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IMC Project - SonicFresh
Group: On Your MarComm
Dayvisson Dasilva
Adam Gostel
Kalyan Vandana
Mei Wu
Tingli Wan
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Table of Content
Executive Summary…………………………………………….……..…………3
Findings……………………………….………………………………….……….4
Problem Summary………………………….……………………………..……..6
Recommendations……………………………………….……..………………..6
Conclusion…………………………………………………………………....…14
Risk Assessment…………………………………….………………………….15
Exhibits.......................................................................................................16
Works Cited................................................................................................23
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Executive Summary
SonicFresh, targeting well-educated middle-class customers who are between 24-44
years old, is a brand new product of Remington with an extremely low awareness (close
to 0%) compared to other Remington products or other similar products in the competitive
but promising oral care market now.
While improving oral health and attractiveness addressing “desirable, fresh, clean, sexy,
younger, beautiful, shinier, healthier, stronger” is the god particle of SonicFresh, it is
differentiated from other similar products that focus only on oral cleanness.
Our marketing objective is to achieve 1 million dollar sales as fast as possible amongst
our target market by delivering the promise of “rejuvenate, beautify and attract”,
communication objective to achieve 1% of brand awareness in the United States within
one year by using purpose-driven marketing strategies as well as social media.
To increase the low brand awareness, we have set “TRY” as the big idea. We want to
convince customers that it’s worth a try and it’s good to try. With “Try” being the big idea,
6 strategies are developed in total from the aspect of purpose-driven marketing and social
media, maximizing the possibility of our target market to try SonicFresh in order to
ultimately achieve higher brand awareness and sales goals. For purpose-driven
marketing, customer would try because they are connected emotionally, they believe they
can do something good by trying; in terms of social media, every effort we make is to
make sure that SonicFresh is known and tried by more people. We promote SonicFresh,
customers keep trying, brand awareness and attitude are improved, and we make the
profit. Nevertheless, it is also realistic to assume that a few risks are associated with this
IMC strategy both internally and externally.
While purpose-driven marketing is a special and effective strategy to catch customer’s
eyeballs, social media marketing is one of the most affordable ways to brand a business
in a short-term. Of course it’ll be better if both can be initiated at the same time, but if only
one will be considered first because of time constraint, budget limits, or other factors, then
social media is recommended in that, given an increasingly growing group of millennial
fans, it can boost traffic, expand sales, and increase the return on investment faster than
other means, and results can be seen quickly within a short time.
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Findings
Industry Analysis
In 2013, the oral care industry experienced a value growth of 2% hitting almost $7.6 billion
in revenues. Under the oral care industry, electric toothbrushes saw the strongest growth,
rising by 4% to reach $764 million. [1] Remington’s strategy to bring its own sonic care
toothbrush to the market will find a healthy and steady growing industry whose risk
indicators based on industry ROI is 45% and the Industry loan failure rate is 11%. [2]
Procter & Gamble Co, Colgate-Palmolive and Johnson & Johnson Consumer Products,
account for retail value share of 62% in oral care industry in the US. The industry is
predicted to increase by 11% in value terms at constant 2013 prices over the forecast
period, to reach retail sales of $8.4 billion in 2018. For years, Procter & Gamble Co retains
a retail value share of 33% Oral and a value CAGR of 2% at constant in 2013. However,
Philips Oral HealthCare saw the strongest growth in oral care in 2013, based in part on
the growing desire for premium oral care products and electric toothbrushes and new
product entries in the same. Remington is entering a very competitive industry but with
many opportunities especially in the electrical toothbrush category.
Due to the ever-increasing level of disposable income and health consciousness across
the U.S more customers are willing to trade up to more premium-positioned products such
as Remington. Electric toothbrushes experienced a rise by CAGR of 3% in value terms
at constant 2013 prices to reach $891 million. With the increasing demand for innovative
toothbrushes, prices will also increase and companies will concentrate their efforts to
provide consumers with more benefits and better features to allow consumers to get the
best value for their money.
Furthermore, according to a research, 56% of users currently use a manual toothbrush,
81% of manual users would consider purchasing an electric toothbrush, 95% of manual
users indicate Remington as a brand they would trust in the category. (Market Research:
My-Take Home User Panel test from Remington, 2014)
SonicFresh SWOT Analysis
Strength Opportunity
● New Technology and higher
performance
● Healthier oral protection
● Personalized design
● Continuous growth of oral care industry
● Millennial trend from manual toothbrush to
electric one
● High quality and brand loyalty of Remington
Weakness Threaten
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● Relatively high list price ● Economic and market fluctuations
● Fierce competition and new entries
● Lack of motivation and engagement internally
● Lack of budget
Remington and SonicFresh
Remington is a subsidiary of Spectrum Brands Holdings whose headquarters is in
Madison, WI USA. Spectrum Brands first product offering was a French made battery, in
1906, which is now known under the brand name Rayovak. Remington was established
in 1936 with their first product offering of electric shavers. Spectrum Brands is a
worldwide company that produced net sales of over $4 billion in 2012.
(http://www.spectrumbrands.com/aboutus/) Remington very recently launched the
SonicFresh toothbrush with a very “soft launch” for the time being. If looking for
information on the toothbrush there is little information available and it is for sale only on
select online merchandise retailers, many of them discount retailers. Some website that
have SonicFresh for sale are Amazon.com ($59.24) Groupon.com ($49.99) and Yipit.com
($49). All websites advertise that the original MSRP for the product is $69.99.
Furthermore, according to a market research (My-Take Home User Panel test from
Remington, 2014), it’s overall rating is 86%, 86% of people think the Remington
toothbrush (SonicFresh) performs better than their current toothbrush, 91% of customers
prefer the slim ergonomic design compared to their current toothbrush, and 91% of them
will recommend the Remington toothbrush to a friend.
Target Market
SonicFresh is targeting well-educated 24-44 year old middle-class millennials who were
born between late 1970s and early 2000s.
A series of characteristics of this generation lead to the focus of SonicFresh on this
demographic range. First, the millennials are known as “Generation Me” as they are more
self-centered than other generations. This leads to the fact that they put extreme attention
on themselves regarding good looks, a healthy body and a high quality of living. With the
goal of promoting oral attractiveness, SonicFresh can directly target the ego of the
millennials and prompt the purchase intention by promoting beauty and attraction.
Second, the millennials are more open-minded and more willing to accept changes and
new things. Electric toothbrushes, although first introduced to the market years ago, is
still perceived as something new compared to the traditional manual toothbrush. The
target customers of 24-44 year olds would be more willing to switch from traditional to
electric toothbrushes once they are well aware of their benefits. Third, millennials focus
less on savings and tend to purchase more than what they need. This fact reduces the
negative impact of high prices on electric toothbrush sales. Millennials tend to care less
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about the money than the benefits of the product they purchase. Giving these facts, we
should focus our marketing target audience on the age range from 24 to 44 year old.
In terms of education and income level, we believe that with a price around $60,
SonicFresh can’t solely focus on all millennials but on a more specific well-educated
audience. Middle class people with good educational background tend to care more about
inner-beauty along with their appearance. Oral attractiveness focuses not only on
beautiful smiles but also on internal oral health. Well-educated people have a better
understanding of the importance of oral health and have a higher income to effectively
solve their oral concerns. By targeting the middle class, SonicFresh offers them an
alternative way of improving oral strength without going to the dentist frequently; saving
their busy work-life schedule.
Problem Summary
SonicFresh is a brand new product of Remington with extremely low awareness (close to
0%) compared to other Remington products or other similar products in the market now.
However, with the advanced Sonic Pulse Technology, it sets the Remington SonicFresh
apart from the rest with a clear message to be delivered: “Leave your mouth, breath and
teeth feeling clean, fresh and naturally white.” For now, SonicFresh only promotes
through their own website with product features as well as a short video and partners with
few online retailers such as Amazon, Groupon, etc. How to increase its brand awareness
through effective strategies amongst the target market as fast as possible, while at the
same time maximizing its profit based on both marketing and communication object, is
the core of this paper.
- Marketing Plan Objective: Achieve 1 million dollar (1M/$60 unit price=16,667 units)
sales as fast as possible amongst the target market by delivering the promise of
“rejuvenate, beautify and attract.”
- Communication Plan Objective: Within 12 months, achieve 1% of brand
awareness in the United States (320M*1%=3.2M population) by using purpose-
driven marketing strategies as well as social media to effectively communicating
its big idea “Try”.
