MKT FPX 5410 Assessment 3 Digital Marketing Plan for Spokin’ Wheels

Student Name

Capella University

MKT-FPX5410 Digital Marketing

Prof. Name:

Date

Introduction

After creating a marketing mix and social media strategy for Spokin’ Wheels, the final component of our marketing strategy is a digital marketing plan. Our customer base is well-established through our two physical locations and continues to expand as our online presence grows. By revamping the company’s website and assembling a team to manage our social media platforms, we are poised and eager for ongoing growth. We have also established a presence on Facebook and Instagram to promote our brand to audiences nationwide. The ultimate focus for Spokin’ Wheels will be the SOSTAC framework for our digital marketing plan. This approach will enable us to analyze both internal and external factors affecting our business and competitors.

Situation Analysis

SWOT Analysis

Strengths

Mass retailers
Online competition
New entrants
Nationwide customers
Social media following
Brand recognition
New to online sales and service
Small business
Small staff
Established business
Strong team
Customer service

MKT FPX 5410 Assessment 3 Digital Marketing Plan for Spokin’ Wheels

A company’s strengths are considered internal factors that are controllable and known. Our team has already taken steps to revamp our website, establish a presence on Facebook and Instagram, and initiate the transition to a fully digital customer service team. Although we are new to online sales and service, our team has years of experience with our two physical locations and a solid understanding of our customers’ needs and preferences. We have conducted surveys to gather feedback on what our customers desire from our online presence. Additionally, Spokin’ Wheels is committed to becoming a more environmentally friendly company and aims to achieve a paperless operation within the next year. While this may seem minor to some, it represents a significant strength as it will digitize, streamline, and expedite our record-keeping and sales/service processes, ensuring that every transaction is smooth and efficient.

Weaknesses

Weaknesses are also internal factors within an organization, and every company has them, even successful ones. While some weaknesses can be viewed as opportunities, it is crucial to recognize that if not addressed, they can escalate into larger issues. For Spokin’ Wheels, we face certain disadvantages as a small business with a limited staff. Additionally, our inexperience in the online sales and service arena can be overwhelming. However, since these are internal factors, they can be managed, and Spokin’ Wheels can develop strategies to meet consumer needs in response to any negative feedback. To stay ahead, generating feedback surveys is an effective way to monitor customer satisfaction throughout their experience, whether in person or online. As we focus on the digital realm, some performance analysis measures we will monitor include:

MKT FPX 5410 Assessment 3 Digital Marketing Plan for Spokin’ Wheels

Unique visitors – who is visiting our website
Conversion rates – how many visitors become customers
Total number of site sessions – how often visitors come to our site
Repeat visits – tracking customers using cookies
Duration – how long visitors stay on the site
Popular pages – which pages attract the most attention
Subscription rates – how many people subscribe to our email list
Churn rates – tracking unsubscribes from our site
Click-through rates – evaluating the effectiveness of our paid web advertisements
Social media engagement – assessing whether our content is being shared and tagged

According to the literature, all the Key Performance Indicators (KPIs) listed above can be quantified and utilized as objectives that can be continuously measured and updated (Caffery & Smith, 2017, p. 571).

Opportunities

Opportunities for an organization are considered external factors, as they are beyond our control. However, in the digital landscape, opportunities can be vast if approached wisely. Since Spokin’ Wheels has already revamped our website and embraced social media, we are well-positioned to capitalize on these opportunities and expand our brand. We can leverage the internet to reach new, larger markets, offer new services, and form strategic alliances. By utilizing our social media platforms, we can encourage our followers to visit our website and potentially convert them into customers, whether for bicycle apparel and accessories, service packages, or new bicycles.

Threats

Just as digital opportunities are abundant, so too are the threats. New competitors, innovative products, lower-priced alternatives, and various other challenges will always arise. However, being aware of these threats and monitoring them proactively can help mitigate their impact. According to the literature, a defensive strategy to counteract threats is to leverage existing strengths.

