Public Relations Strategy - Essay Example

Public Relations Strategy Student’s Name: Institutional Affiliation: Instructor’s Name: Date: Table of Contents Threats 5 Market Environment SWOT Analysis 5 Strengths 5 Weaknesses 5 Opportunities 6 Threats 6 Strategy 6 Goals 6 Objectives 6 The Target Publics 7 Primary Target Public 7 Secondary Target Publics 7 Tertiary Target Public 7 Messages 7 Message Strategies 7 Message Tactics 8 Implementation 8 Budget 8 Items to be paid for in the budget 9 Timeline 9 Evaluation 9 Strategy Explanations 9 Goals and objectives 9 Target Publics 9 Messages 9 Message delivery strategies 10 Tactics 10 Evaluation 10 PART B-Public Relation Strategy for Woodside Petroleum 11 Executive summary 11 Introduction 11 Situation analysis 11 SWOT analysis 12 Stakeholders 13 Aims and objectives 13 Key messages 14 Strategic model and timescale 14 Strategy tactics 14 Pre-launch activity 14 Resource and procedures 14 Internal communication 15 Customer facing communication 15 Investor relations 15 References 16 Public relation strategy Prepared for: Cadbury Company (Launching a New Product-Cadbury Snaps) Executive Summary The manufacturers of consumer products are facing much pressure to not only improve their operating efficiency but also grow their revenues. However, there are challenges that hinder such companies from achieving their goals. Among the challenges encountered includes stiff competition especially in mature markets, low success rates of brands as well as inability to meet the growth targets. With the advent in technological innovations, companies should take into account the aspects of marketing research, development and launch of new products, management and distribution of supplier materials. This paper gives a public relations strategy for the launch of new product by Cadbury Corporation. Cadbury is a company that makes milk products and sells the products to consumers across the world. In its attempts to secure a better market share, the company intends to launch Cadbury Snaps, a new product in the market. This paper will give a situation analysis in relation to the company, its goals and objectives. In addition, the environmental scan of the company is performed to identify its strengths, weaknesses, opportunities and threats. The mode of messaging and tactics to be used are also stated in the strategy alongside the implementation process. The strategy further gives the evaluation process and an explanation for the strategy. Situation Analysis Brand building is currently undergoing a process of revolution. Brands are being built beyond normal television screens. Online is the common place where brand development takes place. Due to this necessity, Cadbury seeks to open more avenues that facilitate interaction between consumers and their favourite brands. Competition for new brands calls for the need for improvement of quality of brands for the existing products and subsequent launch newly developed products. That is why this strategy will help in facilitating successful launch of the newly developed, the Cadbury Snaps. The operating environment for Cadbury is a global confectionery market. The market is very large and growing dynamically with attractive characteristics. The confectionery market is the fourth biggest market for packaged food (Bradley, 2013). The market and on-market SWOT analysis for Cadbury is as follows: Non-Market Environment SWOT Analysis Strengths Cadbury supplies the largest share of confectionery globally. It has more than 10% market share. The company has established a powerful manufacturing competence, setting up a well established brand name as well as being a leader in brand innovations. Cadbury also understands its market segments in that it focuses on candy, chocolates, chewing gums and related milk products (Singleton, 2013). The high financial force exhibited by the company enables the company to realize its financial objectives. Weaknesses Cadbury depends greatly on the beverage and the confectionery market unlike its competitor that have a great deal of products that facilitate investment of profits in other sections of the business. Compared to other competitors, Cadbury has little understanding and experience in the international arena. Traditionally, Cadbury has proved to be stronger in Europe compared to the United States of America. Opportunities There are very significant opportunities for expansion of the markets. Among the potential areas includes China, India and Russia. These countries exhibit high population growth, increasing consumer wealth as well as high demand for confectionery products (Great Britain, 2011).With the increasing merger and acquisition activities in the confectionery market, Cadbury has a better opportunity to increase its shares through targeted acquisition. Cadbury has a chance to minimize its cost and increase savings by shifting production into countries with cheap labour and raw materials (Hitt, et al., 2013). The company can also reduce the internal cost by ensuring efficiency of supply chain, global procurement and sourcing and investing wisely in research and development. Given the fact that innovation has become a key success driver, Cadbury has a better chance to utilize it by producing healthy snacks. The snacks should have lower levels of calories in order to satisfy the ever changing tastes and preferences of its consumers. Threats There is an increasingly high cost for sugar, transport, energy and packaging, in global supply chains, in areas with low costs. There is also an impending stiff pressure from other branded competitors both at national and international levels. There is also a possibility of price wars especially in developed markets due to the aggressiveness in promotion and price activities of the Cadbury's competitors. There is also an increasing change in social behaviour. For instance, the