woensdag 23 november 2011

Unit 9; Lady Gaga, Magnum and Ice Galore

Unit 9; Ice Cream Galore        Lady Gaga & Magnum
 




Unit 9 P1 07-08-2011

1.       Describe the purpose of the promotional mix and the different elements

2.       Describe the aims and objectives of the 2 chosen companies

3.       Explain how the two chosen companies use the promotional mix to achieve their objectives

4.       Explore how competitors of your chosen companies use the different elements of the promotional mix.

5.       Explore with segment of the market your companies are aiming at

6.       Do research to find out how promotional methods have been adapted to take  the budget into account

7.       Describe how communication models can influence the promotional activities of the two chosen companies.

Introduction of the products

Lady Gaga, in 2008 lady gaga became World known with her album the Fame. She is some kind of new Madonna, only much bigger and better. She shocks the world every time when she cannot get enough attention. She is always standing out en does everything for attention.

Magnum is a product of the Ola Group. The magnum; classic, white and almond are world known ice-creams. Nowadays they have expanded the magnum product line with many different versions like; magnum gold and magnum temptation fruit.


1.       Advertising is a paid form of non-personal presentation and promotion. Advertising is one of the most common forms to promote a product of services. You can think of different kind of things with advertising. Businesses can advertise in e.g.; newspapers, Magazines, Television, Cinema, Outdoor advertising, internet.

Magnum is doing a lot with advertising. They started the product magnum with three different versions. Milk, white and noir chocolate. They expended their product line with many more different types of magnum, later on. They had the 7 sins line and now even a gold one.
In all the examples given above is Ola advertising for magnum. Sometimes it seems that you cannot get around of magnum. In the cinema and on television they have really great commercials, which are comparable with commercials of perfumes. Magnum is one of the most exclusive products of Ola. It is also an expensive ice-cream but they don’t cut costs on advertising.



Lady Gaga is not spending much money on advertising. Lady gaga is really focused on free publicity. For example she once was the head director of the newspaper Metro. Metro is a free newspaper gettable on every train station in the Netherlands. She didn’t pay anything for it probably received money but the paper was filled with lady gaga.



2.       Personal selling, many businesses employ a sales force. These employers have one task and that is selling. A sales person or force is very effective but the costs are very high.
Magnum sometimes has a kind of sales force, more promoters actually. These people are promoting the product magnum mostly in big cities.

Lady Gaga, don’t need a sales force. Gaga is a person who made herself a product or brand. So she has her own workers force with managers en marketers but there is one person who needs to sell herself and that is; Lady Gaga herself.

3.       Sales promotion actually means that a business gives a discount on a product to promote their product. One of the most common is the Buy One Get One Free (BOGOF).

4.       Public relations

Magnum does also a lot with public relations. They have special magnum parties and conferences.  For all these things they need to promote it. Magnum as a special public relations department that makes sure that the public knows about these meeting.

Lady Gaga does a lot to bond with her public relations. Her fans are the people who are making her and she needs to keep in touch with her fans. This can be achieved by concerts awards ECT.

5.       Sponsorships, is when a business pays to be associated with a particular event e.g. Jupiler and the Jupiler league.
Magnum is not sponsoring anything at this moment.

Lady Gaga isn’t sponsoring anything. Nevertheless a lot of businesses want to sponsor lady gaga.





2

Aims and objectives of promotional mix
 a business has to set clear objectives that are measurable. The objectives have to be measurable so that the business can know or a particular objective is achieved or not.
Magnum, for Ola it is far more easy to set measurable objectives.  With the promotional mix that Ola has made for magnum is one goal in the centre; sell more magnums. This main aim can be achieved with different objectives.

-          Increase product knowledge, Ola wants more product knowledge. This because many people think that ice-creams are un-healthy. Especially the magnums with their chocolate and cream inside. Know they are investing money to spread a message that it is ok to eat a magnum. The magnum site is an example, here is all information about the ingredients and why ice-cream (magnums) are not un-healthy.

-          Improve brand image, Ola is putting magnums as their most exclusive product. There is some kind of luxury hanging on these ice-creams.

Lady Gaga, it is a bit hard to say what the aims and objectives are of the promotional mix for lady gaga. I believe that it is important for lady gaga to improve her brand awareness. When more people know about her more people will like their music. Her biggest income comes out of concerts and parties. These days’s it is hard for a musician to sell cd’s because everything can be downloaded for free. This is why the aim is to get more and more brand awareness; everybody must know lady gaga....





