Bacardi Summer Nights Table of Contents

Summer Nights

Integrated Marketing Communications Plan

This communications plan is to outline the promotional strategies that will propel Bacardi rum during the summer months of 2012.

Situation Analysis ...... 2 Company History ...... 2 Competitive Analysis ...... 2 Market Analysis ...... 3 Positioning...... 3 Industry Analysis ...... 3 Past Promotional Planning ...... 4 SWOT Analysis ...... 4 Marketing Objective ...... 5 Profile of Target Audience ...... 5 Demographics ...... 5 Geographic ...... 5 Behavioural ...... 5 Psychographic ...... 6 Socioeconomic ...... 6 Strategies and Tactics ...... 6 Phase 1 – Summer Nights Teaser ...... 6 Phase 2 - Bacardi Summer Nights launch ...... 7 Advertising ...... 7 Internet Marketing and Social Media ...... 10 Sales Promotion ...... 11 Public Relations ...... 12 Phase 3 - Make Every Night Bacardi Night ...... 15 Budget ...... 16 Implementation and Evaluation ...... 17 Implementation ...... 17 Evaluation ...... 17 Advertising ...... 17 Social Media ...... 17 Sales Promotion ...... 17 Public Relations ...... 18 1

Bacardi Summer Nights

Situation Analysis

Company History Founded in 1862 in Santiago de Cuba, Bacardi Limited has grown to be the largest privately held family owned spirits company in the world. Their current portfolio contains more than 200 brands and labels, the success of which is primarily based on Bacardi’s flagship brand, Bacardi Superior white rum. Facundo Bacardi Masso arrived in Cuba from Spain in 1830 at the age of 16 and quickly found a passion for developing an otherwise unrefined spirit. The original Bacardi distillery was purchased in Santiago de Cuba with his brother Jose in 1862; although the distillery has changed locations and even countries, the Bacardi legacy has stayed in the Bacardi family for seven generations, as Facundo’s great-great grandson now sits as chairman of Bacardi Limited’s board of directors. Bacardi Superior rum has played roles in several historic situations such as the Spanish American War and the Cuban Revolution. It was even named the official spirit of World War 2, as all American distilleries were appointed to producing industrial alcohol for the war effort. Bacardi Limited began making acquisitions of major brands starting in the early 1990’s and into the 2000’s. In 1993 they merged with Martini and Rossi, Italian producers of Vermouth. In 1998 they acquired Dewars Scotch and Bombay Sapphire Gin from Diageo. In 2002 they purchased Cazadores blue agave tequila and in 2004 they acquired Grey Goose vodka for 2 billion dollars, the largest sum of money paid for a single brand of spirit. Other brands associated with Bacardi Limited are; Drambuie, DiSaronno, Eristoff, B&B, and Benedictine liqueurs. Bacardi Superior Rum remains to this day the world’s foremost premium white rum and holds ownership over the creation of several internationally enjoyed cocktails such as the Mojito, the Bacardi Cocktail and the Daiquiri. In its 150 year history, Bacardi Rum has won over 400 awards for quality.

Competitive Analysis Bacardi Superior Rum currently holds dominant market share of the Premium and white rum industry, selling its rum in 150 countries. As such, Bacardi has very little competition in the rum market. Bacardi’s main competition stems from other premium spirits enjoyed in cocktails and on their own, including vodka, tequila, gin and liqueurs. Key brands may include:  Grey Goose (Bacardi lmt)  Ketel One Vodka (Diageo)  Tanquery Gin (Diageo)  Captain Morgan’s Rum (Diageo)  Bombay Sapphire (Bacardi)  Jose Quervo Tequila ( Diageo)  Smirnoff flavoured vodka ( Diageo) 2

As a benefit to Bacardi superior, Bacardi limited owns several of their own competitors. Many of their other competitors are owned and distributed by Diageo, the world’s largest spirits producer and seller. Based in Britain, Diageo’s holdings include Ketel One, Tanquery, Captain Morgan’s, Guinness, Baileys and Jose Quervo. They are by far the number one competitor to Bacardi in the market of premium and cocktail spirits. Diageo LMT sees a net income of 2.59 billion (2011) annually; in comparison, Bacardi’s annual revenue sits at 5.5 billion as of 2007.

