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“we believe in better”
1. Elizangela Campos2. Kazi Roomel Ahmed3. Vasanthan Manoharan4. Augustine Appiah
Introduction/BackgroundCampaign Objective PEST & SWOT Analysis Marketing mix 4Ps S.T.P (Segmentation, Targeting and Positioning)Competitor Analysis Marcoms Mix Marcom Strategy Conclusion References
Content
Sky HD is a British Sky Broadcasting Group (BskyB) .
Launched on 22 May 2006 in UK and Ireland offering more than 50
channels e.g. sports, documentary, movies, entertainment or drama
programmes etc.
User must have a Sky+ HD digital box and HD ready TV to enable
high definition channels on sky to be viewed.
(Mintel 2010).
Background
Vision & MissionVision To be the first choice for entertainments and communications
Mission Entertain, excite and inspire customers with a great choice of high-quality television in high definition.
Sky puts customers first, and work hard to earn their trust (Annual report 2010).
SkyTotal customers 9,956,000
Sky + HD customers 3,154,000
Multiroom customers 2,158,000
Sky Broadband customers 2,802,000
Sky Talk customers 2,570,000
Adjusted revenue 1 £5,912 million*
Investment in programming £1,902 million*
Adjusted operating profit 1 £855 million*
Number of employees 16,500
Price of Sky TV package From £19.00 a month
(Sky .com 2010)
Campaign Objectives
•To inspire existing and potential consumers with a great and vary choice of high quality television this Christmas.
•To encourage new customers to join Sky HD box before the end of Christmas holiday.
• To bring people together this Christmas with the company product innovation.
•To re-enforce the new channels created this autumn. E.g. Movie channels
Campaign Budget
Sky spent more than £ 9.1 million in their Christmas campaign to promote Sky HD (Mintel 2010).
Sky - Media
Mintel, 2009
Political:Sky must wholesale some of its premium channels at regulated prices to other distributors. (Ofcom.com)
Economical:•Inflation – In Oct. 2010, inflation rate in U.K was 3.20% for the past 2 decades and the
average inflation rate was 2.72%
•Economy growth - Recreation and health contributed most to the growth this quarter.
PEST
Social:•Attitude towards HD : 30% of SKY TV customers have SKY HD•Perception about HD: No1 in DTH market with highest market share
Technological:•Acceptance of HD technology: Impaired people watch SKY anytime anywhere on Sky Player – iPad, X-box, Laptop
Technology Acceptance Model
• The key variables behind the users getting adopted to new
technology.
1. Perceived ease-of-use• Methods• Device capabilities – technical features
2. Perceived usefulness • need for new feature?• Need for technology itself?
http://www.sky.com/shop/high-definition/home/why-choose-sky-hd/
Sky clearly communicates the requirements to enjoy the HD experience - Need a HD ready TV along with the SKY+ HD Box to experience HD
SWOT
Positive
S
TO
W
Negative
Inte
rnal
Exte
rnal
Dominant distribution & Market share Established Networks PAN world coverage Innovation Customer Hub - empowered to answer 80% of enquiries including billing advice and technical help Visible CSR – towards environment
× Unable to tap existing SKY customers - Only 30% of Sky customers subscribed SKY HD
50% of TV viewers are not DTH customers.
Existing and New customers for other SKY
products
× Free to air channels
× Now Duopoly – expect more competition
× Ofcom’s new demand
Marketing Mix (the 4Ps) s
McCarthy defined the marketing mix as a combination of all the factors at a Marketing Manager’s command to satisfy the target market. (Groucutt et al 2004)
4Ps
Product: Is anything that is offered to the market which is capable of meeting
consumer’s needs. (Linton and Donelly 2009)
SKY+ HD gives access to 50+ HD channels, 5 times more picture detail,
superb quality digital sound.
SKY+HD 1TB box stores up to 240 hours of HD television
SKY HD is the only provider who facilitates TV viewer with 50 + HD
channels
http://www.sky.com/shop/high-definition/home/hd-channels/)
PRICE Price is a value that is placed on a product or service. (Brassington and Pettitt 2000)
•HD pack cost £10.25 per month with one year contract. Prices vary depending on the channel bundle customer choose to buy.
