introduction
Edible Arrangements is a company that sells chocolate covered fruit which can be bought separately or in a bouquet. The bouquets, sold online, are categorized by occasion, such as birthdays, Valentine’s Day, and even catering. But, what they are truly selling is convenience, ease and a positive purchase experience for their customers. In a different regard, they sell the positive memories created when a customer decides to gift someone an Edible Arrangements bouquet. The president of Edible Arrangements himself says, ‘we want to help people celebrate what is good in life’ (Price, 2016).
Market segmentation
In terms of demographic features (See Appendix A), a middle-aged market should be targeted since data from the US Census Bureau’s 2017 ‘American Community Survey’ revealed the median millennial made less money than the median Gen Xer or baby boomer (Kiersz, 2018) (See Appendix C). Therefore, Edible Arrangements should target a group with a larger disposable income to spend on non-essentials and gifts. This group should also earn higher incomes, estimated between 100k-150k+ a year (See Appendix C), since the products being sold are relatively expensive. In sum, we are targeting an urban, highly-educated market, both male and female, since both groups have proven to spend substantial money on gifts and eliminating one sex would restrict the market.
In terms of psychographic features (See Appendix A), the Edible Arrangements market would consist of those with an active lifestyle and would appreciate the convenience of online orders and deliveries. This is especially true since data suggests many affluent consumers are ‘part of stressed-out, time-strapped, two-worker households’ in need of this convenience. (Del Gigante, 2018). Additionally, this active lifestyle lends to a health-conscious consumer, who values high-quality production and products as well as authenticity in communication about the creation of these products.
Finally, in terms of behavioral segmentation (See Appendix A), the target market for Edible Arrangements would be buying the product for an occasion or as a gift, with most marketing targeted during the holiday season (Liyakasa, 2017). Additionally, Edible Arrangements’ purchase behavior has been based off e-commerce (65% of Edible Arrangements’ commerce), a buying behavior unique to the company’s success (Liykasa, 2017). Since Edible Arrangements are currently being marketed for use on an occasion basis, brand awareness must be enhanced by introducing promotions, consequently increasing brand loyalty (De Pelsmacker, Geuens & Van den Bergh 2010, p. 145). This is important since ‘new customer acquisition’ has proven difficult in ‘the gifting business’ (Liykasa, 2017). Therefore, Edible Arrangements needs to establish ‘top-of-mind awareness’ (See Appendix A) within their target market, one of the essential ‘steps to a sale’ (Funk and Levis 2009, pg. 50).
In terms of psychographic features (See Appendix A), the Edible Arrangements market would consist of those with an active lifestyle and would appreciate the convenience of online orders and deliveries. This is especially true since data suggests many affluent consumers are ‘part of stressed-out, time-strapped, two-worker households’ in need of this convenience. (Del Gigante, 2018). Additionally, this active lifestyle lends to a health-conscious consumer, who values high-quality production and products as well as authenticity in communication about the creation of these products.
Finally, in terms of behavioral segmentation (See Appendix A), the target market for Edible Arrangements would be buying the product for an occasion or as a gift, with most marketing targeted during the holiday season (Liyakasa, 2017). Additionally, Edible Arrangements’ purchase behavior has been based off e-commerce (65% of Edible Arrangements’ commerce), a buying behavior unique to the company’s success (Liykasa, 2017). Since Edible Arrangements are currently being marketed for use on an occasion basis, brand awareness must be enhanced by introducing promotions, consequently increasing brand loyalty (De Pelsmacker, Geuens & Van den Bergh 2010, p. 145). This is important since ‘new customer acquisition’ has proven difficult in ‘the gifting business’ (Liykasa, 2017). Therefore, Edible Arrangements needs to establish ‘top-of-mind awareness’ (See Appendix A) within their target market, one of the essential ‘steps to a sale’ (Funk and Levis 2009, pg. 50).
