Retail Dick Smith Electronics BSBADV512A Develop an Advertising Strategy and Brief & BSBADV507B Develop a Media Plan

Advertising Brief: Dick Smith Electronics Ltd

Background
Dick Smith commenced operations as Dick Smith Electronics in 1968 in Artarmon, Sydney, specialising in electronics components for home hobbyists. Growth came during the 70s from the profitability of their electronics components & kits, amateur radio & CB radio; and during the 80s from personal computers and telephone deregulation. During this phase the stores popularity came from its responsiveness to what was new & novel, and making it available to consumers as quickly as possible, and from taking risks in retailing new products. Woolworths Limited took full ownership of the chain 28 years ago, and has progressively shifted the stores and their stocked lines away from the niche electronics home-hobbyist style of retailer to a more mainstream electrical retailer with a broader range of product lines, with the electronics-geek image of their typical customer of the 80s now projected as the image of their typical retail store assistant, making the store a comfortable environment for people who may be technologically-challenged to go for genuine and reliable advice about increasingly complex home devices, and to make their purchase, knowing they can pop back and discuss any set-up issues after the sale, call the store/service line, or engage the value-added home set-up and installation service for more complicated products (the Mobile Techxperts service is tasked with simplifying technology in everyday life and, since launching in July 2009 has materially impacted sales growth). Dick Smith invests continuously in the training of staff to achieve the high level of knowledge consumers expect instore. Dick Smith also retails a range of its own store-branded DSE products (from memory cards to TV and DVD players), often rebranded from manufacturers whose own product is alongside it on the shelf. From its early beginnings Dick Smith has relied heavily on the usefulness of mailorder catalogues to increase awareness, boost sales and foster engagement with consumers. Dick Smith continues to engage with their consumer in their inhome environment through the content and services available through their website, and from the range of products able to be purchased online. In late 2009 the Dick Smith website was relaunched, with online sales in the 12 months since double that of the previous comparative period. As a subsidiary of Woolworths Limited, the loyalty card Everyday Rewards is operational in Dick Smith stores. The program facilitates accumulation of points relative to in-store purchase, for transfer and redemption as Qantas Frequent Flyer Points (where consumers independently choose to become a member of the Qantas Frequent Flyer program). The Everyday Rewards program has 5.1 million registered members (in addition to Woolworths and Dick Smith, the card is also used at Big W and BWS). The loyalty card proposition has been beneficial in developing a better understanding of our consumers, and it is anticipated that more efficient methods of data interpreting and matching will increase the Groups future ability to target our customers with compelling offers, communicating more effectively with consumers, and developing predictive expertise (and associated long-range comparative merchandise forecasting

JADDAN BRUHN

Page 1

Retail Dick Smith Electronics BSBADV512A Develop an Advertising Strategy and Brief & BSBADV507B Develop a Media Plan

capabilities) based on consumers past shopping activity. The loyalty card program will also be launched as a branded affinity credit card financial product, increasing the Groups volume of consumer and retail transaction data. This direction needs to be support by the ongoing & consistent encouragement of customer membership of the scheme, and a request to scan the card at every transaction, even where the purchase value is below the minimum required to earn points. In recent years Woolworths has experimented with Dick Smith store layouts, instore customer service, branding and product offering; the role of its other wholly owned chain electronics store Tandy; and the role BIG W plays in complimenting vs competing with aspects of Dick Smith. Some of these issues have disappointed long-term loyal customers (the hobbyists). During the last financial year 24 new Dick Smith stores were opened, 19 Dick Smith and 25 Tandy stores were closed, and 40 Tandy stores were rebranded as Dick Smith. There are currently 394 Dick Smith stores (the remaining 22 Tandy stores will either not have their leases renewed, or will gradually be rebranded as Dick Smith by 2012). The in-store changes and relocations, and associated staffing changes, has caused a considerable amount of disruption to customers, generated negative consumer sentiment, and disaffected long-term loyal customers unhappy with the changed focus of the brand, shifts to stocking lower margin products and the elimination of discontinued product lines deemed inconsistent with the stores branding.

Marketing Objectives

Increase sales by 10% during campaign period. Increase average per customer spend by 7% during campaign period.

Advertising Objectives

Increase perception in target audience that Dick Smith is the electrical retailer they recommend to family and friends by 35%. Increase perception in target audience that Dick Smith staff are friendly and authentic by 30%.

Target Audience

Males 25-45, employed, married with children, dwelling in greater suburban Sydney.

Brand History & Positioning

Positioned as the store you go to, to find out more about the high-value electrical products you want but may not fully understand, where you can make your purchase safe in the knowledge that the person giving you advice knows what they are talking about. Dick Smith: Talk to the Techxperts.

