Digital Marketing Plan for Vinomofo - Case Study Example

E-marketing Strategies Name Class Unit E-Marketing Strategies Digital marketing strategy is based on integrating website, digital communication channels and mobile marketing with an aim of acquiring new customers as well as customer retention (Chaffey et al. 2006). In digital marketing for Vinomofo, it will define how the wine company will be able to achieve its e marketing objectives. The strategies used will enable the company to select the target market, position itself and select the right market communication tools. Web based strategies are built on four main constructs. The constructs are; web design, web promotion, web price and web CRM (Chaffey et al. 2006). Digital marketing strategies that are used by Vinomofo will involve use of electronic means. The strategies thus have high efficiency and create new business models that will enhance value to the customer. Web design Vinomofo is an online wine retailer and thus have to depend on web design to improve customer attitudes. Web site performance is based on the customer attitude towards it. The way a website is organized, informative and entertainment aspect are very important dimensions to consider (Chaffey et al. 2006). Web promotion There are certain backgrounds that can help Vinomofo positively in their advertising campaigns. Web experience and context are very important. The company has to look at the advertising hierarchy of events which includes; attitude towards brand, the attention paid to commercials and the intention to make purchases. Complexity and interesting capabilities of web plays a major part in creating a positive attitude among users. The company has to ensure that they use a simple web background to avoid complexity which makes websites less effective (Combe, 2006). Web price Website provides a platform where the customer and buyer meets and carries out transactions. The company web design should be able to reduce transactions costs. This can be achieved through optimizing costs. As a wine retailer, price can be optimized in several ways. First, the company can announce price and test the consumer response. The collected responses can be used to set the right price. The website makes it easy to adjust prices. Vinomofo can be adjusting prices based on the demand and the competitor behaviour. Through use of click stream, it becomes possible to learn on purchase history. This is a method that can easily help in identifying the target customer segment. The strategies that can emerge here is use of segment specific pricing (Combe, 2006). Web CRM Web is a direct marketing channel between the customer and firm. Personal information on consumers can be collected using data mining technology. This will help the company to gain information on the customers interests. The firms can use this information and send emails to potential customers based on their qualities and interest. A lot of resources will be used to come up with website that attracts more customers. The wine retailer will have to identify weakness in their website and improve on them (Chaffey et al. 2006). Product strategy Vinomofo products are wine varieties. The company must tailor its online merchandise based on the target customer composition. At the moment, target customers are young men and women with disposable income. The company have to make sure that the products they offer fits the clientele. The low cost of internet marketing can be used as an advantage to increase the number of products and targets (Combe, 2006). There is stiff competition from major wine dealers in Australia such as Woolworths and west farmers among other online competitors. Use of cost leadership strategy may be the most appropriate in this case by utilizing low economies of scale and low operating costs. Cost leadership strategy involves the firm focusing on creating a cost advantage (Combe, 2006). This is done by selling the products at a lower cost than the competitors. This will increase the company market share and achieve a broader customer segment. The company can also capitalize on their clientele by providing products which fits them. This will involve selling only the products that fits the young men and women with disposable income and ignoring other segments. This will enable the firm to achieve high levels of loyalty due to this strategy. Pricing strategy The wine retailer will use a differentiation approach in its pricing strategy. Having appropriate differentiation strategies will enable the company to command premium prices without losing the customers. This will also enable the firm to maintain its relationship with the clients. By completely differentiating themselves with other online wine retailers as well as stores, the firm will have unique status which will enable them to set premium prices (Combe, 2006). Promotion strategy Internet is a very vital tool for communicating to the customers. The customers are also able to use the internet channel to communicate with the company and learn about their products and services. Websites have all aspects of traditional stores apart from face to face selling. It is possible for Vinomofo to offer informative and persuasive advertising using internet channels. Internet will also provide a channel where the company can enhance their brand image. This will involve using the internet for public relation. Due to the fact that internet provides real-time information on pricing and delivery, the channel will help Vinomofo to influence customer buying decisions. There are various forms of promotion that the company will engage in using the internet. Price reduction and offers will be used as a means of promotion (Chaffey et al. 2006). Distribution strategy Most consumers assume that online transactions are riskier than retail store buying. The online wine retailers will thus have to offer risk reduction strategy that will encourage internet purchases. Vinomofo will offer money back guarantee and price reduction strategies that will make consumers make purchases. The strategies will increase consumer acceptance to online distribution channels. The firm has to utilize internet as a customized distribution strategy that is safe for the consumers. The firm will have to establish good relationship with the sellers. This is due to the fact that wine distributors’ views online distribution as capable of raising channel conflict. The sellers fear that online distribution channel will lower prices, which will lead to price competition. Vinomofo will have to use enhanced sellers’ attitude so that they will be able to use their online distribution channels (Combe, 2006). Keeping customers engaged and loyal In online marketing, engaging with customers is vital for success. Vinomofo have to engage with its current and prospective customers to ensure that there is repeat purchase. It is possible to have customers make a one-time purchase but making them repeat the purchase requires an elaborate strategy. To enable this, Vinomofo will utilise strong brand name. The firm will have to enhance its brand and ensure that it is better than the competitors. This will need the company to look at the aspects of the brand which are able to encourage loyalty to the customer. This strategy will require the firm to offer; great experience, great communication, great community, great connections and great value. To carry out the strategy, the firm will have to maintain good communication, listen to customers, offer great products and carry out marketing in a relevant way. The organisation will have to identify the online loyalty barriers which hinder consumers from making interactions with online brands (Combe, 2006). The firm will use repeated interactions, which will strength the consumers’ emotional and psychological investments in the brand. The firm will ensure that the relationship between them and consumers is mutual. To engage customers, Vinomofo will have to look at four areas which comprise engagement. The areas are; involvement, interaction, intimacy and influence. The firm will also use hurdle rate strategy to engage customers. Hurdle rate involves determining the customers who are able to perform a given activity. When they perform it, they are considered to have jumped the hurdle (Chaffey et al. 2006). The firm will utilize the following hurdle rate examples; email marketing, social media community and internet communities. This will involve determining the number of customers who have subscribed to email marketing and the percentage level of active subscribers. The firm will also look at the number of active social media community who are followers. The monitoring enables the firm to know the active followers on the internet. These are factors that Vinomofo will use to improve customer loyalty. The Customer experience will be enhanced as it is capable of influencing emotional loyalty. This implies that Vinomofo will have to avoid any instance that can lead to poor service delivery. Key loyalty drivers will have to be identified and utilised. The other main loyalty drivers that the firm will engage are order fulfillment, product performance and post sale support. This implies that Vinomofo have to ensure that they deliver their products on time and enhance inefficiency by looking at areas with problems. The online retailer will have to use an updated communication strategy that will enable it to have sustainable content sharing and enhance company dialogue with the users. This will involve the creation of an e-hub where a group of interested customers can interact with the firm. Through the hub, feedback and dialogue can take place (Chaffey et al. 2006). References Chaffey, D., Ellis-Chadwick, F., Johnson, K. & Mayer, R. (2006). Internet Marketing Strategy, Implementation and Practice. Pearson Education: UK. Combe, C. (2006). Introduction to E Business Management and strategy. Elsevier: UK. Read More