Market Analysis Alcohol consumption and retail has gone through a drastic change in the last twenty years, moving from consumption at licensed venues (bars, clubs) toward a growing majority of stay at home drinkers. This change is the product of changing social attitudes towards regular drinking, increasing awareness of the health effects of alcohol consumption, and the increasing value placed on a healthy family life. People still drink and market trends show this. But where money was once made in high volume and mass purchasing of products, it is now being made up of fewer individual products being purchased but higher quality and price of those that are purchased. The world of casual and social drinkers are not going out three times a week anymore but are instead demanding higher quality spirits for the constantly raising price in which they pay. As the summer approaches, the desire and demand for quality cocktail spirits will have a seasonal increase where an IMC, if executed properly, may be able to efficiently garner lasting brand equity and loyalty into the colder months.

Positioning Bacardi currently positions itself as a trendy, premium cocktail spirit to men and women between 25 and 35 years old who live in metropolitan areas of the North America, South America and Europe. Rather than appealing to casual drinkers, Bacardi appeals itself to club going young adults who are brand conscious and have a large amount of discretionary income. Bacardi also positions itself with homage to its Cuban roots with references to Caribbean culture and history.

Industry Analysis Adult consumers in Canada are far more suspicious and involved with the things that they put in their body, whether it is food, beverage, medication, alcohol, cigarettes etc. They are far more aware today of the adverse health risks and social consequences of heavy drinking than they were twenty years ago. And when they do drink alcohol, they demand a quality product with a great taste and respectable reputation. Craft brewed and distilled beers and spirits are gaining vast amounts of market share in individual markets as they do not have resources to mass produce and mass distribute their micro market products.

As consumers have begun purchasing their spirits from retail outlets rather than bars and clubs, sales of premium and unique products have gone up while sales of value brands continue to diminish. This shows that Canadian consumers, although still concerned with price, are becoming increasingly more concerned with quality.

Past Promotional Planning Bacardi has, in its contemporary history, endeavoured into every aspect of promotion on national, regional and spot promotion levels. The advertising has been executed around the world in several languages. All of the following have consistently played a role in Bacardi’s marketing plans:  Television advertising  Radio advertising  Magazine, print  Electronic media,  social media (Facebook, twitter, YouTube)  Event sponsorship, spot parties (i.e., Bacardi B live tent at Pemberton Festival 2008)  Sales promotions ( point of purchase contests, gift packs, bar/club promotions  Out of home advertising  PR Campaigns (www.championsdrinkresponsibly.com Bacardi responsible drinking program)  Bacardi Cup, a world class sailing event  Unique event promotion, Bacardi 3D video mapping.

SWOT Analysis

Figure 1: SWOT Analysis STRENGTHS WEAKNESSES

• One of the world’s most recognized brands and • Inconsistency of consumer tastes/ preferences leading spirits as well as wine producers • Brand perception- perceived as generic, not • Strong brand and product portfolio/history premium • Dominant position in cocktail and premium rum • Low sales and exposure in Canada markets. • Unstable competitive position against other • Diversified distribution channels flavored rums •Strong Corporate Social Responsibility campaigns • Overly segmented target market (club going and social involvement youth) • Only associated with Rum

OPPORTUNITIES THREATS

• Non-alcoholic Bacardi Branded Beverages • Stringent governmental regulations • Favorable trends in the cocktail market based on • Global economic slowdown consumer preference • Intense competition in premium spirits category • Strategic acquisitions and partnerships • Limited Brand Loyalty • Market for premium spirits growing • Strict Advertising Regulations • Emerging markets (eg India) • Liquor market prone to fads • Popularity of other spirits (vodka, gin)

Marketing Objective The objective of the Bacardi Summer Nights campaign is to increase sales of Bacardi Superior in the Canadian Market by 20%1 over the 5 months during which the Bacardi Summer Nights campaign will take place. More specifically, this will be done by focusing on an expanded target market that consists of “patio people”, as defined below. Whereas Bacardi’s current target market is young club-goers, this campaign will aim to shift to a more affluent and mature market by marketing Bacardi as a premium spirit. The IMC Objective is to engage residents of the four urban areas targeted to purchase Bacardi Premium Spirits for consumption on their patios at home. The campaign will use advertising, social media, Public Relations and Sales Promotion to increase brand awareness and market share, and to position Bacardi Superior as the premium spirit of choice for the sophisticated urban drinker.

Profile of Target Audience Bacardi has made a name for itself as top luxury and spirit brand alcohol in the market. A key element of the Summer Nights promotional strategy is a change in the target market. While staying true to the current young, club- going market, Bacardi will expand into a newer market.

Demographics This target market will be focused on adults both men and women ages of 25 to 44 years old in the X and Y generations. This combined market accounts for 56% of the Canadian population; Generation X makes up 20% (7 million) and Generation Y makes up 35% (8.9 million) (Catalyst Inc., 2012). Also, this represents workers of prime age earning mid-level income. In addition, we will focus on all nationalities in Canada, including men or women, and regular or heavy drinkers.

