Immix

Immix

Rachel SmethurstRodion SalakhutdinovAnselm LopesHardeep SandhuHuzefa Chini April 3rd, 2013Yuvraj Lal Project Course:

Mark 1027

What’s your Mix

Immix

TABLE OF CONTENTSExecutive Summary Slide #3

Section #1: Situation Analysis Slide # 5-Environmental Scan- SWOT Analysis & Idea

Section #2: Marketing Plan of Action Slide # 8- Mission and Introduction- Implementation & Control

Appendix Slide #34

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EXECUTIVE SUMMARY

*****Rachel will do

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Company Considerations: • Company has strong financials, growth, and operations. No notable

constrictions on pursuing market opportunities

Market Opportunity and Gap:• Very strong industry growth • Have not adequately marketed to Millennial generation who

maintain a large demand for wine products• Increased desire for novel, innovative, unique wine products

Product Outline and Competitive Advantage:• Ready-to-drink wine-liqueur mixed cocktail. Facilitates ease of

consuming wine in a younger, higher intensity social environment. Higher alcohol percentage provides higher economic value

EXECUTIVE SUMMARY CONT.

Key Year 1 Goals:• $2,205,003.42 in revenue from IMMIX product • 65% availability in GTA bars/clubs

Brief Primary Target: Female. 19-30. Social. Trendy. Relatively high alcohol user (min. 1 time per week)

Major promotions & Advertising: Building relations with high occupancy bars, sponsorship of major music/art events, strong social media presence, viral marketing, & integration of web and mobile technology.

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Section #1:Situation Analysis

Company and Brand Category

Company: Andrew Peller LimitedBrand Group: Round Petal Wines

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Strengths Weaknesses

• Brand group has stable multi-distributor relations. New product will be able to utilize those relations

• High degree of success with all individual brands within the brand group. Success with Skinny Grape, a narrowly targeted market (calorie conscious females)

• Stable finances and operational capacity provides the foundation to capitalize on consumer trends

• Locational competitive advantage of wineries and vineyards

• Crush brand, the most recent product to be launched, had the highest sales for a product through those channels

• Smaller amount of resources in comparison to direct competitor, Constellation Brand.

• Low degree of social and mobile media. Lack of presence can result in a discounted image by consumers who view social networks as a primary medium

• Do not have as diverse of a selection of product formats, sizes, and ready-to-drink mixed varieties as Constellation Brands

• Small number of fun, innovative wines. • Round Petal brand group is relatively new in

comparison to other established brands in the company portfolio

SWOT ANALYSISImmix

Opportunities Threats

• Substantial, steady market growth provides the opportunity to introduce a new product without taking market share away from established brands

• Consumer alcohol preferences switching towards wine

• Demand for higher quality wine can charge higher prices

• Untapped Millennial generation. Establishing brand loyalty at this age can help to attract consumers with a high lifetime value.

• Increased demand for fun, innovative wines• Increasing integration of social media

networking allows company to target non-traditional demographics

• Government changes in regulation can have an adverse impact on revenue and product offering. Must keep on top of policies and restrictions

• High degree of imports & foreign government subsidies flood the lower priced value varieties. Must find source of competitive

• Consumers have a high reliance on social and mobile technology. The lack of utilization of these mediums can be

• Wine is not optimally consumed in higher intensity nightlife establishments such as bars and clubs

• Younger generation feels as if they are not being marketed to.

SWOT ANALYSISImmix

Section #2:Marketing Plan of Action

for IMMIXSept 2013 – April 2014

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MISSION & INTRODUCTION

Socialize a young generation with a fun and joyful atmosphere; bring a clean and fresh taste of fruits with the sparkling wine attitude to their night life. And give them what they want.

Immix is a mixed wine cocktail that allows young alcohol consumers to enjoy wine in a social, casual atmosphere. Convenient, easy to hold packaging in combination with a higher alcohol percentage than typical wine coolers, increased the ease in which cosumers can consume wine in a faster paced social environment

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FISCAL YEAR 1 OBJECTIVESLaunch IMMIX into the alcohol market on October 1st, 2013

1. $2,205,003.42 of revenue generated through sales this product in Fiscal Year 1.

