Evaluating Alessi's Integrated Marketing Communications Strategy

This report delves into how Alessi, the Italian design company, implements Integrated Marketing Communications (IMC) to promote its brand and gain market share. It begins with an introduction to Alessi, its history, and its position in the market. The rationale of the study highlights Alessi's niche market focus and the potential of IMC to enhance its market share. The literature review provides a comprehensive overview of IMC, its benefits, and its impact on brand equity and consumer perceptions. The report then examines Alessi's mission, design approach, and market dynamics. The core of the analysis focuses on how Alessi utilizes IMC tools and techniques to communicate its brand values, build brand image, and influence consumer behavior. The research objectives include studying the IMC concept, analyzing Alessi's IMC implementation, determining its success in brand promotion, and investigating its impact on market share. The report synthesizes the findings from the literature review and applies them to Alessi's specific context, offering insights into the effectiveness of its IMC strategy and its contribution to the company's market performance. The conclusion summarizes the key findings and provides recommendations for optimizing Alessi's IMC efforts.

How does Alessi implement Integrated Marketing Communications (IMC) to help promote
the brand and attain market share?
Introduction
Alessi is an Italian company that was founded in 1921 by Giovanni Alessi. Initially, it was just a
workshop that made the small objects from wood and metals and these objects were used in the
houses and the kitchen. The brand is famous for delivering a very high quality of the products
and since a century, the company has gradually developed to become one of the lading factories
with Italian design. The company has become capable of applying the expertise and excellence
in the field of design management to the various types of products. This company has always
been open to change and has grabbed all sort of international opportunities. This company has a
strong bond with the cultural background and traditions of its area.
Rationale of study
The company Alessi is a mid-range brand that focuses on a niche market. It serves that group of
customers who like the cultural and aesthetic designs. It sits in the middle of the range. The more
expensive brands are Christofle and there are other cheap mass production brands. Alessi sits in
the middle. There is a gap that Alessi exploits in order to gain market share. One of the efforts
that the company puts to fill this gap is that it is implementing the integrated marketing
communications plan which has the potential to help the company in gaining the market share.
With the IMC tools and techniques, the company has been able to sell itself in the market. Alessi
has been very much involved in promoting its products by using the IMC so it is required that the
effectiveness of the same gets evaluated and the company can know that how much the plan has
been effective and useful so far.

With the research that will be carried out, Alessi can gain further market share by expanding
their range to more of a mass produced range, something that can be used for everyday use.
The following research has the following objectives:
1. To study the IMC concept and determine its usefulness for the companies.
2. To analyze the implementation of IMC by Alessi.
3. To determine the success of IMC in promoting Alessi as a brand.
4. To investigate the impact of IMC on the market share of Alessi.
Literature Review
This section looks into the previous studies conducted regarding Integrated Marketing
Communication. IMC is defined “an on-going, interactive, cross-functional process of brand
communication planning, execution, and evaluation that integrates all parties in the exchange
process in order to maximize mutual satisfaction of each other’s wants and needs” (Duncan and
Mulhern 2004, p. 9). IMC is evolving as a strategic management process that involves the
interweaving of activities and procedures crossing traditional departmental boundaries,
employing the knowledge and skills of specialists and nonspecialists alike to bring together all
responsibilities for communication (Ratnatunga and Ewing 2009). Furthermore, it is a process
driven by, and responsive to, customer data, understanding stakeholder perceptions about
the brand, the role of traditional and emerging channels, and recognizes that increased brand
equity reflects the outcome of efficient and effective customer and stakeholder relationships
(Burmann, Jost-Benz, and Riley 2009). IMC plays an important role in contributing to the
building of brand equity, which is the stored value, built up in a brand, used to gain market
advantage (Srivastava, Fahey, and Shervani 2000).

