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One of Lid’s main purposes in their campaign is they want to appeal to middle Britain by refurbishing and building new stores and closing those that does not fit its new image, as it was stated in the case that “hoping customers will be pleasantly surprised and come back for more”. This new market segment Allied would be attracting would be partially from their competitors as stated by the regional managing director “Tests customers are high on the Allied target list and the new store has been designed with this CLC/CO customer demographic in mind”.
In addition Lid’s aiming aims at planning on retaining their current customer base with their discount offer and tagging “Spend a Little Live a Lot”. Another main purpose of Lid’s campaign is to start getting things right, something that they haven’t been able to do in the past decade. Transforming the appearance of the displays, by improving the range and quality of the store layout, design and decor. The main intention of Lid’s campaign is that they hope to target a new market, I. E. The CLC/CO customers, aligned with this is the intention is the fact that Allied wants to double its present market share from 2. , they can achieve this by taking away some of the customers from their competitors. For example in Trinidad Participate has taken away market share from the other major retailers in the supermarket at Participate; this is the identical objective that Allied is trying to achieve in the I-J. Updated layout, design and dcord would assist Allied in promoting a new quality image, hoping that the customers would be pleasantly surprised and as a result produce return business. As seen in the case where aspirations and exotic foods are located next to each other as these products complement each other.
Another intention of Lid’s campaign is to continue with its discounting philosophy so that while the company’s image has improved, loyal customers that make up their present market share would continue to shop at Allied knowing that they are getting best value for their moneys worth. In addition main reason for the introduction of the campaign is for Allied to successfully shift its customer profile as stated in the case “by the increasing number of 4 x as in our car parks. ” This actually shows that the campaign is showing that the CLC/CO customers are being attracted by Allied promotional aiming.
Allied intends to create greater variety for its customers as they have extended their range of fresh produce, increasing the alcohol lines thus giving customers a wide variety of products to choose. Change the old German philosophy is another intention of Lid’s campaign where from basic designs, poor locations and branding Allied has changed the color, increased the signage, lowered shelving so that products are better displayed and the layout of the store has changed so that customers can easily navigate their way through the store.
Also Allied intends to create aster turnover at the cashiers by incorporating extended Barbados and as a result this reduces time customers have to wait to pay for their goods. Marketing Communication Methods Used By ALLIED Allied used three main marketing communication methods seen in Fig. 1. 1 . These included Advertising, Corporate Identity and Sales Promotion. Advertising according to Cole (1996, IPPP) ‘is the process of communicating persuasive information about a product to target markets by means of the written and spoken word and by visual material. The basic framework and concepts of advertising are mainly to perform arresting research, specify the goals of communication, develop the most effective message for the market segment selected, selecting effective media (newspapers, television and outdoor posters), compose and secure a budget, execute the campaign advertising campaign that included; “an-above-the-line TV campaign complemented by outdoor poster activity and newspaper advertising.
Potential customers are being made aware of what Allied has to offer these customers are targeted in different ways as some may read newspapers only others may only look at television or both the newspaper and television. Another form of advertising undertaken by Allied is the use of posters that are strategically placed as close to the target market as possible so that they can become aware of Lid’s new quality image change. Allied worked on conquering its target market by changing the design of the store “gone is the dark boxy exterior in favor of glass and aluminum… He stark white interior has been replaced with a warmer beige tone, signage is much clearer, sightlines have been improved… Fresh produce ranges have increased, alcohol lines have been extended… The store layout is simple efficient and easy to navigate which keeps prices low’, for example the incorporation of extended Barbados that minimizes delays and ensures a minimum number of customers at the cashiers at any one time.
In addition those stores that do not fit the high quality image of Allied would be closed, Allied is also looking to expand its outlets to the target market (CLC /CO customers) by either looking to acquire an existing business or purchasing land to set up especially in the south east of the I-J. “Sales Promotions are marketing activities that stimulate consumer purchases and improves middlemen or retailer effectiveness and co-operation” as dated by Cetera & Graham (2002, IPPP). These are usually short-term efforts directed to the consumer or retailer to achieve such specifics as to induce purchase, trial, etc.
Types of sales promotion may include; in store demonstrations, samples, coupons, gifts, discounts, contests, twin pack bargains, point-of purchase displays, etc. Sales Promotion was also part of Lid’s marketing communication mix as although their image change to a higher quality one management continued with its discount philosophy. As stated in the case this strategy is a risky one especially when trying to argot market customers, however from the example of the Rugby store it is likely to be a success.
In addition Allied invited ‘The Grocer’ a magazine that carry information about developments taking place in this retail industry to the opening of its new store in Rugby. This in itself was a vital communication method used by Allied, now all those who subscribe to ‘The Grocer’ would know all the development that Allied has undertaken. 2. Segment of Consumer Market Allied is Seeking to Attract The segment of the consumer market that Allied is seeking to attract is the CLC/CO customers and those Just above and below them.
