CommunicationsSummative Assessment - Essay Example

?Strategic Planning for Digital Marketing Communications?Summative Assessment By [Presented to] of Section-1: Challenges and Objectives Business Challenges- The Economy The United Kingdom has the sixth largest economy in the world that has been growing at a moderate rate in last few years. In last few years, the prices of food have been rising at a dramatic pace putting pressure on the economy that is already affected by the credit crisis and is on the way of recovery. The food and drink sectors have been the highest contributor to Gross Value Added in the year 2012. Moreover, the UK economy has also witnessed the presence of too many small, medium, and large food and drinks setups in last few years. This is mainly because of the fact that an average UK resident spends 11.3% of his income on food and drinks. There is no doubt that hotels and restaurants have been benefitted by the tourists and locals making way for the success but this has also resulted in the severe competition. Moreover, with 40% of the service tax on the total amount charged by the restaurants and hotels; there is a bit of burden on them in order to be competitive along with being ahead in the value creation process to strengthen the economy (Pesto, 2013). Business Challenges- Customer’s Point of View In last two years, an average UK customer has been spending more than 12% of his income on foods and drinks showing the interest level. However, with unemployment at an alarming high and reduction in the disposable income of people mainly because of the economic and business situations; the overall spending of customers might plummet and thus causing concern for the restaurants and hotel (Pesto, 2013). Furthermore, hotels and restaurants have to pay service tax that is 40% of the total amount charged and in order pay service tax along with being profitable, it become important to concentrate on economies of scale. From customers’ point of view, it can be assumed that there are moderate concerns that may not affect the overall spending on food and drinks for a long period of time. Industry Challenges- Market Competition The hotel and restaurant industry has been affected by the rising inflation, low disposable income of consumers, and service tax structure. Moreover, there are a number of restaurants and hotels offering similar food items. Rollers Cafe is not the only cafe offering delicious Swiss rolls with an in-house open kitchen sharing the recipe with consumers. The chocolate cafe and Hames chocolate cafe are also offering different varieties of chocolates to consumers. Thus, it can he assumed that the competition is quite high as consumers like to eat things that are different in taste and presentation. In order to attract customers, it is important to offer food items at an affordable and attractive price and in the case of Rollers, prices of food items start from ?2 and can be considered as quite impressive. The competition in the food industry can be mitigated by offering quality products and in the case of Rollers, it can be said that with utmost transparency and customer oriented approach; it has been successful to create a place for chocolate lovers. However, it may face challenges in coming years if lacking differentiation strategies (Kotler and Philip, 2012). Industry Challenges- Customer Perception There is no doubt that chocolates are loved by many and customers tend to buy chocolates for no reasons. At the same time, customers buy chocolates for gifting and other purposes (Adcock, et al, 2001). The perception of customers regarding chocolates is very hard to analyse and assess considering the fact that different customers have different preferences. Chocolates are considered as a source of delight and customers do not compromise with the quality. However, when chocolates are presented in a different manner and forms; they are preferred and liked by many (Lotz, 2007). Thus, it becomes important to switch to a product differentiation strategy that will help in establishing the preference for chocolates along with making customers think about a particular brand. At the same time, effective marketing strategies can also be used to influence the perception level of customers in a positive manner (Kotler and Keller, 2012). Organisational Challenges- Product Range and Availability Rollers Cafe has been offering different varieties of chocolate delicacies along with coffee and Pizza. It can be believed that the overall range of products is quite low as there are not many chocolate products. On an average around 12-15 varieties of chocolate products are offered in two outlets. It can be believed that the availability is also less in terms of the reach as there are only two outlets. This can be considered as an awareness challenge and may hamper the long term prospects of the cafe. Thus, requires immediate attention to strengthen the overall image of the cafe (Muntinga, et al, 2011). Organisational Challenges- Technology Technology can be considered as the changing face of any organisation often helping in enhancing the reach and presence in a commendable manner (Boag, 2010). In the context of Rollers Cafe, it was found that, it has a website that is very much limited in terms of sharing information and content. Furthermore, the presence on social media networks is quite limited. This shows that technology is not much used and can be considered as a loophole that may affect the growth prospects especially when people are preferring