Advertising and Promotion Management: A case study of Lurpak
Butter
Executive Summary
The advent of the new century found companies facing unprecedented
competition for the attention of customers. It also created a huge challenge
for marketing communication creative teams who have to create breakthrough
messages that will not get lost in the media explosion of the 21st century. The
problem is that the more messages that appear, the less effective they are.
Overwhelmed consumers often respond by avoiding advertisements and other
marketing communication. The creatives’ challenge is to create clutter-busting
messages that engage and involve and touch the hearts and minds of the
audience. The ads accomplish this by delivering messages that people want to
watch, hear, and read. As clutter continues to increase and people take more of
the message control into their own hands, the creative stakes get higher. As
rofessor Karen Mallia explains: “Words and pictures—those are the weapons the
creative team uses to produce communication that breaks through indifference
and inattention.” (Sandra Moriarty et al., 2012)
Lurpak is a Danish brand of butter owned by the
Danish Dairy Board. It is sold in over 80 countries worldwide and is best
known for its distinctive silver packaging and logo which is based on the 'Lur-' an ancient musical
instrument (Lurpak, 2013). It is one of
the most successful brands in the Uk and the European FMCG market which could
be traced basically to its different successful campaigns and ads over the
years with distinctive messages. It ads and commercials are a visual feast to
the eyes, through strategic integration of fresh ideas, entertainment and
mouth-watering inspiration (Lurpak, 2013).
Having conquered the
European market, it is thought in this course work that it would be appropriate
that Lurpak butter expands and grows its market share and position outside the European
market.
The aim and objective
of this course work therefore is to propose a product launch in west Africa
(Nigeria to be precise), to suggest and construct an effective advertising and
promotion campaign for the Lurpak brand as related to the practices and current
trend in the global market; since we know that nearly everyone in the modern world is influenced to
some degree by advertising and other forms of promotion. As concluded by Belch
and Belch, 2003, Organizations in both the private and public sectors have
learned that the ability to communicate effectively and efficiently with their
target audiences is critical to their success. Advertising and other types of
promotional messages are used to sell products and services, and ultimately, to
earn a market share and position (George E.
Belch & Michael A. Belch, 2003). It is in this sense that this
course work aims to identify the right market as well as the audience of this
campaign and as such, to design an advertisement for the Lurpak brand targeted
at this audience to be implemented via TV and relevant and related media.
- Promotion campaign to improve sales and win a market share for Lurpak butter
For over a
century, Lurpak has set the standards for consistently high quality and
superior taste. Lurpak has precise system of quality control; arguably one of
the most rigorous in the world, and has constantly evolved and improved since
the nineteenth century. It is a premium and one of the most popular butter
brands in the UK FMCG market (since 1901). Lurpak butter is judged on
consistency, taste, texture and packaging. (Lurpak,
2013)
Winning new territories
and markets is to a very great extent a
function of effective marketing communication
which in overall is the purpose of advertising and promotion management
(as a tool in this context). This in essence is the continuous interaction
between the buyer and seller in a given market. It is thus, any gesture or act
that helps to attract buyers and satisfy their needs (Chunawalla, 2008).
Advertising and
promotion however are an integral part of our social and economic systems. In our
complex society, advertising has evolved into a vital communications system for
both consumers and businesses. The ability of advertising and other promotional
methods to deliver carefully prepared messages to target audiences has given
them a major role in the marketing programs of most organizations (George E. Belch & Michael A. Belch, 2003).
The
main objective of advertising and promoting products is to attract the
attention of customers and subsequently persuade them to purchase from our
business. It is a way of communicating the benefits of our products to our
target audience. (SmallBizConnect, 2013)
The
Campaign
The major
objective of advertising and promotion management is to construct an
advertising and promotion campaign for a brand and implementing it via various
marketing channels. This however is not without the understanding of the right
media to reach the target audience, the message and the eventual evaluation of
the campaign.
Media Research: Media planning begins with consumer research and questions about
media behavior that would help with the media selection decision. Media
planners would often have to work in conjunction with the information account
planners uncover to decide which media formats make the most sense to
accomplish the objectives. The goal is to activate consumer interest by
reaching them through some medium that engages their interest. In this campaign
however, bearing in mind that the Lurpak butter is a fast moving consumer good
and therefore targets not just any segment in particular, but every household,
every one that shops for quality, convenience, value and at reasonable price,
our aim will be to reach each and every of these audiences through the fastest,
easiest and the cheapest meant in the appropriate media according to the
current trend.
