Decomposing the Effects of Direct Advertising - Example

Eywa Media Plan Earthsprite skin care range ‘Reconnect with nature’ MEDIA PLAN Period: January 1, 2011 – June 20, 2011 140 Queen Street Brisbane, QLD, 4000, Australia Phone: (07) 3333 4444 Fax: (07) 3333 2222 E-mail: mediaplanning@eywa.com.au Website: www.eywa.com.au Contact: Jessica Carter Table of contents Table of Contents Table of Contents 2 1.1Business description 4 1.2 Vision for the future 4 1.3 Business goals/mission 4 1.4 Business philosophies/identity 4 1.5 Main objectives 5 1.5.1Business objectives 5 1.5.2 Marketing objectives 5 1.5.3 Advertising objectives 5 1.6Geographical markets 6 1.7Key advertising recommendations 6 2.1Marketing Analysis 7 2.2 Customer analysis 8 2.4 Product benefits and unique selling proposition 8 2.4 Competitive analysis 8 2.5 SWOT analysis 8 2.6 Legislation and regulation 9 2.6.1 Competition and Consumer Act 2010 9 2.6.2 NICNAS Cosmetics Guidelines 9 2.6.4 Trade Practices (Consumer Product Information Standards) (Cosmetics) Regulations 1991 10 3.1Advertising Strategy 11 3.1.1Media mix and product awareness goals 11 3.1.1.1. Media mix 12 3.1.1.2 Goals and strategies 12 4.1Marketing analysis 13 4.1.1Media vehicles to reach target audience 13 4.1.2Creative and communications considerations 14 4.2Marketing schedule 14 1. Executive summary 1.1 Business description Eywa is a company based in Australia and is involved in producing natural chemical free skin as well as body care products that only contain organic ingredients. These ingredients are largely selected for their definable skin rejuvenated properties. Additionally, these ingredients are largely obtained from over seventy different species of plants as well as flower species which include rare or extinct plants found in Amazon rainforest. In its move to ensure that it uses organic compounds, Eywa is about to launch its new EarthSprite skin care variety. These new launch of products will contain tamanu oil which is considered to be a completely natural skin healing agent and is obtained from the tamanu tree. Tamanu tree is an indigenous plant found in Southeast Asia. The involvement in producing 100% natural skin products, the company has been a home to many people who are very sensitive to chemicals being used in other brands of skin products. 1.2 Vision for the future According to McCarthy (1996), Eywa aims to be the market leader in the field of natural skin care range. The vision is aimed to ensure that the future of Eywa is free from toxic chemicals that normally enter the blood stream through their customer hair and skin. This vision further is aimed in making people younger and improves their confidence through using their products which have 100% natural ingredients with essential oils and organic herbs. 1.3 Business goals/mission With increased call to adopt the use of organic products, Eywa has developed a mission which is greatly defined in its goals. To establish Eywa as an important brand which greatly represents quality in skin care? This will significantly be accomplished using a creative marketing program, quality research and manufacturing. 1.4 Business philosophies/identity Eywa business philosophy are build in two I’s namely; innovation and integrity. Innovation- To develop new creative ideas that have the possibility to change the globe Integrity-To act with openness and honesty without compromising the truth 1.5 Main objectives According to McCarthy (1996), Eywa main objective it to ensure it provides its customer with quality products that are 100% natural and they contain organic compounds. In order to ensure that this key objective has been met, the company has divided its objectives into marketing, business and advertising objectives. Thus division is necessary to ensure that each department within the company words according so as to meet the main objectives. 1.5.1 Business objectives Eywa business objectives are defined in the quality of products. The following are Eywa business objectives; To be the market leader in manufacturing natural skin care products To provide quality goods that will enable them to have a stronger competitive advantage over their competitors 1.5.2 Marketing objectives According to McCarthy (1996), marketing objective plays a significant role in ensuring that Eywa has reached all its targeted audiences not only in Australia but the larger Europe. The following are the various marketing objectives that Eywa have focused on; to make the attitude of their clients more favourable to the 100% natural skin care To expand their market To build a strong brand image compared to its competitors so as to reduce negative attitudes regarding organic skin products To improve Eywa market share in the Cosmetic industry, through keeping new errant’s out of the market as well as conveying the idea that their products and value for their customer money. 