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COMMUNICATION AUDIT

Prepared by: Bree Graham

Isabella Harrison Eleanor Johnson David Wallis Jack Wilby

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Executive Summary This communication Audit based upon IGA stores located within Mt Eliza Mornington region of Victoria has been conducted. This has been done to view how effective and successful the small grocery stores communication tools have been and evaluate whether the company is successful in promoting their image throughout the local community. After completing the report on IGA it was found that the communication between the stores was quite successful and effective. The communication between IGA stores within the specified region to the local community was also successful, however could be improved in order to promote their slogan of ‘Where the community benefits’ making sure that the customers understood that their main concern was the community, along with strengthening their online communication tactics. Throughout the audit, multiple communication tools were used in order to help the expansion of the report and then entail helped us create the recommendations for IGA. Our target public for the audit was the small population of the Mt Eliza Mornington region that surrounds the local IGA, inclusive of workers, parents and students. Thorough and extensive research including multiple interviews with customers, employees and IGA CEO Fred Harrison himself a list of recommendations has been created in order to help further the internal communication between the stores and head office, also the communication between IGA and its target public; the customers.

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Table of Contents

EXECUTIVE SUMMARY 2

INTRODUCTION 4

METHODOLOGY 4

AUDIT DIARY 6

TARGET AUDIENCE 7

COMMUNICATION ANALYSIS 9

INTERNAL COMMUNICATION TOOL 9 EXTERNAL COMMUNICATION TOOL 11

MEDIA ANALYSIS 13

SOCIAL MEDIA. 13 PAPER MEDIA 13 BROADCAST MEDIA 13

ESSENTIAL STRATEGIC COMMUNICATION STRATEGIES 14

RECOMMENDATIONS 16

CONCLUSIONS 17

REFERENCES 18

APPENDICES 19

WEEKLY MEETING SHEETS 19 IGA CUSTOMER SURVEY TOTALS 24 IGA EMPLOYEE SURVEY 25 TRANSCRIPT OF INTERVIEW 26

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Introduction IGA started out as a small locally owned general store, providing produce for the local community in Frankston, Victoria. However, now it has expanded enormously with more than 1400 stores throughout Australia; IGA now provides the best and finest stock for local communities. For this audit we looked at the store located within the region of Mt Eliza and Mornington evaluating how effective their communication tactics are, not only from internally but also communicating to their target public; the customers. Local customers play a big role within the company, as their main key mission and purpose is to give back to the community, which they do through the use of the community benefit card implementation. This communication technique has helped IGA donate over $33,859,970 to the community in Victoria alone. IGA has a main mission that involves that they value their people above all else, therefore making communication between themselves and their customers extremely critical and of the highest priority. IGA faces multiple competitors such as Woolworths and Coles, especially in the targeted region where this survey was conducted; this is as all stores are situated just kilometers apart. It is critical that IGA has paramount communication tools and that they are being utilized to the greatest extent. Furthermore, the purpose of this audit is to discover how effective both internal and external communications are whilst building on the current tactics to help the shop develop their communication more effectively.

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Methodology This audit of IGA consists of both internal and external analysis to better grasp any and all communications issues. Three separate surveys were undertaken directed at separate stakeholders of the business. Firstly a one on one interview with the owner of IGA to gather qualitative information and for the audit group to gain a strong understanding of internal practices and how high positions in the business view their communication policies. Secondly, two separate surveys were undertaken to collect qualitative data. One survey was directed at employees such as general part timers hired to stack the shelves, serve customers and other sundry functions to recognize how lower placed roles within IGA consider communication practices in everyday store processes. The second survey was composed to assess the external communication issues and was directed towards customers. This survey was undertaken by approaching customers as they shopped, questions were focused on how loyal they were to IGA and which communication tactics are most effective in reaching their target public. A media analysis was conducted to ascertain the organizations current uses of social media and other contact methods. The effectiveness of these methods was assessed via the surveys and interviews to identify, which were operating to their full potential. The audit team consisted of five members and each member of the team was required to be present at each meeting throughout each stage of the audit. The findings and recommendations have been compiled into a table of results and detailed reports.

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Audit Diary

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Target Audience In this audit, we used Maslow’s Hierarchy of needs and Gruing and Hunts Linkages Model to help us figure out who our target audience will be when focusing on Richies IGA the target area. The focus and the audience of this report is the current customers at the local store and also future/potential customers.