Geographic Bacardi is known domestically and internationally, but the Summer Nights campaign will be focused in Canada; specifically, it will target major urban areas, focusing on Canada’s 4 largest cities: Toronto, Montreal, Calgary, and Vancouver.

Behavioural With an increase of alcohol consumption in Canada, it’s best to target people that are regular users, in order to create and maintain brand awareness and loyalty. It's been reported that 59.5% of men and 23.6% of women age groups of 25 to 44, drink more than five times on occasion and more than 12 times in a year. Also, men’s overall percentage of heavy drinking did not fall until after age 54.

1 Bacardi Ltd does not make sales information available to the public. As such, it was not possible to determine a dollar amount for this percentage growth. 5

Psychographic The psychographic profile of the target will primarily be upper-middle-class white-collar workers. These are people who own homes and like to attend social outings, but not necessarily in bars and clubs. It's been reported that out of total expenditures, tobacco products and alcoholic beverages make 2.5% of average household spending, a number which is continually increasing (Statistics Canada, 2011).

Socioeconomic Our main focus is on people within the above demographic market. These are people entering or in their prime age with at least trade level education to university level, with a minimum household income of $70 000.

Strategies and Tactics

Phase 1 – Summer Nights Teaser (3rd week of April up to mid May/3 weeks) The first phase of the Bacardi Summer Nights campaign will be the ‘Teaser’ phase. At this time, promotional activity will be focused on raising brand awareness, and on drawing interest to the Bacardi brand, with particular focus on the Summer Nights campaign. In this phase, the campaign will focus on two primary promotional strategies: advertising and social media. The advertising component will be the driving factor. There will be some preliminary television advertising in stations across Canada, in each of the 4 major urban areas, in the ‘prime time’ evening hours. These will be simple, 15- second spots, which will use a simple shot of a city at night, with the text “Bacardi Summer Nights. Soon”. The ad will then refer viewers to the Bacardi website. There will also be ‘teaser’ billboards (see fig xx), which will be placed in major traffic routed of the 4 urban centers that make up our target market. These billboards will match the visuals of the television campaign described above (fig 1.0). The goal is to get people thinking of and planning for the forthcoming summer, and looking forward to relaxing on their patios with a Bacardi premium cocktail. All of the advertisements will drive traffic to the Bacardi website. From there, Canadian web traffic will be directed towards Bacardi’s Canadian Facebook, Twitter, and YouTube, which will be entirely based on the Bacardi Summer Nights campaign. The social media component of the first phase will focus on the development of the social media platforms, including changes to the existing Bacardi Facebook, Twitter, and Youtube accounts; for each of these vehicles, an exclusive Canadian version will be developed, which will focus on the Canadian market and feature the Bacardi Summer Nights campaign. All Canadian web traffic will be directed to these sites.

Figure 2: Sample Out-of-Home advertisement, Phase 1.

Phase 2 - Bacardi Summer Nights launch (Mid-May to September) The bulk of promotional resources will be dedicated to Phase 2 of the campaign; this will be the roll out of all the major components, and of any interactive elements. As well as increasing the Advertising and Social Media portions, this stage will incorporate Sales Promotion and Public Relations

Advertising The advertising element for campaign will mostly be regionally based, focusing on the major urban areas that comprise our target market: specifically, Vancouver, Calgary, Toronto, and Montreal. There will also be national elements included, in the form of television and magazine advertising. Each of the following advertising vehicles has been selected for its coverage of the target market. The message of this campaign will focus on creating a premium image for the product. The national elements will focus mostly on the patio lifestyle theme, while the regional ads will direct consumers to social media and website. The message will encourage consumers to relax on their patio with Bacardi Premium cocktails.

Print Advertisements will be run in regional-based magazines in each of the major urban markets. All advertisements will be full-page, full-colour ads, and will run for the 5 months of the campaign (May to September, inclusive). The goal of these regional advertisements will be two-fold: firstly, to increase awareness of the Bacardi Summer Nights campaign, through lifestyle images and recipe suggestions. Secondly, these ads will drive consumers to engage with the social media element of the campaign, offering recipes and encouraging participation in regional contests, as well as promoting local events. 7

The regional publications selected are urban lifestyle magazines, with a focus on city living specific to each market.  Vancouver Magazine (May-September)  Edible Toronto (April, June, September)  Toronto Life (May-September)  Montreal Mirror (May-September)  Avenue Calgary (May-September)  Food & Drink/A Bonne Verre, Bonne Table (June, Sept) Nationally, the focus will also be on lifestyle publications. The coverage will continue to be primarily urban, but the message will be less specific. Though there will still be a call to action and encouragement to engage through social media, the draw will be centered around recipes and branding, rather than focusing on specific contests and promotional events. Some possible national publications that would be considered are:  NUVO Magazine (May, Aug)  Maclean’s (May-September)  Canadian House and Home (May –September)

