Report On the Digital Marketing Strategies Of Daniels Donuts 

Executive Summary:

This report is intended to provide senior management of Daniel’s Donuts, the recommendations for prospective digital marketing strategies, based on a thorough analysis of current digital trends, the company’s market environment and the usage of existing digital marketing strategies by Daniel’s Donuts.

The report begins with a brief description of the company and the dynamics of the industry it operates in, followed by an analysis of the general digital trends as well as the trends prevailing in the food and beverage industry, company’s external and internal environment – with a focus on the company’s use of digital technologies and platforms to support the overall business strategy. A situational framework analysis is put worth for analyzing the company’s strengths, weaknesses, opportunities and threats to leverage the knowledge for better business growth and to make a case for recommendations presented in the following passages. Finally, recommendations are provided for Daniel’s Donuts in light of the findings and analyses of the current digital landscape as well as future implications that are devised after addressing the many advantages that utilization of digital platforms, a holistic digital strategy, and a carefully crafted action plan brings with itself.

Daniel’s Donuts utilizes a mix of digital platforms – Social media, and the official website – majorly for increasing brand awareness and to facilitate product off take. The social media presence is on Facebook, Instagram and LinkedIn which has considerable number of audiences. Brand engagement and reach on digital platforms and channels is however quite limited.

Well defined brand story and the audience personas, using which appealing content creation must be done based on different personas and the customer journey maps which will determine different audience personas responding to different types of content.

Following are the key areas where customer experience can be improved using digital tools and touch points:

Gathering and utilizing data for better customer experience is essential and must be made part of the customer journeys.

Superior customer engagement and lead generation integration on social media.

Easy and appealing user interface of the digital assets including the official website, YouTube channel, and social media platforms.

Utilize Google digital tools; GDN, Google Analytics, SEM, GMB, YouTube for keeping up with the dynamic digital world.

Partnerships and collaborations with influencers, key opinion leaders, and food bloggers.

Reputation management strategy for converting one bad experience of one customer into a great resolution for everyone who sees the review or anyone who overheard.

All About Daniel’s Donuts – Core Activities and the Market it Operates in:

Daniel’s Donuts, is a renowned Australian owned Melbourne based retail-wholesale, donut business, established in 2016. With over 50 different donut flavors available, there is something for everyone. Vegan and Gluten Free options are also available. In addition to donuts, Daniel’s is also famous for their NZ-style pies, milkshakes, cakes and coffee. Daniel’s Donuts, (2020)

Daniel’s Donuts core activities involve baking and selling doughnuts, cakes, pastries, and hot pies.

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According Daniel’s Donuts, (2020), it operates in 10 locations across Australia including:

• Springvale
• Portarlington
• Carnegie Central
• Highpoint
• Point Cook
• Collins Street
• Belmont
• Cranbourne
• Rosebud
• Altona Gate

Customers can visit the shop for take away or place orders through their official website and get it delivered at their door step. For deliveries, customers are required to order atleast 2 days in advance, as no same day or next day deliveries are being offered at Daniel’s Donuts. Deliveries are made between 07:00 am – 06:30pm strictly, so specific delivery times cannot be requested, Daniel’s Donuts, (2020).

The COVID-19 outbreak has had a moderate impact on the Bakery Product Manufacturing and selling industry. The industry is projected to grow modestly over the next five years. Trends in household disposable income and consumer sentiment are anticipated to continue to determine consumer demand for baked products. Consumer sentiment is projected to recover slightly, but remain negative, following the anticipated containment of COVID-19. Consequently, industry revenue is forecast to decline in the same year as per IBIS World, (2020).

Analysis of Current and Future Digital Trends:

As digital platforms became increasingly incorporated into marketing plans and everyday life, and as people increasingly use digital devices instead of visiting physical shops, digital marketing campaigns have become prevalent, employing combinations of platforms, channels, techniques, and tools which are all linked to the overarching digital strategy branched out from business strategy.