3

How do they achieve their objectives with the promotional mix
Ola, to increase the product knowledge of the magnums they do several things. On the website of Ola is lots of information about the un-healthiness of ice-creams in general. Funny facts that people will remember. Then on the Magnum site they put ingredients information for each single kind of magnum. Also on the packaging of Magnums is information about the ingredients.
Magnum is one of the most exclusive products of Ola and Ola wants this. If you only look to the commercials on TV and in the cinema, you just know it. The Magnum commercials are insane, sometimes seems to be more than a commercial. There is always a beautiful woman in the commercial and the whole commercial has an exclusive vibe.

Lady gaga, wants to be world know and spread her music as much as possible. She is achieving this with a lot of different technique. One technique is free publicity. Gaga is always saying something that shocks the world. This is very handy because the whole world (media) will talk about this. Newspaper and the internet are filled with Lady gaga says. Everything that isn’t basis or is different than everybody else is always noticed. Lady gaga is using this fact so-much en creates some kind of person that is really different then ‘normal’.



4

Which different elements of the promotional mix are used by competitors?

Ijsboerke is standing up against Ola. This competitor is using different elements of the promotional mix. They are not as well known as Ola but are a big competitor of them.  

Katty Perry, is the competitor off Lady Gaga. Their music have one thing in common; as commercial as it can be. There are both active in the same categories; pop Music and youngsters as target Group. On the 18th version of the MTV music awards they both where nominated for; live, pop, best singer and best single.



5 Witch segment are they aiming at?
Ola is aiming to the women from 18 until 40 years old. Women are famous about their love for chocolate and this is one of the things Ola is using to target the woman. I personally do believe that they are aiming at the women because men will simply follow.

 Lady gaga,



6 Do research to find out how promotional methods have been adapted to take the budget into account

7 describe how communication models can influence the promotional activities of the two chosen companies.

P2
1. Describe the marketing mix for one of the selected companies.


Lady gaga
lady gaga has the youngsters as target group. Mostly girls that are searching for their identity. Everybody has a different opinion; you cannot say that her music is good as a fact. What we can say is that Lady Gaga is a very good marketer. Lady Gaga has fitted herself an extreme image that makes sure everybody will notice her. The make-up, outrasious clothes and the things she say is all marketing.
The extreme image is a risk but also a very clever idée. The music business is a very hard business. Lady gaga became in 2 years worldwide known, this is a really short time to achieve this. Because Lady Gaga stand outs and is different than anybody else and that why she became so popular in so short notice. 


Product range
lady gaga is offering many products but the main product is of course lady gaga herself.  Besides the music that lady gaga is selling the also sells clothes and different other items that has some kind of connection to lady gaga.


New product development, product and market trials


Quality, style and associated services and benefits in promotions
lady Gaga and her extreme image. So the perception of her customers/consumers is an extreme. The products that she is selling need to say one; lady gaga. The clothes and pastiche need to look like the clothes and hair of lady gaga. Lady gaga has a very good site where customers can give comments on the products. So that the company can check the opinion of the customers.

Product features and variations
Lady gaga is one of the best marketers and does a very good job to be different than her competitors. Lady Gaga is selling a unique image and all her merchandise products are also unique. This increase customer for Gaga. Her name, clothes, image, and



Quantity and timing of promotional activity
the timing and amount of promotional activity is a key factor for the product’s success. Lady Gaga is doing a good when it comes to promotional activity. Nevertheless we could get tiered of lady gaga and all the things she say’s so she should be careful.




Price

Importance of price
Price is one of the most important and far-reaching variables that businesses control. Pricing decision affect profit, volume, share of market and perceptions that customers have about the product. The price will create the only income every other thing of the marketing mix will cost you money.
It is world known that well known people mostly make a lot of money and so is Lady Gaga. So we can say Lady Gaga has set a good price for almost everything.

Factors affecting price and pricing strategies
there are three factors that can influence prices; cost, competitors and demand. With Lady Gaga it might be a different story. However she still needs to please her fans.  Lady Gaga is setting her price by demand pricing. This is when a company set a price by the demand and disposable income.  Lady Gaga is giving concerts all over the world. In any country is a different culture and disposable income. So we might need to pay 60 euro’s for a ticket and in India 10 dollar.

Place
Lady gaga is the product. So every time it is lady Gaga that has to be delivered at a customer. It will range whether what is the easiest way to get there. She will use planes but also coaches to get her from concert to concert. Lady Gaga’s health is very important on these tours so all the transport has to be good and by Gaga’s demands.



ROLE OF INTERMEDIARIES- push and pull
intermediaries are independent organisations involved in the promotion, selling and distribution of a firm’s goods to the end users of its products and services.

