Integrated Marketing Communications Plan of Woolworths Assessment Answer
This report primarily deals with the development of an IMC or an Integrated Marketing Communications plan. In order to proceed with that, a 4C analysis of Woolworths has been performed in this study. In addition to that, the identification of the target market along with a detailed marketing strategy has been outlined in this report as well. Furthermore, a budget for the IMC plan has also been developed and presented in this paper. Moreover, the advertising practices of Woolworths have been highlighted through this report, along with the adaptation for matching the target market.
1. Marketing Audit
4C analysis of the company
|Consumer needs and wants||Woolworths used the customer value strategy which helps to fulfil the customer needs and requirements. Woolworths introduced new products for the customer which is beneficial for the customer. The company offering discounts, coupon rebates and per cent –off like deals on the products that fulfill the needs and wants of the customer (Woolworths, 2019). The company also set the prices of the products which arefavourable for the customer and maintain the good quality of the product. Woolworths creates a competitive market in front of the company’s competitor, Coles.||Coles used a value-led business strategy which enhances their marketing. Refurbishment of their stores and products which directly satisfies the customer's needs and wants. They have improved their customer services process, improving the quality of the products. Also by minimising the prices of the products which is favourable for the customer (Hackley, 2018).|
|Communication||Woolworthscompany communicates with the customer through advertising where the company deliver detail information about the products (Woolworths, 2019). Direct marketing means face to face positive communication between seller and consumer that clears the doubt and deliver the proper value of the product. Woolworths use social media, digital media and printed materials of company product's information on paper to communicate with the customer to increases cash flow and brand awareness of the company.This entire Communication strategy process makes Woolworths unique and creates a competitive market for the future. It helps to attract global consumers for the company which generate more cash flows for the company.||Coles provides improved customer services by using powerful tool “mycoles" which deliver feels good experience during shopping time (Coles, 2019). This communication tools exchanges ideas between the consumer and seller which is a problem-solving tool and provides innovative ideas.|
|Convenience||Woolworths increases convenience about the products by delivering a message through communication which includes benefits from the product to the customer (Woolworths, 2019). During direct marketing, seller demonstrates the products in front of the customer which increases reliability and clears doubts and maintaining the quality of the products. Woolworths provides printed materials about the benefits of the products on the paper. The company used digital media for delivering different product's information and provides flexibilityfor the customer to detect required products. It creates a competitive market in front of the company's competitor Coles.||Coles also increases convenience by maintaining the quality of the products and by minimising the prices of the products. Also, my code tool of the company delivers information about their products which increases reliability and awareness. Coles provide an online portal of the company where the customer also know about the details of the products (Coles, 2019).|
|Cost to satisfy||Woolworths set their newly launched product’s prices which is affordable for the customer. Woolworths offers discounts, coupon rebates on their products that is favorable for the customer and satisfy their needs and requirements. This strategy creates a competitive market for competitors like Coles.||Coles is also selling its products at a lower price which is more comfortable, affordable, and profitable for the customer (Coles, 2019). This strategy satisfies the customer. They provide products at a low cost and maintain the high quality of the products which attracts the customer more and increases the rating percentage of the company.|
Table 1: 4C Analysis of communication
Source:(Woolworths, 2019; Coles, 2019)
2. Identification of the target market
Market segmentation is the popular strategy for the company which effective for increasing the market value of the company and generates more profit for the company. It divides the company's market into multiple segments based on the geographic position, demographic, psychographic and behavioral variables of the marketing. The company can design their marketing strategy plan more accurately (Ernst and Dolnicar, 2018). Market segmentation helps the company to identify the company's needs and requirements. Market segmentation is a more fruitful effective process for generating profit. It reduces the huge population. The company is giving more focused on its products offering, marketing strategies, product differentiation strategy and price and quality strategy. It reduces risk, targets better and effective customer, increases the cash flows of the company.
Thegeographic segmentation groups the customers of the company on the basis of the state, country, city, region and neighborhood. These particular areas target customer-preferred products based on their location. This segmentation divides the customer based on topography location. This segmentation totally based on the particular location customer's lifestyle, characteristics and social status.
Demographic segmentation divides the entire population based on the demographic variable like gender, age, income, educational qualification, family members and socioeconomic status. It helps to create a homogeneous group (Alt and Iversen, 2017). It helps to target the customer more accurately. According to a research conducted recently by Mortimer and Clarke (2011), it has been evident that male grocery shoppers considered shopping to be of lesser importance than their counterpart, female shoppers in Australia. Since the last consensus, the age group of people belong to 18-36 years have been seen to be grown by 26% (Auspost, 2019). Thus, the company could target female shoppers for selling the products.This segmentation helps to identify how the company increases the sales of its products, what age group is their target audience. It helps to identify the particular customer needs and requirements based on their qualification, age and income.
