Marketing Strategy and Practice Report: Go Media Limited Analysis

This report offers a comprehensive analysis of Go Media Limited, a major outdoor media provider in New Zealand, focusing on its marketing strategies and financial performance. It begins with an executive summary outlining the report's objectives, key findings, and limitations, followed by an introduction that establishes Go Media Limited's market position, mission, and competitive landscape. The report then delves into a PESTEL analysis to examine the political, economic, social, technological, and environmental factors influencing the company. It explores Go Media Limited's marketing strategies, including product differentiation and direct marketing approaches, and provides recommendations for future B2B and B2C marketing initiatives. Furthermore, the report assesses the company's financial metrics, such as KPIs, net profit, customer lifetime value, and stakeholder value, to evaluate its performance and competitive advantage. The analysis incorporates journal references and concludes with a summary of findings and recommendations for enhancing Go Media Limited's market position and future growth.

Running head: MANAGEMENT
Marketing Strategy and Practices
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Executive Summary:
The aim of the report is to provide an insight into Go Media Limited and put forward a brief
analysis of the company in context of industry analysis, marketing strategies and positioning,
recommendations for the future marketing in relation to business to business (B2B) and business
to customers (B2C) and financial metrics that includes KPI, shareholder’s value, net profit, ROI,
ROM and the life time value of customers that enhances competitive advantage of the firm. The
audience for this particular business report has been the clients of Go Media Limited across New
Zealand. The key findings of the report have been the stronger brand presence and how the
company is successfully creating nationwide billboard and bus advertising. Some of the other
findings have been the world class digital billboard and bus advertising created by the company.
The report also provides future recommendations on the social media marketing and cost focus
strategy that defined the future growth of the company. The study also analyzes the financial
metrics of Go Media Limited with a focus on the KPI, Net Profit, Customer Lifetime Values and
the Stakeholder Value with an impact on the performance. The report also provides an insight
into how Go Media Limited uses the product differentiation and cost focus strategy in reaching
larger base of customers. The limitations of the report have been the availability of limited
academic literature on the industry analysis of outdoor advertising, marketing practice, annual
report and the company website. The content of the report has been supported by journal
references.

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Table of Contents
Introduction:....................................................................................................................................3
3 a. PESTEL Analysis.....................................................................................................................4
3b.(i). Two Marketing Strategy.......................................................................................................9
3b.(ii). Recommendations for Future Marketing Related to B2B and B2C.................................13
3c. Financial Metrics.....................................................................................................................15
Conclusion:....................................................................................................................................19
References:....................................................................................................................................21

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Introduction:
The report aims at providing a review of Go Media Limited from perspective of industry
analysis, marketing strategies and position, future marketing related to the business to business
(B2B) and the business to customers (B2C) and the financial metrics including KPI, net profit,
shareholder’s value, ROM, ROI and the customer life time value for enhancing the competitive
advantage of the company. The company is one of the biggest independent providers of outdoor
media in New Zealand (gomedia.co.nz, 2019). They represent one of the progressive suppliers
for the direct clients and the agencies who seekmedia solutions within the New Zealand. The
mission of the company lies in delivering highly personalized and exceptional media solutions to
the clients thereby ensuring that they receive exposure like a premium brand. Go Media operated
dedicated a direct and agency-based sales team based in Christchurch, Auckland and Palmerston
North. This ensures a stronger national and local presence, thereby allowing in the creation of
perfect campaign for each of the individual clients. The company aims in becoming a preferred
company for both the agencies and the direct clients and also in becoming employer of the
choice for its superior sales and the support team. The company operates from New Zealand and
values flexibility, innovation, commodity focus and fun.
The company designs billboards of varied sizes and also undertakes bus advertising. The
selected billboard sites includes Auckland, Blenheim, Bay of Plenty, Dannevirke, Christchurch,
Gisborne, Dunedin, Hamilton, Invercargill, Levin, Hawke's Bay, Nelson Airport, New Plymouth,
Masterton, Palmerston North, Otaki, Rotorua, Picton, Ruapehu, Wairarapa, Taupo, Wellington,
Wanganui, Whangarei and West Coast (gomedia.co.nz, 2019). The company resorts to bus

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advertising as it offers stronger recall and a higher exposure. Besides, people can easily
remember bus advertising and change their brand preferences as and when required.
The competitors of the company include APN Outdoors, NZ Outdoor Advertising
Services and Billboards New Zealand. APN Outdoors provides media coverage from the
billboard site of Whangarei to Invercargill. On the other hand, NZ Outdoor Advertising Services
aids advertisers in booking bus, billboard, shelter, campaigns of the shopping centre and airport.
Billboards New Zealand also aids outdoor as well as billboard advertising across New Zealand.
The financial position of the company is marked by substantial profit that contributes to
the growth and reputation of the country.
The report commences with an industry analysis through a PESTLE framework. The
report also focuses on the marketing strategy taking into account the product differentiation and
the direct strategy for marketing by focusing on both the positive and the negative aspects. The
report also puts forward recommendations on the future marketing that is related to the B2B and
the B2C along with a discussion of the financial metrics.
3 a. PESTEL Analysis
Political:
In the last few years, the outdoor advertising industry is estimated for witnessing an
enhanced political interest since outdoor advertising campaign has been undertaken by the
political groups as a means for delivering thought, believes and ideas(Cheung& Leung, 2017). In
this regard, the positive viewpoint is that the political parties in New Zealand work in
coordination with the local and the central government and also the public for ensuring

