AMMK5103

MASTER OF MANAGEMENT

SEPTEMBER 2022

AMMK 5103

ADVANCED CORPORATE COMMUNICATION

MATRICULATION NO : CGS02088202
IDENTITY CARD NO. : 790910-08-6296
TELEPHONE NO. : 012 910 8086
E-MAIL : ernajamil@gmail.com
LEARNING CENTRE : KUANTAN LEARNING CENTRE
LECTURER : DR. MUHAMAD SHAM BIN HAJI SHAHKAT
ALI

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TASK 1

QUESTION NO. 1

1.0 Introduction

Essentially, research is all about gathering information. To obtain information, researchers and
practitioners apply a variety of methods, including:

(a) Informal research: This is the most fundamental type of research. It lacks a systematic
methodology and is unable to represent the population under study. It consists of casual or
informal meetings with key organizational constituents or subject matter experts in order to gain
a better understanding and inform communication programs; and

(b) Formal research: A systematic strategy for data collection with specific objectives that can
reflect the investigated population. Surveys, focus groups, and document content analysis are
some of the methodologies employed in this type of study.

The amount of information that is being continuously sent to various audiences in the modern
digital world is enormous. Information that is being sent out by a body involved in
communications, either internally or externally, includes raw information, processed
information, important messages, and communication elements. Every organization corporate,
individual, social, non-profit, or government has to deal with a lot of data on a regular basis.

In terms of the communicators, data is always dense and has multiple inputs. This enormous
amount of information is constantly at the disposal of brand communicators, public relations
specialists, and corporate communicators as they prepare their communication plans and carry
out their campaigns on the ground. While communications professionals can use this data in a
variety of ways, research may be the greatest one.

When done correctly, research can be extremely beneficial to the practice of communications
professionals. Research can help remove biases and present a true image of what audiences may
be perceiving while developing the campaign, communication messages, or even selecting the
target audiences. Such input can be extremely beneficial to leaders in effectively delivering their
agenda or message to the appropriate audiences. Leaders can make sound judgments that have a
good impact on their audiences, resulting in a more effective campaign.

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The nature of the message is of the biggest importance in building the campaign, which is
expressed through words and pictures in many parts reaching out to the final audiences. Research
insights can be a huge help in producing such messages, which can be quietly interwoven in all
communication parts of any communication strategy. And, in terms of audience response and
feedback, the influence and outcomes will only be in the right direction.

Another component that can effectively use the power of research is audience feedback, which
can be used to examine the overall impact and measurement of the campaign. Ongoing research
can aid in measuring the campaign's aims vs its accomplishments. Furthermore, research enables
the entity to seek appropriate measures of course correction of communication messages in a
timely manner.

Big data analysis, as well as graphs, charts, tables, and numbers, are useful for business
communicators since they promote correct communication. Today's audiences are highly
fragmented, and big data analysis allows for the assessment, identification, and delivery of
communication messages to very particular and targeted audiences. Any audience is merely a
seeker of information. Information in the form of needs, wants, requirements, preferences,
deviations, likes, dislikes, and choices, among other things, can give answers to their difficulties.

Data analytics always aids in the generation of deep insights into what the audience is delving
into at any one moment in time, scenario, or place. It will stimulate your main audiences,
whether they are consumers, shareholders, or business partners. It will develop a profile of them
and provide you with suggestions on how to deal emotionally with each of these personas via
key messages in your communication.

Through data analytics, it is possible to comprehend not only the behavior of the specific target
audience but also that of the audiences of the competitors. It can offer profound insights into not
only demographics but also other important criteria.

We live in a time when predictive analysis, social profiling, real-time monitoring and analysis of
developing trends, listening to current discussions, analyzing contemporary media consumption
habits, and attentively studying the digital pathway, etc. are all possible.

Many of the world's greatest public relations firms have already begun to use big-data analysis to
deliver communications campaigns, and the future is already here.