Recommendations
Purpose-Driven Marketing
While SonicFresh is delivering its key message of “Leave your mouth, breath and teeth
feeling clean, fresh and naturally white”, we believe oral protection is something far more
than this. Stressing the importance of oral health while citing a country with extremely
poor oral health and delivering the wish worldwide that we want to live in a better planet
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with better oral health are believed to be a special and more effective way to raise societal
awareness and support which could ultimately help achieve our objectives amongst the
fierce competition in this market.
Our team recommends Somalia as the target country for this purpose-driven marketing
campaign. Being a war-torn country, Somalia has suffered through decades of extreme
poverty. Statics show that Somalia is one of the countries with worst oral care [3]. The
oral health services are very basic and the ratio of patients to dentists is incredibly high.
People from urban areas don’t even have a concept of dental care. People who serve as
dental doctors are called “Mo-Alem” in the local language, meaning “teacher”, they are
still using crude tools such as pliers to pull teeth [4]. Besides the fact of poor oral care
conditions, Somalia is also one the poorest countries in the world. Somalia has big
exposure in the media, people know about it and could easily relate it with a country where
a good cause would be appreciated.
Strategy 1: Donate free toothbrush
Giving out free toothbrushes (not necessarily SonicFresh) will be the most cost-efficient
and direct purpose driven marketing approach amongst our recommendations. By
donating toothbrushes we want to educate the local Somalis of the importance of oral
care and offer them basic tools in daily cleanness. Our team plans to donate 1 million
toothbrushes throughout the whole marketing campaign (initially donate 10% of the total
units and increase donations depending on sales). If we can deliver the 1 million
toothbrushes properly we can cover almost 10% of the total population (10.5 million
population in 2013). We will market this donation by printing a coupon on the product
package saying: “We will donate one toothbrush to Somalia by purchasing this product.
Let’s make the world smile together.”
As calculated, donating toothbrush sounds costly but it’s actually a very cost-efficient and
targets directly our 24-44 year old customers who have a strong social welfare
consciousness in comparison with other generations. On average one toothbrush costs
30 cents [5], transportation/distribution/administration costs up to $60,000. Our total cost
for the first two weeks of the marketing campaign sums up to $360,000. Assume that the
contribution margin of a SonicFresh is $42 (gain 70 cents out of each $1: 60 sales price
X 0.7 profit margin), which is probably slightly lower than the real number; we need to sell
8,571 (360,000/42) units of SonicFresh toothbrushes to break even. This number is far
less than our sales goal of 16,667 units; our team believes that it won’t take long for us to
break even. As we build a positive brand image by promoting oral care in Somalia, we
would also enhance customers purchase intention in the long run. By doing good we show
customers a good CSR and give them incentives to try our product while helping another
country in dealing with its poor oral care condition.
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Strategy 2: Donate money to Operation Smile [6]
Along with donating toothbrush, we can also donate to the charity organization Operation
Smile. This is a volunteer group that helps operate on children with Cleft lips to heal their
smiles and transform lives across the globe.
By donating money to this organization, our company can do good with a small initial
investment. We don’t need to send our people to Somalia, which requires series of
complex issues including employee insurance, flights, supply, etc. We will donate part of
our revenue or net income from SonicFresh and make consistent contributions to
Operation Smile. The organization will then send their volunteers to Somalia to heal the
local children with Cleft lips who have no access to proper medical treatments. In this
way, we can also cooperate with the organization to fully use their volunteer resources to
distribute toothbrushes from the previous strategy. As part of purpose-driven marketing,
we will market our cooperation with Operation Smile on the product package, encouraging
millenniums to do good and contribute to the society through an easy, fast and direct
approach.
It’s not recommended to donate all money at once, but taking out 1%(calculate predicted
sales/net income for the first year x 1% to give an idea of how much we can donate) of
the net income or sales for donation to Operation Smile. By giving a percentage, we would
have a better argument to encourage customers’ purchase intention. We will have to
educate customers that the more they buy, the more they contribute. In order to make
this approach believable, we will publish our donation results through social media, to
keep customers informed and highly involved.
Since we donate a percentage of the net income or sales, the break-even calculation is
not pragmatic. But we believe that the cost won’t be too high to be acceptable. In a long-
term strategy perspective, companies would be willing to do good in order to build a good
CSR and strong brand awareness.
Strategy 3: Collaborate with ADA and provide oral care service
The American Dental Association (ADA), a not-for-profit organization founded in 1859, is
the nation's largest dental association, representing more than 157,000 dentist members.
It is committed to its members and to the improvement of oral health for the public. Since
SonicFresh's commitment is in line with the ADA, we can, at the same time, collaborate
with ADA by donating, etc. as mentioned above in strategy 2. With ADA’s huge power
and influence in oral health, SonicFresh can better meet its commitment and promise. It
is widely expected that, with the donation, ADA would send its volunteer dentists to
Somalia, provide necessary dental/medical equipment, service, education, etc., and
improve the overall oral health quality in Somalia.
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Since purpose-driven marketing is a strategic way to better connect with the whole
community emotionally, which will indirectly increase our social image and intangible
assets with growing transparency, channels are needed to effectively deliver these
“purposes” to customers and obtain greater societal support. In addition to promoting on
product packages, we should keep potential customers updated about how their money
is making a difference through our donation and keep posting news about our doing good
cause on both the product website and social media venues. Update our own yearly
online PDF version of “Charity White Book” and promote through oral-health related prints
and NGO websites about our charitable initiatives. What’s more, a short video in the form
of public service announcement featuring poor oral condition in Somalia, our collaboration
with Operation Smile as well as the ADA, our donations, commitment, promise and strong
will to create a healthier world can be expected as well, which will be put on YouTube,
our product website and social media later.
● Calculate brand awareness: Estimated number of people who will hear about the
campaigns, and based on channels suggested below, it can reach up to 10M
● Channels: Product package; Product website; Facebook; Twitter; Oral-health
prints such as <<Journal of ADA>>; NGO websites; YouTube video
● Main cost calculation: Internet budget (includes website, FB, Twitter, YouTube,
etc.) $5.5M (per month); <<Journal of ADA>>: $8K (per month); Video produce:
$0.5M <http://televisionadvertising.com/faq.htm>
Social Media
While purpose-driven marketing is a special and effective strategy to catch customer’s
eyeballs, social media marketing is one of the most affordable ways to brand a business,
promote products and increase the return on investment. Social media will increase
exposure, boost traffic and expedite sales given an increasingly growing group of
millennial users.
“A significant 89% of all businesses that have a dedicated social media platform as part
of their marketing strategy reported an increase in their market exposure”; “75% of
marketers reporting positive results in terms of traffic increase as one of the major benefits
of social media”; “By spending as little as 6 hours per week, 64%+ of marketers see lead
generation benefits with social media”; and “more than half of marketers who have used
social media marketing for over 3 years reported an increase in sales over that
period”.(2013 Social Media Marketing Industry Report)
Strategy 4: Facebook (Ad Campaign)
As part of the over all marketing communication strategy, our team recommends that
Remington SonicFresh electric rechargeable toothbrush should be introduced in the
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social media space, specifically on Facebook where the potential of reaching our target
audience is very high. According to the recent findings by market researcher Morpace in
the U.S, one-third of the online time spent per week by people aged 18-44 is spent on
Facebook. One of the most interesting stats from the same study showed that online
users making at least $100,000 annually spent the most time on Facebook considering
the web as a whole [7]. So this is a great space for raising brand awareness of our new
product SonicFresh.
At the outset, we decided to see what the other main players in the market Philips Sonic
Fresh, Braun Oral-B and Crest Spin brush were doing. Among the three, Philips Sonic
Fresh is doing a fantastic job so far as its page is more focused on advertising its electric
tooth brushes with a cover page featuring a female model using the toothbrush and the
page is visually appealing with photographs of smiles of children and families, interesting
tidbits about oral care, engaging quizzes in its posts. The other two brands have low
presence and are doing an almost negligible job on raising their awareness of electric
toothbrushes on Facebook.
Currently, the RemingtonReady Facebook page is the only way one can find more about
Remington Ready products on Facebook. Almost 99% of all reviews about Remington
products are positive and the customer feedback indicates their belief in the high quality
of Remington products they’ve purchased. However, this page focuses mainly on men’s
and women’s hair care and it is hard to introduce a new product like “toothbrush” on the
same page. Since, we are creating a new product category (Electric Rechargeable
Toothbrushes) under the Remington brand name, it is suggested that we would have to
go the extra mile in creating brand awareness about our new product and therefore create
a new Facebook page where the new users can learn more about SonicFresh.
More importantly, our team believes that Remington should create an “ad campaign” on
Facebook highlighting the advantages of SonicFresh electric rechargeable toothbrush.
