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Expand AA's Reach to Black Millennials
- 1. American Apparel Digital Strategic Plan 1 Sounia H. Johnson Johns Hopkins University
- 2. Background We’ve put together some recommendations to help expand AA’s social media presence and highlight how the company is reaching out to an undeserved audience-African American consumers.
- 3. Executive Summary Company Overview Founded in 1989 by Dov Charney Made in the U.S.A Vertically integrated (designs, manufactures and distributes its own clothes and does not outsource overseas) Sweat-shop free environment Geared for urbanites within the 23-35 age range
- 4. Proposed Strategy and Tactics • Expand consumer demographic base to include black consumers, particularly black millennials; • Deploy targeted digital multicultural campaigns through the use of earned, paid, and owned by: • Developing partnerships with key black influencers (earned media); • Launching various paid advertising campaigns on key social channels (focusing on native advertising ) with the goal of boosting e-commerce sales. • Emphasizing on corporate social responsibility (CSR) by updating American Apparel’s existing (and outdated) CSR page to champion current social issues that are relevant to black consumers (owned media).
- 5. Social Media Audit The following social media audit provides a summary of American Apparel’s social and digital presence. This audit explores how American Apparel can leverage social media platforms to convey a fun, inviting and inclusive identity with a positive outlook on the future. Further, leveraging social media platforms is a great way for American Apparel to fulfill its rebranding objectives while positioning itself as an inclusive fashion brand that appeals to everyone particularly black consumers. Findings and recommendations for this audit will highlight key deliverables American Apparel must achieve to become inclusive.
- 6. Research Summary • Very little diversity reflected online (either through owned, paid or earned media) • Online engagement is very static. Does little to actively engage its followers on Facebook Twitter, or Instagram. • Fresh clothing content updated regularly • Very acting in promoting its brands on social media channels
- 7. Target Audience. Who are they? Black millennials for the most part ( 22-35 years old) Black and Educated Technologically savvy “ Among the highest percentage users of smartphones and social media”
- 8. Tactic & Campaign At a Glance Paid Media Earned Media Owned Media Interactive banners display on : Instagram, YouTube, and Facebook, Native advertising on black digital Publications that can be accessed on mobile platforms. Followers are Redirected to E-commerce platform to buy Ballerina Be Like Misty leotard Outreach to key black Influencers (journalists, fashion bloggers , especially on YouTube where black fashion bloggers have a strong presence Rekindle American Apparel’s Corporate social responsibility Advocate CRS through owned media channels : Twitter Facebook YouTube LinkedIn Instagram Fundraiser on crowdsourcing platforms. Proceeds will fund one year of ballet courses to young black girls age range 8- 12 years old. Celebrity Endorsement with iconic Misty Copeland first black woman millennial promoted to principal dancer at American Ballet Theater
- 9. From Trashy to Classy “Be Like Misty” Campaign (Paid Media) Negative branding under Dov Charney’s reign Opportunities to shift bad perception
- 10. Collaboration with fashion bloggers (earned media) Because I am fabulous http://www.becauseiamfabulous.com/blog/ Najad Diamond http://www.najadiamond.com/ Rosario Dawson
- 11. Corporate Social Responsibility (CSR) Objectives (owned & paid media) • Rekindle American Apparel’s CSR initiatives • Champion positive initiatives that resonate with black consumers through its website (corporate content) • Promote awareness through owned media channels (key social media platforms) • Update outdated content on American Apparel’s website. Current CSR page displays outdated CSR initiatives. • Also leveraging crowdsourcing to launch (blend of paid, earned and owned media) “ Be Like Misty “ campaign to raise money for budding ballerinas. Proceeds will fund one year tuition of ballet classes for young black girls.
- 12. Evaluation of Strategy • Use of advanced social analytical tools to measure: • Social engagement on social media channels, number of page views per day and throughout the duration of the campaign; • Monitoring likes and social sentiment; • Compare sales before, during and after the launch of the marketing campaign by tracking codes issued to consumers to redeem coupons that can be used for future purchases; • Compare traffic of American Apparel’s e-commerce website before the launch and after the launch of its campaign; • Measuring click through rates of consumers who click on banners and determining when a click through rate translates into an active sale;
- 13. Measuring Engagement Exposure Engagement Action How many hits on each social platforms Duration of visit on each page? Visits in stores or e-commerce platform Amount of comments Any relevant posts, tweets, comments? Save wish list items ( considering purchase) Amount of likes Are comments being shared/re- twitted? Purchase the “ Be Like Misty” Leotard Visits How many visitors per day, per week? Tells friends Amount of followers Is the follower’s participation passive, neutral, active, passionate? Write about shopping experience Brand loyalty!
