In our previous IMC plan, our group worked on the V-pure marketing plan for entering the Energy drink market in Mumbai, India. The plan introduces many marketing tools and ways to attract target customers to make their first purchase decision (until they become regular customers). The report aims to evaluate how the IMC plan would impact V-Pure brand image and explore possible ways of how to build up long term customer relationships. We measure the effectiveness of the IMC plan from the following aspects.
● IMC Strategy effectiveness
● Communicating customer value
● Building a customer relationship
The purpose of this report is t
assess the function after plan be executed if target customers would take V-pure as an premium energy drink , Will V-pure brand image sink into their heart and could would V-pure take up certain market share from its competitor Red Bull.
IMC Strategy Effectiveness
The growth of most companies and their brand building are highly impacted by IMC. Not only can a clear and effective IMC plan boost the image of a company, but also make the company more competitive and cost effectively.
The main objectives of the IMC plan for V-Pure drink launched in Mumbai are as follows:
● Product Strategy Effectiveness
● Communication of Customer Value
● Marketing Activities Effectiveness
Product strategy effectiveness
Product strategy is about imagining the future of your product: What product will it become? Who will it benefit? How will it create value? It's a high-level plan that helps you realise your vision or overarching goal. More specifically, the product strategy should describe who the product is for and why people would want to buy and to use it; what the product is and why it stands out; and what the business goals are and why it is worthwhile for your company to invest in it, as the following picture shows. (romanpichler, 2015)
The attributes of our products can be boiled down to the following three points. Firstly, our product is a type of healthy energy drink with zero artificial ingredients and its function is to gain energy after consumption. Secondly, our products are not an ordinary beverage but a “Premium” energy drink because they are characterized by a classic glass bottle which distinguishes them from other can drinks. Thirdly, the V-pure energy drinks target high income groups so, to some extent, it gives you a sense of social superiority when you consume it, which is especially true in developing countries.
Using sales volume data is not the only way to measure the effectiveness of the product strategy since it could also be measured from consumer feedback, which can be obtained from on-line surveys and face to face communication. ( )
B2B Communication of Customer Value
To create real value, you must recognize what a Customer perceives as value. You must understand how the customer views your competition's product. What is important to the Customer in his buying decision? Is price more important or are benefits? Are you good at delivering what the Customer believes is important? Are you able to deliver more than your competition on these factors? (reference )
The previous V-pure IMC plan is more focused on B2C rather than B2B customers. However, establishing good relationships with B2B customers is the first step into market because the B2B customers already have mature sales channels. What B2B customers are concerned about is weather V-pure could be their long-term business partner and what the V-pure products' competitive advantage is compared to other competitors. We could achieve this by using the following methods.
● Risk reduction. From business perspective, taking less risk means higher possibility of success. One way of achieving this is no payment is needed until one month after the products are sold to alleviate their cash flow pressure. We could set up our own logistic team to deliver the V-pure products to their warehouses for free, in order to ensure the products to be delivered safely and efficiently. We believe, with these guarantees, distributors would be willing to consider cooperating with us.
● Free promotional item support. As a new brand and product to Mumbai India, a large-scale promotion will push target consumers to make a trial purchase so that there would be a good chance for them to become regular consumers. This can be done by giving out V-pure free promotional items to all the distributors such as V-pure shopping bags. V-pure music box, V-pure glass.
● Free drink samples support. By giving out free drink samples, customers can get a change to taste our products for free so that they would know whether or not they like it. If they like our products, they will take purchase action now or in the future. V-pure would cover all the costs involved in the promotion to help distributors and wholesalers to expand their business.
Marketing Activities Effectiveness
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
(Approved July 2013)
In V-pure IMC plan, many marketing activities are considered. The most common ways are video ads and printed ads, these are the most effective ways to build up product connection with consumers. Those are indirect marketing methods, they could reinforce V-pure's brand image to consumers in order to build up brand & product loyalty for long term business.
To measure its effectiveness we could apply metrics from advertising Tracking Research, online Copy testing, and online surveys, in regards to memorability of V-pure Brand, likeability: If dependents like V-Pure brand, unaided and aided message recall, and unaided and aided campaign recall, in order to have some ideas of consumer preference.
B2C Communicating Customer Value
Customer values for end customers are the satisfaction of the products after consumption, in other words, this is how customers think about V-pure. It is dependent upon the product and company development strategy. In the V-pure IMC plan, the objectives of communicating customer values were not clearly displayed. Here are customer values V-Pure should communicate with customers.
