Analysis of Marketing Promotional Strategies of LondonDungeons

There other types advertising such as, newspapers, cinema, trade fair, and exhibition where's it's expensive or don't have enough resources to comply in communicating to the public. Or how it might be a negative image among certain groups, or can carry only short and simple messages or audience may only view massages briefly.

Overall advertising for London Dungeon that it allows them to have a good image and assist them in building their brand awareness. It also is an effective ways for the company in reaching a wide range audience especially through the Internet. Repetition of their brand and product positioning helps them to build customer trust. The drawback of advertising for London Dungeons are that competitors might use advertising more effectively then them and how advertising is impersonal which it cant answer all of customers question.

Sale Promotions: This is used to boost up sales of their services/products and to increase Public relation (PR) by doing the following sales promotion:

Prize Draws: By encouraging the viewer to registering and how they are automatically entered prize draw to win a prize. This year the winner wins a free ticket to the Dungeons for some spine-tingling fun this Halloween. They do the prize draw monthly and again they do this through the Internet. They refer this campaign as 'the worst campaign.

Temporary price reduction: The Company uses price discounting that is a discount to the selling price of the service/product by if there are groups made up of 15 and more people they would receive preferential rates. This allows increasing sales from price promotion, which is at an expense in loss in profit so they use it with care.

Overall this stimulates quick increase sales by the use of prize draws, price promotion. This is a good short-term tactical tool used by the business. However if they use this over a long-term period, than customers will get use to the effect and not only that but too much use of sales promotion may damage the brand images especially the use of point-of-sale displays.

Public Relations: The business does not entirely focuses on profitability but tries to establish and maintain goodwill and mutual understanding between the company and it's public.

They identify their relevant public through market research or encourage potential viewers to register on their web sites in order to gain primary data of their like, dislikes, and attitudes towards their services/products provided. That's how London Dungeons are influence by the opinions of those by the public to:

* Reinforce favourable opinions

* Transforming perhaps neutral opinions into positive ones

* Changing or neutralising hostile opinions

They do this by carrying out, prize draws and monthly polls on their web site. For London Dungeons it's difficult to measure whether the key message have been communicated to the target public (family entertainment). This is quietly a costly process that involves research. They do this by conducting market research through the use of questionnaires (primary research as shown in the appendix). Using the precise format to deliver the quality of information that London Dungeon requires improving customer satisfaction. The firms main measure of effectiveness concentrates on the process of public relations to measure the number of enquires received in response to specific relation efforts.

The company uses PR because it's a cheap way of reaching many customers by carrying out Internet polls on their web site to achieve publicity. The drawback is that the risk of losing control because they cannot always control what other people choose and feel towards the services/products that London Dungeon provides.

Branding: The Company encourages its sales by creating a brand that differentiates them from their competitors. They increase the level of power of their brand by selling their own label products i.e. pens, key rings, and tee shirts with the London Dungeon Logo. London Dungeon brand emphasises the organisation quality. Through branding their selling products it can be used for advertising to increase sales. So this is worth a great deal of money to the company and that the brand should be held in high values.

Merchandising: This is an important part of the promotional mix of the company in product presentation such as display. How London Dungeons makes the exterior display more innovative that makes it attractive and differentiates from it rivals. The control of their image and presentation assists the company in promoting their brand. Catching consumer's eyes based on the history of London scary and daring and at the same time entertaining. Having more effective displays promotes the service to potential customers and presents their products to be viewed by them more effectively. The advantage of packaging is that it adds value to their service/products

Packaging: London Dungeon packages its services/products by presenting itself to public for the beneficial of the public. They package their branded products that contain their brand logo on the product and the package itself that also can be used for advertising. So this enhances the image of the cooperation and increases the number of visitors.

Direct Marketing: London Dungeon uses direct marketing to interact directly between them and its public especially through the use of the Internet. How this get through to customers in a cost effective way. Using the Internet because it's a cost effective way and uses of internet polls to gain first-hand knowledge of the individuals' opinions, likes, dislike, and what motivates them. So if direct marketing not used efficiently it can lead to an unnecessary wastage in the company's resources

Joint Promotion: London Dungeons promotes its brand and corporate image by joining promotions with other firms but not efficiently as Madame Tussauds. They have joint promotion with Queen of the Damned, Coco Cola, Horrible History, Black Night which these are all hot links on their web sites (as shown in appendix) and how the other businesses promotions advertise London Dungeons brand and image and at the same time staying ahead of competitors

Analysis of Marketing Promotional Strategies of Madame Tussaud:

In creating a marketing department for Madame Tussaud their plan is to expand and meet the needs and requirements of their visitors and their potential visitors. By improving the accuracy, consistency and level of details of information relating to visitor profile, admission, and marketing scheme through the use of promotion. How this assists them in targeting admission while increasing and maintaining customer satisfaction.