- 14. Expected benefits and Conclusion Financial Objectives: • Increase clothing consumption among black women by 40% in 3 months; • Achieve positive perception shift of the brand among black women millennials by 80%, and • Boost engagement among black women with the goal of achieving an ROI that exceeds the marketing budget by 55% which corresponds to $1 million profit; Communication Objectives: • Communicate a positive brand experience among black women; • Raise substantial donations to finance ballet classes; • Forge strong ties with key black influencers; • Position itself as brand that champions positive movements (brand stewardship), and • A brand that exemplifies confidence and is unafraid of the status quo.
- 15. References The Bill & Melinda Gate Foundation. (2013). Deepening engagement for lasting impact. Retrieved : http://nnpa.org/wp-content/uploads/2013/06/African- American-Consumer-Report-2013.pdf MacBrige, K. (2015). Here’s what Facebook knowns about ethnic minorities on social media. Retrieved from the Poynter Institute website: http://bit.ly/1HmJGuY Townsend, M. (2015). American Apparel vote against boosting shares. Retrieved from: http://www.bloomberg.com/news/articles/2015-07-17/american- apparel-investors-vote-against-boosting-share-total
Notes de l'éditeur
- we've put together some recommendations to help expand AA's social media presence and highlight how the company is reaching out to an underserved audience - African American consumers.
- With Paula Schneider as American Apparel’s newest CEO, the company wants to establish itself as a youthful and fun brand that appeals to urbanites while disowning its sexually-imbued past. However, while American Apparel is striving to communicate a positive image of its brand, it is doing very little if anything to target black consumers. Given the enormous buying power of black consumers, American Apparel must shift its current adverting approach towards one that is more inclusive and reflective of today’s multicultural landscape. This can be accomplished by leveraging paid (native advertising especially), earned and owned media as part of its marketing-mix.
- Strategy and Goals: As part of its long term digital strategy, American Apparel should foster an inclusive brand identity that resonates with black consumers and revise its advertising approach to reflect the growing segment market and spending power of this demographic. This strategy should not be part of an isolated short-term targeted campaigns, but instead, should be reflective of a broader enduring multicultural approach designed to cultivate long-term brand loyalty with black consumers. If deployed correctly, the ultimate goal of this strategy is to convert black consumer engagement into increased revenue for American Apparel.
- Preliminary online assessment: Strengths: Currently, American Apparel’s online social media channels (Twitter, Pinterest, Facebook, Instagram) underscores a socially-vibrant media presence that showcases updated visual content reflective of its newest collections. New clothing items are always promptly displayed and communicated to online followers. Weaknesses: While a vigorous online presence reflects positively on American Apparel, much more remains to be done to engage followers. For example, American Apparel’s inability to actively engage its consumers underlines a need for improvement. Its social media channels are for the most part static and fail to actively engage online followers. Another weakness of American Apparel reveals minimal effort in diversity outreach with just a hand full of minority models. Opportunities: Today’s current digital landscape offers the perfect opportunity for American Apparel to wage a consorted effort through the use of earned, owned, and paid media to attract black consumers. Threats: Missing an opportunity to capitalize on the enormous and undisputed buying power of black consumers. Becoming a complacent brand that reflects a dominant white perspective.
- Research Summary of American Apparel : Social media channels controlled by American Apparel reveal very little engagement with online followers. Social media channels are very static and only used to communicate information rather than engage consumers proactively. Although very active throughout the social blogosphere, American Apparel’s online media outreach is disproportionately geared towards white, Asian and Hispanic women with just a handful of cherry-picked black models to project ethnic inclusiveness. Recommendations: American Apparel should deploy innovating online paid media campaigns that reflect the growing segment market of black millennials. Doing so makes sense for American Apparel. In addition, it is also a fiscally sound decision given the enormous buying power of black consumers. American Apparel should also be responsive and engage its followers particularly on Facebook.
- Why target black consumers? Black consumers hold: Significant buying power project to reach $1.3 trillion by 2017 which means roughly about one trillion dollars annually! (Nielson) Black consumers are also growing faster than the general market (McNeil) Online consumption habits of black consumers According to the poynter institute blacks are: Three times more likely than the general population to make a status update; Three times more likely to upload a video Six times more likely to physically check-in to a location on social media; 39 percent use social media to discover content 51 percent click on video ads.
