Call Girls Zirakpur👧 Book Now📱7837612180 📞👉Call Girl Service In Zirakpur No A...
Direct Marketing Plan
1. Direct
Marketing
Plan
Prepared for:
For the 2010/11 financial year.
Hannah Robinson – 0863482
Ashleigh Blythe - 0865407
Lecturer: Andrea Jenkins
Due: 15th June, 2010.
Word Count: 2,032 words
2. Table of Contents
Page
Contents 1
1 Introduction 2
1.1 Business Definition and Scope 2
2 Situation Analysis 3
2.1 Strengths 3
2.2 Weaknesses 3
2.3 Opportunities 3
2.4 Threats 3
3 Objectives 4
3.1 Corporate Objectives 4
3.2 Marketing Objectives 4
3.3 Communications Objectives 4
4 Marketing Strategies and Tactics 5
4.1 Target Market Segments 5
4.2 Product/Brand Strategies 5
4.3 Product Strategies 5-6
4.4 Pricing Strategies 6
4.5 Distribution Strategies 6
5 Integrated Marketing Communication Strategy 7
5.1 Direct Marketing Objectives 7
5.2 Appropriate Direct Marketing Mix 7
5.3 Budget 7
5.4 Budget Allocation 7
6 Marketing Program and Tactics 8
6.1 Schedule for Implementation 8
6.2 Roles and Responsibilities 9
7 Evaluation and Control 10
8 References 11
2
3. Introduction
This direct marketing plan has been prepared for the CEO of South Oz Wines, Thomas
Schofield. The plan will focus on and discuss the current objectives of South Oz Wines and look
into the segments of which South Oz Wines intend to target. With this, it will also discuss which
direct marketing mix is required in order to reach the segments target.
To ensure the plan is clear of what direct marketing media will be used, the plan will feature a
schedule and what tools will be used to reach South Oz Wines objectives.
1.1 Business Definition and Scope
South Oz Wines was founded in 1936 by the Schoen family on two hundred acres of land in the
McLaren Vale district. It had developed as a small business and then the family eventually
developed a 12-unit bed and breakfast, a restaurant and a small arts and crafts shop in the tasting
area, all on the premises. All of these developments have been very successful; however, the
winery was the major growth and profits provider. In 2004 and 2006, the Shiraz red variety
received the Jimmy Watson trophy and by receiving this award, it provided a significant boost to
the brand awareness and the demand of wine.
This direct marketing plan will show the process of planning and implementing direct marketing
for South Oz Wines. The scope for the direct mail of South Oz Wines will be within the area of
the McLaren Vale district and upper-class suburbs in Adelaide during the 2010/11 financial year.
3
4. Situation Analysis
2.1 Strengths
Large variety of wines – some of which won awards.
Location and size of the estate.
Great history and background.
New reputation – Melba’s confectionary store, more inclusive wine tours etc.
2.2 Weaknesses
Limited number of units in bed and breakfast which means limited number of sales.
Brand visibility through sponsorship.
Some spoiled wines due to positioning of cellar directly under the sun.
2.3 Opportunities
Are able to invest with Melba’s confectionary.
Sponsorship to get our brand recognised.
New market development nationally and internationally.
Different wine variety, for example, a Rosè for Breast Cancer.
2.4 Threats
Direct competitors.
Unpredictable weather.
Numbers in wine tourism dropping.
4
5. Objectives
3.1 Corporate Objectives
South Oz Wines wish to enter into strategic alliances and extend the product line by making
these alliances. They wish to improve and modernise on their advertising and promotions to
maximise on their profits while focussing on customer needs and increasing on their current
reputation to maintain and increase the current brand awareness.
3.2 Marketing Objectives
South Oz Wines has recognised that they need to implement change in order to achieve
maximising on profits. By introducing new products, South Oz Wines aims to increase their total
revenue by 25% by the end of the 2010/11 financial year.
3.3 Communications Objectives
As mentioned in the corporate objectives, South Oz Wines wish to maintain and increase on
brand awareness. By the end of the 2010/11 financial year, South Oz Wines aims to increase
their brand awareness by 15%. South Oz Wines hope to improve their online client database by
10% through their direct marketing campaign.
5
6. Marketing Strategies and
Tactics
4.1 Target Market Segments
According to Kurtz (2010), a target market is a group of customers that the business has decided
to aim its marketing efforts and ultimately its merchandise. A well-defined target market is the
first element to an effective marketing strategy. There are four basic strategies to satisfy target
markets: mass marketing, differentiated marketing, concentrated marketing, and micromarketing
(William, 2005).
Even though South Oz Wines target markets are separated into two segments, South Oz Wines
have adopted a mass marketing strategy as all markets are able to be reached with one direct
marketing campaign. The first segment is generation X male and females, who are young
professionals with middle to high income. The second segment is baby boomers male and
females, who are corporate professionals with middle to high income. Both segments are
generally located in McLaren Vale, Mitcham, Burnside and Unley.
4.2 Product / Brand Positioning
South Oz Wines is commited to provide excellent wine at an excellent price. Currently, South Oz
Wines are situated in a reasonable position within the market providing good quality wines at a
cheaper price compared to other competitors. South Oz Wines would like to be positioned near
the highest price and quality competitor, Penfolds, within the next three years.
4.3 Product Strategies
South Oz Wines wishes to use an augmented product strategy, as South Oz Wines offers
fantastic after sales service and warranty etc. South Oz Wines bases their product strategy on
serviceability, customer service and the relationship we have with the customers to give them
what they want.
4.4 Pricing Strategies
There are many factors which determine which pricing strategy to use. These factors are: your
6
7. competitors, your suppliers, the availability of other products and your customers (Kyle, 2008).