Television Television advertising was selected as a vehicle because of its reach. This medium is effective for shifting the Bacardi brand image on a national scale, and establishing Bacardi Superior as a premium product. As in Phase 1, the bulk of the advertising will take place in the evenings, at prime time. As our target market mostly consists of white-collar professionals, this is the time during which they are most likely to be watching television, and would be receptive to the message of relaxing at home, with friends and a Bacardi cocktail. The campaign will focus on recreating a Bacardi Summer Nights experience at home. A sample ad would feature shots of a nightclub, Bacardi’s current focus, but slowly remove all the elements which our new target market would find undesirable. The spot would end with a Bacardi cocktail patio at home; a more adult incarnation of Bacardi’s nightclub image. The ads would vary depending on the networks. The local/regional ads would run on CityTv in Vancouver, Toronto, and Calgary. These ads would focus on more regional elements of the campaign, including promotion of local events. Nationally, ads would run on Global and CTV. These ads would be more general in nature; they would build awareness of the Bacardi Summer Nights campaign, but contain less specific calls to action, beyond directing consumers to the website and to social media. Finally, targeted ads would run in some specialty channels: the Food Network and HGTV would get ads with cocktail recipe and party hosting ideas, encouraging audiences to host their own Bacardi patio party. In Quebec, the TVA network would mostly get treated as a regional station for the Montreal area, though any ads would be broadcast nationally, and could therefore not be too location-specific; this should be considered when producing French-language ads.

Out of Home The Out of Home campaign will feature two elements. The first will be a billboard campaign, created to support the message of the other advertising vehicles. This campaign will be focused on major urban traffic routes in each of the 4 regional markets:  Vancouver  Calgary  Toronto  Montreal This campaign will feature full size billboards with lifestyle images, taken from the television and print campaigns. All billboards will refer audiences to social media, to further connect with the Bacardi Summer Nights campaign. Bacardi will also work to produce a ‘bat symbol’; a large spotlight in city centers with the Bacardi logo, which will be projected into the sky on summer nights. This element is created entirely to build buzz, and to support local Bacardi events. As there will be no direct call to action, this element will serve as a reminder, and will be featured where the target market can spot it from their patios.

Radio The focus on radio advertising will be minimal, as the target market does not have much exposure to radio. The primary goal of radio advertising will be to reinforce the television, print, and social media elements of the campaign. Radio advertising will be almost exclusively done during the drive home in major urban markets. The idea is to reach the target audience while they’re driving home from work, looking forward to a sunny evening. The advertisements will focus on Bacardi premium cocktails, including some simpler recipes, and directing the target audience to the website and social media for more recipes and patio entertaining ideas. Each of the stations selected has a wide-ranging listening audience in their region, the majority of which is in our target market. The specific formats being focused on are easy listening, pop-rock, and classic hits.  Vancouver: o CFBT-FM (The Beat) o CHQM-FM (QMFM) o CKLG-FM (Jack)  Calgary: o CIBK-FM (Virgin Radio) o CJAQ-FM (Jack) o CKCE-FM (Kool FM)  Toronto: o CHFI-FM (98.1 CHFI) o CHBM-FM (Boom) o CHUM-FM  Montreal: o CFGL-FM (Rythme FM) (French) o CKBE-FM (The Beat) o CKMF-FM (NRJ) (French) 9

