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Immix
Immix

Rachel Smethurst
Rodion Salakhutdinov
Anselm Lopes
Hardeep Sandhu
Huzefa Chini
Yuvraj Lal

What’s your Mix

April 3rd, 2013
Project Course:
Mark 1027
TABLE OF CONTENTS

Immix

Executive Summary

Slide #3

Section #1: Situation Analysis
-Environmental Scan
- SWOT Analysis & Idea

Slide # 5

Section #2: Marketing Plan of Action
- Mission and Introduction
- Implementation & Control

Slide # 8

Appendix

Slide #34
Immix

EXECUTIVE SUMMARY

Company Considerations:
• Company has strong financials, growth, and operations. No notable
constrictions on pursuing market opportunities
Market Opportunity and Gap:
• Very strong industry growth
• Have not adequately marketed to Millennial generation who
*****Rachel will demand for wine products
maintain a large do
• Increased desire for novel, innovative, unique wine products

Product Outline and Competitive Advantage:
• Ready-to-drink wine-liqueur mixed cocktail. Facilitates ease of
consuming wine in a younger, higher intensity social environment.
Higher alcohol percentage provides higher economic value
Immix

EXECUTIVE SUMMARY CONT.

Key Year 1 Goals:
• $2,205,003.42 in revenue from IMMIX product
• 65% availability in GTA bars/clubs
Brief Primary Target: Female. 19-30. Social. Trendy.
Relatively high alcohol user (min. 1 time per week)
Major promotions & Advertising: Building relations with
high occupancy bars, sponsorship of major music/art
events, strong social media presence, viral marketing, &
integration of web and mobile technology.
Immix

Section #1:
Situation Analysis
Company and Brand Category
Company: Andrew Peller Limited
Brand Group: Round Petal Wines

What’s your Mix?
SWOT ANALYSIS

Immix

Strengths

Weaknesses

• Brand group has stable multi-distributor
relations. New product will be able to
utilize those relations
• High degree of success with all individual
brands within the brand group. Success
with Skinny Grape, a narrowly targeted
market (calorie conscious females)
• Stable finances and operational capacity
provides the foundation to capitalize on
consumer trends
• Locational competitive advantage of
wineries and vineyards
• Crush brand, the most recent product to be
launched, had the highest sales for a
product through those channels

• Smaller amount of resources in comparison
to direct competitor, Constellation Brand.
• Low degree of social and mobile media.
Lack of presence can result in a discounted
image by consumers who view social
networks as a primary medium
• Do not have as diverse of a selection of
product formats, sizes, and ready-to-drink
mixed varieties as Constellation Brands
• Small number of fun, innovative wines.
• Round Petal brand group is relatively new in
comparison to other established brands in
the company portfolio
SWOT ANALYSIS

Immix

Opportunities

Threats

• Substantial, steady market growth provides
the opportunity to introduce a new product
without taking market share away from
established brands
• Consumer alcohol preferences switching
towards wine
• Demand for higher quality wine  can
charge higher prices
• Untapped Millennial generation.
Establishing brand loyalty at this age can
help to attract consumers with a high
lifetime value.
• Increased demand for fun, innovative wines
• Increasing integration of social media
networking allows company to target nontraditional demographics

• Government changes in regulation can have
an adverse impact on revenue and product
offering. Must keep on top of policies and
restrictions
• High degree of imports & foreign
government subsidies flood the lower
priced value varieties. Must find source of
competitive
• Consumers have a high reliance on social
and mobile technology. The lack of
utilization of these mediums can be
• Wine is not optimally consumed in higher
intensity nightlife establishments such as
bars and clubs
• Younger generation feels as if they are not
being marketed to.
Immix

Section #2:
Marketing Plan of Action for
IMMIX
Sept 2013 – April 2014

What’s your Mix?
Immix

MISSION & INTRODUCTION

Socialize a young generation with a fun and joyful
atmosphere; bring a clean and fresh taste of fruits with the
sparkling wine attitude to their night life. And give them what
they want.

