US Drinks Conference 2010 Brought to you by: Allocating Marketing Budgets.
-
Upload
mitchell-wheeler -
Category
Documents
-
view
216 -
download
1
Transcript of US Drinks Conference 2010 Brought to you by: Allocating Marketing Budgets.
US Drinks Conference 2010
Brought to you by:
Allocating Marketing Budgets
U.S. Drinks Conference 2010
• Product:• Good Tasting Product• Unique, Attractive Package• Product Point Of Differentiation
• Path:• Organization (Your Own or Importer/Supplier) to Manage Business• Distributors Who Stock and Distribute Product• Retailers (On & Off-Premise) Who Introduce Your Product to Your
Target Consumers
• Promotion:• Sales and Education Materials• In-Store/Bar Merchandising – POS Support• Advertising/Public Relations/Programs
• Price:• Must Fit Positioning
What Brands Need to Bring to Market
2
U.S. Drinks Conference 2010
Should do…
Could do…
Allocating Budgets - A Question of:
Must do…
3
U.S. Drinks Conference 2010
You Must
4
U.S. Drinks Conference 2010
You Must
• Get the Product into a distributor. Who is looking for:– What are you going to do to move it out of our
house so I can make money• Get Retailers. Who are looking for:
– What are you going to do to move it out of our bar/store so I can make money
• Get Consumers. Who are looking for:– A product (like yours) that fits my needs
5
U.S. Drinks Conference 2010
You Must
• Sell Your Product and Educate Trade and Consumers on Why Your Brand– Provide sales tools to your sales teams
(internal and external)• Sales literature, sampling kits, fact cards, etc
– Education material – – What is this product? Why should I sell/consume it?
» Product description, tasting notes, pairings, point of differences, etc
6
U.S. Drinks Conference 2010
You Must
• Create Consumer Demand at Point of Purchase and Outside POP
• At POP– Off-Premise – bottle necker, shelf talkers, display
materials…– On-Premise – fact cards, table tents, unique point of sale
that brings your– Both - Sampling, promotion, events..
• Outside: bring your brand to life…– Advertising– Public Relations– Social Media– Your budget will dictate which way you go
7
U.S. Drinks Conference 2010
You Should
8
U.S. Drinks Conference 2010 9
You Should
• Market your brand to the Trade:– Retailers– Bar Owners– Bartenders– Staff– Etc
• Why you may ask?
U.S. Drinks Conference 2010
FUNNEL
10
U.S. Drinks Conference 2010
FUNNEL
11
U.S. Drinks Conference 2010
How To Market To The Trade
• The Top Way Trade Gets Information is:– Trade Publications Editorial– Distributors– Suppliers– Trade Publication Advertising– On-Line– E-Newsletters
• Working with Trade Publications is effective:– Trade PR is effective and lower cost– On-Line growing and where they say they want to get info– Trade Advertising effective in getting your exact message
to the trade
Reversed for Off vs. On
12
U.S. Drinks Conference 2010
You Should
• Promote your brand to your target consumer• Social Media Marketing
• Blogs specifically set up for Beer, Wine, or Spirits that can reach large numbers of Passionate beverage alcohol consumers
• Sites & Forums that reach large sums of consumers who are interested in Beer, Wine, Spirits
• FaceBook – Best place, least expensive way to engage your consumers
• Other
• Media Outreach – traditional & on-line• Targeted to your audience as much as possible• Also key in on lifestyles that match your target consumers
13
Shifting Marketing $$ to Online/SMM
Adding
Reducing
14
Marketing Sherpa 2009
U.S. Drinks Conference 2010
You Could
U.S. Drinks Conference 2010
You Could
• Advertise:• On-Line allows you to target consumers and lower cost• Traditional more expensive and less targeted
• Events • Facilitates sampling
• Tie in with Celebrities• At events• Though Sponsorships
• Conduct Partnership programs• Tie-in with complimentary products, programs, etc
• Value Added packs
16
U.S. Drinks Conference 2010
Reference Media Spend: Spirits
17
Measured Media Spend 2009: Spirits ($000's)Mag. Newsp. Outdoor B'cast Total
