Distribution Channels and IMC Promotion - Research Paper Example

?Distribution Channels First, it should be emphasized that Off 2 Gran Grans is intended to resort to the issues of corporate social responsibility asa positioning and competitive tool. And, since the target audience of the company involves 60+ aged citizens, 80% of promotional efforts should be oriented at this audience. The rest 20% will involve younger audience who do not have an opportunity to take care and run errands for their parents or grandparents. Considering the nature of the offered services, the distribution channels are intended to be direct (excluding wholesalers, intermediaries and brokers). Therefore, the services are provided with the assistance of highly mobile employees. Team of couriers and executives will reach the target market by scooters or other vehicles. Central office involves dispatching point, call center, coordination facility, and information provider. Therefore, additionally to the administrative functions, the central office is intended for ensuring the efficiency of the services provided. It provides information concerning working hours of the supermarkets and drugstores, traffic jams and bypasses, etc. IMC Promotion Plan The primary objective of the promotional approach is closely associated with the necessity to persuade the target audience that the Off 2 Gran Grans is the company that can be trusted, and the services it provides are worth the fee asked. The target audience has to trust the company’s personnel; hence, the advertisement approach should be aimed at creating the image of a personal consultant, assistant, and a housekeeper. (Kitchen and Pelsmacker, 67) Promotional efforts for the Off 2 Gran Grans Company are focused on hitting the target audience through the promotional channels available for it. Therefore, the key channels are radio, television, direct sales, commercial booklets, yellow pages, newspapers etc. Additional accent are made on internet and social media for the rest 20% target audience. This helps to diversify the advertising efforts, as well as find the proper balance for advertising, public relations, direct marketing, and personal selling. (Schultz and Kitchen, 116) Such a balance is essential for creating the necessary image of the organization, as well as improving the efficiency of the advertising strategy. Considering the nature of the target audience, the most effective advertising is through a bush telegraph, therefore, proper communication process will help to launch additional advertising capacity. Hence, the advertising is considered successful when 200 customers base is achieved. Promotional activities are as given below: 1. Advertising. This is the traditional approach towards promoting the company. It involves newspapers, radio, TV, magazines as well as outdoor advertisement. 2. Personal selling. This approach requires establishing proper communication with the target audience, and then mobilizing interpersonal and persuasive skills. This is achieved by arranging public surveys, collecting personal info for further communication with the potential customers. 3. Direct marketing means sending letters and booklets. It may be followed by personal communication and selling for increasing the efficiency of the efforts. 4. Public relations. Instead of promoting services, it is directed at creating a particular image of the company within the audience. Hence, the personnel of the company will have to give interviews, arrange socially attractive actions, and participate in charity. 5. Sales promotion. This aspect involves price offs, discounts, and free services. (Groom, 39) IMC Budget Considering the rollout plan, the promotion strategy will include the following promotion activities: 1. East County Times advertising costs are $13 inch b/w. 8x8 block would cost $832. Once a month publication totals $9,984 per year. 2. Radio commercial running (WBAL-AM) costs $196 per 60 seconds. 10 seconds clip, (3 times a day on weekdays, 8 times – on weekends) will cost $2430 per month. ($29,164 per year) 3. Small billboards range from $300 to $750. 10 billboards in different city districts will make the necessary effect. ($5000 monthly) 4. TV (CBS Baltimore) ads cost $50 for 10 seconds. 7 seconds clip ($35) shown 5 times a day costs $1225 per week. 5. Web advertising is highly customizable, with $100 as the minimal limit. Google ads will require at least $500 per month, considering high and middle frequency requests. 6. Yellow pages. Half page ads cost $150 monthly. 7. Social media. FB ads costs are $1000 in average per 1000 clicks. Competitive analysis showed that home care companies spend at least $5000 monthly for SMO 8. Sales promotion. Souvenir production like cups or magnets cost $0.80 in average (with 1000 pieces minimum order). T-shirts with logo cost $16 (10x10 inch). 9. Direct mail. Replication $25 for 1000 copies. Mailing: $178.8 for 1000 envelopes + $450 for 1000 stamps=$628.8 Considering the necessity to find the proper balance of the promotional activities, it should be emphasized that promotion budget is regarded as a key priority. Therefore, while the initial investments are $100,000, and up to 30% can be assigned for promotion, the resources will be allocated as follows: Activity Terms Costs TV ads 1 month $ 4,900 Newspaper 6 months $ 4,992 Radio 2 months $ 4,860 Billboards 1 month $ 5,000 Google ads 12 months $ 6,000 Yellow Pages 6 months $ 900 Social Media 1 month $ 2000 Direct mail --- $ 630 Sales promo --- $ 1,600 Total $ 30,882 Since the budget is restricted essentially, there is no opportunity to finance all the activities for a year. Therefore, the first year will be divided into two parts: market penetration with customer awareness (3 months), and keeping in touch with the audience (9 months). (Bulearca, 98) Promo efforts will be allocated as follows: Month 1 Google ads, TV, newspaper, billboards, yellow pages, direct mail Month 2 Google ads, newspaper, direct mail, radio Month 3 Google ads, yellow pages, direct mail, radio Month 4 Google ads, newspaper, direct mail Month 5 Google ads, yellow pages, social media Month 6 Google ads, newspaper, sales promo Month 7 Google ads, yellow pages, sales promo Month 8 Google ads, newspaper, sales promo Month 9 Google ads, yellow pages, sales promo Month 10 Google ads, newspaper Month 11 Google ads, yellow pages Month 12 Google ads, newspaper The subsequent promo budget will be focused on newspaper ads, and Google ads mainly with sales promotion, as well as public relations. PR may be costless (if it is narrowed to interviews only), however, the company can assign 1% of its incomes for charity ($ 1,500 a year). Works Cited Bulearca, Marius. "Is Media Planning the Driver or the End-Product of Promotional Strategy?" Global Business and Management Research: An International Journal 1.3-4 (2009): 98 Groom, Alyssa S. "Integrated Marketing Communication Anticipating the 'Age of Engage'"Communication Research Trends 27.4 (2008): 39 Kitchen, Philip J., and Patrick De Pelsmacker. Integrated Marketing Communications: A Primer. London: Routledge, 2008. Schultz, Philip J. Kitchen. Communicating Globally: An Integrated Marketing Approach. Lincolnwood, IL: NTC Business, 2009. Read More