rig cases of obesity and the act that consumers are becoming obsessed with calories. Such necessity for healthier and nutritious lifestyles affects the demand for major Cadbury products (Parsons, 2008). Market Environment SWOT Analysis Strengths Key US player in the soft drinks market- The inheritance of the top position as the leading supplier of soft drinks by the Pepper Snapple Group boosted the profiles of those companies that comprises its name, e.g. Cadbury. The independent soft drinks business after the demerging from the Cadbury Schweppes gives room for the company to optimize growth in the industry. Cadbury has a well established distribution system. This is evident from the high inheritance of the largest and independent network of distribution across the United States. This has reduced the dependence on other competitors like the Pepsi and Coca-cola for facilitating market access for its brands (Fitzgerald, 2006). Weaknesses Unstable financial position caused by changing marketing forces and activities like demergers. This has often found the company performing its operations without sufficient financial backup thus forcing it to depend confectionery revenues. There is also a limited portfolio of products compared to competitors thus making it unable to expand its market base. The Cadbury roles have shrunk overtime. The Cadbury Plc cannot depend on the same amount of brand exposure and financial backing in its process of revenue generation as it was in the past (Lattimore, 2008). Opportunities The segmentation of the border markets allows the company to benefit from broader dimension as a result of widening of functional drinks portfolio. There has been the emergence of beverages which are said to reduce the levels of blood pressure and beautify the skin, hence widening the array of products offered in the confectionery market. Moreover, Cadbury Plc stands a better chance of growing among the non-carbonates group in Australia (Litwin, 2009). Threats A high level of consolidation of industries is a phenomenon that is commonly experienced in the soft drinks market across the globe. In such case, competitor companies like PepsiCo and Coca-Cola always top the list hence posing great challenges to Cadbury Plc as it tries to explore new markets. The cost of raw materials is ever rising. For instance, the cost of fruits, fuels and packaging are expected to increase thus threatening to pull down the profit margins of the company (Phillips & Young, 2009). Cadbury's goals and objectives are categorized based on the company's objectives. The goals are classified as reputational task and relationship goals. The public relations goals help the company in attaining its business objectives. Objectives are concerned with the results of the company's performance and the general changes necessary to reinforce so as to boost performance of the company (Narasimha, 2010). Strategy Goals To deliver better shareowner performance by working with a global supply chain, leading the resourcing and developing and executing programs that can assist in driving the competitive advantage. The company also aims at driving quality, sustainable competitive advantage, with a total emphasis on the customer and consumer perceived value (Cunningham & Harney, 2012). Cadbury is set to build a global team to facilitate innovation through science and technology. It attains this goal through development of products that are technologically differentiated, at the same time take advantage of the Smart Variety in order to achieve marginal growth in beverages and confectionery markets (Oliver, 2010). Facilitate reinforcement of reputation with the society and the employees, through development of inclusive Corporate Social Responsibility and effective public strategy. Objectives Like any business firm, Cadbury Company has a set of objectives to achieve. However, its main objective is to become the best performing and largest confectionery company in the world. The company aims also at focusing on exploiting the most profitable market opportunities in the world market. The company is in a position of achieving this by understanding the behaviour of its consumers and knowing the changes in their requirements (Lindgreen et al., 2009). Provide products of high quality and value for money to its customers by striving to gain the profitability, visibility, as well as the global market's volume. The Target Publics Primary Target Public Children ( below 18 years) The youth ( 18-35 years) Secondary Target Publics Old people ( over 35 years) Tertiary Target Public Stakeholders Messages To pass information the public about the presence of new product in the market To convince the public to purchase the newly launched product Message Strategies To offer high performance through corporation with the global supply chain Target publics: Children Message delivery strategies Tactics 1: Controlled Media Brochures, annual reports, direct mails 2: Interactive Media Social media e.g. chat rooms, Facebook and twitter To uphold the company’s reputation Target publics: Youth Message delivery strategies Tactics 1: Uncontrolled Media Question and answer sheets, press releases 2: Special Events Conferences and anniversaries 3: Interpersonal Site visits, lobbying and telephone calls To create awareness among the consumers concerning the emergence of the new product in the market Target publics: Old people Message delivery strategies Tactics 1: Interactive Blogs, Internet and e-mails 2: Sponsorship Awards Message Tactics For controlled strategy, the tactics to be used include printed annual reports, direct mails, company websites and use of brochures. Also, telephone communication, e-mail messages and direct meetings will be used. The use of social media will be also applicable. Interactive sites like Facebook and Twitter will be used to promote the new product. In