The Creative Work Plan of Advertising Strategy in Wal-Mart - Assignment Example

Page 1 of 5 Drivers and objectives of Customer Loyalty programs (Goodwill) in Retail: Triggers: 1) Increasing acquisition costs answer 1) Increase share of wallet. 2) Part of product line seeing competition tough sales answer 2) Increase cross Sell; infect leadership in major product lines and others 3) Market un-predictably geographical or time based “irrational “” variations: Answer3) Customer identification and analytics. 4) High cost of third party research and 4) Customer identification, in-house panel surveys and analytics. 5) Increasing price competition Ans5) Defend shares of wallet (Reduce felt cost for best customers, increase emotional connect). Promotional Strategy Planning: A: Determine promotional Objectives B: Establishing an Overall Promotional Budget C: Selecting The Promotional Mix. D: Reviewing and Revising the Promotional Plan. “The initial “Be bright” ads did not take in prices for the merchandise or play up Wal-Mart mainstays like rollbacks, the company’s term for price cuts. John Fleming, chief marketing officer at Wal-Mart, later decided the ads ought to address the longtime Wal-Mart selling point of lower prices. As a result, ads listed to appear this weekend in publication like Parade will present prices along with the merchandise”.$$ this is a good example of review and revise the Promotional plan. Another good example of promotion plan is the launching of Trucks carrying banners of the product, /the wheels of advertising could be on a Gas balloon /on a building in form of a Banner/ door to door sales /but in conclusion the best strategy is the Page2of5 Goodwill of the customer and still mouth-to-mouth propaganda of the product from peers /actual end user is still the magic .Its like after sales service. The customers satisfaction /comfort levels. Its also the person to person psychology, E.g.: A person going to a Bank is more satisfied to withdraw the cash he/she has saved from interacting with a smiling cashier rather then a ATM/Cash drawing Machine. Effects of various Types of Promotion: Hierarchy of Effects: : Behavioral Objectives : Promotional Mix : Of promotion : relevant to each step: Awareness & Knowledge Provides information Pioneers Advertising , , , Public relations, , , ‘ personal Selling,sales promotions assertive efforts Window Displays Liking ,Preference Change attitude & feelings Competitive advertising , , Personal Selling .Sales Promotion , ‘ Assertive Efforts POP Displays Conviction ,Purchase Stimulate Desires Reminder and institutional Advertising, Personal Selling ,Frequent –Shoppers Program The Types of Advertising:: The content should be eye catching and various advertisement agencies have profession persons doing the job:. The Advertising content must necessarily Focus on the 1) Pioneer message, Competitors message, Reminder Message and the Page 3 of 5 Institutional message; the manners of Payment Can be distributed as to keep the final payment By the retailer or it could be Corporative Advertising. Theses forms of Corporative Advertisements are classified as Vertical and horizontal. The Sales promotions comprises of A) Point of Purchase Example :In grocery stores, The Producer is satisfied with the concept of getting payment of The produce across the table May use cash incentives to regular suppliers for Purchase of Seeds Pesticides etc. B) Contests and Sweepstakes C) Coupons D) Frequent Stoppers Programs E) Prizes F) Samples of products G) Demonstrations H) Referral Gifts I) Specially Items J) Special Events. Customer Relationship Management: Customer Relationship Management has been defined as 1) Management of those set of processes that directly or indirectly affects customers experience. 2) Management of marketing processes, analytical processes affecting marketing, selling processes and customer touch –point processes. A simple view is: Management of Marketing Selling and services. An IT view is: Marketing automation, Sales automation (including E commerce) Service automation. Typical areas: Market automation Segmentation, predictive Modeling, Survey planning and recording Sales automation: SFA, call center, website-Personalization, content management, and behavior Tracking, POS Point of Sales related. Brick stream, biometrics. Service Automation: Technical helpdesk, Subscribers assistance, repair and assisted service field automation, remote diagnostics. CRM in Retail: Data collection becomes a very important factor which is –explicit from the Customers, the other data collected from sales point with customer identification becomes Biometric. Can be in the form of Club enrollment form/customer clubs. The data thus collected Becomes a lead in the form of Profiling and segmentation, Data communication, Sales Data Warehousing and customer Data Warehouse, Data should be analyzed (Example by asking cross Questioning like age of a person in form of date of birth /When the person qualified, the question Page 4 of 5 Can be reversed asking age of Graduation/Important events. /Like living since etc. Data Communication leads to important geographical decisions. E.g. A Refrigerator Ice box does not sell in the Alps as it does in the Dubai /Desert. Thus leading to Affinity analysis & productive modeling. The usages are vast from Customer services E.g. Call centers, store kiosk POS, websites, Sales Point catalog design; depending on the variations in the price tag fluctuations say its not going to Change in the near future the price Maximum Retail price can be printed on the catalog. Companies marketing department makes decisions on the campaign management, Targeted merchandizing and analytics. At the end of the day it’s the business done which really matters in any Organization. The financials though is a very important factor in making the decision of using the channels of advertisement the other financials factors are Revenue, Gross margin, Gross margin Return on investment IRR. Operating income, Net margin. Financial ratios (acid test ratio current asset over the current liabilities /Quick FOIR Fixed obligations on the net revenue) the Acid ratio the lesser is better. The most important aspect is the labor cost per unit sales. Process Efficiencies Inventory related, Markdown percentage, Inventory services level. Shrink, Retail Stock outs, none Marketing items, number of cost charges, Panorama errors. Productivity: Sales per store, (including E commerce) Volumes, Inventory turnover. Customer: customer acquiring cost. Membership of Loyalty –programs RFM Analysis, Basket Analysis. Vendors Performance: On time Delivery, Service levels, forecast accuracy, negotiations efficacy, Inventory performance, Merchandizing performance: OTB Utilization, Mark down percentages, growth rates. Growth: Revenue growth, New stores Opened, Employee Turnover, Competition mapping. In-store kiosks will allow shoppers to scan items and get customer reviews plus stories About the places where items are made. A customer who scans a pair of amethyst Jewellery And garnet geometric drop earrings, for instance, could read about how the jewelry is made At a technological school in Nepal, and how its sale helps support training programs, a School for young children and an orphanage hostel. These veteran retailers, who are funding the venture themselves, are well meaning, but they clearly intend to turn a profit. And it appears that there is money to be made in social awareness. Page 5 of 5 Terms and terminology used: EDI – Electronic Data interchange EPOS-ELECTRONIC POINT OF sale Gm% -Gross margin percentage RFID- Radio frequency ID’s WMS- Ware housing management system CRM- Customer Information management SCM- Supply chain Mgmt CI M- Customer information Mgmt FOIR- Fixed obligation Installment Ratio. Acknowledgments: Matter taken from wal-Mart Journal; as It shows the exact trend in the market-as an illustration .on the relevant topic sighted above. “The initial “Be bright” ads did not take in prices for the merchandise or play up Wal-Mart mainstays like rollbacks, the company’s term for price cuts. John Fleming, chief marketing officer at Wal-Mart Read More