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AMB202 Integrated Marketing Communication
IMC Final Assignment: The Flying Cock
Group:
Lachlan Dunk
Fidel Tang
Harry Yan
Leo Chau
Leon Tam
Due Date: 31/05/2015
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Executive Summary
This report was commissioned by the owners of The Flying Cock (TFC), Fortitude Valley, to develop a
marketing strategy to enhance brand equity within a budget of $10,000. A PEST and SWOT analysis
draws attention to strong external factors supporting the brand in the market place. This includes a
geographic location experiencing strong economic growth supported by government policy and a
changing inner-city demographic with market behaviour congruent with the objectives of the
business. In contrast the analysis reveals internal weakness affecting market behaviour. Poor ‘open
for business’ cues are limiting the market’s daytime patronage.
The report offers a marketing solution that integrates three strategies.
It is recommended that TFC:

increase in the presence of ‘open for business’ cues along Brunswick Street

install a mobile coffee cart in the rear alleyway of McLachlan Street to create a ‘third place’
for the target market. The coffee cart could also be used at special events at other locations
to broaden the market base.

use an online rewards app to reinforce market behaviour and provide a communication
platform for marketing purposes.
A short implementation time frame of 8 weeks is recommended with costs budgeted over 24
months. It is anticipated that market behaviour will respond positively with a return on investment
evident within the financial quarter.
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Table of Contents
Executive Summary................................................................................................................................. 1
Table of Contents .................................................................................................................................... 2
1.
Introduction .................................................................................................................................... 3
2.
Client Evaluation ............................................................................................................................. 4
2.1
Client Profile............................................................................................................................ 4
2.2 Objectives...................................................................................................................................... 4
2.3 Internal and External Situational Analysis .................................................................................... 4
3.
Strategies ........................................................................................................................................ 8
3.1
Strategy 1: Outdoor “Open for Business” Cues ...................................................................... 8
3.2
Strategy 2: Rear Alleyway Coffee Cart ................................................................................... 9
3.3 Strategy 3: Apply a rewards program app to engage in direct online marketing ........................ 9
4.
Budget ........................................................................................................................................... 11
5.
Media Plan .................................................................................................................................... 12
6.
Timeline......................................................................................................................................... 13
7.
Investment Evaluation .................................................................................................................. 14
8.
Conclusion ..................................................................................................................................... 17
9.
References .................................................................................................................................... 18
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1. Introduction
Integrated marketing communications coordinates all elements of the marketing mix. Integral to this
is a five step process that profiles the target market, employs a variety of media channels to reach
the target market and delivers a consistent brand message to that target market that positively
influences consumer behaviour resulting in strong customer relationships that enhance brand equity
and ensure businesses and products are sustainable in the market place. This framework forms the
basis of this marketing report prepared for the owners of The Flying Cock hotel in Fortitude Valley,
Brisbane.
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2. Client Evaluation
2.1 Client Profile
The Flying Cock (TFC) is the current business operating at the hotel located on the corner on
Brunswick and McLachlan Streets, Fortitude Valley. Since the 1980s, the venue has had three fit
outs, all targeting significantly different markets. The current business opened in September 2014
and is owned and managed by a group of independent investors from the hospitality industry.
The current fit out has the following features:

front bar on Brunswick Street offering mainstream and crafts beers, cocktails and boutique
wines

sports bar with Foxtel sports, TAB and arcade machines

restaurant with seating capacity for 90 offering a mix of traditional and American pub food

large upstairs drinking hall open Friday and Saturday nights with live music, dance floor and
bars

industrial décor with a rustic feel.
2.2 Objectives
The owners have identified the following objectives:

