AMB202 IMC Client Report Lucky Duck Café & Bar

Transcription

1 AMB202 IMC Client Report Lucky Duck Café & Bar Student name and number: Qinxiong Zhang (George) N JunYi Yu (Mark) N Jiejing Liu (Iris) N Tutor name: Biba Wythes Tutorial time: pm Word count: 1378

2 Table of Contents Table of Contents... 2 Executive Summary Introduction: Client proposal and objectives solved Objectives Potential Competitors Situation analysis: SWOT, PESTE & Audit SWOT analysis PESTE analysis Audit analysis Target Audience Branding and/or Positioning Strategy SIVA Principles Branding strategy Positioning strategy Marketing Communication Strategy Campaign Objectives Message Strategy IMC tactical strategy Campaign Implementation campaign Evaluation Marketing Materials Reference

3 Executive Summary This report aims to provide some strategies to achieve four objectives given to The Lucky Duck Café & Bar for better overall business outcome. Specifically, the objectives, including sales increase, improvement of brand awareness, enhancement of customer loyalty and higher market share. There are four potential competitors in the same industry that threaten Lucky Duck Café & Bar which will be listed and analyzed on this report. Through the PESTE analysis and SWOT analysis mainly focus on determining the current and potential situation of Lucky Duck Café & Bar, and it will identify the strength and weakness of those business is compared to Lucky Duck Café & Bar and what tactics will be implanted to achieve the marketing goals. In addition, the target market has been segmented into four segmentations, including Geographic Segmentation, Demographic Segmentation, Psychographic Segmentation and Behavior Segmentation. The budget of four objectives is $4000 per 6 months which are outdoor advertising, media strategy, the function of online order, loyalty card and direct marketing. Furthermore, the relevant marketing materials also will be designed and presented in the report. 3

4 1.0 Introduction: Client proposal and objectives solved 1.1 Objectives Table 1 Objectives Objective Priority & possible timeframe 1 Increasing sales 6 months. Getting more profit for the shop so that it can continue to operate. 2 Improving customer s loyalty 3 months. Ccustomer s loyalty is a foundation on business, which can push the company to be more competitive. 3 Increasing brand awareness 6 months. It can make the brand become more popular and attract potential customers. 4 Increasing market share 6 months. Expanding new market and Making the brand to be more competitive in the industry. 1.2 Potential Competitors There are some shops around Lucky Duck, which are selling the same products, so they have a long term competitive relationship with Lucky Duck. In addition, some shops are belonging to immediate competitors, because they selling certain similar product with Lucky Duck. Table 2 Potential Competitors Competitor Lift coffee Pear Cafe Bar Starbucks Potential impact immediate or long term? Immediate impact. This store is close to Lucky Duck, and they also selling product like coffee. Long term impact. This store is relatively far away from Lucky Duck. However, it provides great environment and phenomenon than Lucky Duck. The area of shop is also bigger, which can make customers feel comfortable. Immediate impact. Although Starbucks is not around Lucky Duck, it s brand awareness makes customers feel at ease when they purchasing. 4

5 Tippler's Tap Long term impact. This store is located in the centre of South Bank. It provides many options of coffee and beers for customers. The location of business district is an important factor that makes customers feel convenient to purchase the products. 2.0 Situation analysis: SWOT, PESTE & audit 2.1 SWOT analysis Table 3 SWOT Strengths Weaknesses 1. Great environment and atmosphere in the shop. 2. Good service. 3. Good materials. 4. Great location, near the residential area and school with great passenger volume. 1. Website is too simple and unattractive. 2. Lack of publicity for the shop. 3. According to Kallas (2017), Facebook is the most popular social media in Australia. However, Lucky Duck does not have many a lot of followers, which are only about 2000 people. 4. Not unique products. Opportunities Threats The products are daily necessities for most people. Competitive environment. 2.2 PESTE analysis Table 4 PESTE analysis Environment Trends/ Issues Implications for Lucky Duck Political/ Legal There is a stable business environment in Australia. 1. Political factors will not have much impact on this shop. 5

