316MKT Digital Marketing Portfolio (DMP) - 2021

What is the Framework?

SOSTAC is a planning process framework to help structure

and manage implementation of plans. It stands for Situation,
Objectives and Strategy, Tactics, Action and Control originally
developed by PR Smith for marketing communications
planning. In their book Emarketing Excellence Dave Chaffey
and Paul Smith have adapted the SOSTAC® framework to
apply it to digital marketing as shown in the diagram on the
next page.

316MKT Digital Marketing Portfolio (DMP) - 2021

 1. Introduce the SOSTAC Framework and its 6 key
components.

2. How each components work together to create a holistic

marketing plan and strategy

3. How to begin your research and look for materials

316MKT Digital Marketing Portfolio (DMP) - 2021

316MKT Digital Marketing Portfolio (DMP) - 2021
SITUATION Brand, Customers, SWOT, Competitor
Where Are We Now?
ANALYSIS Analysis & Existing Marketing Efforts

Sell, Serve, Speak, Save & Sizzle (5S Goals)

OBJECTIVES Where Do We Want To Go?
& S. M. A. R. T. Objectives

How Do We Get There Segments, Target, Objectives, Position (S.T.O.P.)

STRATEGY (Board Direction)? & Sequence, Integration, Targeting (S.I.T.)

Digital Marketing Activities / Techniques &

How Do We Get There
TACTICS (Individual Steps)?
Product, Price, Place, Promo, People,
Process, Physical (Marketing 7Ps)

What Specific Actions Brief Explanation of Each Tactic Steps

ACTION For Each Step? (More details later in RACE Framework)

How Do We Know We Have

Data Analytics, KPIs, Industry Benchmarks,
CONTROL Arrived? How Do We Make
Campaign Contingencies and Flexibility
Adjustments?

316MKT Digital Marketing Portfolio (DMP) - 2021

 The situation should provide an overview of your organisation:

1. Who are you? What type of business?

2. Who are our customers?
3. How do we conduct our trade/sales online?
4. Who are our competitors?
5. What and how effective is our existing Digital Marketing efforts?

Students must research both internal and external factors impacting their
selected company.

316MKT Digital Marketing Portfolio (DMP) - 2021

Provide a brief overview of both the selected Industry and Company.

You should also highlight relevant industry insights, market trends

or government masterplans. This will allow your management to
make the future-ready decisions.

E.g.: Digital Transformation, Industry 4.0, Services 4.0,

Singapore Green Plan 2030, Industry Specific Plans etc.

DISCLAIMER: You should be writing this paper as though it is a marketing proposal to your company board of
directors / management for approval.

316MKT Digital Marketing Portfolio (DMP) - 2021

 The Services and Digital Economy Technology Roadmap (SDE
TRM) provides a scan on the digital technology landscape over the
next 3 to 5 years, identifying the impact of key shifts and
technology trends.

Developed in consultation with local and international

stakeholders, the roadmap is a component of the Digital Economy
Framework for Action, which guides IMDA’s industry development
plans and regulatory approaches for the ICM sector.

https://www.imda.gov.sg/infocomm-media-landscape/SGDigital/Services-and-Digital-Economy-Technology-Roadmap

316MKT Digital Marketing Portfolio (DMP) - 2021

316MKT Digital Marketing Portfolio (DMP) - 2021
 https://www.imda.gov.sg/programme-listing/technology-roadmap

316MKT Digital Marketing Portfolio (DMP) - 2021

 https://www.imda.gov.sg/programme-listing/technology-roadmap

316MKT Digital Marketing Portfolio (DMP) - 2021

 https://www.imda.gov.sg/programme-listing/technology-roadmap

316MKT Digital Marketing Portfolio (DMP) - 2021

 is a whole-of-nation movement to advance
Singapore’s national agenda on sustainable development.

The Green Plan charts ambitious and concrete targets over the
next 10 years, strengthening Singapore’s commitments under
the UN’s 2030 Sustainable Development Agenda and Paris
Agreement, and positioning us to achieve our long-term net
zero emissions aspiration as soon as viable.

https://www.greenplan.gov.sg/

316MKT Digital Marketing Portfolio (DMP) - 2021

316MKT Digital Marketing Portfolio (DMP) - 2021
316MKT Digital Marketing Portfolio (DMP) - 2021
 What Businesses Can Do?

