Integrated Marketing Communication Strategy - Essay Example

?Integrated Marketing Communication Strategy for JB Hi Fi Company 0 Message Review This Integrated Marketing Communication (IMC) strategy for JB HiFi Company proposes to construct an IMC for JB that will improve or build on its current competitiveness within Australia’s retail market. The IMC strategizes on the basis of JB’s current position and share in the retail market compared to its most significant rivals. The rationale for this approach is based on the reality that competition within the market is intense and therefore competing on the basis of mere product placement, availability and access needs to be complimented by communicating an image that attracts the target demographic of 18-30 years old. 1.1 Current Message Strategy JB’s current message strategy is based on the perception that it has to engage the appeal of its target demographics by taking an energetic approach which is both friendly and accommodating. The end goal is customer satisfaction and appeal. This is accomplished by making the high street stores attractive to its demographic target. JB’s online shopping facilities are also set up to reveal appealing product placement photographs and competitive pricing. In both the online shopping facilities and high street stores, the products are arranged by category for ease of reference and colour differentiation by virtue of the colour yellow and a distinctive logo are used to distinguish JB from its competitors. Thus, the current message strategy is designed to ensure that JB’s target demographic market is aware of the range and price of JB’s products. This is obtained by gaining attention (the one-way push) and then by making it easy for the consumer to browse either in the virtual store or in the actual store (the two-way push). The two-way push is exemplified by the demonstrative play of products in-store with a view to gaining attention. The prices are reasonable and the volume high so that customers are enticed not only by the product’s appeal but its availability and are encouraged to return as a result of the shopping experience. The tagline however, is limited to pricing and availability advertising which is primarily left to online and in-store visits. 1.2 Message Effectiveness Critique The customer-friendly, energetic and appealing atmosphere is insufficient as it tends to focus on product availability rather than product value. Pricing is a marketing strategy that can very easily be mimicked by competitors (Kurtz, MacKenzie and Snow 2009, p. 584). A more effective IMC would focus more intently on increasing and improving customer awareness of the product. The approach should be to use an IMC strategy that increases the customers’ awareness of the products and this should include a promotional strategy (Chaston 2005, p. 143). Some guidance can be had by looking at JB’s major rivals’ strategies. These strategies include the use of the print media for advertising as well as the electronic media. Other strategies include point of sale communications and website communications and brochures all aimed at reaching their targeted consumers. Another competitor also uses social networks to facilitate communication with its customers. In today’s world of diversity it is best that JB use a diverse range of promotional strategies, similar to those used by its competitors (Blakeman 2007, p. 2). 1.3. Proposed Message Strategy Adjustments JB is required to improve its pull strategies. This means focusing on communicating directly with its customers (Hughes and Fill 2007, p. 146). This can be accomplished by creating a social networking service where JB moderates an open forum for full and frank disclosure relative to its products on an online forum. Push strategies which capitalize on intermediaries and other channels for communication should be improved (Lamb, Hair and McDaniel 2008, p. 413). This means taking the opportunity to increase the range of promotions and advertisement by virtue of the print and electronic media. 2.0 Channel Review 2.1 Channel Integration Grid Integration Factors TV Print Radio Internet Direct Mail Packaging Sales Staff Logo Logo is visible only in stores and in online stores. No efforts made to publicize logo outside of the store’s sphere. Tagline Tagline is could be better integrated across media channels. While it is obvious at online stores and in actual stores, it is not visible in the print or electronic media. Staff appears to be familiar with tagline. Corporate Colours N/A N/A N/A N/A Corporate colour yellow is consistent where used. Message Strategy Message strategy is only coordinated among staff at in-store locations. Packaging and internet messaging is good but needs to be more widely used. Audience Targeting Audience targeting are confined to on-sight and website shopping appeal. In other words, JB depends on the power of sales and product placement to communicate itself to the targeted audience. Common Objectives Objectives are coordinated between the actual stores and the online stores and this includes the staff and packaging. JB could become more active in coordinating integrated messaging across the print and electronic media and could use direct mail to send brochures and updates to individual customers and new targets. Common Image N/A N/A N/A N/A When used, image is integrated well. Grid Code: 2.2 Channel Effectiveness Critique JB’s IMC strategy is confined to ensuring that consumers who come into contact with their stores, either online or in actual stores are aware of their wide range of products and its relatively cheap price. There are no real efforts to pursue consumers. Nor are there any other efforts made to differentiate the product or brand from any others on the market. Push strategies are narrowed down to range of products, categorization, friendly staff and browsing online. There are a number of other push strategies that can be used. Some are promotions, point of sale, advertising, contests, bonuses and trade shows (Yeshin 2006, p. 77). Pull strategies are likewise confined and are concentrated on product pricing and in-store sampling. There are other pull strategies could be used. Those strategies include a number of efforts designed to ensure that the product penetrates the market (Yeshin 2006, p. 77). 2.3 Proposed Channel Strategy Adjustments The current economy is a pull economy rather than a push economy where demand outweighs supply (Robert 1998, p. 203). Therefore, in a pull economy the consumer is the ultimate objective of any IMC strategy. The focus must therefore be on market segmentation and promoting the product. Since supplies outweigh demand, product pricing and availability cannot be relied on as the sole marketing strategy. The following recommendations are made for improving JB’s IMC stragies: A tagline needs to be articulated that both captures the target audience and differentiates JB’s products from all others in a more complex or unique way than product pricing. JB’s tagline is essentially weak and weak taglines only make weak and unclear connections to brands (Durham 2009). JB needs to make greater efforts to promote its products and should therefore seek a number of new push and pull strategies. JB’s reliance on its actual store and in-store appeal is not enough to compete. JB needs to use the print and electronic media to appeal to its target demographics. 