Immix is a mixed wine cocktail that allows young alcohol
consumers to enjoy wine in a social, casual atmosphere.
Convenient, easy to hold packaging in combination with a
higher alcohol percentage than typical wine coolers, increased
the ease in which cosumers can consume wine in a faster
paced social environment

What’s your Mix?
Immix

FISCAL YEAR 1 OBJECTIVES

Launch IMMIX into the alcohol market on October 1st, 2013

1. $2,205,003.42 of revenue generated through sales this product in
Fiscal Year 1.
2. To drive target market awareness of IMMIX determined by having the
product be available in 65% of GTA bars/clubs by end of Fiscal 2013.
Micro-Objectives:
- Provide sponsorship of Toronto Fashion Week in March 2014
- Launch all 4 varieties of IMMIX
-Increase social and mobile media, evaluated by Twitter and Facebook
followers. Target of 1,500 followers in each medium

What’s your Mix?
Immix

TARGET MARKET

Key Demographics:
- Female. 19-30. College/University educated. Employed in various
occupations. Middle - Upper class. Single.

Key Behavioral/Psychographic Traits:
- Social life and alcohol are synonymous. Frequent bars/clubs/big
events as social venues of preference.
- Alcohol is an affordable luxury but economic value is key factor.
- Balanced lifestyle
- Up to date on trends and popular brands. Will seriously consider
purchasing a product based on peer group preferences
* Sample Consumer Profile Available in the Appendix

What’s your Mix?
Immix

Instrument audience
• Social network active
users

TARGET CONT.
Mass/Indirect Audience

В2B
• Bars
•Restaurants
•Night Clubs

Secondary
Target Market
(Demand
Audience )

B2C
• Our Target or Primary
Audience

Primary Audience
• 19-30
• Female
• High degree of
social activity
• Socialize in clubs
and bars

What’s your Mix?
Immix

PRODUCT POSITIONING

IMMIX is a higher-alcohol content wine-liqueur
cocktail that provides the young, social alcohol
user to enjoy wine in a higher intensity, fastpaced social atmosphere.

What’s your Mix?
Immix

PRODUCT STRATEGY
Product description:
- 50% sparkling wine, 25% flavored liqueur, 25% water.
- Wine contracted through established APL vineyards; Liqueurs
through division of that handles APL non-wine production
- Alcohol percentage value is 11%. A lower percentage alcohol
percentage for sparkling wine (12%) will be used to balance out
the higher percentage liqueur (20%)
- Four varietals dependant on liqueur type. (Peach, Lychee, Black
Currant, and Cherry.)

Key Benefits:
- Wine based alcoholic cooler
- Convenient, easy to handle packaging
- ¼ liqueur. Higher alcohol percentage
provides economic value for consumers
- Modern/trendy bottle design

What’s your Mix?
Immix

PRODUCT STRATEGY CONT.

Competitive Advantage: Providing alcohol drinkers who
have a preference for wine, to consume a wine based
beverage in a higher intensity, social atmosphere while
maintaining a higher alcohol percentage than other
ready-to-drink coolers.
Packaging:
- 4 pack (341ml standard cans)
- Sleek, narrow can design to increase ease of handling
- Lighter feel for females
- Modern, ambiguous look
What’s your Mix?
PRODUCT DESIGN ILLUSTRATION
CONCEPT

Immix

What’s your Mix

Immix

Immix
Immix

PRODUCT STRATEGY CONT.

Brand Name – IMMIX [EM-MI:X]
Rationale:
- Wanted trendy, easy to remember moniker. Avoid
using generic varietal based name.
- IMMIX is a synonym for blended or mixed
- Opportunity to link with certain types of music
that are mixed by artists
- With slogan ‘what’s your mix?’ believe it would
catch on quickly with younger generation
What’s your Mix?
Immix

•

PRICING STRATEGY

Retail price is $12.40. Approximately $1.40

above average price for ready-to-drink
coolers
• Currently “APL” and the brand “Roundpetal”
do not have an equivalent product We will set
the price for our product at the range
between wine and coolers, that will help to
define our product into new category “wine
coolers”.
• 95% of coolers are consist or hard alcoholic
beverages such as vodka, rum, gin and
whiskey. However our product will be
relatively new for the market, because it is
made with sparkling wine and liquors.
• Higher alcohol percentage than other coolers
– Average is 5%
– IMMIX is 11

