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US Drinks Conference 2010
Brought to you by:
Allocating Marketing Budgets
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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
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U.S. Drinks Conference 2010
Should do…
Could do…
Allocating Budgets - A Question of:
Must do…
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U.S. Drinks Conference 2010
You Must
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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
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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
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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
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U.S. Drinks Conference 2010
You Should
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U.S. Drinks Conference 2010 9
You Should
• Market your brand to the Trade:– Retailers– Bar Owners– Bartenders– Staff– Etc
• Why you may ask?
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U.S. Drinks Conference 2010
FUNNEL
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U.S. Drinks Conference 2010
FUNNEL
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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
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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
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Shifting Marketing $$ to Online/SMM
Adding
Reducing
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Marketing Sherpa 2009
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U.S. Drinks Conference 2010
You Could
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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
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U.S. Drinks Conference 2010
Reference Media Spend: Spirits
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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
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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 $44
Reference Media Spend: Spirits
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The B.I.G. 2010 Liquor Handbook
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U.S. Drinks Conference 2010
Reference Media Spend: Beer
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Measured Media Spend 2009: Beer ($ 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 $0
The B.I.G. 2010 Beer Handbook
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U.S. Drinks Conference 2010
Measured Media Spend 2009: Beer ($ 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
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The B.I.G. 2010 Beer Handbook
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U.S. Drinks Conference 2010
Pro Forma Budget Allocation
Just a starting point
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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
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BAT Analysis
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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
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BAT Analysis
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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
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BAT Analysis
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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
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Get the Trade
Involved
Put Your Money On the Street
Stimulate measurable actions by
people who “raise their
hand”BAT Analysis
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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
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BAT Analysis
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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”
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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
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U.S. Drinks Conference 2010
Thank You!
Jeff Grindrod, Managing Partner
1 Darling Dr.
Avon, CT 06001
USA
860-676-7900