purchase decisions
The target market’s purchase decisions can be explained through various theoretical schema. Using the ‘Foot-Cone-Belding Grid’, the hierarchy of effects (See Appendix B) for Edible Arrangements would be: do, feel, think (Vaughn, 1980). In other words, feelings or affective aspects have a large influence on the decision-making process. And, the purchase would be low involvement, which will be discussed later in further detail. Furthermore, the DAGMAR model presents purchase intention as a communication objective, suggesting that for ‘low-involvement buying situations, purchase intentions should not be stressed in communications’ (De Pelsmacker et al, 2010). The DAGMAR model also presents purchase facilitation as a communication objective which aims to assure ‘buyers that there are no barriers’ such as ‘price, product, place’ that would ‘hinder product or brand purchase’ (De Pelsmacker et al. 2010, p. 173). Therefore, the idea of convenient online purchase should be clearly communicated so the act of purchasing the product would not be a barrier. With the integration of technology into daily life and the increasing growth of e-commerce, ‘consumers are conditioned to expect same-day delivery (Liyakasa, 2017). Hence, if customer expectations are satisfied or exceeded this would mean greater brand loyalty and higher probability of repeated purchase. (Funk & Levis 2009, p. 51).
Applying the Elaboration Likelihood Model (See Appendix B), a busy consumer with low-levels of involvement is going to have low levels of elaboration and consequently partake in peripheral route processing. Following a more affective form of processing, influence over purchase decision can be accomplished through heuristics or mental shortcuts, since the market would be better persuaded by humor, endorsement, or emotion (Cacioppo & Petty, 1984). Since edible arrangements helps to create a positive mood for their customers and those receiving their gifts, using positive emotion as an advertising heuristic will help mirror the objectives of the brand and reinforce its image.
Applying the Elaboration Likelihood Model (See Appendix B), a busy consumer with low-levels of involvement is going to have low levels of elaboration and consequently partake in peripheral route processing. Following a more affective form of processing, influence over purchase decision can be accomplished through heuristics or mental shortcuts, since the market would be better persuaded by humor, endorsement, or emotion (Cacioppo & Petty, 1984). Since edible arrangements helps to create a positive mood for their customers and those receiving their gifts, using positive emotion as an advertising heuristic will help mirror the objectives of the brand and reinforce its image.
Brand positioning
In terms of brand personality, Edible Arrangements can be categorized as sincere or wholesome since the brand markets itself as wanting to help make memories and since its products are often gifts (Aaker, 1997). Therefore, if the market strategy helps to create an association between the company and positive situations, positive perception of the brand will be invoked. This is due to schemas formed by the mind that long for consistency between the message and the brand (Friestad & Wright, 1994). To market to the affluent segment, the brand would not need to be repositioned, but the brand image presented on the website would need changes. The image presented on the website can be described as “affordable” since it has ‘starting at’ prices and a large ‘free delivery’ code for saving money emphasized on the homepage in multiple places. In this regard, it is very informational and lacks any emotion or humor, not representative of the wholesome image Edible Arrangements hopes to portray, or useful in engaging peripheral route processing. In contrast, the authenticity of the brand should be reinforced by increasing communication about ‘how products are sourced and made’, further appealing to the target market through the building of customer-company relationships (Marketing Charts, 2014). (See Appendix C)
media mix
With the target consumer being one who seeks convenience, they are more likely to use social media than pay great attention to print advertisements in magazines or newspapers. Research from the Pew Research Center states ‘those in higher-income households’ and ‘those with at least some college experience’ are more likely to use social media. Research has also shown a 69% increase in social media usage ‘among those ages 30-49, from 8% in 2005 to 77%’ in 2015 (Perrin, 2015). With the research showing an upwards trend, social media usage in 2018 for adults is even higher today. Therefore, social media would be a successful means of communication for a middle-aged consumer with a high- income and fast-paced lifestyle.
In terms of traditional channels, television and radio advertisements would also be beneficial if peripheral route processing is engaged by using advertisements that are humorous or emotional but are also short and concise. Radio is also regarded as credible which is line with Edible Arrangements’ sincere brand personality. And, radio advertisements would also target a low-involvement, highly active consumer because people listen to the radio while they are doing something else such as driving or running errands. Engaging audiences in a similar way, podcasts have substantial, committed audiences and can act as a ‘niche ad medium’ (Enberg, 2018) (See Appendix C). This further maintains that our target customer has a fast-paced and busy lifestyle and is not able or willing to spend a long time centrally processing different advertisement.
