Make it stand out.
It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more. Or maybe you have a creative project to share with the world. Whatever it is, the way you tell your story online can make all the difference.
Light of Life is a lifestyle brand which aims to provide consumers with innovative new ways to express themselves with an added benefit of illumination. Below is an excerpt from the Strategic Marketing Plan I prepared for them including the brief market analysis and social media optimization section.
Market Analysis
Industry Description Overview and Outlook
Handbags, Luggage, and Accessories
The target market of consumers between 25-45 makes up the largest percentage of buyers in the handbags, luggage, and accessories (HLA) industry, spending 25.5% of the revenue in this industry
Consumers under the age of 25 comprise 11.7% of revenue in HLA industry, and this demographic is projected to grow between 2017 - 2022.
The current demand in target market is trending upwards, with increased consumer confidence in the economy and a steadily growing number of households making $100,000 in income, leading to a projection of higher consumer spending
Spending falls under per capita disposable income in both industries, as products are discretionary items.
Costume jewelry purchases tend to be impulsive, and seen as small indulgences.
Consumers in the target market tend to be aspirational luxury shoppers, buying affordable yet fashionable items
Trends within HLA industry change from season to season, based on fashion trends and consumer
Costume jewelry purchases tend to be impulse purchases, and consumers do not usually plan or research these products
The top two quintiles make the majority of all purchases in this industry.
E-Commerce and Online Auctions
Clothing, footwear, and accessories comprised 17.7% the market revenue in 2017. Revenue growth throughout the industry was 12.3% from 2012-2017, but it is expected to shrink to 9.3% between 2017-2022.
35-54 year olds are a large portion of the population, and have more discretionary income to spend
18-34 year olds generate 27.4% of industry revenue, while 35-54 year olds generate 49.5% of industry revenue; those who are in their 30s prefer online shopping.
The current demand is trending upwards, with more people having internet access at home, as well as a smartphone with mobile internet connections.
Trends within e-commerce can be introduced quickly.
E-Commerce purchases can be both impulse purchases and well-researched, as consumers can easily search for reviews or a better price at their leisure.
Consumers in the target market tend to be in their 30s, gaining more discretionary income as their incomes increase.
Amazon makes up 21.2% of the market share.
Social Media
During the pre-launch Light of Life will focus on establishing a presence on various social media platforms, and gathering a following for the brand. This will be the groundwork for spreading the word that Light of Life has something to offer to consumers. During this stage, it will be important for Light of Life to create content that speaks for the brand. The content should be directly related to the image that Light of Life wants to present.
During the hard-launch, social media will take on a different role. At this stage, social media will be used as a way to connect with consumers.
There are quite a few options for social media usage, here we will outline the most effective forms of social media: Facebook and Instagram.
This form of social media has the highest engagement rate of all social networks. Having a good Instagram page and a large following can make a huge difference in the success of a brand. Once recognition is gained on Instagram, doors are opened for the brand and products to be viewed by many more consumers than can be reached using other social media platforms.
Instagram Profile Layout
The layout of the brand’s Instagram page is very important, as Instagram is primarily a visual platform. If the profile is not aesthetically appealing, consumers will not be interested in engaging further. So, every aspect of the layout on the page should be purposefully done in a way that will attract consumers and move them into the awareness stages of Light of Life. The profile picture should be directly related to the brand. Preferably, it should be the logo for the brand or a variation. This will provide the page with distinguishability. When people see the logo, they will be able to mentally associate it with other aspects of the brand across all platforms. The “bio” should contain the name of the brand, a tagline, a very short description of the company or product, and a link to the website. The “bio” should be short enough that people will not be tempted to skim it, but have enough information to pique the interest of the consumer. The page should also be set up as a business page. This gives the company the ability to seamlessly incorporate its website and contact information onto the page. By taking advantage of the business page option, social media is not just a platform for advertisement, but also creates a means of selling the product.
