A 10-Step Marketing plan for Smirnoff Mule in the Philippines submitted for a course in Marketing Management at Ateneo Graduate School of Business.

1. LESLIE G. BAYONA
ALDRICH G. GOLINGO
TOM A. MIRANDA
ANDREA C. SAMBILAY
RICHELLE D. SAYENGA
PROF. REMEGIO JOSEPH DE UNGRIA, MBA, CDM
MARKETING MANAGEMENT COURSE
18 APRIL 2017
2ND SEM 2016-2017
ATENEO GRADUATE SCHOOL OF BUSINESS
“THE MAGIC MULE”

3. Image source: https://www.behance.net/gallery/47190305/Smirnoff-Brand-Identity
PART 1: THE MULE MARKET
1. Identifying the Primary Target Market
2. What do they need, want, demand?
3. What are their choices?
4. Where is the opportunity?
5. How big is the market?
PART 2: MARKETING STRATEGY
1. Product
2. Price
3. Promo
4. Place
5. Generic Wining Strategy Mix

4. THE MULE MARKET
PART ONE
1. Identifying the Primary Target Market
2. What do they need, want, demand?
3. What are their choices?
4. Where is the opportunity?
5. How big is the market?

5. Image source: www.behance.net
THE MULE MARKET: IDENTIFYING THE PRIMARY TARGET MARKET
• Smirnoff Mule is a ready-to-drink blend of
premium Smirnoff vodka, ginger beer and
lime flavored mixer
• Its price is 25% more than Tanduay Ice but
55% less than Vodka Cruiser
• Advertisements in TV, online and special
events
• Nation-wide distribution
• Current Marketing strategy: Uses
differentiation approach to win
Young adults pay to belong

6. Image source: Google Images and www.behance.net
THE MULE MARKET: IDENTIFYING THE PRIMARY TARGET MARKET
AGE: 25 TO 35
SEX: FEMALE
SOCIAL CLASS: A, B
LIFESTYLE: SOCIAL DRINKER
BEHAVIOR: DRINKS ABOUT 2-3 TIMES A MONTH
MEET MARY
Single Chinese-Filipina, Marketing
professional in her late twenties…
On occasions she likes to unwind in speakeasy bars with
officemates in Makati where the typical drink options
would be Tanduay Ice, Vodka Cruiser, and imported beer.
Her dilemma: “There are limited premixed, ready-to-drink
alcohol drinks available in most bars.

7. For women who want to drink
along with guys but secretly
hate the taste of beer.
TOP 5 CRITERIA FOR ALCOHOLIC DRINKS
1. TASTE
2. SWABE FACTOR
3. PRICE
4. PACKAGING
5. BRAND
THE MULE MARKET: WHAT DO THEY NEED, WANT, DEMAND?
“Let’s drink, but not drink.”
“What will you be having tonight?”
CONSUMER INSIGHT

8. THE MULE MARKET: WHAT DO THEY NEED, WANT, DEMAND?
SELF-
ACTUALIZATION
NEEDS
ESTEEM NEEDS
(RECOGNITION,
STATUS)
SOCIAL NEEDS
(SENSE OF BELONGING,
LOVE)
SAFETY NEEDS
(SECURITY, PROTECTION)
PHYSIOLOGICAL NEEDS
(FOOD, WATER, SHELTER)
“I need to have fun and drink with friends”
NEEDS: TO BELONG,
CONNECT WITH PEOPLE,
BE RECOGNIZED AND
FEEL RESPECTED BY
OTHERS
WANTS: TASTE, PRICE,
ALCOHOL CONTENT,
AVAILABILITY
DEMANDS: ALCOHOLIC
DRINK WHICH HAS THE
SAME ALCOHOL CONTENT
AND PRICE AS BEER BUT
WITH BETTER TASTE.
Mary needs a sense of
belonging and enjoyment.
“I need them to see that I can afford to buy
more expensive drinks”
MASLOW’S HIERARCHY OF NEEDS

9. Source: Google Images
THE MULE MARKET: WHAT ARE THEIR CHOICES?
DIRECT: TANDUAY ICE, VODKA CRUISER
INDIRECT: BEER, WINE, TEQUILA, GIN, CARBONATED SODA, JUICE, WATER
VARIABLE: TASTE, PRICE, ALCOHOL CONTENT, AVAILABILITY,
SMIRNOFF MULE’S DIRECT COMPETITORS

10. THE MULE MARKET: WHAT ARE THEIR CHOICES?
BITTER SMOKEY TART SWEET
HIGH
PRICE
MID
PRICE
LOW
PRICE
VODKA
CRUISER
SMIRNOFF
MULE
TANDUAY
ICE
DIRECT COMPETITORS: PRICE VS. TASTE
(AS OF 2017)

11. THE MULE MARKET: WHERE IS THE OPPORTUNITY?
BRAND
2016 SALES,
in PHP000 PERCENTAGE
SMIRNOFF MULE 6,383,986 26.01%
TANDUAY ICE 13,584,777 55.36%
OTHERS 4,571,751 18.63%
TOTAL 24,540,514 100.00%
SMIRNOFF
MULE
26%
TANDUAY ICE
55%
OTHERS
19%
2016 Market Share of Sales
SMIRNOFF MULE TANDUAY ICE OTHERS
Smirnoff Mule closed 26% or PhP 6.4B in Philippine Sales in 2016.
Overall Sales Performance in 2016
Source: Nielsen 2016
THE GOAL
New revenue of P825M for Smirnoff Mule in 2017
or 15% increase by end of 2017.

