Vincor

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Vincor

  1. 1. Vincor: Twist Project By Kritapong Phasuvorapong Gnov09GLM065
  2. 2. Executive Summary <ul><li>“ Vincor is one of the most successful producer and distributor of wine and wine-related products, </li></ul><ul><li>Yr 2004 their revenues exceeding US$400 million” </li></ul><ul><li>“ Vincor was the market leader with 21% market share in Canada. Their Portfolio included popular Canadian wines & refreshment alcohol drink such as Growers Cider, Vex & Canada Cooler” </li></ul><ul><li>“ In 2005, Vincor intended to launch a new alcohol drink since the market was extremely dynamic & consumers always change their preference” </li></ul><ul><li>After analyzed case’s situation, we recommend to </li></ul><ul><li>Spring Water Based with juicy flavors </li></ul><ul><li>Glass with 4 packages open containers and pressure sensitive labels </li></ul><ul><li>Positioning for medium to premium market </li></ul><ul><li>Price caped for $9.45 to allow LTOs and profit margin </li></ul>
  3. 3. Problem Statements <ul><li>“ Late 2005, Kretz was juggling the various demands of a new product launch for Vincor’s refreshment portfolio. She was finding which new alcohol product should be launch by 1 st April 2006 . There were many criteria need to be consider according to pre-launch researches both Quantitative & Qualitative” </li></ul><ul><li>What will be the best alternative way to launch a new product? </li></ul><ul><li>Product to offer on the market </li></ul><ul><li>Selling price to offer- Affordable </li></ul><ul><li>Distribution channels- Executive stores </li></ul><ul><li>Positioning for new product </li></ul><ul><li>Promotion- Majors Gen X+Y events </li></ul><ul><li>Packaging to offer </li></ul><ul><ul><li>Carrier </li></ul></ul><ul><ul><li>Label </li></ul></ul><ul><ul><li>Bottle </li></ul></ul>
  4. 4. Situation Analysis <ul><li>The trends of alcohol drink is fast moving & short life cycle-innovation, R&D is keys </li></ul><ul><li>“ What’s trendy today may not be trendy two years from now.” </li></ul><ul><li>“ The customer is very exploratory and is open to trying new things” </li></ul><ul><li>“ A person’s tastes change from when they are 19 to when they are 22” </li></ul><ul><li>Cdn$230M industry with 6.8M 9litres case sold in 2004 </li></ul><ul><li>Aggressive competition for Spring and Summer </li></ul><ul><li>Quotas limited for no. SKU available each State (10 to 60) </li></ul><ul><ul><li>One buyer and single distribution channel </li></ul></ul><ul><li>Pull system from central buyer </li></ul><ul><ul><li>Need good relationships with owners </li></ul></ul><ul><li>Required Limited time offers (LTOs) and support </li></ul><ul><li>Sales & Marketing program for each store </li></ul><ul><li>Ratio of Sales this type of market in liquor and </li></ul><ul><li>supermarket stores is 90% </li></ul><ul><li>with 10% for Restaurants and Bars </li></ul>
  5. 5. Consumers Analysis
  6. 6. Consumers Analysis
  7. 7. Consumers Analysis <ul><li>Prefer new brands and varieties of coolers rather than brand loyalty </li></ul><ul><li>Key factors need to consider: </li></ul><ul><ul><li>Excited taste- expect better than current market </li></ul></ul><ul><ul><li>interesting packaging (bottle and colour) </li></ul></ul><ul><ul><li>Compelling and unique product </li></ul></ul><ul><ul><li>Value offering </li></ul></ul><ul><ul><li>Liquor based (vodka, rum or wine) </li></ul></ul><ul><ul><li>Carbonate Vs non-carbonate </li></ul></ul><ul><ul><li>Fruity Vs clear colored </li></ul></ul><ul><li>Drawback of coolers </li></ul><ul><ul><li>High sugar content-too sweet, hangover overnight </li></ul></ul><ul><ul><li>Taste too strong & poor aftertaste </li></ul></ul><ul><ul><li>Leave them feeling full and bloated </li></ul></ul><ul><ul><li>Difficulty for male drink alone </li></ul></ul><ul><ul><li>More expensive than beer </li></ul></ul><ul><ul><li>More difficult to mix with food at social events </li></ul></ul><ul><li>Channels of recognized </li></ul><ul><ul><li>Word of month </li></ul></ul><ul><ul><li>Advertising and in-store display </li></ul></ul><ul><ul><li>Bars </li></ul></ul>
