Questions:
1. How do you negotiate timing, art work, insertions, advertisement locations and fee with Groupon to meet your requirements?
2. What are the strategies showing the tasks and timelines, including contingency plan for mistakes and shortcomings for this promotion?
3. Explain how you plan the target online sales units (for the deal is on), price and commission paid to Groupon as well as the redemption period and budget return from this venture.
4. How do you analyses the creativity and success factors crucial to the campaign?
5. Secure a contract Groupon that meet legal and ethical regulations together with advertising campaign plan and schedule.
6. Explain how you implement advertising campaign activities complying with legal and ethical requirements as well as meeting budget and schedule agreed.
7. Discuss the provision for adjustments to original time-table.
8. Explain the process and analytical methods to measure performance outcome and determine the outcome gaps from the original targets.
9. Discuss how you negotiate and agree on unexpected outcomes and work out possible solutions with Groupon.
The assignment deals with executing an advertising campaign. Under this assignment, CleanNet is the organisation provides commercial cleaning service in Perth. Another organisation Groupon based on Australia that generally designs and executes advertisement for various commercial organisations. After analysing the opportunity of development of CleanNet in Australia, effective promotional activities are required and for that reason CleanNet has hired Groupon for executing the advertisement in favour of CleanNet. In accordance to Katsirea (2012) conducting advertisement campaign is effective for organisational growth. In such instance, an implementation strategy of advertisement campaign has been designed for organisation in first step. In next step, contract with the media has been negotiating and in last step, the monitoring process of advertisement campaign is designed for getting success in the project.
Promotion of the product or service plays significant role as the market is extremely competitive. In such position, “CleanNet” is the organisation that provides commercial cleaning service. The organisation is located in Perth in Western Australia. The organisation CleanNet provides services in various places such as schools, multi storey offices, industry premises, hotels, shopping centres etc. Moreover, the organisation also provides service based on the health care facilities along with aged care facilities. The organisation, CleanNet follows a functional organisational structure and based on the function, the management of the organisation has designed and divided the entire employees or staffs. As per the structure, the corporate governance comprises with the managing director and a financial director is divided from this group. Apart from that, as per work the management has divided in three parts such as CleanNet cleaning, CleanNet group and CleanNet supplies. The CleanNet cleaning divided in two sectors. First sector comprises with director, business development managers, marketing, Telesales manager and telesales. The second sector comprises with general manager, project manager, area manager, site supervisors and site operatives. In addition, CleanNet group comprises with administration, help desk, HR, health & safety and IT support. At last, the CleanNet supplies comprises with director and customer service department. The customer service department comprises with two sections, first section deals with internet sales, retail sales and telesales. On the other hand, the second section deals with warehouse manager, warehouse operatives and drivers.
Figure 1: Organisational structure of CleanNet
(Source: Created by author)
The staffs are recruited after vetting very carefully as the staffs are the key success point of the organisation. Moreover, the employees of the management team are very much proactive during providing service towards the client in Perth. The staffs are highly efficient and the management maintain health and safety policy in the organisation as well as providing service in various areas. As the organisation provides various kinds of commercial cleaning service so the organisation uses several modern equipments for providing best possible service. In addition, after executing the modern equipment the management provides training and development session towards staffs for handling the equipment properly and avoiding the chances of accidents during providing services. In order to improve the quality of service the organisational management has accumulated feedback from customers and as per their view, the service quality along with the promotional factor must be improved. Actually, the market is very competitive and there are several organisations are providing similar kind of services. Moreover, Perth is the largest city with 1.97 million people. Based on geographic location it is central business district with developed economy. Thus, there is a great opportunity for CleanNet to grow their business in effective manner. Thus, effective promotional plan is required for developing the organisational position. As the organisation possesses proactive management team, and well experienced team so it will be easier to grab maximum market share in business perspective. Moreover, there is a chance for organisation CleanNet to expand their business through product or service development approach.
