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Transcript
Integrated Marketing Communication Mix 1
ANALYSIS OF THE INTEGRATED MARKETING COMMUNICATIONS MIX
STRATEGIES OF ORAL-B COMPANY
Student’s Name
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Integrated Marketing Communication Mix 2
Analysis of the Integrated Marketing Communications Mix Strategies of Oral-B Company
INTRODUCTION
Practitioners and theorists have one common base of argument, which is that integrated
marketing is essential towards the successful implementation of a project. Integrated marketing
communication (IMC) relates to the approach that has been adopted by an organisation in its
processes of branding and coordinating communication efforts for the various products that it is
producing and displaying for purchase in the market. According to the American Association of
Advertising Agencies, IMC refers to the comprehensive plan that a company takes to evaluate its
strategic goals of communicating the disciplines or products it deals with and how to combine
those disciplines in a manner that enhances clarity, maximum communication impact, and
clarity. In the case of this study, it will be essential that adequate IMC mix strategies are adopted
to strengthen the uptake of the FMCG product in the UK market (Masterman & Wood 2006).
Subsequently, this report shall provide recommendations that company’s management can adopt
for the future to combat the challenges that will prevent its marketing activities of the product.
The major problem for businesses in the present technological and global market is in the
integration of their marketing and communication strategies as a mix to enhance their operations.
Company Overview
The chosen company for analysis is Procter and Gamble, and the chosen brand of product
is the Oral-B toothbrush. Procter and Gamble (P&G) is a multi-national manufacturer of
different ranges of products and was started in the year 1837 by William Procter and James
Gamble (Yeshin 2012). Since then, it has engaged in the production of several brands of
products that it has distributed across its numerous store that operates in several countries
Integrated Marketing Communication Mix 3
including the UK by adopting a unique but clever marketing strategy in the achievement of its
business objectives. It has over time become one of the most established companies across the
world (Pickton & Broderick 2001). To be able to achieve all that it has done, regarding the
marketing strategy it is using, the company has undergone several changes in various dynamic
ways that have transformed its marketing mix strategy. It does these by adopting its global
approach to creating quality products that are aimed at improving the lives of the people on a
daily basis (Yeshin 2012). One such brand of products is the Oral-B toothbrushes. In terms of
enhancing its sustainability, the company’s management hopes that this new name will be
effective in the attainment of its objectives, but only with the appropriate adoption of an
integrated marketing communication (IMC) mix of strategies. Currently, the company is moving
more of the product into its traditional market through the use of its numerous stores across the
world that also stock several other household items meant for use by families or individual
consumers, globally. Having an appropriate marketing strategy will enable the company to move
forward efficiently in its marketing pursuits for the new Oral-B brand.
Furthermore, there are hundreds of thousands of organisations globally that are earnest in
their application of the appropriate marketing communication strategies to assist in the
achievement of their objectives and pursue their marketing objectives. As the international
strategic brand manager of Oral-B company, it is important that I understand and document the
concept of integrated marketing communications (IMC) mix strategies that the will be applied
towards the enhancement of the company’s products. This combination of policies is significant
as it will allow for the analysis and assessment of the future actions’ market strategies.
The main question that is being asked by the management of the FMCG company is in
relation to the strategies that they can use to market their products so as to draw a large customer
Integrated Marketing Communication Mix 4
base and sales turnover for the products. Considerations have been on how successful or large
companies such as Samsung, Apple, China Airlines, British Airlines, and Top Shop, among
another international brand of enterprises. In all these companies, the increased number of
customers and markets are associated with an increased use of a variety of marketing
communication strategies to engage the targeted consumers of their products (Shen, Tan & Xie
2000, p.92-95). It is on this basis that Oral-B will strive to establish and enhance its integrated
marketing mix (IMC) strategies in its chosen UK market.
In order to understand this IMC mix of policies, recognition is essential to the fact that
the main problem faced by most FMCG companies is that of their use of communication to
engage and reach out to the various markets and audiences for their products. This study will
mainly seek to analyse and discuss how the aspects of the position, segmentation, and branding
will be essential to the company towards its boost of the marketing activities that it conducts
(Belch, 2009 p.125-136).
Oral-B brand is a global leader in the brushing market and as part of P&G’s branding
strategies, it was introduced in the year 2006 and has seen tremendous growth that has
contributed to the company’s profit levels (Kitchen 1999). The brand includes manual and
powered toothbrushes that can be used by children and adults. Subsequently, the brand includes
oral care centers, oral irrigators, and interdental products like dental floss that it promotes as a
means of attracting more customers to its products. Having an effective IMC mix of strategies is
essential in this product given the wide usage of the toothbrushes by dentists across the globe
(Chitty et al. 2011, p.87). This paper is structured in the manner of first providing a literature
review on IMC, then the market environment review, before critically analysing and discussing
the IMC strategies to be adopted by the company, as well as the recommendations for the same.
