mrktin plan plan submission

8/7/2019 Mrktin Plan Plan Submission

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Cheers! Cheers! Cheers!



Cheers! Cheers! Cheers!Cheers! Cheers! Cheers!














MARKETING PLAN

Cheers!! vodka

[Pick the date]

PURNIMA YADAV


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EXECUTIVE SUMMARY

This report is a marketing plan for Kyndal Indias new flavoured vodka Cheers. The reportprovides guidelines for Cheers promotional strategy for a period of one year 2009-2010.

The objectives of the promotional plan are to achieve growth for the Kyndal India brand by

tapping into a new product and market, to increase market share and build awareness and

preference for the Kyndal India brand in the affordable ready-to-drink (RTD)segment.

Cheers is a vodka-based pre-mixer, consisting of vodka, fresh juices and liqueur. Cheers will

be positioned as an affordable, mass-marketed pre-mixer with a lower alcohol and sugar content

to communicate the product as a diet alternative.

The target market is young-adults, aged 18-27, particularly females (the primary market) and

males (the secondary market). Females form the primary target market as the traditional

consumers of RTD beverages; but Cheers will be positioned for both sexes to create an edgier

image. Cheers will be positioned as the diet drink for the price-conscious consumer, appealing

to consumers seeking a healthy alternative. The main message of the advertisement will be:

Less sugar, reflected in the slogan: Lighten up with 25% less sugar.

The campaign will use an integrated promotional approach, enlisting a range of media vehicles

to support the campaigns central theme. Mass-media, as well as direct-marketing will be used for

maximum exposure and penetration of the market. The campaign budget will be $3 million for

the launch and maintenance of Cheers and the Kyndal India brand. The campaign will primarily

involve: sales promotion, support media, print media and the internet. Additionally, to abide by

the legal policies advertising will be done by surrogate advertising.

To date, the RTD market is highly saturated with many competitors. In order to penetrate the

market Cheers will need to successfully differentiate itself and build awareness of the product in

the market.


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CONTENTS

Executive Summary

- Presents a quick overview of the plan for quick management review

Current Marketing situation

- Introduction to India & Indian Economy

*Demographics

*Psychographics

- Indian Alcohol Industry

*Alcohol Industry birds eye view

*White Spirits

*Vodka as a category

SWOT Analysis

- Identifies the main strengths and weaknesses and the main opportunities

and threats facing the product

Objectives and Issues

- Defines companys objectives in the area of sales, market share and

profits, and the issues that will affect these objectives

Marketing Strategy

- Presents the broad marketing approach that will be used to achieve the

plans objectives.

Action programmes

- Specifies what will be done, who will do it, when will it be done and

what will it cost

Strategic Marketing Budget

- A projected profit and loss statement that forecasts the expected

financial outcomes from the plan


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INTRODUCTION TO INDIA & ITS ECONOMY

India boasts of a national population in excess of 1.13 billion, 2nd most

populous country after neighbor China With 29 States & 6 Union Territories, India is also the worlds largest

democracy

There are 7 major religions, 14 nationally spoken languages & 500+ dialects

India is the worlds 12th largest economy in terms of market exchange rate &

4th largest in terms of purchasing power

It also enjoys the distinction of being the 2nd fastest growing economy in the

world

The GDP composition, which till about a decade ago was highly dependent on

Agriculture, has now tilted considerably towards services

Agriculture 20%, Industry 28%, Services 52%

Sharply rising incomes leading to increasing urbanization and dramatic shift in

the income distribution statistics.


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Indias high population (2nd highest in the world today) implies that even a slight

change in proportion results in a significant increase in terms of absolute numbers


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Growth of the Luxury Segment

Some other important indicators of growth are:

No. of Retail Malls has grown from 20 in 2004 to 358 in 2006 & expected to

cross 600 by 2009

Further to this, many International retail chains which have estimated the retail

market at overUS$ 300 billion have started entering the Indian market. These

include Wal-Mart, Tescos, Carrefour, Marks & Spencers, Metro & others and

domestic giants like Reliance, Spencers, Birlas

Sale of Luxury cars have being seeing a growth and players like Mercedes,BMW, Porsche, Audi, Bentley, and Rolls Royce are already here


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INDIAN ALCOHOL INDUSTRY

Indian Liquor Industry with estimated market value of INR 340 billion is growing at 12-15%

over the last two years. The industry is estimated to have sold 115 million cases of IMFL last

year. The sector is expected to maintain its CAGR of ~15% while the premium segment Wine

and Vodka is expected to grow at a higher rate. With consolidation and foreign acquisitions

gaining steam the sector is about to witness next phase with realization rising in line with that of

their foreign counterparts.

