Cuervo tequila pitch brief

19
NEW BUSINESS PITCH BRIEF JOSE CUERVO

Transcript of Cuervo tequila pitch brief

NEW BUSINESSPITCH BRIEFJOSE CUERVO

OVERVIEWAfter nearly two-and-a-half years of partnership, McCann New York has resigned from their account with US leading

tequila brand, Jose Cuervo.

"Today we notified our Jose Cuervo client that we have decided to end our relationship," agency president Chris Macdonald wrote in an internal email to McCann staffers.

The decision to cut ties was based on "a variety of factors, including financial," Macdonald said. "The great news," he added, "is that there are lots of opportunities across the spirits and beer categories… get ready!"

McCann's most recent work for Cuervo was a stylish riff on the Rolling Stones' debaucherous 1972 concert tour, informally known as the “Cocaine and Tequila Sunrise tour.” The ad’s nostalgic theme could be interpreted as aiming at the Baby Boomer demographic, but as explained by a McCann spokeswoman to adage, it actually aims to engage millennials.

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BACKGROUND SUMMARYJose Cuervo is a brand of tequila that was founded in 1795 by Don Jose Antonio de Cuervo. It is the best selling tequila in

the world with 35.1% market share of the tequila category worldwide.

Jose Cuervo has always been family-owned and is run today by the Beckmann family of Mexico, direct descendants of Don Jose Antonio de Cuervo. Juan-Domingo "Dobel" Beckmann, son of Don Juan Beckmann, is the sixth-generation leader of the company. In July 2013, Proximo Spirits took over US distribution of Jose Cuervo from Diageo, which had managed it

since 1997.

MARKET SHAREThe tequila market is a $3 billion market worldwide, and US tequila sales make up 80% of it ($2.4 billion).

Currently Cuervo is the market leader with a 33% share or $792 million. Patron boasts a 15% market share or $360 million per year, while Sauza has a 14% share or $336 million.

33%

15%

14%

brands OVERLAP

7.2% 5.0%

3.9%

Tequila shots for young men and margaritas for their mothers?Analyzing the demographics of Jose Cuervo’s audience, we noticed a striking difference between male and female

consumers in terms of age distribution.

With a demographic almost perfectly divided between the two genders (50.1% Female), looking at the age distribution of both we can see how the tequila brand attracts mature women who probably use tequila to make margarita cocktails rather

than shots, while, at the opposite end of the spectrum, are millennial males in the 25-34 age range.

40%

30%

20%

10%

0%13-17 18-24 25-34 35-44 45-54

40%

30%

20%

10%

0%13-17 18-24 25-34 35-44 45-54

Tequila shots for young men and margaritas for their mothers?When we look at the consumption of margaritas within the last 6 months, we see that it isn’t a drink decisively more often

consumed by older women - which sparks a potential opportunity for Jose Cuervo to engage a smaller, but important, part of its audience: Young women.

AGE 18 - 24

AGE 25 - 34

15,038

21,021

1,120

1,383

7.4

6.6

14.9

22.8

133

117

AGE 35 - 44

AGE 45 - 54

20,413

22,509

1,001

1,511

4.9

6.7

14.9

22.8

87

120

As indicated by socio-demographics, many of Cuervo’s 25-34 old female imbibers have started a family (38% married) and had children (46%). If they aren’t married, they have significant others,

with 32% of women in relationships. Most have a high education level (College 76%) and a low-to-medium income.

AUDIENCE ANALYSISTarget Segment: Jose Cuervo’s 25-34 year-old Females

STATUSMarried (38.4%)

INCOME$40K - $70K (62%)

GENDERFemale (100%)

FAMILYWithout Kids (54%)

AGE25-34 (100%)

EDUCATIONCollege (76%)

Top 10 PsychographicsImage and style, as revealed through the Beauty & Wellness and Fashion Lovers traits, are very important to this demographic, as shown by the relevance indexes. These young women are highly engaged by cosmetics and makeup according to the high popularity of the cosmetic connoisseurs trait, and are very conscious of

fashion trends (Fashion enthusiast 195.4 pop).

# NAME REACH POPULARITY RELEVANCE

2

3

4

5

6

7

8

9

10

1 Beauty and Wellness..

Party Goers

Foodies

Fashion Lovers

Home Decorators &...

Pet Lovers

Travelers

Business People

Entertainment Jun...

