Group 4_Business Plan

Global Corporate Entrepreneurship
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BUSINESS PLAN
Case Study : TECHNO By Artic
Group 4:
Elena Banchero Assietti
Silvia Grieco
Giacomo Piazza
Index
1. Executive Summary
2. Product Idea (Costumer Need and Business Opportunity)
3. Marketing Plan (Customers Target and Marketing Strategy)
4. Operation Plan (Business system and organization)
5. Financial Projections (Financing)

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EXECUTIVE SUMMARY
Executive summary
ILLVA Saronno S.p.A. is an Italian company leader in the spirits’ business.It is part of the Group
ILLVA SARONNO HOLDING S.p.A., controlled by the family Reina, who is the owner for the
100%.The main product is Amaretto Disaronno, that is sold all over the world, other famous
products are Aurum, Zucca, Isolabella Sambuca and Artic Vodka.
In the last years ILLVA developed inside the brand Artic a new and innovative product: Techno by
Artic. This is a novel product with an edgy tech twist.
Its low alcohol content is favorable for being consumed by a huge range of people.
The core concept of the idea, is to organize several events with Techno by Artic as starring. The
main goal is to create a unique experience that will be able to make this brand a recognizable one all
over the world. Thanks to these event in the entire Italy, the aim is to spread the brand name within
the target consumers.
The goal will be achieve through the creation of theme nights in which the participants can have fun
with their friends and spend a memorable night drinking Techno by Artic.
To reach this objective the idea is to organize a contest.
There will be several nights with different themes, where costumers will be immortalized with their
drink; then all the pictures will be uploaded on Social Networks and the picture with most likes will
be used for representing the future events. This new way of mixing fun, entertainment and colours
can lead to a revolutionary trend in which the target will be highly involved.
All these events will be used as unconventional communication for promoting Techno by Artic,
using three words, colour, fluorescent and fun.

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PRODUCT IDEA
Problem:
A real problem that afflicts our society is the boredom. Many young people often stroll around
without a destination during the weekends’ evening. They tend to do always the same things. And
sometimes their only entertainment is to drink big quantity of alcoholic beverage.
Our aim is to fight boredom moments that characterized their spare time.
And we want do this using new kind of events linked with an innovative and young product:
Techno by Artic.
How to resolve - Innovative event:
Creating moments that will be lived as new special ritual for making the evenings special and
memorable.
It will be like a costume party, but for each event the theme will be different and the aim for each
person, who will be participated, will be to try to be similar at one famous star, picture, politician,
historical personality.
The main aspect of these events is that they are based on the game of similarities.
In this way people could have fun also during the previous weeks try to find the perfect mask for
the event. And during the evening they could make up with fluorescent color that will make the
costume unique and unforgettable.
The costume will be immortalized taking many photos which will be published on the main social
networks.
Through these channels it could be possible to start a race for decide which is the best costume, and
the picture with winner will be used to publicized the next event.
Doing that the thrill for the evening will be overlooked not only that evening, but also the weeks
previous and the following ones.
In this way like a vicious circle will be created around the evenings and the product that will be
protagonist.
What is it innovative?
- Not the ordinary evenings but costume party.
- Introduction of a new aspects: Game of similarities; in this way it could be possible to have fun
together creating also a competition with the others to have the best costume.

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- The expectations related with the evening start weeks before the date of the event, because when
it’ll be communicate the theme of the game will be still unknown.
- Use the social network as main communication channel.
- Use the winner of the race for the best costume as imagine for the next event.
Potential benefit for the company:
With these kind of events a word of mouth about the product will start. So the brand’s
recognizability will be increased. It could imply a major return for the Company.
In addition the brand will not be related with the idea of alcoholic hoot, but with funny moments.

