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Dick Smith Electronics Ltd - Advertising, Media & Creative Brief
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    Dick Smith Electronics Ltd - Advertising, Media & Creative Brief Dick Smith Electronics Ltd - Advertising, Media & Creative Brief Document Transcript

    • Retail – Dick Smith Electronics – BSBADV512A Develop an Advertising Strategy and Brief & BSBADV507B Develop a Media PlanAdvertising Brief: Dick Smith Electronics LtdBackgroundDick Smith commenced operations as “Dick Smith Electronics” in 1968 in Artarmon, Sydney,specialising in electronics components for home hobbyists. Growth came during the ‘70s from theprofitability of their electronics components & kits, amateur radio & CB radio; and during the ‘80sfrom personal computers and telephone deregulation.During this phase the store’s popularity came from its responsiveness to what was new & novel, andmaking it available to consumers as quickly as possible, and from taking risks in retailing newproducts.Woolworths Limited took full ownership of the chain 28 years ago, and has progressively shifted thestores and their stocked lines away from the niche electronics home-hobbyist style of retailer to amore mainstream electrical retailer with a broader range of product lines, with the “electronics-geek” image of their typical customer of the ‘80s now projected as the image of their typical retailstore assistant, making the store a comfortable environment for people who may be technologically-challenged to go for genuine and reliable advice about increasingly complex home devices, and tomake their purchase, knowing they can pop back and discuss any set-up issues after the sale, call thestore/service line, or engage the value-added home set-up and installation service for morecomplicated products (the “Mobile Techxperts” service is tasked with ‘simplifying technology ineveryday life’ and, since launching in July 2009 has materially impacted sales growth). Dick Smithinvests continuously in the training of staff to achieve the high level of knowledge consumers expectin-store.Dick Smith also retails a range of its own store-branded “DSE” products (from memory cards to TVand DVD players), often rebranded from manufacturers whose own product is alongside it on theshelf.From its early beginnings Dick Smith has relied heavily on the usefulness of mail-order catalogues toincrease awareness, boost sales and foster engagement with consumers. Dick Smith continues toengage with their consumer in their ‘in-home’ environment through the content and servicesavailable through their website, and from the range of products able to be purchased online. In late2009 the Dick Smith website was relaunched, with online sales in the 12 months since double that ofthe previous comparative period.As a subsidiary of Woolworths Limited, the loyalty card “Everyday Rewards” is operational in DickSmith stores. The program facilitates accumulation of points relative to in-store purchase, fortransfer and redemption as Qantas Frequent Flyer Points (where consumers independently chooseto become a member of the Qantas Frequent Flyer program). The Everyday Rewards program has5.1 million registered members (in addition to Woolworths and Dick Smith, the card is also used atBig W and BWS). The loyalty card proposition has been beneficial in developing a betterunderstanding of our consumers, and it is anticipated that more efficient methods of datainterpreting and matching will increase the Group’s future ability to target our customers withcompelling offers, communicating more effectively with consumers, and developing predictiveexpertise (and associated long-range comparative merchandise forecasting capabilities) based onconsumers’ past shopping activity. The loyalty card program will also be launched as a brandedaffinity credit card financial product, increasing the Group’s volume of consumer and retailtransaction data. This direction needs to be support by the ongoing & consistent encouragement ofcustomer membership of the scheme, and a request to scan the card at every transaction, evenwhere the purchase value is below the minimum required to “earn” points.JADDAN BRUHN Page 1
    • Retail – Dick Smith Electronics – BSBADV512A Develop an Advertising Strategy and Brief & BSBADV507B Develop a Media PlanIn recent years Woolworths has experimented with Dick Smith store layouts, in-store customerservice, branding and product offering; the role of its other wholly owned chain electronics store“Tandy”; and the role BIG W plays in complimenting vs competing with aspects of Dick Smith. Someof these issues have disappointed long-term loyal customers (the hobbyists).During the last financial year 24 new Dick Smith stores were opened, 19 Dick Smith and 25 Tandystores were closed, and 40 Tandy stores were rebranded as Dick Smith. There are currently 394 DickSmith stores (the remaining 22 Tandy stores will either not have their leases renewed, or willgradually be rebranded as Dick Smith by 2012).The in-store changes and relocations, and associated staffing changes, has caused a considerableamount of disruption to customers, generated negative consumer sentiment, and