technologies for everything in their life. This can also be considered as a major challenge that needs proper attention and assessment to create a mark in the food and drinks industry. Organisational Challenges- Budget Budget plays an important and crucial role in assessing the inflow and outflow of the income and expenses (Briggs, et al, 1997). In the context of Rollers Cafe, the budget could not be identified considering the fact that there was very little information available over the internet and other mediums. Furthermore, based on the analysis of the website, store location, size, and range of products and services; it can be said that the budget seems to be quite constrained in terms of investing. However, this is purely based assumptions and thus little results can be derived out of it. This can also be considered as a limitation in terms of developing an effective marketing plan for the cafe. Section-1-B- Marketing Communication Objectives Marketing objectives define the initiatives and strategies of companies to achieve the organisational goals and objectives. Marketing objectives revolve around the 4Ps in the form of product, price, place, and promotion along with the 4Cs in the form of customer needs, cost to customers, convenience, and communication (Kotler, 1998). Furthermore, marketing objectives need to be aligned with the organisational objectives in a significant manner. The major objective of Rollers Cafe is to term business as passion and consider customer satisfaction as major goal. Some of the marketing objectives have been discussed as follow: Customer Retention In order to retain customers for a long period of time, products need to be marketed well through different promotions and marketing tools (Newton, 2012). Customers may try different outlets and brands in order to experiment with the taste buds and thus effective loyalty schemes and promotional tools should be used. The cafe is offers discount coupons that can be redeemed at the two outlets and can be considered as an effective marketing tool. Customer Satisfaction Targets The satisfaction level of customers cannot be analysed and measured as it will keep fluctuating. In order to assess the satisfaction rate of customers, it is important to keep a track of their purchases and visits. This will help in understanding their preference for the products. Visit Duration The more a customer stays at a place; more information can be derived along with understanding the interest level of customers. In this regard, the outlets should be well furnished and decorated. Moreover, customer data and information should be collected on regular basis. Words of Mouth Words of mouth play an important role in enhancing the reach of products and services (Odden, 2009). Rollers Cafe need to impress more number of customers so that they will market about the cafe that will act as a referral, resulting in an increase in the number of customers in the long run in a significant manner (Pieters, 2008). Section-2: Techniques and Requirements 2. A. Critique of Existing Digital Communications 2. A. (1) – Critique- Website After going through the website of Rollers Cafe, it was found that a very simple yet a realistic approach has been undertaken in terms of presenting the information. There is not much information over the website traffic and its reach. It was also found that lack of key words related to chocolate and food further resulted in little appeal. The information being shared on the website is quite limited in nature offering very little scope to consumers to have a feel of place without visiting it. 2. A. (2) – Critique- E-mail Marketing Rollers cafe do not have e-mail marketing and thus online newsletters are not sent to existing and potential customers. This shows that there is very little initiative being taken in terms of creating awareness through newsletters offering wide arrays of information about the cafe and its products. 2. A. (3) – Critique- Organic Search Organic search is based on the use of web pages to garner information over a product or service (Chorlton, 2009). In the context of Rollers Cafe, it was found that there is low presence over the search engines. This is mainly because of the lack of key words and thus requiring Search Engine Optimisation to enhance the visibility and reach. 2. A. (3) – Critique- Social Media Marketing Social media marketing can be considered as the biggest marketing platform for the companies. Rollers cafe has got presence over the Facebook and Twitter but the overall followers are quite less considering the nine month period when these platforms were used to create awareness. This can be considered as the biggest loophole requiring attention. 