Competitors
Harvey Norman 160 stores Jaycar Electronics 58 stores Officeworks 128 stores Australia Post 4,462 outlets (though not all in the POST SHOP format) JB Hi-Fi 131 stores

JADDAN BRUHN

Page 2

Retail Dick Smith Electronics BSBADV512A Develop an Advertising Strategy and Brief & BSBADV507B Develop a Media Plan

Bing Lee (incl Sony Centre concept stores) 43 (NSW and ACT only)

Competitors Advertising
TVC, print (newspaper & magazine), outdoor, online banner ads & store website, social media, radio, electronic direct mail, direct mail, in-store.

Current Media Strategy

TVC, print, online, in-store, direct mail, social media.

Key Message / USP

Reliable advice at no extra cost.

Tone / Manner
Friendly, fun, not overly technical or patronising, inviting, reassuring.

Mandatories
Company logo and branding (Dick Smith: Talk to the Techxperts), everyday rewards loyalty card image and website details, web address and social media handle, store locator detail.

Budget
$6,000,000

Timing
Mid September to Mid December 2011

JADDAN BRUHN

Page 3

Retail Dick Smith Electronics BSBADV512A Develop an Advertising Strategy and Brief & BSBADV507B Develop a Media Plan

SWOT ANALYSIS Dick Smith Electronics Ltd

STRENGTHS
Brand perceived to be authentic & honest Program to continuously train staff Strong supplier relationships Effective online strategy Successfully able to leverage reputation for expert advice into value-added service (Mobile Techxperts inhome service) Retail stores well positioned

WEAKNESSES
Disruptive store location changes irritate customers Current & future direction as electrical retailer disaffects loyal original customers who want electronics components House brand retail strategy very poorly executed, with uncertain future Consumer confusion over competition with, and then absorption of Tandy Fractured branding No in-store affiliated product financing options

JADDAN BRUHN

Page 4

Retail Dick Smith Electronics BSBADV512A Develop an Advertising Strategy and Brief & BSBADV507B Develop a Media Plan

OPPORTUNITIES
Growing consumer interest in complex electrical devices Current and future electrical devices provide potential for value-added products / services (i.e. rebranding & reselling SIM cards, internet services) Growth in development of technologically advanced household electrical devices continually grows supply of new potential product lines Gradual reduction in cost price of technologically advanced devices continues to grow their market appeal

THREATS
Subsidiary of larger retail group may be rebranded, absorbed, sold-off, closed down as and where parent deems it appropriate Competitors have broader diversity of product categories and are less sensitive to fluctuations or changes affecting electrical devices Consumer confidence and economic fluctuations directly impact retail activity All stock is imported, profit margins sensitive to fluctuations in currency exchange rates.

JADDAN BRUHN

Page 5

Retail Dick Smith Electronics BSBADV512A Develop an Advertising Strategy and Brief & BSBADV507B Develop a Media Plan

The Media Brief

Dick Smith Electronics Ltd

Media Objectives The Media Plan is designed to reach the majority of the target audience with a frequency of at least four times during the campaign period. Utilising the selected media the campaign flight pattern is continuous with bursts of activity at key points during the campaign; familiarising the target with the campaign message and inspiring a call to action as key events during the campaign promotion approach. Varying the media utilised and shaping the communication around the targets media and lifestyle habits, acting on the targets creative instincts and interest in finding out more, reducing wastage and acting to ensure the target is exposed to the campaign message many times over the campaign period is best achieved through the media selected, avoiding heavily pushing the campaign message in traditional media only, which may negatively impact the targets perception of the advertisements focus. Geographic areas to be covered The draw area is metropolitan Sydney. Target audience lives and conducts their life in the greater suburban area of Sydney, with a specific focus on the areas of more notable population density, and areas where there is a greater propensity for households with two or more children, i.e. Western Sydney. When do we talk to them The store retails items that cover purchase cycles of differing lengths. Campaign period coincides with tax-return time, during which households are more likely than at any other time of the year to receive cash lump-sums. To establish a connection with the store & encourage an in-store visit, the target may be effectively reached through morning radio, evening television, and through print advertisements (newspapers). Online banner ads on news/entertainment websites can effective reach the target when they have the time and capacity to browse the online store. Creative requirements Bright and loud to encourage action and generate desire for the products Dick Smith retails, including functioning sequences of electrical appliances, home theatre devices and computer technology.

