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New Media Marketing

New Media Marketing Plan


Module Leader: Ricardo Benzo Due Date: 12 April , 2013

Group Members: Benjamin Oezsanay 173189 Anousca Aykaz 174200 Alicia Grifth:174202 Marie Jacob 142709 Stephanie Schulze 173190

Table of Contents

1. About Fnac 2. Situation Analysis


2.1 SWOT Analysis 2.2 Positioning 2.3 Digital Competitive Analysis

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3. Overall Marketing Strategy and Positioning


3.1 Marketing Objectives 3.2 Strategy 3.3 Target Audiences 3.4 Internal Marketing

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4. New Media Marketing Campaign


4.1 New Media Objectives 4.2 New Media Strategy 4.3 Continuous New Media Activities 4.4 12-month New Media Campaign Activities 4.5 Measurement and Evaluation

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5. Conclusion References Appendices


Appendix 1: List of Competitors Analysed Appendix 2: Positioning Maps Appendix 3: Online Benchmarking

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1. About Fnac
As a subsidiary of the group PPR Kering, Fnac is the leader in the distribution of cultural property and leisure activities. It is the only one that offers, in a unique space, an unequalled assortment of six products: books, records, micro computing, sound, video and photography.

It employs more than 17,000 people and operates 158 stores; 85 in France and 73 elsewhere in the world (Belgium, Brazil, Spain, Italy, Portugal, Switzerland and Morocco). Its website, www.fnac.com, is one of the foremost BtoC e-commerce sites in France in terms of the public it reaches, with an average of 750,000 unique visitors daily. (PPR,2013)

2. Situation Analysis
The economic crisis over the last six months has led to a signicant decrease in household spending in Europe. In France, for example the publications (books, music, lms and games) and technology goods markets have experienced a severe decrease in popularity, leading to a decrease of 15% reduction of the sales of electronic goods in 2012.

In 2012, FNAC announced an 80 million euro cost-savings plan. This cost-saving project consists of a major programme to reduce overhead, including: - A drastic reduction in routine expenditure - Renegotiation of leasing costs for our entire network of stores (156) - A general review of technical services contracts concerning headquarters, stores and logistics, in order to optimise terms and conditions. - The suspension of recruitment in all countries, a wage restraint policy and the cutting of 310 jobs in France. (PPR, 2013)

2.1 SWOT Analysis INTERNAL Strengths


Large, well-known store, strong brand awareness Online chat help available on the website Many offers and discounts available Strong relationship with members Active on major social media platforms, with timely customer service responses Community pages for members Only retailer that is offering electronic and cultural products both in one store online and ofine FNAC 2015 plan to reposition the brand

Weaknesses
Lack of customer support in-store Social media engagement is not encouraged Benets only for FNAC members with no apparent drive to gain more members Product display both online and in store is very busy. Cannot clearly see what the product looks like online have to go in store. No language options for website. Only available in French. Prices are not displayed when item is out of stock.

Opportunities
Consumers are searching online for product reviews to compare retailers products online before going to the store.

Threats
Smaller, more niche stores emerging which offer a more personal service Economic crisis in France and all over Europe, consumers are becoming more price-conscious. Numerous competitors in the different product categories

High brand loyalty among consumers tied to brand knowledge and emotional connections to brand personality (source)

EXTERNAL

Extended Analysis of SWOT


Strengths Weaknesses

Weaknesses/Opportunities Strengths/Opportunities Use social media channels to Opportunities maximise customer engagement Community pages are a good place to start consumer research Create and engaging company blog Alert customers when items are restocked Expand consumer reach by giving more language options on the website.

Strengths/Threats Because it is such a large brand, Threats there is no focus on brand personality

Weaknesses/Threats Customers may be inclined to go directly to competition even if they prefer FNAC

2.2 Positioning
Due to its large product variety FNAC is competing in a highly diverse market environment. Fnac currently has a plan in place to reposition its brand, known as Fnac 2015. Fnac is going on the offensive as the sector experiences many technological transformations, rapidly evolving modes of consumption and renewed competition, notably on the internet.

