Introduction - Integrated Digital Marketing Strategy
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Marketing through digital means has become effective because of the technological advancements in the last 30 years. Dark Woods Coffee has also been using the means of digital marketing to reach its potential customer base. The following report highlights the evaluation of the macro and microenvironment factors that have affected the market of the company. In addition, the report also outlines the potential market segments of the Dark Woods Coffee. Furthermore, how the company should target and market those segments through digital marketing is elaborated on in the report. Also, those digital communication methods are outlined and evaluated briefly.
An analysis of Dark Woods Coffee’s macro and micro market environment
Macro-environment- There are a few external factors that affect any organisation’s market and growth. These factors can be analysed using an analytic tool which is PESTLE analysis. It evaluates the factors, which include political, economic, socio-cultural or demographic, technological, legal, and environmental (Summer, 2021). For Dark Woods Coffee, these factors have various effects on the company’s market.
Political- Political aspects in the macro market which affect Dark Woods Coffee include labour regulations, tariffs, and taxation. These factors, when hiked, influences the company negatively since the profitability of the company is directly affected. This means that the company sometimes has to set premium rates for its services.
Economic- Economic factors in this environment include the global and national economics, employment rates, interest rates, and exchange rates. Dark Woods Coffee, due to the decreased economy of the UK since after the pandemic, has seen a downtime.
Sociocultural or demographic- This is the broadest category of the macro environment and includes everything from the trends to the age group and the income of the population (Lu, 2020). The analysis of demographic factors shows that the age group between 18-40 is most eligible for marketing by Dark Woods Coffee since it is the one that is eligible for intake of caffeine which will not harm their body and who can afford coffees of any price range. Also, the trends people are following can help the company to build marketing strategies that will increase its customer base.
Technological- Technology is a macro environment factor that influences both the customers and the company Dark Woods Coffee. The company can use this factor to conduct marketing systematically and target-wise. Consumers can use this to gather information about the company and the location of its outlets.
Legal- This factor sometimes overlaps with political factors because rules and regulations are invariably sanctioned by governments (Kuscu, 2019). Dark Woods Coffee has made sure to protect its intellectual property and patent rights to make sure that it has an advantage over its competitors.
Environmental- Natural factors in the macro-environment have an impact on the market of DWC since it allows the company to geographically segment its market and make sure that environmentally conscious consumers are attracted since the company works towards the improvement of nature.
Micro-Environment-
Analysing the microenvironment factors for Dark Woods Coffee will identify the aspects of how the internal factors of the company have affected its market, and it has survived among its competitors (Grant, 2021). It can be done with the help of Porter’s Five Forces (Kruszynski and Pawlowski, 2020).
Industry Rivalry- It is a micro factor that analyses the company’s competitors, their marketing strategy, and their pricing for similar products. This helps the company to gain an advantage over other companies.
Customers- The rate of demand is a factor directly impacted by the customer base of DWC. Customer-base of any company is a factor that constantly determines how the company is thriving in the market.
The threat of substitutes- It is a factor that can influence the market of DWC at any time since there are new brands that are offering canned coffee services.
Supplier power and Buyer power- Two of Porter's five forces are significant microenvironment factors and that affect DWC directly. Also, they contribute to constructing the marketing strategy for DWC.
Dark Woods Coffee’s potential market segments
Market segmentation is breaking the potential market into smaller collections of consumers according to their location, regions, age group, and lifestyles. It assists the company in executing the market strategies effectively (Usman et al., 2020). There are three ways using which the segmentation of Dark Woods Coffee’s potential market is done.
Geographic Segmentation- It is done by grouping the range of customers who belong to the same locations or geographical boundaries (questionpro, 2022). Dark Woods Coffee knows that according to the geographical locations, the demands and interests of their customers vary. For illustration, a climatically cold region will demand more hot coffees than the products related to the cold ones. It will help the company to segregate the demands of the customer and market according to the locations they live in.
Demographic Segmentation- As outlined in the Marco environmental factor of demography, it is prominent that this division is done by dividing the potential market by age, income, and family size. Dark Woods Coffee can segregate its market by dividing it into groups of ages that are more likely to intake a larger amount of caffeine without affecting their body (indycoffee, 2019). This age group lies between 18-42 years, where people are busier with their schedule, concentrate on their work more, and thus demand a larger amount of caffeine than any other age group. Also, the income range of this age group is flexible, which means they can afford services of any price range without getting affected. In addition, it depends on the family size of the customers as well as the number of coffees they might buy and the amount of endorsement that should be done to them.
