Marketing Communication Neuro Detox Project

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Transcript of Marketing Communication Neuro Detox Project

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ABSTRACT

The THINK TANK Agency is delighted to present the following creative marketing campaign

designed to achieve a successful launching of the new Neuro Detox Drink. In order to

develop a marketing communications plan that meets Neuro’s needs, it is necessary to

conduct a thorough analysis.

Consequently, based on Neuro’s Creative Brief from Appendix 2 and our own research a

contextual analysis was first conducted with the purpose of identifying main issues related

to Neuro’s business nature, its customers. In addition, the internal and external context was

analyzed.

The identification of such issues has helped us to have a clear understanding of Neuro’s

business and its weaknesses and strengths. Therefore, by taking our knowledge, your

corporate objectives, marketing objectives we have been able to identify those promotional

objectives that have to be achieved in order to launch Neuro Detox.

Subsequently, a number of promotional strategies have been developed to accomplish the

promotional objectives identified. Moreover, a precise schedule explaining which

promotional tools should be used and when has also been developed. Followed, by a

budget breakdown and finally the evaluation and control methods will be presented.

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Contents Page

1. Contextual Analysis........................................................................................... 4

1.1 Business context.................................................................................... 4

1.2 Customer context................................................................................... 6

1.3 Internal context...................................................................................... 6

1.4 External context...................................................................................... 8

2. Promotional Objectives and Positioning ............................................................. 10

2.1. Marketing communication

objectives ..................................................... 10

2.2. Positioning........................................................................................

...... 10

3. Promotional Strategies........................................................................................ 12

4. Promotional Mix (methods, tools and media) ...................................................... 14

5. The Schedule......................................................................................................... 16

6. Budget.................................................................................................................. 17

7. Control and evaluation.......................................................................................... 18

8. Why are we different?........................................................................................... 19

9. Appendices ........................................................................................................... 20

10. References............................................................................................................. 21

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1. Contextual Analysis

Based on the Creative brief, Appendix 2, the agency has prepared the following contextual

analysis which will be the base for the communication plan developed by The Think Tank.

1.1. Business Context

Neuro is a non-profit organization which reinvests the revenue generated from the sales of

its innovative beverages this underlines the issue that its turnover may be restricted for use

in terms of promotion and promotional activity may become limited with more use of free

PR. Neuro is a fairly new organisation founded in 2008 which launched its line of products in

mid 2009 in the U.S.A., California, and has internationally expanded to the UK with much

success, where it only provides 4 blends: Neuro Sonic, Neuro Bliss, Neuro Sport and Neuro

Trim.

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Figure 1: Neuro Drinks in USASource: www.drinkneuro.com

The company is targeting its products to the higher end of the market, to health conscience

adults with busy and impulsive lifestyles, supplying in only certain supermarkets such as

Waitrose mainly based within the city and surroundings affluent areas which can lead to the

effect of a limited amount of distribution geographically.

The Neuro drinks are marketed as a celebrity drink made of the right organic ingredients.

Using celebrity publicity such as:

event sponsorships, i.e. ‘The 18th annual Elton John AIDS Foundation’

Figure 2: ‘The 18th annual Elton John AIDS Foundation’Source: http://blog.drinkneuro.com/

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product placement i.e. Lady Gaga Video ‘Parazzi’

loyal customers such as actress Lindsey Lohan, or Paris Hilton the brand shows an

image of celebrity approval and standards, which can have a positive and catchy

effect for the product in its new environment.

Figure 4: Lindsay Lohan Figure 5: Paris Hilton

Source: www.glitterbuzzstyle.com/2009_06_01_archive.html

Although Neuro is a new product on the market is faced with a minimal number of

competitors, however with similar characteristics as the new line of Neuro Detox, which can

pose threats in the fact that Neuro is in a new and international market environment The

main two rivals of the new blend are the Innocent smoothies brand which supplies an

existing detox beverage on the market including many organic, pure ingredients and around

the same price range and OXYGIZER mineral water which can be seen as a substitute to the

notion of detox as it produces a drink that is of pure oxygenated water and likewise aims its

products at the higher end of the market.

1.2. Customer Context

Neuro will target young students and professionals aged between 20 and 35 with a

medium/ high disposable income. Moreover, Nero wants to target those individuals who

are health conscious when choosing a product. The reason why this market is being

Figure 3: Lady Gaga – Paparazzi

Source: blog.blush.com/index.php/neuro-

drinks/

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targeted is because it is growing and because Nero products are designed to meet the

requirements of the targeted group.

Nero, needs to fulfil the costumer’s expectations and needs, therefore Nero needs to build

a positive brand image and provide their customers with products of high quality.

