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.
Table of 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
Objectives and Research Themes
This report aims to develop a comprehensive marketing communications strategy and loyalty scheme concept for Saga Holidays, specifically targeting the over-50s demographic to enhance customer retention and brand engagement.
- Analysis of the competitive UK travel market landscape.
- Segmentation of the target audience into distinct psychographic groups (Silver Surfers, Empty Nesters, Single/Divorced/Widowed).
- Proposal of the "Saga One" customer-focused loyalty scheme centered on exclusivity, experience, and simplicity.
- Development of an integrated communications mix using the DRIP framework.
- Budgeting and scheduling of a 12-month campaign to ensure effective market penetration.
Excerpt from the Book
5.2 – Loyalty Scheme Outline
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.
How its works? Saga One is designed to be the most simplistic loyalty scheme within the travel market. It’s free to join and all existing customers on Saga’s database will be invited to join the scheme, hassle free.
Once the customers are registered they will receive confirmation by post or email. This will contain a unique membership number, which can be shared by a couple or passed on to family members. Further to this customers will be given a personal login and password which will allow them to access their account online or via the smartphone application as seen below in Figure 6.
Customers can collect a ‘Saga Point’ for every £1 spent on Saga Holidays. The more spent, the more points, it’s simple. The more point’s collected will allow the customer to reach Bronze, Silver, Gold and Platinum within the tiered system as displayed in Appendix O. Each tier has a number of benefits which the customer is entitled to receive. Best of all each tier offers choice; customers can choose what they want. For example Gold membership offers a choice of experiences such as a free sport coaching lessons or a beach massage. Ultimately the loyalty is all about experiences tailored to what the customers want.
Summary of Chapters
1. Executive Summary: Provides an overview of the Saga Group and introduces the proposal for the "Saga One" loyalty scheme along with the intended communication plan.
2. Report Outline: Details the structure of the report and the specific focus areas of each upcoming section.
3. Analysis of the UK Travel Market: Examines the current state of the UK tourism industry, Saga's market position, and utilizes a perception map and SWOT analysis to identify strategic opportunities and threats.
4. Segmentation and Target Segments: Outlines the primary and secondary research used to identify and profile three key customer segments within the over-50s market.
5. Saga Loyalty Scheme Proposal: Introduces the "Saga One" scheme, detailing its core themes, operational mechanics, and its unique selling proposition.
6. Objectives: Defines the qualitative and quantitative goals for the corporate strategy, marketing, and communication efforts.
7. Communications Strategy: Explains the strategic approach using the DRIP framework and the "3P's" to effectively target the audience.
8. Communications Mix: Describes the specific channels and tactics, including internet, advertising, and public relations, used to promote the scheme.
9. Budget Outline: Presents the financial breakdown of the marketing campaign costs over a 12-month period.
10. Scheduling: Provides a timeline of marketing activities using a Gantt chart to manage 'pulse' and 'dip' spending.
11. Control of campaign: Details pre-testing outcomes and the methods used to measure campaign effectiveness against set objectives.
Keywords
Saga Holidays, Loyalty Scheme, Marketing Communications, Over-50s Market, Segmentation, DRIP Framework, Customer Retention, Brand Emotion, Silver Surfers, Empty Nesters, Travel Industry, Brand Loyalty, Integrated Marketing, Consumer Engagement, Saga One.
Frequently Asked Questions
What is the primary focus of this report?
The report focuses on creating a marketing communications strategy and a loyalty scheme proposal specifically for Saga Holidays to improve engagement with customers aged 50 and over.
What are the central themes of the proposed loyalty scheme?
The loyalty scheme, named "Saga One," is built upon three central pillars: Exclusivity, Experiences, and Simplicity.
What is the core objective of the "Saga One" campaign?
The primary goal is to achieve a 50% membership uptake among existing customers within 12 months of the program's launch and to enhance brand loyalty through a "bonding" experience.
What research methodology was employed?
The report utilizes primary research, including a 10-question survey distributed via online communities, supplemented by secondary data from industry reports and economic analysis.
What does the communications mix consist of?
The communications mix comprises a blend of above-the-line and below-the-line methods, including direct mail, email marketing, newspaper advertising, social media promotion, and public relations.
Which key performance indicators define the project's success?
Success is measured against specific qualitative and quantitative objectives, such as brand awareness rates of 80% and the achievement of a simplistic, experience-oriented user interface.
How is the "Saga One" budget distributed?
The £70,000 budget is primarily allocated to advertising (over 90%), with additional funds dedicated to internet promotion and PR activities, strategically spread over 12 months.
Why are "Silver Surfers" considered a target segment?
Silver Surfers are identified as a key segment due to the rising trend of internet usage among people over 50, providing Saga with an opportunity to communicate via digital channels.
What role does the DRIP framework play in the strategy?
The DRIP framework (Differentiate, Reinforce, Inform, Persuade) is used to structure the communication objectives and ensure that the loyalty scheme is effectively explained and positioned in the market.
How is the effectiveness of the campaign controlled?
Effectiveness is monitored by comparing actual performance against the established corporate, marketing, and communication objectives, supported by feedback gathered during pre-testing phases.
- 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
