Media Research Document
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1 Media Research Document Michael Hill Jewellers AMB319 Assessment 1, Semester Date: 2 nd April 2015 Name: Jacinta Rebelo ( ) Tutor: Hannah Tutorial Time: Tuesday 5pm 6pm
2 Introduction Michael Hill is a well known Australian jeweler. The purpose of this research document is to address the Media Brief presented by the client. The business objectives of the client have been constructed upon the aims to increase retail sales, market share and in-store footfall This research document will address the following components of the Michael Hill media strategy: Target Audience Analysis Product and Market Analysis Key insights
3 Target Audience Analysis The main users of Michael Hill products are women, however jewelry sales increase at gift giving season. Women influence men s purchasing behvaiour at gift giving season, therefore they are a very accessible target market (Rush, 2012; Tifferet & Herstein, 2012). Marketers can use this knowledge to refine segmentation of the audience and maximise the reach of communication. The following is the target audience as determined by Roy Morgan data, corroborated by other sources:
4 Target Audience Analysis Demographics Men aged Employed full time in managerial positions Earning over $ p.a. Married or in a relationship with children 3-5 years old. Living within metro capital cities, primarily, Brisbane, Sydney, Melbourne Source: Roy Morgan, Single Source Australia, Oct Sep 2014
5 Target Audience Analysis Psychographics It is important for these men to have responsibility and security in their job, and to be financially stable. They make decisions based on logic rather than emotion (Roy Morgan, 2014) These men have particular brands that they stick to. Unlike women, men don t think of themselves as born to shop (Roy Morgan, 2014) They are more assertive and don t shop for the experience; they shop with purpose (Tifferet & Herstein, 2012; Conway, 2004)
6 Target Audience Analysis Consumer Behaviour It is important to have financial independence, to be a problem solver and a decision-maker. As consumers they are savvy and discerning (Access PR, 2015; Roy Morgan, 2014). Men use luxury products like jewelry to signal status and show their affection, as well as attracting partners (Conway, 2004). For men, luxury products such as jewelry is relied upon to express affection. Michael Hill can use this behaviour in seasonal times, such as Christmas, to maximise sales both online and in store.
7 Target Audience Analysis Media Consumption Australians spend 10 hours on digital media platforms per day (McCrindle, 2013) Media Consumption Men Men 25-54, are more likely to be consuming media after dinner (v % 87), most likely with their family. (Roy Morgan, 2014) This is the time when the target audience will be most receptive to advertising and should be utilised in the media plan. V% of population % 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Index v% ix Total Media Consumption (weekday)
8 Target Audience Analysis Media Consumption - Television Most television programs have a distinct majority of viewers as only one gender (as seen in the viewership of Cricket and Top gear). Conversely, there are some shows both target audiences watch together. These are prime brand touch points. The shows with higher viewership are aired after dinner, the time when men consume the most media. By choosing a time and channel where the media consumed by both main audiences is favourable as the reach will be double % 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Women Men Source: Roy Morgan, 2014
9 Target Audience Analysis Media Consumption - Internet Men are more likely to consume online media in the afternoons and after dinner (afternoon: v % 35.9, ix 110; after dinner: v% 38.7, ix 117). The target audience are more likely to use Google Search and YouTube than the general population (Google search: v% 89.80, ix 114; YouTube: v% 60.5, ix 118). V% of population It is assumed that the target audience uses multiple screens at once due to the timing of internet consumption relative to television consumption. This should be taken into account when compiling the media plan. Internet Consumption Men % 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Index v% Men ix Men V% of population % 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Website usage Men Index V% ix Times of internet consumtion Source: Roy Morgan, Single Source Australia, Oct Sep 2014 Most popular internet sites
