BA6UK68O - Digital and Social Media Marketing Planning Framework

SWOT Analysis (Contd)

• Opportunities
• The Entertainer has been seeking new territories to expand within new European territories, in a partnership with Tesco (Sheffield and Proctor, 2024).
• This toy distributor has been dependent on innovations like ‘the Hybris Multichannel Suite’ for establishing neoworks to design user-experience (Retail Technology News, 2024).
• Threats
• The toy company has been unable to cope with the changing tastes of children.
• Many supermarkets act as potential competitors of the toy distributor (Sheffield and Proctor, 2024).

PESTEL Analysis

• Political Factors: Premium toy products will be required to levy a corporation tax of 25% based on its total value. As the Entertainer accrues profits by more than £250,000, they are required to produce the above tax as of 1st April 2024 (PwC, 2023).
• Economic Factors: The consumer price index or CPI has come down to 0.8% from 1.5% as of March 2024, based on reports published by the Office for National Statistics directed for toys and other consumable items (BBC News, 2020).

PESTEL Analysis (Contd)

• Social Factors: Millennial consumers (aged 26-45) including male and female consumers prefer to purchase luxury toys or Jellycat toys for both their children and themselves. The trend has grown by 50% in the last few years within the UK (Khosla, 2023).
• Technological Factors: Majority toy sellers and distributors similar to retail companies have been looking to focus on their ERP systems, or software programs like SAP which can help them to understand inventory levels, employee performances, and vice versa. As many as 170 stores use the software feature (Lauchlan, 2021).

PESTEL Analysis (Contd)

• Environmental Factors: Few toy-makers are relying on sustainable materials for toy making, whereas the same organisations are also looking to keep a 60% carbon-neutral focus for its products (Maximise Market Research, 2023).
• Legal Factors: The toy distribution market is regulated by the consumer rights act of 2015, which looks to discern if consumer complaints, their interests, and other factors are not getting sidelined and looked into with seriousness (Maximise Market Research, 2023).

STP Analysis

• Demographic segmentation: UK demographics of ages 18-34 are investing in toys and games due to nostalgia from reintroduced collectibles like Barbie and Furby figurines (GlobalData, 2024).
• Gender-neutral attitudes among UK millennials offer lucrative opportunities for selling more toy brands regardless of their traditional marketability e.g. Barbie figurines.
• Geographic segmentation: With 697 out of 905 UK stores being located in England, the urban geographic population constitutes the majority of the demographic populace (ScrapeHero, 2024).

STP Analysis (Contd)

• Psychographic segmentation: Adult toy consumers hold nostalgic ideals, and gender-neutral values in the case of UK Millennials (Nguyen, 2022).
• Behavioural segmentation: Toy purchases are occasional, outside of hobbyist toy collectors and hoarders.
• Targeting: The Entertainer should target the 18-34 adult demographic in the UK, regardless of gendered toy promotion (Nguyen, 2022).
• Positioning: The perceptual map shows The Entertainer in relation to Hamleys and Smyths.

Competitor Benchmarking

• Bargaining power of buyers: Toy brands like Barbie commands high loyalty, corresponding with reduced price sensitivity and brand switching ability (Bangor Daily News, 2023).
• Bargaining power of suppliers: Branded toys from large manufacturers like Hasbro and Mattel come with lower bargaining power for The Entertainer.
• Threat of new entrants: Due to consolidation of retail stores by The Manufacturer, new entrants cannot easily compete.

Competitor Benchmarking (Contd)

• Threat of substitutes: Alternative play experiences in digital entertainment impacts traditional toy sales.
• Competitive rivalry: Rivals like Hamleys and Smyths exist in the UK toy retail space.
• The Entertainer maintains a strong position among UK-headquartered toy retailers.

Market Proposition

• The Entertainer offers own-brand toys with unique designs to offer novelty in the toy market.
• The company follows a total toy platform strategy covering “design, source, develop, retail, wholesale” activities for other retailers (Butler, 2024).
• Retail partnerships expand the market proposition for retailers stocking toys from The Entertainer.

Value Proposition Canvas

• The value proposition reflects gain creation for other retailers, together with products and services.
• Customers gain from their opportunity to buy unique toy designs that are exclusive to The Entertainer.
• The customers are able to buy such toys directly from The Entertainer, from retail partners like Tesco, and online as well (Butler, 2024).

SMART Objectives

• Goal 1: Increase brand mentions on social media networks by 20% in 3 months.
• Goal 2: Increase social media follower count by 10% in 6 months.

Customer Journey Planning

• Awareness: Social media influencers create renewed awareness of The Entertainer to its target audience.
• Consideration: The customer evaluates offerings from The Entertainer to Hamleys and Smyths.
• Purchase: The store-exclusive toys of The Entertainer compel the customer’s purchase decision.

Customer Journey Planning (Contd)

• Retention: Customer retention relies on customers experiencing the same level of satisfaction and fulfilment from each purchase journey event.
• Advocacy: Customers become advocates when their experience is perceived as genuine and congruent to their expectations as a buyer in the journey.

Marketing Tactics and Ideas

• The Entertainer can offer discounts to customers who successfully refer others to buy products from their stores.
• Randomised giveaways can be held every month for one new product release, that is unique to The Entertainer.
• The FOMO phenomenon comes into play to incentivise consumers with the idea of owning a limited-edition one-time product.

RACE marketing framework

• Reach: Social media targeting from Instagram, Facebook and TikTok.
• Act: User referral and giveaway actions.
• Convert: Monetise customers from different segments.
• Engage: Respond rapidly to customer issues for resolving them on social media.

Key Performance Indicators 

• Click-through rate: This will calculate the number of ad clicks relative to the number of ad impressions.
• Conversion rate: This KPI calculates the conversion of marketing leads into sales transactions.
• Net promoter score: The customer’s satisfaction and intent of recommending the brand to their friends and family is identified from this KPI.

