TABLE OF CONTENTS

Executive Summary Strategic Summary Chart Introduction and Background Research Summary Secondary Research Primary Research SWOT Analysis Research Conclusion Campaign Theme and Positioning Campaign Theme Positioning Statement Target Market Geographic Focus Core Marketing Strategy and Plan Introduction Objectives Mobile Application Website Social Media Catalog Sky Clubs Promotional Flyer Email Campaign In-flight Video Time Line Budget Appendix Appendix 1: Perceptual Maps Appendix 2: RITA Key Findings Appendix 3: RITA Key Findings (continued) Appendix 4: RITA Key Findings (continued) Appendix 5: Delta Technology Amenities Appendix 6: Cost of Wi-Fi, Delta Departures, and Delta Sky Clubs Appendix 7: Inverted Triangle Appendix 8: Campaign Measurables and Goals Appendix 9: SkyMall Mobile Appendix 10: SkyMall Website Appendix 11: SkyMall Magazine (Featured Product Page Spread) Appendix 12: SkyMall Magazine (Augmented Reality) Appendix 13: SkyMall Magazine (QR Code Spread) Appendix 14: Drinking Glasses Appendix 15: Drink Coaster Appendix 16: Promotional Flyer Appendix 17: Email Campaign Appendix 18: In-flight Video Appendix A: Interview Guide Appendix B: Quantitative Survey References i ii 1 1 2 3 4 4 4 4 5 5 5 5 5 5 6 7 7 7 8 9 9 9 9 10 11 11 11 12 12 13 14 14 15 16 17 18 19 20 21 21 22 23 24 26 27 30

SkyMall Mobile: Shop on Cloud Nine

EXECUTIVE SUMMARY
SkyMall is a multi-channel retailer that sells a wide variety of products, spanning multiple categories. At its core, SkyMall is a catalog service that focuses their efforts on travelers of commercial airlines. The company is known for a product offering that is both interesting and innovative. The following integrated marketing plan focuses on the development of various channels through which SkyMall sells their products, focusing primarily on enhancing their strength online and in the mobile application sector in order to drive sales. Extensive use of primary and secondary research provided a foundation for the campaigns strategic direction and contributed to our marketing recommendations for SkyMall. Secondary research focused heavily on analyzing SkyMall and their current competitors in order to identify areas that SkyMall could leverage their competencies in relation to others in the marketplace. Additionally, areas of opportunity were identified through research on the airline travel industry in general as well as information that contributed to a customer profile of our target market. Primary research was conducted in the form of in-depth interviews with individuals that fit our target and surveys that were distributed online to frequent flyers. Examination of the research findings identified several opportunities to improve SkyMall's operations and to ultimately achieve one of our main objectives: increase sales per flight. SkyMall is unique in the sense that it provides more than an outlet for shopping, it provides a shopping experience. SkyMall is a convenient retailer that not only sells products, but makes the experience fun! The SkyMall Mobile: Shop on Cloud Nine campaign leverages this aspect and takes advantage of current trends in the marketplace in an effort to reach frequent, business travelers with a high propensity to purchase from one of SkyMalls nine channels. Specifically, a mobile strategy is thoroughly developed and serves as a basis for our entire plan. In order to effectively execute our plan, we developed various forms of advertising and direct marketing, in addition to developing and improving various offerings for SkyMall. The campaign is developed within our $500,000 budget through the allocation of money to our most effective methods. To launch the SkyMall Mobile: Shop on Cloud Nine campaign Delta Airlines was chosen as the best partner for SkyMall due to their shear size, hub locations, and amenities for business travelers. Four distinct Delta Airline and business-heavy travel locations from around the country were chosen as a focus for the campaign. The campaign focuses on a three-month period during the summer, with the ability to expand to other locations, months, and airlines after measuring the success in this test area. Our campaign will effectively reach our main target audience, and create spillover into other segments in order to create positive results in the form of increased sales and awareness for SkyMall.

SkyMall Mobile: Shop on Cloud Nine

STRATEGIC SUMMARY CHARTART

Reasoning
-Delta is the largest domestic airline carrier -Delta is the most tech-friendly airline carrier and all domestic flights are outfitted with Wi-Fi -Deltas hubs are stationed in some of the countrys busiest airports -June, July, and August experience the most passenger traffic across all flights -Business flight traffic is more constant across months, allowing us to capture maximum spillover sales to population outside of our target -Summer months will provide for more incremental sales gains -Detroit, Atlanta, and JFK are considered Deltas major hubs -LAX is heavily utilized by the frequent business traveler -Geographically, these airports cover all areas of the country -These airports offer a large number of Delta Sky Clubs -Deltas SkyMiles, is the largest airline loyalty rewards program in the world -The majority of business travelers are members of frequent flier programs -The majority of our target market owns smart phones -Almost half of the market operates on the Android operating system -Marketing via mobile devices allows us to reach consumers at any time -The SkyMall website has small, cluttered text, and is not user-friendly -The website is especially inconvenient on mobile devices, where viewing screens are much smaller -Social networking sites are among the most visited sites on the internet, and the popularity of these sites are growing among our target audience -Social media allows for consumers to interact with companies, share opinions about products, receive promotions, and stay up to date with the company -Our primary research indicated that people within our target market still desire to shop via catalogs -Our target market is tech-savvy and early adopters of technology -The catalog is still the primary interaction that individuals have with SkyMall, and their experience is characterized by fun and engaging content -Sky Clubs are award-winning clubs located in airports that cater to high class, frequent business travelers -Free Wi-Fi, electronic charging stations, concessions, newspapers, and magazines highlight the premium features of Sky Clubs that draw in travelers -Large number of Sky Clubs in targeted airports -1st Class and Business Class travelers are able to board the plane before all other passengers and in turn, have longest time on airplane before departure -All Delta travelers must proceed through the boarding gate before finding his or her seat