South Oz Wines uses a competitive pricing strategy when it comes to pricing the wines. They
based their prices between what competitors are pricing their wines.
4.5 Distribution Strategies
South Oz Wines has three distribution channels to distribute their wine and winery merchandise
to consumers. The primary channel is retail (on-premises) sales which is the sale of wine directly
to customers at the winery. The second distribution channel is retail (off-premises) sales which
are the sales of wine to liquor stores then to customers. The third and last distribution channel is
internet sales because South Oz Wines are hoping to eventually target global consumers as well
as our younger generation of target market who are tech-savvy.
7
8. Integrated Marketing
Communication Strategy
5.1 Direct Marketing Objectives
South Oz Wines want to build customer relationships by offering discounted quality services so
it provides them with a sense of appreciation for our wine. South Oz Wines believes that by
building awareness of our online wine club this will encourage our customers to join our website
for information, discounts, latest news, up-coming events and also information regarding our
wine. This will also help South Oz Wines increase their database.
South Oz Wines will measure the effectiveness of our direct marketing plan by measuring the
amount of new members and continuing members. We can also measure which wines each
consumer buys so that we can distribute a direct mail special for the particular wines they enjoy.
5.2 Appropriate Direct Marketing Mix
South Oz Winery has chosen to use the direct mailing strategy to target our chosen market and
develop brand awareness. We find that having chosen to use direct mailing means that it’s cost
effective, selective and flexible. To be more specific we will be using direct mail to attract the
baby boomer market and emailing the young professional market which will then enable us to
distribute out specials and relevant information in regards to their purchases and queries. South
Oz Winery are also prepared to look after their customers by offering them birthday vouchers
and gift cards with purchases over a certain amount.
5.3 Budget
South Oz Winery has a budget of $10,000.
5.4 Budget Allocation
Web development = $50 p/h x 24 hours = $1,200
Email Design = $50 p/h x 24 hours = $1,200
Distribution = $30 p/h x 24 hours = $720.00
Direct Mail (inc. design, print, distribution and G.S.T) = $5,200 through Australia Post
8
9. Marketing Program and
Tactics
6.1 Schedule for Implementation
July August September October November December
A1 A2 A1 A2 A1 A2 A1 A2 A1 A2 A1 A2
Offer Offer Offer Offer Offer Offer Offer Offer Offer Offer Offer Offer
Website 1 1 1 1 1 1 1 1 1 1 1 1
Offer Offer Offer Offer Offer Offer
Email 2 1 3 1 4 1
Offer Offer Offer Offer Offer Offer
Direct Mail 2 1 3 1 4 1
January February March April May June
A1 A2 A1 A2 A1 A2 A1 A2 A1 A2 A1 A2
Offer Offer Offer Offer Offer Offer Offer Offer Offer Offer Offer Offer
Website 1 1 1 1 1 1 1 1 1 1 1 1
Offer Offer Offer Offer Offer Offer
Email 3 1 2 1 4 1
Offer Offer Offer Offer Offer Offer
Direct Mail 3 1 2 1 4 1
Schedule explained:
A1 = Area 1 (Mitcham, Unley and Burnside).
A2 = Area 2 (Murray Bridge, Victor Harbour and McLaren Vale.
Offer 1: Receive 10% off your online order (PLUS! Free Shipping)
Offer 2: Book two nights at South Oz Wines B&B and receive an extra night, FREE!
Offer 3: Book a wine tour for you and ten friends and receive a FREE case of wine.
Offer 4: Buy a Melba's Gift Basket and receive a FREE $20 Melba's voucher.
Offer 1 will be run repeatedly on our website as it does not cost us anything to advertise. But to
remind customers of this offer we will send out emails and direct mail so that it reaches our
market who does not look online often.
Offer 2, 3 and 4 are evenly spread over our schedule ensuring that both the areas receive the
mail.
9
10. 6.2 Roles and Responsibilities
South Oz Wines have very few people to manage, develop and organise the company to
structure where problems can be solved and managed effectively. Our freelance graphic designer,
Tara Robinson, will provide us with options for our direct mail. We will then meet with her and
determine which the best choice to publish is and distribute to our market. Our CEO will then
make a decision and sign off on our designs so that they can be distributed as soon as possible.
Tara Robinson will also be working on the website development to update our existing one and
she will also design the email which our marketing team will then distribute to the young
professionals to develop our brand awareness. The marketing team will also be assigned a
selected area for which each person will focus on to distribute the direct mailing post card. For
example, Ashleigh will be in charge of A-G, Hannah will be in charge of H-P and Frank will be
in charge of Q-Z as our database is organised by last name.
10
11. Evaluation and Control
At South Oz Winery we ensured that our direct mailing strategies are measurable so that we
target our consumers effectively and productively. From the distribution date, those who order
online will be asked how they heard about the offer and those who purchased off-premises and
the winery will be asked as a conversation starter, how did you find this Wine? With this
particular knowledge the marketing team can then determine which strategy worked well and
which needed to be improved.
South Oz Wines will then continue to strongly look back on their objectives and also their
strategies into developing customer communication so that they can then improve their business
and also develop reasons of improvement. South Oz Wines need to make sure that their direct
marketing plan is looked at frequently so that they can then determine if advertising budget has
been used effectively.
11
12. References
Kurtz, D. (2010) “Contemporary Marketing Mason”, OH: South-Western Cengage Learning.
Accessed 10 June, 2010.
William, C.A. (2005) “The Marketing Plan”, John Wiley & Sons, Inc. Accessed 10 June, 2010.
12