• Adopt Environmentally Friendly Habits

• Utilise the SG Eco Fund
• Empowering Businesses
• Green Finance Masterplan
• Green and Sustainability-Linked Loan Grant Scheme (GSLS)
• Research, Innovation and Enterprise (RIE) 2025
• BCA Green Mark

https://www.greenplan.gov.sg/take-action/what-businesses-can-do/

316MKT Digital Marketing Portfolio (DMP) - 2021

 The Food Services Industry Transformation Map
(ITM), launched in 2016, aims to push ahead with
more manpower-lean formats in the industry and
improve job quality and job satisfaction, while
maintaining the quality and range of Singapore’s
dining options. With an ageing workforce and
changing career aspirations among younger
workers, the challenges faced by the Food
Services industry are those of raising productivity
and reducing reliance on manpower. To stay
competitive, companies will need to embrace
changes at both the front and back-of-house.
https://www.mti.gov.sg/FutureEconomy/Economic-Clusters

https://www.imda.gov.sg/-/media/Imda/Files/Programme/SMEs-Go-Digital/
Industry-Digital-Plans/Food-Services-IDP-20181219.pdf

316MKT Digital Marketing Portfolio (DMP) - 2021

The Food Services Industry is
facing several negative market
trends that is increasingly becoming
a challenge for both existing and
potential new players.

In order to better prepare and equip

SMEs with the right digital
readiness, the Digital Roadmap will
provide a comprehensive guide to
follow.

316MKT Digital Marketing Portfolio (DMP) - 2021

316MKT Digital Marketing Portfolio (DMP) - 2021
316MKT Digital Marketing Portfolio (DMP) - 2021
 STRENGTHS
Established National Carrier with Strong Resources
KLM is an established and resilient national carrier, a commanding fleet of 214
airplanes, over 35,000 employees strong and flies globally to 166 destinations. After
the change of management and restructuring in 2018, KLM has rebounded and has a
positive cash flow for the past 2 year. In addition, KLM holds exclusive rights as
national carrier in Amsterdam Schiphol Airport (KLM, 2018).
Industry Leader in Sustainability
Dow Jones Sustainability Index 1st for straight 14 years, KLM is an industry leader in
sustainability research, namely in biofuel with SkyNRG (AF-KLM Group, 2018). KLM
also works closely with TU Delft to research more efficient airplane aerodynamics
design, reduction and recycling of on-board wastes and more space efficient cabin
designs (Boneschansker, 2019).
OPPORTUNITIES
Alliances & Joint Ventures
Airline alliances captures a larger market, strengthens competitive advantages and
cost reduction via strategic cooperation and code-sharing (Torre & Pablo, 1999). In
2004, KLM joined the SkyTeam Alliance which currently comprises of 19 airlines
members (SkyTeam, 2019). In 2019, transatlantic joint venture between Virgin Atlantic,
Delta, Air France and KLM (Caswell, 2020).
Alternative Sources of Income
In 2018, KLM generated €1.85 billion, 17% of its overall revenue, from its 9 non-airline
subsidiaries and investments (KLM, 2018). Amidst growing instability in the aviation
industry, KLM can look to defray some of its financial risk by continuing to grow its non-
airline subsidiaries and hedging investments.
316MKT Digital Marketing Portfolio (DMP) - 2021
WEAKNESS
LCC Transavia Losing Millions Annually
In 2017, Air France was forced to bail out Transavia as it had negative equity (KLM,
2018). Furthermore, in 2019Q1 Transavia lost €78 million (Kraaijenbrink, 2019).
Running a LCC demands a lot of financial support and close monitoring as the market
is complex, saturated and evolving quickly (Graham & Shaw, 2008; CAPA, 2009;
Dobruszkes, 2013). Such a business model does not gel well with the overall Air
France-KLM group’s direction.
Poor Customer Experience
Every company receives negative feedback and KLM is no different. However KLM has
been given an average score of 5.6/10, lowered compared to the industry benchmark
of 6.1/10. Many complains about poor handling of erroneous charges, slow refunds
and over bookings (Hillebrand, 2018; Airline Quality, 2019; SkyTrax, 2020).
THREATS
Increasing Environmental Pressure and Taxes
KLM is aligned with the growing global warming concerns (AF-KLM Group, 2018).
However governments, airports and regulatory institutions respond to such threats with
blatant taxes, which are often used for unrelated initiatives instead of funding
sustainable energy research (Felix & Clercq, 2019). By 2021, KLM would be forced to
bear 4 layers of eco-taxes (KLM, 2018).
Overall Reduced Reliance on Air Travel
As mentioned earlier in Threat of Substitutes, availability of modern technologies has
reduced the need for business teams to travel abroad for work. Likewise, for leisure
travellers, there are plenty of travel alternatives available which are arguably more
affordable and less stressful to travel on (Granger & Kosmider, 2016).
316MKT Digital Marketing Portfolio (DMP) - 2021
316MKT Digital Marketing Portfolio (DMP) - 2021
Are you targeting Existing, New Customers or both?

