Planning Technique for Advertising Campaign - Essay Example

Table of Contents Introduction: 3 Body: 4 1a PESTLE ANALYSIS: 4 1b SWOT ANALYSIS: 5 2 Porter’s Five Force Model: 7 3 Segmentation: 8 4 Targeting: 9 1.5 Buyer Behaviour Affects: 9 1.6 Positioning Strategy: 10 2.1 Marketing Mix: 10 2.2 Distribution Strategy: 11 2.3 Pricing Strategy: 11 2.4 Promotional Campaign: 12 2.5 Advertising Campaign: 13 2.6 Planning Technique for Advertising Campaign: 14 2.7 Extended Marketing Mix: 14 2.8 Executive Summary: 15 3.1 New Product Concept: 16 3.2 Difference in Marketing of Anki Drive to Businesses rather than Individual Consumer: 16 3.3 International Marketing to Clients across the Globe may differ from Domestic Marketing in the UK: 17 3.4 Effective Strategic Plan: 17 Critical Analysis: 18 References: 20 Introduction: Anki is a four year old company in robotics and artificial intelligences industry. In 2010 it was founded by three robotics Ph.D students. It is the US based company, whose headquarter is situated in San Francisco, USA. This company was founded by three people. The founders of Anki are Mark Palatucci, Boris Sofman and Hanns Tappeiner. They done Ph.D program in robotics at Carnegie Mellon University. Their main idea was to develop a intelligent gaming system. Anki Drive is their first product, which launched in the US and Canada only. It is robotic car racing game for real physical world. This game is designed for indoor use only. It can be oprated by Apple iOS devices such as iPod, iPod (5Th generation) and iPhone. Now Anki is willing to launch Anki Drive to the UK market. The whole discussion and analysis will help Anki in their marketing strategy for the UK market. Body: 1.1a PESTLE ANALYSIS: PESTLE Analysis is an essential and significant tool for analysis of computer and robotic game company i.e. Anki. It will help to find out macro economic factors which are the issues in this industry. This analysis will tell about the advantages and disadvantage of computer and robotic game industry in terms of political, economical, social, technological, legal and environmental. Political: Anki is going to launch their new product in the UK market. Anki Drive is a new era of game. It can face lots of problem in the UK market, related to government policies. However, the video game industry market of UK is largest market of Europe and third largest in the world. According to a report the UK market generated $5.2 billion of revenues from video game industry (Newzoo, 2012). The UK market can earn more profit, if this new and unique car racing game is launched in this market. It helps the UK market to increase employments. Economic: The price of Anki Drive in the US is $199.99 and when it will be launch to the UK market it price becomes £119.21 (direct currency conversation) plus export charge or trading charge of product it may go up to £160 (approx. value, since the price factor may vary with loan factors between this two nations). Trade between these two nations’ shares the global largest foreign direct investment partnership. Hence, there will be no issue between these two nations in terms of economic. Social: In the UK market there are a huge number of Apple product users. Hence, it cannot be a major problem with Anki in terms of social issue in the UK market. Since, Anki Drive is only supported by iOS’ compatible products i.e. iPhone and iPad. Technological: Here, technological factor for Anki can be considered as product quality of Anki Drive. However, Anki’ is a new company and willing to lead the global market. Hence, they will not compromise with the product quality of Anki Drive. Legal: In Europe, PEGI is an organization, which controls the consumers buying decision by rating the game in terms age limit and contain of the game. Since, Anki Drive is a car racing game and it do not contain any violence or harmful effects. Hence, it would not be problem for Anki to their product in the UK market and to all age group. Environment: There will be no issue regarding environment. Since, this product does not contain any harmful factors related to environment. This game is indoor use only. 1.1b SWOT ANALYSIS: STRENGTH: Anki Drive is a new and an innovative idea in gaming world. It is car racing game for real physical world. The cars of Anki Drive are controlled with the help of iPhone and iPad. It is first time that any toy car which can be controlled by phone or tablets. The design of the Anki Drive’ toy car are very innovative and high technology are used in it. It is based on robotic theory. Since, this technology of car racing game with the help of iPhone and iPad is new, so the Anki Drive’ main strength is association with Apple as big brand. Even people can buy this product from websites of Anki and Apple Store. Weakness: Since, the Anki drive is controlled with the help of product of Apple i.e. iPhone and iPad, and this cannot be controlled by other brand of phones or tablets. For example, the user of Samsung’ android phones or tablets can’t not be used to play this game. So, this will be count as major weakness of Anki Drive, since there are