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Marketing Communication Authentic Assessment Case

Afeitado Baratos (translated as Cheap Shaves) is a Spanish business that delivers razors and other related personal grooming products to customers via mail delivery. Its products are delivered each month.

The company was started in late 1999 by brothers Santiago and Alejandro Hernández, based out of their parent’s home in Leon. Both brothers had been complaining of the high cost of razors and started their company with their own and family money.

In 2005, the brothers were able to expand operations with the help of a Spanish seed investment program, designed to support and encourage Spanish entrepreneurs. This investment money was used to expand the mail distribution side of the business to all of Spain and some of the nearby countries including France, Portugal, Germany, Switzerland, Italy and Luxembourg.

In 2010, the brothers’ business was backed by venture capitalist funding and they were able to offer their products throughout Europe. Afeitado Baratos (Cheap Shaves) offers two main levels of customer plan, there is a basic plan and a more expansive plan. In the basic plan, members receive five “la afeitadora básica” (translated as “the staple shaver”) razors, which feature two plades per razor and a container of shave butter.

The the more expensive plan is called the “Diego Velázquez”, named after a famous Spanish painter who was known for his individualistic style. In this plan, customers receive five Artista Afeitadora (translated as the Artist Shaver) which has six blades per razor, a container of shave butter, a packet of wet wipes and a tube of moisturiser.

From the humble beginnings of a home-based company, the brothers expanded to a local warehouse in 2005, where they enlisted the help of friends and family to keep up with initial demand. In 2012, the entire facility was reloaded to a third-party logistics centre in Madrid. As of 2020, the company has 1.1 million subscribers. The company primarily markets its products to men.

The company’s main priority has been about making a name for itself in the highly competitive men’s grooming market. Most of the products they sell are made by other companies and re-sold by Afeitado Baratos (Cheap Shaves). The brothers have focussed on buying locally made products for reselling under their brand umbrella.

As a result, both types of razor, shave butter, wet wipes and moisturizer, are all made in Spain. Country of origin (locally made, locally run, locally staffed) was an integral part of the early marketing campaign for the company. As part of RMIT’s International involvement, the Afeitado Baratos (Cheap Shaves) marketing department became aware of the significant positive impact that Marketing Communications students had on product development and the marketing communication environment in Singapore and were impressed by your resume.

Congratulations, you are the newly appointed “Marketing Communications Manager” for Afeitado Baratos in Singapore. After undertaking a thorough analysis of the situation facing Afeitado Baratos, you discover that the company has three main issues.

First, is rising competition. In the last decade, Afeitado Baratos (Cheap Shaves) has faced increasing competition and have realized that they will need to become innovative if they are to successfully compete. Consultants, hired by the brothers, suggest that the global razor market size is valued at USD 10.2 billion (as at 2018) and this figure is expected to group by 3.5% from 2022 to 2025. Such growth is fueled by several factors, predominantly by growing focus on men’s grooming and rising awareness among consumers related to personal hygiene.

Second, while disposable razors, such as those sold by Afeitado Baratos, are in demand, however, electric shavers are growing in popularity because of their durability, easy usage and more positive implications for the environment. The product range has not really changed since the company started.

Third, the company does not have as strong a digital media presence as its current competitors and new entrants to the markets are stronger in their digital strategies. The focus over the years has been on developing a strong email marketing footprint, originally a traditional mail campaign approach. The marketing strategy has been about reaching the target audience and developing a strong club feeling to ensure customer loyalty.

Afeitado Baratos does not reward referral business provided by existing customers and has not changed the product range since the company first started. This is your chance, as the new Marketing Communications Manager, to have a real impact on this company. With the assistance of your product development team and your full-service agency, you are looking to develop a response to competitors and industry trends to develop a leadership position.
The product development team has identified three new Spanish-made products which could be launched by Afeitado Baratos.

The first is a shaver that is made from recycled materials, the second is a moustache and beard styling gel, and the third is a black texture comb, also made from recycled plastics. The plan is to include these products in the third plan for customers, called The Antonio Afeitado, named after Santiago and Alejandro’s Grandfather. Antonio Hernández was known amongst his family and friends as having a unique sense of style.

