Development of an Integrated Marketing Communication Mix Strategy - HP - Essay Example

? Development of an integrated marketing communication mix strategy For an IT brand: HP Contents Contents 2 Executive summary 3 Introduction 3 Marketand Literature Review 4 Research Methods 6 Analysis and discussion 7 Conclusion 10 Recommendation 10 Reference 11 Bibliography 13 Executive summary The present report states about the market expansion plan of HP, which is recognised as one of the leading IT companies into Russia. The reason behind choosing Russia is because of its competitive market in IT industry. Russia is one of the fastest growing countries in technology, development and investment. According to a report of Reuters, the overall IT spending is expected to grow at CAGR of about 17% during 2010 to 2014 which will position Russia as a prominent IT hub across the world. This report mainly deals how HP would implement its Integrated Marketing Communication mix strategy in Russia and achieve success. HP is well known for its innovation thus applying its innovation strategy HP can lead the Russian IT industry. The report starts with an introduction on IMC, carried on by market and literature review. The research methodology used for this report is primary research; the technique is described broadly in research methodology. The next part is an analysis and discussion on the marketing strategies specifically the IMC strategies that HP should take up in order to build a stand in Russia. The last section of the report states recommendation for HP which would be beneficial for the company when it enters the Russian market. Briefly the report highlights the IMC plan for HP to help it enter the competitive market of Russia. Introduction Integrated marketing communication is an essential tool for the marketers to communicate with their target audience. A marketing strategy can be defined as a set of conscious decision made by a marketer in order to determine which segment of the society is being offered a particular product, generally the target market and how to penetrate to the chosen target market. The target market can be the existing or the potential customers which the marketer aims to satisfy with its particular product or services (Koekemoer & Bird, 2004, p.1). IMC helps customers in the various stage of buying process as IMC wraps communications around customers which helps it to nurture and develop a good bonding with its customers, a bound of loyalty which protects the marketer from the intense competition. The company chosen for the report is HP an IT giant based in USA. HP is a technology company which has its operation based in 170 countries across the globe. HP has been known for its technology and services and explores on how these technologies can serve customer better and improve ways of addressing its problems and challenges so that the company is able to realize their aspiration, possibilities and dreams (HP, 2011). This project aims to develop an effective integrated marketing communication strategy for the company, which is planning to enter the market of Russia. The Russian technologies have grown from simple nothing to a billion dollar industry in less than a two decade (SRAS, 2006). This phenomenal growth has attracted many IT giants and HP one of the leading IT player plans to enter the Russian IT market. Market and Literature Review The concept of IMC has received a considerable coverage, but even though many of its ardent supporters have noted problems in actually translating the concept into reality. According to many survey it has been revealed that a strong commitment exits by both the marketers and advertising agencies (Eagle & Kitchen, n.d). This study will relay on the research information which is mainly gathered from primary and secondary sources which are based on communication theories, integrated marketing communication theory. Introduction IMC is defined as a strategic approach to corporate communication which coordinates the communication made by the companies to present a consistent message to its consumers and public. To address the issue that communication affects both the product and the corporate brand, IMC prescribes a strategic mix of communication activities mainly for marketing and corporate communication. It has stated that traditional mass media has become obsolete with the development of new media technologies which IMC allows the corporate or the marketers to address the need and taste of the clients and also develop a cost effective marketing strategies (Kitchen, 1999, p.91). Duncan explained that the synergy is often created by way of communication of the company’s vision and motivates the consumers to self select and identify the brand which they generate positive attitude. The new approach to IMC has been regarded a s management fad because communication lacks theoretical foundation, research, measurability to define the concept of IMC (Smith, 2008, p. 4). IMC Activities IMC has prescribed a relevant strategic coordination for all communication which is known as the 4ps of marketing, product, price, place and promotion. Duncan has argued that all forms of communication must be considered equal and should address the most crucial problem and use the marketing mix which suits the requirement of the brand. IMC strengthen the brand name of the company in order to establish a strong positioning in the market. Many case studies have shown the application of Duncan theory. For example, the marketing campaign for Dewar’s has emphasised on communication and brand positioning a desirable and consistent positioning which appropriately matched the target audience. Integrated communication at Chevron (Quelch, 1993) made use of the public opinion monitors to determine the right message which was transmitted to the right audience (Smith, 2008, p. 5). Conclusion While it has been stated that much of the IMC is related to the consumers but authors argue to the fact and has suggested targeting the non customer’s stake holders such as employees, regulators, investors and others. In fact authors believed that