12. THE MULE MARKET: WHERE IS THE OPPORTUNITY?
19.8 % of 37.9M Filipino
women belong to the age
group 25-35 years old.
Sources: www.psa.gov.ph, Nielsen 2016
POTENTIAL MARKET
4 MILLION
Filipino women who drink
occasionally and share the
same consumer insights
BRAND
2016 BOTTLES
DISTRIBUTED, in 000 PERCENTAGE
SMIRNOFF MULE 168,872 22.22%
TANDUAY ICE 530,947 69.86%
OTHERS 60,181 7.92%
TOTAL 760,000 100.00%
THE GOAL
Increase the number of Smirnoff Mule bottles distributed by 15%
25 MILLION new bottles sold by end of 2017.
Overall Sales Distribution Performance in 2016
THE GAP
• Those who like to drink but don’t like the taste of beer
• Those who enjoy cocktails but want an affordable alternative

13. MARKETING STRATEGY
PART TWO
1. Product
2. Price
3. Promo
4. Place
5. Generic Wining Strategy Mix

14. MARKETING STRATEGY: PRODUCT
PRODUCT POSITIONING
THE MID-POINT
BETWEEN IMPORTED
VODKA AND LOCAL
BEER
Ready-to-drink blend of premium Smirnoff vodka,
ginger beer and lime flavored mixer with 6% alcohol
volume.
It comes in only one bottle size of 330ml.

15. MARKETING STRATEGY: PRODUCT
CRITERIA
SMIRNOFF
MULE
TANDUAY ICE
VODKA
CRUISER
TASTE GOOD
OFFERS VARIETY
CAN BE MIXED WITH
OTHER DRINKS
AFFORDABILITY
ALCOHOL CONTENT
AVAILABILITY
PRESTIGE IN DRINKING
Alcohol Brand Matrix

16. Source: Google Images
MARKETING STRATEGY: PRICE
PHP 33.00
330ml
PRICE COMPARISON FINDINGS
I. One 330 ml bottle of Smirnoff Mule SRP is PhP 33.00
II. At least 25% more expensive than Tanduay Ice
III. At least 58.75% cheaper than Vodka Cruiser
PHP 26.75
330 ml
PHP 80.00
275 ml
SMIRNOFF MULE TANDUAY ICE VODKA CRUISER

17. MARKETING STRATEGY: PROMO
STRATEGY Acquiring the Taste of the Market (AGGRESSIVE ACQUISITION)
GOAL Increase PTM Consumption by 15% by end of 2017
HOW? By Crafting Unforgettable Brand Experiences Through
Interactive Consumer Touchpoints
“The midpoint between
imported vodka and local
beer in taste and quality.”
Encourage bottle-to-cocktail
concoctions for bars to upsell
the price and flavor.
Integrate the programs to
encourage a new first taste
for the market.
USP UPSELL UNIFY

18. OLD PRODUCT NEW PRODUCT FEATURES
MARKETING STRATEGY: PRODUCT
“STUBBORNLY REFRESHING” “THE NEW TASTE OF DESIRE”

19. NEW PRODUCT FEATURES
MARKETING STRATEGY: PRODUCT
“THE NEW TASTE OF DESIRE”

21. The new taste of Desire.

22. The new taste of Desire.

23. The new taste of Desire. MULE

24. Source: Google Images
MARKETING STRATEGY: PROMO PACKAGING
THE COPPER KEG CONCEPT
GAME OF THRONES S7 LAUNCH PARTY
VIEWING PARTY
Game of Thrones Season 7 Launch Party
1W July 2016 | Revel Bar, BGC

25. The new taste of Desire.

26. Image source: https://www.behance.net/gallery/47190305/Smirnoff-Brand-Identity
PARTY SIX-PACK BOTTLES TO GO
SPECIAL EDITION COLLECTION SET

27. Image source: https://www.behance.net/gallery/47190305/Smirnoff-Brand-Identity
SOCIAL MEDIA CONTENT
• “HOW TO” RECIPES
• IG-WORTHY SHOTS

28. Source: Google images and Buzzfeed

29. Source: Google Images

30. Source: Google Images

31. Source: Google Images
GENERIC WINNING STRATEGY
SMIRNOFF MAGIC MULE:
GENERIC WINNING
STRATEGY
DIFFERENTIATION
SMIRNOFF MULE IS THE ONLY PRE-MIXED MULE
BRAND HERE IN THE PHILIPPINES. PRIMARILY
FOR INDIVIDUAL WHO ARE CONSTANTLY
LOOKING FOR THE NEXT “BEST THING”.
SMIRNOFF IS A “LIFESTYLE BRAND” AIMED AT
CONSUMERS WHO PREFER DRINKS WITH SAME
ALCOHOL CONTENT.
ATTRACT SOME OF THE MALE “BEER DRINKERS”,
AND CONVERT THEM TO “MULE DRINKERS”
LEVERAGE ON SUPPLY
AND DISTRIBUTION
SMIRNOFF IS LOCALLY DISTRIBUTED
BY EMPERADOR INC IN PARTNERSHIP
WITH BRITISH GLOBAL BEVERAGE
MAKER DIAGEO.
“THE NICE NICHE”
TO CATER TO WOMEN WHO
LOVES TO GO OUT AND DRINK
WITH FRIENDS, BUT DOES NOT
LIKE THE TASTE OF BEER AND
OTHER LIQUOR.