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Marketing Plan
Group 1
Group Members:
Vanita Chandra- UPI: vcha308 ID: 8662754
Aidan O’Donnell- UPI: aodo719 ID: 5807903
Maya Traill - UPI: mtra038, ID: 1685937
Alexandria Lee- UPI: alee416, ID: 2763458
Douglas Hillyer – UPI: dhil404, ID: 6925389
Julia Gardner- UPI: jgar823, ID: 2738340
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EXECUTIVE SUMMARY
The majority of schools in New Zealand run on deficit, governmental financial contributions alone
do not cover everyday expenses. This, combined with inefficient fundraising schemes, has created
the need for a simple method to achieving actual financial returns for schools. Nice1 is a business
consultant and management service organization, which is able to use business relationships
alongside marketing, development and innovative technology to cater to this specific need.
Though the fundraising market is competitive, the sub-market that Nice1 subsides in is
geographically specific and community oriented. Despite present competitors, Nice1 is largely
unique in its operation, value offering and most specifically, their core competencies. Through active
business partner management, Nice1 is able to provide schools with strong business players who
have large pools of customers and revenues.
This marketing proposal is based on the 131 decile 7-10 schools in Auckland, with the objective to
garner 5% uptake within a six month time frame. Through Nice1, schools are connected to business
partners who offer rebates on transactions. The rebates and data are captured on a personalised,
school specific card used by student families. Thus, creating an efficient, high-return ‘fundraising’
opportunity.
A number of significant internal and external forces have been identified, with their impact on the
Nice1 Schools program and marketing strategy understood. School funding schemes have been
examined which alongside legislature outlines the compulsory nature of schooling in New Zealand,
and shows the importance and need for a long-term fundraising solution. The fixed nature of the
market is further supported through demographic data, which shows that nearly a third of the overall
population is school aged with increasing youth dependency.
By utilizing the data and focusing on financial effectiveness alongside an integrated, creative
marketing strategy; four key avenues were identified. By tailoring a marketing approach to focus on
these four key avenues (the main advertising campaign including cards/keychains exchange
program, supplemented by POS and poster displays , technological integration through a tailored
application, with an overarching increased social media presence) short and long term growth
objectives can be achieved. The strategy involves an initial six month campaign which focuses on
encouraging new users, and existing users to make use of their cards. Card holders will be rewarded
with one card (specifically designed for business partners) for every twenty dollars spent, and then
able to redeem twenty of the same card for an adjoining keychain. This main campaign will be
supplemented by POS and poster displays in schools and the business partners alongside a tailored
Android/iPhone application. The last element to the marketing strategy is an increased social media
presence, this is anticipated to continue through the life of the Nice1 schools programme. The
proposed budget requires 3.2% of the projected, total, average revenue to achieve 5% uptake in the
six month period. Though the focus is on the six month timeframe, we anticipate that the benefits
would be more long-lasting.
The marketing strategy uses synergistic tactics to achieve tangible, objective goals. By engaging
with four main avenues in the strategy, a holistic approach has been created with each method
serving to achieve the overall goal.
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Table ofContents
Title Page 1
Executive Summary 2
1. Introduction and Background 4
• Company Profile
• Product Definition
• Business Profile
2. Objectives 4
3. Situational Analysis 4
• External Analysis
• Market/ Submarket Analysis
• Customer Analysis
• Competitor Analysis
• Internal analysis
4. Marketing Strategy and Value Proposition 8
• Value Analysis
• Value proposition
5. Generic Marketing Strategy 9
6. Tactical Marketing Plan 10
• Offer Development Plan
• Communication / Promotion Plan
• Sales and Distribution Plan
• Customer Experience Management
7. Budgets and Financial Strategy and Monitoring Metrics 13
8. Summary and Conclusion 13
9. References 14
10. Appendices 17
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1. INTRODUCTION AND BACKGROUND
Nice1 is a supplier, consulting, and Partnership Company that has leveraged its resources to create a
unique sub-brand and “Nice1 Schools” project. Nice1 is a specialist in providing membership benefits
and loyalty programs, and is now focusing on utilising this for a tailored program for decile 7-10 schools
in Auckland (Nice1, 2014). As a company that is passionate about benefiting the community while also
assisting organisations in raising funds; Nice1 has developed a unique program which creates mutual
benefit for buyer groups, sellers and individuals by increasing revenue, sales and loyalty (Nice1, 2013).
Nice1 is currently focusing on business partners, ensuring they are achieving strong return on
investments, and maximising relationships with the association and members (Nice1, 2014).
Product Definition- Nice1 Schools provides an end-to-end loyalty programme which enables families to
allocate a portion of their regular spending to their school as a donation or rebate (Nice1, 2013).
Business Profile- Nice1 is an Auckland basedcompany with a teamof marketing, sales,strategy,creative
and design specialists, which has been in the market working with buying groups and suppliers since
2004. Nice1 prides itself on being a 100% NZ owned and operatedcompany that is committed to realising
the benefits that ongoing funding for schools has on maintaining a high standard of education.
Nice1’s strategic business model “brings organizations and businesses together. Manage the relationships
and the delivery of a fundraising or membership benefits program. The program is designed to benefit
everyone.” Nice1’s key service areas: program development and management, marketing, sales, supplier
management, buying group management, and technology (Nice1, 2013).
2. OBJECTIVES
Nice1 aims to have 5% uptake of the Nice1 card within the targeted schools within six months. Our
specific objectives to achieve this include the following:
I. Increase positive word-of-mouth within the 6-month promotional period.
II. Attract, increase awareness and remind children and families to participate in Nice1 loyalty cards and
promotional efforts via in-store point of purchase displays, school newsletter advertisements and online
advertising
III. Nice1 must be accessible on multiple technological platforms to increase customer point of contact and
collect more detailed information in their database.
IV. Offer rewards that resonate and add value to customers of different ethnicities and ages.
3. SITUATION ANALYSIS INTERNALAND EXTERNAL
External Analysis:
Political- In New Zealand the Education Act (1989) dictates that New Zealand citizens and residents are
entitled to free primary and secondary education. Most schools require ‘voluntary donations’ or extended
fees to supplement government funding (Ministry of Education, 2011).
Economic-During economic periods like recession, inflation and boom, can impact on consumer
purchase behaviour. Nice1’s budged and demand would also be affectedby fluctuating spending patterns
by (Sandilands, 2015; Bowett, 2015; Business case studies, 2015).
Sociocultural- “Corporate social responsibility (CSR) has become an increasingly significant
phenomenon in New Zealand (Lau, 2009)”. More businesses are willing to support and align themselves
with non-profit organisations and therefore create a more competitive environment for Nice1.
Technological -The environment in NZ is becoming more technological, “technology change is the
biggest mover, increasing to 68 per cent from 37 per cent in 2014 and that this rapid change in the
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marketplace is presenting just as many opportunities as risks” (Paredes,2015). This may help Nice1 gain
better capabilities and improve efficiency etc. or it may reduce Nice 1's market share in a more
competitive marketplace.
Ecological- “82% of New Zealanders are concerned about the future and where NZ is doing enough to
stay safe and it also suggests that there is a growing demand from consumers for environmentally and
socially conscious products” (Farrow, 2015). This could impact future operations for Nice1, and could
discourage loyalty card usage if it harms the environment, or become more brand loyal to competitors
that are more environmentally involved.
Demographic- According to stats NZ, “by the late 2030’s the older 65+ age group is projected to make
up over a quarter of NewZealand’spopulation”(Statistics NZ,2006). To add to this statsNZ also projects
that “by the early 2040s, deaths may outnumber births” (Statistics NZ, 2006). This may impact Nice 1
because more households will consist of older people rather than children which may reduce the number
and impact of loyalty households. There has beena noted decrease in households with children (Statistics
NZ, 2003), and an increase in net migration (Statistics NZ, 2014) which could decrease the customer
pool for Nice1 impacting profit and growth.
Market/Sub-market - The principal market which Nice1 is competing in is that of charitable or
fundraising efforts. This is a fast growing market. In 2011, New Zealanders were estimated to have given
$2.67 billion to charities and fundraising, almost double that of 2006 (Philanthropy New Zealand, 2011).
However,buyers exist in the market with only a finite amount of time or money that they are willing to
donate to causes,and this has created a market of intense competition amongst fundraising efforts,which
will limit profitability (Philanthropy New Zealand, 2011). Furthermore, Backus and Clifford (2010)
assert that the largest charities’ have developed a dominant market share and this position allows them
to push smaller charities out of the market. The public looks more favourably upon charities whose cost
structure favours spending on the cause itself (Dyson, 2013). Nice1 is fortunate that it operates in a sub-
market of geographically specific and community oriented fundraising efforts. This is a market which is
less competitive as Nice1 will not have to directly compete with larger nationally or internationally
oriented fundraising efforts. While this lack of dominant players is advantageous for Nice1, it should be
noted that there may be a multitude of smaller operators who are also attempting to fundraise for
community efforts (for instance local schools and clubs acting independently). In a sense, Nice1 is
competing in order to achieve the same goal (community betterment) via a different means. Therefore,
Nice1 should take care in the way it treats its competitors or risk cannibalising revenue from the
communities it seeks to assist.
Customer- At the most recent 2013 census the number of people usually living in the Auckland Region
was 1,415,550. This is an increase of 110,589 people, or 8.5 percent, since the 2006 Census. Auckland
has 33.4 percent of New Zealand’s population, and its numbers rank first in size out of the 16 regions in
New Zealand. Projections for the sub-national population forecast that the population growth rate will
slow in all regions, and that three-fifths of New Zealand’s population growth between 2013 and 2043
will be in Auckland. It is projected that Auckland’s population will reach 2 million by 2033 (Statistics
NZ, 2015).
How Auckland compares socio-demographically to the rest of New Zealand (Statistics NZ, 2015):
- In 2013, the Auckland region had the highest percentage of 'couple with children' families, at
46.5 percent.
- Couples with children make up 46.5 percent of all families in Auckland, which is higher than the
percentage of New Zealand as a whole.
- Auckland has 48,405 extended family households, which is almost half of all extended families
in New Zealand. The board with the highest number of extended families is Howick.
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- The median age of Auckland is 2.9 years younger than the rest of New Zealand’s average
population.
- In 2013, most parents in families of one parent with dependent children were women, at 84.2
percent. This was up from 83.4 percent in 2006.
- 29.2 percentof workersin Auckland have anannual income of more than $50,000, in comparison
to New Zealand overall where 26.7 percent earn more than this figure.
