How Did Hcf Use Imc and the Promotion Mix to Bring Their Brand Strategy to Life?

How did HCF use IMC and the promotion mix to bring their brand strategy to life?

HCF’s promotion mix was a diverse mix of promotional variables that included:

• Advertising
• Public Relations
• Online Marketing
• Direct Marketing (Belch and Belch, 2016),

It is evidenced that HCF employed a far-reaching variety of promotional mixes, which dealt with the aspects of value capture, creation, communication and delivery. These disparate methodologies were then tied together with a measured, holistic Integrated Marketing Communication (IMC) (Pitta, Weisgal & Lynagh, 2006), which was branded “Health Comes First” in accordance with the salient concerns of their existing customer base. This renewed focus on value co-creation and customer relation management provides a base for a duality of a singular focus and a focused multi levelled marketing campaign. These combine homogeneously to bring HCF’s brand strategy to life.

Why do you think HCF went to market with “Health Comes First” as a campaign message rather than “Championing Australians’ Health”?

“Championing Australian’s Health,” is arguably a poignant motto for HCF’s internal corporate culture; for those with a deep understanding about what it means to be Not-For-Profit (NPF) and the structure of HCF’s value proposition. However, for a public campaign message it is lacking in two regards. Firstly, there are marked issues with decoding what the public (receiver) understands and what the company (transmitter) understands about the own structure.

HCF’s rejuvenation of its marketing strategy lends itself to the 4E Framework, of which “educate” is one. The role of the brand restructuring is to clarify HCF’s position, not to obscure its intentions, this could lead poor brand awareness. Then there is the default cynical attitude that HCF was combating in the market about Private Health Insurance (PHI) and their rising Health Insurance premiums. To be a “champion” would be looked upon with ironic derision rather than aspiration. On the other hand, “Health Comes First” clearly communicates the value proposition of the product in a memorable 3 syllable mantra. It communicates to sectors, both internal and external, the IMC of the company, company goals and what the value to consumer is in a cohesive way that “Championing Australians’ Health” does not.

What are alternative brand positioning choices HCF could have adopted? 

Embracing Wellbeing (Mental and Physical Health)

Nearly 10% of all Australians received mental health treatment in 2016-17 which was subsidized by Medicare, spending around $9 billion. There are also know nearly 1600 mental health facilities nation-wide. Each of these metrics is twice that or more than the equivalent statistic a decade ago. (AIHW, 2018) There was potential for HCF to rebrand itself as a mental health focused health care fund and adding significant value to the service that it provides. This would also serve to attract a key target demographic of young adults who are less expensive to cover for the private health fund. (Chisholm, 2013)

Being in Step with One’s Life (Flexibility and Personalisation)

In this era of digital marketing, it’s a prudent move to embrace the individualization effect by customizing and personalizing customer experiences. Through this, individualization of exchange can occur. This creates more demand for brand control and a better experience for consumers. This would allow for the HCF digital channels to feel more immersive and engaging and creating customer loyalty for savvy spenders.

What other activities might HCF have considered, or would you recommend, in launching their positioning?

In the review, it was stated that there was residual confusion between the brand and the campaign. An activity designed to clarify and engage would be to run contests to clarify what the new campaign message means to individuals or families. The most engaging and informative stories would be filmed and used as advertising for the firm as 2-3 minute vignettes online and on its own website landing page, to incorporate some of “Being in Step with One’s Life” with the new campaign. Entries can be used to sample the test market and rewards can be premiums rather than cash prizes. (Mullin, 2010) Acknowledging the diversity of Australia’s people, donating to Aboriginal funds and sponsoring Asian cultural events should also be taken into consideration. This serves dual purposes of probing for untapped market share and appearing inclusive and forward thinking.

If HCF wants to strengthen their presence interstate, what are some activities you might recommend?

To generate goodwill, I’d recommend sponsoring local high schools, sports teams, university functions and festivals and galas. The next step is to hire locals with intimate knowledge of the local business and societal nuances to methods of segmentation. An intermediary step here would be to use personal selling on busy street corners supplemented with online marketing on local social media pages to drum up support. (Suttle, 2018) This should be augmented with data bought from big data collection services. The final step is to ramp up brand visibility both on and offline and begin direct marketing to profitable and responsible segments within the community.

How should HCF promote itself in the BtoB market? How is your recommendation the same or different to HCF’s marketing activities in the consumer market?

HCG should first select the target market for its BtoB transactions. Usually the most profit can be made via corporate partners using sales presentations. One must ensure that the presentations are professional, slick and consistent. Secondly, listen to customer input.

Due to the fact that there are comparatively few customers, firms can follow the life cycle of a customer’s relationship with its service closely and ask for suggestions for improvement and adjust sales strategies accordingly.