digital marketing report pdf i7901137

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EXECUTIVESUMMARY:

Sandbanks Hotel is a 4-star small family hotel operated under the brand name of FJB Hotels, which

is situated on the Sandbanks peninsula in Poole, Dorset on the South Coast of England. Their large

target audience consists predominately of families and offers various unique selling points (USP),

such as ‘kids go free’ deals, combined with having exceptional family sea view rooms with direct

access to the blue flag beach, providing a choice of water activities. A customer persona is created to

identify a value proposition in order to develop a strategic digital marketing plan by using the

SOSTAC framework as a guideline throughout the report to develop recommendations based on

objectives. Objectives include, reducing dependency of online travel agents by converting to affiliate

marketing networks to increase direct bookings. Expanding social media presence by interacting

with potential customers through user-generated content. Furthermore, retaining customer loyalty by

optimising repeat sales through increasing outbound e-mail marketing providing exclusive offers.

The recommendations could potentially be achieved by executing promotional campaigns to retain

customer advocacy.

Word count: 2,746

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TABLE OF CONTENTS

ExecutiveSummary: ........................................................................................................................ 2

1.0Introduction: .............................................................................................................................. 4

2.0SituationAnalysis: ..................................................................................................................... 5

3.0CustomerPersona: ..................................................................................................................... 6

4.0CustomerJourney: ..................................................................................................................... 8

5.0ValueProposition: ................................................................................................................... 11

6.0Objectives: ............................................................................................................................... 13

7.0CurrentMarketingStrategy: .................................................................................................... 15

8.0TacticsandRecommendations: ............................................................................................... 17

9.0Actions: .................................................................................................................................... 22

10.0Conclusion: ............................................................................................................................ 23

11.0Refernces: .............................................................................................................................. 24

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1.0INTRODUCTION:

According to Mahajan and Wind (2002, p.3), the digital uprising has “shaken marketing to its core”.

Digital marketing has revolutionized the way consumers engage with products by putting them in

charge, and therefore creating an important modification in the dynamics of marketing.

The Sandbanks Hotel has recently adjusted their marketing plan to integrate more with consumers

through digital platforms in order to gain further customer insight. By focusing on the upcoming

digital trend of mobile search and social, Sandbanks Hotel invested £60,000 to their website in 2014

with web developers, Shotgun Front. However, the website consists of tools such as videos of the

hotels facilities and features, which are unresponsive on mobile devices. Brands should optimize

their website for Search Engine Optimization (SEO) to ensure all devices are responsive on all

search platforms to increase recall and engagement (Tilton 2012). Additionally, navigation on the

website can be confusing, particularly for the older generation who are a key target market that

favour a more simplistic design and approach.

The structure of the report will initially outline the customer’s demographic persona in order to

further understand consumers journey and behaviour. This will allow for a clear marketing

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integration plan to impose a value proposition by convincing potential customers to successfully

rectify Sandbanks Hotel current situation by driving website traffic, increase direct bookings and

revenue. Evidently, this will be achieved by using PR Smith’s SOSTAC Model as a guideline to

implement a strategic plan based on the objectives. The RACE framework will be applied to ensure a

tactical approach is followed by providing recommendations through key performance indicators

(KPI’s).

2.0SITUATIONANALYSIS:

In order to critically analyse and plan the Sandbanks Hotel’s digital marketing strategy, PR Smith’s

SOSTAC Model (Figure 1 below) will act as a foundation to the structure of this report. Specific key

aspects of the SOSTAC Model will be analysed throughout to implement certain marketing planning

frameworks and to make feasible recommendations going forward.

Figure1:PRSmith’sSOSTACModel

The model is becoming increasingly common amongst industry professionals to produce marketing,

e-marketing and advertising plans (Chaffey and Smith 2013). SOSTAC stands for: Situation

analysis, Objectives and Strategy, Tactics, Action and Control. To gain a further understanding of

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customer insights, the situation analysis is a key component in identifying personas. The broad

segmentation of situation analysis is, ‘where are we now’ in terms of the number of customers who

are currently buying or influenced by the online content offered (Chaffey and Smith 2013). These

include areas such as, how Sandbanks Hotel are currently performing, competitors, utilising the

appropriate communication channels and how effective is the current marketing mix (Swan 2016).

