Marketing Communications Report. Communications Strategy with Budget and Timings Plan

A Report Outlining a Marketing Communications Campaign for Saga Holidays and its Potential Customer Loyalty Scheme


Project Report, 2014
42 Pages, Grade: 1st Class / 77%

Excerpt

Contents

1. Executive Summary

2. Report Outline

3. Analysis of the UK Travel Market
3.1 – The UK Tourism Market
3.2 – Value and Volume of UK Travel Market
3.3 – Overview of Saga Holidays
3.4 – Perception Map of UK Travel Market
3.5 - Advertising Spending
3.6 – SWOT Analysis of Saga Holidays

4. Segmentation and Target Segments
4.1 – Primary Research Methodology
4.2 – Demographic
4.3 – Psychographic
4.4 – Geographic
4.5 – Targeting and Positioning

5. Saga Loyalty Scheme Proposal
5.1 – Influences
5.2 – Loyalty Scheme Outline
5.3 – USP
5.4 – Branding

6. Objectives
6.1 Corporate objectives
6.2 Marketing objectives
6.3 Marketing communication objectives

7. Communications Strategy
7.1 DRIP Elements of marketing communications
7.2 Positioning
7.3 The 3P’s of marketing communications strategy
7.4 The importance of Internet Strategies
7.5 Strategic Balance

8. Communications Mix
8.1 – Loyalty Trends
8.2 – Communication Overview
8.3 - Communication Methods
8.4 – Internet
8.5 – Advertising
8.6 – Public Relations/Radio

9. Budget Outline
9.1 Budget Outline

10. Scheduling

11. Control of campaign
11.1 – Recommendations based on Pre-test
11.2 – Effectiveness Indicators
11.3 – Objectives Evaluation

References

Appendices

1. Executive Summary

The Saga Group is the UK’s leading provider of products and services targeted to people aged 50 and above. These include insurance, personal finance, the 7th most read paid for magazine in the UK (Press Gazette, 2013) and holidays. Saga Holidays is exploring a loyalty scheme proposal and the report provides a concept and comprehensive communications plan.

The report provides a contextual analysis of the UK travel industry and outlines that Saga offers holidays which are focused on value and quality. This is supported with a perception map which highlights how there are a number of competitors within the all-inclusive segment. Following this is a SWOT analysis outlining the internal capabilities and the external options of Saga Holidays. Based on primary research with 50 respondents and secondary sources the segmentation of the target customers has identified 3 groups who the loyalty scheme should be targeted at.

The Saga One loyalty card rewards the customer with what they want. Saga One is a customer focused loyalty scheme offering exclusivity, experiences and most importantly simplicity. The strategy suggested is over a 12-month period and in total has 6 objectives that it will seek to achieve by applying the DRIP framework and pull strategies. Based on the strategic analysis the communications mix uses a combination of above and below the line methods. The scheme will be communicated using Sagas well-established channels and advertising, the report presents pre tested concepts in Appendix P.

The Saga One loyalty scheme has three key themes of Exclusivity, Experience and Simplicity, these fit into the ‘Wow’ trend of loyalty. The key segments are targeted using a combination of Internet, Advertising and Public Relations to provide the most effective coverage within the budget set.

Finally the report provides a full budget and Gantt chart for the 12 months of communicating the loyalty scheme. In order to use the time effectively, the majority of activities are ‘dip’ related in order to keep customers aware of the loyalty scheme and what it represents.

2. Report Outline

Section 3 will provide an overview of Saga Holidays focusing on its position in comparison to its competitors in the UK travel market. This overview will form a guide for the loyalty scheme proposal and support recommendations for Saga Holidays marketing communications strategy. Section 4 will focus on the segmentation, targeting and positioning of Saga Holidays, using multi-variable segmentation allowing the loyalty scheme proposal to complement the target segments. Section 5 will provide an overview of the proposed loyalty scheme for Saga Holidays. It will explain how the scheme works by outlining its unique selling proposition, explaining the branding concepts and highlighting the key influences from existing loyalty schemes. Section 6 will outline the objectives and the aims of the proposed loyalty scheme. These objectives will be qualitative and quantitative, providing a short and long term outcome proposal linked to the financial budget and timescales set. Section 7 will focus on the marketing communications strategy. This will be comprehensive and use concepts and frameworks, allowing theory to be applied to the business case of Saga Holidays. Section 8 outlines the communications mix that will be used for the proposed loyalty scheme. This will highlight how the use of above and below the line communications will be effective in conveying the key messages to the targeted segments. Section 9 provides a summary of the costs for distribution of marketing communication messages and justifies the pattern of spending. Section 10 outlines how the budget is used over the period of the campaign, using a Gantt chart. Section 11 will outline how the campaign can be measured in regards to the effectiveness for instance, the proposed channels of communication using pre-tested communications to the target segments. This will finalise the report drawing together the key content and recommendations for Saga Holidays in regards to the proposed loyalty scheme.

Visual Framework of Outline

(Fill, 2013, p. 161)

3. Analysis of the UK Travel Market

3.1 – The UK Tourism Market

The tourism market is one of the largest industries in the UK economy, it’s described as “a leading tourism industry on a European and global level” (Key Note, 2010, p. 18). Despite being affected by the recession in 2008, it continues to grow, supported by three trends (Key Note, 2010):

1. UK and global economic climate - Appendix B
2. Market-specific factors such as low-cost air travel and the popularity of personally organised holidays – Appendix C
3. Growth of easy access to online tourism websites – Appendix D

The UK tourism market has an estimated value of £127 billion, equivalent to 9% of the UK’s GDP (Visit Britain, 2013). In 2013, the travel market contributed significantly to the UK’s economic activity, this is displayed in Appendix E. Saga Holidays operates within the UK tourism industry and competes within two segments; the domestic market (travel by UK residents within the UK) and the outbound market (travel by UK residents travelling abroad).

