Structure of IMC Plan
Integrated marketing communications are strategies through which a business organisation integrates and applies various promotional methods in a coordinated way to attain its marketing objectives (Belch, 2011). An IMC plan outlines the entire strategy through which these promotional messages are coordinated (Blakeman, 2014). An IMC plan is required to properly channelize all the promotional activities to arrive at a desired outcome (Belch, 2011). An IMC plan is important for execution of marketing strategy because it helps in giving direction to the entire marketing strategy of an organisation.
Structure of IMC plan includes conducting a situation analysis, assessing the product for which the IMC plan is to be made. Outlining the segmentation, targeting and positioning strategy, deciding on the media and outlining the way in which this media will be used (Caywood, 2011). The structure also includes budget allocation for the media selected for the purpose of marketing and promotion.
Inika Organic is an Australian company founded in Sydney in 2006 (Inika Organic, 2018). The company functions in the beauty, makeup and cosmetics products industry and prides itself for its organic and natural ingredients (Inika Organic, 2018). The firm offers beauty and makeup products like lipsticks, eyeliners, mascaras and other makeup products with organic ingredients (Inika Organic, 2018). The makeup and beauty industry is a fast growing industry and people are becoming more and more interested in safer organic products (Baumann, 2014). Therefore, the company has a huge potential of growth in this market. However, it needs proper promotional strategies to spread brand recognition and recall.
A firm’s business is impacted by the external environment in which it exists (Brocke & Rosemann, 2014). This includes the political and economic systems, trends and laws (Alkhafaji, 2013). In order to succeed in the market place, a firm needs to have an idea about the impact of these external factors. PESTLE analysis is a tool that assesses external factors like political, economic, social, technological and environmental factors facing a firm (Wheelen, 2011). Following is a PESTLE analysis for Inika.
Political- Political system is Australia is liberal in its approach towers the makeup and beauty industry (NICNAS, 2018). However, the firms need to provide safe makeup products that do not harm the customers in any way. Inika uses organic ingredients in its preparations; hence, there is an opportunity for the company to grow in the market
Economic- Beauty and makeup industry has always been a popular industry among women customers (Sahota, 2014). Additionally, with current growth in income levels potential of this industry is also growing (Williams, 2012).Moreover, there is more demand for organic products because these are considered to be safe (Sahota, 2014). Therefore, this gives another opportunity to Inika to grow in the market
Background
Social- There is a huge trend shift towards organic and natural beauty products in Australia because of their safer ingredients (Sahota, 2014). These cosmetics are considered to be less harmless to health. Therefore, this trend can also help Inika in growing further.
Technological- Make up and beauty industry is a technology incentive industry (Williams, 2012). Companies in this industry spend a lot of funds on researching new makeup and beauty products. The companies undertake large amount of innovation so that customers can get the best experience (Williams, 2012). Additionally, with organic ingredients and subsequent research required in the field, the cost of production of Inika can rise (Sahota, 2014). This can cause a threat to growth and survival of the company
Environmental- by products and industrial waste from production of beauty products can cause a threat to the environment (Williams, 2012). Inika must adhere to environmental safety and waste disposal norms and must use safe disposal methods (Inika Organic, 2018). This may cause additional cost leading to a reduction in revenues for the company.
Legal- under Australian legislations no license is required for manufacture cosmetics (NICNAS, 2018). Therefore, Inika can expand and open more factories without seeking any licence. However, an organic ingredients certificate is required for companies selling organism products (NICNAS, 2018). National Industrial Chemicals Notification and Assessment Scheme (NICNAS) is the main body regulating the cosmetics industry. This organisation oversees the use of chemicals by the manufacturing company. (NICNAS, 2018). The firm also has to abide by legal regulations like Industrial Chemicals (Notification and Assessment) Act 1989 and the Trade Practices (Consumer Product Information Standards) (Cosmetics) Regulations 1991. These acts are meant for consumer protection against harmful products.
In addition to the external environment a firm needs to understand its internal environment. The internal environment includes the factors which directly affect the firm like the competitors, suppliers and buyers (Freeman, 2010). Porter’s five forces model is a tool to analyse the internal factor’s influence on the firm (Caywood, 2011). Following is a Porter five force model for Inika.
Porter’s five forces model
Revelry among existing firms- Cosmetics and beauty products industry is ridden with very tough competition (Williams, 2012). There are many big companies present in the market like L’Oréal and Olay which have huge market presence (Williams, 2012). Additionally, there are some smaller fast growing firms like Jurlique, ModelCo and La Mav that are catching the attention of the customer (Inika Organic, 2018). Therefore, threat of competition is high in this industry and Inika needs to concentrate on quality and marketing to survive.
