Advertising and Promotions: Nandos Loyalty Card - Assignment Example

Running head: advertising and PROMOTIONS - nando’s loyalty card 9th April Lo Understanding the scope of marketing communications Question 1.1 Communication entails the process of sending or receiving messages from one person to another. The message from the subjects may depict aspects such as desires, needs and perceptions among others. Being unintentional or intentional, communication has three major aspects that make it meaningful. These include the message, the sender and the recipient. In the contemporary business environment, communication is a vital tool that local and international firms cannot overlook (Flew, 2008). In their efforts to maintain the trust of their existing customers or attract new clients, organizations have emulated various forms of communications which are undertaken in the form of advertisement and promotion. One of the firms that have undertaken extensive communication strategies to attract more customers is Nando’s. The section below discusses the communication process and how the communication process relates to the Nando’s advertisement process. As indicated by transmission model that was developed by Shannon and Weaver (1949), communication process consists of six major steps. The first one is the formulation of the idea in the mind of the sender. During this stage, an individual who want to send the message, comes up with something that he or she want to relate to another person. The second step is encoding the message. This implies that putting the information in a language that suits the recipient. For example, the sender who wishes to send a message to a child must encode it differently from that of professional colleague. The third step is transmitting the message. This involves using various avenues such as speaking, writing or using emails among others. The fourth step is receiving the message that has been sent by the sender. As a receiver, one should read or listen to the message. The fifth stage is decoding the message. This entails processing the message in such a way that it makes sense to the receiver. The sixth stage according to the transmission model is understanding the message (Barnlund, 2008). It is worth to note that a message may be sent, read or listened to but understanding the message is the most paramount thing. In the Nando’s advertising process, communication process has been effectively utilised. For example, before the launching of Nando’s Loyalty Card, the firm came up with the communication idea that depicted the use of a card that cannot be used in libraries, night clubs or coffee shops but only in Nando’s. Similarly, the business has used various channels of communicating with the receivers who are the consumers (Berlo, 1960). These channels include spans radio, outdoor advertising and 18 Feet and Rising (Haggerty. 2013). In this way, large number of audience is able to receive the message in a timely and effective way. Based on the above discussion, it is clear that effective communication is key in the operations of Nando’s. By fully involving its receivers in the process and use of proper message and channels of communication, the firm is able to effectively inform its audience about the Nando’s Loyalty Card and its benefits. Question 1.2 To: New staff intern From: Marketing coordinator Date: 9th April 2014 Subject: Structure of the UK marketing communications industry UK marketing communications industry is well developed and as such it acts as an avenue through which local and foreign firms improve the customer awareness. Additionally, it provide you with an opportunity to work in various fields such as advertising, management of brands, market research, public relations and marketing communications. Within the industry, one is able to meet and negotiate with various employers providing graduate schemes. Notable firms that offer graduate schemes in the industry include WPP, Nestle, Diageo, Unilever and GlaxoSmithKline among others. Despite that agencies in the UK marketing communications industry do not offer employment chances to many people, as an intern, I would advise you to find the opportunities in these agencies. Example of agencies includes Pulse Group, Abbott Mead Vickers, Iris, Saatchi & Saatchi and Ogilvy. Similarly, there are a number of public relations consultancies that one can seek their services in order to improve communication within an organization (Fill, 2009). The major PR consultancies include RLM Finsbury, Brunswick, Weber Shandwick, Edelman, Bell Pottinger Private, FTI Consulting and Grayling among others. Notable market research agencies that as an intern you can seek their assistance in getting marketing information includes TNS, Ipsos MORI, B2B International, Millward Brown,GfK NOP and Mintel. Once you join the industry, you will benefit in various way for example working in an office, high salaries and working in a dynamic team among other benefits. Question 1.3 As the demand for products and services increases in the local and international market increases, firms have embarked on extensive advertisement and promotion as a way of attracting more consumers. In this regard, governments have come up with various regulations in order to control the advertisement processes and ensure that only ads that uphold ethics are allowed. Similarly, firms within the advertising sector have come up with their own rules that guide them on the advertising and promotion processes. One of the major benefits of strictly