Assessment 2 – MKT20021 – IMC Plan

THE
RED
BALLOON

~ The candy bar of childhood ~

Ta Thi Huong Giang – 102953575

Truong Thi Thanh Hien - 102953669
Vu Thu Trang - 102953795
Doan Thuy Duong - 102954031
Executive summary 

This report proposes an integrated marketing communication strategy suitable for the Red
Balloon - a traditional candy manufacturing company in Australia. This company is now
targeting the online business market and tends to completely digitize its main source of income.
The Red Balloon has its own social network with more than 1000 followers and has many stores
in 3 different countries. Especially their products are very popular because handmade candies are
very sustainable, high quality, claimed to be gluten-free, cruelty-free, which is in line with
modern society's trend of pursuing sustainable development. This is an outstanding strength of
the company.

This campaign, called "the Creation", was created with the purpose of conveying the company's
message and core value to potential customers online, specifically the Millenial customer group.
This customer group is the leader in the digital transformation trend and is the most potential
customer group because they spend the most time shopping online. Based on the research and
data analysis results, there are 3 objectives of digital marketing that the company needs to
achieve:

 - Gain 3000 followers on Instagram within 4 months

- Gain 500 new followers on the Facebook page within 3 months

- Attract 120 new online customers within 4 months

To do this, the company needs to run ads on a series of social networking platforms such as
Facebook, Instagram for 4 months. In addition, a number of offline events will also be held, such
as the "Recreate your childhood happiness" event that will be held every month, making full use
of the company's local reputation. Not only that, all posters, promotional videos for these events
(both online and offline), and social media posts will focus on emphasizing the importance of the
existing core values that the company holds to society as well as its particularity. In addition, the
presence of influencers in advertising is indispensable. Gifts sent privately or sponsor money to
advertise the company's products online can create an important stepping stone for the
development and attract new customers to the company in the future.
Table of Contents

Executive summary.................................................................................................................1

Table of contents.....................................................................................................................3

Introduction............................................................................................................................4

Situation Analysis...................................................................................................................4

External environment................................................................................................................4

Swot analysis..............................................................................................................................6

Target market.........................................................................................................................8

Persona:......................................................................................................................................9

Communications Objectives..................................................................................................11

Marketing Mix strategy.........................................................................................................12

IMC Strategy............................................................................................................................12

Creative Strategy.....................................................................................................................14

Media strategy and Budget.....................................................................................................17

Evaluation and control measure............................................................................................18

Conclusion............................................................................................................................20

References............................................................................................................................21

Appendix...............................................................................................................................25
Introduction
The purpose of this report is to improve the integrated marketing communication of the Red
Balloon - an Australian company. Due to the Covid-19 epidemic, this company decided to
completely switch to the online candy business market. This research paper is a summary of the
possibilities most beneficial to the company in achieving this goal. Through research and data
analysis, the strengths and weaknesses of the company based on both external and internal
environment, the budget, media, IMC strategy plans have been proposed in this document. It
highlights the company's competitive advantage over its main customer group, Millenials, and
their behavior, thereby creating a tailored plan to expand targeted customer segmentation and
turn them into potential customers. This will minimize the possibility of company failure and
help stabilize the customer group before and after completely switching to online business.

Situation Analysis 

External environment
External environmental elements are significant because they can have a direct and indirect
impact on business operations, employees, and income. The external environment of a company
changes regularly in ways that are beyond the organization's control, but executives and
managers may watch these changes and mitigate their effects. The PEST framework will be used
to analyze external environment factors that may affect the growth opportunities of the Red
Balloon business in Australia.

Political The sugar consumption of each Australian citizen has reached the top 10
countries in the world with a consumption of up to 16grams a day, exceeding
the permitted level (Das 2018). This makes Australia's obesity rate up to two-
thirds of the total population (Australian Cancer Council 2021). This has raised
alarm bells and calls for Australia to add a sugar tax to raise the price of sugar
and limit its use. Specifically, the government's plan will increase $0.4 per
 100grams of sugar (Martin 2022). This will increase the price of the candy in
particular and reduce customer interest in the product.

