Herman Miller company promotion strategies and pricing strategies
What is the product’s advertising objectives? Are they sound? Discuss your answer in terms of AIDA model. Are your brand advertisements effective in achieving these objectives?
The product advertising objectives are (Herman Miller, 2016):
Encourage usage of Herman Miller furniture and office systems.
To make consumers attitudes more favourable to the new products such as Remastered Aeron chair.
To build image for their furniture and office systems.
To get idea across on the unique furniture being manufactured by Herman Miller.
To enhance brand loyalty on furniture and office products by Herman Miller.
To establish brand position as durable, stylish and dependable.
To show their designs as innovative.
The Herman Miller advertising objectives are sound according to AIDA model. To motivate the audience to take action due to an advertisement, there is need to use AIDA model as demonstrated by Herman Miller advertisements. This implies action, interest, desire and action. Attention by Herman miller advertisement is brought use of pictures that catch the readers attention. This gives the prospects a reason to watch or look at the advert more. The second aspect used based on AIDA model is interest. After gaining the prospects attention, the advertisement tries to keep them engaged. This involves use of demonstration and illustrations. The third stage is desire where the advertisement shows the prospects how the product can solve their problem. This is achieved through explanations on features of the products and how it can fulfil the needs (Rawal, 2013). This leads to desire to make purchases at Herman Miller. Lastly, there is action which involves persuading prospects to make purchases. This includes use of offer and bonus as evidenced in Herman Miller advertisements. Thus, the brand advertisements are very effective in attaining these objectives. Herman Miller has been able to gain reputation for their innovative advertisements that have been able to attract more sales and enhance brand loyalty.
Fig.1, Herman Miller advertisement
Does your brand use an advertising agency and if so who? Has your ad agency been doing a good job? Why or why not?
Herman Miller uses advertising agencies in some of its advertisements. The agencies used by the company are effective in marketing and communication. The agencies has helped the company in coming up with creative and engaging content. This includes Fairly Painless Advertising and Fuseproject. Based on the success of Herman Miller advertising, it is clear that the agencies have been doing a good job. The firm has been able to come up with creative and well-designed advertisements from these agencies.
Does your brand’s advertisement primarily use rational, emotional or moral appeals?
Herman Miller advertisements primarily use rational and emotional appeals. Through the rational appeal, the brand attempts to show that the product quality and usefulness to the user. This includes stating the benefits, performance and demonstrations in their videos. These appeals to the consumers’ logic and acts as persuasion. Through emotional appeal, the brand advertisements use different techniques to appeal to the users’ emotions (O’Shaugnessy & O’Shaughnessy, 2004). This includes use of tone, colour and lighting. It uses catchy videos which makes the users inclined to listen to.
Fig. 2, Herman Miller advertisement using colour for emotional appeal
Are the advertising media well chosen? What is the advertising budget?
The brand advertising media are well chosen. This is through choosing the media which has the capability to reach the target market. Herman Miller uses print, internet and video advertisements which are strategically broadcasted to reach the target population. Based on the 2016 annual report, Herman Miller had their marketing and selling expenses increase by $14.5 million compared to 2015 (Herman Miller, 2016). This is due to new marketing initiatives which have led to a high advertisement budget. The firm does not state its advertisement budget but shows the increments.
How has the advertising strategy changed over time?
Herman Miller has been able to change their advertising strategy over time. The firm has been able to adopt the modern advertising strategies based on the shifts in technology. Traditionally, Herman Miller made their advertisement on print, radio and video. Despite this, most of the advertisements were print based. The advent of the new media enabled by internet and digital revolution has led to a change in strategy. At the moment, Herman Miller uses YouTube, Facebook and other web 2.0 applications to market their products in addition to the traditional media. The rise in use of mobile platforms such as mobile phones has made it easy for the firm to advertise its products (Fill, 2005).
Focus on one particular ad and critique it. Does your group like the ad or not? Why or why not? Is the ad memorable? Does the ad catch your attention? Will this ad help to increase sales? Could you improve the ad?
The ad being focused on is a video ad on Herman remastered Aeron chair (Designeroffice, 2016). The group likes this ad since it has the capability to turn the viewers into buyers. The group sees this video advert as having adequate information and has the persuasive powers. This is a video that shows what makes the product great and unique through highlighting its features. It has both rational and emotional appeals. Through highlighting the benefits of the chair, the video is highly effective. Use of effective timing has made the video is highly memorable. The video is able to encourage people to take action through showing the viewer how they can access the website to make a purchase. This ad will help in increasing Herman Miller sales. This is due to fact that it is creative and convinces the viewers to make purchase using both rational and emotional appeal. This is an ad that has the possibility to go viral hence leading to more viewers and high possibility of sales (Herman Miller, 2017). This video ad can be improved through use of personalisation. This will make it possible to enhance precise segmentation to target a specific demographic. This will allow Herman Miller to make video ads which appeals to different demographics easily. This is through relevancy of the video to the specific viewers (Mei et al., 2007).
Designeroffice, (2016). Aeron Chair Remastered Herman Miller. Retrieved from https://www.youtube.com/watch?v=ZBLpgu5Nw10
Fill, C. (2005). Marketing communications: engagements, strategies and practice. Harrow, England: Pearson Education.
Herman Miller (2016). Herman Miller, Inc. 2016 Proxy Statement and Annual Report. Materials.proxyvote.com. Retrieved 29 March 2017, from https://materials.proxyvote.com/Approved/600544/20160812/CMBO_295261/
Herman Miller, (2017). Aeron Chairs Remastered. Hermanmiller.com. Retrieved 29 March 2017, from http://www.hermanmiller.com/global/en_apc/products/seating/performance-work- chairs/aeron-remastered.html#/
Mei, T., Hua, X. S., Yang, L., & Li, S. (2007, September). VideoSense: towards effective online video advertising. In Proceedings of the 15th ACM international conference on Multimedia (pp. 1075-1084). ACM.
O’Shaugnessy, J., & O’Shaughnessy, N. (2004). Persuasion in advertising. New York: Routledge.
Rawal, P. (2013). AIDA Marketing Communication Model: Stimulating a purchase decision in the minds of the consumers through a linear progression of steps. International Journal of Multidisciplinary research in social & management sciences, 1(1), 37-44.