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MARKETING PLAN
Analyze the Market
Emerging markets are becoming increasingly important as consumers of spirits and imported brands
are growing rapidly, being now key markets for the global spirits industry.
Despite the period of crises we are facing and according to latest full year data, the global spirits
market expanded by 7% in volume between 2010 & 2011.
In order to drive a correct analysis, we can firstly observe that the European spirits market has great
similarities with the American one: so, it is possible to be focused simply on data regarding about
the last one.
First of all, it’s important to find out what the costumers are more interested in. The Americans
(and, of course the European too) prefer the category of white spirits, and the most sold white spirits
in these regions is Vodka.
The main trend in the last few years is the Ready To Drink: people are not attracted anymore by
cocktails full of ingredients, but they just want their drink as it is in the bottle. The RTD trend is
represented also by the fact that many of young consumers prefer now to have party at home for
several reasons: it is more intimate, there aren’t crowd bars, there is less hoosle and, most of all, it’s
cheaper (this is why 79% of consumers have drunk alcohol at home in the last 6 months).
A lot of consumers are now looking for low-alcohol drinks; they want a lighter alternative to all the
spirits in the market right now, because of two main reasons: the first one is that they wants to enjoy
more the drinking experience and they couldn’t do this if they drink high-alcohol spirits and the
second is that they want to avoid the high percentage of calories that high-alcohol spirits contain.
As said before, the RTD trend is spreading fast, but, in the meantime, people are fed up with usual
spirits tastes: in fact they would like to have different tastes for usual spirits, this is why flavored
vodkas are increased for the 25% between 2010 and 2011.
What costumers are now attentive of the packaging too: they want something that taste good, but
that is also beautiful to look.
An important phenomenon of last years is the Premiumisation that it actually is recognizing some
brands that are categorized as “Premium”. In order to be part of this category, your product should
fit in some characteristics as:

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 Quality
 Exclusivity
 Authenticity
 Packaging
 Taste
 Celebrity endorsement
 Worth
 Excitement for consumers
 Make consumer look and feel as his best
Why the Premiumisation is now so important? It’s easy to find the answer in the percentage that
represent the value of Premium category in 2011: 21%.
Target
Who TECHNO by Artic is designed for?
In order to define better the segment Artic is focused on, it’s useful to use different criteria as:
 Geographic
 Demographic
 Lifestyle
 Behavior
 Purchasing Behavior
Thanks to these, it’s easier to mark the preferred target characteristics.
The strategy that TECHNO by Artic has developed will cover for its starter time the entire country
of Italy and it is thought for young costumers: boys and girls indicatively from 18 to 26 years old
that spend the days from Monday to Friday attending school, studying or working at least 8 hours
per day and that wait for the weekend in order to have fun with their friends and to meet new people
to enlarge their network of relations.
This is the main objective: having fun!
About young people that have fun there is an old prejudice: it’s common to think that it’s necessary
to get drunk in order to have fun with friends. The goal is to destroy this prejudice demonstrating
that young people can have fun in a different way, they can have fun responsibly.
As said in the market analysis, costumers now have a clear idea of what they want and how they
want it. Basing on that analysis, TECHNO by Artic responds to all the requests: it is the perfect

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RTD spirit, thanks to its alcoholic content of 14.9° it’s a low-alcohol drink, its range of flavors can
satisfied all the costumers and the innovative design of the bottle is extremely attractive.
More than all, what is noteworthy is the fact that this product contain almost every characteristic of
a classical Premium product: the brand Artic guarantee Quality and Authenticity, the distribution
reserved to Pubs gives an Exclusivity trait to the product, the two main peculiarities of TECHNO by
Artic (several tastes and particular design and packaging) are essential and this is another common
point with a Premium product; other two important Premium characteristics are the excitement and
the good looking & feeling that the product brings: these two concepts are achieved by the theme
nights organized by TECHNO by Artic.
Young people prefer to have party at home because drinks are really expensive: with 2 euros per
shot, here is the opportunity to party in Pubs with friends!
The distinctive trait of the chosen segment is that the people want to feel part of the brand; in order
to realize this wish will be essential the use of social network, as for example Facebook, Instagram
and Twitter.
Marketing Strategy
This section will be about how to reach the goal expressed before.
The idea is to organize theme nights in different Pubs all over Italy to make people have fun
spending time with their friends.
The schema below shows how it will work:

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The TECHNO-Game starts with the creation on the event on the Social Network, in order to let the
people know about it and instill curiosity in them. The special theme will be revealed just 4 or 5
days before in order to create a kind of suspense that will increase the curiosity.
There are two different type of parties: the Winter one will take place in Pubs in all the Italian cities,
while the Summer one will take place in the seaside resorts and Acqua Parks.
During the party, people can have fun thanks to the “Make-up Station” where they can use
fluorescent colors to make up and the “Pic Station” where a photographer will immortalize the best
moment of the night: these picture will be the object of the contest.
In the next days, everyone is invited to give the thumb up to the pic they like most and, at the end of
the month, the photo that has received more likes will win the contest.
What does it win? The winning pic will be the one that will represent the events the month after.

