Marketing Communications Plan For Diageo Marketing Essay

Marketing Communications Plan For Diageo Marketing Essay For the company to achieve these objectives, there needs to a situation analysis which will give an overview on the companys currents position. This will be done through analysing the PEST factors that will affect the proposed marketing communications strategy, evaluating White Horse Whiskys performance in the market currently and also identifying the competitors actions. The report will further give an overview of the companys objectives by highlighting the desired position for White Horse whisky through giving a detailed business mission and communication objectives. The communications plan will also give an overview of the how the company will get to its set objectives through the use of the segmentation, targeting and positioning of White Horse Whisky. At the end of the report, the implementation of the plan through the communication tools and messages, the way through which it will be implemented and tracking the progress of the strategy will be discussed to ensure a suitable plan was put into practice. 2.0 SITUATION ANALYSIS (Where are we now?) 2.1 Current Company Performance Diageo is the brand owner of two whisky labels (Bells and White Horse) in the whisky market. White Horse Whisky has a market share of 2.3% in the market as of 2005. The brand has had a downward trend over the past years and wishes to relaunch it in July 2010 to a younger population. The company has a weak distribution chain as Whit Horse Whisky is only available at off-licences and major supermarkets. 2.2 Distinctive Competitive (Marketing) Advantages White Horse Whisky is an established brand which was created in 1890. It has been know as a quality whisky brand especially with the current owners who manufacture global drink labels. 2.3 Marketing Mix (4Ps) Product The product is a blended Scotch whisky which is currently at the decline stage. Price The current price of White Horse whisky is  £14.99 per litre for the squat bottle. Place The brand is available only at super markets and off licences shops. Promotion Diageo has ceased advertising support for White Horse whisky. This has made the brand have little competitive advantage in the market because consumers especially the new drinkers will not be aware of the brand and the old drinkers who need constant reminders and reinforcement might think the brand has died if they are not constantly given information. This could also have been the cause of the gradual decline in the market share of White horse whisky with consumers choosing competitor brands over it. 2.4 Current Customer Segments The brand has 2million consumers over the age of 50years. This accounts for over 50% of the brand consumption. This age group is the ageing population and if the trend continues with them, the brand will eventually die off. 2.5 Uncontrollable Event(s) That Can Impact on the Marketing of White Horse Whisky (Macro Environment) PEEST Analysis Political/legal Whisky brands may be advertised on TV now. Economic The Scotch whisky market has been in decline for over 15years. Ecological/physical environment Increased environmental awareness and the need to treat and respect the world. Socio-cultural Drinking patters have moved away from traditional dark spirits in favour of white spirits, wines and lagers. The number of people in their twenties and thirties drinking whisky has declined over the years. Whisky has always been acknowledged as an acquired taste that was unlikely to appeal to novice drinkers. Whisky is regarded as a spirit that is difficult to mix. Current image of whisky is seen as outdated and largely irrelevant. Binge drinking amongst young people which is seen currently as a serious social problem in UK. Technological Growing rate of internet use among the population in UK. 2.6 Micro Environment MARKET In 2005, the overall whisky market had 3.9m consumers. Size Growth rate White Horse whisky had a decline of 0.6% from 2004 -2005. Market trends The advent of drinkers moving from traditional dark spirits to chilled, long, lighter drinks. Table 1: The market in the microenvironment 2.7 SWOT Analysis for White Horse Whisky Strengths Strong brand name and rich heritage. Diageo has a budget of  £3 strictly for marketing of the brand which will promote awareness and change the way it is perceived by the target audience. Weaknesses Lack of advertising of the brand over the years. Small distribution networks. Opportunities Young people who are being targeted enjoy going out and having fun during their spare time. Recent relaxation of the voluntary code for whisky advertisements on TV. Threats Current whisky image is seen as outdated and largely irrelevant which gives it an old-fashioned image. The Scotch whisky market has been in decline for over 15years Drinking patterns have moved away from traditional spirits like whisky to wine and lagers. Whisky has been known to have an acquired taste that was unlikely to appeal to novice drinkers. Binge drinking by young people. Table 2 : SWOT Analysis for White Horse Whisky 3.0 SET OBJECTIVES (Where Do We Want To Go?) 3.1 Marketing Objectives To increase the brands market share from 2.3% to 6% to consumers under 50years within 3years. 3.2 Marketing Communication Objectives To reposition White Horse whisky from being an old fashioned drink for old age groups to a contemporary and authentic drink for 20-28year old male and females within 3years. 4.0 STRATEGY(How Do We Get There?) 