Integrated Marketing Communication Report

Prepared by: Van Thanh Hai Truong

Student ID: 12022145
Prepared for: CQUniversity - Sydney Campus
Course name: MRKT20053 - Advertising and Integrated Communication
(Assignment item 3)
Word count: 2124

Source: Samsung (2016)

Source: Oculus (2016)

Executive Summary

This report aims to identify the possible market and target segments of the educational
tourism industry to sell Samsung Gear in Australia by using the Integrated Marketing
Communication technique. First, the report details will describe and justify the
potential target market segments for the project. Then, it will discuss three marketing
communication objectives and styles of creative advertising strategies. Also, there will
give a media plan for a year with an available budget of $80,000 to achieve the
 MRKT20053 - Advertising and Integrated Communication

communication objects and creative strategies of the campaign. Finally, the

conclusion will be given to evaluating the report.

Contents
Executive Summary............................................................................................... 2
1. Introduction..................................................................................................... 4
2. Literature review............................................................................................. 4
3. Market Segment.............................................................................................. 4
4. Marketing Communication Objectives.............................................................8
5. IMC tools and creative advertising strategies..................................................9
5.1. Strategy 1-emotional strategy: Giving customers the high experience of
emotion through A Samsung of Possibility television commercial (TV
commercial, 2016)............................................................................................ 9
5.2. Strategy 2- Brand image strategy: the transformational approach to show
how feeling after using Samsung Gear VR........................................................10
5.3. Strategy 3-Unique Selling Proposition by sponsor programs...................10
6. Media Plan..................................................................................................... 11
7. Conclusion..................................................................................................... 13

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References............................................................................................................. 1
Figure 1: Demographic information of educational tourism (N=197)....................5
Figure 2: Australian smartphone users by age.......................................................5
Figure 3: The variables of market segmentation....................................................6
Figure 4: Summary Description Of The geoTribes..................................................7
Figure 5: Overall mobile phone use by geoTribe....................................................7
Y

Table 1: Media Plan.............................................................................................. 11

Table 2: Media spend and timetable (1k = $1,000).............................................13

1. Introduction
Samsung Gear VR (SGVR) is a virtual reality headset which produced by the
collaboration between Samsung and Oculus. The device was first released in September
2014, after two times innovation, it was launched to consumer used in November 2015. The
headset is connected compatible with many Samsung phones such as Galaxy Notes 5, Galaxy
S6 series, Galaxy S7 series and so on. It also has the touchpad and buttons on the side, which
can be used to interact with the users and virtual environments that displayed on the phone
screen. There is a number of games and applications which developed to use with Gear VR.
Some remarkable games are offered on Samsung websites such as Lands-End, Ocean Rift or
Gun Jack which allow people can immerse in the virtual science with 3D context. With
SGVR users can entertain 3D films studio or enjoy virtual sightseeing around the world by
accessing into Samsung VR apps stores (Samsung, 2016).

2. Literature review
There are raising many concerns of Virtual reality and its applications in recently. The
application of VR in educational tourism is one amongst the interest for developers and
manufacturers. These interests are more and more growing when critics claim that
educational tourism could hurt the natural and have physical damage the landscapes and

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destinations, potential erosion of heritage authenticity due to overuse and commercialization

(Wang et al., 2009, p.220). Virtual educational tourism (VET) could help participants have
big chances to travel any places and destinations without taking time to go there directly by
any vehicles. Furthermore, it is likely to consider that there are a lot of benefits for learners
and attendants taking from VET such as encouragement, excitement, emotion, and so on.
Some of the most significant applications of virtual educational tourism are virtual heritage
tourism, virtual culture tourism, and eco-tourism. To some extent, these terms would be seen
as the synonym scopes amongst practitioners (Wang et al., 2009). Nonetheless, there are
many concerns about individual health, because virtual reality can have negative impacts on
the stakeholders. People who are overusing virtual reality can lead to adverse effect on
behaviours, personal and interpersonal interact, and cognition.

3. Market Segment
According to Wang et al. (2009), in general, educational tourism market will fall on
two major types are eco-tourism and cultural tourism. There were 69.3% of age group 25
to 40 have more interested in educational tourism(Wang et al., 2009) (Figure 1), this
group is considered to have the highest rate in smartphone users by age, more than 80%
(ACMA,2013)(Figure 2). Therefore, the market segment will target to sell SGVR is the
25-44 years old, and it is also the largest age structure of Australian population, with more
than 40% (Australian age structure,2015).