Strategy
Target Delta Airline Passengers -Specifically target frequent business fliers Focus our campaign during one quarter (June, July, and August)

Target our campaign at the following airports: Atlanta, JFK, Detroit, and LAX

Target frequent fliers via Deltas SkyMiles program Mobile Strategy -Update iOS mobile application -Create Android mobile application Website Strategy -Reconstruct website -Create mobile-optimized website Social Media Strategy -Make social media links more visible and appealing on website Catalog Strategy -Integrate QR codes into catalog with product reviews and demonstration videos on the mobile website -Include augmented reality in catalog Sky Clubs Strategy -Offer SkyMall/Delta branded glasses and coasters at the bar, featuring QR codes and campaign slogan -Stock Sky Clubs with SkyMall catalogs Airport Advertising Strategy -Distribute promotional boarding passes that feature a QR code, scratch off to all 1st and business class travelers as they board the plane - Have Delta employee make announcement targeting 1st and business class passengers, asking them to refer to their special boarding pass as they board the plane Email Strategy -Target past SkyMall customers with email blasts that highlight new mobile application and its improved features

-SkyMall already has an internal list of consumers that receive their emails -Past customers are more likely to purchase from SkyMall than people who are unfamiliar of the company

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SkyMall Mobile: Shop on Cloud Nine

INTRODUCTION/BACKGROUND
Ones flying experience is what they make of it. Traditionally, consumers did not have many options for entertainment and shopping during travel, but as Wi-Fi and other technology capabilities continue to advance, companies like SkyMall are able to enhance flyers travel experiences. SkyMall was founded in 1990 and has developed into a multi-channel direct marketing company offering high-quality, innovative products through their catalog, website, and mobile application. SkyMalls overarching goal is to provide consumers with more than just cool products; they aim to provide an entertaining, fun shopping experience for airline travelers. In the beginning, consumers were limited to ordering through the catalog channel once departing from the plane. Through partnerships, SkyMall has expanded to provide media in airplanes and airports, including jet way posters, in-flight video, flight attendant live announcements, and messages with ticket confirmations among many others. Also, loyal SkyMall customers are mailed print catalogs and receive email updates where they can view new products and promotions. Over the years, SkyMall has discovered that most passengers make their buying decision at 30,000 ft. So, as technology continues to revolutionize, SkyMall has been able to expand their number of channels and make the shopping experience more convenient for airline passengers. In addition, these technologies have been very beneficial in reaching their target market: frequent travelerstypically business peoplewith little time to shop.
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Research Summary
Research Objectives: 1. Examine brand loyalty for different travel service providers (flights, rental cars, and hotels) 2. Examine time usage during travel 3. Assess usage of technology while traveling 4. Assess purchasing behavior 5. Assess SkyMall brand awareness Research Method: The team collected an extensive amount of information using various sources including: in-depth interviews, a survey, and a wide range of secondary sources. Our secondary research played a large role in examining SkyMall and its competitors, as well as the airline industry. The in-depth interviews provided information that guided the creation of our survey that was taken by 270 respondents. This survey provided the team with valuable insights on frequent flyer demographics, travelers buying patterns, behavior during travel, and SkyMalls brand awareness. The results of the qualitative and quantitative research guided the creation of SkyMall Mobile: Shop on Cloud Nine.

SkyMall Mobile: Shop on Cloud Nine

Secondary Research
Secondary research was gathered and focused on four topics: SkyMall and their competition, travel statistics, Delta Airlines, and traveler demographics. SkyMall and Competition: General secondary research focused on SkyMall and competition in the industry. SkyMall research emphasized the history of the company, mission, use of technology, different ways to order, and other basic facts. SkyMall was compared to Herrington, Sharper Image, Amazon, and Brookstone by multiple factors including the use of social media, advertising, demographics, customer service, website and catalog organization, and shopping/purchase capabilities of each were considered. Key findings: 3 A recent Delta and Amazon partnership provides passengers with free on-flight Wi-Fi access. SkyMall and its competitors sell products through a variety of channels including the internet, mobile applications, retail stores, and printed catalogs. (For a perceptual map comparing these competitors please refer to Appendix 1.) 1,2,7,13,14 15 SkyMall has a mobile app for the iPhone, iTouch, and Blackberry but not for the Android or iPad. RITA: The Research and Innovation Technology Administration (RITA) offers vital transportation statistics and analysis, and supports national efforts to improve education and training in transportation-related fields. RITA works to ensure that the nation's transportation research investments produce results for the American people. Key findings: In 2011 Delta had 92,642,000 passengers, the most among all domestic airlines. (For a graph representing exact airline passengers data, please refer to Appendix 2.) Over half of Deltas flights and passengers departed from Atlanta. Airports in New York City (JFK), Detroit, and Los Angeles also accounted for a large portion of Delta flights. (For exact number of passengers in Deltas hubs, please refer to Appendix 3.) June, July, and August experience the most Delta scheduled departures and number of Delta passengers through all major domestic airports. (See Appendix 4 for a complete chart of monthly departure and passenger data.) 13 Delta Airlines: Key findings: Deltas quality, convenient technology services stand above the rest, including their mobile check-in, mobile app quality, and the number of planes with Wi-Fi. (Refer to Appendix 5 for specific data.)12 Many of Deltas hubs offer free Wi-Fi and Sky Clubs, two amenities that survey and interview respondents showed interest in. (Please see Appendix 6 for a detailed chart of Deltas hubs and the following amenities: cost of Wi-Fi, number of Sky Clubs per airport, and number of departures.) As a part of SkyMiles, members can earn award miles even faster by purchasing products from hundreds of stores through skymilesshopping.com. Deltas award winning BusinessElite service and more than 50 Sky Club programs provide a select group of upper class frequent business travelers. 11 Delta was Named Top Tech-Friendly U.S. Airline and tops the World's Most Admired Companies Airline Industry List. 7

