Digital Marketing Strategy for Sprout & Co Student Name/N umber: Elina Kochenko/10532850, Marilia Martins/10532756, Pia Enzensberger /1052369 2 Course Title: MSc in Digital Marketing Lecturer Name: David Kenny Module /Subject Title: S trategic Digital Marketing [ B9DM102 ] Assignment Title: Develop a Digital Marketing Strategy for an Organisation Word Count: 3997 I TABLE OF CONTENT 1 Executive summary ................................ ................................ ................................ ......................... 1 2 Business Overview ................................ ................................ ................................ .......................... 1 2.1 Value Proposition Sprout & Co ................................ ................................ ................................ .. 1 2.2 Marketing Overview ................................ ................................ ................................ ................... 1 3 Situation Analysis ................................ ................................ ................................ ............................ 2 3.1 Business Model Canvas ................................ ................................ ................................ ............ 2 3.2 Ansoff Matrix ................................ ................................ ................................ ............................. 3 3.3 Porters Five Forces ................................ ................................ ................................ ................... 3 3.3.1 Strategy Canvas ................................ ................................ ................................ ............... 4 3.4 SWOT - Analysis ................................ ................................ ................................ ......................... 5 3.4.1 VRIO - framework ................................ ................................ ................................ ............... 5 3.4.2 PESTEL - Analysis ................................ ................................ ................................ ............. 6 3.4.3 SWOT - Analysis ................................ ................................ ................................ ................ 7 3.5 Digital SWOT ................................ ................................ ................................ ............................. 7 3.5.1 Analysis ................................ ................................ ................................ ............................ 7 3.5.2 Digital SWOT ................................ ................................ ................................ .................. 11 4 Business Objectives ................................ ................................ ................................ ...................... 12 5 Strategy ................................ ................................ ................................ ................................ ......... 13 5.1 Segmentation, Targeting, Positioning ................................ ................................ ..................... 13 5.1.1 Segmentation ................................ ................................ ................................ .................. 13 5.1.2 Targeting ................................ ................................ ................................ ......................... 16 5.1.3 Positioning – Digital Marketing Mix ................................ ................................ ................. 18 5.2 Strategy ................................ ................................ ................................ ................................ ... 19 6 Tactics ................................ ................................ ................................ ................................ ........... 19 II 6.1 Individual Components ................................ ................................ ................................ ............ 19 6.1.1 Elina — User - generated content & augmented reality in Instagram in ACT & CONVERT stages 19 6.1.2 Marilia – Engagement with the brand in the website campaign in Reach stage ............. 24 6.1.3 Pia – YouTube Ads in the Reach phase ................................ ................................ ......... 27 7 Action ................................ ................................ ................................ ................................ ............ 31 7.1 Project/Campaign Plan ................................ ................................ ................................ ............ 31 8 Control ................................ ................................ ................................ ................................ ........... 32 8.1 Elina — User - Generated Content & Augmented Reality ................................ ......................... 32 8.2 Marilia – SEO ................................ ................................ ................................ .......................... 33 8.3 Pia – YouTube Ads ................................ ................................ ................................ ................. 33 9 Conclusion ................................ ................................ ................................ ................................ .... 34 Bi bliography ................................ ................................ ................................ ................................ .......... 35 Appendix ................................ ................................ ................................ ................................ .............. 38 III L IST OF FIGURES Figure 1: Business Model Canvas ................................ ................................ ................................ .......... 2 Figure 2: Ansoff - Matrix ................................ ................................ ................................ ........................... 3 Figure 3: Porter's Five Forces ................................ ................................ ................................ ................ 3 Figure 4: Five forces framework ................................ ................................ ................................ ............. 4 Figure 5: Strategy Canvas ................................ ................................ ................................ ...................... 5 Figure 6: VRIO - framework ................................ ................................ ................................ ..................... 6 Figure 7: PESTEL - Analysis ................................ ................................ ................................ .................... 6 Figure 8: SWOT - analysis ................................ ................................ ................................ ....................... 7 Figure 9: Page ressources ................................ ................................ ................................ ..................... 8 Figure 10: Channel Overview (website traffic) ................................ ................................ ....................... 8 Figure 11: Site - Wide SEO ................................ ................................ ................................ ...................... 9 Figure 12: Social Media Landscape ................................ ................................ ................................ ..... 10 Figure 13: Cross Channel Audience form October 11 to November 9 ................................ ................. 10 Figure 14: Cross - Channel Posts Oct 11 - Nov 9 vs. Sep 11 - Oct 10 ................................ .................. 10 Figure 15: Cross - Channel Engagement Total Oct 11 - Nov 9 v s. Sep 11 - Oct 10 .............................. 11 Figure 16: Digital SWOT ................................ ................................ ................................ ...................... 11 Figure 17 : SMART objectives ................................ ................................ ................................ ............... 12 Figure 18 : SMART objectives fo ur Sprout & Co ................................ ................................ ................... 13 Figure 19: Buyer Persona 1 ................................ ................................ ................................ ................. 14 Figure 20: Buyer Persona 2 ................................ ................................ ................................ ................. 15 Figure 21: Customer journey map ................................ ................................ ................................ ........ 16 Figure 22: Customer journe y ................................ ................................ ................................ ................ 17 Figure 23: Value Proposition Canvas ................................ ................................ ................................ ... 17 Figure 24: Marketing Mix ................................ ................................ ................................ ...................... 18 Figure 25: Strategy overview ................................ ................................ ................................ ................ 19 Figure 26: Mockups Augmented Reality Masks ................................ ................................ ................... 20 Figure 27: Development of augmented reality masks ................................ ................................ .......... 20 Figure 28: Augmented reality masks in Spark AR ................................ ................................ ................ 21 Figure 29: Examples of augmented reality masks ................................ ................................ ............... 21 IV Figure 30: Example of promocodes ................................ ................................ ................................ ..... 22 Figure 31: Example of promocode publication ................................ ................................ ..................... 22 Figure 32: Example o f lottery publication ................................ ................................ ............................. 23 Figure 33: Targeting options ................................ ................................ ................................ ................ 23 Figure 34: Page Insights Sprout & Co ................................ ................................ ................................ .. 25 Figure 35: Time spent downloading a page/pages crawled per day ................................ .................... 25 Figure 36: Page Insights Sprout & Co Home page structured: Title tag, meta tag an URL ................. 26 Figure 37: Keywords SEO - Strategy ................................ ................................ ................................ ..... 26 Figure 38: ONE - PAGE Words for Sprout & Co ................................ ................................ .................... 27 Figure 39: Video for YouTube ads ................................ ................................ ................................ ....... 28 Figure 40: Mockups skippable in - stream ad ................................ ................................ ......................... 29 Figure 41: Mockup outstream ad ................................ ................................ ................................ .......... 29 Figure 42: Mockups video discovery ad ................................ ................................ ............................... 30 LIST OF TABLES Table 1: SEO tactics ................................ ................................ ................................ ............................. 24 1 1 EXECUTIVE SUMMARY Sprout & Co is an Irish brand offering healthy fast food products. It has been on the market since 2015, but has also expanded to a few outlets in Ireland. Sprout & Co is represented online via the website, Facebook, Instagram and Twitter. In this p roject a digital marketing strategy will be developed for the business. The objectives were defined on the basis of research into the current situation of macro and micro brands and the market environment. The SOSTAC - framework define s the strategy in a descripti ve way of analysis: Situation, objectives , strategy, tactics, actions and control (Chaffey and Smith, 2017). The report consists of a business overview, an analysis of market forces, and strategies and tactics to improve the online presence through proposed strategic digital marketing. Current channels like the website and social media are considered , and the proposal of unused, such as Y ou T ube In the last sections, the campaign plan for the implementation of the strategy is presented and how the individual tactics are measured is described. 2 BUSINESS OVERVIEW Sprout & Co is a h ealthy food bar locate d in Dub lin. The Company has its own farm in Kildare, so all ingredients are fresh and local. Beside its brick and mortar bars, Sprout & Co also offers catering for events and an order online option (Sprout & Co, 2019a; Sprout & Co, 2 019c). 2.1 Value Proposit ion Spro ut & Co The value proposition of Sprout & Co is claimed in following statement: ‘ We feel, the choices we m ake about what we eat, where it comes from and how it’s prepared have an enormous impact on the health of individuals, c ommunities and the env ironment . That’s why we’re building a transparent supply chain, why we cook from scratch, and why we’re creating a community of folks who support real food ’ (Sprout & Co, 2019b). 2.2 Marketing Overview Sprout & Co provides an eco - friendly concept and produce s health y food that only contain s natural ingredients. According to Niels e n ( 2019), t he health and wellness indust ry has increased by 5 % over the last year in Ireland and continues to grow. 2 3 SITUATION ANALYSIS According to recent studies, the trend toward s healthy , low - calorie, organic, free - from and vegetarian foods is increasing and catching up in sales in the West ern European Market toda y (Food & Nutrition, Statista 2019) . This C hapter gives an overview of the current sit uation of Sprout & Co in the mar ket. 3.1 Bus iness Model Canvas The main business processes of the company are described in the Business Model Canva s (see F igure 1) Figure 1 : Business Model Canvas 3 3.2 Ansoff Matrix Sprout & Co sells existing product s (healthy l ocal food and other snacks) to an existing market . In accordance with the Ansoff matrix, F igure 2 show s that the digital marketing strategy of Sprout & Co should correspond to Market Penetration Strategy (Newton a nd Bristoll, 2019 , p. 12 ). Figure 2 : Ansoff - Matrix 3.3 Porters F ive F orces To reveal the attractiveness of the industry for Sp rout & C o business development, the framework of the Porters Five Forces was used. An analysis of the competitive forces and rivalry overview is pr esented on F igure 3 Figure 3 : Porter's Five Forces 4 Based on this, it was foun d that the rivalry among existing competitors is medium. Sprout & Co differs from its competitors by focusing on own products grown on an ecological farm. Based on the ind ividual consideration of each competitive force, the framework of the five forces was developed (see F igure 4 ). Figure 4 : Five forces framework It becomes visible that the circle in the diagram is wide. Based on this, it is decl are d that the industry is passably attractive for developing business in it, since th e wider the resulting circle, the more profitable the entry into the industry. 3.3.1 Strategy C anvas The main critical success factors for building the strategic cur ve were ide ntified on the basis of Agribusiness & International Food Industry R esearch. Thus, th e adaptation to locality, city location, food quality and sales incentive program will be consider ed (Mamalis, 2019) In addition, the suitability for vegetaria ns, the sus tainability of production and packaging as well as website design and usability will be addressed on the basis of trend analyses of the food industry. T he Strategy Curve will be compiled based on an initial analysis of the physical space of the business an d three main competitors as well as analysis of websites, prices and customer reviews ( see F igure 5 ) 5 Figure 5 : Strategy Canvas Thus, as shown in F igure 5 , Sprout & Co (black line) occupies an average position among similar com petitors, where each company stands out with its specific parameter. The company has an absolute competitive advantage in adapting to locality and occupies a good position in food quality, sustainability and vegetarianism adoption and website qu ality. 