There are 325 distilleries in India, with an installed capacity of about 3.58 billion litres of liquor.

However, production rate is about 40% of total licensed capacity as total requirement of liquorstandsat 1.3 billion liters.

Major National Players: United spirits with about 60 % of market share in IMFL is the

undisputed leader. Radico Khaitan who entered the IMFL space some 8 years back has already

cornered 12% market share and gaining. Other players include Mohan Meakin (9%), Jagatjit

(8.5%),etc.

Internationalplayers: The major international players are Pernod Richard, Remy Cointreau,and Diageo (Diageo has tied up with Radico for entering Indian markets in brown spirits)

InvestmentRationale: Inherent Potential, Deregulation, western cultural influence and highentry barriers has helped the industry in notching up higher sales growth. Alcohol sale is driven

by the high GDP growth and more people entering the drinking club with newly obtained

prosperity or from up trading from the existing brand.

InherentPotential: Since liberalization, the economy has been growing at steady pace with percapita income rising from INR 23,222 in 2005 to INR 6,012 in 1991.

Shift from country liquor to IMFL is expected with rising per capita income and limiting the sale

of country liquor by states due to hygiene factor.


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INDIAN ALCOHOL INDUSTRY

All figures are in 000s - 9litres cases

Total spirits market is estimated at 146 million cases in 2007-08

SEGMENT WISE GROWTH

15000

5000

25000

45000

65000

85000

05000

25000

45000

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

RTD

Flavoured Rum

Dark /GoldRum

White Rum

Cognac

Scotch

Tequila

Liqueurs

Whisky

Vodka

Brandy

Gin/Genever

0

5

10

15

20

25

30

35

40

45

50

Whiskey Vodka Gin Brandy Rum Liquers /

FlavouredSpirits

RTD Total Spirits

2006-07

2007-08


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PREMIUM VODKA DISTRIBUTION

RELEVANT UNIVERSE

CITY On Premise Off Premise

DELHI 217 60

MUMBAI 274 625

BANGLORE 138 332

TOTAL 629 1017

PARTICULAR BRAND WISE DATA ABOUT DISTRIBUTION

After studying the above data it is easy to understand that which brands have what position in the

market and how can we establish our product Cheers in the market. It will also help in choosing

the best marketing strategy after considering the position of the competitors in the market. In the

above table On Premises means in clubs, bars and pubs and Off Premises means retail outlets.


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SWOT ANALYSIS

STRENGTHS

Cheers Vodka has less calories as

compared to the other products in

the market.

It offers a product different from

any other vodka in the market. The

unique flavours that are extremely

well known to people of all ages

will help to sell the product.

We also offer the vodka at a price

that will make it sell more readily

over its competitors.

Stable and prosperous parent

company

WEAKNESSES

The state of the economy is a

weakness that will have to remedy

itself.

There are a lot of vodka products

on the market to compete with as

well.

Does not have much international

presence.

OPPURTUNITIES

Getting celebrity endorsements may

come easier and we can also make

our presence known in the high end

nightclubs that exist.

Opportunities for cheap promotion

are abundant as we can set uppromotional events in night clubs

and ultra lounges and offer the

venue deals to distribute the

product.

Popular among urban female

consumers, but needs to create more

awareness.

THREATS

The sheer volume of other

competitors that exist in India is so

large that it will be hard to set the

product apart.

Government has imposed

restrictions which has reduced

brand visibility to a large.


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OBJECTIVES AND ISSUES

Marketing Objective:Cheers Vodka is an aggressive competitor in a market where there is a

lot of rivalry. It is one of the fastest growing companies in a very crowded market place. Its main

objective is to connect Cheers with the young consumer of 21+ age and get into their mindset

as healthier option than the other competitors in the market. As this Vodka comes in several

flavors but still this has 25% less calories than other products available in the market, only 110

calories in a bottle wherein the competitors on an average have at least 170 calories per bottle.

