Promotions and team building for marketing campaigns

Business Model Canvas is a universal business management concept. It focuses on design and innovation. The Model represents all processes and strategies of business development with in-depth efficiency evaluation. It describes the value offered by an organization to various customers and shows the organization's capacity, the list of partners necessary for creating, promoting, and delivering the value to customers, and the capital relationships necessary for consistent revenue streams. Business Model Canvas includes visualization, layout, and development of possible scenarios and new ideas.

When conducting promotions, special attention should be paid to target market segments covered by the activity. For convenient tracking and quick processing of customer requests, it is reasonable to use CRM systems (Dovhan et al., 2017). CRM systems are software products aimed at automating and optimizing interaction with customers. The systems accumulate information about customers and thus help managers by relieving them of routine tasks. The choice of a particular CRM system depends on the specifics of the business and the functions placed on the software.

The business model canvas consists of nine main components that best illustrate all the aspects necessary for the development of the efficient entrepreneurial activity.

We determine the target segments of consumers that can provide the greatest income from the sale of branded goods. They include all people (target audience by age, gender, and income) and organizations for whom the value, products, and services are created.

A value proposition takes the central place in the concept and allows a company to address customer problems by a proposition from a certain brand and by differentiating proposition by customer segments. Overall, the business model canvas allows to develop personalized propositions for certain groups of customers, without going into details that are prone to change.

Communication is an essential component of the promotion of goods, so it is very important to determine the channels through which we will contact customers, starting from advertising and ending with after-sales service.

Attracting new customers, keeping in touch with them, and keeping their interest - all this is part of the component of relations with customers. Each new customer requires an individual approach and special attention.

The most important component is the revenue stream, where all items are analyzed by dividing them into groups. Thus, we determine what brings the company the greatest income and what the least. It shows the company's income.

The key resources show what is needed for a successful business, it can be people, finances, equipment, and everything that allows to implement a business model.

The key activities show the types of work that should be accomplished by the company at a very high level at all stages of its activity for a business model to function (Loiko et al., 2021).

Potential and available partners are the key partners the company cooperates with and cannot function without (in logistics, marketing, finance, etc.).

A young brand should have the liquidity reserve for the release of at least two collections, from designing and sewing the collections to marketing them. Every year, global fashion brands set certain trends in color palettes, designs, fabrics, and prints. It is important to always pay attention to the popularity of a certain lifestyle and behaviour in society, use the opportunities of the trend to the maximum, and cooperate with famous fashion designers. When creating the brand clothes, it is necessary to find a point of differentiation by size, style, and needs for specific moments of use, as this will allow companies to significantly differ from other producers and be memorable for customers.

When the structure of the business model is ready, it is possible to determine the structure of expenses with key actions and all the resources for investment in brand development and the amount needed to launch a new start-up or a new clothing collection. The major cost items are outlined, along with any factors that may impact their reduction. Figure 1 shows the business model canvas (developed by the authors). promotional marketing project team model yule

The business management concept is the system of approaches and strategies used for efficient business management to achieve its goal and maximize income. The concept provides that the management of a company should consistently work on improving business processes, optimizing the use of resources, and efficient use of personnel. Moreover, business management includes the development and implementation of corporate strategy and the control of financial results.

A logically developed business model canvas allows to describe any business model while understanding its material and technical basis. Launching and developing a brand must be extraordinarily modern. High-quality fabrics and accessories must be used in the production of clothes. The collections must be exclusive, ensuring the models' uniqueness and controlling high quality.

It is important to find out how the war has affected Ukrainian designers (Fig. 2).

Almost every brand has experienced a decrease in sales and problems with partners and logistics (32.1%). Some 34.5% are currently experiencing problems with fabric supply. 13% of the brands have resorted to downsizing, i.e. people have lost their jobs. And only 6 % continue to work without feeling the deep consequences of the war. The biggest loss for any brand is the loss of demand for its products.

