.” Business Insider, Business Insider, 29 June 2016, www.businessinsider.com/dan-gilbert-cofounded-stockx-a-stock-market-for-sneakers-2016-6.
Noble, Breana. “Dan Gilbert’s StockX Completes Investment Round, to Hire 1,000-Plus.” Detroit News, AP, 13 Sept. 2018, www.detroitnews.com/story/news/local/detroit-city/2018/09/12/dan-gilbert-stockx-investment-hiring/1272365002/.
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