With two physical stores, Spokin’ Wheels can leverage this advantage to inform local customers that they have the option to visit our store for personalized customer service or to utilize current customer testimonials on our website as a persuasive tool for potential buyers considering our brand. Keeping our website updated with accurate pricing, information, and schedules is essential to ensure that our customers are always informed. In my local area of Port Saint Lucie, Florida, there is one bicycle shop, Treasure Coast Cycle Werks, which appears to offer similar products and services to Spokin’ Wheels. They operate one physical location, a mobile bicycle repair van, and maintain a website at tccyclewerks.com (Shreve, S. n.d.). While Cycle Werks is our only local competitor, their website is quite generic and does not facilitate online purchases. They do have a Facebook page, Treasure Coast Cycle Werks, which has approximately 1,200 “likes” and seems to maintain an active online presence. Additionally, they have an Instagram account, tccyclewerks, with 745 followers, where they share similar content to their Facebook page. Despite their social media activity, they do not offer online sales or customer service options, requiring customers to visit the physical store or call for assistance.

PESTEL Analysis

Managing all aspects of a company can be quite challenging, but being aware of external factors is crucial for ensuring compliance and long-term success. “By analyzing the factors in the external environment, strategic leaders can mitigate threats and leverage opportunities. One common approach to understanding how external factors impinge upon a firm is to consider the source or proximity of these factors” (Rithaermel, 2019, p. 67). One effective method for analyzing these external factors is the PESTEL model, which examines the political (P), economic (E), social (S), technological (T), environmental (E), and legal (L) aspects surrounding the business.

Political
- Stay informed about riding and helmet laws
- Keep up to date with local events and promotions
Economic
- Offer leasing and financing options
- Maintain a diverse inventory ranging from affordable to luxury items and bicycles
Social
- Utilize Facebook and Instagram
- Maintain an engaging website
- Organize weekly ride events
Technological
- Ensure the website operates efficiently and can handle web traffic
- Transition to a fully online customer service model
- Provide digital “ride along” options
Environmental
- Promote a healthy and enjoyable lifestyle
- Commit to becoming a “green” company by transitioning to a paperless operation
Legal
- Maintain secure record-keeping for all customers
- Uphold the terms of any sales and service contracts
- Ensure compliance with warranty terms

External factors play a significant role in a company’s success, but they can be more challenging to assess and plan for compared to internal factors. Staying informed about political and legal developments in the industry should be a primary focus for the organization. While it is impossible to satisfy everyone, prioritizing attention and sensitivity can help mitigate potential backlash. Being adaptable to changes as they arise will also support any organization in thriving within its industry.

Objectives Using the 5 S’s of Digital Marketing Strategy

Short Term – < 1 year

Website redevelopment
Social media platform enhancement
Tracking website traffic and customer interactions

To begin with, our website will require a redesign to enhance user-friendliness. Once the new site is launched, we will need to appoint an online inventory specialist to keep prices and stock levels current, as well as to respond to customer inquiries. It is also vital that our website includes social media links on every page to encourage customers to follow us. The website will feature an FAQ section for quick access to useful information, real-time chat options with customer service agents for more detailed assistance, and virtual bots to address simple questions without the need to wait for a representative. We believe that Facebook and Instagram will serve as the best platforms to initiate our social media efforts. Since posts and videos can be shared simultaneously across both platforms, this will save time by avoiding duplicate content. Both platforms also provide selling opportunities, allowing us to post products with direct links to our website for purchase. Furthermore, Facebook and Instagram facilitate customer interaction and foster a community of cyclists. One method to track consumer spending habits is by enabling “cookies,” which record past purchasing behaviors. Cookies can be utilized in various ways to monitor consumer habits, including session cookies, persistent cookies, third-party cookies, and HTTP cookies.

Medium Term – 1 -3 years

Transition to a completely paperless operation
Implement QR codes
Introduce virtual ride-alongs (viewing only)
Aim to reach 100,000 followers on each social media platform

A key goal for Spokin’ Wheels is to achieve a fully paperless operation by the end of the fiscal year, starting with the digitization of all current records.