In the media research,
we will gather
information about all the possible media and marketing communication tools that
might be used in the campaign to deliver our messages. We will then match that
information to these target audiences.
Message Development Research: In this phase, planners, account managers, and people on
the creative team begin to develop a message strategy; they would involve
themselves in various types of informal and formal message development research, which makes it therefore appropriate to get and read all
of the relevant information to become better informed about the brand, the
company, the competition, the media, and the product category. As Jackie
Boulter, head of planning at the London-based Abbott Mead Vickers-BBDO agency,
explained, “Creative development research is focused on refining message ideas
prior to production. It uses qualitative research to predict if the idea will
solve the business problem and achieve the objectives”.
Another technique used to analyze the meaning of communication is semiotic analysis, which is a
way to take apart the signs and symbols in a message to uncover layers and types
of meanings. The objective would then be to find deeper meanings in the
symbolism that might be particular to diverse groups of consumers. Its focus is
on ascertaining the
meanings, even if they are not apparent or highly symbolic, that might relate
to consumer motivations. For example, the advertising that launched General
Motors’ OnStar global positioning system (GPS) used a Batman theme. By looking
at this ad as related to its signs and symbols, it was possible to ascertain if
the obvious, as well as hidden, meanings of the message are on strategy.
Product life cycle.
For
such a new product brand in an entirely new territory, the appropriate strategy
in its already existing market is the build strategy, in which it tries to have
a market position and a share of the market (Hollensen,
2003). The two ways by which this can be achieved are by the initial introduction
of the butter brand to the market through the already existing (butter and
margarine) consumers and by winning new and potential consumers. The first
strategy means persuading the existing consumers to start using the new butter
brand, perhaps by replacing an indirect competitor. The second strategy takes
business directly from competitors through possible strategic focus on market
penetration/ expansion, new users/ new uses, product innovation, promotional innovation,
penetration pricing and eventually taking a market position and market share. (Jobber, 2010)
2. Current trend in advertising and
promotion
As ‘The Economist’ in recent times
reported: “Basic consumer goods have been long assumed to be more or less
recession-proof. Shoppers may not be able to pay for Dior dresses or Cartier
watches, went the argument, but they still need tissue papers, toothpaste and
detergent. Yet people are finding ways to save money even on daily necessities.
They are shopping less and with more definite intention. Some people purposely
pick up a basket rather than collect a trolley in supermarkets, to prevent
themselves from buying too much. Some buy smaller packets, which are cheaper,
or huge ones, with greater and better value. Many would not even buy air
fresheners, hair conditioner and other fripperies once thought essential. Many
search the internet for special deals. More so, consumers increasingly expect
multi-channel access to FMCG brands, driving a need for companies to spend on
technology and scale a steep learning curve to understand how new marketing
methods build on customer engagement.
(Xchanging, 2012)
It is in this background however that the
evolution of digital media in general and social networks in particular for the
marketing of FMCG brands is both impressive and instructive as a complement to
the traditional practice of marketing communication (which is the use of other different
marketing tools to create awareness and in utmost, to maintain a good brand
position and market share). The Internet Advertising Bureau (IABUK) reported in
October 2011 that UK online ad expend had gone up by 13.5% driven by an
upwelling in FMCG advertising and a triple-digit rise in online video.
These remarkable figures are given further
framework by a report in the FT that stated: “Display advertising was the
best performer within the sector, with industry experts saying that customers
in the fast-moving consumer goods market had learnt that video advertising on
the internet, particularly through social media websites, could be a more
cost-effective way of reaching consumers.”
The shift to these media illustrates a new
emphasis on buyer engagement: by providing messages contents that consumers
choose to share, FMCG brands are getting the right to word of mouth advertising
(always the most efficient kind) improved on a huge scale. (Xchanging, 2012).
More so, the
reason these social networking sites are so attractive to marketers is that
they engage the power of friendship-based influnce. Because of these
relationships, members are more likely to respond to messages on the sites,
including ads, if they are effective at becoming part of the social contex. These
social media relationships offer opportunities for marketing communication messages,
particularly as people serve as viral marketing agents to take advantage of the
social relationships these people have with their networks of friends.
