Marketing Communication of the Gunners Agency and Cadbury - Case Study Example

MARKETING COMMUNICATION Table of Contents MARKETING COMMUNICATION 1 Table of Contents 1 INTRODUCTION 2 1.STRATEGIC DECISIONS 2 Target market 2 Market segmentation dimensions 3 Positioning 4 Setting objectives 5 2. CREATIVE STRATEGIES 5 Overview 5 Campaign theme 6 Proposed execution techniques 7 Justification of execution techniques 7 Brand 8 3. MARKETING COMMUNICATION TOOLS 8 Communication Tool Mix 8 Selection of Media 10 Resource allocation 10 Strategic integration 10 CONCLUSION 11 REFERENCES 12 INTRODUCTION The Gunners Agency has recently won a marketing contract with Cadbury.  Our team has since performed further extensive market research and has come up with a figure of marketing strategies which will help Cadbury to improve its brand awareness and to drive growth in the business. This report will deliver three sections including Strategic decisions, creative strategies and marketing communication tools.  The Strategic decisions section will further elaborate on the areas of target markets, market segmentation dimensions, positioning and objectives.  Creative strategies will include campaign theme and ideas, their execution techniques and how they integrate with the current brand’s positioning.  Lastly the marketing communication tools section will demonstrate how different marketing communication tools, resources and media can be used to strategically integrate and support the marketing campaign themes, and ultimately achieve the overall communication objectives. 1.STRATEGIC DECISIONS Target market There are three categories of consumers that will be targeted by this strategy. These are the primary, secondary and tertiary markets. The primary target market incorporates the youth between the age of 12 to 25 years. The secondary target market are children while the people aged 25 and above forms the tertiary target market The market is segmented based on consumers characteristics. The first target market is identified with youth who give out chocolates as gifts to impress their peers. This is a prime market. There is also the secondary market identified with the children who have great desires for chocolate. They love taking chocolate. Lastly there are the parents and adults aged above 25 years. This is the tertiary market. Parents who care about their children buy chocolate for them. Chocolate is loved by the old because it is known to be tasty and a good antioxidant. Market segmentation dimensions Market segmentation refers to a group of people with similar characteristics, this characteristic cause them to have similar needs and preferences for a given product (Cornelissen, 2001) . There is need to divide the market in to identifiable segments with target groups categorized based on their characteristics, needs and preferences. The specific segment will have a specific marketing plan that will ensure there is an effective and efficient communication strategy. Demographic Gunners Agency will adopt demographic market segmentation. This strategy will classify the target market based on measurable statistics like gender, income, education, age, marital status and religion.   This demographic information will be very vital because it gives guidance on the preference, nature and status of the target market. Research indicates that chocolate is consumed more by the youth particularly age between 12 and 25 years range. These youth give out chocolate as gifts to please their peers. (Schroder et al, 2011) Geographic Gunners Agency will adopt geographic market segmentation; this segmentation strategy will categorize the target market based on geographical location. Home addresses, city, region and state data shall be critical in effectively determining the geographical location of target consumers. Different consumers in different regions have varying needs and preferences that must be accurately specified (Kotler and Keller, 2009). Gunners Agency has categorized the target market based on based on urban, suburban and rural areas. The urban population has different needs and preferences compared to those in suburban and rural areas. Behavioral Market segmentation will also be done based on the consumer’s values and attitudes. This will look at the chocolate consumption patterns, price sensitivity and brand loyalty. There are consumers that eat chocolate on daily basis while others eat it periodically. Consumers with higher income tend to prefer high quality products irrespective of price whereas low income earners are sensitive on price and lees value is attached to quality. The consumer’s attitude determines how they will respond towards a given product (Kotler and Keller, 2009). Consumers can either respond positively or negatively on seeing the product for the first time. The measure of attitude is very important because the more favorable a brand is, the higher the chances of its purchase. Gunners Agency shall collect opinion towards the brand in order to determine the degree to which the consumers like or dislike the various Cadbury brands. Psychographic Our agency will segment the target market based on the psychographic segmentation strategy. This strategy categorizes target market based on the socioeconomic class, personality and lifestyle preferences. Cadbury marketing strategy should look at both the affluent highly educated group at the top and the unskilled an uneducated category at the bottom. This psychographic strategy will enable our agency market the