lots of android users available in global markets. Another weakness of this product is that, Anki Drive is only available in US and Canada Market yet. Opportunities: Hence, Anki Drive is new trend of car racing game, which can be controlled by the iPhone and iPad, which will increase vogue among youth. Even more, it is first and unique display of Anki Company as their technology. For this, the company is getting fund from big players of venture capital and private equity industries, they are Index Venture, Andreessen Horowitz and Two Sigma which is nearly about $50 million. Threats: Hence, they are using a new and innovative technology in gaming world. So they do not have big threats. However, many toy industries such as Maisto, MJX, Silverlit, and Mattel are developing toy car models. Even though, electronic art will also count as competitor because they have huge number car racing of video games. The toy cars of these industries are controlled with the help of remote control system and they are cheaper in price than Akin Drive. 1.2 Porter’s Five Force Model: Threat of New Entrants: Low Since, it is a new segment for both video gaming and computer toy industry. Anki is new and now is in growing stage. It will be hard for new players to follow them in this segment. In this segment lots of high technology, new innovative ideas and research works are require, which cannot be done an armature new player. Hence, lots of capital is also requiring in this segment. Threat of Substitute: Medium Sony Computer Entertainment, Mattel, Maisto and many more can be count as a substitute of Anki Drive. Their products are very cheap in price than Anki Drive. Hence, the buyers have chance to switch. Moreover, Anki Drive is different from the product of these industries. Bargaining Power of Buyers: Low In this segment, the buyers have less power for negotiation. Since, Anki Drive is a unique product in gamming and computer entertainment world. The high and unique technology is used to develop this product, and now days living standards of people are also increased, so they will get attract to this product and able to buy this. Bargaining Power of Supplier: Low Akin Drive is only controlled by Apple products i.e. iPhone and iPad. Hence, it cannot be controlled by other phones and tablets. Degree of Competition: Medium In current market scenario, there are many industries that are producing car models and toys, but they old fashioned and out dated technology. In this modernization world, all people want new and innovative technology, which can entertain them. Hence, Akin Drive is unique toy with lots of modern features, so it will attract more youth. Conclusion of Porter’s Five Force Model: From above Porter’s Five Force Model, it is clear that the Akin Drive will get more famous into market. Even though it is new idea and lots of unique technology is used to develop this product, many youth will be getting attracted to it. Especially those people you have products of Apple, such as iPhone and iPad will love to purchase this new technology for entertain. 1.3 Segmentation: All buyers have different taste in purchasing. They might have different needs and likes & dislikes. For example, not every people have same taste to purchase a garment or mobile phone. It all depends on brand, price of product, quality of product and many more. In this world there are many different types of buyers and their needs are also different. So the segmentation helps to identify the buyers according to the product. Akin Drive has lots of unique features and one them is, it only be controlled by iPhone and iPad. So in this case, the buyers of this product will be Apple product buyers or who are willing to buy Apple products. Hence, in this situation Akin should focus on those markets where Apple products like iPhone and iPad are easily available and high number of Apple products is using by consumers. 1.4 Targeting: To target a market means, to sell the particular product and service to those people who will be get beneficial from this product or service. In others way it can be explained as selling of product or service to needy buyers. Here, the youth people should be targeted and those have iPhone or iPad. Even more, gamers are should also be target for this product, since it is new and unique technology has been used to develop this product. There are many youths and gamers in UK. Akin Drive will provide them a unique way and entertainment to play this game. The youths and gamer are always shows interest in new pattern of games. It will be the benefit for Akin’ to lunch their product in UK market by targeting youths and gamer. 