Advertising and Integrated Brand Promotion - Case Study Example

Contents 1.0 Introduction 2 1.1 Background 2 1.2 Purpose 2 1.3 Format 2 2.0 Marketing response 3 2.1 Goals and objectives 3 2.1.1 Increase brand exposure and recognition 5 2.1.2 Improve website user interface 9 2.1.3 Increase online customer interactions 10 2.1.4 Online Personal selling 13 2.1.5 Competitions and sales promotion 14 2.1.6 Direct marketing 15 2.1.7 Customer relations marketing 16 3.0 Recommendations 17 Appendices 1.0 Introduction 1.1 Background The study has evaluated marketing communication data as provided in the matrix using relevant theory on marketing and e-commerce. From this data, areas to be addressed have been identified which will be critical in enabling Home Backpackers Hotel meet its objectives. 1.2 Purpose Based on the studies and analysis carried out by our professionals, our firm will accurately identify your marketing communication needs and link them with the most appropriate strategies in the market. Recommendations will also be made to customize the approach in marketing communication to match with the current organizational resources. 1.3 Format The report is organized into three main parts. The first part summarizes results of the analysis of your website. The second part presents the goals, objectives and strategies used in marketing communication in the industry. The third part will make necessary recommendations to your firm on the best approach to the marketing communication issue. 2.0 Marketing response A number of areas in your website have been short-listed for improvement. These are visual appeal, ease of use, availability of weblinks, subscription for membership, credit card security, company logo, general layout, colour schemes, feedback abilities and search engine optimization. These were the most relevant website issues that need to be addressed out of their poor score. Each relevant website issue was identified and scores awarded from a highest of five to the lowest zero. The issues that scored two or less were marked and listed as above. These issues that scored poorly also formed the basis for shaping communication objectives and strategies. 2.1 Goals and objectives BASE YEAR Objectives Goal Measure 2011 2012 2013 2014 Promote brand identity and recall Increase brand recognition and loyalty 5% 10% 12.5% 15% Increase web traffic Grow number of web visitors per day 1000 2500 3500 4500 Increase web usability Increase score on matrix 4 6 8 9 Promote customer loyalty Increase number of returning customers 5% 10% 15% 20% Customer Relationships marketing Increase number of customers responding to companies messages 10% 20% 30% 40% Integrated communication Improve consistency in online and offline messages 20% 25% 30% 35% Social media marketing Number of social media links 1 2 3 5 Customer brand ownership Number of web visitors sharing the site 50 200 300 500 Priority Goal Strategies 1 Increase brand exposure and recognition Creation of a better more visible company logo Issuing free branded t-shirts to customers Advertisements in local and foreign magazines Placement of large billboards around the Central station Advertising on popular websites Popularise logo Offer free merchandise 2 3 Indicate payment modes Broaden payment methods Show acceptable payment modes on homepage Currency conversion services 4 Increase online customer interactions Increase additional information about the Hostel in the website Create Facebook and twitter accounts Include weblinks to Twitter and Facebook that allow sharing Create a blog where customers can discuss service and other issues Develop smart phone application for Home Suggestion/advice section 4 Online personal selling 5 Competitions and sales promotion 6 Direct marketing Call customers on Telephone Emails customers Contact customer through social media platform 7 Customer relations marketing VIP club Online surveys Newsletter subscriptions and RSS feeds Home Alumni club 2.1.1 Increase brand exposure and recognition Marketers base their product and services on the perceived needs of the consumer, brand a good in a name appealing to a consumer, plan and execute advertising that is appealing to the consumer, price good and services at a convenient prices to the consumer and make products that are more appealing to the consumer than those of the competitor. All these assumptions on what will impress the consumer are based on consumer behaviour. Blythe (2008) states that the key concept of marketing is centrality and that what consumers think about when they see the brand influences purchasing behaviour. Therefore, Home Backpackers must strive to maintain its unique brands and increase brand awareness targeting the brand’s association with all the needs of backpackers. Development of company logo The strategies to achieve this would be the development of a good company logo to accompany the firm’s brand name. Currently, Home Backpackers has no permanent logo. Although the firm uses several designs on their name, the company has not created word. The power of brands logos is best illustrated by the Nikes swoosh/tick. This image has been identified as one of the most recognisable images in the world which has enabled the company to fight of competition and imitation the industry. A logo is advantageous in the sense that it catches the eye more easily and is easy to recall. On part of the marketer, the logo enables the marketer to put into practice creativity. Issuing free branded t-shirts to clients Back packers are known to travel around the world and major cities. As one of the world’s major tourist destinations, it