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IKEA is a Swedish multinational business that manufactures and distributes ready-to-assemble

furniture, kitchen appliances, and home accessories, as well as other useful goods and
occasionally home services, (Wikipedia).

IKEA Group owned by Stichting INGKA Foundation is the largest furniture and home
appliances manufacturer and retailer in the world. Ingvar Kamprad founded the IKEA Group
about eight decades ago in Smland, southern Sweden. Currently, there are 11 franchisees
working in more than 500 locations in 63 countries (Annual Report, FY21).

IKEA employs a complex corporate structure. All IKEA stores are operated under a franchise
from Inter IKEA Systems, which manages branding, design, manufacture, and supply within this
system. Ingka Group, another IKEA subsidiary, manages the majority of IKEA stores as a
franchisee and pays royalties to Inter IKEA Systems. Some IKEA locations are also run by
independent franchisees.

IKEA had 225000 employees worldwide at the end of FY21, an increase of 8000 over the
previous year. The largest furniture retailer in the world has almost 12000 products available and
creates about 2000 new things annually. In FY21, the company's total operational income
increased by 8.5% to EUR 25.6 billion over the prior year. The year's net profit was EUR 1.4
billion (Annual Report, FY21).

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STARBUCKS CORPORATION

Starbucks Corporation is a coffeehouse and roastery reserve international corporation located in

Seattle, Washington. It is the largest coffeehouse chain in the world. The corporation had 33,833
outlets in 80 countries as of November 2021, 15,444 of which were in the United States,
(Wikipedia).

The corporation had 33,833 outlets in 80 countries as of November 2021, 15,444 of which were
in the United States. Over 8,900 of Starbucks' U.S.-based locations are company-operated, while
the remaining are licensed.

Starbucks is often credited with ushering in the second wave of coffee culture by offering a
larger range of coffee experiences. Starbucks offers a variety of hot and cold beverages, whole-
bean coffee, micro-ground instant coffee, espresso, caffe latte, full and loose-leaf teas, juices,
Frappuccino beverages, pastries, and snacks. Some items are seasonal or unique to the store's
location. Depending on the country, most public places offer free Wi-Fi internet connection.

QUESTION 2

Corporate communication practitioners use research to carefully plan, execute and evaluate all
corporate communication campaigns. The utilization of research changes as the programme
evolves. Surveys, for example, are used to help organizations better understand the challenges or
issues they are facing and to segment their stakeholders. A focus group is used to examine the
feasibility of a campaign, evaluate the efficacy of communicating critical concerns, and refine
communication tactics. Research and evaluation should be an integral part of the planning
process for communication programmes, Cornelissen (2014).

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Figure 6.1: Research and evaluation as part of a communication campaign

Source: Cornelissen (2014)

IKEA Corporate Communication Campaign

The IKEA business strategy is based on the IKEA concept. The IKEA Concept begins with the
goal of providing a wide choice of home furnishings that are affordable to the majority of people,
not just a select few. It is accomplished by combining function, quality, design, and value, while
keeping sustainability in mind at all times. The IKEA Concept pervades every aspect of the
organization, from design to sourcing, packing, and distribution to the business model, The
IKEA Concept (2019).

Ikea's marketing strategy comprises some of the most well-known brands, campaigns, and
businesses in recent history. Furthermore, the company is known for its focus on cost
management, operational details, and ongoing product development, which has helped IKEA to
reduce its pricing by two to three percent on average.

IKEA's website comprises over 12,000 products, and there were over 2.1 billion visitors to
IKEA's websites between September 2015 and August 2016, IKEA Highlights (2016).

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Ikea utilizes the power of the following marketing channels:

a) Website
b) Mobile Application
c) Web Engage: Email, SMS, and WhatsApp Marketing
d) Social Media
e) Tele calling
f) Commercials
g) Print ads
h) Stores

Ikea Target Audience

Ikea caters to the specific functional needs of each target demographic, with a focus on people
aged 16 to 34. As such, it employs the following sorts of product positioning:

 Mono-segment positioning. It caters to the demands and desires of a single customer

segment that is price-conscious and prioritizes value for money.
 Adaptive positioning. It believes in repositioning products and services on a regular basis
to reflect changes in client preferences. Its Swedish furniture chain takes into account the
changing nature of customer preferences. For example, its most recent goods reflect a
global trend toward minimalism.