Introduction

As we transition to a paperless operation, we will also move all customer service representatives to online chat or phone call support. There is even the potential for customer service staff to work remotely, which could lead to additional operational savings. The popularity of virtual reality presents an exciting opportunity for our brand. With scheduled weekly rides for groups of cyclists, we could mount a camera on a rider’s helmet, allowing those unable to participate in person to experience the ride online in real time. In the future, we might consider developing an app that enables customers to track their personal statistics and engage in friendly competition with one another, all while promoting Spokin’ Wheels. Another viable idea for enhancing our digital marketing efforts is the use of QR codes. “Quick Response (QR) codes can add another layer to existing products and services by connecting a customer with online information, benefits, and experiences. Once you have the QR app, you can scan a QR code, which takes the visitor to a video clip, photo, article, or website” (Caffery & Smith, 2017, p. 66). By focusing on our specific products, the online realm will present endless opportunities for Spokin’ Wheels to highlight our strengths in the cycling industry and maintain a strong online value proposition.

Long Term – > 3 years

Customer retention and follow-up
Increase online sales by 50%
Triple the number of customer service representatives

Social media platforms play a crucial role in establishing an online presence, as the opportunities are virtually limitless. For instance, maintaining a Facebook business profile would enable Spokin’ Wheels to gain followers, which can help enhance our visibility. Encouraging customers to “check in” or tag us on their personal pages will generate brand awareness through word-of-mouth marketing. We could further promote these check-ins and tags by hosting an online contest. Other strategies for enhancing Spokin’ Wheels’ online presence include motivating customers to leave reviews on platforms like Google or Yelp, where many potential customers seek authentic feedback. Additionally, placing advertisements on third-party sites or major retail platforms is another effective way to build a robust online profile. We also plan to implement a combination of paid media, earned media, and owned media to engage our followers. Paid advertising, such as sponsored ads on Facebook and Instagram, is relatively cost-effective and can reach a large audience quickly. Once we start posting regular content, we hope our follower base will continue to grow and assist in promoting our brand.

Tactics, Actions, and Controls

Now that Spokin’ Wheels has a clear vision and defined goals, it is time to determine how to achieve these objectives. Tactics are the specific details of our strategy and serve as tools to implement our plans. Some of the tools in the tactical aspect include advertising, public relations, and email marketing. According to the literature, “there are ten types of tactical tools, and each one has online and offline variations” (Caffery & Smith, 2017, p. 591). Below is the Tactical Matrix that evaluates each tool across nine different categories.

References

AMEUR, I., SOUAR, Y., & MAHI, K. E. L. T. O. U. M. A. (2017, October 16). The impact of marketing mix elements on customer loyalty for an Algerian telecommunication company. Retrieved April 20, 2020, from http://marketing.expertjournals.com/23446773-15-302/

Bullock, L. (2019, October 25). Setting goals for your digital marketing. Retrieved April 13, 2020, from https://www.smartinsights.com/goal-setting-evaluation/goals-kpis/goals-for-your-digital-marketing/

Byrne, S. (2020, February 27). Council post: How digital marketing can help your local business grow. Retrieved April 13, 2020, from https://www.forbes.com/sites/forbesagencycouncil/2020/02/27/how-digital-marketing-can-help-your-local-business-grow/#1013f58115d7

Chaffey, D., & Smith, P. R. (2017). Digital marketing excellence: Planning, optimizing and integrating online marketing. Retrieved from https://ebookcentral-proquest-com.library.capella.edu

Edgar, T., Huhman, M., & Miller, G. A. (2015). Understanding “place” in social marketing: A systematic review. Social Marketing Quarterly, 21(4), 230–248. https://doi.org/10.1177/1524500415607453

Forrester. (2019, May 14). The new era of marketing strategy. Retrieved April 13, 2020, from https://www.forbes.com/sites/forrester/2019/05/14/the-new-era-of-marketing-strategy/#297c9e335ddb

Geeks for Geeks. (2019, May 8). How cookies are used in a website? Retrieved from https://www.geeksforgeeks.org/cookies-used-website/

Kar. (2019, May 2). The 7 Ps of services marketing. Retrieved April 13, 2020, from https://www.business-fundas.com/2010/the-7-ps-of-services-marketing/