Internet Marketing and Social Media According to the survey conducted by eMarketer.com in November 2011, social media ranked first in brand awareness-building and expanded reach to new audiences; and second on building customer loyalty and retention. According to www.webfuel.ca, as of 2011, half of Canadians are on social networks; that adds up to an estimated 17 million people across the country. 86% of 18-34 year-olds and 66% of 35-54 year-olds are active on social media. The use of the different social media tools, such as Facebook, Twitter and YouTube can help Bacardi Premium create and establish brand awareness in Canada and expand its reach to newer target market. The company website, Facebook, Twitter and YouTube will all be used. The purposes of using these different platforms are:  To establish that Bacardi is the rum “expert” by providing user value contents by providing tips and advices (E.g. How to Mix Cocktails, 10 Tips on How to Throw a Successful Patio Party, etc.)  To help build the brand and encourage brand loyalty in Canada by responding and interacting with customers. In order to encourage increased participation in social media, Bacardi will launch the Bacardi Summer Nights Mix Challenge, an online contest open to participants 19+ years or older. Contestants will be encouraged to submit a video of themselves, showing how they mix their Bacardi Superior Rum to make their own signature drink. With the aid of the different social media vehicles, this campaign will help increase Bacardi’s brand awareness in Canada which will be measured using website analytics. The contest will be open for submissions from June 1st to July 31st. Judges will choose the top 6 videos, and share them on Bacardi’s website by August 1st. From August 1st to 30th, the public will be able to vote for their choice, using the website, Facebook, or Twitter. Users will be encouraged to share their favourites on Facebook or Twitter, and encourage their networks to vote. In order to vote, users will have to connect to Bacardi via Facebook, Twitter, or by submitting email addresses; this will allow Bacardi to expand their Social Media and online networks. The winner will be announced on August 31st and will win a trip for 4 to Cuba from anywhere in Canada, including airfare, accommodation, and spending money (total value $5,000CAD). The contest winner will also get to name their cocktail, and have their video and recipe posted on the Bacardi website (E.g. Marlene’s Mai Tai #9, Jerome’s Summer Beach Daiquiri). The other 5 finalists will get patio set, barbecue grill and Bacardi cocktail blending set, including a blender (total value $1,000).

Website http://www1.bacardi.com will continuously be updated with the “how to mix drink” videos and recipes. To add more fun to the site, online quizzes will be set up. For example, in the “What kind of Rum Mix Are You?” Online Quiz, the user will be asked a series of questions. At the end, he/she will be given a result, which can be shared via Facebook or Twitter. Figure 2 demonstrates a sample result.

Figure 3: What Kind of Rum Mix are You? Sample result. You are a Mojito! You are not the one to go home after a tiring day. You love to work hard and party harder. Your boss is quite impressed and friends love to hang out with you. You are dependable and have a good sense of humour. You like to live life to the maximum. You are patient and are willing to try out new experiences in life. You believe learning never stops and are constantly improving yourself.

Twitter @BacardiCanada will engage in conversations with the target audience, address customer inquiries and share special events, company YouTube videos, and other helpful articles. There should be at least 4 tweets per day. The account will be constantly monitored to check if there are any mentions or customer related concerns that need to be addressed instantly.

Facebook https://www.facebook.com/bacardicanada will be set up, showcasing exclusive contents for fans only. There should at least be one posting a day. There should also be a balance on the type of topics posted. Postings would consist of the following:  40% educational (An article on How To Make Mixed Drinks, A video link on How to make a Raspberry Mojito)  40% special events (organized or sponsored by the company)  20% questions, polls, fun and games (“Where would you go for a beach party?” A. Ibiza B. Cancun C. Panama D. Jamaica E. Miami; “How do you enjoy your Bacardi” Straight or Mixed) This Facebook page will also be a good venue for communicating with other social media users, thus building a more positive and open relationship with the target market.

YouTube Bacardi Superior rum Channel will continue to promote future events and post past event highlights. This channel will also feature world-famous bartenders mixing drinks using Bacardi Superior Rum.

Sales Promotion In order to promote the ‘Patio’ element of the Bacardi Summer Nights campaign, several Bacardi patio sets will be available for contest in retail locations in each of the four participating cities.

Internal Promotion. Bacardi Sales reps will be encouraged to sign up independent retailers in participating cities to purchase 7,500 dollars worth of Bacardi Superior products over a three month contracted period (Inc Bacardi Superior, Bacardi Limon, Bacardi Dragon Berry; excludes other Bacardi brands). The sales rep who executes the highest level of contracts in his/her city will be awarded a paid trip for two to San Juan, Puerto Rico, to visit the Casa Bacardi Visitors Centre.

Trade Promotion. Once each retailer has signed onto a 3 month/$7500 contract, they will receive a 36-inch white Bacardi branded patio table, two white Bacardi branded patio lounge chairs, two Bacardi branded beach towels and one Bacardi branded beach umbrella with base. These promotional items will be given to the retailer to give away at their discretion, though they will be encouraged by Bacardi to allow the in-store contest to last the three months of their contract; this is to lessen the risk of overstock of Bacardi products without customer incentive to purchase. Also available exclusively to contracted retailers will be special point of purchase displays available in two varieties. One will promote the in-store contest and feature Bacardi Superior. The second will also promote the contest, but will feature a wider variety of Bacardi Premium products, including Bacardi Limon, Bacardi Torched Cherry, and Bacardi Dragon berry. The choice of display will depend on the ordering schedule set out by the 3 month contract, but retailers will be encouraged to feature the second version, in order to promote flanking brands. Two special giveaway products will also be available to contracted retailers to feature as a gift with purchase for consumers:  Shaker Set: One transparent, plastic cocktail shaker with strainer and two Bacardi cocktail parasols.  Cocktail Set: One Bacardi rocks glass with two wooden, branded coasters and two branded cocktail parasols.