right brands to the right category hence eliminate wastage on message delivery to wrong target market. Positioning The most important business decision that should be made accurately is when and how to introduce a brand to the market. Through positioning, marketers strive to claim the most attractive position in the clients mind. Positioning and brand building is a long-term process that requires consistency and organizational commitment. The overall benefit of positioning is broad establishment of preference which eventually impact market share, increase profitability and overall business stability. Positioning statement tells what is sold, to whom it is sold and why the target audience should buy it (Schultz, 2003). The positioning statement for Cadbury among the youth will be illustrated by our team as:- “The most celebrated chocolate ideal for the youth and is worth the price” Setting objectives The development of creative strategy is guided by the business goals and organizational objectives. It therefore starts with assessment of marketing situation and the communication objective especially what to be communicated to the target audience. Every marketing communication strategy must be paged on the communication objective (Schultz, 2003). There is need to articulate the desired outcomes in reference to the goals and objectives. These components play a critical role in enabling mangers make decisions that go in line with business strategic plans. According to Yeshin, (1998), there must be a feedback mechanism between all the elements of the communication strategy and the development inputs of the communication strategy must be chosen in a way that fulfils the promotional objectives established for the campaign. The main objective of the business is to create awareness of youth in Australia within three months, specifically to increase their understanding on the benefits of chocolate, the available brands, flavors and colors. Gunners Agency strives to effectively penetrate the Australian market by creating awareness and building brand preference by 40%. Our agency shall adopt strong social networking campaigns with proper evaluation and assessment of online tools used to ensure all the target audience are captured and information presented effectively. Gunners Agency currently has a strong relationship with Online Editors and Bloggers. This shall be used to boost internet marketing and broad circulation of brand information across various social networks. 2. CREATIVE STRATEGIES Overview Creative strategy is an organizational planed strategic approach taken to develop and implement activities that leads to company growth and development. Marketing communication greatly develops brand awareness as well as retain customer base by cementing the relationship between the customers and the business. Brand information that is well presented is translated by the customer as the brand’s attributes and overall market position. Our agency will adopt three marketing strategies in order to effectively market Cadbury brand to the target market. These are social media strategy, community services strategy and digital strategy. Creativity in marketing communication is very interesting. According to Cornelissen (2001), the success of marketing campaign is greatly dependent on the creative strategy used in marketing communication message. Creativity is the quality possessed by a person that enables them generates original and appropriate approaches of solving real world communication problems (Cornelissen, 2001). The creative idea is appropriate if it is actually relevant to the target audience. Our agency has conducted research; looked in to the strategy statements, creative briefs and communication objectives in order to convert them in to marketing communication message. The creative strategy was developed in the present of our agency staff as well as having inputs through research and survey results from the target audience representatives. Marketing communication strategies such as print, e-mail, broadcast media and online have three major objectives. These are to create brand awareness, persuade target audience to use the brand and to constantly remind them on the product through various marketing channels. Sponsorship is one of the key strategies our agency will use to increase brand sales and retain customers. The strategy combines increases brand awareness, build loyalty, differentiate brand from other market competitors as well as building a long-term association with the target audience. Objective here provides the link between the major selling idea and the target market. The campaign theme will communicate the selling idea to the target audience as well as providing a common cord that will run through all the marketing communication tools. Campaign theme To ensure the theme communicates the selling idea, our agency will make use of the central theme which is the core selling idea. The central theme shall be: - “Cadbury! The market leader that sets ideal standards.” To ensure there is a common thread running across all marketing communication tools, our agency will ensure the theme focuses on product quality and overall benefits so that the message reaching the consumer is not only complete but also consistent. All the marketing communication tools will give the same message. The message will have all the elements of marketing mix like advertising, personal selling, public relations and sales promotion so that at any point of contact with the