6 (Australian Trade and Investment Commission, 2017). 2. The shop can operate in a stable market, which is beneficial to long-term operation. Economic The Australian economy is developing, and people have a high level of living standards. 1. People have a good economic level, which may drive them to spend money in their free time for pleasure. Social/ Culture Coffee and bar is a good option for rest in most Australian. 1.People have a high degree of attention to coffee and bar, so Lucky Duck has a potential market. Technology Social media is well developed in Australia. 1. Lucky Duck can make good use of social media to promote their brand and products. 2. Social media can help Lucky Duck to enrich their marketing strategy. Education There are more training courses provided in society, such as coffee academy. 1. Luck Duck can hire more skilled employees, which can provide better service to their customers. 2. It may also leave a better impression to their customers and improve their loyalty for the brand. 2.3 Audit analysis 6

7 By using the model of Say-do-confirm, Lucky Duck can achieve higher business performance. The say messages are the brand promises, do messages are the brand performance and others will confirm that expectation and experience (Franzen & Moriarty, 2015). For Lucky Duck, their target audience is focus on those customers aged 20 to 50 years old who are living around the store. The business hours of Lucky Ducky are from 6:30 to 23:00 on Friday. However, some customers said that the shop sometimes will be closed in advance. In addition, Lucky Duck uses different social media to promote their band and products, such as website, Facebook and Instagram. According to Kallas (2017), Facebook and Instagram are the most popular social media platform in Australia. However, Lucky Duck does not make good use of social media. On their website, they just simply list the products and price list, which cannot leave a good impression to their customers. For these reasons, Lucky Duck should pay more attention to their disadvantages in the stage of say and do for getting higher competitive. 3.0 Target Audience In this section, the Lucky Duck of primary and secondary audience will be identified. There are some segmentation and analyze these audience, including Geographic Segmentation; Demographic Segmentation; Psychographic Segmentation; Behavioural Segmentation. In addition, this part also will introduce the target audience detail of primary and secondary, including in the following Table 3: Table 5 Analysis of the Target Audience Description Potential impact Geographic Segmentation - Customers primarily located in Gladstone road of South Bank. - Residential areas and a high school are near Lucky Duck. -The segmentation is describing a type of people, which lead to the high content of involvement in the store location. -This group would also contribute to IMC planning effectively. 7

8 -However, there are some new customers would be limited. Demographic Segmentation - Generation X specifically aged over 31 years old female and male in South Bank. - Generation Y, years old of young male or female. - Couple - The company's products and location are more attractive and have been favored in the relevant market. - Marketing highly affects them. Therefore, it is easier for these groups to produce preferences and views toward the Lucky Duck's food or the environment. (Cui, Trent, Sullivan & Matiru, 2003) Psychographic Segmentation - Roy Morgan Visible Achievement. Family is very important to the segment. they attach importance to provide high quality s environment for their family. Moreover, they search quality and value for money, not necessarily something that is expensive (Roy Morgan, 2015). - Another value segment of Roy Morgan, Look At Me. They like music and freedom lifestyle and possessing viewing habits that reflect peer-group interests (Roy Morgan, 2015). -This allows the Lucky Duck to highlight the functionality of the service to accommodate Gen Yers, Gen Xers and Couple s lifestyle, attracting more members and increasing market share (Peter, Olson & Grunert, 1999). -The design of advertisement information also contributes to the development of emotional appeal. -Lifestyle has an influence on consumer behavior and product appeal (Pickett-Baker & Ozaki, 2008). 8

9 Behavioural Segmentation According to (Peter, Olson & Grunert, 1999), People over the age of 20 usually have sufficient spending capacity and personal preferences, they tend to improve the quality of life. Therefore, these groups are more willing to buy products that improve the quality of life. -This is benefit to attract new members during holidays, for example Christmas holidays. - Targets audience who have consumer s experience, get more interest in joining Lucky Duck activity. However, it is hard to collect data and information from experienced or often purchased people (Solomon, Russell-Bennett & Previte, 2012). For the identification and justification of the target audience in the Table 5, Lucky Duck can target more than twenty years old couples, they live or work in Brisbane s south bank. They attach great importance to their family and want to improve the quality of life. In addition, they like music and free way of life Branding and/or Positioning Strategy 4.1 SIVA Principles The SIVA approach is an IMC-focused, customer-demand approach that used to replace or renew the 4Ps marketing mix (product, place price and promotion) of marketing management. 9

