KREATIVE KREATIONS IMC REPORT

Executive Summary

Integrated Marketing Communications is a vital marketing tool that can help lead the success of a business venture by marketing its goods or services using traditional and modern communication. The IMC plan clearly stipulates the speculated expenditure in promoting and implementing areas of concern. This IMC is formulated to address the most pressing need that could jeopardize the profitable nature of the business venture. This report is based on Kreative Kreations, a Chicago based event planning company that will be known for its splendid quality of service. However, due to the stiff market competition, Kreative Kreations will be exploring its chances and opportunities for diversification of its operation and market. This Kreative Kreations IMC report seeks to insightful outline the plan that should be adhered to in achieving product and market diversity.(brown, 2008)

Introduction

Creative Kreation is an entertainment management company which will focus on planning corporate entertainment events, which will be inclusive of music concerts, promotional events, corporate gigs, sports tournament and all round entertainment related events. Kreative Kreations has its core focus to entertain its guests by proper determination of what works best for the them.

This company will promote and manage entertainers, it will revolutionanise concerts and entertainment events in Chicago. It will be competitive and has its primary focus on becoming the best event organizing company in Chicago.

 

IMC Objectives

The dynamicity of the service offered by Kreative Kreations explores various integrated market campaigns that are targeted to achieve diverse objectives. In this accord, integrated market campaign regarding the organization of concerts is organized to achieve various objectives as elaborated below.

Promotion; Kreative Kreation will promote entertainment by supporting of new artiste , and sports personnel by signing recording deals for them, and also managing their business deals, it will ensure that they get enough publicity and marketing

Events and concert planning, this is the main goal of this company, we will plan and mange entertainment events in chi cargo. This will be through hiring of concert hall, basketball pitch and related facilities. We will also liaise with several other interested companies who in return shall be acknowledged ant can advertise their products (Barnes Reports, 2015,)

Publicity, since we are an event organizing company we will seek to make ourselves a household name, this shall be achieved through commercial advertisement, and advertisement on social media like facebook, twitter, instagram. We will also use billboards to advertise ourselves(Brown,2008)

Growth and establishment, our company seeks to be the biggest in Chicago, our plan is to outgrow other companies in terms of events we organize and income we generate. This will be through attraction of stakeholders and clients, owe shall achieve this by charging events at lower prices compared to others (Brown,2008)

 

Market Analysis

Creative creation will conduct a thorough study on the market size; these are by getting the record of the population of Chicago, and have an assumption that all of them are potential clients,

We will also conduct a detailed study of the environment of Chicago, in this study we will seek to know legal, political, economic, social and cultural and technological environment, we will compile proper information on market size, growth trends and consumer attitude and behavior. Our study will seek also to know market approach of our competitors since we are going to attract their customers( stevens,Dunn,Sherwood,1993)

SWOT Analysis

Strengths

·   Wide consumer base for event planning and organization services.

·    The company’s personnel are constituted of impeccable experts in the hospitality sector.

·   The company is firmly anchored on the provision of exemplary services that concur with clients. needs

·       The diversity of services provided by the company is pivotal to a wide revenue base for the company.

Weakness

·      The stiff market competition in from established entertainment companies

·       Poor publicity and marking strategies have significantly resulted in a stringent market for the company’s services.

·     Inadequate advertising, this is due to large population in Chicago and not all of them can be reached

·

Opportunities

·         Centralized business operation is limiting to the business. Kreative Kreations can invest in another town thus widening its capital base and market.

·         Kreative Kreations can increase its agents so as to facilitates a larger reachability and create a personal appeal that appeals to the client to use the services provided by the company.

·         The company can take advantage of the new technological tools that offer an internet platform for publicizing its services. This is through advertisement on facebook, twitter, instagram., we have also received a massive following on these social media platforms (Shimp, T. A. 2007)

 

Threats

·      Despite the immense potential for success exhibited by Kreative Kreations, the advertisement aspect of the company should be revised to include intensive publicity of its services since failure would result in jeopardizing the company’s competitive advantage given the stiff market competition.

