International Hair Cosmetics (IHC).

Social

• A fashionable society has become more prominent
• Growing focus on fashion and beauty
• Time spent using computers has increased, therefore increased possibility of selling online
• Managers must adapt their practices to changing expectations of the society in which they operate
• Values, customs and taste change

Economic

• Interest rates, inflation, changes in disposable income, share-market fluctuations, tariffs, trade restrictions and the current and future stages of the general business cycle
• The current economic conditions of the country, region, state and local area in which the firm operates
• The buying power of customers in our target markets
• The current spending patterns of customers in our target market
• The impact of stakeholder relationships that exist between the organisation and its external constituencies
• Upper-income consumers continue to see their wealth grow, while lower-income consumers continue to fall behind.  This reality has forced many firms to seek their fortunes among upper-or lower-income families but not both

Demographic

• Ageing of the world population in well-developed countries meaning that people can “look good” longer
• Increasing participation of women in the workforce meaning that women are no longer at home and are socialising, interacting and maintaining an image in the workforce
• Increasing number of single-parent families allowing for a more disposable income on luxury items
• Increased influence of a multicultural society and population diversity with specific needs

Sales Analysis

Since 1995 and the inception of Affinage to the marketplace, IHC has recorded sales increases in excess of 35% per year. 2003 has been a fantastic year thus far for IHC with a 28.5% increase on 2002. IHC now has an annual turnover in excess of $8 million per annum. Financial matters are kept in the strictest confidence of the managing director, as competition within this industry is fierce and disclosure of financial facts and figures may contribute to significant advantages for competitors.

Competitors

The major competitors in the hair industry include: (website address of companies)

• Schwarzkopf
• Wella
• Toni&Guy
• Goldwell
• L’OREAL
• PPS

Refer to Appendix (lwajflk) 

Target Market

IHC direct their advertising messages to women aged 19 – 70 years, depending on the product. Their primary target market is women aged 19 – 45 and women aged 45 – 70 represent a secondary target market. These demographics account for approximately 80% of sales. Men are also encouraged to use Affinage products and as such, account for the further 20%.

Affinage is French for “Refined” and as such, IHC’s slogan for Affinage is “Refined Beyond Compare”. Affinage is therefore positioned as a premium brand product for sophisticated, stylish, chic and somewhat wild women and/or “fashionistas”, of the afore-mentioned demographics.

---

Preliminary Market/ Issue Research Undertaken

In conducting this IMC plan, both primary and secondary research methods were used and together they play an integral role in comprehensively analysing IHC’s current service offering.

The foundation of primary research is a series of in-depth interviews conducted at a group members’ home along with several phone conversations with the firm’s manager, Mr Richard Jolly.

Observational research was initially used to gather primary data by observing clients, staff and situations relevant to the situation analysis of IHC. These observations were made whilst visiting the business in conjunction with the initial interview with the manager. Discussion questions from the interview were intended to gather information about the service.  Questions included:

• History of IHC
• Mission statement and Organisational culture
• Current clientele and target market
• Potential target markets
• Perceived competitors and the different service offerings they provide
• Current marketing strategy
• Management and staffing structure
• Future improvements to available service
• Administrative methods eg: database maintenance and customer contact methods, complaint management, customer/ employee communication

 

During the interviews with Mr Jolly, brochures and sample kits were collected, and this provided an insight into the firm’s current marketing communication tools.

A consumer questionnaire was also developed to gather primary data on how well recognised IHC are among the general public. The questionnaire was distributed to men and women within IHC’s target market to establish general recognition levels of the IHC product. Approximately, forty people were asked to complete a 10-question survey about their knowledge, attitudes, preferences and demographics. The twenty people who completed the survey were a probability sample selected by simple random selection.

Secondary research methods were also of great assistance in analysing IHC’s current marketing approach and tactics. Research was conducted concerning the organisations’ competitors including Schwarzkopf, Toni&Guy, Wella, Goldwell and L’oreal.

Journal articles regarding marketing and media strategies were tracked through a collection of various information sources including Internet and library searches.   Online investigation of major competitors was also undertaken to gather data concerning competitors in the hair industry.

SWOT

Advertising Objectives

The primary advertising objective for this media plan as described by the managing director of IHC is : “To make professional users (inc. the 12,500 hairdressing salons Australia wide) aware of the Affinage brand and image with subsequent reaction to request Affinage product through the 1800 number or our distributors”.