2. To drive target market awareness of IMMIX determined by having the product be available in 65% of GTA bars/clubs by end of Fiscal 2013.

Micro-Objectives: - Provide sponsorship of Toronto Fashion Week in March 2014- Launch all 4 varieties of IMMIX-Increase social and mobile media, evaluated by Twitter and Facebook followers. Target of 1,500 followers in each medium

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TARGET MARKETKey Demographics:

- Female. 19-30. College/University educated. Employed in various occupations. Middle - Upper class. Single.

Key Behavioral/Psychographic Traits: - Social life and alcohol are synonymous. Frequent bars/clubs/big events as social venues of preference. - Alcohol is an affordable luxury but economic value is key factor. - Balanced lifestyle- Up to date on trends and popular brands. Will seriously consider purchasing a product based on peer group preferences

* Sample Consumer Profile Available in the Appendix What’s your Mix?

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В2B• Bars

• Restaurants• Night Clubs

B2C• Our Target or Primary

Audience

Secondary Target Market (Demand Audience )

Primary Audience• 19-30• Female• High degree of

social activity• Socialize in clubs

and bars

Mass/Indirect Audience

Instrument audience• Social network active

users

TARGET CONT.Immix

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PRODUCT POSITIONING

IMMIX is a higher-alcohol content wine-liqueur cocktail that provides the young, social alcohol

user to enjoy wine in a higher intensity, fast-paced social atmosphere.

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PRODUCT STRATEGYProduct description: - 50% sparkling wine, 25% flavored liqueur, 25% water. - Wine contracted through established APL vineyards; Liqueurs

through division of that handles APL non-wine production- Alcohol percentage value is 11%. A lower percentage alcohol

percentage for sparkling wine (12%) will be used to balance out the higher percentage liqueur (20%)

- Four varietals dependant on liqueur type. (Peach, Lychee, Black Currant, and Cherry.)

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Key Benefits:- Wine based alcoholic cooler- Convenient, easy to handle packaging- ¼ liqueur. Higher alcohol percentage provides economic value for consumers- Modern/trendy bottle design

PRODUCT STRATEGY CONT.

Competitive Advantage: Providing alcohol drinkers who have a preference for wine, to consume a wine based beverage in a higher intensity, social atmosphere while maintaining a higher alcohol percentage than other ready-to-drink coolers.

Packaging: - 4 pack (341ml standard cans)- Sleek, narrow can design to increase ease of handling- Lighter feel for females- Modern, ambiguous look

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PRODUCT DESIGN ILLUSTRATIONImmix

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CONCEPT

PRODUCT STRATEGY CONT.

Brand Name – IMMIX [EM-MI:X]Rationale: - Wanted trendy, easy to remember moniker. Avoid

using generic varietal based name. - IMMIX is a synonym for blended or mixed- Opportunity to link with certain types of music

that are mixed by artists - With slogan ‘what’s your mix?’ believe it would

catch on quickly with younger generation

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PRICING STRATEGY• Retail price is $12.40. Approximately $1.40 above

average price for ready-to-drink coolers• Currently “APL” and the brand “Roundpetal” do

not have an equivalent product We will set the price for our product at the range between wine and coolers, that will help to define our product into new category “wine coolers”.

• 95% of coolers are consist or hard alcoholic beverages such as vodka, rum, gin and whiskey. However our product will be relatively new for the market, because it is made with sparkling wine and liquors.

• Higher alcohol percentage than other coolers– Average is 5%– IMMIX is 11

$12.40

Higher %

of Alcohol

Wine-Liqueur

Mix

Modern

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Cost of production per pack 3.77+ Variable cost 50%

Price offered to distributors 7.54

Selling price before tax 12.40

+HST 13%Selling price after tax 14.42

*Appendix slide #37;38

PLACEMENT STRATEGY

- LCBO and Wine Shop are sole distributors- Licensing for bar and alcohol establishments occur

through LCBO

Year 1 Placement Goals:- 100% placement in Wine Shop retailers- 70% availability in LCBO retailers - Goal of 65% availability in GTA bars/clubs- Sponsorship of major music & arts events- Licensing revenues by high promotions and

partnerships with high occupancy bars/clubs in the GTA

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*Distribution options are limited due to the high degree of regulation in the Ontario alcohol market.