Increase lunch and dinner covers

Increase café and alcohol sales during or outside meal service

Broaden customer base

Increase brand awareness

Increase bookings by either the website [email protected] or by phone (07)
3172 6109.
2.3 Internal and External Situational Analysis
TFC’s current market position was evaluated by situational analysis. This was based on a PEST
analysis focusing on external factors and a SWOT analysis highlighting both external and internal
factors affecting market position. The results are shown in Figures 1 and 2 below.
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Political:
Economic:
- The Brisbane City Council has recently
completed a $4million upgrade to Brunswick
Street Mall to improve safety and aesthetic
appeal for patrons.
- Fortitude Valley Economic Development Board
was established in 2013 consisting of local,
private-sector representatives, indicating there is
sector support for businesses in the precinct.
- There has been an Increase in commercial and
residential building approvals for Fortitude Valley
suggesting the area is undergoing economic
growth.
- There are 1847 registered businesses in the
Fortitude Valley precinct, providing economy of
scale and infrastructure that TFC can exploit.
- Increase in commerical floor space of 11% in
Fortitude Valley since 2011
- Fortitude Valley precinct has experienced
increasing employment opportunities (projected
57% increase from 2011). This indicates the
precinct is undergoing economic growth and
business acvtivity is strong.
- Fortitude Valley is Australia's first designated
"Special Entertainment Precinct" indicating
government by-laws and zoning regulations are
favourable.
- The major employment growth for this precinct
has been in the business services and retail
sectors. This could provide a potential market for
TFC daytime patronage.
- Increase in retail floor space of 8.9% in
Fortitiude Vallley since 2011
- Current state government is investigating the
implementation of a 1am lockout, due to recent
concerns about late-night safety. This further
highlights the need for a marketing strategy to
increase day-time business
Figure 1: The Flying Cock
PEST Analysis
Social:
- The local Fortitude Valley population is
characterised as well-educated, high-income
earners, no children, appartment dwellers. This
represents a strong target market.
Technological:
- The internet is creating new market places and
opportunities in the hospitality industry.
- The median age is 30.6 years, a suitable
demographic for a target market.
-Examples include the arrival of mobile devices
on the table, online reservations, social media
and new payment methods, which would appeal
to the target demographic.
- The precinct has a projected 82% population
growth over next 20 years, suggesting target
markets are viable and sustainable into the
future.
- Online review websites eg Dimi, Yelp, Urban
Spoon could be exploited by TFC and would be
read by the target market, given their age and
soico-economic status.
- The venue does has a history of "mixed" target
markets and this could lead to misperceptions of
the venue as a potential "Third Place".
- False negative and false positive reviews are
an issue in the early stages of the business
operation but would be minimised once the
reputation of the business it established with
the target market.
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Strengt
Strengths:
-The location on Brunswick Street near
Fortitude Valley Centre and high foot
traffic in the area means the venue is
geographically well placed and within the
range of travel of patrons
- The venue already has existing hotel
infrastructure from previous fit outs
meaning these costs are minimised
allowing more of the company budget to
be allocated to marketing.
Weaknesses:
- There is currently a lack of day-time "open
for business" street cues
- Low levels of interior lighting also hinder
day-time "open for business" cues and
impact on day-time aesthetic appeal.
- There is a public perception of the venue
as a destination for night-time entatainment
only.
- The venue already has high weekend
patronage which could be contacted to
help expand day-time operations.
- The venue has not fully developed its
online presence with a Facebook page only
and no designated website.
- The venue already has received positive
word of mouth reviews, as evidenced by
Facebook and Yelp ratings. This means the
market would receive day-time business
favourably.
- Parking is on-street, metred only, during
the day which may restrict the market to
foot traffic
- Elements of decor conflict with the brand
image, for example sporting memorabilia
displayed in the public bar.
Figure 2: The Flying Cock
