This marketing plan summarizes Sandeman Port wine's strategy for 2012. It begins with an analysis of the company's current situation and portfolio. An environmental analysis examines the declining Port wine market and competitive landscape. A SWOT analysis identifies strengths in brand and quality but also weaknesses in inconsistent marketing. Marketing objectives target a 10% sales increase through improved promotion. Tactics will use testimonials, events, and digital campaigns to build brand awareness and position Tawny Port as a premium experience product. Performance will be evaluated based on sales, market share, and brand loyalty metrics.

1. Marketing Plan
Sandeman Port wine in 2012
Sabrina Tosti Guerra
Nikolas Vogt
Maria Clara Neves
João Nuno Guerra
13.12.2011

2. I. Current Situation
• Portfolio Analysis
• Marketing Strategy and Financials/Budget
II. Environment Analysis
• Macro- and Microenvironment
III. SWOT Analysis
IV. Marketing Actions
• Marketing Objectives and Target Market
• Marketing Strategy and Tactics
• Implementation and Evaluation
V. Conclusion
Agenda
2

3. George Sandeman (Chairman)
Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion 3

4. • George Sandeman: Scottish merchant who
founded Sandeman
• The Don: Spanish caballeros de Jerez in a
Portuguese student’s cape and wide-
brimmed hat
• 200 years after, Sandeman is distributing
their products in more than 55 markets
• Sogrape: one of the major players in the Port business, exports to
about 125 countries
• Mission Statement of Sandeman: “Famous for pleasure”
“As tastes and habits change, people are learning to experiment, chilling their red
wine, serving white wines with meat and red wines with fish…Sandeman, too, is
experiencing a renaissance as aficionados try new ways of serving it – no longer just
as an aperitif or dessert wine, but as an accompaniment to haute cuisine (…)”
George Sandeman.
Company and Mission
Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion 4

5. Sandeman
Port Red Sherry Madeira Brandy Cocktails
Wine Wines
-10;20;30; -Armada
-Confradeiro
40 years old Tawny Reserva Red -Character -Caipe
-Ruby 2000; -VVO Solera Sandeman;
-Don Fino Gran
-Vau -Cream
-Confradeiro -Dry Seco Reserva; cocktail
Vintage Reserva
-Vintage 2002 -Medium Dry -Capa -Bliss
Negra; -Cosmo
-White -Rare Fino -Crushe
-Capa Real; -Fizz
-Apitiv -Rich Golden
-Imperial. -Hot
-etc
-Imperial -Imperial on
Reserve the Rocks
-etc
-Founders
Reserve -Fine Rich
-etc -Rainwater
Sandeman Portfolio Analysis
5

6.  Most promising outlook in
Sandeman’s portfolio
 Accounts most for the company’s
sales
 Known for its fruit and style of a
great Port Wine, but also with an
added finesse
 Old type but still versatile
 Fits as an aperitif, digestive or even
during meals
 Awards
Why Tawny?
6

7.  Among first companies to label and advertise its wines
 Different languages and markets
Television
Cooking magazines
Advertisement
Websites
Sandeman Website
 Networks in production and distribution with partners
Marketing Strategy
Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion 7

8.  Revenue: 26,42 Mln €
 Profit: 2,32 Mln €
 RoS: 8,78%
60 932€ on
marketing
expenses
102 091€ on 25,4% of 641
commercial, 200€ other
marketing and current
distribution operating
(deferred costs) assets
Inconsistent
and low
marketing
investment
Financial Status
Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion 8

9. • Regulation of production & growing
(by CMO & SIVV)
Political
• Possibility of increase of VAT on Port
(by ~10%)
• Positive outlook regarding global economy
• Shrinking Port wine market since 2007
Economic (decrease of 4% in 2011 compared to 2010)
• Exportation of Port wine declined by 5%
• Strong social connection to Port wine,
Social especially in Portugal and England
(The Methuen treaty)
• Low innovation (mostly incremental
Technology regarding production procedures)
Macro: Declining revenues but social connection
Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion 9

10. Main Competitors Brand Future Strengths
Aims at values like • Versatile brand with unique drinks
Freedom, Passion and • Positioned as contemporary Port wine
Dreams brand
• Well-known for quality old port wines
Emphasis on the quality • Often first-mover with new products
and techniques • Only completely independent
exporter
Focuses on the simplicity
• Brand represents quality
and the national spirit of
• Focuses efforts especially on Portugal
its products
Combine art with the • Churchill’s quiet recent brand and less
special characteristics of the traditional
location • Positioned as high quality “boutique”
Specialized on innovation • Traditional methods and the highest
and has established new quality grapes
products markets (e.g. • One of the best vineyards in the Douro
"Croft Pink“) Valley
Micro: Lots of brands but lack of clear positioning
Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion 10

