OLE SMOKY TENNESSEE MOONSHINE Jessica Brightman | John Colatosti - - PowerPoint PPT Presentation

OLE SMOKY TENNESSEE

MOONSHINE

Jessica Brightman | John Colatosti Katharine Forte | Katherine Rote

COM OMPANY OV OVERVIEW

• Local family business
• Gatlinburg, Tennessee
• Perfecting recipe for 200 years
• Tennessee state law recently

changed to allow the distillation of spirits

WHAT IS MOON OONSHINE?

• Alcohol derived from corn
• Clear liquid with very high alcohol content

CHERRY MOONSHINE

Each mason jar is hand-filled with fresh maraschino cherries

soaked in Ole Smoky’s 100 proof moonshine

Typical American Consumption: Eat the cherries separately

and enjoy remaining Cherry Moonshine straight up

• r create the ultimate Cherry Coke or Shirley

Temple mixed drink

External Analysis

Key Success Factors Internal Analysis Competitive Advantage & USP Market Positioning Marketing Mix – 4Ps

SOCIAL FACTORS

BELGIUM SPAIN FRANCE NETHERLANDS

Population Growth Rate 0.071% 0.574% 0.500% 0.371% Age Distribution: 0-14 Years 15.90% 15.10% 18.50% 17.00% 15-64 Years 66.10% 67.70% 64.70% 67.40% 65+ Years 18.00% 17.10% 16.80% 15.60%

Alcohol Consumption Trends:

• Apertif & Digestif
• Spirit Consumption Comprises 32% of

All Alcohol Consumption in the Country Traveling Trends:

• 67% of Travel is to Member States

LEGAL FACTORS

‘Spirit drink’ means an alcoholic beverage: (a) intended for human consumption; (b) possessing particular organoleptic qualities; (c) having a minimum alcoholic strength of 15 % vol.; (d) having been produced either directly or or by the mixture

• f a spirit drink with one or more: other spirit drinks, and/or;

ethyl alcohol of agricultural origin or distillates; of agricultural

• rigin, and/or; other alcoholic beverages, and/or; drinks.

LEGAL FACTORS: Grain Spirit

• (a) Grain spirit is a spirit drink produced exclusively by the distillation of a

fermented mash of whole grain cereals and having organoleptic characteristics derived from the raw materials used.

• (b) With the exception of ‘Korn’, the minimum alcoholic strength by volume of

grain spirit shall be 35 %.

• (c) No addition of alcohol as defined in Annex I(5), diluted or not, shall

take place.

• (d) Grain spirit shall not be flavored.
• (e) Grain spirit may only contain added caramel as a means to adapt color.
• (f) For a grain spirit to bear the sales denomination ‘grain brandy’, it must

have been obtained by distillation at less than 95 % vol. from a fermented mash of whole grain cereals, presenting organoleptic features deriving from the raw materials used.

ECONOMIC FACTORS

BELGIUM SPAIN FRANCE NETHERLANDS

Gross Domestic Product Per Capita

$48,110 $33,298 $44,401 $51,410

Income Per Capita

$36,274 $27,469 $34,092 $40,777

Income Percentage Attributed to Upper 10%

28.40% 26.60% 24.80% 22.90%

Personal Disposable Income Per Capita

$21,906 $18,907 $22,744 $21,331

Unemployment Rate

7.70% 21.70% 9.10% 5.20%

Inflation Rate

3.10% 2.00% 2.00% 2.30%

Exchange Rate (US Dollars per Euro)

$1.2677 $1.2677 $1.2677 $1.2677 (Source: https://www.cia.gov/library/publications/the-world-factbook/geos/fr.html)