Figure 1: Demographic information of educational tourism (N=197)

Source: Wang et al. (2009)

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Figure 2: Australian smartphone users by age

Source: ACMA (2015)

With small budget available and the high-tech characteristic of the product, the plan
will be primary focus on some major capital cities such as Sydney, Melbourne, Canberra,
Brisbane, and so on; where the internet and technology are up to date.

The variables of market segmentation:

Figure 3: The variables of market segmentation

Variables Breakdowns
Geographical
Region Capital cities
City size Over 1.000.000
Density Urban, suburban
Demographic
Age 25-44
Sex Both gender
Income Average weekly total earning >= 1031.80
(ABS,2013)
Occupation Professional and technical, officials and
proprietors.
Education College and university graduate
Psychographic, Behavioural
Socioeconomic Achievers, Crusaders, Debtstars,
Independents, Preppies , Rockafellas,

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Twixters using smart phone more frequency

for entertaining purpose, over 90%
(AIMIA,2014)(Figure 1)
Values, attitudes - Seeking adventure, enjoy riskily and
active vacations, educational travel
experiences but want to save time and
comfortable (Wang et al.,2009)
- Desire to take experience and
improve quality of life (Smith,2016)
Users status Android smartphone users which compatible
with Gear VR, over 50.6% users in
Australian smartphone using (Smith,2016)

Figure 4: Summary Description Of The geoTribes

Source: AIMIA (2014).

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Figure 5: Overall mobile phone use by geoTribe

Source: Australian mobile phone lifestyle index, 2014

- One another potential market segment to sell SGVR could take into account that are
businesses which involved in the educational travel industry such as tour and
hospitality operators, schools, universities, museums, and so on. Tour and hospitality
operators can use SGVR to present for their possible customers about the destination
or even services in more details with visual manner to help stakeholders and
customers to make their decision easier. Schools and universities can make their
courses more interested by using the SGVR to help their students immerse in the
virtual-real environment which more practical and understanding (Virtual
Archaeology, 2013). Alternatively, universities can demo virtual campus tours to get
students involve to visit the campuses chosen to make the recruitment effort easier
without taking time to go by real vehicles (Virtual tours growing,2015).

4. Marketing Communication Objectives

It is important to set the objectives for the marketing communication because its
decisions will underlie on these purposes. Furthermore, by basing on the detail
objectives, the marketer will use an appropriate type of marketing communications
strategies in the market environment.
There are three objectives which are the goals of marketing communication for this
campaign.
1. To reduce the efforts of competitors communications as well as enhance SGVR
brands image

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In the VR headsets world, there are many brand name and players, yet Microsofts
Hololens, Oculus Rift are the strongest brands in the VR game (VR: A Harsh
Reality, 2016). Therefore, the competitive strategies and analysis are an
important perspective on the growth and development of businesses as well as
products itself. The effective strategy will help Samsung Gear VR gain the market
share as well as distinguish its offering from other competitors. Moreover, thus,
build the positive
values in customers.
2. To inform
intermediaries such
as wholesalers, agents,
and retailers and
consumers about the
improvements of the brand.

Samsung had released two innovators and one consumer edition not too long ago, and
the new version has launched on the market in August 2016 (Swanner, 2016). The
campaign could help the intermediaries raise awareness about new better features
which could make huge improving on SGVR experience. This could provide to the
customer's rational reasons for purchasing intermediately rather than delaying and
changing their choice of buying (Chitty et al., 2016).

3. To influence the behaviour of customers and result in increasing the sale volume
of Samsung Gear VR by 22% from 57,200 units, forecasted annually in
2016(Smith, 2016), to 70,000 units annually in 2017(Buying virtual reality,
2016).
Although the public has many concerns and interest in VR technology and its
products, researchers found that the consumers still want more time and awareness
about VR products to make their buying decision. The campaigns goal will not
only raise publics knowledge but also to educate and attract more the target
audiences by using creative communications strategies and therefore, to get them
willing to pay for the products to increase the sale volumes.