1.5.3 Advertising objectives The company have developed various advertising objectives in which there work towards ensuring that their product products are advertised in accordance with the Australian Cosmetic laws. To ensure that their target audience understand the idea of their product uniqueness compared to chemical cosmetics To significantly create brand leaders that will enable Eywa launch various additional products in the future To bring back customers who have defected to other competitive products by advising them that their products do not irritate the skin. 1.6 Geographical markets Eywa will cover the greater part of Australia with its head office in queens’ street in Brisbane. The local market will cover the major cities in Australia where by retail outlets will be established (Bhide, 2000). With increased globalization, there is need to create a global appeal by ensuring online retail markets have been established. 1.7 Key advertising recommendations The following recommendations will be helpful for Eywa marketing and advertising team. Effective marketing will ensure the company has a well established brand image. The company need to constantly train its marketers on the new upcoming advertising vehicles so that they can be able to have a strong strategy base as compared to their competitors. Additionally, careful planning is required before settling for both marketing and advertising objectives (Bhide, 2000). The company need to assemble information regarding its target audience and competitor then develop objectives from this information. 2. Situation Analysis 2.1 Marketing Analysis Chandy et al (2001) maintains that, the beauty industry today across the globe encompasses more than skin care and cosmetic products. The Australian cosmetic market grew by over $2 billion in 1999. A major factor for the growth in this industry is due to the impact of niche lines with spa and natural skin care positioning. The following shows the marketing analysis for the cosmetic industry in Australia; According to McCarthy (1996), the cosmetic sector in Australia is in a state of flux. Customers are looking for a more healing and holistic benefit to treat their skin. Further, consumers are not longer contended with their appearance but rather their healthy lifestyle offered by Eywa traditional brands. Traditionally, the dynamics defined within this industry favoured bigger cosmetic companies since they were in a position to fund their marketing and advertising campaigns. Today, marketing efforts by upcoming companies are gaining more credibility due to the strict rules and regulation in Australia (Tellis, 1988). Despite the fact that giant companies in the cosmetic industry , the upcoming organizations such as Eywa have realised the need to acquire new brand through using 100% natural ingredients thus a possible shift in this market. 2.2 Customer analysis Eywa has developed a database of its customers especially those who buy their products on a regular basis and also those customer who purchase their products occasionally when an opportunity present. Customer demographics show the current customers are in the age between 25 to 54 years. This age group are conscious of their beauty and they highly consider skincare to be an essential part of their defined busy life style. With the increased call of going green, Eywa customers have realised the benefit of using 100% natural products thus defining a wide market segment (Tellis, 1988). A significant number of customers are keen at knowing the different ingredients of products used and how these products are processed. The company have provided information about their products in their websites and customers are engaged in asking for assistant where necessary. Chandy et al (2001) maintains that, customers are concerned with their health when purchasing these products marketing institute on skin products indicate that 80% of people want to buy skin products that are perceived to be 100% natural to avoid reaction and irritation. 2.4 Product benefits and unique selling proposition Eywa has a better chance of using the unique selling proposition since the natural skin care market is not yet in a flux state. Unique selling proposition has various products benefits for Eywa not forgetting a well defined customer base. Eywa should define its unique selling proposition such that it will convince its target audience to switch brands. 2.4 Competitive analysis According to Tellis et al (2000), with increased emphasis on organic product and “going green” competition within this market are significantly increases. It is quite evident that any brand in the field of natural skin care is considered to be a competitor of Eywa. Research shows that the market of natural skin care product is extensive whereby it includes and not restricted to products sold in spas, departmental stores and drug stores (Tellis et al 2000). In order to develop a stronger competitive edge, it is necessary for Eywa to effectively differentiate themselves from their key competitors through offering their customers with something different. According to McCarthy (1996), competitive advantage is drawn from marketing their products and instating on them being 100% natural. 