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
  • Marketing Management - Vincor Twist Presentation

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

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