Current Customers/Shoppers at Richies IGA: The current shoppers at the evaluated stores evidently have an extremely pronounced knowledge about the company and what is being brought to the local community. The ages vary, however with most of the regular shoppers sitting between an age bracket of 25-‐65 due to the high number of families within the community. The customer’s main focus is on services provided to them, also how the company gives back into their community. The customer’s main reason to shop at IGA is that they believe by shopping there they are doing their bit for the community. The company appeals to this local region’s belonging need, community faith and the self-‐esteem needs of Maslow’s hierarchy. They appeal to the belonging needs, as the shop provides a small and personal environment making all the customers feel welcomed and also a sense of ‘belonging’. It also appeals to the self esteem needs, as by shopping at these local supermarkets and using the community benefit card the customers believe they doing the right thing; giving back to a charity of their choice providing an improvement on personal self esteem.

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Potential Customers/Shoppers at Richies IGA: Targeting potential customers whom shop at competitor chain supermarkets. The likes of Coles and Woolworths have customers who may not be aware of the benefits of shopping local The best way to communicate to this target group is to provide information on how they will benefit from shopping at these local stores, along with benefits of comparisons provided over the stronger supermarkets, chains; education of the community rewards card is one option.

Grunig and Hunt Linkage Model:

RICHIES IGA

Enabling Linkages: Fred Harrison Stake Holders Board of Directors Functional

Linkages: Employees Suppliers Customers

Normative Linkages: Coles Woolworths

Diffused Linkages: Media Mornington/Mt Eliza Community

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Communication Analysis

Internal Communication Tool In the day to day operations of IGA there are many different forms of communication that are used to communicate with staff and management. Internal communications are used to inform staff of changes to policy, uniform, meeting times and other general house keeping business. Staffs use different forms of communication to change shifts, call in sick for work, or leave a message for the following staff that are due to work after them. Overall the staff at IGA stated that the most common forms of two-‐way communication are face to face and phone conversations, and the most common form of downward communication from management to frontline staff is the newsletter and posters that are placed within staffing areas. A small percentage of staff said they did not pay attention to the staff newsletters, although a large portion said they understood it was a part of their job to remain up to date with policies and procedures of their workplace.

As IGA is a very community based organisation, it is a credit to them that they attempt to keep their internal communications also very personable. As can be seen from the below graph, the most common form of communication between departments in IGA is either face to face communication or over the phone, sometimes written notes are also used to communicate with staff who may not be there at the time.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Internal Communication Tools

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When communicating between different IGA stores and with higher management, the most common form of communication is still phone conversations, with conference calls still playing a large role in the communication of day to day business. Communication though emails is the next common method of communication amongst higher levels of management and also other stores. Internal email system allows members of staff who have access to the email system to quickly search other co-‐workers and send them an email. When younger staff are communicating with each other in order to swap or cover shifts they tend to use SMS and Phone calls more than any other form of communication. Staff informed us that the reason they use these forms of communication is that it ensures they get an almost immediate response to their request. The older staff expressed that they don’t feel the need to contact their co-‐workers out of scheduled work time.

13%

65%

22%

Communication with other stores

Email

Phone Call

Conference Phone calls

51% 33%

16%

Store based communication

Face to face

Phone Calls

Communication books (written notes)

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External Communication Tool IGA’s external communication tools are used in a specific way to ensure their personable approach is portrayed through their different types of communication. When customers and local residents were asked how they generally hear about specials at IGA, they stated that TV advertisements and catalogues were by far the most common form of external communication.

Another question which was asked was through the surveying process was if local residents would consider regularly communicating with IGA over social networking platforms. 50% of people said they would consider communication with IGA over social networking platforms.

