Showing posts with label Marketing Plan. Show all posts
Showing posts with label Marketing Plan. Show all posts

Monday, April 18, 2016

Integrated Marketing Communication Strategies

The most important part of integrated marketing communication for Canary Jane’s Flowers is the communication between customers and employees. As shown in Figure 9.1 this form of communication is considered interactive marketing on the triangle and relates to delivering the promise. Canary Jane’s promise is to give customers the freshest flowers that are locally sourced and deliver exceptional service, their interactive communications plays an important role in creating consistent service to deliver this promise. Since Ms. Stacey doesn't have an advertising agent, she relies mainly on this form of communication to promote the business. She focuses more in delivering an excellent service in order to gain a good reputation and customer retention. This is evident by the review comments that have been uploaded by the customers, who have dealt with Canary Jane’s Flowers.
Interactive marketing involves having skilful and qualified frontline employees that understand what each customer requires. Canary Jane’s Flowers once had a customer who wanted to give his girlfriend a yellow flowers for Valentine's Day, the staff explained to him that yellow flowers symbolise friendship and suggested a different colour, the customer was impressed by their knowledge and went along with their suggestion. This illustrates that the staff intend to understand the customer's needs and offer the best service.
Interactive channels must be integrated to create consistent service promises. As part of advertising strategy Canary Jane’s Flowers uses social media such as Facebook. Their Facebook page is very interactive and up to date with lots of colourful pictures to appeal to the market. Canary Jane's Flowers was also featured in Frankie magazine, which is another form of unpaid advertising for the business. This proves that the staff are very active and consistent with the service provided.

Horizontal communication, also identified as lateral communication, is the passing of messages between entities and groups on the same level of an organization (Zeithaml, Bitner & Gremler 2013, p.434). Horizontal communication assists in the production of high quality exchange because it happens directly between people in the same environment, therefore it is also more efficient. Floristry is an artistry profession and fully depends on what the customers desires. Since there is only a small team of three at Canary Jane’s Flowers, horizontal communications is more significant and suitable. On the other hand, where there is an open channel between sales and operations things are more complicated (Zeithaml, Bitner & Gremler 2013, p.434). This is why Canary Jane’s Flowers communicate information through various strategies. For instance, horizontally; there is a system where all the staff uses to check for updates and also the orders. Vertically; in situations where there is a matter that requires the owner’s permission for decision making, such as a price change, then the information is sent to Ms. Stacey's email address. In addition, the rules, policies, procedures and regulations are all passed down from Ms. Stacey to all the staff members causing a downward flow of information. The communication returns upwards with the end of the day performance reports, complaints, feedback, etc. Communication can be difficult if employees do not effectively fulfill their roles.
References:


Zeithaml, V, Bitner, M & Gremler, D 2013, Services marketing, McGraw-Hill Irwin, New York.


Monitoring and Researching Service Success and Failure

Monitoring and evaluating service performance is important because it allows for improvement throughout the service profit chain. Measurement and analysis allows businesses to make decisions based on data, lowering their exposure to risk and providing more predictable results (Gale 1992). Small businesses such as Canary Jane’s Flowers have less need and means to monitor performance, due to smaller sample sizes and more intimate existing knowledge of the business and customers, but such research still holds substantial value for service improvement.

It is common and natural for business operators to self-assess their performance against their past performance and objectives, but it is generally unreliable when done without structure, analysis and impartiality (Parker 2012). Canary Jane’s currently has unstructured performance measurement without formal metrics, consisting of a personal awareness of repeating customers, and reviews on external websites. The business is incidentally reviewed extremely well, with an average 4.9 star rating from 35 reviews on Facebook, Yelp, Yellow Pages, and Etsy. Reviews and ratings are currently the only impartial measurement of Canary Jane’s performance.


Measurement of returning customers is important as it is much cheaper and easier to retain customers than it is to attract new ones (Hennig-Thurau & Klee 1997). As such, customer retention rates are a very important metric to measure. Measuring retention rate is a simple calculation comparing a quantity of new customers to existing customers, but requires those two points of data. Returning and new customers can be counted simply by asking all customers if they have shopped at Canary Jane’s before, with figures stored and compared and monthly intervals to assess retention and attrition rates. A services success or failure will also be impacted by the organisations ability to manage capacity and demand.


References: 

Parker, D 2012, Service Operations Management, Edward Elgar, Cheltenham: UK, pp. 285-287.
Hennig-Thurau, T & Klee, A 1997, 'The impact of customer satisfaction and relationship quality on customer retention: A critical reassessment and model development', Psychology and Marketing, vol. 14, no. 8, pp. 737-764.
Gale, B 1992, Monitoring customer satisfaction and market-perceived quality, American Marketing Association, Chicago.