However, to optimize future online marketing growth, a customer persona needs to be created to

enhance the existing customer base and understand their motivations (Swan 2016).

3.0CUSTOMERPERSONA:

According to Target Internet (2016) a marketing persona is a fictional character that has been created

to characterise specific key traits of a certain group associated with your target audience. According

to Vaughan (2015), understanding your buyer’s personas is crucial to driving content creation and

sales to maximise customer acquisition and retention. As seen in figure 2 below, Ben Simmers is a

38-year-old male who is married with two children, Lucy 8 and George 11.

Ben is significantly tech savvy due to his young age and became heavily influenced by the rise of

social media once he graduated from Warwick University. The Simmers are a very adventurous

family who enjoy trying new activities and exploring new destinations. Ben thoroughly enjoys

capturing quality moments with his family on his Canon camera and sharing the experiences to his

social media followers.

His key attributes are implementing social media for his Letting Agency to advertise and promote a

specific target market of students. Social media engagement has allowed for significant reach due to

the increasing popularity of mobile search, by targeting key demographic areas within the suburbs of

London. His wife, Mary describes her husband as “utilising their broadband to the maximum by

browsing the web on his mobile an average of 2 hours a night”.

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Figure 2: Customer Insight Persona

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4.0CUSTOMERJOURNEY:

Understanding consumer behaviour has never been more important due to constantly changing as a

result of advances in technology (Calcott and Weller 2012). As consumer behaviour changes so must

the ways in which companies engage with their audience by interacting every step of the customers’

journey (Lecinski 2014). As a result, Zero Moment of Truth (ZMOT) was introduced as a framework

for companies to revolutionize the way “consumers search for information online and make

decisions regarding brands” (Lecinski 2014, p.28). Creating a stimulus is a key component to

interacting with customers and generating interest to successfully incorporate the four moments of

truth, which is key to understanding the customer journey (Solis 2013). A customer journey is the

full lifecycle view of a customer’s engagement and interaction with a particular brand, which allows

for a feasible prediction of establishing certain behavioural patterns towards purchasing (Zener

2013).

“42% of businesses have no digital customer journey”

Brian Solis (2013)

“Touch points are only updated with new social and mobile technologies”

The stimulus occurs the moment a customer is first exposed to a brand through advertising such as

radio, video or podcasts (Sharma 2013). Ben is driving to work listening to his local radio station

when he hears Sandbanks Hotel in Poole are offering a ‘kids go free’ campaign throughout

September. Due to work commitments and saving for a bigger family house, Ben advised his

children that a summer holiday was unlikely this year, however his awareness to Sandbanks Hotel

promotion was too good to turn down and acted as a stimulus. Figure 3 below identifies the ZMOT

model, which is key to the customer journey as it shapes the consumers purchase decision.

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Figure3:PRSmith’sZeroMomentofTruthModel

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According to Solis (2013), the connected consumers of today value information from friends,

reviews and shared experiences the most, compared to what companies publish online. Therefore,

influence is a key component to the experience a customer encounters in the Zero Moment of Truth

(ZMOT), as this defines the expression people share of your company. Sandbanks Hotel has a good

online presence of digital channels that allows the customer to engage and share their experience.

More importantly, understanding the new customer journey throughout the ultimate moment of truth

(UMOT) is important to discovering touch points and sources that influence truth to what people

share online through their experience (Solis 2013). Sandbanks Hotel has numerous bad reviews on

TripAdvisor in conjunction with their afternoon tea service and quality. However, responding to the

reviews through action will ultimately create positive word of mouth by generating awareness,

advocacy and influence for the next persons ZMOT (Chaffey and Smith 2013). A customer’s journey

showing how people leap from one channel to another during the buying process is illustrated in

figure 4 below.

Figure 4: Customer Journey Touch Points

Source:B2BMarketingExperiences-DeBaere(2015)

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5.0VALUEPROPOSITION:

Online value proposition concerns emphasising core brand values and effectively summarise what a

customer can get from you online, which they can’t find anywhere else (Chaffey and Smith 2013).