Psychographic Segmentation- It includes segmenting the market according to the behaviour, attitude, interests, and lifestyle of their customers (Pitt et al., 2020). For Dark Woods Coffee, they will have to understand the trends and lifestyles their targeted customer range is following to endorse the correct products, which they will be more likely to buy according to the trends. For example, students who are studying at universities are more likely to go, sit, and study in cafes as compared to the ones who are working in offices. It will help the company to endorse opening a new outlet around a university to the students directly through the means of digital marketing.
An explanation of the plan to target each segment through digital marketing communications mediums
Digital marketing allows the company to analyse data and then, according to that, market it through various digital means. These are means that Dark Woods Coffee can use to advertise its potential market segments, which can help the company to increase its scale. The potential age group that has been segregated as the market, which is 18-42, all use social media, so it is highly likely that they will, in one way or another, be able to see the marketing done by the company digitally, if targeted adequately. After the segmentation of its potential market, it is essential for the company to analyse what trends and behaviours these customers are following and making digitally.
Data Analytics- It will help the company analyse essential information about its customers' online activities through which they will be able to target them directly. There are various data analytics tools like Google Analytics, click-through rates, and Conversions which help the company to analyse what keywords the customers are searching, which website they are spending most of their time on, and what content is making them convert from leads or targets to customers.
Search Engine Optimisation (SEO)- This digital marketing method will allow the company to improve its website in such a way that the demographic and psychographic segmentation will be targeted directly (Gajanova et al., 2019). This means that the most conversions from 3rd-party websites will come with this marketing means. Also, the official website of the company will be designed to make sure that it stays on the top rankings and ensures accessibility.
Online marketing through Facebook, Instagram, and other digital platforms (SMM)- After designing the website, the next step of digital marketing is to target potential audiences through Facebook, Instagram, and Online marketing. This way, Dark Woods Coffee can target its geographic as well as demographically segmented markets. The design and content of the marketed products and details should be in a manner that lures the maximum customers from the potential audiences.
An outline and critical evaluation of chosen digital marketing communications mediums
The above chosen digital marketing means will help Dark Woods Coffee increase its customer base exponentially since 98% of its potential market segments use technologies to stay active on digital platforms. Endorsing the products directly on the digital platform allows the leads to get to know about the company’s details, what kind of products they are selling, and which one the individual can be interested in (Rajan, 2019). Choosing this method has invariably benefited the company, and it will continue to do so if conducted adequately.
Data Analytics- Through various means of analysing the activities and information about the customers, the company knows which type of marketing should be done to what customers. These data analytic tools have made it easier for companies to understand their customers and engage with them satisfactorily. The demands, needs, and requirements of the customers are reflected directly in the activities they perform digitally. Thus, Dark Woods Coffee can benefit from this too.
Social Media Marketing (SMM)- It is a tool that has worked wonders for companies in the recent era to reach out to their customers worldwide. Endorsing anything and everything has been possible due to the SMM process. Most people spend half of their time scrolling through social media platforms, and if they see an advertisement for a product they might be interested in, the link directly takes them to the company's website, from where they can shop for the products directly (twitter, 2022).
Search Engine Optimisation (SEO)- It allows companies to improve their website in such a way that it remains in the top ranking of the search engines, which will ensure that maximum customers will visit the website through which they can shop. This is done by understanding the keywords and terms that are trending and using them constantly in the blogs and articles uploaded on the websites to make sure that every trend content relates the customer to the company's product ranges.
A reflection of the main skills that I have developed from this module
This module has helped me to gain a deeper understanding of the trending digital marketing means and how companies worldwide are accepting it to increase their customer base. Also, it has assisted me in understanding how Dark Woods Coffee has been operating and become successful over the years. I have enhanced my skill in researching; I have done this with the help of exploring how companies choose their potential market segments, the methods they use, and how they segregate those segments according to the marketing strategy they implement. Also, I have improved my critical thinking skills by analysing the various marketing strategies adopted by Dark Woods Coffee. Thus, this project has helped me identify various aspects and privileged me with improving my flaws while researching.
Conclusion
From the above report, it can be concluded that there are various micro and macro-environmental factors that have affected the marketing strategies of Dark Woods Coffee. In addition, the report has also concluded the potential market segments that can be targeted by the marketing strategy of the company later. It is done by running an in-depth analysis of the whole market and using the 4Ps of the marketing mix. Further, those potential segments are targeted with the help of various digital marketing methods. Moreover, those digital marketing methods are evaluated and analysed to outline their effectiveness. Finally, a reflection part is added to the report, which highlights the skills that I have developed while completing this module.
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