Key Performance Indicators (Contd)

• Return on investment: This calculates the profitability of the marketing investment from its initial cost to the final value.
• Customer lifetime value: The lifetime value of customers is differentiated; a nostalgic toy collector generates more value alone than a family household which buys on limited occasions yearly.
• Share of voice: This KPI identifies the number of mentions of The Entertainer against rival voices like Hamleys.

Communications Plan

• Paid media: This includes social media content from paid collaboration with influencers.
• Earned media: Word-of-mouth promotion is accounted for under earned forms of media.
• Shared media: User-generated content from customers generated through their advocacy.
• Owned media: Content marketing from store employees creates unique communication across individual stores of The Entertainment.

Budget

• The budget for this plan accounts for the use of micro influencers to stimulate conversations with their customers.

Conclusion

The Entertainer has turned its market positioning into an advantage by holding unique values of the founder, together with launching sub-brand toy lines to offer new novel products to customers. In addition to this, the partnership tie-ups with retailers like Target and Marks & Spencer creates sufficient opportunity to generate returns on investment from the digital marketing communications plan.

References

• Bangor Daily News (2023). After success of ‘Barbie,’ Ken is getting more love than he has in years. [online] Bangor Daily News. Available at: https://www.bangordailynews.com/2023/08/12/nation/barbie-movie-ken-doll-popularity/ [Accessed 28 Oct. 2024].
• BBC News (2020). Toy and vegetable costs rise as fuel price drops. BBC.com, [online] 20 May, pp.1–2. Available at: https://www.bbc.com/news/business-52735240 [Accessed 28 Oct. 2024].
• Brown, J. (2020). How The Entertainer charmed the high street. [online] Licensingsource.net. Available at: https://www.licensingsource.net/indepth/how-the-entertainer-worked-its-magic-on-the-high-street/ [Accessed 28 Oct. 2024].
• Butler, S. (2015). The Entertainer: inside the HQ of the UK’s growing toy empire. [online] The Guardian. Available at: https://www.theguardian.com/lifeandstyle/2015/apr/06/the-entertainer-inside-hq-uk-growing-toy-empire-loom-bands-lego [Accessed 28 Oct. 2024].
• Butler, S. (2024). ‘The total toy platform’: boss of The Entertainer aims for infinity and beyond. [online] The Guardian. Available at: https://www.theguardian.com/business/2024/mar/19/toy-platform-the-entertainer-andrew-murphy-tesco-m-s [Accessed 28 Oct. 2024].
• GlobalData (2023). United Kingdom (UK) Toys and Games Market Size and Forecast by Categories, Key Trends, Revenue Share, Consumer Attitudes and Major Players to 2027. [online] Market Research Reports & Consulting | GlobalData UK Ltd. Available at: https://www.globaldata.com/store/report/uk-toys-and-games-retail-market-analysis/ [Accessed 28 Oct. 2024].
• Khosla, A. (2023). Why Millennials are going wild for Jellycat toys. [online] Mail Online. Available at: https://www.dailymail.co.uk/femail/article-12850627/Millennials-going-wild-Jellycat-toys.html [Accessed 28 Oct. 2024].
• Lauchlan, S. (2021). How toy shop The Entertainer made e-commerce child’s play with SAP Commerce Cloud. [online] Diginomica. Available at: https://diginomica.com/how-toy-shop-entertainer-made-e-commerce-childs-play-sap-commerce-cloud [Accessed 28 Oct. 2024].
• Maximise Market Research (2023). Sustainable Toys Market Size, Share, Trend Analysis & Global Industry Growth Opportunity and Forecast (2023-2029). [online] Maximise Market Research. Available at: https://www.maximizemarketresearch.com/market-report/sustainable-toys-market/213954/ [Accessed 28 Oct. 2024].
• Nguyen, H. (2022). Playing with diversity and inclusion: Consumer views toward the toy industry. [online] business.yougov.com. Available at: https://business.yougov.com/content/44794-toys-diversity-inclusion-responsible-shopper-study [Accessed 28 Oct. 2024].
• PwC (2023). United Kingdom - Corporate - Taxes on Corporate Income. [online] Taxsummaries.pwc.com. Available at: https://taxsummaries.pwc.com/united-kingdom/corporate/taxes-on-corporate-income [Accessed 28 Oct. 2024].
• Retail Technology News (2024). Retail Technology | The Entertainer launches a new multichannel strategy. [online] Retail Technology News. Available at: https://www.retailtechnology.co.uk/news/4081/the-entertainer-launches-new-multichannel-strategy/ [Accessed 28 Oct. 2024].
• ScrapeHero (2024). Number of The Entertainer locations in the UK in 2024. [online] ScrapeHero. Available at: https://www.scrapehero.com/location-reports/The%20Entertainer-UK/ [Accessed 28 Oct. 2024].
• Sheffield, G. and Proctor, B. (2024). International expansion for The Entertainer while it strengthens the leadership team - Nursery Today. [online] Nursery Today. Available at: https://nurserytoday.co.uk/2024/09/06/the-entertainer-international-expansion/ [Accessed 29 Oct. 2024].
• Vieira, V., Santini, F.O. and Araujo, C.F. (2018). A meta-analytic review of hedonic and utilitarian shopping values. Journal of Consumer Marketing, [online] 35(4), pp.426–437. doi:https://doi.org/10.1108/jcm-08-2016-1914.
• Wood, Z. (2009). The Entertainer’s Gary Grant: the Christian toyshop entrepreneur. [online] The Guardian. Available at: https://www.theguardian.com/business/2009/dec/17/gary-grant-entertainer-toyshop [Accessed 28 Oct. 2024].