Communication Objective: Building brand awareness will be the one of our company's

top goals. Cheers Vodka will raise brand awareness of men and women over age 21 by

50% in India by one year. Our communication objectives will be achieved through

surrogate advertising that will be fully discussed in subsequent sections.

Communication Strategy : Communication through, posters in the shop, through a micro site in

Kyndal website where consumer could leave messages and the best message gets a gift from

Cheers Vodka. The gift would be a recipe in shape of a bottle along with that the promotion

details would be mentioned.

Overall Strategic Goal : To establish a truly differentiated brand positioning which resonates

with consumers.

Consumer Goals : Increase frequency of consumption amongst existing users and recruit new

consumers 25-45 years old Premium Spirit Drinker.


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MARKETING STRATEGY

DISTRIBUTION STRATEGY

Deliver 12,500 cases in select On and Off premise in key cities Delhi, Mumbai, Punjab,

Chandigarh, Goa and Bangalore; 17.5% of total vodka brands.

Creation of strong consumer pull and brand image.

Establish & Scavenge in the key markets through BTL activities.

Target Hotel and Restaurant Chains


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VOLUME : All India

VOLUME: All India

Location Volume

Tier 1

Delhi 3000

Maharashtra 3000

Punjab 450

Bangalore 750

Chandigarh 300

Total 7500

Tier 2

Goa 1000

West Bengal 750

Chattisgarh 500

Madhya Pradesh 600

Tamil Nadu 650

Kerela 500

Uttar Pradesh 400Rajasthan 600

Total 5000

Grand Total 12500

This is the distribution pattern that would be followed by the company. It would ensure that

the product is reaching the market in the right proportion and the tier 1 cities have been

60%

40%


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focused more than tier 2 cities to check the response of the active target market which is

mostly available tier 1 cities in the case of our product.

PRE BUZZ OF THE LAUNCH:Pre Launch PR Coverage

The pre-event media strategy will focus on the following:

Create awareness & buzz about the event in the target audiences (Announce the

event through special party blogs WannaBuzz.com, Party-portals.com and through

Face book and Orkut along with feature stories in key lifestyle magazines).

Event listing in key Corporate & Feature media like Mint, Business Standard,

Vogue, F&NL etc. 2-3 interactions with representative of Kyndal/Cheers on the event and the

rationale behind the same.

Suggested time frame 2 weeks prior to the event.

POST EVENT:

The post event media strategy would focus on creating more awareness about

launch of the brand all over India, the Unique Signature cocktails made from Cheers.

Hence besides the follow-up on the event coverage with magazine, would target features of

Cheers on television by the method of surrogate advertisements.

P R TRADE:

Target Media- Spirit, Hospitality BIZ, Hotels, etc (Trade Publications)

Talk Points:

1. Cheers range

2. Trend of drinking Vodka

3. History of Kyndal India

4. Making of Cheers

5. Unique Cocktails made out of Cheers

PR CORPORATE :

Target Economic Times and Corporate Dossiers, Business Standard, Mint

Talk Points:


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1. Cheers as a brand, its Business, its distribution, sales and marketing of

alcoholic content, the growth in few Years.

2. Tie up with Kyndal India for exclusive distribution for India and Sub

Continent.

3. Market Expansion of Cheers brand in India.

4. Key Marketing initiatives Cheers of in India and Sub Continent.

ACTION PROGRAMMES

COST OF THE LAUNCH

Promotion Activities-

Spray the Flavor of Happiness- Cheers

Objective - Create Cheers flavors as the main ingredient for consumption

Mechanics - Create small sprays which has different flavors of Cheers; when the

consumer enters the bar the consumer is sprayed with a flavor in their mouth by a promoter

girl. One who likes the flavor, they would purchase the Flavor either straight or through

cocktails.

Communication - Promote through Event listing, Blogs, Kyndal website feature

stories on the concept in key newspapers and magazines, tent cards Standees, e-mailers to

consumers from the database of the outlet as well as Kyndal India.

No of Outlets - 4 in Delhi, 4 in Mumbai, 4 in Bangalore, 3 in Chandigarh and 2 in

Punjab.