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OPERATION PLAN
The following section is mainly focused on the organization of the actions that are going to be taken
in order to achieve the expected results. Since the plan is based on the creation of an event, one of
the key point that the company should follow is the realization of a solid value chain between the
public relations unit and partners. In order to do that, inside this unit, it is recomandable to nominate
one person as the Artic Techno representative that will be specialized in the promotion of the
events. This figure will be directly trained by the public relations responsible and updated to all the
new trends.
Artic Techno representative duties:
 Follow the Artic Techno events;
 Build solid relationships between venues and clients;
 Represent the Company;
 On the behalf of the Company take win-win decisions.
In the process of giving visibility to the product, another key figure will be a social media specialist
that will help advertise the event through the social networks. The expertise requested is again
related to the public relations one.
Social media specialist duties:
 Now daily trends;
 IT social networks knowledge;
 Public relation expertise.
Events will take place in two different seasons and the features will change between winter and
summer. Events in both locations will be free for the company, since it is the location that accept to
do the party. Costs for the company are detected in the salary of various specialist and on the
remittances of gadgets and colours.
Winter Party Summer Party
Pubs Seaside resort
All italians cities Acquapark

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The PR responsible and the Artic Techno representative (ATr) should met once a month and create
a wide range of possible events that will be discussed with the Board of Directors. Events will take
place only once a month in the same venue, but having a multiple choice possibilities could help not
to create time lapses within parties.
1st Step
The public relations unit should contact a graphic designer (GD) in order to create eye catching
flyers and advertisements. In addition he will figure out the frame were Artic Techno's customers
will take pictures. The frame will be transported on the party's evening and it will be in the
proximity of the counter in order to take a picture with the Artic Techno consumers (pic station).
Near the pic station, customers will be entertained by a make up station, were they will make up
with fluorescent colours for all the body.
2nd Step
The Artic Techno representative should select venues in order to organize the events. The event
should take place during weekends and mainly on friday night. In order to create expectation there
will be an “event turnover”; it means that only once a month the event will take place in the same
venue.
Parameters of location selection
Economical Not economical
Revenues Number of clients per night
How many shots does it sell Proximity to big cities
Willingness to buy Artic Techno How many likes on the main socials
3rd Step
Advertise and let the event go public. The support of a social media specialist (SMS) will be very
useful since he will know how the social network can work better. In Italy the suggestion is to focus
the attention on Facebook and Instagram.

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The hashtag # will be the instrument used in order to create a common web environment where the
visibility of the product will be highlighted. There will be one hashtag created and used for every
party; it will be easier to detect the winner of the contest.
Facebook
Create a page on the event. The page will be named both with the Company product and the venue's
one. There are no costs in following the strategy, the only remittance will be the SMS ones.
Source Example: Facebook
Instagram
Using this social it will be possible advertising both the event and the location and in addition,
satisfied customers will be able to post pictures of the party. Moreover at the end of the event, when
the contest will take place, it will be possible to detect the winner by having a look at how many
likes a picture has earned. As a price, the winner will receive a free gadget on the evening of the
next party just presenting himself at the entrance.
4th Step
What the Company should provide to the location will be the Artic Techno at €11 per bottle, colour
packs that contain fluorescent body skin lotion, fluorescent lipstick and various gadgets at €12 and
€8 per packs respectively. Gadgets will include fluorescent glasses and bracelets.
5th Step

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The contest will take place during the event, but the winner will be revealed only at the end of the
party, when pictures will receive their likes. The calculated feedback will be useful in order to asses
prises.
Strategies Timeframe
Person
Responsible
Budget Other resources
PR and ATr meeting Once a month PR and ATr
No budget needed
Salary of ATr:
€500
Time budget
Hire a GD Once a month PR
Salary:
€500
Location Twice a month PR and ATr
The company
won't pay anithing
Time budget
Advertisement Once a month ATr and SMS
Cost related to
paper advertises:
€0.5 per page
SMS expertise and
coordination
Provide all the products
Four times per
month
ATr
Prices:
€12 per colour
pack
€8 per gadget
packs
Transportation
costs, estimated
€10
Contest
After every
party
PR
No budget
requested
Costs related to
the gadgets

