Work Sample

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

Highlights: Slide design, story creation/slide organization, insights, professional writing SVEDKA Vodka Team Mercedes Agenda ● Purpose ● 3C Analysis ● STP ● 4Ps of Marketing ● Executive Summary Purpose

Goals

● Introduce a new mid-tier vodka option into the 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 Agenda ● Purpose ● 3C Analysis ● STP ● 4Ps of Marketing ● Executive Summary 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 Brand Overview

● SVEDKA Vodka is best known for being fun, spirited and trendy, placing it most into the excitement EXCITEMENT SOPHISTICATION personality ● It pulls from competence in its ability to be a leader in the middle market vodka category ● Finally, being a great value vodka COMPETENCE with an attractive design gives it elements of sophistication 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 ● , , Absolut, and are premium priced options; Skyy, , 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. Competition: Perceptual Map High Price

High Quality Low Quality

Low Price Customers

The vodka category is broad and consumers are influenced by a variety of factors.

WHO DRINKS VODKA? WHAT DO THEY CARE ABOUT?

● Anyone over the age of 21 ● Value: price must match quality ● Popular segments include: ● Taste: bitterness is unpreferred ○ Older men who have been ● Status: brands are important drinking vodka their entire lives because buying specific ones say ○ New, young drinkers who are something about the consumer still experimenting in the ● Authenticity: the history and place market and trying new drinks of production are important in this category, people like to know it is European Agenda ● Purpose ● 3C Analysis ● STP ● 4Ps of Marketing ● Executive Summary Segmentation and Targeting

MARKET SEGMENTATION TARGET: New Drinkers

The Regulars ● High degree of fit with Svedka’s exciting brand personality ● Tend to be older males ● This segment is attractive because ● Price conscious they would be willing to switch vodka ● Brand loyal brands and are typically looking to drink for fun and to have a good time New Drinkers ● Svedka’s strategic objective is to dominate the mid-market; segment is ● 21-to-35 year-olds willing to stretch their dollars ● Price conscious ● Degree of competitiveness is ● Not brand loyal average, as the market is split between them and The Regulars 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. ” Agenda ● Purpose ● 3C Analysis ● STP ● 4Ps of Marketing ● Executive Summary Price

MARKET INFORMATION PRICING RECOMMENDATIONS

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

MARKET INFORMATION PLACE RECOMMENDATIONS

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

MARKET INFORMATION PRODUCTPRODUCT RECOMMENDATIONS RECOMMENDATION

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

MARKET INFORMATION CURRENT APPROACHES

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

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

LOW QUALITY Agenda ● Purpose ● 3C Analysis ● STP ● 4Ps of Marketing ● Executive Summary 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 offered 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