This strategy is based on three key principles: Expanding the product range to encompass a wider array thus making Fnac the Leisure and Technologyspecialist. Giving priority to customer relations. Fnacs obsession is to place the customer at the heart of its businesses and organization. Focusing especially on the family market to offer all family members and especially children the solutions they expect from Fnac as far as products, services and easy buying are concerned.

(PPR, 2013)

2.3 Digital Competitive Analysis


In order to analyse Fnacs current online performance, only the two main product categories, electronic products and books, were considered. The benchmarking includes both online and ofine retailers, which are categorized in solely online, as well as online and ofine selling retailers (see appendix 1).

The positioning map (see appendix 2) considers the biggest competitors in each segment, as well as their prices and product variety offerings. Based on this comparison Fnac is not only offering a strongly limited product portfolio, but also higher prices than their competition.

E-marketing efforts (see appendix 3) were also analyzed, resulting in the following ndings:

Online trafc
Fnac is showing a strongly spread online presence, which can be seen by the high number of other websites linking to it and the comparatively high ranking (Frances 67th most visited website), which indicates a high online trafc. The results indicate a weak/average online performance good in comparison to book-only retailers, average in comparison with electronic-

book-retailers and strong in comparison with book retailers. Amazon is the market leader and should be only taken as reference point for high performances.

SEO
In point of organic keywords leading to the website, PriceMinister, Pixmania and Cdiscount are the strongest competitors. Compared to his weak competitors in this category, Fnac is still in an average position, but barely appears as one of the rst organic search results.

SEM
In every respect, Fnac is in a comparatively weak position in relation to its strongest competitors. The number of SEM keywords is relatively low and in regard of search entries, Fnac is only listed as a result of search terms including Fnac. Apart from that, Fnac doesnt provide any SEM results when searching for keywords such as computers and books.

Mobile
Fnacs mobile presence is like its online appearance frequent and confusing. The app store provides 8 Fnac related apps, of which at least 3 are not clearly dened. In comparison to their competitors the mobile presence including the mobile websites design is average and only superior to the comparatively weak book retailers (excluding Amazon).

Social Media
Since Facebook is the most popular social platform in France, the benchmarking was focusing on likes and engagement on Facebook. In regards to these measures, Fnac is leading next to its competition.

Altogether, Fnacs online presence is frequent, but seemingly follow a clear strategy. In comparison to its sister websites in Europe and Brazil, the French Fnac website is the most advanced and provides the only live online support, but it is clear that the online strategy is only locally based.

A switch between different countries is only possible within the bottom task bar and cannot be identied in any other language than the website language.

3. Overall Marketing Strategy and Positioning


3.1 Marketing Objectives
Strengthen brand identity and personality Promote customer engagement in both online and ofine channels Increase brand loyalty among customers, by encouraging more of a sense of community between FNAC and the public. Improve internal communications with employees Implement a more customer-oriented service

3.2 Strategy
The proposed overall marketing strategy is going to integrate the online and ofine marketing mix and change the current product-focus to an integrated concept. The concept is going to include stronger customer-oriented services and clear incentives to spend more time in the shop and on the website.

Fnac, on both its online and ofine channels will be positioned as a place where community is at the centre, where everyone is welcomed, ideas can be exchanges and expert advice is freely available. The brand will take on a Friendly-Guide Brand role (de Chernatony et al., 2011: 307)

It will be based on Value Innovation, by creating and introducing new factors for customers and employees to (Chan Kim and Mauborgne, 2005). This will create an incontestable gap between Fnac and its competitors, ensuring the stability as the companys position as market leader.

