IMCP-Merries Diaper PDF

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MKTG 1266: Marketing Communications

Group Assignment: Integrated Marketing Communications Plan for Merries

Class: LF 01 Lecturer: Ong Chin Choo Group ID 5

Members: Wong Siu Hui Giselle S3447646 Cherie Lim Yan Rong S3531357 Kenneth Tan Jia Hui S3531647 Teo Yiin Shin S3505522 Peh Zhi Qi S3505513 Tan Wei Ling S3505515

Contents Executive Summary Introduction 1. Current situation analysis 1.1 Background Research 1.2 Internal Research & Analysis 1.3 External Research & Analysis 1.3.1 Macro Environmental Factors 1.3.2 Competitive Analysis 1.3.3 Consumer Behavior Analysis 1.3.4 Current Brand Item Evaluation 1.4 SWOT Analysis 1.5 Key Marketing Problem or Opportunity 1.5.1 Opportunity 1.5.2 Problem 2. Key Strategic Decisions 2.1 Marketing Objectives 2.2 Communication Objectives 2.3 Positioning 2.4 Campaign Target Audience 2.5 Campaign Budget 2.6 Brand Personality / Character 3. CREATIVE STRATEGY 3.1 TV Advertisement 4. MEDIA STRATEGY 4.1. Our Rationale 4.1.1. TV Advertisements 4.1.2. Booths (Promotional Events) 4.1.3. Billboards Advertisement 4.1.4. In-Store Advertising OTHER IMCs 4.2 Media Schedule

6. Evaluation Control 6.1. Evaluation Methods 6.1.1. Surveys and Focus Groups 6.1.2. Evaluation of Marketing Tools 6.1.3. Evaluation of Internet Marketing Tools 6.2. Control 6.2.1 Control of Message 6.2.2 Control of Budget 7. Conclusion 8. Appendix 9. References 9.1 Journal Articles 9.2 Web References

Executive Summary In this report, our team has chosen to run an Integrated Marketing Communications program for 6 months, for the product - Merries diapers. There are two parts following this report, the first part entailing the fundamental decisions of the IMC program, such as the micro and macro analyses surrounding Merries and its key strategic decisions. The second part entails the implementation decisions of the IMC program, such as communication mix elements, creating message, media selection and evaluation/control. Merries diapers is existentially an established diaper brand in Japan, however this is not the case in Singapore with our target market, hence addressing this information and appeal gap through our IMC plan, is our focus in this report. As Merries is a relatively new product launched in February 2012, there is potential for its growth before reaching its maturity stage in the product life cycle. Therefore, there are two additional key marketing objectives of our IMC plan from the firm’s perspective, to accelerate its growth, which is to increase Merries’ market share in the diaper care industry by 15% and induce sales profit purchases by $2,000,000 by the end of 2015. Our team will first be analyzing Merries’ current marketing situation, along with Merries’ external environment through PESTL analysis and internally through SWOT analysis, by identifying its marketing problems and opportunities. There will be also be analyses of 6 key strategic decision-making aspects, which are: Marketing

objectives, Positioning, Communication objectives, Brand character/personality, Campaign target audience and Campaign budget, in determining Merries’ organizational Marketing Communications strategy’s success. Lastly, the implementation of the IMC strategy will include both creative and media strategies, taking into consideration both traditional and non-traditional media forms. The creative strategy explains the proposed storyboard for Merries’ television advertisement and its relevance to the various types of target responses Belief, Emotional, and Informational. The media strategy will employ the most effective media forms within the campaign budget of $1.5 Million, in achieving the desired objectives for Merries. Lastly, evaluation of media strategy for its media effectiveness, and control of the communication content and budget, is deployed, to consistently maintain and improve Merries’ IMC program.

Introduction Merries has the potential to be highly recognized brand as it is a product that encompasses high quality attributes and appealing design but is rather lacking in its communication efforts. Hence, the intent of this IMC plan is to enhance the marketing campaign for Merries diapers through in-depth analysis of various factors and enforcing strategic implementation plans to ensure a successful campaign. External and internal analyses have to be carried out to understand the current market and identify opportunities. Main marketing and communication objectives are set in order to be able to come up with a strategic plan. The ultimate goal is to influence purchase intention, encourage repeat purchases and increase sales.

