International Advertising Campaign March 24, 2011 Cross Cultural Promotions Inc.
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Transcript of International Advertising Campaign March 24, 2011 Cross Cultural Promotions Inc.
•Produced on Austin, Texas – First and only distillery in the state (www.titosvodka.com)
•Started in 1997
•Hand crafted
•Distilled 6 times
•Sales - 230,000 cases in 2010 (Tito’s CEO)
Tito’s VodkaBackground Statement
Industry Outlook - US
• 2009 Spirits volumes +1.4%– Trading down: consumers stay home more (DISCUS)
• Value spirits led the volume growth, rising 5.5%, led by value vodka (up 10.7%)
• Volumes grew 2.2% in the off-premise (at home) sector, which comprises about 75% of industry volumes– on-premise sector (at restaurants, bars, hotels etc)
dropped 3%
Industry Outlook – US (con’t)
• The spirits industry should see growth driven by:– Targeted marketing to demographic “sweet spots”
– Increased attention to the off-premise trade
– Continued brand innovation
• Vodka is the second largest sector in the
US sprits market after whiskey - $10.2B (2010 Data Monitor)
Industry Outlook - China
• The rate of increase of alcohol consumption in China is one of the fastest in Asia– The per capita consumption among residents was 9.39 kg in urban
areas and 7.67 kg in rural areas
• China is the world’s largest producer of spirit– Production levels are more than twice as high as the next leading
producing country: Russia
• Global Status Report on Alcohol (WHO, 1999)• World Drink Trends: 2005 (World Advertising Research Center, 2005)• Report of the 3rd National Health Service Survey ( China,2003)
Industry Outlook – China (con’t)
• The pattern of beer consumption differed significantly from the pattern of liquor consumption– Spirit drinking is more common in the rural
area than The urban area. – Beer drinking is more common in the urban
area than the rural area
• Male alcohol use is higher than female; the peak is at 18-60 years old
• Both urban and rural areas show the same trends
Industry Outlook – China (con’t)
• Alcohol drinking among Chinese by age, gender and area – Male alcohol use is higher than female; the peak is at 18-60 years old
Source: National Nutrition and Health Survey of Chinese Residents in 2002
International Issues
• High entrance barriers• Regulations• Import/Export: Fragmented distribution • Pricing/Exchange rate: Unfavorable pricing• Lifestyles• Tastes
Marketing Analysis and Product Placement
• Premium vodka – strong growth
• Brands such as Ketel One, Grey Goose and Absolut are marketing turbos
• Domestic outlook – stagnant but growth potential in emerging market; i.e. China
• Tito’s main marketing –social media, events, winning awards, website, print ads, articles, and word of mouth
Product & Market Place Analysis
• Top alcohol brands in China
• The Vodka market in China is still at beginning stage, some existed brand include:
Segmentation
Choices 3Vodka drinkers tend to…• be 21-34
• have college degrees
• be single, not married
• have an income greater than $75k
• drink Stoli (men) and Three Olives (women)
Source: Choices 3. Indexed to 21+. Data taken only from indices greater than 120.
Marketing Objectives
From June 2011 – May 2012• Increase total sales
– US by 15% 265k cases (Tito Beveridge, Owner)– China to 75k
• Increase brand awareness within target market (Young Affluents)
– US to 20%– China to 10%
• Increase distribution in US and China– US by 15% to 76 distributors (www.titosvodka.com)
– China to 10 distributors
Marketing Strategy
• Tap into the growing premium vodka segment by emphasizing Tito’s quality and taste
• Establish Tito’s as the high-quality humble vodka brand
• Target markets– China adults 25-44, affluent, urban
– US adults 25-44, affluent, value driven