3.4 SW OT - Analysis To develop the SWOT - Analysis , a VRIO - framework as well as a PESTEL analy sis was conducted 3.4.1 VRIO - framework The VRIO framework was used to analyze strengths and weaknesses (see F igure 6 ) Sprout & Co's resources were assessed on the basis of the following four questions (Barney and Hesterly, 2015, pp. 88 - 90): 1. The questi on of Value 2. The question of Rarity 3. The question of Imitability 4. The question of Organization 6 Figure 6 : VRIO - framework 3.4.2 PESTEL - Analysis The PES TEL - analy sis gives insights on the environment of Sprout & Co and shows the opport unitie s and threats which can occur within the environment (see F igure 7 ) Figure 7 : PESTEL - A nalysis 7 3.4.3 SWOT - Analysis The SWOT - analysis is derived fr om the V RIO - framework and the PESTEL - analysis and shows the strengths, weaknesses, opportunities and threats o f Sprout & Co (see Fi gure 8 ) Figure 8 : SWOT - analysis 3.5 Digital SWOT The D igital SWOT shows the online performance of Sp rout & Co and its competitors. For this the website, SEO, Social Media and online advertising w ere analysed u sing different online resources. A more detailed analysis can be found in the Appendix Chapter 1 3.5.1 Analysis Website 8 The first analysis was done o n the p erformance of the website. All of them are optimized for mobile devices, however there are differences in how many page resources were not able to be loaded (see F igure 9 ). Figure 9 : Page res sources The overall score of the we bsite looks as follows: 74 for Sprout & Co, 89 for Chopped, 87 for Freshii and 77 for Kale & Coco. The se numbers show that Sprout & Co has potential to increase the Website performance. The Channel Overview ( F igure 1 0 ) shows from which channel the traffi c comes from. Figure 10 : Channel Overview (website traffic) 10 6 7 1 Kale & Coco Sprout & Co Freshii Chopped 0,00% 20,00% 40,00% 60,00% 80,00% 100,00% Direct Referrals Search Social Mail Display Channel Overview Sprout & Co Chopped Freshii Kale & Co 9 Search Engin e Optimization To analyse the site - wide on on - page Search Engine Optimization the tool MOZ (2019) was used. On - page : For the on - page grader analysis the k ey word ‘healthy food’ was used. Only Copped and Kale+Coco optimised their websites for this keyword. Site - wide : For Sprout & Co 13 pages were crawled and 18 issues were detected (see F igure 1 1 ) However, th ere are no critical crawler issues and no craw le r warnings. Kale+Coco has a total of 33 issues on 24 pages crawled (see F igure 11 ). On Chopped.ie 85 p ages were crawled and 80 issues found (see F igure 15) . And finally, the crawl for Freshii found 5 issues o n 2 pages, which could be lead back to a bad w eb site structure (see F igure 1 1 ). Figure 11 : Site - Wide SEO Backlinks Accor ding to the analysis Sprout & Co has 341 backlinks, Chopped has 837 and Kale+Coco 45. Freshii has 52,1k backlinks but they are mainly connected to the . co m domain. 10 Social Media For the Social Media analysis, the tool Rivaliq (no date) was used. Figu re 1 2 shows the channels used. Figure 12 : Social Media Landscape Ac cording the results, Freshii has the highest number of followers, followed by Chopped, Sprout & Co and Kale+Coco (see F i gure 13) Figure 13 : Cross Channel Audience form October 11 to November 9 A comparison with th e previous month shows that Freshii has the highest involvement in social media, followed by Chopped and Kale+Coco. Spr out & Co is the taillight ( F igure 1 4 ) Figure 14 : Cross - Chann el Posts Oct 11 - Nov 9 vs. Sep 11 - Oct 10 11 Figure 15 shows the Cross - Channel Engagement. Freshii is on the first spot, followed by Choppe d. Sprout & Co is on the third place and Kale+Coco is far behind. Figure 15 : Cr oss - Channel Engagement Total Oct 11 - Nov 9 vs. Sep 11 - Oct 10 Advertising All the companies, excep t Freshii, get their traffic only from organic search and do not have paid search ads or display ads. Freshii get 0,29 % trough paid search an d 3,44 % thr ough display ads. 3.5.2 Digital SWOT The D igital SWOT derived from the c ompetitor analysis, which is shown in Chapter 3.5.2 Figure 16 : Digital SWOT 12 4 BUSINESS OBJECTIVES Objectives are a critical part of planning to achieve, an d to define the strategic goals. They were designed based on SMART - framework , developed by Chaffey a nd Ellis - Chadwick ( 2019 , p 156). To be effective, the goals must be SMART . That means that they must be Specific, Measurabl e, Achievable, Relevant and Time - Bound, to enhance the effectiveness of marketing activities. Figure 17 : SMART ob jectives The SMART - framework ( F igure 17 ) will be used to describe the goals. The mission is to build brand insight s and t o become a leader in the Ireland market. That could offer customers fast prepared but also high quality and very healthy meals. According to Chaffey and Ellis - Chadwick ( 2019 , p. 156 ) , setting measurable goals is one of the first step to develop an e ffective digita l marketing strategy. Th e objective of this plan is to improve Sprout & Co brand image perceived by consumers, and to achieve the result will be fo llo w by three goals: 1. I ncrease brand awareness by 25 % within the time frame of six months 2. increase number of followers on social media by 50 % by usi ng the existing channels 3. Increase monthly traffic of the website by 15 % within a six month duration 13 To know the best strategy to use, it is necessary to have a clear direction and defined goals (see F igu re 18 ) Figure 18 : SMART objectives four Sprout & Co 5 STRATEGY This C hapter deals with the strategy. For its development, it is essential to segment the market in order t o address the right target group, for which the STP - model was used. The strategy was afterwards developed. 5.1 Segmentation, Targeting, Positioning 5.1.1 Segmentation Usin g the field data collection method (analysis of comments, interests, subscriptions and activities) on an Instagram account of a typical representative of the brand 's target audience, several portraits of the target consumer were created. 14 1) First buyer perso na, vegetarian c onsumers segment ( F igure 19 ) Figure 19 : Buyer Persona 1 15 2) Second buyer persona, non - vegetarian consumers segment ( F igure 20 ) Figure 20 : Buyer Persona 2