SWOT Analysis
Opportunities:
- The outdoor alleyway space presents an
opportunity for cafe style business.
- The venue's close proximity to shopping
and cultural precincts provides potential
patrons.
- The profile of the large daytime market is
consistent with TFC's brand image.
- Given the area has high commercial and
residential growth, there is existing market
potential.
- Favourable council by-laws given venue's
location within special entertainment
precinct, provide an opportunity for
further development of hospitality
services, which the venue could exploit.
Threats:
- There are many competitng restaurants
and cafes in area.
- There is a strong market perception of
the venue having a night club only
purpose
- Contracts restrict the sales of craft beers
- Payroll expenses such as penalty rates
may impact on the company's ability to
expand its hours of operation.
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Figures 1 and 2 show substantial external advantages supporting TFC’s operations. The venue is
located in an area experiencing commercial and retail growth coupled with a changing residential
demographic towards high-income, young, urban professionals, both of which are consistent with
TFC’s image and target market. The area experiences high foot and vehicular traffic from commuters
and residents giving market exposure. Additionally, government legislation supports investment
potential. Finally hospitality generally is experiencing growth from the presence of online review
and rewards sites.
Despite these advantages, internal weaknesses are impacting on the success of TFC. Consumer
misconception and market behaviour see the venue operating primarily as a nightclub, reinforced by
lack of “open for business” cues during the day. The site’s poor daytime street appeal reinforces this
behaviour. Consequently marketing strategies have addressed internal weakness.
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3. Strategies
The marketing model outlines three strategies drawing on the Theory of Planned Behaviour (TpB),
an attitude model that links intentions and behaviour (Solomon, 2013). When integrated the
strategies give a consistent marketing message about TFC that will positively influence the behaviour
of the target market.
3.1 Strategy 1: Outdoor “Open for Business” Cues
This strategy involves the use of blackboards, mounted on the front, Brunswick Street pillars, to
display meal and beverage prices.
The blackboards act as “open for business” cues when observed by foot and vehicular traffic, raising
awareness of opening hours and potentially increasing daytime sales of drinks and lunch covers. This
strategy as it relates to TpB is shown in Figure 3 below.
Attitude
Subjective Norms
Intentions:
Behaviour:
Attend TFC
Act on intention
Percieved Behavioural Control:
Outdoor "open"
cues
Blackboards allow the consumer to
register TFC to be open and
therefore will shape intentions
FIGURE 3: TpB AS IT RELATES TO STRATEGY 1
Current “open for business” cues are poor caused by factors such as low levels of interior lighting. A
conative perception exists that the business is closed during daytime hours. As explained by the
Elaboration Likelihood Model, consumers have little motivation to evaluate messages linked to
business hours because an abundance of nearby open restaurants means they formulate
perceptions based on a peripheral route of elaboration (Behaviour Works Australia, 2012). If
individuals are conditioned to perceive blackboards as an “open” cue, this strategy would positively
shape the target market’s conative perception that they are able to attend TFC during the day.
This strategy has the added advantage of being cheap and easy to implement.
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3.2 Strategy 2: Rear Alleyway Coffee Cart
This strategy involves the installation of a mobile coffee cart with seating in the rear alleyway, off
McLachlan Street. It draws on the inner-city trend towards popular laneway cafes with an ‘edgy’
atmosphere. It could change the behaviour of TFC’s target market and would positively influence
attitudes of TFC being not only a great bar but a great café as well.
Repurpose
alleyway to
include coffee cart
Attitude:
TFC has good bevarage service
and therfore potentially good
restaurant
Intentions:
Try cafe and
restaurant
Behaviour:
Act on intention
Subjective Norms
Percieved Behavioural Control
FIGURE 4: TpB AS IT RELATES TO STRATEGY 2
As demonstrated by third place theory, individuals seek to form personal attachments to
recreational sites, such as cafes (Rosenbaum M. S., 2009). The ability of these establishments to
occupy the space of a “third place” is determined by (Rosenbaum M. , 2007):