•The Sky+ HD box is free with HD pack, installation charge £30 but now free with HD pack subscription.
•Sky+ HD 1TB cost £249, installation charge £30 for new customer and £15 for existing customer.
•Sky Multiroom cost £10.25 per month for a year
PLACE Place relates to Borden’s distribution element of physical handling and channel distribution. (Pickton and Broderick 2005) Online from www.sky.com
Sky TV retailer where customer can see both revolutionary boxes in action.
Competitors
www.Sky.com
Direct Competitor AnalysisVirgin offers two boxes: V HD Box- HD and 3D ready and gives access to
Catch up TV and TV on demand.
V + HD box- HD and 3D but enables customer to pause, rewind and record live TV, record two channels while watching third
Virgin HD Campaign TV Ads started 1st May on ITV1 and ITV1HDhttp://www.youtube.com/watch?v=6DzqgQwLwpo&NR=1
Print ads focuses on fans rather than famous footballer
Direct Competitor Analysis
• The Virgin HD campaign includes print ads in national newspapers and UTV's Sport magazine as well as online activity on football sites, news outlets and social media.
• Virgin Media ads has been broadcasted on Absolute Radio and UTV's national commercial station TalkSport, both of which have Premier League broadcasting rights, as well as run on pub, bar and stadium media.
• The TV ads are part of a multi-million pound media campaign for Virgin Media, which includes TV, print, outdoor, cinema and online. Virgin HD spent £41million in the first quarter of the year on the marketing of Virgin HD which resulted in a huge addition of new customer.
Virgin’s HD Campaign
•Sky 70% of subscribers
•Virgin 12.8% of subscribers(mintel,2010)
Segmentation Performance
This is to allow your marketing/sales program to focus on the subset of prospects that are "most likely" to purchase your offering. If done properly this will help to insure the highest return for your marketing/sales expenditures. (Fill, 2009)
Segmentation
Mintel, 2010
Target MarketDemographics:
Men under 45s, the AB socio-economic category and higher-earning groups (£25,000+).
Cautious – over 45s retired people, caution about adopting new technology .
Disengaged – older women likely to be retired. Mostly from the C2DE socio-economic groups and lower –earning categories.
Filmies – women under-35s and in particular students.
Perceptual Map
Favourite Channel
InnovativeTraditional Sky HD
Virgin
Definition of the desired unique position in the mind of targeted consumers ( Fill, 2009)
Brilliance of HD
Marcom MixAbove the Line Advert
Bus Shelter Ad
TV Ad
Promotions that make use of commission paying mass media ( Fill 2009)
Above the Line Advert
Online ADTV Ad
Electronic Billboards
Press
Above the Line Advert
Online ADTV Ad
Kelly Osbourne ad campaign for Sky+HD. (BY Steve Hallm 2010)
http://www.adrants.com/2010/10/skinny-kelly-osbourne-painted.php
Celebrity EndorsementAny individual who enjoys public recognition & who uses this on behalf of a consumer goods by appearing with it in advertisements (McCracken 1989)
Sex Appeal
Internet Banner
Through the Line Advert
Loose Inserts
Sky on Twitter
A way of targeting individuals to build a one to one relationship (Ref)
Below the Line Advert
Sales Promotion is an
activity designed to
boost the sales of a
product or service
(Fill, 2009)
Marcoms that make use of non-commission paying media in all their forms, e.g. all forms of promotions other than advertising. (Fill.2009)
Brand elementsThese are formal component of corporate strategy
Website Telephone
Promotion
Avatar
Sky Logo
Product
Slogan
Pull Strategy – SKY HD
Inserts
BILLBOARDS
Involves persuading customers to seek out brand in an active process(Kotler et al , 2007)
Press Ad
Jcdecaux in Railway
stations
Electronic Billboards
Pull Strategy – SKY HD
It creates demand among consumers
When the above Ad in Facebook is clicked, it takes the customer to the below link
http://www.sky.com/shop/boxes/sky-plus-box/?DCMP=bac-acquisition_56953186_0_233072830
Push Strategy – SKY HD
Kiosks in Shopping Centres
Involves taking the product directly to the customer via whatever means to ensure the customer is aware of your brand at the point of purchase. (Kotler et al (2007)
• Trade show promotions to encourage retailer demand• Direct selling to customers in showrooms or face to face• Point of sale displays
Profile strategyThe strategy used to satisfy an organisation’s corporate promotional goals. •Public relations •Sponsorship•Corporate advertising
