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January 15, 2016
Beluga Vodka
Proposed Research, Development & Execution of Marketing Strategy
Beluga Vodka is a premium Russian vodka that wants to expand its presence
and sales in the U.S. and the U.K.
In order to grow in these markets, Beluga must identify two territories as well as
craft an appropriate on-brand style and tone based on:
•Profiles and trends of premium consumers in the U.S. and U.K.
•Trends in the spirits industry in both markets
Challenge
The project is built around four core areas of scope and
high-level activity:
•Conduct a gap analysis and competitive analysis
between Beluga and competitor brands
Belvedere, Grey Goose and Ciroc
•Collect stakeholder and customer insights by
applying qualitative research techniques,
including in-depth interviews, in-situ observations,
and contextual inquiry – as appropriate
•Develop user stories and personas
•Create a marketing strategy roadmap built
around the style and tone providing the greatest
opportunity to delight customers (based upon
customer insights)
Scope
Understand
- Audience preferences
- Competitive landscape
- Market trends
1
Analyze
- Customer and market
behaviours
- Potential marketing and
engagement strategies
- Data and survey results
to reveal insights and
opportunities
Create
- Personas and customer
journeys
- Marketing strategies
- Customer engagement
roadmap
- Recommendations on launch,
execution, and timeline
2 3
Approach
Determine baseline
Conduct user and demographic research by interviewing consumers who drink
Belvedere, Grey Goose and Ciroc.
Interview Beluga stakeholders.
Interview consumers, suppliers, service industry workers, non-Vodka drinkers, and
luxury good purchasers to better understand Beluga opportunities, perceptions, and
brand strength.*
Conduct gap and competitive analyses
Understand market position, brand recognition, and customer profiles amongst
Beluga, Belvedere, Grey Goose and, Ciroc.
Review trends in U.S. and U.K. alcohol markets.
Conduct secondary research of alcohol markets in U.S. and U.K to identify
opportunities to inform market strategy.
* See notes
Understand
The Current Situation
Analyze
Develop personas and customer journeys
Synthesize stakeholder and customer interviews, analyze insights and market data,
and understand unique markets to create personas specific to the U.S. and U.K.
Create initial conceptual marketing strategy options
Identify ways to create an emotional connection between Beluga and its customers
through workshopping possible behaviours, habits, and desires customers might
have that would inspire them to drink Beluga.
Incorporate insights from gap and competitive analysis results.
Our Customers and Competitors
Create
Present findings
Validated personas and relevant results. Customer journey to identify points along
purchase path to influence potential customers, create loyalty, and enhance
reputation.
Deliver strategy
Based on quantitative and qualitative research according to parameters identified by
stakeholders, present a customized strategy to make Beluga synonymous with
luxury and pride.
Present recommendations
Present roadmaps to engage customers in different markets, as well as road maps
that provide step-by-step guidance on how to launch and execute strategy.
Value, Loyalty, and Prestige
Understand
• Customers praised the taste and quality of
Beluga.
Beluga is a premium vodka
How Customers Perceive Beluga Vodka
• Customers often enjoyed pairing Beluga with
other luxury items, such as caviar or cigars.
Beluga is a luxury item
• The volume of social mentions of Beluga
compared to competitors Belvedere, Grey Goose
and Ciroc was low. However, there is opportunity
to gain new customers.
• Customers mentioned the brand with Russian
activities or food.
• Americans have cultural stereotypes of
Russians which Beluga could use to its
advantage.*
Beluga Vodka is very much Russian
* See notes
Beluga has low international
brand visibility
Understand
U.S. clubs frequently offer these brands as bottle
service.* Belvedere and Grey Goose in particular, signify
high status. However, there is also a negative perception
due to this reputation.
Belvedere, Grey Goose & Ciroc are prestigious
U.S. consumer behaviour tends to drink vodka in mixed
drinks, often with the intent to get drunk. This is in contrast
to Russian consumer behaviour where drinking vodka
straight is steeped in tradition and has its own etiquette.
Vodka is consumed in mixed drinks
* See notes
“We got a bottle of Beluga which was £££. However, I like to think of it as
more economical because a cocktail in there was 24 francs, which is
about 18 quid. So even though getting a bottle of vodka with sparklers on
a) seems loads shelling out hundreds and b) makes you look like a Grey
Goose Wanker, it probs is more economical. And i'm an accountant which
means it must be true. Also, you can only get a table if you get a bottle,
soz peasants having to stand.”