SkyMall Mobile: Shop on Cloud Nine

MediaMark Reporter: MediaMark Research and Intelligence (MRI) provides summary tables of comprehensive demographics, lifestyles, product usage, and media data collected from an annual sampling of over 26,000 consumers. Data collected from MRI has augmented the information collected in our primary research and helped to identify effective communication channels to reach the target market. Key findings: No age group drastically flies more than any other age group. Demographic data differs relatively little on the most traveled airlines (Delta, Southwest, and American). Professional occupations such as business, finance, and sales cover the majority of people flying. The majority of people traveling via airplanes have a household income of $75,000-150,000+. 10 People flying typically have graduated college or are post graduates.

Primary Research
In-Depth Interviews: The team conducted 17 in-depth interviews to better understand the travelers experience including: loyalty to brands, ways to pass time while traveling, and purchasing behavior. Interviews focused on adults with recent flying experience. The data collected served as a guide for development of our nation-wide survey. (For interview questionnaire, see Appendix A: In-Depth Interview Questions.) Key findings: All participants indicated that they used some type of electronic device to pass time in the airport and airplane, especially Smartphone's, tablets, and laptops. Mobile electronics were used more frequently on the airplane as opposed to laptops. Wi-Fi was important, and the cost of Wi-Fi was a factor in flyers technology use on airplanes and in airports. While they were familiar with the magazine, most people viewed SkyMall as a way to pass the time rather than actually make purchases. People indicated that initiatives would provide further motivation to purchase from SkyMall. The majority of respondents were members of a frequent flyer program. The majority of frequent flyers preferred the airport club to pass time in the airport. Respondents indicated that they would rather buy products from alternate sources than SkyMall, particularly more trusted outlets. Quantitative Survey: The intent of the survey was to collect quantitative data that would support qualitative findings and aid the development of SkyMall Mobile: Shop on Cloud Nine. Respondents were reached through email, social networking sites, and personal contacts. A snowball sampling technique where respondents were asked to forward the survey to their friends and family was utilized, and 270 respondents took the survey via SurveyMonkey.com and analyzed using SPSS. (See Appendix D to view the survey.)

SkyMall Mobile: Shop on Cloud Nine

Key findings: 82.4% of business travelers have a frequent flyer program. Business travelers indicated that they use their smart phone more than any other electronic device in the airport (40%), closely followed by their laptop (32.9%). 84.3% of business travelers indicated that the cost of Wi-Fi is important or very important to them. Almost all of business travelers (88.9%) have heard of SkyMall. Of those people, 96.2% have read the magazine, 35.9% have taken the magazine off of the plane, and 7.2% purchased. (See Appendix 7 for a graphic of this data.) While respondents could check all that applied, the majority of business travelers said that they read the magazine to pass time (85.1%), while another 43.3% said that they were interested in the products. Business travelers indicated that the following incentives would somewhat increase their likelihood of purchasing from SkyMall: discounts/coupons (54.4%), frequent flyer or loyalty program rewards (51.5%), and free Wi-Fi (42.6%).

SWOT Analysis
Strengths: Brand recognition Unique touch points One of a kind catalog Convenience Opportunities: Growing mobile market Increase of potential customers flying Improving economy Weaknesses: Poor online presence Poor execution message delivery Disconnect between different mediums Threats: Competitors with stronger brand names (reputation) Recent competitor partnerships Decrease in print

Research Conclusion
Our research identifies attractive frequent flyers on Delta Airlines that can be targeted by leveraging their use of technology, specifically mobile devices throughout different stages of the flying process. According to our interviews, those who were frequent flyers enjoyed their time spent in airport clubs. Additionally, our research suggests that we can capitalize on the volume of passengers and premium position of Delta in the airline market.

CAMPAIGN THEME AND POSITIONING

Campaign Theme SkyMall Mobile: Shop on Cloud Nine
The campaign theme is meant to capture the focus of our plan succinctly. The focus is on the mobile application, because technology, and specifically mobile devices, are the primary drivers of our marketing plan. Shop on Cloud Nine takes on a few meanings for our audience. Cloud Nine refers to a state of elation or happiness, mirroring our position, which identifies SkyMall as a fun shopping experience. Cloud Nine also plays on the fact that shopping can be done while flying through the clouds in an airplane. Finally, with SkyMall Mobile: Shop on Cloud Nine, there are nine central methods (iPhone app, Android app, Blackberry app, website, mobile website, Google Catalogs, text-to-order, mail-in-order, and call-in/fax-to-order) in which to order through SkyMall, creating the ultimate in convenience. We feel that this theme appeals perfectly to our audience and really conveys what we want SkyMall to mean to consumers.

SkyMall Mobile: Shop on Cloud Nine

Positioning Statement
For frequent business travelers on Delta airlines who desire a selection of premium, innovative products, SkyMall is a multichannel retailer that provides a fun and convenient shopping experience.

Target Market
Through our research we chose to target frequent business travelers, because these individuals fly more often than the average person and will have more exposure to the SkyMall brand. SkyMall Mobile: Shop on Cloud Nine will target members of frequent flyer programs, specifically the Delta SkyMiles program. Our research indicates that the majority of business travelers are members of an airline loyalty program. The Delta SkyMiles program is the largest frequent flyer program in the world, allowing us to reach a segment of the population that flies most often. Specifically, in terms of airlines, Delta is the most attractive airline to focus marketing efforts, because it is the largest airline in the world and operates the most domestic flights. In addition, all of Deltas flights are Wi-Fi capable, eliminating obstacles to people accessing SkyMall while in-flight. In addition, Deltas hubs are located in some of the busiest airports in the country, allowing SkyMall Mobile: Shop on Cloud Nine to maximize its reach.