Important objectives that enhance the primary objective include:

          To encourage 30% of Australia’s hairdressing salons/professionals to utilise and suggest Affinage products to customers and clients by July 2004;

          To make 60% of the target market aware of Affinage products and services within 12 months of the start of the campaign (July, 2004); and

                  Create Internal Database for e-mail newsletter, and target market tracking, reassessment, and, redefinition;

                  Stimulate awareness within designated target audience, allowing for retrieval of information during the ‘consumer information search’ within the ‘decision-making process’;

                  Establish and focus on corporate identity; and

                  Promote International Hair Cosmetics website.

Competitors

IHC has four major competitors. They are (in order):

1. Schwarzkopf – http://www.schwarzkopf.com;
2. Goldwell – http://www.goldwell.com;
3. Wella – http://www.wella.com; and
4.  Loreal – .

Media History

IHC has had a healthy media history with promotional and advertising activity including:

        Posters and Banners;

        Affinage Introductory Kits;

        Hair Shows;

        A Website – http://www.affinage.com.au;

        Seminars, Colour Courses and Workshops;

        Trade Magazines – eg: Australian Hairdressers Journal; and

        Sponsorship of the Affinage Hairdressing Awards.

IHC’s advertising and media budget has been consistent at $100,000 for the last 5 years.  

---

MEDIA OBJECTIVES

Target Audience

Direct advertising messages to primarily women aged 19 – 70 years with disposable income living within Australia.

Demographics

        Australian women;

        Aged 19 – 70;

        Decision makers and Opinion leaders;

        Income of $20,000+;

        Single, Married or De Facto;

        With or without children.

This target audience definition is quite broad, however, it will not significantly affect media selection. There will be some spill over effects to other demographics including men.

Geographic Coverage

Utilise national media to support national brand. Year long advertising is desirable however, it is important to provide adequate advertising weight during the latter half of the year during changing seasons and holiday periods. Advertising campaign will be predominantly located in major metropolitan areas as this is where the majority of Australia’s population are.

Reach & Frequency Objectives

        Provide maximum affordable reach to attract new clients and customers;

        Maintain a minimum target audience frequency of 3+ in key markets during lead up to Christmas and holiday period.

Mediums are selected on their ability to effectively reach a large portion of the target market with each placement. It is important that frequency is consistent throughout metropolitan and regional areas to build awareness and increase information seeking.

Unique Selling Proposition

As stated, Affinage is “Refined Beyond Compare” however, the unique selling proposition of IHC is : “[IHC] Affinage products boast gentle formulas, with a low ammonia content and emulsified crème base which penetrate deep into the cortex producing completely natural coverage without damaging the hair structure”. 

This USP specifically and distinctly separates International Hair Cosmetics from its competitors.

Seasonality & Continuity

International Hair Cosmetics sells its product range all year round and it is the nature of the hairdressing industry to be eventful and demanding all year round. Therefore, sales are continuous with exception to an increase in sales in the lead up to Christmas and/or with the release of a new product.

Budget Considerations

IHC’s objectives are to be accomplished working within a budget of $300,000. This is the figure that has been allocated for the last 5 years of IHC operation, for advertising and promotion. The monetary allocations, 70% Metropolitan and 30% Regional, are set in accordance with the population distribution of Australia.

The budget for this media plan will take into consideration:

        Upkeep of present media vehicles;

        Selection of new media vehicles; and

        A small quantity of funds that can be utilised if any existential costs materialise.

Media Objectives

          To emphasise maximum reach with media selections to spread Affinage

enthusiasm whilst generating a frequency of 3+ to aid in message retention, information seeking and establish separation from Affinage competitors;

        To select and utilise specific media that appeal to the afore-mentioned target market demographics; and

          To use media selections that maximise cost efficiency and fall within the projected budgetary limits.

---

MEDIA STRATEGY

The Affinage campaign will use a flighting scheduling pattern in accordance with the nature of the product but will also maintain a continuos schedule year round.  

The Affinage campaign aim is to increase enthusiasm within hairdressers about Affinage and encourage them to ask for Affinage when next at the hairdressers.

