воскресенье, 19 мая 2013 г.

Advertising & Promotion: Overview of Strategy, Tools & Timing


General Advertising Strategy 
       We can think of different ways to present Neutrogena Wave in Russia. On the one hand, we could follow the general trend of Neutrogena Wave in other countries and just copy their actions there. However, since the market is specific, we can also offer different strategies. Since the management in Neutrogena is decentralized, we can hope that Russian department will have some right of vote in developing advertising campaign for Russia.
We suggest that in general we stick to the overall marketing strategy of Neutrogena Wave. However, in some part of our advertising campaign we could implement tools which will help us navigate the customers and address to their specific needs. For instance, we could develop an advertising campaign which is aimed towards a specific problem (e.g. acne). So, some ads will represent our product as a cleansing device which helps to get rid of problems with skin, but some part of ads will specify that exactly the acne problem will be solved. So far, this result was proven by the specialist and this is a considerable competitive advantage. As an example, we could issue banners or use more innovative instruments like a computer watch which reminds you of the problem and a solution for it. 
Further, to attract the customers and persuade them that they need your product it is important to support relations with your customers. You can use various techniques to establish good public relationships.
Tools
 Online communication
We suggest that Neutrogena develops a separate website in Russian or a microsite where customers can get the full information or even ask some questions online and get the answers from a consultant.
We could also organize some quizzes and competitions as it was done on other markets. A prize could be, for instance, a discount coupon for refilling pads.
Also there we could place some voting polls on this website to learn the needs and preferences of customers so that they felt our interest in them and got involved.
We can also organize a Facebook/VKontakte community to support two-ways communication with our customers.
We can also put our banners on the web and develop a contextual advertising.
Print Ads
We can print banners and ads to put them in fashion magazines and magazines for young women and teenagers. Also we need to make banners for outdoor advertising. Moreover, we can print promotion stickers and distribute them in shops for school goods and in beauty salons.
Promotional videos
Since the TV ads are pretty expensive, we could launch viral videos featuring Neutrogena Wave. We can use YouTube as a channel. These videos can show our satisfied customers telling about the products or some instructions how to improve the skin with the help of Neutrogena Wave. In connection to this, on the website we could also launch a competition for the best video advertising Neutrogena made by our customers. This would help us to see how our customers perceive the product and get them involved.
Consumer exhibitions
In the distribution locations we could organize small exhibitions and trainings and invite consultants to explain the customers how they should care about their face skin and in connection to this what the product is and what it does. This can be a short-term action, like a product launch event.
Special stands with Neutrogena Wave may be installed so that the product was separated from other products and was perceived as something special.
Celebrity endorsements
As it has been done in other markets we can invite celebrities to advertise the product. This will personalize the product and bring positive associations. We believe that since our product is new on the market and oriented at both teenagers and young women, we should find a person who is popular and promising but not overappearing in media. Some celebrities, like Vera Brezhneva, for instance, associate with too many things and ads with her will not differentiate our product from others. We suggest Svetlana Ivanova. She is a young and promising movie star in Russia; many women would like to look like her. Moreover, she perfectly suits our target audience.
Charity Programs
Probably, at a later point, we could also join some charity programs in Russia. However, at a launch stage, this could only weaken our position by taking the funds away and not bring the expected result due to the low brand awareness. 
Timing
We expect that our campaign brings positive results in a pretty short term perspective of approximately 3 months. As for the sequence of events, we consider the following preliminary schedule:

1st stage: 

• Launch of a website/microsite/Facebook community

• Print ads (celebrities)
• Trainings
• Product exhibitions

2nd stage:

• Viral videos

• Special Stands

• Quizzes/Competitions

3rd stage:

• Diversfying the ads: general and specific

• Charity Programs

• Active paricpation in the life of the market/country

Response targets
We expect to achieve the following targets as a result of our advertising & promotion campaign:
1) Customers learn about product and brand.

2) Customers have positive attitude towards our product and brand.

3) Customers understand what they need it for.

4) Customers associate the solution to their problem with our product.

5) Word-of-Mouth Effect starts.

6) The brand awareness increases.

7) Our sales and market share increase.

We can judge the success of our advertising campaign by:

1) the amount of feedback comments left on the website

2) the amount of visits to our website/Facebook-VKontakte community

3) the amount of people participating in our quizzes/competitions

4) performing a survey periodically on customer brand awareness/attitude towards the product
Budget
 The budget has been accounted for an advertising campaign in Saint-Petersburg only.