Types of the methodology used in IKEA campaigns research:

Media Content Analysis

Media content analysis is classified into two types: qualitative content analysis and quantitative
content analysis. Qualitative content analysis collects information on the audience-text meaning
link. The quantitative content analysis collects data on media material, such as the frequency of
keywords mentioned/issues/topics, as well as the number of people contacted.

IKEA Website and Mobile Application

Ikea maintains an appropriate mobile website performance, button displays, and gesture controls
on its website and mobile app to retain and attract visitors. It meticulously invests in its UI/UX,
inquiry-based chatbot, and regular updates on new deals, discounts, and promotions.

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Downloading its 3D modeling tool to visualize a dream home is one of the most successful
marketing initiatives. It's one of its most successful marketing strategies, allowing IKEA to
upsell low-demand items by instilling a desire in its customers to redesign the area.

Ikea’s Website with Engaging Content

Ikea's SEO (Search Engine Optimization)

Ikea's marketing strategy attempts to increase the site's visibility for relevant searches in order to
attract new and existing customers. It incorporates the appropriate product-specific keywords as
well as Google advertising to supplement its organic ranking.

Ikea Ranking for Bookcases on Google’s First Page

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Cyberspace Analysis

Using the same approaches used in media content analysis to analyze chat rooms, news groups
on the World Wide Web, and social media. Researchers can also use Big Data technology to
analyze the patterns of social media postings, contents, channels, demographics, and other details
by hiring data scientists to undertake analysis.

Ikea's Social Media

Ikea's social media accounts are particularly active on platforms such as Facebook, Instagram,
Twitter, and YouTube. Their digital presence is enormous, with over 30 million Facebook likes,
1 million Instagram followers, 5.3k Twitter followers, and 41.2k YouTube subscribers.

Its Instagram bio includes a link to its website. The website also includes links to the company's
different social media feeds. IKEA also offers free online workshops, which attract a large
number of eager customers and generate leads.

Ikea’s Instagram Profile Ikea’s YouTube Advertisements

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IKEA ‘Creating a Better Everyday Life for the Many’ Campaign

Stage 1: Audit

On the surface, IKEA is a household name, well-known in culture, and has a long history of
innovative marketing. However, in 2013, a new story began to emerge. Sales growth had been
cut in half, penetration was falling, and IKEA UK appeared out of sync with rivals striving for
market leadership.

Stage 2: Objectives

A new aim established by IKEA worldwide management produced a tremendous sense of

urgency: stop the decline. And to meet 2020 targets, the company must expand by at least 8%
YoY growth.

Stage 3: Planning and execution

The solution was a culturally relevant brand platform called “The Wonderful Everyday”. A new
brand articulation that returned to IKEA's fundamental purpose, delivered with creative quality,
and exceeded the commercial target set.

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The resulting campaign idea was simply an elevation of IKEA’s strategic direction and long-
standing vision:

“Life isn’t about fleeting events or a summer holiday, it’s the little, everyday things that
make it what it is: The Wonderful Everyday.”

IKEA created rich, hyperbolic, cinematic renditions of home life to ensure the campaign
punched well above its media weight.

The media mix: Two core considerations:

1. To boost salience across their audience, through high-profile, high-reach AV channels.

2. To generate interest by demonstrating how IKEA may help various people improve their
daily lives at home. IKEA deployed a wide range of support media, mostly paid social,
with messages that were carefully catered to their different needs using profile data.

The Wonderful Everyday was launched in January 2014.

