Marketing Plan for Sandeman Portwine

Marketing Plan Sandeman Port wine in 2012 Sabrina Tosti Guerra Nikolas Vogt Maria Clara Neves João Nuno Guerra 13.12.2011

I. Current Situation • Portfolio Analysis • Marketing Strategy and Financials/BudgetII. Environment Analysis • Macro- and MicroenvironmentIII. SWOT AnalysisIV. Marketing Actions • Marketing Objectives and Target Market • Marketing Strategy and Tactics • Implementation and EvaluationV. ConclusionAgenda 2

George Sandeman (Chairman)Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion 3

• George Sandeman: Scottish merchant who founded Sandeman• The Don: Spanish caballeros de Jerez in a Portuguese student’s cape and wide- brimmed hat• 200 years after, Sandeman is distributing their products in more than 55 markets• Sogrape: one of the major players in the Port business, exports to about 125 countries• Mission Statement of Sandeman: “Famous for pleasure” “As tastes and habits change, people are learning to experiment, chilling their red wine, serving white wines with meat and red wines with fish…Sandeman, too, is experiencing a renaissance as aficionados try new ways of serving it – no longer just as an aperitif or dessert wine, but as an accompaniment to haute cuisine (…)” George Sandeman.Company and MissionCurrent Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion 4

Sandeman Port Red Sherry Madeira Brandy Cocktails Wine Wines-10;20;30; -Armada -Confradeiro40 years old Tawny Reserva Red -Character -Caipe -Ruby 2000; -VVO Solera Sandeman; -Don Fino Gran -Vau -Cream -Confradeiro -Dry Seco Reserva; cocktail Vintage Reserva -Vintage 2002 -Medium Dry -Capa -Bliss Negra; -Cosmo -White -Rare Fino -Crushe -Capa Real; -Fizz -Apitiv -Rich Golden -Imperial. -Hot -etc -Imperial -Imperial on Reserve the Rocks -etc -Founders Reserve -Fine Rich -etc -RainwaterSandeman Portfolio Analysis 5

 Most promising outlook in Sandeman’s portfolio Accounts most for the company’s sales Known for its fruit and style of a great Port Wine, but also with an added finesse Old type but still versatile Fits as an aperitif, digestive or even during meals AwardsWhy Tawny? 6

 Among first companies to label and advertise its wines Different languages and markets Television Cooking magazines Advertisement Websites Sandeman Website Networks in production and distribution with partnersMarketing StrategyCurrent Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion 7

 Revenue: 26,42 Mln € Profit: 2,32 Mln € RoS: 8,78% 60 932€ on marketing expenses 102 091€ on 25,4% of 641 commercial, 200€ other marketing and current distribution operating (deferred costs) assets Inconsistent and low marketing investmentFinancial StatusCurrent Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion 8

• Regulation of production & growing (by CMO & SIVV) Political • Possibility of increase of VAT on Port (by ~10%) • Positive outlook regarding global economy • Shrinking Port wine market since 2007 Economic (decrease of 4% in 2011 compared to 2010) • Exportation of Port wine declined by 5% • Strong social connection to Port wine, Social especially in Portugal and England (The Methuen treaty) • Low innovation (mostly incremental Technology regarding production procedures)Macro: Declining revenues but social connectionCurrent Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion 9

Main Competitors Brand Future Strengths Aims at values like • Versatile brand with unique drinks Freedom, Passion and • Positioned as contemporary Port wine Dreams brand • Well-known for quality old port wines Emphasis on the quality • Often first-mover with new products and techniques • Only completely independent exporter Focuses on the simplicity • Brand represents quality and the national spirit of • Focuses efforts especially on Portugal its products Combine art with the • Churchill’s quiet recent brand and less special characteristics of the traditional location • Positioned as high quality “boutique” Specialized on innovation • Traditional methods and the highest and has established new quality grapes products markets (e.g. • One of the best vineyards in the Douro "Croft Pink“) ValleyMicro: Lots of brands but lack of clear positioningCurrent Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion 10

Strengths Weaknesses • Brand • Limit amount of qualified • High quality labor forceInternal • Lack of promotion • Premium positioning on port wine market • Inconsistent marketing investments • Sogrape Group network • Production technique Brand Inconsist. Premium marketing positioning/ investments quality Shrinking market Sales Opportunities growth Low-quality brands Threats Increasing Imitation of • Shrinking market • Domestic leadership in cooperation products production (PT) • Switch to low-quality brandsExternal • Globalization & International • Increasing importance of new trade producers • Increasing level of • Ongoing industrial cooperation between final concentration producers and intermediaries • Imitation of premium products by white labels Leverage brand, premium position and increasing cooperation to overcome threats and weaknesses. Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion

Sales Market share ExpensesShort term: Long term:• Increase sales by 10% • Increase share of Sales + 5 % (BE, UK and PT) (i.g. -3,6 %) marketing spending in FR by• Increase marketing 25% spending to 415 700 € Sales + 10 % by an increase of 155% (i.g. -11,9 %) • Strengthen through an investment product and brand of 252 700 € (budget for awareness 2010 was 163 000 €) (emotional touch) Sales + 25 % • Find strategic (i.g. -21,6 %) partners for Sales + 5 % (i.g. +7,2 %) development of new sale channels (optimization and Recommendation: Not addressing the US market! modernization)Marketing ObjectivesCurrent Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion 12

Business-to-business Business-to-consumer Medium to high income adults, who • restaurants frequently buy Port wine and drink it • bars as a digestive, appetizer or social • catering companies drink. High level of education.  Premium- differentiation strategy: Tawny Port Wine  Aggressive marketing and distribution strategies  One mission: “Famous for Pleasure!”Who is the target?Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion 13

Product strategy Price strategyTawny Port wine: Current price:• award-winning- • average price quality premium in the top 5 markets equals 5,80 €• special packaging • no lower price, strong brand• combination with haute cuisine image 13,74 €/1L• no imitation (average)Promotion strategy Placement strategyPull strategy: Selective strategy:• interactive and emotional • relationships with upscale marketing restaurants• social media, event-, press- and • website (purchases) outdoor-promotion • Sandeman’s Port wine Museum• brand-fitting testimonialMarketing Mix and strategiesCurrent Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion 14

Testimonial and slogan"Tawny Porto. Every drop is full of pleasure." António Banderas Satisfaction Tawny Full Premium Experience and Porto pleasure character relaxation Reference Ad • Upscale airlines • Social Media • Product package • Restaurants • Trade marketing • EventsMarketing tactics 15

Airport Billboard Golf magazine Packaging with quality sealCurrent Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion 16

Campaign Development 150.000 € Outdoors 32.500 € Social Media 2.000 € Flights brochures 5.000 € Booths 20.000 € Restaurants 5.000 € Specialized Magazines 2.000 € Life-Style magazines 6.200 € Art Events 30.000€ Jan Feb Mar Apr May Jun Jul Aug Sept Starting Date Implementation DateImplementation Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion 17

 Sales ◦ Direct purchases  online purchases  consumer behavior Market Share ◦ Worldwide trend- industry defined Well ◦ Competitors’ market share premium image Brand awareness ◦ Understand costumers’ perceptions and satisfaction Balanced investment Three levels of assessment loyalty aiming at Win customers’ ◦ Company-widelong-term impacts ◦ Department ◦ IndividualEvaluation and ControlCurrent Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion 18

Thank you for your attention!Sources:Conference Board: Global Economic Outlook 2012 (retrieved on 30.11.2011) – http://www.conference-board.org/data/globaloutlook.cfmLopes, T. S. (2005). “Competing with Multinationals: Strategies of the Portuguese Alcohol Industry”. Business History Review, 79: 559-585.Loureiro, N., & Fernandes, P. (Eds.) 2011. Port wine characterisation and positioning in Portugal: XV Congreso Internacional de Investigación en Ciencias Administrativas AC (ACACIA). Universidad Veracruzana. Universidad Veracruzana,, MexicoProtected Designation of Origin (retrieved on 2.11.2011) - http://europa.eu/legislation_summaries/other/l21303_en.htmRebelo, J., Correia, L. & Vaz Caldas J. (2007). “Globalization and wine business: Port wine” (retrieved on 23.11.2011) - http://ageconsearch.umn.edu/bitstream/9448/1/sp07re03.pdfSandeman Website (data for product description, logo, packaging, etc. retrieved on 20.11.2011) - http://www.sandeman.euSogrape BrandScience Case, 2004 (retrieved on 21.10.2011) - http://www.brandsciencenetwork.com.pt/pdfs/conference/Sogrape.pdfSogrape, SGPS, S.A. Annual Report 2010 (retrieved on 15.10.2011) - http://www.sograpevinhos.eu/pdf_info_fin/rel_cons.pdfVinho do Porto (03-2007) by Instituto Superior del linguas e administraçao (ISLA)Wines of Portugal (retrieved on 31.10.2011) - http://winesofportugal.info/pagina.php?codNode=18091&market=2 19

Marketing Plan for Sandeman Portwine

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