People Tree Marketing Communication Plan - Dissertation Example

 Marketing Communication Plan 1. Introduction 1.1 Background of People Tree People Tree is a popular retail fashion chain, based in United States (People Tree, 2013a). People tree is recognized as a pioneer in Fair trade and sustainable fashion (People Tree, 2013b). The objective of the company is producing ethical and ecologically acceptable fashion. The company thrusts heavily on fair trade, which implies creating innovative ways of doing business and providing opportunities for people Safia Minney is the founder and present CEO of People Tree. The mission of the organization is to support the producer partners and their effort towards economic independence and control of their environment. The company claims to protect the environment and use natural resources in a sustainable manner and promote initiatives which are environmentally responsible. People Tree aims to provide a free and supportive environment for the stakeholders and investors of the company. 1.2 People Tree’s Brand Problem There are certain aspects of the fashion industry which have come into limelight in the past few years. These can be categorized into fast fashion industry and slow fashion industry. Fast fashion sectors are those organizations which are not associated with environmental sustainability or socially responsibility. They are quick fashions and they go with the trends in the markets. High amount of wastes are a major problem faced by fast fashion industries (Hines and Bruce, 2006). Slow fashion are those sectors which are organized in such a way so as to provide environmental, economic and social benefits to all stakeholders involved in the supply chain. These are the companies who are in this industry for many years and have evolved from a profit-making culture to an environment friendly and sustainable organizational goal. Looking at the change in the communication and perception of the overall industry trends, People Tree now wish to broaden their appeal and become a mainstream provider of fashion. The organization is concerned with its current brand equity and brand image and expects to communicate its brand on a more sustainable and environmental friendly platform. With the change of image and activities supporting a sustainable environment, the organization aims to gain sustainable certificates. According to industry trends, these are certified of sustainability and image makeover will be the communication platform between the industry and consumers. 2.0 Brand Communications Objective 2.1 External and Internal Situational Analysis 2.1.1 External Analysis – Macro Environment The fashion market in United Kingdom is a leading industry. The market is filled with a large number of fashion brands ranging from luxury brands to local street wears. According to fashion United, the total expenditure of UK Consumption on footwear and clothing alone is more than 60 billion. The fashion and textile sector of United Kingdom employs more than 6000 workers. During the global economic downturn, the average household consumption of textile reduced and the growth slowed down. However, the economy has seen a slight rise and few signs of recovery in the past 2 years. Out of the total consumers of fashion retail market, almost one third is traditional shoppers. However, the growth and popularity of online retailing is increasing and is set to become one of the top markets for apparel shopping. As technology is constantly upgrading, more and more opportunities are being formed for both consumers as well as marketers. Consumers are now more equipped and informed and looking for creative methods for purchasing (Boone and Kurtz, 2011). This is also opened opportunities for the marketers in creating new and innovative medium of promotion and attracting customers. 2.1.2 Internal Analysis –Segments and Position People tree is a fair trade certified organization, according to which, sustainable and ethical fashion market is the top priority. The organization aims to transform ethical fashion into a glamorous and desirable market. The brand is positioned as a high involvement category involving much of attraction from the consumers. The brand is placed in the mass category of apparel products for men and women. These include casuals, formals and ethnic wear. These products are medium to high prices and places with the positioning of value for money and affordable pricing. This category of apparel has the largest base of consumers and thus competition is high. Most of the other companies produce similar clothing range. The major differentiation comes from pricing and superior quality. The segmentation of customers will largely depend on the values provided by the brand as well as the psychology of the consumers with respect to the attributed provided by the brand. It is very important to segment the customers on the basis of their interests, activities and behaviour towards the organization. This is very crucial because it will help is preparing appropriate strategies and marketing programs targeting the right consumers mix. The products of People Tree are generally purchased by consumers of higher social class, since it is majorly ethical and high end fashion apparel; the people purchasing these products are more quality conscious rather than price conscious. 