JADDAN BRUHN

Page 6

Retail Dick Smith Electronics BSBADV512A Develop an Advertising Strategy and Brief & BSBADV507B Develop a Media Plan

Media Plan Budget September to December 2011 Dick Smith Electronics SEPT 4-10 Radio NOVA FM (mon-fri breakfast x 6 per day) SEPT 11-17 SEPT 18-24 SEPT 25-1 OCT 2-8 OCT 9-15 OCT 16-22 OCT 23-29 NOV 30-5 NOV 6-12 NOV 13-19 NOV 20-26 NOV 27-3 DEC 4-10 DEC 11-17 DEC 18-24 DEC 25-31 TOTAL

9,000. 00

9,000. 00

9,000. 00

9,000. 00

9,000. 00

9,000. 00

9,000. 00

9,000. 00

9,000. 00

9,000. 00

9,000. 00

9,000. 00

9,000. 00

9,000. 00

9,000. 00

9,000. 00

9,000. 00

$153,000

Newspaper MX (mon-fri) 1 x Full Page 376mmx262mm per day Online dailytelegraph.co m.au Leaderboard (728x90pixels) weekly

49,282

49,282

49,282

49,282

49,282

49,282

49,282

49,282

49,282

49,282

49,282

49,282

49,282

49,282

49,282

49,282

49,282

$837,797

11,250

11,250

11,250

11,250

11,250

11,250

11,250

11,250

11,250

11,250

11,250

11,250

11,250

11,250

11,250

11,250

11,250

$191,250

Sub Total cost per tarp Television Sydney Channel 7 Channel 9 Channel 10 100.00 75.00 100.00 100.00 75.00 100.00 100.00 75.00 100.00 100.00 75.00 100.00 100.00 75.00 100.00 100.00 75.00 100.00 100.00 75.00 100.00 100.00 75.00 100.00 100.00 75.00 100.00 100.00 75.00 100.00 100.00 75.00 100.00 100.00 75.00 100.00 2,500.00 2,000.00 2,500.00

$1,182,047

3,000,000.0 0 1,800,000.0 0 3,000,000.0 0 $4,800,000 .00 $5,982,047 .40

Sub Total

FINAL TOTAL

JADDAN BRUHN

Page 7

Retail Dick Smith Electronics BSBADV512A Develop an Advertising Strategy and Brief & BSBADV507B Develop a Media Plan

The Creative Brief

Client: Dick Smith Electronics Brand: Dick Smith: Talk to the Techxperts Date: 29/09/2010 Account Director: Jaddan Bruhn Creative Team: Jaddan Bruhn
Role for Advertising Increase foot-traffic to Dick Smith retail stores, and visits to online web-store to increase sales by 10% & average per customer spend by 7% during campaign period. Increase perception in target audience that Dick Smith is the electrical retailer they recommend to family and friends by 35%. Increase perception in target audience that Dick Smith staff members are friendly and authentic by 30%. Target Audience Demographics Males 25-45, employed, married with children, dwelling in greater suburban Sydney. Psychographics Conventional Family Life, balancing budget between mortgage payments (or strict saving for home deposit) and competing needs of family, but eager to keep up with contemporary gadgetry and the latest home technology within what he could afford. While his father mayve spent his spare time between the hardware store and the shed, our target likes to keep up with the latest electronic devices and will spend money on items for the home that will allow him to show off to friends & family, and, even if purchased on credit, act as a visible symbol of status. He may have had to give up aspects of his old life to settle down and have kids, but everyone in the family can enjoy a widescreen TV, a Bluray and an Xbox. Behaviour and usage Males in this demographic are notorious for not asking for directions, not reading instructions and for not speaking-up for fear of appearing incapable (emasculated). Unless the person they are speaking to is an expert. The target audience is comfortable going to Dick Smith to ask a few questions & make a purchase as it is a safe environment to clarify a technical quandary without feeling patronised or inadequate, and, based on the quality of the in-store experience will likely return to make repeat purchases or feel confident to translate future transaction events to the on-line store, confident that there is the scope to have an issue clarified should there be a technical glitch. Key consumer insight When I want to purchase a new component for my home theatre set-up I know I can trust the people at Dick Smith to give me the advice I need without trying to push me into buying a whole new system. Key Thought or USP Reliable advice at no extra cost. Support Australias largest chain of dedicated electrical retail stores, with in-home installation and advice available, free home delivery for online purchases, customer loyalty program through Everyday Rewards and a continuously trained sales-force recognised for their expertise and approachability. Tone and Manner - Informative, fun and friendly. Desired Mediums - TVC, Print (newspaper), radio, online. Budget - $6,000,000

JADDAN BRUHN

Page 8

Retail Dick Smith Electronics BSBADV512A Develop an Advertising Strategy and Brief & BSBADV507B Develop a Media Plan

Timing - Mid September to Mid December 2011 Mandatories Company logo and branding (Dick Smith: Talk to the Techxperts), everyday rewards loyalty card image and website details, web address and social media handle, store locator detail.

JADDAN BRUHN

Page 9