Within New Zealand, Nice1 Schools has segmented the market according to geo-demographic
characteristics by targeting the school and family households of decile 7-10 schools in the growing
Auckland region. Compulsory education in New Zealand is a competitive environment, as it follows by
a market model structure. Parents have freedom of choice for deciding which children their school will
be educated, however due to zoning restrictions there are boundaries. Schools are motivated by the
financial need to compensate for a gap between funding provided by the government, and actualfunding
needed. In the competitive schooling environment, schools need to have attractive resources,and this is
often an unmet need. Parents of children at school are motivated by the desire to help the school grow
and improve in order to provide an enhanced schooling experience. These consumers may be unaware of
their capabilities in contributing towards school fundraising in a cost-effective and efficient way.
Competitors- Nice1 competitors reside in two categories; direct competitors and indirect competitors/
substitute businesses of Nice1.
Charity Organizations:
Fundraiser-Online- They are a potential competitive substitute as they focus on raising funds in New
Zealand. They support kiwi schools through a simple, user-friendly webpages that can be tailored for a
schools fundraising related needs.
FreshChoice – Focuses on an online community fund that focuses on raising financial aid for schools
and preschools. Fresh Choice can be seen as competitor of Nice1 as anyone in the community can ask to
be funded, they have a number of community projects in New Zealand
Profit Companies:
FlyBuys& OneCard- Fly buys and One Card can be seen as competitors of Nice1 because just like Nice1
they provide a reward card that allow members to collect points/dollars. These loyalty/rewards cards
determine where the members shop and swipe their cards. Flybuys and OneCard both operate on a much
larger scale than Nice1, both in terms of brand awareness and usability and flexibility of use.
Trump Card- It is a loyalty card program that represents various, specific charities, sports unions or
schools. By swiping this card at participating outlets, the members of the program are able to generate
cashdonations for the cause andloyalty rewardsforthe members.Trump cardcanbe seenasa competitor
of Nice1 because trump cards service that is being offered is homogenous to Nice1 with the only
differentiation is that Nice1 participating business is different from Trump cards participating businesses
and that members in Nice1 don’t have much choice in the schools that they donate to whereas with trump
card, members are able to choose specific schools in their community.
Westpac & ASB- Both have rewards systems where every time a member swipes their credit card, they
are able to collect points that are accumulated and can be spent on charities, merchandise” (ASB, 2015)
(Westpac,2015). Usage of the card equates to accumulated points. ASB true rewards and Westpac hot
points can be seen as competitors to Nice1 as just like Nice1, both rewards systems enable members to
collect points every time they swipe their credit cards. ASB and Westpac are well-known brands, which
encourages use of their cards instead of Nice1. Also the inclusion of personal rewards offers greater
incentive for individuals to use, which impacts Nice1’s reach, involvement and gaining new members.
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Internal Analysis:
Strengths
1. Nice1’s core competencies include; that they have no competitors in New Zealand that offer the
unique dollar per points based service, their unique consulting and plug and play services to
businesses, and their relationships with sports associations and schools (Nice1, 2015).
2. Their competitive advantage includes their expertise in tailored membership benefit programs.
Along with their plug and play services, which allow business to select what and how to
customise without having to outsource its services. Their expertise in their service offering is
magnified as they have been in business for ten years. The unique dollar per point based service
enables valued to be added to kiwi families in bad economic times by offering discounts and
initiating reward funds. By encouraging loyalty from its customers and partners, they have a
strengthened, ‘win-win’ situation where everyone is benefitted (Nice1, 2015).
3. Human resources include experts in the membership benefits program.
4. Consumers are likely to use loyalty cards in times of economic downturn. There has been an
increase usage and importance in loyalty programs during recessions. One- third believe that
loyalty programs support them during economic deprivation (Loyalty Leaders, 2015).
Weaknesses
1. Nice1 schools program cannot be accessed unless a card has been an issued a loyalty card and
created an online account, making it difficult for potential customer and schools to find
information on who Nice1 is and what they offer, and their specific benefits and details.
2. The strategy behind loyalty cards is losing customer effect in good economic times. “Many
consumers have 18 cards but engage in only 8” (Ewoldt, 2014), also customers lose their cards
and don’t like to remember card information in order to use it. In 2009, a Colloquy Loyalty
Marketing Census it was understood that only 14.1 of the loyalty programs joined, 6.2 were
actually engaged and used. Further, 53% of loyalty systems are used by the retail industry which
allows for all to capture and track customer spending and purchases (Oracle, 2009).
3. Loyalty programs cannot create a personalrelationship, as services are standardised and benefits
are directed elsewhere-specifically here, the benefits are directed solely to the school.
4. Nice1 has focused on a narrow market segment. Walker, Gountas, Mavondo and Mullins (2012)
explain that less people are having children or are having children at a maturing age. Therefore,
the proportion of children attending in primary schools will decline in the future and less families
to market causing a decreased usage the Nice1 loyalty cards.
Opportunities
1. Nice1 hasthe ability to engage in extended use strategy by offering an online loyalty cardthrough
customer mobiles which creates a new way to use the Nice1 loyalty card, eliminating the cost of
card replacements, and increases virtual loyalty usage. It is also a more effective way to store
and collect purchase data. For example, if the consumer switches mobile or restores their phone
whilst deleting the application the loyalty program application can be downloaded again with all
their retail data saved and can be accessed easily by the customer through their log- in details
(Ranta, 2013). “Yankee Group indicates that 60% of consumers own a smart mobile and 40%
use a retail or coupon application on their phone”. Furthermore, they also indicate that 47% of
consumers want retailers to offer loyalty applications and would be more willing to purchase
from a store that has a mobile-centric loyalty program” (Ranta, 2013).
2. Offering a new service in the same market through connecting debit or credit cards with loyalty
programs. An example of this is Eftplus, which allows payment cards to be linked with loyalty
cards to resolve the issue of severalloyalty cards being held by consumers (“Loyalty links up to
new payment card”,2014). This could allow Nice1 to identify the customer, track purchases and
reward them which can increase customer value. Eftplus resulted in 150,000 members and 14
million transactions (“Loyalty links up to new payment card”,2014). The customer requires no
learning as they use their payment card which collects data and then sends a text informing them
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how many vouchers they have accordingly received (“Loyalty links up to new payment card”,
2014). Nice1 has the potential capital if partners are willing to share the costs to implement this
system and their dedicated technology team, this is a real opportunity.
3. Offering marketing promotions through Facebook to increase and support the Nice1 loyalty card
usage as most customers engage in Facebook frequently. Nice1 could use this to increase uptake
and consistently remind customers.Increasing their social media presence would also ensure that
they are relevant to their consumers. Rob Bamforth, principal analyst at Quocirca emphasises
that marketing promotions on Facebook will impact loyalty card use in the same way online
shopping platforms have effected retail shops (Williams, 2010), therefore if Nice1 wants to hold
their competitive position and succeed in the market they need to support their loyalty programs
with Facebook promotions and social media interaction.
4. MARKETING STRATEGYAND VALUE PROPOSITION
Secondary research drivers of value- Unfortunately, there is little research available pertaining to
Nice1’s specific market niche. However,this demonstrates that the niche Nice1 occupies is not heavily
competitive and may therefore represent a ‘blue ocean’ market (Kim & Mauborgne, 2004). For
simplicity’s sake,we have chosen to explore the drivers of value for the charity industry, and the loyalty
card industry, which Nice1 operates on the intersection between.
Charitable efforts-Likelihood to participate in charitable effortscan be divided into two distinct subsets.
The first is psychographic factors such as sense of social responsibility, empathy, and awareness and
knowledge. The second determinant factor is demographic profile, where likelihood to participate will
be affected by age, gender, marital status, family type, and socioeconomic status (Lee & Chang, 2007).
In terms of psychographic characteristics the most important driving factors are social responsibility,
empathy of the cause,and awareness and knowledge of the cause. (Lee & Chang, 2007; Burks, 2015).
Nice1 is in the unique position to take advantage of consumers value drivers for charitable efforts. By
operating the program in decile 7-10 schools, Nice1 is set to be able to capitalise on a market who are
extremely willing to donate to charitable efforts. Helpfully, factors such as being married and having a
family will all positively influence willingness to participate in charitable efforts. Nice1 are well-
equipped to take advantage of the empathy which community members possess towards their local
schools. Secondly, Nice1 have a well-developed technological infrastructure which enables them to
collect information about the demographics of families who are using the Nice1 system. While this does
not increase consumer value in itself, it is an excellent means for Nice1 to tailor their program to their
biggest users, thus adding value.
Loyalty cards- The drivers of value for loyalty cards are unfortunately fairly complicated (Wright &
Sparks, 1999), the long-held assumption was that loyalty card programs fostered loyalty in their
consumers. Counter-intuitively, this does not actually seem to be the case. Instead, Wright and Sparks
suggest that loyalty behaviour may only engender repeat purchasing in consumers. This is functionally
different from loyalty in that it does not possess the key emotional/ empathetic aspect to drive repeat
purchase. Instead, it is far more driven by practical concerns and consumer self-interest. Wright and
Sparks go on to suggest that consumers are relatively savvy about how loyalty card programs are used,
and may only purchase items using loyalty cards when they benefit most from it, while ignoring them
most of the time. In order to maximise their market success,Nice1 will need to find a way to defuse this
inherent self-interest which loyalty card consumers possess.
Primary research-Our own focus group and survey research has largely supported the conclusions
which previous studies have found. Most of the surveyed respondents participated in some kind of
loyalty card program. The most commonly cited reasons for respondents participating in these programs
was the economic benefits to themselves. Nice1 should keep this in mind when proceeding with a
marketing strategy, as it may be difficult for consumers to accept a loyalty card program that benefits a
cause other than themselves. From our focus groups and research,we have found that the most significant
issue which potential consumers face when attempting to support local fundraising efforts is one of
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knowledge. Nice1 may be able to overcome this lack of knowledge in potential consumers through their
excellent marketing program. Eventually, network effects should be established which will place Nice1
in a very well established position to prevent new market entrants. Furthermore, the large majority of the
participants indicated that they would be willing to modify their spending habits if it were to serve the
cause of local fundraising. Unsurprisingly, the vast majority of respondents suggested that a reward
program would increase their willingness to participate in the Nice1 program. However,given the limited
scope and marketing budget that Nice1 possesses,purely financial rewardsmaybe financially unfeasible,
and it would therefore be advantageous for them to explore other rewards systems. (The survey also
exposed that families would typically spend around $150.00 per month- reflected in the budget).