6%

38%

16%

38%

2%

How do you hear about IGA specials

Newspapers

Catelogues

Social Media

TV adds

Word of Mouth

18%

29% 53%

How do you communicate with other staff outside of work

Social Media

SMS

Phone Call

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One of IGA’s main forms of communication with their target publics where they make use of their slogans ‘How the locals like it’ and ‘where the community benefits’. As seen in the graph below, locals do find the advertisements effective, and do not see them in a negative aspect at all. The communication form is said to portray the staff and organisation in appositive light, with the staff appearing friendly and the organisation being very community orientated.

ineffective

Unsure Effective

Very effective

How effective do you Find the television advertising

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Media Analysis

Social Media. IGA sufficiently utilizes the Internet and social media with the incorporation of these processes within their everyday procedures. The research conducted shows that on average 50 percent of customers communicate via IGA’s social networking sites, where the minority gains access to promotions via the Facebook page and majority of customers never utilize this feature. Along with the initial IGA website provided for social interaction with consumers, there is a set of different Facebook pages. One being for the promotion of IGA as company, where basic information is provided to its followers; information provided of current events with local fundraisers, the work-‐in-‐progress reports on projects is posted here. Another being the Richie’s local loyalty card where this is solely used as a promotional base for the card specials and loyalty rewards are featured. The social media presence is working in accordance of the agenda setting theory where by the ability of these social media forums are being used to potentially influence the salience of topics on the target community’s agenda.

Paper media Information provided by the interviewee of IGA head cooperation stated the belief that their communication tactics were not completely received by their target public. His beliefs that pamphlet and newspaper advertisements are not affective as tools of communications as there is an overwhelming outsource to the public where by it is evident consumers have stopped being as responsive overtime. Situational analysis has provided an examination via both internal and external environments, which has shown a reflection of how throughout the relationship with long-‐term consumers communication tactics have been changing. This has provided benefit to both IGA as a company and the target customer base as factors as evaluated to provide stronger objectives, strategy, and capabilities within hard advertising.

Broadcast Media Television advertisements are a strong tool utilized by IGA to reach their key audiences. Research gathered has shown that the highest percentage of effective media coverage was through broadcast media where by television adverts where slightly more affective than radio. The key communication message of lowest prices, high quality food and community involvement are strongly projected through these tactics of campaigning. Coordination of communication in attempt provide the Principle of Who or What Really Counts in effect with the Stakeholder theory as IGA have the ability to physically show their target public their efforts of duty to put the community first. Provided through the surveys conducted, (Refer Appendices) it is evident through consumer feedback these communication strategies put in place by IGA have been thoroughly effective in reaching the necessary target public.

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Essential Strategic Communication Strategies The table below discusses a basic template to follow in order to achieve the essential strategic communication practices and communicate the desired messages with the target audience. It breaks up each communication practice into the issues involved in the practice, and how each one can be implemented. The table goes on to discuss how evaluation is key to the long jeopardy of the messages and the external communication of the company.

COMMUNICATION PRACTICE

ISSUES

IMPLEMENTATION

Identifying target audience As IGA is a supermarket, it can be hard at times to identify a specific target audience or market, and thus it is difficult to target certain publics with communication. Even if specific target publics can be found, these can tend to waver their support, unless identified to be extremely loyal to the company, which is rare within this industry.

Thorough and prolonged market research is the number one key to identifying the target audience of IGA stores. Through customer surveys it becomes much more clear which types of people are frequenting the stores and also how it is best to communicate with the majority of the customers. Once an understanding has been grasped through market research, all other types of communication will become much more effective.

Developing key messages With a similar issue to ‘identifying target audiences’, within the supermarket industry it can be difficult to develop a broad message as there are so many possible target audiences. This causes many problems, as these key messages must effectively speak to everybody in the market, as everyone is a possible customer or target public.

Through the same market research as it mentioned above, key messages can be created once the target publics are more obviously specified. Once these target publics are known, you can begin to develop the key messages that you want to get along to the major publics. As has been mentioned, these will need to be quite broad as the target publics will be broad across society themselves. However, without any research done, it is clear

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that messages must put across the key values of the organisation: low prices, community engagement, and quality goods.

Communicating key messages

Once target publics and key messages are discovered and developed, the organisation must then decide upon the vessel within which they will get this message to the target publics. This is where the accounting and marketing side of the company must come into play, as advertising and marketing can be very expensive ventures. As well as this, it is vital to communicate this information through the correct channels in order to reach the determined target publics, as pushing information through the wrong channels is a counter-‐productive and costly mistake.

Choosing the correct channels within which to communicate the key messages is the most important implementation tool at your disposal. Within this there is much room for both innovation and creativity, but also much room for failure. This is one of the most important aspects of essential strategic communication practices as it is the actual delivery of all the research carried out in the first two points.

