DIGITAL MARKETINGKarlien van Rhijn

Amanda

Janie Ansell

5th Lane Liquor

5TH LANE LIQUOR

BRANDING

Branding strategies include:

Expressing key objectives

Expressing brand message to key target audience

5th Lane Liqor wishes to be perceived as an upscale liquor merchant

Motivate buyers by providing a brand that supplies quality liquor to Corporate events

Increase user loyalty within target market (25-45)

Branding Strategy

Messaging Advertising Websites

Online purchasin

g

Social media

Sales Tools

Pricing

CRM Brand Name

5TH LANE LIQUOR

INDUSTRY

Most liquor retailers are based in New South Wales, which hosts 44.4% of all stores. Victoria has 23.5% while Western Australia ranks third with 14.9%. Other states and territories host fewer than 10% of retail outlets. 5Th Lane Liquor have two liquor outlets in CBD areas, one in Melbourne and the other in Sydney.

Woolworth’s enjoys a quarter of market share with its Dan Murphy’s and BWS flagships. Coles Group, whose brands include Liquorland, Vintage Cellars, Quaffers and 1st Choice, claims 20% of the liquor market, and smaller players comprise the remaining 55%.

Retailers in this industry are involved in selling liquor including beer, wines, spirits and ready to drink mixers in packaged form of bottles and cans. These alcoholic beverages are not for immediate consumption in the liquor store.

MARKET RESEARCH The following 10 websites were analysed

1. Vintage Cellars2. Dan Murphy’s3. eBottleO4. North Sydney Cellars5. Ice Box6. Booze Brothers7. Liquor Home Delivery8. LiquorLand9. Celebratons10. Red Bottle

Only 3 of these competitors distribute in store AND online to both B2B and B2C buyers! (Vintage Cellars, North Sydney Cellars & LiquorLand)

Figure 1.1 IBISWorld Australia 2007 <http://www.smartcompany.com.au/retail/liquor-industry-drowning-its-sorrows.html>

SITUATION ANALYSISStrengths

Product range available online and in two stores

Location of both stores in CBD Comprehensive product range Personalised purchasing experience Trained staff with superior product

knowledge Drive through area with parking Catering to the needs of connoisseurs,

Pragmatists & Conformists

Weaknesses

Several competitors in immediate vicinity Lack of 5Th Lane Liquor outlets Unable to compete with large scale retail

liquor outlets Only two stores Economy in recovery after GFC Minimal range of ‘value’ orientated

products Seasonal sales - Christmas, Easter and NY

Opportunities

Premium market leader Unrivalled product range Competitive pricing on exclusive products Forming strategic alliances Sponsoring corporate events Interactive website including blog Target market has greater spending power

than others

Threats

Cultural shift away from alcohol consumption

Pressure on budgets Coles & Woolworths expanding aggressive

liquor retailing activities Economic Crisis means higher inflation

rates which creates value shoppers Competitors use value strategies Limited to metropolitan areas

Geographic Segment• CBD ( Corporate Area )• Metro Region ( Postage Cost )

Demographic Segment• ASU 25+ ( Corporate World )• Male & Females• Income B2C $45,000 +, B2B $100,000 + • Higher Education ( Corporate World )• Gen Y, X & Baby Boomers • B2B & B2C : Corporates, Businesses & Government sector

Psychographic SegmentPersonality Traits : Ambitious, Confident, Knowledgeable, Elegant, Upper Class, Assertive, Pragmatic, Connoisseur & Conformist

•Behavioural Segment33 % Will use based on reputation & image27 % Will take time to find best price available & fastest delivery time 25 % Will take the time to find best available price15% Will have used before & no need to find new supplier

•Usage Segment• B2B : $200- $2500/-, Frequency twice a year or less $2501- 4000/- Frequency 3-4 times a year $4001+, Frequency 1-4 times a year $4001 +, Frequency more than 4 times a year• B2C : $18- $200/-, Frequency twice a year or less $200 +, Frequency twice a year or less $18-$200/-, Frequency 3 or more times a year $200+, Frequency 3 or more times a year

TARGET MARKET

Connoisseur Conformist Pragmatist

Key Attitudes Key Attitude Key AttitudeWorth paying a premium Having something in More practical elementfor quality common with others Mainstream productsKnowledgeable about Less knowledgeablepremium products Seeking recognition

Drivers Drivers DriversBetter Taste Perceived image Convenience of serviceMore flavoursome from purchase Not all about the tasteQuality Upper class Overall experience

More likely to be: More likely to be: More likely to be:30-60 30-60 45+Corporate Lower wage bracket City dweller, outer city

living

SEGMENTATION

OBJECTIVES

• Increase market share to at least 1.5% by 2012

• Increase sales revenue to achieve gross profits of $1 million between 2010 and 2011 financial year

• Ensure distribution costs are kept minimal

• Increase brand awareness to 50%

• Achieve effective customer relationship management through customer memberships

• Achieve successful customer retention and repeat purchases

• Accomplish fluent chain management

E-MARKETING STRATEGY

Product

•5th Lane Liquor products will be alcoholic beverage based

•Products available to B2C and B2B

Price

•Market orientated pricing strategy, based on market expectations

•Penetration Pricing

Distribution

•5th lane liquor will be distributed to all corresponding client requested addresses

•B2B will be our main distribution point of sale

Promotion

•5th Lane Liquor will be implementing several elements of the marketing communications mix

•Television, Magazine advertising, Radio, Internet promotions, Email campaign, Social media profiles

RMS

•5th lane liquor’s MEMBERS card, which offers specials, discounts, and free delivery when order exceed a certain amount

IMPLEMENTATION PLANProduct StrategiesOnlineTangibility elements of website that represent quality and enhance consumer perception