According to Chaffey and Smith (2013, p.300) there are 3 core online proposition components that

an organisations website should ensure they are offering that; “is different from your competitors, is

not available in the real world and makes a difference to your customers lives.” To help businesses

create a suitable strategy to develop products or services that customers want to buy, Peter Thomson

(2013) created the ‘Value Proposition Design Canvas’ as seen below in figure 5, with the purpose of

examining the human experience of their customers. The design specifically for Sandbanks Hotel

can be seen in figure 6.

The success of a service industry is heavily dependent on its positioning and differentiation strategy

that determines a well-crafted value proposition, which gives the company a competitive advantage

(Murray 2013). Marketers should compare their value proposition in conjunction with competitors to

ensure how they can optimise and develop a unique online experience (Chaffey and Smith 2013).

Figure 5: Peter Thomson Value Proposition Canvas

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Sandbanks Hotel is in the service industry offering a variety of products that forms a value

proposition for specific customer segments (Thomson 2013). The hotel offers unique selling points

(USP) in terms of being located on the sea front offering a variety of water activities, which

differentiates itself to other competitors. Additionally, the hotel offers easy access to a variety of

kids’ activities and entertainment such as; kids club and water sports summer camp, therefore

offering touch points to customers needs and wants. A core aspect of the value proposition is to

address the fundamental needs of the customers by fulfilling their happiness. A solution to rectify

this customer’s pain is to provide a set of objectives surrounding the unique products or services

offered, such as watersports, parking facilities and family rooms whilst implementing strategy by

offering great value for money. As a result, this will improve gain by developing brand loyalty and

engagement.

Figure 6: Adapted Value Proposition Canvas

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6.0OBJECTIVES:

Objectives are a key component to the long-term strategy of a business to develop clear benefits that

will gain a competitive advantage (Smith and Chaffey 2013). To achieve this, appropriate resources

need to be allocated to achieve the objectives of where Sandbanks Hotel is going before deciding on

strategy of how to get there. A useful framework to achieve the objectives is utilising the 5’s (Sell,

Serve, Speak, Save and Sizzle) as seen in figure 7. According to Smith and Chaffey (2013, p.24)

there are five broad benefits to optimise e-marketing as seen in table 1 below.

Table 1: 5 key objectives for e-marketing

1. Grow sales through wider distribution, promotion and sales.

2. Add value by giving customers extra benefits online.

3. Get closer to customers by tracking them online, asking questions and creating

dialogue.

4. Save costs of service, promotions, sales transactions, print and post to increase profits

on transactions.

5. Extend the brand online. Reinforce brand values in a totally new medium.

The main objectives for improving the business of Sandbanks Hotel is by creating a content hub to

extend presence online through sizzle by refining branding metrics such as, reach and engagement

(Marketing Insights 2016). The dependency of independent hoteliers on online travel agencies

(OTA) is rapidly increasing with 74% of bookings in Europe believed to come from OTA’s in 2015,

see figure 6 (Kearney 2016).

“87% of hotels named Booking.com as their top producing OTA” (Kearney 2016)

One of the main objectives is to substantially decrease the heavy presence of dependency Sandbanks

Hotel currently has on OTA’s, which falls under sell of the 5’s. The hotel presently deals with over

ten OTA’s including Booking.com and Expedia (see figure 7 below), with the key objective set to

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reduce this by 20% in the next 12 months, thus optimising direct online bookings and evidently

increasing customer acquisition. Currently, Sandbanks Hotel guarantees their customers the best rate

if booked directly on their website. However, to increase reach and direct bookings to landing pages,

a call to action instruction, such as ‘book today for guaranteed best rates’ can be implemented to

owned media channels such as Facebook.

