Marketing PlanGROUP 2

Tryfina Kgokong

Robin Koopman

Nick Kirkbridge

Letitia Jentel

Tanya Golden

IntroductionBackground

Situational Analysis

Economic & Business conditions

Customer Base

Competitors

Belvedere SWOT

5 Forces

Target Market

Opportunities and Problems

Marketing Objectives

Marketing Strategy

BackgroundWorld’s 1st luxury vodka

Handcrafted in 600 year old Polish tradition

100% Danskowskie gold rye – distinctive flavour

Blended with pure proprietary artesian water

Diluted four times

Award winning and internationally celebrated

Iconic bottles individually hand finished & inspected

Distributed by the really great brand company

Premium, luxury vodka

Inspiration: Unique, creative, leadership, luxury

Situation AnalysisMarket summary:

Whisky36%

Brandy 35%

Vodka 11%

Liqueurs 6%

Spe-cialty

spirits 1%

Other 12%

SA Spirits Market, 2010

Vodka sales have recorded encouraging growth over the past 12 months after years of flat or negative returns (Starke, 2008)

Growth in the vodka category is being driven by the premium and super-premium categories (Rutherfoord, 2008)

We turned our backs on bling as the global recession bit and conspicuous consumption went out while cutbacks came in. But super- and ultra-premium vodkas are once again finding favour (Lodge, 2009)

The combination of fashion, knowledge and a growing need for experimentation among consumers is fuelling the rise of luxury vodka (Moe, 2009)

Economic & Business Conditions

Economy improving

Purchasing of luxury items - increasing

-150

-100

-50

0

50

100

150

200

250

300

350

400

Reb

ased

South African economic indicators Inflation (CPI) %yr

SA M2

GDP

EURZAR

Interest Rate

Unemployment Rate

Trade Balance

Retail Trade Sales

Sales 74% overall increase (2008 – 2009)

Growth in key urban areas

Significant growth in WC – 115%

↑ 115%

↑57%

↑79%

-50.00%

0.00%

50.00%

100.00%

150.00%

200.00%

250.00%

0

20

40

60

80

100

120

140

Oct Sep Aug Jul Jun May Apr Mar Feb Jan

Sales

RGBC Vodka Sales2009

2008

Growth

↑ 45%

↑ 41%↑ 313%

↑ 142%

↑ 95%

313% ↑ Dance venue sales

142% ↑ House consumption

95% ↑ Dining sales

Positive growth in all segmentsWholesale figures low @ 7%

Customer Base

Gauteng

Moloko Bar (22%) Taboo – night club(13%) Inc the Club (12%) Latinova - bar/nightclub (9%

Western Cape

Karma Lounge – bar/nightclub(46%) Wakame Restaurant (8%) CTICC (7%) Chavelle- nightclub (3%)Hotels – 6%Caveau – bar/restuarant

Characteristics

Clubbing/Dancing NightlifeTrendy Prestigious Youthful, mature professionalsBusiness, arts, musiciansAffluent or striving to be

Smirnoff

Competitors

Grey Goose

Absolut

Belvedere SWOTStrengths

Global Brand Credentials

Authentic, Wow-factor

Iconic Bottle

Mixable

Aspirational

Unisex

Weaknesses

Relatively unknown = low brand awareness

Brand distribution

No Existing Premium White spirit market

Consumers not educated on how to mix premium white spirits

Opportunities

SA Night Life

SA is ready for a Beautiful ‘White Spirits’ brand adorned by Beautiful people

Marketing opportunity in this niche market which includes sponsoring of events

Threats

Grey Goose

Has no established SA reputation

Pay to Play from the White Spirits Sector

On Trade Pricing

5 ForcesEntry Barriers

Brand identityAccess to distributionDeclining market value

Rivalry DeterminantsIndustry growthSubjective product differencesBrand identityInformational complexityDiversity of competitors

Determinants of Supplier PowerPresence of substitute inputsSole Supplier Distribution rights

Determinants of Buyer PowerBargaining leveragePrice sensitivity – little exposure

to premium vodkaBuyer volumeBuyer informationSubstitute productsBrand identityProduct differencesDeterminants of Substitution Threat

Price parity with substitutes (Grey Goose)Buyer more familiar with substitute

Competitive Rivalry within

industry

Threat of substitute products

Bargaining power of

customers

Threat of new entrants

Bargaining power of suppliers

PRIMARY TARGET: Conspicuously Stylish (driver/ fitting in) Luxe individualist (driver/ creator)Unisex

Target MarketSECONDARY TARGET:

Luxe Aspirationalists (striver/creator/fitting in) Gay market

KEY CHARACTERISTICS: Strong Sense of Self Never Fear Judgment Inventive & Progressive Ahead of the curve Uncompromising & Excessive

WHO? Fashion Music Arts & CultureEntertaintment & Creative

LOCATION Dance clubs, bars and lounges Targeted events Arts & Culture events/prizes

Opportunities & ProblemsOpportunities

Global Brand Credentials

Iconic Bottle

Mixable

Aspirational

Unisex

What are we going to do about it?

