Living Social Mock IMC Plan

Integrated Marketing Communications PlanMichelle D. Lach • Roosevelt University • MSIMC 2014

Tuesday, April 22, 14

Has Anyone Used LivingSocial?Product/Service or Activity/Adventure?


What’s Going On With LivingSocial?

Cons

• Highly competitive market

• Increasingly difficult to make a profit with high competition

Pros

• Highly recognized brand in the category

• 25% of the DDS category marketshare

LivingSocial is in the Daily Deal Sites (DDS) category


What’s Going On With LivingSocial?

Recent Tactics

• Everything to everybody

• Email blast current members extensively

• No major push to gain new customers

• High focus on the low cost daily deals

LivingSocial is in the Daily Deal Sites (DDS) category


So What’s The Problem?Daily Deal Sites Category Structure

High Points of Parity

Low Barriers of Entry

Low Brand Preference

High Focus on Low Price


High Focus on Low Price

When this happens, the category tends to draw in a low-spend target market, attracting a consumer that begins the purchase process by wanting to spend the lowest amount of money possible.

So What’s The Problem?


So How Do We Fix It?Shoot the gap!

LivingSocial needs to create a niche by focusing on their main, higher-ticket, point of difference (their Escapes), and shoot for the gap between the lower priced Daily Deal Sites (DDS) and the higher-priced, less-organized vacation sites.


Strategic Decisions:Marketing ObjectiveIncrease sales of Escapes by targeting higher-spend, time-crunched, financially savvy individuals who don't have the resources (i.e. time, patience, etc.) to plan the lifestyle they want.

Communications ObjectiveConvince the target audience that the lifestyle they desire is within reach, without sacrificing their retirement or work commitments.

RationaleTo “shoot the gap” LivingSocial must remember that, though the target is willing to spend larger amounts of money on a purchase, they are still searching for discounts. Financial acumen remains a large factor in their decision, otherwise they would be drawn by any random vacation site.


Strategic Decisions:Target Market

• The Bridled Grinder is a 30-40 year old, career-oriented, daily-grind professional,

• Raised by the money conscious, middle-class, baby boomers. They have grown up experiencing their parents “going out, socializing and “living life,” while maintaining careers that lead them to a comfortable retirement.

• They work long hours and rarely take time to research and plan activities in their social life (time outside of work).

• They crave a well-rounded lifestyle that will make them feel like they are succeeding in all aspects of life, both professionally and socially.

• They need experiences to be ready-made, at a reasonable price, and worth the expenditure of their limited free time.


Strategic Decisions:Target Market Rationale• This group spends almost as much on travel and leisure as the older cusp of their

generation, but have not reached the height of their careers with regard to net income.

• They are saving for retirement, but have yet to feel the pinch of time closing in on their nest egg.

• They still feel that they can spend a little less frugally on convenience for the ability to experience life, while keeping a keen grasp on their financial goals and future.

• They task themselves with maintaining no less than the lifestyle they were raised with, even though it took their parents a lifetime to build.


Strategic Decisions:Value Proposition

Functional Benefits (“I can”):I can afford and enjoy a social side to round out my lifestyle, because LivingSocial has ready-made experiences created by trend-savvy experts at affordable prices.

Emotional Benefits (“I feel”):I feel like I am living a more fulfilled life, because I am able to participate in more social experiences. Note: emotion (limbic system) can’t process affordability or financial savvy.

Self-Expressive (“I am”):I am successful, savvy, and live a well-rounded life.


Strategic Decisions:Customer RelationshipCustomers are busy, financially savvy lifestyle seekers who trust LivingSocial to take care of the details for the social side of their well-rounded lifestyle.

Convince the Bridled Grinder that the lifestyle they desire is within reach, because LivingSocial will manage the time and planning of their social experiences to help make their life more about living, not planning to live.

Basic Strategy

Rounded out lifestyles, within range.

Key Proposition


Message StrategyBrand PersonalityLivingSocial will act as the target market’s Escape Concierge, anticipating the adventures and activities that they want and planning them to an extent that they appreciate.


Message StrategyPromotion Theme:

Escape The Daily Grind.


Message StrategyPrint PromotionAd #1






Message StrategyPrint Promotion Rationale:

Purpose of print promotion is to increase the size and number of Escapes purchased by focusing on narrow segments of the target, while maintaining complete control over the message. The promotion is brief and clean, with the headlines focusing on saving time.


Message StrategyFacebook Promotion:• Facebook application that calculates the users previous likes, shares and frequently used

words regarding anything travel/adventure/vacation/activity/experience specific, and matches it with the most compatible Escape available for them.

• User can choose to customize the experience further with additional questions to generate more valuable and accurate results.

• They can view their results by creating a free Escapee Account, and will earn a $25 credit on their account by sharing their results, allowed only once.

• Each time they like or share unique individual results with #EscapeHatch, they will receive a $1 credit to their account. Users can bank up to $500 dollars credit that can be used toward purchase of Escapes, up to 10% off of their total Escape purchase price.

•Promotion Dates: May 1, 2014 - June 30, 2014


Message StrategyTwitter Promotion:

Introduction / LaunchOpen the hatch! Escape the grind and earn up to $500 toward an adventure of your choice. Let us plan your Escape. #EscapeHatch bit.ly/1fuRLivin (Lands on Facebook App Page, button labeled “Escape Hatch”)

DuringWhere Do You Wanna Be? If you’ve used our App you already know! Open the hatch and start earning your $500! #EscapeHatch bit.ly/1fuRLivin (Lands on Facebook App Page, button labeled “Escape Hatch”)

During / Follow-up Over XXXX have “Opened the Hatch” Earn your $500 before the deal ends. #EscapeHatch bit.ly/1fuRLivin (Lands on Facebook App Page, button labeled “Escape Hatch”)

Wrapping Up / Final PushEscapees wanted! Escape the grind and earn up to $500 toward on a adventure of your choice. Let us plan your Escape. #EscapeHatch bit.ly/1fuRLivin (Lands on Facebook App Page, button labeled “Escape Hatch”)

EndWe can bust you out, but you have to “Open the Hatch”! Offer ends June 30, 2014 #EscapeHatch bit.ly/1fuRLivin (Lands on Facebook App Page, button labeled “Escape Hatch”)

•Promotion Dates: May 1, 2014 - June 30, 2014


http://bit.ly/1fuRLivin










Message StrategyEmail Promotion:

Subject:

The Escape Hatch Awaits!



Header:

For a limited time, you can pull the hatch and earn $500 toward your personalized Escape.




Message StrategyEmail PromotionRationale:

No time to plan an escape?

Pick it with you in mind...

And package it to boot!

We’ll help you pay...


Message StrategyAmbient PromotionLocation: Street lights in heavily populated, high traffic areas in cities.

Media:Banners that attach to the sides of street lights. Large, arching banners that resemble palm leaves would be attached to the light pole and reach out from all four sides - giving the illusion that the pole was a palm tree. Additional round banners resembling coconuts would hold different messages throughout the city.

Example Messages: Escape The GrindThe Escape Hatch AwaitsOut of Range, Within RangeEscapees Wanted


Message StrategyAmbient Promotion RationaleMany of the target market will need to be reached outside of social networking and membership emails. The palm banners will serve to make the target aware of the the promotion and continue to reinforce brand recognition while they are more offline. (i.e. driving, walking, etc.)


Questions?