Place dependency – ability of TFC to fulfil utilitarian needs food and drink

Place identity – third place( that is laneway) is congruent with patrons’ self-identity of being
young urban professionals with alternative tastes &

Place lifestyle – patronage to TFC would form part of patrons’ routines, particularly those
living and shopping regularly in the Fortitude Valley precinct.
Utilising the venue’s alleyway space, would create a potentially successful “third place” for the
target market.
3.3 Strategy 3: Apply a rewards program app to engage in direct online marketing
This strategy involves implementing a digital rewards program such as Rewardle©. This provides an
incentive for patrons to revisit TFC to gain rewards points and it gives the business access to social
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media, mobile phone and email contacts allowing it to undertake direct marketing with patrons
(Chitty, 2015).
Because of the universality of rewards apps there is awareness within the target market of their
potential benefits and therefore their widespread appeal. Such apps would provide TFC with social
media platforms that could be utilised to target specific customers with messages relating to
specials, events and booking opportunities. Targeted digital messages would raise awareness of
promotions that customers could take advantage of, thereby positively influencing control beliefs
which in turn will change market behaviour.
Attitude
Subjective Norms
Intentions:
Percieved Behavioural Control:
Direct marketing,
social media,
phone and email
Take advantage of
rewards
Raising awareness of deals
customers can take advantage
of such as lunch specials and
venue hire
FIGURE 5: TpB AS IT RELATES TO STRATEGY 3
Behaviour:
Return to take
advantage of
ongoing deals
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4. Budget
With a campaign budget of $10,000, the marketing proposal is calculated to last for 24 months, with
an initial outlay of $3378 and weekly costs of $250. Overall 86% of campaign funds are to be
allocated to Strategy 2, as this is the most important strategy in addressing the business objectives
outlined in Section 2. Approximately 12% of funds will be allocated to Strategy 3, direct online
marketing through the application of a rewards program and the remaining 2% of funds will be
allocated to Strategy 1, increasing the level of outdoor “open for business” cues through blackboard
signage.
A budget breakdown by strategy is shown in Tables 1 and 2 below.
Strategy 1
(Outlay Costs)
Blackboard (Standard/Mounted)
Blackboard (Frame)
Unit Cost
$
$
Strategy 2
(Outlay Costs)
Outdoor Tables
Outdoor Seats
Synthetic Grass (1x5m)
Umbrellas
Cart
Milk Fridge
# Units
20
88
Unit Cost
3
1
$/Month
$
$
# Units
$
210
$
25
$
56
$
85
$ 1,750
$
347
TABLE 1: Budget outlay for Strategy 1 and 2
Strategy 2
(Weekly Costs)
Total
60
88
Total
3
6
5
5
1
1
$
$
$
$
$
$
630
150
280
423
1,750
347
Months
Total
Coffee Machine (Secondary)
$
187
24
$ 4,487.60
Grinder (Secondary)
$
14
24
$ 329.68
Months
Total
Strategy 3
(Weekly Costs)
$/Month
Rewardle Subscription
$
49
24
TABLE 2: Monthly expenses for Strategy 2 and 3
$
1,176
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5. Media Plan
For each strategy the corresponding media plans are shown in Table 3 below.
Strategy
Mediums Used
Continuity Schedule
Strategy 1
Outdoor Signage/Posters
Continuous
Strategy 2
Outdoor Promotion (Events
Promotions)
Flighting
Strategy 3
Social Media, Mobile and Email
Pulsing
TABLE 3: Media Plan
Consistent with the aim of strategy 1, to provide consistent “open for business” cues, it can be seen
that the blackboard outdoor signage should be applied using a continuous continuity schedule, as
this will result in the greatest impact.
In applying strategy 2, TFC would have the opportunity to undertake events promotions by utilising
the mobile coffee cart to make appearances at community events such as Fortitude Valley markets,
Powerhouse Farmers’ markets and Teneriffe Festival. Consistent with the timing of such events, TFC
should apply a flighting schedule.
Through the application of Rewardle©, TFC should engage in a number of direct marketing
approaches to promote dining specials, special events such as Melbourne Cup and the opportunity
to book space for functions such as Christmas and birthday parties. Accordingly, patrons could be
targeted to receive messages based on demographic factors such as age. For example, specials
including “Happy Hour” and live music would likely appeal to individuals aged 18-25. Furthermore,
this form of direct marketing should be applied using a pulsing continuity schedule to account for
seasonal factors affecting the behaviours of patrons and therefore the relevance of each message.
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6. Timeline
The implementation stage of all 3 strategies should take place according to the following 4 phases:




Phase 1 - Initiate procurement for strategies 1 and 2
Phase 2 by the end of week 1 - complete implementation of strategy 1
Phase 3 by the end of week 6 - complete implementation of strategy 2 and initiate
procurement for strategy 3
Phase 4 by the end of week 8 - complete implementation of strategy 3
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7. Investment Evaluation
Table 1 below indicates the SMART objectives that have been determined as a result of the client’s
objectives and the strategies developed by this marketing team. The table shows that while no
single strategy is able to successfully address each of the client’s objectives, when integrated they
provide a successful marketing proposal that sets specific measureable targets that can be achieved
with realistic time frames, providing not only a return on investment but an increase in business
within two years, which is sustainable.
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Table 1


