Digital Marketing Strategy Report: Volvo's 'Care by Volvo' Campaign

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Added on  2023/01/06

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This report provides a comprehensive analysis of Volvo's digital marketing strategy, specifically focusing on the 'Care by Volvo' subscription service campaign. It begins with an introduction and situation analysis, including SWOT and PEST analyses to assess the company's internal strengths and weaknesses, and the external opportunities and threats. The report then delves into the digital business and marketing strategy, outlining the objectives, which include increasing revenue, conversion rates, and qualified website traffic. An implementation plan is detailed, covering segmentation, targeting, and positioning, alongside a digital marketing mix comprising product, place, price, and promotion. The report also explores social media and email marketing strategies, followed by a discussion on budgeting and measurement of the plan's effectiveness through metrics like site visits, traffic sources, and cost/revenue per visit. The report concludes with a summary of the findings and references to relevant literature.
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Digital Marketing
Strategy
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Table of Contents
INTRODUCTION................................................................................................................................3
Situation Analysis.............................................................................................................................3
Digital Business and Digital Marketing Strategy..............................................................................4
Objectives........................................................................................................................................4
Implementation Plan.......................................................................................................................5
Budgeting.........................................................................................................................................6
Measurement of Plan......................................................................................................................6
CONCLUSION...................................................................................................................................7
REFERENCES.....................................................................................................................................8
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INTRODUCTION
Digital marketing strategy involves different decision and actions that organisation
undertake in relation with digital marketing. Volvo is a Swedish multinational company that was
founded in 1927 and headquartered at Gothenburg, Sweden. Volvo operates in automotive
industry and products of trucks, buses, construction equipment, marine and industrial engines,
financial services and product related services. This report is based on digital campaign of Volvo
for subscription of Volvo cars. This strategy allows customers to get a 30 day trial with
insurance. Campaign named ‘Care by Volvo’ allows customers to choose a Volvo car try it for 30
days with insurance. This is an alternative for leasing or buying a brand new car for a monthly
fee.
Digital Marketing Process
Research- Volvo needs to undertake research for identifying suitable platforms for digital
marketing.
Digital marketing strategy- This is creating digital marketing strategy of the business.
Design and production- Designing and producing digital marketing and content to be delivered
through digital marketing.
Launch and connect- Implementing and launching content on different sites to connect with
potential customers.
Deliver and convert- This involves generating conversion, this means converting audience into
customers of Volvo Ghotbifar, Marjani and Ramazani, (2017).
Digital Marketing Plan
Situation Analysis
SWOT Analysis
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Strengths
Strong research and development capabilities enabling effective targeting audience
(Hallén, and Löfgren, 2019)
Weaknesses
Product recalls negatively affect brand image and in its digital marketing this can make
negative effect (Mansour and Esseku, 2017).
Opportunities
Increasing social media sites and digital marketing channels
Increasing online audience (Hallén, and Löfgren, 2019)
Threats
Increasing competition and utilisation of digital marketing to compare products with
competitors (Vlados, 2019).
Pest Analysis
Political – Increasing regulations for digital marketing and digital activities of organisation is
involved in this factors, this means increasing emphasis of protection of data Gheibi and et.al.,
(2018).
Economical –Increasing cost of operations make negative impact on overall financial condition
of Volvo. Digital marketing also leads to increase in price of product of Volvo Alava and et.al.,
(2018).
Social – This factor Care by Volvo requires considering changing consumer engagement on
different social media sites and plan digital marketing accordingly Gheibi and et.al., (2018).
Technological - Improving digital presence of competitors is and effective technology being
utilised for digital marketing is involved in this factors of Volvo Alava and et.al., (2018).
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Digital Business and Digital Marketing Strategy
Digital business target customers who are active on digital platforms and this is why it is
important that digital businesses target right customers. Digital businesses are using digital
marketing for the B2B marketing. Through this approach digital businesses aim at gaining long
term profitable customers. Through digital marketing digital businesses can effectively reach to
their prospective business clients. Digital businesses are also using social media such as
Facebook and Google. Many of the times digital businesses undertake strategies in which
customers looking for information on google are later given engaging content on Facebook. This
is a strategy in which different channels present information regarding digital business. Google
and Yahoo are playing an important role as search engine because and customers through
these channels can directly link to company. This means that if customer is searching for cars to
subscribe on Google, it will present Volvo as an option on the basis of SEO. This way if not
directly these channels help in linking digital businesses to prospective customers indirectly
(Kingsnorth, 2019).
Objectives
Increasing revenue by 5% in year 2020-2021 through digital marketing (in order to
increase revenue Care by Volvo requires to reduce cost per visit and this will lead to
higher revenue through digital marketing)
Increasing conversion rate through online channels by 30% in year 2020-2021 (in this
objective company expect to increase conversion rate by more effective and engaging
advertisements).
Increasing qualified traffic on the website of Volvo by 25% in year 2020-2021 (this is
concerned with increasing traffic that has high potential of conversion, this can be done
more effective and accurate targeting)
Implementation Plan
Finalising digital marketing strategies
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This is concerned with determination of digital marketing strategies that Volvo will
utilise in its digital campaign for Care by Volvo. Strategies to be used for Care by Volvo are-
Segmentation, Targeting and Positioning
Segmentation- Care by Volvo segment people between age of 20-40 having upper-middle class
income. People of these ages are more likely to be interested in subscribing a car rather than
buying it including students.