Fig. 1. Business model canvas for a clothing brand. Source: compiled based on (Kovalchuk, 2018; Kramskyl et al., 2021; Sodoma et al., 2021, 2021a, 2022)

Promotions help customers to become familiar with the company's products and create positive impressions of them. Companies also benefit from the use of these methods, as attracting customers increases the company's income and market share. Promotions as a special type of sales increase have a number of advantages and disadvantages, which are illustrated in Figure 3.

Disadvantages of promotions stem from the incompetence of the employees involved in the organization and the implementation of these activities, so it is important that the process is handled by professionals who can turn a promotion into an efficient instrument of influence on customers.

Fig. 2. Consequences of the war for Ukrainian brands. Source: developed by the authors

Fig. 3. Advantages and disadvantages of promotions. Source: compiled based on (Pidkaminnyy et al., 2021)

In order to make promotions efficient, the objectives of promotions must be planned (long-term (increasing sales, improving image, and attracting new customers) or short-term (familiarizing customers with new products)). It is very important to choose the target audience depending on the goals and characteristics of the customer and the company's strategy. The sales channels should be determined depending on the company's budget, and the promotional network should be chosen. To achieve the maximum effect of customer interest, promotions should be selected and planned based on the peculiarities of sales outlets. It is necessary to determine the mechanics of promotions realization since the success of a promotion depends on the quality of its technical preparation. It is worth determining the duration of a promotion, the quantity of promotional products, and the terms of their delivery and return.

The efficiency of promotions should be evaluated according to the following parameters:

- Sell-in - sales expressed at purchase price;

- Sell-out (off-take) - sales expressed at retail price;

- ROI - return on investment in promotions;

- Frequency (HH panel) - frequency of purchases based on the consumer panel data;

- Frequency (customer loyalty cards) - frequency of purchases based on the customer loyalty cards;

- Loyalty (HH panel and customer loyalty cards) - the parameter is based on the consumer panel data and customer loyalty cards;

- Number of checks containing the category;

- The size of the purchase containing the category in monetary terms.

The Yul model, the Vidal-Wolf model, the ADBUDG model, and the Danaher-Rust model are used to evaluate the efficiency of marketing communications (Apchel, 2010). We use the Yul model to calculate the optimal budget for a promotional campaign based on the marketing data of the Staff brand.

Calculation formula:

where N - is the number of customers who will become the company's regular customers;

Nmax - is the number of potential customers;

k - is the ratio of customers who have become regular customers to customers who will buy a product or try a service;

k₀ - is the ratio of customers who use the product to those who saw the advertisement;

P - is the cost of one rating unit;

n₀ - is the number of rating units needed to cover the target audience.

The market consists of 135,000 people who buy the brand's products (= 135,000). The main objective of the promotional campaign is to attract 10,800 new potential customers (N = 10,800).

The ratio of customers who have become regular customers to customers who will buy a product is 40% (k = 0,4, ,

The ratio of customers who use the product to those who saw the advertisement is 25% (),

Therefore, the promotion should ensure coverage of 80% of potential customers

Conventionally, 10 conditional promotion units (n₀ = 10) are needed to cover 100% of potential customers, so 8 promotion units are needed for 80% coverage

One promotion unit costs UAH 20,460 (р = 20,460). Therefore, the total budget of the promotional campaign is calculated by the formula:

Hence, E _a= UAH 163,680. Having calculated the annual budget, we can determine that the monthly budget will be UAH 13,640.

The Yul method helps calculate the optimal budget, but it has its advantages and disadvantages. The advantages include the consideration of the requirements to money costs and the number of potential and regular customers (calculated as a percentage). The disadvantage is the visualization of the whole market segment by managers.

It allows us to identify the peculiarities of promotions and improve the scientific conceptual framework. Based on the Yul method, the efficiency of the promotional campaign and the correctness of the calculated optimal budget are verified.

To confirm the materials, we use one of the simplest forecasting methods - linear extrapolation. A linear equation is useful when one parameter, for example, sales of goods and services, increases or decreases proportionally with the increase of another parameter, in this case - time.

The least squares method is used to calculate the parameters of a line. The method provides that the sum of the squared differences between the actual and the predicted values of the dynamic series is the least. Table 1 presents the calculation techniques.

Table 1

Company's sales in 2018-2022 (last 5 years)