Product: The business markets their winning product in 1997 for the leading paid for London attraction. The company's' marketing department becomes more prominent by the increasing numbers of customers. Not just being a British product but for visitors overseas, to encourage them to visit the company so not only marketing it to UK but to the top five markets. How the company promotes their product uniquely differentiating from its competitors and through the use of different types of promotions to become well known.

Pricing: This is a delicate issue to their marketing mix, which the company considers the following factors when developing their appropriate pricing strategies:

> What prices are their rivals charging?

> How the customers are affected by currency exchange rates and Inflation?

> Are the company likely to increase overhead

> What customers will pay while at the same time in their eyes it good value for money? If not why?

Considering this factors how it will allow the firm to stay ahead of their competitors in the market. Also if inflation increases they have to consider increase their price. But at the same time would visitors pay and them seeing it as its value for money.

Promotion: Promotion is all about Madame Tussaud communicating with its customers.

Advertising: The firm uses these in a diverse way communicating to inform, persuade, and remind vary target markets. Advertising is deigned to state the 'new face' of Madame Tussaud. They communicate in a simple language that is visually impacting and their message appeals to all. They considered that majority of the business from overseas so the advertising campaign has to be simple therefore messages can be communicated to viewers finding it easy to understand from. How different type of media is used because different visitors have different interest that reflects on the diversity of the product offered. Their media is highly concentrated in London where it's based itself to make the utmost impact at the point of decision of visitors. The company advertisements are trying to communicate that they can get you close to famous people and experience a licensed intrusion into their world. They use their company brand in form of a logo so be to assist them in communicating their brand

The marketing department uses slogans to communicate their brand, and in 1998 they communicated their brand is 'who will you have a close encounter with'

Number of types of media used by the company:

Television: They advertise their newest attraction on digital TV on Channel: Nicktoons at 8:00am mainly because that's when children tend to watch to watch cartoons and maybe the time where it's low cost for exposure at day time. TV is used because it reaches to everyone and generates attention.

Transport Posters & Bus Sides: These are used mostly in London where it's the heart of the business and this has a high impact on point of decision and the advantage of using posters that it's attractive and eye catching by the use of colours and creative possibilities however audience might view message briefly and that it can only carry only short simple messages.

Internet: They use their web site (www.madame-tussauds.co.uk) for viewer to interact with Madame Tussaud and can directly link to purchasing tickets online and plan their events in advance. The layout of the web site reflects on the 21st Century communicating in an understandable and structured way.

Direct Mail: The Company uses this on a large scale in sending mails to visitors' geographical areas because 70% of their customers come to visit from overseas. They use this because they can deliver lengthy, complex messages and could be used for future references. Where there are no competing ads and that it assists Madam Tussaud in measuring and monitoring their performance easily. The drawbacks are that might be pictured as junk mail and tends to have a low response rate.

Leaflets: The Company uses this to inform visitors about up coming new attractions and these are leaflets are used because they are cheap to produce. Where Madame Tussauds distributes the leaflets where there are thousands of people in a busy (in the heart of Greater London). However leaflets are not very effective way in informing the public because it might be targeted at the wrong target market. Where some people might not won't to be interrupted or don't have time to waste especially in London but on the other hand it may grab the attention of tourists.

Exhibition & Trade Fairs: The Company uses this because it gives opportunities to the marketing department to target appropriate part of trade and industry i.e. travel industry. This is done annually so that they can communicate first-hand knowledge of new product development and pricing structured efficiently. How trade presses allow Madame Tussaud to increase visitor levels and also attract potential clients by boasting it status as being London's' no.1 attraction.