There are several benefits associated with developing an IMC capability. It helps firms focus
their resources (time, effort, and financial) against “best” customers and prospects
via “outside-in” thinking, which starts with the customer rather than determining what is to be
said and then looking for prospects to whom to say it. It is designed to bring all the marketing
and communication elements into a credible, persuasive, meaningful, and measurable process
that can be evaluated for effectiveness and efficiency. It consequently encourages the
cohesive coordination of all the firm’s communication activities into a whole via a common
firm-wide framework. Finally, it facilitates the effective use of external resources and internal
capabilities to achieve maximum results (Ratnatunga and Ewing 2009).
IMC is valuable because it confers many benefits in communication (overall effectiveness, lower
costs, more targeted to stakeholder groups); this explains why many companies are investing in
IMC (Duncan and Mulhern 2004). IMC is on one hand embedded within organizations; on the
other, its deployment and implementation is episodic. Hence, the configuration of activities in
IMC for each organization is different and potentially unique. However, it is believed best
practice IMC could be imitated. This may be expensive for competitors (diseconomies of
duplication; Dierickx and Cool, 1989). Consistent with Eisenhardt and Martin (2000) IMC
may not be a source of sustainable competitive advantage but is likely to provide a series of
temporary advantages. Again it is noted that IMC may be substitutable by various configuration
and strategic management orientations with specific reference to communication. It is believed
this substitutability is not complete but adequately serious to caution us from hypothesizing that
IMC is a source of sustainable competitive advantage. It is further noted that capabilities differ
from physical resources in that often their efficacy increases with regular deployment and use (as
opposed to depreciation) (Makadok, 2001).

The IMC supporters consider the concept as a revolution meant to enhance marketing efforts and
create brand equity (McGrath, 2005). The branding literature suggests that the integration of
marketing communication programmes can form consumer perceptions of the product or service
and can help to create different attributes of brand image (Keller, 1993, 2009; Anantachart,
2004). In particular, IMC can influence and control the meanings linked with the brand, and
create and reflect the brand image, thus influencing the way consumers perceive the product
(CobbWalgren et al., 1995). As brand image is shaped in the consumers’ memory through brand
associations, the consumer links the brand to both favourable and unfavourable concepts (Keller,
2003). In addition, IMC can create brand meaning in the consumers’ minds by strategically
linking tangible and intangible brand associations with certain properties (Keller, 2009). The
strength of brand associations from communication effects will actually depend on the
integration of brand identities (i.e., brand name, logo, and symbol) within the supporting
marketing programmes (Keller, 1993).
Specifically, Kandampully and Suhartanto (2000, 2003) suggested that, together with other
marketing variables, communication can directly affect the hotel’s image. Moreover, consistent
message may create a stronger image suggestion in consumers’ memory than a
message that delivers conflicting or not highly consistent information. Despite the medium that
message is delivered through (i.e., print, television, Internet, or radio), if the message is
consistent, it will enhance the possibility that the brand’s intended image is retained by
consumers (McGrath, 2005). Therefore, we can conclude that the customer will perceive a strong
brand image when he perceives a consistent message through different communication tools
(Dewhirst and Davis, 2005; Keller, 2003; Madhavaram et al., 2005).

In addition, Israeli et al. (2000) reported that repetition in marketing communications could be a
signal or indicator of quality and, moreover, significant in creating and maintaining customer
loyalty. Similarly, Keller (2009) suggested that IMC can stimulate intense and active consumer-
brand loyalty relationships by facilitating a strong connection between customers and the brand.
As McGrath (2005) noted, if consumers are exposed to consistent brand messages, these
messages can help maintain brand loyalty. On the other hand, if consumers receive inconsistent
messages, they can have negative impact on the initial learning about the brand (Ehrenberg et al.,
2002). When focusing on this relationship in the hotel context, Imrie and Fyall (2000) suggested
that hotel’s promotional mix strategies can ensure customer retention and loyalty. Similarly,
Hennessey et al. (2010) pointed out that the purpose of many tourism marketing communication
campaigns is to build-on or change perceptions of customers in order to influence their
behavioural intentions. Therefore, from an individual customer perspective, one of the most
important goals of IMC is to effectively generate and maintain brand equity through
encouragement and reinforcement of brand relationships with the customers and prospects
(Anantachart, 2004).
The rise of advanced ICT has dramatically changed advertising and marketing communication
planning in general, and IMC planning in particular (Peltier et al., 2003). The literature has
evidenced several denominations which reflect the synergy between the ICT and IMC, such as:
(1) interactive integrated marketing communication (Peltier et al., 2003), (2) integrated Web-
based marketing communication (Barker and Angelopulo, 2005), (3) online marketing
communications (Jensen and Jepsen, 2008), (4) integrated online marketing communication
(Gurau, ˘ 2008), and (5) interactive marketing communications (Keller, 2009). The basic idea of