One “ad set” would suffice to raise the brand awareness of Sonic Fresh for the initial 6-8
weeks. Every click on a Facebook ad would be able to redirect the traffic to the Remington
Products website where they can now have a separate category title called “Oral Care”
under which SonicFresh can be introduced. These “website referrals” can redirect our
target customers in the ages 24-44 to the Remington Product website.
One reason why Remington should leverage Facebook ads is that Facebook.com has
the maximum traffic amongst social media websites in the world. Secondly, the cost of
advertising on Facebook is the cheapest way to reach maximum number of audience.
(Exhibit #6) Another important reason is that Facebook has an intelligent way of
redirecting our ads to our specific target market as it enables one to choose which specific
target audience to chose based on their demographics such as age, gender, education,
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income level, education level, generation and their buying preferences, lifestyles, hobbies
etc.
Choosing the following parameters enables us to reach a target audience of 4,800,000
people within the U.S (Exhibit #7).
● Age group: 24-44
● Generation: Millennials
● Behaviors: Purchase Behavior> Buyer profiles
● Headline of our Facebook Ad: Remington SonicFresh
● Tagline: Try our brand new Electric Rechargeable Toothbrush based on advanced
Sonic Technology # Easy to use # affordable # rejuvenate and beautify your teeth.
Coming to the budget, our company can chose a time-bound fixed budget or a daily
budget that can be paused and varied from time to time on Facebook. A minimum of $80
a month is recommended to experiment and observe the conversion trend. And since
budget can be incrementally varied, depending on the conversions, we can vary it
appropriately from time to time.
Strategy 5: Twitter (Instant Discount)
SonicFresh should use Twitter as a means of providing a discount to the end consumer
at the Point of Sale to entice them to try the product. In order to do this SonicFresh should
either incorporate a code that users can Tweet while in a store buying the product or put
an attachment on the package stating the same (once the product has been officially
launched and enters the brick and mortar storefronts). This will draw attention to the users
by advertising not only a discount but Twitter as well since Twitter is one of the most
popular Social Media venues in the world. According to Mediabistro.com there are over
1 billion Twitter users throughout the world. Moreover, 500 million Tweets are sent daily.
(http://www.mediabistro.com/alltwitter/social-media-statistics-2014_b57746).
Due to the reach Twitter encompasses, this would be an incredibly effective way to drive
last minute sales; potentially impulse buys at a relatively affordable rate. The package
should offer approximately a $10 off coupon through Twitter. This will still allow
Remington to make decent profit off the product and it is still priced more than what they
are selling for on some online discount retailers like Groupon.com. Furthermore, not
everyone will take advantage of the promotion but still may be drawn to the product due
to the Twitter logo. The fees for the Twitter promotion are fairly minimal as well according
to MackCollier.com (http://www.mackcollier.com/cost-of-social-media-in-2012/)
● Average Initial Account Set-Up Fee: $500-$1,000
● Average Monthly Account Management/Training Fee: $500-$1,500
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● Average Social Media Training/Consulting Fees:
Hourly: $100-$250 per hour
Half Day (up to 4 hours): $2,000-$3,500
Full Day (up to 8 hours): $4,000-$6,000
Twitter is a very successful Social Media provider that extremely popular and relatively
affordable means of promotion. Moreover, the average Twitter user uses mobile devices
to Tweet “on the go”; 78% of twitters 255 million active monthly users. The Twitter user
population falls into our demographic and psychographic categories of SonicFresh
products: active, on the go, young adults that have mobile devices; this implying that they
have a certain amount of disposable income. (Exhibit #1 for a sample of the Twitter
promotion)
Strategy 6: Gamification (Point System)
As one of Remington’s strategy to increase awareness for its brand new product, we
recommend the adaptation of Gamification to increase brand awareness, engagement
and eventually loyalty from customer trying the new SonicFresh. The Gamification will
motivate first movers to share the product with their social network. The main idea is to
recognize and reward all new customers who help promote the new product launch.
Gamification will help to receive fast feedback, offer transparency, competition,
collaboration, sense of community for brand awareness having an exponential numbers
of new customers share the product big idea or TRYING the product to increase oral
attractiveness.
The success of gamification is driven by novelty and hype; however, it will become a
highly significant trend over the next five years. By 2014, more than 70 percent of Global
2000 organizations will have at least one "gamified" application to increase brand
awareness and customer loyalty. [9] 51% of consumers agree that if a layer of competition
were added to everyday activities, they would pay more attention to their behaviors and
actions. [10] Gamification increases social share rates by an average of 22 percent. [11]
Encouraging users to participate with intent resulted in thousands of daily app logins, with
users logging in an average of 6 times each. Statistics show that companies that offer
rewards card programs see 46% higher customer spending. [12]
Therefore, we highly recommend Remington to implement Gamification work in
partnership with Bunchball and their Nitro technology as they lead in Gamification
consulting solutions. Its gamification technology holds a record of accomplishment of
increase average time spent on website by 29% and boost page views by 187%. Social
media will be the most prevalent place where consumers will be discussing and affecting
the image of Remington’s new SonicFresh. The Nitro technology used by Bunchball will
create hash tags and monitor services to track conversations for a cross-service social
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media monitoring. It will give real-time feedback, customer interaction, and incentives for
customer to try making purchases online or in-store and increase social media influence.
Bunchball cloud based gamification engine would be easily adapted with SonicFresh
product website to drive sales and increase ROMI for short and long term. By using
Gamification as part of our IMC proposal, our product awareness efforts would be
expected to increase by at least 20% due to social media effect.
An initial budget would include items such as development costs, administration,
gamification technology licenses, prizes, and upgrades. In order to develop this
Gamification Campaign the initial cost of implementation will be in the range of $30k -
$50k. The budget will include items such as development costs, administration,
gamification technology licenses, and upgrades. Follow up maintenance and consulting
services by Bunchball will cost around $800/monthly. The campaign should last for one
year and the giving away promotional coupons and free prizes will cost $60K. Therefore,
the total cost for 1 year of this Gamification strategy will be close to $120K.
As a result, Remington’s SonicFresh Gamification will directly contribute to Remington’s
brand awareness and sales goal to hit 1 million dollar sales and increase its U.S brand
awareness becoming a new competitor player on the oral industry.
The program will take place right after the initial purchase as follows:
Step 1 – After purchase new customer would receive a special code to sign up as a new
product community member. Upon registration, customers would automatically enter to
win a toothbrush head replacements prize.
Step 2 – Right after registration, customers would also receive a coupon to share on his
social network for other people to TRY the new toothbrushes. This code would give a
promotional price to be determined by Remington. New customer’s referrals would need
to sign up on the community to purchase product with discount.
Step 3 – New customers and their referrals would then automatically become part of the
gamification strategy. Each activity performed in the implementation tactics would add
points to future rewards such as additional discounts and coupons. The higher level of
achievement would be Attract level where consumers then become product Ambassador
and automatically qualify for FREE trial of new Remington Oral care products. This
special group of customers would also become part of a special test group for
Remington’s future product launch.
Step 4 – After first year of Gamification, Remington will have enough product awareness
and a database of loyal customers and a decision would be made to take gamification to
a whole new level of Marketing Strategy such as Brand Attitude
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Conclusion
Since the 1% brand awareness objective (around 3.2M population) within one year can
eventually be achieved through the strategies analyzed above within 1 year (Exhibit #4
“IMC Proposal Summary”), fulfilling the 1M dollar sales (16,667 units) goal as fast as
possible can be easily expected as well. While improving oral health and attractiveness
addressing “desirable, fresh, clean, sexy, younger, beautiful, shinier, healthier, stronger”
is the god particle of SonicFresh, it is differentiated from other similar products that focus
only on oral cleanness.
To increase the brand awareness of SonicFresh from almost 0%, we want to convince
customers that it’s worth a try and it’s good to try, for purpose-driven marketing, customer
would try because they are connected emotionally, they believe they can do something
good by trying; in terms of social media, every effort we make is to make sure that
SonicFresh is known and tried by more people. We promote SonicFresh, customers keep
trying, brand awareness and attitude are improved, and we make the profit. Because
SonicFresh is such a brand new product to the market, to measure the results, we can
simply launch a survey every other month to see brand awareness and attitude changes;
improvements can be seen through monthly/seasonal sales statistics as well.
As analyzed above, while purpose-driven marketing is a special and effective strategy to
catch customer’s eyeball, social media marketing is one of the most affordable ways to
brand a business in a short-term. Of course it’ll be better if both can be initiated at the
same time, but if only one will be considered first because of time constraint, budget limit
or other factors, then social media is better recommended in that, given an increasingly
growing group of millennial fans, it can boost traffic, expand sales, increase the return on
investment faster than you thought, and results can be seen quickly within a limited short
time.
