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									   Effective Disclosures in Advertising

                             May 22, 2001




HALL DICKLER KENT GOLDSTEI N & WOOD   LLP
Assignment
 Review creative concepts provided for a fictitious
  product, LetsGoTV
• Develop alternative print and television concepts to
   – Drive demand for the product among the target
     audience
   – Clearly and accurately disclose product
     information
Analysis of LetsGoTV Creative
Legal Problem
• Advertising implies product can
  be used everywhere - does not
  adequately disclose indoor
  limitation                            Position outdoor limitation
    – “Don’t you wish you could          use as a product benefit
      watch TV anywhere you
      want?”
    – “You’ll get your favorite local
      channels anywhere”
    – “Watch whatever you want
      wherever you want.”
    – “Goes everywhere you go.”
Analysis of LetsGoTV Creative
Legal Problem
• $199 Price claim is misleading
   – Super with mail in rebates.
      Restrictions apply - not
      adequate                              Reposition price claim
                                       to reduce limitations/conditions
   – Asterisked disclaimer in print     that would require disclosure
      ad - $199 after rebate - not
      adequate
   – Inadequate disclosure that
      $199 is the after rebate price
Analysis of LetsGoTV Creative
Legal Problem
• $199 Price claim is misleading (cont.)
   – Inadequate disclosure that rebate
      is subject to material conditions
      and restrictions:
                                                 Reposition price claim
        • 12 month subscription to
                                            to reduce limitations/conditions
          LetsGoTV with penalty for early
                                             that would require disclosure
          cancellation
        • Premium Service at additional
          $45/month charge
    – Inadequate disclosure that
      antenna is required for cable
      reception at additional cost of $99
Analysis of LetsGoTV Creative
Legal Problem
• Advertising fails to clearly and
  conspicuously disclose that
  subscription to LetsGoTV Premium
  Service is required to access           Reposition cable
  premium channels - disclosure in     subscription requirement
  footnote is not sufficient             as a product benefit
   – Type size too small
   – White type on red background in
      print ad is hard to read
   – Disclosure in TV ad is buried
Analysis of LetsGoTV Creative
Legal Problem
• Disclaimers are not sufficiently clear
  and conspicuous
   – Information is too material to be
      handled in a disclaimer              Simplify the creative to
   – Disclaimer in TV ad is too long          reduce need for
      and too small                             disclaimers
   – Disclaimer in print ad is too
      small, difficult to read and not
      against a contrasting
      background
The challenge...
• Unique product proposition which requires a unique selling
  proposition
   – Lightweight, large screen handheld portable TV device
   – Only works outside - cannot get reception inside
     buildings, inside cars, or in other enclosed spaces
   – Receives cable channels but only with subscription to
     LetsGoTV cable services and an antenna (both extra)
   – Most expensive handheld portable TV device on
     market
   – Rebate available - but only with purchase of one year’s
     subscription and only after 12-months
 The solution...
• Change the focus - rename, reposition and sell it as a whole
  system/package:

      Let’sGoCable = cable subscription + viewer

   – Communicates offer clearly to consumers
   – Focuses on key point of difference vs. competition:
       • cable on a handheld portable device
   – Ideal selling proposition
       • sell subscriptions and the devices will follow
               » Year one - $897.40 (after rebate)
The solution...
• Develop a positioning to leverage the unique
  attributes of the product and make it appealing to the
  people most likely to purchase it

  Cable TV for people who don’t want to miss their
  favorite programming when they are outside.

          – Upfront about “outside” limitation
          – Turns perceived negative into a positive
          – Focuses benefit directly to those most likely
            to purchase
The consumer...
• Talk to the people most likely to find the proposition
  compelling and relevant:

                 Males, ages 30-59

   – Willing to spend money on TV technology
   – Love their cable
   – Spend time outdoors in activities that will allow for
     simultaneous TV viewing
What do we know about them?
Willing to invest in TVs and TV technology
• Important pre-req for our offering
   – average TV cost: $300 - $500
   – handheld TV cost: $5 - $170
   – Year one LetsGoCable cost: $897.40 (after rebate)
• Males are 10 times more likely to purchase high end TVs
  than Females
• M30-59 are willing to spend over $700 on a TV
   – M30-34 are 32 times more likely to spend $700-$999
     on their last TV
   – M50-54 are 55 times more likely to spend $1,000+ on
     their last TV
What do we know about them?
• In the past, the older end of the target has been more
  likely to purchase portable TVs (Index 120)
• There is an opportunity to expand the portable TV user
  base to include younger end of our target based on this
  offering
    – M30-34 - wants products that offer the best
      technology: Index 135
What do we know about them?
They are avid consumers of cable
• M30-59 fall within the heavy cable consumption
  category (15+ hrs in past week)
   – M30-34 Index 116; M50-54 Index 119
• M30-59 are 20% more likely to own a satellite dish
   – M30-34 Index 124; M50-54 Index 149
What do we know about them?
They participate in outdoor activities that allow for
simultaneous TV viewing

          – Camping
          – Boating/sailing
          – Fishing
          – Yard work
          – Going to the beach
          – Having Picnics
The Concept

Now going outside doesn’t mean going without cable.
 With the LetsGoCable System you can receive your
       favorite cable channels on our exclusive
          portable satellite equipped viewer.

     LetsGoCable. It’s time to cut the cord.
Open on a man
 fishing on an
  empty lake.
A scene from ‘Fight Club’
  appears on the lake’s
  surface around him.
  (ShoMax ghost logo)
   The ‘Fight Club’ scene
disappears as a scene from a
     Rap Video appears
(Music Video TV ghost logo)
The rap video
disappears as a baseball
game appears
(Box Seat Sports ghost
logo)

FVO: Going outside
doesn’t have to mean
going without your
favorite shows. Get the
 LetsGoCable System.
Our exclusive handheld
viewer is just $498. And
subscriptions are just
$49.95 a month.

LEGAL: For outdoor use
only.
Product Shot /Super:
$200 BACK
Pullback/Reveal man
holding viewer while
fishing
FVO: Order today and
get a $200 mail in
rebate after 12 months
of service.
LEGAL: 12 months
subscription required
for rebate. $50
cancellation fee for
early termination.
  FVO: LetsGoCable.
It’s time to cut the cord.

								
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