The marketing strategy is going to be part of a community lifestyle concept, which will support the creation of a new brand identity with focus on the following elements:

Shop atmosphere and offer displays


The shop needs to tackle a desire to stay for each of the target groups and in every part of the store. Hence, open spaces like in the book part should be inviting for customers to stay and explore the products. The electronic section needs to provide seats as well, especially close to TVs and tablets. Both sections need to be included in the concept through a consistent design

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and in connection of ofine and online channels. Moreover, both the website and social media channels need to be updated on an hourly basis. Finacs electronic section will also invite to stay because of its exceptional customer service, which needs to be expressed by staff approaching customers as soon as they are comparing various products. In addition, the product information needs to highlight the key aspects based on the target groups anticipated lack of technical knowledge.

Suggestions to create a more interactive servicescape: FNACaf Larger reading spaces Coffee available in selected outlets.

Kids area Video games Art easels, crayons Legos and other crafts Please note: This section must be separate from the reading area for noise reasons.

Special offers and events


Since Fnacs special offers are currently not displayed in a consistent design and difcult to understand, creation of a coherent brand identity needs to be one of the rst actions. In order to promote the new design, a launch event will be hosted in the showroom and advertised though yers, emails, Twitter and Facebook. After this event, the showroom will be used for events like book readings, photo exhibitions, small concerts, movie days and kids entertainment. The invited groups and exhibitors should be locally known in order to make Fnac part of the citizens daily life. Both the showroom itself and its events will be promoted on the website and on social media.

By means of these actions, we intend to turn Fnac from a search brand into a credence brand whose brand identity is centered within its community. The community is going to include both loyal customers and potential customers. Hence, the current focus on customers with a loyalty card needs to shift to attracting all potential customers to spend more time in the shop and make them part of a large community. Within this community the shop concept is going to be the physical execution of the overall lifestyle concept, which is going to consist of both ofine and online engagement.

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3.3 Target Audiences


Marketing efforts are aimed to target customers of FNAC or potential future customers who have an average to minor knowledge in technology and therefore seek for assistance and advice when purchasing a tech-product. This target audience is split up in two groups, the early adopters and early majority, whereas the early majority is made up of two subgroups; families and young adults. Both segmentation have different demographics and attitudinal traits in their approach to life.

Early adopters
This group embraces new technology and adopt innovation before most other people do. Early adopters tend to buy or try out new hardware items and programs, and new versions of existing programs soon after the product release. This type of person could also be referred to as a trendsetter.

Early majority
Theese individuals are careful consumers who tend to avoid risks. Innovation is adopted after a varying degree of time. They rely on recommendation from others who have experience with the products and adopt the product after seeing it has been used successfully by the early adopters. The people in this segment have above average social status but are less afuent and less educated than early adopters. (Rogers, 1983)

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For the purpose of the marketing plan for FNAC we tend to focus on two subgroups within the early majority: families (with focus on the head of family) and young adults.

Families The focus lies on the head of the family, decision maker, who is the main customer of FNAC, but not necessarily the nal consumer. The role of the decision maker is separate from that of the nal consumer since the nal consumer (another member of the family) can be targeted by marketing efforts (e.g. point-of-purchase) that cannot be aimed at the decision maker. Although the marketing is not specically directed to the non-decision maker, separate marketing efforts should be directed to the decision maker.

Young Adults This audience goes through extraordinary life changes, but constant through this change is the connection to media and technology. Overall this audience lives by itself, but does not have a high disposable income. Young adults purchase necessary goods and have adapted to be deal hunters.

3.4 Internal Marketing


It is of high importance to develop a company culture that makes employees excited to work empowering them in the workplace.

Competitions between Departments


Department competitions build effective relationships within a department and create a fun internal marketing medium, as well as an opportunity to market the company externally. To stick to the Fnac concept, we introduce a gaming competition once every two months, where all departments can sign up as a team and compete with each other. The winning team will receive incentives like vouchers or the ability to donate a sum of products to a charitable organization.

Internal Employee Newsletters


Create regular employee newsletters that provide employees with information about the current projects, growth and initiatives of Fnac.