Instagram Content
What is posted and when and how often are the most crucial aspects of successfully using instagram as a platform for advertisement. Only high quality images should be posted, as people are much more likely to pass over a post if the image quality is grainy, out of focus, or not aesthetically appealing. There should also be a general theme going for the page. This creates a smooth experience for users who are browsing the page. “All your Instagramming will be for nothing if the pieces don’t easily fit together to show what your brand actually is.” (KissMetrics) To ensure this, avoid posting content that does not relate to the product or brand culture. Posts to the profile’s story feature can be utilized for topics that do not fit clearly with the branding strategy to establish a personal connection with the audience. This will allow it to be seen, without interrupting the flow of the main profile. When utilizing the story feature, keep in mind that it will be mixed in with followers’ regular feed. The story will be alongside their friends’ and family’s stories as well as other businesses they follow. “To ensure that users don’t swipe away when they realize that post is an advertisement— it’s critical that your content fits in with its surroundings in the feed. To give users sneak peeks of your company culture — or let your followers in on an upcoming event or launch — try creating less polished, more DIY videos.” (AdEspresso).
Instagram Utilization
Due to the algorithms used by Instagram to control the users’ timelines, posting must be done strategically. Interaction is key with Instagram’s algorithms. Only a fraction of the following will be able to see posts initially; if a certain level of interaction is not secured with those that do see the post, then the post may not reach all followers in a timely manner. The post may get sent to the bottom of the timeline. On the other end, the company’s own interaction means a lot as well. The company must interact with other users when utilizing this platform. When people comment on a post, someone should comment back. When profiles and personalities who are aligned with the brand post something, someone should like and comment. This will show people that it is an active page and not a “bot” page. This will also show users that they can benefit from interacting with the company, as they may receive some interaction back.
There are also several tools that can be used to simplify the utilization of Instagram.
Facebook will be particularly helpful during the soft launch. Facebook is one the most well established social media platforms of today. With nearly 2 billion active users, Facebook will be particularly useful in spreading awareness of the light of life brand. There are many options available to spread the word about Light of Life through Facebook, such as targeted advertisements, business pages, and word of mouth through established friends and colleagues. Facebook can be used for both promotion of the brand as well as distribution, as there are options for advertisement as well as options to sell the product through links on advertisements and through links posted on the business page.
Facebook Profile Layout
The layout for the Facebook page is important because it will paint a picture of what the Light of Life brand is. Facebook is meant to be a platform for people to create profiles that represent their thoughts, ideas, and feelings, so the business page should do the same. People who come in contact with the page should be able to feel that they understand what Light of Life as a brand wants to say.
When using Facebook, the cover photo will be the first thing that people will see as the begin to engage with the page. A photo that accurately represents the Light of Life brand must be used. Be sure to use a high quality photo that is sized appropriately to avoid it being stretched to fit the full frame.
The profile picture is the next thing people will notice on the page. This should be the brand logo so that people who are viewing the page are able to associate the page with Light of Life in all its forms.
The about section should be concise, but informative. It should be a brief description of the business along with contact information and a link to the website. Anyone who reads the about section should feel as if they got enough information to pique their curiosity and also that they were given the tools to find out more.
At the top of the page, just below the cover photo, will be options for a call to action button. There are quite a few options that can be selected, such as “Buy Now” or “Contact Us”. Link these buttons to the website to allow people to further engage with Light of Life.
Facebook Content
A successful business page doesn’t just attract visitors, it retains them and keeps them coming back. The key to this is to have an interesting timeline. Be sure to post regular content that is interesting, useful and easily digestible. Also, link the Instagram feed to the Facebook page so anything posted on Instagram will automatically be posted to Facebook as well. This will supplement the Facebook timeline, as well as creating a cross promote the social media channels used by Light of Life.
Creating milestones on the business page is another useful tool in attracting consumers and keeping the current following interested. They highlight the important moments in a company’s history, such as partnering with a large retailer, creating a new product, or winning an award. Milestones help the people following to feel more engaged with the inner working of the company, and allows them to make more of a personal attachment to the success of Light of Life.