Scenario

Business organisations often use professionals from specialist agencies to help them produce an effective campaign that will achieve the promotional objectives. A good campaign must also use the right media. You should analyse the contribution of professional advertising agencies and the use of different media in a current national promotional campaign.

Activity 1 to cover P3

Prepare a short, illustrated report in which you:

Explain the role of advertising agencies and the media in the development of a successful promotional campaign. In your explanation you should consider the following:

1.    Describe the different possibilities when hiring an advertising agency
advertising agencies can have a large role in creating and developing advertisements for large companies. Little companies mostly do it by themselves to cut in costs.
There are several ways to use an advertising agency and I will explain all the ways.
In-house advertising, this is advertising being made in house.  
‘full services’, this is when an agency will provide a complete advertising service encompassing creative work, production, media planning and buying

limited services
this is when an agency is hired when they are specialist in some area. For example prints, promotional bags or TV.

There are different services that an advertising agency can provide or contribute to the wanted success.


Media buying
An advertising company will decide the best advertising options for a particular product. A company can choose for this option because an advertising agency is specialised in this area. An agency will do everything to be sure that the chosen advertising are the best options for the product and her target group

Advertisement design
An advertising agency will find a way to improve the brand of a particular company. Mostly they will improve the design of the company’s logo and give the whole advertising a different look.

Advertising production
This is when an advertising agency does everything to be sure that there won’t be extra costs. This is done for TV promotion. This is very expensive to broadcast but also to create. The agency will work with the client to create a concept that the client is happy with. This will be on a storyboard, this is something like a comic that spell out the storyline. After an approval of the client the recording and editing process will start


Engaging the target audience
advertising agencies can help you with the target group of a company. It is very wise for a company to know everything about their target group. In this way they can create the most efficient promotion and this will result in fewer costs. An advertising agency can help you with almost everything when we talking about a target group. We can think of market research of field marketing activities.

2.    How professional advertising agencies can contribute to the success of a marketing campaign.

An advertising agency is not for every company. If a company considers about hiring an advertising agency, the company should consider the following point;

§  cost

§  expertise

§  time

§  accountability

§  quality

Outsource recourses are expensive, nevertheless in-house employees are also not for free. The business need to weight the props and the cons of each choice. An in-house employer will know the company very well. On the other hand an agency will have a lot more experience and need to provide a good quality.
An in-team will know more about the company and they will work within the company. Therefore they know the idea behind products and services. The will ‘feel’ what they are selling en therefore might make a promotional campaign of high standards. On the other hand in-house people would like to perform well. Therefore the might choose for the way’s that had success before. In this way a company will always be playing safe and that’s might not the idea of running a company. An agency may be able to create a more creative publicly campaign that add something new in the company.


Activity 2 to cover P4

Explain the reasons behind the choice of media in a successful promotional campaign. In your explanation you should consider the following:

1.    Explain the reason why certain media methods have been selected;
the most important reason why certain media methods have been selected is the target audience. In every promotional campaign should the target audience be at the centre of this campaign. This is logic because a company would like to target their target audience with the promotional campaign.
Therefore an agency will start with defining the target audience. As second the will consider on how to reach this target audience. This second action considers a lot possible resources that can help. A lot of questions will rise when we ask how to target a particular target group?

o   Where is our target group located

o   What are the interests of our target group?

These are important questions that need to be answered so that the company will have success. For example a commercial for beer won’t be efficient under a soap that is loved by women, unless it is beer made for women of course. In general the answer to the question; why are certain media methods used, is simple. Because these media methods fits the target audience.



2.    How the selection and use of media contributes to a successful campaign.


1.    Budget – cost versus coverage
we will start with the budget. The budget has a lot to do with a successful campaign. Actually the budget will determent witch media methods are still available. For example; small company will not have the budget for TV-commercials.

2.    Promotional/ campaign objectives
the objectives are also a big issue in the choice of media and therefore the promotional objectives contributes to a successful campaign. The media that is chosen must ensure consistency with the overall objectives.
Therefore the objectives are a big deal. For example if a company wants to create 50 per cent brand awareness amongst the whole Dutch population. They should consider a TV-commercial. If a local car-garage wants to sell their cars they should consider a local newspaper. The choice of media revolves around three main issues:

1.    coverage – the percentage of people within the target audience who might see the promotional message during a certain time period

2.    frequency – the number of times people within the target audience will see the message in a certain time period

3.    media impact – conveying the product characteristic effectively; the message should be seen when the target audience is open to persuasion

3.    Target audience
to reach the total target audience the agency will need budget that is too high for every company. Nevertheless a company want the most out of a campaign because the company invests money in this campaign. Therefore an agency needs to find a balance between:

a.    spreading coverage very wide, but with limited frequency, meaning that there are limited opportunities for the audience to receive the message

b.    Narrowing the coverage and increasing the frequency (for example, huts advertising on one TV station but with the advert appearing within each advert break.