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4. New Media Marketing Campaign


The New Media marketing campaign has its focus in creating a community & lifestyle experience for the customers of Fnac. With the community & lifestyle experience we aim to sell products by convincing potential customers that this identity will be reinforced or supplemented if they publicly associate themselves with Fnac.

4.1 New Media Objectives


Increase social media engagement Optimize website layout and interface to be more user-friendly Create coherence between the website and blog, as a virtual concept store and lifestyle blog respectively Increase online trafc to website Improve integration of online into ofine channels

4.2 New Media Strategy


The strategy will be separated into two separate, but complementary campaigns: the long-term campaign which will be implemented on a continuous basis in order to maintain constant communication and engagement with the online community; and the combination of short-term campaigns.

The Strategic Roles of the New Media Channels: Website - Transactional Blog - Informational Social Media - Relational The new media campaign will aim to create an online community utilizing FNACs digital infrastructures. The website, blog and social media channels will all serve to share information, connect people, and exchange ideas. Overall, the strategy will create a two-way ow of trafc between the store and online platforms. (Constantinides, 2002)

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4.2.1 Map of Digital Integration

(Based on Hub and Spoke Model. Lutz, 2009)

4.2.2 Highlighted Channels


LinkedIn The Fnac LinkedIn Group will promote the global network of Fnac employees. This channel should be utilized to strengthen internal synergies and cultures between the different outlets. The Head of Marketing can use this as a channel to disseminate information which should be in the companys brand manual about starting Facebook pages, etc.

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Online Chat Online Chat should be prominent and visible to every viewer to the Fnac.com. As a FriendlyGuide, the customer service representative will be there to help the visitor answer any questions he/she may have, and guide them to make a purchase. The main goal should be that of conversion. Company Blog The company blog will be used to establish Fnac as both an expert and opinion leader among its different departments namely: Literature, Music , Movies/DVDs, Video Games, Photography, Home Entertainment, Home Decor, and Childrens Activities. It will be positioned as a lifestyle blog (see: Proctor & Gambles homemadesimple.com) Online Advertising 1. Afliate programs on the Fnac website: At present, events are included in the tickets section of the website. These partnerships should be kept since Fnac as an afliate and the event organiser as advertiser equally prot from ticket sales. The same applies for travel journeys, but apart from that the Fnac website should not allow external advertising.

2. Fnac banner advertisement: Fnac banners should be displayed on websites where the respective audience receives information about a certain topic. In this regard, the most important advertising spaces are on blogs, forums, expert online magazines and test reports.

4.3 Continuous New Media Activities


Photo of the Day
A campaign on Instagram where users can tag their instagrams with #FNACoftheday. The FNAC Social Media team picks a photo of the day and repost it on instagram / facebook / twitter, while mentioning the winner. The Photo Of The Day campaign will a) encourage user interaction in social media, b) build up a community, c) connect three major social media channels and increase their activities and followers.

Crowd-sourced Customer Service


People will be invited to leave a review about the products they purchased online. The information will be gathered and classied according to the different (demographic) groups. Tablets placed

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in-store will allow customers to get customer-based recommendations within a few easy steps by typing in some demographic information as well as interests. These recommendations are helpful and authentic since they come from other customers.

Song of the Day


Post a song of the day on the Blog / Facebook / Twitter with a direct link to the online-shop for the CDs. Offer free limited downloads from time to time to keep high trafc.

Book Club
Every month, starting in September 2013, one book will be promoted on both online and ofine channels. Once a month, there will be book club meetings in selected outlets, where members of Fnac Literature community can meet to discuss the book, and other shared interests. Suggestions for which books should be featured should come from club members.

Free WiFi in-store


Offering free WiFi in-store will not only get people to spent more time in the stores but also open the door to numerous mobile activities which will be discussed further on.

Online Discounts
Convert ofine customers to online customers by offering them discounts for online-only purchases after in-store purchases. To activate the code, customers must sign-up with their information to allow for more precise targeting.