PROMOTIONS STRATEGY

B2B B2C

B2B promotion with different kinds of contests

will affect the consumption in clubs. Moreover, some of

the contest will stimulate the work of night clubs and bars.

That initiative will rise amount of selling products and bring new customers.

Different kind of events and activities that will stimulate: real time selling,

future time selling, will build an awareness around the brand

Affect

We will show key benefits through advertising:

• Convenient and easy to drink• Part liquor and high alcohol

percentage

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COMMUNICATIONS PLATFORM

Customer

Outdoor advertisement

Direct messaging

(phone)

Sponsorship

Sampling

Programs with bars and

restaurants (special offers)

Magazines

Internet banners,

website and social media

Contests B2B and B2C

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Outdoor Advertisement Will be divided into two categories:1. “Buzz” - developed to create

a rumors about the product. Will not be given any names except slogan and brand image.

2. “Informative” - developed to share a key benefits of our product, will show different varieties of bottles.

Direct text MessagingMain aspects of that platform are: 1. First part will create “Buzz”,

people will get weird text messages: “What’s your mix?” Needed to attract them to our site and networks.

2. Will be launched to inform potential customers about special offers at bars/nightclubs and inform them about future contests

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ADVERTISING

NIGHT CLUB PROMOTIONSWill discuss with high occupancy clubs/bars that are popular among 19-29 demographic about event promotions.

- Hire certain promotional companies such as Mosaic promotions for event staff

- Discounted products for the events- Can sponsor certain nights- Social media promotions- Quick way of building word of mouth

and linking product with target market’s lifestyle

Sponsorship “Toronto Fashion Week”

Our company will put a press wall on the main fashion event on Toronto – Toronto Fashion week. Our logo will be putted on the invitation cards. Also, we will provide a certain amount of alcohol beverages to “TFW After Parties”. Also we will hire a professional photographer to take pictures of famous people with our product in their hands.

ADVERTISING CONT. Immix

What’s your Mix?

SamplingWill be launched at LCBO and Wine SHOP to give a general understanding of our product and inform our potential customers about its benefits. Will be given all possible flavors of a product and hire brand representatives with our stylish brand cloth to present our product in more pleasant way. Brand representatives will serve this beverage by themselves in a certain way.

Program with BarsOur company will provide a certain amount of our alcohol beverages to sell it there with a special offer hath of price. Moreover, during that activity bartenders and waitresses have will be informed about “right” presenting of our product. All of them have to give not just a glass but a can with our beverage as well. Also, for that particular activity will be developed information lists about mixing our product with other beverages.

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ADVERTISING CONT.

MagazinesWe will put our advertising into main magazine - Vogue. This magazine more then anything match with the positioning of our product and its key audience are our potential customers. This advertising will inform the customers more about none visual benefits – lifestyle, nightlife, social aspects. However there will be photos of different flavors.

Web SiteWe will have our own website. All the billboards will have QR codes on them, when scanned they will lead to Immix’s website. The website will be an interactive one where visitors will be asked questions about their favorite music and flavors, and asking them to wait for the “Immix” to happen. This is more to create hype and buzz. And get important information about future activity.

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ADVERTISING CONT.

Internet BannersWill be developed special interactive banners. That will be playable. People can choose a drink there, open a bottle and spill it into a glass. In the beginning of our activity this banners will interact with people asking them a question: “What’s your mix?” All gathered information will be collected for future activities.

Immix will also have a Facebook and Twitter page where the audience will be engaged in contests as well as get the most “Immix” news from and updates from fashion, music and lifestyle. Live interaction will also be promoted through these mediums and importance will be placed on users comments and feedback. This platform will be advertised by every activity.

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Social Networks

ADVERTISING CONT.