Monitor and Evaluate Once the key messages are being communicated to the chosen target publics through the correct channels, it is easy for an organisation to think their work is done, however this is rarely the case. All of the above points must be evaluated at regular intervals in order to maintain their effectiveness and poignancy. Without this the entire campaign may become counter-‐productive.

All aspects discussed above must be addressed at regular times. This means possibly re-‐conducting market research in order to distinguish changes in the target publics opinions, discussing changes in the key messages being communicated to match these changes to the target publics, and thus changing the way the messages are being communicated accordingly.

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Recommendations

1. Increase efforts for social media promotion; where by employing additional staff to solely focus on social networking promotions whereby strengthening the online presence of IGA.

2. Increase efforts to promote the key message of IGA to the target audience, without the overshadowing dominance of stronger competitors (Woolworths and Coles).

3. Increase of media awareness to promote charity programs without losing focus of intended message; this results in a positive image for the company.

4. Implement a communications and marketing team to ensure opportunities within this area are not missed therefore having the ability to increase the scope of current communication processes.

5. Focus on stronger television and radio advertisements, as this will

resonate on a personable level with the target public.

6. Gain a greater understanding of the customers needs through allowing them a voice, this enables IGA as a company to understand the market required and adjust processes as needed.

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Conclusion This Communication Audit conducted on Richies IGA stores within the regional community of the Mornington Peninsula it has become evident that strong communication strategies are put in place. With the companies main mission to provide a local community based supermarket communication is a durable tool that must be utilized; findings suggest strong tactics in doing so are put in place. Internal and external analysis of the communication breakdown has provided outcomes of strategies with the use of theories to support these. Maslow’s Hierarchy of needs and Gruing and Hunts Linkages Model have been used to analyse the target audience, where use of agenda setting theory and situation analysis theory have been used to evaluation the processes of communication through different media outlets. With the audit focusing strongly on how IGA as a company communicate with their target publics, community feedback has been gathered to furthermore evaluate the consumers’ opinion of their belief of how useful the company’s communication tactics are to personal needs. It has been uncovered that social media is a communication area that will need to be strongly focused on for the future benefit of the evolution of media networking; where by reliability on television and radio marketing has proven to still be consumers’ most favourable tactic of communication. Key messages of communication for the IGA brand must channel essential strategic methods to make sure all efforts are beneficial within practice. WORD COUNT: 2827 excluding executive summary, table of contents ,references and appendices

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References Diggs-Brown B, et al. 2006, ALR 279 Public Relations Management 3rd edition, Ligare Pty Limited, Melbourne. Doorley J and Garcia H F, 2007, Reputation Management – the key to successful public relations and corporate communication , Routledge, New York Downs C W and Adrian A D, 2004, Assessing Organisational Communication, Guildford Press, New York Facebook | 2013. IGA Victoria | [ONLINE] Available at: https://www.facebook.com/IgaVictoria [Accessed August 2013]. Facebook | 2013. Richies Benifits | [ONLINE] Available at: https://www.facebook.com/Ritchies.Supermarkets [Accessed August 2013]. Grunig, J. E. & Repper, F. C. 1992, ‘Strategic management, publics, and issues,’ in Excellence in Public Relations and Communication Management, ed. J. E. Grunig, Lawrence Erlbaum, Hillsdale, NJ. IGA Supermarkets | Independent Grocers of Australia. 2013. IGA Supermarkets | Independent Grocers of Australia. [ONLINE] Available at: http://iga.com.au/. [Accessed September 2013]. Jong, M, et al. 2007. Jong Communication Audit Tool Evaluating the Communication Satisfaction Questionnaire as a Communication Audit Tool. Management Communication Quaterly, [Online]. 20, 261-‐281. Available at: http://mcq.sagepub.com/content/20/3/261.full.pdf+html [Accessed September].

Smith R D, 2005, Strategic Planning for Public Relations, LEA, Mahwah NJ

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Appendices

Weekly Meeting Sheets Date: 21st August 2013 Week Number

5

Organisation Name

IGA

Name of Reporter

Eleanor Johnson

Name of students in the group

Bree Graham Isabella Harris Eleanor Johnson David Wallis Jack Wilby

Name of students attending meeting

All attended

Action:

Responsibility:

Writing up of questions to ask CEO of IGA Bree and David Writing up of questions to ask employees and customers

Eleanor and Isabella

Who will meet with the CEO to have the questions answered

Isabella

Making the layout Eleanor Finding example communication Audits for the group to view

David and Jack

Filling in the meeting sheets Eleanor Finishing off the questions to be asked Bree Questions to ask tutor next lesson Should we keep the audit to one certain area of

Melbourne? For example: The Mornington Peninsula.

