Promotion Strategy - Integrated Marketing and Communication Plan for Biome - Case Study Example

Promotional strategy Name of the Student: Name of the Instructor: Name of the course: Code of the course: Submission date: Promotional strategy Contents Contents 1 1.0 Overall introduction 1 2.0 Project selection and rationale 2 3.0 Campaign audience profile 3 4.0 Audience perception/problem 6 5.0 Marketing and communications objectives 8 6.0 Campaign idea 9 7.0 Marketing communications strategy and tools 11 7.1 Internet and direct marketing 12 7.2 Direct marketing 14 7.3 Sales promotion 15 8.0 Measuring campaign success 16 Conclusion 16 References 18 1.0 Overall introduction In a generic sense, promotion can be perceived as the direct way in which an institution makes efforts to reach its publics and is often undertaken through five chief components of promotion mix. These include advertisement, personal selling, direct marketing, public relations and sales promotion (Aliata et. al., 2012). Promotion is one of the marketing mix which has been assessed by diverse researchers in regard to its relationship with market share. These efforts have been geared towards finding out whether a sound promotion strategy has the capacity of elevating sales and profits in a given firm (Moghaddam & Foroughi, 2012). Against this backdrop, this project seeks to develop an integrated marketing and communication plan (IMC plan) for Biome, which is a small family business engaged in the manufacture and distribution of a wide alley of eco-friendly products ranging from recycled tyre floor to gas ceiling lights. This firm has a physical store in Paddington (Brisbane) which opened in June, 2005 and a second store in which instigated its operations in September, 2007 in the central business district (CBD) of Brisbane, Australia. In this case, this project is aimed at identifying the needs in the market place which is through a comprehensive analysis of the campaign audience as well as the audience perception. Additionally, this project will explore the marketing and communication objectives as well as the idea behind this campaign. On the other hand, this project will analyze the marketing communications strategy and tools in addition to how the success in this campaign will be measured. 2.0 Project selection and rationale The rationale behind this project is that Biome as a company has for a long time been confined within the boundaries of Australia. In this case, it has not been able to expose its environmental friendly products to consumers in the international scale despite their increased demand expedited by increased concern over climate change in the contemporary world. In this regard, this project is a profound step towards launching the products from Biome in the international platform which will not only impact on their overall organizational performance and profitability but will also be core in the provision of a solution to the future problems confronting the planet in regard to climate change. Additionally, it is worth noting that the promotional strategies in the contemporary business environment have changed, mostly as a result of the extensive dynamics in the consumption of promotion platforms. It is worth noting that technological evolution has triggered diverse changes in the promotional strategies, mostly with the increased popularity of the internet and social networks in the promotional strategies. Subsequently, the need to increase the presence of this company in the internet and social media which will eventually contribute the international dissemination of its products also forms a key rationale to this project. In this case, this project is selected with the aim of utilizing diverse promotional tools which will be central in the achievement of different objectives outlined in a subsequent section of this plan. The attainment of these objectives will be key in the realization of the internationalization goal of Biome triggered by elevated globalization in the modern world and increased market liberalization among other dynamics. 3.0 Campaign audience profile The primary target consumers in this campaign are the people who are sensitive about purchasing environmental friendly products in different countries. These include products like reusable bags and cups, stainless steel bottles, lunch boxes and other safe reusables. Additionally, this campaign targets individuals and collectives at the international scale who are interested in purchasing natural products like organic skin care products, natural hair care products as well as natural body and soaps among other products. These are some of the products from Biome which are bound to attract an international audience as a result of their eco-friendly nature among other attributes. This is founded on the backdrop that the manufacturing process of different products from Biome strictly prohibits the usage of materials which are known to contain solvents, glycols, polyurethane, volatile organic compounds as well as heavy metals in production. This approach is aimed at the reduction of off-gassing of toxic fumes in the advancement to the future (Biome website, 2013). In regard to the demographics, the products from Biome are primarily consumed by young consumers aged between 20-40 years. This is the primary consumer base of products like the organic skin care, natural body and soaps, natural hair care, natural skin care and mineral makeups among others. These category of consumers have exhibited elevated consumption of internet promotions in the recent past as well as their robust presence in the social networks among other contemporary platforms. In terms of occupation, majority of these products are consumed by people in the middle class who have considerable financial capital, have exhibited an increased level of environmental sensitiveness and have disproportionate influence in molding the terms of public debate on environmental issues. This fact is supported by Mawdsley (2004) who determined that recent times have seen elevated interest among the members of the middle class on environmental issues, as well as the overall impact of the wealthier middle class in influencing issues on urban environment. Moreover, members of this group have been found out to exert significant influence in shaping the conditions of public debates on environmental issues in different countries. This is founded on their robust representation in the media, scientific establishments, environmental institutions, politics, NGOs and the legal system among other realms. In this case, the middle class forms a formidable target for this campaign based on their consumption power, influence on and awareness