Following trends can be seen prevalent in the modern-day digital landscape:

1. SEO and Content Strategy:

Keyword research solution has become fundamental part of a sound digital marketing strategy because appearing among the top Google results matters and helps in growing businesses. Berman, R., & Katona, Z. (2013).

As per Ledford, J. L. (2015), taking care of SEO is the top marketing strategy, since as much as 56% of the traffic on Food Industry sites comes from organic search as stated by Peter Roesler, (2015).

3. SEM, Google Ads, GDN:

Search Engine Marketing offers a range of paid advertising strategies that can bring in more customers, get more leads and sales and improve return on advertising spend. By investing in Search Engine Marketing, today, businesses are growing while keeping their ROI high and their cost per customer low. Using Google Ads as a platform for SEM, businesses can optimize their ads. While businesses are using Display Advertising embedded in other websites and platforms that they can choose by targeting interests, categories, keywords and even specific sites, Google Ads, (2020).

4. Social Media Marketing:

Facebook Ads are becoming increasingly dynamic, targeted and well-integrated with other digital assets. Influencer Marketing Hub, (2020), listed down major trends in social media marketing as follows:

• Ephemeral content keeps gaining popularity
• Niche social platforms like TikTok perform well
• Personalization of content for different target groups will be chief
• Local targeting is more prevalent than ever
• Social listening tools are becoming increasingly popular
• Social media communities of like-minded people are on the rise
• User generated content is motivated and encouraged unlike anything else
• From shoppable posts to Instagram storefronts, social networks are continuously evolving to become retail platforms
• Video content dominates
• Influencer Marketing Will Continue to Soar
• More Regulatory Control and Legal Scrutiny

5. Future of Digital Marketing:

The two future trends in the digital landscape that we can see are Virtual Reality and Augmented Reality as stated by Influencer Marketing Hub, (2020). Augmented reality filters are now being used on several major platforms like Snapchat and Instagram. Facebook is already taking huge steps in this direction with the introduction of Horizon, their social virtual reality world. This is a kind of virtual world where people can connect, play games, and explore. The adoption of VR in social media will be at a nascent stage, but will get momentum in the near future, Influencer Marketing Hub, (2020).

Analysis of Daniel’s Donuts’ Digital Technologies and Platforms Usage:

Daniel’s Donuts utilizes a mix of digital platforms majorly for increasing brand awareness and to facilitate product off take. Brand engagement and reach on digital platforms and channels is however quite limited. Daniel’s Donuts primarily utilizes social media marketing and the official website. The social media presence is on Facebook, Instagram and LinkedIn which has considerable number of audiences.

Strengths                                                        Weakness

Opportunities                                                 Threats

The digital SWOT analysis of Daniel’s Donuts suggests that we need to devise a thorough digital strategy to maintain sufficient brand exposure, engagement, and reach for the right target audience. Since Daniel’s Donuts offers indulgent confectionery items, its target audience is mainly young, progressive, tech savvy and up to date. So, it’s imperative to identify the most appropriate channels to employ, based on the demographic and psychographic profiles of the target audiences.

Key Areas for Improved Customer Experience:

We must understand what areas need improvements to harness the power of digital media and use it to achieve the utmost success in our business. Following are the key areas where we can improve customer experience using digital tools and touch points:

• Well defined brand story and the audience personas, using which appealing content creation must be done based on different personas and the customer journey maps.
• Leveraging opportunities to gather and utilize data for better customer experience is essential and must be made part of the customer journeys.
• Superior customer engagement and lead generation integration on social media.
• Easy and appealing user interface of our digital assets including our website, YouTube, and social media platforms.
• Utilize Google digital tools; GDN, Google Analytics, SEM, GMB, YouTube for keeping up with the dynamic digital world.
• Partnerships and collaborations with influencers, key opinion leaders, and food bloggers.
• Reputation management strategy for converting one bad experience of one customer into a great resolution for everyone who sees the review or anyone who overheard.