VodkaAbsolut $12,342 $315 $1,103 $4,073 $17,833
Grey Goose $10,211 $358 $0 $3,605 $14,174Svedka $7,609 $189 $1,663 $0 $9,461Ultimat $3,314 $0 $490 $21 $3,825
Tito's $2,406 $152 $0 $20 $2,578Georgi vodka $0 $0 $148 $0 $148
WhiskiesJack Daniel's $4,004 $35 $1,235 $9,186 $14,460
Jameson $3,283 $5 $198 $6,235 $9,721The Glenlivet $3,913 $864 $0 $49 $4,826
Red Stag by Jim Beam $316 $0 $0 $1,148 $1,464Rum
Captain Morgan $187 $16 $600 $18,795 $19,598Gosling $1,221 $0 $0 $0 $1,221
Sailor Jerry $0 $0 $225 $198 $423Gin
New Amsterdam $2,196 $0 $0 $175 $2,371Bombay Sapphire $1,958 $0 $0 $203 $2,161
Bulldog $44 $0 $0 $0 $44
The B.I.G. 2010 Liquor Handbook
U.S. Drinks Conference 2010
Measured Media Spend 2009: Spirits ($000's)Mag. Newsp. Outdoor B'cast Total
VodkaAbsolut $12,342 $315 $1,103 $4,073 $17,833
Grey Goose $10,211 $358 $0 $3,605 $14,174Svedka $7,609 $189 $1,663 $0 $9,461Ultimat $3,314 $0 $490 $21 $3,825
Tito's $2,406 $152 $0 $20 $2,578Georgi vodka $0 $0 $148 $0 $148
WhiskiesJack Daniel's $4,004 $35 $1,235 $9,186 $14,460
Jameson $3,283 $5 $198 $6,235 $9,721The Glenlivet $3,913 $864 $0 $49 $4,826
Red Stag by Jim Beam $316 $0 $0 $1,148 $1,464Rum
Captain Morgan $187 $16 $600 $18,795 $19,598Gosling $1,221 $0 $0 $0 $1,221
Sailor Jerry $0 $0 $225 $198 $423Gin
New Amsterdam $2,196 $0 $0 $175 $2,371Bombay Sapphire $1,958 $0 $0 $203 $2,161
Bulldog $44 $0 $0 $0 $44
Reference Media Spend: Spirits
18
The B.I.G. 2010 Liquor Handbook
U.S. Drinks Conference 2010
Reference Media Spend: Beer
19
Measured Media Spend 2009: Beer ($ 000's)
Print Broadcast Total
Corona Extra $9,556 $35,083 $44,639
Heineken $10,262 $28,741 $39,003
Dos Equis $204 $22,040 $22,244
Stella Artois $10,940 $6,065 $17,005
Sam Adams Boston Lager $86 $16,328 $16,414
Guinness $330 $7,334 $7,664
Beck's $997 $2,539 $3,536
St Pauli Girl $725 $0 $725
Grolsch $0 $0 $0
The B.I.G. 2010 Beer Handbook
U.S. Drinks Conference 2010
Measured Media Spend 2009: Beer ($ 000's)
Print Broadcast TotalCorona Extra $9,556 $35,083 $44,639Heineken $10,262 $28,741 $39,003Dos Equis $204 $22,040 $22,244Stella Artois $10,940 $6,065 $17,005Sam Adams Boston Lager $86 $16,328 $16,414Guinness $330 $7,334 $7,664Beck's $997 $2,539 $3,536St Pauli Girl $725 $0 $725Grolsch $0 $0 $0
Reference Media Spend: Beer
20
The B.I.G. 2010 Beer Handbook
U.S. Drinks Conference 2010
Pro Forma Budget Allocation
Just a starting point
21
U.S. Drinks Conference 2010
Pro Forma Budget Allocation: Spirit
$000's % $000's % $000's %Advertising
Creative $10 1% $125 3% $375 4%Production $5 1% $100 2% $400 4%
Offline Media $75 8% $1,000 20% $3,000 30%Online Media (Display and Paid
Search) $105 11% $1,300 26% $2,500 25%Subtotal advertising $195 20% $2,525 51% $6,275 63%
Consumer Merchandising and Promotions (Flow/ POS, Promotions, Merchandising) $110 11% $725 15% $1,000 10%Support of Field Mktg/Sales/Distr. (Brand Ambassadors, Menu pgms, bar parties, tastings, incentives, sales literature) $260 26% $700 14% $1,700 17%Traditional Public Relations and Events $100 10% $400 8% $500 5%Trade Marketing $125 13% $300 6% $400 4%Website $60 6% $100 2% $125 1%Interactive/Social Media Marketing $150 15% $250 5% $400 4%TOTAL $1,000 100% $5,000 100% $10,000 100%
$5 MM Budget $10MM Budget$1 MM Budget
22
BAT Analysis
U.S. Drinks Conference 2010
Pro Forma Budget Allocation: Spirit
$000's % $000's % $000's %Advertising
Creative $10 1% $125 3% $375 4%Production $5 1% $100 2% $400 4%
Offline Media $75 8% $1,000 20% $3,000 30%Online Media (Display and Paid
Search) $105 11% $1,300 26% $2,500 25%Subtotal advertising $195 20% $2,525 51% $6,275 63%
Consumer Merchandising and Promotions (Flow/ POS, Promotions, Merchandising) $110 11% $725 15% $1,000 10%Support of Field Mktg/Sales/Distr. (Brand Ambassadors, Menu pgms, bar parties, tastings, incentives, sales literature) $260 26% $700 14% $1,700 17%Traditional Public Relations and Events $100 10% $400 8% $500 5%Trade Marketing $125 13% $300 6% $400 4%Website $60 6% $100 2% $125 1%Interactive/Social Media Marketing $150 15% $250 5% $400 4%TOTAL $1,000 100% $5,000 100% $10,000 100%