2.5 SWOT analysis Strengths: Australian owned company High quality ingredients/products 100% natural, organic and chemical free More reasonably priced than their competitors Exotic ingredients different from competitors products Opportunities: Increased focus on organic product Exotic ingredients readily available in the Amazon rainforest Knowledgeable customers on eco friendly products Weaknesses: Smaller marketing budget compared to international brands small consumer base as compared to competitors Threats: Economic downturn Competitors’ more aggressive advertising campaigns and marketing strategies Changes in government regulations or certifications for cosmetic/skincare products 2.6 Legislation and regulation There are various rules, regulations and legislation that will directly affect “Earthsprite skin care’ promotional campaign. As Eywa is marketing skin as well as body care products it falls within the cosmetic industry in Australia. It is essential that they do not contravene on any relevant legislation, codes of practice and Australia national standards. A key legal limitation that affects advertising is the want for the advertising campaign and slogans not to make false or deceptive claims about their designed product. Also, advertisements cannot be provocative, offensive or hazardous (Tellis et al 2000). The following laws need to be considered by Eywa in their promotional strategy are 2.6.1 Competition and Consumer Act 2010 The competition and consumer act 2010 provides protection of consumers preventive some restrictive trade practices of organization in Australia. Eywa should not engage in deceptive or misleading conducts towards the customers. If the company engage in deceptive conduct it can be prosecuted. Eywa need not to engage in unfair practices such as bait advertising, cartel pricing, pyramid schemes and certain misrepresentation. 2.6.2 NICNAS Cosmetics Guidelines These guidelines explain the recent changes in industrial chemicals in relation to cosmetic. Eywa requires understanding these guidelines to ensure it is in the right path with Australian authorities; Eywa cosmetic should be in accordance to the definition of what a cosmetic is. The guideline defines a cosmetic as a substance intended for placement in external part of human body with view of substantially change its appearance. Eywa cosmetic need not to be used for diagnosing, preventing and alleviating an ailment in persons. Nevertheless, this does not exclude use of the words preventing for general cosmetic purpose. The product should meet the standard described in uniform scheduling of medicines and poisons. Even with using labelling as a method of promotion, Eywa need to package their products as cosmetics in that the product need to have full ingredient disclosure and must be presented as being plainly for cosmetic purposes only. Despite being 100% natural, the product needs not to contain chemical that has been prohibited to be used for cosmetic. The guideline defines skin care products as; moisturising products that are used for dermal application such as gels, foams and creams and should not contain SPF sunbathing products either with no SPF or with SPF less than four Products for tanning without any amount of SPF skin whitening product and should not contain SPF Anti wrinkles and skin whitening products without SPF The definition of cosmetic that Eywa need to consider is in definition of chemical product found within Trade practices (Consumer product information standards). Clearly, the inclusion of cosmetic definition does not represent any significant change in the policy. 2.6.4 Trade Practices (Consumer Product Information Standards) (Cosmetics) Regulations 1991 These regulations largely apply to cosmetic products that have been manufactured in Australia and are perceived to be used in Australia and those which are imported into Australia. Eywa Earthsprite skin care advertising campaign will be compliant with the above legislation and Codes of practice in the following ways: Eywa will not engage in conduct that is misleading or deceptive or is likely to mislead or deceive Eywa will not make any false health claims or over exaggerate regarding the ingredients in its products Eywa will list ingredients of the cosmetic on the container or if this product is not properly packed in a container. The ingredients should list the concentration of the different ingredients. 