3.0 Target Market 3.1 Geographic Segmentation JB is an Australian company and operates within Australia’s retail sector. 3.2 Demographic Segmentation JB’s customers are young persons between the ages of 18 and 30. 3.3 Psychographic Segmentation This group of consumers are either studying in college or have completed college. 3.4. Behavioural Segmentation JB’s young demographic segmentation are lively, energetic and technologically driven individuals. They are primarily interested in a wide range of products at reasonable prices. 3.5 Benefit Segmentation These consumers are looking for fast and easy to use products suppliers. They are primarily interested in a wide range of products, at good quality and at reasonable prices. JB offers this by running the tagline: Always Cheapest Prices”. 3.6 Target Market Description Statement JB’s customers are young and intelligent and are highly interested in electronics. They are not high income earners. The hot button therefore dictates that they are interested in quality at reasonable prices. They primarily shop at local shopping centres or at the online store. These customers are technologically driven and spend a lot of time on the internet. 4.0 Competitor Profile 4.1 Competitor Framework JB’s chief competitors are Big W, Harvey Norman and Dick Smith. All of these companies share the home entertainment market with JB. 4.2 Competitor Analysis – Offerings and Communication Big W’s tagline is similar to that of JB’s and purports to provide Australia’s Lowest Prices Everyday. Marketing strategies are consumer categorization, pricing, brand development and product placement via print and electronic media and point of sale. Harvey Norman works closely with suppliers to communicate to consumers. It utilizes surveys and responds to no less than half of the consumers’ queries. The IMC strategies include the print and electronic media. Dick Smith’s prices are higher than JB’s and uses online and in-store shopping to appeal to consumers. Dick Smith also uses the print and electronic media and brochures as a IMC strategy. 4.3 Competitive Advantage JB’s competitive advantage is product availability and pricing. JB is also expanding its stores to improve market penetration. 5.0 Competitive Development 5.1 Competitive Consumer Benefit Statement Store visibility is very important to JB and it therefore ensures that its stores and signs are bright and arrest initial attention. Attention is sustained by operating a relaxed and friendly environment so that consumers are comfortable. The staff are friendly, approachable and accommodating as well as efficient. The staff also wears standard logo-bearing t-shirts so that consumers are able to immediately identify staff members. JB’s IMC strategies however can be improved in terms of consumer awareness relative to products. Pricing alone is insufficient for product awareness. As we have seen, JB’s competitors are ahead of JB in terms of IMC strategies designed to heighten consumer awareness of products. The competitors use point of sale techniques as well as advertising via the print and electronic media. 5.2 Message Strategy Statement For young and energetic males and females from teens to 30-something. Who are looking for a wide range of quality products at competitive prices. Our products are innovative, tried and tested and boasts the latest in technology. That provides the latest and best in home entertainment. Unlike JW, Harvey Norman and Dick Smith we guarantee good, state of the art products at the click of a button. Our products are available from a wide range of suppliers and therefore offer a wide variety of products. 5.3 Message Strategy Approach The message strategy will be both logical and sensational. The idea is to ensure that consumers choose JB because it is both logical and appealing to do so. The idea is to form a bond between JB as a brand and its target consumer. This message strategy approach necessarily requires a communication technique that is appealing and therefore draws the appeal of both JB and its products. We want to engage consumers by communicating the JB is the logical first choice. 6.0 Media Strategy and Testing There are four contact points that should be utilized. They are company generated contacts, intrinsic contacts, customer generate contacts and unexpected contacts. 6.1 Company Contacts Company generated contacts are the media (print and electronic) as well as brochures and competitions each of which are good for advertising. 6.2 Consumer Contacts Consumer generated contacts are surveys, social networking such as an online forum and suggestion boxes. 6.3 Intrinsic Contacts Intrinsic contacts are leaflets for distribution detailing JB sponsored events. 6.4 Unexpected Contacts Unexpected contacts are blogs, oral communications relative to spontaneous product information. 6.5 Media Selection and Schedule All efforts should be made to advertise promotions. For instance in the launch of a new product, the print and electronic media should be utilized to promote the new product. Advertising should be by virtue of website/internet, TV advertising and print media advertising. Sales should be published by virtue of a circulating brochure and an online sales page. JB should also schedule competitions and award bonuses or discounts for winners. This should be conducted at monthly intervals with special promotions at major holidays. A bill board should be placed on a prominent location with store locations and information relative to JB’s competitive advantages. Customer feedback is very important as it forms bonds with consumers and controls the consistency of unexpected messaging. Customer feedback can be utilized by providing a suggesting box and conducting surveys regularly. Suggestions and surveys should be responded to as far as it is reasonable and appropriate to do so. This will inform consumers that they are stakeholders and as such they will not only feel a part of JB, but will develop a degree of loyalty to JB. Bibliography Blakeman, R. (2007) Integrated Marketing Communication. New York, NY: Rowman and Littlefield. Chaston, I. (2005) Knowledge-Based Marketing: The Twenty-First Century Competitive Edge. New York, NY: SAGE Publishing. Durham, S. (2009) Brandraising. New York, NY: John Wiley and Sons. Hughes, G. and Fill, C. (2007) Marketing Communications 2007-2008. New York, NY: Butterworth-Heinemann. Kurtz, D.; MacKenzie, H. and Snow, K. (2009) Contemporary Marketing, Toronto, Ontario: Nelson Education Ltd. Lamb, C.; Hair, J. and McDaniel, C. (2008) Essentials of Marketing. Toronto, Ontario: Nelson Education Ltd. Robert, M. (1998) Strategy Pure and Simple Two. New York, NY: McGraw-Hill. Yeshin, T. (2006) Sales Promotion. London, England: Thomson Learning. Read More