Media usage will be carefully selected to deliver the most appropriate, effective and efficient media vehicles to fit the overall campaign goals. The campaign has been divided into two phases, the first, a direct mail-out and web-site update, and the second, a mainstream media advertising campaign.

Phase One

        The Direct Mail-Out - A national mail-out targeting hairdressers with kits, brochures and postcards.

        The Website - A fully operational Affinage website.

Phase Two

        Mainstream Media Campaign - A predominantly mainstream media campaign using predominantly non-broadcast mediums.

Media Selection

It is essential that mediums selected for use in the campaign are widely used and accepted by the target market. Due to the budget available for the campaign, it is imperative each media selection reach the greatest portion of the target audience in the most cost effective manner

A mainstream media campaign will advertise and raise awareness of Affinage using predominantly non-broadcast mediums. Magazines, Point-of-Purchase will be used with a small amount of outdoor advertising in Metropolitan areas.

Direct Mail (Kits & Brochures)

A nation wide mail-out targeted to hairdressing salons/professionals encouraging them to seek further information about Affinage products and services. Direct mail is low cost and a highly targeted medium with immense creative potential and personal impact.

Strengths of Direct Mail Kits & Brochures include:

        Capable of targeting specific groups;

        Production costs can be tightly controlled;

        Can cover every business;

        Response rate is easily measured; and

        Mailings can be personalised.

Direct Mail (Postcards)

These types of postcards will be utilised :

        ‘Prospecting’ postcards help get messages out and find potential clients;

        ‘Thank you’ postcards sent to current or past customers show them that your business remembers them, even after the sale has been made; and

        ‘Reminder’ postcards serve to remind past or potential clients that they need your product or service. (PostCardPower Homepage, http://, 2003)

Reasons why postcards should be incorporated as part of marketing efforts:

        Cost efficiency - Printing costs are lower than a full size direct-mail package because there are no envelopes, inserts and/or other materials that need printing.

        More likely to be read. Some people are apprehensive about opening envelopes from businesses they don’t recognise. Furthermore, the envelope is a barrier to your message because you need to convince the recipient to actually open the envelope to read your offer.

        

        Multiple uses. Creating a postcard can announce things like a new product or service, a new Website launch, a new location or expansion, and/or new promotional events.

        Measurability. Advertisers can measure the effectiveness of their campaign on several levels.

        The Word Spreads. When someone mails a postcard to a friend, they

expose a secondary audience to the advertising message, thereby dramatically increasing the reach of a campaign.

        

        Every Card Counts. If someone isn’t interested in a particular product, they

simply won’t take that postcard. This means that each and every postcard enters the hands of the people who are inherently interested in the message being communicated.

        Postcards are Unobtrusive and Subtle.  (GoCard Postcard Advertising, 2003)

Yellow Pages

Strengths of the Yellow Pages include :

        Reaches customers at exact time they are ready to make a purchase;

        Can accommodate a great amount of information;

        Has a solid, proven reputation; and

        Every house with a phone has one.

Magazines

Magazines will be included in the media selection for the following reasons:

        Magazines are highly segmented and are therefore suited to niche markets rather than a wide reaching campaign;

        A medium extremely popular with the target market;

        Magazines that target large audiences are primarily distributed nationally; and

        Can be read, re-read and even passed on creating greater reach and frequency.

Billboards

The strengths of Outdoor Advertising Billboards include :

        Colourful, large billboards with striking images and brief slogans get         noticed;

   Can be illuminated and animated;

        Variable locations;

        Effective for communicating simple ideas;

        On display 24 hours per day 365 days per year; and

        Can support advertisements in other media.

As well as billboards, a really cheap and somewhat effective advertising option is to place the Affinage Website details on work/personal vehicles that may stimulate interest.

Internet

The Affinage website will be used to communicate the products available, up-coming dates and times of workshops, seminars and training days and even new products, contact information, some information on hair treatment instructions, frequently asked questions (FAQs) and the introduction of E-Cards.

        Once established, websites can offer a wealth of information at a considerably low cost; and

        Websites are highly flexible, and change to information and creative messages are relatively easy to modify.

Public Relations

Public relations will also generate publicity via the website and issuing a continuous stream of media releases, profiles, stories and interviews to local hairdressing outlets in all areas of the country discussing such things as products, hairdressing tips and tricks and the Affinage Hairdressing Awards etc.