A Snapshot of “The Wonderful Everyday”

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Stage 4: Measurement and evaluation

The role of communication was to refresh the role IKEA plays in customers’ homes and hearts
and signs are that the brand has revived. Social reactions to the campaign demonstrate how
joyfully people have embraced The Wonderful Everyday. IKEA is now more salient in line with
the new campaign (Fig8).

Fig 8: IKEA UK Top of Mind Awareness

The Wonderful Everyday Campaign Launch
35

30

25

20

15

10

5
FY11 FY12 FY13 FY14 FY15 FY16
Source:0Millward Brown Brand Tracker

Evidence demonstrates that the new platform has brought about a significant improvement in
business performance. Econometricians estimate that since its debut, it has brought £355 million
in additional revenue to IKEA UK, including $142 million in FY16 alone. This is the largest
increase in income from communications that IKEA has ever seen (Fig11).

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Starbucks Corporate Communication Campaign

Starbucks has a well-integrated marketing mix where Promotion, Positioning, and People
elements support the Price one (Koc, 2020). The method of reaching out to customers
emphasizes the use of the differentiation strategy, in which the business provides high-quality
products in its specialized market with a variety of options while also fostering a sense of
community among its devoted followers.

Stage 1: Audit

Starbucks Target Audience Identification

In terms of demographics, Starbucks' primary target audience consists of young adults and
middle-aged customers with medium to high-income levels (Pride and Ferrell, 2018). They are
willing to pay higher rates for cold and hot beverages due to a variety of causes.

i. First and foremost, these customers want high-quality ingredients and brewing
procedures to ensure the outstanding flavor of their beverages.
ii. Second, they expect a consistent level of service and product quality in every Starbucks
location they visit, which includes courteous communication and prompt service.
iii. Third, these customers care about the environment and are aware of the company's
attempts to buy fair trade products, assist foreign farmers, and contribute to global
sustainability.
iv. Fourth, Starbucks is a well-known technology pioneer that introduced free Wi-Fi in
restaurants for the first time in 2002 and created cutting-edge smartphone applications
that supported both remote ordering and loyalty programs (Steenkamp, 2017).
Starbucks customers can be classified into three major segments based on their demands at any
given time, according to behavioral studies (Wided, 2021).
1) The first group includes those who are interested in the physical brand experience as
defined by the company restaurants' previous branding as "the third place." This enables
them to unwind and spend quality time with their loved ones between work and home. At
the same time, they may not frequent Starbucks restaurants since their primary
motivation is 'eatertainment,' or having unique guest experiences to lift their spirits.

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2) The second group consists of takeaway clients who want to buy their beverages and enjoy
them on the go (Boone et al., 2021). They could be commuting to work or taking a quick
lunch break before continuing on with their hectic schedule. If they work in neighbouring
offices or have other recurring activities in the region, these people may be frequent
consumers.
3) The third group consists of professionals who use Starbucks to work for several hours on
their laptops. They typically purchase beverages and snacks and may frequent adjacent
restaurants.

Stage 2: Objectives
SMART Communication Goals Based on Audit Results

As noted by Juska (2021), effective organisation goals need to be specific, measurable,

achievable, relevant, and time-bound (SMART). The audit has identified many significant issues
that Starbucks must address in order to maximise the success of its new marketing
communications plan.

(a) To develop separate communication strategies for takeaway and drive-thru clients and
consumers focused on physical brand experiences - 3 months.
(b) To reduce the influence of automation on the dilution of brand image and positioning,
new marketing initiatives encouraging engagement levels of both categories must be
introduced within the next 3 months.
(c) To determine the best communication channels that will reach every intended client
segment – in 3 months.

Stage 3: Planning and execution

The main goal of the new communication strategy is to balance the existing firm’s positioning as
"the third place" with the increased demand for remote orders and takeaway orders during the
COVID-19 period (Kelso, 2020). Because Starbucks' premium pricing has long been connected
with its tangible brand experiences, these two ideas may appear conflicting in some areas. On the
contrary, automation of order processing and takeaway orders is typical of lower-cost fast-food
businesses that adhere to cost leadership and use these tools to minimize prices and eliminate
employee engagement with consumers as a major operational bottleneck (Walton, 2020).

