Work Sample Assignment: construct a marketing plan for Svedka Vodka circa 1998, prior to product launch Highlights: Slide design, story creation/slide organization, insights, professional writing
SVEDKA Vodka Team Mercedes
Agenda ● Purpose ● 3C Analysis ● STP ● 4Ps of Marketing ● Executive Summary
Purpose Goals Introduce a new mid-tier vodka option into the liquor market ● Clearly show that Svedka is a high quality vodka at a lower price ● Methods Price Svedka between premium and cheap options ● Boost brand awareness with innovative marketing tactics ● Focus marketing appealing to younger target segment ●
Agenda ● Purpose ● 3C Analysis ● STP ● 4Ps of Marketing ● Executive Summary
Company Chic Swedish brand with unique mid-tier vodka ● Great tasting vodka, rated 93/100 by Wine Enthusiast ● “Blue ocean” of price point allows for ample opportunities to expand ● “Challenger” brand that is a fun and innovative option which ● represents a break from the status quo in a category that is too serious and very monolithic
Brand Overview ● SVEDKA Vodka is best known for being fun, spirited and trendy, placing it most into the excitement personality EXCITEMENT SOPHISTICATION ● It pulls from competence in its ability to be a leader in the middle market vodka category ● Finally, being a great value vodka COMPETENCE with an attractive design gives it elements of sophistication
Competition: Overview Vodka has become an increasingly popular alcohol choice ● Many high- and low-end choices have recently been introduced to the ● market, leaving room for a mid-tier option for Svedka to fill Grey Goose, Ketel One, Absolut, and Stolichnaya are premium priced ● options; Skyy, Smirnoff, Gordon’s, and Popov are cheaper options Lower cost options have more than double the market share of high ● priced choices (34.6% compared to 15.3%) Based on the competition, Svedka’s position as a mid-priced option with a premium-priced taste makes it superior to all other offerings in the category.
Competition: Perceptual Map High Price High Quality Low Quality Low Price
Customers The vodka category is broad and consumers are influenced by a variety of factors. WHO DRINKS VODKA? WHAT DO THEY CARE ABOUT? ● Anyone over the age of 21 Value : price must match quality ● Popular segments include: ● ● Taste: bitterness is unpreferred ○ Older men who have been Status : brands are important ● drinking vodka their entire lives because buying specific ones say ○ New, young drinkers who are something about the consumer still experimenting in the ● Authenticity : the history and place market and trying new drinks of production are important in this category, people like to know it is European
Agenda ● Purpose ● 3C Analysis ● STP ● 4Ps of Marketing ● Executive Summary
Segmentation and Targeting MARKET SEGMENTATION TARGET: New Drinkers The Regulars High degree of fit with Svedka’s ● exciting brand personality Tend to be older males ● This segment is attractive because ● Price conscious ● they would be willing to switch vodka Brand loyal ● brands and are typically looking to drink for fun and to have a good time New Drinkers Svedka’s strategic objective is to ● dominate the mid-market; segment is 21-to-35 year-olds ● willing to stretch their dollars Price conscious ● Degree of competitiveness is ● Not brand loyal ● average, as the market is split between them and The Regulars
“ Positioning Statement Swedish heritage. ” For all New Drinkers , Svedka is a trendy and accessible mid-tier option among all vodka choices because it offers a high-quality product at a low price with a sleek design and
Agenda ● Purpose ● 3C Analysis ● STP ● 4Ps of Marketing ● Executive Summary
Price MARKET INFORMATION PRICING RECOMMENDATIONS Vodka industry is split between Begin at $14 as a starting point to ● ● premium vodka choices and cheap build a the foundations of a loyal vodkas consumer base This leaves room for brands to enter Increase price gradually as sales ● ● the market as a mid-tier option numbers grow and customers start Taste rated on par with premium to prefer Svedka ● vodka choices, but will be priced Set a price cap to prevent Svedka ● lower closer to lower quality options, from being associated with premium where the larger market share is vodkas - stop price increases at $16.00/$17.00 and keep price stable
Place MARKET INFORMATION PLACE RECOMMENDATIONS Control states for liquor, state Focus on non-control states given ● ● government controls liquor sale limited flexibility and opportunities in Wholesaler and broker relationships control states ● are key to distribution channels Maintain good channel relationships, ● On-premise retailers include bars, delegate people to work with them ● hotels & restaurants Devote sales efforts to independent ● Off-premise retailers include food liquor stores ● (35%) drug (20%) and liquor stores Utilize “challenger” distributors as ● (45%) emphasized by Cuvelier in case
Product MARKET INFORMATION PRODUCT RECOMMENDATIONS PRODUCT RECOMMENDATION Vodka typically sold in 750mL and Always produce in Sweden at ● ● 1.75L bottles with 40% alcohol (80 because it is a memorable location proof) as standard Ensure product quality is consistent ● Premium vodka can be distinguished After launch, focus on unflavored ● ● from cheaper options based on vodka and slowly roll out flavored smoothness options to appeal to target segment Vodkas are rated on a 100 point scale Once brand reputation is cemented, ● ● by distinguished Wine Enthusiast - roll out colorful and festive packaging makes quality comparable options that match flavors, holidays, and other trends
Promotion (Part 1 of 2) MARKET INFORMATION CURRENT APPROACHES Typical advertisements in print (esp. Investments in non-traditional ● ● magazines), outdoor, broadcast and marketing opportunities including: electronic medias Trade press ○ ○ Point of sale Repetitive advertising strategy: bottle ● Trade shows ○ shot, product benefit, cocktail recipe ○ Creative and historical reference Sampling ○ Place of origin is important to ● These approaches generate buzz and ● reputation and perceived quality keep Svedka top-of-mind with minimal ad spend
Promotion (Part 2 of 2) Since vodka is often an experiential or Strategies to appeal to New Drinkers: behavioral product, continue to focus on point Provide link to a site that gives fun drink ● of sale. recipes and instructional mixing videos using Svedka - especially with the roll out of Prominently display The Wine Enthusiast ranking ● different flavors in stores to give the new brand credibility and Guerrilla marketing tactics to generate buzz ● provoke consumers to try it and brand awareness ● Place Svedka between premium and cheaper Blind taste tests at bars, public places ○ choices to emphasize its mid-tier status, this will Svedka-sponsored bar crawl ○ also place it at eye level Svedka shot glass giveaways ○ Rather than following traditional ad ● PREMIUM OFFERINGS formula, center ads around exciting brand personality and young people enjoying the drink MID-TIER SVEDKA LOW LOW QUALITY
Agenda ● Purpose ● 3C Analysis ● STP ● 4Ps of Marketing ● Executive Summary
Executive Summary ● Svedka will be introduced into the market as a mid-tier vodka option, combining high quality with an accessible cost making this new trendy and fun brand stand out among the rest of the market Target New Drinker segment given willingness to switch to a new brand and fit with ● company personality Once sales grow and brand name is better known, begin to expand sizes and flavors ● offered to continue to grow market Keep ad spend down by continuing to use non-traditional marketing tactics, including ● point of sale strategies and guerilla marketing Where traditional advertising is used, be different. Move away from product-oriented ● messaging. Produce advertisements featuring people and highlighting the fun of drinking Svedka ●
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