The ‘class system’ in the UK must be understood here as it indicates the range of individuals and their income and spending patterns. CLC customers are those set of individuals that looks for value for their money and also the best option of potential products before they actually make a purchase. CO customers consist of the working class people, I. E. Individuals who shop around before making their choice. Allied may also wish to attract customers that are Just above and Just below this CLC /CO group because some of these individuals may have the identical spending pattern as the CLC /CO. Attention group and positioning the company strategically.
The market here is segmented based on social class, therefore the target is the working class. Probably the most effective way of reaching this target market is through direct mail. This is where mails are sent directly to specific persons, it is usually customized to appeal to the addressed individual, messages are usually up-to-date and the message can be changed depending on the persons response. Allied can select its target market and send information through mails informing both repeat and potential customers what hey have to offer and also to keep them informed of new products they may received from time to time.
This is a cost efficient method of informing individuals what is being offered as it eliminates the wastage of resources. In addition when the target market that includes teachers, nurses etc receive direct emails, these individuals feel a sense of importance as letters are addressed to them and regard Allied as a company that has great consideration for customers. Advertising through the different medias such as the television, newspaper and posters is another way in which Allied can reach their potential market.
However this is a more general promotional tool as everyone is being made aware of Allied and what it has to offer once they see the advertisement. This can work to attract customers who are not really the prime target for Allied, for example Lid’s target market is the working class people however because of the large advertisement campaign some customers from the other groups both of higher and lower social class would also purchase items from Allied. Improving corporate identity is another way where Allied has communicated the changes associated with targeting this working class segment of the market.
A Meany’s image is important in attracting customers and Allied has realized this by changing the basic designs to an updated one with aluminum and glass, changing layouts and displaying products better with more appropriate lighting and in general making the tore easy to navigate that would assist customers in knowing exactly where they can get particular items. This method of marketing communication is a good one because previously the target market would have probably said that because of the image Allied portrayed it was unattractive but now as this change is made it is appealing to this working class segment of the market.
Public relations or Publicity is another way in which Allied can attract its target market. This method is where Allied can sponsor activities and events, showing the public that the company is interested in the development of the community. For example Allied can sponsor a local youth football club within the community where mostly the working class children is involved, the segment would say to themselves since Allied is supporting their kids and the local community they would support Allied by shopping in their store. These proposed marketing communication elements discussed above, shown in Fig 1. Re very effective ways for Allied to reach its segment once it is used properly. Proposed Integrated Marketing Communication Wheel for Allied- Fig. 1. 2 activities stated in the case is displayed with the main objectives to capture the customers awareness, interest, desire, trial and adoption. The poster invites customers to be aware of the company, how it has developed and in addition what Allied has to offer customers. The poster indicates that Allied have created a more customer friendly shopping environment, a wider variety of products in comparison to before, new design and lay out of the displays and some of the products being offered at Allied.
Its intention is also for customers to rate internet in Allied, hoping that they would visit the store and be presently surprised. It also creates desire for customers to want to go and visit Allied and get all their needs fulfilled in a one-stop shop. Together with this the poster urges first time customers to come into Allied and see what they have to offer, customers who shop at the competitors are been invited to experience bigger and better shopping after this has taken place then they would make Allied their shopping centre rather than one of the competitors, when they visit
Allied they would now adopt this store as their main centre for shopping. 4. Alternative Marketing Communication Methods – Allied There are other marketing communication methods that Allied could have used such as Direct Marketing which includes direct mail, telemarketing the internet, publicity that includes sponsorship (see Fig. 1. 4) besides those indicated such as corporate identity, sales promotion, advertising through television newspapers and posters. These are designed especially to inform the target market of the product being offered and entice them to buy.
Direct Marketing is where the message is incommunicado directly to the potential buyer. Forms of direct marketing may include, direct mail, telemarketing, Internet marketing. These messages are usually addressed and these messages can be changes according to the individual’s response. Firstly Allied can use direct mail, this is where mails are sent directly to specific persons, it is usually customized to appeal to the addressed individual, messages are usually up- to-date and the message can be changed depending on the persons response.
In addition when the target market receive direct mails, these individuals feel a sense of importance as letters are addressed to them and regard Allied as a company that has great consideration for customers. Allied can also send information through mails informing both repeat and potential customers what they have to offer and also to keep them informed of new products they may received from time to time.
Telemarketing is also another effective market communication method that Allied could have used in making persons aware of the new offering of Allied, through information via the telephone where potential customers are made aware of what is on offer, here questions can be answered and you get more realistic feedback. Information via the internet is becoming more popular within recent times, here Allied can send newsletters to their customers through e mails informing them what’s on offer, product information, prices and also information to customers that may include new products that Allied receive.
