Tuesday, November 26, 2019
Marketing Communication
Marketing Communication Introduction Marketing communication entails pushing products and services to customers and the customersââ¬â¢ response towards these products and services. It involves many elements such as advertising, publicity, sales promotion, and direct marketing. Marketing communication appears mostly in form of promotions and advertisement.Advertising We will write a custom coursework sample on Marketing Communication specifically for you for only $16.05 $11/page Learn More At times the process of communication may be complex but if all the models used are cooperative then it becomes an easy process. The models used in marketing communication are the sender, the medium, the message, receivers and sometimes feedback (Yeshin 127). Effective marketing communication is necessary in all business. One advantage of communication is that it assists a company in achieving its sales target. Communication provides information which tells a consumer that there is a new produc t in the market. Without communication a customer can not be assumed to know the availability of certain product in the market. In todayââ¬â¢s market there are so many products most of them being substitute and therefore it is the work of every company to make sure that proper communication channels are used to inform the user about a new brand in the market. From the view of the Marketing Communications Director of the new Brand Poppy which will be launching a new beer brand called bull cane this report will aim to assess the beer market and identify the communication strategies of two major competitors for Poppy. It will produce a marketing communications plan for the launch of the new brand and consider the factors involved in launching the brand internationally Market Analysis Over the years, the beer industry has been undergoing a substantial change. This has been as a result of the increase in competition globally and the change toward global supply sequence. The end users play a major role in terms of selection of suppliers and in decision making of products which is changing from being operational to being strategic. The increased number of producers resulting from emergence of new entrants in the market has led to increased competition. Consumers have become choosy due to the increase in the number of product options in the market (Hines Bruce 2007).Advertising Looking for coursework on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More They now desire for an exciting shopping in innovative stores. This has led to increased operation cost on the side of producers trying to match up with the customer need. It is the work of the operation management to utilize the scarce resource and maximize returns. In striking for the right opportunities, Poppy will have to analyze its main market rival as this is the major threat it has to face. The strategies being employed by the competitor s hould be critically assessed and evaluated for necessary counter action. In addition, the general plan of the competitor in a bid to control the market is a vital toolkit which this company can use to estimate the competitive edge of the market. Similarly, the product being offered to the market at lower price should be investigated to determine its type and nature. Why, for instance, is the company lowering the price of this commodity? Do they have access to cheaper raw materials or is it that quality of the product has been compromised and can be offered at a lower price than normal market value? Finally on opportunities, the marketing department will have to investigate the companyââ¬â¢s managerial structure both current and in the past and give a detailed finding as well as possible conclusions on the same. The market place can be analyzed further by use of a PESTEL analysis (see appendix 1). P.E.S.T.L.E. analysis is a management tool that assists in making informed decision about the influence that the company is going to get from the outside environments as the technology and other variables change. Its analysis is applicable in start-ups and ongoing business. The beer industry in Australia is highly competitive. Introducing a new brand into the market can be difficult due to the number of well known brands which are already in existence. It is therefore important for Poppy to analyze its major competitors by looking at their communication strategies, Poppyââ¬â¢s two major competitors are Coopers Pale Ale and Coopers Sparkling Ale.Advertising We will write a custom coursework sample on Marketing Communication specifically for you for only $16.05 $11/page Learn More Coopers pale Ale is brewed in South Australia and itââ¬â¢s known for its cloudy appearance. It is produced from fruity characters and it has a fresh crisp bitterness ideal for any type of occasion. Similarly, Coopers Sparkling Ale has cloudy sediment and is p roduced from fruity, and malt characters (Anon 1). Communication Strategies Global marketing strategies call for developing strategies to develop and build brand image and loyalty among customers. This includes developing the positioning strategies as compared to competitors worldwide. Branding and positioning strategies must fit the product and the company across multiple countries. Because Poppyââ¬â¢s primary customer base is global customers, advertising campaigns must be similar. Before choosing a business strategy, one has to evaluate different options and only chose the best (Earl 54). There are many different strategies that can be used in a business but all of them do not give equal results. It is upon the management to make a choice in which is the best taking into account the business operations and the needs of the market. Market Segmentation A customer is the backbone of a company; the main decision that a marketing manager should make is on a companyââ¬â¢s market segment. A market segment is a homogenous subset of the main market, which share similar characteristics, which make it demand similar goods. A segment is also stimulated by similar innovations. After developing a marketing segment the next step is to develop mechanisms that will enable one to sell in the target market. Market segmentation will help the company in meeting its needs through a marketing mix. It will also help in reducing costs as money for advertising and promotion is concentrated on the correct segment. For both Coopers Pale Ale and Coopers Sparkling Ale segmentation on age takes place by focusing on the adults aged between 20 and 26 years. Both markets for the competitors