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At the same time, the new strategy must reestablish the sense of company commitment to loyal
customers that has been largely lost as a result of generic loyalty programmes and campaigns. To
provide a consistent brand experience across all channels, it must achieve integrated marketing
communication.

The table below summarizes the primary messages and communication channels used to promote
the new marketing communications strategy.

Table 1: Key messages and Communication Channels

Table 2: Communications Strategy

Specific campaign actions related to the previously defined SMART targets will be arranged in
accordance with the marketing calendar below.

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Choice of Key Channels

Instagram posts are included in the first channel. The latest #Unicorn Frappuccino campaign's
success shows that contests and hashtag campaigns on this platform continue to be a successful
way of reaching and engaging Starbucks audiences (Vassallo et al., 2018). Their use may
encourage the creation of user-generated content and allow the company to publicly recognize
and appreciate its followers' achievements.

The second channel has long-reads from Facebook. They can delve deeper into the issues of
sustainability and company positioning to tell loyal customers about the efforts made to achieve
major goals in these areas (Mason et al., 2021).

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The third channel contains content from TikTok and YouTube. These two platforms prefer
shorter and longer videos, implying that they are used in different ways (Ge et al., 2021). TikTok
content, like Instagram Stories and Reels, can elicit a short-term emotional response and
engagement while also announcing new contests. On the contrary, longer videos touting
Starbucks' benefits as "the third place," as well as new options for "on-the-go" customers and its
sustainability initiatives, should be posted on YouTube (Febriyantoro, 2020).

Finally, the fourth channel contains messages and updates from smartphone apps. It should
primarily be used to offer new possibilities for 'on-the-go' clients who are interested in remote
orders and are ready to arrange them for specified times to prevent delays (Taecharungroj, 2016).

Starbucks TikTok Channel

Starbucks YouTube Channel

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Stage 4: Measurement and evaluation

To ensure the proper execution of the marketing plan, the persons responsible need to integrate a
number of key performance indicators to monitor its real-time performance and identify the
achievement of the earlier set goals (Kingsnorth, 2019).

Rather than taking the traditional digital marketing delivery route of releasing promoted banner
ads online or raising awareness through its app, the company leaked attractive images of the
product to social news site Reddit prior to its official release, which immediately created high
levels of consumer anticipation around the product. With the exception of some minor promotion
via its social media channels, the company then let the media and its buyers do the rest of the
work, taking advantage of free advertising from both of these sources. Despite the fact that the
drink was only available in the United States, Canada, and Mexico, the new beverage prompted
over 150,000 consumer posts on Instagram with the hashtag #UnicornFrappuccino.

The worldwide exposure, which highlighted the product's aesthetically beautiful character as
well as its rarity, resulted in a surge in in-store footfall, with customers trying to get their hands
on the Frappuccino before it became unavailable. By reinforcing the brand's market stance, the
corporation was able to secure new consumers as well as recapture lost buyers during the period
of April 19th to the 23rd.

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QUESTION 3

New Communication Campaign for IKEA

IKEA offers a diverse assortment of products that appeal to clients worldwide. It has a number of
outlets, allowing its items to be known all over the world. This has resulted in the company's
success. However, the corporation can devise a strategy to target a niche market in whose
purchasing power is expected to rise in the future.

The corporation should also develop effective marketing tactics to expand its presence in Asian,
Australian, and Middle Eastern markets. According to the study, IKEA produced only 6% of its
sales from the three regions (Geert, 2001). When compared to the potential of these markets, this
is a minor percentage.

The Middle East region, which is rich in resources, represents an appealing opportunity for the
corporation to increase its market share. Despite having multiple stores, IKEA only accounts for
around 10% of the retail market in these countries. This demonstrates that these countries still
have some untapped potential (Foundation, 2008).