Geographic Focus
Through secondary research, the following airports appeared to be the most beneficial for SkyMall Mobile: Shop on Cloud Nine to target: Atlanta, JFK, Detroit, and LAX. The first component analyzed was the Delta air traffic that each airport experienced. After further research, it appeared that Deltas hubs had the heaviest presence in air traffic. With additional analysis, we discovered that Deltas hubs are conveniently spread throughout all regions of the country. We narrowed this extensive list down to the aforementioned airports, because of their heavy air traffic, Wi-Fi capabilities, and the presence of Delta Sky Clubs. (For specific information on Deltas hubs, please see Appendix 6.) Specifically, beginning in the south, Atlantas airport was chosen because it is Deltas headquarters and is the busiest airport in the nation by passenger volume. In addition, this airport is the home to nine Delta Sky Clubs. In the east, the Delta hub that is most attractive to target is JFK. JFK contributes four Delta Sky Clubs that are available to SkyMiles members. In consideration of the north, Detroit was the major hub that was chosen. Detroit offers our campaign another high traffic airport with a total of four Sky Clubs. The final geographic region, the West, didnt appear to have any Delta hubs that appealed to our campaign. As a result, we decided to focus on LAX because of its appealing business orientation and significant amount of traffic; LAX also has one Sky Club. 3,13

CORE MARKETING STRATEGY AND PLAN

Introduction
The following objectives guided the design of our campaign. SkyMall previously defined their target audience as affluent business people who are decision makers and describe themselves as early adopters of new technology. After completing our research, we decided our campaign would focus on mobile media but would also entail several more aspects to supplement this plan. In addition to our objectives, the campaign strategies are described below. For each strategy, campaign measurables and goals were set to be able to assess the campaigns reach and effectiveness; a table of these can be found in Appendix 8.

Objectives
1. Create an engaging and fun experience for potential customers 2. Build awareness of SkyMall channels (print, online, and app based) 3. Increase the number of orders received by SkyMall to one purchase per two flights

SkyMall Mobile: Shop on Cloud Nine

Mobile Application
The mobile application is the central focus of SkyMall Mobile: Shop on Cloud Nine, and significant resources are set to be allocated to the improvement of the current offering. Research shows that 75% of people between the ages of 35 and 44 and 60% between 45-54, with annual income of $100K or more, own a Smartphone that operates on the iOS or android system. Our campaign suggests an updated SkyMall application for the iOS market in order to incorporate additional content and functionality. A SkyMall application for the Android Market will be developed as well, mirroring that of the iOS application. Currently, 43% of the Smartphone market operates on the Android operating system, so the development of this application is crucial.5 The new and improved application will include the development of specific tools as well as additional content and functionality. Development of a QR code reader is one of the main tools that will be included in the mobile application. The QR code reader will allow greater engagement with advertising messages and product information. Another feature that will be highlighted in our campaign is the development of an augmented reality experience, facilitated through the mobile application. This type of technology is cutting edge and will add significant value to the overall shopping experience and entertainment for the SkyMall application user. For those with the SkyMall application on their smartphone or tablet, the app will also include geofencing capability that will be used to send notifications directly to their mobile device upon entering the airport or specific Delta concourse. The push notifications can include special offers for SkyMall, as well as other messages that may be useful to the user. The push notification strategy will also help target past SkyMall customers and work to generate repeat business and post-flight reminders. For example, a push notification could be sent to someones smartphone five hours after arriving at their destination. In order to avoid spamming customers, the push notifications should be limited and the user will have the ability to opt out of these notifications. The mobile application will be fully functional in airplane mode, making it appealing to customers while in-flight. Customers can browse SkyMalls products, utilize other application features, and even place desired items into the shopping cart. For customers that are not connected to Wi-Fi, an automatic-purchase option will be incorporated for ultimate customer convenience. Customers have the ability to enter their credit card and shipping information after items are placed in cart and upon reaching a Wi-Fi network, the transaction will be automatically completed. A goal of the mobile strategy is to not only offer marketing messages to mobile app users, but to offer interesting and helpful content to increase the amount of time consumers spend using the app. Useful content, such as airport maps, will be built into the app so that individuals have incentive to use the app during their time traveling. Games will also be incorporated into the app and updated periodically to make sure that users remain entertained, and a random product generator will provide application users with the ability to see products that fit with their personal traits. This generator provides customers with an entertaining experience that can also provide SkyMall with valuable information about potential consumers. In addition, with SkyMall Mobile: Shop on Cloud Nine, any products found by browsing the mobile or online catalog or via the random product generator can be shared on multiple social platforms. Below the shopping cart, icons of popular social media platforms will allow for shoppers to share their favorite products and gifts with friends, family, and co-workers.

SkyMall Mobile: Shop on Cloud Nine

In addition to the useful content in the app, SkyMalls goal is to create a fun, entertaining shopping experience for customers, while maintaining value. An exclusive offers section will be placed in the mobile application, where special offers will only be given consumers who have the app. The survey results showed that a majority of people value special offers. A unique strategy must be implemented so as to keep consumers interested and excited in the application and products, but to not decrease the value of SkyMalls brand. By advertising exclusive offers and sneak peaks to application users and changing them at random times, it is predicted that consumers will feel exclusive and will continue to periodically use the app to check the offer. (Please see Appendix 9 for graphics of our mobile application.)

