mkt 500 milestone eight

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Jan 9, 2024

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MILESTONE EIGHT: PROMOTION Milestone Eight: Promotion Jordan Sadler MKT 500 Professor Teague

MILESTONE EIGHT: PROMOTION The company that I have created a product for is Walmart, and the product itself is a new meal kit service that will be distributed through the company. A meal kit is a subscription-based service where a company sends customers pre-portioned ingredients along with recipes to create home cooked meals. Since Walmart is known for being a low-cost retailer that provides consistently low pricing on their products, the idea behind this new meal kit service is for it to be the most affordable meal kit on the market to make it more accessible for consumers. Since this is a brand new service that Walmart will be rolling out, it is imperative that we market it the right way. We want to come up with a concise marketing and promotional strategy that ensures that the right message is conveyed to our potential customers in every market space that we want to reach. In this milestone, I will dive deeper into the promotional strategy that we will use to market this new meal kit service and ensure its success. In order to create a successful promotional strategy, one must have a clear understanding of what integrated marketing communications (IMC) is, and why it is important to a product’s promotional efforts. The process of IMC involves creating a unified brand message and making sure that it is consistent across all forms of media that a brand will use to reach its target audience. It is very typical for companies to use multiple different channels to communicate with their target audience, especially in today’s digital world where we have so many more marketing channels available to us. IMC is important because it helps keep brand messaging consistent across all channels throughout the entire customer journey which ultimately helps with brand building, which is very important when rolling out a new product (Pecánek, 2022). The elements of the promotional mix that I believe will work best when promoting this new meal kit service through Walmart will include using a mix of online marketing, advertising, and sales promotion. Walmart is one of the world's largest multinational retail corporations, and

MILESTONE EIGHT: PROMOTION for many years they have consistently been ranked as the largest company in the world in terms of revenue. Thankfully, Walmart has a great reputation and are very trusted amongst consumers, so the recognition that they already have as a company will help us when promoting their new meal kit service, so we plan on leaning into that when promoting this new service. Walmart’s target market is very broad and includes a wide range of consumers, so it is important that we market to all of them correctly across the appropriate channels. Walmart targets low to middle class consumers across all different socioeconomic backgrounds. This includes value-conscious consumers who prioritize low prices, families that are looking for a wide range of products, and rural and suburban communities where Walmart stores are often the largest and most accessible retail store available (Le, 2023). They attract consumers of all different ages and backgrounds, making it important for Walmart to use a mix of different promotional tactics to communicate to all of their potential consumers. Walmart has been known to use of mix of different advertising tactics to promote their products, and we plan on doing the same thing for their new meal kit service. Some of the different advertising channels that we plan on using to promote the meal kit service are TV commercials and billboards. One of the things that Walmart has been known for in the past is their use of commercials as a form of advertising. Walmart has done a great job of using commercials to highlight their low prices, seasonal deals, and new products that they need to promote. We plan on using this same strategy and creating a commercial to promote the new meal kit service. The commercial will use the same style that Walmart typically uses in their commercials which are usually fun, vibrant, and centered around activities with family and friends, while also highlighting the new service and its low price. We believe that creating a commercial for the meal kit service is a great idea because Walmart will be able to use the

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MILESTONE EIGHT: PROMOTION commercial across multiple different channels such as traditional TV, as well as on different online platforms. When it comes to creating the commercial for Walmart’s meal kit service, we plan on using $100,000 to make the commercial itself. Then we plan on setting aside an additional $200,000 a month for the first year to actually get the commercial ran on TV. TV advertisement prices are highly variable and will change due to different factors such as the airtime of the commercial, geographic location, and program type that the ad is getting played on. Depending on the market, the average cost of running a TV advertisement is around $8,000 and up (Ads by Popcorn Trailer, 2023). It will be up to Walmart’s marketing team to stay within budget and determine where they want the TV commercial to play monthly. We also plan on using billboards to promote the new meal kit service. We plan on creating a billboard that highlights the product by showing a family using the meal kit while cooking a meal from it. The billboard will include a simple but hard-hitting phrase, “Eat better and save more with Walmart’s meal kit.” and it will include the link where consumers can sign up for the service. For the billboards, we plan on setting aside a $100,000 a month budget for the first year. Billboard costs are also highly variable and will change based on the geographic location, the OOH rating, which is a system that ranks outdoor advertising spaces based on how many people will see an ad, and whether the billboard is physical or digital. Billboards can cost anywhere from $750 to $15,000 per month based on these different factors (Kraus, 2022). By setting aside a monthly budget for the billboards, it will allow Walmart to display billboards for the meal kit service across a wide range of locations and reach a variety of different consumers. We also plan to use online marketing strategies to promote the new meal kit service through the use of social media advertising. Having a strong social media presence will be important when promoting this new service because Walmart will be able to reach a large portion

