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  1. 1. Immix Immix Rachel Smethurst Rodion Salakhutdinov Anselm Lopes Hardeep Sandhu Huzefa Chini Yuvraj Lal What’s your Mix April 3rd, 2013 Project Course: Mark 1027
  2. 2. TABLE OF CONTENTS Immix Executive Summary Slide #3 Section #1: Situation Analysis -Environmental Scan - SWOT Analysis & Idea Slide # 5 Section #2: Marketing Plan of Action - Mission and Introduction - Implementation & Control Slide # 8 Appendix Slide #34
  3. 3. Immix EXECUTIVE SUMMARY Company Considerations: • Company has strong financials, growth, and operations. No notable constrictions on pursuing market opportunities Market Opportunity and Gap: • Very strong industry growth • Have not adequately marketed to Millennial generation who *****Rachel will demand for wine products maintain a large do • Increased desire for novel, innovative, unique wine products Product Outline and Competitive Advantage: • Ready-to-drink wine-liqueur mixed cocktail. Facilitates ease of consuming wine in a younger, higher intensity social environment. Higher alcohol percentage provides higher economic value
  4. 4. Immix EXECUTIVE SUMMARY CONT. Key Year 1 Goals: • $2,205,003.42 in revenue from IMMIX product • 65% availability in GTA bars/clubs Brief Primary Target: Female. 19-30. Social. Trendy. Relatively high alcohol user (min. 1 time per week) Major promotions & Advertising: Building relations with high occupancy bars, sponsorship of major music/art events, strong social media presence, viral marketing, & integration of web and mobile technology.
  5. 5. Immix Section #1: Situation Analysis Company and Brand Category Company: Andrew Peller Limited Brand Group: Round Petal Wines What’s your Mix?
  6. 6. SWOT ANALYSIS Immix Strengths Weaknesses • Brand group has stable multi-distributor relations. New product will be able to utilize those relations • High degree of success with all individual brands within the brand group. Success with Skinny Grape, a narrowly targeted market (calorie conscious females) • Stable finances and operational capacity provides the foundation to capitalize on consumer trends • Locational competitive advantage of wineries and vineyards • Crush brand, the most recent product to be launched, had the highest sales for a product through those channels • Smaller amount of resources in comparison to direct competitor, Constellation Brand. • Low degree of social and mobile media. Lack of presence can result in a discounted image by consumers who view social networks as a primary medium • Do not have as diverse of a selection of product formats, sizes, and ready-to-drink mixed varieties as Constellation Brands • Small number of fun, innovative wines. • Round Petal brand group is relatively new in comparison to other established brands in the company portfolio
  7. 7. SWOT ANALYSIS Immix Opportunities Threats • Substantial, steady market growth provides the opportunity to introduce a new product without taking market share away from established brands • Consumer alcohol preferences switching towards wine • Demand for higher quality wine  can charge higher prices • Untapped Millennial generation. Establishing brand loyalty at this age can help to attract consumers with a high lifetime value. • Increased demand for fun, innovative wines • Increasing integration of social media networking allows company to target nontraditional demographics • Government changes in regulation can have an adverse impact on revenue and product offering. Must keep on top of policies and restrictions • High degree of imports & foreign government subsidies flood the lower priced value varieties. Must find source of competitive • Consumers have a high reliance on social and mobile technology. The lack of utilization of these mediums can be • Wine is not optimally consumed in higher intensity nightlife establishments such as bars and clubs • Younger generation feels as if they are not being marketed to.
  8. 8. Immix Section #2: Marketing Plan of Action for IMMIX Sept 2013 – April 2014 What’s your Mix?
  9. 9. Immix MISSION & INTRODUCTION Socialize a young generation with a fun and joyful atmosphere; bring a clean and fresh taste of fruits with the sparkling wine attitude to their night life. And give them what they want. Immix is a mixed wine cocktail that allows young alcohol consumers to enjoy wine in a social, casual atmosphere. Convenient, easy to hold packaging in combination with a higher alcohol percentage than typical wine coolers, increased the ease in which cosumers can consume wine in a faster paced social environment What’s your Mix?