following up the advertisement rules in the UK and other markets is that it avoids use of misleading information that can lead to high unregulated demand for a certain product. By not controlling the demand of some products, global economy van experience a recession just like the one that hit the world in 2008/2009. Within the UK, promotional activities of Nando’s are regulated in order to avoid harmful, offensive and misleading information. Advertising Standards Authority (ASA) is responsible for offering statutory authority. This implies that ASA ensures that Advertising codes are followed. Through the Communication Act of 2003, ASA has the authority of ensuring that broadcast contents meet the outlined standards including upholding ethics. The UK code of broadcast advertising is written and maintained by the Broadcast Committee of Advertising Practice. Apart from the statutory regulation, promotion and advertising in UK is also monitored by non-statutory tools. The advertising industry has itself established advertising codes that must be followed by the organizations (Daniel, 2009). The regulations ensure that businesses experience the same playing filed in the advertising and promotion. One of the notable advantages of the self regulation is that it is cost effective as compared to statutory regulation where due to court cases, legal fees are high. Through the strict following up of provisions as outlined by Communication Act of 2003, ASA advertising codes, as well as rules set by the firms themselves, promotion and advertising has been effectively regulated. For example, in 2012, approximately 31,000 complaints were brought about and after being checked, 3,700 ads were withdrawn. Due to the stiff competition in the current business arena, statutory and non-statutory regulations in the UK, have effectively addressed the challenges that have been realized in the business environment. Based on the importance of the advertising industry in the growth of the UK economy, small and large firms must be focused at adopting the laid down legal provisions. Question 1.4 With the increased use of social media marketing, many firms have turned to the use of face book and twitter among other social sites in order to attract the attention of the consumers who are tech savvy. Notably, young consumers have turned to social sites to seek for more information regarding the brands they want to purchase. As the result of emergence of modern methods of communication, most of the UK based firms have turned into using social media, digital marketing, proliferation of smart phones and tablets among others during their advertising. Even though traditional avenues such as newspaper and local magazines are still being used by firms, technology has positively impacted on the marketing communication in UK. In its endeavour to create a strong positive relationship with its consumers, Nando’s has embarked on use of modern methods of communication. For example, the company use its website to promote the Nando’s Loyalty Card. The advert that emulates the tag It only works in Nando’s, is able to be shared by the consumers through face book and twitter (Nandos, 2013). Additionally, the company has provided information on its website that relates to the benefits of Nando’s Loyalty Card. Nando’s also uses television channels such as news24 as well as you tube to inform the consumers about the various brands in the market including Nando’s Loyalty Card. Lo 2 Understanding the role and importance of advertising Question 2.1 For any company to be successful in the local and international markets, it has to ensure that it emulates unique marketing strategies that cannot be easily copied by the competitors. This implies that apart from producing quality product that meets the needs of the customers, the price, promotion, products and place aspects of the brands must be in line with the needs of the customers. Integrated promotion strategy entails the use of various tools of communication and media in order to send a message to the consumers regarding the existence or the benefits of particular brands. Being one of the elements of the marketing mix, promotion entails two way communications between the consumers and the company. In order to ensure the success of an integrated promotional strategy, marketing managers must first undertake a segmentation process that entails dividing the market into groups. This should be followed by targeting. This means identifying the group that the message will be directed to. Marketing managers should then position the brand in the market and then come up with the message. In an integrated promotion strategy, advertising plays vital roles. Mostly importantly, it is focused at convincing the consumers that the products or services provided by a firm are the best and therefore consumers will get value of their money. Additionally, advertising improves the image of the firm in the sense that it provides true information regarding a product. Based on the fact in most cases promotion involves new product such as the Nando’s Loyalty Card, advertising helps to create a need on the side of the consumers thus making them to buy the products once they are promoted. As a way of informing its customers about various products it has in the market, Nando’s emulates its website http://www2.nandos.co.uk to advertise its brands. During the introduction of Nando’s Loyalty Card, the use of tagline, “It only works at Nando’s” as an advertising tactic greatly enhances the awareness of the