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Layna Ai Ora Chen Ashwin Kapadiya Gavin McMurray Sarah Polan Kavita Valarmathi

Layna Ai Ora Chen Ashwin Kapadiya Gavin McMurray Sarah Polan Kavita Valarmathi. MGT252 Intro to Marketing. Who are we? What is our product? Why this product?. Executive Summary. PEST Analysis. Political Regulations for alcohol sales in Ontario Manufacturer’s license

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Layna Ai Ora Chen Ashwin Kapadiya Gavin McMurray Sarah Polan Kavita Valarmathi

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  1. Layna Ai Ora Chen Ashwin Kapadiya Gavin McMurray Sarah Polan Kavita Valarmathi MGT252 Intro to Marketing

  2. Who are we? What is our product? Why this product? Executive Summary

  3. PEST Analysis • Political • Regulations for alcohol sales in Ontario • Manufacturer’s license • Government monopoly on alcohol sales • Advertising in Ontario • Manufacturing alcohol in Ontario

  4. PEST Analysis (cont'd) • Economic • Smirnoff’s (Diageo’s) shares have increased over the past few years, and continue to show an upward trend • The overall market has rebounded, indicating that

  5. PEST Analysis (cont'd) • Social • People are drinking more and more socially, with continuous increase in alcohol sales • The club-goers are always trying to follow the latest trends, and because of this they will be attracted to a new and differentiated product

  6. PEST Analysis (cont'd) • Technological • Mainly to do with the production of vodka • Production has remained the same for many hundreds of years

  7. SWOT Analysis Strengths Fact that we’re a brand new company means we have an easier time positioning ourselves as a differentiated product Weaknesses Since we are a new company, we have a lack of experience in the manufacturing of our product

  8. SWOT Analysis (cont'd) • Opportunities • The market expansion in vodka sales is an excellent opportunity to enter the market and be successful • Being able to sell through the LCBO means that we will always have the best possible venue for sales Threats Since we are a new company, we have a lack of experience in the manufacturing of our product

  9. Our target market segment is any individuals 19-30 years of age This segment consumes the largest amount of alcohol, and tend to go to clubs, bars, lounges, etc. Targeting people who are willing to pay slightly more for better quality beverage, i.e. who have more spending money Customer Analysis

  10. Main competitors; Smirnoff, Absolut, SKYY and Grey Goose All of these companies have developed products with infused flavours This is because consumers are increasingly interested in a wider variety of flavours Competitor Analysis

  11. ` “To become the number one seller of infused vodka in the next 10 years” We are a new company and will require a large initial investment in marketing expenditures to reach our target consumer Market trends show that tastes for Company/Market Analysis

  12. Brand name: Iced Vea Provide customers with high quality beverage that will suit any occasion Build brand image on memorable get-togethers and all around good times Brand development into other product lines Brand Positioning

  13. Trademark “Cube” eye-catching 750mL bottle Minimum price for LCBO sales is $24.95 In order to show that our product is premium, set the price slightly higher at $30.95 This shows high quality, and yet remains affordable Product & Price

  14. Promotion to consumers as well as business Use of sales people to speak with business managers Magazine, television and billboard advertisements Distribution through the LCBO Required for every alcoholic beverage in Ontario Promotion & Place

  15. Nov 2010 – Submit product to LCBO for approval April 2011 – Begin marketing campaign June 2011 – Product available for sale December 2011 – Evaluate sales and marketing efficiency for the year June 2012 – Prepare new marketing campaign, “party” promotions, etc. Timetable

  16. Success to be gauged in two key areas: 1. Product Awareness Survey (33% Toronto, GTA; 18% Ontario) Interview Managers/Staff from LCBO and corporate buyers Expect positive feedback 2. Sales Obtain sales figures from LCBO and licensed establishments 6 mo. Goal: $400,000 retail, $350,000 licensed establishments Evaluations

  17. Assets Distillery $1 000 000 Equipment $4 000 000 Liscensing $100 000 Inventory $500 000 Liabilities Bank Loan $6 000 000 Expenses Labour wages (@ $15/hr) $700 000 Marketing expenses $1 000 000 Selling and administrative expenses $200 000 Revenues Sales revenues $1 000 000 As we can see from our overview of our financial report, we will need to take a significant bank loan as a start up company in order to cover some of our initial costs. The bulk of these consist of the distillery and the equipment needed for it. Our marketing expenses are set at $1 000 000 because we intend to do a lot of marketing initially in order to penetrate the market. However, given our current financial status we could not provide more resources than that. We are hoping that the marketing will pay for itself at the end of one year and provide us with approximately $1 000 000 in revenues, at which point we may begin to host our promotion “parties” in order to ensure share of voice in our market segment. Financials

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