Behavioural segmentation divide the entire marketing population based on the usage patterns and customer behavior. This segmentation is used by the company based on brand loyalty, benefits needed, customer preference, like the percentage factor of the customer, generate products according to the particular occasion. The company provides different pricing strategy to attract their target audiences.
Psychographic segmentation also divides the entire marketing population based on people's personality, lifestyle, social status. The population of people in Australia have seen to be rising by 18.7% by 2017 (Auspost, 2019). Woolworths Companycould seek the demographic and behavioral market segmentation for increasing their target audiences. These types of market segmentation will be more fruitful for the company. They generate products for infants to aged people. They set an affordable price for their newly launched product's which attracts the customer's mind. They fulfill customer requirements by maintaining quality. The marketing segmentation generates more profit for the company.
Based on the segmentation above the following target market has been identified for Woolworths.
|Targeting element||Woolworths target market|
|Area served||All over Australia|
|Age group||Infants to aged people|
|Lifestyle||Preferring budget pricing for products|
|Income/ spending capacity||Middle|
3. Objectives (SMART objectives)
In order to proceed with the marketing communication plan, it is essential to identify the objective or the purpose of the marketing campaign. The objectives can be categorized as per the communication tools identified in this regards. The marketing tools chosen in this regards are namely, advertising, sponsorship, communication and promotion through public relations. Hence, the objectives for both the campaign as well as the marketing tools can thus be outlined as follows:
|SMART components||Goals/ objectives|
Table 2: SMART Objectives
(Source: Author’s creation)
4. Detailed Communication Strategy
The communication strategy is dependent on the various communication tasks identified as demonstrated in Table 3 as a part of the IMC plan. It may be stated in this context that the primary objective or goal of this marketing campaign is to communicate the marketing strategies to the potential target market. For instance, Woolworths offers a significant amount of discount on several of the products sold at the stores. The communication of this offer to the target audience requires a plan, which blends subtlety and a clear idea of the promotions to the audience.
|Decision stage||Communication task||Target market/ target audience||When and where||IMC options|
|Need identification||Positive attitude, demonstration of newer items||Various target markets; mostly selling domestic and household products, along with retail products; Male and female, between ages 3 to 80||In the Woolworths stores; at home, through advertisements||Advertisement, promotion; television or print ad, social media marketing and more digital marketing options|
|Search for information and evaluation of the information||Provision of information on the products sold, store policies, company policies and more||Male and female, between ages 3 to 80||At home, through internet surfing options; at the retail outlet or the store||Television advertisements, print ads, use of digital media|
|Purchase||Acting on positive brand attitude as well as purchase intention||Male and female, between ages 3 to 80||At the store; online purchases from apps and websites||Through online portals or physical outlets; use of sponsorship, using promotional offers and more|
|Usage/ Post-purchase||Providing assistance in case of disputes; resolving issues or problems identified; development of customer relations leading to customer satisfaction||Male and female, between ages 3 to 80||From home or the retail outlets/ stores||Use of Public relations to develop customer satisfaction and customer relationship through brand loyalty and more; surveys and feedback generation|
Table 3: IMC Plan
(Source: Author’s creation)
Taking the content of Table 2 into account,it may be stated that the major marketing communications elements identified in this regards have been implemented in the IMC plan as a part of the communication activity to be undertaken by the organisation. It may be noted in this regards, that Woolworths is one of the leading retail stores in the country. Hence, it is imperative that the target consumers are considered with the products to be sold. The marketing communication plan takes into account, the relevance of each of the selected marketing tools and their implementation in the plan through a communication strategy (De Mooij, 2018). For instance, the strategy is to offer discounts in order to promote one's brand simply. This may be undertaken by promotion and advertising. Television, radio channels as well as other digital marketing tools such as social media, or display advertisements, along with email marketing may be implemented in this regards (Camilleri, 2018). This one-way marketing can be effective in aiding the target market to identify their needs. However, email marketing or surveys at the stores may provide face-to-face interactions with the executives at Woolworths, which may be crucial for the development of effective communication between the organisation and the consumers (Dimitrov, 2017).
In addition to that, it may be noted in this context that once the need identification is done, the consumers move on to the next stage. It is to be mentioned in this regards that since the primary objective of the campaign is to influence the consumers to facilitate an increase in the sales of Woolworths, it is essential that the consumer buying decision or buying behaviour is analysed in this aspect as well (De Mooij, 2018). Providing information as well as evaluation of the alternatives is another aspect wherein the marketing communications prove their effectiveness (Grimmer, 2017). For instance, Coles is one of the major competitors of Woolworths and thus, evaluation and comparison of prices with the competitors is a common component in business. Therefore, the use of social media networking and other sources of advertising and promotions are to be used. Using discounts may momentarily distract consumers, along with offers of buying bulk orders and getting a rebate in the process may be highlighted as well (Govender, 2017).