“Ambassador of IMMIX ” Ambassador of Immix is competition during which contestants have to promote our product and reach the maximum amount of likes of related banner: the winner will get a free drinking Immix card, which he can use at every bar or night clubs which have a partnership with us. There will be 1 “gold” cards (winner can visit all our related events for free + get our beverage for free); 3 “silver” (can visit all sponsorship events for free)/ for 1 year only

“Toronto Fashion Week”Contest, during which contestants have to create short video clip interpreting “What’s your mix”. Post it on the Facebook and Youtube. The videos also will be posted on our Facebook and YouTube pages, where all can put a “Like” on it. The winner will be decided by users of the Facebook and YouTube, defined by numbers of “Likes”. Top 5 most viewed videos will get a free ticket for the TFW. And the main winner will get a “gold” Immix card.

B2C CONTESTSImmix

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“Bartender of IMMIX”Bartender at the partner’s bars who will offer the best mix made with our beverage will win a trip to Hawaii for two persons for two weeks in a 5 star hotel. That activity will help to find out the best mix cocktail with our product. The idea is to create a cocktail like “Red Bull-Vodka”. That will help us to be more popular in the night club area. Moreover, the best cocktail will be decided during the TFW.

“Bar of IMMIX”Bar or Night club where the amounts of selling of our product are more than in other partner bars or nightclubs. Will be reworded by 10 tickets to Hawaii into 5 star hotels. The winner will be decided by the end of fiscal year, when the annual report will be ready. Moreover, the bar/night club will be named as a “Ambassador of Immix” and will be possessed as a Immix place.

B2B CONTESTSImmix

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MARKETING PLANPromotion Format

September October November December January February March AprilPrice per 1 unit Price per activity

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Outdoor Billboard 1 side 15 10         15 10         10 10 $ 1,000.00 $ 70,000.00

Direct Mail (Text Messages) text 100000 150000 300000 200000         150000         150000 $ 30.00 $ 31,500.00

Sampling at stores 0,5 cocktail         5000 4000                 4000         5000 $ 12.40 $ 54,600.00

Joint programs with bars (0,5 price) 1 can                 1500 1500         2000                 $ 12.40 $ 41,000.00

Banners social 1000 V Buzz Reach 7'000'000 veiws (+13'125$ to a month) $ 15.00 $ 105,000.00

Sponsorship Night clubs 1 pack                         1500 1500         1000 1500 $ 12.40 $ 79,200.00

Magazine 0,5         1         1                 1         $ 50,000.00 $ 150,000.00

Sponsorship events Bil+Sampl                                                 TFW         $ 25,000.00 $ 25,000.00

Ambassador of Immix Cards                 4 events, 1 Gold card +$2235.31                         $ 5,158.40 $ 6,705.92

TFW + Immix5 Tickets + Card                                         1 card+5TFW                 $ 7,158.40 $ 8,158.40

Bartender of Immix Hawaii 1 T                         1 ticket to Hawaii +$3194.67                 $ 9,584.00 $ 9,584.00

Bar of Immix Hawaii 5T         10 Tickets to Hawaii+ $13691.43 to a month $ 9,584.00 $ 95,840.00

Total: $ 31,125.00 $ 106,483.10 $ 62,485.07 $ 137,146.40 $63,846.40 $ 71,202.83 $ 126,216.43 $ 78,083.10

$ 676,588.32 $ 676,588.32

Stage: "Creating Buzz" Q3

"Active promotion" Q4 "Gethering harvest" Q1 "Skimming" Q2 +30% safety $ 879,564.82

Quartile budget: $ 31,125.00 $ 306,114.57 $ 261,265.66 $ 78,083.10

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What’s your Mix?