Integrated Marketing Communication Mix 5
LITERATURE REVIEW
Over the past few years, marketing mix communication has emerged as one of the
greatest approaches envied by international strategic brand managers in their pursuit of enhanced
growth in the various brands of products of their respective companies. Primarily, the current
trend of high competition is perceived as the greatest driver in the transformation of the
strategies in a manner that allows for the reach out to clients to be efficiently fast, concise, clear,
and integrated (Blakeman 2014, p.110-113). The use of integrated marketing communication
appropriately serves to allow the companies to leverage their products against the impact of
market forces depending on how best they communicate the same to the audience or consumers.
As a result, there is presented an opportunity for more efficient communication to take place.
Among the earlier attempts to define and structure integrated marketing communication
(IMC) mix strategy was that of Kitchen (1999). In it IMC is regarded as the precise combination
of personal selling, advertising, public relations, sales promotion, and direct marketing activities,
all of which must be performed by the company in its pursuit of attainment of the marketing and
advertising objectives. Since then, various organisations have sought to adopt this definition or
model theirs based on the marketing goals that they seek to achieve. Most companies have
tended to place greater focus on the advertisement segment of the IMC strategy as the one best
suited to enable them meet their sales targets and reach out to their customers (Shen, Tan & Xie
2000). Often, the focus is on advertising as the only marketing tool at the expense of the other
strategies given that it is one of the most useful communication tools.
Integrated Marketing Communication Mix 6
According to Hauser, Tellis & Griffin (2006), the present competitive marketplace
presents companies and their managers with the greatest test or challenge. They have to ensure
that the messages they communicate about a brand of a product reach out to the largest number
of consumers and influences them into making decisions towards the purchase of the same
products.
The fundamental concept discussed behind the IMC mix strategy that a company can
adopt is the seamless experience that it seeks to provide to its consumers. This is done through
the promotion of the core image of the brand and messaging of the consumers; thus, reinforcing
the marketing communication channel in use by the company (Hauser, Tellis & Griffin 2006).
This is brought about by the dynamism in the industry of toothbrushes and other dental care
items, which requires that marketing managers engage in the constant renovation of the strategies
employed in communicating the product mix.
The integrated marketing communication (IMC) mix strategy is not about having goods
or service put in the marketplace based on the perceptions that the company has of the
customers’ needs. Instead, it is about the business being responsive to the clients and their
insights about their wants, wishes, desires, and needs and applying this information in creating
products or services that will meet their needs.
In any marketing globally, advertising is considered the most beneficial to a marketing
manager seeking to sell a product to any prospective clients and to reach out to a broad audience
with the created brands in an appealing yet cost efficient manner. In any marketing department of
an organisation globally, advertising is regarded as the greatest contributor to the built image of
the brand and enhancement of the awareness of the consumers to the product (Hauser, Tellis &
Griffin 2006, p.690-693). However, this is just but one of the many approaches that the
Integrated Marketing Communication Mix 7
international brand manager at Oral-B Company would want to adopt as the only approach to the
mix. Nowadays, several shorter means that it can apply shorter brand, message, advertising, and
integrated marketing communication strategies. In contrast to all these, the IMC mix strategy is a
comprehensive marketing plan for communication that the manager can apply combatively in the
evaluation of the strategic disciplines that would focus it on other methods.
Among the factors that are used to facilitate, build, and manage the integrated marketing
communication (IMC) mix strategy, positioning, segmentation, and branding are core in ensuring
that there is a satisfactory analysis of the business strategy to be adopted by the company. To
successfully achieve this, the manager will require engaging the IMC mix effectively to assess
how the same would be impacted by positioning, segmentation, and branding strategies for the
design and implementation of the marketing strategies for the product (Hauser, Tellis & Griffin
2006).
On the part of market segmentation, the manager is required to divide the market
homogenously such that each segment of the customers shares similar features. This way, it will
be able to split the customers into various groups based on their needs. As a result, the outcome
is expected to be that in which the manager can reach out to its targeted clients and distinctly
offer to them a mix that is suited to them. To use segmentation as a strategy, a manager will
require to select the right market, segment it, and then choose the most profitable ones from
which it can invest (Shen, Tan & Xie 2000, p.91-93). By doing this, the manager will be able to
develop plans that will satisfy all the needs of each of the clients. In the IMC mix, it is also
required that the position held by the competitors is determined through approaches that consider
the customer, market, and the redefined appeal of the brand.
