Marketing Management - Vincor Twist Presentation

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  • It’s an occasional drink-Only 17% incidence of overall regular drinking-Lower amount of regular drinkers in all geographic regions (tends to lean towards being a more occasional drink which is not good for steady profits) Only 21% incidence of regular drinking in the most attractive demographic category (19-22  university students)No in-house Capabilties No in-house capabilities to handle the fermentation and pasteurization; equipment investment would be required.Its no unique- Not a unique offering, similar product “Yuha” performed poorly in this category.- Some consumers see this as a drink they can make themselves
  • Small Market- Vodka-based cooler consumers outnumbered gin drinkers by a factor of 10 so the market is small- Lowest instance of regular drinkers across the board (gender, age and geographic region)Little InterestRanked the lowest in every single category in the “Respondents Very Likely or Likely To Try New Cooler”
  • Small Market- Like gin, vodka-based cooler consumers outnumbered tequila drinkers by a factor of 10 so the market is smallCould be too strong- Concern from some customers about tequila overpowering the taste of the coolerLittle Interest- Second least likely cooler to be tried (64%, tied with Energy coolers)
  • Health Concerns- Concerns with regards to mixing energy drinks and alcohol - mixing uppers (stimulants) and downers (depressants) - sends mixed messages to your nervous system which can cause cardiac related problems.- Caffeine is a diureticLittle Interest- Second least likely cooler to be tried (64%, tied with Tequila coolers)- Lowest percentage of occasional drinkers (59%) and tied with fruit-based coolers for second-lowest instance of regular drinkers (17%)
  • Potentially Strong Market77% of total survey respondents likely or very likely to try this product (2nd overall)Tied with tequila cooler for highest incidence of regular drinking at 21%Highest incidence (27%) for regular drinking in university target market UniquePerceived as a unique and new product offeringHealth AppealAppeals to health conscious consumersCounters the dehydration of alcohol - strong appeal for university age demographicNo additional Equipment NeededDoesn’t require any additional equipment investmentUses most popular vodka base
  • Market LEADER PRICE (Smirnoff Ice): $9.65Spring Water Cooler: $9.454 Pack (Premium Association)Similarity to LeaderUNDER $10 Threshold