New Communication Campaign for Starbucks

Customer loyalty cannot be expanded or transferred to a new product or channel in a short period
of time, based on past experiences. Starbucks should anticipate a steady shift in the purchasing
power and habits of its customers. The Internet may eventually change how buyers see mass-
market brands. However, the transformation will take years, and firm leaders will need to
manage it expertly. As a result, Starbucks' present e-commerce approach must be modified.

First, it may add more value to its value chain by expending its website function as a
communication tool to link its stakeholders such as customers, suppliers, management and
employees. Second, strengthen the public relations role. Starbucks.com is a window not just for
online business, but also for creating the company's image and reputation. Third, keep your
online business focused on core products while pursuing product diversification as a long-term

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plan, which you may do by progressively adding new products one at a time. Finally, to expand
its selling channels, it will form strategic alliances with.com enterprises.

Starbucks can put up an online chat room to help its stakeholders communicate. It may also
generate free email accounts in order to promote its fame and strengthen consumer loyalty.
Furthermore, it might gradually add indirect coffee-related products, such as coffee machines, to
its online sales collection. It may also wish to introduce some online coffee tour packages in
order to provide low-cost trip tours or hotel accommodations. Starbucks may also form alliances
with.com companies to advertise its products in order to improve sales. For example, signing a
sales agreement with Yahoo.com to carry Starbucks' products.

QUESTION 4
Effectiveness of IKEA Communication Campaign
‘The Wonderful Everyday’
Evidence suggests that the new platform has resulted in a significant improvement in business
performance. Econometricians estimate that it has provided an incremental revenue of £355
million to IKEA UK since inception, including £142 million in FY16 alone - the greatest
increase IKEA has ever achieved from communications.

The platform has delivered an impressive 26% increase in ROMI over the last three years - the
best revenue return to date.

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Social Reactions to “The Wonderful Everyday”

CONCLUSION

‘The Wonderful Everyday’ has reimagined the IKEA brand in the UK and helped create a step
change in its fortunes. The platform goes from strength to strength, providing the direction and
impetus to ‘Create a Better Everyday Life for the Many’

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Effectiveness of Starbucks Communication Campaign

Technology Leveraging and Mobile Outlet
Starbucks has a distinguished history of technology, leadership, and innovation among its peers
in the industry; Starbucks was the first company to launch a website in 1998, and at the
beginning of 2002, the company decided to offer free WiFi in all of its locations for its
consumers, and the result of the free WiFi transitioned consumers from a one-time purchase to
all-day consumers. When Starbucks launched its mobile rewards and loyalty programme, sales
jumped by 11%, and customers began to believe it was easier to use their phones rather than their
wallets. Phone sales account for around 37% of the company's total sales (Foster,2018).

CONCLUSION

Starbucks' global success can be attributed to exceptional growth and excellent expansion
methods. Starbucks has always sought to improve its products and market development, whether
through new digital interaction, joint ventures, collaborations, or constantly reviewing coffee
quality and experience. This allowed Starbucks to tailor its goods to diverse cultural preferences
in each country where it expanded internationally. Starbucks has spent extensively in innovation,
around $300 million, because the company recognizes that innovation will offer up new
prospects in many nations (Klein,2019).

Innovation would enable the corporation to reinterpret its brand concept, sustain the evolution of
consumers' demands and aspirations, and react to changes in consumer behavior, allowing
Starbucks to remain competitive and not lose its market footprint. Starbucks must recognize that
there may be future obstacles, such as greater competition from competitors such as McDonald's
and Dunkin Donuts. In addition, based on the local rules of each country, it is critical to
concentrate on expanding its product to include alcoholic beverages in its stores. However, the
company indicated in 2014 that it might diversify its product to include alcoholic beverages in its
menu in the future (Martin Roll,2020).

4130 words

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PART 2

ONLINE CLASS PARTICIPATION

Question 1:

Question 2:

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Question 3

Question 4

Question 5

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