link between the corporate and IMC has gained a significant implication for the stakeholders. They can be targeted through the corporate communications by activities such as corporate advertising, financial relations, lobbying and financial relations (Kliatchko, 2008, p.145). Research Methods The primary research methods used for analysing the consistency of IMC and how it would help HP to develop it communication mix was based on techniques such as Questionnaires, which has indented to addressed the people both from technical aspect as well as consumer aspect. The questions were designed as open ended as well as close ended questions. This gives a chance for the target market to express their views. Another essential tool designed for IMC is mystery shopping and phantom phone calls. The IMC researcher in order to conduct this type of research visited retail and service outlets and customers who contacted the company through phone or email, were observed and recorded the communication and the interaction pattern. Opinion surveys were conducted to gather information on how the customers or a group of felt about the entry of HP into the Russian market. Apart from the above primary research, personal interview and Delphi technique was also adopted. However primary research deals with several limitations such as cost, one of the major factors as primary research are expensive as compared to the secondary research. This is because the marketer involvement and the expense in carrying out the research are quite high. To conduct this research, a good amount of time was required thus making it inconvenient to deliver accurate result. Analysis and discussion The issue that would be analysed in this section are with regards to Russia as the target market for HP What are the peculiar characteristics of customers in the new market and what are the marketing communications strategies that should be used by the company to win a competitive positioning? Identify marketing messages, marketing campaigns and media to be used by the managers of the company considering the marketing approach adopted by the competitors? The market segment for HP would be divided into two set of groups, the consumers and the business i.e. Business to Consumers and Business to Business. When HP enters the Russian market, it would target the business sector as well as the consumers for its products, thus the segment is divided into two groups. The company, HP has already established its brand name all over the world therefore making it feasible for HP not to over use the budget set for the marketing communication mix. HP would mainly focus on its core competitive advantage, technologically focused than its competitors. The company has been utilising the language of IT to position its IT services and would therefore use the same strategy in Russia also. The Russian market is one of the fastest growing industries in IT, it has been a pioneered in technology and science (Reuters, 2011) thus making is competitive for HP to enter the Russian market. HP marketing strategy to stay ahead from its competitors such as Russoft, Inforus, Frot Ross and also non profit organisation, Information Computer technologies Industry Association to name a few would focus on the customer. The customers have shown an enthusiasm in the approach acquired by HP, which in turn have leaded the company to acquire more leads and partners. HP can create a Russian image for its brand and can position as Russian national quality brands. Through this strategy HP would be able to compete with the brands which are already set up in Russia. Hp latest strategy of sustainability, which is seen as a competitive advantage for the company would also help it to grow in the emerging IT market of Russia. For HP, sustainability, profitability and efficiency go hand in hand (Lowitt & Grimsley, 2009, p.1). HP with its shared values, integrity and respect has immerged as a global brand not only in US but all over the world. HP constantly keeps on inventing new products for its customer in order to keep up its brand essence. HP unleashes new possibilities of its customers, creating sparkling products which has catalytic effects on its lives, business and the earth (HP-a, 2011). The Russian perception towards advertising has changed and it is felt that new methods should be applied in order to penetrate in the market. Old methods are not preferred by Russians changing consumer environment. They dislike product oriented advertisement and rough emphasis on product characteristic. The Russian find these types of ads to be boring and ordinary (Region Media, n.d). Therefore based on the consumer perception, HP promotional technique must concentrate more on fun, humour; something based on unexpected thoughts and importantly should combine the product and image quality. The other form of promotional tool that can be used by HP direct marketing, sales promotion, Public Relation and also through exhibitions or trade shows. HP competitors have already established themselves so the company must emphasis more on its promotional strategy. But since HP is a global brand, any new inventions to its product would generate news in the media. Media such as newspaper like Prime Tass one of the leading business newspaper in Russia, Moskovsky Komsomolets, Argumenty I Fakty and also The Moscow Times which is only daily English newspaper are also leading newspapers which provides entertainment, including advertising and PR articles. Since budget would not be constrained for a company like HP, it can perform its promotional activities with much ease and comfort. HP can conduct exhibitions in collaboration with any educational institute which would help the young population to generate knowledge about the IT industry, also HP known for its educational initiatives can conduct a workshop which would help the young generation to know more about HP and its activities. As part of their Global Marketing Communication, HP has launched its integrated marketing campaign which address the question of ‘what do you have to say’ in some parts of the country such as