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Executive Summary The vision of Saga is to become a company that strives to sustain the core values that created the brand Saga since the start of the business 50 years ago. Saga group currently operates cruise ships to financial services for the over ass age group, retaining these customers through loyalty plan has proven to be a good approach. The new campaign will focus on how Saga can communicate the loyalty schemes and other services to the accessible customers group. Primary study showed a general perception of Saga brand being more expensive; however it was Justified saying that
Saga provided a better holiday experience than other companies. Extensive secondary research was conducted to support the Saga venture to retain customers through loyalty scheme, and Justify the promotional methods recommended for Saga. The information used is collected from sources online, and from books, specifically the theories supporting the arguments made in the report. In this report, the marketing communication strategy identified is evaluated and analyses along with several promotional techniques using various media forms.
The brand started as a small travel business rose through the years to the success; in asses Saga introduced long-haul holidays to far reaching destinations such as Hong Kong and Singapore. In asses, the first Saga raise ship entered service through the ship “Saga Rose” and by the asses, Saga has become a vital necessity for many of the over ass in I-J. Moreover, the brand expanded through acquisitions of major assets and other products such as Saga health care along with a world-class magazine, insurance, financial products and radio stations.
Main competitions for Saga are Thomas Cook, MASC. cruises, and Virgin holidays, all offering similar products as Saga. However, Saga hold on the niche market of over ass and the ability to cater for this growing segment of customers along with decades of knowledge on meeting the over ass needs and wants will rove to be a unique selling point. The following table shows the strengths and weakness as well as the external opportunities and threats faced by Saga. The aim of the SOOT analysis is to provide us with a better understanding of how Saga has positioned itself in the market and aid us in enhancing the campaign.
Table 1: SOOT analysis Astringents Weakness Opportunities Threats Wide knowledge of industry Lack of globalization Expansion into new markets Competition Trained management Slow adaptation of technology Growing number of over ass Government regulations Loyal Customers High operational costs Diversifying estimations Taxation Data collected on customer behaviors High prices of commodity Growing number of customer sought after loyalty schemes to save money Volatile economic conditions Trained and motivated employees Range of products 1. Product Analysis Saga’s product analysis can be allocated to three categories: Insurance, Travel and Finance. The insurance sector provides over ass’s assets such as car, house, travel, and health. Travel area provides niche holidays designed specifically for over ass’s wants with thousands of destination all across the world in various forms such as hotels, resorts, and cruise ships. Saga has carried forward the cruise program started with Saga to star to three cruises currently in active services serving thousands of guests all year around ADDING RAW. Clue{{121 Saga 2014}}(Saga 2014).
This report will mainly focus on Saga holiday’s area; Saga provides holiday packages that fits for all customers’ needs and wants along with loyalty schemes to provide even further value to the customers. 1. 3 Saga Brainstorming is one of the most important triggers which allow Saga to be successful. Over a decade’s Saga gas built a very strong credible brand image through using the right strategies. Saga lady’s are branded as one of the most reputable I-J holiday companies with high customer retention rates ADDING RAW. Clue{{122 Maier,Fred 2011}}(Maier 2011).
In a survey carried out by “Which? Magazine” Saga cruises were 89% recipients of the survey has said they would use Saga holidays again and recommend it to a friend. Saga has been awarded the best cruise holidays out of 29 other holiday companies including P;O rated at 86%, Thomson at 81%, and Princess Cruises at 68% ADDING stalwartness 2011). The expansion of the saga brand into new sectors such as health care in a market where the target market of ever ass’s is on a rapid increase, within 20 years it’s predicted that the population of I-J over ass’s will have a 50%.
Saga has been creating a positive visual identity and brand awareness through strategies such as sponsorship of events. One of Sagas sponsorship includes Dragon Boat Festival at Bell Water ADDING RAW. Clue{{124 Saga 2012}}(Saga 2012). Other sponsorships by Saga are done through the charitable foundation, Saga charity trust operates across the globe supporting students in developing nations to providing financial aid to those who care elderly such as health care assistants.