is important to market Home Backpackers not only to Sydney residents but also to people from other cities in Australia and around the world. One convenient way to do is by issuing free branded t-shirts to customers. These T-shirts should display the Home Backpackers, brand and logo. In fact, this can be one way of popularizing the company logo that will be adapted as detailed above. When customers wear these T-shirts around the city of Sydney and even to the tourist attractions sites that they will visit, it will make the brand more visible to niche market of tourists who are an important market segment of Home. T-shirts should be made in various colours with several different messages. The different colouring will be a generalized attempt to meet different consumer needs. Holiday mood and patriotic messages such as the “Land of the All Blacks” or “The Kangaroo Nation” will also encourage customers to wear the T-shirts more and in the process expose the brand more. Advertisements in local and foreign magazines There are a number of travel magazines in Australia such as Australian Traveller and Get Lost. By placing classified adverts in these magazines, the firm will be targeting the niche market of travellers. This is Home’s mainstay in that it targets travellers and adventure seekers in Sydney. As opposed to newspaper adverts, magazine adverts are more accurate in reaching a given niche market. However, magazines compared to daily newspapers have a wider reach and their advertising space is cheaper. Another advantage of using magazines over newspapers is that magazines have better images and quality glossy pictures which can be an added advantage for Home as it will need to display the images of its products to entice and capture the imagination of customers more easily. Placement of large billboards One common characteristic of many backpackers is that they are always on the move. This means that marketers targeting this group of people must place their products where there is high traffic. One convenient way of placing and displaying immovable products such as accommodation services is through the use of images. Home Backpackers thus needs to place marketing images and messages targeting backpackers in areas with high traffic of backpackers. Therefore, hiring services of outdoor marketers to place large bill boards along train stations and major highways will be necessary. Some of the highways to be targeted include the great Western Highway. For maximum impact, bill boards are best placed at junctions with other roads since traffic is slower hence allows travellers to view images. The firm should ensure that that any images of people used are authorised and that the images adhere to ethical advertising. Advertising on popular websites Some websites are notorious for attracting high number of visitors than others. Such websites offer advertising services to other websites. Home Backpackers should consider placing web flyers in such websites to expose the brand to a wider market. Popular ones in Australia include Twitter, Facebook, Flickr, Myspace, Yahoo, News.com.au, smh.com.au, apple.com, and national.com.au among others. This will expose the Home Backpackers to far reaching audience. For high impact, the adverts should not only display the product offer in part, but they should be links to Home’s website. Popularising logo All Home Backpackers assets and merchandise should be branded with a logo that is easily visible. This includes all staff uniforms, equipments, towels, door mats, ashtrays, lighters vehicles and give-aways for their customers. As an image, a logo is easier to recall and identify with as it engages the visual sense in a creative manner. Free merchandise The firm should embark on ensuring brand recall among customers by giving first time customers Home branded merchandises. While this is a preserve of large hotels, Home can do this by using low cost items such as pens, cigarette lighters, handkerchiefs, bandanas, ash trays, slipper, shower caps etc. When such items are carried away by clients on their departure, they carry with them the brand wherever they go. While this increases the opportunity that it will be viewed by other travellers or family and friends, it serves as a constant reminder to the customer about Home. This means that the customer will feel attached to the hostel way long after leaving. This increases the chances of returning back to the establishment. 2.1.2 Improve website user interface Improve animation The current still pictures in the home page are dull and feel stale and thus should be replaced with new animated images. The existing animation on the middle of the website is hardly noticeable and the images are too small to create the needed impact. The home page should feature bigger and brighter images showing in form or animated presentation with around five images showing different scenes from the facility. This way, there will be a feel of life on the website to replace the current impression of abandonment. Jolly Swagman have utilised this aspect fully which makes the website very lively and appealing to the eye. Harmonise colour theme Use of colours in branding and marketing is very important. Famous brands around the world have used specific colours consistently and in effect owning these colours. The Barclays Bank has for instance consistently used blue as its identity colour featured in all merchandise and the company logo. In the same manner, Home should design and subscribe to one colour or a combination of two or more in its branding efforts. This should be replicated in the website, room