Finally, the use of sponsorships for drawing the attention of the consumers, along with promoting the brand may be considered. Once the consumer conducts a successful transaction, the development of effective consumer relationships is to be considered for the development of brand loyalty from the consumers (Govender, 2017). Furthermore, the implementation of brand loyalty programs or schemes may also be facilitated. The use of smartphones, through giving a feedback call, or conducting an online survey through the email may prove to be productive strategies involving communication in order to promote the brand (Filland Turnbull, 2016). Lastly, the interaction with the managers or the executives at the physical store is a channel of communication between the company and the consumer. This ensures a two-way communication between the enterprise and the target audience. This can further be enhanced through the surveys and the feedback, adding to the marketing communication plans. Therefore, training the employees in order to retain consumers may also be used as a potential communication strategy (Govender, 2017).
1. Indication of the way the marketing communication elements will work together to form an Integrated Marketing Communications strategy
Woolworths is planning on an integrated marketing communication strategy where each of the marketing communication elements works together for the success of the strategy. Each of the individual marketing communication elements has been described below on how they contribute to the integrated system.
Woolworths is using the positioning strategy technique for making the brand acquire a distinct place in the retail clothing market. This type of strategy helps in the effective use of marketing and promotion through the identification of points and differentiation parity and helps the products of Woolworths meet the market standards (Szromnik, 2016). It also provides the company with value-added products based on their prices, functionality, quality and innovative aspects.
This price-quality approach is used by the company to set a standard price of a newly launched product which is affordable and favorable for the customers. Limiting the price to a certain level keeps the customers attracted to the new product and increases the sales revenue flow of the company. Additionally, the company must also pay attention to the quality of the product which should be worth the price set for the product. If the balance between the price and quality is well maintained by the company, the customers become loyal to the product and sales volume of the company skyrockets due to this (Lu et al., 2016). The combination of price and quality also creates a niche for the product that is tough to beat for the competitors, and the brand value of the company remains high in the market.
These individual communication elements help to work together in an integrated marketing communication strategy and increase the overall sales volume, market share and customer base of the company which is necessary for it to be successful.
2. Marketing communications budget
|Marketing Budget Plan|
|Category||1st month||2nd month||3rd month||4th month||5th month||6th month|
|Brochures & Templates||$750.00||$1,350.00||$600.00|
|Promotions Costs Total||$3,900.00||$3,200.00||$650.00||$1,700.00||$788.00||$360.00|
|Public Relations Costs Total||$1,308.00||$9,620.00||$0.00||$7,503.00||$6,654.00||$1,572.00|
|ESTIMATED MARKETING TOTAL BUDGET||$18,499.00||$23,163.00||$8,358.00||$13579.00||$10,651.00||$6,893.00|
Table 3: Marketing communication budget
Source: created by the author
Analysis of current advertising practices one of the organization
The company Woolworths uses several advertising techniques as a part of their communication mix for increasing sales, market share, customer base and launch new products in the market. Advertising is necessary for rolling out the messages to the target customer segment in an efficient manner. Although the advertising techniques used by the company is quite expensive, the company has full control of the delivered information to the customers. This is why Woolworths uses multiple advertisement practices for targeting a wide spectrum of customers and thus is extremely effective. The two major practices used for advertising their products are as follows.
This type of strategy helps the company sell its products to the customers face to face. It is generally carried out along with direct marketing as customers can directly interact with the sellers and get a demonstration of the products before purchasing them. This strategy also helps the sellers directly communicate and interact with their target segment and can provide suggestions and recommendation based on the needs of the customers (Hackley, 2018). Additionally, the sellers can even emphasize the product value and point out the benefits the customers can gain from them. This increases the overall sales for the seller as more customers can understand the product benefits due to direct interaction and feel secure about purchasing a product.
Discounts and Promotion
These are additional strategies implemented by the company for promoting their products to the customers through paid communication. The discounts of the products that the company offers the customers are well represented through this promotional strategy and can be done in the form of coupon rebates and percent-off deals. Even in-store signs and exterior hoardings are used to alert the customers about the offered deals they can receive from purchasing these products (Cummins et al., 2016). These types of strategies help to increase the flow of cash and also clear out unfinished stocks from the company inventory. When utilized with proper planning, this strategy is ideal for attracting a large pool of customers and increases the overall revenue generation for the company.
Reflection on the extent to which their advertising is standardized or adapted to meet local market conditions.
The advertising practices used by Woolworths certainly meet the demands and standards of the local market conditions of Australia. The study of the local market conditions indicates that the Australian population are more willing to buy products if they are able to get a face to face demonstration and also get a clear idea of the benefits that the products might offer them. This is why personal selling is such a popular idea of advertisement in the local market. Additionally, the discounts and promotional methods used by Woolworths has also turned out to be effective in gaining the attention of the local customers as rebate coupons, and percent-off deals attract the target customer segments. However, these discount offers are adapted from region to region based on the buying capacity of the customers. Not all regions of the Australian market have equal purchasing power and economic background. That is why the discounts offered, and promotional activities vary from region to region based on market trends, demands, purchasing power and also product preferences.