All these are cost efficient methods of informing individuals what is being offered as it eliminates the wastage of resources and keeps individuals abreast of what is taking place in Allied. Publicity according to Kettle (2003, IPPP) can be defined as “a variety of programs designed to promote or protect a company’s image or it’s products. Here good relationships are created with the press and other media to assist the organization communicate messages to their customers and the general public.
Sponsorship is part of publicity; it is where events in the arts and sports are commonly used by many organizations, as they finance a local activity in the community. This method is where Allied can sponsor activities and events, showing the public that the company is interested in the development of the community. For example Allied can sponsor a local youth football club within the community where mostly the working class children is involved, the segment would ay to themselves since Allied is supporting their kids and the local community they would support Allied by shopping in their store.
These alternative marketing communication methods discussed above can be seen in Fig. 1. 4, where a combination all these methods would prove to be very successful for Allied. Alternative Marketing Communication Wheel – Fig. 1. 4 Lid’s The Marketing Mix considers Price, Product, Place, Promotion, Physical Evidence, Packaging, People, Processes, and Profit. The changes Allied are making in the marketing mix are mainly to attract the target market, I. . The CLC/CO customers. In order to do so Allied has made some changes in the elements of the marketing mix as discussed below, all this really ties back with the fact that they want to attract and retain the market customers and also retain their existing customers. Price is a key in the marketing mix for Allied, although their intention is to go market and target the CLC /CO customers they have not abandoned their discount philosophy.
This is an excellent strategy, as with the changes they are making in the marketing mix Allied would be ahead of their competitors as their price would be lower as they choose trainees to keep their cost down. In addition to this and as stated in the case Allied would be offering customers many non-food specials on cleaning, electrical goods and tools. The products are also important in the marketing mix as Allied has increased the range of fresh produce from 150 lines five years ago to 240 lines at present.
In addition to this the alcohol lines has increased from 20 lines to 33 lines. At Allied you can get almost anything from plasma TV’s to cement mixers. This in itself shows the wide variety and range of products that Allied is offering its customers. Allied s also looking to expand its locations as stated in the case “Rugby is the first of more than 200 stores Allied plans to develop in the next five years. ” By Allied doing this it really mean that customers have easy access to their stores, they would not have to travel far to shop in an Allied store.
Distribution network is important in the marketing mix as it builds the company’s name in that anywhere you go in the I-J you would know of Allied, what products they offer and their name would continue to grow. Promotion may no be as important when going market because price is not really matter, forever Allied has insisted that although their target market is the CLC /CO customers they are not abandoning their discount philosophy. This would definitely give them an advantage over their competitors as Tests and Salisbury will not offer this discount to their market.
Allied can also include in their sales promotion strategy a combination bargain especially those aspirations foods, for example they can offer a combination of two bottles of Pinot Giorgio wine and a smoked salmon at a special price. They can have contests whereby every month a customer wins a cruise or a hopping spree at Allied, all these little promotional strategies add value to the organization. Physical Evidence is another aspect where Allied have been working on tremendously, this can be seen by the changes they are making to the store interior and exterior.
Allied is changing the exterior of the building to a more up-to-date structure using more aluminum and glass, they are also adding color and lighting to the interior, increasing the range and variety of products being offered and also better displaying the products by having taller shelves to the perimeter of the building. Allied has also made the store easier to navigate with clear signage and the wait at the tills is less than before. This truly shows the attempt Allied is making in trying to going market, as stated in the case when you enter you will be pleasantly surprised and come back for more.
Packaging is an important element in the your product. Packaging needs to be attractive so that the potential customers can be aware and take notice of the particular product being displayed. All that is mentioned in the case about packaging is that “Allied has incorporated extended bar codes in the packaging of our own lines. The processes in which Allied carries about its operation is also key. They are customer focused because they are making all these changes to satisfy the customers and make them come back.
Customer friendly personnel should be hired so that customers would be satisfied. People in the organization should possess one culture from the managers to the employees. They should be customer friendly as it is the customers that can make or break any company, not forgetting the main focus is to attract and retain customers and the employees in the company should realize that. Allied intends to achieve a doubling of TTS market share thus increasing its profits by this move market.
It is the profit that ensures whether it is fruitful for Allied to continue and apparently it is because they are increasing the number of new stores, refurbishing existing ones and closing those that do not suit its new image. In addition to all these elements that Allied have worked on successfully it is recommended that they should also implement a Public Relations personnel to have them in the media frequently in a positive way so that all the elements they are working on can be highlighted and customers can know what developments Allied is making to better serve them.