are also segmented by consumer purchasing behaviour for instance whether the products are consumed every day or during occasions (Anon 2). Consumption during occasions can be seasonal for example if there is an increase in purchases during Christmas or other public holidays this would be a good tim e to target this segment.Advertising Looking for coursework on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More These competitors have also taken into consideration income distribution within the country and have identified areas where consumers have high disposable income and are also willing to spend on beers. Target Marketing targeting is a vital element in developing the marketing strategies since it helps in evaluation of segments in order to decide which market to target. Coopers Sparkling Ale target market is more towards the 30-45 age brackets with a high disposable income or real appreciation of real ales. These are people who enjoy the Premium ale and are prepared to pay a higher than average price to enjoy it. They take pleasure in the fact this ale does not have additives or preservatives. Although Coopers pale ale captures the same age brackets as Sparkling Ale, this product also has the propensity to be more well-liked within the 18-30 year old bracket, and also women (owing to its sweet flavour). The Pale drinker takes pleasure in taking new things, is happy to try out, and get s pleasure from spending time with friends. Positioning Positioning is the choice of a target market and how to reach this market segment after market targeting; the next step in developing the marketing strategy is to create a positioning strategy for the product. Both products are luxury Brands with well known brand names, the products are similar in how they are positioned also, both of high price and high value. Promotions take the form of On Off pricing strategies, value add products (giveaways) to consumers, trade discounts and the like. Coopers have a range of agencies that they use to make their marketing and advertising strategies come to life. KWP! Is the advertising agency that creates new advertising material, researches the target markets, books in all of the media (cinema, TV, radio, print, magazines). This is evaluated annually and all mediums, costing and individual publications are looked into and reviewed. Other agencies such as On Creative and Show pony cater for coopers packaging designs, branding elements, point of sale, and design of logos, re-branding and the like. Marketing Communication Plan Conceptual analysis The plan aims to bring together all the elements involved into a process which puts activities into a sequence of decisions which need to be made. Poppy will use a focused target marketing strategy, which develops a single marketing mix aimed at one target market. Although the product may be used by different ages, the target group will be aged 20-26 this is because this age group likes experimenting new products and it takes pleasure in hanging out with friends especially during occasions. Lifestyle is a very significant way of segmentation as it reflects a consumerââ¬â¢s interests, opinions and activities (Jobber 285). Poppyââ¬â¢s target market will be males who take pride in themselves and enjoy spending time with their friends.. They will be men with high disposable incomes as not every one can afford to spend on beer s. It is important to create a high level of awareness during the product launch in order to be competitive among the well known brands within the market. Financial constraints involve the costs involved in research and development, also the high level of advertising used by competitors may create a challenge to keep up with especially as the new brand Poppy is not yet established in the beer market. Marketing Communication Objectives The new brand is in the introduction stage of its life cycle and there is need to create awareness among the target consumers. To attain this noble general objective, the company aims at analyzing the market, and segmenting the market into smaller units. From its positioning statement, the company aims at creating a human-technological interface where it approaches its strategies from a psychological angle. It poses to give solutions to people and by so doing it is able to market its product effectively. Market leadership Poppy aims to be Australian la rgest beer manufacturer. To attain this, it has to improve its bull cane with the needs of customers. It has a research department which advises the company on the kind of products it manufactures for better customer satisfaction. Marketing Communication Strategies Marketing mix An effective marketing mix ensures that goods are available to the target customer, when they need them and at an affordable price. In Australia before Poppy decides on how to reach the target market, the first point is to collect adequate market data and analyze the data. The company uses business intelligence tools to collect a wide range of data essential for its operations. The data is interpolated in terms of age, sex, region, education, income, and lifestyle. Its research centres offer great assistance in ensuring that all is set in terms of data available for decision making Pricing strategy The price of a commodity is an element of total cost plus a profit margin. When a target market has been establ ished, there is need to determine the price that the target customer will afford comfortably. A marketer should be aware of the consumer treads and their potential. The social class that the product is targeted will influence the price of the products (Reid, 20). The price parameter can be approached from the actual product price or the possibility that the product can be divided into smaller parts, not necessarily cheap, but the need for this is to enhance affordability Promotion Poppy will use different modes of promotion such as newspaper, TV, and internet to launch its products in the new market. Poppy will use the push, pull, and profile strategies to introduce bull cane to the target market. The push strategy aims at using the available channels of distribution to its maximum trying to push the product in the market. Push strategy requires the offer of discounts in order to motivate the promoting channel. It aims at launching new products into the market. By offering discounts to wholesalers and distributors it means that the retailers will also get a discount from the wholesalers who in return sell poppy new product, bull cane, at reduced cost to the target consumers. These discounts