Situation Analysis
Threat of new entrants- As there are no licence requirements in cosmetics industry, entry of new firms is relatively easy (NICNAS, 2018). However, for producing organic products more paperwork is required (NICNAS, 2018). Additionally, lot of research cost has to be incurred to manufacture cosmetics (Inika Organic, 2018). Therefore, it can be said that threat of new entry is moderate for Inika.
Threat of substitutes- There are not many substitutes available for cosmetic products other than homemade natural care products or Ayurveda products (Williams, 2012). These products are either difficult to make or difficult to obtain. Therefore, threat of substitutes in the cosmetics industry is low (Williams, 2012). This also gives the company an opportunity to grow.
Bargaining powers of suppliers- Inika heavily depends on its suppliers for the natural and organic ingredients (Inika Organic, 2018). These ingredients are not very readily available in the supplier market. Additionally, a cosmetics firm cannot change its suppliers quickly because the products need to be tested and have to be suitable to customer health. Therefore, bargaining power of the supplier is high in this industry.
Bargaining power of the customer- there are many brands to choose from; therefore, customer has a huge amount of choice in the market (Williams, 2012). However, as these products impact the skin, customers generally tend to stick to a particular brand if they become used to it (Inika Organic, 2018). Therefore, bargaining power of customers is moderate. Inika can generate good customer loyalty if it promotes its high quality products well.
Internal analysis is an assessment of the internal capability of a firm to conduct a business (Ungson & Wong, 2014). Porter’s value chain analysis provides an idea of the internal capabilities (Ungson & Wong, 2014). Following is a porter’s value chain analysis for Inika Organic.
Porter’s value chain analysis
Value chain analysis (VCA) is an analysis to understand the activities of a firm which it undertakes to create value for the customer (Harrison, 2013). Greater value can generate greater profits. Therefore, firms try to maximise value generation (Freeman, 2010). . These activities can be primary or secondary as illustrated by the following chart of Porter’s value chain analysis
Porter’s Value Chain
As a cosmetics brand, Inika has its own process flow and operations (Inika Organic, 2018). Therefore, it also has primary and secondary activities which create value for the customers (Cruz-Cunha, 2010).
Primary activities- These include those activities which are essential to production (Brocke & Rosemann, 2014). Such as-
Inbound logistics- Inika has tie ups with organic farmers and other companies which produce organic ingredients (Inika Organic, 2018). These ingredients are supplied to its factory premises at fixed intervals (Inika Organic, 2018). As ingredients are of high quality they create value for the customers.
Macro-environmental analysis
Operations- The firm uses high quality equipment to process the ingredients and create high quality beauty products which benefit the customer’s skin (Inika Organic, 2018), The company tries to use the best possibly production units and staff to generate high quality organic ingredients which creates value for the customer (Inika Organic, 2018).
Outbound logistics- Products are delivered to selected retail outlasts and beauty saloons after they are produced (Inika Organic, 2018). The firm tries to replenish stocks quickly so that customers do not have to wait (Inika Organic, 2018). Good accessibility of product generates value for the customer.
Marketing and Sales- The firm uses various advertisements and other promotional methods to market its products (Inika Organic, 2018). However, the marketing efforts are not very well planned or coordinated. Therefore, to generate better value the firm needs to improve its promotional functions.
Service: as a manufacture of an FMCG good the company has no direct after sales service (Inika Organic, 2018). However, it is open to customer feedback and reviews. Based on customer feedback the company makes modifications in its products which creates value for the customer (Inika Organic, 2018).
Support of secondary activities- These are support activities which help the firm in fulfilling the primary activities
Infrastructure- The firm has its own factory premises in New South Wales where production is carried out (Inika Organic, 2018). It also has warehouses to stock the products
Human resource- The firm has efficient operations staff, marketing and sales staff and office staff to handle day to day activities (Inika Organic, 2018).
Technology- The firm continuously tries to innovate on technology to create best suitable products for customers (Inika Organic, 2018)
Procurement- Inika has fixed suppliers who provide the company with organic ingredients (Inika Organic, 2018). Long term relationships and good pricing provides the company with high quality ingredients which generates value.
Therefore, various aspects of the value chain are used by the firm to generate better product for the customer.
