1. The Activewear Campaign Where movement meets comfort.

2. I. Introduction Executive Summary2 Overview3 II. Situation Analysis Historical context4 Industry Analysis5 Market Analysis6 Competitive Analysis7 III. Objectives Quantitative Benchmarks 9 Measurement Methods 9 Criteria for Success 9 Time Frame 9 IV. Budgeting Method10 Amount10 Justification10 V. Strategy Break Away, Discover, Commit11 VANDALY ADVERTISING, INC. Table of Contents 1 VI. Execution Print copy Strategy12 Television Copy Strategy13 Outdoor Copy Strategy14 Transit Copy Strategy15 Media Plan Media Objectives16 Media Strategy17 Media Choices18 Justification19 Media Scheduling and Buying Outdoor20 Transit21 Print 22 Television 23 Media Flow Chart24 Integrated Marketing Communications 25 VII. Evaluation Criteria26 Methods26 Consequences and Contingencies26

3. VANDALY ADVERTISING, INC. Danskin is a well established and respected brand in the world of dance apparel. However, their line of activewear is generally overlooked. Danskin’s clothing line is created specifically to meet the needs of active women. Vandaly Advertising Inc. has created an energetic advertising campaign to place Danskin among the top competitors in the women’s activewear market. The campaign will be targeting women in metropolitan and and suburban areas. Print, television, outdoor and transit media are Vandaly’s primary Executive Summary 2 advertising outlets. The Danskin “Activewear Campaign” will begin in January 2006 and conclude in December 2006. The media plan allots for more intense advertising in the early fall and spring, due to seasonal outdoor activities. Vandaly Advertising Inc. is dedicated to creating a comprehensive advertising campaign that reflects the spirit of Danskin through insightful advertising. We are confident that our services will greatly benefit Danskin and prominently establish the company in the women’s activewear market.

4. Overview VANDALY ADVERTISING, INC. 3 Vandaly Advertising, Inc. has created a broad and thorough advertising execution for Danskin clothing. Danskin is highly acknowledged in the world of dance apparel, however, our objective is to raise awareness of Danskin as a brand of women’s activewear. Vandaly performed a full analysis of the Danskin brand and market in order to effectively create an advertising plan that would increase consciousness of the product. Included in the plan are analyses of the brand’s situation, history, industry, market and competition as well as a complete description of advertising objectives and strategy. Examples of creative executions in print, outdoor, transit and television media are also presented in the ad plan. Finally, a detailed media plan indicates the allotment of funds for the aforementioned media outlets.

5. Situation Analysis Historical Context Danskin was founded in 1882, as a small family owned business selling athletic apparel to New York ballet dancers. While Danskin remains primarily known for their dancewear, they also specialize in apparel for gymnasts and figure skaters. When a new era of female athletes emerged in the 1980s, Danksin broadened its horizons by sponsoring rock climbers, beach volleyball players, tennis players and Olympic cyclists. As the societal role of women has evolved, so has Danskin. After 120 years, the company still stands for femininity, innovation, quality and superior comfort and fit. Its brand identity has developed along with the modern demand for women’s activewear. With no equal in the market of women’s dancewear, Danskin now turns its full attention to activewear and finds itself competing with brands such as Nike and Adidas, targeting the active woman. VANDALY ADVERTISING, INC. 4

6. 5 Situation Analysis Industry Analysis “Our mission is simply to offer women ‘Clothes for Living.’ This means feminine styles and comfort conscious designs made in performance fabrics such as O2 performance and Supplex with Lyrca.” Danskin’s only production plant is located in York, Pennsylvania. In terms of sales outlets, Danskin products may be purchased online, at a factory outlet or a smaller retailer. Danskin offers many benefits to online purchasers, including 24/7 access to the visual product catalog, easy-to-use online customer service, fastest access to product ordering and especially reduced communication and travel costs. The company has recently added a “B2B online showroom” for business-to- business transactions. The two options for purchasing Danskin products in-store are large factory outlet stores located all over the country or small, private retailers, such as Leslie’s School of Dance in Watkins Glen, NY, or Sequins and Sweats, located in Binghamton, NY.

7. VANDALY ADVERTISING, INC. 6 Situation Analysis Market Analysis The market for women’s fitness is booming. According to representatives from organizations such as the International Health, Racquet and Sportsclub Association and 24 Hour Fitness, women comprise between 48 and 52% of health club members nationwide and the numbers continue to grow. Exercise spas that incorporate spa treatments with Pilates and yoga are emerging nationwide, all targeting women. There was a 16% increase in yoga users between 2001 and 2002. In 2000, the women’s athletic apparel market estimated $23 billion. The market is expected to reach $38 billion this year. Women are the primary sporting goods buyers, making 80% of all athletic apparel purchases. An NPD Fashionworld study shows that the largest group of activewear-buying consumers is between the ages of 35 and 54. Additionally, activewear sales comprise more than 20% of the overall apparel market.