As opined by Winston and Granat (2014), the hired organisation Groupon is responsible for fulfilling the client’s (CleanNet) requirement. As the organisation, Groupon has taken responsibility for designing the advertisement campaign so the CleanNet get success in business perspective so a negotiation related to timing; artwork, insertions, advertisement location and fees are observed during execution the plan. It is natural Groupon demands for high financial resource and gives pressure for allocating 50% of sales as the organisation is in initial stage. Moreover, the organisation Groupon has demanded for 6 weeks for designing the advertisement plan and one entire financial year for achieving the objectives. However, after a vast discussion, the service-providing organisation CleanNet has agreed to provide 40% monetary value of total sales. Moreover, the CleanNet has given condition that the organisation cannot give the entire value in one. With an easy instalment, the organisation provides 30% of allocated price in initial stage and then it pays back to Groupon in easy instalment that is 30-30-60%. Moreover, the organisation CleanNet will continuously monitor the sales vale and provide the feedback to Groupon. If CleanNet not gets success then, Groupon has to implement contingency plan for success (Events.groupon.com.au, 2015).
The hired company Groupon has decided to provide advertisements through audiovisual media, print media, audio media and word of mouth promotion. The organisation has been allocated four weeks for accomplishing the entire campaign. Although the organisation has executed several effective strategies as per present situation, but contingency may arise in any situation due to technical or programming error.
In case of audiovisual media, the organisational management places the advertisement during most popular show. Moreover, the game those are very much popular in Australia those may give good result in case of advertisement as on that position; numerous people are making awareness regarding CleanNet organisation and its product (Liu et al. 2009). In case of contingency, the Groupon has designed other media for getting effective outcome for the organisation. For designing and implementing the audiovisual advertisement, the Groupon has taken 3 weeks time.
In case of audio-media, the organisation should announce with discount factor that the “CleanNet is providing cleaning service with 30% discounts only in Perth for limited period”. This is very time saving process and after 1 week, the advertisement can be audible through radio.
In case of word of mouth promotion, the organisation takes two weak time for conducting marketing survey and designing the roadside add campaign. In this situation, the Groupon has chosen “Koala kid” for advertisement face to attract the customers. Moreover the roadside campaign should be organise in corporate area so that the multi storey office, shopping centre, schools are making awareness regarding the service as well as the organisation (Maciej Kutera and MirosÅ‚awa Lasek, 2010). On that moment, leaflet also is distributed to inform as well. Execute the entire program it will take more than 3 weeks.
At last, the Groupon design advertisement for social media such as Facebook, Twitter etc. The using rate of social media is increasing day-by-day. Moreover, the organisations are using social media as communication media. In such instance if the organisation Groupon uses the social media then it will provide effective result.
CleanNet hires the Groupon for executing the advertisement campaign. The organisation has given target to Groupon that the organisation want to earn $2 billion in one financial year and for that purpose the CleanNet has allocated the budget to Groupon. The research as referred by Shaw et al. (2014) the range of advertisement cost from 1% to 30% of total sales volume. However, the organisation is in initial stage and for that reason the organisation is allocating 40% of total sales. The hired organisation Groupon has to accomplish the entire activities such as print and broadcast advertising, website development, making public relation through roadside campaign along with the entire prior activities such as market survey, design the advertisement etc. The organisation CleanNet provides 30% of total sale after a certain period. After that, Groupon will demand 30-30-60% in instalment basis in same period. Apart from that, price factors include buying incentives, concession, discounts etc and the CleanNet has to take care of those factors (Sharma, 2012).