Opinion Leader Community


Foster an online community of opinion leaders in each of the product departments. These leaders will leave reviews of products, introduce new ways of using products based on user proles. E.g Moms, Designers, Basic Users. Please note, it is important to formulate a method for categorizing website visitors so as to direct them to the mose relevant reviews and interesting uses for products.

Wishlist app (for window shoppers)


1. 2. 3. Download the Fnac app & create an account Scan the barcode of products you want to add to your wishlist Share your wishlist with family & friends

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Foursquare check-ins
1. 2. 3. First check-in at FNAC Get your special: 5% Every further check-in in combination with a purchase at Fnac Free coffee at the Fnacaf 10th check-in. Get another special 5%

4.4 12-month New Media Campaign Activities


Season Month July Campaign Website and Social Media re-launch Shop redesign (based on new brand identity) Launch crowd-sourced customer service On website, blog & Social Media: focus on book sales, Kobo, traveling & leisure. Twitter interaction: What are you most looking forward to this summer? Join the conversation: #FNACt #FNACSummer Aug Summer Holiday Photo Competition: Best photo wins a photo printer. Voting takes place on Facebook. Top 50 photos will be displayed in stores. Book Club (Sept. is a month of novel releases): Launch of monthly book club meetings. Launch of virtual book club & literature blog page. Promote on FNAC livres Facebook page & blog. Oct Halloween) Halloween Night: Dress Up & Candies in-store. Special in-store display. Movie night in-store. Audience votes the movie that will be shown through Facebook votes. Families (particularly those with younger children) Audience Early adopters, young adults and families

SUMMER

Young adults and families

Early adopters and young adults

Early adopters, young adults and families

FALL

Sept

Families

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Season

Month Nov

Campaign Start of Christmas promotions (online & ofine) Co-branded GoPro Ski Competition: Communicate through Social Media & in-store: Submit a GoPro made ski video. Community votes the winner who will win a trip and winner video will be shared on social media channels.

Audience Early adopters, young adults and families

Dec

Christmas: Offer deals from the 1st until the 24th of Dec. A different product every day. Customers will have to download the app in order to get the voucher OR download from the website. Launch wishlist app for window shoppers December Cuisine: cooking samples in selected shops, with focus on cuisine books and cooking equipment

Early adopters, young adults and families

Young adults; early adopters Families

WINTER

Jan

Video Competition: Footage from Skiing Voting for 2 weeks online, and winners would be shown in-store for 2 weeks

Young adults and early adopters

Feb

Why I love you campaign (Valentines day) love stories shared on twitter/facebook and in store Mothers Day: Promote a selection of gifts in all the products category: concerts, books, records. Twitter & Instagram Easter interaction: #FNACpaques #FNACeaster Start Soccer World Cup campaign and adapt instore & online: #FNACfoot #FNACsoccer

Young adults

Mar

Families

April SPRING

Young adults and early adopters

May

Young adults and families

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Season

Month June

Campaign Soccer World Cup: Focus on TV sales promotions Focus on Book sales (travel, leisure) Soccer World Cup Competition: Provide a tipping online platform and encourage fans to guess the soccer results. The competition lasts until the semi nal of the world cup. The user with the highest score wins two places for the nal games. Furthermore the top 50 wins an online voucher. Instagram: Post your best fan picture and tag it: #FNACfoot #FNACsoccer

Audience Early adopters, young adults and families

Early adopters, young adults

SUMMER

Early adopters, young adults

4.5 Measurement and Evaluation

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New media campaign monitoring and effectiveness measurement tools

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5. Conclusion
In conclusion, FNAC was a company really successful but the appearance of e-commerce, the economic crisis and decreasing offer of products in store damage the sales and the identity of the brand.