·      Strong competition from established companies and also from emerging companies.

Unpredictability of the market, also fast and changing trend in the market. This is due to unpredictability of public preferences, emerging and ever dynamic entertainment industry (Brown,2008)

 

 

Communication Strategies Plan

Communication strategies employed in the IMC is essential in achieving the set objectives. Therefore, advertising encloses the use of traditional and modern communication campaign strategies such as the use of the internet. Events and other services rendered by

Kreative Kreations will have a wide range of consumers. So newspaper advertisement would be a better strategy in targeting the old and conservative population that does not wish to use the internet. (Shimp, T. A. 2007)

Advertising the sun-times and the Tribune would be efficient for Kreative Kreations since it has a wide readership. However, the cost of advertising is $284 per item on the internet. The  internet is a modern IMC tool that can be employed to reach a wide demographic range of consumers. The internet costs effective and would be an appropriate tool for IMC without necessarily causing a huge financial strain on the business. Advertising through the internet should be conducted by purchasing of Google AdWords and advertising on social media platforms such as facebook, twitter, instagram

Direct marketing

Personal mailing creates personal appeal and thus implores the buyer to order services provided by Kreative Kreations. The essence of personal mailing is informs the target market of the available offers and discount that could motivate them to purchase the service.( Brown, 2008)

Sales Promotion

A lucrative business venture heavily relies on the increase in the sales volume. Therefore, all activities that are geared toward increasing the sales volume of Kreative Kreations should be covered in the IMC strategies. Other than the use of traditional media and the internet in marketing, it is important that the company employs salespersons to create personal appeal and to urge customers to make purchases (Barnes Reports2015),

Public relation

Creative creation has put more emphasis on public relation as an important part of marketing because it creates strong ties between the organization and its stakeholders.  We have created publicity and have building media relations that have constituted the creation of a positive business image that has trigger service loyalty and increase the consumer base. The PR approach has included appreciation letters, appreciation advertisement on media and appreciation gist to show our clients we value them. We also give our stakeholders wonderful reception( Shimp, T. A. (2007)

Communication Schedules

The proposed IMC has to follow clearly stipulated dates that insightfully inform consumers of events that will occur. For instance, the launching of another branch in a different town has to be placed in the calendar.

Budget and Evaluation

 

Running Cost of the company

The company will have a quite huge budget; the higher part of the expenditure will go to day to day running of the company. These expenses will include payment of salaries, planning of events, payment of advertisements, payment of rent, hiring events venue, payment of security personnel and also payment of taxes returns(Barnes Reports2015)

 

Payment of salaries, the company has a pool of 30 workers, this includes the CEO, General Manager, HR, Accountant, procurement Manager, Planning manager, the rest of the staff include workers, who are allocated in various departments of the company, their payment is as listed below and the order of how they are earning;( Barnes Reports, 2015,)

 

CEO – $20000

General manager- $15000

HR-$10000

Accountant-$10000

Planning Manager-$10000

Procurement manager-$10000

8 senior employees-$6000

16 junior staff -$4000

 

The total amount used on salaries, $187000

 

Rent and hiring cost

The company will rent an office suit in Chicago CBD; the offices should cater for the management offices, boardroom, staff workstations, reception, kitchen, and storeroom. The office suit should have a humble parking area. We shall be paying a rent of $50000 per month; rent per year is $600000

We shall also be hiring venues for our events, we have an average of 3 to 4 events per month, and this translates into an equivalent of 40 events per year. We this is subject to change since we are developing at a very fast rate, an estimate of hiring a 3000 capacity venue per day is $30000, though venues with a higher capacity is higher than the above amount. We once paid $50000 dollars for a basketball auditions venue. The total amount for venue hiring equals $1200000

 

Rent per year- $600000

Venue hiring per year-$1200000

This amounts to a total of $1800000)

(Hood R. Husband, D & Yu, F.2002)

Procurement

This company spends on several other things, which include vehicles, office furniture, sound equipment, lighting system, these are estimated below

 

Management vehicles-$100000,

Senior staff vehicles-$20000,

Company vehicles-50000,

Office equipment-$30000

Refreshments-$30000,

Sound system-$100000,

This amounts to a total of $330000,

 

Concert expenditures and promotions

During concerts we spend a lot on the performers, mostly mainstream artiste, we also spend on artiste who curtain raise for them, there also master of ceremonies and disk jockeys. We also have guest’s appearance that makes an appearance.