colours, logo, merchandise and even assets. For instance, in the images in the website, there are too many colours used at once. The side images are which appear from using a large screen are distracting and are totally irrelevant. They are likely to distract clients from the main product. In this regard, the new images should stick to the products on offer and any relevant company information. Arrange all tabs systematically The website should be organized harmoniously to take all new inclusions. Some basic issues in website advertising which are currently missing or used wrongly should be adhered. For instance, the top left hand corner of the website as it appears on a computer of mobile phone screen should contain the core products or major business of the company. Enable virtual tour Animations basically offer brief virtual tours. However, additional virtual tours should be provided in phonographs and videos. The virtual tour will provide better visual detail on the products on offer. In some cases, where firms have been unable to provide video virtual tours, there are “more details” tagged to each image which provide a link to see specified details about the product. Virtual tours also work well a product catalogues. Indicate payment modes This should be visible on the homepage. There is no point in allowing customers to go ahead with booking if they cannot pay for their bookings with the payment methods they have. Not many websites in this industry have provided such information readily. 2.1.3 Increase online customer interactions Social media By providing social media platform, Home Backpackers can benefit from ‘online word of mouth’. Duan, Gu and Whinston (2008) define this as the simple sharing of customer experience by customers through the internet either at a personal level or through various social websites. No matter the channel, word of mouth has significant effects on product movement and volume and serves as the core marketing channel for online retailers. Social websites have the highest impact on online marketing initiatives (Blythe, 2008). Godes and Mayzlin (2004) say that online websites have attempted to introduce a social element in order to attract more shoppers and increase the length of time spent at the website. Notably, blogs and products/service review section have worked well. In addition, shoppers are allowed membership with very interesting and varied benefits. Loyalty programs have also been incorporated. Product reviews provided by online retailers are meant to overcome the limitation presented by online shopping as customers cannot physically feel the product and hence seek assurance from other customers’ views through the product review section (Duan et al 2008). With a reported 2 million Australians using social media, companies have found it necessary to reach out to their customers and potential customers though the various social media platforms including Twitter and Facebook. Among Home Backpackers main competitors, Jolly Swagman sets the best example in how organisations can best utilise social media platforms to reach out to their clients, interact with them and build long lasting customer relationships. On the right top most part of Jolly Swagman’s website is the telephone number, and links to their Facebook, Twitter and Skype accounts. These tabs complement the ‘contact us’ section customers can contact the company through email by first registering their name and email address. Search engine optimization There is need to include a quick search engine in the website. The quick search allows customers to locate information about the hostel if they are not sure on which tab such information fall under. Ordinarily, information is categorised to help users locate information with ease. It is important that search options be enabled and linked to searches within the website and within the entire web. Searching the whole web from the company’s website allows the customer to remain longer at the website and increases chances that customers will explore other products on offer. Additional information Sharing the history of a company enables customers to understand, trust and identify with such brands. The firm needs to provide additional information on its history, operations core values, mission and vision statement and more. Any awards won or achievements should be indicated as evidence of the hostel’s high quality services. Furthermore, there is need for the firm to provide media releases periodically online in order to inform customers of new developments where necessary. FAQs A Frequently Asked Questions sections is very important in providing assurances to customers on certain common queries. This section thus pre-empts the need for the customer contacting the company for additional information which saves time and resources. However, this should not whatsoever replace the ability of customers to contact staff for supports services through email or personalised chats. Blogs Blogs provide a forum through which the company and the customers can engage in constructive discussions pertaining to the company. It is important for companies to keep to strict rules on blogging to prevent some bloggers from misusing the site. Jolly Swagman for instance maintains a very active blog where some of the issues discussed are the firm’s sustainability policy. Home should emulate this and create a blog where the staff, management and staff can interact. Suggestion/advice section Customers should be allowed to make their voice heard in service delivery by giving them an opportunity to comment or suggest improvements on the company and product services. This way, the firms will understand customer needs better and help it to be customer-oriented in future. Mobile phone application This option allows marketers to differentiate their clients online interactions based on their terms as opposed to those based on social media platforms. Home will develop an application that will engage it clients at more personalised level. The applications should be developed for iPad, Iphone and Android markets. These applications also allow clients using mobile phones to have access to a mobile optimised access to the website. 