of environmental issues as well as their presence in the modern promotional platforms like the internet. This fact is supported by Laroche, Bergeron & Barbaro-Farleo (2001) who determined that consumers who are increasingly concerned about the wellbeing of the environment and have deep knowledge of environmental issue often try to purchase only eco-friendly products. In terms of gender, these products are expansively consumed by women who have high demand for natural and organic skin care products. However, there is still as small segment of men in target market of Biome with products like natural skin men products and thus this campaign will also target the male consumers. It is also imperative to note the fact that women who form a significant section of the target market in this company are primary consumers of baby products like green school supplies, organic baby, educational toys and baby bottles among others. It is fundamental to point out that early researches on commercial internet use have also revealed gender differentiation in the utility of the internet which had previously been dominated by men. Recent studies have continuously revealed that over half of the e-shoppers are now female and that women are outspending men online in the recent past (Jayawardhena, et. al., 2007). This is an extra fact which places women at the center of this campaign in the efforts to promote the products from Biome at the international platform. From a psychographic perspective, the above target audience of this campaign has been revealed to portray high value on fashion and contemporary trends. Thus, they are bound to consume certain products based on their rank in the present fashion ratings, for instance, babies’ products like green school supplies and organic skin care. In this case, the propensity of these consumers to buy these products will be influenced by their niche in the contemporary fashion. Moreover, it is also worth to note that this category of consumers have been found to have extensive hobbies entrenched in outdoor activities for instance, camping and sporting activities. Subsequently, their demand for products like reusable cups and bags, water and insulated bottles among other products from Biome is bound to be influenced by the various hobbies like those mentioned above in which they are extensively preoccupied with. 4.0 Audience perception/problem It is worth to be cognizant of the fact that there are several problems related to the perception of the consumers which this campaign ought to overcome. Firstly, there is the perception among the consumers that the so called eco-friendly products are just given this label to improve their marketability but in actual sense, they are just the same or potentially weaker than their conventional counterparts. This is founded on the determination by Menon and Menon (1997) and Polonsky & Kilbourne (2005) among other scholars that an elevated attention on environmental issues can be perceived as a key indication that pro-environmental interests have evolved into becoming potential strategic concerns for various businesses around the world. In this case, the label of ‘eco-friendly’ is often perceived by some customers as a marketing hype which is solely aimed at increasing the attractiveness of the product in the market but has little or nothing to do with the efforts towards conservation of the environment. This is a major perception which will need to be overcome in this campaign and thus there will be need for profound mechanisms to convince majority if not all of the target consumers that these products are actually eco-friendly. The second perception is that eco-friendly products are usually characterized by high prices compared to the conventional products which serve the same purpose. This is against the findings among different researches which have revealed that consumers who are often concerned and involved in environmental issues has a higher preference of purchasing eco-friendly products and have even the willingness of paying higher prices for these products (Ishaswini & Datta, 2011). In this regard, some consumers might have the perception that the products from Biome are generally highly priced just like other eco-friendly products when they are compared with other conventional brands in the market. This can make them unresponsive event to promotional offers like discounts from Biome which provides a major handle which this campaign needs to overcome. Lastly, there is the perception of originality. This is whereby some consumers harbor inherent perceptions about products from various parts of the world, for example, products from Europe and US are of superior quality when juxtaposed with products from the Asia-pacific region. This perception can become a major challenge in this campaign in trying to promote products from Australia among such consumers in the international market, thus necessitating a major promotional strategy to overcome such perceptions. 5.0 Marketing and communications objectives The first marketing objective in this campaign is elevating the presence of Biome in contemporary promotion platforms, for instance, in the internet and the social media. This is through the development of a corporate website which is central in promoting online shopping in different regions of the globe. This will have the overall impact of increasing the sales volume of this company both in Australia as well as in other countries. Additionally, this campaign will be geared towards increasing sales volume through heightening the presence of Biome in the social media, for instance, Facebook, Twitter, and Google Plus among others. This is founded on the popularity of these platforms which has seen tremendous growth in the recent past. This will not only be aimed at promoting various promotions by Biome but will also be aimed at expanding the market share of this company in the international spectrum. The second marketing objective is establishment and development of delivery and distribution channels. This is founded on the background that the online shoppers need to be confident that the products from Biome which they purchase using the online shopping model will be delivered in good time and at a reasonable cost in whichever country where they are. In this case, establishment of new distribution outlets as well as the recruitment and selection of delivery personnel in different countries among other diverse logistics engaged in internationalization becomes a major marketing objective of this campaign. In regard to the communication objectives, the first objective of this campaign is to increase the awareness of Biome’s products inside and outside of Australia. This