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supportable use of the resources and agreement in relation to the licensing of the natural resource
and the other process. Political support is necessary for the evolution of the industry structure in
making possible growth. The negative aspect lay in terms of guidelines where the government
ensured that all the plans and the policies related to the resource availability and environmental
and energy concerns needed an intervention of the local and the central government.
It is to be noted that the billboards and outdoor advertising service industry is in the
growth stage of economic life cycle (Crain, 2019). The industry expands at a faster pace than
general economy and it strengthened its position within entire advertising market through
adoption of newer technology and by exploration of newer locations. For example, the industry
value addition that measured contribution to economy is expected to have projected growth of
about 7.5 percent over 10 years that would even exceed the projected growth of the GDP of
Australia. In fact, the rate of the industry expansion have been underpinned by the solid growth
in the demand, buying media agents and an increased share of total advertising market due to the
deviation from the traditional advertising related to broadcasting.
Economic:
The economic situation is considered comparatively better in New Zealand with
economical rate of product, lower rate of inflation and unemployment drove the economy
towards a positive growth (Kelsey, 2015). However, in recent times, the central bank of New
Zealand reduced the rate by a half percent based on the argument that the economy faces
recession and the GDP of the country fell by 0.2 percent in second quarter thereby placing the
country in the first recession of the decade (Ford& Wood, 2015)

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The positive viewpoint in this regard is that recession caused an increase in the prices
which also had a crucial impact on the outdoor advertising industry where the companies began
to cut down on the spending and outdoor advertising seemed to be the first and the easiest option
by financial departments. Although this seemed like wise move but it reality it led to the drop in
sales as this created a gap between the brand and the consumer. Hence, reducing the cost of
advertising also causes reduction in the sales and loss of the newer customers. Although it
apparently seemed like a good thing but the negative aspect of this step lay in straining the
outdoor advertising industry. For example, companies demand for increasingly cheaper ads
might not allow Go Media Limited in meeting up to its needs. In such instances, companies turn
are only left with the option of turning to the in house advertising for producing own advertising
at much lower cost as well as budget.
Social:
New Zealand is a multicultural society that welcomes people from across the world and
has a self reliant culture. The society of New Zealand embraces the products and brands
portrayed by advertising in order to stay connected and updated regarding the wider world.
Therefore, companies try to draw the attention of the New Zealanders by carrying out
advertisement of brands.
The social structure of New Zealand has been quite wonderful with consistent demand
for the economic system (Murray, 2017). However, the country depends on the other countries
for getting newer technology and spends fewer amounts on the research and the development.
The country has a stronger banking system and welcome foreign direct investment. The countries
also have 100 percent literacy rate and a higher life expectancy. The positive viewpoint lies in

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the specific emphasis of the government tourism and thereby providing facilities for tourist. This
has encouraged companies to opt for outdoor advertising in the form of billboards and bus
advertising (Toma, 2015). The country itself however has a very less population spread across
the cities. These acts as a negative aspect for outdoor advertising as there are not many people to
observe in absence of tourism. For example, there are many tourists who prefer bus advertising.
It has been found that people more likely remembers moving ad giving the bus advertising the
power of changing the minds of the people and cause a shift in the brand preference.
Technological:
The technological factors have immense impact on the society both socially,
professionally and academically. In fact technology has become part of the day to day life
(Muzellec& O'Raghallaigh, 2018). Nevertheless, it also comes with its own flaws and perks. The
positive aspect of technology lies in its reach to the various consumers. Technology has
enhanced the chance of targeting wider group of consumers and forms of advertising to choose
from. Outdoor advertising has been a boon of technological advancements and it also allows in
tracing and analyzing the customers who are engaging or watching with the brands (Tan et al.
2018). In fact technology helped in revitalizing the out of home advertising with the digitized
outdoor advertising and the personalized billboards that helps in delivering relevant messages to
the targeted audience at the appropriate time. The negative view point in this regard is that the
more the dependency on the technology, the more competitive it becomes in order to grab the
attention of the audience. The entire human races have become reliant on technology and hence
have opted for campaigns that elaborated the generations of the cyber world which is not only
destroying us mentally but also socially. Technology has taken over rapidly and has made its

