2. Project 2
Conduct an in-depth analysis of Gallo Spirit Brands versus
competitive brands (top 3) in the following categories:
Tequila, Vodka, Rum, and Gin
Create ways to build Gallo spirit business in various business
aspects: Pricing, Ads, Promotion, P.O.S., store support, etc.
3. Agenda
New Amsterdam Vodka and Competition
Competitive Analysis
Growth Strategies
New Amsterdam Gin and Competition
Competitive Analysis
Growth Strategies
Shellback Rum and Competition
Competitive Analysis
Growth Strategies
Camarena Tequila and Competition
Competitive Analysis
Growth Strategies
4. New Amsterdam Vodka
In comparison to the competition:
#2 Retail Vodka Brand in New Jersey
#3 Spirit brand in terms of growth
Only other Vodka ahead is Tito’s
Less of a direct competitor
Top 10 Vodka Growth Brands:
#1 Tito’s – Dollar Change $30,172,506 - % Change 84.3
#2 NAV – Dollar Change $19,822,916 - % Change 53.6
#4 Svedka – Dollar Change $5,222,497 - % Change 5.8
*Note* Smirnoff and Pinnacle both absent from Top 10
Sources: Gallo Provided – 2015 Holiday Focus New Amsterdam PowerPoint
5. New Amsterdam Vodka
“In 2014, New Amsterdam Flavors were the most efficient
on a Sales/SKU basis”
31% of NAV volume is coming from consumers switching
from other Vodkas
1 of 3 NAV consumers new to Vodka
1 of 5 NAV consumers new to Spirits
Signifies the approachability NAV’s marketing has achieved
Source: Gallo Provided – 2015 Holiday Focus PowerPoint
6. Growth Strategies
Relevance of Social Media (Instagram)
“26% of online adults use Instagram, up from 17% in late
2013”
Represents largest major social media growth last year
The group of 18-29 year olds grew from 37% to 53% in the
same time
49% of the total adult Instagram users check at least daily
Advantages centered around brand mentions or re-postings
on personal networks
Potentially large network sizes
Ease of sharing within and across social networks
Credibility of peer-to-peer information
Source: Pew Research Center Social Media Update 2014 Demographics
Pew Research Center Social Media Update 2014 Frequency of Social Media Use
Psychology & Marketing – Creative Strategies in Social Media Marketing (ECU)
7. How Is New Amsterdam Doing?
Numbers for Instagram accounts obtained 7/8/15
9. Gain Followers, Generate Content,
Benefit from Exposure
Provoke Organic Posts
Tagging us & using our hashtags
#shareyourtown social media campaign
Spinoff of the YouTube channel #ItsYourTown series
Authenticity
“When marketers talk about Millennials, the buzzword
“authenticity” is never far behind. Millenials, researchers are
convinced, crave authentic products and experiences.” –
Jeff Cioletti “Vodka” The Beverage Journal
12. Scratch and Sniff “Neckers”
Pleasant aromatics of New Amsterdam flavors
“Scratch and Sniff” neckers placed on bottles corresponding
to provided recipes
Physical interaction with consumers
“51% of consumers looking for more on-package cocktail
recipes or product ideas.”
Source: Mintel Oxygen White Spirits – US – November 2014 – Issues and Insights
13. New Amsterdam Gin
Competition
Direct
Seagrams
Big category players
Bombay
Tanqueray
14. New Amsterdam Gin
Top 5 Gin brand in total volume
Driving category growth (+3.3%)
Volume Change against Last year
New Amsterdam +3.3%
Seagrams -2.8%
Tanqueray+2.9%
Bombay +2.0%
Gin Category -2.1%
Source: New Amsterdam Gin: Driving Category Growth to The Category
15. Growth Strategies
“Gin was meant to be mixed, and consumers likely would
respond to the addition of cucumber, citrus, herbal
flavors, apple and pear, just for a few examples.”
Positioned to be mixed
#MixItUp
Accompanied with new drink recipes
Support consumer submissions
Source: Mintel Oxygen White Spirits – US – November 2014 Issues and Insights
16. New Amsterdam Gin
Greater emphasis at a distributor level
Reinforce brand standards to sales force
Incentives for sales reps
$10 for every core four specific display in
their relative markets
-OR-
$500, $400, $300 for the 3 largest Gin displays
17. Shell Back Rum
Competition
Captain Morgan
Bacardi
Malibu
18. Shellback Rum
#1 Rum Growth Brand 2014
Rum represents the 3rd largest spirit category
Summer represents a pivotal time for rum sales
Summer 2014 saw a +51% dollar sales lift
Source: Shellback National Focus Summer 2015
Repeat Buyers:
Spiced has a higher percentage
of repeat buyers than the
category leader, Silver has the
same as the category leader
19. Growth Strategies
Incentives for tastings
Additional amount for reps
Specifically during summer
Additional POD & Case focuses throughout the calendar
year
20. Shellback Rum
What Gallo has already done…
Disposed of the RIP, implemented a QD
Drives competitive shelf retails
22. Camarena Tequila
100% Blue Agave
This category was +23% in 2014
#2 100% Agave brand
#SAVECINCO campaign was extremely successful
86 million consumer impressions
Half of all 2014 volume lift credited to the campaign
Crafted by 6th Generation Tequila Family
Source: Camarena Tequila – Gallo Provided (IRI)
23. Growth Strategies
Research shows men ages 22-34 are interested in knowing
more about the craftsmanship used by particular white
spirits
Concept sales force can utilize
Interests:
Distillation process
Country of Origin
Promote:
Ingredients
Production process
Unique qualities (aromas, etc.)