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FINANCIAL PLAN
Cost analysis:
 Total costs related to gadgets are estimated to be €8; each pack will contain 50 gadgets.
 Total costs related to colour packs is estimated to be €10; each pack will contain 100 make
ups.
 Graphic designer fee is estimated to be €500;
 Total costs related to advertisement is estimated to be €0.5 per pages;
 Total transportation costs €10;
Revenue analysis:
 Each bottle will be sold at €14;
 Each shot will be sold at €2;
Revenues are calculated as a percentage of what is going to be sold during the event. Since a bottle
contains almost 16 shots, total revenues will be equal to €32. Net profit for the pub will be equal to
€8, while €10 will be company's profit (60%).
Projections 2015
Year 2015 Location
contacted by
PR responsible
Location that
will buy Artic
Techno
Bottles sold (3 for each
flavour) over 4
locations
Shots sold (16 per
bottle at maximum
capacity)
January 6 4 18x4=72 1152
February 6 4 18x4=72 1152
March 6 4 18x4=72 1152
April 6 4 18x4=72 1152
May 6 4 18x4=72 1152
June 6 4 18x4=72 1152
July 8 4 30x4=120 1920
August 8 4 30x4=120 1920
September 6 4 18x4=72 1152
October 6 4 18x4=72 1152
November 6 4 18x4=72 1152
December 6 4 18x4=72 1152

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Total 76 48 960 15369
Total revenue €13440 €30720
€ 44.160,00
Total Revenue (Bottles + shots) € 44.160,00
Gadgets cost € 250,00
Colour pack cost € 350,00
Graphic designer fee € 3.000,00
Transportation costs € 500,00
Advertisement cost € 250,00
Total cost € 4.350,00
Profit € 39.810,00
During the first year, profits will be slow down for two reasons:
-High cost related to the creation of events;
-Low customer new brand awareness.
Projections 2016
Year 2016 Location
contacted by
PR responsible
Location that
will buy Artic
Techno
flavour) over 4
locations
Shots sold (16 per
bottle at maximum
capacity)
January 6 4 18x4=72 1152
February 6 4 18x4=72 1152
March 6 4 18x4=72 1152
April 6 4 18x4=72 1152
May 6 4 18x4=72 1152
June 6 4 30x4=120 1920
July 8 4 30x4=120 1920
August 8 4 30x4=120 1920
September 6 4 18x4=72 1152
October 6 4 18x4=72 1152
November 6 4 18x4=72 1152
December 6 4 30x4=120 1920
Total 76 48 1056 16896
Total revenue € 14.784,00 € 33.792,00
€ 48.576,00

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Profit € 46.176,00
During the second year it will be possible exploiting scale economies on the advertisement costs,
useful in order to decrease costs related to print all the flyers. In addition the customer knowledge of
the product will rise and it will be very suitable for the company sell more bottles during the
summer and winter period, where the major events will take place.
Projections 2017
Year 2017 Location
contacted by
PR responsible
Location that
will buy Artic
Techno
flavour) over 4
locations
Shots sold (16 per
bottle at maximum
capacity)
January 6 4 18x4=72 1152
February 6 4 18x4=72 1152
March 6 4 18x4=72 1152
April 6 4 18x4=72 1152
May 6 4 30x4=120 1920
June 6 4 30x4=120 1920
July 8 4 30x4=120 1920
August 8 4 30x4=120 1920
September 6 4 30x4=120 1920
October 6 4 18x4=72 1152
November 6 4 18x4=72 1152
December 6 4 30x4=120 1920
Total 76 48 1152 18432
Total revenue € 16.128,00 € 36.864,00
€ 52.992,00

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Profit € 51.112,00
The third year will be characterized by a slightly reduction in costs, but the consumption will be an
important strength since parties will become even more crowded and there will be a new trend
within clients.
2015 2016 2017
0
10000
20000
30000
40000
50000
60000
Financial Projections
Revenues
Cost
Profit

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