11. Strengths Weaknesses
• Brand
• Limit amount of qualified
• High quality labor force
Internal
• Lack of promotion
• Premium positioning on port
wine market • Inconsistent marketing
investments
• Sogrape Group network
• Production technique
Brand
Inconsist.
Premium
marketing
positioning/
investments
quality
Shrinking market
Sales
Opportunities growth Low-quality brands
Threats
Increasing Imitation of • Shrinking market
• Domestic leadership in cooperation products
production (PT) • Switch to low-quality brands
External
• Globalization & International • Increasing importance of new
trade producers
• Increasing level of • Ongoing industrial
cooperation between final concentration
producers and intermediaries • Imitation of premium
products by white labels
Leverage brand, premium position and increasing
cooperation to overcome threats and weaknesses.
Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion

12. Sales Market share Expenses
Short term: Long term:
• Increase sales by 10% • Increase share of
Sales + 5 %
(BE, UK and PT) (i.g. -3,6 %) marketing
spending in FR by
• Increase marketing 25%
spending to 415 700 € Sales + 10 %
by an increase of 155% (i.g. -11,9 %) • Strengthen
through an investment product and brand
of 252 700 € (budget for awareness
2010 was 163 000 €) (emotional touch)
Sales + 25 %
• Find strategic
(i.g. -21,6 %) partners for
Sales + 5 %
(i.g. +7,2 %)
development of
new sale channels
(optimization and
Recommendation: Not addressing the US market! modernization)
Marketing Objectives
Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion 12

13. Business-to-business Business-to-consumer
Medium to high income adults, who
• restaurants
frequently buy Port wine and drink it
• bars
as a digestive, appetizer or social
• catering companies
drink. High level of education.
 Premium- differentiation strategy:
Tawny Port Wine
 Aggressive marketing and
distribution strategies
 One mission: “Famous for Pleasure!”
Who is the target?
Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion 13

14. Product strategy Price strategy
Tawny Port wine: Current price:
• award-winning- • average price
quality premium in the
top 5 markets equals 5,80 €
• special packaging
• no lower price, strong brand
• combination with haute cuisine image 13,74 €/1L
• no imitation (average)
Promotion strategy
Placement strategy
Pull strategy:
Selective strategy:
• interactive and emotional
• relationships with upscale
marketing
restaurants
• social media, event-, press- and
• website (purchases)
outdoor-promotion
• Sandeman’s Port wine Museum
• brand-fitting testimonial
Marketing Mix and strategies
Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion 14

15. Testimonial and slogan
"Tawny Porto. Every drop is full of pleasure." António Banderas
Satisfaction
Tawny Full Premium
Experience and
Porto pleasure character
relaxation
Reference Ad
• Upscale airlines
• Social Media
• Product package
• Restaurants
• Trade marketing
• Events
Marketing tactics
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16. Airport Billboard Golf magazine
Packaging with quality seal
Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion 16

17. Campaign Development 150.000 €
Outdoors 32.500 €
Social Media 2.000 €
Flight's brochures 5.000 €
Booths 20.000 €
Restaurants 5.000 €
Specialized Magazines 2.000 €
Life-Style magazines 6.200 €
Art Events 30.000€
Jan Feb Mar Apr May Jun Jul Aug Sept
Starting Date
Implementation Date
Implementation
Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion 17

18.  Sales
◦ Direct purchases  online purchases  consumer behavior
 Market Share
◦ Worldwide trend- industry defined
Well
◦ Competitors’ market share
premium image
 Brand awareness
◦ Understand costumers’ perceptions
and satisfaction
Balanced
investment
 Three levels of assessment loyalty
aiming at
Win customers’
◦ Company-widelong-term
impacts
◦ Department
◦ Individual
Evaluation and Control
Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion 18

19. Thank you for your attention!
Sources:
Conference Board: Global Economic Outlook 2012 (retrieved on 30.11.2011) –
http://www.conference-board.org/data/globaloutlook.cfm
Lopes, T. S. (2005). “Competing with Multinationals: Strategies of the Portuguese Alcohol Industry”.
Business History Review, 79: 559-585.
Loureiro, N., & Fernandes, P. (Eds.) 2011. Port wine characterisation and positioning in Portugal: XV Congreso
Internacional de Investigación en Ciencias Administrativas AC (ACACIA). Universidad Veracruzana. Universidad
Veracruzana,, Mexico
Protected Designation of Origin (retrieved on 2.11.2011) -
http://europa.eu/legislation_summaries/other/l21303_en.htm
Rebelo, J., Correia, L. & Vaz Caldas J. (2007). “Globalization and wine business: Port wine” (retrieved on 23.11.2011) -
http://ageconsearch.umn.edu/bitstream/9448/1/sp07re03.pdf
Sandeman Website (data for product description, logo, packaging, etc. retrieved on 20.11.2011) -
http://www.sandeman.eu
Sogrape BrandScience Case, 2004 (retrieved on 21.10.2011) -
http://www.brandsciencenetwork.com.pt/pdfs/conference/Sogrape.pdf
Sogrape, SGPS, S.A. Annual Report 2010 (retrieved on 15.10.2011) -
http://www.sograpevinhos.eu/pdf_info_fin/rel_cons.pdf
Vinho do Porto (03-2007) by Instituto Superior del linguas e administraçao (ISLA)
Wines of Portugal (retrieved on 31.10.2011) - http://winesofportugal.info/pagina.php?codNode=18091&market=2
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