Integrated Marketing Communication Plan at Virgin Blue - Case Study Example

Integrated Marketing Communication: Case Study Questions Name Course Name and Code Instructor’s Name Date Question 1: Low Price Strategy The low price strategy employed by Virgin Blue aims at making fares cheaper compared to traditional airlines and thus contributing to increase in demand and also encouraging consumers to switch from their preferred carrier to Virgin Blue carrier (Belch et al., 2011). Reduction of price of a product and service may even double the sales of that given service and product and this can translate in profitability of an organisation (Pickton, 2005). The low price strategy is aimed at lowering average seat mile costs and also the increased demand for the lower fares means more consumers to fill the flights and through this approach, the pay for use model maintains profitability (Kitchen, 1999). Moreover, utilisation of pay for use model means that Virgin Blue offers attractive service to consumers, services that are easier to manage, and elimination of complicated pricing strategies that may become a restriction on travel (Belch et al., 2011). In addition, consumers are usually sensitive to time and prince and such approach taken by Virgin Blue have better chances of increasing market share compared to other pricing strategies (Egan, 2007). The economic environment of an organisation determines how consumers can utilise a product or a service and thus pricing guide consumer’s behaviour (Lloyd, 1999). In addition, consumers sometimes are flexible especially when they are covering a shorter distance and they may request exclusion of some services such as food meaning the entire cost of travel will be dramatically lower compared to if they had utilised traditional carriers (Kitchen, 1999). At the end of the day, Virgin Blue would increase market share provided it supplements with services such as innovation, safety and quality. Question 2: Consistency in marketing communications It is easier to formulate a marketing plan that has a clear marketing mix but its implementation determines success of the marketing strategy (Yeshin, 1998). Effectiveness and efficiency is important when translating the marketing plan into actual influence to the consumers. An important aspect in implementing the marketing plan is consistency. It is important to show that what it is been advertised looks, sounds and feels the same way (Kitchen, 1999). The aim of a marketing plan is to sell the brand and ensure targeted audiences and segments understand what is offered and benefits of what are offered (Lloyd, 1999). Moreover, the marketing plan should try to create a perception that the service or product offered is better compared to competitors’ products or services (Egan, 2007). Consistency is directly associated to benefits brought by repetition since it is a crucial element in marketing strategies. For example, if the targeted audiences hear the same message every time and in the same way, the targeted audience are likely to spread the information in a manner that the targeted audiences will become players in marketing communication (Lloyd, 1999). It is paramount to ensure any marketing strategy formulated and implemented by an organisation should be consistency to the requirements of the organisation (Kitchen, 1999). For example, in each message, the image or brand of an organisation should be in place to associate the brand to the message. Such approach ensures consistency and aims in increasing perception towards the brand and organisation. Question 3: Consumer behaviour change Consumer behaviour can be viewed as the study of consumers towards deciding to acquire a product or service. Consumers are usually guided by the availability of information regarding a product (Egan, 2007). This means that advertising and promotion are inherent in changing the consumers towards a brand (Dahlen, Lange & Smith, 2010). Spreading information regarding a given brand should be communicated to consumers and this can be achieved through promotion and advertising (Kitchen, 1999). Even though there are some strategies such as word of mouth exist, but promotion and advertising is associated with other factors such as branding. Branding itself is a communication strategy (Ferrel & Hartline, 2010). For example, many businesses have names such as cafes and food courts e.g. McDonalds or Woolworths. These names are a form of branding and new consumers within the area and have information regarding the services offered by the organisations can easily associate the business name and operations of the business (Lloyd, 1999). Therefore, advertising and branding are important in changing and guiding decisions made by the consumers. Question 4: Globalisation and local brand strategies Globalisation has contributed into a business world that is not by geographical factors but by culture and social requirements (Ferrel & Hartline, 2010). Global activities when it comes to multinational brands shapes and determines reception of the brand to local market and how the local market can react or respond to these factors (Egan, 2007). For example, Coca-Cola is an international brand and it is found in numerous countries and the product is consumed in large quantities. When it comes to local consumers, they may appreciate the product because of branding and information associated with the product. They may want to try the product and gauge the product against information available. On the other hand, investors may appreciate branded goods business, which is associated with international brands. The investors have confidence with products that have international appeal and also the multinationals also shares such confidence (Lloyd, 1999). Multinational brands come with numerous benefits such as massive spending power, economies of scale, and development of effective management structures (Egan, 2007). The financial power of these multinational brands allows commissioning and championing marketing strategies and plans that considers the brand as an international product rather than a local product. For example, Coca Cola usually have marketing plans that considers all countries and develop marketing plans that champions the product meaning that the local branch may just provide loyalties and other business related contractual agreements. At the end of the day, Coca Cola Australia may not market the product aggressively since already international marketing strategy that incorporates different socioeconomic. Therefore, a single