SWOT analysis is a tool to assess the internal strengths and weaknesses of a firm and the external opportunities and threats (Harrison, 2013). Following is a SWOT analysis for Inika Organic.
|
Strengths · Good Quality products · Organic ingredients which are considered safe by customers · Good research and development · Efficient and qualified human resources · Cost effective production methods · Good relations with suppliers |
Weaknesses · High cost of procurement of organic ingredients as compared to normal cosmetics ingredients · High research cost · Few suppliers who can leave causing difficulty in procurement |
|
Opportunities · High growth potential in cosmetics and beauty industry · Customers very interested in organic products |
Threats · High competition from very large and known brands like L’Oréal · High customer switching rate as they may go for another brand · Due to less promotions lower awareness of the brand |
Source: Made by author Adapted from (Inika Organic, 2018)
Critical success factors are the factors which are essential for a firm to attain their vision and objectives (Ungson & Wong, 2014). Inika wants to become one of the most well-known brands in organic cosmetics in Australia (Inika Organic, 2018). Following are the critical success factors for Inika to attain this goal.
- Customers are very conscious about the ingredients that a company uses in its cosmetics as they directly affect the skin and hair(Wheelen, 2011). Therefore, good quality is a major success factor
- There are many brands in this industry; therefore, it is important to target the customer correctly(Ungson & Wong, 2014). Letting the customer know about the quality product through proper promotions is another critical success factor.
- Customers require makeup for different occasions(Inika Organic, 2018). Therefore, offering a wide range of products is also an important success factor for Inika.
- Customers need innovation in cosmetics because they always expect better products(Williams, 2012). Therefore, investing in research and development is also an important success factor for the firm.
Micro-Environmental analysis
If the company makes strategies to achieve these factors it can succeed in the Australian market.
There is a huge competition in the Australian cosmetics market (Williams, 2012). International and global firm like L’Oréal, Olay and Chambor govern the Australian cosmetic market (Williams, 2012). As these brands have a big brand name and international presence they generate trust in the customer’s mind. Customers consider their products as high quality. Additionally, there are some Australian brands too which provide a range of cosmetic products with nature ingredients like ModelCo and Jurlique (Inika Organic, 2018). These companies also have their loyal customers and have been established earlier than Inika (Inika Organic, 2018). However, correct and coordinated integrated marketing communications campaign can help Inika to contend with all these brands,
A mood board is a collage of images and texts which puts forth the brand image of the company (McCabe, 2010). Inika wants to create a brand image of an innovative, health oriented company which provides good cosmetic products to the customers that enhances their beauty without compromising on the skin health (Inika Organic, 2018). Organic ingredients are a major part of this image. Following is the mood board for Inika
Mood Board for Inika
Brand and the Customer- before creating a communication strategy Inika needs to understand its customer. For this purpose a target market analysis is essential
Target market is the market to which the company wants to sell its products (Baker, 2014). To target a potential market, companies use segmentation strategies. Segmentation means dividing the target market into groups based on perceived similarities (Gillespsi, 2010). Trager market of Inika consists of women customers from the age group of 25- 60 years Makeup and beauty products have been popular with women since pre historic times. Looking good is very important to a lady (Williams, 2012). Therefore, Inika has a product range which has high growth potential. The company can segment this market in the following ways-
Demographic segmentation- under this segmentation customers are grouped based on age, income or lifecycle stage (Armstrong, 2012). Inika can target its customers based on age or income. It can sell age specific beauty products such as anti-aging creams for middle aged women (Armstrong, 2012). Furthermore, it can target brighter shades of makeup for young girls. The firm can also have categories of makeup products based on income. Lower prices products for middle and higher priced products for higher income groups.
Psychographic or lifestyle segmentation- under this segmentation, consumers are classified based on the type of life they lead (Kotler, et al., 2015). Inika can provide different type of makeup such as long lasting lipsticks and eyeliners for women who do long hours and have a professional life style (Ferrell & Hartine, 2012). The firm can also address the issue of controlling acne and freckles for teenagers or those women who stay out in the sun more often.
Porter’s five forces model
Geographic segmentation- Under this segmentation customers are grouped based on their geographic location (Kotler, et al., 2015). Inika can divide customers based on whether they live in urban or semi urban regions (Thompson, 2010). In semi urban regions basic makeup products can be sold at relatively lower price. In the urban region more high profile and higher priced makeup products can be sold.
Positioning- positioning is the image of the brand which the company wants to create in the minds of the customer (Armstrong, 2012). Inika can use product based positioning strategy where product features are highlighted so that the customers purchases the product (Ferrell & Hartine, 2012). .Inika can position the product as a high quality product with safe ingredients which will enrich the customer’s looks without harming their skin.