consumer, the Cadbury’s quality and overall benefit is communicated. Our agency will also make use of imagery and color. The chocolate’s color and packaging will be done strategically to send a message to the consumer that this is the best product for them. According to Kotler and Keller (2009), to reinforce the prestigious brand image, there is need for a proper choice of well formulated Integrated Marketing Communications platform. The use of customer testimonials and customer goodwill are other strategies that will be used by our agency to illustrate the brand image. Proposed execution techniques The straight sale execution strategy will also be adopted. Here the brand will be clearly described in terms of its benefits, general information and main attributes. Comparison will also be adopted where the brand will be compared with other brand competing in the market and how the brand supersedes them. Marketing communication message need to be conveyed effectively and efficiently. The color, logos and taglines must clearly come out. According to Kotler and Armstrong (2008), conflicting messages from a wide range of media mix and communication approaches creates confusion in the consumer's mind about the company's image, brand positions, and customer relationships. Our agency will pay attention to this to avoid consumer confusion. Justification of execution techniques The following is the justification on the appropriateness of the proposed execution technique on the target market and campaign theme. First, our agency has found out that there is a decline of revenue since 2013 whereby according to the published financial reports, revenue dropped by more than 100 millions in 3 years. This calls for an effective and efficient marketing strategy that is not only cost effective but also easy to implement. This will be achieved by the execution technique on the target market and campaign theme. Once the implementation of the proposed execution technique is complete, we are confident that the business will rejuvenate and increase revenue by increasing market share. Campaign theme is very important because it will ensure the consumer is besieged by sales message the whole day; constantly being reminded of Cadbury’s quality and overall benefits. Brand Cadbury is one of the most popular products consumed all over the world. The brand Cadbury has been around since 1919 and it’s a well-known household brand in Australia. The product has various varieties ranging from the dark chocolate, milk chocolate and white chocolate. The strategies highlighted above will greatly help in communicating Cadburys brands and their benefits as well as reinforce brand position. This will be strategically done by wrapping all the benefits around the campaign them and consistently presenting it through various marketing communication tools. 3. MARKETING COMMUNICATION TOOLS Marketing communication tools are used by organizations to introduce and even strengthen their brands or products in the market. (Percy, 2008). This may be a long term effort but it will eventually position the business products in the minds of the large customer base. Communication Tool Mix According to the research conducted, it was found out that the communications tools used by Cadbury for marketing communication are catalogues, T.V, advertisements and magazines. These are reliable marketing communication tools however; these tools do not reach all the target audience especially the primary consumers. There is need for additional tools to strengthen the brand in the market. Our agency will introduce a few other marketing communication tools in order to increase consumer engagement hence improve the brand loyalty. These are:- Social Media Social Media marketing strategy is one of the most effective and efficient strategy since it directly engage the consumers, take their views and give immediate feedback. Our agency recommends the implementation of various campaigns run on the social media sites like Facebook, Twitter and Instagram. Campaigns on the social media will capture the youth who are majorly present in the social media platform. The youth in this case are the primary target market. Email campaigns through leads Our agency recommends the use of direct mail to potential consumers like students in schools and colleges. This will be strategically done in order to generate leads through some form of offer. The leads will direct the potential consumer to the Cadbury site with all Cadbury brands and general information. Smart Communications Smart Communications is also one of the communication tools to be adopted. Smart Communications solution is designed to integrate the sales information and information technology infrastructure in order to give real time information to customers. The message given by smart communication solution is accurate, relevant and personalized. Mobile apps According to the recent survey, over two thirds of Australians own a smart phone. Mobile apps are becoming increasingly popular. As part of this digital strategy, we can introduce a brand new Cadbury mobile app that can allow users view Cadbury products catalogue, find where to buy products and post views on existing products. This strategy will enable Cadbury reach as many youth and adults as possible hence delivering the message effectively and at a lower cost. The app is also interactive and many curious youth will be able to get answers on their queries as well as giving their choice and preference on the products. This