  8. 8. Competitors <ul><li>Smirnoff Ice-26% </li></ul><ul><li>Bacardi Breezer-17% </li></ul><ul><li>Mark Anthony Mike Lemon-9% </li></ul><ul><li>Growers Cider-8.6% </li></ul><ul><li>Vex-7.3% </li></ul><ul><li>Canada Cooler-2% </li></ul><ul><li>Market shrank-6% YoY </li></ul>
  9. 9. SWOT Analysis <ul><li>Weakness </li></ul><ul><li>Some exist product was not perform well in the market </li></ul><ul><li>The market share is not stable and possible to decrease due to nature of market likely </li></ul><ul><li>Exist products could not offer more choices </li></ul><ul><li>Positioning as value and low-medium market </li></ul><ul><li>Strength </li></ul><ul><li>Vincor-Strong, experienced in the market </li></ul><ul><li>Has couple products in the market with reasonable market share </li></ul><ul><li>Expertise in R&D and production lines are in-house capability </li></ul>
  10. 10. SWOT Analysis <ul><li>Threat </li></ul><ul><li>Monopolistic for distribution channels </li></ul><ul><li>Nature of product is short life cycle </li></ul><ul><li>(6-12month) </li></ul><ul><li>Risk of investment for new production and packaging </li></ul><ul><li>Opportunity </li></ul><ul><li>Nature of market need new product with a better taste and quality </li></ul><ul><li>Trends of young generation is expected to growth in the refreshment products </li></ul><ul><li>Possible for expansion of market to non-English speaker region and other regions in Canada </li></ul>
  11. 11. 5 Product Options <ul><li>50% Fruit juice based </li></ul><ul><ul><li>Pro </li></ul></ul><ul><ul><ul><li>Healthier, less artificial </li></ul></ul></ul><ul><ul><ul><li>Less gas/bloating </li></ul></ul></ul><ul><ul><ul><li>Easy and pre-mixed drink </li></ul></ul></ul><ul><ul><li>Con </li></ul></ul><ul><ul><ul><li>High sugar levels </li></ul></ul></ul><ul><ul><ul><li>Unsure for % of real fruit juice </li></ul></ul></ul><ul><li>Gin based </li></ul><ul><ul><li>Pro </li></ul></ul><ul><ul><ul><li>Less sugar </li></ul></ul></ul><ul><ul><ul><li>Easy to mix with many flavours </li></ul></ul></ul><ul><ul><ul><li>Unique & sophisticated product </li></ul></ul></ul><ul><ul><li>Con </li></ul></ul><ul><ul><ul><li>Difficulty to drink gin </li></ul></ul></ul><ul><li>Spring water based </li></ul><ul><ul><li>Pro </li></ul></ul><ul><ul><ul><li>Low calories, less sweet </li></ul></ul></ul><ul><ul><ul><li>No hangover </li></ul></ul></ul><ul><ul><ul><li>Unique and new to market </li></ul></ul></ul><ul><ul><li>Con </li></ul></ul><ul><ul><ul><li>Possible to reduce flavours </li></ul></ul></ul>
  12. 12. 5 Product Options <ul><li>Tequila based </li></ul><ul><ul><li>Pro </li></ul></ul><ul><ul><ul><li>Cool concept & fun </li></ul></ul></ul><ul><ul><ul><li>Perceived is stronger taste </li></ul></ul></ul><ul><ul><ul><li>Easy to try </li></ul></ul></ul><ul><ul><li>Con </li></ul></ul><ul><ul><ul><li>Some don’t like Tequila taste </li></ul></ul></ul><ul><ul><ul><li>Taste of Tequila is overpowering of cooler </li></ul></ul></ul><ul><li>Energy based </li></ul><ul><ul><li>Pro </li></ul></ul><ul><ul><ul><li>Increase energy </li></ul></ul></ul><ul><ul><ul><li>Good source of energy-guarana berry </li></ul></ul></ul><ul><ul><ul><li>Pre-mixed and convenience </li></ul></ul></ul><ul><ul><li>Con </li></ul></ul><ul><ul><ul><li>Can not sleep after drink </li></ul></ul></ul><ul><ul><ul><li>Too sweet </li></ul></ul></ul><ul><ul><ul><li>Negative impression like others that exist in market </li></ul></ul></ul>
  13. 13. Financial Analysis Sold cases $50,000 $75,000 Cost per cases $9.45 $9.45 Income $472,500 $708,750 direct cost 30% $141,750 $212,625 direct cost 50% $236,250 $354,375 Sold 50,000 cases   30% 50% Media 37% $52,447.50 $87,412.50 Creative 9% $12,757.50 $21,262.50 LTOs 4% $5,670.00 $9,450.00 Packaing Development 9% $12,757.50 $21,262.50 Image/display/Sale promotion 6% $8,505.00 $14,175.00 Marketing promotion/out-of store trial 31% $43,942.50 $73,237.50 in-store tasting 4% $5,670.00 $9,450.00 Sold 75,000 cases   30% 50% Media 37% $78,671.25 $131,118.75 Creative 9% $19,136.25 $31,893.75 LTOs 4% $8,505.00 $14,175.00 Packaing Development 9% $19,136.25 $31,893.75 Image/display/Sale promotion 6% $12,757.50 $21,262.50 Marketing promotion/out-of store trial 31% $65,913.75 $109,856.25 in-store tasting 4% $8,505.00 $14,175.00