Media Not Selected

The following media were not selected for the IHC Affinage campaign. Although they may have corresponded with media goals, they did not meet the budgetary restrictions.  

Cinema

Cinema advertising, although captive, will not be used due to the following reasons:

        No guarantee that it would be a popular movie season thus will not achieve reach and frequency objectives;

        With such a large market, very expensive;

        Fewer cinemas available in regional areas;

        Have to advertise in numerous movies to achieve reach objectives.

Promotional Products Marketing

Promotional Products will not be included in the campaign because:

        Small distribution time frame;

        The target market is too large to hand out promotional products to a reasonable percentage without overspending; and

Television including Pay Television

Although free-to-air television advertising would be ideal and incredibly effective because of the use of colour and sound and being able to target the preferred demographics, it is just too expensive for the IHC Affinage advertising media campaign. Considering the amount of channels and timeslots in each major Australian centre, it is not a viable media option.

Pay Television has not been selected in the media mix due to the following:

        Pay Television has major limitations as only a small percentage of the target market subscribes to Pay TV;

        Cost involved;

        Too many suppliers to be cost effective - Foxtel, Optus, Austar; and

        Advertising is easily ignored with the wider range of channels to surf.

Radio

Radio will not be utilised in this campaign due to :

        Difficult to measure effectiveness;

        Cannot demonstrate or show the product;

        Time limitation on messages;

        Hard to tell if your demographic is listening at that time;

        Difficult for people to remember details without written copy; and

        Ad may get lost in the advertising clutter.

Newspapers

Weaknesses of Newspaper Advertising include :

        Rates are climbing faster than circulation;

        Circulation does not necessarily mean readership;

        Does not effectively reach 18 - 34 demographic;

        Advertising deadlines;

        Ad may get lost in advertising clutter.

Internet

While the use of the Internet will be utilised through the Affinage website, Internet advertising such as banner ads, skyscrapers and pop ups will not be used because :

        Research indicates that most Internet users ignore these advertising messages;

        They are perceived as intrusive and highly irritating creating bad image for Affinage;

        Limited control over who views these advertisements creating wastage;

        Limited creative options.

Miscellaneous Media

Miscellaneous media such as skywriting / skybanners, shopper dockets, supermarket shopping trolleys, transit media including buses & bus shelters, taxibacks and/or trains, airport inflight magazines, trailers, laser lights, hot air balloons / blimps and SMS will not be utilised because of the costs involved, the perceived wastage on people not in the target market and the “kitchness” of these media.

MEDIA TACTICS

Specific Media Selected

Direct Mail (Kits & Brochures)

See Appendix for an example of Direct Mail Kits and Brochures. Due to the cost of compiling promotional kits, customers and clients will use these as a follow up to expressions of interest. Direct Mail Postcards will make the initial contact. Kits and Brochures are currently part of IHC advertising efforts and will be continued due to their high impact. The amount allocated to Kits and Brochures is $35,000.

Direct Mail (Postcards)

The list of venues where postcards are displayed includes:

• Cafes
• Restaurants
• Cinemas
• Theatres
• Bars
• Nightclubs
• Arcades
• Gyms
• Retail Shops
• 5, 4 & 3 Star Hotels
• Airports
• Hairdressers
• Universities & TAFEs
• Advertising Agencies
• Music Stores

Australian Postcard Company - Avantcard

Pricing includes restocking and servicing of postcards by Avant Card until all postcards have been distributed or on display for a 2 - 4 week period. Clients can pick and choose where postcards are displayed from 1,500 outlets Australia wide including New Zealand. (Avant Card Homepage, 2003)

Yellow Pages

Advertising in the Yellow Pages and Yellow Pages Online is already part of the advertising efforts of IHC. This will be continued as it is a first-class reference point for customers. Allocation of funds $5,000.

Magazines

IHC will utilise trade magazines and target market consumer magazines to advertise their product range.

Trade Magazines

Australian Hairdressers Journal

Target Audience : 18 – 45 year old women / hair professionals

Readership :         ~ 20,000

Size of Advertisement : 29.5cm x 23cm

Number of Placements per issue : 2

Coverage : Australian hair and beauty salons

Frequency : Monthly

Rates :         Full Page/4 colour casual @ $1050 x 12 months = $25,200.