Service Quality and Service Guarantee

Service quality defines the level a customer is satisfied because it is the critical element customers use to evaluate service (Zeithaml, Bitner & Gremler 2013, p. 87). Therefore in a consumer service experience within a store, service providers must reach out to customers and listen to their desired fulfilments while also assisting their journey from enquiries, selection process, purchase process through to the possible post purchase issues. Ensuring service quality and eliminating the need for service recovery is “doing it right the first time”, this shows the business is reliable (Zeithaml, Bitner & Gremler 2013, p. 201). Canary Jane’s Flowers is a floral service combined with highly priced yet small sized gift goods, for example candles, rosedale hankies and hand creams. The higher costs of the small gift products would naturally create an implied higher service quality. “The intangibility and unpredictability of services generally cause consumers to perceive a higher risk associated with a service” (Sharma & Varghese 2013). Customers can have uncertainty and be unconfident of the service quality for particularly high priced stores, like Canary Jane’s (Sharma & Varghese 2013).
A method to reduce consumer’s uncertainty with the quality of a product is guarantees, which ensure the customer is 100% satisfied (Hart 1988). “A service guarantee is a promise by a company to compensate the customer in some way if the defined level of service delivered is not met.” (Sharma & Varghese 2013). There are several characteristics of effective guarantees that will be explained relating to Canary Jane’s Flowers and the benefits of having an effective guarantee will be illustrated. Effective guarantees should be unconditional, meaningful, easy to understand and easy to invoke (Zeithaml, Bitner & Gremler 2013, p. 202). Canary Jane’s guarantees that the flowers will last at least 4 days after buying them, this is unconditional because it “promises customer satisfaction unconditionally, without exceptions” (Hart 1988). This guarantee is meaningful because it covers the aspects of the service that is important to the customer, which is the freshness and quality of the flowers. It is also meaningful financially; a full refund or replacement is given. The guarantee is easy to understand as it is simple and pinpoints the promise (Hart 1988). A guarantee must be easy to invoke, as explained by Hart (1988) “A customer who is already dissatisfied should not have to jump through hoops to invoke a guarantee.”
“Service guarantees have been advocated as a potentially powerful weapon today in trying to differentiate between services and gain the competitive edge” (Sharma & Varghese 2013). Another benefit of service guarantees is maintaining quality (Zeithaml, Bitner & Gremler 2013, p. 204).The organisation can maintain quality as the guarantee is an indicator of what the service should provide, for instance at Canary Jane’s Flowers they guarantee same day delivery if you order before 2pm. By having this benchmark an employee knows the minimum needs that need to be met for the customer, which in this case is getting the flowers delivered to the customer on the same day. Canary Jane’s Flowers uses Murphy Alan Johns for the delivery of their orders and if for any reason there is a disruption with the process, then the staff will assist with the delivery to ensure that the guarantee is met. Small to medium enterprises often bestow less service guarantees due to less workers to help achieve promises, avoiding over promising is considered safe in the employer's eyes. The low number of apparent written and verbal guarantees from Canary Jane’s will ultimately impact the “willingness of the customer to make frequent visits” (Sharma & Varghese 2013). Ensuring the guarantees are used effectively, they will benefit the business. Canary Jane’s will increase loyal customers through the use of guarantees, which equates to profitability in the long run. Guarantees are irrelevant if the organisation does not monitor whether they are successfully delivering a quality service.



References: 

Zeithaml, V, Bitner, M & Gremler, D 2013, Services marketing, McGraw-Hill Irwin, New York.
Sharma, K & Varghese, M 2013, 'Influence of Service Guarantee on Consumer Behavior in organized retail stores', Romanian Journal of Marketing, vol. 1, pp. 10-17.
Hart, C 1988, 'The Power of Unconditional Service Guarantees', Harvard Business Review, vol. 66, no. 4, pp. 54-63.

Monday, May 26, 2014

Swatch Segmentation - By Mitchell Formica

The Overall Market
The overall market of watches in Australia is comprised of five different buyer groups that are all interested in the different types of watches found in the market. The First type of buyer is the young impulsive consumers, who are the first to purchase a new line of watch that is deemed to be the next hot product on the market.  The Second type of buyer are the ones who follow trends and just buy what every else is because it’s the latest thing on the market. Thirdly there’s the older group who simply have good taste and a sense of style and after that there’s the university students and college students who can afford wealthier brands of watches on the market,and finally there are the fashionable senior citizens who wear the next best thing on the market. (Bplans, 2012).