  14. 14. Evaluation Since the Spring Water Based has highest scored, then we recommend Vincor to launch a new product as Spring water based with Vodka 7%. However We also we re- commend to add more fruit juice ratio in the product , to capture consumers that afraid the water based will reduce the taste of beverage   Healthy Easy to drink Sweetness In-house capability Competitors Summary Fruit juice based 7 8 5 4 6 30 Gin Based 4 3 6 6 9 28 Spring water based 6 7 7 7 7 34 Tequila based 4 4 6 6 9 29 Energy based 6 5 5 6 6 28
  15. 15. Recommendation <ul><ul><li>“ To differentiate from other products exist in the market, Twist offer: healthy & energize your daily life , low calories, feel younger with super cool & classy packaging with affordable price” </li></ul></ul><ul><ul><li>Offering more diverse choices–with fruity tastes </li></ul></ul><ul><ul><li>Target market : as medium to premium market for medium </li></ul></ul><ul><ul><li>to high-income consumers, young generation and promote </li></ul></ul><ul><ul><li>on major events , malls, free-try to target consumers located . </li></ul></ul><ul><ul><li>Carrier </li></ul></ul><ul><ul><li>According to our positioning product, we should offer to only 4 pack with open carrier that easy for consumer to carry to party add more value to our product </li></ul></ul><ul><ul><li>Label </li></ul></ul><ul><ul><li>We also recommend to use “pressure-sensitive label” to allows our R&D to creative at most possible to attract more consumers, according to research result , people tends to buy because of packaging is attractive </li></ul></ul>
  16. 16. Recommendation <ul><li>Bottle </li></ul><ul><li>Since the majority of major competitors in the same market </li></ul><ul><li>offer as a Glass bottle- (minor modify for attractive) </li></ul><ul><li>We also recommend to promote “Save The World “ campaign </li></ul><ul><li>by demonstrate CSR program to recycle easily </li></ul><ul><li>Extend our product life cycle (Since our product contained Alcohol as ingredient) </li></ul><ul><li>It also would be good for our consumer to see the container as a glass due to he/she can see the colour of beverage inside easily. </li></ul><ul><li>Price </li></ul><ul><li>As we position our product for medium to premium , the pricing is another factor of value of brand </li></ul><ul><li>We recommend to set price as “$9.45” that lower than our major competitors and gain our initial investment faster </li></ul><ul><li>We also consider of LTOs that should be “ $1 to $1.25” due to we are new to market and it will help us to gain “Win-Win” strategy with Stores </li></ul>
  17. 17. Action Plan <ul><ul><li>Pre-launch & Marketing with Target events </li></ul></ul><ul><ul><ul><li>Young, High profiles, Social Events </li></ul></ul></ul><ul><ul><ul><li>Caleb & Brand Ambassadors </li></ul></ul></ul><ul><ul><ul><li>TV & Young media magazines </li></ul></ul></ul><ul><ul><ul><li>Social network-Facebook, Twitter </li></ul></ul></ul><ul><ul><ul><li>Adsence-Google, yahoo </li></ul></ul></ul><ul><ul><ul><li>Free-try around party events and pubs areas </li></ul></ul></ul><ul><ul><ul><li>Educate healthy awareness program </li></ul></ul></ul><ul><ul><li>Launch new product according to preference location </li></ul></ul><ul><ul><ul><li>Ontario-Quebec-Prairies-B.C and lastly Atlantic region </li></ul></ul></ul><ul><ul><ul><li>Executive & Premium stores </li></ul></ul></ul><ul><ul><li>Delicate & Executive sales personal to visiting stores </li></ul></ul><ul><ul><li>Closely monitors for any reaction in the market and adapt quickly if needs </li></ul></ul><ul><ul><li>Premium hotline for suggestion and complains </li></ul></ul>

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