Consumer Promotion Customers shopping at contracted retailers will have a chance to win a Bacardi Patio Set; this promotion will be run at the discretion of the retailer. Also at the contracted retail locations, customers purchasing 750 ml bottles of Bacardi Superior or other Bacardi brands of equal or greater value will receive either a shaker set or cocktail set (see above for details). In addition, 25 percent of bottles of Bacardi Superior ( 3 out of 12) sold to retail will come with an attached 60 ml bottle of a Bacardi subsidiary flavoured rum (e.g. Limon, Dragon Berry) This will give consumers the opportunity to sample flavours they are not familiar with. Customers at non contracted retailers will receive a cocktail set or small Bacardi cocktail recipe book. Also available for purchase for retailer re sale or customer purchase will be Bacardi Cocktail packs, which will contain.  1x 750ml Bacardi superior.  1x60ml bottle of Bacardi Limon  1x60ml bottle of Bacardi Dragon berry  1x60ml bottle of torched cherry  2x Bacardi branded cocktail glasses  2x wooden Bacardi patio coasters  1x Bacardi muddler  1x small cocktail recipe book  1x small branded cocktail shaker with lid and strainer (suggested retail price for Bacardi Cocktail pack. 39.99)

Public Relations The PR communication for the Bacardi Summer Nights Campaign will focus on cause-related advertising as well as involvement in the local community. The reason for this decision is due to the ever-growing mainstream practice in response to the rising consumer expectations of corporate social responsibility (CSR). 12

The purpose of the PR communication strategy is:  To create brand-awareness of Bacardi’s Premium Rum product  To alter a brand image by linking the brand to a cause  To create a positive word-of-mouth for our premium brand The result of this PR strategy is to evaluate public attitudes, beliefs and purchase intentions of our target audience. The increasing popularity of exclusive events and cause-related advertising will be attributed to the integration of the Bacardi Summer Nights Campaign. The use of both Media Publicity and Corporate Advertising will be utilized to promote our Bacardi Premium Rum product in a non-advertising manner. The campaign will issue press releases for Bacardi’s golf tournaments as well as its contribution to the community.

Bacardi Summer Nights Golf Series: The goal of the Premium Rum Tournament campaign is to successfully reach out to a specified target audience, specifically people who play golf or have interest in playing the sport. The campaign will be hosting Bacardi Summer Night themed golf tournaments in the four major urban areas; Vancouver, Calgary, Toronto, and Montreal. These exclusive events will be available to up to 100 people per day and will be held in the most popular and convenient golf courses in each of the 4 regional areas. These golf tournaments will be a social and competitive gathering for our target audience exposed to our premium product. For the convenience of our target audience, the golf tournaments will commence in the late spring to late summer (June 2nd - August 25th,) and will be held on Saturdays from 3:00pm - 9:30pm (Bacardi Summer Night themed Bar/Patio open until 2am). The golf events will be promoted as part of Bacardi’s ongoing advertising and social media efforts throughout the Bacardi Summer Nights campaign. This will include Facebook and Twitter announcements, promotional videos on YouTube, regional advertising (principally radio and print), and word of mouth promotion through the golf clubs and courses hosting the events. The cost of participating in this exclusive event is $150.00 per person or a group 4 people for $550.00. Additions to the event include:  Complimentary samples of Bacardi Premium Rum mixes (Total cost for samples: $8,000)  Bacardi themed bar/patio  A raffle to win exclusive Bacardi patio prizes. One raffle draw per person per day. (total cost of prizes $2,399.40) Golf courses where the Bacardi Golf Tournaments will be held: Vancouver  Fraserview Golf Course, Vancouver, BC Calgary  Fox Hollow Golf Course, Northeast Calgary, AB Toronto  Angus Glen Golf Club, Toronto, ON Montreal  Club de Golf de L'Ile de Montreal, Montreal, QC

As part of Bacardi’s ongoing efforts in Corporate Social Responsibility, Bacardi will be making a full donation towards its global corporate responsibility community projects. Some of these initiatives include community projects such as home building and meal distribution for needy families; fundraisers for educational, arts and cultural programs; clothing and blood drives; young adult mentorship programs; park and community center clean-ups; and several global environmental programs. The donation will take place in early September 2012 once the golf tournaments have ended.