Integrated Marketing Communication Mix 8
In the case of the brand strategy, the manager needs to identify the family of items in
which the product can be categorized. These include family umbrella branding, corporate
umbrella branding, personal branding, and range branding (Kitchen 1999). Given a single brand
or product such as the case of Oral-B, the individual branding approach is best suited for the
company. Knowing the brand already, as in this case, also helps in determination of the product
decision such that in the marketing communication mix, the manager would only consider the
fundamental influence that the product would have on the public. This will also benefit it and
improve its image, profit levels, reputation among rivals, and enable it to create further
awareness among the clients of the new brands (Hauser, Tellis & Griffin 2006).
MARKET ENVIRONMENT REVIEW
The chosen market for this product is the UK market. However, being that the company
has several foreign outlets and can make online sales; the targeted market is a comprehensive
one on a larger scale. For the enterprise to successfully attain its goals and meet the needs of the
clients, it will need to realign itself well with the market-determined forces that explain the
environment of operation. The realization of the environment is essential to the attainment of a
niche that defines the penetration levels of the products to the market (Shen, Tan & Xie 2000).
Furthermore, identifying the environment helps with the highlight of the competitive advantages
that the P&G Company has over its rivals about this single brand, Oral-B. A higher competitive
advantage would imply the product is more preferred as compared to those of the competitors.
As such, the company would need to reposition itself as the market leader and dictate the prices
of the commodities. However, if it does not turn out to be more competitive than its rivals are,
the company may just end up being a follower in the market; hence, adheres to the set prices by
the leaders in the market (Hauser, Tellis & Griffin 2006, p.688).
Integrated Marketing Communication Mix 9
Before the integrated marketing communication emerged, the practice used by companies
involved the relaying of market information through large segments that dominated the market.
This made market be a one-way feed. However, with the integration of the marketing
communication mix, the international brand manager at Oral-B would need to rely on their
corporate budgets revealing their sales turnover to assess the relevant markets to invest in, and
the one to segment further.
In the UK, the market for toothbrushes and other dental products is widely dominated by
Procter and Gamble, although there are other competitor firms. The currently targeted market for
the product will be all the age groups ranging from children of 3 years and above into adults.
This is because children consider the product very efficient for use too, as opposed to the brushes
by competitor firms that only focus on the specific products for defined age groups. Market
stores in the UK would include supermarkets and dental pharmacies that seek to encourage their
clients to use medically tested toothbrushes.
CRITICAL ANALYSIS AND DISCUSSION
Company Strategies
Critically, the examination and acknowledgement of the possession of a product are not
enough to warrant the company the intended sales levels and revenues that it anticipates.
Therefore, it will require setting up appropriate measures or strategies that would ensure that it
obtains the largest market share. The adopted plan by the company should be one that ensures
that it does not trail behind in the global market for toothbrushes, as well that it can counter the
growing competition threat from Unilever, which is its chief rival (Shen, Tan & Xie 2000, p.9496). To achieve these two primary goals, its adopted strategy should be one that assesses the
Integrated Marketing Communication Mix 10
market and enables it to be diverse across the various market segments that it has created. This
shall also help it to overcome any dilemma in choosing whether to penetrate a developed or
emerging market with the products.
Organisational Structure
The figure above shows the organisational structure that the international strategic brand
manager for Oral-B can adopt in setting the marketing mix for the product. The product is
classified as a household care product; hence, the target consumers would be those in the
domestic market and not the commercial market. To attain a global business service, the
company would need to have a shared service with its other branches or already established
brands, especially those in the beauty and grooming sector. At the corporate level, the successful
marketing, introduction and sustenance of the Oral-B toothbrush would require adequate
governance of the advertising funds allocated to the product. Through functional innovation, the
Integrated Marketing Communication Mix 11
company should be able to design appropriate packages for the products that will make them
highly sellable.
SWOT Analysis
This examines the strengths, weaknesses, opportunities the company has about Oral-B
toothbrushes, and the threats to marketing expansion. The image below shows the SWOT table
for P&G that can be adopted as a reflection of the strategies to be adopted for Oral-B brand.
Strengths. Key among the firm’s strength is its diversification of products and brand portfolios.