is founded on the fact that due to the sole establishment of this company in Brisbane, other consumers even within Australia and the larger Asia-pacific region might not be aware about this company, leave alone the products which it manufactures. This is a similar scenario in the international markets whereby different prospective consumers in other regions are unaware about the products from this company and their inherent benefits. In this case, increasing the awareness among the consumers both in the local as well as in the international market becomes a key communication objective in this campaign. The second communication objective is to create a robust feedback mechanism from the consumers in different regions of the world. Regular feedback from the consumers is integral in ensuring that the quality of various products is reviewed from time to time in order to meet changing consumer demands. This is supported by Rosen, Schoroeder and Purinton (1998) who inferred that it is imperative to be cognizant of the need to clearly identify and profile a target market, and bear in mind that the profile of the target market will change overtime. In this case, a robust communication portal needs to be established in order to facilitate the communications between the manufacturer and the consumers which will culminate in various products being tailored to meet distinct needs of consumers from different parts of the globe, making this a major objective. 6.0 Campaign idea The primary campaign idea is that of quality and the eco-friendly nature of the products from Biome. This will be key in overcoming the first perception among consumers which was analyzed in the preceding section. In this case, the fact that the products from Biome are environmental friendly need to be stressed in the campaign idea as well as their accessibility across different regions, for instance, consumers can purchase them online. This is epitomized in the following image which conveys this idea. Additionally, the campaign ought to encompass the idea of the key consumers of the products from Biome which is key in market segmentation. This is based on the fact that market segmentation is an integral component in the marketing strategy of a firm which ought to be considered while engaging in promotions and advertisement (Hunt & Arnett, 2004). In this case, the campaign idea of Biome at the international platform will be portraying Biome as having diverse eco-friendly products to suit the needs of various categories of consumers. This is best epitomized in the following images which show the utility of Biome’s products among women and children as well as men accompanied by an eco-friendly message. Thus, the idea of quality, eco-friendliness as well the utility of these products across various age groups and gender will run in all media and integrated marketing tools. This will be key in creating both short as well as long-term competitive advantage not only in the Australian market but also in the international market. This is against the inference by various scholars who include Day and Wensley (1988), Bharadwaj and Varadarajan (1993) and Varadarajan and Cunningham (1995) among others that all marketing and promotional strategies ought to be involved in the search of competitive advantage. 7.0 Marketing communications strategy and tools This campaign will have two primary promotional strategy tools namely the internet and direct marketing. It will also have a secondary tool which will be sales promotion. The internet and direct marketing tools are core to this campaign based on its international nature. This is founded on the background that the fact that the internet has a global reach is irrefutable. Additionally, direct marketing which will mainly be conducted by distributors and the delivery personnel in different countries will be critical in assuring the eventual success of this campaign. 7.1 Internet and direct marketing In regard to the internet, different researches have continuously revealed that the internet has the potential of providing a new retail format which will be fundamental in taking over the traditional dominance of the fixed location stores. In this case, the use of the internet in relation to the establishment of a corporate website will be integral in ensuring the growth of online shopping in diverse regions of the world. Subsequently, the prices of various products as well as the delivery cost and time to various locations around the globe will be incorporated in this website. Moreover, this website will have a robust feedback mechanism where consumers can post their sentiments about an online transaction as well as the quality of the products which they purchased which is central to the continuous enhancement of this product. Additionally, this website will show discounts on various products at any time and in which countries these discounts are applicable. Lastly, this website will have a list of distributors of the Biome products in different countries and cities. This is important in the sense that the consumers can be able to choose their nearest distributor as well as browse the various products which are available in this distribution outlet in their locality. All these will be integral in the achievement of the first as well as the second marketing objectives outlined in a preceding section. The second tool of the internet is the social media. In this case, this campaign will seek to organize different Biome-sponsored events which will be publicized in the social networks like Facebook and Twitter among others. The prominence of the social media in this campaign is supported by (cited in Bolotaeva & Cata, 2011) who have cited that in a situation whereby social networking is correctly approached in business, it can be vital in the facilitation of processes like finding talent and new consumers, developing brand awareness as well as conducting market research and brand intelligence. Moreover, Thackeray et. al (2008) determined that Web 2.0 applications have the capacity of directly engaging the consumers in the creative processes. This is through the production as well as the distribution of information through content sharing, social bookmarking, collaborative writing, as well as syndication. All these are central to the expansion of Biome’s market share in the international front which is expected to have a cumulative impact of elevating the sales volume of this company around the globe. Towards this end, this will necessitate opening accounts in different social networks where the followers of this company in these sites will be regularly updated about upcoming events, competitions as well as latest products from Biome. Additionally, this company will have ‘ambassadors’ in this sites who will be key in updating major developments in Biome. The social media platform will also have a feedback mechanism whereby current or prospective consumers who follow Biome on these platforms will have chances to ask various questions regarding the Biome products, share their experiences as well as suggest any mechanisms which can be adopted by the company to enhance the suitability of its products among various categories of the market, for instance, the disabled. All these issues will be addressed by a Biome personnel mandated with this role which will be paramount in the efforts towards continuous improvement of the Biome products. These strategies in the social media will be key in supporting the achievement of the first marketing objective as well as the first and second communication objectives explored in a preceding section. 