1.5 Buyer Behaviour Affects: UK is third largest market for gaming industry. Even though, a large number of sports and game are played in UK. There are many gamer who love to play new and innovative games. So, if the Akin do marketing of Akin Drive then it can influence the gamers of UK and also youth will be get attracted to it. It is a benefit point for Akin’ that this car racing game is associated a big brand i.e. Apple. It will helps Akin’ to develop a trust among buyers. Even, Apple has good influence in the UK market. This thing can be utilized by Akin’ to attract the buyers of the UK market. Even though, if Akin organize an event in the UK market for the gamer and buyers, then it will give more influence on the buyer behavior. Thru this event the buyers will know about the Akin Drive and its function and it will create a big craze among the gamer and buyer. This type of event will very cost effective and it can be done in galleria, where huge number of people comes and visit this event. 1.6 Positioning Strategy: Akin’ should focus on to increase their brand name and sales volume for Akin Drive. Since, it is new company in gaming industry. This thing can be achieved by using good strategy in advertisement and promotion activity. However, they can use the name of Apple brand to sale their product in to the market. Brand positing for any new company is very vital; otherwise it will not attract a large number of consumers. For this, Akin can use the name of Apple. For product positioning, Akin’ has to tell the differences between its product and their competitor’ product along its feature to the consumers of the UK market. This will help the consumers to understand about Akin Drive and its unique technology. In the UK market, there are many gaming industry are present but they do not carry the same technology as Akin do. Hence, it will be easy for Akin to create a brand equity in the UK market, which also be helped to increase the sales volume of Akin Drive. 2.1 Marketing Mix: Marketing mix is a combination of product, price, promotion & distribution of product. Here, product is Akin Drive. The price factor of Akin Drive in the UK market may vary from the US market. The reason behind of this is, Akin has no manufacturing plant in the UK, even more it may also depend on the demand of the UK market and also the trading policies between the US and the UK. However, price factor should not be their issue. Since, these two nations are involved in direct trade investment and it is the largest in the world. However, Anki Drive will be new in the UK market, so they need to concentrate on promotion activity thru which the buyers of the UK market will get attract and understand about the product. The promotion of Akin Drive can be done with various ways. It can be done thru social media and events. Even though, they are associated with Apple, so they can use BTL policy during their promotion in the UK market thru Apple stores. It will help to Akin to increase their sales in the UK market. Distribution of product is also important, since they do not have retails outlet and manufacturing plant in the UK, so it can be issue for them. However, in this case they can use Apple stores to target their buyers. Since, Akin Drive is compatible with iOS products, so it will be better for them to distribute their product thru Apple store. Hence, they are doing similar thing in the US market also. 2.2 Distribution Strategy: In initial period they can distribute Akin Drive thru Apple stores of the UK market. It will also help in their budget. Apple store will be count as intermediaries. Thru this distribution process Akin can link with the buyers of the UK market and start performing sales of Akin Drive. It will be the good way to link their product with Apple (a big brand). It also aids to gains trust from the buyers. 2.3 Pricing Strategy: Pricing strategy for a product in a new market, it depends on many factors. The factors for Akin could be trade barriers, competition from local market, price localization and export subsidies. Hence, there should be no trade barriers for Akin in the UK market. The other problem will be the competition from local market. Since, the UK market is third largest market in video gaming industry and there are already many video gaming industry are present and dominating the UK market. Although Akin Drive is car racing game and lots of new and high technology is used to develop this product, which is very new and unique product for the UK market. Hence, local competition would be low for Akin Drive in the UK market. Another vital factor could be export cost of Akin Drive. Even tough, Akin can put the price of Akin Drive on the based pricing model. There could be only two suitable models for Akin to enter in a new market. 1. Premium Price: In this Akin can keep their price of product little high to attract the buyers. Since, the buyer perception on high price, the buyers thinks that the product will reliable and it has high status. It is preferred here because the association of Akin with Apple. 2. Target Pricing: For any new market, all companies should make target in terms sales. Since, Akin will be new in the UK market. So they have to think about sales volume target for return on investment. 