Economic Although Australia's economy has survived very well during the Covid-19
epidemic, the recovery process will be very difficult. Specifically, the growth
rate of GDP and average wages of Australians are very low based on OECD
standards (Karp 2021). Domestic production and consumption have been
greatly affected when Australia has not yet made specific innovations towards
green development, leading to the fact that 96% of production activities still
depend on fossil fuels; which was inflated many times due to the influence of
the Ukraine war (Australia 2014). In addition, China - a major source of
Australian manufactured goods has applied strict policies in epidemic
prevention, seriously affecting the shipping progress and prices of items
(Australian Trade and Investment Commission 2019).

Technology Technological developments and a preference for handmade products are

becoming more common in Australia. This has led to an explosion of
technological innovations in handicrafts, helping to overcome the shortcomings
of this field: faster, more productive (artshub-au 2016). In addition, social
media streaming tools are becoming popular, such as ASMR candy making in
Australia, which is an opportunity to promote marketing and a new source of
income for small and medium businesses (Pellot 2020).

Sociocultural The key customer requirements for general items in Australia are convenience,
speed, and customized (Daronkola 2017). However, with the development of
technology and the interest in ethics, environmental, etc. Australian customers
appear to have turned towards handmade products although these are likely to
be more expensive and lead to longer lead times (University of South Australia
2019). Because these products are more sustainable because they use less
machinery and materials from fossil fuels unlike other mass-production plants
(Harita Kapur 2020). This can be a big competitive advantage for the Red
Balloon.
Swot analysis
Target market 
Since 2017, 29% of Australians are Millennials, whose ages ranged from 23 to 42 (Syed et al.
2017). The society describes them as lazy, narcissistic, and value individualism, yet they also
said Millenials are confident, open-minded, liberal, upbeat. Although gen Y emphasizes extrinsic
values such as money and self-image and is more civically and politically disengaged, compared
to gen X, they do care about equality and self-expression (Main 2017). This group is reported to
have a remarkable contribution to LGBT rights; additionally, 52% of organic consumers are
Millennials (Patel 2017), and 40% are reducing meat and fish consumption (Deloitte 2020).
These are for animals' welfare and health; notably, among generations, gen Y are the people with
the healthiest lifestyle (Buchholz 2019).
Millennials seriously believe they have a mission to impact the world positively; sometimes,
their do-gooding hearts exceed their budgets. Therefore, Chatzopoulou & Kiewiet (2020) refer to
them as the Ethical generation. To Gen Y, it is not just about purchasing but making life
statements. Researchers notice the significant demands for CSR initiatives within brands and
desire brands to substantiate ethicality. They believe businesses need to contribute to society and
updating results and process is the company's duty to gain trust. Since Millenials do not show
tolerance to unethical practices, it is an opportunity and strength of Red Balloon to reach this
group with the vegan and cruelty-free path. Yet, they merit authenticity and hidden motivation of
business; thus, they will leave if they find out nasty motives (Chatzopoulou & Kiewiet 2020)

Suzanne (2021) insists that brands focus on the Gen Y market due to their purchasing behavior.
While Candy Artisans are transforming to online shopping, they should know that Gen Y is
addicted to social media and has the highest online shopping frequency (Hinton 2021 & Contevo
2018). Especially Australian Millennials who admitted to being more anxious than global
Millennials if they cannot check social media for a day (Deloitte 2019). Furthermore, Suzanne
added (2021), Millenials are incredibly loyal if brands produce something they can rely on; they
are attracted by candy with a nice appearance, unusual, super-flavourful, and long-lasting.
Because Gen Y values individualism, they are more likely to respond to the variety, of
customized products of Candy Artisans. 

