dick smith electronics ltd - advertising, media & creative brief

7/23/2019 Dick Smith Electronics Ltd - Advertising, Media & Creative Brief

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Retail Dick Smith Electronics BSBADV512A Develop an Advertising Strategy and Brief & BSBADV507B

Develop a Media Plan

Advertising Brief: Dick Smith Electronics LtdBackground

Dick Smith commenced operations as Dick Smith Electronics in 1968 inArtarmon, Sydney, specialising in electronics components for home hobbyists.

Growth came during the 70s from the profitability of their electronicscomponents & kits, amateur radio & CB radio; and during the 80s from personalcomputers and telephone deregulation.

During this phase the stores popularity came from its responsiveness to whatwas new & novel, and making it available to consumers as quickly as possible,and from taking risks in retailing new products.

Woolworths Limited took full ownership of the chain 28 years ago, and hasprogressively shifted the stores and their stocked lines away from the nicheelectronics home-hobbyist style of retailer to a more mainstream electricalretailer with a broader range of product lines, with the electronics-geek imageof their typical customer of the 80s now projected as the image of their typicalretail store assistant, making the store a comfortable environment for peoplewho may be technologically-challenged to go for genuine and reliable adviceabout increasingly complex home devices, and to make their purchase, knowingthey can pop back and discuss any set-up issues after the sale, call thestore/service line, or engage the value-added home set-up and installationservice for more complicated products (the Mobile Techxperts service is taskedwith simplifying technology in everyday life and, since launching in July 2009has materially impacted sales growth). Dick Smith invests continuously in thetraining of staff to achieve the high level of knowledge consumers expect in-store.

Dick Smith also retails a range of its own store-branded DSE products (frommemory cards to TV and DVD players), often rebranded from manufacturerswhose own product is alongside it on the shelf.

From its early beginnings Dick Smith has relied heavily on the usefulness of mail-order catalogues to increase awareness, boost sales and foster engagement withconsumers. Dick Smith continues to engage with their consumer in their in-home environment through the content and services available through theirwebsite, and from the range of products able to be purchased online. In late2009 the Dick Smith website was relaunched, with online sales in the 12 monthssince double that of the previous comparative period.

As a subsidiary of Woolworths Limited, the loyalty card Everyday Rewards isoperational in Dick Smith stores. The program facilitates accumulation of pointsrelative to in-store purchase, for transfer and redemption as Qantas FrequentFlyer Points (where consumers independently choose to become a member ofthe Qantas Frequent Flyer program). The Everyday Rewards program has 5.1million registered members (in addition to Woolworths and Dick Smith, the cardis also used at Big W and BWS). The loyalty card proposition has been beneficialin developing a better understanding of our consumers, and it is anticipated thatmore efficient methods of data interpreting and matching will increase theGroups future ability to target our customers with compelling offers,

communicating more effectively with consumers, and developing predictiveexpertise (and associated long-range comparative merchandise forecasting

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capabilities) based on consumers past shopping activity. The loyalty cardprogram will also be launched as a branded affinity credit card financial product,increasing the Groups volume of consumer and retail transaction data. Thisdirection needs to be support by the ongoing & consistent encouragement ofcustomer membership of the scheme, and a request to scan the card at everytransaction, even where the purchase value is below the minimum required toearn points.

In recent years Woolworths has experimented with Dick Smith store layouts, in-store customer service, branding and product offering; the role of its otherwholly owned chain electronics store Tandy; and the role BIG W plays incomplimenting vs competing with aspects of Dick Smith. Some of these issueshave disappointed long-term loyal customers (the hobbyists).

During the last financial year 24 new Dick Smith stores were opened, 19 DickSmith and 25 Tandy stores were closed, and 40 Tandy stores were rebranded asDick Smith. There are currently 394 Dick Smith stores (the remaining 22 Tandy

stores will either not have their leases renewed, or will gradually be rebranded asDick Smith by 2012).

The in-store changes and relocations, and associated staffing changes, hascaused a considerable amount of disruption to customers, generated negativeconsumer sentiment, and disaffected long-term loyal customers unhappy withthe changed focus of the brand, shifts to stocking lower margin products and theelimination of discontinued product lines deemed inconsistent with the storesbranding.

Marketing ObjectivesIncrease sales by 10% during campaign period.Increase average per customer spend by 7% during campaign period.