 

Performing artiste, -$1000000

Master of ceremonies-$200000,

Disk jockeys-$ 200000

Security personnel-150000

Catering service-$100000

Models-$50000

Guest appearances-$100000

This makes a total of -$1800000

(Hood R. Husband, D & Yu, F.2002)

 

Miscellaneous expenditures

Will include everything that will arise and has not been budgeted for. These include damages accidents injuries, taxes and compensation; we have allocated a budget of $1000000

 

 

Develop a list of the planned communications strategy mix and estimate the costs of each component

 

 

Advertisement on Chicago TV, channels, we will carry out advertisement on eight main channels this will include, ABC, NBC, PBS, CBS, FOX, TCT, MNT, PBS, an advertisement on local channel cost $25 dollar per second dollar per advertisement and our company advertisement will be running for one minute, per the channel per day,, this therefore will an equivalent of $4380000 per year

Objective of T.V is to produce a commercial advertisement which conveys a message, for typically to market our product and services, this advertisement are very expensive though it is the best tool of relaying our presence. The reason for several T.V commercial is to make ourselves familiar and a household name

 

we will also run advertisement on daily newspapers but in Chicago, the newspapers will include; the Defender, Chicago Sun times, Chicago tribune, beacon news, Benton evening news, Belleville news, the cost of running an advertisement is on daily newspaper per thousands is $80, then we shall advertise once a week and also depending on the number of events that we have, per year estimation is $4800000

Newspaper display advertising is a form of newspaper advertisement this advertisement appears alongside regular editorial content. Display ads are generally used by businesses and corporations towards promotion of their goods and services and are generally for larger budget clients.  We have adopted this form to show our commitment and seriousness in business                                                       we will also run advertisement on Google via AdWords and also on online coupon sites will cost are $100 per month; this will be $12000 per year. (Pros or, 2014)  it is a form of marketing and advertising which uses the Internet to deliver promotional marketing messages to consumers, which happens to be our objective

We will also regularly run advertisements on local radios, these radios will cost $100 dollars per minute,  and our advertisement will be one minute a week, and our company shall run once a week , on five Chicago radio channels, the will be a budget of $ 52000. Our objective is to captor the attention of the listeners an also to advertise ourselves

A table of advertisement cost

Channel COST
TV $ 4380000
RADIO $52000
ONLINE $12000
NEWSPAPER $4800000

 

this will be a total of $9244000.

 

 

 

 

 

References

Kotler, P., Armstrong, G. (01/2013). Principles of Marketing, 15th Edition. [VitalSource Bookshelf Online]. Retrieved fromhttp://devry.vitalsource.com/#/books/9781269929318/

Shimp, T. A. (2007). Intergrated marketing communication in advertising and promotion. Mason, OH: Thomson/South-Western.

SWOT Analysis. (n.d.). London: Datamonitor Plc.

Stevens, R, Dunn, J, Sherwood, P, (1993), Market Analysis, Binghamton, NY, Harwoth, press

Brown, L.(2008). Market research and analysis, Chicago, illunois.wildPress

Ian, G, (2002), Business geography and new real estate market analysis, Florida, USA. Oxford University Press

Barnes Reports(2015, 3 December). 2016 U.S Musical groups and artistes industry-capital and expenses report, Market Research, retrieved December 14, 2015 from http://www.marketresearch.com/Barnes-Reports-v2737/Musical-Groups-Artists-Capital-Expenses-9502772/

Hood R. Husband, D & Yu, F.(2002), recurrent expenditure requirement of capital projects estimation for budget, Washington DC, USA, world Bank

 

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