|
Advertisement activities |
Allocated budget |
|
Market survey |
3% |
|
Setting goal |
5% |
|
Select advertisement venue |
2% |
|
Develop the media plan |
2% |
|
Organisational Fees (Fees of Groupon) |
13% |
|
Execute campaign |
75% |
Table 1: allocated budget for advertisement activities
(Source: created by author)
|
Executed various kind of advertisement |
Allocated budget |
|
Print and broadcast advertising |
25% |
|
Website development |
10% |
|
Making public relation through roadside add campaign |
40% |
|
Social media |
15% |
|
Distributing leaflet and hoarding |
10% |
Table 2: allocated budget for advertisement activities
(Source: Created by author)
In order to getting the success in advertising campaign, the hired company Groupon has to conduct several activities. Before executing the advertisement campaign or before planning the management has to conduct market research, design budget and setting the goal. After that, the management of Groupon selects the advertising venue or the most effective media such as audio-visual media, websites, newspaper (Print media), radio station etc. As cleaning service is intangible thus, advertisement campaign must be very bright and attractive. Moreover, the research and development department implements some creative factors where freelancer should be needed to check all the aspect from outside.
The management of Groupon conducts the advertisement campaign through audio-visual media, Newspaper, advertisement through hording, promotion through add campaign and social networking site. During providing advertisement through audio-visual media, Groupon selects “Koala kid” the most popular animation face in Australia and design the advertisement for every perspective. Apart from that, the R&D of Groupon company designs big hording related to the “CleanNet” commercial organisation and provided service. In order to getting success in first step, the organisation can negotiate the pricing of the provided service. Moreover, with the help of discount factor, Groupon provides advertisement through newspaper, magazine and radio station. Along with this, in case of this kind of service, word of mouth promotion is very effective. Thus, the Groupon design a roadside add campaign where using the “Koala kid”, mouth promotion in commercial place is also effective (Events.groupon.com.au, 2015).
The CleanNet wants to earn revenue $2 billion within one financial year after placing advertisement through Groupon. Thus, Groupon has demanded 50% financial value of the total sales volume. After negotiation, the Groupon has agreed to provide the service with 40% of total sales volume. However, Groupon has informed the CleanNet that being the new organisation in the market it is quite difficult to generate $2 billion revenue within one financial year thus; the hired organisation indicated as unexpected outcome is the mission of the CleanNet. However, the organisation as received the project so the organisation has given commitment to help by aligning the every possible support in respect of advertisement. Thinking of perceived risk the organisation has also made contingency plan as programming error and technical error may arise in any situation. Thus, CleanNet will also work together with Groupon. As the organisation, CleanNet possesses proactive management team and good staff so the entire management and the staffs will help the Groupon to successfully implementation of the advertisement campaign.
Before designing and executing the advertisement process, both the organisation Groupon and CleanNet have to make legal relation under contract. Moreover, the Groupon has to execute the advertisement process following the laws and regulation imposed by the Australian Association of National Advertisers (AANA). The AANA has designed Code of Practice to execute advertisement with the purpose of fulfil the social expectations and fulfilling the social responsibilities such as removing environmental issue, children protection etc with the help of Advertising Federation of Australia, Australian Communication and Media authority. On the other hand, executing the advertisement service in allocated budget the organisation Groupon can take help from Free TV Australia and Australian Performing Right Association. Apart from that, the media cannot charge more from Groupon. If any media charge comparatively more then, Australian Competition and Consumer Commission support Groupon to provide advertisement as per feasible price. Thus, the organisation Groupon has to make conversation with all the above mention legal authority to represent the advertisement in the course of different media. As per legislation, the organisation cannot use any cheap word for advertisement and should maintain the cultural influences (Zabel, 2012).
The Groupon is responsible for the entire advertisement campaign in Australia mainly in Perth as the CleanNet is located in Perth. In order to executing the effective advertisement campaign, the organisational management of Groupon makes timetable for representing the advertisement. The organisation has given the timetable that is mentioned below:
|
Advertisement mode |
Frequency |
Position |
|
TV (audio visual media) |
At least 20 times in a day Once in commercial break in Australian most popular show |
Starting position or last position in commercial break |
|
Audio media (Radio) |
Twice in every hour (minimum) Five times in every hour (Maximum) |
The advertisement should be provided in starting position in the commercial break |
|
Print media (Newspaper, magazines etc) |
Once in month (Full page) 10 days in month (Internal page) |
Once in month (Front page) 10 days in month (internal page) |
|
Social media (Facebook, Twitter, Youtube) |
Every alternative day for Facebook and twitter 10% of total uploading program in every alternative day |
Not required |
|
Roadside campaign |
Once in month |
2 hours minimum |
Table 3: Provision for adjustment to original timetable
(Source: created by author)
As per imposing rules of AANA, the organisational management of Groupon has presented the above-mentioned timetable for presenting the advertisement through various media. Moreover the Advertising Federation of Australia, Australian Communication and Media Authority will help the organisation Groupon for accomplishing the performance as per timetable.