MILESTONE EIGHT: PROMOTION of their target audience this way. With Walmart being the massive company that they are, they already have a very strong social media presence and have amassed a large following on their different platforms. Walmart currently has 32 million followers on Facebook, 3.1 million follows on Instagram, 1.3 million followers on Twitter, 1.5 million followers on TikTok, and 664 thousand subscribers on YouTube, which means that they can reach close to 40 million consumers just through their own following across their different social media platforms. With this massive following, we plan on using the commercial that we will create and posting it on all of their different social media platforms so that the consumers that already follow them will find out about their new meal kit service. The benefit of this is that it won’t cost Walmart any additional money to post the commercial that they have already created for the meal kit. Outside of just posting the commercial on Walmart’s social media platforms, we also plan on running targeted ads across their different platforms as well. Targeted advertising is a form of advertising that allows marketers to present consumers with ads based on their specific shopping behavior, interests, and traits. This is beneficial because instead of just placing a general ad anywhere online, a targeted ad is strategically placed in order to reach a clearly defined audience, which will help ensure that Walmart is able to reach the market that they want to target with this new service. This ultimately leads to higher engagement from consumers because they are receiving ads that are more personalized and they are able to find out about products and services that are more relevant to their actual wants and needs. For these targeted advertisements, we plan on setting aside a $200,000 per month budget for the first 6 months. The cost for targeted advertisements will vary based on the social media platform that is used. Each social media platform charges a daily minimum cost to get an advertisement ran on a day-to-day basis. Facebook and Instagram are owned by the same

MILESTONE EIGHT: PROMOTION company, and they charge $5 per day or $150 a month for ads that run based on clicks, views, and likes. Twitter currently has no daily minimum that they charge for advertisements, but they do charge about $6.50 per 1,000 views that an ad gets, and an additional 40¢ per click that an ad receives. TikTok currently charges $50 per day for an ad to run on their platform, and an additional $1 per click and $10 per 1,000 views that an ad gets. And lastly, YouTube charges $10 per day for an ad to run, and an additional $3 per click and $10 per 1,000 views that an ad gets (Nutshell, 2023). We believe that $200,000 a month will be more than sufficient for Walmart to be able to run advertisements across all of these different platforms. Using these multiple different social media platforms will be beneficial when promoting this new service because Walmart will be able to reach many different segments of customers across different age groups that use each platform. Facebooks demographic mostly consists of 25-34 year olds, Instagram and TikTok’s demographic mostly consists of 18-24 year olds, Twitters demographic mostly consists of 18-29 year olds, and YouTube’s demographic mostly consists of 15-35 year olds (Barnhart, 2023). Those are the perfect age groups to reach with our targeted advertisements because meal kits are most popular amongst Millennials and Gen X ranging from the ages of 18 to 40 years old. Our final promotional strategy will be to use sales promotion, which consists of using short-term incentives to encourage the purchase of a product or service. This is very common in the meal kit industry, as most other companies that provide the service will offer consumers an initial deal to start using the service. Luckily for Walmart, they are known for their low pricing and sales on products, so the use of sales promotions is already in line with what customers are used to receiving from the company. For Walmart’s meal kit, we plan on offering consumers $10 off of their first order when they initially sign up for the meal kit service. This will help lead to

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MILESTONE EIGHT: PROMOTION more consumers signing up for the service because since the meal kit itself is already very affordable, offering an additional $10 off of the first order will make the first purchase very low risk for consumers, and it will give them the ability to try the meal kit out and form an opinion the service. And once consumers are able to try the meal kit service, the goal is for them to have a very positive first experience so that they will see the value in the service and continue using it at full price moving forward. I believe that using all of the different promotional strategies that I’ve discussed throughout this paper will help Walmart’s new meal kit service become very successful. Each strategy will work together to help make sure that Walmart will reach the right audience, convey the correct message, and entice consumers to become users of the service. Also, Walmart has a very large stream of revenue, so it won’t be a struggle at all for them to afford the different strategies that have been laid out. The marketing and promotional plan that I’ve discussed is very similar to the strategies that Walmart currently uses which has proven to be majorly successful for the company, and this will be no different for this new service.

MILESTONE EIGHT: PROMOTION References Pecánek, M. (2022a, April 25). What is IMC? Integrated Marketing Communications Explained . Ahrefs. https://ahrefs.com/blog/imc/ Le, J. (2023, August 14). Walmart Marketing Strategy Uncovered . LitCommerce. https://litcommerce.com/blog/walmart-marketing-strategy/ TV Advertising Cost . Ads by Popcorn Trailer. (2023, August 17). https://adsbypopcorntrailer.com/tv-advertising-cost/#:~:text=TV%20ad%20prices%20for %20daytime,events%20like%20the%20Super%20Bowl . Kraus, E. (2022, September 13). How Much Does a Billboard Cost . Fit Small Business. https://fitsmallbusiness.com/how-much-does-billboard-advertising-cost/#:~:text=Physical %20billboards%20cost%20from%20%24750,to%20over%20%2415%2C000%20per %20month . What’s The Cost of Social Media Advertising? Nutshell. (2023, September 29). https://www.nutshell.com/blog/cost-of-social-advertising Barnhart, B. (2023, October 18). Social Media Demographics to Inform Your Brand’s Strategy in 2023 . Sprout Social. https://sproutsocial.com/insights/new-social-media-demographics/

mkt 500 milestone eight

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