Search engine marketing (SEM) encourages click through rates to the website when user types a

specific keyword phrase targeting audiences at moments of intent to increase Sandbanks Hotel’s

average position. Additionally, Sandbanks Hotel currently lacks paid media tools such as Google

AdWords to measure SEO, which is important to boost

average position amongst competitors to achieve high

levels of traffic and improve conversion results (Kaushik

2010). Integrating retargeting, keywords and PPC will

drive more direct searchers to owned media sites. ‘Speak’

is key to getting closer to customers by improving

response rates by 50% through optimising social media

marketing. As a result, this will increase Sandbanks Hotel

awareness by sizzling customers experience through content media by showcasing videos, therefore

generating social engagement such as shares and comments. Content marketing allows businesses to

potentially create a better customer experience and add significant value (Angulo 2016). Video will

account for 75% of all Internet traffic in 2017 according to Angulo (2016).

Figure 7: Objectives for the 5s e-marketing

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7.0CURRENTMARKETINGSTRATEGY:

Media is a key component to contribute a fundamental digital marketing strategy through earned,

owned and paid media (see figure 8). In order to rectify the current situation of Sandbanks Hotel and

improve service, the existing marketing strategy needs to be assessed. The hotel integrates well with

content participation through third party websites, such as TripAdvisor by responding to feedback

and therefore maximising favourable mentions. However, backlink distribution can optimise website

traffic when responding to feedback, which can also be integrated amongst other owned media, such

as Facebook and Twitter.

The website contains content media on the homepage of aerial footage of Sandbanks to engage site

visitors. However, videos, interactive and user generated content can be improved on owned digital

properties to increase awareness to drive visitors to the website, which can influence and convert

potential buyers. This can be paramount to gaining credibility online by encouraging click through

rates. Evidently, the content media can be uploaded to owned social media accounts, which can

generate mentions, shares, likes and online word of mouth to promote Sandbanks Hotel by targeting

specific segments. Current marketing also consists of dependency of online travel agents (OTA) such

as Booking.com, Trivago and Expedia, which increases substantial reach on high-ranking websites.

Alternatively, by providing a proposition value of combining products such as family room with

watersports for a special price can add value through service.

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Figure 8: Showing Sandbanks Hotel current paid, owned and earned media content

with recommendations for future strategy

Earned

OwnedPaid

Facebook

Twitter

Linkedin

YouTube

Google Plus

Website

Facebook imagesand video shares

TripAdvisorReviews

Facebook Reviews

Geotagging

Google AdWords

Booking.com

Expedia

Trivago

Kayak

Secret Escapes

Sanbanks Hotel have a high presence on owned media such as

Facebook, however limited engagement with customers is evident.

Therefore implementing a strategy to increase response rates on

reviews by commenting and sharing posts will substantially increase

awareness and engagement. Additionally, acting to reviews by

responding on third party website such as TripAdvisor (earned media)

with backlinks to peoples issues or problems will lead customers

directly to the website, therefore reducing bounce rates, converting

potential customers to buyers and building customer reputation.

Increasing conversion rates through marketing investment (Paid

media) using influencers with high number of social media followers to

blog about Sandbanks Hotel to raise awareness and promote offers.

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8.0TACTICSANDRECOMMENDATIONS:

Essentially, tactics are the core details of strategy by requiring an understanding of how each tactical

e-tools work or cannot work, such as opt-in email, social media marketing or display ads (Chaffey

and Smith 2013). In order to successfully implement Sandbanks Hotel’s objectives through content

marketing, a tactical approach is needed to ensure each stage of the RACE framework is analysed by

giving recommendations of how to achieve the strategic goals, as seen in figure 9 below (Chaffey

and Smith 2013). Key performance indicators (KPI’s) are implemented to measure and control

performance as demonstrated in the last section of the SOSTAC planning framework.

Figure 9: PRACE Framework combining objectives to E- marketing tactics

Source: Smart Insights by Dave Chaffey (2015)

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Objectives Recommendations to achieve strategic

goal

KPI

Boost search

engine

optimisation

(SEO)

Increase reach

and awareness

by building a

relationship

with 1-2

influencers

within 12

According to websitegrader.com (2016),

Sandbanks Hotel is currently ranked 30 out

of 30 for SEO suggesting the website to be

easily reached via Google search engine,

therefore creating substantial reach.