POLITICAL FACTORS

Taxes & Customs

• Value Added Tax
• Import Duty
• Excise Tax
• Economic Operator and

Registration Identification Number

• Electronic Filing of a

Single Administrative Document Advertising Regulations

• Prohibited Television &

Billboard Advertisement

• Ban on Sporting Event

Sponsorship

• Restricted Content for

Radio and Print Ads

TECHNOLOGICAL FACTORS

QR Codes

• 15% Smartphone Users

in France Scanned a QR Code in 2011

• 34% of those Scanned

Were from Product Packaging

E-Commerce & Internet

• 90% of Smartphone

Users Visited a Website from their Phone in 2011

• In 2011, 30.7 Million

French Internet Users Purchased a Product or Service Online

TECHNOLOGICAL FACTORS

Cont’d

Automated Manufacturing in the Spirits Industry

Safety and Quality Control Faster Production and Distribution Accurate Calculations (Bottle Quantity and Volume Per Bottle) Can Handle New, Fragile Bottle Design

External Analysis

Key Success Factors

Internal Analysis Competitive Advantage & USP Market Positioning Marketing Mix – 4Ps

KEY SUCCESS FACTORS

Company Product Brand/Image Financial

Multilingual Website Cost Globally Recognized Increasing Sales Strong Relationships with Distributors and Suppliers Luxury, Quality Item High Consumer Knowledge Budgeting High Customer Service Strong Alcohol Content Effective Product Promotion Strong E-Commerce On-Time Delivery Attractive Bottle Design Improving Competitive Advantage Research & Development Guaranteed Supply of Raw Materials

External Analysis Key Success Factors

Internal Analysis

Competitive Advantage & USP Market Positioning Marketing Mix – 4Ps

IMPORTANCE PERFORMANCE MATRIX

High Importance - Low Level of Brand Recognition

• Perfecting Recipe for 200

Years

• Higher Alcohol Content than

Competitors

• Dedicated to Customer

Relationships Low Importance

• Limited Resources
• Strong Website Design
• Close Relationships with

Suppliers and Distributors

• High Quality Ingredients
• Strong Values (Family Based)

Weak Performance Strong Performance

KSF

External Analysis Key Success Factors Internal Analysis

Competitive Advantages & USP

Market Positioning Marketing Mix – 4Ps

COMPETITIVE ADVANTAGES & USP

Unique Product Offering: High Alcohol Content

Beverage Containing Whole Cherries

Package Design and Utility Add Mystique and

Functionality to the Product with a Unique On-Shelf Advantage

Proprietary Distribution Agreement Eliminates

Competition and Provides Outlet for Trial Distribution

High-End Pricing Position Allows for High Investment in

Digital Programs and Further Development of Launch Strategy

External Analysis Key Success Factors Internal Analysis Competitive Advantage & USP

Market Positioning

Marketing Mix – 4Ps

MARKET POSITIONING

WHO: Affluent, educated men; ages range from 35 to

55+; higher disposable income; frequent traveller; business executive

WHAT: After dinner drink, to be consumed in small

quantities; slowly sipped on; replacement for Cognac and other digestifs

WHY: Higher alcohol content than competitors; eye-

catching cherry red color and cherry fruit

External Analysis Key Success Factors Internal Analysis Competitive Advantage & USP Market Positioning

Marketing Mix ‒ 4Ps

THE FOUR Ps: PRODUCT

High-End Luxury Spirit 50% Alcohol by Volume Redesigned Bottle

100 cL 3 cL

THE FOUR Ps: PLACEMENT

• Selective Distribution
• Air France|KLM In-Flight

First/Business Class Beverage

• Air France|KLM CDG

Airport First Class Lounge

• CDG Airport Duty Free

Shops

• E-Commerce
• Modified European

Website

• Shipping from U.S.

Distribution

1 2 3

THE FOUR Ps: PRICE

PREMIUM PRICING STRATEGY

THE FOUR Ps: PROMOTION

• Sales Relationship

with Air France| KLM

• Duty Free Stores at

CDG Airport

• Launch New

European Website

• Social Media

Presence

• SEO
• Press Releases
• Pitch Feature Story to

Air France Magazine

• European Media Kit
• Create Regional

Media List

• Air France Magazine
• CDG Airport –

JCDecaux Business First Network

Advertising

Public Relations Sales Promotion Internet Promotion

FUTURE RECOMMENDATIONS

Multi-Year Partnership with Global Spirit Distributor In-Depth Branding Research Expansion into Other European Markets Integration of Other Ole Smoky Tennessee Products

QUESTIONS