Website
The current website (Skymall.com) is not optimized for mobile devices, making browsing difficult on smartphones and tablets. We propose to create a mobile-friendly website so that consumers who prefer to access the actual website, as opposed to the app, will have a more user-friendly experience. Overall, the website will require an upgrade to highlight important features and make the interface more attractive and easy to navigate. Adding convenient, noticeable links to social media sights such as Facebook, Twitter, and Foursquare is another important aspect of SkyMall Mobile: Shop on Cloud Nine. Upgrading the website is incredibly important, because flyers are encouraged to take advantage of the free Wi-Fi when visiting SkyMalls website on Delta flights. In addition, this will encourage users to share their fun experience and interesting products with friends on social media sites. (Please see Appendix 10 for graphics of the SkyMall website.)

Social Media
As more middle-aged consumers join the social media trend, in addition to our mobile strategy, it is important for SkyMall to focus on social media, as it is a way to generate more brand awareness, share products with friends and family, and allow people talk about the cool products and experience that they have with SkyMall. Social media is also a great way to update consumers about company news, new or featured products, and give promotions. First, as mentioned before, the social media links, including Facebook, Twitter, and FourSquare, will be more visible with the reconstruction of the website. In addition, the links will be easily accessible on the mobile website and application. Currently, consumers can only access Twitter on the mobile application, but after the application upgrade, social media can be easily utilized in a central location. (For a visual of the upgraded application and website, please see Appendix 9 and 10.) The integration of this media will add convenience, and the interactive sharing and promotional capabilities will cater to a fun and exciting shopping experience.

Catalog
Although our campaign is primarily focused on mobile media, based on our survey results, many people still prefer to shop via catalogs. Our goal is to integrate the catalog and mobile media so that they may interact with one another and consumers may have multiple resources to use.

SkyMall Mobile: Shop on Cloud Nine

The first catalog upgrade proposed for SkyMall Mobile: Shop on Cloud Nine is to place QR codes within the magazine. These QR codes would link consumers to the new mobile website where they could view demonstration videos and product reviews about a few highlighted products. The interview and survey results showed that customers like to read product reviews. This would help customers gain trust in SkyMall and increase the likelihood of a purchase. By linking the catalog and mobile website, the customer could choose which type of media they prefer to browse. To create a fun, entertaining experience for travelers, SkyMall should include an augmented reality feature in the magazine. This activity would catch consumers attention and motivate them to download the SkyMall app so they could experience the augmented reality. Research shows that SkyMalls target audience are early adopters of new technology, so we believe that our target consumer would be very interested in this new idea. The catalog ad would urge consumers to experience this cool, new technology. Consumers could then download the app, if they dont already have it, and use it to scan the page and watch the featured product appear on their screen. This is a fun way to spark peoples interest and an entertaining way to pass time. Again, once consumers have downloaded the app and have a fun experience, they are more likely to use it in conjunction with the catalog again. (Please see Appendix 11, 12, and 13 for screenshots of the updated SkyMall Magazine.)

Sky Clubs
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Delta offers the largest rewards program and accessibility to Delta Sky Clubs. These award winning clubs are the gathering spot for high-class travelers and frequent business fliers. With 50 clubs in over 30 cities across the United States, they offer the perfect location to target travelers beyond the airplane. Delta Sky Clubs offer a place for busy business travelers to relax, work on business, or a combination of both while waiting for their flight. With plenty of spots to relax in the club, they also provide a multitude of premium amenities including: free Wi-Fi, electronics charging stations, fully stocked bars, snacks, newspapers and magazines, and personalized flight assistance. This layover time in the Delta Sky Club is an opportune time and place to catch the frequent business traveler relaxing. First, the SkyMall magazine would be added to the collection of magazines available within the Sky Club enabling a fun and convenient shopping experience in the club. Also, the Sky Club would be stocked with SkyMall sponsored glasses and coasters. The glasses would be employed as a promotional medium used for building awareness, whereas the coasters would include a promotional message and a QR code. The QR code would link directly to the download page of SkyMalls mobile app. In addition, SkyMall magazines will be placed around the club in three distinct areas, including relaxing seating areas, on the bar, and near the entrance/exit of the club. The magazines would be free, always in stock, and able to be taken with the traveler out of the Sky Club, maximizing customer convenience, and ensuring a premium shopping experience in flight. The SkyMall app, once downloaded, would also provide the ability to check in via FourSquare to individual Delta Sky Clubs to view special offers and other airport information. (Please see Appendix 14 and 15 for the drinking glass and drink coaster designs.)

SkyMall Mobile: Shop on Cloud Nine

Promotional Flyer
In addition to the Delta Sky Clubs, SkyMall will be advertising in Delta terminals. After considering several alternatives, the most effective and cost efficient promotion tactic would be the distribution of flyers to those boarding the plane. Urging people to view and register information or scan a QR code while in a hurry is unrealistic. The flyers would be small slips of paper that are handed out exclusively to the business and first-class passengers. Each flyer would include a scratch off revealing a QR code followed by a short promotional message. An example of a message would be Download SkyMalls new app and explore the augmented reality experience. The main intention of the flyers would be getting those passengers to download the app prior to flight take-off. This tactic will be effective, because first and business class travelers will receive their flyer and board the plane first, giving them time to download the mobile application before the plane door is closed and electronics must be put into airplane mode. Once downloaded, the app can be explored before, during, and after the flight, benefitting each aspect of our campaign. (Please see Appendix 16 for promotional flyer.)

Email Campaign
A significant aspect of our pre-flight strategy is an email campaign that will target people who have purchased from SkyMall at least once. The email blasts will focus on informing these individuals of the new and improved mobile application. We understand the vast majority of these customers receive emails from SkyMall frequently, which is exactly why an obvious distinction must be made between the two. The email campaign will utilize an eye-catching design including appealing title lines that will transmit our mobile campaigns message and highlight the following features: useful airport maps, special offers, addition of new, fun games, and the augmented reality experience. These emails will feature the helpful and entertaining aspects of the revised app and encourage customers to download the app to enhance their next flying experience.