Advertising efforts on social media and on traditional outlets should be increased around the holiday season, starting before Christmas and going through to Valentine’s Day, strategically increasing brand awareness when most consumers are searching for gifts. A second interval of increased advertising could also be implemented beginning at Easter and going through to Mother’s Day, for the same reason previously mentioned.
In terms of traditional channels, television and radio advertisements would also be beneficial if peripheral route processing is engaged by using advertisements that are humorous or emotional but are also short and concise. Radio is also regarded as credible which is line with Edible Arrangements’ sincere brand personality. And, radio advertisements would also target a low-involvement, highly active consumer because people listen to the radio while they are doing something else such as driving or running errands. Engaging audiences in a similar way, podcasts have substantial, committed audiences and can act as a ‘niche ad medium’ (Enberg, 2018) (See Appendix C). This further maintains that our target customer has a fast-paced and busy lifestyle and is not able or willing to spend a long time centrally processing different advertisement.
Advertising efforts on social media and on traditional outlets should be increased around the holiday season, starting before Christmas and going through to Valentine’s Day, strategically increasing brand awareness when most consumers are searching for gifts. A second interval of increased advertising could also be implemented beginning at Easter and going through to Mother’s Day, for the same reason previously mentioned.
print advertisement plan
The Edible Arrangements print advertisement could illustrate a working woman running through a city on the way to an event or party picking “flowers” from a city park. But, the “flowers” would be Edible Arrangements (signified by the company logo). The target market would be able to place themselves in the shoes of the character in the advertisement, making it relevant to them. And, this image would encompass the sincere and wholesome brand personality of the brand but also communicate its convenience to appeal to the target market. The advertisement tagline could read, “Allow memories to blossom with Edible Arrangements” using a play on words to create a meaningful message representative of the brand image. This tagline uses appeal to emotion by exploiting the customer’s need for a meaningful gift. In the same regard, the use of bright colors and fun fonts, help create a positive mood, one that can then be associated with the brand. Furthermore, the advertisement avoids numbers and facts, because this would be less likely to engage a low-involvement consumer.
Implementation of Social Media
Based on the MAO (Motivation, Ability, Opportunity) Model, motivation is made up of ‘consumer needs & goals’ and ‘consumer involvement’ (De Pelsmacker et al 2010, p. 90). In terms of the defined target market, the functional consumer need would be to find a gift or fruit display for an occasion. Yet, the symbolic goal would be to create memories and positive experiences with those around them. With consumer involvement being low, we can conclude that motivation to engage with the brand on social media would be moderate, with ability to purchase the product being high. In regards to MAO, opportunity would also be moderate since the consumer may not have high exposure to the message. But, through social media, the brand can increase opportunity since the target market would be more likely to engage on this platform. For example, social media’s ‘highly interactive platforms’ can allow for greater connectivity with the brand: such as customer service and easier access to online purchasing (Keitzmann et al. 2011). Social media will be beneficial for advertising and for creating real relationships with their low-involvement customers, further enhancing the brand image. Platforms such as Instagram and Facebook can provide sponsored posts to certain consumers based on their previous activity, also allowing the brand to communicate to specific consumers through data based algorithms (DeMers, 2017).
A beneficial use of social media can be implemented using the ‘Four E Model’. The first step is to ‘excite the customer’ by making the brand ‘relevant’ such as ‘providing personalized offers’ (Bredican, 2018). Second, the brand must ‘educate the customer’ by providing the ‘product’s value proposition and offered benefits’ (Bredican, 2018). In regards to the established target market, Edible Arrangements should educate the customer about the convenience of its e-commerce, making the campaign relevant to its highly active target. Third, the consumer must be able to ‘experience the product or service’ by ‘stimulating real experiences’ (Bredican, 2018). Finally, the brand needs to ‘engage the customer’ to create ‘action, loyalty, and commitment’ among customers (Bredican, 2018). This can be achieved through authentic communication with customers through social media outlets.