Supporting the vulnerable ties in with the brand image Saga as the target market will have further emotional attachment and care towards the brand that may lead to help customer retention. 1. 4 Market Segment & Target Segment The target market for Saga is consumers who are above the age of 50 years. The market has created itself around this target segment over the year to cater for their specific needs through various segmentations such as behavioral segmentation and cryptographic segmentation.
Behavioral segmentation can be evaluated through understanding consumer’s patterns, whether they go on holiday every year at a reticular time as part of the occasion, I. E. Birthdays or wedding anniversaries, etc… From the survey carried out it’s clear that Majority of over ass proves to be south after benefits such as hassle free and luxurious holiday. Consumer behavior also aims to identify how loyalty schemes could be implemented, as, for some consumers, they are hard core loyal, and however, some switch between suppliers for a better deal.
Understanding these with those who are the frequent travelers and first time traveling along with the information on their life style would allow Saga to provide an accurate marketing for tours or packaged holidays. Cryptographic segmentation is commonly used to analyses lifestyle of consumers, their desire to travel and plans for the future. Saga aims to segment customers efficiently through their lifestyle as they can understand someone who wants more of a beach holiday than a cruise holiday. . 5 Objective & Visitation mission of Saga is to strive to continuous development to develop the core brand values and sustain the business through customer loyalty schemes which consist, trust, security, quality, and understanding the wants and needs of over ass’s. Furthermore, additional aims for the business are to be more efficient through operational development, caring for staff and customers alike, and progressive approach to creating a profitable business.
Saga prides itself for being one of the most responsible organizations in terms of customer service to recycling, the company emphasis that because its existence is to serve the needs of customers and not abuse them. There are 5 general objectives aimed by Saga: ADDING RAW. CITE{{125 Goodwill,Andrew 2010}}(Goodwill 2010) To capture the satisfaction of every employee, become one of the best companies to be part of and gain a place in Sunday Times, list of companies to work for”. Provide world class service to customers and stand. Provide tailored packages for individuals rather than assuming “one size fits all” Expansion into new markets.
Aims discussed above is achieved through empowering staff to be more innovative and imaginative in developing new products and business strategies, which will facilitate Saga to maintain and promote excellent significance through providing world-class customer service and outstanding innovative loyalty schemes. A unique approach as this will provide Saga with a much sought after competitive advantage in heavily saturated industry to retain itself as one of the prominent business player ADDING Stonewalled 2010), which could depend upon unrivalled customer satisfaction. 1. Reports Animate purpose of this report is to evaluate a new campaign for Saga Holidays, understand and Justify the market segment targeted by the firm. Moreover, the application of new marketing communication tools, as well as the implementation loyalty schemes, will be discussed in this report. This will provide the customer retention to implementation of a loyalty scheme, and plans to attract new customers. 2. Marketing Communication Strategy After exploring the Saga brand and business background, then understanding the target segment and setting out the objectives to meet the goals, new market communication strategy needs to be developed.
Marketing communication strategy is designed to be the “preferred orientation and emphasis of its communication with its customers and stakeholders, in the light of its business and marketing strategies” ADDING Charts,Fill 2005). The ideas and reason to build the loyalty scheme lead to the development of the strategy must be understood ADDING RAW. Clue{{127 Parent,D 1996}}(Parent et al. 1996); thereafter the approach should e conceptualized. The strategy should meet the requirements to reach the objectives mentioned in section 1. By using marketing elements such as promotions ADDING parent,D et al. 1996). Saga holidays can adopt Porter’s generic strategies; the company’s strengths can be divided into two groups, cost advantage and differentiations which lead to three generic states, cost leadership, differentiation, focus, and not depended on a single market. Cost leadership strategy implementation for Saga emphasizes efficient operations and the utilization of a large market share advantage ADDING RAW. Clue{{129 Valorous,Hashes 2012}}(Valorous, Birdbrain and Handbrakes 2012). T also involves low-cost actions, such as easy access web pages with new promotion images of tourist destinations. Furthermore, improve the search engine optimization, so that customers can get access to the Saga holiday packages information much easier through online. Another strategy is to use the Differentiation method, Saga currently targets a specific market of over ass’s consumer, however, developing several packages to suit over ass’s; ass’s and ass’s could prove to be important factors in the developments of Saga brand.