2.1.4 Online Personal selling The company should incorporate online selling in their websites. Currently, the company website only offers online booking services for customers. Personal selling allows consumers to interact one-on-one with a sales representative and not just go though automated steps. O’Guinn, Allen and Semenik (2011) notes that that there are numerous advantages of personalised selling in the sense that buyers can receive further assurances from the sale representative. In e-commerce, personal selling takes place through personal online chat. Previously, telephones were preferred for personal selling but with the coming of the internet, firms especially those firmly rooted in e-commerce are taking up chatting. Home Backpackers is well suited for personal inline chatting for a number of reasons. Shah (2009) pinpoints a number of ways that firms can benefit from personalised online chatting. First and foremost is that Personalised online chatting provides the firm with a way of contacting potential customers on a personal level as opposed to advertising. Secondly, personalised online chatting gives the firm instance response from existing, previous and potential customers. Such an option is not available through sales promotions of through advertising. Thirdly, personalised online chatting is cheaper as opposed to telephones and it is possible to chat with more than one client simultaneously and still maintaining the personal privacy (Shah 2009). 2.1.5 Competitions and sales promotion Majority of websites supporting online transactions have employed various ways of encouraging customers to buy more and mostly in bulk. This is one strategy that Home Backpackers should consider employing in their website. O’Guinn, Allen and Semenik (2011) note that sales promotions serve various purposes in an organisation. Some of the noted benefits in that they lead to increased revenues, increased profits and increased customer flow. Shah (2009) notes that competitions and sales promotions are some of the best tactics used by new players in a market or small players competing against big players. The idea of a competition and sales promotion are based on the fact that the brand being marketed might not be very popular in the market hence marketers align their [product in the market with something which the target market can better associate with and trust more. Compared to its competitors, Home is lagging behind its competitors in terms of sales promotion. Sydney Backpackers has combined its social media presence with a sales promotion. On its website, the firm encourages people to become a fan of Sydney Backpackers in Facebook to get a discount (Sydney Backpackers). 2.1.6 Direct marketing Telephone Local telephone directories should be used in advertising and informing customers. While unsolicited telephone calls are discouraged, past customers who leave their details behind should be contacted too understand their travel plans and inform them of additional products offered and any new seasonal offers. Emails Online based direct marketing will comprise of contacting and selling to customers directly over the internet. Home Backpackers will either buy a list of emails from mailing list vendors. This will give the firm a wider reach though it is hard to identify a clear target market. Alternatively, the company will use the mailing list obtained from past clients and any enquiries made from its website. This mailing group is a more relevant and clearer target that than from mailing list vendors. The email shall contain any seasonal offers, price listing and firm’s catalogs. Social media Through Facebook and Twitter, Home will actively contact customers through private messages. In Facebook, people who have liked the Home Backpackers page which will be created will b targeted first. In twitter, people who will have chosen to follow the Home Backpackers will be contacted first. Such people will be identified through their hobbies and location. For instance, people from around Australia who have listed travelling as hobby should be in-boxed with the firms catalog, product offers and price list. 2.1.7 Customer relations marketing VIP club Returning customers should be categorised on their history. Tagging a select group of customers as VIP and giving them VIP treatment will enhance customer loyalty, boost customer retention and also increase opportunities for word of mouth marketing. Online surveys The company should conduct online surveys on people visiting their website. The surveys should be kept simple and should seek to differentiate past customers and potential customers in order to identify different needs. Respondents should be kept anonymous and the participants should be assured of this in the first place. Such surveys will inform the firm about its return customer rates and even the geographical reach of their market. Newsletter subscriptions and RSS feeds This should target return customers. Several studies pinpoint the importance of retaining customers as