  10. 10. Immix FISCAL YEAR 1 OBJECTIVES Launch IMMIX into the alcohol market on October 1st, 2013 1. $2,205,003.42 of revenue generated through sales this product in Fiscal Year 1. 2. To drive target market awareness of IMMIX determined by having the product be available in 65% of GTA bars/clubs by end of Fiscal 2013. Micro-Objectives: - Provide sponsorship of Toronto Fashion Week in March 2014 - Launch all 4 varieties of IMMIX -Increase social and mobile media, evaluated by Twitter and Facebook followers. Target of 1,500 followers in each medium What’s your Mix?
  11. 11. Immix TARGET MARKET Key Demographics: - Female. 19-30. College/University educated. Employed in various occupations. Middle - Upper class. Single. Key Behavioral/Psychographic Traits: - Social life and alcohol are synonymous. Frequent bars/clubs/big events as social venues of preference. - Alcohol is an affordable luxury but economic value is key factor. - Balanced lifestyle - Up to date on trends and popular brands. Will seriously consider purchasing a product based on peer group preferences * Sample Consumer Profile Available in the Appendix What’s your Mix?
  12. 12. Immix Instrument audience • Social network active users TARGET CONT. Mass/Indirect Audience В2B • Bars •Restaurants •Night Clubs Secondary Target Market (Demand Audience ) B2C • Our Target or Primary Audience Primary Audience • 19-30 • Female • High degree of social activity • Socialize in clubs and bars What’s your Mix?
  13. 13. Immix PRODUCT POSITIONING IMMIX is a higher-alcohol content wine-liqueur cocktail that provides the young, social alcohol user to enjoy wine in a higher intensity, fastpaced social atmosphere. What’s your Mix?
  14. 14. Immix PRODUCT STRATEGY Product description: - 50% sparkling wine, 25% flavored liqueur, 25% water. - Wine contracted through established APL vineyards; Liqueurs through division of that handles APL non-wine production - Alcohol percentage value is 11%. A lower percentage alcohol percentage for sparkling wine (12%) will be used to balance out the higher percentage liqueur (20%) - Four varietals dependant on liqueur type. (Peach, Lychee, Black Currant, and Cherry.) Key Benefits: - Wine based alcoholic cooler - Convenient, easy to handle packaging - ¼ liqueur. Higher alcohol percentage provides economic value for consumers - Modern/trendy bottle design What’s your Mix?
  15. 15. Immix PRODUCT STRATEGY CONT. Competitive Advantage: Providing alcohol drinkers who have a preference for wine, to consume a wine based beverage in a higher intensity, social atmosphere while maintaining a higher alcohol percentage than other ready-to-drink coolers. Packaging: - 4 pack (341ml standard cans) - Sleek, narrow can design to increase ease of handling - Lighter feel for females - Modern, ambiguous look What’s your Mix?
  16. 16. PRODUCT DESIGN ILLUSTRATION CONCEPT Immix What’s your Mix Immix Immix
  17. 17. Immix PRODUCT STRATEGY CONT. Brand Name – IMMIX [EM-MI:X] Rationale: - Wanted trendy, easy to remember moniker. Avoid using generic varietal based name. - IMMIX is a synonym for blended or mixed - Opportunity to link with certain types of music that are mixed by artists - With slogan ‘what’s your mix?’ believe it would catch on quickly with younger generation What’s your Mix?
  18. 18. Immix • PRICING STRATEGY Retail price is $12.40. Approximately $1.40 above average price for ready-to-drink coolers • Currently “APL” and the brand “Roundpetal” do not have an equivalent product We will set the price for our product at the range between wine and coolers, that will help to define our product into new category “wine coolers”. • 95% of coolers are consist or hard alcoholic beverages such as vodka, rum, gin and whiskey. However our product will be relatively new for the market, because it is made with sparkling wine and liquors. • Higher alcohol percentage than other coolers – Average is 5% – IMMIX is 11 Cost of production per pack + Variable cost 3.77 50% Price offered to distributors 7.54 Selling price before tax 12.40 +HST Selling price after tax 13% 14.42 *Appendix slide #37;38 What’s your Mix?