Establishished luxury brand

International brand & brand ambassadors

Broad market appeal

Aspirational & status reinforcement

Problems

Established Grey Goose

Low brand awareness

Limited existing market

Uninformed consumer

Brand distribution

Mitigation Tactics

Build brand awareness

Educate consumer

Increase contact & distribution points

Marketing Objectives

Tactical Objective

ESTABLISH BELVEDERE AS:

“THE TRUE LUXURY VODKA”

Sales/Depletions targets: 10,000 cases

Retail pricing Min price parity with Grey Goose

Distribution account sold Double distribution

Innovation Launch Belvedere IX

Brand Vision

Strategic Objectives

Increase Distribution and Stimulate purchase in Off and On Trade

Ensure visibility and luxury positioning in Trendy Nightclubs

Marketing Strategy

Growth Strategy - Market Penetration

Luxury image through events and on-site brandingSuccessful

RESONANCE

SALIENCE

JUDGEMENTS FEELINGS

IMAGERY Authenticly Polish600 year handcrafted tradition100% Danskowskie gold rye4X distilled Distinctive taste

SuccessStatus

SuccessStatus

Quality SuperiorTimeless Luxury

Uncompromisable quality AuthenticityWorld’s first luxury vodka

FashionMusicArts & cultureEntertainment & Creative

Performance

Marketing Tactic 1: Create a Luxury Reborn brief

GOAL(s) Grow brand awareness, visibility and positioning by penetrating existing target market

OBJECTIVE(s)

STRATEGIES

TIMING •December

COVERAGE CT & Gauteng

Build Belvedere’s unique luxury image and personality

Entrants in photography, painting/drawing, graphic design & film

Target professionals as well as students

Partner with Lomo Camera’s & One Small Seed for exposure and prizes

Sponsorship of Chairman’s Party/ create new Premium event

Target senior advertising people and their nominated Clients

GOAL(s) Grow brand awareness, visibility and positioning by penetrating existing target market

OBJECTIVE(s)

STRATEGIES

Brand visibility

Establish associations with trendy up market and affluent events which support brand image

Refine fashion promotional activities – sponsoring of parties, fashion week showcase

Carefully associate with luxury brands e.g. Lexus

TIMING December

COVERAGE CT & Gauteng

Marketing Tactic 2: Visibility & Service Items

Stimulate purchase in off- and on-trade

GOAL(s) Introduce more drinkers into super premium vodka

OBJECTIVE(s)

STRATEGIES

Develop luxury brand activations in stylish, trendy entertainment venues geared towards the professional, gay, fashion and music target market

Expand within existing markets by employing strategic luxury visuals and experiences

TIMING December

COVERAGE CT & Gauteng

Stimulate purchase in off- and on-trade

Marketing Tactic 2: Visibility & Service Items

GOAL(s) Grow brand awareness, visibility and positioning by penetrating existing target market

OBJECTIVE(s)

STRATEGIES

Brand visibility

Establish associations with trendy up market and affluent events which support brand image

Refine fashion promotional activities – sponsoring of parties, fashion week showcase

Carefully associate with luxury brands e.g. Lexus

TIMING December

COVERAGE CT & Gauteng

Increase distribution

Marketing Tactic2: Visibility & Service Items

GOAL(s) Grow brand awareness, visibility and positioning by penetrating existing target market

OBJECTIVE(s)

STRATEGIES

TIMING Nov, Dec, Jan, FebTIMING

COVERAGE CT & Gauteng

Stimulate purchase in off- and on-trade

Host Unique Belvedere parties at key On Trade outlets

Belvedere Beautiful NightBelvedere 69 Models Belvedere White PartyBelvedere Down Town

Venues

WC : Chavelle, Karma Lounge, CaveauGauteng: Moloko, Taboo

Marketing Tactic 2: Visibility & Service Items

GOAL(s) Introduce more drinkers into super premium vodka

OBJECTIVE(s)

STRATEGIES

TIMING September

COVERAGE CT & Gauteng

Stimulate purchase in off- and on-trade

Ice Tower ActivationInvestigate ways to replicate in a cheaper way

Visibility and Service itemsRoll out glassware, dummy bottles, flashing ice cubes,

glorifiers and stands at key outletsExpand cocktail menu drive

Larger formatsIntroduce 1l format to Tier 1 outletsBring in 3l and 6l bottles at Belvedere events where free

stock is supplied

Marketing Tactic 2: Visibility & Service Items

Marketing Promotion

Establish associations with trendy up-market and affluent events

Refine promotion of Cape Town Fashion Week by getting a local fashion icon or by showcasing local events.

Collaborating/host/sponsor with superior model and event companies

Carefully promote collaborative events with luxury vehicle manufacturers

Fully exploit the dance and club scene

Intensify Belvedere Cocktail menu drive

Host events at the newly opened Pepper Club

PRODUCT

Penetrate Danceclubs , Bars, Retail, Wholesalers, Restuarants and Hotels

DISTRIBUTION

Luxury Reborn Brief Visibility & Service Items

PROMOTION

Belvedere 1X

PR/CRM

PRICING

Belvedere PureBelvedere Range: 375ml, 750ml, 1l, 3l

Belvedere Pure 750ml: R259Belvedere 1l: R299 Belvedere 3l: R750

Marketing Tactics

Competitors – what are they going to do?

Planet club, Hemisphere -pictures

What is BELVEDERE about?

Live with Beauty, lie with Taste.

Luxury. Taste. Class