Sponsorship & Event Marketing: Pride The Bacardi Summer Nights campaign will include sponsorship to promote and attract the target audience. Ideally, the goal would be to tie the sponsorship with the Corporate Social Responsibility message. One way of doing this is by sponsoring and supporting Pride events in the target cities. These events tie in well with the target market, which is primarily urban and progressive. There is a definite opportunity for Bacardi to capture a great portion of the urban generation X and Y market. Sponsorship will focus on the following 4 events: Vancouver  Pride Parade & Festival (August) Calgary  Pride Calgary (August/September) Toronto  Pride Toronto (June/July) Montreal  Fierte Montreal (August) These are large annual events that cater to over 100,000 people, and are open to a diverse community that fits within our target audience. The parade routes are set along well-known streets, which hold a variety of patio-like settings. Sponsoring the various Pride parades will increase visibility and branding opportunities that will fit within our marketing needs and goals Also, we will be able to service alcohol beverages mainly Bacardi’s popular spirits drink “Dragon Berry” in 60ml bottles, at a cost of $568.57. To participate in the event it will cost $2,130.00 for early-bird deadline or $2,575.00 for final deadline. These fees ensure the hours of alcohol service is extended to 4:00AM from Thursday, June 28, 2011 to Sunday, July 1, 2012 (see alcohol cost in appendix). In addition, to increase hype a float will be created to further promote the Bacardi’s Spirits brand (see appendix for float suppliers). The float will display a large popular spirits Bacardi bottle that is tilted pouring water into a large size cocktail glass. Primarily popular and convenient patio-like restaurants that are along parade route, which will be Bar St- Sulpice in Montreal, The Foxes Den in Toronto, Cactus Club in Vancouver, and Earls in Calgary. Also, a few of these restaurants may not know the Bacardi spirits drink mix, so to counter that issue we will train the bartenders. The cocktail glass will be designed into a popular drink; therefore, prompting consumers to try the drink. As for the water it will circulate from the glass to the bottle; therefore, saving water consumption. As for the construction of the float it will cost around $50,000. For parade entry it will cost Bacardi $1,617.11 to participate, which will include marching plus one vehicle (see R.O.P.E.s price in appendix).

Corporate Social Responsibility According to Harvey Meyer’s “When the Cause Is Just,” 80% of consumers say they have a more positive impression of companies that support a cause. In addition, an Ipsos Reid poll recorded that 76% of Canadians think Canadian companies do well when running their business in a socially responsible way. Bacardi participates in numerous initiatives; the goal will be to publicize these initiatives, spreading the message of Bacardi’s community involvement and reaching out to the corporate responsibility conscious/environmentally conscious consumers. Press releases will be issued, containing information on Bacardi’s involvement and contribution to various communities around the world. The highlights of the press release will be based on Bacardi’s Corporate Responsibility achievements and will include the following:  Cutting the usage of natural resources to maximize reduction of its carbon footprint, waste and water usage.  Over the past five years, water consumption globally reduced by 50% and energy use cut by 29%.  Bacardi operations in the UK achieved Carbon Trust Standard certification.  Bacardi is the only major spirits company to be certified by the world's most recognized standards for Quality, Environment, and Health + Safety for all its production facilities globally, putting the company among an elite group of the world's best-run companies.  In 2011, five country-level operations were recognized in Great Place to Work and other top employer rankings  The award-winning "Champions Drink Responsibly" social responsibility campaign featuring Bacardi Limited Global Social Responsibility Ambassador and world tennis champion Rafael Nadal has engaged with more than 45 million consumers worldwide.

These press releases will also include references to the golf tournaments and Pride event sponsorships outlined above, including them within the context of Bacardi’s large-scale community involvement and CSR efforts. The press releases will be issued to the following media: Vancouver:  The Province  The Vancouver Sun Calgary:  Calgary Sun Toronto:  Toronto Star  Toronto Sun Montreal:  Le Journal de Montréal  The Gazette National:  Globe and Mail  National Post

Phase 3 - Make Every Night Bacardi Night (October - April) The 3rd phase of this IMC plan will focus more on continuous development of the Bacardi brand.