The advantages of evaluating the differentiation factors for Saga is that it involves high level market research and highly skilled team can make creative holiday or tour packages as this will let Saga stand apart from the competitors making it more attractive for potential customers and current customers ADDING Valorous,Hashes 2012}}(Valorous, Birdbrain and Handbrakes 2012). The final strategy is the one that is known to concentrate on narrowly defined market segments. Saga should focus on narrow segments within the over ass market to provide niche services.
Focus strategy allows Saga to compete on the basis of low cost, fermentation, and be able to quickly react to competitor moves without expending larger resources. However, to use focus strategy Saga must successfully implement low cost strategy or a differentiation strategy, if not the focus strategy will have a negative effect on Saga as firms cannot pursue focus based strategy without the differentiation or cost leadership strategies. Furthermore, to understand the marketing communication strategy Saga could use profile-positioning strategy.
Profile-positioning “focuses an organization’s communications upon the development of stakeholder relationships, corporate image and reputation” ADDING Carpenter,Mason 2010}}(Carpenter, Bauer and Reardon 2010) The marketing strategy “should build the reputation of supplying audiences who do not necessarily purchase its goods or services”. These strategies forming a credible campaign will aim to boost the sales of Saga holidays; there are many tools at the disposal of Saga to communicate these strategies with potential customers such as magazines, TV, radio, and newspaper, or direct marketing, social networks and word of mouth. . Promotional Communication Methods. 1 What methods will be used and wayfarer completing the marketing strategy, Saga needs to use communication that’s widely accepted by the target market. Methods recommended for Saga are magazine and newspaper adverts, email marketing, and sponsorship of events. Event sponsorships could be used to create a series of events to get maximized publicity among the potential consumers as all these methods of communication should serve to develop and sustain a relationship with the buyer ADDING RAW. Clue{{131 Chris,Fill 2009}}(Chris 2009).
Magazine and Newspaper advertising are one the most common ways to communicated to the accessible customers. The mass audience coverage of the Saga magazine which exists already can be utilized along with third party magazine adverts, mass media advertising could target customer at all ages that will allow the Saga brand name to be recognized by potential customers who will reach the over ass segment. The main advantage of advertising is to showcase the brand image Saga had built over the years to attract new and existing customer through price points and service quality.
Another step that works in tandem with the Newspaper and Magazine advertising is the event held by Saga to inform potential customers about the services provided by Saga. Holding the event could provide the opportunity of gain new customers and gain customers loyalty through face to face inventions, and the group of potential customers will be able to understand clearly what Saga is offering and how they can benefit from the services. Joining loyalty schemes could be a daunting task for many as its mostly complicated as often customers miss-understand the benefits and commitments they are making.
Finally, this offers Saga an opportunity to listen to the customers and improve their service as-well as providing more information on why chose to be part of Saga and how their loyal customers are rewarded. Direct marketing is last, but one of the most important lolls used to inform customers; however, the costs have been high due to the logistical challenge in the past but with technological advances and a tech as’. N. Y population could be informed through email marketing at a much cheaper cost.
