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Direct Marketing Plan

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Prepared for our fictional wine business South Oz Wines.

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Direct Marketing Plan

  1. 1. Direct Marketing Plan Prepared for: For the 2010/11 financial year. Hannah Robinson – 0863482 Ashleigh Blythe - 0865407 Lecturer: Andrea Jenkins Due: 15th June, 2010. Word Count: 2,032 words
  2. 2. Table of Contents Page Contents 1 1 Introduction 2 1.1 Business Definition and Scope 2 2 Situation Analysis 3 2.1 Strengths 3 2.2 Weaknesses 3 2.3 Opportunities 3 2.4 Threats 3 3 Objectives 4 3.1 Corporate Objectives 4 3.2 Marketing Objectives 4 3.3 Communications Objectives 4 4 Marketing Strategies and Tactics 5 4.1 Target Market Segments 5 4.2 Product/Brand Strategies 5 4.3 Product Strategies 5-6 4.4 Pricing Strategies 6 4.5 Distribution Strategies 6 5 Integrated Marketing Communication Strategy 7 5.1 Direct Marketing Objectives 7 5.2 Appropriate Direct Marketing Mix 7 5.3 Budget 7 5.4 Budget Allocation 7 6 Marketing Program and Tactics 8 6.1 Schedule for Implementation 8 6.2 Roles and Responsibilities 9 7 Evaluation and Control 10 8 References 11 2
  3. 3. Introduction This direct marketing plan has been prepared for the CEO of South Oz Wines, Thomas Schofield. The plan will focus on and discuss the current objectives of South Oz Wines and look into the segments of which South Oz Wines intend to target. With this, it will also discuss which direct marketing mix is required in order to reach the segments target. To ensure the plan is clear of what direct marketing media will be used, the plan will feature a schedule and what tools will be used to reach South Oz Wines objectives. 1.1 Business Definition and Scope South Oz Wines was founded in 1936 by the Schoen family on two hundred acres of land in the McLaren Vale district. It had developed as a small business and then the family eventually developed a 12-unit bed and breakfast, a restaurant and a small arts and crafts shop in the tasting area, all on the premises. All of these developments have been very successful; however, the winery was the major growth and profits provider. In 2004 and 2006, the Shiraz red variety received the Jimmy Watson trophy and by receiving this award, it provided a significant boost to the brand awareness and the demand of wine. This direct marketing plan will show the process of planning and implementing direct marketing for South Oz Wines. The scope for the direct mail of South Oz Wines will be within the area of the McLaren Vale district and upper-class suburbs in Adelaide during the 2010/11 financial year. 3
  4. 4. Situation Analysis 2.1 Strengths  Large variety of wines – some of which won awards.  Location and size of the estate.  Great history and background.  New reputation – Melba’s confectionary store, more inclusive wine tours etc. 2.2 Weaknesses  Limited number of units in bed and breakfast which means limited number of sales.  Brand visibility through sponsorship.  Some spoiled wines due to positioning of cellar directly under the sun. 2.3 Opportunities  Are able to invest with Melba’s confectionary.  Sponsorship to get our brand recognised.  New market development nationally and internationally.  Different wine variety, for example, a Rosè for Breast Cancer. 2.4 Threats  Direct competitors.  Unpredictable weather.  Numbers in wine tourism dropping. 4
  5. 5. Objectives 3.1 Corporate Objectives South Oz Wines wish to enter into strategic alliances and extend the product line by making these alliances. They wish to improve and modernise on their advertising and promotions to maximise on their profits while focussing on customer needs and increasing on their current reputation to maintain and increase the current brand awareness. 3.2 Marketing Objectives South Oz Wines has recognised that they need to implement change in order to achieve maximising on profits. By introducing new products, South Oz Wines aims to increase their total revenue by 25% by the end of the 2010/11 financial year. 3.3 Communications Objectives As mentioned in the corporate objectives, South Oz Wines wish to maintain and increase on brand awareness. By the end of the 2010/11 financial year, South Oz Wines aims to increase their brand awareness by 15%. South Oz Wines hope to improve their online client database by 10% through their direct marketing campaign. 5
  6. 6. Marketing Strategies and Tactics 4.1 Target Market Segments According to Kurtz (2010), a target market is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise. A well-defined target market is the first element to an effective marketing strategy. There are four basic strategies to satisfy target markets: mass marketing, differentiated marketing, concentrated marketing, and micromarketing (William, 2005). Even though South Oz Wines target markets are separated into two segments, South Oz Wines have adopted a mass marketing strategy as all markets are able to be reached with one direct marketing campaign. The first segment is generation X male and females, who are young professionals with middle to high income. The second segment is baby boomers male and females, who are corporate professionals with middle to high income. Both segments are generally located in McLaren Vale, Mitcham, Burnside and Unley. 4.2 Product / Brand Positioning South Oz Wines is commited to provide excellent wine at an excellent price. Currently, South Oz Wines are situated in a reasonable position within the market providing good quality wines at a cheaper price compared to other competitors. South Oz Wines would like to be positioned near the highest price and quality competitor, Penfolds, within the next three years. 4.3 Product Strategies South Oz Wines wishes to use an augmented product strategy, as South Oz Wines offers fantastic after sales service and warranty etc. South Oz Wines bases their product strategy on serviceability, customer service and the relationship we have with the customers to give them what they want. 4.4 Pricing Strategies There are many factors which determine which pricing strategy to use. These factors are: your 6