Advertising ObjectivesIncrease perception in target audience that Dick Smith is the electrical retailerthey recommend to family and friends by 35%.Increase perception in target audience that Dick Smith staff are friendly andauthentic by 30%.

Target AudienceMales 25-45, employed, married with children, dwelling in greater suburbanSydney.

Brand History & PositioningPositioned as the store you go to, to find out more about the high-value electricalproducts you want but may not fully understand, where you can make yourpurchase safe in the knowledge that the person giving you advice knows whatthey are talking about. Dick Smith: Talk to the Techxperts.

Competitors Harvey Norman 160 stores

Jaycar Electronics 58 stores

Officeworks 128 stores

Australia Post 4,462 outlets (though not all in the POST SHOP format) JB Hi-Fi 131 stores

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Bing Lee (incl Sony Centre concept stores) 43 (NSW and ACT only)

Competitors AdvertisingTVC, print (newspaper & magazine), outdoor, online banner ads & store website,social media, radio, electronic direct mail, direct mail, in-store.

Current Media StrategyTVC, print, online, in-store, direct mail, social media.

Key Message / USPReliable advice at no extra cost.

Tone / MannerFriendly, fun, not overly technical or patronising, inviting, reassuring.

MandatoriesCompany logo and branding (Dick Smith: Talk to the Techxperts), everydayrewards loyalty card image and website details, web address and social mediahandle, store locator detail.

Budget$6,000,000

TimingMid September to Mid December 2011

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Retail Dick Smith Electronics BSBADV512A Develop an Advertising Strategy and Brief & BSBADV507B Develop a Media Plan

SWOT ANALYSIS Dick Smith Electronics

Ltd

STRENGTHS Brand perceived to be authentic & honest

Program to continuously train staff

Strong supplier relationships Effective online strategy

Successfully able to leverage reputation for expertadvice into value-added service (Mobile Techxperts in-home service)

Retail stores well positioned

WEAKNESSES Disruptive store location changes irritate customers

Current & future direction as electrical retailer

disaffects loyal original customers who wantelectronics components

House brand retail strategy very poorly executed, withuncertain future

Consumer confusion over competition with, and thenabsorption of Tandy

Fractured branding

No in-store affiliated product financing options

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OPPORTUNITIES Growing consumer interest in complex electrical

devices

Current and future electrical devices provide potentialfor value-added products / services (i.e. rebranding &reselling SIM cards, internet services)

Growth in development of technologically advancedhousehold electrical devices continually grows supplyof new potential product lines

Gradual reduction in cost price of technologicallyadvanced devices continues to grow their marketappeal

THREATS Subsidiary of larger retail group may be rebranded,

absorbed, sold-off, closed down as and where parentdeems it appropriate

Competitors have broader diversity of productcategories and are less sensitive to fluctuations orchanges affecting electrical devices

Consumer confidence and economic fluctuationsdirectly impact retail activity

All stock is imported, profit margins sensitive tofluctuations in currency exchange rates.

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The Media Brief

Dick Smith Electronics Ltd

Media Objectives

The Media Plan is designed to reach the majority of the target audience with a frequency ofat least four times during the campaign period. Utilising the selected media the campaignflight pattern is continuous with bursts of activity at key points during the campaign;familiarising the target with the campaign message and inspiring a call to action as keyevents during the campaign promotion approach.

Varying the media utilised and shaping the communication around the targets media andlifestyle habits, acting on the targets creative instincts and interest in finding out more,reducing wastage and acting to ensure the target is exposed to the campaign message

many times over the campaign period is best achieved through the media selected, avoidingheavily pushing the campaign message in traditional media only, which may negativelyimpact the targets perception of the advertisements focus.

Geographic areas to be coveredThe draw area is metropolitan Sydney. Target audience lives and conducts their life in thegreater suburban area of Sydney, with a specific focus on the areas of more notablepopulation density, and areas where there is a greater propensity for households with two ormore children, i.e. Western Sydney.

When do we talk to them

The store retails items that cover purchase cycles of differing lengths. Campaign periodcoincides with tax-return time, during which households are more likely than at any othertime of the year to receive cash lump-sums. To establish a connection with the store &encourage an in-store visit, the target may be effectively reached through morning radio,evening television, and through print advertisements (newspapers). Online banner ads onnews/entertainment websites can effective reach the target when they have the time andcapacity to browse the online store.