Radio: This uses company assists them to target geographically and also used for public relations purposes in informing the listener (e.g. celebrity on air). The drawback for using this is that they cannot convey difficult messages

The other type of media i.e. give-aways, magazines, billboards, and cinema not used because where they lacks in visual effects or cannot convey complex messages and how theses might be expensive to communicate more effectively. Or the possibility that the marketing department don't have enough resources to uses these type of media tools. Overall it reduces the company overheads in not using less effective media tools. And also allows them to concentrate on their current and consistent use of their existing media tools

Overall advertising attempt to create demand for their goods/services and promotes their brand image of Madame Tussaud to increase market share in their existing market and stay ahead of competitors

Sales Promotion: Sales promotions are used to communicate the company's brand to a wider audience and to increase the level of number of customers in off peak times. Their promotion usually takes the form of 'plus kids go FREE to Madame Tussaud' that has to be used before the valid offer ends that encourages them to come and visit until the offer end. By doing this it aids them in being more competitive with their rivals. The company does this through an agency called Mercier Gray Communications to meet the company's specific objectives. Majority of their promotion are aimed at the domestic audience and the company uses geodemographic segmentation to target different sections of consumers (e.g. Families, Tourists, Children, and different areas in a 2 hour travel time etc) more efficiently. Profitable promotions have included in Spider Man 2, CoCo Pops and the Sun Newspaper.

Public Relations: Again Madame Tussaud uses various in-house and agency used to maintain public relations for The London Division in the UK. They use major media to inform and create desire and interest through celebrity unveiling, TV, and radio so these used helps them in developing positive PR between Madame Tussaud and its public.

Branding: Madame Tussaud positions its branded services/products in the market that differentiates them from their competitors and is their unique selling point. From branding its services/products giving it value and how the brand reflects on the image to gain consumer confidence and used to motivate them in their buying their services/products provided.

Direct Marketing: Madame Tussauds uses direct mail to send mail to potential customers located in different geographical regions. Therefore encouraging the public to visit the company and can identify their potential visitors in different geographical areas.

Merchandising: This is used efficiently by Madame Tussauds because they have information available showing the map of Madame Tussauds and guiding them around the company. Also uses at its status of being London no.1 attraction at the point of decision effectively to encourage and motive the public.

Comparison of London Dungeons & Madame Tussaud Promotional Mix Analysis

Both companies decided to take a more effective approach to marketing its services/products and invested in creating marketing departments. Where their main objective is to expand and to help them to market penetrate, market development, product development effectively in a way that also meets the needs and requirements of the visitors. The companies use different promotion mix's' to help them to achieve their different objectives. The companies use advertising to communicate with the public in the prime media i.e. television, posters, press releases. Madame Tussauds communicates through TV and the Internet as its prime media whereas London Dungeon uses point-of-sale and the Internet to attract customers and its potential customers.

They both use the Internet as its prime media but have different approach. London Dungeons uses the theme of dungeons bringing the darkest chapters of history screaming and often laughing hysterically into the 21st Century and web site having the theme of death, disaster, and evil deeds but at the same time entertaining them. And the web site can be communicated in another language (Dutch) whereas Madame Tussauds don't offer this feature. But Madame Tussauds have the 21st century approach by using effective and attractive colours and is structured well making it easy to use and easier to book online. Overall the most structured and easy to navigate layout of the web site is Madame Tussauds web site. Their advertising campaigns intend to persuade and to inform consumers their unique existence.

The type of advertising not used by both firms is:

* Cinema Advertisements: Because it's a waste of the companies' resources.

* Give-Away, e.g. Calendars: Because people may take advantage of it and never visit the companies as the same time increasing overheads of the businesses pointlessly

* Magazines & Journals: Because they don not reach their target market effectively.

The types of sales promotions not used by both firms are:

* Loyalty Cards: Because people don't tend to remember to bring their loyalty card so the businesses are not capable in getting sufficient information about the consumers attitude which instrument of the wasting of the companies resources.

The types of direct marketing not used by both firms are:

* Interactive TV: Because there is no service that allows the companies in communicating its services to potential visitors on channels.

Proposed Marketing & Promotional Strategy for London Dungeons

Marketing & Promotional Objectives:

* To improve the overall profitability of both London Dungeons & Merlin Entertainment

* To enhance the corporate image - So that London Dungeons will be envied of its competitors

* Strong Opinions - Resolves to express those opinions forcefully at the highest level

* Commitment - Promoting its services/products as well as it can be done

* Innovation - Constantly push back the barriers, to find new, and creative ways of delivering an even better promotion mix for the consumers

* Combative - Resolve to take on competitors regardless of relative size. The bigger they are...!

* Enthusiasm - Create an atmosphere of genuine passion for their brand and their relevant activities.