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Source: YouTube (2016)
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5. IMC tools and creative advertising strategies

5.1. Strategy 1-emotional strategy: Giving customers the high experience of

emotion through A Samsung of Possibility television commercial (TV
commercial, 2016)
Many expert advertisers claim that the products will be more easily appealing to the
public when using the emotional technique and this would be more successful if we use it
appropriately and with the suitable brand (Chitty et al., 2016). Although just released the trial
on September 2016 on YouTube, it attracted nearly 10,000 of viewers. In the video, many
people include young, and middle age from 25-44 tried to wear Gear VR which connected
with a Samsung Galaxy, then would be immersed in a virtual environment with VR on
Samsung phones. Their reaction will differ from happy and giggle to scare and shout or even
cried with extreme emotions. The key message is the possibility of Samsung Gear VR; people
use SGVR could experience things as they are in a real manner. The tagline A Samsung of
Possibility would change to A Samsung Gear VR of Possibility which can be more focus
on VR. This campaign can meet all objectives 1, 2 and 3. The campaign can be applied in
many different contexts such as YouTube, social media, radio with the small budget.

5.2. Strategy 2- Brand image strategy: the transformational approach to show how
feeling after using Samsung Gear VR.

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This strategy would develop and build Samsung Gear VRs brand image by linking
the experience when using the Gear with a set of unique psychology characteristics such as
more exciting, enjoyable, reliable
and so on (Chitty, 2016). The
transformational image illustrates
the feeling as the user are
immersing in the real environment
when using Gear VR. This will help
customers remember the SGVRs
brand easily without recalling the
experience which created by the Source: roadtovr (2016)
advertisement (Duke,2016). The message still using here is Samsung VR of Possibility
which carry the enthusiastic of using Gear VR. The girls in the picture could be replaced by a
celebrity who endorse for Samsungs brand. This strategy could fit with objectives 1, 2 and
target both individuals and businesses segment. This technique can be used in both print and
online advertising, OOH, buses advertising and so on.

5.3. Strategy 3-Unique Selling Proposition by sponsor programs

One of the keys of Australia Tourism is offering the Australia indigenous experiences
to increase awareness and participant in Indigenous culture. It also promotes along with
Australias unique landscapes, nature, and wildlife. This particular field of an industry
estimated to generate $6.4 billion annually (Indigenous Experiences, 2015). By
collaborating with Australia Tourism to promote Cultural Tourism with the film campaign
Our Country is waiting for you, which show the diversity of unique of Aboriginal of
Australia. The original film will be redirected again in 3D context which can adapt to display
in SGVR. The film then can use in many tourism exhibitions and events which sponsored by
Samsung to equip with SGVR, and also it can be used by tour operators who want demo their
tourism services in a unique way to the customers. This strategy can be applied in many
different contexts such as television commercial, print, and digital advertising, and so on.

6. Media Plan
According to Chitty et al. (2016), the creative advertising strategies should be placed in
the media and its vehicles to hit the right target segment and then make communication
messages more useful. With a limited budget of $80,000 for a year IMC campaign, it is

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important to use the particular media and its vehicles to achieve the communication objects
and strategies.

Table 1: Media Plan

Creative Strategy Media Vehicle Strength and Limitation

Strategy 1: Digital YouTube, S: low cost, interactive and modify
Emotion Media Facebook, easily, communicative, timeliness.
Samsung Gear Twitter, Samsung L: less impact middle age
VR of VR Gear Website
Possibility.
Strategy 2: Brand Digital Facebook, as above
image strategy Media Twitter, Samsung
VR Gear Website
Print and
Support
Media
Newspaper The Daily S: cover mass audience, long lasting,
Telegraph, flexibility, compatible, copy easily,
Sydney Morning timeliness
Herald (NSW), L: clutter, not efficient specific
Herald Sun, The audiences, low-quality production
Age,(VIC)
Courier-
Mail(QLD),
Adelaide
Advertise, West
Australian
Out-Of- Billboard, buses S: reach easily, high frequency
Home L: disability to measure, not- selective
audience
Strategy 3: Television National S: exciting, convey humour and
Unique Selling Geographic, experience, entertain, achieve
Proposition attention
L: costly, audience fragmentation,
clutter
Digital YouTube, As above