1.3. Internal Context

As already mentioned Neuro Drinks is a not for profit organization founded by Diane Jenkins

who has been involved in creating the distinctive design, the brand and the packaging and

the drinks were developed by scientific experts from exotic fruits and essential vitamins and

minerals. The energy drinks available tend to be less healthy but Neuro is formulated to

sustain a healthy diet, as they contain natural, exotic tropical flavours and essential

vitamins, minerals and amino acids. The drinks are seen as the organic version of Red Bull.

And all these elements can be part of the communication message designed to meet the

company objectives such us increase brand awareness, stimulate trial purchase and

stimulate and reinforce brand loyalty.

As the company’s main aim is to help customers with dynamic lifestyles, to maintain a

healthy life and to help them to stay fit the organization’s message should be developed

around the idea of help offered by organization to its customers to respond to lifestyle

related health issues. (http://realbusiness.co.uk/startups/launchpad_neuro_drinks)

Figure 6: Neuro Blend in USA

Source: www.drinkneuro.com

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Its avant-garde packaging and the mix of colours used for their blends are suggesting a

product for people interested in a stylish lifestyle.

Dianne Jenkins, an international has seen back in 2008 a gap in the market for healthy, low

calorie energizing drinks and in 2009 has launched the Neuro brand. Due to a limited

marketing budget the company so far has only made use of few elements of the

promotional mix, such as Internet marketing including social media, sponsorship and PR to

create awareness amongst potential customers.

The company financial constrains are unknown but because Neuro is a not for profit

organisation the current advertising spend is low compared with other soft drinks

companies and this can have an impact on developing the new marketing communication

campaign developed for the new product, Neuro Detox.

At the moment Neuro is relying on below the line activity such us PR, events sponsorship

and in-store activity. However, Neuro is making great use of the Social Media.

Think Tank strongly believes that the agency skills and international experience can be of a

great help for Neuro when launching the new blend, Neuro Detox.

1.4. External Context

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Stakeholder Why are they important? Communication Needs

Owner - Diane

Jenkins

The founder of the company is

very important as they made

Neuro exist. They have the role in

managing the company and

making the business decisions

which keep the company moving.

The managerial styles and

expertise have made Neuro a

successful company which makes

the owner an important icon in the

business.

Project status information

(schedule, budget and scope)

Detailed knowledge of all risks and

issues

Detailed knowledge of all change

requests

Understanding of current project

deliverables’ quality

Employees The work and skills of employees

help the organization to meet and

exceed aims and objectives. That is

the main point of why employees

are so important.

Status of the activities and tasks

they have been asked to perform

Awareness of events which may

affect their ability to undertake their

role

Customers Customers are important actors

within an organization as they

contribute to brining finance into

the business

Awareness of the anticipated

benefits from project

implementation in relation to their

activities and duties

Understanding of the functionality,

operation and usage of the end

product

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Stakeholder Why are they important? Communication Needs

Suppliers They need to deliver the products

on time for the requested times

and also at an affordable price

The supplies need to understand

the operation actions of Neuro

Awareness of events which may

affect their ability to undertake their

role in supplying the goods

Sponsors They provide funds for the

company to function as Neuro is a

no-for-profit business

-Project status information

(schedule, budget and scope)

-They want their name to be

mentioned to publicise their name,

e.g. Lady Gaga using the Neuro

Sonic in her video clip

In relation to the external PEST factors, it can be seen that as the UK economy recovers and

starts zooming up, it will be viable for Neuro to launch its products in the UK as people start

spending more and as their jobs become safer; their interests will change to leading a

healthy lifestyle. Also by launching the new product range in the UK Neuro will support in

employing people. The Social element has a great impact in developing the marketing

communication campaign as customers’ changing lifestyles that are more age concerned

will help Neuro to get their message across easier. Also the use of role models will have an

effective attraction for Neuro detox and for Neuro blends in general.

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2. Promotional Objectives and Positioning

Based on the Neuro’s Corporate and Marketing Objectives provided by the company in

Appendix 4, The Think Tank has come out with the following marketing communications

objectives in order to achieve the company marketing objectives and consequently the

corporate objectives.

2.1. Marketing communication objectives

As Neuro has just been introduced in the UK and as its new Detox drink is being launched

our Promotional Objectives are very simple but precise.

First of all, trough our marketing campaign we aim to build awareness and gain recognition

from individuals who make part of our targeted group, more precisely our marketing

campaign will attempt for our new product to reach 5000 new costumers monthly.

Moreover, we expect to get loyalty from 30% of all our new costumers. Therefore,

promotion has to be efficient and reachable.

