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Planning and strategic input

Planning and strategic input

Brief:

Company X is a department Store with 100outlets, selling a wide range of household and clothing products. Traditionally they have used Press advertising to drive awareness and footfall.  In store activity has allowed them to develop a database of 250,000 customers. This database is fully marketing permissioned for all email, phone and postal channels.  The store has a no cost loyalty card which it can use to supply customer offers. Average product spend on the card per visit is £70. Gross profit per customer is 20%.  80% of its marketing database have a card and of these, a further 60% are active users.   They currently have approximately 200,000 customers per week over the 100 stores.  Each customer visits the store an average of once a month. They currently have a good direct sell website that can capture enquiries and shoppers and their own email platform.

They have a recruitment budget of £250K to gain new customers using the Loyalty card as the principal campaign hook. They would like to see an integrated campaign to drive new customers into the store over the autumn months.

Requirement – is a short proposal indicating channels/media you would suggest and how you would allocate budget? We want to see which channels would you consider/reject/select and why, and some high level mechanics of the campaign.

Once you have decided upon your campaign structure, please create a top-line budget allocation and calculate Return on Investment for your proposal.  The budget must detail estimates for all aspects of the campaign; Agency, Media and Production costs.

Question 2- Presentation and interpretation of Analysis

a. Below is a cross tab of customer counts based on total spend and year last bought.

Please summarise the learning’s to be found within this data and then recommend a communication plan for the customers. All customers are permissioned and have mailing and email addresses available.

  Up to £2,000 £2k-£4k £4k-£6k £6k-£8k £8k- £10k £10k- £12.5k £12.5k- £15k £15k-£20k Over £20k Total
2003 157 214 330 341 296 215 151 125 94 1923
2004 545 1711 1060 680 500 503 428 341 226 5994
2005 995 3500 1731 910 582 508 282 333 282 9123
2006 1201 3322 2124 1148 747 699 509 585 591 10926
2007 547 2653 2210 1377 867 755 506 565 697 10177
2008 1152 2215 1418 936 716 653 346 457 598 8491
2009 894 3149 2170 1103 740 660 429 448 848 10441
20010 563 2632 2433 1375 1004 905 656 786 1313 11667
20011 514 1465 1647 1142 773 830 587 736 1289 8983
Total 6568 20861 15123 9012 6225 5728 3894 4376 5938 77725
 

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