Customer Persona:
Communications Objectives 
The overall objective is to increase brand awareness as well as increase the number of online
customers for The Red Balloon Candy Artisans brand, the proposed communications campaign
should be able to approach and engage with the brand’s target audience which is Millennials
effectively. Thus, SMART framework will be utilized for setting proper communications
objectives for Artisans Candy. 
Marketing Mix strategy

IMC Strategy 

Event 

Taking advantage of the brand that Artisans Candy is a self-made candy shop, usually people
tend to be drawn to the process of making candy with colorful elements and flavors, thus the
proposed strategy here is to host an event monthly that will engage the attendees with the process
of making candies, this will bring the excitement for the attendees as well as potential customers
while they experience in-person the showcase of the handcrafted and handmade skills of making
candies. 

In order to promote the event, the brand should combine PR, social media, and Influencers
strategies to make the best out of it. Prior to the event, the brand can produce content such as an
announcement post, press release and distribute it on different channels and social networks to
raise awareness about the event and attract customers to the event. Along with that, the brand can
also collaborate with influencers to use their networks and their influence to reach a wider target
audience.

Social media 

Social media has always been a vital role in marketing activity. The image of the brand is shown
through its social pages. In order to build a strong brand image, it is important that all social
media sites of the brand should be kept active and relevant to the target segment. The tactics and
content directions should be developed based on Artisans Candy's core values and identities to
communicate properly to the target customers the values that the brand brings. Social content
should be posted daily to maintain engagement with customers and keep the reaction rate at a
positive level. A proposed content direction is: “Artisans Candy uses vegan, cruelty-free, dairy-
free, and gluten-free ingredients to make healthy sweets” because healthy and vegan candies is
one of the core values of the brand. 
Influencer

In this day and age, with the proliferation of the Internet, celebrities play an important role in the
brand's marketing activities in terms of reaching potential audiences. By choosing suitable
influencers for the brand and using their influence of them properly, Artisans Candy can target
and reach potential customers successfully as well as expand brand awareness. As a homemade
candy store, Artisans Candy should choose influencers who are vegan, concerned about the
health, and have children since they are suitable for the brand’s target market and segment. They
can share content created by the brand, ensuring content highlighting Artisans Candy's logo and
products, the brand also can send them gift boxes on special occasions so influencers can share it
on their social media.

Advertising 

Two tactics of advertising to propose are advertising through flyers and advertising on social
media. The first one is to create a poster of Artisans Candy which includes the basic information
and brand features with a creative layout and positive colors showing that The Red Balloon
Candy Artisans is a very joyful candy store that values natural and vegan products. The flyers
can be pasted on schools, shopping malls, festivals, places where the brand's target segment is
likely to come. The second tactic is advertising on social media, with special posts such as event
announcements, new product launches, etc, it is beneficial for the brand to run ads on these posts,
because, unlike regular posts, when running ads, it allows brands to reach and attract potential
customers without having to follow the page which helps the brand to spread its image and
awareness wider, have more and more potential customers.

Creative Strategy 

The creative strategy serves as a set of guidelines and steps, enabling advertising and content to
be aligned around a foundation that emphasizes not only the campaign's objectives but also the
overall message that will communicate with the target segment. 
Overarching positioning statement 

This campaign is providing an approach to attract the target segment of Artisans Candy which is
Millennials as well as build strong awareness for the brand by offering new potential customers a
chance to experience the creation of making candies. 

Unique selling point 

The campaign should focus on delivering the unique value of the brand which is to help adults to
rediscover the joy of childhood memories with vegan and customized candies. In order to
approach and engage the Millennials effectively then make them become potential customers,
the content should concentrate on emotion which is bringing back childhood memories, and
highlighting Artisans Candy’s difference from competitors which is customization and vegan
products.

