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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