In-flight Video
Based on our survey research, SkyMall has no problem of getting people to pick read the magazine. However, a major problem is getting customers to take the next step and take the initiative to make a purchase. The in-flight video will be an important reminder for travelers to take advantage of the free Wi-Fi when visiting SkyMalls website on Delta flights. It would also spark their interest in the augmented reality with the mobile application and encourage travelers to download the app after leaving the plane and take the magazine with them.

Timeline
Our campaign will focus on one quarter of the year, spanning the months of June, July, and August. These months experienced the highest level of airline passenger traffic across all flights. Our research took into account all passengers, and we attributed the heightened traffic to people taking summer vacations, but business traveler traffic remains more constant throughout the year. The summer quarter will allow SkyMall Mobile: Shop on Cloud Nine to reach the frequent business traveler while capturing sales from the personal traveler through our message spillover. Currently, 40% of SkyMalls sales are captured during the last quarter of the year (October, November, and December). We chose not to focus our campaign on SkyMalls busiest buying season in order generate more incremental sales. The results of the campaign will be more easily identifiable by implementing the campaign during a quarter that does not already have a large volume of sales. 4 (Please see Appendix 4 for airline passenger data throughout the 2011 year.)

SkyMall Mobile: Shop on Cloud Nine

BUDGET
SkyMall Mobile: Shop on Cloud Nine Campaign Budget Budget Item Cost Update iOS mobile application $100,000 Create Droid mobile application $75,000 Create mobile-optimized website $50,000 Sky Club Drinking Glasses $175,000 Internet Website re-construction Sky Club Coasters Boarding Pass Flyers In-flight Video Miscellaneous Expenses Upgrade in Delta Royalty fee Total $60,000 $10,000 $15,000 $10,000 $5,000 $0 $500,000

SkyMall has established a budget of $500,000 for SkyMall Mobile: Shop on Cloud Nine. The majority of the marketing budget will be spent on our mobile strategy, including updating the iOS mobile application, creating an Android mobile application, and creating a mobile-optimized website. In addition, a part of the budget will be allocated to the Sky Club coasters and drinking glasses, in-flight video, and updating the current website.

Assumptions: The mobile strategy costs were based on quotes received from Mutual Mobile, a company that helps businesses implement their mobile strategy through the creation of mobile apps. 9 17 The website re-design and mobile-optimized costs are quoted from Atilus, a web development firm. 130,000 coasters and drinking glasses would be produced based on the educated estimation of 125,972 people that use the Sky Clubs in the four targeted airports over three months. Cost estimations were acquired from a manufacturer of promotional custom, bulk products. 16 The cost of the boarding pass flyers was calculated by gathering the first and business class passenger data from June, July, and August 2011 in the four targeted airports. The calculated number of passengers was 1,259,717. It is assumed that 95% of these passengers would receive these flyers. 6 Financially, this 3-month, $500,000 campaign proves to be very successful. As shown below, the return on investment is an astounding 904.38%. The purchases were estimated by looking at each component of the campaign, along with the passenger and flight data from past years. Ultimately, our measurable and goals were used to estimate the number of purchases that would be made during those 3 months due to our campaign reach.
Estimated Purchases 40,374 Average purchase $112 Sales $4,521,888.00 Cost of Campaign $500,000 ROI 904.38%

With a customer lifetime value of $475, SkyMall Mobile: Shop on Cloud Nine has the potential to generate over $19,000,000 during the new customers lifetime.
Estimated Purchases 40,374 Lifetime Value of Customer $475 Lifetime Value Contribution from Campaign $19,177,650

According to our estimations, the established sales per flight goal would be reached and surpassed with a 1.84 ratio.
Number of Flights 74,101 Estimated Purchases 40,374 Flights: Purchase Ratio 1.84

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SkyMall Mobile: Shop on Cloud Nine

APPENDIX
Appendix 1: Perceptual Maps
Number of Channels vs. Perceived Risk SkyMall currently offers customers nine different channels to make a purchase. However, research has shown that perceived risk is the major factor that prevents people from purchasing. The campaign will capitalize on the significant amount of purchase channels to reduce perceived risk.

Number of Channels

Perceived Risk Convenience of Products vs. Shopping Experience (Dull to Fun) SkyMall is positioned as a multi-channel retailer that provides customers with a fun shopping experience and convenient purchase options. The campaign will emphasize these two core competitive advantages and make improvements in each category.

Convenience of Products

Shopping Experience (Dull to Fun)

Appendix 2: RITA Key Findings

U.S. Airports, 12 Months Ending January Airline Carrier Southwest Delta American Airlines United US Airways Air Tran Number of Passengers in 2011 106,959,000 90,036,000 65,624,000 43,063,000 45,262,000 24,048,000 Multiple factors were evaluated when deciding which airline to partner with for the campaign. Those factors include: number of passengers, number of domestic departures, hub locations, and technology capabilities. While Southwest clearly exceeds Delta in terms of the number of passengers for the year ending January 2012, Delta follows closely behind. Deltas hub locations and technological capabilities are more desirable than Southwest Airlines. These factors can be seen more thoroughly in the following appendices.

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Appendix 3: RITA Key Findings

Airports Atlanta Detroit Los Angeles New York (JFK) Number of Passengers on Departing Delta Flights in 2011 25,104,560 6,292,523 3,104,371 2,472,866

In comparison to all of Deltas hubs in Appendix 6, the four airports targeted in this campaign, featured here, have some of the highest scheduled departures in 2011. This was an important factor in deciding which airports to target.

