Work Sample Assignment: construct a marketing plan for Svedka Vodka - - PowerPoint PPT Presentation

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Work Sample Assignment: construct a marketing plan for Svedka Vodka - - PowerPoint PPT Presentation

Feb 10, 2024 254 likes •470 views

Work Sample Assignment: construct a marketing plan for Svedka Vodka circa 1998, prior to product launch Highlights: Slide design, story creation/slide organization, insights, professional writing SVEDKA Vodka Team Mercedes Agenda Purpose

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Work Sample

Assignment: construct a marketing plan for Svedka Vodka circa 1998, prior to product launch

Highlights: Slide design, story creation/slide

  • rganization, insights, professional writing
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SVEDKA Vodka

Team Mercedes

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Agenda

  • Purpose
  • 3C Analysis
  • STP
  • 4Ps of Marketing
  • Executive Summary
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Purpose

Goals
  • Introduce a new mid-tier vodka option into the liquor market
  • Clearly show that Svedka is a high quality vodka at a lower price
Methods
  • Price Svedka between premium and cheap options
  • Boost brand awareness with innovative marketing tactics
  • Focus marketing appealing to younger target segment
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Agenda

  • Purpose
  • 3C Analysis
  • STP
  • 4Ps of Marketing
  • Executive Summary
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Company

  • Chic Swedish brand with unique mid-tier vodka
  • Great tasting vodka, rated 93/100 by Wine Enthusiast
  • “Blue ocean” of price point allows for ample opportunities to expand
  • “Challenger” brand that is a fun and innovative option which
represents a break from the status quo in a category that is too serious and very monolithic
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Brand Overview

  • SVEDKA Vodka is best known for
being fun, spirited and trendy, placing it most into the excitement personality
  • It pulls from competence in its
ability to be a leader in the middle market vodka category
  • Finally, being a great value vodka
with an attractive design gives it elements of sophistication EXCITEMENT SOPHISTICATION COMPETENCE
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Competition: Overview

  • Vodka has become an increasingly popular alcohol choice
  • Many high- and low-end choices have recently been introduced to the
market, leaving room for a mid-tier option for Svedka to fill
  • Grey Goose, Ketel One, Absolut, and Stolichnaya are premium priced
  • ptions; Skyy, Smirnoff, Gordon’s, and Popov are cheaper options
  • Lower cost options have more than double the market share of high
priced choices (34.6% compared to 15.3%) Based on the competition, Svedka’s position as a mid-priced option with a premium-priced taste makes it superior to all other offerings in the category.
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Competition: Perceptual Map

High Price Low Price High Quality Low Quality
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Customers

The vodka category is broad and consumers are influenced by a variety
  • f factors.
WHO DRINKS VODKA?
  • Anyone over the age of 21
  • Popular segments include:
○ Older men who have been drinking vodka their entire lives ○ New, young drinkers who are still experimenting in the market and trying new drinks WHAT DO THEY CARE ABOUT?
  • Value: price must match quality
  • Taste: bitterness is unpreferred
  • Status: brands are important
because buying specific ones say something about the consumer
  • Authenticity: the history and place
  • f production are important in this
category, people like to know it is European
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Agenda

  • Purpose
  • 3C Analysis
  • STP
  • 4Ps of Marketing
  • Executive Summary
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Segmentation and Targeting

MARKET SEGMENTATION The Regulars
  • Tend to be older males
  • Price conscious
  • Brand loyal
New Drinkers
  • 21-to-35 year-olds
  • Price conscious
  • Not brand loyal
TARGET: New Drinkers
  • High degree of fit with Svedka’s
exciting brand personality
  • This segment is attractive because
they would be willing to switch vodka brands and are typically looking to drink for fun and to have a good time
  • Svedka’s strategic objective is to
dominate the mid-market; segment is willing to stretch their dollars
  • Degree of competitiveness is
average, as the market is split between them and The Regulars
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“

Positioning Statement For all New Drinkers, Svedka is a trendy and accessible mid-tier option among all vodka choices because it offers a high-quality product at a low price with a sleek design and Swedish heritage. ”

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Agenda

  • Purpose
  • 3C Analysis
  • STP
  • 4Ps of Marketing
  • Executive Summary
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Price