Additionally, utilising keywords such as

‘best hotels in Poole’ are heavily occupied

by OTA’s who significant levels of reach in

Google search engine, which may suggest

their dependency of OTA’s. However, a

more holistic approach is recommended to

increase reach and direct bookings to

landing pages, a call to action instruction,

such as ‘book today for guaranteed best

rates’ can be implemented to owned media

channels such as Facebook through SEO to

boost organic visibility.

Sandbanks Hotel has a large social media

following with nearly 5,000 Facebook likes,

40,000 check-ins and over 3,000 Twitter

followers. However, they do not utilise their

large following by externally targeting

influencers within the travel industry.

Targeting influencers such as bloggers can

Create a Google

AdWords account to

effectively measure

‘Click Through Rates’

to convert traffic to

Sandbanks Hotel

landing page. Our

Google AdWords

campaign budget was

only $200; however

increasing the budget

could considerably

increase a return on

investment (ROI).

Monitor social media

performance by the

number of followers

converted and the

engagement rate.

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months

generate substantial reach through their

large following, which can influence trust,

exposure and popularity for the hotel

through promotional campaign. Shares,

comments and e-word of mouth can convert

potential new customers to buying the

service and saving costs on traditional

media. Marketers look at influencers as a top

of the funnel tactic to generate the most

awareness through familiar and trusted

online channels such as Facebook

(Doughetry 2015).

Objectives Recommendations to achieve strategic goal KPI

Create and

deliver at least

one online

content media

per month to

enhance brand

image and

reduce the

bounce rate by

25%

Although the home page engages with

customer with video content consisting of

drone footage of Sandbanks, minimal

engagement is created via owned social media

channels. Interactive tools are recommended

to create video content to interact with new

customers, which leads traffic directly to the

website and reduces bounce rate. Uploading

videos of user-generated content of

families/couples using gifts offered by the

hotel such as watersports can increase social

media engagement and fuel lead generation

by reducing bounce rate due to exploring

Sandbanks Hotel website further.

Use social media

management system such

as Hootsuite to measure

conversion rates before

and after implementing

content media across

owned channels.

Similarly, measuring

bounce rates using

Google Analytics to

analyse percentage of

visitors who explore the

website past the landing

page

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Reduce

dependency of

OTA’s by 20%

in the next 12

months

Sandbanks Hotel is heavily dependent on

OTA’s to fill empty rooms but this also

increases reach. Consequently, Sandbanks

Hotel pays 15-20% commission to online

travel agents, resulting in a reduction of

revenue. To successfully convert the number

of customers booking directly to the website,

a clear and simple engagement funnel is

required to increase customer acquisition. To

increase conversion rate and reduce third

party bookings, developing affiliate marketing

partners such as Affiliate Window, can

subsequently reduce high commission sites

such as Booking.com. Engaging with affiliate

marketing networks such as Affiliate

Window, only charge commission of 6-8%

opposed to 20-25% by OTA’s once a

customer has purchased a hotel room (Weston

2013). This e-retailer marketing strategy can

significantly reduce costs (save) by less

commission and increase ‘sales’ through

reach. According to Affiliate Window (2016),

UK consumers spent over £150m via affiliate

websites in 2013, suggesting a growing digital

trend.

Reduce dependency of

online travel agents by

20%, which can be

measured using the

conversion rate metric

on Google Analytics.

Additionally, affiliate

networks provide

regular advertising

methods such as PPC

and SEO.

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Increase

customer

engagement

and response

rates online by

50% through

social media

(Owned media)

Increase

outbound e-

mail marketing

by 50% in next

12 months

through

exclusive offers

to increase

repeat

customers

Reviews equal ‘trust and social proof’ (Chaffey

2013, p.128). Increasing reviews from 0-50

significantly increases conversions by 4%.

Sandbanks Hotel is good at engaging with

customers on TripAdvisor by responding to nearly

all reviews. However, Facebook reviews and

Twitter reviews are becoming increasingly

popular, which the hotel fails to engage with.

Commenting on posts will lead to growth in

conversions on their owned media, contribute to

SEO by optimising content and encourages

prospective buyers to buy rooms.