Risk Assessment
The IMC strategy was developed with the assumption that the SonicFresh by Remington
will be widely acceptable on the growing market of electrical toothbrushes. It assumes
that Remington’s new developed to enter the mature and competitive environment of oral
treatment will succeed. Sales will flourish and brand awareness will increase. Customers
will widely accept, adopt the product and be willing to share on their social network as
part of their oral hygiene preferable product.
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Nevertheless, it is also realistic to assume that a few risks are associated with this new
IMC strategy. Externally, economic turnarounds could reduce the purchasing power and
discretionary income of current electrical toothbrushes customers. Direct competition may
arise and new customers might just not like to idea of trying something new and stick to
the old popular brands. Internally, Remington’s budget for IMC implementation could be
huge constraint. Lack of stakeholder’s support and understanding can cause a barrier for
recommendations’ implementation, reducing drastically the probability of increasing
brand awareness by 1% and hitting the $1 Million initial financial mark. (Exhibit #5 “IMC
Risk Assessment”) However, economic turnarounds are something uncontrollable, we
have our God particle to help differentiate from competitors, budget as well as internal
understanding/support can be increased once we persuade the prospective success and
huge profit SonicFresh can bring back to Remington.
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Exhibits
Exhibit 1: Twitter Promotion
Tweet “SonicFresh” to 7999 right now to instantly receive a $10 off coupon and
give you more reasons to SMILE!
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Exhibit 2: SonicFresh Gamification Process
Implementation
Tactics
Goals Expected Results Timeline
Membership Sign Up
· Become a member of
SonicFresh Community
· Create initial BUZZ
· Create an exclusive
community of new customers
and friends
First Week after
purchase
Product Code Sign Up
· Help gather better
information on what motivates
customer to action and
demographics
· Increase brand
awareness by influencing
customer word-of-mouth and
referral
First three weeks
after purchase.
Initial Purchase
Product Feedback
· Identify and respond to
trends in customer behavior
· Find product strengths
and weaknesses
First month of
purchase
New Customer
Product Feedback
· Continue to gather data for
product improvements
· Find product strengths
and weaknesses
After 3 months of
purchase
Product/Brand
Quizzes & Surveys
· Teach customers about
SonicFresh and Remington
· Grow customer satisfaction
and willingness to promote
SonicFresh
· Meaningful interaction with
brand to help customers
recognize the value of having
other to try.
· Promote Brand and
Product awareness
· Inspire community
collaboration, improve ad
inventory and revenue by
increasing site stickiness and
page views
On a weekly regular
basis – Motivate
continual
engagement and
interaction
Social Ambassador
Encouraging and rewarding
customer interactions on social
media
Have customers sign up on
other social media channels
First 3 months of
using the product
Product Ambassador
Reward brand ambassadors by
tracking news customers who
tried the product
Have customers become
brand ambassadors
After 3 months of
using the product
18
Exhibit 3: Gamification Implementation/Budget – 1 year Program
Levels Actions Rewards Timeline Total
Cost
Impleme-
ntation
Initial Set Up · Develop Cloud Platform
· Maintenance $800/Month
Initial
Month
$50K
$10k
Refresh New Community
Member
Initial sign up
· Random selection of Coupons for
Replacement heads (1000 x $10)
1-3 months $10K
Rejuvenate Learning about product
and brand and Sharing
on social media
· Downloadable Coupons for a new
Tooth brusher for the first 2000
Brand Ambassadors
$10 OFF x 2000
1-12 months $20K
Attract Actively engaged as a
Brand Ambassador
Leaderboard visibility
· Free samples and accessibility to
try new products
· Special Prize for Top
Ambassadors
(100 x $100)
1-12 months $20k
$10K
12 months Approx.
120K
19
Exhibit 4: IMC Proposal Summary – Brand Awareness, Budget and Timeline
*Client goal is to hit 1 million dollars in sales / $59.99 (unit retail price) = 16,699 or Prox. 17,000 Units to be sold
= Approx. 17,000 Customers X 10 (each new customer shares a promotional coupon at least w ith 10 friends)
= 170,000 X 10 (the process repeats again) = 1,700,000 or 1.7Million
(Based on a tw o levelof referral system=each new customer/referralshares to 10 others on social media and the process repeats
tw ice in one year)
Strategy
Brand Awareness
Population Reach
Cost/Budget Timeline
Donate
Toothbrush
Customers who visit
Remington web and
active Facebook users.
Approx. 5,000,000
Approx. 360,000USD
covering 10% of Somalia
population, selling 8,571
units to break even
First month test
environment,
expand
depending on
result
Donate cash Customers who visit
Remington web, active
Facebook users and
Operation Smile
followers, approx.
5,000,500
1% of sales or net income.
Real donation depends on
sales, packaging change
fee included in #1 strategy
Begin donation
after 1st Qtr.
Partner with ADA Approx. 10M 0.5M+5.5M*12+8K*12=67
M
(First year)
Year-Round
Facebook Approx. 4,800,000 USD 80/ MONTH*12 Year-Round
Twitter .02% of 255 million
active Twitter users
51,000 people
Initial start-up fee: $1,000
Monthly fee: $1,000
Training fee (3 half day
trainings per year):
$3,000*3 = $9,000
Total: $11,000 for first year
Immediately
upon entering
brick and mortar
shops.
Promotion
offered for 1
year after hard
launch
Gamification Approx. 1,670,000
total*
$ 120K / year 12 months max.
GOAL 1% of 320 Million U.S
American population
(Target market) = 3.2
Million (First year)
Not available - estimation Hit 1 million
dollar sales as
fast as possible
20
Exhibit 5: IMC Risk Assessment
Risk Impact Impact
level
Risk
probability
Total
Risk
score
Prevention/
Mitigation/
Contingency Risk
Plans
E
X
T
E
R
N
A
L
Lack of
sales
Customer
not willing
to TRY
Not adding
value to
customers
Not increasing
brand
awareness
High Unpredictable
to Medium
Med ● Increase
budget and
Ads efforts for
increase
brand
Awareness
● Possible
reduction of
initial retail
price
● Partnership
with major
national
retailer
Increase
Product
Competition
Price and
quality not
comparable or
up to standards
Not gaining or
losing market
share to
competition
High Medium High ● Test market
product
before
launching
● Focus groups
and feedback
during
develop
process
● Focus on
Purpose
Driven
Marketing
Reduction
on
discretionar
y income
Change of
target market
due to
purchasing
power
High Medium Med ● Change
packaging -
cheaper
● Change target
to a lower
income
market
I
N
T
Lack of
stakeholder
engagement
Project
incomplete and
inefficient
Med Unpredictable
to Medium
Med ● Include major
decision
makers during
strategy
21
E
R
N
A
L
Taking product
out of market
development
stage
● Follow
consulting to
help
launching
product
Low
understandi
-ng of the
IMC
Lack of
stakeholders
engagement to
purse strategy
Med Low Low ● Increasing
communicatio
n and training
● Find more
specific data
and stats for
recommendati
ons
Need of
financial
resources
to invest on
IMC
Increase on
project
deployment and
development
timeline
Not hitting the
$1 MI target of
initial sales
High High High ● Use of
Remington ‘s
internal
resources and
avoid using
vendors/exter
nal suppliers
● Hire
interns/studen
ts to continue
IMC
development
22
Exhibit 6:
Source: Carter, Brian. “Why Every business should spend at least $1 per day on Facebook ads.” Web. 7 Oct 2014.
<http://moz.com/blog/1-dollar-per-day-on-facebook-ads>
Exhibit 7: Creating a Facebook Ad Targeting potential Sonic Fresh Users.
Reach: 4,800,000 people
23
Works Cited
[1] Euromonitor International from official statistics, trade associations, trade press,
company research, store checks, trade interviews, trade sources, July 2014
[2] <https://secure.fintel.us/industry-metrics/naics/42345-medical--dental--and-hospital-
equipment-and-supplies-merchant- wholesalers?action=PersistReport>
[3] <http://www.mbali.info/doc308.htm>
[4] <https://ethnomed.org/clinical/oral-health/som-oral-health>
[5]
<http://community.seattletimes.nwsource.com/archive/?date=20030615&slug=pricing15
>
[6] <http://www.operationsmile.org/our_work/medical-missions/index.html>
[7] Porterfield Amy. “3 Studies show Facebook’s Marketing Potential.” Web. 6 Oct 2014.