Targeting- Targeting strategy adopted by Care by Volvo is differentiated and multi-segment
targeting. In this Care by Volvo targets more than one customer segment (Camilleri, 2018).
Because concerned with car there are more than one group requires to be targeted in order to
increase customers.
Positioning- Positioning strategy involves positioning based on use and application of the
product. This is because Care by Volvo provides specific application of the product in terms of
subscription saving customers from hassles of owning cars.
Digital Marketing Mix
Product- Product of Care by Volvo campaign offers subscription based cars of Volvo.
Place- Care by Volvo has online place in which customers can utilise website of Care by Volvo to
buy the product.
Price- Customers have to pay monthly subscription payment which is very less compared to
cost of buying a car and its maintenance.
Promotion- Digital marketing involves promotion at digital platforms and social media channels
(Baltes, 2016).
Social Media Marketing
Social media channels that Volvo can utilise are Instagram, Facebook, Twitter, LinkedIn
where Volvo can employ its promotional efforts and marketing strategies. In its social media
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campaign of Care by Volvo, it allows different type of information regarding different cars that
customers can subscribe. Communicating directly with customers and users also plays
important role in increasing engagement of customers with brand (Kamal, 2016).
Email Marketing
Email marketing involves promoting product and services through Email. This mainly
involves giving personalised information to customers and potential customers. This allows
customers and company to directly connect with each other through email (Zhang & Cabage,
2017).
Budgeting
Budgeting of the plan requires to be based on importance of the strategy and channel to
increase performance of the business in digital marketing. This is also important to identify role
of different digital marketing strategies in achieving organisational objectives. On the basis of
above strategies determined following order can be adopted to allocate budget for digital
marketing strategies (Dorota and Olejniczak, 2017).
1. Search engine optimisation
2. Content marketing
3. Social media marketing
4. Email Marketing
Measurement of Plan
Care by Volvo by measurement of plan can identify and understand strategies that has
been successful and strategies that did not performed well in digital marketing of Care by
Volvo.
Total sites visits- Increase in number of people to visit sites indicates success of marketing
strategies applied and employed by Volvo Cars (Kamal, 2016).
Traffic by Source- This is to identify and measure success of particular channel of marketing
(Dorota and Olejniczak, 2017).
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Cost and revenue per visit- This measurement, Volvo needs identifying and calculates cost and
revenue per visit (Chaffey and Smith, 2017).
CONCLUSION
On the basis of above report it can be concluded that digital marketing plan for Volvo
involve different strategies and channels. These are effective in attainment of objectives and
later this can be measured with strategies discussed in above report.
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REFERENCES
Books and Journals
Alava, R. P and et.al., (2018). PEST Analysis Based on Neutrosophic Cognitive Maps: A Case
Study for Food Industry. Neutrosophic Sets and Systems. 21(1). 10.
Baltes, L. P. (2016). Digital marketing mix specific to the IT Field. Bulletin of the Transilvania
University of Brasov. Economic Sciences. Series V. 9(1). 33.
Camilleri, M. A. (2018). Market segmentation, targeting and positioning. In Travel marketing,
tourism economics and the airline product (pp. 69-83). Springer, Cham.
Chaffey, D., & Smith, P. R. (2017). Digital marketing excellence: planning, optimizing and
integrating online marketing. Taylor & Francis.
Dorota, B. O., & Olejniczak, J. (2017). Participatory Budgeting in Poland–Finance and Marketing
Selected Issues. University Library of Munich, Germany.
Gheibi, M. & et.al, (2018). Controlling air pollution in a city: A perspective from SOAR PESTLE
analysis. Integrated environmental assessment and management. 14(4). 480-488.
Ghotbifar, F., Marjani, M., & Ramazani, A. (2017). Identifying and assessing the factors affecting
skill gap in digital marketing in communication industry companies. Independent
Journal of Management & Production. 8(1). 1-14.
Hallén, J., & Löfgren, A. (2019). Managing performance measurements in early production
development phases-A case study at Volvo Cars (Master's thesis).
Kamal, Y. (2016). Study of Trend in Digital Marketing and Evolution of Digital Marketing
Strategies. International Journal of Engineering Science. 6(5). 5300-5302.
Kingsnorth, S. (2019). Digital marketing strategy: an integrated approach to online marketing.
Kogan Page Publishers.
Mansour, G., & Esseku, H. (2017). Situation analysis of the urban sanitation sector in
Ghana. Water & Sanitation for the Urban Poor.
Riyadi, S & et.al., (2019). Digital marketing strategies to boost tourism economy: A case study of
atlantis land Surabaya. Humanities & Social Sciences Reviews. 7(5). 468-473.
Zhang, S., & Cabage, N. (2017). Search engine optimization: Comparison of link building and
social sharing. Journal of Computer Information Systems. 57(2). 148-159.
Vlados, C. (2019). On a correlative and evolutionary SWOT analysis. Journal of Strategy and
Management.
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Online
Using the PESTLE analysis model. 2020. [Online]. Available Through:
<https://www.smartinsights.com/marketing-planning/marketing-models/pestle-
analysis-model/>.
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