OLE SMOKY TENNESSEE MOONSHINE Jessica Brightman | John Colatosti Katharine Forte | Katherine Rote
COM OMPANY OV OVERVIEW Local family business • Gatlinburg, Tennessee • Perfecting recipe for 200 years • Tennessee state law recently • changed to allow the distillation of spirits
OONSHINE? WHAT IS MOON • Alcohol derived from corn • Clear liquid with very high alcohol content
CHERRY MOONSHINE � Each mason jar is hand-filled with fresh maraschino cherries soaked in Ole Smoky’s 100 proof moonshine � Typical American Consumption: Eat the cherries separately and enjoy remaining Cherry Moonshine straight up or create the ultimate Cherry Coke or Shirley Temple mixed drink
External Analysis Key Success Factors Internal Analysis Competitive Advantage & USP Market Positioning Marketing Mix – 4Ps
SOCIAL FACTORS BELGIUM SPAIN FRANCE NETHERLANDS Population Growth Rate 0.071% 0.574% 0.500% 0.371% Age Distribution: 0-14 Years 15.90% 15.10% 18.50% 17.00% 15-64 Years 66.10% 67.70% 64.70% 67.40% 65+ Years 18.00% 17.10% 16.80% 15.60% Alcohol Consumption Trends : - Apertif & Digestif - Spirit Consumption Comprises 32% of All Alcohol Consumption in the Country Traveling Trends: - 67% of Travel is to Member States
LEGAL FACTORS � ‘Spirit drink’ means an alcoholic beverage: � (a) intended for human consumption; � (b) possessing particular organoleptic qualities; � (c) having a minimum alcoholic strength of 15 % vol.; � (d) having been produced either directly or or by the mixture of a spirit drink with one or more: other spirit drinks, and/or; ethyl alcohol of agricultural origin or distillates; of agricultural origin, and/or; other alcoholic beverages, and/or; drinks.
LEGAL FACTORS: Grain Spirit (a) Grain spirit is a spirit drink produced exclusively by the distillation of a � fermented mash of whole grain cereals and having organoleptic characteristics derived from the raw materials used. (b) With the exception of ‘Korn’ , the minimum alcoholic strength by volume of � grain spirit shall be 35 % . (c) No addition of alcohol as defined in Annex I(5), diluted or not, shall � take place. (d) Grain spirit shall not be flavored . � (e) Grain spirit may only contain added caramel as a means to adapt color. � (f) For a grain spirit to bear the sales denomination ‘grain brandy’, it must � have been obtained by distillation at less than 95 % vol. from a fermented mash of whole grain cereals, presenting organoleptic features deriving from the raw materials used.
ECONOMIC FACTORS BELGIUM SPAIN FRANCE NETHERLANDS Gross Domestic Product Per Capita $48,110 $33,298 $44,401 $51,410 Income Per Capita $36,274 $27,469 $34,092 $40,777 Income Percentage Attributed to Upper 10% 28.40% 26.60% 24.80% 22.90% Personal Disposable Income Per Capita $21,906 $18,907 $22,744 $21,331 Unemployment Rate 7.70% 21.70% 9.10% 5.20% Inflation Rate 3.10% 2.00% 2.00% 2.30% Exchange Rate (US Dollars per Euro) $1.2677 $1.2677 $1.2677 $1.2677 (Source: https://www.cia.gov/library/publications/the-world-factbook/geos/fr.html)
POLITICAL FACTORS Taxes & Customs Advertising Regulations Prohibited Television & Value Added Tax � • Billboard Advertisement Import Duty • Ban on Sporting Event � Excise Tax • Sponsorship Economic Operator and • Restricted Content for � Registration Identification Radio and Print Ads Number Electronic Filing of a • Single Administrative Document
TECHNOLOGICAL FACTORS QR Codes E-Commerce & Internet 15% Smartphone Users 90% of Smartphone � � in France Scanned a QR Users Visited a Website Code in 2011 from their Phone in 2011 34% of those Scanned � In 2011, 30.7 Million � Were from Product French Internet Users Packaging Purchased a Product or Service Online