Drivers ofvalue-Forloyalty cardprograms, the most significant driver of value is consumer self-interest
and reward. While for charitable efforts the most significant driver of value is non-tangible, that is, it is
the sense that they are contributing to a valued cause (Lee & Chang, 2007). While superficially, these
value drivers would appear to be mutually exclusive, in reality they are able to complement one another
to create anextremely attractive customervalue proposition. To wit, most of the target market are already
heavily emotionally invested in their local schools, and will therefore be farmore willing to shop atstores
which will benefit the school, Nice1 will be able to take advantage of this loyalty in order to increase
customer value. Moreover, having a rewards program for the families donating will only further increase
the value added to Nice1’s efforts. If Nice1 is able to leverage their unique strategic capabilities and core
competencies, they will be extremely well situated competitively position. Principally this will come
from their sales and marketing ability, as this will add maximum value for the families themselves, who
is currently the market that Nice1 is trying to capture (as opposed to the retailers. Secondly, Nice1’s
technological capabilities are a greatdriver of value as it which will indirectly add value via accessibility,
which will lead to increased uptake and positive network effects. Finally, their competencies for sales,
supplier management, buying group management, service delivery, and programme development will
also all help to add value to the services they deliver.
Value proposition -Nice1 brings the community’s people, institutions, and local businesses together by
allowing them to work in concert for the benefit of all. Nice1 is the only company who enables
community members to support their local schools and clubs with every purchase they make. Simply
swiping the Nice1 card ata participating store generatesmoney for their chosen cause.Swiping the Nice1
card also allows the buyer to generate rewards for themselves.
5. GENERIC MARKETING STRATEGY
Focused differentiation is the generic marketing strategywhich will be adopted as an approachto achieve
an increase in membership uptake and accelerate profitable growth in Nice1 Schools. This strategic
approach will be applied through the development of Nice1’s product offer by improving it to become a
rewards based programme in order to set it apart from its competitors. A differentiation strategy is
appropriate based on several justifications:
 The target customer segment is not highly price-sensitive due to the following reasons: Nice1
membership is provided at no cost to the consumer, customers control their own spending at the
selected partner businesses, and the reasonably high income brackets of target customers.
 The market for customer loyalty cards is saturated with many options and substitute products.
Therefore there is a need to differentiate from competition by communication and delivering
superior value to customers in comparison to other loyalty cards.
 Customers have specific unmet needs which Nice1 is able to fulfil by utilizing their unique
capabilities and resources which enable them to satisfy consumer needs in ways that are difficult
to copy by new entrants.
In a study conducted by researchers at the University of Auckland, a relationship marketing initiative
executed well was found to increase customer satisfaction and loyalty. However, when executed poorly,
both customer satisfaction and loyalty decreased,even when compared to taking no action at all. Don
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Peppers states that many loyalty programmes today are simply designed to maximise short-term
responses by executing traditional direct marketing but in a more efficient way. However, businesses
need to build long term customer loyalty by focusing more on customer value than product value (Lacki,
2009). By developing the differentiated reward-based product offering and increasing advertising on
various platforms, Nice1 will be able to enhance its brand image and identity through awareness and
increase brand equity and positive word of mouth. Differentiation strategies defend against buyer price-
sensitivity through brand loyalty and perceived added value in the mind of the consumer (Porter,1997).
By combining differentiation with a Focused Approach Nice1 is able to target their product and service
specifically towards the needs of families that attend decile 7-10 schools in Auckland, which is a highly
defined market segment. By tailoring the marketing mix to target this selected segment Nice1 will be
able to better meet the needs of its customers. A focused strategy also allows companies to focus
exclusively on profitable market segments in order to optimise revenue. (Porter, 1997).
6. TACTICAL MARKETING STRATEGY
Offer Development- Over the period of 6 months Nice1 and their partnerships such as 2 degrees,Office
Max,Contact Energy and Giltrap Group will be offering a rewardsbasedprogram for consumers personal
use in addition to the dollar per point based system for raising funds for school related rewards. The
reward program for consumer’s personal use is appropriate for all cultures and ethnicities and takes into
the consideration the growing Asian demographic in New Zealand. It consists of 100 animal cards to be
collected, each company will have their own animal ambassador, and a picture and animal facts is
displayed on the cards with the company logo in which the animal belongs to. The Success of animal
cardsis seenin Countdown, where the both children and parentswere highly engaged in collecting cards.
It was seen as a “cult craze” and was so popular a second round of animal cards were created. Parents
loved the idea that it helped their children practice their reading and had educational value (O’Sullivan,
2015). It can also encourage the new Asian immigrants to practice their English skills. It was said to
increasedbrand equity aspeople felt “connected” to the brand (O’Sullivan, 2015). To increase cardusage
and add value to collecting the cards is to provide one animal soft toy key chains relating to each
company. Customers must spend at least twenty-dollars at a specific partner in order to receive one
specific animal card. There are a total of 20 animal cards to collect from that partner in order to receive
that specific animal key chain. These products resonate,add value and attract primary school children to
encourage parental involvement in Nice1’s rewards based program and increase card usage on a day-to-
day basis due to the limited time to collect these child-oriented rewards. During the promotional time,
the Nice1 and partnerships can increase engagement by creating a phone card swap application where
customers can interact with other card users to increase involvement and trade their cards with one
another to obtain the keychain faster. Hal Stinchfield, founder and CEO of Promotional Marketing
Insights in Orono says that customer value faster rewards and those customers become dissatisfied when
rewards are delayed (Ewoldt, 2014). After the 6-month promotion is completed. The idea of each
company is to continue to link the animal of each company to become their very own animal ambassador
for their company. This will be done through partnership websites where customers can learn personal
information about the animal and new facts about that animal which will change every week to keep
interest up. Also inserted in companies Facebook pages they will have their own animal icon on their
pages. Sharon Beder emphasizes that customer loyalty is enhanced when companies create characters to
support their products. Furthermore, Michael Brody, spokesperson for the American Academy of Child
and Adolescent Psychiatry revealed that children will respond to charactersthatcompanies create (Beder,
1998). This marketing strategy has succeed for the website Comparethemarket.com. They created spoke
character named Aleksandr to support and differentiate insurance companies. “Over 500,000 people
became Facebook fans of Aleksandr and their web traffic increased by 80% with 3.6 milion hits”. In
addition it helped people to rememberthe insurance company that wasseenas dull beforehand (“Meerkat
star: Compare the Market animal becomes Facebook and Twitter hit”, 2009). The focus on Nice1’s
partnership’s animal spokesperson will create a stronger brand personality, especially for those
companies that are considered uninteresting and low involvement and differentiate themselves from their
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industry competitors and loyalty card competitors. It will create synergy between allthe partnerships and
Nice1 because through the previous marketing campaign customers can make easy and positive
association. Furthermore, this could increase future brand sales,as Sharon Beder explains that children’s
purchase and behavioural patterns towardscompanies will result in customer loyal asthey become adults
(Beder, 1998). Therefore, the strong animal spokespersons can potentially create strong nostalgic and
positive associations to Nice1 and their partnerships that it will increase overall brand equity of all
companies and future purchases as the child transitions through life, increasing sales revenue and profit
margins for Nice1.
Communication and Promotion (Keychain display)-The key chains will be attached to a keychain
holder, which is used to promote Nice1 and all the partnership company’s logos in support of raising
funds for Auckland primary school funds. The design of the keychain holder will be temporarily mounted
on to the front desk for the 6-month promotional period. The key chains themselves will have springs
attached so that the product can be extended to small children that may not be able to reach the front
desk. This is created to support the hype of the animal card collectables and increase motivation,
awareness in collecting more cards, thus increasing continuous sales revenue over that promotional
period. The key chain display is simple, yet effective as it focuses on showcasing the types of animal
collectible key chains and the partnerships that are involved with Nice1 to provide these rewards. One
key chain representing each partner will be distributed to the Nice1 partners and one keychain display.
This will leverage each of the partnership brand and each other’s brand by promoting their own, their
partners and Nice’ sense of goodwill, thus creating synergy and positive brand image. By collecting
twenty cards, one keychain is collected. This incentives usage as the tangible reward increases
involvement and motivation. Engaging children would also encourage parental usage.
Customer experience management- In order to ensure our marketing program adds the most value and
satisfaction to customers. It is vital that the quality of the animal cards and the animal key chains are
consistent to avoid any external costs to the business. These external costs result in customers receiving
defected quality prints of cards and broken key chains. Thus, resulting in reduced brand equity as those
negative associations to the rewards create negative word of mouth, reducing the total overall customer
value of Nice1 and their partners. It takes eleven positive pieces of information to increase one negative
information about a product, therefore to avoid extra cost and time to Nice1 and their companies it is
vital that all rewards are delivered at the right time, place, customers and the product matches the
promotional rewards efforts to avoid any miscommunication and increase transparency throughout
Nice1’s offering. To ensure customers get the best experience with Nice1’s rewards two suppliers from
Alibaba.com have been chosen. These suppliers both support Trade Assurance, which offers agreed
refunds with your suppliers if there are any issues with the products, punctual shipping and ensure tight
quality control. The supplier Shanghai Cheeron Industrial Co., Ltd is a verified supplier and has had 10
years of experience in offering business to business merchandise and specialise in promotional products.
Reliable companies such as FedEX, UPS and DHL are used to deliver their products. They also follow
international safety standards and can provide regular discounts despite large purchasing. The second
supplier, Ningbo Lerong Toys Co., Ltd. is also a verified supplier of 22 years of toy manufacturing and
has won the award of Gold supplier, passing all onsite checks. They focus on passing the cost savings on
to the buyer and offer Nice1 the ability to chat with the supplier to gain personalised price deals for their
promotional product. Because Nice1 already has the capabilities in managing suppliers on behalf of their
clients, Nice1 can use their exceptional skills in managing these suppliers on behalf of their partners and
adding these suppliers to their supplier list for future promotional efforts. The reward is only a part of the
customer experience; therefore it is vital that Nice1 and their partners creates a shared company culture
that focuses on transparency,honesty and rapport with their customers to serve any problems that may
arise throughout the promotional period both online and offline. To do this Nice1 and their partnership
companies must make sure that all employees understand what offerings they are providing, must
communicate effectively with each department in their own company and partnership companies and
follow the shared code of conduct and fulfilling reward promises to the customer and schools. This will
12
ensure that both Nice1 and their partnerships front and back offices are consistent. For example, the
service desk must knowledgeable o the card promotions and be honest with customers with any questions
they may have regarding how much of their money will be exactly going to schools. The front office
must then communicate any reward shortages to the business in order to get the buyer groups to order
and accurately forecast future purchases for nice1 cards and key chains. Nice1 and their partners need to
make sure that they respond quickly, openly and empathically with their consumers through Facebook to
correct any issues that may arise. Hiring additional staff to manage their online efforts may be necessary
to keep the animal spokesperson relevant and interesting and to update promotional efforts.
