Public Relations budgeting is setting up costs for a campaign. It incorporates costs estimates for all activities to be carried out in the PR process. Budgeting in PR requires priority setting and focuses on cost-effectiveness and eliminates ineffective business. all the steps, timing of the set activities and phases to be involved are contained in the budget. Establishing and managing a PR budget is the way successful ventures plan, allocate and track fiscal spending (Shareable, 2019). A successful budgeting process is the backbone for good business growth, development and management and similar to personal finances, planning and discipline must be the foundation of a great budgeting process.
PR Budget for Ulta Beauty
There is no exact amount that is set for PR and marketing. According to a research done by Gartner, firms spent almost 10.2 percent of their total revenue on marketing. 25 percent of the total marketing budget was specifically spent on digital marketing. Small companies spend bigger percentages of their revenue on marketing as compared to large firms according to a study done by SiriusDecisions, a marketing research firm. A great PR budget will enable Ulta Beauty solve their primary problem of public awareness and the values they stand for. By estimating the Budget to sum up to USD 159.3 million, Ulta Beauty's budget will be determined by the problems that they want to specifically address. For each public beneficial to solving the primary problem, there are strategies and tactics to be followed which must have their respective costs.
Ultimate Reward Members Tactics
Promotional emails and newsletters during birthday month-$0.8 million
Creation of an Ultamate Rewards community website-$3 million
Sending thank you mails to members and customers-$0.5 million
Beauty Enthusiasts (Tactics)
Promotion of a seasonal campaign featuring beauty influencers running both online and on television-$15 million
Use YouTube ads and on Univision-$8 million
Highlighting an ethic brand on SPARKED and share with consumers-$0
Come up with paid media posts on Facebook, Snapchat and Instagram-$10 million
Implementation of a more detailed compensation structure-$0
Come up with a unique bonus system based on sales-$10 million
Offer training sessions to store associates for high quality products-$10 million
Update what the training courses offer-$0
Encourage the communication between store managers and other associates for quicker solutions-$0
Celebrate personal milestones-$0
This is meant to motivate brand managers to continue their partnerships with Ulta Beauty.
Hold a beauty exhibit for Ulta Beauty-$10 million
Mail reports and newsletters about profits to all shareholders for transparency purposes-$0.5 million
Reach out on international brands created by women of color in order to attract more diverse clients-$20 million
Strategic Brand Partnerships
The idea is to partner with technology-based firms to create a more innovative ecosystem.
Define key Ulta metrics and their goals needed to track-$0
Co-host shows and events with current and new partners for credibility purposes-$25 million
Break down all partnerships into tiers-$0
Work with current tech partners to come up with a beauty app (Chip Chick, 2019)-$30 million
People are always to associate with brands that not only focus on profits but also the community at large.
Focus on ways employees can contribute to other unrelated activities and pursue their philanthropic goals (Ulta Beauty, Inc., 2019)-$15 million
Encourage members and consumers to donate or round up-$0
Offer incentives for donations that might include winning exclusive prizes- $1.5 million
Chip Chick. (2019, June 26). 6 Augmented Reality Beauty Apps Making Cosmetics Shopping Way Easier. Retrieved from http://www.chipchick.com/2019/06/ctk-augmented-reality-beauty-apps.html
Shareable. (February 28, 2019). Leading beauty brands in the United States on social media in 2018, based on actions (in millions) [graph]. In Statista. Retrieved September 13, 2019, from https://www-statista-com.www.libproxy.wvu.edu/statistics/722104/top-us-beauty-brands-by-social-media-engagement/
Ulta Beauty, Inc. (2019, February 2). 2018 Annual Report. Retrieved from http://ir.ultabeauty.com/resources/investor-kit/default.aspx
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