these approaches is the interactive nature of new media and the creation of personalised
messages consistent with the communication campaign theme (Peltier et al.,
2003).
Furthermore, the literature supports the essential role of ICT on company productivity and
improvement of business operations (Law and Jogaratnam, 2005). The implementation of new
technologies in companies results in notable advantages in management knowledge (Li et al.,
2012), competition, increasing profitability, cost reduction, efficiency, and information-sharing
(Lee et al., 2003). In addition, Gilbert and Powell-Perry (2001) reported that the Web is an
effective marketing relationship tool, while Lee et al. (2003) found that, according to hotel
managers’ opinions and beliefs, technology can also enhance the quality of service, contribute to
lifting the overall image of the company, and encourage customer loyalty.
About the company
Alessi is an Italian company that manufactures the designer tableware and kitchenware globally.
Giovanni Alessi started this company in 1921 as a workshop that made the hand crafted items
only (Hill, 2012, pg.195). Then in 1950, the management of the company was taken up by Carlo
Alessi and he started doing this work with the help of freelancers who designed the work and the
items for this company. The aspect of taking the services of freelancer designers to make the
products of this company became one of the pivotal aspects of the operations of this company
and this thing also differentiated this company from the other companies in market (Pasca,
2014). Thus, the philosophy of Alessi’s organization is based on the traditional craftsmanship
and their designs. In the present world too, the company has collaboration with almost 200
external designers and architects who continuously supply their ideas and this is known as an

“open innovation” strategy (Hill, 2012, pg.195). The core business of the company lies on the
manufacturing of stainless steel.
Mission of Alessi
‘Alessi’s mission is now one of translating its quest for the most advanced cultural, aesthetic,
design and functional quality into mass production. Designer products are the result of the
constant reconciliation of art and industry, of the “Immensity of Creative Potential” and the
needs of the market. The company is committed to a design approach in which the most
advanced expression of international creativity is always balanced against the desires of the
general public. Alessi has been described as a “Dream Factory”, which uses its products to make
people’s dreams come true, providing them with the Art and Poetry that they seek.’((Source:
http://www.alessi.com/en/company/about-us)
Design at Alessi
The design of the products of the company is at the heart of its business. With the network of
talented designers and architects, the company develops sophisticated process for finding,
commissioning and developing the new designs for manufacturing the designer kitchen and
tableware. The business model of the company focuses on the innovation (Lees-Maffei & Fallan,
2013). The entire design mechanism and the production of the products of this company is driven
by innovation only. The designers of the company inspire it to innovate and thus it has pioneered
the use of new materials in the kitchen and tableware. Particularly, the company makes extensive
use of the plastics that are in high-quality contexts.
Market of Alessi

The market in which Alessi operates requires novelty for selling its products. This is because, the
market of consumers for this company is very demanding. The volumes of production is low but
the demand is more in terms of manufacturing of the good quality products (Colombi, 2015).
Thus, the company has the pressure of find the suppliers who can make the goods and the
components of the products as per the specifications and needs of the consumers in the market.
Currently, there are almost 2000 items in the catalogue of the company that it sells and many of
them are manufactures ate the Italian factory of the company (Colombi, 2015). There are
different ranges for the product of this company:
 One is the Officina Alessi collection that comprises of the products that are sophisticated,
experimental and innovative. Also, these products are small-scale and their production is
also limited.
 The second is the ALESSI collection in which the mass produced goods are included and
the premium materials are used with high quality manufacturing and the use of
sophisticated design.
 The third is the A di Alessi collection in which the products are manufactured in huge
volume and the prices for them are comparatively less.

Integrated Marketing Communications
The organizations have to promote the brands and the products so that the end-users buy the
products and they also outshine the competitors in the market. This helps the company in
surviving in the long run. With the promotion of products and brands, the awareness among the
people regarding the products increases ad thus, eventually the sales of the products gets
increased too. This makes the company earn higher revenue for itself (Morrison, 2016). Brand
communication is the first and foremost thing for the integrated marketing communications,
hence it is important to understand it. The process of brand communication involves all the
initiatives that the companies take for making their products and services popular among the end-
users. In this, the companies identify that who are the people to whom the product suits the best
and who can purchase it. Thus, these people are targeted by the company by means of
advertising, public relation, sales promotion, personal selling, direct marketing, social media etc.
(Belch, 2016).
Now, integrated marketing communication refers to integration of all the methods of brand
promotion that helps in promoting a particular product or service among the target customers
(Percy, 2014). There are many aspects of the marketing communication which together work to
increase the sales of the company and to maximize its cost effectiveness.
There are some components of the integrated marketing communication. These are relevant for
the planning of implementing and IMC plan or project for any product or service. Though
marketing is a creative and original work, but it is required to be diversified in terms of how the
marketers are carrying out their marketing of the products and services. Thus, when the
companies develop their integrated marketing communication plan, they have to start it with