Communications message

In order to reach the target audience's emotion and insight, emotive language must be used in the
message. Below is the message that could be used for the brand: 

“Re-create your childhood happiness". This message is created with action, emotive and
imagery words, it reminds the target audience of memories and joys from childhood. With this
message, after reading it, the target audience will have a sense that they can have a chance to
experience their childhood joy from the past. 

Big idea

Nowadays, people are usually busy with daily worries about work and life, they tend to
reminisce about old good memories from their childhood, and it is undoubtedly true that when
we were little if someone gave us candies, they would make our day brighter than ever. In
empathy with this insight, The Red Balloon Candy Artisans offers the adults the opportunity to
re-create the joyful memories from their childhood by hosting an event that allows them to make
and personalize their own candies. 

Execution

1. The event will be promoted on Facebook fan page and Instagram of Artisans Candy to
raise awareness and attract target audience.
2. Collaborate with Influencers to spread awareness by sharing information about the event.
3. Partner with local publications to raise brand awareness and target a wider segment. 
4. Put flyers in shopping malls to reach to the target audience
5. Encourage the attendees to use hashtags of the brand and campaign for tracking data,
sharing pictures and creating a trend. 

Implementation plan

The phases of launching the event are as follows: 

Media strategy and Budget
Events, Social media, Influencers, and Advertising were chosen as the most suitable method of
transmitting the creative strategy, as well as building brand awareness and the number of online
customers, allowing The Red Balloon Candy Artisans brand to reach a wider range of customers
in the Millennials group, letting them expand their business in the industry landscape. The
campaign will last for four months. Furthermore, because of the campaign's unspecified budget,
each medium has been assigned a different schedule to best achieve the demographic
segmentation appropriate to it (Arent, Weigold & Arens 2011, pp. 292;330).

Hosting monthly events will bring The Red Balloon closer to its selected client segmentation via
an experiential marketing activity. This strategy is consistent with Millennials' penchant for
connecting with businesses using customers' experiences instead of a classic means of marketing
(Kercher 2017). Moreover, by utilizing people's tendency to be drawn to the process of making
candy with colorful elements and flavors (Spence & Velasco 2018), the brand can temporarily
erase the user's working tension and bring them back to a moment of innocence, by recapturing
the joyful sense of childlike wonder. In addition, making candy directly in front of customers
also helps ease concerns related to food safety. Through these events, The Red Balloon can
attract many new customers, as well as merit authenticity and develop a better image for the
firm. During these events, customers will have a chance to experience the creation of making
candies. Plus, the company will give out free candy to those who check-in, to increase interaction
and also as a way to promote the brand.

Advertisements for events will be distributed by flyers and posters, which is an excellent way to
promote an event on short notice, conveying crucial news to those needed to know right away.
Furthermore, flyers and posters are a low-cost approach to disseminating a business message
because they involve no printing or distribution charges (Solopress 2019).

The digital approach featured Facebook and Instagram, which are Millennials' preferred social
media platforms, and the most favored media for individuals aged 18 to 39. (Yellow 2018).
DeCesare (2013) and Similarweb (2018) indicated that Facebook is the third most-viewed SNS
in Australia, with 83 percent of citizens browsing over 5 times a day. This medium will enable
advertising to target categories determined by relevant user metrics, ensuring the Millennials are
targeted. Establishing a connection between consumers and the brand via social media aids in the
development of brand loyalty, which encourages word-of-mouth support of the Red Balloon
within crews.  Social media advertising will be constant in order to keep top-of-mind customer
memory, increase touchpoint engagement, and create brand loyalty and favorability. (Lamb et.
al. 2016, pp. 216-217).

Influencer marketing is reported to be popular among Millennials owing to its perceived

transparency and reliability in comparison to standard marketing (Arnold 2018). The strength of
their individuals and their influence on Millennial choice making, particularly encouraging the
option to support or follow the business, is the rationale for this media choice. A recommended
promotional activity is inviting influencers to join in the event organized by The Red Balloon, let
them make candy, preferably hand-made ones, broadcast the process, and then give away the
sweet items made by these influencers to their fans.