Communication/promotion-We used print media into the school newsletters because we thought it was
a more effective and efficient way to reach our target audience. The print media will be displayed at the
back of the newsletters for the full promotional period which is estimated to be held for 6 months.
According to Questeretal. (2014) stimulus factors such assize intensity, colour and movement, position,
isolation, format, contrast, compressed messages and information quality tend to attract consumers
attention. It notes that “larger stimuli are more likely to be noticed than smaller ones, which is why for
our print ad, it covers the full A4 sized newsletter on a landscape view, so it’s not crowded by any other
ads and it is the most noticeable on the whole page. Quester et al. (2014) also state that brightly coloured
packages and ads a more likely to gain attention, which is why we decided to incorporate bright colours
like blue, green and yellow into our print ad to better grab the attention of the target. Also because blue
is known to be a colour that portrays trustworthiness, we incorporated blue into a majority of the ad. The
position of the Nice1 logo is placed in the centre of the ad to draw more attention to Nice1 because in the
text it is stated that “objects placed near the centre of the visual field are more likely to be noticed. The
clarity of the ad design was important to convey the message to all potential users, therefore the format
is simple with one sentence which draws attention to ‘FREE’ which is in red, and bold. It also increases
curiosity, which would encourage follow up. The print ad also displays what the children will receive if
they shop at Nice1’s participating outlets and what they will receive if they collect 20 cards from the
company which is the keychain. The key chain and the animal cards is the incentive for the children and
parents to follow up on the ad.
Social Media and the Website-Nice 1s target market are technological savvy, so we advertised online
in the form of social media, like Facebook since it is the most widely used/known social media platform
and on Nice 1's website (Ebiz MBA, 2015). Advertising online is cost efficient, effective and
environmentally friendly from less printing of ads etc. Facebook reaches customers as connections on
the Nice1 Facebook page is already established with 227 of their target market. Since Nice1 want to
market to diverse populations such as Asians, Facebook can personalize messages based on different
languages through language settings. Nice1 has established connections with their target through the
website, so customers will have a better opportunity to see the ad online. Advertising messages can be
sharedmore, at a fasterrate online and word of mouth influences. Online, Nice1 can respond to problems
faster,ensuring better customer experience during the promotional period. Digital media better grabs the
attention of the target market “no other product/service can capture kids interest” and “four million
children use the internet world-wide and will increase dramatically” (Beder, 1998). Children are heavy
influencers on parents in the target market, “studies found children's influence is greater with increased
family income” (Mangleburg, 1990), this influences parents to follow up on print ads they see, or hear
about from their children, as well as posters in stores influencing the parents to do extensive online
research on Nice1 and lead them to the Nice1 website and Facebook page. Nice1 can support the
promotions of their partnership companies by sponsoring their partnership company incentives. For
example in the appendices we have shown how Nice1’s Facebook page canpromote 2degrees incentives.
Also, to support future promotions of Nice1’s partnerships each company will have their own animal
ambassador on the company webpage, which is derived from their animal cards. Weekly updates of the
animal ambassador conversations will be provided for the customers to view. The children can also write
emails to different company animals and responded back to within a week to increase customer
13
engagement and enhance relationships with their brand. Nice1 can also use the information in children’s
emails to understand their interests, how children develop at school to aid future marketing strategies.
7. BUDGET, FINACIAL STRATEGYand MONITORING METRICS
The base level cost break down, initial costs based on the 5% uptake goal, and information is included in
the appendices Figure 1.0 and 1.1. Six days contracted word from a graphic designer would be needed to
design the animal cards,promotional materials, and the animal ambassadors for Nice1 and their partners.
This is a one-off cost of $9000.00. A social media employee working 10 hours a week for the initial 6
month timeframe would cost $900.00 ($15/hour) who would have a $900.00 budget ($150.00 a month)
for ongoing social media marketing (e.g. competitions, giveaways etc.) which would increase word-of-
mouth advertising. Each of the 131 schools would be provided with four A1, 80gsm colour posters for
a total off $3406.00 ($6.50/each, at Warehouse Stationery). Featuring in school newsletters should be
complimentary. Custom point of sale display stands feature in store and school offices would cost $4.00
individually. For (131) schools this would cost $524.00 total, and $120.00 would be the initial budget for
current Nice1 partners. Any additional partners/stores can be added in the future. Combining to a total of
$644.00. The creation of a free-to-customer, multi-lingual application would require $10,000.00. This
figure is based on an estimated, average $100/per hour of programmer employment (the initial graphic
designer cost would cover some of the visuals to be integrated into the app).
Therefore the total budget necessary to cover a six month growth period with the goal to achieve 5%
uptake would be; $24,850.00,or 3.2% of the estimated, average revenue. The main benefit of the budget
is its fluidity. If usage surpassed estimates, then so too would the number of swipes and corresponding
revenue for Nice1. Thus marketing costswill always be significantly below revenue.This budget is based
solely off Nice1’s cost and revenue structure, though we anticipate that some marketing costs could be
shared with Nice1’s partners.
Financial Metrics- For current health, total revenue, cost, and hence profitability of each department
within Nice1 further breaks down where true profit comes from and can then inform future business
decisions and investment. Here, regular accounting metrics used to measure the health of a business are
most effective, such as capital returns, which measures how much revenue is generated from the use of
physical capital.
Other Metrics (Generic Marketing Strategy-Relevant)-To quantify the effectiveness, directly
measuring uptake and usage of the cardsand the collection rate of the cards andkeychains would quantify
the marketing effortsand allow for comparative judgements to be made in order to bestallocate resources.
These are two solid metrics that relate directly to not only Nice1’s base goal of increasing card uptake
and usage,but also the added step of showing customers are motivated by the marketing efforts and take
the next step of claiming the cards and other rewards they are entitled to as per the marketing strategy.
The way the marketing strategy is designed, one keychain will be awarder per $400 spent in conjunction
with a Nice1 card. From this, each keychain awarded will directly correlate to a dollar amount earned by
Nice1. The information Nice1 currently collects is important to future efforts and tailoring activities to
best suit their target market/objective.
8. SUMMARY and CONCLUSION
Quantitative and qualitative data and research have culminated into a sharply focused marketing plan for
the Nice1 schools program. The main short term goal of 5% uptake in 6 months has been successfully
projected with a campaign that requires minimal cost input with high return on investment percentages.
The holistic strategy would improve initial brand recall and recognition which would be continuously
supported through ongoing social media interaction. Overall this strategy focuses equally on
optimization, consistency, success and growth.
14
9. REFERENCES
Auckland Savings Bank. (2015). Get an ASB credit card with true rewards. Retrieved from
https://www.asb.co.nz/personal/credit-cards/true-rewards
Backus, P. & Clifford, D. (2010). Trends in the concentration of income among charities. Third sector
Research centre working paper, 39. Retrieved from
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Beder,S. (1998). Marketing to children. Paper presented at the A Community View: Caring for
Children in the Media Age,Sydney. Retrieved from https://www.uow.edu.au/~sharonb/children.html
BKA Interactive. (2014). Giltrap Group [Photograph]. Retrieved from
http://giltrap1-px.rtrk.co.nz/?utm_source=ReachLocal&utm_medium=cpc&utm_campaign=search
Bowett, R. (2015). External environment: Business and inflation. Retrieved from
http://www.tutor2u.net/business/external/economy_inflation.htm
Burks, R. (2015). A new study reveals why some people donate more to charity than others. Retrieved
from http://www.techtimes.com/articles/11536/20140729/a-new-study-reveals-why-some-people-
donate-to-charity-more-than-others.htm
Business Case Studies UK. (2015). Working within the business cycle.Retrieved from
http://businesscasestudies.co.uk/building-societies-association/working-within-the-business-
cycle/boom.html#axzz3ZnSa9e4l
Contact Energy. (2014). Contact Energy [Photograph]. Retrieved from
http://www.contactenergy.co.nz/aboutus/home
Countdown. (2015). Onecard. Retrieved from http://www.countdown.co.nz/onecard
Cushman, Abi. (2014). Bottlenose Dolphin. Retrieved from
http://www.animalfactguide.com/animal-facts/bottlenose-dolphin/
Cushman, Abi. (2014). Polar Bear. Retrieved from
http://www.animalfactguide.com/animal-facts/polar-bear/
Ebiz MBA. (2015). Top 15 Most Popular Social Networking Sites.Retrieved from
http://www.ebizmba.com/articles/social-networking-websites
Education Act 1989. (n.d.). Retrieved May 2, 2015, from
http://www.legislation.govt.nz/act/public/1989/0080/latest/DLM175959.html.
Ewoldt, J. (2014). With the swipe of the smartphone, loyalty punch cards becoming
obsolete. Star Tribune.
Farrow, G. (2015). The rise of the conscious consumer. Retrieved from
http://www.nzherald.co.nz/element-magazine/news/article.cfm?c_id=1503340&objectid=11382530
Fashion Cloud. (2015). Office Max Logo [Photograph]. Retrieved from http://fashions-
cloud.com/pages/o/office-max-logo/
Gold Supplier. (2014). Gold Supplier. Retrieved from http://www.alibaba.com/help/gold_supplier.html
15
Jervios Steak House. (2011). Jervois Steak House [Photograph]. Retrieved from
http://www.jervoissteakhouse.co.nz/
Kim, W., & Mauborgne, R. (2004). Blue ocean strategy. Harvard Business Review,82(10),76-84.
United States of America, Harvard Business School Publishing Corporation.
Lacki, T. (2009). Circumstances and customers have changed: Has your loyalty programkept pace?
(White paper). Oracle: Pepper & Rogers Group.
Lee,Y. K., & Chang, C. T. (2007). Who gives what to charity? Characteristics affecting donation
behavior. Social Behaviorand Personality: An international journal,35(9),1173-1180.