How to differentiate V-pure's function to deliver premium quality which is 100% New Zealand imported and to provide energy after consumed amongst so many alternate energy drinks is a main message that should be passed to consumers, these could be communicated by clear written descriptions on printed ads and voice over video ads.
To measure the effectiveness of communicating customer values, V-pure could take those actions.
1) Message evaluation techniques
Promotion –directly marketing, online and offline both promote ‘buy two boxes get one box free'.
2) Online evaluation metrics
QR Codes and Facebook likes. Print QR Codes on bottles and inner boxes for customers to use their phones to access the company website and promotional events.
Facebook is a new method, set up a V-pure Facebook account to post company information and events news to see how consumers react to it by collecting “likes”.
3) Respondent behavior evaluation
Internet response. Internet is a open area to communicate freely. The information collected is more efficient, direct and honest. V-pure could collect all the related comments on internet to have a more clear perspective from the customer's opinions in order to offer a better customer value in regards to product price, product attributes, product quality and after service.
Building Customer Relationships
Building relationships is key to learning your customer's needs. And, you may gain more returning customers, referrals and net income in the process. In our IMC plan it did not be clearly mentioned. Here are five way to build up V-pure B2B customers relationship and keep them come back in order to build up long term business relationships.
1. Communicate, in any business relationship communication is an essential method to building customer relationships. Promoting your business and listening to your customers are equally important. V-pure would hold conference meetings in five star hotels with distributors from time to time to discuss company strategy and business issues, holding these meetings routine on a monthly basis could improve customer communication further.
2. Ask for feedback, Customer feedback helps businesses to understand their customers' specific wants and needs, so they can find the best solutions to customer issues. The better business offerings meets customer's needs, the more the business will grow. V-pure will invite customer feedback by sending surveys and comments through emails than address the issues highlighted.
3. 3 Exceed expectations, your customers expect great products or services from businesses. They should continue to improve upon on what their company offers. To put it simply, under promise and over deliver. When customers are impressed they keep coming back.
V-Pure would set up their own logistic team to offer fast speed delivery services to ensure the retainment of quality and timely deliverys.
4. Show appreciation. Reward long-time customers with a loyalty discount programme. Businesses can offer reward cards, or use a loyalty programme app to track customer spending and reward high spenders. V-pure could set up a reward policy for distributors, whoever reach 1 million USD sales volume can get “GOLDEN DISTRIBUTOR” medal which would entitle them to have rights for 6 months payment delay priority and 1% refund of its purchase volume. (entrepreneur Asia pacific, n.d.)
Customer Relationship programmes
A programme that Assess customer-business relationship could help to adjust V-pure's Company develop strategy for a more sustainable/profitable long term plan, by building up long term customer relationships. To measure this programme V-pure could take the actions below.
● Message evaluation techniques
Do V-pure's digital ads and printing ads stay in the audience's mind long enough and affect them on an emotional level which could lead them to a “buy” action.
● Online evaluation metrics
V-pure will analyse customer behaviour data from their website. Analyse all the data in regards to dwell rates, dwell time and daily hits from different times and area segmentation.
● Respondent behaviour evaluations
V-pure will analyse CRM software data. CRM system is a tool that records all the B2B customer behaviour in order to track and understand the customer needs.
Most retailers and businesses rely on repeat business. They look for ways to bring customers back. This includes informing buyers of the latest products, specials and sales. Technology has made it easier to stay in touch. Besides radio, TV and print ads, companies use mail newsletters, text messaging, online ads and other tools to keep customers informed. (Wallace, n.d.)
According to our IMC plan, we should focus more on building up B2B and B2C customer relationships in order to establish long term business relationships and visualise clear tangible marketing objectives, which will adapt to emergency market culture and the situation in Mumbai India. We will select a marketing partner by biding in order to implement V-pure IMC plan effectively and smoothly.
entrepreneur Asia pacific. (n.d.). Retrieved from 5 Ways to Build Killer Relationships With Customers : https://www.entrepreneur.com/article/282364
romanpichler. (2015, may 19). Retrieved from Elements of an Effective Product Strategy: https://www.romanpichler.com/blog/elements-definition-product-strategy/
Wallace, J. (n.d.). How Customer Relations Programs Work. Retrieved from howstuffworks: https://money.howstuffworks.com/how-customer-relations-programs-work.htm
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