AW

2025 West Division Region Plans Marketing

TEMPUR+SEALY Marketing 2025 Overview

  • Focus on aligning marketing strategies in the West Division.

State of Advertising

  • Advertising spend is decreasing due to economic factors.

  • Manufacturer advertising trends reveal:

    • 3% year-over-year change without TSI (Tempur Sealy International).

    • Share of voice (SOV) indicates heavy usage of generic advertising by retailers.

Advertising Share of Voice (Top 30 Comparison)

  • Manufacturer vs Retailer SOV:

    • Manufacturers: 30% 2022, progressing to lower percentages in 2023 and 2024.

    • Retailers show a significant increase, topping 59% in 2023.

    • Tempur-Pedic and Sealy brands are struggling to gain share.

2025 Division Mission, Objectives, Goals

  • Sales Mission: Increase PP25 (performance product) sales by 7% over the previous year.

    • Maintain VCP% (value creation proposition).

    • Expand Elite Placement in retail.

Key Strategies for 2025

  • Product Advocacy: Conduct brand advocacy programs and optimize product assortments.

  • Budget Surpassing: Aim to exceed the 2025 budget for sales and cost per sale (CP$).

  • TSI Share Growth: Increase advertising share through co-branded promotions.

    • Focus on omnichannel coverage and execution.

Metrics for Evaluation

  • Maintain or grow SOV in critical markets.

  • Identify top prospects quarterly and develop action plans for growth.

  • Engage participation in promotional rally calls before key events.

Advertising Strategy

Share of Voice Decline

  • Notable decline in TSI's SOV, particularly for Sealy brand.

  • Historic lows recorded in August and September of recent years.

Importance of Co-branded Ads

  • Co-branded ads demonstrate higher consumer persuasion.

  • Initial consideration set for mattress shoppers includes multiple brands, emphasizing the significance of initial advertising impact.

  • Majority of sales come from brands in the consideration set.

Advertising and Consumer Messaging

Key Strategies for Brand Maximization

  • Omnichannel Approach: Integrate various channels including TV, digital, physical retail, etc.

  • Retailer Support: Equip retailers with marketing insights to enhance effectiveness.

Consumer Identification for Sealy PP 2025

  • Primary target includes Boomers, Generation X, Millennials, and Gen Z.

  • Key consumer needs focus on health, wellness, and quality sleep.

Messaging Priorities

  • Core message revolves around improving pain and sleep quality.

  • "Happy Mornings" and "Reduces Bed Aches" frame the brand as a solution provider.

Retail Effectiveness

  • Retailers leveraging sleep problem/solution messaging outperform those using generic strategies.

  • Success hinges on utilizing co-branded, solution-oriented messaging to drive conversions.

Channel Spend & Seasonality

  • Increased emphasis on digital channels while traditional advertising shares diminish.

  • Highlight seasonal peaks for various advertising channels throughout the year.

Conclusion

  • Adaptability and responsiveness to market changes are essential for marketing strategies.

  • Focus on mitigating advertising spend downturns through strategic messaging and promotions.