Lau, F. (2009). Corporate social responsibility. Retrieved from
http://www.manpower.co.nz/Documents/White-Papers/2009_CSR%20White%20Paper.pdf
Loyalty Leaders. (2015). Facts. Retrieved from http://www.loyaltyleaders.org/facts
Mangleburg, T. F. (1990). Children’s influence in purchase decisions: A review and critique. Advances
in Consumer Research, 17,813-825. Retrieved from
http://acrwebsite.org/volumes/7108/volumes/v17/NA-17
Meerkat star:Compare the Market animal becomes Facebook and Twitter hit (2009, August
13). Telegraph.
Ministry of Education Funding (2011). Staffing and Allowances Handbook. Retrieved May 2,
2015, from
www.minedu.govt.nz/NZEducation/EducationPolicies/Schools/SchoolOperations/Resourcing/Resou
rcingHandbook.aspx
Nice1. (2013). About us. Retrieved from http://www.nice1.co.nz/aboutus
Nice1 Schools. (2014). About us. Retrieved from http://nice1schools.com/pages/aboutUs
Ningbo Lerong Toys Co., Ltd. (2015). Ningbo Lerong Toys Co., Ltd. Retrieved from
http://lerongtoys.en.alibaba.com/company_profile.html
Oracle. (2009). “Has your Loyalty programkept pace?” [White Paper].Retrieved from
http://www.oracle.com/us/solutions/051272.pdf
O’Sullivan, R. (2015). Countdown collectables: Shopping with animal instinct gets second run. Stuff.
Retrieved from http://www.stuff.co.nz/business/67920313/countdown-collectables-shopping-with-
animal-instinct-gets-second-run
Paredes, D. (2015). Speed of technological change is top worry of New Zealand CEOs: PwC. Retrieved
from http://www.cio.co.nz/article/568933/speed-technological-change-top-worry-new-zealand-ceos/
Phillip, Kelly. (2015). Phillip Kelly Studio [Photograph]. Retrieved from
http://www.philipkellystudio.com/114933/1021427/projects/brand-id-2degrees-
Porter,M. E. (1997). Competitive strategy. Measuring Business Excellence, 1(2),12 – 17.
http://dx.oi.org/10.1108/eb025476
Quester,P.,Pettigrew, S., Kopanidis, F., Rao Hill, S., I Hawkins, D. (2014). Consumer behaviour.
Australia: McGraw-Hill Education.
16
Ranta, S. (2013). The advantages of Mobile Loyalty Programs. Retrieved from
http://retailsphere.com/mobile-loyalty-programs/
Sandilands, T. (2015). Effect of Recession on Small Businesses. Retrieved from
http://smallbusiness.chron.com/effect-recession-small-businesses-61164.html
Shanghai Cheeron Industrial Co., Ltd. (2015). Shanghai Cheeron Industrial Co.,Ltd. Retrieved from
http://shcheeron.en.alibaba.com/
Smith, P.A. (2014). Siberian Tiger.Retrieved from
http://www.animalfactguide.com/animal-facts/siberian-tiger/
Smith, P.A. (2014). Green Sea Turtle.Retrieved from
http://www.animalfactguide.com/animal-facts/green-turtle/
Smith, P.A. (2014). Killer Whale. Retrieved from
http://www.animalfactguide.com/animal-facts/killer-whale/
Statistics New Zealand. (2003). National family and household projections: 2001 (base) - 2021.
Retrieved from
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HouseholdProjections_HOTP0121.aspx
Statistics New Zealand. (2006). Demographic aspects of NewZealand’s ageing population. Retrieved
From
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aspects-nz-ageing-population.aspx
Statistics New Zealand. (2014). Population projections tables. Retrieved from
http://www.stats.govt.nz/tools_and_services/nzdotstat/tables-by-subject/population-projections-
tables.aspx
Strahilevitz, M. A. (1999). The effects of product type and donation magnitude on willingness to pay
more for a charity-linked brand. Journal of Consumer Psychology,8(3),215-241.
TrumpCard. (2015) What is Trump Card? Retrieved from http://www.trumpcard.co.nz/
Walker, O.C.,Jr.,Gountas, J.I., Mavondo, F.T. and Mullins, J.W. (2012), Marketing Strategy: A
Decision-Focused Approach (2nd
ed.). NSW,Australia: McGraw-Hill Australia.Westpac. (2015). Hot
points. Retrieved from https://www.hotpoints.co.nz/what_can_I_get?
Williams, J. (2010, November). What is the future for traditional loyalty card schemes? Computer
Weekly.
Wright, C., & Sparks, L. (1999). Loyalty saturation in retailing: exploring the end of retail loyalty
cards?. International Journal of Retail & Distribution Management, 27(10),429-440.
17
10. APPENDICES
Figure 1
Figure 1.0
18
Figure 1.2
Figure 2
Figure 2.2

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Group 1 MKTG 301 Marketing Proposal

  • 1. 1 Marketing Plan Group 1 Group Members: Vanita Chandra- UPI: vcha308 ID: 8662754 Aidan O’Donnell- UPI: aodo719 ID: 5807903 Maya Traill - UPI: mtra038, ID: 1685937 Alexandria Lee- UPI: alee416, ID: 2763458 Douglas Hillyer – UPI: dhil404, ID: 6925389 Julia Gardner- UPI: jgar823, ID: 2738340
  • 2. 2 EXECUTIVE SUMMARY The majority of schools in New Zealand run on deficit, governmental financial contributions alone do not cover everyday expenses. This, combined with inefficient fundraising schemes, has created the need for a simple method to achieving actual financial returns for schools. Nice1 is a business consultant and management service organization, which is able to use business relationships alongside marketing, development and innovative technology to cater to this specific need. Though the fundraising market is competitive, the sub-market that Nice1 subsides in is geographically specific and community oriented. Despite present competitors, Nice1 is largely unique in its operation, value offering and most specifically, their core competencies. Through active business partner management, Nice1 is able to provide schools with strong business players who have large pools of customers and revenues. This marketing proposal is based on the 131 decile 7-10 schools in Auckland, with the objective to garner 5% uptake within a six month time frame. Through Nice1, schools are connected to business partners who offer rebates on transactions. The rebates and data are captured on a personalised, school specific card used by student families. Thus, creating an efficient, high-return ‘fundraising’ opportunity. A number of significant internal and external forces have been identified, with their impact on the Nice1 Schools program and marketing strategy understood. School funding schemes have been examined which alongside legislature outlines the compulsory nature of schooling in New Zealand, and shows the importance and need for a long-term fundraising solution. The fixed nature of the market is further supported through demographic data, which shows that nearly a third of the overall population is school aged with increasing youth dependency. By utilizing the data and focusing on financial effectiveness alongside an integrated, creative marketing strategy; four key avenues were identified. By tailoring a marketing approach to focus on these four key avenues (the main advertising campaign including cards/keychains exchange program, supplemented by POS and poster displays , technological integration through a tailored application, with an overarching increased social media presence) short and long term growth objectives can be achieved. The strategy involves an initial six month campaign which focuses on encouraging new users, and existing users to make use of their cards. Card holders will be rewarded with one card (specifically designed for business partners) for every twenty dollars spent, and then able to redeem twenty of the same card for an adjoining keychain. This main campaign will be supplemented by POS and poster displays in schools and the business partners alongside a tailored Android/iPhone application. The last element to the marketing strategy is an increased social media presence, this is anticipated to continue through the life of the Nice1 schools programme. The proposed budget requires 3.2% of the projected, total, average revenue to achieve 5% uptake in the six month period. Though the focus is on the six month timeframe, we anticipate that the benefits would be more long-lasting. The marketing strategy uses synergistic tactics to achieve tangible, objective goals. By engaging with four main avenues in the strategy, a holistic approach has been created with each method serving to achieve the overall goal.