Strategies
Increase daytime outdoor
visual cues to indicate TFC is
‘open for business’. This
includes purchase of
blackboards and posters
with placement on
Brunswick Street and
improved interior lighting.
Installation of rear alleyway
coffee cart off McLachlan
Street which could also be
used off-site at other
Brisbane events
TFC objectives
 Increase lunch and dinner
covers
 Increase brand awareness



Increase café and alcohol
sales during or outside meal
service
Broaden customer base
beyond existing guests and
the local geographic market
Increase brand awareness
SMART objectives
 Increase lunch and dinner
covers by 25% over the
financial quarter with a
100% return on investment
 Increase the number of likes
on Facebook by 5%


Increase coffee sales on-site
and off-site with target
sales of 50 units per day and
the goal to break even
within the financial quarter
150 Instagram posts within
the first month
Explanation
Specific – addresses the issue of
meal covers, particularly daytime
patronage
Measureable – identifies percentage
increase desired
Achievable – realistic target set,
especially given the low cost of
outlay.
Relevant - addresses client’s specific
objectives of increased daytime
patronage and increases brand
awareness
Time bound – sets a time frame for
performance and review.
Specific – addresses the issue in
increased daytime patronage
Measureable – identifies rate of
increase
Achievable – realistic target set,
given this is a new service offered by
the venue
Relevant – addresses client’s specific
objectives of increased daytime
patronage, broader customer base
from off-site sale of coffee and
therefore increased brand
awareness
Time bound – sets a time frame for
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performance and review and costs
for coffee machine hire are spread
over 24 months (within the total
$10,000 budget)

Application of a rewards
program app to engage in
direct online marketing


Broaden customer base
beyond existing guests and
the local geographic market
Increase bookings for tables,
functions and events via
either the website
[email protected]
u or by phone (07) 3172
6109


Increase total bookings for
tables and functions by
10%over the next financial
quarter
Increase online reservations
by 25% over the next
financial quarter
Specific – addresses the issue of
online bookings and provides data
base for broadening customer base
beyond the local geographic market
Measureable – identifies realistic
rate of increase
Achievable – data base can be
targeted by office/admin staff
without going off-site and return on
investment is achievable
Relevant – addresses client’s specific
objective of broadening customer
base and increasing online bookings
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8. Conclusion
This report concludes that TFC management can successfully reach its business objectives through
an IMC framework. Through a modest expenditure on visual cues and repurposing site features, the
business can be re-positioned as a daytime café. When combined with the use of online media
platforms to influence consumer purchasing decisions, consumer behaviour will change bringing
about favourable associations with TFC brand and enhanced brand equity.
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9. References
Behaviour Works Australia. (2012). The Elaboration Likelihood Model of Pursuasion. Melbourne:
Behaviour Works Australia.
Brisbane City Council. (2014). Brisbane Inner City Investment Prospectus. Brisbane: Brisbane City
Council.
Chitty, W. L. (2015). Intergrated Marketing Communications. Melbourne: Cengage Learning
Australia.
Restaurant and Catering Australia. (2014). Competition Policy Review. Surry Hills: Restaurant and
Catering Australia.
Rosenbaum, M. (2007). A Cup of Coffee With a Dash of Love. JOURNAL OF SERVICE RESEARCH, 4359.
Rosenbaum, M. S. (2009). The Restorative Qualities of an Activity-Based, Third Place Café for
Seniors: Restoration, Social Support, and Place Attachment at Mather’s—More Than a Café.
Seniors Housing & Care Journal, 39-54.
Solomon, M. R.-B. (2013). Consumer Behaviour. Frenchs Forest: Pearson Australia Group Pty Ltd.
Vardy, M. (2012). How Technology is Changing the Restaurant Industry. Retrieved May 24, 2015,
from http://thenextweb.com/insider/2012/09/22/how-technology-changing-restaurantindustry/
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