disaffected long-term loyal customers unhappy with the changed focus of the brand, shifts to stocking lower marginproducts and the elimination of discontinued product lines deemed inconsistent with the store’sbranding.Marketing ObjectivesIncrease sales by 10% during campaign period.Increase average per customer spend by 7% during campaign period.Advertising ObjectivesIncrease perception in target audience that Dick Smith is the electrical retailer they recommend tofamily and friends by 35%.Increase perception in target audience that Dick Smith staff are friendly and authentic by 30%.Target AudienceMales 25-45, employed, married with children, dwelling in greater suburban Sydney.Brand History & PositioningPositioned as the store you go to, to find out more about the high-value electrical products you wantbut may not fully understand, where you can make your purchase safe in the knowledge that theperson giving you advice knows what they are talking about. “Dick Smith: Talk to the Techxperts”.Competitors• Harvey Norman – 160 stores• Jaycar Electronics – 58 stores• Officeworks – 128 stores• Australia Post – 4,462 outlets (though not all in the POST SHOP format)• JB Hi-Fi – 131 stores• Bing Lee (incl Sony Centre concept stores) – 43 (NSW and ACT only)Competitor’s AdvertisingTVC, print (newspaper & magazine), outdoor, online banner ads & store website, social media, radio,electronic direct mail, direct mail, in-store.Current Media StrategyTVC, print, online, in-store, direct mail, social media.Key Message / USPReliable advice at no extra cost.JADDAN BRUHN Page 2
    • Retail – Dick Smith Electronics – BSBADV512A Develop an Advertising Strategy and Brief & BSBADV507B Develop a Media PlanTone / MannerFriendly, fun, not overly technical or patronising, inviting, reassuring.MandatoriesCompany logo and branding (Dick Smith: Talk to the Techxperts), everyday rewards loyalty cardimage and website details, web address and social media handle, store locator detail.Budget$6,000,000TimingMid September to Mid December 2011JADDAN BRUHN Page 3
    • Retail – Dick Smith Electronics – BSBADV512A Develop an Advertising Strategy and Brief & BSBADV507B Develop a Media PlanSWOT ANALYSIS – Dick Smith Electronics LtdSTRENGTHS• Brand perceived to be authentic & honest• Program to continuously train staff• Strong supplier relationships• Effective online strategy• Successfully able to leverage reputation for expert advice intovalue-added service (Mobile Techxperts in-home service)• Retail stores well positionedWEAKNESSES• Disruptive store location changes irritate customers• Current & future direction as electrical retailer disaffects loyaloriginal customers who want electronics components• House brand retail strategy very poorly executed, with uncertainfuture• Consumer confusion over competition with, and then absorption of“Tandy”• Fractured branding• No in-store affiliated product financing optionsOPPORTUNITIES• Growing consumer interest in complex electrical devices• Current and future electrical devices provide potential for value-added products / services (i.e. rebranding & reselling SIM cards,internet services)• Growth in development of technologically advanced householdelectrical devices continually grows supply of new potential productlines• Gradual reduction in cost price of technologically advanced devicescontinues to grow their market appealTHREATS• Subsidiary of larger retail group – may be rebranded, absorbed,sold-off, closed down as and where parent deems it appropriate• Competitors have broader diversity of product categories and areless sensitive to fluctuations or changes affecting electrical devices• Consumer confidence and economic fluctuations directly impactretail activity• All stock is imported, profit margins sensitive to fluctuations incurrency exchange rates.JADDAN BRUHN Page 4
    • Retail – Dick Smith Electronics – BSBADV512A Develop an Advertising Strategy and Brief & BSBADV507B Develop a Media PlanThe Media BriefDick Smith Electronics LtdMedia ObjectivesThe Media Plan is designed to reach the majority of the target audience with a frequency ofat least four times during the campaign period. Utilising the selected media the campaignflight pattern is continuous with bursts of activity at key points during the campaign;familiarising the target with the campaign message and inspiring a call to action as keyevents during the campaign promotion approach.Varying the media utilised and shaping the communication around the target’s media andlifestyle habits, acting on the target’s creative instincts and interest in finding out more,reducing wastage and acting to ensure the target is exposed to the campaign messagemany times over the campaign period is best achieved through the media selected, avoidingheavily pushing the campaign message in traditional media only, which may negativelyimpact the target’s perception of the advertisement’s focus.Geographic areas to be coveredThe draw area is metropolitan Sydney. Target audience lives and conducts their life in thegreater suburban area of Sydney, with a specific focus on the areas of more notablepopulation density, and areas where there is a greater propensity for households with two ormore children, i.e. Western