A beneficial use of social media can be implemented using the ‘Four E Model’. The first step is to ‘excite the customer’ by making the brand ‘relevant’ such as ‘providing personalized offers’ (Bredican, 2018). Second, the brand must ‘educate the customer’ by providing the ‘product’s value proposition and offered benefits’ (Bredican, 2018). In regards to the established target market, Edible Arrangements should educate the customer about the convenience of its e-commerce, making the campaign relevant to its highly active target. Third, the consumer must be able to ‘experience the product or service’ by ‘stimulating real experiences’ (Bredican, 2018). Finally, the brand needs to ‘engage the customer’ to create ‘action, loyalty, and commitment’ among customers (Bredican, 2018). This can be achieved through authentic communication with customers through social media outlets.
Objectives
Furthermore, the DAGMAR model can be used to evaluate the success of the campaign’s communication goals and its achievement of objectives. The first objective would be ‘developing category wants’ (De Pelsmaker et al 2010, p. 166). Since the product is one consumers do not purchase often, the campaign must clarify how the consumer needs will be fulfilled by buying an Edible Arrangement such as creating memories or getting a gift. Another dimension would be brand awareness which could be implemented through promotion of products or increased frequency of advertising; and, measured by recognition of the brand’s logo or colors or ‘top-of-mind awareness’, leading to an increase in purchases (De Pelsmaker et al 2010, p. 167). Finally, satisfaction can be used to measure the success of the campaign which is ‘when the product or service lives up to the required and desired benefits or surpasses the expectations’ (De Pelsmacker et al 2010, p. 175). The greater the satisfaction, the more likely the customer will remain loyal and re-purchase the product (De Pelsmacker et al 2010, p. 175).
Measurement of Success
In the short term, brand awareness can be assessed through the measurement of ‘consumer investments’ in social media platforms (Hoffman & Foder, 2010). These investments could be gaged through traffic or engagement on the media platform such as number of comments or posts on Twitter or Facebook about the brand (Hoffman & Foder, 2010). Once the media mix has been implemented in the medium term, Edible Arrangements can assess the success of the campaign through the success of their e-commerce store such as number of online sales and number of times the website is visited (See Appendix B). Furthermore, a social media campaign will also prove beneficial since this media traffic can be gaged instantly and allow for measurement of increasing brand interaction with consumers and allow for a valuation of long-term return on investment (Hoffman & Foder, 2010). Authentic communication with the target market will allow for the brand to build relationships with customers on a long-term basis, giving the company a gage of customer loyalty. Finally, satisfaction with the product can be measured through online surveys meant to measure customer expectation, based on claims made in advertisement, in relation to the products and services received.
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Del Gigante, M. (2018). Affluent Consumers in 2018: Demographics and Spending Habits. [online]. Available at: https://www.mdgadvertising.com/marketing-insights/affluent-consumers-in-2018-demographics-and-spending-habits/ (Accessed 7 December 2018).
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Funk, D. and Levis, A. (2009). Conscious branding. New York, N.Y.: Business Expert Press.
Friestad, M. Wright, P. (1994). ‘The Persuasion Knowledge Model: How to Cope with Persuasion Attempts’. Journal of Consumer Research. 21, pp. 1-31
Hoffman, D. and Foder, M. (2010). ‘Can You Measure the ROI of Your Social Media Marketing’. MIT Sloan Management Review.
Kiersz, A. (2018). Here's how much the typical millennial, Gen X, and baby-boomer worker earns in every US state. [online]. Business Insider UK. Available at: http://uk.businessinsider.com/typical-income-millennial-gen-x-baby-boomers-every-state-us-2018-7 (Accessed 7 December 2018).
Kietzmann, J. Hermkens, K. Mccarthy, I. Silvestre, B. (2011) Business Horizons. Vol.54(3). pp.241-251
Liyakasa, K. (2017). Edible Arrangements Uses Digital Tactics To Deliver More In-Store Traffic. [online]. Adexchanger.com. Available at: https://adexchanger.com/advertiser/edible-arrangements-uses-digital-tactics-deliver-store-traffic/ (Accessed 10 December 2018).