Source: Mintel Oxygen White Spirits – US – November 2014
24. Camarena Tequila
Musical motion censored shelf-talker
Inspired by New Amsterdam light-up
Song taken from Website Content
Shelf-talker reinforces the generational element and the
100% Blue Agave aspect
25. Takeaways
New Amsterdam Vodka
Social Media campaign
Scratch and Sniff neckers
New Amsterdam Gin
#MixItUp with recipes
Incentives for reps (displays)
Shellback Rum
Incentive for reps (tastings)
RIP structure adjustment (done by Gallo)
Camarena Tequila
Musical shelf-talker
Heritage and 100% Agave focus
Make note to the audience that the largest amount of time will be devoted to New Amsterdam Vodka, acknowledge this was by design due to the amount of business Gallo does with the Vodka versus the other products and as a result the amount of content to speak to was larger and perceived relevant
Bullet Point 1: This was more than double the efficiency of Ciroc, which was the next best from this standpoint
Bullet Point 2: Good for us from a competitive standpoint, however, may indicate a general willingness to switch making it important for us to avoid having consumers switch again
Bullet Point 1: This represents the largest major social media platform growth last year
Bullet Point 2: Keep this in mind as this age group represents a portion of the Millennial generation that will be highlighted throughout the remainder of the presentation
Bullet Point 3: Generalized, this indicates that it is fair to assume about half of your followers will see your content on a daily basis
Bullet Point 4: This advantages are all generated from this cost efficient platform. *Also, include the direct easily understood example of your best friend from high school tweeting about a movie they just saw*
*Ask the audience*
Out of curiosity, who here has an Instagram account?
Does anyone follow the New Amsterdam account?
*Ask the audience*
Now, after seeing our numbers would anyone like to take a guess at the amount of followers Smirnoff’s U.S. account has?
Svedka 5,939
Pinnacle 3,113
Bullet Point 1: These types of posts by individuals will be “authentic” promotions on the brand that are reaching that persons social network/followers, extending beyond just our brands following, additionally this plays into the social network word-of-mouth element, we also have the ability to repost quality postings ( Elude to #SAVECINO success 86 million impressions/ credited with over half of the lift for that year)
Bullet Point 2: The YouTube series showcases the unique aspects of various cities across the country with NAV making appearances throughout the video, this will take that concept and allow consumers to create their own shortened version, post it on their account while tagging us and using the hashtag
Bullet Point 3: The YouTube series does a great job of generating an “authentic” feel for each city, this will take that perceived authenticity a step further, as the control and effort is in the hands of the consumer
I do want to acknowledge that a similar contest was apparently cleared by legal a year ago, previously we encouraged users to post pictures capturing their town to win a prize, however, as we saw early Instagram has grown in the past year and presumably so has our account, note the post only received 18 likes
Cleared through legal
Exposure to new followers, not “overt” marketing, Incentivized – Reposted on account + Prize of NAV corn-hole, cooler, tailgate tent, bar top + stools (also good for raffles)
Similar to Febreze scratch and sniff stickers that require consumers to physically pick up and interact with the brand, however, in the vodka aisle this will be even more intriguing and different
Bullet Point 2: Takes a step beyond the LED light bar, gets into consumer hands
Seagrams is the most direct competition from a price point standpoint, however, in the gin categories the names Bombay and Tanqueray prove to be the biggest players
Note that other than our Gin, Bombay and Tanqueray are two of the few others to experience a positive result, considering that in general the gin category is down as a whole
Have a greater presence promoting drinks for our gin, use the #MixItUp to assist the social media presence of our Gin, also friendly to encourage consumers to use that hashtag to make suggestions that other consumers could easily find on social media to literally “Mix It Up”
Emphasize that Gin is a part of the core 4 along with 80 proof, peach, and pineapple and deserves/demands a similar attention
Attempt to get Gin on display similar to what we experience with our vodka, thus introduce goals like the two possibilities here to reinforce the importance of a presence to the reps
There are many rum brands, but three that provide tough competition for Shellback are Captain Morgan, Bacardi, and Malibu. These among several other rum brands have been around longer, and consequently are more familiar to many consumers providing one of the biggest challenges for Shellback
Bullet Point 1: Have an extra incentive to create a desire for reps to do tastings of the Shellback rum ($100), what better way for consumers to become familiar with the brand than to try it and enjoy it – this can help to combat a typically less than ideal shelf placement. Likewise encourage this to take place in the summer months in order to take advantage of the increased rum purchasing, additionally if reps were to encourage getting Shellback moved from a lesser shelf location the biggest advantage may come in the summer, retailers may than witness more Shellback sold and consequently be willing to keep the location
Jose Cuervo and Hornitos being more similarly priced, Patrón being the “name”/premium in the category
In the case for Camarena we can focus on the fact that our brand is 100% Blue Agave and promote how this is achieved, additionally, the fact that this is a 6th Generation Tequila family is relevant in terms of the unique qualities and exposing how “authentic” the brand is, particularly in comparison to the more well known (but mass produced) Cuervo, this is something the sales force can be educated on and would be a “fresh” approach in talking with retailers
Generate a shelf-talker/POS that directly address the family heritage and or the distillation/fermentation process, likewise overflow the content into social media for more exposure to this particularly interested age group
This musical motion censored light-up shelf talker will enhance consumer engagement with the brand, increase the amount of consumer impressions and most importantly demand eye contact regardless of shelf-placement, when previously some consumers would immediately reach for Cuervo without noticing Camarena they now are much more apt to engage