3.2 – Value and Volume of UK Travel Market

illustration not visible in this excerpt

Figure 1 – Year on Year Value of UK Travel Market (Deloitte, 2013)

illustration not visible in this excerpt

Figure 2 – Year on Year Volume of UK Travel Market (Office of National Statistics, 2012)

3.3 – Overview of Saga Holidays

The Saga Group is the UK’s leading provider of products and services targeted to people aged 50 and above. These include insurance, personal finance, the 7th most read paid for magazine in the UK (Press Gazette, 2013) and holidays. The Saga Group is a subsidiary of Acromas Holdings Ltd, a private equity company that was formed in 2007 when the Saga Group and the Automobile Association (AA) merged (Financial Times, 2007).

Sidney de Haan founded Saga Holidays in 1951 (Saga, 2014). In 2013 it had a turnover of £353.3m (Acromas Holdings Ltd, 2013) demonstrating how its relationship with the over 50’s has proved financially successful. Saga Holidays offers holidays that are focused on value and quality, its target market is the ABC1 consumer group of the market. The exclusive range of products reflects this; for example its 2015 brochure advertises a ‘VIP Service’ as standard, highlighted in Appendix A.

3.4 – Perception Map of UK Travel Market

illustration not visible in this excerpt

Figure 3

(Which, 2013) (The Guradian , 2014) (The Telegraph, 2013)

The perception map in Figure 3 has been generated using secondary resources. It allows the position of Saga Holidays to be visualised, and highlights how there are a number of large competitors within the all-inclusive segment in the UK.

3.5 - Advertising Spending

Figure 4 – Media Advertising Spending by Travel Operators in 2011

(Key Note, 2012)

illustration not visible in this excerpt

Figure 4 supports the perception map in demonstrating Saga Holidays main competitors. This is highlighted by the value of the media advertising spent in 2011, with Saga accounting for £2.262 million.

The statistics outline a potential limitation for the loyalty schemes proposed budget of £70,000.

3.6 – SWOT Analysis of Saga Holidays

4. Segmentation and Target Segments

4.1 – Primary Research Methodology

In order to gain an insight into Saga’s target market, conducting primary was important. Using first-hand generated data allows the information to be specific to Saga Holidays and up to date. Although, one of the limitations faced was the time restrictions and budget, the 50 responses provided an insight, allowing a developed multi-variable segmentation. Appendix I displays the 10 question survey that was distributed using online community groups and blogs that over 50’s used, such as The WI (National Federation of Women's Institutes) Facebook group (Facebook, 2014).

The multi-variable segmentation also required the use of secondary research, which allows consistent trends to be highlighted adding to the reliability of the primary research (Hollensen, 2011). For example the survey suggested that participants aged 50 and above would be influenced to book a holiday if they were members of a loyalty scheme that offered them exclusive discounts; Appendix N provides a snapshot of the raw data.

Segmentation is necessary; a single product will not meet all the needs of a mass-market industry such as travel. Furthermore a company has limited resources such as a budget and therefore needs to pick only the most appropriate segments (Beane & Ennis, 1987).

4.2 – Demographic

4.3 – Psychographic

Within the demographic profile there are 3 psychographic profiles:

Silver Surfers – These are interested in the latest technology; they are users of the internet and will seek to embrace new products and services that incorporate this (The Guardian, 2013).

Empty Nesters – Couples with double incomes and no children or the children may have left for university or work. They have more time and money to spend on new experiences; they value quality and want holidays offering extra.

Single/Divorced/Widowed – Individuals, who live alone with a high disposable income, view holidays as the opportunity to meet new people. Open up to new experiences and see this part of their lives as the most important.

(Tourism Intelligence International , 2010)

4.4 – Geographic

illustration not visible in this excerpt

Figure 4 – Geographic Locations of ABC1 Adults in 2012

(Key Note , 2013)

The geographic segmentation of Saga Holidays suggests that its customers are most likely to live in the South East (17.7%), Greater London (16.9%) and North West (11.0%).

[...]

Excerpt out of 42 pages

Details

Title
Marketing Communications Report. Communications Strategy with Budget and Timings Plan
Subtitle
A Report Outlining a Marketing Communications Campaign for Saga Holidays and its Potential Customer Loyalty Scheme
College
University of Kent  (Kent Business School)
Course
Business Administration (Marketing)
Grade
1st Class / 77%
Author
Year
2014
Pages
42
Catalog Number
V299404
ISBN (eBook)
9783656969877
ISBN (Book)
9783656969884
File size
1579 KB
Language
English
Tags
Marketing, Communications, Saga, Plan, SWOT, Report
Quote paper
Luke Gipson (Author), 2014, Marketing Communications Report. Communications Strategy with Budget and Timings Plan, Munich, GRIN Verlag, https://www.grin.com/document/299404

Comments

  • No comments yet.
Read the ebook
Title: Marketing Communications Report. Communications Strategy with Budget and Timings Plan


Upload papers

Your term paper / thesis:

- Publication as eBook and book
- High royalties for the sales
- Completely free - with ISBN
- It only takes five minutes
- Every paper finds readers

Publish now - it's free