1

Current situation analysis

1.1 Background Research Merries diaper is a product of Kao group, the leading baby diaper brand in Japan. Kao group is the premier worldwide Japanese company that has, since its’ founding in 1887 by Mr. Tomiro Nagase, expanded globally to the continents of North America & Latin America, Europe & Africa and Asia & Oceania. Kao’s key objective is to “strive for the wholehearted satisfaction and enrichment of the lives of people globally and to contribute to the sustainability of the world, with products and brands of excellent value that are created from the consumer's and customer's perspective” (Kao, n.d). This has led to the development of various consumer product businesses under Kao’s arm, ranging from beauty care, health care, fabric and home care and chemicals. 1.2 Internal Research & Analysis Merries is a diaper brand founded in Japan, and is under an established Japanese consumer product company, Kao Group. Merries diaper is known for its advanced technology incorporated in the manufacture of its diapers, that focuses on comfortable fit and minimal leakage, through the provision of two types of diapers to cater to different baby needs (Kao, n.d). Therefore, Merries current differentiating aspect deviates towards product quality. Currently, the majority of Merries’ advertising are mostly mass media advertising with existing communication messages emphasizing on its differentiating product benefits, such as increased breathability, flexibility and reduced moistness. These are not strong differentiating appeals as most of the competing brands are also emphasizing on similar functional benefits. As Merries is a new brand, consumers might not purchase it due to the perceived financial and mental risks, and would prefer to stick to more established brands like Mamy Poko Pants and Huggies. The communication efforts are not substantial enough to create awareness about the brand.

Hence, Merries will need to work on creating a distinctive relevant differentiated benefit to appeal to the target audiences. According to Euromonitor, Mamy Poko Pants and Unicharm Corp have been leading sales and gaining market share in the diaper industry, which means that Merries is still up and coming, not being the market leader as yet. (Euromonitor, 2014) Similarly, Merries’ commercials are not broadcasted with high frequencies like Huggies diapers, such that it will cause high levels of brand awareness, recognition and recall. Its current advertising efforts are the use of a one-time effort Youtube commercial, involving a celebrity endorsement with Xiaxue promoting Merries on her social media platforms, and writing a blog post review on Merries’ products. (Xiaxue, 2014). Also, Merries has little engagement in other non-traditional IMC tools to attain higher reach and frequency on top of mass advertising. In our IMC plan, we would be employing creative strategies that will cater more to the emotional and positive experiential aspect of the Merries brand. This will be shown through our new advertisements and also our emphasis on creating greater interaction through social media platforms, to attribute for a joyful and fun brand experience and association, eventually attaining higher brand equity. Promotional events, competitions and additional interactive services, will then help to gear Merries towards appealing more to their target audiences emotionally. Merries should further convey that they are the leading diaper brand in Japan, through testimonials or reviews from consumers, as word-of-mouth influence is deemed more credible than merely stating it through their advertisements. Therefore, the engagement of third-party celebrity bloggers or endorsers is highly significant in our campaign. 1.3 External Research & Analysis 1.3.1 Macro Environmental Factors

PESTL Variables Political

Details

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Strict control over the type of media content being broadcasted on TV and printed in newspapers. Governmental regulatory body: The Ministry of Information, Communications and the Arts - enforces regulation over locally produced media content. (Ministry of Information, Communications and the Arts, 2015) Local media directly or indirectly controlled by the government: ownership of shares in the major media entities by the state’s investment arm, Temasek Holdings. (Gomez, 2000) MediaCorp, Singapore’s largest media broadcaster and provider in Singapore, is wholly owned by Temasek Holdings. Singapore Press Holdings (SPH), the largest print media organisation in Singapore, has close ties with the Singapore Government. The former executive chairman of SPH include S.R. Nathan (National University of Singapore, 2011), Singapore’s former President; and Tony Tan who is the current President of Singapore. (Singapore Press

