Premium Coles Jewellery: The Profit Margins
Situation and Endeavour
Premium Coles Jewellery has experienced a decline in profit margins. The main cause of decline in profit margins is the constant price wars in the industry. Additionally, Premium Coles Jewellery is a new brand in the country. However, customers have associated it with higher prices even though this is not the case. The company seeks to present itself to the market. It aims at increasing the number of clients, and profit margins.
The marketing campaign will take a period of six months. It will begin in January 2013 and end in June 2013. The period between February and June will form the climax of the campaign.
The target market of the campaign will be women of ages between 26 and 49 years. Additionally, it will target women who live in Victoria, Australia. The focus will be on women with low to moderate monthly income and live in this area. Secondary target of the campaign will be men, youths and the rich. The second objective is to build a strong brand recognition. The company aims at ensuring that the public and target market becomes aware of its existence (Burgess 2012, pp. 1). Moreover, it aims at ensuring that the public and target market have a positive association with it. This will allow it to increase sales, and dismiss the impression that it charges higher prices. Finally, Premium Coles Jewellery hopes to increase sales by 30%. This is to be attained by the end of campaign period in June 2013.
Campaign Budget and Creative Plan
The entire campaign will cost the company AUD 500,000. The company will execute the promotion through outdoor media and store marketing.
Billboards will enable exponential popularity of Premium Coles Jewellery. Billboards enable fast detection of jewellery sold by the company since they can be placed at strategic places in Victoria (Bibaco 2012, pp. 1). Additionally, they certainly supplement the secondary market exposures. It will take AUD 250,000 to set up all the required billboards. A medium size billboard that measures 6 meters by 3 meters will cost the company AUD 1300 to produce. A large billboard of sides 12.66 and 3.35 meters will cost the company AUD 2300 (POA 2012, pp. 1). The prices include goods and services tax. The medium size billboard will be set inside shopping centres while the large billboards will be set on the main road. The billboards will be set up in January and will remain in place until June. Residents of Victoria can easily spot them.
Banners will provide critical brand awareness of Premium Coles Jewellery. Banners are clear and precise in their demographic selectivity (Clow & Baack 2012, pp. 85). Thus, they will allow the company to hit the target market easily. Additionally, banners provide geographic selectivity needed to reach all regions of Victoria. Designing and distribution of banners in Victoria will take AUD 175,000 of the overall campaign budget. Each banner will cost AUD 375. Banners will be used from March to June 2013. They are attractive and appealing to eyes, hence effective.
Shopping Cart and Receipt Marketing
These will enable Premium Coles Jewellery to make announcements of events coming up in the future. Additionally, they enable the company to notify customers about discount offers on revisit to the stores and during festive days in Victoria (Cunningham 2012, pp. 1). The method ensures that existing customers continue to buy from the firm. Printing of information about offers on receipts and shopping carts will cost AUD 75,000. It will cost the company AUD 20 to print this information on each receipt. Furthermore, the company will pay AUD 50 daily per store for adverts made on shopping carts. The AUD 50 paid will cover 30 shopping carts. These methods will be used during the entire campaign period. They provide critical information to buyers in Victoria.
Bibaco, G 2012, How to write an integrated marketing communications plan, Web.
Burgess, M 2012, Integrated Marketing Communications Brochure, Web.
Clow, K & Baack, D 2012. Integrated Advertising, Promotion and Marketing Communications, Pearson College, UK.
Cunningham, C 2012, Integrated marketing communications: Top 7 steps for developing a marketing communications plan, Web.
POA 2012, What Do Billboards Cost? Web.