Direct Marketing/Advertisement
Direct advertisements are advertisements that are delivered to the consumer through more traditional means, such as Google advertisements, magazine advertisements, or through sending an advertisement directly to the consumer through email or paper mail. Light of Life will be able to benefit from these types of advertisements because they will broaden the reach of the Light of Life brand from people who are doing searches for similar products to people who just happen to frequent the places that the advertisements are placed. Light of Life will be able to purchase advertisements through google so that they can appear to people who may be interested as well as purchasing advertisements in magazines that would be read by their target audience. The ability to send out advertising emails can be gained by having people sign up through the website, or by purchasing lists of emails and sending out advertisements. Sending coupons and promotional postcards through the mail would also be a great way to build awareness of the Light of Life brand, however this method is the most expensive and also the least targeted. Reach more customers through business cards, postcards, and flyers.
Google advertisements
Utilizing Google advertisements will allow Light of Life to be seen by consumers the moment they are searching for what Light of Life has to offer. This would be the most cost effective option when it comes to advertising, as payment is only required when people click on the advertisement to visit the website. Budgeting is simple, as it is possible to set a limit for how much is spent per day on these advertisements. The higher the budget, the more potential clicks Light of Life will be able to get. With this option, there is no risk of spending more than what the company is ready to spend, and there is also no risk of spending money on advertisements that may not reach the target audience. Once the advertisements are up and running, Light of Life will be able to measure the success metrics of each advertisement through the Google advertisements platform. By checking the success of certain advertisements, Light of Life will be able to determine what keywords the high potential consumers are using in their searches to tailor the advertisements so that they reach more people who are likely to engage. Google currently offers four kinds of advertisements: Search advertisements, Display advertisements, Video advertisements, and App advertisements.
Search advertisements
These appear next to search results in Google when someone is looking for something similar to what Light of Life has to offer. Design a simple advertisement that tells the consumer a little about the Light of Life Jewel, and it will be posted to searches that it matches with. Be sure to include keywords in the advertisements that when people are using more specific searches Light of Life will be more likely to come up as an ad.
Display advertisements
These are AdWords advertisements that will be displayed across gmail and many other websites that are partnered with google. These advertisements can be highly targeted towards people based on what is known about the audience the brand wants to attract. Base these specifications on things like demographics or interests. Light of Life will have options of creating different kinds of advertisements.
Text advertisements, which include a headline, two lines of text and a URL.
Banner advertisements, which can include images, animation, and interactive elements.
Gmail advertisements, which shows custom advertisements on gmail so people can save, forward, or expand the advertisement in their inbox.
App advertisements, which allow the company to create a campaign to target specific mobile app categorizes.
Video advertisements
These are advertisements that will be featured on YouTube, either in the beginning of or next to a related video, or in search results. Light of Life would create a video ad, and then create a YouTube account and post the video. Then, use AdWords to start a campaign on Youtube. Light of Life will be able to target these video advertisements towards the audience that it is looking to attract. There is the option of creating different kinds of advertisements that can be targeted to different kinds of people to ensure that a broad range of consumers is reached.
Email is a great way to promote the product in all stages of the buying cycle. Email can be used to make consumers aware that the company exists and can pique their interest into the Light of Life brand. An initial introduction through email will lead them to the website where the consumer is given the option of signing up for a newsletter, or updates on changes to the product availability. Periodic emails will keep Light of Life in the minds of the consumer so that when the time comes that they need a product like the Light of Life jewel, it will already be at the forefront of their minds. After purchasing the product, emails will be useful in getting feedback on the success of the product. Sending an email with a survey, or a link to the website’s feedback page will help the Light of Life brand to gain credibility.
Keep in mind, though, do not go overboard with the amount of emails sent. People do not want to be receiving several emails a week with little reason behind them. Emails should be short and purposeful. An update here, a call to action there, but never spam the consumer with many emails that are not necessary. This could get The Light of Life emails banished to the spam box.
The emails that are sent to people should be treated the same as any form of advertisement. The purpose of it is to lead to engagement with Light of Life. Therefore the emails should include links to the website, a call-to-action, pictures, and catchy subject lines. Also, be sure to keep the actual content short and to the point. When it comes to email, there is always room for more testing and measuring of success.
