Case Example. Read the following short case and consider how to design an effective IMC strategy to communicate the value proposition with target customers in order to improve its maximum effectiveness. Specifically, figure out how to produce the maximum effectiveness of promotional activities across the stages of any consumer response process models.

If it Quacks Like a Duct?

(By Zikmund and Babin 2007, pp. 2-3 in the Textbook)

If youre hurt and you miss work: This is the tag line for one of the most popular U.S. advertising campaigns for AFLAC Insurance. The tag line is accompanied by the familiar Peking duck constantly reminding people with a loud AFFLLAACKK!!? Recent polls show that the AFLAC duck has become one of Americas favorite icons coming in second only to the Mars M&Ms. But, how has the ducks favorable fan status affected AFLACs business performance? Certainly, AFLACs marketing strategy goes beyond creating the most popular duck since Donald!

Through its thirty year history, AFLAC, like other firms, has faced important decision about how to create brand awareness, how to build consumer knowledge of the brand, and how to build sales and loyalty. Leading up to these decisions, the firm must first assess its current situation and its brand awareness relative to its competitors. Approximately two dozen AFLAC duck commercials ago, research revealed that most consumers were unaware of AFLAC. The vast majority of consumer would not list AFLAC when prompted to name insurance companies. Instead, names like Allstate, State Farm, and Prudential proved more familiar. Not surprisingly, these companies enjoyed greater market share. Based on this research, AFLAC decided to invest in a national television campaign to build awareness of the brand name AFFLLAAACCK!! The phonic similarity to QUACK proved successful.

Today, AFLAC has built great awareness of its name, but this hasnt necessarily translated into business success. Despite the tag line, fewer than 30 percent of consumers who recognize the name know that AFLAC specializes in supplemental disability insurance. This accounts for over three-fourths of AFLACs nearly $14 billion dollar annual revenue. Thus, while the initial research suggested the need for building awareness, their more recent research is addressing difficulties in creating the right knowledge of AFLAC. What communication medium is best for building knowledge? Can knowledge be built in the same way as awareness Will knowledge lead to increased intentions to do business with AFLAC? What role does personal selling play in building knowledge? All of these are questions that should be answered. Marketing research will be directed toward answering these questions. The answers will then be used to try and erase the knowledge deficit faced by AFLAC. IF the answers are half as effective as those that lead to the AFLAC duck, the company should enjoy tremendous success.

Your Mission. Given the introduction of the case above, propose your suggested guidelines of the IMC strategy for AFLAC using Hierarchy of Effects (or Buyer-Readiness) Model. Specifically, suggest your brief suggestions of what the AFLAC company needs to do at each stage of the Hierarchy of Effects Model as shown below to maximize the effectiveness of an overall IMC strategy for AFLAC. Answer the following questions.

Q1. Discuss why the AFFLLAACKK commercial have failed in generating an appropriate level of sales given the above mini case. The answer is related to one major difference between AIDA and Hierarchy of Effects Model.

Q2. Suggest your ideas to increase the Awareness Level about supplemental disability insurance products offered by the AFLAC company at the stage of awareness.

Q3. Suggest your ideas to increase the Knowledge Level about supplemental disability insurance products offered by the AFLAC company at the stage of knowledge.

Q4. Suggest your ideas to increase the Liking Level about supplemental disability insurance products offered by the AFLAC company at the stage of liking.

Q5. Suggest your ideas to increase the Preference Level about supplemental disability insurance products offered by the AFLAC company at the stage of preference.

Q6. Suggest your ideas to increase the Purchase Intention Level about supplemental disability insurance products offered by the AFLAC company at the stage of conviction.

Q7. Suggest your ideas to increase the Trial Level about supplemental disability insurance products offered by the AFLAC company at the stage of purchase.