Vincor: Project Twist
Table of Contents Problem statement 3 Situation analysis 3 Objectives and goals: 3 Background and forecast: 3 S.W.O.T. analysis: 3 Strengths: 3 Weaknesses: 4 Opportunities: 4 Threats: 4 Market analysis: 4 Segmentation analysis: 5 Competition analysis: 5 Case Keys 6 Key success factors: 6 Key uncertainties: 6 Analysis of alternative solutions 7 Recommendation(s) 9 Action plan 10 Exhibits 12 Exhibit 1: Perceptual Map 12 Exhibit 2: Packaging 13 Exhibit 3: Pricing and discounting 15 Exhibit 4: Market segmentation chart 16
Problem statement
Kelly Kretz, Vincor’s Marketing Manager, must decide what type of cooler to launch for the upcoming spring and summer season. Kelly must also consider
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It is extremely difficult for new products to find success within the first year and even successful products might only be on the shelves for three years.
Positioning (Exhibit 1) * Need cooler product that is differentiated from others in market.
Packaging (Exhibit 2) * Design of carrier, label and bottle are critical to differentiating product.
Pricing (Exhibit 3) * Industry is regulated and the liquor boards have control over mark-ups. * Three levels exist in the market: premium, line priced and low priced.
Distribution
* Regulated by provincial government. * Distributed through province owned stores in all provinces except Alberta, Quebec, and BC where private distributors also exist. * Channel is monopsonistic - customer (liquor board) has tremendous influence over products reaching the shelves.
Promotion
* Need to create a consumer brand badge. * Uniqueness and flavor are key communication elements. * Sales reps secure the best product placement in stores, conducting taste tests in stores and convincing “individual store managers to pull the product from the central buyer.” (Singer, 2008)
Segmentation analysis:
Vincor and other leading brands have been targeting the university age (19-25) demographic. This target market is very “exploratory” and likes to try new things. Other possible segments
Distribution channels are organized in several ways: conventional, vertical, horizontal and multichannel (Kern R. 2013). Some of these organizational methods are more structured than others. When a distribution channel deals with more than one independent producer, such as wholesalers and retailers, the channel is known as a conventional distribution channel. (Kern R. 2013) These channels are not normally known to be strong and typically don’t give the customer the quality of product that they deserve. In a vertical marketing system, the retailers, wholesalers and producers, join forces to create a unified front, promoting an individual product (Kern R. 2013). Vertical distribution channels are stronger than the conventional distribution channels because all of the companies involved carry some of the load of power. (Kern R. 2013) In a horizontal distribution channel, companies join up and combine all of their finances and resources, in order to take on more than one company or product (Kern R. 2013). A multichannel distribution channel is where a large corporation uses two or more marketing channels to better target their desired customer segments (Kern R.
3. What target consumer market should be chosen for a new energy beverage brand? § Seeing as the heaviest users of energy beverages are males between the
Sales – are responsible for the advertising of our product. They will represent Innovative Widgets and present our products to potential
Regardless of current channel, single channel businesses are becoming multi-channel businesses. Retail only are expanding to online services as
The first channel is associated with retail grocery stores and supermarkets. The second channel is
channel does. The focus is therefore no longer pure ly on point product sales but on
Surprisingly, their company has found great success with the reverse showroom method. This is a method that is easily adopted today by numerous stores. In essence, a
In retail, an example would be in department stores; a salesperson can push or recommend a particular product.
Best Buy, a familiar retailer in the technology world, is struggling to stay on top. Online and mass stores have cornered the market in terms of convenience, customer service and price matching. The recent closing of over two hundred stores alongside falling sales has experts predicting that the giant won’t be in business long. Using a results-only work environment (ROWE), Best Buy has removed the customer from the equation and forced many employees out. A marketing disaster, Best Buy must change its marketing strategy from sales-based to a customer-based to stay afloat.
How can Harley Davidson marketing and sales, personnel interact with its purchasing personnel to further strengthen the supply chain and improve customer loyalty?
Show-rooming, when shoppers come in to see a product in person, only to buy it from a rival online site, frequently at the lower price (Kinicki, A.& Williams, B.,2013,pg 35) has become an enormous problem in the retail business.Many retailers such as Best Buy,Inc have been struck with the effects of show-rooming. Marketing Magazine alleged that Best Buy had to close stores and many employees lost their job because of the showroom encounter(Laird, 2013,pg.31-34). Target had become fed up with displaying their products and customers requesting info on the product but not purchasing it. With that being said, the company wanted to develop different products that will make them stand out and the prices be unbeatable plus profitable. Using different
A consumer would have direct contact with the sales representative who belongs to the same community as that of the consumer. The consumer would have an access to interaction with the sales representative and would receive feedback on the product before purchasing it. Direct sales representatives also reduce the travel time and cost traveling to a nearby town to purchase the product. Millions of women gain skills and experience in becoming entrepreneurs by working in direct sales.
The Gatorade Company is mainly concerned with the manufacture and distribution of sporting equipment for commercial and domestic uses based on their knowledge of the best industry practices for the production of sporting equipment. The primary agenda of this market plan is for it to work as a strategy to guide the company on how to supply the customers of Gatorade with quality yet affordable products. This brand of sporting equipment will be produced and supplied in many different designs and colors that will be appropriate for both genders. Approximately half of the clients of the Gatorade brand, range between the ages of 18-34.These clients are ardent customers as they make the most purchases and are the company’s primary target. Gatorade sporting equipment are purchased more by those who dwell in the Northeast regions and Midwestern parts of the United States. This market plan focusses on the introduction of a range of Gatorade environmentally friendly brand of sporting equipment into the United States market.
* It can take a very long time to become profitable and to compensate the speeding in R&D.