Type of product/service
Price, rub per 1 unit/1 period of time
Amount needed
Total Cost
Website Launch
6000
1
6000
Microsite Launch
6000
1
6000
Online Banners
4000
100
400000
Contextual Advertising
1,00
50 000
50000
Ads in magazines
130 000
5
650000
Banners on the billboards
40000
15
600000
Promotion stickers
7000
1
7000
Trainings in Beauty Shops
40000
5
200000
Celebrity Endorsement
1000000
1
1000000
Total Cost of Advertising Campaign
2919000

10 комментариев:

  1. Hi Anna! I think it's a good strategy of advertising and promotion, I see that you thought over many details and even made an approximate budget, which is really nice! I just have one quick question: as I understood, you are not going to launch TV advertisements, but as far as I'm concerned a lot of Neutrogena competitors are advertised on TV (especially well-known mass market products like Garnier, Clearasil, etc). Do you think, it's going to affect negatively the brand awareness development and competitive position of Neutrogena in comparison to other products? Because in the situation of such a tough competition, brand awareness plays really a significant role. I mean, lots of women keep buying the same product like Garnier or L'oreal over and over again just because they are well-known and established brands, everybody knows them, they're like "classics" of cosmetics. So for these women brand awareness is the key factor in their purchasing decisions. Do you think Neutrogena will lose some amount of potential customers if you don't launch a TV advertising campaign?

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    Ответы
    1. Dear Irina,
      I support the stand point of Anna and will provide you with the very simple example. Have you ever seen adv of Iphone on TV? There are adv of everything Nokia, Samsung, Sony... but not devices of Apple but it is still popular. So product has its image and style and TV adv is not crucial.

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  2. Hey guys, I would like to ask you about positioning, so you decided not to change it? What is the basis for your positioning? A functional one or not?


    And also question regarding prices, what would be a price level? I see that you calculated the promotion budget (by the way some numbers do not look real, for ex. website launch is calculated only as 6000 rubles, while it can and often does cost 100 times more), and it is not already a small one. What would be average price of your product?

    But all in all, everything seems very nice!

    Sincerely,
    Elena

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    Ответы
    1. Elena,according to several researches, cosmetics mainly brings emotional benefits to consumers, and we agree with this claim. The main focus of the WAVE is not to show the exceptional technical characteristics of the product, but to provide opportunities for Russian women to feel more confident, young, beautiful, so that "even friends would notice it".
      Anyway, you can read about that in our post devoted to positioning. We uploaded it finally.

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    2. Dear Elena,
      I was writing about positioning so I invite you to read my post, and I am ready to answer your questions.

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    3. I would like to continue your discussion, and, actually, I am concerning about the positioning.

      As far as I know, many of cosmetics products are positioned emotionally, convincing the customers that after the usage of their products they will be more beautiful, and feel confident and better. Thus, this positioning of WAVE may not make the product different from competors' products.

      In this situation I would like to suggest you stressing on the unique charactetistics of WAVE, and promote it in the way diffrerent from competitors

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    4. Angelina, I have seen your answer just now)
      Will follow the "positioning section" on your post also)

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  3. Dear Irina,

    thank you for your comment! We have thought a lot about this. To begin with, Neutrogena does not advertise its products in Russia a lot even now, and still a lot of customers know it. Probably, this is not so crucial for them to see Neutrogena ads everywhere. Then, these products sometimes are perceived as pop products, very famous but not always working. Moreover, TV ads is very expensve and it can increase our expenditure so that we will lose money and not get the expected return. We think that viral videos can be a good substitute for TV ads in our case, since they are cheap and costless, and we can involve our customers and advertise the product at the same time. In addition, in marketing theory they say that Word-of-Mouth communication is of the most efficient ways of promoton since they are more trustwirthy from the point of view of consumers. These viral videos imitate WoM effect, and this can also popularize the product.

    This was in short why we have come to this decision))

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  4. Dear Elena,

    we are going to dwell on positioning and pricing issues in another post) Just a little patience and we'll discover this top secret)

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  5. Thanks for the detailed information on your promotion strategy!

    You have many tools you're going to use to increase the awareness of your consumers in WAVE product. However, will you use all these tools to the same extent, or will you put more stress on some of them? In other words, will there be the principal and most important tools you are going to use in your strategy?

    One more idea came to my mind about the promotion. In my opinion, selling WAVE (may be in some small packages) in bundle with some other products may increase the number of people who will really try the product, not only hear about it.

    However, the question is 'to which products it may be bundled so as not to cannibalize the sales of the other Neutrogena products'. What do you think about this?

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