Layna AiOra Chen

Ashwin KapadiyaGavin McMurray

Sarah PolanKavita Valarmathi

MGT252Intro to Marketing

Executive Summary

Who are we?

What is our product?

Why this product?

PEST Analysis

Political

Regulations for alcohol sales in Ontario

Manufacturer’s license

Government monopoly on alcohol sales

Advertising in Ontario

Manufacturing alcohol in Ontario

PEST Analysis (cont'd)

Economic

Smirnoff’s (Diageo’s) shares have increased over the past few years, and continue to show an upward trend

The overall market has rebounded, indicating that

PEST Analysis (cont'd)

Social

People are drinking more and more socially, with continuous increase in alcohol sales

The club-goers are always trying to follow the latest trends, and because of this they will be attracted to a new and differentiated product

PEST Analysis (cont'd)

Technological

Mainly to do with the production of vodka

Production has remained the same for many hundreds of years

SWOT Analysis

Strengths

Fact that we’re a brand new company means we have an easier time positioning ourselves as a differentiated product

Weaknesses

Since we are a new company, we have a lack of experience in the manufacturing of our product

SWOT Analysis (cont'd)

Opportunities

The market expansion in vodka sales is an excellent opportunity to enter the market and be successful

Being able to sell through the LCBO means that we will always have the best possible venue for sales

Threats

Since we are a new company, we have a lack of experience in the manufacturing of our product

Customer Analysis

Our target market segment is any individuals 19-30 years of age

This segment consumes the largest amount of alcohol, and tend to go to clubs, bars, lounges, etc.

Targeting people who are willing to pay slightly more for better quality beverage, i.e. who have more spending money

Competitor Analysis

Main competitors; Smirnoff, Absolut, SKYY and Grey Goose

All of these companies have developed products with infused flavours

This is because consumers are increasingly interested in a wider variety of flavours

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Company/Market Analysis

“To become the number one seller of infused vodka in the next 10 years”

We are a new company and will require a large initial investment in marketing expenditures to reach our target consumer

Market trends show that tastes for

Brand Positioning

Brand name: Iced Vea

Provide customers with high quality beverage that will suit any occasion

Build brand image on memorable get-togethers and all around good times

Brand development into other product lines

Product & Price

Trademark “Cube” eye-catching 750mL bottle

Minimum price for LCBO sales is $24.95

In order to show that our product is premium, set the price slightly higher at $30.95

This shows high quality, and yet remains affordable

Promotion & Place

Promotion to consumers as well as business

Use of sales people to speak with business managers

Magazine, television and billboard advertisements

Distribution through the LCBO

Required for every alcoholic beverage in Ontario

Timetable

Nov 2010 – Submit product to LCBO for approval

April 2011 – Begin marketing campaign

June 2011 – Product available for sale

December 2011 – Evaluate sales and marketing efficiency for the year

June 2012 – Prepare new marketing campaign, “party” promotions, etc.

Evaluations

Success to be gauged in two key areas:

1. Product Awareness Survey (33% Toronto, GTA; 18% Ontario) Interview Managers/Staff from LCBO and corporate

buyers Expect positive feedback

2. Sales Obtain sales figures from LCBO and licensed

establishments 6 mo. Goal: $400,000 retail, $350,000 licensed

establishments

FinancialsAssets

Distillery $1 000 000Equipment $4 000 000Liscensing $100 000Inventory $500 000

LiabilitiesBank Loan $6 000 000

ExpensesLabour wages (@ $15/hr) $700 000Marketing expenses $1 000 000Selling and administrative expenses $200 000

RevenuesSales revenues $1 000 000

As we can see from our overview of our financial report, we will need to take a significant bank loan as a start up company in order to cover some of our initial costs. The bulk of these consist of the distillery and the equipment needed for it. Our marketing expenses are set at $1 000 000 because we intend to do a lot of marketing initially in order to penetrate the market. However, given our current financial status we could not provide more resources than that. We are hoping that the marketing will pay for itself at the end of one year and provide us with approximately $1 000 000 in revenues, at which point we may begin to host our promotion “parties” in order to ensure share of voice in our market segment.