marketing plan by a multinational brand can appeal to many consumers. Nevertheless, the local brand strategy and management should understand that relationships are usually created between the product and its customers (Shimp, 2010). This means that the organisational management should create a positive product experience in which a consumer can respond through introducing other people. Thus, the local organisation should invest to ensure consumers appreciate the experience of the product (Blakeman, 2007). Generally, the multinationals brand and local brand strategies should complement each other (Ferrel & Hartline, 2010). The multinational brand should see the overall product and market while the local brand should manage the local consumers (Lloyd, 1999). Societal requirements and environment factors usually differs and it is important for the local brand to formulate and implement managerial requirements to ensure the entire process is effective. Question 5: Best IMC Strategies against a stronger competitor The strength of a brand is important in determining the approach in which a business can implement its ICM strategies (Lloyd, 1999). When an organisation understands the brand; for example, Virgin Blue has entered in a market controlled by Qantas and its subsidiary, this has made Virgin Blue to state that their services/products are of superior value as “safety, quality, innovation, value for money, flair, mutual respect, exceptional service and the highest commitment to flight guests” (Belch et al., 2011). Thus, this quote indicates the brand quality of Virgin Blue and Virgin Blue as the ‘weaker’ competitor can maximise on these credentials in formulating a strategy that negates the credentials offered by Qantas, for example (Percy, 2012). Utilising such strategy would grant Virgin Blue base of awareness and hence more consumers may have knowledge and create perception towards the product (Ferrel & Hartline, 2010). Another strategy that can be utilised by the weaker competitor is through formulating an excellent IMC with specified target groups and also it might influence customers’ opportunities (Lloyd, 1999). To achieve this requirement, it is important to utilise three channels, which are expand, scale and penetrate. In terms of scale, it is important for the weaker competitor to choose a channel, which is highly visible and it could be easier to attract core target segment (Kitchen, 1999). In addition, a channel that is easily expanded should be utilised to enable the organisation to reach new users who are adjacent to the targeted consumers (Ferrel & Hartline, 2010). Moreover, the weaker organisation should also utilise penetration strategies in which the existing segment can be introduced to new features and in such a method more consumers can spread the idea through word of mouth (Lamb, Hair, & McDaniel, 2011). Question 6: Long term future of Virgin Blue Blue has been successful at recent past and has seen its market share increasing from 2005 to 2009. The market share in 2005 was 11.6% and in 2009, the market share was 13.5% (Belch et al., 2011). This illustrates appeal of the brand and the management of Virgin Blue should maximise on this provision to ensure it brings in more consumers who are appreciate of innovative, quality and safety. Generally, the strategy to be embraced by Virgin Blue is to ensure it offers services and products that are unique (Belch et al., 2011). These innovative product and services should not be comparable to low carriers or the traditional carriers but be able to cut across numerous airlines business models. This strategy ensures that the business in itself is unique and certain innovative strategies can be directly associated with Virgin Blue rather than to the competitors. Another strategy to be embraced by the Virgin Blue is introduction of business class section (Belch et al., 2011). Virgin Blue have been maximising on leisure passengers but this section of business is very competitive and since the market share is growing, it is important for the organisation to introduce a model that addresses the requirements of business and corporate section customers. The model should be innovate and be ‘comparable’ to leisure class since this model has contributed in increase of market share, which translates in increase in revenues (Belch et al., 2011). The business model should be championed first before proceeding to international market. Virgin Blue should also capitalise in international markets especially after starting a new fleet that has routes between Los Angeles and Sydney (Belch et al., 2011). Operating in more than one location or region shields an organisation from economic and social problems witnessed within a certain region (Belch et al., 2011). Moreover, operating in international markets allows for culture and diversity and this can be utilised in maximising in leisure segment, which Virgin Blue has been operating for a longer time and the market share is growing. Therefore, internationalisation of business and partnering with like minded people could improve immensely business position of Virgin Blue. References Belch, G., Belch, M., Kerr, G., & Powell, I. (2011). Advertising & promotion: An integrated marketing communications perspective (2nd Ed). Sydney: McGraw-Hill Australia. Blakeman, R. (2007). Integrated Marketing Communication: Creative Strategy from Idea to Implementation. Sydney: Rowman & Littlefield Pub Incorporated Dahlen, M., Lange, F., & Smith, T. (2010). Marketing Communications: A Brand Narrative Approach. New York: John Wiley & Sons Egan, J. (2007). Marketing communications. London: Cengage Learning EMEA Ferrel, O., & Hartline, M. (2010). Marketing strategy, 5th Ed. London: Cengage Learning Kitchen, P.J. (1999). The drive for integrated marketing communications, In: Marketing communications: Principles and practice / Philip J. Kitchen. London: International Thomson Business Press, 1999. Chapter 7, pp. 89-109 Lamb, C., Hair, J., & McDaniel, C. (2011). Essentials of marketing, 7th Ed. London: Cengage Learning Lloyd, S. (1999). 'Would you like to hear our ad' Source: Business Review Weekly, vol. 21, no. 49, 1999, pp. 74-77 Percy, L. (2012). Strategic Integrated Marketing Communications. London: Routledge Pickton, D. (2005). Integrated Marketing Communications, 2nd Ed. New York: Prentice Hall. Shimp, T. (2010). Advertising, Promotion, and Other Aspects of Integrated Marketing Communications, 8th Ed. London: Cengage Learning Yeshin, T. (1998). Integrated Marketing Communications. London: Routledge Read More