Based on the situation analysis, we identied that Fnac needs to rene their overall marketing strategy and put the focus on the integration of their marketing communication tools. Instead of having different concepts for different departments, ofine as online, our marketing strategy aims to integrate all activities to one concept. The main objectives focus on strengthening the brands identity and personality, building a lifestyle community. In order to achieve our goals, we set up a complete new media campaign. The website, blog and social media channels will all serve to interact with our different communities and provide the content of our lifestyle concept. The new media campaign will optimize traffic between the store and online platforms. However, New Media is a very powerful marketing tool, but it also has its limitations. If New Media is not utilized properly it may cause severe damage to a brand image and reputation. In traditional methods of marketing a mistake was limited to a few people but a small mistake in New Media marketing is magnied in front of thousands of online people. The measurement of a new media campaign is difcult and not accurate.

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References
Amazon (2013) livres [online]. Available at : http://www.amazon.fr/s/ref=nb_sb_noss_1? __mk_fr_FR=%C3%85M%C3%85Z%C3%95%C3%91&url=search-alias%3Daps&eldkeywords=livres&sprex=livre%2Caps&rh=i%3Aaps%2Ck%3Alivres (Accessed: 10 Avril 2013)

Cultura (2012) livres[online]. Available at : http://ebook.cultura.com/ (Accessed: 10 Avril 2013)

Darty (2012) informatique et tablettes PC [online]. Available at : http://www.darty.com/nav/achat/ informatique/index.html (Accessed: 10 Avril 2013)

Efthymios Constantinides (2002) The 4S Web-Marketing Mix model Electronic Commerce Research and Applications. 1 pp.5776

Fnac (201 3) video [online]. Available at : http://www.fnac.com/video.asp#bl=MMvi (Accessed: 11 Avril 2013)

Kim, W.C., Mauborgne, R. (2005) Value innovation: a leap into the blue ocean Journal of Business Strategy. 26 (4) pp.22-28

Mahajan, V, Muller, E. (1990) Determination of Adopter Categories by Using Innovation Diffusion Models. Journal of Marketing Research. 27 (1), p37-50.

Pixmania (2013) informatique[online]. Available at : http://www.pixmania.com/fr/fr/informatique/4univers.html (Accessed: 10 Avril 2013)

PPR (2013) Annual Report [online]. Available at : http://www.pprnance.com/en/2011-annualreport (Accessed: 10 Avril 2013)

Rue du commerce (2012) informatique [online]. Available at : http://www.rueducommerce.fr/ Peripheriques-Reseaux-wi/371-Informatique/ (Accessed: 10 Avril 2013)

Virgin (2012) musique[online]. Available at : http://www.virginmega.fr/? gclid=CJzAg9PSwrYCFajLtAodVnYAPA (Accessed: 10 Avril 2013)

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Appendices
Appendix 1: List of Competitors Analysed

Category and company


Fnac Direct competitors (electronics and cultural products including books) Online Amazon Ebay Rue du Commerce PriceMinister Electronics only Online & Ofine Darty Online Pixmania Boulanger Materiel Cultural products (mainly books) only Online Cultura Chapitre Online and Ofine Gibert jeune Electronics & Other cultural products (no books) Online Cdiscount

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Appendix 2: Positioning Maps Direct competitors (electronics and cultural products including books) Online Music (online) Interpretation: Fnac has a high variety of offers, but customers might buy from competition due to lower prices CDs oer Fnac Virgin

Price Amazon Source: Fnac.com, Virgin.com, Amazon.com Price reference: James Blake album CDs oer: number of CDS on the website

Cultural products (mainly books) only Online

Interpretation: Fnac is offering competitive prices, but a low variety of products Novels oer
Rue du

Amazon Fnac Price Cultural Source: fnac.com, cultura.com, amazon.com, rueducommerce.com Price reference: Musso-Demain Novel oer: number of novels on the website

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Electronics only Online & Ofine

Interpretation: Low offer variety at low price

Computers oer
Rue du commerce

Pixmania

Fnac

Darty

Price

Source: Fnac.com, Darty.com, Rueducommerce.com, Pixmania Price reference: Macbook pro reKna 13 Computers oer: number of computers on the website

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Appendix 3: Online Benchmarking

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