INCOME STATEMENTImmix

Income Statement for Fiscal 2012 and Fiscal 2013

2013 2012

New product Sales (Note 1) $2,205,003.42

Sales (Note 2) $288,788,969.0 $276,883,000

Total Gross Sales $290,993,972.42 $276,883,000

COGS (Note 3) $183,326,202.63 $107,257,000.00

Gross Profit $107,667,769.80 $169,729,279.00

Promotional Expenses $879,564.82 -

Selling, General, & Admin. (Note 4) $78,568,372.55 $74,606,000.00

Total Expenses $79,447,937.37 $74,606,000.00

Net Income Before Tax $28,219,832.42 $32,651,000.00

Note 1: Forecasted Unit Sales * Unit Price (292441*$7.54)

Note 2: Sales Growth Expected to be similar to 2012 levels

Note 3: Estimated by company to be 63% of Sales

Note 4: Tightly controlled around 27% of sales. Additional selling costs associated with the new product will be included in Promotional expenses

MARKETING MIX

• Out door banners, that create a buzz around brand

• Outdoor ads. that inform about key benefits of our product

• Sponsoring of TFW• SMS direct marketing

• Sold in 65% of bars, night clubs and restaurants in Toronto

• Sponsor 50% of major music events

• LCBO, Wine Shop

• Competitive price• $12.40 per 4 pack• Promotional pricing in

bars and clubs is the discretion of venue management.

• “Immix”• A great tasting mix of wine

and liqueur which is convenient way of integrating win into bars, nightclubs and parties

• 4 Different flavors: black currant, cherry, peach and lychee

Product Price

PromotionPlace

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IMPLEMENTATIONBU

ZZPE

RIO

D

September October November December January February March April

Outdoor ADV to create

buzz

ADV at media

Outdoor ADV informing our clients about key benefits

ADV at media

Direct mail

AD

V a

t m

ed

ia

7000000 views. Communication with social media

Sampling at LCBO and Winerack Night Clubs Sponsorship

Program “hath of price” with the bars

“Hath of price”

Outdoor ADV informing our clients about key benefits of a product

Outdoor ADV informing our clients about key benefits of a product

Direct mail (SMS messages) Direct mail

Night Clubs Sponsorship

TFW Sponsoring

Sampling Sampling

“Bar of Immix”

Prod

uct

Laun

ch

“Ambassador of Immix”

Direct mail

TFW Contest

“Bartender of Immix”

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Our major activities are made the way when we can see and check the response on our activities. For example “Direct SMS texting” which have to inform people about our events will take part during October. At the end of November we will get the number of people who visited our events at bars and we will figure out the number of product sold there. Our main control tool will be bars and restaurants – if the sells there will go up that mean that our whole campaign is going well. Moreover, also we added a 30% safety amount to our budget to active quickly in case of unpredictable situation.

CONTROLImmix

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APPENDIX

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SAMPLE CONSUMER PROFILEImmix

Our target is females between 19 – 30 who view alcohol as an essential part of their social life. Either being single, or in a very social relationship, these women look for a alcoholic beverage that can be enjoyed in a casual multi-gender atmosphere. Having graduated with a university of college degree, maintaining stable employment is just as important as the social aspect of their life. Income level is middle class and above. They have enough income that they have the freedom to select their alcoholic beverage of choice as long as the price is reasonable. They tend to maintain an air of indifference towards money but the economic value of the product is always in the back of their mind. Trends and the popularity of products is very important. They will almost always test out a product that is trendy and hip. The same goes with their music choices, as music is also an essential part of their social life. Their social life encompasses going to the bar, pub, or night club at least once a week, typically on the weekend, in order to socialize with their friends and/or to interact with the opposite sex.

COMPETITOR PRODUCT PRICINGName Price $ Futures Key message and attributes. Photo

“Bacardi Breezer”

9.95 Available in four different flavors “orange”, “Strawberry’’, “Pineapple”, “Raspberry”. 4 Pack. Based on spirits.4% of Alcohol.

“A splash of Paradise”; made for parties, shine bottle

“Mike’s Hard Lemonade”

9.95 Available in different flavors “Blueberry”, “Lime’’, “Black berry”, “Lemon”, “Cranberry” 4 Pack. Based on spirits. 5% Alcohol.

“Always different, always refreshing”, Social aspects and lots of trendy teen promotion on the web site.