Sydney.When do we talk to themThe store retails items that cover purchase cycles of differing lengths. Campaign periodcoincides with tax-return time, during which households are more likely than at any othertime of the year to receive cash lump-sums. To establish a connection with the store &encourage an in-store visit, the target may be effectively reached through morning radio,evening television, and through print advertisements (newspapers). Online banner ads onnews/entertainment websites can effective reach the target when they have the time andcapacity to browse the online store.Creative requirementsBright and loud to encourage action and generate desire for the products Dick Smith retails,including functioning sequences of electrical appliances, home theatre devices andcomputer technology.JADDAN BRUHN Page 5
    • Retail – Dick Smith Electronics – BSBADV512A Develop an Advertising Strategy and Brief & BSBADV507B Develop a Media PlanMedia Plan BudgetSeptember to December 2011Dick Smith ElectronicsSEPT SEPT SEPT SEPT OCT OCT OCT OCT NOV NOV NOV NOV NOV DEC DEC DEC DEC TOTAL4-10 11-17 18-24 25-1 2-8 9-15 16-22 23-29 30-5 6-12 13-19 20-26 27-3 4-10 11-17 18-24 25-31RadioNOVA FM (mon-fribreakfast x 6 per day) 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 $153,000NewspaperMX (mon-fri)1 x Full Page376mmx262mm perday 49,282 49,282 49,282 49,282 49,282 49,282 49,282 49,282 49,282 49,282 49,282 49,282 49,282 49,282 49,282 49,282 49,282 $837,797Onlinedailytelegraph.com.auLeaderboard(728x90pixels) -weekly 11,250 11,250 11,250 11,250 11,250 11,250 11,250 11,250 11,250 11,250 11,250 11,250 11,250 11,250 11,250 11,250 11,250 $191,250Sub Total $1,182,047cost per tarpTelevisionSydneyChannel 7 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 2,500.00 3,000,000.00Channel 9 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 2,000.00 1,800,000.00Channel 10 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 2,500.00 3,000,000.00Sub Total $4,800,000.00FINAL TOTAL $5,982,047.40JADDAN BRUHN Page 6
    • Retail – Dick Smith Electronics – BSBADV512A Develop an Advertising Strategy and Brief & BSBADV507B Develop a Media PlanThe Creative BriefClient: Dick Smith ElectronicsBrand: Dick Smith: Talk to the TechxpertsDate: 29/09/2010Account Director: Jaddan BruhnCreative Team: Jaddan BruhnRole for AdvertisingIncrease foot-traffic to Dick Smith retail stores, and visits to online web-store to increase sales by 10% &average per customer spend by 7% during campaign period. Increase perception in target audience that DickSmith is the electrical retailer they recommend to family and friends by 35%. Increase perception in targetaudience that Dick Smith staff members are friendly and authentic by 30%.Target AudienceDemographics – Males 25-45, employed, married with children, dwelling in greater suburban Sydney.Psychographics – Conventional Family Life, balancing budget between mortgage payments (or strict saving forhome deposit) and competing needs of family, but eager to keep up with contemporary gadgetry and thelatest home technology within what he could afford. While his father may’ve spent his spare time betweenthe hardware store and the shed, our target likes to keep up with the latest electronic devices and will spendmoney on items for the home that will allow him to show off to friends & family, and, even if purchased oncredit, act as a visible symbol of status. He may have had to give up aspects of his old life to settle down andhave kids, but everyone in the family can enjoy a widescreen TV, a Bluray and an Xbox.Behaviour and usage – Males in this demographic are notorious for not asking for directions, not readinginstructions and for not speaking-up for fear of appearing incapable (emasculated). Unless the person they arespeaking to is an “expert”. The target audience is comfortable going to Dick Smith to ask a few questions &make a purchase as it is a safe environment to clarify a technical quandary without feeling patronised orinadequate, and, based on the quality of the in-store experience will likely return to make repeat purchases orfeel confident to translate future transaction events to the on-line store, confident that there is the scope tohave an issue clarified should there be a technical glitch.Key consumer insight –When I want to purchase a new component for my home theatre set-up I know I can trust the people at DickSmith to give me the advice I need without trying to push me into buying a whole new system.Key Thought or USP – Reliable advice at no extra cost.SupportAustralia’s largest chain of dedicated electrical retail stores, with in-home installation and advice available, freehome delivery for online purchases, customer loyalty program through “Everyday Rewards” and acontinuously trained sales-force recognised for their expertise and approachability.Tone and Manner - Informative, fun and friendly.Desired Mediums - TVC, Print (newspaper), radio, online.Budget - $6,000,000Timing - Mid September to Mid December 2011MandatoriesCompany logo and branding (Dick Smith: Talk to the Techxperts), everyday rewards loyalty card image andwebsite details, web address and social media handle, store locator detail.JADDAN BRUHN Page 7