some background and key things that are necessary to be included in the plan so that the plan
does not fail in the end. Hence, they need to be studied and understood. The components of the
integrated marketing communication are as follows (Shimp & Andrews, 2012). The foorst
component is ‘Foundation’, in which the companies analyze the products that it intends to sell
and they also analyze the target market for its products. The needs, expectations and the
attitudes of the people in the market are known by the marketers in IMC so that they can sell the
products accordingly. The second component is ‘The corporate culture’. While designing the
products and selling them, the marketers need to keep in mind the vision of the company. The
method of promotion must take care of that vision. For example, of the vision of the company is
to promote a world which is clean and green, then they need to promote those products that are
eco-friendly and biodegradable. The third component is ‘Brand focus. The corporate identity of
the brand is represented in brand focus. The fourth one is ‘Consumer Experience’. It is
important to know for the marketers that what the consumers feel about the product. Mostly, the
product which has a good packaging and is attractive is picked more frequently than the others.
Also, the product must exceed the expectations of the consumers and they should meet their
needs. Fifth component is ‘Communication tools’. This is a main part of the IMC. Here the brand
is promoted with the help of various tools like the personal relations, advertising etc. But,
marketers need to choose that which tool is able to communicate the most part of the products
and which tool will deliver the maximum content about the product. The sixth component is
‘Promotional tools’. Whichever way of promotion is used by the marketers, they just have to
take care of the fact that companies must strengthen their relation with the customers and the
external clients. The seventh one is ‘Integration tools’ which takes care of the track of the

feedbacks of customers is kept by the organizations. The companies use special software that
helps in measuring the effectiveness of the various integrated marketing communications.
Marketing strategy: PR
Public relations include all those strategies by which the companies and the organizations
communicate with the people and the media (Guth, 2016). In this process, the communication
happens with the target audience in a direct or indirect manner with the help of media. The main
aim of PR is to create and maintain the positive image of products and services in the eyes of the
audience and thereby creating a strong relationship with them. Public relations are generally
created with the help of press releases, by publishing description of the product on the
newsletters, by making public appearances etc. (Ha & Ferguson, 2015).
There is fierce competition in the business and to win the confidence of the customers the
companies need to distinguish themselves from the other competitors. They cannot do this in an
aggressive manner, they need to create and maintain a positive image in the eyes of the public
(Black, 2013). with the help of PR, the companies not only maintains a good reputation, but they
are also able to communicate with the customers regarding the features of the products, services
and the overall operation of the company happens in the light of best possible and best available
ways (Smith, 2013). When the companies create a positive image in the eyes of public, they are
bale to create strong relation with the customers and thus the sales of the companies’ increases
with time.

Benefits of PR to Alessi
PR is practiced by Alessi. It provides several benefits to the company. Some of them are as
follows:
1. With the help of PR, Alessi is able to build the credibility for itself. The consumers are
very cautious when they spend their money. Though advertisements also influence the
consumers, but when they see the data and information about the company in the media,
the level of credibility rises (Stacks, 2016).
2. PR helps the company in targeting its customers and communicating with them.This
happens by placement of the information in the sources of media and giving the required
and relevant information to the customers. It is very important to reach to the target
markets which are done easily in the PR (Zerfass, 2014).
3. As compared to the other marketing strategies, the company Alessi finds it much cheaper
to use PR. At less cost, the company is able to reach more number of people.
4. Another advantage that PR gives to the company is that the media placement received by
the company is very long lasting (Olasky, 2013). The PR created by the company always
gets and generates leads for the company (Atkinson, 2009 pg. 105).
5. With the help of PR, the entire business is taken up and put in the limelight. The PR has
helped Alessi in creating an image in the public which is positive and the possibility of a
well-rounded patronage has also been increased (Health, 2013). But, the exact figures
have not been calculated by the company yet. It has measured this in terms of increased
market share and the rise in demand of products by the customers.
PR in Alessi