MARKET INFORMATION
  • Vodka industry is split between
premium vodka choices and cheap vodkas
  • This leaves room for brands to enter
the market as a mid-tier option
  • Taste rated on par with premium
vodka choices, but will be priced lower closer to lower quality options, where the larger market share is PRICING RECOMMENDATIONS
  • Begin at $14 as a starting point to
build a the foundations of a loyal consumer base
  • Increase price gradually as sales
numbers grow and customers start to prefer Svedka
  • Set a price cap to prevent Svedka
from being associated with premium vodkas - stop price increases at $16.00/$17.00 and keep price stable
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Place

MARKET INFORMATION
  • Control states for liquor, state
government controls liquor sale
  • Wholesaler and broker relationships
are key to distribution channels
  • On-premise retailers include bars,
hotels & restaurants
  • Off-premise retailers include food
(35%) drug (20%) and liquor stores (45%) PLACE RECOMMENDATIONS
  • Focus on non-control states given
limited flexibility and opportunities in control states
  • Maintain good channel relationships,
delegate people to work with them
  • Devote sales efforts to independent
liquor stores
  • Utilize “challenger” distributors as
emphasized by Cuvelier in case
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Product

PRODUCT RECOMMENDATION MARKET INFORMATION
  • Vodka typically sold in 750mL and
1.75L bottles with 40% alcohol (80 proof) as standard
  • Premium vodka can be distinguished
from cheaper options based on smoothness
  • Vodkas are rated on a 100 point scale
by distinguished Wine Enthusiast - makes quality comparable PRODUCT RECOMMENDATIONS
  • Always produce in Sweden at
because it is a memorable location
  • Ensure product quality is consistent
  • After launch, focus on unflavored
vodka and slowly roll out flavored
  • ptions to appeal to target segment
  • Once brand reputation is cemented,
roll out colorful and festive packaging
  • ptions that match flavors, holidays,
and other trends
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Promotion (Part 1 of 2)

MARKET INFORMATION
  • Typical advertisements in print (esp.
magazines), outdoor, broadcast and electronic medias
  • Repetitive advertising strategy: bottle
shot, product benefit, cocktail recipe and historical reference
  • Place of origin is important to
reputation and perceived quality CURRENT APPROACHES
  • Investments in non-traditional
marketing opportunities including: ○ Trade press ○ Point of sale ○ Trade shows ○ Creative ○ Sampling
  • These approaches generate buzz and
keep Svedka top-of-mind with minimal ad spend
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Promotion (Part 2 of 2)

Since vodka is often an experiential or behavioral product, continue to focus on point
  • f sale.
  • Prominently display The Wine Enthusiast ranking
in stores to give the new brand credibility and provoke consumers to try it
  • Place Svedka between premium and cheaper
choices to emphasize its mid-tier status, this will also place it at eye level Strategies to appeal to New Drinkers:
  • Provide link to a site that gives fun drink
recipes and instructional mixing videos using Svedka - especially with the roll out of different flavors
  • Guerrilla marketing tactics to generate buzz
and brand awareness ○ Blind taste tests at bars, public places ○ Svedka-sponsored bar crawl ○ Svedka shot glass giveaways
  • Rather than following traditional ad
formula, center ads around exciting brand personality and young people enjoying the drink PREMIUM OFFERINGS MID-TIER SVEDKA LOW QUALITY LOW
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Agenda

  • Purpose
  • 3C Analysis
  • STP
  • 4Ps of Marketing
  • Executive Summary
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Executive Summary

  • Svedka will be introduced into the market as a mid-tier vodka option, combining high
quality with an accessible cost making this new trendy and fun brand stand out among the rest of the market
  • Target New Drinker segment given willingness to switch to a new brand and fit with
company personality
  • Once sales grow and brand name is better known, begin to expand sizes and flavors
  • ffered to continue to grow market
  • Keep ad spend down by continuing to use non-traditional marketing tactics, including
point of sale strategies and guerilla marketing
  • Where traditional advertising is used, be different. Move away from product-oriented
messaging.
  • Produce advertisements featuring people and highlighting the fun of drinking Svedka