Direct emailing will provide a “quick and efficient way to communicate regularly” with existing customers and those who have signed up for loyalty cards or registered interest at one of the many Saga communication portals. Direct email marketing could also “build trust and reputation, which in turn can stimulate word-of-mouth communication” ADDING Charts,Fill 2009). 3. Magazine and Newspaper advertising Recognized branding strategy for Saga is through exotic holiday locations images advertised within the Saga magazine and other mass media promotional tools such as newspapers (1. ). Newspaper adverts can be designed to take a continuous theme a from the Saga magazine, so that it creates Saga brand awareness, where customers will be able to understand its Saga whether it’s a cruise ship menu or a Newspaper advert. The advertisement will include images from vacation taken put into a collage with the Saga logo with one of the new cruise ships sailing across the blue ocean. Furthermore, the advert will inform readers regarding the event held by Saga to develop the loyalty card scheme; the advert will clearly state when and where the event will take place.
To give an estimated design preview of how the advert will look like has been created. Figure 1 -The newspaper advert Figure 1- 3. 3 Event held by Saga to develop loyalty scheme The exhibition held by Saga to develop the new loyalty scheme requires Saga to carry out certain essential planning and preparations to be successful. Clear targets should be implemented; Saga should aim to be the choice by made by people tutorial without over performing by giving out too much information through leaflets and other adverts as this could creative negative image.
The event held by Saga will be promoted through various parts of the country on the busy high streets through mobile tents branded Saga, providing them with an instant opportunity to sign up with Saga products and services. Trained and experienced staff in customer service should be at hand to run the events across the country. They should be informed explicitly every detail about the campaign so that they can answer the customer confidently knowing they are right.
Organize the area required in the city centre through local authorities. The layout of the tents should be formal and express the brand qualities of Saga through simplicity and luxury environment. 3. 4 Email marketing’s the events had been successfully ended, the data collected should be stored – emails captured should be used for email marketing purposes with the consent of those who signed up with the interest to Join the Saga loyalty scheme. Emails can be personalized and refined to meet the needs of individuals, and provide an opportunity for recipients to respond” ADDING RAW. Clue{{126 Chris,Fill 2005}}(Chris 2005). The email should include detailed information such as new holiday offers and exclusive offers offered Just for the club card members. All these information should be presented in a pleasant way using HTML designs to attract users, as this will aid Saga to communicate more effectively, therefore, raise a high profit.
Main purpose of the email marketing is to provide customers who are interested in the Saga products an up-to-date form of communication, so that they can be aware of latest offers and deals that could benefit them. The quality of the emails must be immaculate as most users tend to consider advertisement emails as Pam messages, however, personalized, and high quality content could prevent this to a certain extend. 3. 5 Cost identification Marketing activities to develop the new loyalty schemes and vacation packages for Saga could be expensive and may have a direct impact on the cash flows of the business.
The cost identification carried out in this report will attempt to estimate and assume some values for newspaper, magazine, direct email marketing and events held for marketing campaign as some of the key figures are only known by Saga and partner organizations. All the estimated costs are shown in “Appendix 1”. To carry out the promotion campaign over 10 weeks, an estimated figure of IEEE,OHO of capital has been allocated. First, the newspaper adverts with careful consideration and utilizing in-house IT teams and designers to create an advert for the in house magazine and the newspaper could prove to effective cost cutting.
The newspapers adverts will be published in “The Daily Mail” and “The Guardian”, the estimated rate card cost for a quarter of a page advert is El 1,500 (Fill 2009, p. 485). The Guardian costs are estimated for 50% of the page with color advert will cost around EIA,OHO ADDING Guardian 2011), The strategy to use the newspaper advert to attract readers on the events being held across the country by Saga in their local cities and town high streets.
The events being held across the country will have varied costs depending on the rent charged by the local authorities for the plot used in the town or city centre ADDING Davies,Gary 2014}} (Davies 2014). Estimated costs for furniture and tents, along with staff salaries and other indirect costs that Saga should account for to hold events across the country should be considered. Charges for a “tent, table, sofas, waste disposal, logistics middling and 500 watt outlet” will cost around EH,865 ADDING Nabisco 2014}}(Nabisco 2014). 4.