Transcript

  • 1. PROJECT TWIST
  • 2. World’s 8th largest producer and distributor of wine & wine related products
    Plans to launch a new alcoholic beverage into the Canadian market
  • 3. GOAL:
    TO SUCCESSFULLY INTRODUCE A NEW ALCOHOLIC BEVERAGE INTO THE CANADIAN REFRESHMENT MARKET
    ● OPTIONS ● OPTIONS ● OPTIONS ● OPTIONS ● OPTIONS ● OPTIONS ● OPTIONS ● OPTIONS ● OPTIONS ● OPTIONS ● OPTIONS ● OPTIONS ● OPTIONS ● OPTIONS ●
    Gin
    Tequila
    Water
    Energy
    Fruit
  • 4. GOAL:
    TO SUCCESSFULLY INTRODUCE A NEW ALCOHOLIC BEVERAGE INTO THE CANADIAN REFRESHMENT MARKET
    ● OPTIONS ● OPTIONS ● OPTIONS ● OPTIONS ● OPTIONS ● OPTIONS ● OPTIONS ● OPTIONS ● OPTIONS ● OPTIONS ● OPTIONS ● OPTIONS ● OPTIONS ● OPTIONS ●
    Gin
    Tequila
    Water
    Energy
    Fruit
  • 5. WATER-BASED
    COOLER
    You don’t have to live in the Arctic to enjoy natural glacial water. Vincor introduces a new WATER-BASED COOLER to keep you hydrated (so you wake up remembering what happened last night)
  • 6. Vincor has NO IN-HOUSE CAPABILITIES
    It’s an occasional drink
    ….FOR GIRLS
    ?
    It’sNOT UNIQUE
    REAL
    FRUIT
    JUICE
  • 7. It
    has a
    small
    market
    with not
    a lot of
    interest
    ?
    GIN
  • 8. Small Market
    Tequila could be
    too strong
    Little
    Interest
    ?
    TEQUILA
  • 9. Health Concerns
    Little Interest
    ?
    ENERGY-DRINK
  • 10. WATER-BASED
    COOLER
    It’s UNIQUE
    There’s HEALTH APPEAL
    AdditionalEQUIPMENT NOT NEEDED
    Potentially STRONG MARKET
  • 11. THE FOUR P’s
    PRODUCT
    square-shaped bottle with no label
    packaged in a full, closed, 4-packbox
  • 12. THE FOUR P’s
    PRODUCT
    Square
    shaped bottle with
    no
    label
  • 13. THE FOUR P’s
    PRODUCT
    Target Sales Range: 50 000 – 75 000 CasesExceptional Sales: < or = 100 000 Cases
    Vs.
  • 14. THE FOUR P’s
    PRICE
    $9.45
    Just below market leader price
    Smirnoff Ice
    $9.65
  • 15. THE FOUR P’s
    PROMOTION
    SamplingandTaste Testing
    Limited Time Offers
    Distribution in bars andrestaurants
    Sponsorshipof
    summer sports
  • 16. THE FOUR P’s
    PROMOTION
    WATER-BASED
    COOLER
    You don’t have to live in the Arctic to enjoy natural glacial water. Vincor introduces a new WATER-BASED COOLER to keep you hydrated (so you wake up remembering what happened last night)
    $2.00 OFF
    of a four-pack
  • 17. THE FOUR P’s
    PLACE
    Canada cooler market share: $230,000,000
    QUÉBEC
    Market Share: 25%
    B.C.
    Market Share: 14%
    ONTARIO
    Market Share: 38%
  • 18. THE FOUR P’s
    PLACE
    Canada cooler market share: $230,000,000
    QUÉBEC
    65% interested
    B.C.
    77% interested
    ONTARIO
    80% interested
  • 19. THE FOUR P’s
    PLACE
    Canada cooler market share: $230,000,000
    QUÉBEC
    Target Margin: 30%
    B.C.
    Target Margin: 20%
    ONTARIO
    Target Margin: 50%
  • 20. TARGET MARKET
    WE’LL NEED TO SEE SOME IDENTIFICATION, PLEASE
    We want to target:A YOUNGER GENERATIONPOPULATION AGES:19 – 45 yrs.
    We want to target:THE UPPER CLASS
    AND
    HEALTH CONSCIOUS
    Aged 44 and
    Under:
    Aged 34 and
    Under:
    58%
    38%
  • 21.
  • 22. Extensive Market Research
    Strong Retailer Relationship
    Successful Previous launches
    Established National Sales Force
    VINCOR’S STRENGTHS
  • 23. VINCOR’S
    STEVE BOLLIGER
    Valuable Human
    Capital
  • 24. V
    Previous Failures
    Vincor’s
    Association is limited to the
    WINE INDUSTRY
    VINCOR’S WEAKNESSES
  • 25. Large Presence in BC & ON
    opening in the market
    Adventurous consumers
    Potential for high sales volume
    VINCOR’S OPPORTUNITIES
  • 26. Time Sensitive
    Quotas must be met
    Liquor board approval needed
    New products have a shortlife-span
    VINCOR’S THREATS
  • 27. MARKET SHARE
    ANALYSIS
    Cost per Case = (Pack Price * # of Packs in Case) = (9.45 * 6)
    = $56.7/Case
     
    40000*56.7= $ 2 268 000 0.98 % Market Share
    62500*56.7 = $ 3 543 750 1.54 % Market Share
    100000*56.7 = $ 5 670 000 1.77% Market Share
  • 28. WATER-BASED
    COOLER
    SO, WHAT WE’RE TRYING TO SAY IS...
    Distribution will be concentrated in ONTARIO, QUEBEC, AND BC
    Our water-based cooler will be a trendsetting for “Healthy Alcohol”
    Promotions will begin with sports-sponsorships, limited-time offerings, and sampling and taste-testing
    ...AMEN TO THAT