Digital Acquisition Plan - Assignment Example

Digital Acquisition Plan 1.0 Introduction The appraisal report focuses on the marketing strategy and a detailed digital acquisition plan for the launch of the car company Honshu - Lectrum. The selling of motor vehicles is a complex buying decision and requires several stages in the buying decision process. This analysis identifies methods of generating initial response through traditional and digital marketing activity and a contact strategy. The report is on planning traditional and digital marketing communications with attention to the costs, response rates, measurement, evaluation and scheduling of activities. The key areas covered in the report include: Appraisal of the media and understanding media strategies and most effective methods of reaching out to potential customers through the media Schedule to be used for image and awareness or in the aggressive marketing of the Honshu Lectrum across UK Advertising media would examine the advertisements that could help attract consumers and how these ads should be placed Reach of the target audience is also determined and the advertisements and marketing strategies are designed accordingly Budget and Schedule to achieve reach of the target audience would highlight costs, measurements and evaluation of activities Traditional and Digital Marketing Activity and Contact Strategy brings out the difference between traditional and digital marketing and the strategies that could help the company to contact potential customers Direct Response Activity helps creating a dialogue with consumers and drive businesses as also effective online and offline acquisition activity Summary of the budget for direct response and schedule of activity would be presented to show the methods of direct response and activities in accordance with business objectives Overall strategy and detailed digital acquisition plan is a review of the general marketing approach used and the role of the media in driving improved acquisition activities. 2.0 The Honshu Lectrum: Sales Prospects The sales perspective and customer target of Honshu Lectrum is as follows: Honshu are focusing their sales drive on three models targeted towards specific consumers - including the company’s Lectrum supermini aimed at independent drivers, the Lectrum City hatchback and the compact five door Lectrum Space aimed at families with young children. The launch of the new car is seen as being a major opportunity for Honshu to build its small market presence in the UK as it is characterised by unique design and concept. The company has previous results from a test campaign which have shown a 2% response to direct mail activity and sales prospects from direct mailing could be identified. Honshu will use its current telephone marketing bureau for all inbound and outbound telemarketing activity although the emphasis on telemarketing would only be secondary as it is mainly a traditional direct marketing activity. 3.0 Appraisal of the media The campaign should assure that Honshu’s social media initiative and appraisal would accurately and realistically align with the company marketing and sales strategies and business objectives. The appraisal should be based on industry research, data and proven best marketing and research practices that could provide effective acquisition directions. Appraisal would include strategic assessment, delivery of best practices directions and a unique action plan along with an extensive audit of target UK customers The design of social media marketing strategy and an image and awareness campaign could be scheduled in accordance with media focus. The best and most effective media strategies are identified and evaluated. 4.0 Schedule to be used for image and awareness Honshu uses a schedule as follows: At the beginning of January 2010 Honshu will launch its marketing campaign of the top-secret range of compact cars Lectrum The launch of the new models is in March 2010 and will need to make effective use of their existing UK customer database as well as acquiring new customers The performance and potential environmental benefits of the new Lectrum Lithium powered vehicles could be highlighted as major features during the entire campaign Although new car sales remained depressed in the UK throughout 2009, the economy is expected to strengthen by 2010 suggesting improvement in vehicle sales as well Driving of brand image of Honshu could be coupled with market expectations to raise awareness of the new product and its environmental and cost benefits TV, Magazine, Newspaper and Bill Boards will be the traditional marketing routes used although other alternative advertising media like the digital media, internet and use of social networking channels could be considered as well. The focus however is to first attain a contact strategy to get the required number of test drives Other details for a marketing activity schedule using various media channels have been given as follows: A web campaign for direct response will run from the first quarter till the end of 4th quarter and target consumers through websites – this is done through web adverts and online forums Magazine and billboard Campaign for awareness will run throughout the year – focusing on feature articles in automobile journals and prominent billboard advertising TV campaign for awareness will run for first 6 months and a TV campaign for direct response will start in the middle of 2nd quarter and will run through rest of the year – this could be a traditional yet a most effective marketing strategy A newspaper campaign for awareness and direct response will be divided into several slots throughout the year and this along with TV campaigns helps reaching a maximum number of target audience/consumers Direct mail used for direct response activity for existing costumers will run throughout the year. 5.0 Advertising media and reach of the target audience ITV, Channel 4 and Channel 5 have been chosen as traditional television advertising media due to the range of viewer ship through which the brand’s message could be delivered to people beyond the target market. Audiences of these channels mostly belong to the target market as well i.e. upmarket consumers with higher income. This could be effective if the target audience depend on traditional TV advertising which may not always be true considering the rapid growth of the digital and new media. Times, Guardian, Independent were the main news papers chosen because they have high circulation and mostly cater to upmarket and the main target audience. Among traditional media, non traditional approaches to marketing could well be effective but consumers reading upmarket magazines, especially mainstream rather than auto magazines could also be targeted so the reach of the print media could be widened and advertising could focus on possibilities of using smaller magazine ad spaces. Going beyond Top gear to embrace magazines such as Cosmopolitan, Psychologies and men’s magazines such as Maxim could also be effective. 