Answer

Communicating the Value

Marketing is one of the core activities undertaken by organizations. According to Blakeman (2018), marketing is the strategic process through which an organization promotes the buying and sale of its services and products. It entails processes such as advertising, promotions, selling and delivering the products and services to the final consumer. Juska (2017) seconds this definition noting that marketing focuses on communicating the value proposition of an organization and managing the resultant relationship. This is done through the application of theories such as customer relationship management which ensures that the relationship between the customer and the company is not only mutually beneficial but also sustainable. This paper evaluates important concepts and topics that facilitate the communication of value to customers and consumers. The key topics covered include integrated marketing communication, advertising, communication brief and branding strategies.

4.1 Decisions

1. Integrated Marketing Communications

Integrated Marketing Communications (IMC) denotes the process through which an organization integrates its promotional tools to ensure proper coordination of its communication efforts with the intent of maximizing cost effectiveness and increasing sales. Solomon, Marshall and Stuart (2017) clarify that IMC emphasizes the need to enhance the coding and decoding of promotional messages in a manner that enables the brand to communicate consistent, coordinated and clear communication to the target consumers and audiences.

2. Five Benefits of IMC

• It ensures consistency in presenting the same message across all communication channels. Such an approach to sharing promotional messages reduces instances of communication that is confusing to the audiences. This reason explains why brands opt to use a similar tagline across different channels namely, print advertisements, social media, and other commercials.
• IMC ensures clarity of message. Using different promotional tools and channels to communicate a similar message has the effect of reinforcing the communication. Rather than sharing different messages, disseminating the same tagline across all channels will enhance the clarity of communication.
• IMC enables multiple placement thus increasing visibility of the promotional message. Patti, Hartley, van Dessel and Baack (2017) explain that not all the customers have access to advertisements or print media, others use social media for their daily communications. Therefore, reaching these diverse customers means using diverse communication channels.
• Carefully linked promotional messages guide the customers through the buying process. Some of the channels have reminders and innate features that enable them to communicate special offers and update information on promotions. When done correctly, IMC guides customers into making the right choices. This increases their post purchase satisfaction.
• Consistent communication across different channels nurture long term relationships between brands and customers. For instance, the channels provide links to retail outlets and online purchase points. In the process, the company accesses information on their purchases. Such database is important in rewarding customers and conducting direct marketing initiatives. This enhances the relationships between the customer and the brand.

3. Two important IMC Initiatives for this year

The two most important IMC initiatives for this year are digital marketing and advertising. Luxton, Reid and Mavondo (2015) explain that advertising is important for marketers since it is a paid form of reaching out to customers. It disseminates messages to customers using mass media such as magazines, radio, newspapers and televisions. These channels are still effective in reaching the elderly consumers above 35 years of age. On the other hand, digital marketing uses the internet to disseminate messages to millennial and tech savvy consumers. The message can be communicated through websites, social media marketing, and search engine optimization. These two initiatives are important to marketers since they help create buzz among consumers. This translates to increased visibility of the brand, high sales volume and profit margins.

4.2                       Critiquing Two Advertisements

Figure 1: Effective Advertisement (Nike’s Ad) (Nike 2019)

Good Ad from: https://www.youtube.com/watch?v=hOVkEHADCg4

The advert was aired on television and social media. The advert by Nike for the Women’s World Cup for 2019 features celebrities such as Sam Kerr of Australia, Andressa Alves from Brazil and Lieke Martens of Netherlands alongside the 10-year-old Makena Cook.

1. Description and Critique of Nike’s Ad

Nike’s 2019 advert for the Women’s World Cup can be described as one of the best adverts of the year. First, it was classified by Acuity (2019) as one of the most viewed video adverts of the year. Second, its appeal to the audiences is derived from its perfect timing of a national event where the USA played against Netherlands in the finals of the Women’s World cup title. Third, the advertisement continued to capitalize on Nike’s sustained reputation of endorsing and championing for self-improvement and eradication of social issues using the ‘Dream Further’ slogan. A critique of this advert will be guided by the following headings:

• Target Audience

Given the timing of the advert and its association with the Women’s World Cup, it is arguable that the primary target market for the advert was women and young girls. It encourages these audiences to dream further. It is important to note that as much as women and girls are the main audience, the ad attracted both genders thus reaching a wider audience (Mulcahy, 2019). It sought to encourage society to empower and support women.

• Communication Objectives

The advert’s slogan was ‘Dream Further”. This was complemented by Nike’s tagline stating ‘Don’t change your dream. Change the world. Just do it” (Nike, 2019). The last part of this tagline represents the brands motto, which means that the communication objective was to motivate the audience to pursue their dreams of changing the world and no matter the obstacles, they had to do it. Analysts further noted that the communication was not only aimed at showing support for the World Cup but also a tribute to the winners of the game.

• Overall Communication Strategy

Nike used the public relations (PR) strategy to build and reinforce awareness of its brand among ideal customers. This strategy worked by affirming Nike’s commitment to empowering women and young girls to achieve their dreams.