- Background: This digital strategic plan organically incorporates paid, owned and earned media to boost black consumer engagement with the goal of increasing profit while cultivating positive brand stewardship.
- Objective The objective of the paid media campaign is to seize the opportunity to collaborate with Misty Copeland to shift the negative perception of black women to something empowering, mystical and elegant, targeting online digital platforms (paid advertising). “Be Like Misty” is a campaign that honors the historical achievement of Misty Copeland who was promoted to the rank of principal dancer at the prestigious American Ballet Theater, becoming the first black woman principal of this prominent institution. Tactics The “Be Like Misty” campaign will be advertised to black women as follows: On digital platforms (Instagram, Facebook, YouTube, key digital black publications and blogs) through the use of interactive banners. Followers will see Misty Copeland dancing in an elegant black leotard, click the interactive banners and be redirected to American Apparel’s e-commerce platform to buy “ Be Like Misty” merchandises including American Apparel’s signature black Leotard. Shoppers will have the option to donate dollars that will go towards funding young aspiring black ballerinas. Shoppers and prospective shoppers will also have the ability to click on a link embedded in a native advertising, and be re-directed to a crowdfunding website to donate money for the “Be Like Misty” crowdsourcing campaign designed to raise money and finance a year worth of ballet classes for aspiring young black ballerinas. Native advertising on the digital version of the LA Times, black digital publications, Facebook, Instagram, and YouTube. Native advertising will provide black audience two options with corresponding links. The first option is to purchase American Apparel’s black leotard, the second option for undecided shoppers, is to redirected them to the crowdsourcing website to donate funds. A win-win situation!
- Objective: The objective of the influencer engagement phase is to forge strong relationships with key fashion bloggers, inviting them in return to exclusive collection openings, granting bloggers access to American Apparel’s factory to get a first look of how clothes are manufactured, distributed and sold (Vertical integration). Tactics: Giving bloggers exclusive insights and supplying them with free clothing samples asking them for their honest feedback and opinions. Engaging influencers on an equal footing is key to boosting black consumers engagement as authentically and organically as possible. Influencers don’t have to be limited to fashion bloggers, and can also be acting personalities such as that of Rosario Dawson who embodies elegance.
- Objective: The objective is to leverage CSR to re-position American Apparel as a brand with conviction, character and the fortitude to stand out for positive initiatives. Crowdfunding: The “Be like Misty” campaign consists of raising money and matching every donation dollars to fund young black girls to ballet school for one year! Associating itself with a positive cause will differentiate and position American Apparel as an organization known to champion positive causes while standing out from its competitors such as Urban Outfitters an American Eagles. Brand stewardship should be central to American Apparel’s outreach and heavily promoted on its owned media channels (Instagram, Facebook, its own website, Pinterest, Google+, YouTube, Twitter). Tactics: The use of crowdfunding platforms such as Just Giving. This fundraising campaign should also be heavily promoted on American Apparel’s own website replacing its outdated CRS content to reflect newly-championed initiatives that resonate with black consumers. In addition, paid advertising through the use of native advertising should also be used to promote the “Be like Misty” crowdfunding campaign.
- Evaluating the success of this converged digital PR strategy depends on an abundance of factors. However, a reliable approach is to simply compare sales before, during and after the launch of the campaign and whether or not the sales are directly correlated to PR efforts. This can be determined by measuring click-through rates and determine how many viewers who click through each paid advertising platforms end-up making a purchase.
- Measuring Engagement: The above chart provides of way to measure engagement. However as iterated by the Bill and Linda Gates foundation “ There is no “cookie cutter” solution to media measurement, no single set of ideal metrics and measurement practices we can suggest that will be right for your project “ With this in mind, this chart shows a linear evolution from exposure to engagement and action with the goal of translating social engagement into financial profit, ultimately achieving brand loyalty.
- Conclusion The success of this digital PR strategy is contingent on its ROI (financial outcome) and whether or not American Apparel manages to shift its brand perception to broaden the scope of its demographic (communications objectives). Achieving financial and communication objectives can be attained with a sound PR strategy that combines a paid, owned and earned approach to bring tangible results. Given American Apparel’s declining appeal and stark financial outlook, remaining complacent and comfortable in its current adverting approach will further spiral the iconic brand deeper into financial abyss. By embracing diversity and capitalizing on the enormous buying power of black consumers, American Apparel can turn itself around all while positioning itself as a socially-responsible, innovative and progressive brand that stands out as unique and original.