Africa, Middle East and Europe with a motive to engage customers in its print revolution 2.0 (HP-b, 2011). Similar ad campaigns can be introduced in Russia which might be fronted by a well known singer or a fashion designer of Russia. This would help the population of Russian to get attached with the company and its product. Conclusion According to report published by Reuters, Russia has been a pioneer in science and technology, investment and development in the IT industry. The Government of Russia has also taken some crucial steps which include incentives and tax breaks in order to boost the IT market. The pressure put on from the public sector has positioned Russia as a well structured and competitive market which has attracting new companies to enter the IT industry. HP’s motive to enter the competitive country would help it to gain market share and move further in its global position. Currently HP ranks 11 in the Fortune 500, with its revenue amounting to a total of $127.2bilion in the current fiscal 2011. Russia low cost of labour along with geo-political risk and solid infrastructure makes Russia an emerging leader and HP can use its features as its advantage to set up an industry in Russia. Russia population are more inclined towards fun and loving environment and thus they prefer advertisement similar to their taste, Hp known for its innovation can apply the concept and gain the preference of its product over its competitors. HP believes to be different from its competitors across the globe because the company believes to be optimistic, it believes that the future is full of opportunities; brave, the company acts with confidence; Relentless, it’s the determination of the company that drives them to stay ahead from its competitors and finally it’s the Ingenuity that strive to create a special effect for their customers and this is how HP defines innovation. Recommendation HP’s plan to enter a competitive market like Russia, would definitely prove to be beneficial not only from the company’s prospective but for the country also. Therefore it is recommended that HP to improve its balance of trade so that it can concentrate on various number of investment programs which would help in the development of nation, education, production, innovation and culture. HP the founder of Silicon Valley in the USA should continue to follow its tradition in Russia. Research and development is one of the key elements for the development of IT, innovations and advancement of technologies. HP’s R&D has been a key point for its success and thus it is recommended that HP should give significant attention to its research and development. Russia being one of the countries with high potential of growth in IT industry, HP can further open a lab which would focus on information management and providing opportunity for the Russian scientists experiment and make it one of the leading R&D bodies around the world. Hp is also known for its social investment initiatives and provides a world class environment for the education. Similarly, HP can make use of its social initiatives in Russia and help in the education of IT and also conduct workshop for the young entrepreneurs. Apart from R&D, HP must keep up the culture of Russia while entering the country and should provide more attention while performing the promotional activities as the Russian dislike product oriented advertisement. They prefer advertisements which are fun, filled with humour and out of the box thinking. Therefore HP should concentrate more on the Russian culture and act accordingly as it is rightly quoted ‘think local act global’. Reference Eagle, L. & Kitchen, P.J. (No Date). IMC, brand communications, and corporate cultures: Client/advertising agency co-ordination and cohesion. [Online]. Available at: http://www.emeraldinsight.com/journals.htm?articleid=853673&show=abstract. [Accessed on December 2, 2011]. HP. (2011). About Us. [Online] Available at: http://www8.hp.com/us/en/hp-information/about-hp/index.html. [Accessed on December 2, 2011]. HP-a. (2011). Brand strategy. [Online]. Available at: http://www.hp.com/global/brandguidance/strategy_overview.html. [Accessed on December 2, 2011]. HP-b. HP Launches Integrated Global Marketing Campaign, Fuelling Growth with Print 2.0. [Online]. Available at: http://h41131.www4.hp.com/emea_africa/en/press/HP_Launches_Integrated_Global_Marketing_Campaign_Fuelling_Growth_with_Print_20.html. [Accessed on December 2, 2011]. Kitchen, P. J. (2006). A reader in marketing communication. Taylor & Francis. Kliatchko, J. (2008). Revisiting the IMC construct. [Pdf]. Available at: http://www.favaneves.org/arquivos/kliatchko-revisiting-the-imc-construct.pdf. [Accessed on December 3, 2011]. Koekemoer, L. & Bird, S. (2004). Marketing Communications. Juta and Company Ltd. Lowitt, E.M. & Grimsley, J. (2009). Hewlett-Packard: Sustainability as a Competitive Advantage. [Pdf]. Available at: http://www.hp.com/hpinfo/globalcitizenship/environment/commitment/accenturestudy.pdf. [Accessed on December 2, 2011]. Region Media. (No date). Consumer behaviour in Russia: highlights on consumer segments, brand perception, advertising, and channels. [Online]. Available at: http://region-media.ru/behavior.php. [Accessed on December 2, 2011]. Reuters. (2011). Russia IT Industry Analysis. [Online]. Available at: http://www.reuters.com/article/2011/02/11/idUS181282+11-Feb-2011+BW20110211. [Accessed on December 2, 2011]. Smith, B. G. (2008). Representing PR in the Marketing Mix a Study on Public Relations Variables in Marketing Mix Modelling. [Pdf]. Available at: http://www.instituteforpr.org/wp-content/uploads/BG_SmithKetchum1.pdf. [Accessed on December 3, 2011]. SRAS. (2006). THE RUSSIAN IT MARKET. [Online]. Available at: http://www.sras.org/russian_it_market. [Accessed on December 2, 2011]. Bibliography Belch, G. E. & Belch, M. A. (2003). Advertising and Promotion, 6/E. Tata McGraw-Hill Education. Duncan, T. R. (2002). IMC: using advertising and promotion to build brands. McGraw-Hill. Shah, K. (2009). Advertisement and Promotions: An Imc Perspective. Tata McGraw-Hill Education. Read More