$5 MM Budget $10MM Budget$1 MM Budget
Stimulate measurable actions by people who
“raise their hand”
PrioritiesPut Your Money On the
Street
Get the Trade Involved
23
BAT Analysis
U.S. Drinks Conference 2010
Pro Forma Budget Allocation: Wine
$000's % $000's % $000's %Advertising
Creative $0 0% $3 2% $10 2%Production $0 0% $2 1% $20 3%
Offline Media $0 0% $0 0% $60 10%Online Media (Paid Search) $0 0% $15 8% $130 22%
Subtotal advertising $0 0% $20 10% $220 37%
Consumer Merchandising and Promotions (Flow/Prom. Pgms/POS) $5 5% $10 5% $40 7%Support of Field Mktg/Sales/Distr. (Menu pgms, bar parties, tastings, incentives) $10 10% $20 10% $40 7%Public Relations/Events $15 15% $40 20% $60 10%Trade Marketing $15 15% $25 13% $40 7%Website $10 10% $15 8% $30 5%Interactive, Social Media Marketing, Ecommerce support $45 45% $70 35% $170 28%TOTAL $100 100% $200 100% $600 100%
$200,000 Budget
$600,000 Budget
$100,000 Budget
24
BAT Analysis
U.S. Drinks Conference 2010
Pro Forma Budget Allocation: Wine
$000's % $000's % $000's %Advertising
Creative $0 0% $3 2% $10 2%Production $0 0% $2 1% $20 3%
Offline Media $0 0% $0 0% $60 10%Online Media (Paid Search) $0 0% $15 8% $130 22%
Subtotal advertising $0 0% $20 10% $220 37%
Consumer Merchandising and Promotions (Flow/Prom. Pgms/POS) $5 5% $10 5% $40 7%Support of Field Mktg/Sales/Distr. (Menu pgms, bar parties, tastings, incentives) $10 10% $20 10% $40 7%Public Relations/Events $15 15% $40 20% $60 10%Trade Marketing $15 15% $25 13% $40 7%Website $10 10% $15 8% $30 5%Interactive, Social Media Marketing, Ecommerce support $45 45% $70 35% $170 28%TOTAL $100 100% $200 100% $600 100%
$200,000 Budget
$600,000 Budget
$100,000 Budget
25
Get the Trade
Involved
Put Your Money On the Street
Stimulate measurable actions by
people who “raise their
hand”BAT Analysis
U.S. Drinks Conference 2010
Pro Forma Budget Allocation: Beer
$000's % $000's % $000's %Advertising
Creative $0 0% $15 2% $30 1%Production $0 0% $0 0% $20 1%
Offline Media $0 0% $0 0% $800 32%Online Media $25 6% $175 18% $450 18%
Subtotal advertising $25 6% $190 19% $1,300 52%
Consumer Merchandising and Promotions (Flow/Prom. Pgms/POS) $100 25% $120 12% $250 10%Support of Field Mktg/Sales/Distr. (Menu pgms, bar parties, tastings, incentives) $100 25% $225 23% $250 10%Public Relations/Events $25 6% $200 20% $290 12%Trade Marketing $75 19% $100 10% $150 6%Website $30 7% $65 7% $60 2%Interactive and Social Media Marketing $50 12% $100 10% $200 8%TOTAL $405 100% $1,000 100% $2,500 100%
$500,000 Budget
$1,000,000 Budget
$2.500,000 Budget
26
BAT Analysis
U.S. Drinks Conference 2010
Pro Forma Budget Allocation: Beer
$000's % $000's % $000's %Advertising
Creative $0 0% $15 2% $30 1%Production $0 0% $0 0% $20 1%
Offline Media $0 0% $0 0% $800 32%Online Media $25 6% $175 18% $450 18%
Subtotal advertising $25 6% $190 19% $1,300 52%
Consumer Merchandising and Promotions (Flow/Prom. Pgms/POS) $100 25% $120 12% $250 10%Support of Field Mktg/Sales/Distr. (Menu pgms, bar parties, tastings, incentives) $100 25% $225 23% $250 10%Public Relations/Events $25 6% $200 20% $290 12%Trade Marketing $75 19% $100 10% $150 6%Website $30 7% $65 7% $60 2%Interactive and Social Media Marketing $50 12% $100 10% $200 8%TOTAL $405 100% $1,000 100% $2,500 100%
$500,000 Budget
$1,000,000 Budget
$2.500,000 Budget
Put Your Money On the Street
Get the Trade Involved
Stimulate measurable actions by people who
“raise their hand”
27
U.S. Drinks Conference 2010
Conclusions
• You need to think about:– What are your short and long-term goals– What type of product are you launching:
• Value brand vs. premium brand
– How much money can you invest– Do you need to be national? – You can go
regional or in a state or two• You have to determine what you must,
should and could do
28
U.S. Drinks Conference 2010
Thank You!
Jeff Grindrod, Managing Partner
1 Darling Dr.
Avon, CT 06001
USA
860-676-7900