10 Firstly, based on the SIVA model, the product becomes solution to focus on understanding what the customers wants so as to satisfy the current or potential needs of the customers. This implies that Lucky Duck Café & Bar cannot simply provide products, they have to look at how those products can meet their customers desires. Secondly, integrated cross channels should be identified and designed to deliver the brand s information instead of mainly focus on placing advertising. The companies can provide the information for customers and they need to determine whether the products are suitable for them. Thirdly, SIVA advocates the price should be set up based on the value and perception the products could offer to the customers rather than just the cost. Lastly, the clear and simple access should be offered to the customers. It has positive impact on attracting an increasing number of customers to come and visit the Lucky Duck Café & Bar. The table 6 This table demonstrates the specific application and explanation of the SIVA model with the Lucky Duck Café & Bar. Application Explanation 10

11 Solution Information Value Access Lucky Duck Café & Bar offers better services to meet the customers needs. For example, various of unique choices, such as customized taste cocktail could be provided for them. Lucky Duck Café & Bar can make full use of social media campaign, such as Facebook, Instagram to deliver information. Furthermore, billboard, official app and flyers could be considered as another channel to deliver information. The loyalty card can be offered for customers and the advantages of being membership should be clearly presented. The loyalty card activity need to be placed in the official website and Facebook page as well as in the store because it can attract more customers easily access to Lucky Duck Café & Bar. Giving customers the power to choose a product that personally suits them (Grewal et al,2015, 409). Social media platforms, such as Facebook, will play an important role in raising brand awareness (Queensland Government 2014). There are 1.18 million daily active users and 1.09 billion mobile daily active users on average(facebook,2016). Membership card has a positive impact on maintaining the long-term relationship between Lucky Duck Café & Bar and customers Due to lack of loyalty card activity in Lucky Duck Café & Bar, it is a acceptable and viable method for the business to attract more target audience. 4.2 Branding strategy Branding provides the recognition factors to differentiate the product or service from competition and succeed it in the market (Solomon et al., 2014, pp. 268). The Lucky Duck Café & Bar s strategy will be described and justified in this section. i. Positioning for the campaign 11

12 The Lucky Duck Café & Bar is a coffee and bar store. It offers organic brekkie and brunch, cocktails and bar snacks for customers. It also provides lots of artistic eye candy to sweeten customers experience. The positioning strategy for the campaign is based on the Lucky Duck Café & Bar s objectives and target audiences of the campaign. ii. Brand identity Brand identity provides image differentiation, which enhances competitive advantage (Bhasin, 2016). Greater emphasis has been placed on developing a strong brand identity to set Lucky Duck Café & Bar apart from its competitors. A black and white logo was created as main color for the brand, and the memorable business name was devised that reflected the brand image. These elements help the Lucky Duck Café & Bar can be easily recognized and recalled for the customers. Image: Ducks Black and white Relationship: Freedom Personality: Comfortable and Artistic Delicious and Energy Figure 3. Brand identity of Lucky Duck Café & Bar iii. Brand loyalty of Lucky Duck Café & Bar To further develop and enhance brand loyalty, building membership of Luck Duck Café & Bar is an effective way to gather target audience. Membership cards will attract and motivate the new and current customers to come Luck Duck Café & Bar more frequently. 4.3 Positioning strategy Lucky Duck Café & Bar is the brand of coffee and bar that provides the customers who seeking a comfortable place and excellent atmosphere to enjoy their rest time. 12