- http://bit.ly/1Q3zxej
Understand
How U.S. Customers Perceive, Consume Vodka
U.S. consumer behaviour tends to drink
vodka because it doesn’t taste alcoholic. This
behaviour contrasts with vodka aficionados
who appreciate the characteristics of the
base mash, aromatics and oils.
Good vodka has no taste
• U.S. vodka sales are declining as
millennials’ tastes are shifting from
vodka to whiskey.
• Vladimir Putin’s tax and minimum
pricing regime has significantly
impacted domestic Russian vodka
revenue
• Quirky vodka flavours are declining
due to “flavour fatigue”
Vodka is out, whiskey is in*
“Sales in the vodka category have cooled as flavors have
gotten a little too wacky (think cotton candy and birthday
cake as some of the more notable offenders).
Pernod Ricard may have learned a lesson from vodka’s
flavor fatigue. Two of the French beverage giant’s best-
known brands, Jameson whiskey and Absolut vodka, are
getting new additions to their product lines, and for both,
Pernod Ricard isn’t relying on flavors.”
- http://for.tn/1P51rJQ
* See notes
Understand
Vodka Global Market Trends
Analyze
Analyze
Competitive Landscape
Competitive position
(returns compared to industry average)
Low High
Market
attractiveness
(industry average
returns above
cost of capital)
High
Low
Competitive Analysis
Belvedere Ciroc Beluga Grey Goose
ILLUSTRATIVE
Analyze
Thomas considers himself a
connoisseur of quality.
He currently enjoys drinking whiskey
and Scotch. The trendsetter and taste
master amongst his friends, Thomas’
deep knowledge of the different taste
profiles gives him credibility and
influence.
Background
▪ Cares about quality and taste
▪ Stays up-to-date on reviews and
excellent tastes
▪ Demonstrates passion and deep
knowledge, which makes him an
influencer among his friends
▪ Seeks the finest things and
unique experiences
Goals and Attitudes
Thomas could become interested
in vodka if he knew it had the
depth of flavour and unique
production process that Scotch
has.
Opportunity
Matt
Thomas
Taste Maker
Socialite
Matt enjoys going to the club with his
friends.
He drinks to get drunk. He is status-
driven and has bought into the
marketing from brands that promise
prestige. He buys top shelf liquor
because he believes the taste and
potency are superior. He does not have
a deep knowledge of vodka.
Background
▪ Cares about status,
appearances, and perception
▪ Wants to get drunk and will pay
a premium to do so in style
Goals and Attitudes
Matt would order Beluga vodka if
he felt the prestige and
recognition of the brand would
provide superior taste and earn
him credibility.
Opportunity
Beluga’s opportunity is to highlight its unique taste and its strength.
Target Market
Create
• American cultural stereotypes of Russians are that
they love vodka, that President Vladimir Putin is an
audacious man (and so are Russians), and that
Moscow is (or was) a city of wealth and opulence.
• Beluga can capitalize on these stereotypes by
crafting a narrative around how strong, bold and
opulent its vodka and clientele is.
• The traditional consumption of vodka in Russia is
served in special glasses, straight and chilled.
Beluga should create special glassware in which to
serve the vodka, similar to the glassware that
accompanies Stella Artois. The glassware should be
required to accompany the sale of a bottle at a club
for bottle service.
Heritage-forward, authentic, strong
• Russian train station. Opulent.
Inspiration board
• Vladimir Putin. Bold, strong.
• Russian’s love vodka. Experts.
• Russian vodka drinking tradition.
Personas to target
• Matt
Russians Know Best
• Beluga prides itself on its unique production, formula
and high quality ingredients. There is a growing market
of consumers in America who appreciate these artisanal
details in their food and drink. In order for Beluga to
differentiate itself from its competitors, I suggest playing
up the production and unique tasting notes.
• American tastes are turning to whiskey because it is
perceived as having a greater depth of flavour.
However, high-quality vodka can be enjoyed for its
variety of different tasting notes as well. Beluga needs
to launch an educational campaign paired with tastings
and pairings to expand peoples awareness of vodka as
a flavorful spirit.
• Create a culture around drinking vodka like a fine
Scotch or wine.
Unique, engineered, artisanal
• Pappy Van Winkle. Craft.
