amb202 imc client report lucky duck · there are four potential competitors in the same industry...
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AMB202 IMC Client Report Lucky Duck Café & Bar
Student name and number: Qinxiong Zhang (George) N9555889
JunYi Yu (Mark) N9570446
Jiejing Liu (Iris) N9649921
Tutor name: Biba Wythes
Tutorial time:4.30-5.30pm
Word count: 1378
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Table of Contents
Table of Contents ............................................................................ 2
Executive Summary ........................................................................ 3
1.0 Introduction: Client proposal and objectives solved ............... 4
1.1 Objectives ........................................................................... 4
1.2 Potential Competitors .......................................................... 4
2.0 Situation analysis: SWOT, PESTE & Audit ............................. 5
2.1 SWOT analysis ................................................................... 5
2.2 PESTE analysis ................................................................... 5
2.3 Audit analysis ...................................................................... 6
3.0 Target Audience ....................................................................... 7
4. 0 Branding and/or Positioning Strategy .................................... 9
4.1 SIVA Principles .................................................................. 9
4.2 Branding strategy .............................................................. 11
4.3 Positioning strategy ........................................................... 12
5. 0 Marketing Communication Strategy ..................................... 13
5.1 Campaign Objectives ........................................................ 13
5.2 Message Strategy .............................................................. 14
5.3 IMC tactical strategy ......................................................... 15
5.4 Campaign Implementation ................................................ 17
5.5 campaign Evaluation ......................................................... 18
6.0 Marketing Materials ............................................................... 19
7.0Reference ................................................................................. 22
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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.
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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 Potential impact – immediate or long term? Lift coffee Immediate impact. This store is close to Lucky
Duck, and they also selling product like coffee. Pear Cafe Bar 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.
Starbucks Immediate impact. Although Starbucks is not around Lucky Duck, it’s brand awareness makes customers feel at ease when they purchasing.
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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.
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(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
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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.
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-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, 18 - 30 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).
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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.
4. 0 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.
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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
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Solution 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.
Giving customers the power to choose a product that personally suits them (Grewal et al,2015, 409).
Information 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.
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).
Value The loyalty card can be offered for customers and the advantages of being membership should be clearly presented.
Membership card has a positive impact on maintaining the long-term relationship between Lucky Duck Café & Bar and customers
Access 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.
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
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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.
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.
Image:
-‐Ducks
-‐Black and white
Relationship:
-‐Freedom
Personality:
-‐Comfortable and Artistic
-‐Delicious and Energy
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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.
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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
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senior generation (Gen X), the teen generation (Gen Y) and couples who deal with self-
related 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 Evaluation
-‐ 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.
-‐ 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 Evaluation
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.
-‐ 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.
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-‐ Both positive and negative
comments also can be exposed though world-of-mouth.
iii. Order online Description Evaluation -‐ 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.
-‐ 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 Evaluation
-‐ 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.
-‐ 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 Evaluation -‐ 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
-‐ Market day offers a centralized shopping place for customers to purchase items. It helps Lucky Duck Café & Bar increase sales.
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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 Quantity Duration Cost(AU$) Balance(AU$)
4000
Outdoor advertising -Flyers
400 3 months 620 3380
Social Media
- 4 months 1200 2180
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Online Order - 2 months 280 1900
Loyalty Card 200 2 months 320 1580
Market day 5 3 months 1500 80
5.5 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.
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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.
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1. Flyer
2. The function of online order
3. Loyalty card
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7.0Reference
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31(6), 310-320.
Dev, C & Schultz, D. (2005). A customer-focused approach can bring the current marketing mix into the 21st century. Marketing Management. 14(1), pp. 16- 22 Facebook. (2017). Facebook newsroom. Retrieved from https://newsroom.fb.com/company-info/ Grewal, D., Levy, M., Mathews, S., Harrigan, P., and Bucic, T. 2015. Marketing. North Ryde: McGraw-Hill Education Pty Ltd Kallas, p. (2017). Retrieved from https://www.dreamgrow.com/top-15-most-popular-social- networking-sites/ Peter, J. P., Olson, J. C., & Grunert, K. G. (1999). Consumer behavior and marketing
Strategy (pp. 122-123). London: McGraw-Hill.
Pickett-Baker, J., & Ozaki, R. (2008). Pro-environmental products: marketing influence on consumer purchase decision. Journal of consumer marketing, 25(5), 281-293.
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Queensland Government. 2014. “Benefits of Facebook for business.” Accessed August 24, 2016. https://www.business.qld.gov.au/ business/running/ marketing/online- marketing/using-facebookto-market-your-business/ benefits-of-facebook-for- business. 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.