Creative requirements

Bright and loud to encourage action and generate desire for the products Dick Smith retails,including functioning sequences of electrical appliances, home theatre devices andcomputer technology.

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Media Plan Budget

September to December 2011

Dick Smith Electronics

SEPT SEPT SEPT SEPT OCT OCT OCT OCT NOV NOV NOV NOV NOV DEC DEC DEC DEC TOTAL

4-10 11-17 18-24 25-1 2-8 9-15 16-22 23-29 30-5 6-12 13-19 20-26 27-3 4-10 11-17 18-24 25-31

RadioNOVA FM (mon-fribreakfast x 6 perday)

9,000.00

9,000.00

9,000.00

9,000.00

9,000.00

9,000.00

9,000.00

9,000.00

9,000.00

9,000.00

9,000.00

9,000.00

9,000.00

9,000.00

9,000.00

9,000.00

9,000.00 $153,000

Newspaper

MX (mon-fri)1 x Full Page376mmx262mmper day 49,282 49,282 49,282 49,282 49,282 49,282 49,282 49,282 49,282 49,282 49,282 49,282 49,282 49,282 49,282 49,282 49,282 $837,797

Onlinedailytelegraph.com.auLeaderboard(728x90pixels) -weekly 11,250 11,250 11,250 11,250 11,250 11,250 11,250 11,250 11,250 11,250 11,250 11,250 11,250 11,250 11,250 11,250 11,250 $191,250

Sub Total $1,182,047cost pertarp

Television

Sydney

Channel 7 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 2,500.003,000,000.0

0

Channel 9 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 2,000.001,800,000.0

0

Channel 10 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 2,500.003,000,000.0

0

Sub Total$4,800,000

.00

FINAL TOTAL$5,982,047

.40

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The Creative Brief

Client: Dick Smith ElectronicsBrand: Dick Smith: Talk to the TechxpertsDate: 29/09/2010

Account Director:Jaddan BruhnCreative Team:Jaddan Bruhn

Role for AdvertisingIncrease foot-traffic to Dick Smith retail stores, and visits to online web-store to increasesales by 10% & average per customer spend by 7% during campaign period. Increaseperception in target audience that Dick Smith is the electrical retailer they recommend tofamily and friends by 35%. Increase perception in target audience that Dick Smith staffmembers are friendly and authentic by 30%.

Target AudienceDemographics Males 25-45, employed, married with children, dwelling in greatersuburban Sydney.

Psychographics Conventional Family Life, balancing budget between mortgagepayments (or strict saving for home deposit) and competing needs of family, but eager tokeep up with contemporary gadgetry and the latest home technology within what hecould afford. While his father mayve spent his spare time between the hardware storeand the shed, our target likes to keep up with the latest electronic devices and will spendmoney on items for the home that will allow him to show off to friends & family, and,even if purchased on credit, act as a visible symbol of status. He may have had to giveup aspects of his old life to settle down and have kids, but everyone in the family canenjoy a widescreen TV, a Bluray and an Xbox.

Behaviour and usage Males in this demographic are notorious for not asking fordirections, not reading instructions and for not speaking-up for fear of appearingincapable (emasculated). Unless the person they are speaking to is an expert. Thetarget audience is comfortable going to Dick Smith to ask a few questions & make apurchase as it is a safe environment to clarify a technical quandary without feelingpatronised or inadequate, and, based on the quality of the in-store experience will likelyreturn to make repeat purchases or feel confident to translate future transaction eventsto the on-line store, confident that there is the scope to have an issue clarified shouldthere be a technical glitch.

Key consumer insight When I want to purchase a new component for my home theatre set-up I know I can trustthe people at Dick Smith to give me the advice I need without trying to push me intobuying a whole new system.

Key Thought or USP Reliable advice at no extra cost.

SupportAustralias largest chain of dedicated electrical retail stores, with in-home installation andadvice available, free home delivery for online purchases, customer loyalty programthrough Everyday Rewards and a continuously trained sales-force recognised for theirexpertise and approachability.

Tone and Manner - Informative, fun and friendly.

Desired Mediums - TVC, Print (newspaper), radio, online.

Budget - $6,000,000

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Timing - Mid September to Mid December 2011

MandatoriesCompany logo and branding (Dick Smith: Talk to the Techxperts), everyday rewardsloyalty card image and website details, web address and social media handle, storelocator detail.

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dick smith electronics ltd - advertising, media & creative brief

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