card. Essentially, the advertisement indicates that Nando’s Loyalty Card is unique since it cannot be used in any other place thus customers are valued by the company by providing the product. Question 2.2 Branding is a process that companies are involved in by creating a unique name and images for products in the consumer mind. Branding is normally achieved through advertising and the aim is to make sure that establishment of the product and different product in the market that will attract and retain loyal customers in the market. Branding in companies makes it possible to market the products in simpler manner without necessarily using expensive means of advertising. Branding though expensive to the companies, it is one of the effective way that can be used to attract consumers in the market and thus, if appropriately put in place it can make Nando’s to be well known and acceptable in the market. One of the strategies that Nando’s has used to strengthen their brand is seasonal campaigns for example in Christmas 2011 campaign where they increased brand awareness over the Christmas period. The launching of the campaign ran throughout the year making strong awareness of the products (Giesler, 2012). Another branding strategy that is used by Nando’s is social media that is used to advertise their products so that they can be acceptable in the market. Nando’s has launched a range of engaging messages through the use of social media where the customers are encouraged to interact with the company. The use of social media and seasonal campaigns make it possible for the company to strengthen the company products since they make the customers to be aware of the products that are already in the market thus making the product to be acceptable in the market. Question 2.3 In order to ensure that an advertising campaign is successful, companies must emulate proper planning concepts that are unique and strong to achieve the attention of the consumers. One of the planning concepts that Nando’s can use is reach. In its television and social media marketing, Nando’s should inform the consumers that Nando’s Loyalty Card aim is to reach all the consumers in the UK market as well as international market. The use of eye catching colour on its adverts, Nando’s will ensure that they reach their consumers regardless of the position and the distance they are located (McCarthy, 1964). Nando’s can also use the concept of frequency. Since the firm objective is to make Nando’s Loyalty Card a unique product that the customer will use to access the firm’s brands, Nando’s should indicate that no matter how many times the consumer will use the Nando’s Loyalty Card, they will get quality services. Additionally, Nando’s can provide an opportunity through which customer who frequently uses the Nando’s Loyalty Card earn points. Such points can be used by the consumers to get free products. Thus, the two key media planning concepts that is the reach and frequency will make the Nando’s Loyalty Card campaign achieve its objective. Question 2.4 To: New staff intern From: Marketing coordinator Date: 9th April 2014 Subject: Processes involved in working with advertising agencies The first step in working with advertising agencies is agency selection. This entails aligning the objectives of the business with those of the various agencies. Additionally, business owners must look at the marketing objectives of the shareholders in order to ensure that the marketing agencies selected are able to meet the goals. After the agencies are selected, you need to appoint them by initiating a contract that should be in form of writing and signed by the advertising managers. In order to ensure that the advertisement agency comply with the advertising codes, it is imperative to ensure that you issue them with a good practise guidelines. This is followed by creating regular communication with the agencies and updating them on new brands (Mulhern, 2009). In this way, you will ensure a strong positive agency client relationship. The last stage in working with the selected agencies is to remunerate them. In most cases, agencies offer a commission to its employees. Similarly, individuals who employ the services of agencies remunerate them through commission or fees. Lo 3 Understanding below-the-line techniques and how they are used Question 3.1 Below-the-line promotion (BTL) entails promotion whose aim is to reach customers more effectively. Being under the control of organizations, BTL promotion mostly uses interesting techniques that firms use to attract the attention of the target segment. One of the major advantages of below the line promotion is that it is cost effective based on the fact that a firm focuses on specific group of people. Additionally, due to direct communication and use of appealing promotional ways, BTL result to a strong impact on the customer awareness. Nando’s can use direct marketing as a way of promoting the Nando’s Loyalty Card. This would involve use of flyers and direct mail. Based on the large number of customers that use Nando’s products, the firm can come up with a strategy where customer would be providing their email addresses and when a new product is launched each of the customers is notified. Sales promotion through the use of open vans accompanied by live bands is another way that Nando’s can use to educate the public on the importance of Nando’s Loyalty Card (Rajagopal, 2007). Similarly, through initiating public relations for example by use of voice records any time the customer uses the