Brand persona consists of the attitudes, values and personality traits that a brand exhibits (Brown, 2016). The brand persona helps in creating a realistic and reliable image of the brand (Brown, 2016). Brand persona helps in creating identification of the brand for the customer. It helps in establishing recall in the customers mind because the customer can associate the brand with certain traits or objects (Aaker, 2012). Brand persona can be built by associating the product with certain personality traits, behaviours and values (Brown, 2016). Following are the three brand personas that can be created for Inika.
1 Name- Inika, meaning the earth which promises to provide pure beauty like the earth
Slogan- Inika- Promise of ethereal beauty
Personality traits and characterises- sincerity, honesty, and natural
As Inika has products which have natural ingredients it is easy for it to create an image of honesty. The firm should emphasise upon the fact that it is trying to deliver its products in a sincere and an honest way so that natural beauty of the customers can be enhanced.
2 Names- Inika
Sloan- Inika- provides freedom to be pretty and safe
Personality traits: knowledge and enlightenment in terms of research. Organic ingredients to provide safety and purity
Inika can create the image of a knowledgeable and a research oriented brand by advertising about its innovative endeavours. This personality trait of the brand can be created by informing the customer about the amount of research which is carried out by Inika to deliver the best products to the customer.
3 Names- Inika
Slogan- Inika- Transforming you naturally
Personality traits- stylish, redefining beauty, creating excitement and curiosity
This personality trait can be created for brand Inika by undertaking a marketing campaign which generates curiosity for the product and its ingredients. The campaign should also focus on effect of Inika products in enhancing the natural beauty of a woman.
Internal analysis
Creation of new product- Inika has concentrated more on makeup products (Inika Organic, 2018). However, to grow in the market, product diversification and extension is required (Ferrell & Hartine, 2012). Therefore, it can extend its product line to include other products in the cosmetics industry.
The firm can extend its product line and include skin care products like an anti-aging cream. The company has the essential knowhow and access to organic ingredients which can help create a new organic anti-aging cream (Inika Organic, 2018). Women these days have become more and more beauty conscious and there is a huge potential in the market for anti-ageing beauty solutions (Sahota, 2014). This cream can increase the company’s customer base as well as enhance the demand of existing customers (Aaker, 2012). Organic components have become an attraction among cosmetic users these days (Halberg, 2013). Therefore, this type of product has a huge potential for market growth.
The budget for the new product development including its promotions would be $50, 00,000. This is based on affordability of the company considering its objective to become a well-known brand in the Australian markets. As this product has high growth potential, investment in its marketing activities can lead to higher revenues.
The company should use green colour in its packaging which is a symbol of nature and can create an image of natural products (Baker, 2014). Also it should use white which is a colour of purity (Baker, 2014). Packaging should emphasise the fact that the cream is made of organic ingredients. Following is a hypothetical image of the packaging
Packaging of the new anti-aging cream of Inika
The packaging will contain a full ingredient list. It should also include certificate of organic ingredients as obtained from authorities, price and net weight.
Following are the communication objectives for the new product development of Inika that is the new anti-ageing cream–
1 Generating customer attention and building awareness for the product – First objective is to create awareness for the new product through a coordinated media campaign (Belch, 2011). This campaign will also aim to seek customer attention. The time frame for this objective is Jan to June 2019
2 Increase customer interest to be completed by June 2019- The media campaign should be able to arouse customer interest. The campaign should impact the customers in such a way that they are motivated to either purchase or seek more information about the product (Baker, 2014)
3 Increased purchases- The media campaign should result in an increase in customer buyer behaviour and at least 5% of the target customer should buy the product till June 2019 (Baker, 2014)
Therefore, the market communications strategy should generate awareness, create interact and then should induce a desire to buy the product in the minds of the customers.
IMC strategy aims at integrating various promotional tools to create a consolidated impact on the customer. The major aim of this strategy is to generate awareness, curiosity and a desire to purchase the product in the customer’s mins. (Blakeman, 2014)
The IMC strategy of the new anti -ageing cream of Inika will include advertising, print media, celebrity endorsements and publicity.
Following are the objectives of these individual elements
Television Advertising- The commercial advertising is aimed at Enhancing brand awareness and recall among 80% of the target market by Feb 2019
Print media- Print media advertising is aimed at create an understanding of Brand Values which portray enhanced beauty with health safety. Also generate interest in the brand among 60% of the target audience by 31 Mar 2019
Publicity: The aim of publicity as a promotional campaign for Inika anti-ageing cream Gain inclusion of the brand into the mind-set of 35% of the target audience by April 2019.