addition, the chat rooms and blogs will be utilized too. Implementation Action Responsibility Timeframe Creating a monitoring team Facilitating smooth implementation of the public strategy 1 weak after implementation of the strategy Evaluation of the performance Measuring the extend at which the newly launched product gained acceptance 3 Months Establishment of customer response management system Managing customer feedback on concerning the new product 6 Months Budget The development and subsequent launch of new product involve expansion of dollars for money making purposes. Capital is invested to cater for all the financial resources needed to promote the product and test it for the first time in the market. High expenditures are avoided during the initial awareness building avoided. However, the fact that Cadbury has lots of successful brands implies that it can provide sustainability to the newly launched product. Items to be paid for in the budget The cost of promotion Resources for facilitating tactics e.g. the internet cost Transport cost Cost for implantation and monitoring of the strategy Timeline Owing to the difficulty of the newly launched product to attain bottom line profitability within a short period, the company expects the newly launched Cadbury Snaps to beginning its profitability in a period of up to two years. However, the product may generate profits within its first year of introduction but the amount generated may bigger than the preceding years. Evaluation The evaluation of the success levels depends on the acceptance and the overall profitability of the product. The Company's relevant department is tasked with overseeing the progress of the product. More demand for the product is an indication of acceptance of the product by consumers and vice verse. Consequently, high profit index means that the product is performing well and vice versa. Strategy Explanations Goals and objectives The goal of the company is to offer high performance through corporation with a global supply chain. This is in lined with its objectives of giving the best services to its customers. The need to uphold the company's reputation depends on the set goals and objectives. To achieve this, quality is important. That is why the company value the quality of the product they give to their customers. Target Publics Children and the youth are selected as primary target public because they are at age where consumption is high due to nutrients needed by their bodies for growth and development. Older individuals are chosen as secondary public due to their behaviour and lifestyle e.g. entertainment that involves the consumption of beverages and snacks. Messages The first message is informative in nature. It gives information to the target publics on the emergence of a new product. The second message is persuasive in that it aims at winning the public into buying the new product. The messages directly relate to the objective and goals of Cadbury are to offer quality and a wide range of product portfolio. Message delivery strategies Controlled media facilitate passing of the right information without manipulation. The strategy relates to the objective delivery of quality and original services to customers. Interactive media ensures the reach of many populations as majority of youths use this media. It is in accordance with the objective of the company to increase its market share. Uncontrolled media and interpersonal strategy reach the largest number of people in a short time. It is also related to the objective of the company to increase its market share. Tactics Chat rooms and social media platforms suitable to the primary target public as they are the most active users of the sites. Brochures are eye capturing, therefore, attracting the attention of people. Direct mails and e-mails are suitable for all categories of target publics because the content cannot be altered directly. Evaluation The strategy would work if well implemented given that the objectives are straight to the point. The strategy is also technically feasible thus facilitating easy implementation. Moreover, mode of communication with the public is well structured, and the overall aim of the strategy is centred to mutual benefit to both the company and the customers. PART B-Public Relation Strategy for Woodside Petroleum Executive summary In response to a brief from Woodside Petroleum, this report proposes a public relations strategy for the best practice that will be launched in October 2014. The strategic plan will set a marketing position of Woodside Petroleum, and the potential effects of best practice hence providing a leeway in which to focus on public relation plans and budgets. Additionally, the public relations strategy will address external and internal environmental factors, issues that may affect the launch, rate of technological innovation, economic conditions in the global market and lobby for open publishing (Harrison, 2011). The use of secondary research has allowed a review of stakeholders and identification of key publics. As a result, clear, attainable campaign goals and targeted message that focuses on best practice as it work in line with the mission, vision, and core values of the company. The public relations strategy recommended is one year based plan existing in three-international activity. The activity comprises of pre-launch awareness that emphasized on the launch and carrying out a follow-up in order to maintain speed (Haig, 2001). Introduction Woodside Petroleum won Gold –award in the 2013 Australian Reporting Awards. It is the biggest gas and oil company in Australia, and is based in Sydney. The oil and gas company has 4000 employees in 67 offices across the continent. The company is listed on the Austria stock exchange. The Woodside Petroleum serves over 10 million customers in providing oil and gas services; it works