• Positioning Statement and Key Messages

The position statement is ‘Dream Further’ while the key message is: Don’t change your dream, instead change the world. Just do it”.

• Communication Tactics

Nike capitalized on two communication tactics. First, it used the hype for the Women’s World Cup to reach out most of the target audiences. Secondly, it used international soccer stars such as Crystal Dunn, Andressa Alves and Lieke Martens (Mulcahy, 2019). This is an equivalent of celebrity endorsements of the Nike brand.

• Communications Mix

Nike’s communication mix included sharing the video as commercials on traditional media especially the television. In addition, it shared the video on social media. This helped make it viral as fans shared across different social media platforms ranging from Facebook, Twitter to Instagram.

• Creative Execution

The advert can be termed as creative because it captures social issues facing women and makes them the center of the advert rather than prioritizing the Nike brand. In the process, it sends a secret message on how Nike supports women’s dreams. A part of the video shows a frustrated 10-year-old Makena but due to their persistence, they score a deserving goal. The advert therefore emphasizes the need for persistence when pursuing one’s dream.

• Evaluation

The Nike’s Dream Further advert was effective since it went viral. This made it one of the most shared and viewed advert in the USA. As a result, it reached majority of the viewers. This helped share and send a subliminal message that, regardless of age, Nike is the best sportswear for anyone who wants to dream further and change the world.

Figure 2: Ineffective Advertisement (Dove Lotion Ad) (CNN 2017)

YouTube: https://www.youtube.com/watch?v=w4OreEdwaAM

Dove is a multinational skincare brand. It has an international audience. The most popular products include deodorants, lotion, beauty bar (soap), moisturizers and haircare products. The advert shown in figure 2 above failed to consider the cultural diversity of the brands consumers. This led to widespread rejection of the advert noting that it exhibited racial undertones. A critique of this advert is guided by the following criteria:

• Target Audience

The advert for the Dove lotion targeted women. According to CNN (2017) the selection of the target women became part of the controversy leading to the widespread rejection of the brand. The advert shows a black woman transforming after using ‘Dove’ beauty bar and lotion to become white.

• Communication Objectives

The objective of the communication was to create awareness on the lightening abilities of the Dove beauty bar and lotion. This is shown in the way it lightens black female skin to white. However, this objective was met with claims of racism.

• Overall Communication Strategy

The marketer used the pull communication strategy. The intention was to attract black female buyers to use the product to transform their complexion to white. Nonetheless, the pull strategy worked against the brand as it pushed the target audiences away.

• Positioning Statement and Key Messages

The GIF video used the tagline ‘Ready for a Dove Shower?’ According to Dove, the key message was to represent diversity of the audience the brand targets (CNN, 2017). For instance, it sought to highlight the real beauty of diversity. The management noted that the brand was passionate about diversity and that was the key highlight of its advert. It then apologized for missing the mark in representing the black women.

• Communication Tactics

The communication tactic was to use controversy marketing to make the video viral and get the people talking. Dove achieved this objective but it caused a negative image on the brand.

• Communications Mix

Dove’s communication mix focused on social media sites especially Facebook. The three second GIF had Dove lotion in the at the front then a black woman at the back removed her top immediately transforming to a white woman. This shows that underneath the Dove body lotion, lies a white woman. The decision to use a GIF could be explained in terms of simplicity of sharing across social media, and low cost of production.

• Creative Execution

The advert was correctly executed yet it was rejected because of its racism message. If it had the right message, then it would endear the brand to the target audiences. The realization that this was the second time Dove ran the same offensive advert means that their marketing department had failed its audiences.

• Evaluation

The advert failed to realize its goal because it was instantly removed from social media by Unilever which issued an apology. This was the second time dove did an advert showing a woman transforming after using their body lotion.

4.3                       Communication Brief

• Profile of Target Audience for Kalala Organic Estate Winery

Kalala, officially known as Kalala Organic Estate Winery, is a specialized producer of specialty wines extracted from organic grapes. The company is located in West Kelowna, Okanagan Valley in British Columbia, Canada. Kalala means the miracle place. The brand name is a symbol of its commitment to organic viticulture practices, and achieving harmony with nature. Kalala is an award-winning bran that sells its products at premium prices (Kalala, 2019). As a result, its target market is made of millennials and young adults in the age group of 19 to 45 years. The exclusiveness of the brand has positioned it as a premium brand. This is because the brand is organic and additionally, high quality. Its focus on serving health conscious and pro-environmental consumers makes it differentiated from its rivals. Kalala also support local suppliers. This is a public relations and corporate social responsibility initiative that has helped it attract local customers (Kalala, 2019). Kalala also targets customers who prefer having wine after their meals. The brand helps such customers find the entertainment, relaxation and luxury they deserve.

• Communication Objective

Kalala brands itself as an environment and health conscious brand. Blakeman (2018) summarizes this branding strategy as a sustainability focused brand since it balances the Ps of a business. These are people, planet and profits. This positioning has helped Kalala differentiate itself from the rivals. Its communication strategy emphasizes the exclusivity of the brand while seeking to create sustainable partnerships with local organizations such as BC SPCA, Rotary International, and Westside Community Food Bank among others.