(Chunawalla, 2008).
Creating a mode however for this campaign as related to the trend observed
above, Lurpak would design commercial contents available on the internet as
well as social networking sites to inform consumer about the product as well as
delibrate messages placed on third party websites including search engines and
directories available through internet access. In this sence, Lurpak would be
providing an internet based process of communication by constantly interacting
and persuading online users in order to position its brand, which allows her to
promote both consumer awareness and preference in a customized and personalized
way, and to decrease the time needed to make a buying decision. (Payam Hanafizadeh et al., 2012)
However, more than just creating ads on social networks, there are other
modes of online communication that are worth exploring, these modes would be
for the same purpose of building the Lurpak brand, earning a market share and
following the current marketing communication trend. They include:
The Website site: Sometimes called a home page, a website is the company’s online face it
present to the public and a gateway to an organisation. The website is a
communication tool that blurs the distinction between marketing communication
forms, such as advertising, direct marketing, and public relations. This in
other words is actually like an online corporate brochre and as well could
function as an online catalog for the the Lurpak brand (Chunawalla, 2008). The
website would also be an information resource with a seachable library of
stories and data about the company’s products, product categories, and related
topics. It could as well deliver sales. The absolute and critical function of
the website would be to create a brand and organisational identity and generate
the brand position.
E-mail communication: one of the features and advantages of e-mail advertising is that it not
expensive. All it takes is a list of e-mail addresses, a computer and an
internet connection. Some users log on and off and check messages in busts,
while some users like instant messaging, facebook and twitter are these days
always online which has changed the function as well as speed of online
connection. E-mail provides a constant stream of information.
3.
The
advertisement script.
This is a script of a video ad suitable for TV
and internet display.
As the day begins to break and the sun starts to
rise, at a certain part of a town, it looks like it going to be a beautiful
bright day.
A man in his mid twenties looks like he is
getting ready for work and the day’s activities, he is going to be dressing
smart in suit and tie, but this time he is not completely dressed yet as he
already has his pant and shirt on, but his tie is not properly knot yet to fit
round the collar of his shirt. He stands before the gas cooker, obviously going
to make himself breakfast as he starts frying using an unlabeled butter. In
just moment, he has come up with a seemingly nice looking fried egg and just
ready to have a nice meal.
At another part of the town, a male professional
bread baker seems to be on top his game for the day as he sets for the baking
of the days. He’d done all his mixing perfectly with the right measure of
sugar, the appropriate measure of flour and every other ingredients needed
for a good loaf that is perfect
consumption but with an unbranded butter. In no time the result of his effort
seem to be out of the oven. It looks just nice enough to compensate for a hard
work he had done to put a loaf on the table
In another house, in the same neighborhood, a
lady in her mid thirties has her apron on in her kitchen mixing cake and
cookies recipes. She is going to bake cakes and make cookies, and like the
professional bread baker, she has got all the right measures of all the baking
recipes, but again she has used an unlabeled butter, and just as usual, the
results of her efforts also came out. She has brought them out and dressed them
appropriately on the table, ready to be served.
In another apartment of the same community, a
mother is making breakfast ready for her little five year old and putting are
lunch pack together for school. It seem like she is frying stuffs, mixing and
adding ingredients together but with an unlabeled butter brand. A lovely
breakfast it seems its going to be, as the little adorable stretches in bed to
wake up to a beautiful day and get set for school.
At this same time, a man in his joggers’ wear
seems to have just finished his morning run/exercise and has returned home to
have a bite of toast bread. As the slices of the bread springs up from the
toast machine, he picks them up and slowly spreads some form of an unlabeled
butter brand on them and sets himself ready to eat.
At these points in all the scene, there is a
sudden pause, and the rising sun starts to go down, the bright shining morning
suddenly starts to become cloudy, stormy and windy; the morning has just
changed from being bright and sunny to a gloomy atmosphere. There and then, all
the meals that these five people from different parts of the community had
prepared with the unbranded and unlabeled butter brands start to turn out to be
a form of disaster or the other. The young man that had fried eggs for
breakfast suddenly realized that the fried egg had started changing in colour
to what seem like purple. The loafs of bread on the baker’s table had started
cracking like it was some forms of weak bricks and the baked cakes and cookies
started melting away like some forms of grease placed on fire. The fries in the
frying pan of the mother of the five year old had also just caught fire and the
sports man’s first bite of the toast bread had seem like a bite on a plank of
wood. At this point, we can hear some sound of rain and some lightening flash,
followed by cool calm manly voice saying ‘a day could be a disaster without a
good start’.
