1. Media Plan: iPod By: Kaci Eckel and Ashley Farrar

2. Situational Analysis  Product: iPod  Target Market: Adults 18-54  Sales: In the first quarter of 2011, Apple sold 19.45 million iPods, down 7% from one year ago.  Distribution: iPods are sold online, in Apple stores, and at Wal-Mart, Best Buy, Radio Shack, Circuit City and Target.  Competition: Microsoft Zune, SanDisk Sansa Fuza & Sansa Clip, Creative Industries Zen player.  Advertising History: The most effective and most recognizable ads that Apple runs are for the iPod. The ads with a brightly colored background and a black silhouetted figure dancing to music with a white iPod and white headphones have been Apple’s ad of choice. Throughout the years, the ad has changed some, but the desired outcome of the ad has stayed the same. page 1

3. Marketing Objective  For iPod to own 75% of the mp3 player market consistently for the next 5 years. page 2

4. Advertising Objectives  Accentuate the “cool factor”: Use advertising to remind the consumers of how stylish and hip the iPod is.  Separate from the competition: Apple did this with the “Mac & PC” ads and it proved to be successful. Show what makes the iPod different than other mp3 players on the market.  Stay at the top: Use advertising to stay at the top of the minds of the consumers, especially during times when big purchases are made, like the holiday season. page 3

5. Media Objectives  Target Audience: Adults, ages 18-54, with a college education who earn 60,000-150,000+ a year.  Geography: iPod will encompass the whole nation in their marketing efforts.  Seasonality: Year round, with most saturation during the holiday season and the end of summer.  Budget: $72 Million page 4

6. December ‘12GRPReachFrequency Network TV 7006610.6x Cable TV 200633.2x Magazine 14290.5x Total 9149010.2x Reach & Frequency page 5  Our media plan is designed in a way that gives the potential to have a 90% reach and a frequency of 10 during the highest period of advertising.

7. Media Strategies  Primetime and Early News Television will be our main medium to accomplish the media objectives.  Using network television ensures that we reach a very large majority of our target audience.  We chose primetime because it has the highest HH rating* and generally attracts more viewers than any other day part.  Early news was chosen because it has the second highest HH rating* and during the holiday season there are many segments on the early news that discuss gift ideas.  Cable television is huge among our target audience. Because of this, we will advertise on popular cable networks.  We chose to advertise on MTV during the summer months. This is because the younger half of our target audience is on summer break, giving them more time to watch television.  During the holiday season we chose to advertise on TBS because of the amount of holiday movies and shows that air during this time. Families will come together to watch these movies, making it the perfect time to advertise the iPod.  Place ads in magazines that appeal the most to our target market.  According the MRI report of iPod users, many of them read magazines. And because of the long shelf life of magazines, many people would be exposed to the advertisement.  Instead of focusing on advertising during certain parts of the year, like television, we kept magazine advertising more consistent throughout the year. This is because people hold on to and continue to look at a magazine long after the initial purchase. *Data from The 2011 Thumbnail Media Planner. Page 27. page 6

8. Media Strategies page 7 Category$ AmountPercentage Early News$5,250,0007% Primetime$35,100,00049% MTV$11,755,00017% TBS$12,675,00018% Car & Driver$546,0121% Cosmopolitan$2,844,0004% ESPN$1,288,3202% InStyle$554,9761% Rolling Stone$1,096,6201% Total$71,109,928100%

9. Media Tactics page 8  Network Television  Early News  $5,250,000  5 weeks during the 4 th quarter  500 GRPs total  :30 Spot  Primetime  $35,100,000  3 weeks during the 1 st quarter  5 weeks during the 3 rd quarter  8 weeks during the 4 th quarter  1600 GRPs total  :30 Spot  Cable Television  MTV  $11,775,000  4 weeks during the 2 nd quarter  9 weeks during the 3 rd quarter  650 GRPs total  :30 Spot  TBS  $12,675,000  13 weeks during the 4 th quarter  650 GRPs total  :30 Spot  Magazines  Car and Driver  $546, 012  4 Color, ½ Page, 6 Issues  Cosmopolitan  $2,844,000  4 Color, Full Page, 12 Issues  ESPN  $1,288,320  4 Color, Full Page, 6 Issues  InStyle  $554,976  4 Color, ½ Page, 6 Issues  Rolling Stone  $1,096,620  4 Color, Full Page, 6 Issues