Secondly, trough our marketing campaign we want to provide essential information about

our existing products and the upcoming Detox drink and get across the message that Nero

is a modern, natural, healthy way of getting hydrated, by advertising the following slogan:

“DRINK SMART, DRINK NEURO.”

Additionally, trough our marketing campaign we will stimulate and increase our product’s

demand by reaching new selling points, such as cafés, hotels and fitness clubs .

2.2. Segmentation, Targeting, Positioning

Neuro is a brand that offers modern and unique drinks that has recently entered the UK.

Neuro is targeting males and females aged between 20 and 35 who dispose of a medium or

high Income. More precisely, Neuro is targeting the increasing amount of people who are

trying to become healthy consumers. It is important to be aware that there is great

potential in this fast-growing market, which does not have a large number of competitors at

the moment. Therefore, Neuro has to take advantage of the facts and through proper

segmentation, targeting and positioning increase their demand and number of costumers.

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The positioning map below is showing where Neuro is placed in customers’ views at the

moment, and where The Think Tank aims to position the brand after implementing the

communication plan proposed.

High Price

Low brand Popularity

High brand popularity

Low Price

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3. Promotional Strategies

The Think Tank proposed promotional strategies are a combination of Pull, to facilitate

communication with the customer and encourage them to pull the products through the

distribution channel, Push in order to convince distributors to stock Neuro products and

Profile with the aim of influencing the way the organisation is perceived by stakeholders in

order to develop a credible organisation.

Pull Strategy is based around the use of a various number of promotional tools such as

advertising which mainly requires a higher spending budget with a more main stream affect

on consumers attracting them to the product.

Push Strategy is used to increase the demand of a product from consumers by using

promotional activities making full use of an organizations sales force that can force a

product down the distribution channel, making this strategy more hands on and cost

effective.

Profile strategy is based around an organizations corporate and promotional goals by using

various communication to satisfy these areas within a company.

The table below is presenting the tools and media used for each promotional strategy.

Strategy Tools The media Used

Pull Advertising Print Media: Women & Men Magazines Internet: Company website, Banner Adds, Social Media; Search Keywords; blogging; viral marketing In door Posters in Gyms, universities Taxi advertising – Central London (Black Cabs)

Sales Promotion In store and online sale promotions 2 for 1 for returning customers or price promotions from £1.79 to £1.19

One day free pass gym membership when you buy our Detox drink

PR/Sponsorship Sponsoring celebrity parties Sponsoring student parties

Push Personal Selling In store

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After identifying the communications objectives earlier, the table below is looking at the

strategies used for each objective as well as the tools utilized.

Objectives Strategies Tools

Use promotional tools to

effectively reach customers and

tell the market what Neuro

have to offer

Pull Strategy Advertising

Internet: Company website, Banner

Adds, Social Media; Search Keywords;

blogging; viral marketing

In door Posters in Gyms, universities

Creating interest by using a

celebrity endorsement

Pull & Push Strategies

PR/Sponsorship

Providing adequate information

about Neuro Detox using

specific promotional tools

Pull Strategy Press Print Media: Women & Men

Magazines

Outdoor advertising - Taxi advertising

in Central London (Black Cabs)

Online

Stimulating demand by using

incentives to encourage

customers to purchase

Push Strategy Personal Selling

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4. Promotional Mix (methods, tools and media)

According to the European Interactive Advertising association the customer brand perception is influenced by searching online, by recommendations from friends and by price comparison websites, depending on how complex is the product sought. Advertising new products depends very much on the customer brand perception, as seen in the figure below.

According to a recent research conducted by Mintel, the premium soft drinks market is

mostly made up of smaller companies, therefore the marketing promotional activity is

mainly below the line as they don’t have too much money to spend on promotional

activities. (Mintel, 2010)

The Think Tank is advising Neuro to implement an "Integrated Communication Approach"

for the launch of Neuro Detox, involving advertising in careful chosen Women and men

magazines based on readership, target audience, frequency as seen in the table below as

well as online and outdoor advertising, leaflets, posters and personal selling and sales

promotions.

Figure 7: What influences brand perception?Source: www.eiaa.net

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Media Title Readership Reach Frequency

Magazine Cosmopolitan 1,568,058 1,767,295 Monthly

Magazine Vogue 1,136,751 1,314,401 Monthly

Magazine FHM 1,505,548 1,730,000 Monthly

Website Twitter 32 million users 50 million users (who

can be segmented by

interests, attitudes, etc)

Weekly

Website Facebook 100,000,000 400,000,000 (who can

be segmented by

interests, attitudes, etc)

Weekly

Website You Tube 16,140,000 6,749,748 Weekly

Website MTV

Outdoor Taxis 6,085,044 6,761.160 million in

London (figures of reach

are hard to predict

however, depending on

time of year, location,

weather, time of month

Annual per

taxi

All the statistics are taken from the BRAD and MediaTel online system.