How would you classify or segment your customer base?

Students should make use of Customer Targeting Tools

such as Persona Studies to find out key characterises
and emotional motivations to drive our marketing vision
and overall storytelling.

316MKT Digital Marketing Portfolio (DMP) - 2021

 1. Customer Profile Characteristics
2. Customer Value
3. Customer Lifecycle Groups
4. Customer Behaviour in response and purchase
5. Customer Multi-channel Behaviour
6. Customer Personas including psychographics

316MKT Digital Marketing Portfolio (DMP) - 2021

316MKT Digital Marketing Portfolio (DMP) - 2021
316MKT Digital Marketing Portfolio (DMP) - 2021
 Creating customer personas helps brings to life who
your existing customers are and what their motivations
are. Persona creation also helps to get buy-in across
your organization in helping to paint a picture and bring
to life your customer profiles.

Industry Practice: To create a series of personas, a majority of this work can

be completed by extracting existing data through your CRM system and
analytics and then build on this to create a profile picture of your existing
customers.

316MKT Digital Marketing Portfolio (DMP) - 2021

For an E-commerce Retailer, information you could consider
extracting from your CRM could include:

Male/Female Split – What is the percentage split?

Age profiling – Average age as well as being able to develop categories of age
groupings
Location/Address details – Percentage of customers who reside in the UK as
well as overseas
Purchase history – Build up a clearer picture on historical purchases, average
order value, trends in brand loyalty, products ordered by size
Method of purchase (e.g. credit card, debit card, cheque)
Route to purchase – Were purchases made through a search engine, email
newsletter, affiliate website, direct from the site or through the call center, i.e.
Mixed-mode
Frequency/Recency – Frequency of purchase?

316MKT Digital Marketing Portfolio (DMP) - 2021

316MKT Digital Marketing Portfolio (DMP) - 2021
316MKT Digital Marketing Portfolio (DMP) - 2021
316MKT Digital Marketing Portfolio (DMP) - 2021
316MKT Digital Marketing Portfolio (DMP) - 2021
Where does your Company fit in?

What Comparison Axis should you use?

• Price vs Quality
• Price vs Convenience
• Price vs Technology
• Value vs Service Quality
• Performance vs Usability
• Perceived Value vs Cost
• Hype vs Perception
• Practicality vs Style
• Tastiness vs Healthiness

316MKT Digital Marketing Portfolio (DMP) - 2021

 High Quality

NEW BRAND

Cheap Luxury
Affordable Premium

Low Quality
316MKT Digital Marketing Portfolio (DMP) - 2021
 There are four different types of measures to help you look
forward to the future offered by digital marketing:

1. Top-level broad goals to show how the business can benefit

from digital channels

2. Mid-long term vision to help communicate the transformation

needed in a larger organisation

3. Specific SMART objectives to give clear direction and

commercial targets

4. Key Performance Indicators (KPIs) to check you are on track

316MKT Digital Marketing Portfolio (DMP) - 2021

 Sell – Customer Acquisition And Retention Targets

Serve – Customer Satisfaction Targets

Sizzle – Wow Factor (Unique Value Proposition)

Speak – Engaging Customers

Save – Quantified Efficiency Gains

316MKT Digital Marketing Portfolio (DMP) - 2021

316MKT Digital Marketing Portfolio (DMP) - 2021
 Not in SMART Format In SMART Format
Acquire 5,000
new membership
Increase new membership sign-ups in Singapore
sign-ups by 50%
within the next 6-months
by using social media
marketing strategies and using weekly Facebook ads to
giving new members a joining promote the new revised
bonus. membership tiers and benefits
and offering a joining bonus to
new members.
316MKT Digital Marketing Portfolio (DMP) - 2021
 • Make sure your Campaign Goals align with Organisational Goals

• Once you have completed the KPIs, go back up to the big picture
and define a long-term vision for how digital will help the
organisation grow into the future, again aligned with organisational
vision

• You should set at least 1 SMART objective for each Artefact Set

• In a nutshell, objective setting is about alignment and integration

between the different sections of your plan

316MKT Digital Marketing Portfolio (DMP) - 2021

 • We will continue on SOSTAC Framework Part 2

• Remember to update your choice of Industry and

Company on the shared Google Sheet

• Those of you how are still unsure, drop me an

email or Blackboard message with your questions

316MKT Digital Marketing Portfolio (DMP) - 2021

316MKT Digital Marketing Portfolio (DMP) - 2021