Scheduling Saga should plan every detail of this campaign; a summary of dates will be added to the appendix section of this report (Appendix 2). Research and evaluation of the campaign idea could start on April 14th, 2014, which provides Saga marketing team 22 days to plan and organize the initial research findings, which needs to present to the board of directors by 21st May 2014. Once the campaign has received the authorization from the directors, the marketing team can start to discuss and design he materials using the in-house designers used for the already existing Saga magazine.
Most large companies use a traffic controller system to keep the project staying on track by reaching each goal within a set time frame. Saga could start to agree with new papers to publish the advertisements and also by 25th of August 2014, marketing team should start to approach targeted areas local authorities to get approval for setting up tents in the city centre as it is more than possible that getting approval from local authorities proves to be time consuming and Saga team must comply with stringent health and safety regulations..
By the end of August 2013, preparations for the event will be underway and by 10th of March events will be held across the country. By 20th of March 201 5, Saga can use the emails collected from the events to initiate the direct email marketing campaign. Finally, by 15th April 201 5, in-depth evaluation and feedback must be submitted to the board of directors from the initial outcome of the program and by 20th January 2016 full detailed evaluation must be submitted to the board of directors to see how the event affected the sales and loyalty card membership rates. 5. Control & Evaluation of Campaign
The tools used within post-testing include “inquiry, recall, recognition and sales based tests”. Saga could use the recognition test; it’s a test based on the ability of the respondent to remember the information given to them through the advertisement, and this provides Saga the necessary feedback on how easily people can remember the advert and link it to Saga holidays. Constructed advertisements should be reviewed after publication, for that recipient of the advert must be evaluated when they have used the Saga services directly or indirectly due to the advert to understand how the advertisement had affected them.
The final evaluation will be carried out by assessing the sales volume and profitability of the equines, as this will provide the marketing team a clear indication whether the marketing campaign has attracted more customers and brought further revenue to the business. The most important advantage of evaluating and controlling the campaign is that the information learned from this campaign can be used to create other new campaigns in the future for Saga holidays, as this provides a chance to improve on the implementation of marketing strategies the likely hood of successfully achieving the goals will increase. 6. Conclusion and Limitations. Conclusion To conclude, Saga is a one of the biggest service provider for the over ass in UK and currently from the evaluations carried out through this report understands that it’s the market leader for over ass market segment. However, there are other competition in the market who are targeting wider age group of customers, as mentioned in the study many thought Saga holiday prices are perceived as higher due to this, customers tend to leave Saga and shop around to find better deals, on the other hand, it was Justified as the quality of the services provided by Saga proved to be higher quality than cheaper alternatives.
The new campaign started to retain and attract new customers through loyalty plan was created to address the problems identified above. The implementation a loyalty scheme could help the business retain customers through giving them loyalty points (Appendix 2). The marketing team budgets is estimated based on the profits records published from 2013 for Saga group, the allocated IEEE,OHO will pose budget constraints on the marketing team, though if allocated funds are used efficiently the campaign will be successful. Saga organization can make the business more efficient through other channels and achieve their objectives I. . Venturing into new markets such as developing countries in Asia with limited capital investment as the firm already have knowledge of the operations of the business through the UK and this move could provide the company with much higher revenue. 6. 2 Limitations Budget review is planned to use estimated figures; these figures are at best assumptions based on the 2013 profits released by Saga group. Moreover, future investment guarantees are not possible as advertising agencies, newspapers or local authority charges may vary depending on many factors that are unpredictable.
A aerogram designed to keep the campaign on track may also prove to be irrelevant in some aspects as if mistakes are made the whole program may need to be redrawn; this will lead to wasting resources and funds invested in the campaign. The report mainly focuses on England; a study carried out in a small sample size where majority of samples came from one or two parks of the country, this could affect the public perception of Saga brand as Saga brand was initially setup in southern England where the sampling was taken place, it could be argued that samples could have been biased as its one of the main local employer and economic status symbol.