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Media Facebook,
Twitter, Samsung
VR Gear Website
Print Media
Magazines Australian S: Selectivity, High reproduction
Gourmet quality, Long life
Traveller, L: Clutter, Somewhat limited
National geographic reach(Chitty,2016)
Geographic, New
Idea, Australian
Geographic

Table 2: Media spend and timetable (1k = $1,000)

Strategy Jan- Feb Mar Apr May Jun Jul Aug Sep Oct TOTAL
2017
Emotion 2k 3k 3k 2k 1k 1k 1k 1k 1k 1k 15K
Brand 2k 2k 2k 2k 2k 3k 4k 4k 2k 2k 25K
image
USP 3k 3k 5k 5k 5k 5k 5k 5k 2k 2k 40K
80K

7. Conclusion
Overall, the report found that:
- Heritage tourism is the major aspect of Australian tourism; it generates more than $6
billion annual revenue for this industry, and therefore, the opportunity for virtual
culture touring is promising.
- There were three objectives for the campaign: 1. To tackle competitors
communications and strengthen SGVR brands image; 2. To inspire partnership and
educate consumers the improvements of the new edition of SGVR; 3. To impact the
buying behaviour of consumers.
- The selected individual segment was 25-44 years old, and business segment were
tourism and educational agents and institutes.

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- There were three creative strategies: emotion strategy, brand image strategy and
Unique Selling Proposition
- Developed media plan and its spending, included media vehicles that used to achieve
three communication objectives and creative strategies, consist: television, digital and
social media, print and OOH advertising.

References
Australia Age Structure (2015, June 30). Index mudi. Retrieved from
http://www.indexmundi.com/australia/age_structure.html

Chitty, W., Barker, N., Shimp, T.,(2016). Intergrated Marketing Communications

(4th ed.). Melbourne, VIC: Cengage Learning Australia.

Duke, C. (1984). Informational and Transformational Advertising: the Differential

Effects of Time. Association for Consumer Research. 11(1984), 638-643.

How to get your pricing strategy right and increase business profitability. The
world leader of the accountancy and finance profession. Retrieved from
http://www.icaew.com/en/learning-and-development/icaew-cfab/about-icaew-cfab

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Indigenous Experiences. Tourism Australia. Retrieved from

http://www.tourism.australia.com/campaigns/Indigenous-experiences.aspx

Virtual Archaeology, Museums and Cultural Tourism (2013). Digital Meets

culture. Retrieved from http://www.digitalmeetsculture.net/article/virtual-
archaeology-museums-and-cultural-tourism/

VR: A Harsh Reality When it Comes to Brand Power(2016). Creative strategies.

Retrieved from http://creativestrategies.com/vr-a-harsh-reality-when-it-comes-to-
brand-power/

Virtual tours growing in popularity (2015, Feb 11). ICEF Monitor. Retrieved from
http://monitor.icef.com/2015/02/virtual-tours-growing-popularity/

Ritchie, B., Carr, N., Cooper, C. (2003). Managing Educational Tourism. Channel
View Publications

Wang, Y., Wu, C., Yuan, J.,(2009). The Role of Integrated Marketing
Communications (IMC) on Heritage Destination Visitations. Journal of Quality
Assurance in Hospitality & Tourism, 10, 218231, DOI:
0.1080/15280080902988048.

What have been the biggest surprises now that people are buying virtual reality
goggles at volume? (2016, Jul 31 ). Quora. Retrieved from
https://www.quora.com/What-have-been-the-biggest-surprises-now-that-people-
are-buying-virtual-reality-goggles-at-volume

SWANNER, N. (2016). Leak: Samsungs new Gear VR has wider field of view,
works with Note 7. The Next Web. Retrieved from
http://thenextweb.com/gadgets/2016/08/01/samsung-gear-vr-new/#gref

Smith, P. (2016). Virtual reality headset sales tipped to surge as consumers seek
new worlds. Financial review. Retrieved from
http://www.afr.com/technology/virtual-reality-headset-sales-tipped-to-surge-as-
consumers-seek-new-worlds-20160303-gnaae7

TV commercial (2016, September 9). Samsung galaxy S7 edge Gear VR

Commercial. Retrieved from https://www.youtube.com/watch?v=rnse6Eczj0Q

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