Recommendations for Daniel’s Donuts Digital Marketing Strategy & Execution:

By looking at the digital assets of Daniel’s Donuts and its overall persona, it can be safely said that Daniel’s Donuts is a brand that caters to the young age group and those young at heart. It’s only logical to be at places where our target group is, design content and visual guideline which speaks the language that amuses our target group and keep up with the ever-changing dynamic environment that we live in.

Below are the recommendations for Daniel’s Donuts Digital Marketing based on the analysis of the firm’s external and internal environment:

1. An Optimized Website with Improved User Interface, and Carefully Optimized Content:

As per Lamberz, J., Litfin, T., Meeh-Bunse, G., & Teckert, Ö. (2017, September), having a visually appealing and user-friendly website is the most crucial part of a digital action plan. The current website fulfills the basic purpose but needs to have a more dynamic persona and sophisticated website maintenance software.

Daniel’s Donuts has started offering food delivery through their website as well as via delivery platforms like UberEats. However, the delivery service is not satisfactory, competitive and agile enough for Australians who are leading increasingly busy lifestyles. From having a sophisticated delivery service in place, to having an interactive website that facilitates online shopping or BOPIS (buy online, pick up in store), we need to get along with the digital age to attract and retain both new and existing customers. Rising technology proliferation and increasing demand for convenient food options is expected to contribute to strong demand for the online food ordering and delivery platforms industry services according to a report by IBIS World, (2020).

• Features that can be added on the website: Live chat for real-time connections, social media integration.
• Look and feel: Minimalist, smooth and intuitive website designs help customers keep coming back to the website as explained by Cho, E., & Youn-Kyung, K. (2012). Create consistent designs for the website. Induce impulse buying through visually appealing but clean interface.
• Content: Turn the stories behind our products into a powerful way of connecting our customers with the process and people that made Daniel’s Donuts. Give fancy names to the products and have them photographed by a food stylist in a manner that makes them look appetizing. We will continue to see the growth of the organic, vegan and sustainable food & beverage trends as per Falguera, V., Aliguer, N., & Falguera, M. (2012). So, creating content about organic/vegan/allergen-free products, environmental benefits of our production processes as well as exhibit environmentally and socially responsible values and motives will keep us relevant among the target audiences.

2. Search Engine Marketing (SEM):

Well planned and impeccably executed Search Engine Marketing grows brands while shrinking marketing costs, Dou, W., Lim, K. H., Su, C., Zhou, N., & Cui, N. (2010).

SEM will help us get an optimized website that will in turn help us get more traffic and pay less. Google Ads is one of the main SEM platforms using which we can create search engine ads with irresistible copies and call to actions to drive traffic to the website, get more phone calls or increase store visits, as per Google Ads, (2020). Effective audience targeting can be done through SEM to ensure relevant ad is showed to the relevant audience, who’ll be most interested to make a purchase.

3. Google Display Network (GDN):

We must use targeted Display ads for reaching out to unsuspecting potential customers while they’re browsing their favorite websites, showing a friend a YouTube video, checking their Gmail account, or using mobile devices and apps. Using specific keywords, demographics and locations to target placements, display advertising helps to build brand awareness, reach the right customers and grow sales, Kwasi, (n.d).

4. Social Media Marketing:

Instagram and Facebook users love food & beverage brands, making these some of the most effective channels to leverage our digital strategy, both in terms of cost and results, Daren Bach FCIM, (2015).