Holdings, 2009) Legal

Legislative frameworks to consider before launching media campaigns: ● Licensing of the Broadcasting Act (BA) - no one is allowed to provide any licensable broadcasting service in or from Singapore without a broadcasting license from MDA. ● The Public Entertainment and Meetings Act (PEMA) - provides for the regulation of public entertainment by requiring organizers of such events to apply for a license. ● Internet Code of Practice - licensed Internet Service Providers are expected to block access to sites that contain or are concerned with prohibited materials when notified by MDA or to take their own initiative to do so. (Lawgazette, 2004-10)

Economic

● One of the key strategic media center in Asia-Pacific region ● Media and Advertising is an extremely important role in Singapore ● In 2002, the Media 21 plan was launched; it is a part of the creative industries development strategy to propel the growth of Singapore’s creative economy ● “The global spending on entertainment and media in 2001 exceeded US$1 trillion and is expected to grow to US$1.4 trillion in 2006 with a projected compound annual growth rate (CAGR) of 5.2 per cent.” (Media Development Authority of Singapore, 2003) ● In 2001, the media and advertising industry employed 38,000 people ● Resulting in a 1.56% contribution to Singapore’s gross domestic product (GDP), with an annual turnover of S$10 billion ● From the year 1990 to 2000, media and advertising industry had a 7.7% growth annually (Media Development Authority of Singapore, 2003)

Socio-Cultural

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Technological

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Environmental

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Diverse cultural heritage resulting in way of life that forms the canvas of a rich social fabric. (ExpatSingapore, 2015) People live harmoniously and respect each other’s cultures, with high emphasis on communal and racial harmony. (Hawksford, 2008) Cosmopolitan society due to the influx of foreigners, adding to the vibrancy of Singapore’s social mix. Society embraces individualism, but honours collectivism. Main language spoken - English, but Chinese, Malay and Tamil are also spoken by the different ethnic groups. (InterNations, N.D) Constant pressure to excel, placing a lot of stress on the society. (Hawksford, 2008) Resulted in a working society that values and promote efficiency and productivity, with disciplined, selfdriven professionals who delivers results. Many organisations made use of interactive media (touch screens, digital point of purchase, kiosks), enabling their target audience to interact with the organisations indirectly Despite the growth of technology in advertising market, Singapore is still far behind many countries in terms of digital advertising spend. Ad:Tech Asean marketing innovation conference and exhibition: enable big companies as well as start-ups to meet, network and learn about the digital advertising space Provide a platform for organisations to learn about the individual markets throughout the region, the best practices and understand the trends Many organisations came up with environmentally-oriented schemes Green marketing initiatives implemented includes: reduced packaging response, seal-of-approval program and sponsorship programs -cause related and event marketing In 2007, NTUC FairPrice partnered up with their customers and supported the ‘Bring your own Bag Day’ campaign Coca Cola and WWF launched a ‘Save The Polar Bears’ campaign, making use of polar bear graphics and facts featured on the Coca Cola packaging

1.3.2 Competitive Analysis Direct Competitors Merries Official Website

Television Advertisement s

Mamy Poko Pants

- Use of child-like visuals, pastel colours and cute fonts, exuding a cheerful ambience

- Use of formal fonts and blue to represent functionality

-Not as organized: information are not structured in an easy navigational way

- More user-friendly and organized in the categorization of information with easy navigational tabs

- Incorporates soft, pastel colours and children voice-overs

- Incorporates children voice-overs

- Main focus of message is on how the quality and functions of the diaper can contribute to the babies’ happiness (baby’s laughter in the ad)

- Demonstrates practical usage of the diapers (ad shows mother helping baby to put on the diaper with ease) - Main focus of message is on quality and functions of the diaper

Social Media Advertising

- Make use of Facebook and Instagram to enhance interactive experiences for customers

- Make use of Facebook to stay in touch with its target audiences

- Makes use of emotional appeal

- Use of babies and family photos and provides information on baby care

- Use of celebrity influencers such as Xiaxue and Bong Qiu Qiu as brand ambassadors because of similarity in psychographic attributes (lifestyle, attitudes and interests) to target audiences

- Makes use of functional appeal

- Shows that Merries understands the trend in making use of nontraditional marketing channels to promote their brand and collaborating with influential individuals in building brand awareness.