4.    Focus of appeal
an advertising agency has to decide how best to appeal to their target audience. A well known fact is that there are many different products. Each different product has a different target group and this will be a big factor in the choice of campaign. With a product comes a certain kind of necessary information to provide. For example a new sports car will be promoted in a car magazine. The advert needs all kind of technical information about the car and how it’s made. But the new product line of clothing whole seller H&M just need a picture and a price. The focus of the appeal is different for each different product. We can segment three different kinds for focus of appeal

1.    Intellectual – the message of the advert will be that it creates benefits in the future, smart-buying. We can see this often in investment adverts; pay now, be rich in the future.

2.    Emotional – this is when the message of an adverts plays with the emotions of people. For example the IFAW with their horrible commercials with hearten animals. When you see the commercial you will feel bad and they aiming on so bad that you will support them with money.

3.    Empathetic – the message of empathetic focus of appeal will be a solution for a problem. For example the problem to be too fat. The commercial or advert will connect by playing on the issue that you are too fat. But they follow by providing a solution; buy our product and you will be skinny.





5.    Timing
time is an important thing to be sure for a success. For example with Ice Galore when they starting their campaign at the end of the summer they have missed their best season. This would be very bad of course. So for success you need a realistic time planning.

6.    Circulation
research had to be done to find out how many people read, see or hear a particular publication. For example in the Netherlands is Radio 538 a much more popular radio station than Radio Barneveld. It might be more expensive to promote on Radio 538 but you will reach many more people.

7.    Readership
readership will increase by lending. For example a magazine or newspaper. When I have read it I might give it to a friend of mine. This will increase the readership from 1 (me) to 2 (my friend and I).



The role of the internet
disintermediation
with internet comes many advantages. One of these is that wholesales can operate much easier. This has sometimes as result that things can be sold cheaper. This is because by internet it is possible to eliminate one suppler. For example with my own company, Xclusive Promotionsi s a wholesaler that sells directly to the customers and order it directly by a wholesaler in china.

Direct marketing
more and more of the world population connect with the internet. So more and more is the reach for direct marketing. With internet it is possible to create a much closer contact with costumers. And this has effect on the promotional activity
businesses can gather data about their customers far more easy. It is rather simple to collect data by internet. In this way you can segment your customers. When the customers are segmented, is it possible to improve you promotional activity by personal group adverts. So when somebody bought shoes on your site you can send him or her a direct mail about you new shoe collection.
- Businesses can maximise their profits by removing intermediaries (as shown above)
- a business can add as much information about the product as they would like. In a folder simply isn’t enough spaces and you cannot expect that a salesperson knows all the details
- all businesses can appeal to international customers, and may easily produce adapted versions of their websites for specific regions
- the business own website get more and more important. So it is needed to invest more in your own website.

One-to-one communication
mostly when you buy something online and are forced to leave your email address. Normally there is some bottom to decide whether you want to receive information about this company. Mostly this is a pretty hidden bottom and people will allow the company to send them information.

P5
background/ introduction
ice Galore is an ice cream company that has decided to launch one of its internationally successful brands in the Netherlands. The market for ice cream is still growing stronger because of the longer seasons, higher temperatures in summer and the tendency for consumers to indulge themselves in rich and luscious ice creams.

1 a summary of the aims

The promotional activity should encourage consumers to sample the different tastes of Ice Galore’s range of ice creams while supporting the marketing aims of beginning to establish the brand name and characteristic of the Ice Galore brand name and characteristics of the Ice Galore brand.

The activity should provide:

-          1 million sampling opportunities in June July and August

-          25 % of all consumers who try the products should be able to recall several characteristics of the ice galore brand



2 and explanation of the choice of media

Social media – face book
Most young adults are active on Face book, I cannot see a way that an ice cream company is on twitter. In mine opinion are Face book and Twitter the best ways to promote your company, Linked In is more for your own business network and you-tube is for everything.


Twitter is a social media that needs to be maintained daily to get enough attention. Face book is more easy, actually Face book is offering you a second ‘’free’’ website. This had many advantages when it comes to search machines and targeting your targeting group.

