The Two Billion Dollar Man


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A study on The Two Billion dollar man and his Grey Goose.

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The Two Billion Dollar Man

  1. 1. Presented By Shaun DePorter Alex Kern Robert Sullivan Chris Mason Larry Masse chapter six consumer perception the case The Two Billion Dollar Man
  2. 2. the case The Two Billion Dollar Man Mr. Sidney Frank Sidney Frank has been in the spirits business most of his adult life In 1997 Sidney Frank started to import vodka from France, he called it Grey Goose Grey Goose was formally the name of a German wine that failed Grey Goose was positioned as a Premium vodka Grey Goose cost a lot more then other vodkas Bacardi bought the Grey Goose brand for $2.3 billion
  3. 3. connections to Chapter Six Price/Quality Relationship Higher prices are associated with higher quality To reduce risk, consumers tend to buy the most expensive model Niche Market High price vodka for Americans At the time, Absolut, the premier vodka, selling for $17 a bottle, people thought it was outrageous… Grey Goose introduced in 1997 Started a new trend
  4. 4. new market Ultra Premium Vodka Grey Goose…..$34.99 Sky 90…………$32.99 Ketel One……..$27.99 Stoli Elit………$69.99 Ciroc…………..$36.99 Belvedere…….$34.99 750 mL bottle
  5. 5. about Grey Goose Vodka Made from water from the French Springs Filtered through limestone Elegant-looking, narrow frosted-glass bottles Packaged in wooden boxes, like French wines Grey Goose vodka is bottled with a cork rather than a screw-top cap High Priced to compete against other expensive vodkas
  6. 6. abou t Sidney Frank Importing Co., Inc. Founded in 1972 by Sidney Frank Home office located in New Rochelle, NY. With about 35 employees on site About 75 employees located around the country and 1000 part time models Objective to turn import specialty liquor items into national brands Fueled sales of Jägermeister from a few hundred cases a year to about half a million cases per year
  7. 7. Northern Gold Whiskey Packaging: A flashy package with bold letters along with a tinted glass gold bottle Advertising Theme: Appeal to a higher class by placing ad’s in business magazines such as Fortune 500. Also partnering up with other high class products such as a automobile’s and cigar companies Price: One liter of Northern Gold will cost 35-40$
  8. 8. 20/20’s Premium Vodka Taste Test Before the Test 6 Participants aged 21-40, the prime cocktail drinking demographic 1 preferred Ketel One Vodka 1 preferred Belvedere Vodka Remaining 4 preferred Grey Goose
  9. 9. 20/20’s Premium Vodka Taste Test (cont.) The Test The test subjects were given 5 “premium” Vodkas (Grey Goose, Ketel One, Belvedere, Hangar 1, and Stoli Elit) Also one economy brand (Smirnoff) and asked to rate them After trying each of the vodkas, 5 of the 6 subjects agreed on one thing; that grey goose vodka was… “ Thick but not smooth ” “ Something I would never ever buy ” “ Least favorite one for sure ”
  10. 10. 20/20’s Premium Vodka Taste Test The Results The agreed upon least favorite turned out to be the previously acclaimed favorite Grey Goose The subjects were shocked There was no clear front runner for best taste "I guess that says something about the marketing then, doesn't it?" said America’s foremost mixologist Dale DeGroff. "They're not relying heavily on their taste buds. They're relying more heavily on the perceived value, or the status."
  11. 11. Perception Distortion 124 people questioned in Trinidad 97.6% considered safe food practice as “very important” 8.9% related Hazard Analysis and Critical Control Point to safe food prep. 80.5% ranked microbiological hazards most serious threat to food safety
  12. 12. 48.4% of consumers use separate cutting boards for meat and vegetables 6.5% feel it is appropriate to give unfit food to someone else. 79.8% Salmonella most well known 23.7% Diarrhea was common symptom of food-born illness 50% check for expired dates Perception Distortion (cont.) Ambika Boodhu
  13. 13. Taste Test
  14. 14. Taste Test (cont.) Which do you prefer?
  15. 15. Thank You Any Questions?