There are three factors are using to measure performance outcome and determine the outcome gaps from the original targets such as Key performance indicators (KPI), Return on investment (ROI) and Advertising Research Foundation. In order to measure the performance the organisational management of Groupon evaluates the key performance indicators (KPI). In such situation, the organisation measures return on marketing investment, marketing return on investment and accountable marketing. It is because the through those metrics the organisation CleanNet can realize the financial performance that is the key point of the success (Sharma, 2012).
Apart from that, the organisation management appraises the marketing outcome in customer perspective. Moreover, in order to determine the outcome gap the organisational management of Groupon take feedback from the customers and monitoring the entire marketing activities. After identifying the outcome gap, the organisational management gives pressure for repeating the advertisement in more frequency.
The legal relation between two organisations such as Groupon and CleanNet is necessary for maintain the rules and regulation of the advertisement. In case of, using car graphics, the Groupon has to hire some third party. Moreover making contract, the both organisations should provide their detail information. In addition, after evaluating the entire rule and regulations both organisations sign with commitment for fulfilling the task on the time. On the other hand, in case of other advertisement process, the entire factors such as parties and effective date, billing, content, entire agreement, modifications or amendment, right to terminate etc are included in the contract form. Moreover, breaching the agreement, the blameworthy party has to provide compensation towards the innocent party (Zabel, 2012).
Conclusion:
It can be concluded from the above assignment that executing the advertisement campaign is very important for organisational business perspective. In this assignment, CleanNet is the organisation located in Perth, Australia provides commercial cleaning service towards various places such as Multi storey building, offices, schools, shopping centres etc. Groupon is the commercial organisation design the advertisement campaign for CleanNet. The organisational management and research & development department together made the plan for executing the advertisement campaign after selecting the print media, audio media, audio-visual media, social networking site and word of mouth promotion as advertisement campaign. The organisation Groupon has conducted the entire performance under legal authority.
Reference List:
Events.groupon.com.au, (2015). Groupon Events. [online] Available at: https://events.groupon.com.au/ [Accessed 28 Jan. 2015]
Katsirea, I. (2012). “The Transmission State Principle: The End of the Broadcasting Sovereignty of the Member States?”, Cambridge yearbook of European legal st, 6(1), pp.105-139
Liu, W., Zhong, S., Chaudhary, M. and Kapur, S. (2009). “Online advertisement campaign optimisation”, IJSOI, 4(1), pp.3
Maciej Kutera, M. and MirosÅ‚awa Lasek, M. (2010). “Clustering Methods Application for Customer Segmentation to Manage Advertisement Campaign”, Contemporary Economics, 4(3)
Sharma, A. (2012). “Consumer Perception and Attitude towards the Visual Elements in Social Campaign Advertisement”, IOSR Journal of Business and Management, 3(1), pp.6-17
Shaw, B., Howell, A. and Genskow, K. (2014). “Evaluation of a Movie Theater Advertisement Campaign to Promote Behaviors that Prevent Spread of Aquatic Invasive Species”, Society & Natural Resources, 27(7), pp.768-776
Winston, W. and Granat, J. (2014). Persuasive Advertising for Entrepreneurs and Small Business Owners. Hoboken: Taylor and Francis
Zabel, M. (2012). Advertising Ethics | Marketing magazine. [online] Marketing magazine. Available at: https://www.marketingmag.com.au/tags/advertising-ethics/#.VMjI744SHcc [Accessed 28 Jan. 2015]
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