are offered for a short period of time which means that wholesalers will purchase in large quantities in order to enjoy the discount and this flows to the end users. Once the end users become used to certain products they will not be able to restrain themselves from using them even when the offer of discount is over (see appendix two for an example of a push strategy that can be used by Poppy). In pull strategy, there is direct contact with the user of the product. The use of channels of distribution is minimized and more emphasis is put on advertisement. The major objective of the pull strategy is to ââ¬Ëpullââ¬â¢ the forecast on distribution channels forcing a demand to them which they cannot ignore (see appendix three for example of a pull strategy). The use of the profile strategy aims at giving an overview of the business activities. By use of the profile strategy the company realizes that it has a social responsibility to the public and all the stakeholders (the shareholders, the customer, staffs, society, government, etc). The company aims at ensuring that all stakeholders are satisfied (Moschis 12). Shareholders are the owners of the company and it is the obligation of the management to make sure that the shareholders get returns that is in proportion to their share in the company. The company will not be able to guarantee shareholders returns if it does not engage in effective information communication. Through communication, the companiesââ¬â¢ sale revenue increases leading to increased profits and thus shareholders returns. It is the duty of the company to ensure that the end users get products of good quality and to provide employees with good working conditions and this can only be possible through communication (Peter 20) (appen dix four shows a profile strategy that can be used by Poppy). Poppy will also use Magazines to advertise, using magazines allows more information to be communicated as the consumer will spend more time browsing. By using magazines it will enable Poppy to target their audience more closely. The particular Australian magazines which will be used are Heat Magazine because it is well known and highly advertised because it targets the same target audience as Poppy beer, both will feature double sided adverts. If this method proves to be a success for Poppy then more magazines will be used to raise awareness. Poppy will also use the internet to advertise this new product since the target audiences are young people who use the internet on a daily service. The most appropriate company to use is the Google which is used by more than 50% of all internet users. Public Relation Strategy In discussing the Public Relations (PR) Strategy as it relates to companyââ¬â¢s BCP, Good earth coffee wil l have to mitigate any damages during a PR crisis. They must first make a note of, and understand the potential threats that give rise to a PR Crisis. All types of discrimination practices, which do not follow the Standard Operating Procedures and ignoring the quarterly testing the viability of the Business Continuation Plan (BCP), will eventually lead to a PR Crisis. The standards operating procedures include the use of the highest ethical and moral standards while manufacturing their product and selling it to the customer in Australia. If crisis expectation is to remain a documented function for PR, ignorance of law cannot be used as a good excuse. Today the world is changing into a global village where more and more companies are trading with each other internationally. Australian population is also in the rise; according to Australian bureau of Statistics, Australian population stands at 22,431,468. The population is mostly concentrated of the young; these are people who are bel ow the age of fifty years (United Nation 2). Resources and Scheduling To provide some central control, but allow specialization as required to penetrate the market, Poppy will assign product managers. The product managers are the trouble shooters to resolve production, supply chain, quality, and efficiency. They have the authority to work across all operating companies to achieve goals. To meet the special needs of its target consumers, Poppy will hire, and assign global account managers based on industry. The global account manager will serve as the single point of contact for the client. Industries to target would be consumer sales companies for drinks and food products. Appendix five shows the report structures. The blue line reporting of product managers to the vice president of marketing means theyââ¬â¢re to coordinate with marketing personnel for brand and company image but remain primarily operations focused. The green line between global account managers and product manag ers is to show both are expected to communicate with each other regarding customer needs and expectations. The chart in appendix six is the Gantt chart and Work Breakdown Structure describing specific activities required for full implementation of poppyââ¬â¢s strategy in Australia. Each task takes into consideration factors such as objectives, resource allocation, deadlines, milestones, and the department responsible for its execution. Budgetary Requirements Implementation Appendix seven shows the factors that should be considered in the implementation process Evaluation and Control According to Brannan (5), strategic management involves formulating and implementing strategies that enable the organization to reach its objectives. Therefore it is important that an organization measures its success in the formulation and implementation of its strategy and this is called strategy evaluation.. The factors that are likely to have an impact on reaching these goals are the size of the organization, management styles, complexity of the environment, nature of the production processes, nature of the problem and the purpose and planning system, Strategy evaluation is important to ensure these factors do not hinder the achievement of strategic goals and evaluation should be followed by continuous improvement. Evaluation is a continuous process, which should be included in each stage of communication plant Feedback Once feedback is received the planning process comes to an end, feedback should be received at the end regarding the overall launch success of the product both internally and externally but it is also important to gather feedback during the process to pick up on activities which were particularly successful and those that could be improved. Conclusion To meet customer needs more closely Poppy will target males aged 20- 26 who