8. Competitive Analysis New Balance S- # 4 worldwide in athletic footwear and apparel; $1.3 billion annual sales in 2003 W- focus largely on footwear and the company practices less market segmentation O- at the # 4 position, New Balance will strive to overcome their competitors in the 1 st, 2 nd and 3 rd positions T- companies such as Champion, who focus solely on activewear Adidas S- net sales in 2004 = $8,471,280,600, in the 2004 Olympics over 4,000 athletes wore the Adidas brand W- more prominent in the European market, advertising does not target young inner-city youth who are a primary target market for competitors O- net income in 2004 increased 21% T- companies that target more American markets VANDALY ADVERTISING, INC. 7

9. 8 Competitive Analysis Nike S- strong brand image, celebrity endorsements, percentage of market share, financial capabilities W- specialize in athletic footwear, less attention to potential female target market O- to further differentiate target markets T- companies, namely Adidas that are more worldwide, thus able to gain international celebrity endorsements in sports, particularly soccer that are less popular in the U.S. Champion S- target women in their advertising and products, specifically sports bras W- little advertising, smaller budget O- possible online development, greater product placement, T- large companies such as Nike that have larger budgets and greater visibility

10. VANDALY ADVERTISING, INC. 9 Objectives Quantitative Benchmarks Increase awareness by 20% Create curiosity and influence purchase intent Increase sales by 7% Measurement methods Recall tests—sample a number of people to gauge awareness of Danskin advertising. Cold call—sample only the people who are exposed to the media we advertise with and ask what ads they recall. If they do not list Danskin, use aided recall to inquire if they remember seeing Danskin ads. Criteria for Success Our goal for recall testing is 25% recall. Our recall goal for cold calling is 15% Time Frame January 2006 through December 2006, with specific phases in February/March and August in television, outdoor and transit advertising. Print ads will appear continuously throughout the time frame.

11. VANDALY ADVERTISING, INC. 10 Budgeting Method Percentage-of-Sales method Amount $5 million Justification Since Danskin is a new competitor in the activewear market, it does not have an established advertising budget. Therefore, the percentage-of-sales method is the most efficient and precise budgeting option. 48% 12% 30% 10%

12. VANDALY ADVERTISING, INC. 11 Strategy Break Away. Discover. Commit. The public image of the Danskin brand is ultimately bound to dancewear. In order to effectively sell Danskin activewear, Vandaly intends to first break away from this perception by emphasizing only the activewear line in the advertising campaign. Next, the target market must discover Danskin for themselves through carefully placed advertisements designed to appeal to the upper-class working woman. These ads feature similar women in unlikely settings, such as a boardroom or ballroom while wearing Danskin activewear, exuding the utmost confidence, balance and beauty. After exposure to the “where movement meets comfort” campaign, these women are inspired to research Danskin products. Once the target tries Danskin, they will ultimately commit to the product and its message by loyally purchasing the activewear.

13. VANDALY ADVERTISING, INC. 12 Execution Print Copy Strategy The “where movement meets comfort” print strategy is the ultimate theme of the campaign. The women pictured in the ads are confident in any situation due to their total comfort in Danskin clothing. The bulk of the budget is being spent in print advertising. Vandaly believes this is the most effective way to reach our target.

14. VANDALY ADVERTISING, INC. 13 Execution The television commercial will feature a beautiful woman attending a formal ball. When she first enters the room, the other guests are shocked by her appearance and gossip amongst themselves. When the camera finally pans out, we finally see that she is not wearing a traditional ball gown, but fully attired in Danskin activewear, radiating confidence. Television Copy Strategy

15. VANDALY ADVERTISING, INC. 14 Execution The outdoor plan will feature the same theme as the print advertisements, only on a larger scale with more emphasis on escaping the stress of the metropolitan lifestyle. Outdoor Copy Strategy

16. VANDALY ADVERTISING, INC. 15 Execution Transit Copy Strategy To continue with the “where movement meets comfort” theme, the transit ads will emphasize the lifestyle of the working woman. The ads will feature women wearing Danskin activewear and showing comfort in any situation.

17. VANDALY ADVERTISING, INC. 16 Execution Media Plan: Media Objectives Target Audience Women Upper and middle class Ages 21-55 3 categories of lifestyle: working, athletic and women who enjoy luxuries Typically reside in suburbs or metropolitan areas Geographic Scope Combination: national placement of television and print ads and regional placement of transit and outdoor ads. Message Weight The entire country will receive equal exposure to television and print ads, while transit and outdoor ads will be focused only in bigger cities and their subsequent suburbs.