  7. 7. competitors, your suppliers, the availability of other products and your customers (Kyle, 2008). South Oz Wines uses a competitive pricing strategy when it comes to pricing the wines. They based their prices between what competitors are pricing their wines. 4.5 Distribution Strategies South Oz Wines has three distribution channels to distribute their wine and winery merchandise to consumers. The primary channel is retail (on-premises) sales which is the sale of wine directly to customers at the winery. The second distribution channel is retail (off-premises) sales which are the sales of wine to liquor stores then to customers. The third and last distribution channel is internet sales because South Oz Wines are hoping to eventually target global consumers as well as our younger generation of target market who are tech-savvy. 7
  8. 8. Integrated Marketing Communication Strategy 5.1 Direct Marketing Objectives South Oz Wines want to build customer relationships by offering discounted quality services so it provides them with a sense of appreciation for our wine. South Oz Wines believes that by building awareness of our online wine club this will encourage our customers to join our website for information, discounts, latest news, up-coming events and also information regarding our wine. This will also help South Oz Wines increase their database. South Oz Wines will measure the effectiveness of our direct marketing plan by measuring the amount of new members and continuing members. We can also measure which wines each consumer buys so that we can distribute a direct mail special for the particular wines they enjoy. 5.2 Appropriate Direct Marketing Mix South Oz Winery has chosen to use the direct mailing strategy to target our chosen market and develop brand awareness. We find that having chosen to use direct mailing means that it’s cost effective, selective and flexible. To be more specific we will be using direct mail to attract the baby boomer market and emailing the young professional market which will then enable us to distribute out specials and relevant information in regards to their purchases and queries. South Oz Winery are also prepared to look after their customers by offering them birthday vouchers and gift cards with purchases over a certain amount. 5.3 Budget South Oz Winery has a budget of $10,000. 5.4 Budget Allocation Web development = $50 p/h x 24 hours = $1,200 Email Design = $50 p/h x 24 hours = $1,200 Distribution = $30 p/h x 24 hours = $720.00 Direct Mail (inc. design, print, distribution and G.S.T) = $5,200 through Australia Post 8
  9. 9. Marketing Program and Tactics 6.1 Schedule for Implementation July August September October November December A1 A2 A1 A2 A1 A2 A1 A2 A1 A2 A1 A2 Offer Offer Offer Offer Offer Offer Offer Offer Offer Offer Offer Offer Website 1 1 1 1 1 1 1 1 1 1 1 1 Offer Offer Offer Offer Offer Offer Email 2 1 3 1 4 1 Offer Offer Offer Offer Offer Offer Direct Mail 2 1 3 1 4 1 January February March April May June A1 A2 A1 A2 A1 A2 A1 A2 A1 A2 A1 A2 Offer Offer Offer Offer Offer Offer Offer Offer Offer Offer Offer Offer Website 1 1 1 1 1 1 1 1 1 1 1 1 Offer Offer Offer Offer Offer Offer Email 3 1 2 1 4 1 Offer Offer Offer Offer Offer Offer Direct Mail 3 1 2 1 4 1 Schedule explained: A1 = Area 1 (Mitcham, Unley and Burnside). A2 = Area 2 (Murray Bridge, Victor Harbour and McLaren Vale. Offer 1: Receive 10% off your online order (PLUS! Free Shipping) Offer 2: Book two nights at South Oz Wines B&B and receive an extra night, FREE! Offer 3: Book a wine tour for you and ten friends and receive a FREE case of wine. Offer 4: Buy a Melba's Gift Basket and receive a FREE $20 Melba's voucher. Offer 1 will be run repeatedly on our website as it does not cost us anything to advertise. But to remind customers of this offer we will send out emails and direct mail so that it reaches our market who does not look online often. Offer 2, 3 and 4 are evenly spread over our schedule ensuring that both the areas receive the mail. 9
  10. 10. 6.2 Roles and Responsibilities South Oz Wines have very few people to manage, develop and organise the company to structure where problems can be solved and managed effectively. Our freelance graphic designer, Tara Robinson, will provide us with options for our direct mail. We will then meet with her and determine which the best choice to publish is and distribute to our market. Our CEO will then make a decision and sign off on our designs so that they can be distributed as soon as possible. Tara Robinson will also be working on the website development to update our existing one and she will also design the email which our marketing team will then distribute to the young professionals to develop our brand awareness. The marketing team will also be assigned a selected area for which each person will focus on to distribute the direct mailing post card. For example, Ashleigh will be in charge of A-G, Hannah will be in charge of H-P and Frank will be in charge of Q-Z as our database is organised by last name. 10
  11. 11. Evaluation and Control At South Oz Winery we ensured that our direct mailing strategies are measurable so that we target our consumers effectively and productively. From the distribution date, those who order online will be asked how they heard about the offer and those who purchased off-premises and the winery will be asked as a conversation starter, how did you find this Wine? With this particular knowledge the marketing team can then determine which strategy worked well and which needed to be improved. South Oz Wines will then continue to strongly look back on their objectives and also their strategies into developing customer communication so that they can then improve their business and also develop reasons of improvement. South Oz Wines need to make sure that their direct marketing plan is looked at frequently so that they can then determine if advertising budget has been used effectively. 11
  12. 12. References Kurtz, D. (2010) “Contemporary Marketing Mason”, OH: South-Western Cengage Learning. Accessed 10 June, 2010. William, C.A. (2005) “The Marketing Plan”, John Wiley & Sons, Inc. Accessed 10 June, 2010. 12

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