10. Media Flowchart page 9

11. Budget Worksheet 1 st Quarter 2 nd Quarter3 rd Quarter4 th QuarterTotal Network Television GRPs30005001300 2100 Cost$5,850,0000$11,250,000$23,250,000 $40,350,000 Cable GRPs0200450650 1300 Cost0$3,900,000$7,875,000$12,675,000 $24,450,000 Magazine GRPs27193230 108 Cost$1,599,204$1,109,218$1,841,026$1,780,480 $6,329,928 Total GRPs 32721998219803508 Cost $7,449,204$5,009,218$20,966,026$37,705,480$71,129,928 page 10

12. Summary  By implementing our media plan, Apple and the iPod will effectively and efficiently reach the target market of adults 18-54. This plan is designed to keep Apple in the forefront of the minds of consumers, especially during the busy holiday and back to school shopping seasons. After researching your brand, we are positive that we can help increase and maintain awareness of your already successful brand. page 11

13. Calculations [network TV] Prime Time  1 st Quarter (3 weeks x 100 GRPs) = 300 GRPs  2 nd Quarter (no advertising)  3 rd Quarter (5 weeks x 100 GRPs) = 500 GRPs  4 th Quarter (8 weeks x 100 GRPs) = 800 GRPs Cost  1 st Quarter (300 GRPs x $19,500) = $5,850,000  2 nd Quarter (no advertising)  3 rd Quarter(500 GRPs x $22,500) = $11,250,000  4 th Quarter(800 GRPs x $22,500) = $18,000,000 Network Television Total = $35,100,000 Early News  1 st Quarter (no advertising)  2 nd Quarter (no advertising)  3 rd Quarter (no advertising)  4 th Quarter (5 weeks x 100 GRPs) =500 GRPs Cost  1 st Quarter (no advertising)  2 nd Quarter (no advertising)  3 rd Quarter (no advertising)  4 th Quarter (500 GRPs x $10,500) = $5,250,000 Early News Total = $5,250,000 page 12

14. Calculations [cable TV] Music Television Network (MTV)  1 st Quarter (no advertising)  2 nd Quarter (4 weeks x 50 GRPs) = 200 GRPs  3 rd Quarter (9 weeks x 50 GRPs) = 450 GRPs  4 th Quarter (no advertising) Cost  1 st Quarter (no advertising)  2 nd Quarter (200 GRPs x $19,500) = $3,900,000  3 rd Quarter (450 GRPs x $17,500) = $7,875,000  4 th Quarter (no advertising) MTV Total = $11,775,000 Turner Broadcasting System (TBS)  1 st Quarter (no advertising)  2 nd Quarter (no advertising)  3 rd Quarter (no advertising)  4 th Quarter (13 weeks x 50 GRPs) = 650 GRPs Cost  1 st Quarter (no advertising)  2 nd Quarter (no advertising)  3 rd Quarter (no advertising)  4 th Quarter(650 GRPs x $19,500) = $12,675,000 TBS Total = $12,675,000 page 13

15. Magazines Total Audience/Universe = GRP Universe of Adults 18-54 is 389 Million*  Car And Driver (10.994M/389M) = 2 GRPs  Cosmopolitan (18.315M/389M) = 4 GRPs  ESPN the Magazine (14.225M/389M) = 3 GRPs  InStyle (10.329M/389M) = 2 GRPs  Rolling Stone (12.742M/54M) = 3 GRPs Total GRPs = 14 GRPs *Data from The 2011 Thumbnail Media Planner. Page 5. Calculations [magazine] page 14

16.  Car and Driver  4 Color, ½ Page, 6 issues.  $91,002 x 6 = $546,012  Price Includes Frequency Discount  Cosmopolitan  4 Color, Full Page, 12 issues.  $237,000 x 12 = $2,844,000  No Frequency Discount Available  ESPN the Magazine  4 Color, Full Page, 6 issues.  $214, 720 x 6 = $1,288,320  Price Includes Frequency Discount  InStyle  4 Color, ½ Page, 6 issues.  $92,496 x 6 = $554,976  Price Includes Frequency Discount  Rolling Stone  4 Color, Full Page, 6 issues.  $182,770 x 6 = $1,096,620  No Frequency Discount Available Calculations [magazine] page 15