13 5. 0 Marketing Communication Strategy 5.1 Campaign Objectives For Lucky Duck, there are three objectives are established, which need to achieve for higher business performance and competitive in the industry. These objectives are based on the situation of SWOT analysis, and need to achieve within 6 months. Table 7. Campaign Objectives Campaign Objective Time frame How to measure Sales increase. It can be achieved by online order and local market day. 6 Months from November. Online order: Lucky Duck can try receive the orders from their Website. From the website traffic, Lucky Duck can check whether their strategies are working. Local market: attending local markets is a great way to implement for higher sales. Lucky Duck can measure their market results through the purchase rate and customer s feedback. Improving customer s loyalty by Loyalty card. 6 Months from November. The sales of loyalty card can reflect the influence in the market. 13

14 Increasing brand awareness. This objective can be achieved by flyers and social media. 6 months From November If Lucky Duck can receive response from social media with high posts, which can be seen as a successful method. In addition, Getting more customers from the flyers. Lucky Duck can count the number, and calculate their profit. If they can negative or little profit, which means the strategies does not work for them. 5.2 Message Strategy For convey the relevant marketing information to target audience, the emotion strategies are used in the advertisement of Lucky Duck. One effective approach to complete this point is making some noisy and create an information which can attract the field of audience emotional. This is reasonable by using a message strategy wheel. See Figure 4 for details. In the figure 4, the segmentation 1 indicate that the emotional demand of consumers can be satisfied through appropriate link to the self. Taylor (1999) states that using strong image- based messages can adapt to consumers for their definition. Because the target audience is the 14

15 senior generation (Gen X), the teen generation (Gen Y) and couples who deal with selfrelated appeals will be more efficient because they are considered born of inflatable self (Briggs, 2010). However, use of emotional straggles or images can ignore the cognitive stage of target audience, the distorted cognition would contribute to negative sense or mislead. 5.3 IMC tactical strategy The specific IMC tactical strategy are outlined for the Lucky Duck Café & Bar, including outdoor advertising, market day, the function of online order and the use of loyalty card. i. Outdoor advertising Description The flyer should be consistent with the colourful splash headline and business logo, the content should be creative and appealing and the discount also should be highlight. It can be executed at least 3 months. Evaluation An appealing marketing material, it can enhance customers mood and further increase engagement with potential audience. But flyer is difficult to display complex messages. ii. Media strategy Description Facebook Facebook page could be designed to invite customers to share photos, it will further increase audience engagement. Though sharing photos with friends via Facebook, friends of friends would be joined in Lucky Duck Café & Bar. In addition, information, such as video of production and promotion should be regularly and timely posted in the Facebook Instagram Instagram photo campaign also can be a tool to in place to increase brand awareness. Evaluation Social media platforms, such as Facebook and Instagram, will play an important role in raising brand awareness (Queensland Government 2014). There are 1.18 million daily active users and 1.09 billion mobile daily active users on average (Facebook,2016). An increasing number of customers are familiar with Lucky Duck Café & Bar. It is time-consuming to manage and update the information. 15

16 Both positive and negative comments also can be exposed though world-of-mouth. iii. Order online Description Add a multiple function in the website, like online order option, and it offer the customers to choose pick up or deliver. This is mainly targeted to the residents living in and near the location of Lucky Duck Café & Bar. As Lucky Duck Café & Bar near residential areas, it is a good opportunity for the business to increase total sales. Evaluation By integrating and managing multiple channels as a system retailer that offer order online pick up in-store, each channel supports and complements the other, leading to increased total sales (Chatterjee, 2010). vi. Loyalty card Description Loyalty card is designed for the purpose of building long term relationship between Lucky Duck Café & Bar and the current and potential customers, and this card can be recharged Discount information when join in the loyalty member should be highlight for each customer before they purchasing. It also should be posted in the Facebook and Instagram. This can invite the customers to become members. Evaluation The use of loyalty cards can attract customers to purchase as they can gain more discount when they become loyalty members. v. Market day Description South bank market day could be a great method for Lucky Duck Café & Bar. It offers an opportunity for store to directly engage with target Evaluation Market day offers a centralized shopping place for customers to purchase items. It helps Lucky Duck Café & Bar increase sales. 16