Australian Professional Hairdresser

Target Audience : 18 – 40 year old hair professionals

Readership : ~ 15,000

Size of Advertisement : 27.5cm x 20.7cm

Number of Placements per issue : 2

Coverage : Australian hair and beauty salons

Frequency : Monthly

Rates : Full Page/4 colour casual @ $1300 x 12 months = $31,200.

Target Market Consumer Magazines

Cosmopolitan

Target Audience : Women aged 18 – 34 years

Readership : ~ 748000

Circulation : ~ 224576

Size of Advertisement : 27.5cm x 20.7cm

Number of Placements per issue : 1

Coverage : In vogue/chic/stylish Australian females

Frequency : Monthly

Rates : Full Page/4 colour casual @ $14040 x 3 months = $42,120.

Marie Claire

Target Audience : Predominantly single, career-orientated, financially independent, well-educated women - 18 – 40 years.

Circulation : ~105026

Size of Advertisement : 27.5cm x 20.7cm

Number of Placements per issue : 1

Coverage : In vogue/chic/stylish Australian females

Frequency : Monthly

Rates : Full Page/4 colour casual @ $14490 x 3 months = $43,470                 

Billboards

Example 1 of Billboard

Example 2 of Billboard

Outdoor advertising will be displayed on major metropolitan motorways in all Australian states. It is estimated that an average of 250,000 people per state will see the advertisements daily to and from metropolitan locations. The money allocated to Outdoor Advertising is $50,000.

Internet

Because the Affinage website has been developed and established in previous budgets, maintenance will be the only budgetary consideration. The amount allocated for maintenance is $10,000.

BUDGET ANALYSIS

The budgeting method fundamentally followed an ‘all-you-can-afford’ budgeting strategy. Simply stated, the budget was set before the objectives were established. The tactic for allocating the budget to certain media vehicles focused on directing the budget where the sales potential was the highest, alongside a continuous primary media. The selection of the mixed media also minimised the risk of budget wastage by using various media types. The objectives have, however been able to fit in to the parameters of the budget limitations and the overall media plan designed should benefit International Hair Cosmetics in 2003 - 2004. Amounts are for IHC financial year 1st July, 2003 – 30 June, 2004.

Direct Mail (Kits & Brochures)                 $35,000.

Direct Mail (Postcards)

        

20000 Postcards =                                 $6759.50

Back postcard layout and design =                 $242

Front artwork, concepts, layout and design = $1650

Web site Gallery & Link (one-off charge) =         $110        +                

                                Total                $8761.50

Yellow Pages  Allocation of funds =                 $5,000.

Australian Hairdressers Journal =                 $25,200.

Australian Professional Hairdresser        $31,200.

Cosmopolitan =                                $42,120.

Marie Claire =                                 $43,470                 

Outdoor Billboards                                $50,000

Internet Affinage Website maintenance =        $10,000

Public Relations                                $40,000

TOTAL MEDIA SPEND                $290,851.50

Time Frame and Action Schedule

---

Bibliography

Affinage Website (2003) [web page] URL : http://, accessed 5th May, 2003.

Batra, R., Myers, J. and Acker, D. (1996), “Advertising Management”, 5th edition, NJ, Prentice Hall.

Belch & Belch (2001), “Advertising and Promotion”, 5th edition, USA, McGraw Hill.

CFDCCariboo Website (2003) “Developing a Media Plan”, [web document] URL : , accessed 25th May, 2003.

Goldwell Website (2003) [web page] URL : http://, accessed 5th May, 2003.

Loreal Website (2003) [web page] URL : http://, accessed 6th May, 2003.

Queensland University of Technology (2003) AMB222 – Media Planning Guide, semester 1, 2003.

Schwarzkopf Website (2003) http://, accessed 6th May, 2003.

Interview with Managing Director of International Hair Cosmetics, Mr Richard Jolly – conducted 7th May, 2003.

Avant Card Homepage (2003) [web page] URL : , accessed 24th March, 2003.

GoCard Postcard Advertising (2003) [web page] URL : , accessed 24th March, 2003.

XRAYMEDIA.COM – Premier Media Solutions (2003) “Creating Direct Mail Materials”, [web document] URL : http://, accessed 25th March, 2003.

PostCardPower Homepage (2003) [web page] URL : http://, accessed 25th March, 2003.