Developing long-term customer loyalty is seen as

one of the most challenging components for

marketers (Chaffey 2013). E-mail marketing is

applied by Sandbanks Hotel using ‘promotion’ of

the marketing mix to promote offers and serve

previous customers on a monthly basis with

dialogue updates through e-newsletters. However,

developing a lifecycle marketing automation by

integrating a promotional email campaign will

significantly add customer advocacy and benefit

Sandbanks Hotel due to having a large distribution

net. To optimise repeat sales, the client can

implement special offers to existing customers via

Measure performance

drivers such as active

social followers and

active customers via

website and email.

Measure customer

advocacy by customer

satisfaction surveys

distributed by email.

Measuring the number

of repeat bookings per

customer is another

key performance

indicator (KPI).

Additionally,

measuring the exact

return on investment

using Google

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9.0ACTIONS:

According to Chaffey and Smith (2013), action includes executing the tactical details of strategy by

putting the marketing plan to work. In order to action the plan, three key budget resources are

needed: Men (manpower to do the job), money (financial resources) and resources (time to meet

deadline) (Krishnan 2015). Sandbanks Hotel’s marketing department consists of three members of

staff who must action the objectives and tactics mentioned within the marketing plan by distributing

the workload. Social media channels must be constantly monitored and managed by uploading

content media and creating dialogue by responding to queries to generate USP by offering

competitive advantage as ‘95% of Facebook questions remain unanswered’ (Meyer 2014). Boosting

SEO requires constant attention to measure and update specific keywords in order to improve the

performance of organic searches to increase average position. Engaging with influencers and

communicating with affiliate networks to reduce OTA’s is another key component that requires

resources. Frequent meetings and project management schedules need careful preparation in order to

implement the series of action for each tactic. Furthermore, a realistic budget must be integrated to

efficiently measure ROI and amend costs depending if sales are lower or higher than expected.

online distribution channel, consisting of email

that must be booked directly on the website to

redeem offer, therefore potentially converting

existing customers to purchase again, creating a

sizzle effect. A price marketing mix can be

applied through exclusive offers that include

booking a family room, which includes half price

offer on watersports or kids club to maintain

satisfaction and customer loyalty.

Analytics ‘Beyond the

click tracking’, which

measures customer

behaviour of people

who clicked directly

to the website through

the email (Chaffey

2016).

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10.0CONCLUSION:

Creating a customer persona allowed for a detailed analysis of Sandbanks Hotel’s current situation in

order to identify potential customers online behaviour and motivations. A key aspect of utilising the

customer journey effectively is for Sandbanks Hotel to optimise the ultimate moment of truth, which

lead to developing a ‘speak’ objective of increasing customer response rate and engagement by 50%

through owned social media channels, will raise conversion rates allowing to influence another

persons ZMOT. With being a service industry, the hotel is heavily dependent on positioning and

differentiation. Evidently, a focus on USP was recommended to enhance their value proposition with

the aim of increasing outbound e-mail marketing by 50% in the next 12 months. Achieved by

combining products to optimise repeat sales by implementing special offers exclusively to existing

customers via e-mail marketing to save costs, therefore increasing satisfaction and loyalty. To

reduce Sandbanks Hotel’s heavy dependency of OTA’s by 20% in the next 12 months, it was

recommended to develop affiliate marketing partners to reduce commission rates, increase reach,

boost average position and ultimately drive traffic directly to the website and potentially increase

direct bookings.

According to Angulo (2016) digital video and social media will become the biggest game changers

within content marketing by triggering brand advocates. Furthermore, video is set to account for

74% of Internet traffic by 2017. Therefore, it was recommended for Sandbanks Hotel to create and

distribute at least one video content per month to reduce the bounce rate by 25%. Uploading user-

generated content will raise social media engagement through sharing and commenting on content

and provide an incentive for lead generation by exploring the website further past the landing page.

According to Smart Insights (2016), the most common starting points for mobile research are

through search (48%) with travel/tourism accounting for 28%. Providing web pages that are

responsive to mobile use is highly recommended, with mobile users estimated to spend 94% of their

time on apps in 2017. A feasible recommendation would be for Sandbanks Hotel to create an app to

ultimately increase direct bookings and optimise revenue.

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