This if applied in the marketing mix of the Oral-B brand will result in the quick uptake of the
product in the market. Furthermore, through research and development, the manager and the
team managing the brand will be better placed to design new ways of enhancing the
toothbrushes; hence, enabling the firm to meet the ever-changing needs of the consumers of the
product. By also having a global operation and presence, the manager is best placed to reach
Integrated Marketing Communication Mix 12
international markets since the product will not require a new platform for introduction, but use
the already existing ones created for beauty and grooming products, also manufactured by the
company. Lastly, with a strong distribution network, the company can move the goods easily
from the warehouses to the retail stores from where the clients can access them.
Weaknesses. The key weakness point for the company would be on depending on the other
brands to launch itself on the market. The competitors such as Unilever are likely to utilize this
spot and weaken their sales prospects. There is also the case of weak divisions such as for beauty
products that are not performing well. If the downward trend is continued, all the brands of the
company may be labelled as non-performing; hence, affecting the marketing strategies of the
enterprise. Other weaknesses instances include online media, poor leadership coordination by the
management across brands, and the aspect of missing critical opportunities for marketing and
sales.
Opportunities. At the present moment and in consideration of the marketing mix strategy that the
company seeks to adopt that targets the UK market and internationally, its opportunities are the
ability to diversify into other market segments across the nation and globally. Additionally, the
Oral-B company can benefit from its capitalization on the online media such as social media to
sell its Oral-B brand. The Indian market for FMCG products such as the Oral-B toothbrushes is
also growing; hence, the company can capitalize on this as part of its international growths
strategies. Furthermore, it needs to focus on its environment concerns as a part of the corporate
social responsibility (CSR).
Threats. The main threats facing the company are the competition it continually receives from
Unilever, the chief market rival. The other risk pertains to the regulations from the government
Integrated Marketing Communication Mix 13
regarding taxes. This aspect is even evident in the case of international markets where it will be
required to realign its strategies to the tax systems in those countries.
RECOMMENDATIONS
Organisational structure cannot be successfully implemented without adequate
managerial structures. Therefore, the company’s management should strive to be responsible for
the orchestration of the rejuvenation plans that can be adopted for the marketing of the Oral-B
brand in all the cities in the UK. Achieving this will be based on the fact that P&G has been
known to offer reliable, durable, dependable, and high-quality products that are based on strict
adherence to the local, regional, and international standards (Blakeman 2014).
Furthermore, in the UK and international markets, the situation may be different due to
the dynamisms of such markets that are often characterized by high competition and numerous
firms producing the same product. To penetrate into such a market, the international strategic
brand manager would need to apply a different policy that would still enable it to set
considerably low prices, but without compromising the sales turnover or the revenues. The only
advantage this brand will have is the international image that P&G has established over time in
other products. Through adequate marketing and communication, the company should be able to
ease its entry into the foreign markets and to blend with the other products whose brands are
already common household names.
CONCLUSION
This marketing analysis report was centered on the determination of the integrated
marketing and communication (IMC) mix strategy that P&G can adopt to enhance its advertising
and commercialisation of its Oral-B brand. The company specializes in FMCG goods and has the
Integrated Marketing Communication Mix 14
home-based care products widely selling in the UK market. The primary concern for the
international strategic brand manager would be on how to utilize the available marketing mix to
achieve sustainable growth in the market in spite of the competition. The main competitor is
Unilever, and for the firm to excel in its new brand of Oral-B toothbrushes, it will need to realign
its operations along its detailed organisational structure and SWOT analysis, both of which aid in
the strategic placement of the product in the market.
Integrated Marketing Communication Mix 15
References List
Belch, G. E. (2009). Advertising and promotion: an integrated marketing communications
perspective. Sydney, McGraw-Hill Australia.
Blakeman, R. (2014). Integrated marketing communication: creative strategy from idea to
implementation. http://public.eblib.com/choice/publicfullrecord.aspx?p=1744481.
Chitty, W., Barker, N., Chitty, B., Valos, M., & Shimp, T. A. (2011). Integrated marketing
communications. Cengage Learning.
Hauser, J., Tellis, G. J., & Griffin, A. (2006). Research on innovation: A review and agenda for
marketing science. Marketing Science, 25(6), 687-717.
Kitchen, P. J. (1999). Marketing Communications: Principles and practice. Cengage Learning
EMEA.
Masterman, G., & Wood, E. H. (2006). Innovative marketing communications: Strategies for the
events industry. Routledge.
Pickton, D., & Broderick, A. (2001). Integrated marketing communications. Financial Times
Prentice Hall.
Shen, X. X., Tan, K. C., & Xie, M. (2000). An integrated approach to innovative product
development using Kano's model and QFD. European journal of innovation
management, 3(2), 91-99.
Yeshin, T. (2012). Integrated marketing communications. Routledge.