  • 3. 3 Table ofContents Title Page 1 Executive Summary 2 1. Introduction and Background 4 • Company Profile • Product Definition • Business Profile 2. Objectives 4 3. Situational Analysis 4 • External Analysis • Market/ Submarket Analysis • Customer Analysis • Competitor Analysis • Internal analysis 4. Marketing Strategy and Value Proposition 8 • Value Analysis • Value proposition 5. Generic Marketing Strategy 9 6. Tactical Marketing Plan 10 • Offer Development Plan • Communication / Promotion Plan • Sales and Distribution Plan • Customer Experience Management 7. Budgets and Financial Strategy and Monitoring Metrics 13 8. Summary and Conclusion 13 9. References 14 10. Appendices 17
  • 4. 4 1. INTRODUCTION AND BACKGROUND Nice1 is a supplier, consulting, and Partnership Company that has leveraged its resources to create a unique sub-brand and “Nice1 Schools” project. Nice1 is a specialist in providing membership benefits and loyalty programs, and is now focusing on utilising this for a tailored program for decile 7-10 schools in Auckland (Nice1, 2014). As a company that is passionate about benefiting the community while also assisting organisations in raising funds; Nice1 has developed a unique program which creates mutual benefit for buyer groups, sellers and individuals by increasing revenue, sales and loyalty (Nice1, 2013). Nice1 is currently focusing on business partners, ensuring they are achieving strong return on investments, and maximising relationships with the association and members (Nice1, 2014). Product Definition- Nice1 Schools provides an end-to-end loyalty programme which enables families to allocate a portion of their regular spending to their school as a donation or rebate (Nice1, 2013). Business Profile- Nice1 is an Auckland basedcompany with a teamof marketing, sales,strategy,creative and design specialists, which has been in the market working with buying groups and suppliers since 2004. Nice1 prides itself on being a 100% NZ owned and operatedcompany that is committed to realising the benefits that ongoing funding for schools has on maintaining a high standard of education. Nice1’s strategic business model “brings organizations and businesses together. Manage the relationships and the delivery of a fundraising or membership benefits program. The program is designed to benefit everyone.” Nice1’s key service areas: program development and management, marketing, sales, supplier management, buying group management, and technology (Nice1, 2013). 2. OBJECTIVES Nice1 aims to have 5% uptake of the Nice1 card within the targeted schools within six months. Our specific objectives to achieve this include the following: I. Increase positive word-of-mouth within the 6-month promotional period. II. Attract, increase awareness and remind children and families to participate in Nice1 loyalty cards and promotional efforts via in-store point of purchase displays, school newsletter advertisements and online advertising III. Nice1 must be accessible on multiple technological platforms to increase customer point of contact and collect more detailed information in their database. IV. Offer rewards that resonate and add value to customers of different ethnicities and ages. 3. SITUATION ANALYSIS INTERNALAND EXTERNAL External Analysis: Political- In New Zealand the Education Act (1989) dictates that New Zealand citizens and residents are entitled to free primary and secondary education. Most schools require ‘voluntary donations’ or extended fees to supplement government funding (Ministry of Education, 2011). Economic-During economic periods like recession, inflation and boom, can impact on consumer purchase behaviour. Nice1’s budged and demand would also be affectedby fluctuating spending patterns by (Sandilands, 2015; Bowett, 2015; Business case studies, 2015). Sociocultural- “Corporate social responsibility (CSR) has become an increasingly significant phenomenon in New Zealand (Lau, 2009)”. More businesses are willing to support and align themselves with non-profit organisations and therefore create a more competitive environment for Nice1. Technological -The environment in NZ is becoming more technological, “technology change is the biggest mover, increasing to 68 per cent from 37 per cent in 2014 and that this rapid change in the
  • 5. 5 marketplace is presenting just as many opportunities as risks” (Paredes,2015). This may help Nice1 gain better capabilities and improve efficiency etc. or it may reduce Nice 1's market share in a more competitive marketplace. Ecological- “82% of New Zealanders are concerned about the future and where NZ is doing enough to stay safe and it also suggests that there is a growing demand from consumers for environmentally and socially conscious products” (Farrow, 2015). This could impact future operations for Nice1, and could discourage loyalty card usage if it harms the environment, or become more brand loyal to competitors that are more environmentally involved. Demographic- According to stats NZ, “by the late 2030’s the older 65+ age group is projected to make up over a quarter of NewZealand’spopulation”(Statistics NZ,2006). To add to this statsNZ also projects that “by the early 2040s, deaths may outnumber births” (Statistics NZ, 2006). This may impact Nice 1 because more households will consist of older people rather than children which may reduce the number and impact of loyalty households. There has beena noted decrease in households with children (Statistics NZ, 2003), and an increase in net migration (Statistics NZ, 2014) which could decrease the customer pool for Nice1 impacting profit and growth. Market/Sub-market - The principal market which Nice1 is competing in is that of charitable or fundraising efforts. This is a fast growing market. In 2011, New Zealanders were estimated to have given $2.67 billion to charities and fundraising, almost double that of 2006 (Philanthropy New Zealand, 2011). However,buyers exist in the market with only a finite amount of time or money that they are willing to donate to causes,and this has created a market of intense competition amongst fundraising efforts,which will limit profitability (Philanthropy New Zealand, 2011). Furthermore, Backus and Clifford (2010) assert that the largest charities’ have developed a dominant market share and this position allows them to push smaller charities out of the market. The public looks more favourably upon charities whose cost structure favours spending on the cause itself (Dyson, 2013). Nice1 is fortunate that it operates in a sub- market of geographically specific and community oriented fundraising efforts. This is a market which is less competitive as Nice1 will not have to directly compete with larger nationally or internationally oriented fundraising efforts. While this lack of dominant players is advantageous for Nice1, it should be noted that there may be a multitude of smaller operators who are also attempting to fundraise for community efforts (for instance local schools and clubs acting independently). In a sense, Nice1 is competing in order to achieve the same goal (community betterment) via a different means. Therefore, Nice1 should take care in the way it treats its competitors or risk cannibalising revenue from the communities it seeks to assist. Customer- At the most recent 2013 census the number of people usually living in the Auckland Region was 1,415,550. This is an increase of 110,589 people, or 8.5 percent, since the 2006 Census. Auckland has 33.4 percent of New Zealand’s population, and its numbers rank first in size out of the 16 regions in New Zealand. Projections for the sub-national population forecast that the population growth rate will slow in all regions, and that three-fifths of New Zealand’s population growth between 2013 and 2043 will be in Auckland. It is projected that Auckland’s population will reach 2 million by 2033 (Statistics NZ, 2015). How Auckland compares socio-demographically to the rest of New Zealand (Statistics NZ, 2015): - In 2013, the Auckland region had the highest percentage of 'couple with children' families, at 46.5 percent. - Couples with children make up 46.5 percent of all families in Auckland, which is higher than the percentage of New Zealand as a whole. - Auckland has 48,405 extended family households, which is almost half of all extended families in New Zealand. The board with the highest number of extended families is Howick.
  • 6. 6 - The median age of Auckland is 2.9 years younger than the rest of New Zealand’s average population. - In 2013, most parents in families of one parent with dependent children were women, at 84.2 percent. This was up from 83.4 percent in 2006. - 29.2 percentof workersin Auckland have anannual income of more than $50,000, in comparison to New Zealand overall where 26.7 percent earn more than this figure. Within New Zealand, Nice1 Schools has segmented the market according to geo-demographic characteristics by targeting the school and family households of decile 7-10 schools in the growing Auckland region. Compulsory education in New Zealand is a competitive environment, as it follows by a market model structure. Parents have freedom of choice for deciding which children their school will be educated, however due to zoning restrictions there are boundaries. Schools are motivated by the financial need to compensate for a gap between funding provided by the government, and actualfunding needed. In the competitive schooling environment, schools need to have attractive resources,and this is often an unmet need. Parents of children at school are motivated by the desire to help the school grow and improve in order to provide an enhanced schooling experience. These consumers may be unaware of their capabilities in contributing towards school fundraising in a cost-effective and efficient way. Competitors- Nice1 competitors reside in two categories; direct competitors and indirect competitors/ substitute businesses of Nice1. Charity Organizations: Fundraiser-Online- They are a potential competitive substitute as they focus on raising funds in New Zealand. They support kiwi schools through a simple, user-friendly webpages that can be tailored for a schools fundraising related needs. FreshChoice – Focuses on an online community fund that focuses on raising financial aid for schools and preschools. Fresh Choice can be seen as competitor of Nice1 as anyone in the community can ask to be funded, they have a number of community projects in New Zealand Profit Companies: FlyBuys& OneCard- Fly buys and One Card can be seen as competitors of Nice1 because just like Nice1 they provide a reward card that allow members to collect points/dollars. These loyalty/rewards cards determine where the members shop and swipe their cards. Flybuys and OneCard both operate on a much larger scale than Nice1, both in terms of brand awareness and usability and flexibility of use. Trump Card- It is a loyalty card program that represents various, specific charities, sports unions or schools. By swiping this card at participating outlets, the members of the program are able to generate cashdonations for the cause andloyalty rewardsforthe members.Trump cardcanbe seenasa competitor of Nice1 because trump cards service that is being offered is homogenous to Nice1 with the only differentiation is that Nice1 participating business is different from Trump cards participating businesses and that members in Nice1 don’t have much choice in the schools that they donate to whereas with trump card, members are able to choose specific schools in their community. Westpac & ASB- Both have rewards systems where every time a member swipes their credit card, they are able to collect points that are accumulated and can be spent on charities, merchandise” (ASB, 2015) (Westpac,2015). Usage of the card equates to accumulated points. ASB true rewards and Westpac hot points can be seen as competitors to Nice1 as just like Nice1, both rewards systems enable members to collect points every time they swipe their credit cards. ASB and Westpac are well-known brands, which encourages use of their cards instead of Nice1. Also the inclusion of personal rewards offers greater incentive for individuals to use, which impacts Nice1’s reach, involvement and gaining new members.
  • 7. 7 Internal Analysis: Strengths 1. Nice1’s core competencies include; that they have no competitors in New Zealand that offer the unique dollar per points based service, their unique consulting and plug and play services to businesses, and their relationships with sports associations and schools (Nice1, 2015). 2. Their competitive advantage includes their expertise in tailored membership benefit programs. Along with their plug and play services, which allow business to select what and how to customise without having to outsource its services. Their expertise in their service offering is magnified as they have been in business for ten years. The unique dollar per point based service enables valued to be added to kiwi families in bad economic times by offering discounts and initiating reward funds. By encouraging loyalty from its customers and partners, they have a strengthened, ‘win-win’ situation where everyone is benefitted (Nice1, 2015). 3. Human resources include experts in the membership benefits program. 4. Consumers are likely to use loyalty cards in times of economic downturn. There has been an increase usage and importance in loyalty programs during recessions. One- third believe that loyalty programs support them during economic deprivation (Loyalty Leaders, 2015). Weaknesses 1. Nice1 schools program cannot be accessed unless a card has been an issued a loyalty card and created an online account, making it difficult for potential customer and schools to find information on who Nice1 is and what they offer, and their specific benefits and details. 2. The strategy behind loyalty cards is losing customer effect in good economic times. “Many consumers have 18 cards but engage in only 8” (Ewoldt, 2014), also customers lose their cards and don’t like to remember card information in order to use it. In 2009, a Colloquy Loyalty Marketing Census it was understood that only 14.1 of the loyalty programs joined, 6.2 were actually engaged and used. Further, 53% of loyalty systems are used by the retail industry which allows for all to capture and track customer spending and purchases (Oracle, 2009). 3. Loyalty programs cannot create a personalrelationship, as services are standardised and benefits are directed elsewhere-specifically here, the benefits are directed solely to the school. 4. Nice1 has focused on a narrow market segment. Walker, Gountas, Mavondo and Mullins (2012) explain that less people are having children or are having children at a maturing age. Therefore, the proportion of children attending in primary schools will decline in the future and less families to market causing a decreased usage the Nice1 loyalty cards. Opportunities 1. Nice1 hasthe ability to engage in extended use strategy by offering an online loyalty cardthrough customer mobiles which creates a new way to use the Nice1 loyalty card, eliminating the cost of card replacements, and increases virtual loyalty usage. It is also a more effective way to store and collect purchase data. For example, if the consumer switches mobile or restores their phone whilst deleting the application the loyalty program application can be downloaded again with all their retail data saved and can be accessed easily by the customer through their log- in details (Ranta, 2013). “Yankee Group indicates that 60% of consumers own a smart mobile and 40% use a retail or coupon application on their phone”. Furthermore, they also indicate that 47% of consumers want retailers to offer loyalty applications and would be more willing to purchase from a store that has a mobile-centric loyalty program” (Ranta, 2013). 2. Offering a new service in the same market through connecting debit or credit cards with loyalty programs. An example of this is Eftplus, which allows payment cards to be linked with loyalty cards to resolve the issue of severalloyalty cards being held by consumers (“Loyalty links up to new payment card”,2014). This could allow Nice1 to identify the customer, track purchases and reward them which can increase customer value. Eftplus resulted in 150,000 members and 14 million transactions (“Loyalty links up to new payment card”,2014). The customer requires no learning as they use their payment card which collects data and then sends a text informing them