< http://www.socialmediaexaminer.com/facebook-marketing-studies/>
[8] 2013 Social Media Marketing Industry Report
<http://www.socialmediaexaminer.com/SocialMediaMarketingIndustryReport2013.pdf>
[9] (Van Grove, Jennifer (28 July 2011). "Gamification: How Competition Is Reinventing
Business, Marketing & Everyday Life". Mashable. Retrieved 12 February 2013)
[10] <http://www.jwtintelligence.com/2011/01/data-point-gamification-
effect/#axzz2cXE9o7W8>
[11] <http://blog.gigya.com/gamification-real-results-not-hype-infographic/>
[12] <http://www.loyaltyleaders.org/facts.php>
[13] <http://www.spectrumbrands.com/aboutus/history.aspx>
[14] <http://www.spectrumbrands.com/aboutus/>
[15] <http://www.mediabistro.com/alltwitter/social-media-statistics-2014_b57746>
[16] <http://www.mackcollier.com/cost-of-social-media-in-2012/>

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Boosting Awareness and Sales of SonicFresh Toothbrush

  • 1. ssssssssss IMC Project - SonicFresh Group: On Your MarComm Dayvisson Dasilva Adam Gostel Kalyan Vandana Mei Wu Tingli Wan
  • 2. 2 Table of Content Executive Summary…………………………………………….……..…………3 Findings……………………………….………………………………….……….4 Problem Summary………………………….……………………………..……..6 Recommendations……………………………………….……..………………..6 Conclusion…………………………………………………………………....…14 Risk Assessment…………………………………….………………………….15 Exhibits.......................................................................................................16 Works Cited................................................................................................23
  • 3. 3 Executive Summary SonicFresh, targeting well-educated middle-class customers who are between 24-44 years old, is a brand new product of Remington with an extremely low awareness (close to 0%) compared to other Remington products or other similar products in the competitive but promising oral care market now. While improving oral health and attractiveness addressing “desirable, fresh, clean, sexy, younger, beautiful, shinier, healthier, stronger” is the god particle of SonicFresh, it is differentiated from other similar products that focus only on oral cleanness. Our marketing objective is to achieve 1 million dollar sales as fast as possible amongst our target market by delivering the promise of “rejuvenate, beautify and attract”, communication objective to achieve 1% of brand awareness in the United States within one year by using purpose-driven marketing strategies as well as social media. To increase the low brand awareness, we have set “TRY” as the big idea. We want to convince customers that it’s worth a try and it’s good to try. With “Try” being the big idea, 6 strategies are developed in total from the aspect of purpose-driven marketing and social media, maximizing the possibility of our target market to try SonicFresh in order to ultimately achieve higher brand awareness and sales goals. For purpose-driven marketing, customer would try because they are connected emotionally, they believe they can do something good by trying; in terms of social media, every effort we make is to make sure that SonicFresh is known and tried by more people. We promote SonicFresh, customers keep trying, brand awareness and attitude are improved, and we make the profit. Nevertheless, it is also realistic to assume that a few risks are associated with this IMC strategy both internally and externally. While purpose-driven marketing is a special and effective strategy to catch customer’s eyeballs, social media marketing is one of the most affordable ways to brand a business in a short-term. Of course it’ll be better if both can be initiated at the same time, but if only one will be considered first because of time constraint, budget limits, or other factors, then social media is recommended in that, given an increasingly growing group of millennial fans, it can boost traffic, expand sales, and increase the return on investment faster than other means, and results can be seen quickly within a short time.
  • 4. 4 Findings Industry Analysis In 2013, the oral care industry experienced a value growth of 2% hitting almost $7.6 billion in revenues. Under the oral care industry, electric toothbrushes saw the strongest growth, rising by 4% to reach $764 million. [1] Remington’s strategy to bring its own sonic care toothbrush to the market will find a healthy and steady growing industry whose risk indicators based on industry ROI is 45% and the Industry loan failure rate is 11%. [2] Procter & Gamble Co, Colgate-Palmolive and Johnson & Johnson Consumer Products, account for retail value share of 62% in oral care industry in the US. The industry is predicted to increase by 11% in value terms at constant 2013 prices over the forecast period, to reach retail sales of $8.4 billion in 2018. For years, Procter & Gamble Co retains a retail value share of 33% Oral and a value CAGR of 2% at constant in 2013. However, Philips Oral HealthCare saw the strongest growth in oral care in 2013, based in part on the growing desire for premium oral care products and electric toothbrushes and new product entries in the same. Remington is entering a very competitive industry but with many opportunities especially in the electrical toothbrush category. Due to the ever-increasing level of disposable income and health consciousness across the U.S more customers are willing to trade up to more premium-positioned products such as Remington. Electric toothbrushes experienced a rise by CAGR of 3% in value terms at constant 2013 prices to reach $891 million. With the increasing demand for innovative toothbrushes, prices will also increase and companies will concentrate their efforts to provide consumers with more benefits and better features to allow consumers to get the best value for their money. Furthermore, according to a research, 56% of users currently use a manual toothbrush, 81% of manual users would consider purchasing an electric toothbrush, 95% of manual users indicate Remington as a brand they would trust in the category. (Market Research: My-Take Home User Panel test from Remington, 2014) SonicFresh SWOT Analysis Strength Opportunity ● New Technology and higher performance ● Healthier oral protection ● Personalized design ● Continuous growth of oral care industry ● Millennial trend from manual toothbrush to electric one ● High quality and brand loyalty of Remington Weakness Threaten
  • 5. 5 ● Relatively high list price ● Economic and market fluctuations ● Fierce competition and new entries ● Lack of motivation and engagement internally ● Lack of budget Remington and SonicFresh Remington is a subsidiary of Spectrum Brands Holdings whose headquarters is in Madison, WI USA. Spectrum Brands first product offering was a French made battery, in 1906, which is now known under the brand name Rayovak. Remington was established in 1936 with their first product offering of electric shavers. Spectrum Brands is a worldwide company that produced net sales of over $4 billion in 2012. (http://www.spectrumbrands.com/aboutus/) Remington very recently launched the SonicFresh toothbrush with a very “soft launch” for the time being. If looking for information on the toothbrush there is little information available and it is for sale only on select online merchandise retailers, many of them discount retailers. Some website that have SonicFresh for sale are Amazon.com ($59.24) Groupon.com ($49.99) and Yipit.com ($49). All websites advertise that the original MSRP for the product is $69.99. Furthermore, according to a market research (My-Take Home User Panel test from Remington, 2014), it’s overall rating is 86%, 86% of people think the Remington toothbrush (SonicFresh) performs better than their current toothbrush, 91% of customers prefer the slim ergonomic design compared to their current toothbrush, and 91% of them will recommend the Remington toothbrush to a friend. Target Market SonicFresh is targeting well-educated 24-44 year old middle-class millennials who were born between late 1970s and early 2000s. A series of characteristics of this generation lead to the focus of SonicFresh on this demographic range. First, the millennials are known as “Generation Me” as they are more self-centered than other generations. This leads to the fact that they put extreme attention on themselves regarding good looks, a healthy body and a high quality of living. With the goal of promoting oral attractiveness, SonicFresh can directly target the ego of the millennials and prompt the purchase intention by promoting beauty and attraction. Second, the millennials are more open-minded and more willing to accept changes and new things. Electric toothbrushes, although first introduced to the market years ago, is still perceived as something new compared to the traditional manual toothbrush. The target customers of 24-44 year olds would be more willing to switch from traditional to electric toothbrushes once they are well aware of their benefits. Third, millennials focus less on savings and tend to purchase more than what they need. This fact reduces the negative impact of high prices on electric toothbrush sales. Millennials tend to care less
  • 6. 6 about the money than the benefits of the product they purchase. Giving these facts, we should focus our marketing target audience on the age range from 24 to 44 year old. In terms of education and income level, we believe that with a price around $60, SonicFresh can’t solely focus on all millennials but on a more specific well-educated audience. Middle class people with good educational background tend to care more about inner-beauty along with their appearance. Oral attractiveness focuses not only on beautiful smiles but also on internal oral health. Well-educated people have a better understanding of the importance of oral health and have a higher income to effectively solve their oral concerns. By targeting the middle class, SonicFresh offers them an alternative way of improving oral strength without going to the dentist frequently; saving their busy work-life schedule. Problem Summary SonicFresh is a brand new product of Remington with extremely low awareness (close to 0%) compared to other Remington products or other similar products in the market now. However, with the advanced Sonic Pulse Technology, it sets the Remington SonicFresh apart from the rest with a clear message to be delivered: “Leave your mouth, breath and teeth feeling clean, fresh and naturally white.” For now, SonicFresh only promotes through their own website with product features as well as a short video and partners with few online retailers such as Amazon, Groupon, etc. How to increase its brand awareness through effective strategies amongst the target market as fast as possible, while at the same time maximizing its profit based on both marketing and communication object, is the core of this paper. - Marketing Plan Objective: Achieve 1 million dollar (1M/$60 unit price=16,667 units) sales as fast as possible amongst the target market by delivering the promise of “rejuvenate, beautify and attract.” - Communication Plan Objective: Within 12 months, achieve 1% of brand awareness in the United States (320M*1%=3.2M population) by using purpose- driven marketing strategies as well as social media to effectively communicating its big idea “Try”. Recommendations Purpose-Driven Marketing While SonicFresh is delivering its key message of “Leave your mouth, breath and teeth feeling clean, fresh and naturally white”, we believe oral protection is something far more than this. Stressing the importance of oral health while citing a country with extremely poor oral health and delivering the wish worldwide that we want to live in a better planet