1. As a part of SKY HD’s brand building they printed SKY HD’s logo in the Team Sky’s jerseys.
2. Coach also bears SKY’s logo. 3. They leveraged the visibility of SKY’s team in
promoting SKY HD.
Team Sky
1. Sky Rainforest Rescue - helps save 1bn trees in partnering with WWF - UK.
2. CSR Ads reflects on the good will of SKY HD as well.
http://www.independent.co.uk/environment/green-living/supermodel-lily-cole-launches-sky-rainforest-rescue-1807097.html
Profile strategy
Brand image
Sky HD’s Integrated Marketing Communications have proven to work because of the use of aggressive marketing and promotional activities which makes them a well known brand in UK and Ireland.
Sky HD campaign is doing well because they use different media to target different market segment. For example; they use Sky sport HD campaign to target sports lovers and sky movies HD to target movies lovers.
Rational and emotional appeals with synergy have been effectively used in Sky HD campaigns and based on our analysis it is clear that Sky HD has obtained a huge market share.
Conclusion
http://www.youtube.com/watch?v=d-SteShhCcA&feature=related
References
• Kotler P, Keller KL et al (2007) “Marketing Management” Pearson, New Delhi.
• Brassington F and Pettitt S(2000), Principles of Marketing, 2nd Edition, Pearson Education Limited,Essex
• Fill c, (2009) marketing communications: engagement, strategies and practice 5 th ed. Essex Pearson Education
Ltd.
• De Pelsmacker p, et al (2010) IMC: marketing communications, A European perspective, 4 th ed. USA Prentice
Hall.
• Groucutt J, Leadley P and Forsyth P (2004) Marketing, Kogan Page, Glasgow.
• Linton C and Donelly R(2009) Delivering Customer Value Through Marketing, Elsevier,Oxford
• Pickton D and Broderick A (2005) Integrated Marketing Communication,2nd Edition,Pearson Education
Limited, Essex.
•Brassington F and Pettitt S(2000), Principles of Marketing, 2nd Edition, Pearson Education Limited,Essex
References•http://www.marketingweek.co.uk/sectors/media/television/itv-unveils-pay-tv-strategy/3016564.article
•http://corporate.sky.com/about_sky/what_we_do/our_products_and_services.htm
•http://www.ukmarketingnews.com/bskybs-uk-marketing-strategy-sets-them-in-good-stead-for-2010/
• http://www.virgin.com/media-and-mobile/news/virgin-media-unveils-first-high-definition-ad-campaign (accessed
01/12/2010)
•http://www.campaignlive.co.uk/news/1017146/Virgin-Media-launches-campaign-promote-Sky-Sports-HD/
(accessed 24/11/21010
•http://www.marketingweek.co.uk/sectors/media/television/itv-unveils-pay-tv-strategy/3016564.article
•http://corporate.sky.com/about_sky/what_we_do/our_products_and_services.htm
•http://www.ukmarketingnews.com/bskybs-uk-marketing-strategy-sets-them-in-good-stead-for-2010/
•http://www.sky.com/shop/high-definition/home/why-choose-sky-hd/
•http://www.marketing-made-simple.com/articles/push-pull-strategy.htm
•http://www.sky.com/shop/high-definition/home/hd-channels/
•http://www.sky.com/shop/boxes/sky-plus-box/?DCMP=bac-acquisition_56953186_0_233072830
•Sky HD (2010) Annual Report