After all of the scenes and the sound of the
voice, there is fast rewind of all that has happened in all of the scenes to
the very beginning where the sun begins to rise to light up a beautiful day,
and then there is a repeat of all of the actions, but this time, at the point
where they all have to use or add butter to what they cook, they all use Lurpak
butter and get perfect results and lovely breakfasts. They all get out to the
bright sun shining day; and at the end it is concluded that ‘a bright day
starts with Lurpak’.
In the script, I have decided to use these
characters to further support the fact that the target audience is actually
everyone from all works of life and to identify with the different possible
segments. The first character represents the working class and probably
relating to the youth, while the bread baker represents professionals in the
pastry market. Every single activity and persons as described in the script is
to strategically identify with all the categories of consumer and the uses of
butter as a product.
4.
Evaluation.
A careful advertiser will attempt to measure the
extent to which a particular advertising campaign achieves communication
objectives, and evaluation as suggested by Bendixen 1993 usually takes the form
either qualitative or quantitative marketing research (Bendixen, 1993). In most instances, the earlier stages of communication
are assessed via intermediary variables, e.g:
Stages Variables
Awareness Impact, recall
Comprehension Interpretation
of message, difficulty in understanding perceived image
Conviction Credibility,
alienation, familiarity.
This type of
research is often supplemented with questions about the consumers’ intention to
purchase the advertised brand or product. As such the actual sales of the
product, or surrogate variables such as market share, may be regarded as the
only true reflection of the behaviour stage of the communication process. Thus,
advertising effectiveness measurement and evaluation is concerned with the
quantitative description and interpretation of the advertising sales response function.
In addition, the evaluation of advertising effectiveness relates to long term
rather than to specific campaigns.
Evaluation Issues
While it is simple
to clarify what is to be measured when studying advertising effectiveness, the
quantification of the relationship, between advertising and sales for instance,
seems likely to be fraught with problems despite the formidable arsenal of
statistical techniques available to the modern analyst. The following is a list
of the most apparent problems which may be encountered.
1. The relationship can be expected to be of a complex
form involving lag structures in the presence of auto-correlation both in the
dependent (sales) and the independent variables (advertising expenditure).
2. Advertising expenditure is but on of many micro and
macro-economic variables which may influence sales.
3. The possibility of reverse causality is a real one,
i.e. advertising expenditure may influence sales, but sales levels may in turn
influence the level of advertising expenditure.
4. Other macro-economic effects, such as the business
cycle or inflation, may dominate the behaviour of the variables being under
evaluation. At one extreme this may result in conditions of spurious
independence.
5. Advertising may be used for tactical marketing gains.
Individual advertising campaigns may thus be short lived and possibly out of
character with the mainstream of communication effort directed at the product.
This may result in a dynamically unstable relationship between advertising and
sales.
6. Different advertising media may be used for different
tactical and strategic reasons. Also, the relative importance and significance
of the various media may change with time. Thus, changes in media mix may
result in changes in the structural relationship between advertising and sales
over time. (Bendixen, 1993)
As regarding the
Lurpak campaign however, up to here, this is what I have come up with as a
result of findings and suggestions as limited to my knowledge, and information
available to me. I can not therefore state at this point how good or how
successful the campaign would be until the concepts go to an advertising agent
for further reviews.
Conclusion
This course work has been able to propose an
advertising and promotion campaign for the Lurpak butter brand launch in
Nigeria- West Africa. I have also been able to ascertain the purpose of this
campaign been to construct an advertising concept targeted at the identified
audience and reaching them (the audience) through the appropriate means
(media).
This course work identifies the current global
marketing trend- the internet and social media form of marketing- of which I
have made a script that would fit into this trend and could also be used as a
TV ad.
The evaluation of this thought and concept
however, as I have concluded earlier is totally left to an advertising agent,
to review and certify it suitable for an introduction (or build) stage in a
product life cycle.
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