  • 7. 7 with better oral health are believed to be a special and more effective way to raise societal awareness and support which could ultimately help achieve our objectives amongst the fierce competition in this market. Our team recommends Somalia as the target country for this purpose-driven marketing campaign. Being a war-torn country, Somalia has suffered through decades of extreme poverty. Statics show that Somalia is one of the countries with worst oral care [3]. The oral health services are very basic and the ratio of patients to dentists is incredibly high. People from urban areas don’t even have a concept of dental care. People who serve as dental doctors are called “Mo-Alem” in the local language, meaning “teacher”, they are still using crude tools such as pliers to pull teeth [4]. Besides the fact of poor oral care conditions, Somalia is also one the poorest countries in the world. Somalia has big exposure in the media, people know about it and could easily relate it with a country where a good cause would be appreciated. Strategy 1: Donate free toothbrush Giving out free toothbrushes (not necessarily SonicFresh) will be the most cost-efficient and direct purpose driven marketing approach amongst our recommendations. By donating toothbrushes we want to educate the local Somalis of the importance of oral care and offer them basic tools in daily cleanness. Our team plans to donate 1 million toothbrushes throughout the whole marketing campaign (initially donate 10% of the total units and increase donations depending on sales). If we can deliver the 1 million toothbrushes properly we can cover almost 10% of the total population (10.5 million population in 2013). We will market this donation by printing a coupon on the product package saying: “We will donate one toothbrush to Somalia by purchasing this product. Let’s make the world smile together.” As calculated, donating toothbrush sounds costly but it’s actually a very cost-efficient and targets directly our 24-44 year old customers who have a strong social welfare consciousness in comparison with other generations. On average one toothbrush costs 30 cents [5], transportation/distribution/administration costs up to $60,000. Our total cost for the first two weeks of the marketing campaign sums up to $360,000. Assume that the contribution margin of a SonicFresh is $42 (gain 70 cents out of each $1: 60 sales price X 0.7 profit margin), which is probably slightly lower than the real number; we need to sell 8,571 (360,000/42) units of SonicFresh toothbrushes to break even. This number is far less than our sales goal of 16,667 units; our team believes that it won’t take long for us to break even. As we build a positive brand image by promoting oral care in Somalia, we would also enhance customers purchase intention in the long run. By doing good we show customers a good CSR and give them incentives to try our product while helping another country in dealing with its poor oral care condition.
  • 8. 8 Strategy 2: Donate money to Operation Smile [6] Along with donating toothbrush, we can also donate to the charity organization Operation Smile. This is a volunteer group that helps operate on children with Cleft lips to heal their smiles and transform lives across the globe. By donating money to this organization, our company can do good with a small initial investment. We don’t need to send our people to Somalia, which requires series of complex issues including employee insurance, flights, supply, etc. We will donate part of our revenue or net income from SonicFresh and make consistent contributions to Operation Smile. The organization will then send their volunteers to Somalia to heal the local children with Cleft lips who have no access to proper medical treatments. In this way, we can also cooperate with the organization to fully use their volunteer resources to distribute toothbrushes from the previous strategy. As part of purpose-driven marketing, we will market our cooperation with Operation Smile on the product package, encouraging millenniums to do good and contribute to the society through an easy, fast and direct approach. It’s not recommended to donate all money at once, but taking out 1%(calculate predicted sales/net income for the first year x 1% to give an idea of how much we can donate) of the net income or sales for donation to Operation Smile. By giving a percentage, we would have a better argument to encourage customers’ purchase intention. We will have to educate customers that the more they buy, the more they contribute. In order to make this approach believable, we will publish our donation results through social media, to keep customers informed and highly involved. Since we donate a percentage of the net income or sales, the break-even calculation is not pragmatic. But we believe that the cost won’t be too high to be acceptable. In a long- term strategy perspective, companies would be willing to do good in order to build a good CSR and strong brand awareness. Strategy 3: Collaborate with ADA and provide oral care service The American Dental Association (ADA), a not-for-profit organization founded in 1859, is the nation's largest dental association, representing more than 157,000 dentist members. It is committed to its members and to the improvement of oral health for the public. Since SonicFresh's commitment is in line with the ADA, we can, at the same time, collaborate with ADA by donating, etc. as mentioned above in strategy 2. With ADA’s huge power and influence in oral health, SonicFresh can better meet its commitment and promise. It is widely expected that, with the donation, ADA would send its volunteer dentists to Somalia, provide necessary dental/medical equipment, service, education, etc., and improve the overall oral health quality in Somalia.
  • 9. 9 Since purpose-driven marketing is a strategic way to better connect with the whole community emotionally, which will indirectly increase our social image and intangible assets with growing transparency, channels are needed to effectively deliver these “purposes” to customers and obtain greater societal support. In addition to promoting on product packages, we should keep potential customers updated about how their money is making a difference through our donation and keep posting news about our doing good cause on both the product website and social media venues. Update our own yearly online PDF version of “Charity White Book” and promote through oral-health related prints and NGO websites about our charitable initiatives. What’s more, a short video in the form of public service announcement featuring poor oral condition in Somalia, our collaboration with Operation Smile as well as the ADA, our donations, commitment, promise and strong will to create a healthier world can be expected as well, which will be put on YouTube, our product website and social media later. ● Calculate brand awareness: Estimated number of people who will hear about the campaigns, and based on channels suggested below, it can reach up to 10M ● Channels: Product package; Product website; Facebook; Twitter; Oral-health prints such as <<Journal of ADA>>; NGO websites; YouTube video ● Main cost calculation: Internet budget (includes website, FB, Twitter, YouTube, etc.) $5.5M (per month); <<Journal of ADA>>: $8K (per month); Video produce: $0.5M <http://televisionadvertising.com/faq.htm> Social Media While purpose-driven marketing is a special and effective strategy to catch customer’s eyeballs, social media marketing is one of the most affordable ways to brand a business, promote products and increase the return on investment. Social media will increase exposure, boost traffic and expedite sales given an increasingly growing group of millennial users. “A significant 89% of all businesses that have a dedicated social media platform as part of their marketing strategy reported an increase in their market exposure”; “75% of marketers reporting positive results in terms of traffic increase as one of the major benefits of social media”; “By spending as little as 6 hours per week, 64%+ of marketers see lead generation benefits with social media”; and “more than half of marketers who have used social media marketing for over 3 years reported an increase in sales over that period”.(2013 Social Media Marketing Industry Report) Strategy 4: Facebook (Ad Campaign) As part of the over all marketing communication strategy, our team recommends that Remington SonicFresh electric rechargeable toothbrush should be introduced in the
  • 10. 10 social media space, specifically on Facebook where the potential of reaching our target audience is very high. According to the recent findings by market researcher Morpace in the U.S, one-third of the online time spent per week by people aged 18-44 is spent on Facebook. One of the most interesting stats from the same study showed that online users making at least $100,000 annually spent the most time on Facebook considering the web as a whole [7]. So this is a great space for raising brand awareness of our new product SonicFresh. At the outset, we decided to see what the other main players in the market Philips Sonic Fresh, Braun Oral-B and Crest Spin brush were doing. Among the three, Philips Sonic Fresh is doing a fantastic job so far as its page is more focused on advertising its electric tooth brushes with a cover page featuring a female model using the toothbrush and the page is visually appealing with photographs of smiles of children and families, interesting tidbits about oral care, engaging quizzes in its posts. The other two brands have low presence and are doing an almost negligible job on raising their awareness of electric toothbrushes on Facebook. Currently, the RemingtonReady Facebook page is the only way one can find more about Remington Ready products on Facebook. Almost 99% of all reviews about Remington products are positive and the customer feedback indicates their belief in the high quality of Remington products they’ve purchased. However, this page focuses mainly on men’s and women’s hair care and it is hard to introduce a new product like “toothbrush” on the same page. Since, we are creating a new product category (Electric Rechargeable Toothbrushes) under the Remington brand name, it is suggested that we would have to go the extra mile in creating brand awareness about our new product and therefore create a new Facebook page where the new users can learn more about SonicFresh. More importantly, our team believes that Remington should create an “ad campaign” on Facebook highlighting the advantages of SonicFresh electric rechargeable toothbrush. One “ad set” would suffice to raise the brand awareness of Sonic Fresh for the initial 6-8 weeks. Every click on a Facebook ad would be able to redirect the traffic to the Remington Products website where they can now have a separate category title called “Oral Care” under which SonicFresh can be introduced. These “website referrals” can redirect our target customers in the ages 24-44 to the Remington Product website. One reason why Remington should leverage Facebook ads is that Facebook.com has the maximum traffic amongst social media websites in the world. Secondly, the cost of advertising on Facebook is the cheapest way to reach maximum number of audience. (Exhibit #6) Another important reason is that Facebook has an intelligent way of redirecting our ads to our specific target market as it enables one to choose which specific target audience to chose based on their demographics such as age, gender, education,
