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Marketing 291 Marketing Plan.Docx Five Year Marketing Plan: Smirnoff Jell-O Shooters Tyler Steinke, Lauren Belz, Christian Schneider, Corey Kuchers, and Jonathan Schwegman Marketing 291 Professor Eric Stenstrom December 3, 2013 Table of Contents 1. Executive Summary 3 2. Company Description 3 3. Strategic Focus and Plan 4 4. Situation Analysis 6 5. Market-Product Focus 9 6. Marketing Program 11 7. Financial Data and Projections 13 8. Organization 15 9. Implementation 16 10. References 17 2 1. Executive Summary Diageo, the leading alcohol distributor in the world, is working with Jell-O to bring to market a revolutionary and new product that is yet to be created. The Diageo and Smirnoff families will welcome Smirnoff Jell-O Shooters to their line of convenient and pre-packaged drinks. Smirnoff Jell-O Shooters, a pre- made alcoholic gelatin substance, is a beverage geared to meet the needs of consumers ages 21-35. Currently in the United States, there is nothing similar on the market. Smirnoff Jell-O Shooters will be launched in the United States and then be further evaluated. Due to experience in the ready to drink alcoholic beverage industry, we are assured that we will see great success with the release of Smirnoff Jell-O Shooters. First and foremost, there is no competing product in the market. Smirnoff is strong in that they are able to recognize the demands of consumers and predict the potential of a product. After our past struggles with our ready to drink products including Smirnoff Ice and Smirnoff Frozen Pouches, we have experience in this part of our consumer market. We are planning to use this experience and apply it to Smirnoff Jell-O Shooters. As a result, we will have a more successful product launch and a more profitable product. With a total projected revenue of $20,000,000.00 and projected total expenses of $6,979,000.00, we expect to see $13,021,000.00 in profit in its first year on the market. We have decided that, pending our success in the United States, we will expand Smirnoff Jell-O Shooters internationally. Smirnoff‘s staggered release of Smirnoff Jell-O Shooters will happen over a five year period. At the end of the five years, Smirnoff will review net sales and look to expand world-wide. Smirnoff is looking to then release Smirnoff Jell-O Shooters in Australia and Europe. This decision is attributed to cultural similarities and similar drink preferences. 2. Company Description Diageo is a young company that has been in existence since 1997, however many of the brands have a rich heritage dating back to 1749. Diageo trades in approximately 180 countries, employs 25,000 people around the world and is the world's leading premium alcoholic beverage business. We have an outstanding collection of 3 brands across the spirits, beer and wine markets which include: Johnnie Walker, Crown Royal, J&B, Windsor, Buchanan's, Bushmills, Smirnoff, Ciroc, Ketel One, Baileys, Captain Morgan, Tanqueray, and Guinness. Between 2000 and 2002, we sold shares in food companies including Burger King and Pillsbury. In 2001, we acquired the Seagram line of spirits and wine in order to expand our brand offerings and only focus on premium alcoholic beverages. Although our products have a rich history and 250 years of experience, we want our products to be enjoyed by future generations as well. In recent years, we have developed additional products to meet new consumer tastes and experiences. The Smirnoff product line has been experimenting with new ready to drink products including: Smirnoff Ice, Smirnoff Frozen Pouches, and canned mixed drinks. With this in mind we are excited to be adding a new item to our already outstanding Smirnoff line: Smirnoff Jell-O Shooters. The Smirnoff Jell-O Shooter is a convenient, pre-packaged alcoholic gelatin shot made with Smirnoff vodka and Jell-O gelatin. 3. Strategic Focus and Plan This section covers three aspects of corporate strategy that influence the marketing plan: (1) the mission, (2) goals, and (3) core competency/sustainable competitive advantage of Diageo. On a corporate level, Diageo has several missions and goals that we seek to meet in order to maintain a competitive edge over competitors. Mission At Diageo, we are: 1. Passionate about customers and consumers: We desire to be courageous in pursuing our full potential, constantly searching for new ideas that drive growth across business. Curiosity and consumer insights drive growth. 2. Free to succeed: This fosters an entrepreneurial spirit, where we trust each other, and are open to new market challenges. We always behave as a team, whether together or apart. 3. Proud of what is done: We enjoy and benefit from diversity, and act sensitively with the highest standards of integrity and social responsibility. 