3 Advertising Analysis 3.1 Advertising Strategy For Eywa, creative strategies are used so as to obtain consumer attention and provoke their customers to but their products with key focus on new Earthsprite skin care range. According to McCarthy (1996), the advertising strategy defined in the company slogan “reconnect with nature” capturing customer attention. The slogan promotes the company personal selling, public relation, publicity and sales promotion. Eywa has decided on advertising strategy that will defines its target audiences, the message to be delivered to them and how to reach out to them. Eywa advertising strategy is defined in three processes namely; targeting, positioning and segmentation. Segmentation entails diving Eywa market into distinct groups, targeting is deciding who to communicate with and finally, how should new Earthsprite skin care range be perceived by the target audience. 3.1.1 Media mix and product awareness goals Eywa marketers need to understand that different media types can play off one another and that customers are not interacting with one type of media thus requires a significant media mix. According to McCarthy (1996), an effective media mix call for well defined product awareness goals. Eywa has combined various advertising channels so as to meet their promotional, marketing and product awareness goals of their campaign. 3.1.1.1. Media mix Media Mix for Eywa is a unique process that entails distinct mechanism to reach the target audience. Eywa Media mix comprises a diverse tool through which advertising will be carried out in a smooth process not only between customers and the company managers but also the larger community. The tools that make up Eywa media mix are the channel of communication through which advertising is able to reach the target audience. The diagram below defines Eywa media mix that will ensure that product awareness goals are met. This media mix by the thought of driving credibility and trust as well as engage customers in all its marketing activities. 3.1.1.2 Goals and strategies Eywa has defined goals and strategies that will ensure that the adopted advertising strategy is effective and that their media mix is in relation to the strategy. The following are some of the goals; to ensure maximum customer engagement so as to create loyalty and trust among the target audience to effectively promote the launch of the Earthsprite skin care range whereby a brand awareness will be created and it will be unique compared to that of its competitors to position Earthsprite skin care range as the only products that are 100% natural and of high quality priced at a reasonable price for all its target audiences 4 Media Strategy 4.1 Marketing analysis Eywa have defined its marketing analysis and it has developed various media vehicles that will assist them to reach the target audience. The world is going organic and therefore Eywa aims at ensuring that the chosen media vehicles that will ensure a successful launch for the Earthsprite skincare range. Market analysis for Eywa will create brand awareness for the Earthsprite products whereby the brand will be differentiate from its competitors. 4.1.1 Media vehicles to reach target audience According to McCarthy (1996), a good media vehicle to reach Eywa target audience would be media that women tend to associated with since the main audiences here are women. Women lifestyle and fashion magazines will generally promote the well being of women both in beauty and health. Magazines such as Cosmopolitan and Cleo for younger women can be used in media vehicle since this group of customers. Advertisements placed in magazines will issue a new direction to the advertisement campaigns as it will assist Eywa to target a specific market and will ensure that the exchange is done on a national level. According to McCarthy (1996), the main aim of magazine advertisements will be tap the women clients who buy the product for their households or individuals who look to support different causes and people preferring to purchase and spend time outdoors. According to McCarthy (1996), the disadvantage of this method is the fact that the frequency at which the advertisement will appear as most of these magazines is issued monthly. Additionally, Eywa competitors may be using this same method meaning that that the company need to come with a unique visual construction that stand out against other companies. The advertising through magazines can be through enhancing colour, creative design and effective space composition to name a few. Eywa should engage in both physical and electronic form. Eywa will do advertisement over the TV and radio. According to McCarthy (1996), the advertisements through radios will be broadcasted on radio stations which have the highest viewership. This form will ensure that they are able to reach to the maximum possible customers and will be able to create a positive impact. Television is a form of media advertisement has the highest penetration and looks to each every nook and corner of the country will be very effective. This will help people to become aware about Eywa message and offerings. This will help Eywa to capture a large chunk of the market and create a long lasting impression on the mind of the customers. The advantage of using televisions and radio is the fact that a large number of target audience at a time. With increase internet use, Eywa need to focus on social media to reach its target audience. Internet is a large influence and source information for people across the globe. Social media such as Facebook, YouTube and twitter is a very effective advertising tool for the younger generation thus women at the age of 20 and 40 will get to know about the different types of products offered by Eywa. A social media page with the company slogan “reconnect with nature” will make people remember the brand and connect with them significantly. 