Indirect Competitors Merries’ indirect competitors are Drypers and Pampers, both of which employ an entirely different IMC approach. Similarity Both Drypers and Pampers have their official website, with similar content to Merries and Mamy Poko Pants. However, the way they present their information and the color scheme used are different from Merries’ - It is more professional and the websites cater more to the mothers rather than the baby.

With the increasing number of people using social media, it became a crucial platform for brands as well. Similar to Merries, Dryers and Pampers also made use of social media platforms such as Instagram, YouTube and Facebook to enhance their brand equity, through increasing brand awareness and also, enhancing their interaction with the target audience. Differences Initially, Drypers made use of an emotional approach showing how the new Asian parents are time-strapped but wanted to enjoy parenting, and positioned themselves as the only diaper brand that really understood the importance of time, and how it affects the enjoyment of parenthood. However in Drypers most recent advertisement, they changed to another approach by making use of humor, portraying babies as adults to promote their brand. Pampers’ advertisements portray the journeys of all the first-time experiences between both the baby and the mother. The purpose is to inform the target audience that every ‘first’ between a mother and her baby is special, and to include Pampers as their choice of diapers in this journey.

1.3.3 Consumer Behavior Analysis In the case of diapers, its users and purchasers are two separate individuals. In other words, it is essential to find a balance between satisfying the needs of the user through product quality and motivating the purchaser to choose the brand through communication of its product benefits. In the marketing world, it is known that a new parent is the “holy grail of consumers”. (Casserly, 2012) This is due to the fact that parents are willing to spend hefty sums of money in ensuring the comfort, safety and healthy growth of their babies. According to a Nielsen research, the typical family spends over $1,000 on diapers and baby wipes during the 2.5 years their children use diapers. Competition in the baby care market is stiff and numerous branded and store brand products at various price points compete for the purchaser’s attention, which usually is the mother. (Nielsen, 2011) The average duration that a mother is in the baby care market is about 30 months. Therefore, diaper brands like Huggies are constantly looking for ways to extend their product lifecycle or look into other possible innovations to capture the dollar spending of these consumers. The Senior Director of Huggies Brand at Kimberly-Clark, Stu Schneider explained, “We are constantly looking for new ways to gain a deeper understanding of the choices moms make—not just at the birth of a child, but throughout the entire baby care lifecycle.” (Nielsen, 2011)

Hence, Merries should also plan its marketing campaign to target the consumers from the birth of each baby, especially for first-time young mothers in Singapore so we will be able to influence their purchasing decisions from the start, throughout their babies’ entire 2.5 years of diaper-usage. 1.3.4 Current Brand Item Evaluation Current Brand Item Evaluation Merries has 2 types of baby diapers - The tape and pants diapers. Its diapers are made in the diaper laboratory, committed 24/7 to research and development in ensuring that the diapers are of excellent quality. Merries manufacture their diapers under stringent quality control to provide assurance and comfort for babies. The diaper design emphasizes on breathability, absorbency and flexibility to accommodate baby movements. In addition, Merries diaper is user friendly, as the changing wetness indicators alert parents when it is time to change the diaper. Its uniquely cute and colourful designs are used to encourage a happy and joyful attitude and experience towards diaper changing. (Kao, n.d) Merries diapers price ranges from SGD$14.95 to SGD$24.25 in major supermarkets, just slightly higher as compared to other diaper brands such as Drypers and Huggies. Merries adopts a neutral pricing strategy whereby the prices are set by the general market, just at the competitors’ price. Hence, Merries is able to maintain its status quo in the market. Merries diapers are sold all over Asia, online and in-store. In Singapore’s context, Merries diapers are available in major retail channels such as health and beauty specialist retailers, supermarkets and hypermarkets. Likewise, Merries diapers are available on online wholesale distribution channels such as “JTI Co Ltd”, “qoo10” and “Aliexpress”. Thus, the extensive distribution channels ensures that Merries diapers can be conveniently purchased by consumers. Merries differentiates its brand based on emotional appeal to consumers. The use of bunnies to represent its product, portrays a joyful and children-friendly image. Thus, consumers can relate to the brand and more likely to influence them to purchase the product. Furthermore, Merries was awarded the “Good Design Award” by Japan Industrial Design Promotion Organization Foundation. This award further increases its credibility and quality assurance to consumers. 1.4 SW...