Intuitive navigation, Uniform style throughout site, Logical distribution of pages and links etc

Search Engine

Personalisation of account each time the site is accessed

Aimed at selling – automated recommendations

Extensive product information is available online

Consumers less time to source products

Wide range of alternatives

In Store

Membership card displays account history on staff computerAimed at selling - recommendationsShelves are not crammed and exclusive products are given spaceto enhance prestigeStatus of buying in store

IMPLEMENTATION PLAN

Fig. 1.1 Map of Sydney displaying same day delivery restrictions. Fig. 1.2 Map of Melbourne displaying same day delivery restrictions.<http://www.worldguides.com/images/sydney/sydney_map_city.jpg> < http://www.world-guides.com/images/melbourne/melbourne_map_city.jpg>

Distribution Strategies Tangibly operating in just two states does not suggest the rest of Australia is unable to access the products sold by 5th Lane Liquor. B2B - Potts Point (NSW) or Toorak (VIC) store AND the FifthLaneLiquor website

B2C - In store AND online. Online ordering is recommended for B2C consumers

In Store Same day delivery $10 (providing order is placed before 1 o’clock and depending on location) Next day delivery free (depending on location).

Online Express Delivery – within 48 hours (depending on location) for a flat rate of $25Home Delivery – within 7 working days (depending on location) for a flat rate of $10Orders over $300 receive free delivery

Third Party delivery Agent

IMPLEMENTATION PLANPricing Strategies

Premium PricingHigher priced products - Consumer perceives quality

Seasonal SpecialsSpecials limited not a value for money, don’t want to be perceived as value supplier Bulk PurchasesSmall discounts 5-10% on selected products for large orders

Online BiddingNot applicable to site, target market corporate consumer is time poor, unable to watch items

Online Vs StoreCompetitors pricing strategies within store Vs online are similar 5th Avenue use a slightly lower margin online as the core business is derived from businesses

This strategy is to encourage consumers to buy online for convenience and price as store locations have many local competitors

IMPLEMENTATION PLANRelationship Management Strategies

•MEMBERS card, and loyalty program

•Specials & discounts. Free delivery

• IT service consultants – Provide 6 day service and 24 response

• Privacy policy – Quarterly updates

•Security Policy – Monitoring and quarterly updates

•Security tip page - online hazards & updates

• Regular monitoring of external environment, distribution and technological policies

•Consumer feedback - qualitative data collection

IMPLEMENTATION PLANMarketing Communication Strategies

5th Lane Functions E-Commerce website

Content Management

Newsletter (email & snail mail for members)

Navigation Tools

Site membership and affiliate services

Gift voucher system

Testimonial page

Personalised basket and checkout system

5th Lane Blog promoting direct response

Advertisements in Sydney Morning Herald, BRW (Australia's leading weekly business magazine) and WineEstate Magazine (http://www.winestate.com.au/advertising/)

Customer service tab available on every page of website giving users multiple methods of contact

Alliances

Developing symbiotic relationships with other industries is something 5Th Lane Liquor strives to achieve and maintain. Forming business and strategic alliances with other businesses who use liquor as a promotional tool (such as florists and wedding car hire companies with champagne, etc.) is an important tactic 5Th Lane Liquor seeks to perfect through affiliates.

INFORMATION GATHERING TACTICS

AIM: To gather a combination of Qualitative and Quantitative data through B2B and B2C both In Store and Online.

Quantitative Collection:Online questionnaire once purchase is complete and in store questionnaire promoted to help improve

service

Qualitative Collection:Emails, Notes, Testimonials and Feedback Forms available online and in store

The costs and time associated with data collection include: Time to prepare questionnaires Time to gather, record, analyse and report on the data The costs involved in collection, analysis and reporting

Sources of data include: Consumers - prospective, current, past, withdrawn Social media networks - Facebook, Twitter Industry blogs, magazines etc - Wine Estate, 4bars.com.au Industry professionals

ORGANISATIONAL STRUCTURE FOR IMPLEMENTING THE PLAN

A ‘Horizontal Organisational Structure’

CEO

NSW Store Manager

Sales Import/Inventory

Distribution

VIC Store Manager

Sales Import/Inventory

Distribution

Online Manager

Sales/ Research

Distribution

BUDGET

Aim to reduce delivery cost, encourage larger orders within corporate sector Target Metropolitan regions, consumer pays less Aim to negotiate cheaper deals with suppliers, bulk buys to give our

consumers lower margins online. Negotiate with premium suppliers to reduce margins as opposed to “ in store

specials” as aim to obtain consumers perception of value site Aim to in the short term draw business by providing own delivery vehicle,

continuing into the long term through partnership. This builds company equity by purchasing vehicle, & saving on any postage costs.

EVALUATION PLAN

Sales conversion rate per

website visit Feedback – data collection Direct response/Call to action – successful? New memberships Have we been true to our objectives? Have we attracted qualified prospects who’ve shown an interest in 5th Lane

Liquor? Positive ROI? Privacy and confidentiality Repeat business

In summary, our evaluation plan is feasible in terms of budget, schedule, personnel

availability and data availability. It is calculated and realistic.

REFERENCESSmartCompany.com

Liquor industry drowning its sorrows November 2007

http://www.smartcompany.com.au/retail/liquor-industry-drowning-its-sorrows.html

Accessed: Thursday 2nd September 2010

IBISWorld

Liquor Retailing in Australia 2010 Australian Industry Report

http://www.ibisworld.com.au/industry/default.aspx?indid=398

Accessed: Thursday 2nd September

Text

Marketing, a Practical Approach 6th Edition

Peter Rix 2007, pg 14 McGraw Hill

Text

Advertising and Promotion, An Integrated Marketing communication Perspective 2009

Belch, McGraw Hill 2006