You realize that you will need to work fast if Afeitado Baratos is to remain competitive in this industry. You conduct an audit of Afeitado Baratos’s previous campaigns and realize that in the last ten years, the campaigns have not performed their best. Your research leads you to believe that two key problems have caused this previous underperformance. First, poor segmentation and targeting, leading to poor positioning, and second, an inability to break through the clutter that is the highly competitive men’s grooming products category.

With this in mind, you begin the process of briefing a panel of respected full-service agencies with the intent of selecting the agency that both assists you to formalize the appropriate campaign strategy and integrated campaign idea to launch the Antonio Afeitado. As part of this process, you must clarify a range of thinking that will form the foundation of the work. It is especially important to you that the successful agency fully understands integrated marketing communication and the myriad of tools (communication touchpoints) available.

Section A:

Required:

Question One

A key client strategic decision centres around product positioning. Product positioning creates an image of the company’s products in the minds of the target consumers. When done correctly, positioning highlights the most important benefits that differentiate the product from similar products in the market. Given the current competitive situation faced by Afeitado Baratos, positioning is crucial.

a) Positioning outlines the key feature, benefit and image that the brand stands for in the target audience’s collective mind. Brand positioning is essential to a successful marketing communications campaign. An effective positioning statement must achieve three goals.

Define the term “positioning statement”, explain these three goals with specific application to the Antonio kit and write a positioning statement for Afeitado Baratos – Antonio. In your answer, also include a target audience description (with justification) for the Antonio Kit.

b) When considering brand image, we have the option of building in types of brand associations through attributes, benefits or overall evaluation (attitude). There are three types of benefits positioning in which a marketing practitioner claims a specific feature or benefit in order to appeal to consumer needs. Explain the three types of benefit positioning with specific application to the Antonio kit. In your answer, explain and justify which type of benefit
positioning is most appropriate for the Antonio Kit.

c) Why do marketing practitioners reposition a brand? Outline and explain each reason. Is a repositioning of the brand required here? Why or why not?

Question 2.

You realise that media strategy is important given previously unsuccessful campaigns over the last decade. Your media strategy will need to ensure that you are putting your efforts into the correct platforms and at the correct times.

a) Define and explain traditional and new media. When planning which media to use (or not use) several considerations are important. Explain the media-planning process with specific application to the Antionio Kit. Outline potential media that could be utilized in the advertising of the Antonio Kit. Make sure you explain and justify your answers.

b) There are several issues when we set media objectives. Summarise three of these and apply each to the Antonio Kit for Afeitado Baratos.

In conducting your audit of previous advertising campaigns employed by Afeitado Baratos, you realize that Internet or Online marketing has not really been used. In fact, in the company’s current marketing campaign, there is no digital marketing section at all. You believe this is a missed opportunity, but your team is not convinced.

c) Outline the steps in a digital marketing strategy and highlight how such a strategy could be used at Afeitado Baratos with a view to convincing your new team. (5 marks)

Section B

Required:

Option One: Question One

You understand that the coordination of traditional media with digital media is critical to campaign success. Your research into Afeitado Baratos’ previous online campaigns has shown poor results. You believe their social media campaigns, in particular, were poorly planned.

a) Scholars have developed the P.O.S.T. framework. Explain the steps, or vital components, in the P.O.S.T. framework, using examples other than for Afeitado Baratos.

b) How do you think the P.O.S.T. framework should be best integrated into the IMC campaign for Afeitado Baratos Antonio Kit.

Option Two: Question Two

Afeitado Baratos staff are proud of their country-of-origin status. They create local jobs and source locally manufactured products. The company is held in high esteem in Spain. You wonder if a public relations campaign would be a good idea, especially in terms of impact on brand image and to provide added value now that the company is competing globally.

a) Write a pros and cons list to help you decide if you should launch a marketing public relations campaign. You need at least two pros and two cons. Explain the pros and cons with specific applications to Afeitado Baratos.

b) What would a press release announce the new product kit “Antonio” look like? What relevant information, features or benefits would you include and why?

c) PR is one example of a supporting actor in a marketing communications campaign. Suggest another supporting activity that Afeitado Baratos could use in their marketing communications strategy for the Antonio Kit. Justify your suggestion and include details.