TECHNOLOGICAL FACTORS Cont’d Automated Manufacturing in the Spirits Industry � Safety and Quality Control � Faster Production and Distribution � Accurate Calculations (Bottle Quantity and Volume Per Bottle) � Can Handle New, Fragile Bottle Design
External Analysis Key Success Factors Internal Analysis Competitive Advantage & USP Market Positioning Marketing Mix – 4Ps
KEY SUCCESS FACTORS Company Product Brand/Image Financial Multilingual Website Cost Globally Recognized Increasing Sales Strong Relationships Luxury, Quality Item High Consumer Budgeting with Distributors and Knowledge Suppliers High Customer Strong Alcohol Effective Product Strong E-Commerce Service Content Promotion On-Time Delivery Attractive Bottle Improving Design Competitive Advantage Research & Guaranteed Supply of Development Raw Materials
External Analysis Key Success Factors Internal Analysis Competitive Advantage & USP Market Positioning Marketing Mix – 4Ps
IMPORTANCE PERFORMANCE MATRIX High Importance - Low Level of Brand - Perfecting Recipe for 200 Recognition Years - Higher Alcohol Content than KSF Competitors - Dedicated to Customer Relationships Low Importance - Limited Resources - Strong Website Design - Close Relationships with Suppliers and Distributors - High Quality Ingredients - Strong Values (Family Based) Weak Performance Strong Performance
External Analysis Key Success Factors Internal Analysis Competitive Advantages & USP Market Positioning Marketing Mix – 4Ps
COMPETITIVE ADVANTAGES & USP � Unique Product Offering : High Alcohol Content Beverage Containing Whole Cherries � Package Design and Utility Add Mystique and Functionality to the Product with a Unique On-Shelf Advantage � Proprietary Distribution Agreement Eliminates Competition and Provides Outlet for Trial Distribution � High-End Pricing Position Allows for High Investment in Digital Programs and Further Development of Launch Strategy
External Analysis Key Success Factors Internal Analysis Competitive Advantage & USP Market Positioning Marketing Mix – 4Ps
MARKET POSITIONING � WHO : Affluent, educated men; ages range from 35 to 55+; higher disposable income; frequent traveller; business executive � WHAT : After dinner drink, to be consumed in small quantities; slowly sipped on; replacement for Cognac and other digestifs � WHY : Higher alcohol content than competitors; eye- catching cherry red color and cherry fruit
External Analysis Key Success Factors Internal Analysis Competitive Advantage & USP Market Positioning Marketing Mix ‒ 4Ps
THE FOUR Ps: PRODUCT � High-End Luxury Spirit � 50% Alcohol by Volume � Redesigned Bottle 100 cL 3 cL
THE FOUR Ps: PLACEMENT Selective Distribution E-Commerce � � Air France|KLM In-Flight Modified European � � First/Business Class Website Beverage Shipping from U.S. � Air France|KLM CDG � Airport First Class Lounge CDG Airport Duty Free � Shops
Distribution 2 1 3
THE FOUR Ps: PRICE PREMIUM PRICING STRATEGY
THE FOUR Ps: PROMOTION • Press Releases • Air France Magazine • Pitch Feature Story to • CDG Airport – Air France Magazine JCDecaux Business First Network • European Media Kit • Create Regional Media List Public Advertising Relations Internet Sales Promotion Promotion • Launch New • Sales Relationship European Website with Air France| KLM • Social Media Presence • Duty Free Stores at CDG Airport • SEO
FUTURE RECOMMENDATIONS � Multi-Year Partnership with Global Spirit Distributor � In-Depth Branding Research � Expansion into Other European Markets � Integration of Other Ole Smoky Tennessee Products
QUESTIONS
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