7.2 Direct marketing This is the second promotional tool which will be used in this campaign. The merit of this strategy over other strategies like advertisements is that Biome will be able directly measure the positive results from the direct marketing efforts. This is best epitomized whereby in case the company sends out a total of 10, 000 solicitations by mail in different countries and 5,000 respond to this promotion, then the company can infer with high confidence that this campaign culminated in 50% direct response. Additionally, the marketer can be able to directly ascertain the response rate in different regions around the world and make a profound decision on which regions to increase the promotional efforts. In this case, various direct marketing tools like emails, text messaging, online display ads, outdoor advertising, fliers and promotional letters will be increasingly used in this campaign. All these tools will carry the idea of quality, eco-friendliness and attractive pricing which will be fundamental in overcoming the first and the second audience perception/problem explored in the preceding section. Towards this end, a message will be formulated to be used in direct marketing which will suit the expectations and preferences among the consumers in different markets around the world. This is based on the fact that some of the consumers in certain parts of the world, for instance in Europe might place higher importance on the eco-friendly nature of a product when juxtaposed with their Latin America or Indian consumers who might place higher importance on the price of the product. In this case, a higher emphasis in the direct marketing message on a particular aspect of the Biome products in a particular region will be informed by the various market dynamics in the consumer regions. These dynamics which will influence the messaging in the direct marketing tools will be unearthed after a comprehensive market survey. This will be key in the attainment of the first marketing objective as well as the first communication objective. 7.3 Sales promotion This is the secondary marketing communications strategy and tool in this campaign and will encompass both consumer sales promotion as well as trade sales promotion. The justification of using this tool is founded on the fact that it is bound to stimulate interest, purchase or trial by the consumers unlike some of the other tools like advertising. The first approach in respect to sales promotion will be offering samples, premiums as well as coupons to the consumers from different parts of the world which is key in stimulating their interest in purchasing or trying a particular product from Biome. This will have the overall impact of expediting the achievement of the first marketing and objective Additionally, the utility of this tool will entail offering complementary products to consumers who purchase a particular product. This is best exemplified whereby in case a parent purchases school stationery for her kid from different distribution outlets around the world, then a free educational toy can be offered to this parent to assist the kid in his/her learning processes. This will be effective in influencing the parent to purchase the educational toys in the future based on their importance in enhancing the learning experience of the kid and will eventually culminate in the attainment of the first marketing objective. In this case, all the aforementioned marketing communication strategy and tools will cumulatively culminate in the achievement of various marketing and communication objectives albeit in different capacities. 8.0 Measuring campaign success It is imperative to note that robust monitoring and evaluation (M&E) mechanisms will be primed at Biome to assess the success of this campaign. In this case, a monitoring process will be undertaken on a quarterly basis whereby Biome will monitor the performance of each product in different parts of the world, the impact of various product offers, for instance, offer of complementary products like free educational toy in elevating the sales of school stationery for kids among the consumers among consumers, the response rate from direct marketing among others. This will be followed by annual evaluation of the total performance of each product with specific offers against past performance, the number of people who have attended various events organized by this company, the growth of people who are following Biome in the social media as well as the feedback rate from the consumers. All these will be aimed at assessing whether various marketing communication strategies and tools have been effective in meeting the identified objectives and set a strong yardstick for initiating any improvements on the strategic approach. Conclusion From the preceding discourse, it is apparent that promotional strategy plays a key role in influencing the performance and profitability of various firms. This has influenced this IMC plan to be initiated by Biome, a small company based in Brisbane, Australia in its internationalization efforts and the rationale behind this project has also been outlined. This review has also identified the campaign audience as well as the audience perception which will influence the implementation of this project. Additionally, it has identified the marketing and communications objectives as well as the campaign idea which will be extensively achieved through effective and efficient utility of the marketing communication strategy and tools outlined in the preceding section. The last section of this review has outlined the mechanism of measuring the success of this campaign whereby a robust M&E framework will be instituted at this company to achieve this goal. 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