6.0 Budget and Schedule to achieve reach of the target audience Awareness Budget – The Awareness Budget as given is divided into 4 mediums: TV adverts for 6 months will cost £1,328,000, Newspaper adverts for 6 months will cost £426,600 , Magazine 12 month contracts will cost £120,000, and Billboards will cost £117,600. The total cost of awareness campaign would be £1,992,000. This however overlooks digital media advertising although the Pay Per click adverts could be placed on major UK websites, and google ad words service will also be used for search engines along with direct adverts placed on popular sites such as yahoo and facebook. The cost estimate could reach well over £150,000 for digital advertising which would be added to the total budget. Direct Response Budget – The Direct Response Budget is divided into 7 media routes and have been provided in the budget as follows. Web campaign is expected to cost £125,000, Direct Mail will be £13,500, Email Lists will cost £1,800, TV campaign for 10.5 Months is suggested at £1,278,000, Call centre inbound calls for 60,000 calls is expected to be £300,000.Newspaper campaign for 10.5 months will cost £364,000, Promotion i.e. three Honshu Lectrum super mini will cost £39,066. The total cost of Direct Response campaign is at £2,122,000. Total Budget - The awareness budget has been projected as less than 2 million but direct response budget is above 2 million. Although adding digital campaigning and emphasizing on digital media rather than traditional media could stretch the budget of awareness campaign at above 2 million. The total budget of the campaign is estimated at £4,114,896 although this could have a maximum limit of £4,500,000. 4.5 million could be finally estimated as the entire cost of marketing and awareness campaign and would include overheads and miscellaneous costs. 7.0 Traditional and Digital Marketing Activity and Contact Strategy The difference between traditional and digital marketing and contact strategy could be focused not just on the methods used to reach out to a target audience and consumers but also the type of consumers that are reached. With traditional market activity and contact strategy through TV, newspapers, magazines, billboards the regular upmarket car buyers or professionals could be reached although many having shifted focus to digital media, the professionals and young first time buyers would be targeted through non traditional digital media. The marketing campaign will have to be structured accordingly. 8.0 Direct Response Activity Customers and even potential targeted customers could be contacted through direct mailing and brochures as proposed although use of surveys, questionnaires both online and offline and the web phenomenon could be effectively utilized as a marketing route. Inbound calls and email lists could also be counted as traditional and non traditional direct response activities to contact and get marketing feedback and responses from the target group of consumers. 9.0 Summary of the budget for direct response and schedule of activity The total budget for direct response has been suggested at above £2 million although with consistent web campaigning and email lists and telephone calls, both inbound and outbound, the costs could reach at £3 million. The schedule of activity would involved simultaneous use of web, TV, press media, email lists, digital media such as internet and social networking sites although the marketing activity and direct response activity could begin with traditional media and only later switch to new media. Use of questionnaires and surveys and direct mailing to existing customers who may want to acquire the new Lectrum would also be helpful in terms of attaining feedback on the benefits of the new model when compared with older models. Customers who have purchased cars in the last 3 years or have made online search for cars could be target audience for direct mailings, surveys and feedbacks and a comparative database could be obtained to understand customer orientation and possible auto preferences within a specific market segment. Thus along with all other contact strategies, the use of direct response to existing and potential customers should include some sort of market feedback. 10.0 Overall strategy and long term business plan The appraisal report is a step further from the summary report as it specifies the details of every element that could be used within the marketing plan and contact and acquisition strategy. The target is to reach a specified number of contacts and possibilities of test drives that would boost sales and highlight the brand’s image. Yet the appraisal report shows that certain aspects of digital marketing may have to be emphasized even further than what has been previously contended since digital media and new media and internet technology are rapidly becoming the most expanding route to reaching out to a wide range of upmarket, educated and professional audience, and the kind of target audience that would be suited for the marketing of Lectrum. A well informed audience would understand the benefits of using Lectrum as a ‘green’ alternative as also understand the effectiveness of the car in all other aspects and since it will be available in a few versions, the market segment could be pretty wide. The focus however is on the environmental advantages of using battery operated rather than petrol operated engines and this would mark a new direction towards new technological achievements in auto manufacturing highlighting the brand name and image of Honshu. Honshu could thus be seen as a contemporary, environmentally friendly and technologically superior automaker of the new millennium. Bibliography: Nash, Edward L.  2000.Direct marketing : strategy, planning, execution / Edward Nash. London : McGraw-Hill Parente, Donald. 2006. Advertising campaign strategy : a guide to marketing communication plans / Donald E. Parente. Mason, Ohio : Thomson/South-Western . Randall, Geoffrey2000 (2001). Branding : a practical guide to planning your strategy / Geoffrey Randall. London : Kogan Page Urban, Glen L. (Glen Lee) 1991. Advanced marketing strategy : phenomena, analysis, and decisions / Glen L. Urban, Steven H. Star. Prentice Hall Read More