Reference no: EM133539629
Using all your knowledge, make a proposal for a NEW database marketing initiative for ZARA company that could be implemented to increase customer retention and profitability. You will play the role of the Database Marketing Agency called in to make a proposal to help increase customer retention and increase profitability. ; Structure your proposal according to the format below. 1. headline 2. Table of Contents 3. Situation Analysis Describe the situation (provide analysis of the most relevant issues below as they apply to (ZARA) company :
1. Company/product analysis: company sales volume, market share, historical marketing communications activity, brand positioning, current status
2. Market analysis: category size/growth, segment analysis, competitive analysis (limit discussion to the two largest competitors and their strengths/weaknesses)
3. Any other factors that might be relevant to the category Summarize this data in a full SWOT analysis. 4. Target market(s)
4. Describe your target market(s) (value and needs) Explain the rationale for your choice(s).
5. Objectives Describe what the program will accomplish if successful. Set specifics objectives for each target market selected: Desired effect(s) on loyalty indicators: customer spending rates, retention rates, service costs, referrals, etc. as they apply to your situation
6. Strategy What is your overall strategy for each target selected for the program? Describe the marketing program and the communication for the program. What type of program is it? What are the benefits to the customer/member? Is this program unique (does it help to differentiate the company from its direct competitors)? Can customers easily accept the offer, understand, and follow this program? What are the drawbacks for this type of program relative to others? Explain your choices.
7. Tactical Requirements Showing attention to detail, discussing as many tactical elements of the program as possible. Suggested tactical elements include:
- Features, benefits (list side by side)
- Describe the offer and fulfillment.
- Customer communications process and deliverables
- Levels (if there is more than one)
- Redemption process (if any)
- Member administration process (signups, terminations, inquiries, etc.)
- Compliance with privacy laws and ethical business practices
- Any other decisions that support the strategy
- Creative elements
8. Database Requirements Discuss the database requirements:
- Summarize all customer profile data that the company will be required to capture, activate and maintain. List these data requirements field by field using a key (legend) to list any preset values. • Also, briefly describe any existing internal data sources the company could exploit for new customer acquisition.
9. LTV Estimates to make an LTV assessment table that demonstrates the net impact of the program on customer LTV.
- Use your best judgment to estimate retention rates, spending rates, program costs, variable costs, and so forth. Briefly explain your assumptions.
10. Measurement, Testing, and Evaluation
- Measurement process: explain the feedback loop and how/when will we know if the program is successful.
11. If you choose a Loyalty or other long-term Program - Discuss the Capital Requirements and make a budget for the Marketing program, listing all costs associated with activating and operating the program for the foreseeable future.
- Use your best judgment to estimate costs. Keep in mind the program should demonstrate payback (positive ROI) in 3 years or less.
12. Appendix Add any relevant support data, research articles, etc. to the back of the proposal including the resources,