‌Media plan and budget allocation:

Evaluation and control measure 

Many elements have contributed to the success of the Re-creation campaign. The 4-month
campaign is only a short-term success; key considerations are how its result impacts the
overarching objectives. The project attracts Millenials and raises brand awareness by offering a
customer co-creation service, which has a significant impact on gaining the trust, satisfaction of
buyers (Grissemann & Stokburger-Sauer 2012)

The campaign will cost around $10,000; more than 50% of the expenditure is for advertising,
specifically social media, as presented in the chart above. The marketing team set the objectives
of gaining 3000 more followers on Instagram and 500 more on Facebook within four months.
These numbers are measurable by utilizing the Facebook or Instagram analyzing tools. For
instance, paid post-performance specifications consist of total people reached, post clicks,
impressions; but the tool also divides the total reach and an impressive number of organic
and paid ones. The analytic tool will use the data collected from users' metrics categorized as
hobbies, activities, clicks, or personal information to pop up commercials only for the target
customer, Millennials. Additionally, the event held every month evaluates through the number of
reach and engagement in the announcement post or the registration number via the online
invitation attached to the post. 

Besides social media, Red Balloon also promotes campaigns or other events through posters and
flyers. While social media calculate the number of reaches, engagements, or impressions, the
number is transparent and easy to follow. Nevertheless, traditional ways like poster and flyer
tracking systems are vaguer and chiefly for brand awareness or invitations (VMG 2019); unless
using the online flyers, which have the same measurement method. Therefore, to measure the
responses, Candy Artisans shall print a coupon code on the paper, which the audience only
needs to take pictures on their phone and show to the employees for gifts.

The Re-creation campaign includes a monthly event that allows people to watch the store
creating candy directly. The event's success shall manifest through the number of goods sold
each day, along with differences in sales before and after the event for one week. Furthermore,
it is better to generate a survey with a thank-you email to customers asking how they feel about
the event, their pre and post-event impression of the brand, and whether they are likely to buy
from Red Balloon or have bought any product yet? 

The last marketing strategy is using influencers; by identifying a celebrity with a shared vision
with the brand and target audience, they shall appear in the event or share Red Balloon products
on social media. A brand can calculate the variation from regular posts to analyze the impact,
comparing posts with celebrity pictures, hashtags, and tags. It works the same with invitees'
posts, specifications on their images, or the number of people who use the brand's hashtags.
Additionally, evaluating through revenue and site access is crucial; this shall demonstrate the
increase in visitors within a specific amount of time. Furthermore, Red Balloon will set up a
pop-up question for website visitors, asking a multiple-choice question, "From where do you
know us?". Several pre-built answers include the Website, Facebook, Influencers, Posters, or any
other channel. The question requires a minimum effort to click but provides the brand a
straightforward reply for the source of the awareness. 

In general, the mentioned evaluation tools depend on IMC objectives and media channels the
campaign operates, concentrating on getting 3000 more followers on Instagram and 500 on
Facebook; the calculation process ends four months after the project completes. For objective 3,
gaining 120 new online customers was mainly analyzed by increasing revenue and sales.

Conclusion
When moving your business from offline to online, it's important to know how to use your
strengths to achieve your goals as soon as possible. Therefore, investing in social media
marketing is not enough. The "Recreation" campaign will be an important and groundbreaking
step for the Red Balloon as it combines the company's strengths: a reputation built on its offline
business and proper digital marketing planning.

In summary, this campaign will cost about $ 10,000 with consumption expenses on advertising
for social media, making events, targeting the targeted customer segment which is the Millenials
group - the group of people who are leading the trend in digital transformation and opening. New
Internet era for businesses. By directly targeting the most potential customers in the online
business, the company can reduce costs and significantly achieve its goals.

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Appendix