  19. 19. Immix PLACEMENT STRATEGY - LCBO and Wine Shop are sole distributors - Licensing for bar and alcohol establishments occur through LCBO Year 1 Placement Goals: - 100% placement in Wine Shop retailers - 70% availability in LCBO retailers - Goal of 65% availability in GTA bars/clubs - Sponsorship of major music & arts events - Licensing revenues by high promotions and partnerships with high occupancy bars/clubs in the GTA *Distribution options are limited due to the high degree of regulation in the Ontario alcohol market. What’s your Mix?
  20. 20. PROMOTIONS STRATEGY Immix B2B B2B promotion with different kinds of contests will affect the consumption in clubs. Moreover, some of the contest will stimulate the work of night clubs and bars. That initiative will rise amount of selling products and bring new customers. B2C Affect Different kind of events and activities that will stimulate: real time selling, future time selling, will build an awareness around the brand We will show key benefits through advertising: • Convenient and easy to drink • Part liquor and high alcohol percentage
  21. 21. Immix COMMUNICATIONS PLATFORM Outdoor advertisement Direct messaging (phone) Contests B2B and B2C Internet banners, website and social media Customer Magazines Sponsorship Sampling Programs with bars and restaurants (special offers) What’s your Mix?
  22. 22. Immix ADVERTISING Outdoor Advertisement Direct text Messaging Will be divided into two categories: 1. “Buzz” - developed to create a rumors about the product. Will not be given any names except slogan and brand image. 2. “Informative” - developed to share a key benefits of our product, will show different varieties of bottles. Main aspects of that platform are: 1. First part will create “Buzz”, people will get weird text messages: “What’s your mix?” Needed to attract them to our site and networks. 2. Will be launched to inform potential customers about special offers at bars/nightclubs and inform them about future contests What’s your Mix?
  23. 23. Immix ADVERTISING CONT. NIGHT CLUB PROMOTIONS Will discuss with high occupancy clubs/bars that are popular among 1929 demographic about event promotions. - Hire certain promotional companies such as Mosaic promotions for event staff Discounted products for the events Can sponsor certain nights Social media promotions Quick way of building word of mouth and linking product with target market’s lifestyle Sponsorship “Toronto Fashion Week” Our company will put a press wall on the main fashion event on Toronto – Toronto Fashion week. Our logo will be putted on the invitation cards. Also, we will provide a certain amount of alcohol beverages to “TFW After Parties”. Also we will hire a professional photographer to take pictures of famous people with our product in their hands. What’s your Mix?
  24. 24. Immix ADVERTISING CONT. Sampling Program with Bars Will be launched at LCBO and Wine SHOP to give a general understanding of our product and inform our potential customers about its benefits. Will be given all possible flavors of a product and hire brand representatives with our stylish brand cloth to present our product in more pleasant way. Brand representatives will serve this beverage by themselves in a certain way. Our company will provide a certain amount of our alcohol beverages to sell it there with a special offer hath of price. Moreover, during that activity bartenders and waitresses have will be informed about “right” presenting of our product. All of them have to give not just a glass but a can with our beverage as well. Also, for that particular activity will be developed information lists about mixing our product with other beverages. What’s your Mix?
  25. 25. Immix ADVERTISING CONT. Magazines Web Site We will put our advertising into main magazine - Vogue. This magazine more then anything match with the positioning of our product and its key audience are our potential customers. This advertising will inform the customers more about none visual benefits – lifestyle, nightlife, social aspects. However there will be photos of different flavors. We will have our own website. All the billboards will have QR codes on them, when scanned they will lead to Immix’s website. The website will be an interactive one where visitors will be asked questions about their favorite music and flavors, and asking them to wait for the “Immix” to happen. This is more to create hype and buzz. And get important information about future activity. What’s your Mix?
  26. 26. Immix ADVERTISING CONT. Internet Banners Social Networks Will be developed special interactive banners. That will be playable. People can choose a drink there, open a bottle and spill it into a glass. In the beginning of our activity this banners will interact with people asking them a question: “What’s your mix?” All gathered information will be collected for future activities. Immix will also have a Facebook and Twitter page where the audience will be engaged in contests as well as get the most “Immix” news from and updates from fashion, music and lifestyle. Live interaction will also be promoted through these mediums and importance will be placed on users comments and feedback. This platform will be advertised by every activity. What’s your Mix?