17 audience. In addition, generally, South bank market day has high traffic flow, if Lucky Duck Café & Bar could make full use of the market day, it helps promote the products and raise brand awareness. 5.4 Campaign Implementation Table 8. Media Schedule of the campaign This tale shows the media schedule of the campaign which over at least 6 months. It starts from June to November. #Medium: Different medium types #M1: Outdoor advertising #M2: Media strategy #M3: Order online #M4: Loyalty card #M5: Market day June July August September October November Medium M1 M2 M3 M4 M1 Table 9. Estimated budget of MC tactical strategy Outdoor advertising -Flyers Quantity Duration Cost(AU$) Balance(AU$) months Social Media - 4 months

18 Online Order - 2 months Loyalty Card months Market day 5 3 months campaign Evaluation The table 10 shows different campaign objective Campaign Objective Evaluation Metric Rationale & Cost Increasing brand awareness. Calculating the number about how many customers go to the store with the flyer. The cost will be used for material, but it does not require too much budget. Applying discount with the flyer can attract customer attention. In addition, it can stimulate them to go to the store and purchase products. The number of post on social media. Offering discount for posting is the cost in this strategy. However, it may help Lucky Duck to improve brand awareness on social media and attract more potential customers. Improving customer s loyalty. The number of member in Lucky Duck. The effect of this strategy can be seen directly from the number of members. Getting large number of member can bring profit for Lucky Duck. The cost of this strategy will be main used in VIP material fee and discount. If this method is working, Lucky Duck can improve their customer s loyalty. 18

19 Increasing sales. Customer reaction in market day. Attending local market may help Lucky Duck to get more new customers. In addition, it can also help Lucky Duck to promote their band and products in local market. However, attending local market requires joining fee. If Lucky Duck cannot gain more customers and sales in market, which can be seen as a failure strategy. The number of traffic volume and order from website. Getting more order from online website can show that the strategy is working on getting customer s attention. This strategy does not require budget on website desire. However, Lucky Ducky may be getting less profit at the beginning due to the discount. 6.0 Marketing Materials Table 11 Marketing Materials Overview Marketing Material Description 1. Flyers. The size of poster is 210*285mm, because size is portable for customers. 2. Website page design for online order. It is convenient for consumers to order products without going outside. 3. loyalty card Customers can get discount when using this card. 19

20 1. Flyer 2. The function of online order 3. Loyalty card 20

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22 7.0Reference Australian Trade and Investment Commission, Retrieved from Bashin, Hitesh Image differentiation. Accessed 7th September, 2016, Retrieved from Chatterjee, P. (2010). Causes and consequences of 'order online pick up in- shopping behavior. The International Review of Retail, Distribution and Consumer Research, 20(4), doi: / Chitty, Luck, Barker, Valos & Shimp (2015). Integrated Marketing Communications, 4th Asia Pacific edition. Cengage Learning Cui, Y., Trent, E. S., Sullivan, P. M., & Matiru, G. N. (2003). Cause-related marketing: How generation Y responds. International journal of retail & distribution management, 31(6), Dev, C & Schultz, D. (2005). A customer-focused approach can bring the current marketing mix into the 21st century. Marketing Management. 14(1), pp Facebook. (2017). Facebook newsroom. Retrieved from Grewal, D., Levy, M., Mathews, S., Harrigan, P., and Bucic, T Marketing. North Ryde: McGraw-Hill Education Pty Ltd Kallas, p. (2017). Retrieved from networking-sites/ Peter, J. P., Olson, J. C., & Grunert, K. G. (1999). Consumer behavior and marketing Strategy (pp ). London: McGraw-Hill. Pickett-Baker, J., & Ozaki, R. (2008). Pro-environmental products: marketing influence on consumer purchase decision. Journal of consumer marketing, 25(5),

23 Queensland Government Benefits of Facebook for business. Accessed August 24, business/running/ marketing/onlinemarketing/using-facebookto-market-your-business/ benefits-of-facebook-forbusiness. Solomon, M., Hughes, A., Chitty, W., Fripp, G., Marshall, G.W. and Stuart, E.W. (2014). Marketing: Real People, Real Choices, 3rd ed, Sydney, NSW, Australia. French Forest, Pearson Australia. 23