Inspiration board
• Tastings and pairings. Classy.
• Beluga is truly “made with pride.”
Personas to target
• Thomas
• Russian vodka drinking etiquette.
Vodka Is The New Whiskey
Thank you!

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Beluga Vodka Marketing Strategy Research

  • 1. January 15, 2016 Beluga Vodka Proposed Research, Development & Execution of Marketing Strategy
  • 2. Beluga Vodka is a premium Russian vodka that wants to expand its presence and sales in the U.S. and the U.K. In order to grow in these markets, Beluga must identify two territories as well as craft an appropriate on-brand style and tone based on: •Profiles and trends of premium consumers in the U.S. and U.K. •Trends in the spirits industry in both markets Challenge
  • 3. The project is built around four core areas of scope and high-level activity: •Conduct a gap analysis and competitive analysis between Beluga and competitor brands Belvedere, Grey Goose and Ciroc •Collect stakeholder and customer insights by applying qualitative research techniques, including in-depth interviews, in-situ observations, and contextual inquiry – as appropriate •Develop user stories and personas •Create a marketing strategy roadmap built around the style and tone providing the greatest opportunity to delight customers (based upon customer insights) Scope
  • 4. Understand - Audience preferences - Competitive landscape - Market trends 1 Analyze - Customer and market behaviours - Potential marketing and engagement strategies - Data and survey results to reveal insights and opportunities Create - Personas and customer journeys - Marketing strategies - Customer engagement roadmap - Recommendations on launch, execution, and timeline 2 3 Approach
  • 5. Determine baseline Conduct user and demographic research by interviewing consumers who drink Belvedere, Grey Goose and Ciroc. Interview Beluga stakeholders. Interview consumers, suppliers, service industry workers, non-Vodka drinkers, and luxury good purchasers to better understand Beluga opportunities, perceptions, and brand strength.* Conduct gap and competitive analyses Understand market position, brand recognition, and customer profiles amongst Beluga, Belvedere, Grey Goose and, Ciroc. Review trends in U.S. and U.K. alcohol markets. Conduct secondary research of alcohol markets in U.S. and U.K to identify opportunities to inform market strategy. * See notes Understand The Current Situation
  • 6. Analyze Develop personas and customer journeys Synthesize stakeholder and customer interviews, analyze insights and market data, and understand unique markets to create personas specific to the U.S. and U.K. Create initial conceptual marketing strategy options Identify ways to create an emotional connection between Beluga and its customers through workshopping possible behaviours, habits, and desires customers might have that would inspire them to drink Beluga. Incorporate insights from gap and competitive analysis results. Our Customers and Competitors
  • 7. Create Present findings Validated personas and relevant results. Customer journey to identify points along purchase path to influence potential customers, create loyalty, and enhance reputation. Deliver strategy Based on quantitative and qualitative research according to parameters identified by stakeholders, present a customized strategy to make Beluga synonymous with luxury and pride. Present recommendations Present roadmaps to engage customers in different markets, as well as road maps that provide step-by-step guidance on how to launch and execute strategy. Value, Loyalty, and Prestige
  • 9. • Customers praised the taste and quality of Beluga. Beluga is a premium vodka How Customers Perceive Beluga Vodka • Customers often enjoyed pairing Beluga with other luxury items, such as caviar or cigars. Beluga is a luxury item • The volume of social mentions of Beluga compared to competitors Belvedere, Grey Goose and Ciroc was low. However, there is opportunity to gain new customers. • Customers mentioned the brand with Russian activities or food. • Americans have cultural stereotypes of Russians which Beluga could use to its advantage.* Beluga Vodka is very much Russian * See notes Beluga has low international brand visibility Understand
  • 10. U.S. clubs frequently offer these brands as bottle service.* Belvedere and Grey Goose in particular, signify high status. However, there is also a negative perception due to this reputation. Belvedere, Grey Goose & Ciroc are prestigious U.S. consumer behaviour tends to drink vodka in mixed drinks, often with the intent to get drunk. This is in contrast to Russian consumer behaviour where drinking vodka straight is steeped in tradition and has its own etiquette. Vodka is consumed in mixed drinks * See notes “We got a bottle of Beluga which was £££. However, I like to think of it as more economical because a cocktail in there was 24 francs, which is about 18 quid. So even though getting a bottle of vodka with sparklers on a) seems loads shelling out hundreds and b) makes you look like a Grey Goose Wanker, it probs is more economical. And i'm an accountant which means it must be true. Also, you can only get a table if you get a bottle, soz peasants having to stand.” - http://bit.ly/1Q3zxej Understand How U.S. Customers Perceive, Consume Vodka U.S. consumer behaviour tends to drink vodka because it doesn’t taste alcoholic. This behaviour contrasts with vodka aficionados who appreciate the characteristics of the base mash, aromatics and oils. Good vodka has no taste