4.1.2 Creative and communications considerations It is likely that Eywa should think about advertising nationally in order to target and gain more consumers. Being an Australian owned company, this may appeal to customers who like to support local brands and businesses. According to McCarthy (1996), depending on the size and growth of the company they may consider taking marketing into an international scale later on. Creativity and effective communication plays an important role in ensuring effective marketing schedule and realization of the advertising and marketing goals. According to McCarthy (1996), the company slogan “reconnect with nature” sends a powerful message to the target audience. The slogan is very creative and therefore, it communicates effectively about Eywa products. According to McCarthy (1996), creativity is a crucial aspect in enhancing effective communication and thus proper message reach to the target audience. The various chosen media vehicles need to have a creative design and ensure the right message is sent to the customers. The Eywa brand already has a well-known tone and manner that it desires to carry on with this range. The brand is modern, sincere, innovative, reasonably priced, ethical and promotes nature and well-being. 4.2 Marketing schedule Media Vehicle Schedule Magazines Two advertisements will be placed in magazines which will focus on women Radio The advertisements will be broadcasted for 2 months and 3 times a week and twice daily Television Thirty second advertisements for a span of half a year will be telecasted across all major channels so that awareness can be created. Mall Floor Graphics This form of advertising will use 4 X 11 inch footprints which will direct the customers to the stores which deal in Eywa products. Bus Shelter This form of advertising will use 47 X 68 inch displays on the shelter of buses on prominent routes. Timeframe Media time Television The first 1 and ½ months since it is the main marketing media vehicle Radio 2 months and it will run concurrently with the television media vehicle Print 2 months after the television and radio advert have been put in place Digital 2 month towards the end of the marketing campaign. This is due to the fact that it is cheap and it focuses on a larger target audience. 5 Media Budget Media Cost (AUD$) TV 1.75 Radio 1.25 Print 0.75 Digital/online 0.75 Other Bus station 0.5 The budget for this promotion is $5 million for an advertising campaign to last for 6 months. This amount is to cover all the different advertising expenses including but limited to printed materials, radio, commercials, website development and ongoing maintenance etc. 6 Campaign evaluation strategy Objective Evaluation to make the attitude of their clients more favourable to the 100% natural skin care The attitude of clients was more favourable due to the fact that Australia government has been encouraging the use of organic compounds To expand their market More people will get to know Eywa due to their marketing strategies and through to effective use of marketing media To build a strong brand image compared to its competitors so as to reduce negative attitudes regarding organic skin products Eywa products have been adopted in the larger part of Australia with many customers maintaining that chemical products irritate their skin To improve Eywa market share in the Cosmetic industry, through keeping new errant’s out of the market as well as conveying the idea that their products and value for their customer money. Market share have increased with 5% and expected to increase over the years. This can be attributed to the fact that customers are realizing value for their money References Bhide, A. 2000. The Origin and Evolution of New Business. New York: Oxford University Press Tellis, G. 1988. Advertising exposure, loyalty and brand purchase: A two-stage model of choice. Journal of Marketing Research, 15, 134–144. Tellis, G. J., Chandy, R., & Thaivanich, P. 2000. Decomposing the effects of direct advertising: Which brand works, when, where, and how long? Journal of Marketing Research, 37, 32–46. Chandy, R., Tellis, G. J., MacInnis, D., & Thaivanich, P. 2001. What to say when: Advertising appeals in evolving markets. Journal of Marketing Research, 38, 399–414. McCarthy, J. (1996). Basic marketing: A managerial approach. Homewood, IL: Irwin. Read More