Sometimes it becomes highly irrelevant what qualities a particular object possesses, wildly since social, political, technological, and economic change old rules are spinning out of fashion, and the next generation of managers is going into a future shock (Schultz et al., 1993). In the current simulation, the objective was a similar challenge to the manager of today, the target being a communication plan for “Olive,” a London-based furnishing retail chain with an over five billion dollar figure in annual revenues. With its directive to enter the US market, the first step was to design a communication plan with given statistics and reports collected all across various fields in the United States.
In the first session of April 2X04, the target audience based on demographics and psychographics was chosen. In an age group of 35-44 and 45-54 years, annual household income targets were $50’000 to $75’000 and $75’000 to $100’000. The household size was taken from 3-4 due to the nature of the product. Olive’s sales showed the maximum percentage of consumers within the same age brackets chosen. 36.67% sales in the age bracket of 35-44 group, 30% to the 45-54 group, and 15% to the 25-34 group. The Franklin Focus Meter showed that with the given demographics, the focus meter ranked up to 60%. The psychological profile was chosen on a research basis. Olive products are generally within the comfort and price of the average person as well as the price-conscious consumer. The sales also showed 32% of the sales belonged to the Self-Actualizers and 36% belonged to the Price-Taggers. The target psychological segment was Tightrope Walkers and Self-Actualizers who valued style to a great extent. Thus the positioning statement, to be decided in May 2X04, was “Style and comfort at affordable prices.” The global positioning for Olive had a common ground of style and comfort. The Franklin McCarthy report indicated affordability, style, and comfort as the key attributes that customers look for while furniture shopping. Something that is affordable, stylish as well as comfortable would be the true solution for an average, day-to-day furniture shopper. Anita Winters also attributes affordability to be the heart of Olive’s positioning. For the budget allocation as decided in June 2X04, the total spending was 35% for Advertising, 10% for Sales Promotion, 25% for Public Relations and Direct Marketing, following the advice of William Chambers, and 5% for Online Marketing. The decision was optimum in the case of Advertising but did not seem to be so in the case of public relations. William Chambers’ advice, as well as the ground that the field of public relations is quite underrated and quite a misunderstood discipline (Brannan, 1995), served as the reason behind raising the budget allocation for Public Relations. The sales promotion activity was chosen to be a House Party which was chosen for the discounts and the repeat purchases.
Research heavily influences the integration of marketing communication. Research helps generate a suitable profile for targeting segments of the population. For a company like Olive, demographics, psychological profiles, and a survey taken over the choices of the consumers is the key decision-maker for the future prospects. Franklin Reports, the European demographics strongly influenced critical decisions in the simulation. The impact of segmentation, targeting and positioning on the IMC of Olive was key to its launch in the US. As long as these factors were in accord with each other, speaking in one voice, addressing the positioning on the basis of its target audiences and segments, the chance of Olive’s survival in the US market remains high.
While choosing affordability as its positioning platform to the audience, the positioning statement was taken in consideration to the target audiences, which were the Tightrope Walkers and the Self-Actualizers who valued style. Self-Actualizers were self made and understandably appreciated value for money. Tightrope Walkers gave style its due regard but also had a reasonable portion for the money. It is important for all elements in an IMC plan to speak in one voice, as seen in the example of AFLAC, the supplemental insurance provider. Their target audience bears employees who bear insurance but lack sufficient coverage. AFLAC’s communication plan spoke in the unified voice that addressed the issues that were holding down its market awareness (Duncan, 2004). In the case of Olive, all the core elements of the IMC plan spoke on the same plane. The positioning of ‘style and comfort’ was in accord with its target audience of the age group of 35-44 years who bore a household of 3-4 people with an income of 50’000-75’000 dollars per year. Self actualizers, the self-made, value-the-money customers ranked very high on brand consciousness and very high on style. Tightrope Walkers also gave style a very high priority and gave a medium sensitivity to price. In positioning the product, these choices had great value to the sales. The advertising, marketing and public relations were chosen on the basis of the same target so that the perceived image of the product enables the growth and expands its utility. The result would be Olive’s full fledged establishment across the US market with a direct approach and a clear image for the public to embrace as the stylish, comfortable and affordable furniture for all.
References
- Brannan, T. (1995). The Practical Guide to Integrated Marketing Communications. London: Kogan Page Limited.
- Duncan, T. (2004). Principles of Advertising and IMC. New York: McGraw Hill.
- Schultz, D. E, Tannenbaum, S. I., Lauterborn, R. F. (1993). Integrated Marketing Communications. New York: McGraw-Hill Professional.