  • 11. • U.S. vodka sales are declining as millennials’ tastes are shifting from vodka to whiskey. • Vladimir Putin’s tax and minimum pricing regime has significantly impacted domestic Russian vodka revenue • Quirky vodka flavours are declining due to “flavour fatigue” Vodka is out, whiskey is in* “Sales in the vodka category have cooled as flavors have gotten a little too wacky (think cotton candy and birthday cake as some of the more notable offenders). Pernod Ricard may have learned a lesson from vodka’s flavor fatigue. Two of the French beverage giant’s best- known brands, Jameson whiskey and Absolut vodka, are getting new additions to their product lines, and for both, Pernod Ricard isn’t relying on flavors.” - http://for.tn/1P51rJQ * See notes Understand Vodka Global Market Trends
  • 13. Analyze Competitive Landscape Competitive position (returns compared to industry average) Low High Market attractiveness (industry average returns above cost of capital) High Low Competitive Analysis Belvedere Ciroc Beluga Grey Goose ILLUSTRATIVE
  • 14. Analyze Thomas considers himself a connoisseur of quality. He currently enjoys drinking whiskey and Scotch. The trendsetter and taste master amongst his friends, Thomas’ deep knowledge of the different taste profiles gives him credibility and influence. Background ▪ Cares about quality and taste ▪ Stays up-to-date on reviews and excellent tastes ▪ Demonstrates passion and deep knowledge, which makes him an influencer among his friends ▪ Seeks the finest things and unique experiences Goals and Attitudes Thomas could become interested in vodka if he knew it had the depth of flavour and unique production process that Scotch has. Opportunity Matt Thomas Taste Maker Socialite Matt enjoys going to the club with his friends. He drinks to get drunk. He is status- driven and has bought into the marketing from brands that promise prestige. He buys top shelf liquor because he believes the taste and potency are superior. He does not have a deep knowledge of vodka. Background ▪ Cares about status, appearances, and perception ▪ Wants to get drunk and will pay a premium to do so in style Goals and Attitudes Matt would order Beluga vodka if he felt the prestige and recognition of the brand would provide superior taste and earn him credibility. Opportunity Beluga’s opportunity is to highlight its unique taste and its strength. Target Market
  • 16. • American cultural stereotypes of Russians are that they love vodka, that President Vladimir Putin is an audacious man (and so are Russians), and that Moscow is (or was) a city of wealth and opulence. • Beluga can capitalize on these stereotypes by crafting a narrative around how strong, bold and opulent its vodka and clientele is. • The traditional consumption of vodka in Russia is served in special glasses, straight and chilled. Beluga should create special glassware in which to serve the vodka, similar to the glassware that accompanies Stella Artois. The glassware should be required to accompany the sale of a bottle at a club for bottle service. Heritage-forward, authentic, strong • Russian train station. Opulent. Inspiration board • Vladimir Putin. Bold, strong. • Russian’s love vodka. Experts. • Russian vodka drinking tradition. Personas to target • Matt Russians Know Best
  • 17. • Beluga prides itself on its unique production, formula and high quality ingredients. There is a growing market of consumers in America who appreciate these artisanal details in their food and drink. In order for Beluga to differentiate itself from its competitors, I suggest playing up the production and unique tasting notes. • American tastes are turning to whiskey because it is perceived as having a greater depth of flavour. However, high-quality vodka can be enjoyed for its variety of different tasting notes as well. Beluga needs to launch an educational campaign paired with tastings and pairings to expand peoples awareness of vodka as a flavorful spirit. • Create a culture around drinking vodka like a fine Scotch or wine. Unique, engineered, artisanal • Pappy Van Winkle. Craft. Inspiration board • Tastings and pairings. Classy. • Beluga is truly “made with pride.” Personas to target • Thomas • Russian vodka drinking etiquette. Vodka Is The New Whiskey