Art Appreciators

37.98%

5.20%

40.51%

35.36%

15.20%

12.93%

6.38%

8.61%

40.69%

2.10%

184.3

172.65

172.31

159.08

158.31

133.11

125.57

105.53

105.43

86.17

175.2

146.93

168.06

157.46

147.17

128.72

117.22

106.47

123.53

82.84

PO

PU

LAR

ITY

99

13

55

37

3

19.20%

REACH

1.00% 9.72% 29.50% 40.69%

18

4

BUSINESSPEOPLE

MOTOR LOVERS

SPORTSENTHUSIASTS

TECHIES

ART APPRECIATORS

PARTY GOERS

MUSIC LOVERS

GAMERS

BEAUTY & WELLNESSAWARE

ENTERTAINMENTJUNKIES

HOME DECORATORSAND DIYs

FOODIES

FASHION LOVERS

OUTDOORENTHUSIASTS

Top Psychographics

beauty and wellness

# NAME REACH POPULARITY RELEVANCE

2

3

4

5

6

1 Cosmetics Conoisseurs

Healthy Media

Just A Trim

Fitness Fanatics

Self Applied Style

You Are What You Eat

15.97%

1.12%

6.80%

1.23%

12.16%

1.72%

197.39

193.53

171.56

170.38

146.23

102.3

173.73

150.72

148.41

135.78

136.86

92.34

FASHION

# NAME REACH POPULARITY RELEVANCE

2

3

4

5

6

1 Accessories Addicted

Fashion Enthusiast

Swayable Shopaholics

Trendy

Classic Fit

Personal Style

Sporty Stylists

Fashion Disconnects

7.44%

16.59%

13.49%

13.45%

5.33%

4.77%

0.77%

8.07%

196.25

195.48

193.72

170.3

92.39

73.27

7.61

1.38

165.65

172.87

169.55

153.9

93.63

80

24.8

36.45

7

8

INSIGHTWhen attracting the attention of young, female tequila drinkers, print and online magazines are the best bet, since these are their primary texts for staying up to date on beauty and fashion. Websites offer strong opportunities to reach them as well, especially stylish cocktail blogs, but the best opportunity could be the blogger/influencer Shut

the front door written by “Honestly funny, completely random, bipolar mother and professional wine drinking blogger” Lisa Marie. With a millennial demographic that not only admires, but demands, authenticity, reaching out

to notable bloggers like Lisa Marie would be a bold statement.

The high popularity of Magazines is followed closely by TV, Radio and Websites, while other types of media underperform with this target in respect of the average American.

The most popular magazines for this group are about fashion and health topics, as well as related interests such fitness, tattoos and weddings.

On TV they prefer Entertainment Channels broadcasting movies and female-oriented entertainment (E!, LMN, Lifetime) with a high presence on Latin channels.

Cocktail recipes are highly popular too and learned through online websites like thebar.com and liquor.com. While other relevant websites focus on discounts, couponing and stories about maternity with Being mommy

and Shut the front door.