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Date: 22st August 2013 Week Number

6

Organisation Name

IGA

Name of Reporter

Eleanor Johnson




All attended

Action:

Responsibility:

Dividing up sections to be completed by each student

Everyone

Deciding which stores will be targeted Bree, Isabella and Jack Determining which communication tools are used in the organisation for discussion with the group

Eleanor and David

Questions to ask tutor next lesson What is included in the word count

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Date: 4th September 2013 Week Number

7

Organisation Name

IGA

Name of Reporter

Eleanor Johnson




All attended

Action:

Responsibility:

In this meeting we showed each other where we were up to with our individual sections and began placing them into the layout where applicable. Executive Summary Isabella Introduction Isabella Table of Contents Eleanor Audit Diary Eleanor Methodology David Target Audience Isabella Communication Analysis Eleanor Media Analysis Bree Essential strategic communication strategies Jack Conclusion Bree Recommendations Bree Questions to ask tutor next lesson

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Date: 5th September

Week Number

7

Organisation Name

IGA

Name of Reporter

Eleanor Johnson




All attended

Action:

Responsibility:

Returned surveys Everyone completed 10 surveys each and these were posted on a Facebook page so they could be easily accessed.

We all dissected the information that was provided to us the CEO of IGA to ensure we all understood what we wanted to take from the transcript to use in different sections of the assignment

All team members

Reviewed all meeting sheets to ensure they were up to date

All team members

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Date: 10th September 2013 Week Number

8

Organisation Name

IGA

Name of Reporter

Eleanor Johnson




All attended

Action:

Responsibility:

For this meeting we all read through each others sections and edited everyone’s sections to ensure the audit flowed and that no ones sections overlapped with anyone elses sections. This has been the final meeting where we put the finishing touches on the assignment and did the submission process.

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IGA Customer Survey Totals

1 2 3 4 5 How loyal are you to IGA over other major supermarkets such as Coles and Woolworths 1 = not loyal – 5 = extremely loyal

12 13 11 2 14

How much attention do you pay to the weekly specials and catalogues 1 = no attention – 5 = a lot of attention

14 10 13 7 1

Do you hold a community benefit card

Yes 22 No 32

How do you rate the friendliness of the staff 1 = Not friendly – 5 = Very friendly

6 24 24

How do you rate the product knowledge of the staff 1 = Not knowledgeable – 5 = Very knowledgeable

6 7 29 12

How do you rate the variety of brands 1 = Limited value – 5= Great variety

7 6 22 12 4

How effective do you find the television advertising 1 = Not effective – 5 = Very effective

7 18 19 10

Would you consider communication with IGA via social networking

Yes 27 No 27

Do you enter IGA competitions

Yes 18 No 36

If no, would you consider entering competitions

Yes 21 No 12

How often do you visit the IGA Facebook page 1 = Never – 5 = Frequently

34 10 8 2

Please specify how many times per month you would access the IGA Facebook Page

9(once a week) the rest said not at all

Where do you find out about the IGA specials (Please circle one) Newspapers 3 Catalogues 21 Social Media 9 Television Advertisements 21 Word of Mouth 1 Do you receive CB mobile offers Yes 13 No 41

Customer Survey

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IGA Employee Survey

1 2 3 4 5 Do you enjoy working at IGA 1 = Do not enjoy – 5 = Thoroughly Enjoy

1 3 5 1

How well do you communicate with the customers 1 = Not well – 5 = Extremely well

1 3 6

How well do you communicate with your managers 1 = Not well – 5 = Extremely well

5 3 2

Do you think the communication techniques used at IGA are effective 1= Not effective – 5 Very effective

8 2

How do you communicate with your fellow employees

Circle the relevant communication tools and number from 1 being most used to 6 being least used

Facebook SMS Face to Face Email Phone call Blogs

3 5 9

What percent of customers understand and use the community benefit card.