Appendix 4: RITA Key Findings

Months (2011) January February March April May June July August September October November December Number of Passengers in 2011 (departing) 5,086,617 4,929,015 6,363,022 6,050,261 6,434,303 6,641,795 7,036,946 6,755,188 5,923,000 6,284,144 5,931,794 5,697,440

This three-month campaign is extendable to other quarters of the year, as well as to different airline carriers. These months were chosen because June, July, and August offer the most exposure for SkyMall due to the high volume of passengers during these months. In addition, SkyMall already experiences the most sales during the holiday months, and with the high volume of passengers during the summer months, this campaign will generate incremental sales.

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13
4 3 3 7 Yes Yes Yes Yes Yes

Appendix 5: Delta Technology Amenities

100%

30%

17%

2%

19%

20

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SkyMall Mobile: Shop on Cloud Nine

Airport tech amenities (10 point scale)

In comparison to competitors, Delta has earned the highest ranking in terms of technological amenities for their customers. Delta ties with Southwest in terms of airport tech amenities and exceed its competitors in all other categories. The fact that Delta ranks so highly in technological amenities was an important factor in deciding which airline to partner with.

Mobile check-in

Mobile app quality (10 point scale)

Planes with Wi-Fi (domestic)

Appendix 6: Cost of Wi-Fi, Delta Departures, and Delta Sky Clubs

The map above features major airports that Delta has a presence in and some of the factors we considered when choosing which airports to target. The cost of Wi-Fi, number of Delta departures, and number of Delta Sky Clubs are highlighted for each hub in the blue boxes. The four red dots highlight the airports our campaign will target. The yellow dots indicate potential airports the campaign could be extended to. 3,14

Appendix 7: Inverted Triangle

The majority of respondents said that they are aware of the SkyMall magazine. Of those people, over 95% have actually read the magazine. Moving down the triangle, 35.9% of respondents said that they have taken the magazine off the plane, and only 7.2% of respondents have purchased from SkyMall. This triangle represents SkyMalls strong brand awareness; however, they need to focus on getting consumers to follow through and make a purchase. Our campaign addresses this issue and is discussed further in the Core Marketing Strategy section.

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15 Measurable
Automatic checkouts Content usage (games, maps, etc) Special Offer codes redeemed 6 possible during 3 months of apps downloads 50% of apps downloaded
200% increase of time spent on mobileoptimized website

Campaign Strategy Goal

2% of apps downloaded from Sky Clubs, boarding pass flyer, and Catalog Avg. of 10 minutes spent on app

Low

High

Mobile Application

Mobile Application

Mobile Application Augmented Reality scans Time spent on mobile-optimized website Website visitors Time spent on website Increase by 30% 200% increase between Facebook likes, Twitter followers, and FourSquare usage 203,196 scans 152,397 downloads 30% of apps downloaded 5,669 scans 4,252 downloads 3% of app downloaded from coasters + spillover from foursquare app 59,837 scans 44,878 downloads 3% (Increase of 0.7%) 4% (Increase of 0.5%) 10% =7650 people Facebook Likes, Twitter Followers, and FourSquare Checkins QR code scans Mobile app downloads Product QR Code scans Coaster QR code Mobile app downloads Four Square Check-ins QR code scans Mobile app downloads from flyer Click through rate Conversion rate App downloads Tied to other forms of media Increase by 20%

Mobile Application/Catalog

Mobile-optimized Website

Website

Website

Social Media

Appendix 8: Campaign Measurables and Goals

Catalog

Catalog

Catalog

Sky Clubs

10,204 scans 7,685 downloads

Sky Clubs

SkyMall Mobile: Shop on Cloud Nine

Sky Clubs

Boarding Pass Flyers

107,706 scans 80,780 downloads

Boarding Pass

Email blasts

Email blasts

Email blasts

In-flight video

Appendix 9: SkyMall Mobile

The graphic shows two features of the updated iOS application. The first image is an example of one of the useful tools that will be added to the application: airport maps. The second image features the display of the new shopping experience. With a back button, search button, star ratings, social media links, and product reviews, this new application will make shopping much more convenient and fun.

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17 Appendix 10: SkyMall Website

SkyMall Mobile: Shop on Cloud Nine

The newly-constructed website features a clean, spacious look that draws increased attention to the applications and social media links. It also has a moving banner that can show featured products, company updates, and more.

Appendix 11: SkyMall Magazine (Featured Product Page Spread)

This page spread illustrates the featured product page that our campaigns catalog emphasizes. Having one featured product per issue will enable us to highlight and effectively communicate the new mobile-integrated features of the catalog.

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Appendix 12: SkyMall Magazine (Augmented Reality)

Each featured product page spread will allow the reader to explore the product further using the augmented reality experience. This graphic illustrates how the augmented reality feature will be executed using a mobile device.

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Appendix 13: SkyMall Magazine (QR Code Page Spread)

QR codes will be featured within the pages of the catalog. As shown in red, the QR code will read scan me and allow the reader to further explore the product of interest.

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21 Appendix 15: Drink Coaster Appendix 14: Drinking Glass

Glass pint glasses will be utilized in the Delta Sky Clubs to grab the attention of business travelers in need of a drink. The partnership logs located on the glass are clean and bright generating further awareness of the coaster with the QR code accompanying the drink.

SkyMall Mobile: Shop on Cloud Nine

Pictured above is a mock up of the drink coasters that will be used in Delta Sky Clubs, as well as first and business class sections of Delta flights. The QR code will take the user to the specific market place of the users device prompting them to download the new SkyMall Mobile App.

22 Appendix 16: Promotional Flyer

SkyMall Mobile: Shop on Cloud Nine

This specialty flyer will be handed out at departure gates to first and business class sections. The flyer is highly customized and formed like an actual boarding pass to grab the attention of first of business class flyer. The QR code prompts the user to download the new SkyMall Mobile App prior to take-off while the text gives relevant and fun information highlighting key facts about the app.