kind of feedback will eventually promote product awareness. Selection of Media Cadbury can make use of social media in order to convene information to the target audience especially on product new flavors, new improvements, change on price and introduction to new market. This is because there is a rapid change in the digital landscape; the things that are valued today may be valueless tomorrow. Our agency will work with techno savvy team, a team that understands what is going on around the digital platform all the marketing sites shall be updated real time. Resource allocation Marketing resource allocation decision will be very complex due to the increased number of marketing communication tools adopted to reach the target audience. According to Mantrala, (2002), organizations need prudent decision making while allocating marketing resource. There is need for state-of-the-art analytics that will be used to show the different market trends in order to correctly allocate resources. Gunners Agency recommends the use of the Classic Goodwill Accumulation Model. This is the most parsimonious model (Nerlove and Arrow, 1962). According to Nerlove and Arrow (1962) this model’s basic idea is that resource allocation increase when the marketing activities and decays exponentially when marketing activities are no more. Strategic integration The identified marketing communication tools will be strategically integrated in order to support campaign theme and achieve the overall communication objective. Communication channels and media will be aligned with business objectives. Integrated Marketing Communication that is well implemented enables the company to achieve efficiency by synergy (Cornelissen, 2001). It involves merging communication functions within the organization in order to achieve centralized communication where various communication channels and media give similar message in one voice. Integrated marketing communication with the right communication tools will also capture more market segments and eventually increase company revenue. Advertising is one of the main marketing communication tool for awareness creation on products and brands. Our agency recommends the use of advertising in order to effectively build the brand image and new product introduction to new market. The benefit of mobile app digital strategy is to increase the Cadbury brand and market awareness. This mobile app will particularly be useful to increase the children and teenagers market segment. CONCLUSION The main objective of marketing communication is to create a sustainable market demand, maintain customers brand preference and shorten the sales cycles. We really think we can help to take Cadbury to the next level. We will help to reach the target markets and help Cadbury to capture more market shares by using the various marketing communication strategies highlighted. Through extensive research, our agency has identified three major categories of customers and clearly classified them as primary, secondary and tertiary target audience. The youth form the primary target market, the children form the secondary target market while the adults form the tertiary target market. Due to their high presence in the social media, the youth will be effectively reached through social media. Our agency recommends that a consistent campaign theme be run on various social media sites like Facebook, Twitter and Instagram in order to reach the primary market and correctly deliver the message. Comparison and straight sale execution techniques will be adopted in order to achieve effective marketing communication for Cadbury brands. Various marketing communication tools will be combined and correctly implemented in order to capture more market segments and increase company revenues. The marketing communication tools that will be adopted include newsletters, catalogues, webinars, mobile apps, advertising, social networks and use of smart communication solutions REFERENCES Cornelissen, J.P. (2001), “Integrated Marketing Communications and the language of Marketing Development”. International Journal of Advertising, Vol. 20, No. 4, pp. 483-498. Harris, Thomas L. (1998) Value-Added Public Relations: The Secret Weapon in Integrated Marketing. Chicago: NTC Books. Kirsten, V. and Newstead, K. 2016. Opinion: Will Cadbury Australia's new social media strategy bring them joy? - AdNews. [Online] Adnews.com.au. Available at: http://www.adnews.com.au/opinion/opinion-will-cadbury-s-new-media-strategy-bring-it-joy [Accessed 10 Mar. 2016]. Kotler,P., Keller,K.L.,et.al. (2009), “Marketing Management: A South Asian Perspective”,13 th ed.,Prentice Hall/Pearson,New Delhi, India. Mantrala, Murali K. (2002),“Allocating Marketing Resources,” in Handbook of Marketing, Barton A. Weitz and Robin Wensley, eds. Thousand Oaks, CA: Sage Publications Nerlove, Marie and Kenneth J. Arrow (1962),“ Optimal Advertising Policy under Dynamic Conditions,”Economica, 29, 114, 129–42. Pickton, D. and Broderick, A. 2003. Integrated Marketing Communications. London: Pitman Publishing. Schroder, Theresa; Vanhanen, Leo; Savage, Geoffrey P. (2011). "Oxalate content in commercially produced cocoa and dark chocolate". Journal of Food Composition and Analysis 24 (7): 916. Schultz,D.E. (2003), “The Next Generation of Integrated Marketing Communication”, Interactive Maketing, Vol. 4, No. 4, pp. 318-319. Shimp, T.A. 1997 Advertising, Promotion and Integrated Aspects of Marketing Communications. Florida and Texas: Dryden Press. Read More