3.0 Context Analysis The major objective of context analysis is to find out the factors of communication which can affect the overall strategies of the brand. Context analysis can be understood in two perspectives, business and consumer (Pettigrew, Whittington and Thomas, 2006). 3.1 Consumer Context People tree targets customers from psychographic as well as behaviour segments. In the current scenario, there is confusion among consumers about the worth of ethical fashion. With proper awareness and development of brand image, the organization can overcome this issue. For further research the organization should look into factors such as consumer purchase intentions, their expectations in terms of pricing and quality etc (Beri, 2007). 3.2 Business Context According to the current analysis of the market, a strong divergence from ethical trade fair has been observed. The industry also witnessed a decline in fair trade products in the 2011. Apart from that, another major area of concern in ethical fashion is the market share, which is as low as 1 percent of the total street fashion market. 4.0 Competition and Positioning To understand the exact market positing of People Tree, competitive analysis is extremely crucial. The organization is considered as a high end product, purchased by consumers appreciating better quality and ethical fair trade. The organization is fair trade certified. Other companies which are popular in this niche segment are; Monsoon John Lewis M & S Primark H & M 4.1 Perceptual Map Figure 1 Perceptual Map of People Tree (Source: Prezi, 2013) 4.2 Target Market The primary target markets of People Tree are the younger segment, youngsters mostly in their 20s. However, looking at the expansion of market, and change in overall attitude of customers, the brand has shifted its target market to 20-40 year olds. The objective is to gain a broader market and catch new consumers who can afford to buy. The major challenge for the organization will be to restructure their present style for attracting a bigger market. The organization can also expect to lose few consumers because of the change in focus (Croft, 2000). People Tree differentiates itself with an excellent online presence and better quality products (Rowley, 2005). The organization boasts a strong online presence. The traditional store format of the company is not very strong. The organization has taken some steps with the objective of increase traditional store formats so that the consumers can find their choice of products. With proper awareness of ethical fashion products, the organization can achieve its target (Nagel and Cilliers, 2000). At present consumers are considering purchase of ethical products, especially in terms of quality and clothing. With the help of proper marketing campaigns and educational campaigns, the brand can strengthen its equity and positioning among the consumers. 5.0 Objectives 5.1 Promotional Objective To evaluate the achievements of an organization, it is very important to have a proper and achievable promotional objective. However, realistic and objective strategies are the best, when it comes to producing excellent results and achievement of objectives. Promotional objectives should be specific and numeric in nature and if required should be broken down into further specific objective, so that the roles are clear. Promotional strategies can be further classifies into marketing, corporate and communications objective. 5.2 Marketing Objective and Marketing Communication Objective Marketing objectives of a company should be defined in order to achieve the marketing activities and the marketing plan. The basis of marketing objective rises from the current status of the brand in the market. The most important factor is setting a marketing objective is to set a SMART approach while formulating any objective. A SMART objective means the objective is specific, can be measured, is attainable, the objective set are realistic and the entire operation is time bound. In the present scenario the market share of People Tree in the ethical business is very low. Thus, the current marketing objective of the organization is to increase its share of market to 5 percent by 2015. In order to achieve this specific objective, the brand will have to refocus on its core branding strategies and beliefs, and reshuffle its strategies and other campaigns in order to reach the present marketing objective. The brand also aims to simplify few of its line of products in order to increase the base of customers (Sakarya, Eckman and Hyllegard, 2006). 5.3 Corporate Objective In the present environment, the awareness of consumers about ethical branding is less; this increases the confusion among them. The corporate objective for the brand should be to build marketing campaigns with the aim of increasing brand awareness and increase the brand equity of people tree. The organization wants people tree to be the first priority when consumers think of ethical clothing. 