4.1 Segmentation The youth and young people who are upwardly mobile in the UK. 4.2 Targeting The target market will be women and men aged 20-28years who are still experimenting with spirits with no brand loyalty yet. 4.3 Positioning White Horse whisky will be positioned to the target market as a contemporary, fun and quality drink. This position resonates with the values of our target market and our brand values. 4.4 ATR Model for Buying Decision The purchase of whisky is a low involvement decision. This is because it has a low expenditure and cant be viewed as a personal risk. ATR model which is Awareness, Trial, and Repurchase is suitable for this product. The consumer becomes aware of the brand- White Horse whisky through the proposed marketing communication strategy and will make a trial purchase to assess the drink. If taking of the whisky produces favourable results, the consumer will become interested in White Horse whisky and will therefore repeat the buying of the whisky at a later time. This will gradually increase the brand share of the product. The plan will give a devise on how to create the initial awareness of the brand to the selected target market. This can be used to determine the product adoption process. 4.5 Pull Strategy The pull strategy will be adopted to achieve the communication objectives. This strategy involves focusing our communication directly at our target market; this in turn would stimulate a desire, demand and eventual purchase of White Horse Whisky. 5.0 TACTICAL PLAN (How Do We Implement the Strategy?) 5.1 Communication Tools to be used and how they will be used Communication tools Medium Reason for choice Media Vehicles Advertising Type of media selected channels White Horse Target Group Use age Television The target audience have a heavy exposure to TV Specific programmes on ITV: It is an effective tool to reach our target audience on a large scale 1. Prison break This can create a strong brand image for White Horse whisky 2. Gossip Girl TV has a high visual and strong impact that can easily attract the audience because it influences multiple senses. 3. Vampire Dairies The target audience relax by watching these entertainment programmes 4. 24 5. Sports shows Magazine There is high selective readership for magazines. It is easy to communicate with our chosen target audience knowing their choice. Cosmo Girl British Vogue Mens Vogue The magazine can also be passed on to friends and this can be read not necessarily by only the purchaser It will show good quality and pictures and have high information content Billboards and posters This will give a strong impact with a simple message. This helps to connect with the audience less is more attitude.   To be placed strategically near: City centres, malls   Billboards and posters The billboards have a high frequency exposure and will be easily grab attention.   The posters will in addition be placed in bars and clubs The placed location will reach the target market. This will make the target audience aware of the brand as they will be exposed to the advert continuously and frequently.   Advertising Internet This medium is very attractive to them and they spend lots of hours a day on the internet. Low production cost which will reach a potential audience at any time of the day. Web banners on social networking sites (Face book and MySpace) Cinemas The target audience enjoy having night outs especially at the cinema Odeon and Cineworld cinemas across the country when showing:   Action and Science Fiction films in 3D, Romantic Comedy and Thrillers. Spotify This music streaming service has become popular among the target audience. This will be placed for listeners of: rock, RB, hip hop, pop and rap. It has be ability to reach the audience by postcode because there is a registration for the service Its a perfect medium to reach the target audience who love to listen to music. Sales Promotion Free trials Consumers appreciate offers and love to have value for their money. Selected clubs and pubs across the country.   Sales Promotion   Free trials It is quick and easy to implement and will have an immediate impact on the sale of the brand It will encourage retrial Free gifts This will encourage purchase Supermarket chains, off licences There will be a small white horse attached to each white horse whisky bottle There will be free t-shirts distributed to consumers at clubs and bars. Sponsorship Fashion show This will change the perception of it being an old generation drink These sponsorship of youth events will build awareness for the brand The target audience use this as a means of relaxing and will be great fun for them which can easily to reach them. The fashion show and valentine part will hold at selected regions Valentine party 5.2 Message(s) We Wish To Communicate White Horse is approachable, light- hearted and sociable. 5.3 Consistency across Different Tools and Messages The messages are consistent and they all carry the message that the brand is of quality and is a drink for the younger generation. 5.4 Necessary Resources/Budgets There is a  £3 budget for the marketing communication strategy for one year. The budget will be sufficient to implement the strategy in various vehicles for the duration chosen. 6.0 ACTION PLAN (Who, What, When?) Please refer to Appendix 1 and 2 for detailed communication spending. 6.1 Responsible party for implementation This communications plan will be executed by a top advertising firm in the UK. The marketing department will have the responsibility of communication with the advertising agency to ensure all communication is placed as at when due and also make appearances at the sponsorship events. The department will also be responsible for the appropriate quantity distribution of the soft toys (The White Horse) and t-shirts to the regions. The accounting department ensures vouchers raised for the advertising agency are paid on time. Diageos IT department will also make sure the website is always up and running to appeal to consumers who will be visiting the site. 6.2 Time frame of plan implementation The plan will be implemented between July 2010- June 2011. 