marketing plan for sandeman portwine

Sabrina Tosti GuerraNikolas Vogt

Maria Clara NevesJoão Nuno Guerra

13.12.2011

Marketing PlanSandeman Port wine in 2012

Agenda

I. Current Situation• Portfolio Analysis• Marketing Strategy and Financials/Budget

II. Environment Analysis• Macro- and Microenvironment

III. SWOT Analysis

IV. Marketing Actions• Marketing Objectives and Target Market• Marketing Strategy and Tactics• Implementation and Evaluation

V. Conclusion

2

George Sandeman (Chairman)3Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion

Company and Mission

• Sogrape: one of the major players in the Port business, exports to about 125 countries

• Mission Statement of Sandeman: “Famous for pleasure”

“As tastes and habits change, people are learning to experiment, chilling their red wine, serving white wines with meat and red wines with fish…Sandeman, too, is experiencing a renaissance as aficionados try new ways of serving it – no longer just as an aperitif or dessert wine, but as an accompaniment to haute cuisine (…)”George Sandeman.

4

• George Sandeman: Scottish merchant who founded Sandeman

• The Don: Spanish caballeros de Jerez in a Portuguese student’s cape and wide-brimmed hat

• 200 years after, Sandeman is distributing their products in more than 55 markets

Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion

Sandeman Portfolio Analysis

Sandeman

Port Wine

Tawny-10;20;30; 40 years old

-Ruby-Vau Vintage

-Vintage-White-Apitiv

-Imperial Reserve

-Founders Reserve

-etc

Red Wines

-Confradeiro Reserva Red

2000;-Confradeiro

Reserva 2002

Cocktails

-Caipe Sandeman;

-Cream cocktail-Bliss

-Cosmo-Crushe

-Fizz-Hot

-Imperial on the Rocks

-etc

Sherry

-Armada-Character-Don Fino-Dry Seco

-Medium Dry-Rare Fino

-Rich Golden-etc

Madeira

-Fine Rich-Rainwater

Brandy

-VVO Solera Gran

Reserva;-Capa Negra;

-Capa Real;-Imperial.

5

Why Tawny?6

Most promising outlook in Sandeman’s portfolio

Accounts most for the company’s sales

Known for its fruit and style of a great Port Wine, but also with an added finesse

Old type but still versatile

Fits as an aperitif, digestive or even during meals

Awards

Marketing Strategy

Among first companies to label and advertise its wines Different languages and markets

Networks in production and distribution with partners

7

Television

Sandeman Website

Cooking magazines

WebsitesAdvertisement

Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion

Financial Status

Revenue: 26,42 Mln €Profit: 2,32 Mln €RoS: 8,78%

8Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion

Inconsistent and low marketing

investment

102 091€ on commercial,

marketing and distribution

(deferred costs)

60 932€ on marketing expenses

25,4% of 641 200€ other

current operating assets

9

Macro: Declining revenues but social connection

• Regulation of production & growing(by CMO & SIVV)

• Possibility of increase of VAT on Port(by ~10%)

Political

• Positive outlook regarding global economy

• Shrinking Port wine market since 2007(decrease of 4% in 2011 compared to 2010)

• Exportation of Port wine declined by 5%

Economic

• Strong social connection to Port wine,especially in Portugal and England(The Methuen treaty)

Social

• Low innovation (mostly incremental regarding production procedures)Technology

Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion

Main Competitors Brand Future Strengths

Aims at values like Freedom, Passion and Dreams

• Versatile brand with unique drinks • Positioned as contemporary Port wine

brand

Emphasis on the quality and techniques

• Well-known for quality old port wines• Often first-mover with new products• Only completely independent

exporter

Focuses on the simplicity and the national spirit of its products

• Brand represents quality• Focuses efforts especially on Portugal

Combine art with the special characteristics of the location

• Churchill’s quiet recent brand and less traditional

• Positioned as high quality “boutique”

Specialized on innovation and has established new products markets (e.g. "Croft Pink“)

• Traditional methods and the highest quality grapes

• One of the best vineyards in the Douro Valley

10

Micro: Lots of brands but lack of clear positioningCurrent Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion

• Brand

• High quality

• Premium positioning on port wine market

• Sogrape Group network

• Production technique

Strengths Weaknesses

ThreatsOpportunities

• Limit amount of qualified labor force

• Lack of promotion

• Inconsistent marketing investments

• Domestic leadership in production (PT)

• Globalization & International trade

• Increasing level of cooperation between final producers and intermediaries

• Shrinking market

• Switch to low-quality brands

• Increasing importance of new producers

• Ongoing industrial concentration

• Imitation of premium products by white labels

I n

t e

r n

a l

E x

t e

r n

a l

Inconsist. marketing

investments

Shrinking market

Low-quality brands

Imitation of products

Brand

Premiumpositioning/

quality

Sales growth

Increasing cooperation

Leverage brand, premium position and increasing cooperation to overcome threats and weaknesses.

Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion

12

Marketing Objectives

• Increase sales by 10% (BE, UK and PT)

• Increase marketing spending to 415 700 € by an increase of 155% through an investment of 252 700 € (budget for 2010 was 163 000 €)

Sales Market share Expenses

Short term: Long term:• Increase share of

marketing spending in FR by 25%

• Strengthen product and brand awareness (emotional touch)

• Find strategic partners for development of new sale channels (optimization and modernization) Recommendation: Not addressing the US market!

Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion

Sales + 5 %(i.g. -3,6 %)

Sales + 10 %(i.g. -11,9 %)

Sales + 25 %(i.g. -21,6 %)

Sales + 5 %(i.g. +7,2 %)

Who is the target?13

Premium- differentiation strategy:

Tawny Port Wine

Aggressive marketing and

distribution strategies

One mission: “Famous for Pleasure!”

Medium to high income adults, who frequently buy Port wine and drink it as a digestive, appetizer or social drink. High level of education.

• restaurants• bars• catering companies

Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion

Business-to-business Business-to-consumer

Marketing Mix and strategies14

Product strategy

Tawny Port wine:

• award-winning-quality

• special packaging

• combination with haute cuisine

• no imitation

Price strategy

Current price:

• average pricepremium in thetop 5 markets equals 5,80 €

• no lower price, strong brand image

Promotion strategy

Pull strategy:

• interactive and emotional marketing

• social media, event-, press- and outdoor-promotion

• brand-fitting testimonial

Placement strategy

Selective strategy:

• relationships with upscale restaurants

• website (purchases)

• Sandeman’s Port wine Museum

13,74 €/1L (average)

Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion

Marketing tactics15

Testimonial and slogan

"Tawny Porto. Every drop is full of pleasure."

• Upscale airlines

• Social Media

• Product package

• Restaurants

• Trade marketing

• Events

Reference Ad

Tawny Porto ExperienceSatisfaction

and relaxation

Full pleasure

Premium character

António Banderas

16

Airport Billboard Golf magazine

Packaging with quality seal

Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion

Implementation 17

Art Events

Life-Style magazines

Specialized Magazines

Restaurants

Booths

Flight's brochures

Social Media

Outdoors

Campaign Development

Coluna1Starting Date

Jan Feb Mar Apr May Jun Jul Aug Sept

150.000 €

32.500 €

2.000 €

5.000 €

5.000 €

2.000 €

6.200 €

30.000€

20.000 €

Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion

Evaluation and Control

Sales◦ Direct purchases online purchases consumer behavior

Market Share◦ Worldwide trend- industry◦ Competitors’ market share

Brand awareness ◦ Understand costumers’ perceptions

and satisfaction

Three levels of assessment◦ Company-wide◦ Department◦ Individual

18Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion

Well defined premium image

Balanced investment aiming at long-term

impacts

Win customers’ loyalty

19

Thank you for your attention!Sources:

Conference Board: Global Economic Outlook 2012 (retrieved on 30.11.2011) –

http://www.conference-board.org/data/globaloutlook.cfm

Lopes, T. S. (2005). “Competing with Multinationals: Strategies of the Portuguese Alcohol Industry”. Business

History Review, 79: 559-585.

Loureiro, N., & Fernandes, P. (Eds.) 2011. Port wine characterisation and positioning in Portugal: XV Congreso

Internacional de Investigación en Ciencias Administrativas AC (ACACIA). Universidad Veracruzana. Universidad

Veracruzana,, Mexico

Protected Designation of Origin (retrieved on 2.11.2011) -

http://europa.eu/legislation_summaries/other/l21303_en.htm

Rebelo, J., Correia, L. & Vaz Caldas J. (2007). “Globalization and wine business: Port wine” (retrieved on 23.11.2011) -

http://ageconsearch.umn.edu/bitstream/9448/1/sp07re03.pdf

Sandeman Website (data for product description, logo, packaging, etc. retrieved on 20.11.2011) -

http://www.sandeman.eu

Sogrape BrandScience Case, 2004 (retrieved on 21.10.2011) -

http://www.brandsciencenetwork.com.pt/pdfs/conference/Sogrape.pdf

Sogrape, SGPS, S.A. Annual Report 2010 (retrieved on 15.10.2011) -

http://www.sograpevinhos.eu/pdf_info_fin/rel_cons.pdf

Vinho do Porto (03-2007) by Instituto Superior del linguas e administraçao (ISLA)

Wines of Portugal (retrieved on 31.10.2011) - http://winesofportugal.info/pagina.php?codNode=18091&market=2