6.0 Promotional Strategy For a proper promotional plan, the organization can opt for pull and push and profile strategy. Originally used for logistics and supply chain, these terms are increasingly used in marketing and communication also. A pull strategy is often characterized by the needs of the consumers which force them to buy certain products out of the lot. These needs are influenced by their capacity to purchase and intention of purchasing. On the other hand, push strategy can be described as the techniques and methods which are implemented to push consumers into buying particular products or services. A profile strategy can be described as a long term strategy where the major objective is brand awareness and building brand equity. For people tree, online branding, outdoor advertising will be the push strategy while marketing campaigns focusing on brand awareness and brand building objectives will be the profile strategies followed. 7.0 Marketing Communication Process and Program 7.1 Advertising One of the most recognised and used advertising model of recent time is FCB model, or Foote, Cone & Belding Planning Model, named after the innovators. This model basically works on the four primary strategies of advertising; those are affective, information, satisfaction and habitual (Vaughan, 2000). It is a useful tool for analyzing the relationship between product and its customers. Thus, by creating an appropriate FCB model for People Tree, the organization will be able to pin point the exact marketing communication strategies which should be implemented for their products category. Figure 2 Foote, Cone & Belding Planning Model (Source: American Consumer Research, 2013) In this case, people tree products fall into high involvement category, because they are normal to high prices and the decision process in longer compared to normal apparel purchasing. Thus, the management will have to follow push strategy by creating awareness about the apparel brand rather than just providing discounts and other promotional techniques (Hakala and Vincze, 2012). 7.2 Creative Strategy In a creative marketing plan, strategies and objectives are articulated very clearly. While there are many creative formats available, following the basic creativity formats in order to attain effectiveness in marketing communication. The basic steps can be; Preparation: it is basically collecting information in order to start assessing the problem. In case of People Tree, the brand can identify its target market, the purchase behaviour of its customers, reasons for repeat purchases, consumer complaints etc. Incubation: in this stage development of ideas take place, which ultimately give rise to strategies to overcome the problems. The management can opt for brain storming sessions and focus group interviews. The organization can also bring experts and consultant who will provide their expert opinion to solve the issues. Illumination and verification: in these two stages, the final strategies are determined and the viability of the chosen strategies is evaluated. After internal and external analysis and defining the strategies, the management will have to find out the viability. For this, the company can compare the strategies with organization where it has proved to be successful. 8.0 Media 8.1 Outdoor Advertisement For outdoor advertisements, transits and billboards will be the best options. The billboards and hoardings will be placed on the major traffic areas as well as hangout places. Colleges and universities will be the new target places for placing the billboards. Transit messages will be put in local transportations such as metro and buses. The objective will be brand recognition. 8.2 Radio Advertising The popularity of radio advertisements is majorly found during festivals. The organization can utilize these festive seasons by imparting an appropriate radio message. Radio advertising is also helpful in terms of special announcements such as campaigns or shows. 8.3 Sales Promotion The brand can opt for sales promotions but on the later stages. At this stage, the organization is concerned with brand building and brand recognition. Sales promotions and discount can demean the actual image of the apparel brand. 8.4 Sponsorship Sponsorships are an efficient method of promotions and acts as a complementary strategy for strengthen the promotional plan. By providing sponsorships to college shows such as dance, drama, fashion shows etc; the brand can create a positive perception in the mind of its potential consumers. This will also help to strengthen the power of the brand in terms of financial stability. 8.5 Direct Marketing Direct marketing is a useful tool of marketing communication mix. Through direct marketing, the brand is able to reach directly to its consumers (Nash, 2000). Direct marketing is helpful when the brand is concerned with distortion of message. Distortion of the message happens when the exact message created by the brand is not able to reach the target customers or is distorted. Distortion of message leads to misconception about the brand, which can create a negative impact. In case of People Tree, direct marketing can be helpful as it is a fair trade product and the objective is based on ethical clothing. Since the present base of customers is not wide, the organisation can opt for direct marketing. It will also help in direct communication with important buyers of the brand. 