  • 8. 8 how many vouchers they have accordingly received (“Loyalty links up to new payment card”, 2014). Nice1 has the potential capital if partners are willing to share the costs to implement this system and their dedicated technology team, this is a real opportunity. 3. Offering marketing promotions through Facebook to increase and support the Nice1 loyalty card usage as most customers engage in Facebook frequently. Nice1 could use this to increase uptake and consistently remind customers.Increasing their social media presence would also ensure that they are relevant to their consumers. Rob Bamforth, principal analyst at Quocirca emphasises that marketing promotions on Facebook will impact loyalty card use in the same way online shopping platforms have effected retail shops (Williams, 2010), therefore if Nice1 wants to hold their competitive position and succeed in the market they need to support their loyalty programs with Facebook promotions and social media interaction. 4. MARKETING STRATEGYAND VALUE PROPOSITION Secondary research drivers of value- Unfortunately, there is little research available pertaining to Nice1’s specific market niche. However,this demonstrates that the niche Nice1 occupies is not heavily competitive and may therefore represent a ‘blue ocean’ market (Kim & Mauborgne, 2004). For simplicity’s sake,we have chosen to explore the drivers of value for the charity industry, and the loyalty card industry, which Nice1 operates on the intersection between. Charitable efforts-Likelihood to participate in charitable effortscan be divided into two distinct subsets. The first is psychographic factors such as sense of social responsibility, empathy, and awareness and knowledge. The second determinant factor is demographic profile, where likelihood to participate will be affected by age, gender, marital status, family type, and socioeconomic status (Lee & Chang, 2007). In terms of psychographic characteristics the most important driving factors are social responsibility, empathy of the cause,and awareness and knowledge of the cause. (Lee & Chang, 2007; Burks, 2015). Nice1 is in the unique position to take advantage of consumers value drivers for charitable efforts. By operating the program in decile 7-10 schools, Nice1 is set to be able to capitalise on a market who are extremely willing to donate to charitable efforts. Helpfully, factors such as being married and having a family will all positively influence willingness to participate in charitable efforts. Nice1 are well- equipped to take advantage of the empathy which community members possess towards their local schools. Secondly, Nice1 have a well-developed technological infrastructure which enables them to collect information about the demographics of families who are using the Nice1 system. While this does not increase consumer value in itself, it is an excellent means for Nice1 to tailor their program to their biggest users, thus adding value. Loyalty cards- The drivers of value for loyalty cards are unfortunately fairly complicated (Wright & Sparks, 1999), the long-held assumption was that loyalty card programs fostered loyalty in their consumers. Counter-intuitively, this does not actually seem to be the case. Instead, Wright and Sparks suggest that loyalty behaviour may only engender repeat purchasing in consumers. This is functionally different from loyalty in that it does not possess the key emotional/ empathetic aspect to drive repeat purchase. Instead, it is far more driven by practical concerns and consumer self-interest. Wright and Sparks go on to suggest that consumers are relatively savvy about how loyalty card programs are used, and may only purchase items using loyalty cards when they benefit most from it, while ignoring them most of the time. In order to maximise their market success,Nice1 will need to find a way to defuse this inherent self-interest which loyalty card consumers possess. Primary research-Our own focus group and survey research has largely supported the conclusions which previous studies have found. Most of the surveyed respondents participated in some kind of loyalty card program. The most commonly cited reasons for respondents participating in these programs was the economic benefits to themselves. Nice1 should keep this in mind when proceeding with a marketing strategy, as it may be difficult for consumers to accept a loyalty card program that benefits a cause other than themselves. From our focus groups and research,we have found that the most significant issue which potential consumers face when attempting to support local fundraising efforts is one of
  • 9. 9 knowledge. Nice1 may be able to overcome this lack of knowledge in potential consumers through their excellent marketing program. Eventually, network effects should be established which will place Nice1 in a very well established position to prevent new market entrants. Furthermore, the large majority of the participants indicated that they would be willing to modify their spending habits if it were to serve the cause of local fundraising. Unsurprisingly, the vast majority of respondents suggested that a reward program would increase their willingness to participate in the Nice1 program. However,given the limited scope and marketing budget that Nice1 possesses,purely financial rewardsmaybe financially unfeasible, and it would therefore be advantageous for them to explore other rewards systems. (The survey also exposed that families would typically spend around $150.00 per month- reflected in the budget). Drivers ofvalue-Forloyalty cardprograms, the most significant driver of value is consumer self-interest and reward. While for charitable efforts the most significant driver of value is non-tangible, that is, it is the sense that they are contributing to a valued cause (Lee & Chang, 2007). While superficially, these value drivers would appear to be mutually exclusive, in reality they are able to complement one another to create anextremely attractive customervalue proposition. To wit, most of the target market are already heavily emotionally invested in their local schools, and will therefore be farmore willing to shop atstores which will benefit the school, Nice1 will be able to take advantage of this loyalty in order to increase customer value. Moreover, having a rewards program for the families donating will only further increase the value added to Nice1’s efforts. If Nice1 is able to leverage their unique strategic capabilities and core competencies, they will be extremely well situated competitively position. Principally this will come from their sales and marketing ability, as this will add maximum value for the families themselves, who is currently the market that Nice1 is trying to capture (as opposed to the retailers. Secondly, Nice1’s technological capabilities are a greatdriver of value as it which will indirectly add value via accessibility, which will lead to increased uptake and positive network effects. Finally, their competencies for sales, supplier management, buying group management, service delivery, and programme development will also all help to add value to the services they deliver. Value proposition -Nice1 brings the community’s people, institutions, and local businesses together by allowing them to work in concert for the benefit of all. Nice1 is the only company who enables community members to support their local schools and clubs with every purchase they make. Simply swiping the Nice1 card ata participating store generatesmoney for their chosen cause.Swiping the Nice1 card also allows the buyer to generate rewards for themselves. 5. GENERIC MARKETING STRATEGY Focused differentiation is the generic marketing strategywhich will be adopted as an approachto achieve an increase in membership uptake and accelerate profitable growth in Nice1 Schools. This strategic approach will be applied through the development of Nice1’s product offer by improving it to become a rewards based programme in order to set it apart from its competitors. A differentiation strategy is appropriate based on several justifications:  The target customer segment is not highly price-sensitive due to the following reasons: Nice1 membership is provided at no cost to the consumer, customers control their own spending at the selected partner businesses, and the reasonably high income brackets of target customers.  The market for customer loyalty cards is saturated with many options and substitute products. Therefore there is a need to differentiate from competition by communication and delivering superior value to customers in comparison to other loyalty cards.  Customers have specific unmet needs which Nice1 is able to fulfil by utilizing their unique capabilities and resources which enable them to satisfy consumer needs in ways that are difficult to copy by new entrants. In a study conducted by researchers at the University of Auckland, a relationship marketing initiative executed well was found to increase customer satisfaction and loyalty. However, when executed poorly, both customer satisfaction and loyalty decreased,even when compared to taking no action at all. Don
  • 10. 10 Peppers states that many loyalty programmes today are simply designed to maximise short-term responses by executing traditional direct marketing but in a more efficient way. However, businesses need to build long term customer loyalty by focusing more on customer value than product value (Lacki, 2009). By developing the differentiated reward-based product offering and increasing advertising on various platforms, Nice1 will be able to enhance its brand image and identity through awareness and increase brand equity and positive word of mouth. Differentiation strategies defend against buyer price- sensitivity through brand loyalty and perceived added value in the mind of the consumer (Porter,1997). By combining differentiation with a Focused Approach Nice1 is able to target their product and service specifically towards the needs of families that attend decile 7-10 schools in Auckland, which is a highly defined market segment. By tailoring the marketing mix to target this selected segment Nice1 will be able to better meet the needs of its customers. A focused strategy also allows companies to focus exclusively on profitable market segments in order to optimise revenue. (Porter, 1997). 6. TACTICAL MARKETING STRATEGY Offer Development- Over the period of 6 months Nice1 and their partnerships such as 2 degrees,Office Max,Contact Energy and Giltrap Group will be offering a rewardsbasedprogram for consumers personal use in addition to the dollar per point based system for raising funds for school related rewards. The reward program for consumer’s personal use is appropriate for all cultures and ethnicities and takes into the consideration the growing Asian demographic in New Zealand. It consists of 100 animal cards to be collected, each company will have their own animal ambassador, and a picture and animal facts is displayed on the cards with the company logo in which the animal belongs to. The Success of animal cardsis seenin Countdown, where the both children and parentswere highly engaged in collecting cards. It was seen as a “cult craze” and was so popular a second round of animal cards were created. Parents loved the idea that it helped their children practice their reading and had educational value (O’Sullivan, 2015). It can also encourage the new Asian immigrants to practice their English skills. It was said to increasedbrand equity aspeople felt “connected” to the brand (O’Sullivan, 2015). To increase cardusage and add value to collecting the cards is to provide one animal soft toy key chains relating to each company. Customers must spend at least twenty-dollars at a specific partner in order to receive one specific animal card. There are a total of 20 animal cards to collect from that partner in order to receive that specific animal key chain. These products resonate,add value and attract primary school children to encourage parental involvement in Nice1’s rewards based program and increase card usage on a day-to- day basis due to the limited time to collect these child-oriented rewards. During the promotional time, the Nice1 and partnerships can increase engagement by creating a phone card swap application where customers can interact with other card users to increase involvement and trade their cards with one another to obtain the keychain faster. Hal Stinchfield, founder and CEO of Promotional Marketing Insights in Orono says that customer value faster rewards and those customers become dissatisfied when rewards are delayed (Ewoldt, 2014). After the 6-month promotion is completed. The idea of each company is to continue to link the animal of each company to become their very own animal ambassador for their company. This will be done through partnership websites where customers can learn personal information about the animal and new facts about that animal which will change every week to keep interest up. Also inserted in companies Facebook pages they will have their own animal icon on their pages. Sharon Beder emphasizes that customer loyalty is enhanced when companies create characters to support their products. Furthermore, Michael Brody, spokesperson for the American Academy of Child and Adolescent Psychiatry revealed that children will respond to charactersthatcompanies create (Beder, 1998). This marketing strategy has succeed for the website Comparethemarket.com. They created spoke character named Aleksandr to support and differentiate insurance companies. “Over 500,000 people became Facebook fans of Aleksandr and their web traffic increased by 80% with 3.6 milion hits”. In addition it helped people to rememberthe insurance company that wasseenas dull beforehand (“Meerkat star: Compare the Market animal becomes Facebook and Twitter hit”, 2009). The focus on Nice1’s partnership’s animal spokesperson will create a stronger brand personality, especially for those companies that are considered uninteresting and low involvement and differentiate themselves from their