Magazine advertisements
These are advertisements that will be purchased and published in magazines that align with the brand image of Light of Life. These can range in price based on the popularity of the magazine, the size of the ad, and many other factors. Because this type of advertisement pricing is situational, it is essential that a budget is established first, then compare it with the going rates for different types of advertisements in the magazines that Light of Life would like to be published in.
There are a few different options for the types of magazines that would align with the Light of Life brand image. Due to the broad demographic that the Light of Life brand would like to appeal to, coupled with the aspects that make Light of Life unique, the company would fit with a broad range of magazine brands. Technology magazines, such as Wired, would align with Light of Life based on the custom tech that was used to create the Jewel. On the other hand, fashion magazines, such as Elle magazine, would align with the edgy, stylish image that Light of Life represents. Light of Life would also be able to fit in with the image of a “mommy magazine,” as they will be targeting the main demographic group that the product would appeal to. As the brand gains more product options and a larger following, it will be able to fit into a wide range of magazine brands that appeal to many different demographic groups.
While magazine advertisements are typically thought of as an advertisement printed in a paper magazine, they also include the more modernized version of magazines, such as online news sites and blogs. These will also be able to help create a following and bring awareness and credibility to Light of Life. Small blogs and online news sites will also be more accessible for doing bigger pieces than just advertisements. Light of Life would be able to reach out directly to bloggers or journalists to write articles for the product or company. Light of Life could also reach out to a technology blog to write a piece on the innovative technology and design that went into the creation of the product. Or someone from the company could speak with a news site to get an article written to promote the launch of the product. Reaching out to bloggers to write an article would be the more cost effective option of the two; however, a news site would be able to garner more attention than a blogger, as they are not always specifically aligned with a certain topic as bloggers are and will have a broader demographic following.
Word of Mouth
Word of mouth is a form of advertising that involves allowing the established customer base to do the advertising. This stage will be useful for the post launch marketing strategy because at this stage Light of Life will be more aware of the ideal brand image and target audience, which is essential to successfully utilizing the strategy. Knowing the brand and knowing the audience will help Light of Life know how to present the product in a way that the audience will appreciate.
Light of Life will need to research their competition for this form of promotion. This will allow Light of Life to know what they can do that is better than the competition, which will encourage consumers to choose Light of Life over any other option. By striving to do things better than the competition, Light of Life will be in the minds of the consumers and they will be more likely to share the experience they had with others.
Another tactic would be to offer exclusive offers to influencers within the target audience. People are more likely to want something that they feel will make them closer to those they admire. By offer exclusive offers to high profile people and influencers, Light of Life will be given the opportunity to have feedback from those whose opinions are coveted. These influencers will also be able to share their experiences with their following and their peers which can help the product go viral.
Light of Life will also need to build an engaged social media following.A tight-knit community on social media is a necessity for successful word of mouth marketing tactics. This is where knowing the audience plays an important role. Understanding the target audience is necessary to determine how they like to communicate online. Once Light of Life establishes the best way to connect with the audience, they will be able to engage with them. Consistent engagement will consist of asking for feedback and offering discounts as well as actively replying to messages. When consumers engage with Light of Life on social media, it is important to respond so they feel that they are speaking to a brand with personality. When consumers feel that they can connect with a company, they are more likely to recommend it to others.
One of the most important aspects of word of mouth marketing is offering incentives. When consumers are rewarded for engagement, they are more likely to become loyal customers and brand advocates. Incentives can include special offers or exclusive content that would make them feel special and privileged, which in turn will make them want to share with others in their circles how they feel about Light of Life
Market Segmentation & Statistics
Trends and potential changes that may affect your primary target market
As the fashion world is ever changing, trends differ every season. Consumers are swayed by changing trends and tend to buy costume jewelry to change their look in an affordable yet fashionable way.
Consumers in the 25-45 category prefer to shop online instead of traditional brick and mortar shops, both for lower prices and ease of purchase.
Younger shoppers in the under 25 category are becoming aspirational shoppers, buying affordable indulgences as entry level luxury goods.
Annual incomes are rising steadily, with more households crossing the $100,000 mark. This uptick allows consumers to increase per capita spending, with more going to discretionary items.