have a relatively high disposable income to spend on luxuries drinks. The launch aims to inform and differentiate by raising awareness of the product and encouraging trial among the target audience. Poppy is positioned as high priced and high value and sits between its two major competitors on the perceptual map. Poppy will generate brand awareness through mass advertising and celebrity endorsements which will be increased over public holidays. Appendix. PESTEL Analysis Political free and fair government which promotes equality Fair Trade Practices Consumer Protection taxation policies Economic Factors affecting the GDP- for instance employment, inflation, and government spending More disposable income Seasonality issues Developed economy Socio-cultural Lifestyle trends and consumer preferences Demographic changes Increased consumer spending Multi-cultural society Technological Innovation capacity Improved infrastructure The forces described above helps in the determining the market growth (or decline) of Poppy and the implication of its strategic business unit. If an economic recession occurs, the economi c forces would have a considerable bearing on the future market strategies through ripple effects on the political and socio-cultural factors. Political factors put a restriction on the development of the industry by putting tough taxes and regulation requirements. Australia has been experiencing low tariffs barriers which have led to an expansion in the international trade thereby resulting in increased demand for food products. Australiaââ¬â¢s economic growth potential is facilitated by its demographic advantage and could therefore open up opportunities for industry development. Although the economy has been doing well and the future is promising, Poppy has to overcome some obstacles before it realizes its full potential. First there is the government requirement which it has to adhere to before being allowed to operate, increased capital costs, requirement of skilled labour force, and rivalry from other firms. To add to these risks, the product is not guaranteed of a ready mar ket in the new market making it a risky undertaking. Anon. ââ¬Å"Coopers brewery history.â⬠Coopers, Web. Brannan, Tom. A practical guide to integrated marketing communicationsà marketing in action series. London: Kogan Page Publishers, 1995. Print. Earl, Peter. Management, Marketing and the Competitive Process. Williston: American International Distribution Corporation, 1996. Print. Jobber, David. Principles Practice of Marketing (5th ed) London: McGraw Hill, 2007. Moschis P. George. Marketing Strategies For The Mature Market. New York: Greenwood Publishing Group, 1994. Print. Oster, Sharon M. Modern Competitive Analysis. New York: Oxford University, 1994. Print. Peter, Dââ¬â¢sena. Marketing Management and Strategy. London: Post Telecom Press, 2006. Print. Reid A. David and Plank E. Richard. Fundamentals of Business Marketing Research. New York: Best Business Book, 2004. Print. United Nations. ââ¬Å"Australian Bureau of Statistics, 1998.â⬠Australian Bureau of S tatistics, Web. Yeshin, Tony. Integrated marketing communications: the holistic approach The Chartered Institute of Marketing/Butterworth-Heinemann marketing series. London: Butterworth-Heinemann, 1998. Print. Marketing Communication Introduction Scholars have different definitions for marketing communication. A careful consideration of various definitions reveals the common elements such as the activities, processes, and/or efforts that a company makes in order to provide the information of their products and services to the target audience.Advertising We will write a custom report sample on Marketing Communication specifically for you for only $16.05 $11/page Learn More Marketing communication involves the use of the tools for presenting a wide range of information about a product or service created by an organization to the target consumers using advertising tools such as brochures, mailshots, websites, exhibitions, press public campaigns, sales promotions, personal selling, the word-of-mouth, public relations, and direct marketing, to name just a few. Some marketing communication devices presuppose the use of different channels as the means to convey the intended message to the targe t audience. These tools include the television, radio, print media, the Internet, and social networks. This paper reviews the recent marketing communication tools used by the Aldi stores in the United Kingdom. Background Information Marketing communication performs a variety of functions including product positioning, brand creation, and shortening the sales cycle by supporting the distribution channels to complement the customerââ¬â¢s decision-making process. Businesses use these tools constructively to induce the target actions of the audience that can include developing the brand loyalty, preference, new knowledge, and/or benefit for the product. Different marketing communication strategies are utilised to achieve such objectives; these strategies can be either implemented isolated from each other or incorporated into a single methodology for enhancing the popularity of the product. Since the 1990s, the integrated marketing communications strategies have been implemented with the prioritising of the customerââ¬â¢s needs as a starting point in designing seamless communication mechanisms in mind (Vanov 2012). Marketing communication is an integral part of the marketing mix falling within the promotion trends, intends to inform (brand awareness), persuasion (communicating a fulfilling need for the product, service, or organisation), and induction of action to the target audience.