Time Period - 4 days in a month for 2 months

COST

CHEERS SPRAY THE FLAVOR

Particulars INR USDCost of Spray Bottles 2720 55

Stands 25500 517

Tent Cards 27200 552Promoter Girls/ Boys 136000 2759


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Alcohol Cheers 68000 1379

Travel Cost- Marketing 30000 609

Stay Cost- Marketing 30000 609

Entertainment Cost for Media 5000 101

Miscellaneous 5000 101

Total 329420 6682

Cheers Match the fun

Objective Connect to the target market with innovative and fun way and use it as

a brand connect.

Mechanics Promoter girls / boys dressed up in colorful dresses to approach

consumers and play a simple game where the consumers are asked questions on SEVENways of having fun, the best arrogant answer which matches the brand personality gets a

frozen shot of Cheers.

Those who play but do not win get an offer buy two 30 ml pegs of Cheers

and get a 30 ml shot free.

Communication Through Tent Cards, Stands, Bill leaflets, e-mailers, website of

Kyndal and PR listing and feature stories.

Venue 4 Delhi, 4 Mumbai, 4 Bangalore, 2 Chandigarh & 2 Punjab.

Time Period - 8 days in a month for 1 month.

COST

CHEERS MATCH THE FUN

Particulars INR USDPromoter Girls/ Boys 128000 2596

Tent Cards 25600 519

Stands 24000 487

Frozen Shots 64000 1298Discounted Cheers 128000 2596

Alcohol - Cheers 68000 1379

Total 437600 8876

Merchandizing Strategy

Create visibility in both on and off premises, through High End Electro luminescent

display to create a differentiator.


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All key outlets in Delhi, Mumbai, Bangalore, Chandigarh and Punjab will have the

merchandize placed. Kyndal India would get into a contract with the outlet to execute the

same.

COST

MERCHANDISING

Particulars INR USDELD Posters 280000 5680

Rentals 2100000 42596

Fabrications 42000 852

Total 2422000 49128

Bartending Session Cheers

Activity Specifications - Cheers Bartending Session

Goal(consumer) - To connect to the consumers and educate them about Cheers

Vodka and its flavors.

Communication - Posters in On Premise to provide information regarding session

Target group - age group: 21+

Activity - Invite the Cheers brand ambassador and conduct a session in two key

cities of India for consumers.

Activity Rationale - To connect to the consumers and increase home consumption

of Cheers.

Mechanism - Invite 50 consumers from the database for a tasting session in a new

style select on premise outlet. The brand ambassador would take them through the strength

of Cheers and brand culture which has contributed to the unique success of Cheers.

2nd part - Practical part-Make number of drinks which are easy to make at home ,

talk about trends and show some bartender tricks with drinks.

Communication - website, e-mailers, Cheers recipe book mark (which is in a

shape of a bottle and has few recipes of Cheers Vodka would be given as a token gift to

consumers.

Cities - 1 in Bangalore and 1 in Punjab.

Time Period - Twice in a year.


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COST

BARTENDING SESSION

Particulars INR USDBartenders Travel Cost 160000 3245

Bartenders Stay 40000 811Alcohol Taste 20000 406

Collateral Cost 20000 406

Venue 50000 1014

Snacks 25000 507

Marketing Travel And Stay 30000 609

Miscellaneous 10000 203

Total 355000 7201

Retail Promotion

Mechanics Buy a bottle of Cheers Vodka, the consumer would be entitled to participate in

winning High End Gifts.

35% of the stocks would carry gifts. There would be a lucky Draw in which gifts would

be distributed.

Surrogate Advertising

Due to stringent laws against liquor in India, it gets really difficult to promote the product and

to position in the mind of the target customer therefore surrogate advertising helps to promote

the product. So to promote Cheers the method of surrogate advertising would be used.

Cheers Mineral Water Bottles of Cheers mineral water would be identical to those

of Cheers Vodka. It would have the same logo and would be distributed free, both On andOff premises.

Cheers Merchandise T Shirts, caps, key chains with Cheers logo can be sold to

promote the product.

Cost The cost for surrogate advertising has been calculated roughly around 500000.

Merchandise


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BUDGET


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