Celebrity endorsement- the aim of celebrity endorsement in this IMC plan is that it should be able to create positive attitude towards the brand among 50% of the target audience by 30 June 2019.
These objectives can be met if the IMC tools are used in coordination with each other.
Positioning statement
Positioning is the image of the brand that a firm wants to create in the minds of the customer (Armstrong, 2012). Inika’s new organic anti-ageing cream can be positioned as a product which gives style with safety. The product can be positioned as a high quality cream which assures reduction of age related symptoms of the skin and because of its organic components provides nourishment to the skin (Armstrong, 2012). As a result customers will get a beautiful and healthy glowing skin.
Message statement-
The message which the brand should get across to the customer is that it has created an anti-ageing cream that provides glowing skin with nourishment (Blakeman, 2014).
Big idea-
The big idea of this product is to provide an age reversal skin care products with natural ingredients which does not harm the skin of the customers (Baker, 2014). Major strategy to boost sales of this product is to create awareness through integrated marketing techniques like advertising and celebrity endorsements.
Creative appeals-
Creative appeals are used to speak to the customer in such a way that the message resonates and connects with the target audience (Blakeman, 2014). Creative appeals stimulate an interest and desire in the customer’s mind to buy the products (Blakeman, 2014). Major appeals used by marketers to motivate customers are fear, humour, rational, sensuality, self-awareness, safety etc. (Ferrell & Hartine, 2012).
Inika can use rationality and safety appeal in their advertisements (Ungson & Wong, 2014). Through rationality appeal the company can motivate the customers to address their age related skin problems (Belch, 2011). Also through safety or fear appeal the company can motivate the customers to go for organic ingredients as they are safer.
A successful Ad campaign creates a curiosity and desire in the mind of the customer to purchase the product (Blakeman, 2014). For this purpose the Ad content should look unique, catchy and entertaining (Armstrong, 2012). Advertisers use various techniques to generate consumer interest in the product. Inika can use the following techniques-
Association- Through this technique the product can be associated to a famous person or a desirable state of being (Blakeman, 2014). In other words the customer is shown an image which identifies the product with something that she aspires of becoming (Blakeman, 2014). Inika can use association to highlight the features of the product which help a lady to look younger and prettier. For this purpose the company can showcase the effect of the product on a female model.
Claims- under this technique the advertisements which is shown to the customer makes a claim to generate a desired result (Blakeman, 2014). As the product is high quality and uses natural ingredients, the company can use these features to make claims about the results of the product. This will appeal to people who are looking for anti-ageing treatments and have a rational outlook.
Media strategy
Media strategies entail the type of media to be used for the promotional campaign and the budget allocation of the same (McCabe, 2010).
Following is the media strategy for promotion of new anti-ageing cream by Inika.
Media Schedule
Following excel sheet shows the media campaign schedule for promoting the new anti-ageing cream from Inika. The media schedule covers the period of Jan to June 2019
Evaluation measurement and control of media campaign
Following spreadsheet shows the methods used to measure and control the media initiative to promote the new anti-aging cream of Inika.
|
Media |
Budget Allocated |
Reason |
|
TV advertisements |
$20,00,00 |
TV advertising is extremely expensive but a very potent medium; therefore, largest amount of allocation is made for it. However considering the budget it is only for two months. |
|
Print Media |
$4,50,000 |
Full page coloured advertisement in a popular monthly women’s magazine would require this much allocation |
|
Celebrity endorsements |
$600,000 |
It is an expensive task to hire a known celebrity however this will impact the customer’s attitude therefore this amount has been allocated |
|
Publicity |
$2,00,000 |
Sending of emails and newsletters through online medium is not very expensive. Therefore it can be conducted for more number of months |
Source: Made by Author
Following are the recommendation to the board of Inika regarding the launch of the new product
- This new product that is the anti-ageing cream will help in product extension of the product line of the company. This will add strength to the brand equity of the company. Hence, the company should consider its launch.
- This product launch will help the company in gaining more market share which will help to attain the company objective of becoming one of the most popular brands of the country. Hence, the board should approve the product launch
- The board should consider more such innovative product launches in the skin care arena as this is a potentially growing field and the company has the resources to generate a name in this field.
- The company should actively promote its organic products as this is the latest in fashion and trend. People want to consume and use healthier products
- The board should approve the budget of the marketing initiative of the new product launch because this will help in building recall, awareness and customer attitude towards the brand.
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