  • 11. 11 income level, education level, generation and their buying preferences, lifestyles, hobbies etc. Choosing the following parameters enables us to reach a target audience of 4,800,000 people within the U.S (Exhibit #7). ● Age group: 24-44 ● Generation: Millennials ● Behaviors: Purchase Behavior> Buyer profiles ● Headline of our Facebook Ad: Remington SonicFresh ● Tagline: Try our brand new Electric Rechargeable Toothbrush based on advanced Sonic Technology # Easy to use # affordable # rejuvenate and beautify your teeth. Coming to the budget, our company can chose a time-bound fixed budget or a daily budget that can be paused and varied from time to time on Facebook. A minimum of $80 a month is recommended to experiment and observe the conversion trend. And since budget can be incrementally varied, depending on the conversions, we can vary it appropriately from time to time. Strategy 5: Twitter (Instant Discount) SonicFresh should use Twitter as a means of providing a discount to the end consumer at the Point of Sale to entice them to try the product. In order to do this SonicFresh should either incorporate a code that users can Tweet while in a store buying the product or put an attachment on the package stating the same (once the product has been officially launched and enters the brick and mortar storefronts). This will draw attention to the users by advertising not only a discount but Twitter as well since Twitter is one of the most popular Social Media venues in the world. According to Mediabistro.com there are over 1 billion Twitter users throughout the world. Moreover, 500 million Tweets are sent daily. (http://www.mediabistro.com/alltwitter/social-media-statistics-2014_b57746). Due to the reach Twitter encompasses, this would be an incredibly effective way to drive last minute sales; potentially impulse buys at a relatively affordable rate. The package should offer approximately a $10 off coupon through Twitter. This will still allow Remington to make decent profit off the product and it is still priced more than what they are selling for on some online discount retailers like Groupon.com. Furthermore, not everyone will take advantage of the promotion but still may be drawn to the product due to the Twitter logo. The fees for the Twitter promotion are fairly minimal as well according to MackCollier.com (http://www.mackcollier.com/cost-of-social-media-in-2012/) ● Average Initial Account Set-Up Fee: $500-$1,000 ● Average Monthly Account Management/Training Fee: $500-$1,500
  • 12. 12 ● Average Social Media Training/Consulting Fees: Hourly: $100-$250 per hour Half Day (up to 4 hours): $2,000-$3,500 Full Day (up to 8 hours): $4,000-$6,000 Twitter is a very successful Social Media provider that extremely popular and relatively affordable means of promotion. Moreover, the average Twitter user uses mobile devices to Tweet “on the go”; 78% of twitters 255 million active monthly users. The Twitter user population falls into our demographic and psychographic categories of SonicFresh products: active, on the go, young adults that have mobile devices; this implying that they have a certain amount of disposable income. (Exhibit #1 for a sample of the Twitter promotion) Strategy 6: Gamification (Point System) As one of Remington’s strategy to increase awareness for its brand new product, we recommend the adaptation of Gamification to increase brand awareness, engagement and eventually loyalty from customer trying the new SonicFresh. The Gamification will motivate first movers to share the product with their social network. The main idea is to recognize and reward all new customers who help promote the new product launch. Gamification will help to receive fast feedback, offer transparency, competition, collaboration, sense of community for brand awareness having an exponential numbers of new customers share the product big idea or TRYING the product to increase oral attractiveness. The success of gamification is driven by novelty and hype; however, it will become a highly significant trend over the next five years. By 2014, more than 70 percent of Global 2000 organizations will have at least one "gamified" application to increase brand awareness and customer loyalty. [9] 51% of consumers agree that if a layer of competition were added to everyday activities, they would pay more attention to their behaviors and actions. [10] Gamification increases social share rates by an average of 22 percent. [11] Encouraging users to participate with intent resulted in thousands of daily app logins, with users logging in an average of 6 times each. Statistics show that companies that offer rewards card programs see 46% higher customer spending. [12] Therefore, we highly recommend Remington to implement Gamification work in partnership with Bunchball and their Nitro technology as they lead in Gamification consulting solutions. Its gamification technology holds a record of accomplishment of increase average time spent on website by 29% and boost page views by 187%. Social media will be the most prevalent place where consumers will be discussing and affecting the image of Remington’s new SonicFresh. The Nitro technology used by Bunchball will create hash tags and monitor services to track conversations for a cross-service social
  • 13. 13 media monitoring. It will give real-time feedback, customer interaction, and incentives for customer to try making purchases online or in-store and increase social media influence. Bunchball cloud based gamification engine would be easily adapted with SonicFresh product website to drive sales and increase ROMI for short and long term. By using Gamification as part of our IMC proposal, our product awareness efforts would be expected to increase by at least 20% due to social media effect. An initial budget would include items such as development costs, administration, gamification technology licenses, prizes, and upgrades. In order to develop this Gamification Campaign the initial cost of implementation will be in the range of $30k - $50k. The budget will include items such as development costs, administration, gamification technology licenses, and upgrades. Follow up maintenance and consulting services by Bunchball will cost around $800/monthly. The campaign should last for one year and the giving away promotional coupons and free prizes will cost $60K. Therefore, the total cost for 1 year of this Gamification strategy will be close to $120K. As a result, Remington’s SonicFresh Gamification will directly contribute to Remington’s brand awareness and sales goal to hit 1 million dollar sales and increase its U.S brand awareness becoming a new competitor player on the oral industry. The program will take place right after the initial purchase as follows: Step 1 – After purchase new customer would receive a special code to sign up as a new product community member. Upon registration, customers would automatically enter to win a toothbrush head replacements prize. Step 2 – Right after registration, customers would also receive a coupon to share on his social network for other people to TRY the new toothbrushes. This code would give a promotional price to be determined by Remington. New customer’s referrals would need to sign up on the community to purchase product with discount. Step 3 – New customers and their referrals would then automatically become part of the gamification strategy. Each activity performed in the implementation tactics would add points to future rewards such as additional discounts and coupons. The higher level of achievement would be Attract level where consumers then become product Ambassador and automatically qualify for FREE trial of new Remington Oral care products. This special group of customers would also become part of a special test group for Remington’s future product launch. Step 4 – After first year of Gamification, Remington will have enough product awareness and a database of loyal customers and a decision would be made to take gamification to a whole new level of Marketing Strategy such as Brand Attitude
  • 14. 14 Conclusion Since the 1% brand awareness objective (around 3.2M population) within one year can eventually be achieved through the strategies analyzed above within 1 year (Exhibit #4 “IMC Proposal Summary”), fulfilling the 1M dollar sales (16,667 units) goal as fast as possible can be easily expected as well. While improving oral health and attractiveness addressing “desirable, fresh, clean, sexy, younger, beautiful, shinier, healthier, stronger” is the god particle of SonicFresh, it is differentiated from other similar products that focus only on oral cleanness. To increase the brand awareness of SonicFresh from almost 0%, we want to convince customers that it’s worth a try and it’s good to try, for purpose-driven marketing, customer would try because they are connected emotionally, they believe they can do something good by trying; in terms of social media, every effort we make is to make sure that SonicFresh is known and tried by more people. We promote SonicFresh, customers keep trying, brand awareness and attitude are improved, and we make the profit. Because SonicFresh is such a brand new product to the market, to measure the results, we can simply launch a survey every other month to see brand awareness and attitude changes; improvements can be seen through monthly/seasonal sales statistics as well. As analyzed above, while purpose-driven marketing is a special and effective strategy to catch customer’s eyeball, social media marketing is one of the most affordable ways to brand a business in a short-term. Of course it’ll be better if both can be initiated at the same time, but if only one will be considered first because of time constraint, budget limit or other factors, then social media is better recommended in that, given an increasingly growing group of millennial fans, it can boost traffic, expand sales, increase the return on investment faster than you thought, and results can be seen quickly within a limited short time. Risk Assessment The IMC strategy was developed with the assumption that the SonicFresh by Remington will be widely acceptable on the growing market of electrical toothbrushes. It assumes that Remington’s new developed to enter the mature and competitive environment of oral treatment will succeed. Sales will flourish and brand awareness will increase. Customers will widely accept, adopt the product and be willing to share on their social network as part of their oral hygiene preferable product.