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More To achieve the abovementioned marketing communication goals, the business must conduct an in-depth research on the costs involved (Vanov 2012). It should also enhance product awareness, beliefs, perceptions, and behaviour of the target audience (Duhan Singh 2013). Marketing Communication utilised by the ALDI Stores in the UK The Aldi Stores is a leading grocery supermarket in the UK; hence, it is a prime example of marketing co mmunication goals set properly and attained in a timely and efficient manner. The group has passed the key evolutionary stages in its marketing campaign since its inception. Its marketing dynamics catapulted with the adoption of the latest technological advancement, the company has made an efficient use of IT related marketing tools. As a result, the company has changed its approaches so that they could meet the needs of all target audiences that the firm reaches out to. In the UK, marketing communication, especially in advertising, is a common practice (Uzunoßlu Misci Kip 2014). A recent report indicates that digital spending on advertisement now accounts for approximately 51% of in the UK. According to the Ofcomââ¬â¢s Communications 2013 Market Report, businesses have tapped the potential platforms created by the increment of smartphones and tablets in the UK families. At the time when the report was released, ownership of such devices increased from 11% to 24% (RakiÃâ¡ RakiÃâ¡ 2014; Duhan Singh 2013). This figure represents nearly a double increment for handheld device use and ownership. Businesses have calculated the marketing communication potential of such devices owing to the widespread ownership of businesses in the contemporary world. This report reviews the marketing communication strategies used by the Aldi Stores in order to carry out an analysis of their effectiveness. Various recommendations on the best way, in which the organisation can effectively use this function in the nearest future, are also highlighted. The bottom line of Aldi Storesââ¬â¢ robust marketing communication techniques is to let every customer get the products of the best quality possible, i.e., fresh fruits, vegetables, meat, and electronics among other products at affordable prices. The organisation uses specific marketing communication tools such as the AIDA model to achieve this goal (Duhan Singh 2013)Advertising We will write a custom report sample on Marketing Communication specifically for you for only $16.05 $11/page Learn More The aim of the AIDA Model is to sensitise the consumers to the products and services of the company. This strategy seeks to induce the desire for the products thereby encouraging the customers to take the necessary action to purchase the goods. Guided by the AIDA model, the Aldi Stores has several communication tools and channels discussed below. Above-the-Line Promotion Television Ads In an attempt to increase its market share, the company has geared its promotional activity towards the use of vigorous marketing communication campaigns in order to make the customers acknowledge the quality of its products through providing outstanding services and informative messages (Kellezi 2014). The above-the-line promotions are aimed at reaching many consumers using the methods such as the television, journals, and the press among others. Although the specified tools are rather tricky when u sed for attracting the target audience, the Aldi Stores is likely to succeed in its endeavours, as it uses the Like Brands Campaign (LBC) that features around twenty television advertisements designed to promote different products. The technique involves using a side-by-side association of a famous brand and the Aldi Stores brand product. The motto used by the stores is ââ¬ËLike Brands-Only Cheaperââ¬â¢ to let the customers consider getting the same quality for less expenditure. This marketing communication tool has worked effectively for the Aldi Stores to a point where the customers have developed a strong emotional attachment to the brand. In addition, the advertisements convey humorous messages that help building trust and emotional connection with the consumers (Kellezi 2014). Printed Leaflets The marketing team acknowledges the power of spreading information as a means of enhancing the brands promotion campaign (Tewari Misra 2015). The target audience is assisted to kno w the availability of products offering the same value and of similar quality yet for a lower price at Aldi Stores than in other outlets providing similar products.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This information serves a twofold purpose that includes allowing the customer to save some amount of money and the company to establishing brand loyalty in the stores. The fundamental effects of the strategy in question is that customers who are new to the stores wish to see if the information contained in the leaflets are truthful or misleading. After the new customers are convinced that the leaflet information is accurate, an unshakable customer trust and loyalty is built (Tewari Misra 2015). People have a tendency of believing in businesses that help them save money by offering them cheaper goods. This idea has propelled the Aldi Stores towards unmatched success and perpetuated its reputation as the company that cares about its clients. In Store Posters and Newspapers In-store media is an important marketing communication tool that influences decisions at the point of sale. The in-store environment has considerably been shown as a vital for marketers to manage as it can induce u nplanned purchases. A recent study reveals that retailers have increasingly become aware of the significance of in-store advertising. Notable examples include the use of videos at the location of different products within the stores that communicate to the customers thereby stimulating the need to buy them. Aldi uses in-store posters to help in stressing the significance of the swap and save phenomenon. Customers shopping inside Aldi are challenged to try swapping at the point of purchase. The effectiveness of in-store marketing communication has been contributing to the sales volumes of many supermarkets where individuals make impulse-buying decisions (TomÃ
¡e Snoj 2014). Other in-store communications include displays and packaging. To extend the Like Brands campaign, the Aldi Company makes use of newspaper advertisements to reach masses nationwide. This channel helps the group to display various categories of the high quality products available at its stores. In addition, newspa pers communicate the ââ¬Ëswap-and-saveââ¬â¢ message through letting customers compare the amount that they are capable of saving if they swap at Aldi Stores. This strategic message provokes customers to try swapping; in the process, an added sale is recorded. Seeing that the specified model allows for a more efficient allocation of financial resources for most customers, the latter will definitely continue swapping to continue saving (TomÃ