* To become leading name in location based, family, entertainment

* To ensure the 'joint ownership' of objectives generates both competitive advantage and long-term business opportunity

Targeting market: London Dungeons will be using demographical segmentation this allows the company to identify market opportunities and meet their marketing objectives. Demographic segmentations allow London Dungeons to break down the population down into specific types thus enabling them to target the families within the M25 and children's and target visitors from overseas.

Unique Selling Point: London Dungeons unique selling point (USP) it that they dungeons brings the darkest chapters of history wailing, screaming...and often laughing hysterically... into the 21st Century. Using Death, diseases, evil deeds, and disaster as their theme but entertaining at the same time that differentiates them from their competitors

Promotional mix: Types of Promotion proposed:

* Using TV Commercials to advertise according to their Deadly Diary and use their USP, during daytime and peak times on family channels such as NickToons, ITV

* E-Commerce- Using Web site (www.thedungeons.com) to create interests and desire to motivate public to visit the firms' new attractions

* Point of Sale - By placing the products with brand at till points at the shop to create desire for the product and attracting children's in families so their they persuade their parents to buy the branded product

* Transport Posters & Bus Sides in different key towns in London and mainly concentrate in Greater London where potential customers will be able to observe the advertisements. Reaching a larger and wider audience because advertising on bus sides give the advertisement to moving around London. This will be mostly done in the summer when tourists and families will feel like visiting London's attractions. Transport Posters & Bus Sides are at the cost of £400 Per poster per month

* Sales Promotion: Using discount on vouchers in the form of 'plus kids go Free...to London Dungeons' in off peak times (February, March) that would be advertised in the press and continue to use prize draws monthly to encourage them to visit and also going to be used for repeating sales

* Using joint promotion to enhance the cooperate image. For example London Dungeon could use a joint promotional strategy with Horrible History whereby getting young children to visit the business and at particular period informing that they could be entered and could win tickets to the other dungeons beside the London Dungeons.

* Merchandising: Where they can present more efficiently to what customers want by carrying out internet polls and questionnaire to gain first hand knowledge. So their can present in meeting their objective and the wants and requirements of customers and London dungeons would find out in what attracts them and then this can be a tool in customers recommending others by the use of word of mouth.

* Billboards: This would be mainly used in the Key sites in greater London so that information about London Dungeons can be passed on to potential visitors that will receive and easily understand from.

* Direct mail: This allows London dungeons to target precisely in different geographical locations in UK and how this could be used for future reference e.g. can be used for monitoring the company's performance.

The Effective Communication Channel:

* Getting simple and uncomplicated messages to majority of the population all over Europe.

* Making it easier to measure performance

*

* Web site creates interests and desire to motivate public to visit the firms' new attractions & sing the Internet with no additional cost for reaching globally.

* I would measure London Dungeons effective use of communication channel through carrying out market research and direct mail to monitor the performance in the effectiveness use of communication channels

Formation of Message:

AIDA is a form communication model, which London Dungeons can use to aid them in selling their services/products. AIDA is a short form for Attention, Interest, Desire, and Action. It will help the company so when their product is launched the first goal is to grab attention. Which the business can do this by the use of advertising that uses their well-known personalities to sell their products. Once London Dungeons grabs their attention they can hold Interest, through promoting features, clearly stating the benefit of London Dungeons service/product has to offer. The third stage is desire; the business can use different sales promotion such as price promotion to create product desirability to the consumer or by displaying it. The final stage is the purchase action; if the company has been successful with its strategy then the target customer should purchase the product.

The Legal & Ethical Issues in Message Creation:

In the message of creation London Dungeons need to do the following:

> Using advertisements that treats everyone equally

> Using legal, suitable, decent, honest and truthful advertisements that will not offend the viewer otherwise the ASA (Advertising Standard Authority) will get involved and it could lead to bad publicity

Evaluation:

Using Promotion according to the family segments help London Dungeons in the following ways:

> Market Penetration - increasing the value of sales in their current market

> Product Development - Meeting specially the needs and requirements in the family entertainment market

> Market Development - To develop their existing services/products in the family segment that may identify new potential market

> Diversification opportunities - To enter into new potential market with new innovative services/products

Overall the marketing promotional strategies that will assist London in meeting its objectives in their future development

AVCE Business: Unit 7: Promotion 02/05/2007

1 By Adil Malik