Layna Ai Ora Chen Ashwin Kapadiya Gavin McMurray Sarah Polan Kavita Valarmathi MGT252 Intro to...
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Transcript of Layna Ai Ora Chen Ashwin Kapadiya Gavin McMurray Sarah Polan Kavita Valarmathi MGT252 Intro to...
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.