¡e Snoj 2014). Below-the-line Promotions These promotional methods aim at engaging customers into following specific buyer behavioural patterns through specific audience targeting. These methods provide businesses with a high degree of control of communication tools in order to affect the target audience. Public Relations Public relations are a marketing communication tool that serves an important role in marketing. On realisation of this fact, Aldi Store has used it to demonstrate the high quality of its products through its party endorse ments. The store has placed more than 1000 of its products in numerous awards with the aim of attracting wider public attention (Young Merritt 2013). This platform has earned the firmââ¬â¢s various awards. For example, in 2012, Aldi Store emerged as the best supermarket in the region. It has also secured the Pisza and Grocery awards among others. Moreover, Aldi products have been publicly endorsed via TV channels as being of high quality and the best reward for peopleââ¬â¢s money. Through hard work and innovation, Aldi has gained a substantial media coverage by high profile media reporters. This widespread public relations activity performs an extended function of exposing the public to the organizationââ¬â¢s brand and products, which, in its turn, facilitates commanding unshakable loyalty from customers. Effective PR and media relations have been empirically shown to create adequate press coverage and brand recognition (Lund Marinova 2014). The seasonal messages includin g swap-and-save were conveyed during numerous media coverage that serves as a stepping stone for Aldi Stores to attract new customers and create a solid base of clients. The platform was utilised to showcase the target customers the savings available through shopping at Aldi. Following the awards and media coverage, since 2013 to date it has seen over 100% sales increments boosted by the new loyal customers. Other public promotions done by Aldi include the seasonal back to school and Christmas campaigns that have led the store to achieve unmatched success (Lund Marinova 2014). Social Media and Targeted E-Mails The significance of social media in marketing communication has received considerable attention from both academics ad practitioners over the past decade. Social media platforms including Facebook and Twitter serve the function of instant sharing of content and providing widespread feedback between senders and recipients of content. Business have tapped the commercial capabil ity of social media and incorporated it in marketing (Young Merritt 2013). Aldi Stores runs both Facebook and Twitter accounts. Through these channels, Aldi interacts with customers, who are ready and willing to provide feedback and opinions regarding the usefulness of their products. Social media users, in their turn, tend share the content including photos and videos of experiences of different places including supermarkets, coffee shops and movies among others, thus, promoting the companyââ¬â¢s goods. For instance, Coca-Cola runs a lot of marketing communication campaigns with the use of Facebook, Instagram and Twitter, whereby users are encouraged to share pictures (selfies) of their best moments enjoying the soda produced by the company (Lund Marinova 2014). The efforts of customers and the willingness to share best experiences at Aldi Stores through social networks have played a major role in convincing other social media users to try using the same products that they hav e. It has been revealed that the proper usage of the power of social media can open ample opportunities for businesses. For example, the company provided a provision for Facebook users to exchange cybernetic romantic cards with their friends. This campaign triggered a rapid rise in the number of Facebook groups such as the Aldi page. Those who liked the page had the opportunity to view what Aldi is, what products the company offers, where it is located, and when they can pay a visit to Aldi. In addition, the viral following and sharing allowed by social media can help increase awareness for a brand miraculously fast. However, a failure to manage social media as a marketing communication tool can result in immeasurable damage to the brand name. Considering customers sharing photos of Aldi Stores for the wrong reason such as product fault or other sentiments, one will be able to estimate the damage that the organization will suffer in the worst case scenario. This fact reminds markete rs to exercise their control over the situation and limit social media engagement in the scenarios that adversely damage the brand name (Lund Marinova 2014). The Aldi Stores marketers make use of direct e-mail messages to their subscribers about particular products, new arrivals, and change of prices among other related information. For instance, their mode of using the swap-and-save seasonal messages including Pancake Day among others presupposes sending direct emails. The messages may involve reminding the customers of an important day like Valentine and Mothersââ¬â¢ day among others in a bid to encourage the customers to prepare to buy or place orders for cakes or other related products. Aldi also engages customers to visit its revamped website, which displays many promotional messages (Young Merritt 2013). For instance, Aldi created a micro-website (www.likealdi.co.uk) for the purpose of encouraging customer engagement. It offered an opportunity for customers to voice their opinions concerning the Like Brands TV campaign. The site enabled the company to evaluate its effect on its target audience by conducting an analysis of the website (Lund Marinova 2014). The website also used as a recruitment portal to increase the probability of selecting the right employees for improved job placement. This shift from traditional communication strategies is in line with the behaviour of consumers today, where people search for information online. Figure 2: A diagram showing the ââ¬ËBelow-the-Line-Promotionââ¬â¢ Recommendations for Aldiââ¬â¢s Marketing Communication Strategy Integrating Marketing Communication Functions Integrated marketing communication (IMC) is the idea presupposing that a business promotional activities need to be coordinated so that complementary results could be achieved (Quesenberry, Coolsen, Wilkerson 2012). The different MC tools that a business utilises invite a number of opportunities; however, if the process occurs in mere is olation, achieving an intended effect can be difficult. Affecting the purchasing behaviour of customers can be tricky if dedicated programmes fail to work in a seamless coordination. In this regard, the simple promotion efforts of Aldi that seem to occur in isolation can help the company achieve even greater success if the integrated approach is incorporated into the companyââ¬â¢s set of strategies. For instance word-of-mouth (WOM) marketing is a viable strategy that is based on the power of certain ideas and opinions in influencing customer purchasing decisions (Quesenberry, Coolsen, Wilkerson 2012). With peer-to-peer communication acting as advice, customers have the tendency to follow cues and recommendations of their friends, family and media during shopping. Aldi has not relied on this crucial marketing communication tool; therefore, it is recommended that, besides using other promotional tools aforementioned, the company should consider utilising the WOM technique. In fact , researchers argue that WOM is more effective in influencing consumers than traditional advertising channels despite the fact that it is a low-cost initiative. Consumers themselves are motivated to spread information through word-of-mouth channels based on their satisfaction of dissatisfaction with products or services. Besides having a strong customer loyalty, Aldi Stores has been known for delivering quality products for many years now; thus, engaging these loyal customers in WOM marketing communication can trigger great positive effects. Digital Media, Online Presence The advent of the internet has reshaped marketing communication with its effect on peopleââ¬â¢s interactivity (Young Merritt 2013). An integration of physical marketing communication strategies with the Internet can transform the business into an immense success. The Internet has revolutionised the process of communication, enhancing the ability of people to collect, process and share information. Customers are also enabled to communicate with each other and, thus, create powerful avenues through which product information can spread and reach even more people and products can become absorbed by the wider market in a more cost-effective manner (Young Merritt 2013). Aldi needs to utilise the social media marketing communication platforms in customer relationship management (CRM). CRM is an aspect that sprouts from synergised strategic planning and integration of marketing communication. Customer loyalty is an important relationship that businesses ought to build if long-term success is to be achieved. These relationships can only be established with the use of robust techniques including the modern practice of e-commerce facilitated by the online presence (Magee 2013). It has been noted that there has been a considerable the shift from product-centric to customer-centric marketing strategies owing to the fact most of the products offered by many businesses are almost similar to each other, with only slight generic differences allowing customers to distinguish between them. As a result, marketers seem to be concentrated on the target audience rather than on their products. As much as products resemble each other, customers will always be motivated differently to purchase preferred brands (Magee 2013). The Aldi Stores needs to base its marketing communication strategies on this fact in order to gain a competitive edge over other stores in the same market. In this regard, the firm has a duty to filter the information that goes to the consumers, who, in turn, share it with their peers. Positive peer-shared messages will have a healthy effect on sales for Aldi Stores. The CRM strategies comprise two crucial components: the level of competence for the firm to manage customer database that entails data collection, analysis, dissemination and application of the information. The customer database provides the business with the information it requires to understand effectively , target and segment its customers (RacolÃ
£a-Paina LuncaÃ
Ÿu 2014). This way allocation of necessary resources for the purposes of implementing customer-centric strategies, building customer loyalty, creating customer value, and in turn scaling firmââ¬â¢s profitability. Secondly, relationship marketing that entails development and maintenance of fruitful long-term relationships. Establishing a long-term integration of marketing communications in a way that ensures successful dissemination of information from the sender (marketer) through all points of contact with the recipients (consumers) is the ultimate objective of any firm (RacolÃ
£a-Paina LuncaÃ
Ÿu 2014; Quesenberry, Coolsen, Wilkerson 2012). The rapid growth of new media has challenged pre-existing business models and has enabled organizations to manage their interactions with customers. The Aldi Stores should utilise CRM strategies to establish customer database that will help them understand what customers need a nd develop positive and robust interactions. To achieve e-transformation, online presence must be established for the Aldi Company. Viral Marketing Viral marketing is an approach that integrates with the word-of-mouth promotion by capitalising on digital media especially social networks (Levy Gvili 2015). Social media has given opportunity for users to create and share content, a practice commonly referred to as journalistic engagement, whereby individuals are capable of capturing the events that they are witnessing and reporting about them to the online community. Shared content stimulates debates and additional sharing to reach more people in the network. The implementation of the idea is seen in viral marketing in modern businesses (Levy Gvili 2015). The customersââ¬â¢ desire to share experiences with their peers can be utilised as a key platform for marketing communication. The Aldi Stores can effectively use this strategy basing on its strong customer loyalty by engaging y ouths in spreading messages that resonate with the target audience. Marketers use referral links that are embedded in social networks to lead new users to reach the companyââ¬â¢s web based promotional messages. As users share content with their fiends, the link appears with luring information that catches the attention of the new users. Marketers at the Aldi Company need to design viral marketing campaigns, which include seeding emails, online advertising and referral links that once initiated should be properly managed to ensure that new users are able to access the intended information (Quesenberry, Coolsen, Wilkerson 2012). Events based marketing and Guerrilla Marketing Many firms make use of major events that can be appropriate for marketing communication. Researchers argue that events enhance building of on-on-one relationships with consumers (Luxton, Reid, Mavondo 2015). Events occur in various forms including cultural, sports, music festival, cause-related marketing, tra de fairs, and lifestyle marketing among others. Aldi Stores can make use of event-based marketing to get in touch with the target audience as well as demonstrate the range of their products and services (TÃÆ'lpÃÆ'u 2014). For