Task 1 Scenario
The Scenario
Maria Garcia was born in the Guanacaste region of Costa Rica, where she worked on her family’s cacao farm. Maria worked on all aspects of the farm, from planting trees and harvesting the cacao pods by hand to managing the tempering process and, eventually, the overall business. Maria and her family believe that the Garcia Cacao Farm is a wonder of nature. The cacao trees nurture the surrounding environment providing shelter to the howler monkeys, sloths, and a variety of animals and nature, not to mention creating a thriving community. On this farm, Maria learned the value of hard work and the importance of treating families who work on the farm and the land with care and respect.
After attending business school in the United States and serving an apprenticeship with a chocolatier in France, Maria decided that it was time to take her family's wonderous cacao and make her own artisan chocolate. With the support of her family, Maria opened Octava Maravilla Company (OMC), which translates to mean eighth wonder chocolate, in Costa Rica and the United States. Like the farm Maria grew up on, the vision for OMC is to help people find joy in unexpected ways.
In the first year, OMC focused on developing signature chocolate bars: ChocoLuxe Dark and ChocoLuxe Milk. In keeping with its appreciation of nature, OMC collects cacao bean shells and fallen leaves to make the paper for its bars. The packaging is made of paper which is 80% cacao products.
After seven successful years of growing OMC year over year, the business currently sells its chocolate bars online, in its flagship shops in Miami, Florida, and Escazu, Costa Rica, and in small artisan shops both in Costa Rica and the United States, using the packaging and promotional activities that were established when the business first began. OMC is pleased with its brand guidelines and believes that following the parameters in the brand guide should help OMC realize two important goals: building awareness and communicating in ways that reach and resonate with the target audience.
Product Portfolio
ChocoLuxe - Dark Chocolate Bar 3 oz.
ChocoLuxe - Milk Chocolate Bars 3 oz.
Campaign Challenges
As OMC considers the future, it needs to address two challenges:
- Revisit the communication and marketing initiatives used to build awareness through engagement and storytelling, including reviewing the marketing campaign budget and how it is allocated.
- Determine the ideal package design based on the overall marketing communication strategy and brand positioning.
To address the first challenge, OMC has partnered with a design agency to consider options, using a creative brief to ensure that the options support the brand and will allow OMC to connect with more like-minded consumers who appreciate quality, sustainably sourced gourmet chocolate and the stories of those producing these artisanal products.
To address the first challenge, OMC will take a hard look at its budget and the communication channels it uses, including website updates and maintenance, email marketing, social media advertising, events, and options to influence purchase decisions and brand awareness while customers are in stores, as well as any new activities when finalizing the upcoming budget.
To address the second challenge, OMC will take a good look at its current packaging and consider some possible options using a creative brief to ensure that any considered options support the brand and will allow OMC to connect with more like-minded consumers who appreciate quality, sustainably sourced gourmet chocolate and the stories of those producing these artisanal products.
Campaign Budget
OMC devotes 10% of its gross revenue of $1 million to integrated marketing communications efforts. These efforts include a variety of tactics, including the subset of initiatives listed below, which includes the estimated costs for each tactic, activity, and/or channel. As noted in the campaign challenges section, this campaign budget is under review to ensure the most effective and efficient allocation of dollars to reach the target audience.
Marketing Communication Channels and Activities Budget Allocation
Email Marketing $2,000
Paid TikTok Advertising $4,000
Facebook $1,000
Instagram $3,000
Pinterest $3,000
Farmers’ Markets/Festivals $4,000
Website $2,000
In-Store Merchandising $1,000
Package Redesign $5,000
Total $25,000
Full Answer Section
Reimagining Communication and Marketing:
OMC's current marketing budget, allocated at 10% of gross revenue ($100,000 annually), requires careful review to maximize impact. The existing distribution across channels needs reassessment, particularly given the target audience's likely preferences.
A. Current Channel Analysis:
- Email Marketing ($2,000): Cost-effective for nurturing existing customer relationships and promoting special offers. Needs improvement in segmentation and personalization.
- Paid TikTok Advertising ($4,000): Potentially valuable for reaching younger demographics, but content strategy needs refinement to align with OMC's brand values and storytelling approach.