  27. 27. Immix B2C CONTESTS “Ambassador of IMMIX ” “Toronto Fashion Week” Ambassador of Immix is competition during which contestants have to promote our product and reach the maximum amount of likes of related banner: the winner will get a free drinking Immix card, which he can use at every bar or night clubs which have a partnership with us. There will be 1 “gold” cards (winner can visit all our related events for free + get our beverage for free); 3 “silver” (can visit all sponsorship events for free)/ for 1 year only Contest, during which contestants have to create short video clip interpreting “What’s your mix”. Post it on the Facebook and Youtube. The videos also will be posted on our Facebook and YouTube pages, where all can put a “Like” on it. The winner will be decided by users of the Facebook and YouTube, defined by numbers of “Likes”. Top 5 most viewed videos will get a free ticket for the TFW. And the main winner will get a “gold” Immix card. What’s your Mix?
  28. 28. Immix B2B CONTESTS “Bartender of IMMIX” “Bar of IMMIX” Bartender at the partner’s bars who will offer the best mix made with our beverage will win a trip to Hawaii for two persons for two weeks in a 5 star hotel. That activity will help to find out the best mix cocktail with our product. The idea is to create a cocktail like “Red Bull-Vodka”. That will help us to be more popular in the night club area. Moreover, the best cocktail will be decided during the TFW. Bar or Night club where the amounts of selling of our product are more than in other partner bars or nightclubs. Will be reworded by 10 tickets to Hawaii into 5 star hotels. The winner will be decided by the end of fiscal year, when the annual report will be ready. Moreover, the bar/night club will be named as a “Ambassador of Immix” and will be possessed as a Immix place. What’s your Mix?
  29. 29. MARKETING PLAN Immix Format Promotion September 1 side Direct Mail (Text Messages) text November December January February March April Price per 1 unit 1 Outdoor Billboard October 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 Price per activity 4 100000 150000 300000 5000 $ 70,000.00 150000 150000 $ 30.00 $ 31,500.00 5000 $ 12.40 $ 54,600.00 $ 12.40 $ 41,000.00 $ 15.00 $ 105,000.00 $ 12.40 $ 79,200.00 $ 50,000.00 $ 150,000.00 $ 25,000.00 $ 25,000.00 $ 4000 1,000.00 1 15 $ 4000 10 10 TFW 15 5,158.40 $ 6,705.92 $ 7,158.40 $ 8,158.40 10 10 200000 Sampling at stores 0,5 cocktail Joint programs with bars (0,5 price) 1 can Banners social 1000 V Sponsorship Night clubs 1 pack Magazine 0,5 Sponsorship events Bil+Sampl Ambassador of Immix Cards TFW + Immix 5 Tickets + Card Bartender of Immix Hawaii 1 T 1 ticket to Hawaii +$3194.67 $ 9,584.00 $ 9,584.00 Bar of Immix Hawaii 5T 10 Tickets to Hawaii+ $13691.43 to a month $ 9,584.00 $ 95,840.00 $ 676,588.32 $ 676,588.32 Total: Stage: Quartile budget: 1500 Buzz 1500 2000 Reach 7'000'000 veiws (+13'125$ to a month) 1500 1 1500 1000 1 1500 4 events, 1 Gold card +$2235.31 1 card+5TFW $ 31,125.00 $ 106,483.10 $ 137,146.40 $63,846.40 "Active promotion" Q4 "Creating Buzz" Q3 $ 31,125.00 $ 62,485.07 $ 306,114.57 $ 71,202.83 $ 126,216.43 "Gethering harvest" Q1 $ 261,265.66 $ 78,083.10 "Skimming" Q2 +30% safety $ 879,564.82 $ 78,083.10 What’s your Mix?