4 4. Striving to be the best: While proud of our past, we are always improving, learning, and restless for new innovations. We are constantly setting high standards and working to exceed them. In the end, we deliver competitive results, and celebrate success. 5. Placing value on each other: We seek and benefit from diverse people and perspectives. We strive to create mutually fulfilling relationships and partnerships (Diageo, 2013). Goals Diageo has the following 6 core goals: 1. Lead industry marketing in order to engage consumers in multiple modes of media by joining our strengths with creative partnerships. 2. Create and deliver superior marketing campaigns that target different consumers at price points ranging from luxury pricing to more affordable. 3. Focus on marketing innovation and reaching new consumers, which include the growing middle class, multiethnic, and woman consumers 4. Foster lasting value for all of Diageo’s diverse brands 5. Collaborate with customers to increase profitability by building connections with both retailers and customers 6. Deliver education to associates and develop commercial and strategic worth for all parties in hope of having an unsurpassed sales force (Diageo, 2013). Competitive Advantages Our strengths include combining heritage and innovation, utilizing supply chains, developing emerging markets, and obtaining outstanding, diverse, and talented people. We have acquired these strengths through our various spirits brands, which have become household names across the world. Although these products individually are strong amongst themselves, they continue to expand and meet customer demands. Our industry leading capabilities include marketing, sales, supplies, and management. Our flexible operating model is agile and well established, while remaining financially disciplined. We have brands at almost every price level of every category. The breadth of our business provides resilience. Given the range of 5 our price points, we are able to capture consumption shifts across the price spectrum. This breadth and depth allow us to sustain our performance over time. In order to make our capabilities into a sustainable advantage, we must continue to take advantage of our established supply chains, while quickly acquiring the machinery to create the product. Also, we hope to spread the Smirnoff Jell-O Shooters throughout new markets in the US within the first five years. 4. Situation Analysis The table below shows the company’s internal and external factors affecting the success of our product. SWOT Analysis Internal Factors Strengths Weaknesses Marketing Under Smirnoff, a well-respected name Additional costs because of multiple modes of marketing. Offerings Unique product, convenient Lower-quality, lower-priced competitors Management Integrated as one of the various Smirnoff products Additional costs due to an additional management team. Finance Backed by Smirnoff- fully funded by the company Potential for market failure Manufacturing Pre-existing facilities Additional machinery required R&D Popular and established flavors and experience in Research required to establish proper packaging and pre-packaged products distribution External Factors Opportunities Threats Competitive Strong and established brand name Growing interests in the product idea of a “Jell-O shot” Distribution Established distribution, stores, and supply chains Temperature variations could harm product Technological Incorporation of the Mixhibit application Development of new machinery capable of creating Jell-O shots Economic Sales growth in the spirits industry Smirnoff is a luxury brand Legal/Regulatory Knowledge of current laws and regulations Changing laws pertaining to alcohol and working with Jell-O’s brand representative. Consumer/Social Stable market. Potential market growth. Brand misrepresentation specific to Jell-O Table 1 SWOT Analysis 6 Internally, our greatest strengths are our brand name and our convenient product offering. The uniqueness of the Smirnoff Jell-O Shooters is a great asset - we are offering a simple and convenient way to entertain a social gathering, with no prep time necessary. Externally, our greatest strengths include our experience in distribution, understanding the legal environment surrounding alcohol sales, and our knowledge of consumers. As for distribution, there is no other product on the market that is sold nationally, creating ample opportunity for growth. Because of our past business as Smirnoff, we know the appropriate actions and regulations pertaining to the sale of alcoholic beverages. We also understand our consumers and the opportunity for market growth. The main threats are brand misrepresentation and partnering with another company. Because we are marketing Jell-O in association with Smirnoff, the family-friendly
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