• Make a visual guideline for developing unique content: Visual guideline, with strong and appealing imagery as well as copy will help us get attention and will position us as a trustworthy brand.
• Place Daniel’s Donuts in popular contexts: We need to expand our horizon on social media by creating and engaging the audience in short fusion recipe videos, posts and campaigns integrating our products in relevant discussions among our target audiences.
• Encourage user-generated content: Encourage followers to share their experiences with our products via photos, video reviews etc. This will encourage content from customers, builds the brand relationship and makes it much more interesting for potential new consumers, Daugherty, T., Eastin, M. S., & Bright, L. (2008).
• Facebook Ads for Lead generation: Use the targeting algorithms and innovative formats to optimize and attract qualified leads into our sales funnel. Creating ads with compelling copies and optimizing them correctly is essential for lead generation. Shop now, Messenger or WhatsApp button should be added on our Facebook page to get qualified leads.

5. Get Food Bloggers On-Board:

Food bloggers’ entertaining content provides great opportunity for food & beverage businesses to increase brand awareness and retention, as well as gain new customers, Woods, S. (2016).

Partnering with food bloggers is essential to gain larger following, increase trust in the quality, taste, and sustainability of our products and processes and showcase the delightful customer experience, from the products to the delivery. According to Libert, K. (2015), 70% of users prefer authentic content to traditional advertising from brands, hence influencers are a great way to show what Daniel’s Donuts is all about using authentic experiences.

6. Show Video Content Via Vlogs, Pre-Rolls and Instream Ads:

Food content has generated nearly 41 billion views on YouTube. (Source: Tubular Insights)

According to Miles, J. (2011), smartly integrating YouTube video Ads in videos get brands noticed at one of the receptive moments in a customer’s day. Introduce Daniel’s Donuts to new audiences and gain a larger following, generate awareness about production process, the brand values and facilitate brand recall through behind-the-scenes, endorsements and storytelling.

As suggested by Miles, J. (2014), we can incorporate YouTube marketing into our digital strategy through:

• Owned channels to distribute campaigns
• YouTube partnerships for endorsements and follower base growth
• Ads for greater brand awareness among target demographics

Action Plan:

Timelines and Responsibilities:

Phase 1.1: Brand Story, Visual Guidelines, Audience Persona, Customer Journey Mapping:

In order for us to truly embark on a digital journey that pays off, we need to first work on our brand and the people it serves; their habits, behaviors, media consumption and their journeys. Develop visual and content guidelines because it is important to show consistency on digital assets for increasing trust of our target audience.

Responsibility: Marketing and Sales teams, Designers and Content Writers, top management

Phase 1.2: SMART Goals Setting:

Identifying and setting goals that are specific, measurable, attainable, relevant, and time-bound is essential for devising the digital strategy.

• Increase brand awareness
• Strike customer interest through engaging content
• Encourage new customers for trial through content reach, reviews and lead generation
• Easy and appealing purchasing experience for new and existing customers
• Build brand love and loyalty, encouraging repeat purchase

Responsibility: Marketing and Sales Team

Phase 2.1: Identification of Key Channels:

It is important to identify the most appropriate channels to employ, based on the audience personas and their customer journeys. We must identify the channels that our audience personas are using. How are they consuming content? What are their preferences?

Responsibility: Marketing Team

Phase 2.2: Develop Content Strategy:

Find out what your audience wants and needs, and creatively provide it for them. People share what’s good, follow what’s regular, and respond to what’s appropriate. Think quality, consistency, and customization and you can’t go wrong. Sketch the content types that would work for each of your target audiences and then categorize accordingly. This can be created for a specific month, quarter, or season depending on the robustness of the campaign, and the resources available.

Responsibility: Marketing, Content, and Design Team

Phase 2.3: Draft a Content Calendar:

Keeping track of a good digital strategy which has multiple channels, content formats, deadlines, and deliverables is important so drafting a content calendar comes handy. It includes benchmarks and major events as well as resources responsible in creating, approving, and publishing each piece of content.

Responsibility: Marketing, Content, and Design Team

Phase 3: Plan Resources:

Planning resources to carry out digital execution is central to the action plan. Strategize time, money, and people to invest in accordingly.