MEDIA USAGE

MEDIA USAGE

TOP MEDIA SPECTRUM

# NAME REACH POPULARITY RELEVANCE

2

3

4

5

6

1 Magazines

TV

Radio

Websites

Apps

Newspapers

43.27%

53.43%

37.53%

91.66%

55.37%

8.30%

116.77

104.39

103.46

101.86

87.17

68.1

131.91

126.59

121.15

133.14

115.62

81.18

PO

PU

LAR

ITY

60

90

1.0

13

0

50%

REACH

<0.01% 25% 75% 100%

12

0

TV

MAGAZINES

APPS

WEBSITES

MAGAZINES

RADIO

MEDIA USAGE

MAGAZINE GENRES

# NAME REACH POPULARITY RELEVANCE

2

3

4

5

6

7

8

9

10

1 Fashion and health

Parenting

Hobby

Gossip

Animals and pets

Entertainment and arts

Lifestyle

Home and garden

Food & cooking

Music

14.08%

2.65%

9.11%

5.49%

0.81%

8.96%

10.49%

4.25%

3.47%

2.95%

160.38

155.58

155.53

146.73

141.61

129.7

124.43

122

112.11

96.34

147.75

130.62

140.31

130.09

114.42

122.94

120.89

111.61

103.5

91.86

REACH relevance

1005003.50%2.50%1.50%0.50%<0.01% 150 200

Cosmopolitan

FITNESS Magazine

Inside Weddings

People en Espanol

BlackBook

Instyle

Latina Magazine

Freshly Inked Magazine

SHAPE Magazine

Mordern Wedding

FASHION HEALTH MAGAZINES

MEDIA USAGE

top entertainment channels top website

# NAME REACH POPULARITY RELEVANCE

2

3

4

5

6

7

8

9

10

1 thebar.com

InStyle Fashion One

Liquor.com

Black Friday

Being Mommy

FreeFlys

Cotton

Shut The Front Door

So Mexican

Coupon Divas

3.08%

2.77%

2.11%

4.88%

3.99%

10.17%

1.82%

2.85%

2.88%

3.48%

198.96

196.4

198.23

189.33

191.39

177.99

196.7

192.32

192.03

189.51

160.57

158.13

157.57

157.55

157.38

156.31

155.63

155.61

155.5

155.13

PO

PU

LAR

ITY

18

31

90

17

01

76

1.29%

REACH

0.47% 0.88% 1.70% 2.11

19

7

WAPA TV

FEARNET

SUNDANCE TV

E! ENTERTAINMENT

A&E

LIFETIME

VH1

WARNER CHANNEL

LMN

Beauty is a very central theme for this audience and, as we observed in the media usage analysis, this fashionable audience is also interested in fitness and tattoos.

Breaking down the recreational activities we noticed the high popularity of fitness facilities like gyms and sport clubs; while events are frequented by 1/3 of the audience who willingly participate at live rock concerts and tattoo conventions.

INSIGHTLadies who appreciate body art tend to also appreciate tequila, which creates the potential for tequila tasting at tattoo events and conventions, as well as sponsorships of rock concerts. Partnerships with fitness-related

gadgets and apps might seem like an odd pairing, but this group’s interests in health make it a viable one (Skinny margaritas anyone?).

BUSINESS OPPORTUNITIES

BUSINESS OPPORTUNITIES

MAGAZINE GENRES

# NAME REACH POPULARITY RELEVANCE

2

3

4

1 Leisure Facilities

Restaurants & Chains

Nightlife

Events

5.62%

60.27%

9.33%

33.26%

152.99

146.93

115.33

95.1

134.45

156.7

113.74

114.02

REACH relevance

1005003.00%2.00%1.00%0.50%<0.01% 130 160

Rock On The Range

Live Nation Pittsburgh

Ink Life Tour

Disney On Ice

BottleRock Napa

Fun Fun Fun Fest

Medieval Times Dinner & Tournament

Neon Vibe 5K

Rockettes

Live Nation

FASHION HEALTH MAGAZINES

One unexpected quirk of this audience is their love of horror films (and horror-genre magazines), which rank even above the Romance category. A series of ads featuring zombies on a margarita bender could make for a funny take on “nightlife.” Interest in monsters, pin-up models, and tattoos may be a bizarre combination, but throw a little tequila in the mix, and you never know

what creative marketing you’ll come up with.

INSIGHTThe 25-34 year-old female demographic may find it interesting that agave products aren’t limited to tequila - agave is also used in many of their favorite skincare and hair products. It might also make for a humorous ad

campaign: Agave, as good for you on the outside as it is on the inside.

CREATIVITY INSIGHTS

CREATIVITY INSIGHTS

REACH relevance

100663255.52%41.64%27.76%13.88%<0.01% 134 168

Horror Films

Romance Films

Animated Films

Comedy Films

Drama Films

Science Fiction and...

Action and Adventure...

Documentary Films

TOP MOVIE GENRES TOP ENTERTAINMENT MAGAZINES

# NAME REACH POPULARITY RELEVANCE

2

3

4

5

6

7

8

9

10

1 Lowrider Arte Magazine

Bizarre Magazine

Scream The Horror Maga...

The Pin-Up Magazine

Tattoo Artist Magazine

TVyNovelas Puerto Rico

Rue Morgue

Famous Monsters of Fil...

Co.Design

Empire Magazine

1.20%

0.87%

0.27%

0.20%

0.49%

0.22%

0.33%

0.29%

0.26%

0.39%

193.26

194.82

196.2

194.34

188.35

192.6

189.45

187.93

183.84

178.9

150.89

150.23

146.01

143.71

143.2

142.82

142.27

140.7

137.65

135.98

If you needmore insightson this target andits competitors

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