  30. 30. INCOME STATEMENT Immix Income Statement for Fiscal 2012 and Fiscal 2013 2013 New product Sales (Note 1) Sales (Note 2) $2,205,003.42 $288,788,969.0 Total Gross Sales COGS (Note 3) Selling, General, & Admin. (Note 4) $276,883,000 $290,993,972.42 $183,326,202.63 Gross Profit Promotional Expenses 2012 $276,883,000 $107,257,000.00 $107,667,769.80 $879,564.82 $169,729,279.00 - $78,568,372.55 $74,606,000.00 Total Expenses $79,447,937.37 $74,606,000.00 Net Income Before Tax $28,219,832.42 $32,651,000.00 Note 1: Forecasted Unit Sales * Unit Price (292441*$7.54) Note 2: Sales Growth Expected to be similar to 2012 levels Note 3: Estimated by company to be 63% of Sales Note 4: Tightly controlled around 27% of sales. Additional selling costs associated with the new product will be included in Promotional expenses
  31. 31. MARKETING MIX Immix • “Immix” • A great tasting mix of wine and liqueur which is convenient way of integrating win into bars, nightclubs and parties • 4 Different flavors: black currant, cherry, peach and lychee • Competitive price • $12.40 per 4 pack • Promotional pricing in bars and clubs is the discretion of venue management. Price Place • Sold in 65% of bars, night clubs and restaurants in Toronto • Sponsor 50% of major music events • LCBO, Wine Shop Product Promotion • Out door banners, that create a buzz around brand • Outdoor ads. that inform about key benefits of our product • Sponsoring of TFW • SMS direct marketing What’s your Mix?
  32. 32. Product Launch Direct mail ADV at media ADV at media IMPLEMENTATION Immix ADV at media 7000000 views. Communication with social media Direct mail Direct mail (SMS messages) Direct mail Sampling Sampling BUZZ PERIOD “Bar of Immix” Sampling at LCBO and Winerack Night Clubs Sponsorship “Bartender of Immix” “Ambassador of Immix” TFW Contest Program “hath of price” with the bars Outdoor ADV to create buzz September Outdoor ADV informing our clients about key benefits October Night Clubs Sponsorship “Hath of price” Outdoor ADV informing our clients about key benefits of a product Outdoor ADV informing our clients about key benefits of a product November December January TFW Sponsoring February March April What’s your Mix?
  33. 33. Immix CONTROL Our major activities are made the way when we can see and check the response on our activities. For example “Direct SMS texting” which have to inform people about our events will take part during October. At the end of November we will get the number of people who visited our events at bars and we will figure out the number of product sold there. Our main control tool will be bars and restaurants – if the sells there will go up that mean that our whole campaign is going well. Moreover, also we added a 30% safety amount to our budget to active quickly in case of unpredictable situation. What’s your Mix?
  34. 34. Immix APPENDIX What’s your Mix?
  35. 35. Immix SAMPLE CONSUMER PROFILE Our target is females between 19 – 30 who view alcohol as an essential part of their social life. Either being single, or in a very social relationship, these women look for a alcoholic beverage that can be enjoyed in a casual multigender atmosphere. Having graduated with a university of college degree, maintaining stable employment is just as important as the social aspect of their life. Income level is middle class and above. They have enough income that they have the freedom to select their alcoholic beverage of choice as long as the price is reasonable. They tend to maintain an air of indifference towards money but the economic value of the product is always in the back of their mind. Trends and the popularity of products is very important. They will almost always test out a product that is trendy and hip. The same goes with their music choices, as music is also an essential part of their social life. Their social life encompasses going to the bar, pub, or night club at least once a week, typically on the weekend, in order to socialize with their friends and/or to interact with the opposite sex.