Nando’s Loyalty Card is an important strategy that would ensure that the new loyalty scheme is successful in the UK Question 3.2 Distribution of leaflets is known to be capable of improving the marketing success of Nando’s Company in UK. This means that Nando’s can choose flyer distribution and thus delivering effective door to door campaigns in UK. The door to door awareness of the products in the company, make the firm’s products to be advertised in a simpler manner but it is tiresome to the employees who keep on moving and providing awareness of the products. Telemarketing is another form of below–the –line promotion and this means that Nando’s Company will have to work harder and improve the sales cycle at all levels. Telemarketing is highly effective, flexible and measurable route to the market (Matt, 1999).Telemarketing is the most interactive method in the marketing medium available, the method helps the managers of Nando’s to interact with customers where they are given time to ask questions relating to the company. The manager then will have to answer the questions addressing the customers concerns and thus making sure that they company effectively addresses the customer’s complaints. The use of telemarketing strategy is the only way that one can adjust the strategies an individual is planning to use to market the products. This means that the method helps Nando’s to make any changes at any time to make sure that the required results are achieved and increase the chances of achieving the desired results. Phone call to one customer can change the other customer’s views towards the products since the customer will spread the message to the other customers regarding the product. Social media is widely used by many companies and is an effective way to advertise products, Nando’s in UK usually use the social media to market the company brands. Social media on the other hand gives the company a thriving ground where the company is able to advertise the different brands in the market thus increasing the customer awareness either locally or internationally. The possible benefit of using the three below-the-line promotions is that Nando’s will dominate the market due to popularity but the cost is high comparing with other methods of promotion. Nando’s will have to spend a lot of funds so that the three method of promotion can be effective. Lo 4 Be able to plan integrated promotional strategies Question 4.1 One of the methods that can be used for setting a promotional budget is percent sales method. The strategy aim is to sell more products to the customers and thus Nando’s will have to invest more in promotion. But the most applicable method that I can use is task oriented method; this means that when one is setting a promotional budget the company must consider the set goals of Nando’s and the loyalty card in the UK. Nando’s will have to start with promotional tactics or strategies that will advance the communications strategy and this will mean each promotional method will be allocated a certain amount of funds. Finally, Nando’s will determine what the clients really need thus achieving the right promotional method that will be used and eliminating others thus giving the company an idea to formulate budget based on the company capability of spending. Spending of the company will depend on how the best they sell. High sales volume makes the company to make a lot of profits thus increasing the chances of promotion strategies which in turn will make the company to achieve the desired results. Question 4.1- Question 4.4 During the launching new menu featuring seasoning from the Caribbean in the UK, a good promotional plan is necessary. First, Nando’s will use techniques of attracting new customers and ensure that the existing customers purchase the new product. This will be done by coming up with a competition whereby each time a customer purchases the new products he or she is given a voucher that will make them participate in final draw that will involve fabulous prices (Belch and Belch, 2011). Nando’s will also use banners to communicate with UK consumers. The target audience is the young people who earn average income as well as executives who are regular customers for Nando’s products. It is worth to note that due to the high level of propensity to consume by the average income earners, they will be willing to purchase products in the new menu (Sullivan and Steven, 2003). In this way, they will word of mouth to promote the new quality brands. The executives on their part will make repeated purchases thus increasing Nando’s sales. The communication objectives of the promotional plan are to inform the public of the new menu and its benefits as well as to create strong awareness of the new Caribbean menu in UK market. The banners that will be erected in major highways within the UK cities will not only inform the public about the new menu, but also it will inform the public about the Nando’s competition and the wining vouchers. This is promotional integration that will generate strong customer awareness and sustainable positive relationship with the consumers (Kenneth and Donald, 2007). One of the major techniques that will be used to measure the success of promotional plan is by comparing the sales prior and after the promotion. High sales after promotion will thus indicate the plan has attained its objective. Similarly, through positive feedback from the customer is also an indication that the plan is successful. 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