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Developing a Promotional Campaign
Image: The Dome will be transformed into a state of the art concert venue and the whole site will become a hub for entertainment. How will you promote this exciting new venue for London? Copyright: www.freeimages.co.uk This resource is designed specifically for Unit 3 of the Edexcel BTEC qualification, 'Creative Product Promotion'. OK - here is a real challenge to your business understanding and skills! Develop a promotional campaign for the Millennium Dome. You might think that this will be an impossible challenge given the negative publicity about the Dome before, during and after the year long period that it was open in 2000. But changing the public perception and promoting the new Dome is exactly what mobile phone firm O2 and the Anschutz Entertainment Group (AEG) are planning to do. O2 and AEG have joined forces to redevelop the Dome into an entertainment and leisure centre, which is due to open in April 2007. The centre will include a 23,000 seater concert venue, bars, clubs, restaurants, a smaller 2,000 seater music venue and a 10 screen cinema complex. The venue is expected to host 150 concerts each year and O2 and AEG promise it will be the best venue in Europe. Quite a vision I'm sure you will agree! Your job is to plan out the promotional campaign that will reignite public interest and the public perception of the Dome in preparation for the opening in 2007. The data and figures used in this resource are entirely fictional and are intended for educational purposes only - they are not based on any data that O2 and AEG might possess. To launch a successful promotion campaign a number of stages will normally be followed through. We will briefly outline what each stage entails and then give you a scenario on which to base your investigation and planning. Stage 1: What are the objectives of the campaign?A campaign brief will be issued outlining the objectives of the campaign. These should relate to what are called SMART targets - Specific, Measurable, Achievable, Realistic and Time related. This ensures that there is a focus to the campaign and that all involved know exactly what they are supposed to be doing and where they are going. Stage 2: Who is the campaign aimed at?This will involve identifying who the target market is going to be and this, in turn, may be related to the market segment/s that the business is focusing on. A market segment is a group of people with similar characteristics that may influence spending on the business's products. A market segment might be related to gender, age grouping, occupation, leisure pursuit, lifestyle, house type and so on. This will help to ensure that the campaign gets to the people who are most likely to benefit from it and buy the product/service concerned.
Image: Ensuring the right groups of potential customers are targeted is a vital part of the preparation of a successful promotional campaign. Copyright: Sara Tusar Stage 3: What is the message?A promotional campaign is designed to try to make customers more aware of a product, brand or service. Getting the right message across is therefore important and as such making sure the message is clear and unambiguous is vital. The message may determine the type of promotional media used - TV, radio, internet and so on. In this case, the message might involve changing the perception of the Dome - the first step is the renaming of it to become 'The O2'. Stage 4: What is the budget?Most promotional campaigns will have to work within a pre-determined budget. This will give planners some idea of what they have available to spend and thus will determine the type of promotional media used. The budget might be linked to the expected returns on the project or the amount of investment being put in in the first place. Stage 5: What mix will be used?The marketing mix refers to the relative importance of price, product, promotion and place in the marketing function. For some products and services, price might be the crucial factor in determining the success of the product in other cases the product/service itself may be more important. The promotional campaign therefore must ensure that it focuses on what the important elements of the mix are. There are now other Ps that can be seen as being part of the marketing mix - these are people, processes and packaging making 7Ps in all! Stage 6: What is the time frame?When the campaign is scheduled to run, for how long and the long term plans need to be considered. In some cases, a campaign might initially run for four weeks and then be 'rested' to return after a few months - possibly in a different format. The time of year might be relevant, and in the case of The O2, the timeframe will be especially relevant as the development work progresses. The opening of the new venue might be a time of fevered activity and then subsequent campaigns might be needed as specific events take place. Stage 7: How is the campaign evaluated?Assessing how the campaign has gone in relation to its objectives will be essential in informing the future direction of subsequent campaigns and learning from the experiences gained. There may be a number of things that happened during the development of the campaign that will need to be addressed by the team and which will help them to not only plan new campaigns more effectively but will also help in the ongoing campaign - remember the time frame in stage 6!
Image: The message about the redevelopment of the O2 might not just be about the venue itself but might also involve a focus on the impact on the surrounding area - the positive externalities. Copyright: Jeroen de Boer Your TaskYou will work as a team to prepare a promotional campaign for the opening of The O2 venue in April 2007. The campaign brief below gives you some background on which to base your plans. The information in the brief is fictional but some of the data has been based on market statistics. Campaign BriefThe Millennium Dome was constructed for the year 2000 celebrations. It has had a difficult history. The initial plans were to use the Dome as a means of sparking regeneration in a deprived area of south London and to put on an entertainment extravaganza celebrating the new millennium. The cost of constructing the Dome escalated and there were a number of injections of cash that aroused the hostility of the general public. The Dome was predicted to host up to 12 million visitors but in the end only attracted 6.5 million. The public perception of the Dome is that it is a 'white elephant' that cost the taxpayer millions (£758 million) and is still doing so whilst plans for its redevelopment were negotiated. The estimated cost per year since it closed its doors to the public in maintenance and security has been £30 million. Against this backdrop AEG and O2 are taking on a project to continue the re-development of the area and the site. One of the biggest problems is going to be changing the public perception of the Dome, hence the importance of renaming it The O2 and getting this name firmly established in the public mind. The plans for a concert venue come amidst a number of criticisms about the quality of large music venues in the capital. Recently Queen played a concert at the Wembley Arena and its lead guitarist, Brian May, was critical of the state of London's concert venues. O2 and AEG have the right credentials to make this venture a success. O2 have experience in mobile technologies as well as a database of 24 million customers in Germany, Ireland and the UK. It has a widely recognised brand name and is also associated with other, similar high profile brands such as Big Brother, the England rugby team and Arsenal Football Club. Its revenue in 2004-05 amounted to £6.7 billion. AEG might be less well known as a brand but have extensive experience in entertainment promotions. It has been involved in promoting some of the most famous names in the music business including Sir Paul McCartney, U2, Elton John, The Eagles, Coldplay and the Stereophonics and has also been involved in promoting the Grammy Awards and the Treasures of Tutankhamen exhibition. AEG have already pioneered many of its ideas through its head office of the Staples centre in Los Angeles. This is a state of the art venue, which stages around 250 concerts, sporting events and conventions each year. The campaign will seek to promote awareness of this new venue and what it can offer consumers of entertainment. It is seeking to achieve a target of 150 concerts in the first year in the main arena which seats 23,000 with a sales target of 90% for each concert. In addition, there is an objective of ensuring that 45% of people in the 14 - 35 age range associate the brand O2 with the concert venue by the beginning of January 2007. The budgeted revenues for the first year is £69 million (based on 150 concert events each selling 23,000 tickets at an average price of £20). The total investment in the development is £2 billion and the promotion budget is being set at £150 million. The promotion campaign should begin in January 2006 and run at intervals through 2006 in preparation for the first events, which are scheduled for April 2007. The year before the opening is vital in ensuring that consumers become acquainted with this new venue and what it offers. Sources of Further Information
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