2. A. (4) – Critique- Digital Marketing Rollers cafe does not have presence on YouTube and there is no preference for other digital media tools too showing little use of the digital marketing tools (Rollers Cafe, 2013). Section- 2 B- Digital Communication Proposal Rollers Cafe is a fairly new cafe with only two outlets and thus little marketing initiatives have been undertaken. At first, it is important to improve the effectiveness of the website. The website seems to be pretty simple and less attractive mainly because of the lack of content and little focus on highlighting the significance of the chocolate products. For this purpose, website needs to be edited by adding more pages on the USP of the chocolate products and how they are different from others. There is no option for online booking suggesting that customers need to go at the stores to buy products. This can be considered as a weakness considering the fact that many small restaurants and cafes offer online services saving good amount of customers’ time. The presence on Facebook is also fairly new suggesting that awareness level is negligible. The cafe needs to use effective Facebook strategies like offering loyalty points to customers liking and sharing the updates. At the same time, concept like customer of the month can be introduced where the person with highest likes and shares will receive a lucrative discount coupon. Rollers Cafe does not have a mobile application and with large numbers of people using Android and iOS platforms, it can be easy to market the products using the mobile application capable of offering information on the chocolate products, flavor of the month, and discount and promotional offers. All these initiatives will help in creating a brand appeal that may be used to attract more number of customers. Rollers Cafe needs to offer vouchers and loyalty points to loyal customers and for this purpose; the customer loyalty needs to be empowered and respected by offering them free loyalty points. All these initiatives can only be taken after implementing other important and useful digital marketing communication tools. Some of the digital marketing communication tools being recommended have been discussed as follow (Wallington, 2012). 2 B (1) - Digital Communication Proposal- Social Media Social media marketing has emerged as one of the highly impactful and influential marketing tools in 3-4 years. It is highly recommended to use Facebook, Twitter, Google+, and LinkedIn to enhance the overall presence along with creating awareness among the existing and potential set of customers. Social media marketing also helps in analysing the overall reach that can be used to assess the business reach and acceptance (Charlton, 2007). 2 B (2) - Digital Communication Proposal- Search Engine Optimisation SEO is useful tool in enhancing the visibility over the search engines. A number of customers look for various information using search engines and top pages signifies top listed information based on the website visits, key words, and content used. It helps in being visible that helps in enhancing the overall website visits. SEO can be linked with the social media marketing and based on that visibility and awareness can be increased an enhanced in a systematic manner (Chaffey, et al, 2006). 2 B (3) - Digital Communication Proposal- Mobile Media Mobile media can be assumed as an easy way to market products and services considering the fact that majority of people use mobile phones and other related devices. For this, data and information of customers is required and based on that messages can be sent to them. This helps in creating awareness along with enhancing the interest level of consumers in a promising manner (Doyle, 2010). 2 B (4) - Digital Communication Proposal- Visual and Digital Media It is highly important to use YouTube as a source of appealing customers by uploading different videos on chocolate products, innovative advertisements, and promotional messages to attract various set of customers. Section- 2 C and D: Critical Success Factors and Key Performance Indicators There are a number of factors that need to be assessed and analysed in order to maximise the organisational performance and success potential. A detailed analysis has been presented as follow: Marcoms Objectives Critical Success Factors Key Performance Indicators Customer Retention- Customer can only be retained by enhancing their satisfaction level along with offering them discounts, promotional offers, and loyalty schemes Introduction of loyalty and incentive schemes Enhancing the awareness level by being more vocal while dealing with customers both at stores and online Increase in the number of customers by 30% Increase in the store visit by at least 10% Increase in the awareness level Increase in the store and website visit Customer Satisfaction- Customer satisfaction cannot be measured as it keeps changing but can be measured by the interest level of customers and store visits. Investment in data capture and mining Continuous development in incentive plans Personalised and customised plans Increase in the number of loyal customers Increase in the number of referrals by at least 25% Overall change in the perception level of customers Visit Duration- It is important to tab the customers’ visit in order to ascertain the footfall and increase interest of the existing and potential customers Retaining customers’ attention Analysis of customers’ interest for products Analysis of customers’ interest in visiting again At least 25% increase in the new customers Increase in the loyalty level of customers Increase in the number of return visits Words of Mouth- Words of mouth play a crucial role in increasing awareness along with doing marketing on a continuous basis Clear and positive message from the existing customers Resulting in the referral and thus increase in the total number of customers Building of a brand Creation of brand value Expansion of reach and visibility Always in the mind of customers It can be believed that all these factors will be of great usefulness and benefits in strengthening the brand image and appeal of Rollers Cafe along with enhancing the interest level of customers in a significant manner leading to better prospects. Section-3 C: Communication Planning Section- 3 A: Integration of Offline and Online Techniques Marketing tools need to be integrated in order to generate maximum value and for this purpose, it is important to key marketing tools that can help in offering different and maximum benefits (Deis, et al, 2010). 