10 A Day in the Life Weekday Weekend 6.30am 7.45 am Wake up, eat breakfast, quick coffee Drive to train, sees billboard, catch train to work, scan internet on the train 8.30am 9am Wake up Make pancakes with the kids, read the newspaper online 8.15 am Work, check s 10.30am Few jobs around the garden, mow the lawn 12.30pm 1.30pm Grab quick lunch and coffee from café downstairs. Work 12.30pm Lunch, Google family holidays spots for Easter Holidays 5.00pm Train home, using internet to scan Facebook, drive home from station, listen to radio 2pm Grandparents come over for a visit, watch the cricket, scan YouTube 5.30pm Bit of gardening after a long day 5pm Fire up the BBQ, Google search recipes for steak marinade 7pm 8pm 11pm Dinner with family Relax by watching tv and scanning internet on mobile phone Sleep 8pm 11pm Watch TV with partner, kids asleep, scanning social media Sleep
11 Pictography Healthy lifestyle Happy family Optimistic about the future Successful career Exciting social life
12 Biography My name is Brad, I m 38 years old. I ve been married for 9 years and we have 2 children. My daughter is 5 and my son is 3. We live in a nice suburb made up of families like ours. On weekends, in Winter, I play recreational football and in Summer I play cricket. My football team is made up of mates from work. I m a marketing manager for a mining company, my office is in Brisbane. I love my job even though it s demanding. I like the responsibilities.
13 Target Audience Analysis Path to Purchase and Barriers to Purchase Problem recognition (e.g. Christmas time, need a gift for partner) Information search (e.g. internal: what did you buy last year? External: what are companies offering) Evaluate Alternative (e.g. which brand has the best price? Which brand is trusted more?) Product Purchase (e.g. buy the gift online or in store?) Post Purchase (e.g. did she like it? Did you make the right choice? If yes will you be loyal to the brand?) Brand s can encourage various touch points throughout the buying decision process The target audience is more receptive to media during the second stage: information search. This is the best time to target the audience with advertising. Barriers to the product purchase may include noise in the message process, in addition to to the attitudes of the target audience. Men are loyal to the brands that they know. They re convenience shoppers but still use luxury products to display their level of affection (Roy Morgan, 2014; Tifferet & Herstein, 2012)
14 Product & Market Analysis Product Main business for Michael Hill includes watch retailing, diamond retailing and the sales of gold and silver products This industry fluctuates through the year, peaking during gift giving season (e.g. Christmas, Valentine s Day). For the past five years, there have been mixed results within the industry, this has stunted the annual growth in revenue for each company in the market Burgio- Ficca, 2014). Michael Hill s main competitor in this market is Prouds Jewelers as well as some smaller retailers (Burgio-Ficca, 2014). Where Michael Hill has the brand line extension of Emma and Roe, Prouds has Angus & Coote and Goldmark. This allows Prouds to have a larger share of the market, making it Michael Hill s biggest competitor (Burgio-Ficca, 2014). Michael Hill positions itself as young, fun and all about love. Their unique diamond policies differentiate it from competitors. They have 174 stores in Australia, mainly located in capital cities. (Michael Hill, 2015)
15 Product & Market Analysis Product & Previous Advertising Michael Hill s current campaign We re for love has been very effective in the industry (Blair, 2015) According to Blair (2015), Michel Hill has successfully used this campaign to promote the brand Emma & Roe in the Valentine s day period last year. Currently, Michael Hill is using television as the main media channel. There s a significant lack of online marketing compared to competitors like Pandora (Roy Morgan, 2014). This his hindering Michael Hill s ability to increase interest in the brand. There s also a shortage of outdoor advertising, minimizing the reach of communication. Most gifts range from under $100 to $500. Similar to the competitors, there are high and low involvement products available online (Michael Hill, 2015; Prouds Jewelers, 2015)