“Palm Bay” 11.95 Available in “Cherry” , “Lime”, “Mandarin”, “Orange”, “Pineapple”, “Grapefruit”, “Mango” 6 pack. Based on vodka. 5% of Alcohol

“Palm bay is taking over”, contests with traveling prize

“Segram” mixed beverages

9.95 Available in “Wild Berry”, “Orange” 4 pack. 5% of Alcohol

“Made with pure spring water”

Smirnoff Ice 9.95 Available in different packs: 4/12/24 also in flavors “Raspberry”, “Green Apple”. 5%of alcohol.

“Smirnoff mixes the world’s best cocktails”

Vex Electric 11.95 “Daiquiri”. “Strawberry”, ”Mai Tai”, “Pinacolada” 7% of Alcohol.

“V is for Vodka”

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UNIT SALES ESTIMATE FOR THE PERIOD SEPTEMBER 1 2013 - APRIL 31, 2014

Ontario Population (Note 1) 13,505,900.00 20-24 959,400.00 25-29 952,900.00

Ontario Population Between 20-29 1,912,300.00

Percentage Wine Consumers (Note 2) 45.8% 875,833.40

Percentage Female Drinkers 53.0% 464,191.70

Interest Level (Note 3) 30.0% 69,629

Awareness (Note 4) 70.0%Number of Consumers Fiscal Year 1 48740.13

Light Drinkers 4 Purchases (1 every 2 months) 97480.26Medium Drinkers 8 Purchases (1 every month) 194960.51

Conservative Unit Estimate for Fiscal Year 1 292441

Note 1: Provincial and Age Statistics gathered from Government of Ontario Fact Sheet

Note 2: Percentage Wine Consumers and Percentage Female Drinkers from PMB Study

Note 3: 30% Interest level is conservative estimate based on combined share interest in coolers, mixed drink cocktails, and sparkling wine

Note 4: Based on placement goal in LCBO retailers and licensed establishments in GTA

LCBO PRICINGImmixImmix

LCBO Pricing Mark-Up (Note 1)

Consumer Costs

Consumer Price After Tax $14.41

Container Cost .10 per bottle $0.40

H.S.T Standard tax rate $1.61 Consumer Price Before

Tax $12.40

LCBO Costs

Consumer Price Before Tax $12.40

Bottle Levy 0.28 per Litre $0.38

Environmental Fee 0.0893 per bottle $0.36

Mark-Up 54.6% $11.66

Supplier Cost $7.54

Note 1: All related pricing rates were provided from the LBCO website

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10%5%

8%

6%

16%12%22%

4%

18%

Budget share of activities

Outdoor BillboardMobile texting to trend settersSampling at storesJoint programs with bars (0,5 price)Banners socialSponsorship Night clubsMagazineSponsorship eventsContests

MARKING BUDGET BY ACTIVITY

$ 879,564.82

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Billboard Samples Immix

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• Andrew Peller Limited. 2012 Annual Report. Grimsby, ON: Andrew Peller Limited, 2012. 02 Apr. 2013. <http://www.andrewpeller.com/UserFiles/File/FINANCIALS/Andrew%20Peller%20Limited%202012%20Annual%20Report.pdf>

• LCBO. "Product List, Ready-to-drink/Coolers." Product Search. N.p., Web. 02 Apr. 2013. <http://www.lcbo.com/lcbo-ear/lcbo/product/searchResults>.

• LCBO. "Product List, Ready-to-drink/Coolers." Product Search. N.p., Web. 02 Apr. 2013. <http://www.lcbo.com/lcbo-ear/lcbo/product/searchResults>. (Pic)

• The Wine Shop. "About Us." The Wine Shop. N.p., Web. 02 Apr. 2013. <http://www.thewineshops.com/about_us.php>. (Pic)

• Vector. "Figures of Dancing Girls with Shadows." Arts & Entertainment. Stoch Photos. N.p.,Web. 02 Apr. 2013. <http://www.colourbox.com/vector/>.(Pic)

• 123RF. "Stock Photo." 123RF Stock Photos. N.p., Web. 02 Apr. 2013. <http://www.123rf.com/>. (Pic)

WORK CITEDImmix