with many individuals across the board such as investors, businesspersons, and employees with Australia. The competitors that Woodside Petroleum faces include Commercial Oil and Gas Company of Australia, The Oil, and Gas Company of Australia, and Australian Oil and Gas Company. The oil and gas company is worth $787.56 billion (Gregory, 2010). Situation analysis In analyzing external environment, situation analysis is analyzed from the PESTEL point of view where seven areas of concern are focused (economic, political, social, technological, environmental, and legal) (Gregory, 2010). Economic factors The shift of the international market from the west to the east Diminishing value of sterling due to worldwide recession High demand for gas and oil due to increasing number of engine machinery Political International Collaboration caused by globalization Social Travelling far and wide Increased communication Technological Machinery fitted with Low consuming engines due to computer driven Environment Increased travel for in the international collaboration SWOT analysis Strengths Leading producer of oil and gas Highly innovative thus meeting customer demands Existing stakeholders relationships Corporate reputation Competitive benefits Weaknesses Is within Australia only Criticized for high margins Opportunities New markets accessibility Potential for international collaboration Threats Decline in traditional markets New entrance Technological innovations Stakeholders The market for oil and gas involve engines and kitchen usage. Engineers and mechanics have assisted in the research and introduction of new engine models. This is an indication that stakeholders are diversified. As the public relations strategy is being executed, stakeholders need to be identified basing on their regional setup in Australia (Feitsch, 2009). Aims and objectives The strategy is aimed at achieving four objectives: To create a substantial interest in the best practice on compliance and governance so as to create a favourable environment for sales thus positioning Woodside Petroleum as the best in the oil and petroleum industry in Australia. To develop an understanding by providing support to for compliance To strengthen best practice such as its governance and compliance To ensure a lively communication across the board to be able to address new issues in the industry Creating a cohesive planning and management through establishment of communication teams in the targeted regions Creating communication activities that create a competitive advantage for Woodside Petroleum Key messages The public relations strategy has been developed in respect to the objectives of the business hence promoting mission, vision, and values of the company. Compliance and governance of Woodside has provided easy to read and understand reporting which helps stakeholders to complete without any difficulty (Green, 2007). Strategic model and timescale The strategic plan is expected to take twelve months, and is comprised of four distinct components: Pre-launch activity, stretching from May to October 2014, the pre-launch is expected a head of the launch. Second is an intensive and integrated communications in October to November 2014, which stresses on the launch activities in the specified regions. Thirdly is a follow-up event in November 2014 to April 2015. Finally, issues planning and management in order to ensure the stakeholders remain focused on the report instead of tangential industry issues (Diggs-Brown, 2012). Integrated activity will comprise of internal communication to develop pride and ensure staff become good ambassadors of Woodside Petroleum. Second is developing a proactive two way communication that focuses on the customer to enable stakeholders develop interest in the company's product. Investor relations will emphasize on the financial public relation events, thus reassuring stakeholders on the value for investment in Woodside petroleum and the strength of corporate strategy (Martin & Verbeek, 2005). Lobbying activities will be responsible in reinforcing the reputation of Woodside petroleum as quality business, responsible, thus creating an understanding in the policy makers. Finally, issue management planning will correct any defections that may arise from the public strategy (Clear & Weideman, 2002). Strategy tactics Pre-launch activity Message testing, this will occur at the final stage in visual identity and also campaign players through customer focus groups Resource and procedures A new generation public relation team at the national level will be established, and led by the Director of Woodside Petroleum. A regular face to face to customers and a link with director will be established and training of team players. Finally, plan and budget activities will be signed-off (Breakenridge & Deloughry, 2003). Internal communication Link existing company briefing systems with staff and management, updating intranet regularly, providing monthly e-newsletter, and employee competition basing on the product expertise. Customer facing communication Carrying out advertisements that are public relation oriented in Woodside Petroleum, updates regularly on both corporate and national websites, and featuring regularly on the e-newsletter in the monthly clients (Beard, 2002). Investor relations Include updates in the existing communication with analysts, shareholders, and stockbrokers, and liaison with financial public relation team players to connect with interim outcomes that will be announced in October (Austin & Pinkleton, 2001). References Austin, E. W., & Pinkleton, B. E. (2001). Strategic public relations management: planning and managing effective communication programs. Mahwah, N.J, Lawrence Erlbaum Ass. 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(2013). The PR masterclass: how to develop a public relations strategy that works. Read More