16 Product & Market Analysis Advertising spent in the Market Share of Advertising Spend in the Market $204,383 $1,005,573 Michael Hill Jeweller $2,451,045 Pandora Jewelry $1,122,295 Swarovski International P/L $8,405,098 Shiels Jewellers $1,977,944 Wallace Bishop Jewellers $2,600,709 Jewellery Group The Tiffany & Co $2,613,924 $4,151,717 Bevilles Jewellers Diamonds International Michael Hill spends significantly more on advertising in the market than any other competitor. The majority of Michael Hill s spend is in television advertising. Other brands have a broader scope of inexpensive media channels, such as online. Of the brands displayed, Tiffany & Co has the most brand equity, therefore they don t have to spend as much on advertising. Source: Roy Morgan, Single Source Australia, Oct Sep 2014
17 Product & Market Analysis SWOT Analysis Strengths Weaknesses Opportunities Threats Spend most in the market on advertising (Roy Morgan, 2014) Emma & Roe products appeal to additional market Unique diamond policies (Michael Hill, 2015) Negative consumer attitudes towards the brand Small share of the market (Burgio-Ficca, 2014) Amount of stores compared to main competitor Prouds (Michael Hill, 2015) Bounce rate on website (Alexa, 2014) Online marketing and sales New we re for love campaign (Blair, 2015) Increase asles during Christmas period Existing competitors in the market Prouds Jewelers (Burgio- Ficca, 2014) Emergence of online alternatives Providing the consumers with an additional brand such as Emma and Roe, can help reach the business objectives of increasing sales The we re for love campaign has the ability to call consumers to action. With the use of proper media channels and timing, this can address the sales objectives.
18 Product & Market Analysis PEST Analysis Political Economic Social Technological Queensland Government Commerce Trade Regulation on Luxury Goods restricts importing of luxury goods (Queensland Government, 2001) Seasonality of sales times e.g. Valentines, Christmas Fixed costs of company Cynicism of consumers to advertising and marketing (Access PR, 2015) Change in household incomes Research and development of new products Taking full advantage of the seasonality of the product allows the company to address the objective to increase of footfall in store The cynicism of consumers to marketing provides a challenge for marketing teams to increase brand loyalty.
19 Key Insight Men like to have all the answers, they don t like being incorrect, or people knowing they were incorrect. According to the Roy Morgan data, men aged like to be seen as a Mr. Fix-it type, they stick to what they know and need security (financial and otherwise) in their job and home lives. Therefore, they like to have all the answers and be in control.
20 Reference List Access PR (2015), Millennials: Understanding Consumer Happiness is Critical to Brand Engagement, B&T, Retrieved from: ACMA (2011), Generational differences, Retrieved from: Generational_differences.pdf Alexa (2015), Site Overview: michaelhill.com.au, Retrieved from: Blair, M., (2015), 3 Brands That Have Nailed Video, B&T, Retrieved from: Burgio-Ficca, C., (2014), IBIS Industry Report G4253: Watch and Jewellery Retailing in Australia, Retrieved from: entid=427 Conway, J. (2004), Men: What are they really thinking?, Admap, Retrieved from: MasterContentRef= a-a84b-4bc a11e0c578bd4&q=men +jewelry&cid=a79681&pub=admap
21 Reference List Kim, D., Jang, S. (2014), Motivational drivers for status consumption: A study of Generation Y consumers, International Journal of Hospitality Management, 38, 39 47, DOI: doi: / j.ijhm McCrindle (2013), Australia the Digital Media Nation, Retrieved from: PostID=345180&A=SearchResult&SearchID= &ObjectID=345180&ObjectType=55 Michael Hill (2015), Retrieved from: Prouds Jewlers (2015), Retrieved from: Queensland government (2001), Australian Customs Service: Customs Guide to Importing and Exporting, URL: Roy Morgan, Single Source Australia, Oct Sep 2014 Rush, J., (2012), If you don't ask, you don't get: Men spend more on their wives and girlfriends at Christmas if told what to buy, The Daily Mail Australia, URL: Tifferet, S., Herstein, R.(2012), Gender differences in brand commitment, impulse buying, and hedonic consumption, Journal of Product & Brand Management, 21(3),
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