80%

Do you regularly serve people that you know personally Yes No (all said no as its not allowed)

What percentage of customers are normally up to date with the weekly specials

60%-70%

Are you regularly consulted on ways to improve communication between front line staff and management? 1 = Never – 5= Very Frequently

7 3

How loyal are you as a customer to IGA in your personal shopping? 1= Not loyal at all – 5= Very frequently

1 2 7

Employee Survey

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Transcript of interview Website, PR Agencies, Press Releases, advertising (tv, local paper)

• how past communications were handled? Past communications were done internally. Local store managers were responsible for their own communications to the public and coordinating their own marketing strategies. However, this did not meet the desired results as often the strategies would not be consistent and the communications fragmented, with some managers communicating more than others.

• How do you inform the public about your business? What works? What doesn’t? We do it via pamphlets, postings on website, newspapers, press releases, advertising (TV, radio)

• Are your graphics coordinated and messages consistent? Yes. The company hires external graphics design company to manage all forms of communication design related activities (i.e. TV, newspaper, pamphlets and website)

• Who are your key audiences? What do they currently know about your business, service, product or organization? Being a supermarket there are no real key audiences. However, when Ritchies were a relatively smaller company they targeted more the older community by reason that those people in the demographic aged above 50 years of age tended to support Ritchies by reason of the Community Benefit Card. Currently, the community knows about Ritchies, our brand and the services we provide but don’t know a great deal about the organization specifically. This means many people find it hard to differentiate Ritchies to IGA, which is not in itself a problem due to the fact the companies are related, however when a person has a negative experience at IGA’s this is reflected on Ritchies. Particularly, as there was a study released by Channel 9 recently which said IGA’s are more expensive than Woolworths which obviously affects the Ritchies brand.

• What are your key communication messages? The key communication messages are low prices, high quality food and that your money goes back to the local community

• do you reach your audiences with the right messages? Hard to answer due to the recent dominance of Coles and Woolworths as the messages seem to be lost in all the current advertising by the big 2.

• What media coverage do you receive? Is it effective? What media opportunities are potentially missed? Media coverage is sporadic and hard to predict. At present media coverage is positive due to the fact the ACCC has come down hard on Woolworths and Coles due to their petrol scheme and their advertising. However, due to size advertising is often missed or not paid attention too. There could be more of a focus on identifying Coles/Woolworths as “the bad guys” and making Ritchies look more favorable due to their community work and the fact they reduce prices in the supermarket rather than in the petrol pump.

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• Do you successfully tell your story through communications? And how? Yes and no. Successfully in that when the message reaches people it resonates but hard to reach a broad range. We reach it through press releases, advertising and in store promotion.

• Need and want to know about how consumers prefer to be reached? Consumers tend to want to be reached

• Strengths and weakness in current communications programs? Strengths in that messages seem to be well coordinated for a company of Ritchies size. Weakness is that too many opportunities are missed as no dedicated communications/marketing manager resides in Ritchies therefore there is scope to increase communications.

• What are potential opportunities for future communications? More influence on Ritchies independence and give back to community and casting Coles/Woolworths in more of a negative light

• What are your current goals and objectives for communications? Goals and objectives are to continue to try and push the “Community Benefits” message and to reach a broader demographic of people. I.e. younger people still tend to shop at big chain stores. Ritchies is also more popular in country Australia rather than suburban Australia which is another goal.

• How well is the current Communications Plan working? Okay. Again could be better with a dedicated team.

• Are your messages clear and consistent? Do you have a coordinated graphic identity? Yes as now communications are more consistent due to reduction in reliance of in-store advertising and independence of managers. However, as managers still have control of how their in-store promotions are managed and delivered there is real difficultly in ensuring the messages are consistent across the 80 grocery stores and 60 liquor stores due to diverse managers.

• Are you reaching key audiences with our messages and moving them to action? Yes – sign up community benefit card has increased over last quarter.

• What communications have been most effective? TV and radio – not newspaper and pamphlets as consumers are flooded with paper these days

• What do customers think of your communications? Hard to tell but okay.

• Do our communications support our overall strategic plan for our business or organization? Yes – but could improve to ensure we are aiming for more efficiency and higher profit

• What would make your communications more effective in the future? More of it and a dedicated team/manager who is able to broadcast the plan across the board to each store to follow

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