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presence felt everywhere. Currently it has become the norm of the city especially with the
present generation. For example, technology has provided the option of digitizing the outdoor
advertising be it on the billboards or the bus advertising which has helped in better grabbing the
attention of the people.
Environmental:
As far as the environment in New Zealand is concerned, it is found to be linked with the
economic performance of the country as significant. The country has been located close to 900
kilometers from Australia and is believed to have a specific ecological system (Mitu& Uta,
2018). The positive viewpoint in this regards has been the educated class of the population who
remained aware of changes in the weather and have remained ready in getting rid of the pollution
and hence adopting means for keeping away from pollution in an effective manner. This has
been true for the outdoor advertising as well. People have designed such advertising through
adoption of latest technology in order to ensure easier dealing of garbage and cause lesser
pollution to the atmosphere. Besides, the country has also implemented newer initiatives in
keeping it pollution and dust free. In fact, it be said that the advertising industry have become too
environment friendly. The negative viewpoint in this regard has been the additional initiatives
that Go Media Limited needed to undertake in order to ensure that the clients are provided with
environment friendly advertising stuffs. In other words, the outdoor advertising industry is
switching towards environment friendly options(Zademach & Musch, 2018). For example,
outdoor advertising provider are increasing moving away from the analog methods of printing
towards the digital methods through the use of the inkjet printing technology that allows for the
larger printing surfaces where the billboard skin gets assembled in a single piece. This would
also reduce the usage of the black paper substantially.

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Legal:
It is to be noted that the government of the country changes in every three years with the
new government making newer rules and regulations in order to ensure a lower crime rate. The
government of New Zealand has curbed corruption from society so that people are able to enjoy
basic facilities. In this regard, the positive viewpoint is that the country has also ensured business
freedom for companies like Go Media Limited for not only expanding the business and also
flourishing it in the society. While the negative viewpoint lies in abiding by the advertising code
of ethics before putting it up as an outdoor advertisement. For example, all outdoor
advertisement put across by Go Media Limited abides by the Advertising Standards Code for
ensuring that each of the advertisement represented responsible advertisement (asa.co.nz,
2019).Besides, the company also makes sure that the outdoor advertising are decent, legal,
truth, honest and respect principles of the fair competition in order to ensure the trust of
public in advertising.
Summary on Positioning of the Company:
The more or less stable political scenario of the country directed the Go Media
towards a growth curve. However, the company might suffer in terms of profit as recession
forced the company in reducing the price of outdoor advertising. The company is also
encouraged to take up outdoor advertising as multicultural society ensures wider acceptance
of the brands. Go Media Limited is boosted by the emergence of technology that allows it in
digitizing the outdoor advertising. The company has also opted for eco friendly means of
advertising that have boosted its growth in terms of revenue. Go Media has enough freedom

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for business expansion in New Zealand but the company needs abide by the code of ethics
while undertaking advertising.
3b.(i). Two Marketing Strategy
As found from the website of Go Media, New Zealand, it is an outdoor media solution
provides premium brand exposure to the direct clients and agencies through different types of
advertisements. The media company uses product differentiation strategy to address the needs of
the clients for reaching out to a larger customer base. As stated by Baker (2016), marketing
strategies refer to the long term approaches of firms for achieving sustainable competitive
advantage by achieving the goals and objectives of the firms through establishing a connection
between the firms and the customers. Marketing strategies are important for enhancing the
performance and achieving its goals through the transformation of its intangible and tangible
resources for creating value for the customers and competitive advantages in the market (Blythe
& Martin, 2019).
Product differentiation:
Go Media uses two types of products, digital billboards and printed advertisements that
are hung on the buses. Hence, one product is digital and the other is moving advertisement
posters. Thus, it can be said that differentiation strategy is used by Go Media as a primary
marketing strategy to reach out to a larger target audience. As stated by Yoo (2018), product
differentiation is an effective marketing strategy which is beneficial for the firms in determining
why customers should buy their products and what are the features that make the products or
services standout from the competitors. Product differentiation strategy helps the firm to charge
different prices to different customer groups. In this case, Go Media has chosen two types of

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products, digital billboards and printed campaigns put on a bus. The digital billboards are
beneficial as those are installed at the prime locations as well as at the road sides (Mollu et al.,
2018). It also has shorter lead hours as the advertisements are sent electronically to the screen
which are displayed in vibrant LED screens. It catches the attention of the customers who travel
through those places. Digital boards are also convenient in displaying different ads for different
products in different time slots as it is dynamic and saves costs of printing multiple
advertisements, which would be static. The outdoor displays are generally put up on display for
two weeks for optimizing the exposure. However, the companies can choose time periods for ad
display and for any special offer, the digital advertisement can be changed easily to highlight the
special offer. It reduces the budget wastage. It also offers opportunities for creativity (Jere &
Dutuma, 2018). Thus, by using digital billboards in major locations, Go Media is able to draw
the attention of the customers to the products and services of the clients.
On the other hand, Go Media prints large posters and printed advertisements and put up
on the buses. It has contracts with Auckland Skybus as it offers the maximum impact and utilizes
transit media advertisement mode. It also has contracts with Bay of Plenty buses. Through the
buses, Go Media can target the audience across the cities. As stated by Liu et al. (2016), buses
under transit media category offer maximum exposure and strong recall effect. Every week more
than 2 million New Zealanders are exposed to the bus advertising (gomedia.co.nz, 2019).
Moving ads are easier to remember and they also have impact in shifting the brand preference.
Go Media puts up the large, creative and colorful posters on the sides and back of the buses to
have maximum impact on the customers. As the buses travel in different and extensive routes
across the cities, it is beneficial for attracting crowds of different regions in a very effective
manner (Zhang et al., 2015).