  36. 36. Immix COMPETITOR PRODUCT PRICING Name Price $ Futures Key message and attributes. “Bacardi Breezer” 9.95 Available in four different flavors “orange”, “Strawberry’’, “Pineapple”, “Raspberry”. 4 Pack. Based on spirits.4% of Alcohol. “A splash of Paradise”; made for parties, shine bottle “Mike’s Hard Lemonade” 9.95 Available in different flavors “Blueberry”, “Lime’’, “Black berry”, “Lemon”, “Cranberry” 4 Pack. Based on spirits. 5% Alcohol. “Always different, always refreshing”, Social aspects and lots of trendy teen promotion on the web site. “Palm Bay” 11.95 Available in “Cherry” , “Lime”, “Mandarin”, “Orange”, “Pineapple”, “Grapefruit”, “Mango” 6 pack. Based on vodka. 5% of Alcohol “Palm bay is taking over”, contests with traveling prize “Segram” mixed beverages 9.95 Available in “Wild Berry”, “Orange” 4 pack. 5% of Alcohol “Made with pure spring water” Smirnoff Ice 9.95 Available in different packs: 4/12/24 also in flavors “Raspberry”, “Green Apple”. 5%of alcohol. “Smirnoff mixes the world’s best cocktails” Vex Electric 11.95 “Daiquiri”. “Strawberry”, ”Mai Tai”, “Pinacolada” 7% of Alcohol. “V is for Vodka” Photo
  37. 37. UNIT SALES ESTIMATE FOR THE PERIOD SEPTEMBER 1 2013 - APRIL 31, 2014 Ontario Population (Note 1) 13,505,900.00 20-24 25-29 959,400.00 952,900.00 Ontario Population Between 20-29 1,912,300.00 Percentage Wine Consumers (Note 2) 45.8% 875,833.40 Percentage Female Drinkers 53.0% 464,191.70 Interest Level (Note 3) Awareness (Note 4) Light Drinkers Medium Drinkers 30.0% 70.0% Number of Consumers Fiscal Year 1 4 Purchases (1 every 2 months) 8 Purchases (1 every month) Conservative Unit Estimate for Fiscal Year 1 69,629 48740.13 97480.26 194960.51 292441 Note 1: Provincial and Age Statistics gathered from Government of Ontario Fact Sheet Note 2: Percentage Wine Consumers and Percentage Female Drinkers from PMB Study Note 3: 30% Interest level is conservative estimate based on combined share interest in coolers, mixed drink cocktails, and sparkling wine Note 4: Based on placement goal in LCBO retailers and licensed establishments in GTA
  38. 38. LCBO PRICING Immix Immix LCBO Pricing Mark-Up (Note 1) Consumer Price After Tax $14.41 Container Cost Consumer Costs .10 per bottle $0.40 H.S.T Consumer Price Before Tax Standard tax rate $1.61 $12.40 Consumer Price Before Tax $12.40 Bottle Levy $0.38 Environmental Fee 0.0893 per bottle $0.36 Mark-Up LCBO Costs 0.28 per Litre 54.6% $11.66 Supplier Cost Note 1: All related pricing rates were provided from the LBCO website $7.54
  39. 39. Home About Us Immix WHAT’S your Mix? What’s your Mix? Party Animal Contacts
  40. 40. WHAT’S In your Mix? WHAT DO You listen ?
  41. 41. WHAT’S your Mix? Immix What’s your Mix?
  42. 42. Immix What’s your Mix?
  43. 43. Immix Cards Immix M M Immix Immix What’s your Mix?
  44. 44. MARKING BUDGET BY ACTIVITY Immix Budget share of activities 18% 10% 5% Outdoor Billboard 8% 4% Mobile texting to trend setters 6% Sampling at stores Joint programs with bars (0,5 price) Banners social 22% 15% 12% Sponsorship Night clubs Magazine Sponsorship events Contests $ 879,564.82 What’s your Mix?
  45. 45. Billboard Samples Immix M
  46. 46. Immix WORK CITED • Andrew Peller Limited. 2012 Annual Report. Grimsby, ON: Andrew Peller Limited, 2012. 02 Apr. 2013. < imited%202012%20Annual%20Report.pdf> • LCBO. "Product List, Ready-to-drink/Coolers." Product Search. N.p., Web. 02 Apr. 2013. <>. • LCBO. "Product List, Ready-to-drink/Coolers." Product Search. N.p., Web. 02 Apr. 2013. <>. (Pic) • The Wine Shop. "About Us." The Wine Shop. N.p., Web. 02 Apr. 2013. <>. (Pic) • Vector. "Figures of Dancing Girls with Shadows." Arts & Entertainment. Stoch Photos. N.p.,Web. 02 Apr. 2013. <>.(Pic) • 123RF. "Stock Photo." 123RF Stock Photos. N.p., Web. 02 Apr. 2013. <>. (Pic)