2.4 Promotional Campaign: The marketing objective of Akin’ in the UK market is sales of Akin Drive and to get success in the UK market. To do this, they need a strong promotion activity in the UK market to get success as a good brand in gaming industry. The promotional campaign can be done with two methods one below the line promotion and other is above the line promotion. The below the line promotion will be most preferable for Akin because this is most cost effective. In this, they need to organize few events to attract the buyers and gamer. It can be done in galleria, where huge number of crowds are come to visit. It will be better way to communicate with mass and tell them about the Akin Drive and its features and differences in respect of competitors. In Apple stores, they can use point of display and give demonstration to the buyers about the Akin Drive, which will be more influential and cost effective. At that time, queries of the buyer would be solved by the sales person. Now day, social media also play vital role to promotion of the product. Akin Drive can also be promoted thru social media, where Akin interact with huge number of mass. The buyers also get information about the Akin Drive thru social media pages. 2.5 Advertising Campaign: The Akin can use online advertising method to target audience. There are many ways to do online adverting. Few are online ad thru internet which will appear in search engines result pages, web banner, social networking and pay per click. Online ad like search engine result pages and web banner are nearly same. In this, Akin Drive will be displayed in result pages of search engines and attract the users to know more about the product, whereas in web banner is pop-up method is used. Even more, advertising thru social networking is common and more effective to attract a large mass. Since, youth are spending lots of time in social networking sites. It will be easy to attract youth in a simple way. Pay per click ads is also very effective. Through this method they Akin can counts the numbers of users or buyer those who gone thru this advertisement. These all methods of advertising are very cost effective and targets huge audience at same time, since it is time consuming also. Akin can also do advertising thru the help of newspaper and local televisions. This method will only target local people. It will be very expensive than the online advertising method and time taking too. 2.6 Planning Technique for Advertising Campaign: In online advertising, first Akin has to target their audience thru sports and gaming sites. In that sites number of visitors like gamer and youth are very high. This type of sites usually accessed by the gamer and youth, so they can attract and get information about Akin Drive. For example, if Akin Drive ads are showing in Yahoo Sport or ESPN then the sports and game lover will know about this. These sites are visited globally and have mass people. So it will be easy for Akin. Ads thru newspaper, magazines and television, then Akin should focus on local sport news paper and local sports television channels. For example, Daily Mail a famous news paper in the UK; Sports Illustrated, ESPN The Magazine are famous sports magazine in the UK; Euro Sports, ESPN UK are national television sports channels and Chelsea TV, MUTV are local televisions sports channels. This method will be very expensive, since it does not target whole mass. 2.7 Extended Marketing Mix: Physical evidence, people and process are considered as extend marketing mix and these are also essential for a business. Physical evidence means where the services of Akin can be performed or products of can be sold. This can be performed thru Apple store or Akin store. Even more, it can also be performed thru sports retails like GAME Store or online retail shop like GameStop. Here, the buyers could visits the retails for Akin Drive. People are those who can solve queries of the buyer related to Akin Drive regarding sales. They are sales persons who will sale Akin Drive in the UK market. They will interact with buyers physically. Process could be after sales services facility of Akin Drive. They will solve the issues after sales regarding repair or exchange. Mostly, they will handle the queries related to Akin Drive. 2.8 Executive Summary: Akin Drive will be more popular in the UK market. Since, it is new idea and lots of unique technology is used to develop this product, many youth will be getting attracted to it. Especially those people you have products of Apple, such as iPhone and iPad will love to purchase this new technology for entertain. The buyers of this product will be Apple product buyers or who are willing to buy Apple products. Akin’ should focus on to increase their brand name and sales volume for Akin Drive. Since, it is new company in gaming industry. This thing can be achieved by using good strategy in advertisement and promotion activity. However, they can use the name of Apple brand to sale their product in to the market. In initial period they can distribute Akin Drive thru Apple stores of the UK market as intermediaries. It will also help in their budget. It will be the good way to link their product with Apple (a big brand). It also aids to gains trust from the buyers. Pricing strategy for a product in a new market, it depends on many factors. The factors for Akin could be trade barriers, competition from local