6.3 Resource Allocation for the Action The communication plan has been done and will cost  £2,899,335. This amount is exclusive of the allocation of  £ 100,000 which will be paid to the agency for creatives production and services. 7.0 CONTROL ( Keeping Track Of Progress) The brand will be monitored through sales analysis. The marketing department will obtain the sales figures weekly that will be used to compare the actual sales of White Horse whisky to the target sale. Information will also be gathered from the distributors of the brand on customers perception of the drink. The sales report should be gotten by region and if any extraordinary low sale is received from any region, their communication should be restructured. Within the first year, the brand share should increase by 0.7% to 3% and the profile of young drinkers should increase to 37%. This will make the overall brand share increase of 6% and 60% of young drinkers by 2013 will be achieved. Depending on the first year figures, the marketing manager should be able to forecast and evaluate the communication strategy being used and make corrective actions where necessary. If there is an exceptionally low increase in the first year period which will essentially where a lot of money will be spent on communication, the communication plans should be revisited to avoid massive failures in 2013. Each person/ department in Diageo should be clear on their responsibilities to enable the company meet the expected target. 8.0 THE 3Ms These are the key resources 8.1 Men This is not mentioned in case study. 8.2 Money   There is a budget of  £3m for the repositioning of White Horse whisky for one year. 8.3 Minutes   The deadline to achieve the 3.7% brand share increase is 3years. The plan will be solely for the 1st year while recommendations for the next 2years will be provided. 9.0 RECOMMENDATIONS FOR THE NEXT 2YEARS From July 2011- July 2013, the following should be done to reinforce the brand in the mind of the consumers: The television adverts should be aired in alternative months. The use of posters at bars and clubs should be continued. The online adverts on Facebook, MySpace and Spotify should continue every month. Other sales promotions should be introduced to give room for another exciting support to the consumers from the brand. The brand should also explore opportunities in celebrity endorsements which the target audience fancy. Quarterly shows should be sponsored at selected clubs around the country. Possible production of shot glasses with the White Horse logo can be distributed to bars and clubs. Appendix 2 (Cost Analysis) TV adverts: Coverage within the UK REGION COST FOR 30 ADVERTS ON ITV LATE PEAK DRAMAS Central  £10,313 London  £16,730 Yorkshire  £3,827 Scotland  £3,169 Total Cost  £34,039 Number of shows to place adverts: 4 Frequency: 4 times weekly, for 20 weeks. Monthly cost:  £344,624 Cinema adverts:  £23,000 per month Magazines: Number of magazines: 4 Frequency: monthly Monthly cost:  £73,200 Outdoor adverts: Billboards and Posters:  £15,000 monthly Online adverts  £37,500 monthly Sponsorships A total of  £150,000 was budgeted to sponsor specified events across the four regions. Sales Promotion 1000 t-shirts and soft horses, free trials over the year:  £ 96,500. 10.0 Creatives to be sent to agency Appendix 3 (Advert for Television and Cinema) This will be a 30 seconds advert which will make our target audience associate White Horse whisky as a fun drink. Scene 1 Nice music playing in the background The advert starts at a bar scene with a couple of people ordering drinks at the bar. In a distance, people can be seen dancing. The camera zooms in on a young man and lady (Lady 1). They exchange pleasantries and the young man leaves shortly as he gets his drink Scene 2 The young man is seen with two others men chatting and looking around. He spots a young lady (Lady 2) in a corner sitting by herself and he walks up to her to ask for a dance. Lady 2 agrees and they move to the dance floor. Scene 3 The young man and Lady 2 are seen dancing and having a good time. Lady 1 walks up to them with two drinks in her hand. She hands a drink over to Lady 2 and turns to face the young man. She says to the young man: I see youve met my mother. The young man has a confused face and says: your mother? Scene 4 The three of are sitted at a table and are seen chatting, laughing and having White Horse whisky. The advert closes and a screen showing the White Horse whisky bottle and a glass with the contents. The tag line: White Horse.Surprising fun is shown below this screen This advert is to make the target audience know that even though the label is old, it still has the right mix and quality to appeal to them. . Appendix 4(Advert for Magazines, Billboards and posters) A picture of a group of four young adults (two men and two women) wearing casual and fashionable outfits. They are smiling at themselves and each person is seen holding a glass that contains White Horse whisky. The caption underneath the picture states: White HorseSurprising fun. Appendix 5(Design for t-shirt) The shirt is a black cotton Polo shirt. At the centre of the shirt in front, there is a White Horse. The back of the shirt carries the caption:Surprising fun.