3 A (1) - Integration of Offline and Online Techniques- In-store Marketing Stores are a great place to promote products and services and for this purpose leaflets and banners can be used. Leaflets need to be distributed to customers highlighting the attractive offers and detailed information over the chocolate products and attractive range of discounts. This will help in attracting great number of customers (Gibbons, 2010). 3 A (2) - Integration of Offline and Online Techniques- Events Events can be organised on monthly basis to attract customers. Customers can also be involved in chocolate events and fest where data can be easily collected. Data can be further used to contact customers along with making them think and know about the existence and operation of the cafe. 3 A (3) - Integration of Offline and Online Techniques- Press As the start up and small cafe, it is not advisable to invest much on advertisements in the form of print and digital media. However, using press as a medium to enhance awareness can be considered as a nice option. Moreover, it also helps in covering events that can be used to highlight the presence in the social and business environment (Goldfarb, et al, 2011). 3 A (4) - Integration of Offline and Online Techniques- Television Television can also be used as an effective media option helping in creating awareness in an impactful manner. Furthermore, television advertisements can be used in YouTube and other social media marketing platforms to strengthen the overall image. It is not advisable to invest much on advertisements through television but a bit will help in striking the right balance with other marketing tools and thus resulting in better prospects (Kerin, 2010). Section 3 (B) Digital Communication Plan The below chart explains the usefulness and utility of the online and offline approaches in marketing the product, enhancing reach, customer satisfaction, customer retention, and words of mouth. Demographic Target Group Online Approaches Offline Approaches Summary High Income Group SEO (Front Page) Social Media Mobile Marketing Personalised Marketing TV Advertisement Loyalty Benefits Privileged Customer Service High income group people are least concerned about their spending if they are getting quality products and need to be offered personalised and customised services and in this regard SEO and Social media can be of great help Middle Income Group SEO (Front Page) Social Media Mobile Marketing Personalised Marketing Events Promotional Offers TV Advertisement Loyalty Benefits Local media advertising Middle income group people tend to think about their spending and often look for affordable price and quality product and in this regard, Rollers Cafe needs to offer promotional offers, loyalty schemes, discounts along with keeping a strong presence on Social media platforms, SEO, and print advertisements Low Income Group Events Social marketing in the form of direct marketing TV Advertisement Store Leaflets Discounts and offers Lower income group people tend to think a lot before spending and thus, it becomes important to focus on the discounts and events to attract them along with extracting a bit of value Section 3 (C) Return on Investment Return on investment can be defined as returns being earned by investing money. Returns are earned when benefits are earned and in the context of food and beverage industry, it can be said that returns can only be achieved by determining the value. Rollers Cafe has limited chocolate products and from customers’ point of view, returns can be in the form of satisfaction level and value for money. In the context of the company, returns can be valued in the form of the increase of the customers and awareness. In order to enhance the customers’ returns, it is important to offer them quality products at an affordable price along with using appropriate and impactful marketing strategies. Customers may switch to other brands where the returns in the form of the satisfaction level and value for money is high and the cafe needs to focus more on enhancing and strengthening the overall appeal in a significant manner. Furthermore, ROI can be measured to an extent on quarterly, semi-annually, and annul basis offering an idea over the overall return on investments. ROI also helps in indicating the growth and development and can be considered as a tool for forecasting business benefits and profits in the long run. In the context of the Rollers Cafe, it can be said that returns can only be enhanced by focusing on the proposed marketing objectives. At the same time, marketing communication messages should be clear and consistent to enhance the overall appeal and significance. This will lead to a better and profitable return on investments and thus helping in the long term growth and development. REFERENCES Adcock, D; Al Halborg, Ross. C (2001). "Introduction". Marketing: principles and practice. McGraw Hill/Irwin Boag, P. (2010) What Is the Secret to a Successful Website? [Online] [Accessed on 30/11/2013] ] http://econsultancy.com/uk/blog/5437-what-is-the-secret-to-a-successful-website Briggs, R; Hollis, N (April 1997). Advertising on the Web: Is there Response Before Clickthrough?. Journal of Advertising Research. pp. 33–45. Chorlton, G. 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