market, price localization and export subsidies. Since, the UK market is third largest market in video gaming industry and there are already many video gaming industry are present and dominating the UK market. Although Akin Drive is car racing game and lots of new and high technology is used to develop this product, which is very new and unique product for the UK market. The marketing objective of Akin’ in the UK market is sales of Akin Drive and to get success in the UK market. To do this, they need a strong promotion activity in the UK market to get success as a good brand in gaming industry. The Akin can use online advertising method to target audience. There are many ways to do online adverting. Few are online ad thru internet which will appear in search engines result pages, web banner, social networking and pay per click. 3.1 New Product Concept: The new product concept for Akin should be new software for Akin Drive, which also compatible with other OS rather than iOS. Since, Apple products are limited to the people and it very expensive too. It might be possible that in the UK few gamer or youth are not Apple product. If they are willing to buy Akin Drive for entertainment, then they also have to buy iOS compatible product i.e. iPhone, iPad and iPod. This will be considering as additional cost for Akin Drive. Hence, Akin should focus on new software which can be compatible with other OS like android, blackberry OS, or symbian OS. These OS are very much cheaper than iOS. 3.2 Difference in Marketing of Anki Drive to Businesses rather than Individual Consumer: It would be better way if Anki promote their product (Anki Drive) to potential distributers rather than individual consumer. It will be very cost effective in terms extra services by Anki in the UK market. Even more, it will be very useful to target many consumers too. Akin can promote their product thru sports retail outlets; it could be in both ways via physical retail outlets and online retail outlets. In the UK there are many physical retail outlets who deal with game and sports materials. For example, Anki can promote their product thru GAME Store, which is big retail outlet in the UK market for gaming. Even though, thru online outlets like zavvi.co or GameStop, these are famous for online gaming retail outlet. This process will be much cost effective than targeting individual. It will help Anki to expand their business in the UK market. 3.3 International Marketing to Clients across the Globe may differ from Domestic Marketing in the UK: Every people do not have same taste to buy a product. A few can prefer brand or price or quality or quantity. These all depend on the buying behavior of consumers. Similarly, the culture every nation is also different and it also changes the buying pattern of buyer. For instance, people of China prefer their local brands rather than the international brand. They have much trust in their local products. Even though, all nations have different approaches and values regarding any product. However, economic conditions of all nations are also different. The price of Anki Drive may vary with nations in terms of economic and their marketing strategy. 3.4 Effective Strategic Plan: Anki should focus on to promote Anki Drive with the help of market leaders like Google, facebook and other social media. Since, social media has large number of visitors from worldwide. It will be very useful strategy of Anki to interact with the large number consumers and tell them about Anki Drive. For instance, via Google AdWords video, they can advertise their product globally. When visitors will seek for video in YouTube that time they see the ad related to Anki Drive and interact them to it. Facebook contains lots promotional activities page via which Anki Drive also get promoted. Facebook as a social media site has largest number of users. It will be very easy to target them in very cost effective way. Critical Analysis: There are many marketing plans has been discussed related to Anki Drive for the UK market. Online marketing for Anki Drive will be more efficient and cost effective rather than the general marketing. Since, it cover huge mass at same time, it will save money. However, there will some limitation if they promote only thru online because thru online promotion or online retelling, they will not be physically present in from of the buyers. It may cause lost of trusts of the buyers from Anki. Hence, Anki should also focus on some physical activities like organize an event for Anki Drive in the new market is most preferable. The buyers will get understand and solve the queries related to Anki Drive. References: Davin, M, 2013. Anki announces release date for Anki Drive robotic race cars. [Online]. Available at: http://thebusinessofrobotics.com/consumer/anki-announces-release-date-for-anki-drive-robotic-race-cars/. [Accessed On May 15, 2014] Kotler P., Armstrong G., Saunders J., Wong V., 1999. Principles of Marketing. Prentice Hall-Europe. PEGI, no date. Pan-European Game Information. [Online]. Available at: http://www.pegi.info/en/. [Accessed On May 15, 2014] Read More