Different social media vehicles like Facebook, Twitter, YouTube, and the Bacardi website will continue to engage with users by providing valuable and current information on new products, events, and helpful tips. There should be: 1-2 daily Facebook updates, 4 tweets per day, and 1 new YouTube video uploaded every quarter. All user comments and messages will continue to be replied to within 24hours to indicate that Bacardi values consumer opinions and interactions. The website will still be the main source of information and will be updated monthly. More games and quizzes (e.g. “What kind of Rum Mix are You?”) will be added to the site, keeping users engaged and giving the company a more “fun” personality. Users will continue to be able to share their results with friends through Facebook and Twitter, potentially driving more traffic to the company’s site. As for public relation vehicles like charity and sponsorship events, Bacardi will continue with these initiatives year-round. This may include seasonal events for holidays such as Christmas and New Years. These events will continue to make donations, in keeping with Bacardi’s corporate responsibility programs. The campaign will continue to issue press releases, keep the media up-to-date on news and events, and to promote the events through social media. There should be at least 1 news release relating to Bacardi's corporate social responsibility for every 1 to 2 months, in order for people to engage with Bacardi's actions and maintain a positive brand perception.

Budget Figure 4: Bacardi Summer Nights Campaign Budget Table Print $ 200,000.00 Television- National $4,000,000.00 Television- Regional & Specialty $2,000,000.00 Advertising Out of Home $ 125,000.00 Radio $ 200,000.00 Total Advertising: $6,525,000.00 Social Media Coordinator $ 42,000.00 Prizes $ 10,000.00 Social Media 30-second promotional Video $ 2,500.00 Total Social Media: $ 54,500.00 Raw goods for giveaway $ 9,500.00 Sales Branding $ 950.00 Promotion Distribution & Labour $ 900.00 Total Sales Promotion: $ 11,350.00 Press Releases $ 10,000.00 Golf Tournament $ 350,000.00 Public Pride Sponsorship & Participation $ 15,000.00 Relations Pride Parade Float $ 60,000.00 Total Public Relations: $ 435,000.00 Total Budget: $7,025,850.00

Implementation and Evaluation

Implementation As discussed in the Strategies & Tactics section, the campaign will be implemented in three phases, with the bulk of the resources being dedicated to the second phase. This campaign will be rolled out during a 5-month period, during which time each of the tactics described above will work concurrently with the others. The campaign will be run by Bacardi’s internal marketing department, as part of a larger national strategy for all Bacardi brands in Canada.

Evaluation The success of the Bacardi Summer Nights campaign will be measured by looking at two specific elements: an increase in sales, and a shift in brand perception among the newly selected target market. Sales can be tracked internally, but consumer perception will need to be determined using the commission of a survey. This survey, which will take place at the end of the Bacardi Summer Nights campaign, will be administered by an outside company, in partnership with Bacardi. Participants will be asked about their attitudes towards Bacardi Superior, to determine if the product is perceived as a luxury spirit. This survey will also include questions about the specific promotional tools used, whether they reached their target audience, and how effective they were.

Advertising Each of the advertising vehicles used will be selected based on industry data, and measured using the same methods; for example, BBM Canada for radio, and Nielsen for television. After the campaign, questions relating to specific advertisements will be included on the overall evaluation survey, to determine which were most effective in reaching the target audience.

Social Media The success of a campaign run through social media can easily be measured using the different metrics found within each of the platforms. Facebook can be measured with the number of fans/likes and user engagement via comments/replies. Twitter can be gauged through the number of followers, mentions and number of clicks it generates going to the company’s website. YouTube can be measured by the number of subscribers, views and comments. The effectiveness of the website can be measured using web analytics, which would provide additional information about the user’s online behaviour; including how long they spent on the website, what pages they viewed, and how they were directed to the site.

Sales Promotion The goal for this portion of the campaign is an 18 percent increase in sales over the previous year during the operational months. At the end of the campaign, sales figures from the operational months will be compared to those of

17 the previous year to gauge whether this has been successful or not. The projected goal for patio set retail add-ons is 25 in the targeted areas.

Public Relations In order to measure Bacardi’s public relations intermittent goals, the campaign must determine, as well as benchmark the rates of how each news story was picked up. The public relations campaign will be utilizing several media analysis vendors and programs, such as Biz 360, Cymphony, and Coremex Research. Aside from analysis programs, social media responses and interactions can be tracked for feedback. In terms of purchase decisions, the public relations campaign will also be utilizing pre and post survey research in order to measure the changes and awareness and attitudes. This form of evaluation will be taking place before and after the campaign, to determine the changes from the impact of the public relations program. Figure 5 contains some sample questions.

Figure 5: Sample Survey Questions 1. Cause-Related Marketing creates a positive company image (rate 1-10) 2. Based on the support for the community, I have become more aware of Bacardi products (rate 1-10)

3. I would be willing to pay for a products that supports a cause that I care about (Rate 1-10)

To evaluate the success of the Pride sponsorship, staff will record the number of attendees at each of our chosen restaurants. In addition, the partner restaurants can track the sales of Bacardi spirits. Or of any other Bacardi drink, thus determining if the event had any influence on the individual’s purchasing behaviour.