In Recent times Australia has seen a growth in the luxury watch marketincreasing to ‘25% from 2010 to 2012’. This staggering amount is due to the increase in wealth and the need for a high social status among people. However,this increase is still behind the rest of world although the need for watches will always be there as they are finding new and better ways to make and innovate watches today. (Stephen Lacey, 2013).

Segmenting the Watch Market
The segmentation of Watches in general is broken down into twomain parts. Demographic and Behavioural aspects that companies like Swatch and Rolex use to target and go to market with. When looking at thedemographicsegment for watches we focus on age and gender as they are the two main key areas. Age is an important variable when trying to match the style and look of the watch with the buyer and the age of a buyer can sometimes determine what their buying habits are like. For example a younger person would be more so attracted to a coloured watch and might have impulsive habits where-as an older person might like an more conservative look and might not want to buy it upon first look. The style and price of the watch is a key aspect nowadays, as a larger number of younger people are purchasing watch brands.  Gender is also a major aspect for manufacturers as they have to very different demographics to market towards. Male and female traditional watches are very different in style but nowadays watches can sometimes only be determined male or female by the colour. This is easy for manufacturers as they don’t have to change a lot on the design for both demographics. 

In the market today many organisations are changing the way they see the market, from a timeless keepsake to a more fashionable accessory. The watch industry has changed overtime due to the needs and wants of the buyers. Manufacturers are segmenting the market more diversely these days due to a larger population of possible targets. These targets or differences in people such as age, gender, behaviour or even psychographic needs are the reasons for a wider more diversified market. Nowadays we don’t just see the plain old business man wearing a stylish watch, but we also see the young hip culture wearing their own brands of watches too.
Manufacturers like Rolex and Swatch are finding it hard to compete with china’s watch market. China produces on average 663,000,000 million watches annually as compared to Swiss watches 29,200,000 million however, the Swiss watch makers still hold the largest percentage of market share as their watches are sold for $739 as compared to China’s watch price of $3 (Federation of the Swiss Watch Industry 2013).

‘Nowadays, Swatch is familiar with the fact that specialization in a chosen market is more profitable than trying to reach all consumers in the market. Therefore, the choice of its target market was made very carefully’ (Marketing Report Revised, 2010).The target customer of Swatch is from 18 to 30, even extends to middle-aged who advocated young mentality.  (Smiled, C et al, 2014). However, Swatch predominantly targets towards younger segments, primarily because of its youngish style (Dvog, 2012). Swatch focuses on both men and women. The colourful watches and different designs are sufficient to satiate the needs of customers. For example, men can choose the black watch and women can choose the pink one. There are also neutral styles for both men and women. (Smiled, C et al, 2014). I think Swatch should stay where they are in the segmentation strategy as they have clearly found a target market that suits their product, their segmentation strategy which comprised of opening up to a new market that watches has no previously marketed towards allowed them to find a gap in the market. This new gap created a stream of attention when Swatch made this decision in the mid-80s. ‘Their main goal was to produce an artistic, low-cost and high-tech watch. This turned out to be a very successful concept and they became the world’s largest watch producer. This position made it possible to extend their range of products and to use a differentiated strategy’ (Marketing Report Revised, 2010).Theirmain audience are enthusiastic and positive toward new product releases and will come back and buy the latest and best on the market(Dvog, 2012).People buy a Swatch because it is economical and in good quality, furthermore they buy it for fashionable decoration. Swatch breaks through the single functions of watch, using the combination of style and gorgeous colours to catch consumer’s eyes. (Smiled, C et al, 2014).




References:

Bplans, 2012, “Export Watch Manufacturer Business Plan”, Grutzen Watches, viewed 12 May 2014. http://www.bplans.com/export_watch_manufacturer_business_plan/market_analysis_summary_fc.php

Dvog 2012, “Swatch/Business and Industry”, Papercamp, viewed 12 May 2014

Federation of the Swiss Watch Industry 2013, “Wrist Watch Industry Statistics”, StatisticsBrain, viewed 12 May 2014

Marketing Report Revised 2010, English 2/Blogger, viewed 12 May 2014

Smiled, C Lu, Z Cloud, G 2014, “The Segmentation Analysis of Rolex and Swatch”, Baidu, viewed 12 May 2014

Stephen Lacey 2013, “Luxury watch sales are booming in Australia as $650,000 timepiece finds a home/Time Is Money”, Traveller, viewed 12 May 2014 http://www.smh.com.au/travel/experiences/luxury/time-is-money-20130419-2i4c8.html

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