Responsibility: Marketing and HR Team

Phase 4: Implement, Analyze and Sustain:

Utilize platform analytics to test, run, analyze, and optimize what’s working and what’s not and repeat the practice to sustain the digital footprint.

Responsibility: Marketing Team

Media Distribution and Budgetary Considerations:

Brand Universe: Males and females in Australia between 16 – 35 years of age

Touchpoint

Placement

Duration

Module

Rate

Total Clicks/ View

Impressions

Net Cost

Gross Cost

Portal GST

Est CTR

Av. Frequency

Reach

Facebook – Auction Canvas Instagram

Facebook and Instagram

365 days

Auction CPV (2 Sec)

YouTube Pre Rolls

YouTube Videos

30 days

CPV

YouTube Discovery Ads

Instream Ads

30 days

CPV

Snapchat

Discovery story ads

16 weeks

CPM

Video Production

YouTube/ Facebook

30 days

 References:

Berman, R., & Katona, Z. (2013). The role of search engine optimization in search marketing. Marketing Science, 32(4), 644-651.

Bread and Cake Retailing in Australia industry, (2020). IBIS World Market Research Report. Retrieved on October 16 2020, from https://www.ibisworld.com/au/industry/bakery-product-manufacturing/4227/

Cho, E., & Youn-Kyung, K. (2012). The effects of website designs, self-congruity, and flow on behavioral intention. International journal of Design, 6(2).

Daniel’s Donuts, (2020). Retrieved on October 15 2020, from https://danielsdonuts.com.au/

Daren Bach FCIM, (2015). Social Media Trends & Tastes in the Food & Beverage IndustryRetrieved on October 15, 2020, from https://www.linkedin.com/pulse/social-media-trends-tastes-food-beverage-industry-daren-bach/?trkSplashRedir=true&forceNoSplash=true

Daugherty, T., Eastin, M. S., & Bright, L. (2008). Exploring consumer motivations for creating user-generated content. Journal of interactive advertising, 8(2), 16-25.

Dou, W., Lim, K. H., Su, C., Zhou, N., & Cui, N. (2010). Brand positioning strategy using search engine marketing. MIS quarterly, 261-279.

Falguera, V., Aliguer, N., & Falguera, M. (2012). An integrated approach to current trends in food consumption: Moving toward functional and organic products?. Food Control, 26(2), 274-281.

Google Ads, (2020). Retrieved on October 17, 2020, from https://ads.google.com/intl/en_pk/getstarted/

Kwasi, (n.d). Retrieved on October 17, 2020, from https://kwasi.com/services/display-advertising/

Lamberz, J., Litfin, T., Meeh-Bunse, G., & Teckert, Ö. (2017, September). User-Friendly Website Design: A Combined Eye-Tracking Study. In 2017 ENTRENOVA Conference Proceedings.

Ledford, J. L. (2015). Search engine optimization bible (Vol. 584). John Wiley & Sons.

Libert, K. (2015). Comparing the ROI of Content Marketing and Native Advertising. Harvard Business Review Digital Articles, 2-7.

Miles, J. (2011). Marketing On YouTube.

Miles, J. (2014). YouTube marketing power: How to use video to find more prospects, launch your products, and reach a massive audience. McGraw-Hill.

Online Food Ordering and Delivery Platforms in Australia, (2020) – IBIS World Market Research Report. Retrieved on October 16 2020, from https://www.ibisworld.com/au/industry/online-food-ordering-delivery-platforms/5538/

Peter Roesler, (2015). 10 stats about marketing food and beverages in the digital age. Retrieved on October 16, 2020, from https://financesonline.com/food-industry-statistics/?zd_source=mta&zd_campaign=14906&zd_term=vanditagrover

Social Media Trends for 2020 and Beyond, (2020). Influencer Marketing Hub. Retrieved on October 16, 2020, from https://influencermarketinghub.com/social-media-trends/

Woods, S. (2016). # Sponsored: The emergence of influencer marketing.