  • 15. 15 Nevertheless, it is also realistic to assume that a few risks are associated with this new IMC strategy. Externally, economic turnarounds could reduce the purchasing power and discretionary income of current electrical toothbrushes customers. Direct competition may arise and new customers might just not like to idea of trying something new and stick to the old popular brands. Internally, Remington’s budget for IMC implementation could be huge constraint. Lack of stakeholder’s support and understanding can cause a barrier for recommendations’ implementation, reducing drastically the probability of increasing brand awareness by 1% and hitting the $1 Million initial financial mark. (Exhibit #5 “IMC Risk Assessment”) However, economic turnarounds are something uncontrollable, we have our God particle to help differentiate from competitors, budget as well as internal understanding/support can be increased once we persuade the prospective success and huge profit SonicFresh can bring back to Remington.
  • 16. 16 Exhibits Exhibit 1: Twitter Promotion Tweet “SonicFresh” to 7999 right now to instantly receive a $10 off coupon and give you more reasons to SMILE!
  • 17. 17 Exhibit 2: SonicFresh Gamification Process Implementation Tactics Goals Expected Results Timeline Membership Sign Up · Become a member of SonicFresh Community · Create initial BUZZ · Create an exclusive community of new customers and friends First Week after purchase Product Code Sign Up · Help gather better information on what motivates customer to action and demographics · Increase brand awareness by influencing customer word-of-mouth and referral First three weeks after purchase. Initial Purchase Product Feedback · Identify and respond to trends in customer behavior · Find product strengths and weaknesses First month of purchase New Customer Product Feedback · Continue to gather data for product improvements · Find product strengths and weaknesses After 3 months of purchase Product/Brand Quizzes & Surveys · Teach customers about SonicFresh and Remington · Grow customer satisfaction and willingness to promote SonicFresh · Meaningful interaction with brand to help customers recognize the value of having other to try. · Promote Brand and Product awareness · Inspire community collaboration, improve ad inventory and revenue by increasing site stickiness and page views On a weekly regular basis – Motivate continual engagement and interaction Social Ambassador Encouraging and rewarding customer interactions on social media Have customers sign up on other social media channels First 3 months of using the product Product Ambassador Reward brand ambassadors by tracking news customers who tried the product Have customers become brand ambassadors After 3 months of using the product
  • 18. 18 Exhibit 3: Gamification Implementation/Budget – 1 year Program Levels Actions Rewards Timeline Total Cost Impleme- ntation Initial Set Up · Develop Cloud Platform · Maintenance $800/Month Initial Month $50K $10k Refresh New Community Member Initial sign up · Random selection of Coupons for Replacement heads (1000 x $10) 1-3 months $10K Rejuvenate Learning about product and brand and Sharing on social media · Downloadable Coupons for a new Tooth brusher for the first 2000 Brand Ambassadors $10 OFF x 2000 1-12 months $20K Attract Actively engaged as a Brand Ambassador Leaderboard visibility · Free samples and accessibility to try new products · Special Prize for Top Ambassadors (100 x $100) 1-12 months $20k $10K 12 months Approx. 120K
  • 19. 19 Exhibit 4: IMC Proposal Summary – Brand Awareness, Budget and Timeline *Client goal is to hit 1 million dollars in sales / $59.99 (unit retail price) = 16,699 or Prox. 17,000 Units to be sold = Approx. 17,000 Customers X 10 (each new customer shares a promotional coupon at least w ith 10 friends) = 170,000 X 10 (the process repeats again) = 1,700,000 or 1.7Million (Based on a tw o levelof referral system=each new customer/referralshares to 10 others on social media and the process repeats tw ice in one year) Strategy Brand Awareness Population Reach Cost/Budget Timeline Donate Toothbrush Customers who visit Remington web and active Facebook users. Approx. 5,000,000 Approx. 360,000USD covering 10% of Somalia population, selling 8,571 units to break even First month test environment, expand depending on result Donate cash Customers who visit Remington web, active Facebook users and Operation Smile followers, approx. 5,000,500 1% of sales or net income. Real donation depends on sales, packaging change fee included in #1 strategy Begin donation after 1st Qtr. Partner with ADA Approx. 10M 0.5M+5.5M*12+8K*12=67 M (First year) Year-Round Facebook Approx. 4,800,000 USD 80/ MONTH*12 Year-Round Twitter .02% of 255 million active Twitter users 51,000 people Initial start-up fee: $1,000 Monthly fee: $1,000 Training fee (3 half day trainings per year): $3,000*3 = $9,000 Total: $11,000 for first year Immediately upon entering brick and mortar shops. Promotion offered for 1 year after hard launch Gamification Approx. 1,670,000 total* $ 120K / year 12 months max. GOAL 1% of 320 Million U.S American population (Target market) = 3.2 Million (First year) Not available - estimation Hit 1 million dollar sales as fast as possible
  • 20. 20 Exhibit 5: IMC Risk Assessment Risk Impact Impact level Risk probability Total Risk score Prevention/ Mitigation/ Contingency Risk Plans E X T E R N A L Lack of sales Customer not willing to TRY Not adding value to customers Not increasing brand awareness High Unpredictable to Medium Med ● Increase budget and Ads efforts for increase brand Awareness ● Possible reduction of initial retail price ● Partnership with major national retailer Increase Product Competition Price and quality not comparable or up to standards Not gaining or losing market share to competition High Medium High ● Test market product before launching ● Focus groups and feedback during develop process ● Focus on Purpose Driven Marketing Reduction on discretionar y income Change of target market due to purchasing power High Medium Med ● Change packaging - cheaper ● Change target to a lower income market I N T Lack of stakeholder engagement Project incomplete and inefficient Med Unpredictable to Medium Med ● Include major decision makers during strategy
  • 21. 21 E R N A L Taking product out of market development stage ● Follow consulting to help launching product Low understandi -ng of the IMC Lack of stakeholders engagement to purse strategy Med Low Low ● Increasing communicatio n and training ● Find more specific data and stats for recommendati ons Need of financial resources to invest on IMC Increase on project deployment and development timeline Not hitting the $1 MI target of initial sales High High High ● Use of Remington ‘s internal resources and avoid using vendors/exter nal suppliers ● Hire interns/studen ts to continue IMC development
  • 22. 22 Exhibit 6: Source: Carter, Brian. “Why Every business should spend at least $1 per day on Facebook ads.” Web. 7 Oct 2014. <http://moz.com/blog/1-dollar-per-day-on-facebook-ads> Exhibit 7: Creating a Facebook Ad Targeting potential Sonic Fresh Users. Reach: 4,800,000 people
  • 23. 23 Works Cited [1] Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources, July 2014 [2] <https://secure.fintel.us/industry-metrics/naics/42345-medical--dental--and-hospital- equipment-and-supplies-merchant- wholesalers?action=PersistReport> [3] <http://www.mbali.info/doc308.htm> [4] <https://ethnomed.org/clinical/oral-health/som-oral-health> [5] <http://community.seattletimes.nwsource.com/archive/?date=20030615&slug=pricing15 > [6] <http://www.operationsmile.org/our_work/medical-missions/index.html> [7] Porterfield Amy. “3 Studies show Facebook’s Marketing Potential.” Web. 6 Oct 2014. < http://www.socialmediaexaminer.com/facebook-marketing-studies/> [8] 2013 Social Media Marketing Industry Report <http://www.socialmediaexaminer.com/SocialMediaMarketingIndustryReport2013.pdf> [9] (Van Grove, Jennifer (28 July 2011). "Gamification: How Competition Is Reinventing Business, Marketing & Everyday Life". Mashable. Retrieved 12 February 2013) [10] <http://www.jwtintelligence.com/2011/01/data-point-gamification- effect/#axzz2cXE9o7W8> [11] <http://blog.gigya.com/gamification-real-results-not-hype-infographic/> [12] <http://www.loyaltyleaders.org/facts.php> [13] <http://www.spectrumbrands.com/aboutus/history.aspx> [14] <http://www.spectrumbrands.com/aboutus/> [15] <http://www.mediabistro.com/alltwitter/social-media-statistics-2014_b57746> [16] <http://www.mackcollier.com/cost-of-social-media-in-2012/>