• Overall Communications Strategy

Kalala uses two main strategies to communicate to its potential and target audience. First, it sends clear messages on its intention to attract and retain customers. This is a pull communication strategy where the brand advertises its products using traditional and digital media. This has the effect of creating awareness about the product and attracting customers. It also sustains the loyal customers as it reminds them of the exclusiveness and uniqueness of the Kalala brand. The enticing messages shared encourage buyers to purchase the brand from the nearest retail stores. Apart from the pull communication strategy, Kalala uses public relations. This is evident with its use of corporate social responsibility to create publicity of the brand. This is seen in the way the brand supports charities and local organizations. This strategy creates the image that the brand is socially responsible and interested in giving back to the society where it sources its raw material and labor.

• Positioning and Key Messages

The key parameters for positioning include pricing and type of raw materials used to make the wine. For instance, firms in the wine industry compete based on premium pricing and cost leadership while others focus on promoting themselves as organic or non-organic. Referring to figure 3 below shows that Kalala positions its wine as a high-priced organic brand. Its immediate competitor in this category is Burrowing Owl Merlot which produces organic wine of similar quality to Kalala but at a higher price point. A critical analysis of this difference shows that consumers are likely to purchase Kalala because of the reasonable price compared to its rivals because their products share similar attributes. It is further noted that Inniskillin Merlot is a potential rival. It positions itself as a non-organic wine brand yet highly priced. It endears to customers who value non-organic wines. The premium aspect of the Inniskillin Merlot makes it a key rival. Painted Rock Merlot posses the least rivalry because it positions itself as a low priced non-organic brand. This makes it suitable for the price sensitive and low-income households who wine on a budget.

Figure 3: Kalala Positioning Map

 Table 1: Key for Figure 3

• Communications Tactics

To improve its integrated marketing communication, Wiedmann, Behrens, Hennigs and Klarmann (2016) propose that premium wines such as Kalala should target urban residents. This new customer segment would present a larger market for the firm to target and penetrate. This is unlike the current audience which is composed of sub-urban residents. Targeting consumers in the urban areas with high population of middle- and upper-income earners will increase the market base thus creating a higher demand for the wines. In addition, this will complement the firm’s strategy of communicating through social media given that most of its target customers fall in the age groups that uses technology. This will allow the firm to exploit social media marketing and electronic commerce which are cost effective channels of communicating and selling to customers. The use of e-commerce will complement retailers such as St. Regis Fine Wine and Spirit and Sutton Place. In addition, Wiedmann et al. (2016) recommend that Kalala should partner with dedicated retailers offering specialty and premium wines. This will help sustain the brand equity of the Kalala wines and prevent it from being diluted by inferior brands.

• Communications Mix

The best approach to communicating to customers about the Kalala brand is through the use of traditional media especially television, radio and print media namely Daily Hive. Additionally, they could embrace digital media which is cost effective. The brand needs to create social media pages and a complementary blog and website where it can share its advertisements and promotional messages in real time. Some of the most suitable social networking sites for Kalala include Instagram, Facebook, Twitter and Tumblr.

• Suggestions for Creative Concept and Execution

Kalala could communicate its creative marketing messages by highlighting its commitment to the sustainability of the environment, and giving back to the communities. It needs to publicize its corporate social responsibility initiatives to attract the goodwill of the customers in the target markets. Another creative concept to boost the IMC strategy is to introduce viral promotional campaigns especially during the holidays. Such campaigns will enhance the visibility of the brand thus increasing its equity. At the same time, viral campaigns create awareness required to increase sales and enable penetration to new markets. Manser, Peltier and Barger (2017) add that a complementary creative concept could be using celebrities to endorse the brand. Associating a brand with high ranking celebrity would greatly improve its brand equity in the market.

• Budget Allocation

Given that the budget is limited to $100,000, priority should be given to the marketing campaigns that will derive the most value for the Kalala brand. These strategies include spending 40% of the budget on hiring a social media manager and setting up social media pages on Instagram, Facebook and Twitter. The manager will be responsible for communicating with the customers, answering their questions and updating the social media pages. Alternatively, Kalala could subcontract a reputable firm specialized in digital marketing to manage its social media pages. 25% of the budget could be allocated to traditional media campaigns. This includes paying for television, radio and newspaper advertisements. The remaining 35% can be allocated towards philanthropic organizations. The marketing manager should ensure that a high-ranking celebrity is involved in the project to attract the much-needed publicity. Alternatively, Kalala could use this proportion of the budget to pay bloggers to publicize its wines.

• Actual or Perceived Value Created for the Target Audience

Actual value refers to the real worth of the product. The real value anticipated by target audience is that Kalala is a premium organic wine that is healthy and environment friendly. On the other hand, perceived value is the intangible value derived from the consumption or use of a product (Wiedmann et al., 2016). The target audience for Kalala associate the brand with environmental sustainability, and corporate social responsibility. Some customers might derive value from associating with a high-quality premium brand. Such consumers will buy Kalala because they want to be associated with the upper and middle social classes.