instance, it can use sports events by sponsoring uniform for a young team with its brand name embedded on them. This practice serves the purpose of letting the public learn about the existence and location of a particular store in town that offers high quality products besides having proactive CSR programmes (Chen et al. 2015). This message goes beyond the identification of the target audience as the event can be televised to pass the information even across borders. Notable firms that have utilised events as the key tools for their products promotion include Pepsi and Coca-Cola, Nike, and Chevrolet among others. These companies operate on a global scale. Some of them, such as the Coca-Cola Company, owe their great success to the utilisation of event-based ad vertising. Proposed Budget for the Recommended Marketing Communication In-Store Packaging Aldi Stores does not engage in a lot of in-store media activity apart of creating the banners that the organization prefers referring to as swap-and-save advertisements. The most crucial in-store marketing communication function is the one done with in-store packaging. Despite the rest of promotional efforts of the company, including television advertising, public relations and social media, the fact that it is the product packaging that leaves a permanent impression on the customers as they browse through the goods available is beyond disturbing (Castronovo Lei 2012). Other leading stores have employed robust marketing communication campaign with the help of packaging. The message contained in a package must have the staying power big enough for the customer to remember about the product after purchase, whereas those video ads and social media images are erased from the customersââ¬â¢ memo ries almost instantly. The Aldi Company can increase brand awareness by embedding communicative information on products packages (Fulgoni Lipsman 2015). Many supermarkets have recently been seen rebranding products from other manufactures including water and beverages and putting informative messages on the new packages (Goneos-Malka, Grobler, Strasheim 2013). This trend serves to create loyalty among buyers for the store where that product is bought. This behavioural marketing strategy encourages repeat sales (Lilleker 2015). Conclusion Marketing communication is one of the important tools that the marketing mix is comprised of. Firms can use a variety of marketing communications techniques to promote their sales. It is worth noting that the choice of these tools is contingent on various factors including costs, effectiveness and line of business among other audience related factors. Traditional marketing communications tools have been challenged by the emerging digital media pla tforms that have revolutionised marketing communication. Firms need to learn how to integrate these tools effectively in order to achieve the goals set in the action plan. Some traditional promotional campaigns are still in use today, but there is a need to include e-commerce and embrace social networking to attract more customers, as well build customer relationships. References Castronovo, C Lei, H 2012, Social media in an alternative marketing communication model, Journal Of Marketing Development Competitiveness, vol. 6 no. 1, pp. 117-136. Chen, K, Chen, M, Liu, C Huang, C 2015, Integrated Marketing communication, collaborative marketing, and global brand building In Taiwan, International Journal of Organisational Innovation, vol. 7 no. 4, pp. 99-107. Duhan, P Singh, A 2013, Social media: a paradigm shift in integrated marketing communication, Integral Review: A Journal Of Management, vol. 6 no. 2, pp. 1. Fulgoni, G Lipsman, A 2015, Digital word-of-mouth and its offline ampl ification, Journal of Advertising Research, vol. 55 no. 1, pp. 18-21. Goneos-Malka, A, Grobler, A Strasheim, A 2013, ââ¬ËSuggesting new communication tactics using digital media to optimise postmodern traits in marketingââ¬â¢, Communication, vol. 39 no. 1, pp. 122-143. Kellezi, J 2014, Trade shows: a strategic marketing tool for global competition, Procedia Economics and Finance, vol. 9 no. 1, pp. 466-471. Levy, S Gvili, Y 2015, How credible is e-word-of-mouth across digital-marketing channels?, Journal Of Advertising Research, vol. 55 no. 1, pp. 95-109. Lilleker, D 2015, Interactivity and branding: public political communication as a marketing tool, Journal of Political Marketing, vol. 14 no. 1, pp. 111-128. Lund, D Marinova, D 2014, Managing revenue across retail channels: the interplay of service performance and direct marketing, Journal of Marketing, vol. 78 no. 5, pp. 99-118. Luxton, S, Reid, M Mavondo, F 2015, integrated marketing communication capability and brand p erformance, Journal Of Advertising, vol. 44 no. 1, pp. 37-46. 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¡e, D Snoj, B 2014, Marketing Communication on social networks solution in the times of crisis, Marketing (0354-3471), vol. 45 no. 2, pp. 131-138. Uzunoßlu, E Misci Kip, S 2014, Brand communication through digital influencers: Leveraging blogger engagement, International Journal of Information Management, vol. 34 no. 1, pp. 592-602. Vanov, A 2012, The Internetââ¬Ës impact on integrated marketing communication, Procedia Economics And Finance, vol. 3 no. 1, pp. n536-542. Young, J Merritt, N 2013, Marketing channels: a content analysis of recent research, 2010ââ¬â2012, Journal of Marketing Channels, vol. 20 no. 4, pp. 224-238. Appendices Aldi Stores A gency Brief Aldi Stores Location Contact Use online store locator to see open stores Budget The stated amount is set to support the like brands campaign in other markets outside the U.K including emerging economies such as China and Taiwan. In addition, the amount will support recommended marketing communication strategies including direct selling, in-store repackaging, online presence, word-of-mouth MC, IMC, and Blogging. Budget Amount à £2.5m Timeline The marketing communication is set to begin immediately and to persist till Christmas Target Audience Sporting events, celebrity events, trade exhibitions, sponsored events and music awards events. To reach emerging markets, as the company intends to open stores there. Estimated target audience (Per year) Online shoppers 1 Million In-store customers 2 Million Word-of-mouth targets 0.5 Million Activities Online blogging, viral marketing, word-of-mouth marketing, social media marketing, YouTube ads The AIDA Model Scre en grabs showing the engagement with Minerva Screen grab 2 Screen Grab 3
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