Train stations
In the Netherlands are trains very popular. On the train station are possibilities to promote. This creates many opportunities because you can catch a lot of people with one billboard.

News papers
Free things are things that all Hollanders will like. So 2 smart newspapers are making a ‘free’ newspaper with lots of adverts. These newspapers can be found on almost every train station in every part of our little county.

Free samples with bags
this will be a bag of polypropylene and this is a very nice material. We have chosen for a goodie bag to deliver a total package. Ice Galore is nowhere in the Netherlands. So with this campaign we need to make the right start. In this bag will be and box will all the different flavours that Ice Galores have. Also there will be a form with information about all the products Ice Galore’s have.



3 an overview of the costs of this campaign

Budget
€ 750.000,-
Goodie bags
€ 500.000,-
Newspapers
€ 100.000,-
Train stations
€ 140.000,-
Social Media
€ 10.000,-
Total
€ 750.000,-



4 an explanation of your campaign tactics
we will start our campaign with Social Media. This will make a lot of fuss in the beginning and this is what we want. People need to talk about is on Social Media to get the most out of Social Media. We need to invest a lot of time in the beginning so that the rest will follow.  This will be the start of our promotional campaign so we will start with our Social Media on the first of April.
On the 30th of April we will go to Amsterdam and Utrecht to celebrate the Queen’s Birthday on insane big Festivals. Here we will hand out our promotional Bags. Only in Amsterdam will be 800.000, so with Queens’s day we will have a nice hit on brand awareness. All of our chosen festivals are in the summer and actually is one big party. Our target group will love to have some free ice-cream.
1, 15 and 25th of May we will put an advert in the Spits and Metro. 5th May is the freedoms festival in the Netherlands. May will be our most busy month of the promotional campaign and this is to be sure and at the end of May everybody knows about Ice Galore.
In June and July we will slow down our marketing campaign because the brand awareness will be good at this time. On the 2nd of June we will have another Festival called; Obsession Outdoor and in July we will put advert on the train stations. This will be the last thing of our campaign and is just to keep involved.







5 a promotional plan

Month
Date
Activity
Amount of people
April
1st
Social Media
As many as possible
April
30th
Queens day, Amsterdam and Utrecht
1.4 million
May
5th
Freedom Festival, Wageningen, Zwolle and Amsterdam
1.1 million
May
1, 15, 25
Newspapers, Metro and Spits
200.000
June
2nd
Obsession Outdoor, Bovenkarspel
15.000
July
Whole month
Train stations
180.000
August
Whole month
Train stations
240.000







6 a summary of the use of media, materials and examples of promotional materials and why
7 the promotional materials which you have used for your campaign



}  Target group and different media
Our target Group are Young adults and 65% percent of these target group need to be women. Therefore we need to use the media that our target group is using.

}  Social media
Social Media is a very nice start for our promotional campaign. This is a new way for advertising and everything that is new is used by young adults. Social Media is therefore filled with young adults. Because everybody has their own profile on Social Media it is easy to be sure that we will target our target group.  Comes with it that Social Media is rather cheap if you compare it with different marketing techniques.

}  Festivals with goodie bags
Young adults love Festivals. There are a lot of very nice festivals that attack a lot of people in the Netherlands. One of the great things is that most festivals are free for entry and this is why a lot of people will come. Mostly these festivals are there for the young adults.
We have chosen for a goodie bags, with a box that includes all flavour off Ice Galore. These bags will be easy to handout on these big festivals. Another advantage is the reuse of these bags. The bags are made of Polypriprolene and this material has a more luxe look. Next to that these materials have a much longer life-time than for example; plastic or paper bags. Because of all these things people will reuse the bag.
For the examples we need the most money. This might seems weird but don’t forget the demand of 1 millions sample opportunities. We need to have enough samples and what better way to promote you own product is there?





}  Train stations
Most young adults will be  or on their last years of school or will be just started working. In the Netherlands they have a lot of issues with traffic jam. Especially in and around big cities it is awful.
Therefore many people are using the public transport. Most young adults are also using the public transport. Especially the women sex is using the public transport. This fits perfect in our target group and there we are using the Train stations.

}  Newspapers
The Metro and Spits are free newspapers. These newspapers are free because there is a lot of advertisement in it. You might think that people will dislike the amount of advertisement and will not read these paper. This is a wrong assumption because Dutch people love free things.
These newspapers are well known in the Netherlands and are available on every train stations. This is a very nice way to spread our marketing camping over the whole Netherlands and hangs together with the train stations.  Our target group are on the train stations and will all read these newspapers.




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