Technology is constantly changing, with new software
Competitive Landscape
Competition Overview
As Light of Life enters the competitive market, it must be aware of the different types of competition it faces:
Mid-range fashion jewelry companies- These companies are already established in a competitive market, with a reputation to back their products. Consumers may wish to spend their money on traditional jewelry rather than something with a technological aspect.
Companies that manufacture similar products- Consumers may want a different shape or design, or may not want the hassle of having to remember to charge yet another piece of technology.
Luxury brands- Consumers are loyal to brands, and may want the clout of wearing or carrying the “It” brand of the moment.
Major retailers- Amazon controls over 20% of the e-commerce market, and is one of the first places consumers search for a product they have in mind.
Internal competition- It is relatively easy to launch an e-commerce store, so garnering a share of the market can be hard. Consumers will want to purchase from a reputable source, such as an already established brand with a similar product.
Competition Analysis
It is important to not only analyze the financial position of these companies, but to also gauge marketing position amongst other competitors. Companies that produce products that serve the same function to The Light of Life Jeweled Cross should be taken into consideration, despite not being specifically jewelry. The Competition Analysis tables below compares the main competition across the following competitive factors:
Product
Description
Competitive Features
Product Strengths
Product Weaknesses
Price
Target Audience
Year Founded
Promotion
Website
Social Media Presence
Press Links
Distribution Channel
Online Retail
Traditional Retail
Customer Reviews
Number of Reviews
Ratings out of 5 Stars
Table 1: Marketing Competition Analysis - Product
Table 2: Marketing Competition Analysis- Pricing, Target Audience, & Promotion
Table 3: Marketing Competition Analysis - Distribution & Consumer Review
Marketing & Sales Strategies - Not Sensitive to Timing to Launch
Branding
Business Dictionary defines branding as “The process involved in creating a unique name and image for a product in the consumers' mind, mainly through advertising campaigns with a consistent theme. Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers.” The Light of Life brand will embody an image of classy, stylish, cutting edge technology and jewelry. People who are exposed to the brand should get a sense of the product being a functional and convenient, yet fashionable addition to their lives. The Light of Life customers will be people who can relate to and are attracted class, style, and innovation, so every outward facing aspect of Light of Life must be tailored to promote the ideal image that the company wants to represent and attract.
An essential aspect of branding is paying attention to the details. Every advertisement, every page of the website, every interaction with the consumers must be able to tie back to the overarching theme that the Light of Life brand wants to represent. This way, whenever someone is exposed to something that is related to the Light of Life brand, they will be able to connect it to the other ways in which Light of Life makes them feel as if they are a part of a stylish, innovative community.
Packaging
To align with branding, packaging should be simple yet appealing to a broad demographic but must also align with the brand image associated with Light of Life.
Pricing
The Manufacturer’s Suggested Retail Price (MSRP) will be $99.95. This is the price of the base model of the Light of Life Jewel Cross. The price of the product can change based on customization, wholesale purchasing, discounts, and other factors determined by Light of Life. Pricing might not be as glamorous as promotion, but it is the most important decision a business can make. Price is important because it represents an assessment of the value customers see in the product or service and are willing to pay for a product or service.
Light of Life will be offering an introductory discount price of $80 per Jewel. This sales price will assist in boosting the initial sales of the Jewel. Consumers are more likely to purchase an item when a discount is applied. According to a 2013 global survey conducted by RetailMeNot, 51% of the participants stated that they were influenced by deals, discounts, or sales when shopping online. In the U.S., the same survey showed 56% of participants felt this way. People are more willing to buy a product when it is on sale, so discount act as a way to attract more potential buyers. Having this sales price for only a limited time will also assist in boosting sales as people are more eager to view the product when they believe they only have a small window to do so.
Consumers will have the option to customize the Light of Life Jewel as well. Some customization options will have an extra charge added to it. This will include having the jewel be made of silver or gold, which will cost an additional $15, or having customized tags attached. The added charge is important because it will encourage consumers to put more value on the product in its different forms. They will view certain options as more affordable or as more luxurious based on the different pricing options.