8.6 E-Marketing E- Marketing has emerged as one of the most popular and cost-effective promotional techniques. With the help of social media and popular web pages, the organisation will be able to spread its brand message more effectively (Dholakia and Uusitalo, 2002). The organisation can also opt for online marketing campaigns, involving people and communities to participate into debates and other chat sessions and spread awareness about ethical clothing and fair trade method. E-Marketing will also be useful in targeting new demographics, for example Facebook and Twitter (Mangold and Faulds, 2009). Apart from that, regular posting of advertisements will ensure brand recognition among consumers (Monsuwé, Dellaert and Ruyter, 2004). 8.7 Schedule The entire promotional programme is schedule for 11months from February to December. The time period will cover all festivals and seasons and will help to create a detailed report on the purchase patterns of consumers round the year. 8.8 Gantt Chart Activities April May June July Aug Sep Oct Nov Dec Advertising Sales promotion Sponsorship Public Relation Direct marketing Radio Advertising E-Marketing 9.0 Marketing Campaign An integrated marketing campaign will involve all marketing and promotional activities. In short, IMC is a method of organising and structuring the marketing plans, with the aim of achieving the objective. In the current scenario, the integrated marketing plan of the company should be divided into appropriate steps and periods, and the objectives of each plan should be clearly defined in order to successfully complete the plan. People tree can opt for a marketing campaign, in order to generate the first awareness among consumers. This can be followed by outdoor advertising and e-marketing, so that the brand recognition is continuous. 10.0 Public Relations Public relations are considered as integral component in any integrated marketing communications plan. Public relations support a corporation by creating a favourable perception about the company. A PR campaign is a long process, involving a series of events. Thus, it also helps in establishing brand awareness and in long term, brand trust, credibility and confidence. However, in case of public relations, it is very difficult to get proper support from media. 11.0 Evaluation of the Integrated Marketing Program Analysis and evaluation of IMC is a critical step in finding out the overall credibility of a marketing plan. The brand should first evaluate the programme by analysing the short term success and achievements of the marketing plan. For example, fashion tree can conduct an online survey campaign, where it can find the acceptance of customers to the various advertising and branding plan they are launching. Proper monitoring of the plan’s progress will help in finding out any grey areas in the strategy, which should be fixed or replaced with immediate effect. The organisation should evaluate awareness about the specific product as well as the awareness about the whole company. 12.0 Regulations and Ethical Concerns Ethical concerns and regulations are considered critically important in marketing plan because the objectives of marketing are connected with many investors and stakeholders, such as regulatory agencies, media, consumers, trade associations, channel members etc. The conceptual description for marketing ethics is different in different perspectives. In case of marketers, ethics is workplace are the regulations, rules and guidelines that should be followed strictly without any compromise. The domain of ethics in marketing can be termed as substantive domain, which is the relationship between organisation and customer (Ferrell, 2004). For marketers, it means that a promise or a claim, which should be clearly justifies with data and facts, failure to which might lead in government action or lawsuit (Watson, 2007). In Case of People tree, the brand should check the credibility and transparency of its business. By keeping all its transactions visible to the government as well as consumers, the brand can gain credibility. In case of consumer complaints and claims for customers, the brand should be able to substantiate itself with appropriate evidence and data (Fry and Polonsky, 2004). References Beri, G.C., 2007. Marketing research. New Delhi: Tata McGraw-Hill Education. Boone, L. E., and Kurtz, D. L., 2011. Contemporary business. New Jersey: John Wiley & Sons. Croft, M. J., 2000. Market segmentation: A step-by-step guide to profitable new business. London: Routledge. 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A literature review, International Journal of Service Industry Management 15(1), pp. 102-21. Nagel, P.J.A. and Cilliers, W.W., 2000. Customer satisfaction: A comprehensive approach. International Journal of Physical Distribution & Logistics Management, 20(6), pp.2 – 46. Nash, E. L., 2000. Direct marketing: strategy, planning, execution. New York: McGraw-Hill Professional. People Tree, 2013a, About us. [online] Available at< http://www.peopletree.co.uk/about-us> [Accessed 17 July 2013]. People Tree, 2013b, Fair trade fashion. [online] Available at < http://www.peopletree.co.uk/about-us/fair-trade-fashion> [Accessed 17 July 2013]. Pettigrew, A. M., Whittington, R. and Thomas, H., 2006. Handbook of strategy and management. California: SAGE. Prezi, 2013. Perceptual Map. [online] Available at < http://prezi.com/bwvz6pvn6z3x/people-tree-presentation-2/> [Accessed 17 July 2013]. Rowley, J., 2005. Online branding strategies of UK fashion retailers, Internet Research, 19(3), pp. 348 – 369. 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