  • 11. 11 industry competitors and loyalty card competitors. It will create synergy between allthe partnerships and Nice1 because through the previous marketing campaign customers can make easy and positive association. Furthermore, this could increase future brand sales,as Sharon Beder explains that children’s purchase and behavioural patterns towardscompanies will result in customer loyal asthey become adults (Beder, 1998). Therefore, the strong animal spokespersons can potentially create strong nostalgic and positive associations to Nice1 and their partnerships that it will increase overall brand equity of all companies and future purchases as the child transitions through life, increasing sales revenue and profit margins for Nice1. Communication and Promotion (Keychain display)-The key chains will be attached to a keychain holder, which is used to promote Nice1 and all the partnership company’s logos in support of raising funds for Auckland primary school funds. The design of the keychain holder will be temporarily mounted on to the front desk for the 6-month promotional period. The key chains themselves will have springs attached so that the product can be extended to small children that may not be able to reach the front desk. This is created to support the hype of the animal card collectables and increase motivation, awareness in collecting more cards, thus increasing continuous sales revenue over that promotional period. The key chain display is simple, yet effective as it focuses on showcasing the types of animal collectible key chains and the partnerships that are involved with Nice1 to provide these rewards. One key chain representing each partner will be distributed to the Nice1 partners and one keychain display. This will leverage each of the partnership brand and each other’s brand by promoting their own, their partners and Nice’ sense of goodwill, thus creating synergy and positive brand image. By collecting twenty cards, one keychain is collected. This incentives usage as the tangible reward increases involvement and motivation. Engaging children would also encourage parental usage. Customer experience management- In order to ensure our marketing program adds the most value and satisfaction to customers. It is vital that the quality of the animal cards and the animal key chains are consistent to avoid any external costs to the business. These external costs result in customers receiving defected quality prints of cards and broken key chains. Thus, resulting in reduced brand equity as those negative associations to the rewards create negative word of mouth, reducing the total overall customer value of Nice1 and their partners. It takes eleven positive pieces of information to increase one negative information about a product, therefore to avoid extra cost and time to Nice1 and their companies it is vital that all rewards are delivered at the right time, place, customers and the product matches the promotional rewards efforts to avoid any miscommunication and increase transparency throughout Nice1’s offering. To ensure customers get the best experience with Nice1’s rewards two suppliers from Alibaba.com have been chosen. These suppliers both support Trade Assurance, which offers agreed refunds with your suppliers if there are any issues with the products, punctual shipping and ensure tight quality control. The supplier Shanghai Cheeron Industrial Co., Ltd is a verified supplier and has had 10 years of experience in offering business to business merchandise and specialise in promotional products. Reliable companies such as FedEX, UPS and DHL are used to deliver their products. They also follow international safety standards and can provide regular discounts despite large purchasing. The second supplier, Ningbo Lerong Toys Co., Ltd. is also a verified supplier of 22 years of toy manufacturing and has won the award of Gold supplier, passing all onsite checks. They focus on passing the cost savings on to the buyer and offer Nice1 the ability to chat with the supplier to gain personalised price deals for their promotional product. Because Nice1 already has the capabilities in managing suppliers on behalf of their clients, Nice1 can use their exceptional skills in managing these suppliers on behalf of their partners and adding these suppliers to their supplier list for future promotional efforts. The reward is only a part of the customer experience; therefore it is vital that Nice1 and their partners creates a shared company culture that focuses on transparency,honesty and rapport with their customers to serve any problems that may arise throughout the promotional period both online and offline. To do this Nice1 and their partnership companies must make sure that all employees understand what offerings they are providing, must communicate effectively with each department in their own company and partnership companies and follow the shared code of conduct and fulfilling reward promises to the customer and schools. This will
  • 12. 12 ensure that both Nice1 and their partnerships front and back offices are consistent. For example, the service desk must knowledgeable o the card promotions and be honest with customers with any questions they may have regarding how much of their money will be exactly going to schools. The front office must then communicate any reward shortages to the business in order to get the buyer groups to order and accurately forecast future purchases for nice1 cards and key chains. Nice1 and their partners need to make sure that they respond quickly, openly and empathically with their consumers through Facebook to correct any issues that may arise. Hiring additional staff to manage their online efforts may be necessary to keep the animal spokesperson relevant and interesting and to update promotional efforts. Communication/promotion-We used print media into the school newsletters because we thought it was a more effective and efficient way to reach our target audience. The print media will be displayed at the back of the newsletters for the full promotional period which is estimated to be held for 6 months. According to Questeretal. (2014) stimulus factors such assize intensity, colour and movement, position, isolation, format, contrast, compressed messages and information quality tend to attract consumers attention. It notes that “larger stimuli are more likely to be noticed than smaller ones, which is why for our print ad, it covers the full A4 sized newsletter on a landscape view, so it’s not crowded by any other ads and it is the most noticeable on the whole page. Quester et al. (2014) also state that brightly coloured packages and ads a more likely to gain attention, which is why we decided to incorporate bright colours like blue, green and yellow into our print ad to better grab the attention of the target. Also because blue is known to be a colour that portrays trustworthiness, we incorporated blue into a majority of the ad. The position of the Nice1 logo is placed in the centre of the ad to draw more attention to Nice1 because in the text it is stated that “objects placed near the centre of the visual field are more likely to be noticed. The clarity of the ad design was important to convey the message to all potential users, therefore the format is simple with one sentence which draws attention to ‘FREE’ which is in red, and bold. It also increases curiosity, which would encourage follow up. The print ad also displays what the children will receive if they shop at Nice1’s participating outlets and what they will receive if they collect 20 cards from the company which is the keychain. The key chain and the animal cards is the incentive for the children and parents to follow up on the ad. Social Media and the Website-Nice 1s target market are technological savvy, so we advertised online in the form of social media, like Facebook since it is the most widely used/known social media platform and on Nice 1's website (Ebiz MBA, 2015). Advertising online is cost efficient, effective and environmentally friendly from less printing of ads etc. Facebook reaches customers as connections on the Nice1 Facebook page is already established with 227 of their target market. Since Nice1 want to market to diverse populations such as Asians, Facebook can personalize messages based on different languages through language settings. Nice1 has established connections with their target through the website, so customers will have a better opportunity to see the ad online. Advertising messages can be sharedmore, at a fasterrate online and word of mouth influences. Online, Nice1 can respond to problems faster,ensuring better customer experience during the promotional period. Digital media better grabs the attention of the target market “no other product/service can capture kids interest” and “four million children use the internet world-wide and will increase dramatically” (Beder, 1998). Children are heavy influencers on parents in the target market, “studies found children's influence is greater with increased family income” (Mangleburg, 1990), this influences parents to follow up on print ads they see, or hear about from their children, as well as posters in stores influencing the parents to do extensive online research on Nice1 and lead them to the Nice1 website and Facebook page. Nice1 can support the promotions of their partnership companies by sponsoring their partnership company incentives. For example in the appendices we have shown how Nice1’s Facebook page canpromote 2degrees incentives. Also, to support future promotions of Nice1’s partnerships each company will have their own animal ambassador on the company webpage, which is derived from their animal cards. Weekly updates of the animal ambassador conversations will be provided for the customers to view. The children can also write emails to different company animals and responded back to within a week to increase customer
  • 13. 13 engagement and enhance relationships with their brand. Nice1 can also use the information in children’s emails to understand their interests, how children develop at school to aid future marketing strategies. 7. BUDGET, FINACIAL STRATEGYand MONITORING METRICS The base level cost break down, initial costs based on the 5% uptake goal, and information is included in the appendices Figure 1.0 and 1.1. Six days contracted word from a graphic designer would be needed to design the animal cards,promotional materials, and the animal ambassadors for Nice1 and their partners. This is a one-off cost of $9000.00. A social media employee working 10 hours a week for the initial 6 month timeframe would cost $900.00 ($15/hour) who would have a $900.00 budget ($150.00 a month) for ongoing social media marketing (e.g. competitions, giveaways etc.) which would increase word-of- mouth advertising. Each of the 131 schools would be provided with four A1, 80gsm colour posters for a total off $3406.00 ($6.50/each, at Warehouse Stationery). Featuring in school newsletters should be complimentary. Custom point of sale display stands feature in store and school offices would cost $4.00 individually. For (131) schools this would cost $524.00 total, and $120.00 would be the initial budget for current Nice1 partners. Any additional partners/stores can be added in the future. Combining to a total of $644.00. The creation of a free-to-customer, multi-lingual application would require $10,000.00. This figure is based on an estimated, average $100/per hour of programmer employment (the initial graphic designer cost would cover some of the visuals to be integrated into the app). Therefore the total budget necessary to cover a six month growth period with the goal to achieve 5% uptake would be; $24,850.00,or 3.2% of the estimated, average revenue. The main benefit of the budget is its fluidity. If usage surpassed estimates, then so too would the number of swipes and corresponding revenue for Nice1. Thus marketing costswill always be significantly below revenue.This budget is based solely off Nice1’s cost and revenue structure, though we anticipate that some marketing costs could be shared with Nice1’s partners. Financial Metrics- For current health, total revenue, cost, and hence profitability of each department within Nice1 further breaks down where true profit comes from and can then inform future business decisions and investment. Here, regular accounting metrics used to measure the health of a business are most effective, such as capital returns, which measures how much revenue is generated from the use of physical capital. Other Metrics (Generic Marketing Strategy-Relevant)-To quantify the effectiveness, directly measuring uptake and usage of the cardsand the collection rate of the cards andkeychains would quantify the marketing effortsand allow for comparative judgements to be made in order to bestallocate resources. These are two solid metrics that relate directly to not only Nice1’s base goal of increasing card uptake and usage,but also the added step of showing customers are motivated by the marketing efforts and take the next step of claiming the cards and other rewards they are entitled to as per the marketing strategy. The way the marketing strategy is designed, one keychain will be awarder per $400 spent in conjunction with a Nice1 card. From this, each keychain awarded will directly correlate to a dollar amount earned by Nice1. The information Nice1 currently collects is important to future efforts and tailoring activities to best suit their target market/objective. 8. SUMMARY and CONCLUSION Quantitative and qualitative data and research have culminated into a sharply focused marketing plan for the Nice1 schools program. The main short term goal of 5% uptake in 6 months has been successfully projected with a campaign that requires minimal cost input with high return on investment percentages. The holistic strategy would improve initial brand recall and recognition which would be continuously supported through ongoing social media interaction. Overall this strategy focuses equally on optimization, consistency, success and growth.
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