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appendix A: Terms Defined
‘Market Segmentation’ is defined by the Oxford Dictionary of Marketing as ‘establishing criteria for segmenting the market, then to divide the heterogeneous market into relevant, clustered subgroups’ (Doyle 2011). ‘Market segmentation’ is beneficial in that it ‘new segments of markets that were previously unexplored by the mass marketers’ (Doyle 2011).
Demographic features can also be used to segment the target market, such as age, income level, gender, family, nationality etc. (De Pelsmacker, Geuens, Van den Bergh 2010, p. 134).
Psychographic features which can be utilized to segment the market include cultural clusters, social status, lifestyle and personality type. Lifestyle and ‘external characteristics are linked to a person’s personality’ (De Pelsmacker et al. 2010, p.143).
Behavioral segmentation of the market is relevant in terms of the occasion during which a product is being used (De Pelsmacker et al 2010, p. 144). Behavior can also be segmented through user status such as potential-user or first-time user as well as brand awareness and loyalty (De Pelsmacker et al. 2010, p. 145).
‘Top-of-mind awareness’ is defined by the Oxford Dictionary of Marketing as ‘A technique used in brand research where a respondent is asked which brand names come immediately to mind, without any prompting or mention of specific brand names’ (Doyle 2011).
Demographic features can also be used to segment the target market, such as age, income level, gender, family, nationality etc. (De Pelsmacker, Geuens, Van den Bergh 2010, p. 134).
Psychographic features which can be utilized to segment the market include cultural clusters, social status, lifestyle and personality type. Lifestyle and ‘external characteristics are linked to a person’s personality’ (De Pelsmacker et al. 2010, p.143).
Behavioral segmentation of the market is relevant in terms of the occasion during which a product is being used (De Pelsmacker et al 2010, p. 144). Behavior can also be segmented through user status such as potential-user or first-time user as well as brand awareness and loyalty (De Pelsmacker et al. 2010, p. 145).
‘Top-of-mind awareness’ is defined by the Oxford Dictionary of Marketing as ‘A technique used in brand research where a respondent is asked which brand names come immediately to mind, without any prompting or mention of specific brand names’ (Doyle 2011).
Appendix b: Theory Explained
The hierarchy of effects model explains that effects experienced by the consumer which take place in a certain order. These effects include cognitive made up of knowledge and evaluations, affective or emotional, and behavior or action (De Pelsmacker et al. 2010).
Elaboration Likelihood Model (ELM) states that consumers process information differently based on how high or low their involvement is: either centrally or peripherally (Cacioppo & Petty 1984). Those with lower levels of involvement take part in peripheral-route processing. On the other hand, those with higher levels of involvement take part in central-route processing meaning they are following a more logical thought process guided by fact (Cacioppo & Petty 1984).
As presented in the Electronic Journal of E Commerce, ‘the DeLone & McLean Information Systems Success Model’ can be used to measure this success. (DeLone & Mc Lean, 2014). Some dimensions of this model that can be applied to Edible Arrangements include: net benefits, usage and user satisfaction (DeLone & Mc Lean, 2014). Net benefits encompass benefits for both the consumer and the company. In the long-term, the company to should measure ‘their ability to gain positive net revenue’ (DeLone & Mc Lean, 2014).
Elaboration Likelihood Model (ELM) states that consumers process information differently based on how high or low their involvement is: either centrally or peripherally (Cacioppo & Petty 1984). Those with lower levels of involvement take part in peripheral-route processing. On the other hand, those with higher levels of involvement take part in central-route processing meaning they are following a more logical thought process guided by fact (Cacioppo & Petty 1984).
As presented in the Electronic Journal of E Commerce, ‘the DeLone & McLean Information Systems Success Model’ can be used to measure this success. (DeLone & Mc Lean, 2014). Some dimensions of this model that can be applied to Edible Arrangements include: net benefits, usage and user satisfaction (DeLone & Mc Lean, 2014). Net benefits encompass benefits for both the consumer and the company. In the long-term, the company to should measure ‘their ability to gain positive net revenue’ (DeLone & Mc Lean, 2014).