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5. The Schedule

The initial proposal for Neuro to launch the new Detox drink will be in May 2010.

Advertising will commence in April as it is essential to provide details about the new

product. We shall use magazine advertising for the 1 month before the launching of the

product and 3 months following the launch and 3 months in the end of the year to increase

customer awareness and increase sales.

As online advertising has become so popular we have decided as a professional marketing

communications company to keep it an all year event. Personal selling is an important

aspect of promoting a product such as the Neuro Detox as people will want more one-to-

one information regarding the product. The table below is showing in detail the

tools/media used by month.

April May June July August Sept. Oct. Nov. Dec.

Press – Women Magazines

Online

Personal Selling

PR

Viral Marketing

Sales Promotions

Indoor posters

Leaflets

Taxi Advertising

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6. Budget

The Neuro’s budget of £500,000 to launch Neuro Detox has been decided by the company and The Think Tank after researching the target audience, the competition and stakeholders and following the Neuro’s Marketing Objectives has decided to spned the money allocated for this campaign as follows:

Type of Media Total Cost

Magazines

Total cost: £271,663.00

Vogue: £12,200 x 7 months = £85,400.00

Cosmopolitan: £16,109 x 7 months= £112,763.00

FHM: £10500 color half x 7 months= £ 73,500.00

Online

Total cost: £60,000.00

Facebook: £0.38 CPC

YouTube: £7.50 per CPM

Twitter: £ 12.30 per CPM

MTV UK: £35.00 per CPM

A1 Indoor posters (10,000) £590 for 1000 posters x 10 = £5,900.00

A5 Leaflets (50,000) £159 for 10000 leaflets = £1,590.00 x 5= £7950.00

Personal Selling £ 25,000 per month x 5 months = £125,000.00

Taxi Advertising £ 2500 per taxi p/a x 10 taxis = £25,000.00

PR/Sponsorship £5,000.00

Total Spent: £500,513.00

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Onlin

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PR/Spon

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Leafl

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Poste

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200000

300000

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7. Control and evaluation

Overall, in order for Neuro to succeed when launching its new Detox drink we strongly

believe that they need to implement the strategies and also have the following control

mechanism to measure the success of their business.

We advice Neuro to create a relation with their customers and to get constant feedback, in

order to be aware of what consumers like and dislike about their products and therefore

make improvements. This can be achieved through questionnaires designed for consumers

that should be made available at Neuro’s website and at establishments where Nero’s

products are sold. This questionnaires should be design to get essential information and

views from existing and potential customers, such as: their likes and dislikes about the

product and its image and more precise data such as the percentage of customers who buy

Neuro’s Detox drink for the 2nd time compared to total customers.

We recommend reviewing the company’s performance quarterly, in order to determinate

vital information such as Neuro’s ability to perform in the UK, performance of its new Detox

drink and its market share compared to the actual competitors.

For online communications ‘click throughs’ will be a good measurement of the marketing

communications methods used. And for PR editorial coverage, awareness generated and

stakeholders opinions are a very good measurement.

Through sales targets, productivity and costs we can measure the Personal Selling efficiency

and the Advertising in magazines can be measured through brand awareness created by

our advertisements.

Finally it is recommended to analyze the information obtained through the control methods

to achieve continuous improvement.

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8. Why are we different?

Over the last few months we have been able to analyse and understand Neuro and its

business vision. More importantly, after conducting an industry and market analysis, we

have a clear understanding of what steps and strategies should be followed and

implemented by Neuro in order to achieve their goals and successfully launch the Neuro

Detox drink. As a result, we designed a creative strategy and media plan that meets Neuro’s

needs.

Moreover, we strongly believe that at the Think Tank agency we have all the right tools and

resources to achieve Neuro’s marketing goals and to attain great success.

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10. References

Brad Insight, Available from URL: http://www.bradinsight.com/brad/) Accessed on

20 March 2010

Fill, C., (2005), Marketing Communications: Fourth Edition, England: Pearson

Education Limited

Media Tel, Available from URL (http://mediatel.co.uk/online/search) Accessed on 20

March 2010

Mintel, (2010), Premium Soft Drinks - UK - January 2010, Available from URL: http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/display/id=479811> Accessed on 15 March 2010

Real Business, Available from URL:

(http://realbusiness.co.uk/startups/launchpad_neuro_drinks)> Accessed on 10

March 2010

www.glitterbuzzstyle.com/2009_06_01_archive.html

www.drinkneuro.com

blog.blush.com/index.php/neuro-drinks/

http://blog.drinkneuro.com/