Appendix 17: Email Campaign

A clean and visually appealing email marketing campaign will be launched to all existing users in the SkyMall database. This mockup is one example of how our campaign will highlight the new SkyMall Mobile App and prompt the user to download the application for his or her favorite mobile device.

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Appendix 18: In-flight Video

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Appendix A: Interview Guide

Pre-qualifier: Must have flown in past 5 years. For what reasons have you flown in the past five years? (Business, vacations, etc.) When traveling, do you use any sort of rewards or point system? Why? What are your favorite aspects of the program? How loyal are you to that program? Why? What modes of transportation do you typically use for getting to and from the airport? Why? What are your attitudes towards airports and airlines in general? Why? What do you dislike and like the most? When in the airport waiting, what do you spend your extra time doing? Why? What do you typically spend money on at the airport? Why? When in flight what do you do to pass the time? Why? What electronic devices do you use when traveling? Why? What do you use them for? Any differences between devices when in the airport or on the airplane? Why? Have you used WIFI in the airport or on the airplane? Why? How important is WIFI to you while traveling? How important is the cost to use WIFI to you? How would you feel about in airport kiosks with free WIFI? Why? What applications do you use on electronic devices? Why? Do you do any shopping on these devices? Why/Why not? What would incline you to make a purchase on a flight? Why? Free WIFI? Frequent flier miles? Reimbursement for checking fees? What have you heard about the SkyMall Magazine? What do you like and dislike about the Magazine? Why? What inclined you to look at the SkyMall Magazine? What inclined you to make a purchase from the SkyMall Magazine? Have you ever made a purchase from any gift magazine like SkyMall? Why did you purchase from this magazine? What? Or would you consider making a purchase? What would incline you to make a purchase from a magazine versus in a retail store?

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Appendix B: Quantitative Survey

Have you flown in the past 2 years? Yes No

How many times have you flown in the past 2 years? 1-3 4-6 7-9 10+ What percent of the time do you fly for the following reasons (Choices must add up to 100%) ____ Business ____ Personal (non-business) Are you currently a member of a frequent flyer or airline loyalty program? Yes No

What benefits of a frequent flyer or airline loyalty program are most important to you? Most Important 2nd Most Important Mileage points Early boarding Free checked bags Seat upgrades VIP club access Partnerships with car rental companies Partnerships with hotels Other (please specify) While at the airport, how do you pass the time? Spend Most Time Read books Read magazines Eat and drink Shop People watch Do work for business Surf the web Sleep Other (please specify) 2nd Most Time 3rd Most Time

Which activities do you spend the most time doing while on a plane? Spend Most Time Read personal materials (books, magazines) Read magazines provided by airplane Do work for business Sleep Personal entertainment (web, music, games) Other (please specify) Which of the following electronics do you use the most in the airport? Use Most 2nd Most 3rd Most Laptop Tablet Phone Smartphone MP3 player Other (please specify) Which of the following electronics do you use the most on a plane? Use Most 2nd Most 3rd Most Laptop Tablet Phone Smartphone MP3 player

2nd Most Time

3rd Most Time

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Other than for work, texting, or calling, how do you use your cell phone/smart phone? Primary Use Secondary Use Tertiary Use Playing games Listening to music Shopping Surfing the web Reading Looking at the weather Catching up on news None Other (please specify) Which of the following types of Wi-Fi have you used? (Check all that apply) Free Wi-Fi in airport Free Wi-Fi on airplane Paid Wi-Fi in airport How important is cost in determining whether or not you use Wi-Fi? Very important Important Neutral Unimportant Paid Wi-Fi on airplane None

Very unimportant

What percent of the time do you buy a souvenir/gift in the following situations? (1=0%: 5=76-100%) 0% 1-25%26-50% 51-75% 76-100% At an airport On a plane At a destination In a hotel gift shop Rank the following in order of preferred purchasing method. Most Preferred 2nd Most Preferred Retail store Online Mobile app Catalog/magazine Text to order Mobile browser Tablet 3rd Most Preferred Very Unimportant

Please rate the importance of the following factors you consider when making a purchasing decision? Very Important Important Neutral Unimportant Price Extra costs (i.e. shipping) Customer reviews Quality Brand name Return policy Ease of transaction/checkout

Please indicate the amount of time and effort you spend researching, browsing, and buying during the following purchasing situations. (Check N/A if it does not apply) Least Amount of Time 2 3 4 Largest Amount of Time N/A Purchasing home/yard dcor Purchasing electronics Purchasing pet supplies Purchasing furniture Purchasing apparel/shoes Purchasing jewelry Purchasing traveling accessories Purchasing seasonal items Purchasing health/wellness items Purchasing business items Other (please specify)

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Have you ever heard of SkyMall magazine?

Yes

No Yes Yes Yes No No No

Please answer the following questions: Have you read a SkyMall magazine? Have you taken a SkyMall magazine off of the plane? Have you made a purchase from SkyMall?

What enticed you to read a SkyMall magazine? (Check all that apply) Pass the time Interested in products Shopping Browsed while looking through other magazines Other (please specify) __________ How many purchases have you made from the SkyMall magazine? 0 1-2 3-4 5+

Considering your current likelihood of purchasing from the SkyMall magazine, how likely would the following incentives increase your likelihood of purchasing? No Impact Significantly Increase Free baggage Frequent flyer or loyalty program rewards Free Wi-Fi Discounts/coupons Other (please specify) What is your gender? What is your age? Are you married? Male Female 18-30 31-60 61-90 Yes No No $75,001-$100,000 Law $100,001+ 91+

Do you have children under 18 years old? Yes

What is your estimated annual household income? $0-$25,000 $25,001-$50,000 $50,001-$75,000 Please note your profession Health care Entertainment Engineering Education Manufacturing Business

Customer service

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References
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