opposed to chasing new ones. A study by Jadish Sheth revealed that it costs five times as much to replace a typical customer as it does to take retain such a customer (Sanchez n.d.). Other studies have indicated that a brand loyalty is what makes a brand worthy and not just the name. By enabling customers to subscribe to newsletters, Home will be creating a virtual Home Backpackers family which is well informed and up to date with all the latest information and developments at the hostel. RSS feeds on the other hand will enable the firm to publish and syndicate all information. The firm gets to reach a larger clientele in that those subscribed to RSS feeds can get access o company information directly on their browser without necessarily accessing the Home Backpackers website. Home Alumni club The company shall create a club for Home Alumni. To qualify for membership into this club, customers ought to have stayed for over twenty nights at the outlet. Members of this club will receive additional benefits such as discounts, priorities in service delivery, free courier services during their stay and one free night for every five nights spent at the hostel. Such added benefits for the alumni club will encourage more and more people to return to the Home Backpackers every time there are travelling in Sydney to increase their chances of enjoying such benefits. 3.0 Recommendations As a company with an established online presence, it is highly recommend that the firm employ cheaper and effective social media advertising. This will comprise opening a fan page in Facebook, creating a Skype contact and also creating a Twitter account. These accounts must be active and updated on a daily service. To encourage customer participation, guest of the day will be named on these accounts and organisational posted on the sites. The improvements on the website should be immediate for maximum impact. The rearrangement of the website is necessary in order to include payment modes on the home, page, better animated images and other necessary tabs. The firm should indicate all impeding changes in the website in their newsletter and posters in the facility. This will encourage customers to visit the new looking website and enjoy the new inclusions. Upon booking, all customers should be encouraged to return to the establishment by informing them about the new products such as the VIP club and the alumni club. References Books Blythe, J (2008). Consumer behavior, (Sydney: Cengage Learning) O’Guinn, T., C. Allen & Semenik, R. 2011. Advertising and integrated brand promotion. Cengage Learning Shah, K. 2009. Advertisement and Promotions: An Imc Perspective. Sydney: Tata McGraw Hill education Clow, E. & Baack, D. 2007. Integrated Advertising, Promotion, and Marketing Communications 3rd edition. Pearson Education. O’Guinn, T.C., Allen, C.T., &Semenik, R.J. (2011). PROMO.Mason, OH: Cengage Rossiter, J. R.,& Bellman, S. (2005). Marketing communications. Frenchs Forest, Australia: Pearson Education Journals Duan, Wenjing, Bin Gu, and Andrew B. Whinston (2008), "The Dynamics of Online Word-of-Mouth and Product Sales-An Empirical Investigation of the Movie Industry," Journal of Retailing, 84 (2), 233-242. Godes, David and Dina Mayzlin (2004), "Using Online Conversations to Study Word-of-Mouth Communication," Marketing Science, 23 (4), 545-560. Internet Introduction to Marketing Communication, accessed 23 August 2012, Sanchez, J. customer relationship marketing; Building customer relationships for enduring profits in a wired economy. Appendices A Weighted Matrix Rate the firms/website elements as follows 0 = completely absent 1 = very poor 2 = poor 3 = average 4 = good 5 = very good   Home Sydney Maze Jolly Swagman Weights Design & Format           25% position on screen 1 3 4 5 2 colours 2 2 3 5 5 fonts 3 3 2 3 4 photos 4 2 2 5 4 virtual tour 5 2 2 5 4 logo 6 3 3 5 2 movement 7 2 3 5 5 subtotal   17 19 33 26 count 7 4.25 4.75 8.25 6.5 weighted score max score 35 8.75 Navigation / Functionality 25% easy to use 1 5 2 4 3 quick search 2 0 0 0 4 time to download info 3 5 3 5 3 track booking 4 4 3 5 4 site map 5 4 3 3 4 links to other sites and return 6 0 5 2 3 return to home icon 7 5 5 5 5 subtotal   23 21 24 26 count 7 5.75 5.25 6 6.5 weighted score max score 35 8.75 Interactivity 20% Enquiry 1 4 5 4 4 feedback icon 2 0 0 0 0 how difficult to complete forms 3 4 4 3 5 opt-in & opt-out for emails 4 5 0 5 5 e-community forum 5 0 0 5 5 subtotal   13 9 17 19 count 5 2.6 1.8 3.4 3.8 weighted score max score 25 5 Product/Service Information 10% range 1 3 3 4 5 features 2         availability 3 2 4 3 4 prices 4 4 3 3 4 FAQ 5 0 0 4 5 currency of information 6 3 4 5 5 pdf format for printing 7 0 0 0 0 error free 8 5 5 5 5 no "this page under development" notices 9 5 5 5 5 subtotal   19 21 25 28 count 9 1.9 2.1 2.5 2.8 weighted score max score 45 4.5 Security/Privacy 10% details of personal data collected 1 3 5 3 4 how data used 2 3 5 3 4 your access to data 3 0 5 0 0 links to other sites 4 5 5 5 5 security/credit card security 5 5 3 3 3 FAQ 6 0 0 0 0 subtotal   16 23 14 16 count 6 1.6 2.3 1.4 1.6 weighted score max score 30 3 Firm Information 10% history 1 2 1 4 4 is the brand clear 2 5 5 4 3 press releases 3 0 0 0 0 senior mgt details 4 0 0 0 0 contact details 5 3 4 5 4 store/office locations 6 4 5 5 3 info up to date 7 3 4 5 5 hours of business 8 0 5 0 0 subtotal   17 24 23 19 count 8 1.7 2.4 2.3 1.9 max score 40 weighted score firm scores   105 117 136 134 4 max possible 210 17.8 18.6 23.85 23.1 weighted score 34 B: Jolly Swagman website screenshot C: Sydney Backpackers website screenshot Read More