18. VANDALY ADVERTISING, INC. 17 Execution Media Plan: Media Strategies Reach and Frequency Reach: 2,989,301 Frequency: 12 Continuity Flighting: Television, transit and outdoor advertising will be subject to seasons of the year, with intense executions in February/March and August. Continuous: Print ads will appear each month in a variety of publications through the course of the year with little variation. Length and Size of Advertisements Print: 8 ½” x 11” Television: 30 seconds Outdoor: 14’ x 35’ Transit: 11” x 35”

19. VANDALY ADVERTISING, INC. 18 Execution Media Plan: Media Choices Media Mix Print: O, Shape, Glamour, Martha Stewart Living, Cosmopolitan Television: ABC Outdoor: Chicago, Dallas, Hartford, Long Island, Los Angeles, Manhattan Transit: Atlanta, Long Island, Manhattan, Philadelphia Competitive Media Assessment Nike: television, print, transit, outdoor, online Adidas: television, print, transit, outdoor, online New Balance: television, print, online Champion: television, print, online

20. VANDALY ADVERTISING, INC. 19 Execution Media Plan: Media Choices Justification Transit and Outdoor: Transit and outdoor advertising will be run in two phases. Phase I of transit and outdoor advertising is split between February and March, depending on regional climates. Phase II of all transit and outdoor ads will run in August. Specific cities were selected due to their large populations of potential target markets. Print: Vandaly selected five monthly magazines for our print advertising that target women and promote aspects of their lives that are consistent with those of Danskin's target consumer. The magazines cover fashion and beauty (Cosmopolitan and Glamour), fitness (Shape), and positive well-rounded lifestyles (O, the Oprah Magazine and Martha Stewart Living). One full page color advertisement will appear in all twelve issues of the year for each of the five magazines. Television: The budget was allotted to 10 thirty second spots in February and 10 more in August on Good Morning America on ABC. These months were chosen because they precede spring and fall clothing lines. Good Morning America is broadcast during a time that the Danskin customer would be watching television, from 7:00 to 9:00 AM. Good Morning America is her program of choice when she is having a cup of coffee and getting ready for her day.

21. VANDALY ADVERTISING, INC. 20 Execution Media Plan: Media Scheduling and Buying Media Budget and Allocations: Outdoor Total = $ 1,482,000.00

22. VANDALY ADVERTISING, INC. 21 Execution Media Plan: Media Scheduling and Buying Media Budget and Allocations: Transit Transit

23. VANDALY ADVERTISING, INC. 22 Execution Media Plan: Media Scheduling and Buying Media Budget and Allocations: Print

24. VANDALY ADVERTISING, INC. 23 Execution Media Plan: Media Scheduling and Buying Media Budget and Allocations: Television Media Budget and Allocations: Total Cost

25. VANDALY ADVERTISING, INC. 24 Execution Media Plan: Media Scheduling and Buying Media Flowchart

26. VANDALY ADVERTISING, INC. 25 Execution Integrated Marketing Communications Coupons Customers will receive coupons after spending a certain amount (i.e. $50) for 10% off their next purchase. Coupons will be sent through mail indicating an upcoming sale date and 15% off purchases on said date. Include coupons in catalog Catalog Customers will receive a catalog through mail with the latest Danskin fashions available for purchase. Promotions “Register Roulette” between 5 and 25% off at the register based on a randomly selected register key. Advertised sale days that include food and door prizes in promotion. Sponsorships Relay for Life Special Olympics Free yoga and pilates classes at local gyms Marathon and Triathlon booths Women’s health fairs

27. VANDALY ADVERTISING, INC. 26 Evaluation Criteria By targeting middle and upper class women ages 21-55 in metropolitan and suburban areas, Vandaly strives to increase curiosity and awareness of the brand as well as increase consumers’ intent to purchase, while increasing sales by 7%. Methods The measurement methods, as indicated previously, revolve around recall and cold call testing. In addition to these methods, Vandaly may pursue post-testing through attitude surveys distributed through mail. Consequences and Contingencies Vandaly operates on an incentive system which will provide for and adjustment if additional sales increase occurs. Should the objectives not be met, the fee will decrease proportionately. The incentive system allows for fair billing directly based on success.

28. VANDALY ADVERTISING, INC. 27 1. Adidas. http://www.adidas.com/us/shared/brandselector.asp Online. 27 March 2005. 2. “Average Circulation for Top 100 ABC Magazines.” Circulation Trends and Magazine Handbook. 2004. <http://www.magazine.org/Circulation/circulation_trends _and_magazine_handbook/11186.cfm>. Online. 12 April 2005._and_magazine_handbook/11186.cfm 3. Billboards.com. Online. 19 April 2005.http://www.billboards.com/ 4. Champion. Online. 27 March 2005.http://www.championusa.com/ 5. Danskin. Online. 24 March 2005.http://www.danskin.com/ 6. Danskin Triathlon. Online. 12 April 2005.http://www.danskin.com/triathlon.html 7. Metropolitan Atlanta Rapid Transit Authority Online. 17http://www.itsmarta.com/ April 2005. 8. Metropolitan Transit Authority. Online. 17 April 2005.http://www.mta.nyc.ny.us/ 9. New Balance. Online. 27 March 2005.http://www.newbalance.com/ 10. Nike. Online. 27 March 2005.http://www.nike.com/ 11. Sports SPIN. <http://www.sportsspin.com/categories/activewear/activewear_http://www.sportsspin.com/categories/activewear/activewear_ stats.html > Online. 3 April 2005.stats.html 12. US Census Bureau. Online. 20 April 2005.http://www.census.gov/ 13. Yahoo!Finance. Online.http://finance.yahoo.com/q/sec?s=DANS.PK 14 March 2005. References