- Facebook ($1,000): Limited budget allocation suggests a lack of focus. Facebook can be powerful for community building and targeted advertising.
- Instagram ($3,000): Visually driven platform ideal for showcasing the beauty of OMC's chocolate and the story behind its creation. Content should emphasize high-quality photography and videography.
- Pinterest ($3,000): Effective for reaching a design-conscious audience and sharing recipes and inspiration. Content should be visually appealing and link back to OMC's website.
- Farmers' Markets/Festivals ($4,000): Excellent for direct customer interaction and building brand awareness. Needs a clear strategy for data capture and lead generation.
- Website ($2,000): Crucial hub for online sales and storytelling. Requires updates to enhance user experience and showcase the brand's values.
- In-Store Merchandising ($1,000): Important for influencing purchase decisions at the point of sale. Needs creative displays that reflect OMC's brand aesthetic and sustainability focus.
- Package Redesign ($5,000): Essential for communicating OMC's brand story and attracting the target audience. The redesign should be aligned with the overall marketing communication strategy.
B. Proposed Budget Allocation & Strategic Recommendations:
- Prioritize Storytelling: Content across all channels should emphasize the Garcia family's story, the sustainable farming practices, and the artisan chocolate-making process.
- Enhance Website Experience ($10,000): Invest in website redesign to improve user experience, optimize for mobile, and integrate e-commerce functionality seamlessly. Create dedicated sections for storytelling, recipes, and behind-the-scenes glimpses of the farm and production.
- Strategic Social Media ($25,000 Total):
- Instagram ($12,000): Focus on high-quality visuals and engaging stories. Run targeted ad campaigns to reach specific demographics interested in sustainable and gourmet food.
- Facebook ($8,000): Utilize Facebook groups and targeted advertising to build community and drive traffic to the website.
- Pinterest ($5,000): Create visually appealing boards showcasing recipes, gift ideas, and the story behind OMC.
- Experiential Marketing ($20,000): Increase investment in farmers' markets/festivals and explore partnerships with gourmet food retailers for in-store tastings and demonstrations. This allows for direct customer engagement and brand building.
- Public Relations & Influencer Marketing ($20,000): Engage food bloggers, influencers, and journalists to generate positive reviews and create buzz around OMC's products and story. Develop relationships with media outlets focused on sustainability and ethical sourcing.
- Email Marketing ($5,000): Invest in email marketing automation to segment audiences and personalize messaging. Offer exclusive content and promotions to subscribers.
- In-Store Merchandising ($10,000): Develop eye-catching displays that highlight OMC's sustainability practices and brand story. Use eco-friendly materials and incorporate interactive elements.
- Contingency/Emerging Opportunities ($10,000): Allocate a portion of the budget for unforeseen opportunities or emerging trends in the market.
II. Package Design Strategy:
The package redesign should be a key component of OMC's marketing communication strategy. It should:
- Reflect Brand Values: Emphasize sustainability, quality, and the artisan nature of the chocolate.
- Tell the Story: Incorporate elements of the Garcia family's story and the farm's unique ecosystem.
- Appeal to Target Audience: Resonate with consumers who appreciate gourmet chocolate and ethical sourcing.
- Be Functional and Sustainable: Use eco-friendly materials and ensure the packaging protects the chocolate and is easy to open and reseal.
Creative Brief Considerations:
The creative brief for the package redesign should include:
- Target Audience: Detailed description of the ideal customer, including demographics, psychographics, and purchasing habits.
- Brand Positioning: OMC's unique selling proposition and its desired image in the marketplace.
- Key Message: The core message the packaging should convey.
- Design Aesthetics: Desired visual style, including colors, typography, and imagery.
- Material Specifications: Requirements for sustainable and food-safe materials.
- Budget: Allocated budget for the package redesign.
Conclusion:
By implementing this strategic plan, Octava Maravilla can effectively communicate its brand story, connect with its target audience, and achieve sustainable growth. The focus on storytelling, experiential marketing, and a compelling package design will differentiate OMC in the competitive gourmet chocolate market and solidify its position as an eighth wonder.