Cost of production per pack
+ Variable cost

3.77
50%

Price offered to distributors

7.54

Selling price before tax

12.40

+HST
Selling price after tax

13%
14.42

*Appendix slide #37;38

What’s your Mix?
Immix

PLACEMENT STRATEGY

- LCBO and Wine Shop are sole distributors
- Licensing for bar and alcohol establishments
occur through LCBO
Year 1 Placement Goals:
- 100% placement in Wine Shop retailers
- 70% availability in LCBO retailers
- Goal of 65% availability in GTA bars/clubs
- Sponsorship of major music & arts events
- Licensing revenues by high promotions and
partnerships with high occupancy bars/clubs in
the GTA
*Distribution options are limited due to the
high degree of regulation in the Ontario
alcohol market.

What’s your Mix?
PROMOTIONS STRATEGY

Immix

B2B

B2B promotion with
different kinds of contests
will affect the consumption
in clubs. Moreover, some of
the contest will stimulate
the work of night clubs and
bars. That initiative will rise
amount of selling products
and bring new customers.

B2C

Affect

Different kind of events and activities
that will stimulate: real time selling,
future time selling, will build an
awareness around the brand

We will show key benefits through
advertising:
• Convenient and easy to drink
• Part liquor and high alcohol
percentage
Immix

COMMUNICATIONS PLATFORM
Outdoor
advertisement

Direct
messaging
(phone)

Contests B2B
and B2C

Internet
banners,
website and
social media

Customer

Magazines

Sponsorship

Sampling
Programs with
bars and
restaurants
(special offers)

What’s your Mix?
Immix

ADVERTISING

Outdoor Advertisement

Direct text Messaging

Will be divided into two
categories:
1. “Buzz” - developed to create
a rumors about the product.
Will not be given any names
except slogan and brand
image.
2. “Informative” - developed to
share a key benefits of our
product, will show different
varieties of bottles.

Main aspects of that platform
are:
1. First part will create “Buzz”,
people will get weird text
messages: “What’s your
mix?” Needed to attract them
to our site and networks.
2. Will be launched to inform
potential customers about
special offers at
bars/nightclubs and inform
them about future contests

What’s your Mix?
Immix

ADVERTISING CONT.

NIGHT CLUB PROMOTIONS
Will discuss with high occupancy
clubs/bars that are popular among 1929 demographic about event
promotions.
-

Hire certain promotional
companies such as Mosaic
promotions for event staff
Discounted products for the events
Can sponsor certain nights
Social media promotions
Quick way of building word of
mouth and linking product with
target market’s lifestyle

Sponsorship “Toronto Fashion
Week”

Our company will put a press wall
on the main fashion event on
Toronto – Toronto Fashion week.
Our logo will be putted on the
invitation cards. Also, we will
provide a certain amount of
alcohol beverages to “TFW After
Parties”. Also we will hire a
professional photographer to take
pictures of famous people with
our product in their hands.

What’s your Mix?
Immix

ADVERTISING CONT.

Sampling

Program with Bars

Will be launched at LCBO and
Wine SHOP to give a general
understanding of our product and
inform our potential customers
about its benefits. Will be given
all possible flavors of a product
and hire brand representatives
with our stylish brand cloth to
present our product in more
pleasant way. Brand
representatives will serve this
beverage by themselves in a
certain way.

Our company will provide a
certain amount of our alcohol
beverages to sell it there with a
special offer hath of price.
Moreover, during that activity
bartenders and waitresses have
will be informed about “right”
presenting of our product. All of
them have to give not just a glass
but a can with our beverage as
well. Also, for that particular
activity will be developed
information lists about mixing our
product with other beverages.

What’s your Mix?
Immix

ADVERTISING CONT.

Magazines

Web Site

We will put our advertising into
main magazine - Vogue. This
magazine more then anything
match with the positioning of our
product and its key audience are
our potential customers. This
advertising will inform the
customers more about none
visual benefits – lifestyle,
nightlife, social aspects. However
there will be photos of different
flavors.

We will have our own website. All
the billboards will have QR codes
on them, when scanned they will
lead to Immix’s website. The
website will be an interactive one
where visitors will be asked
questions about their favorite
music and flavors, and asking
them to wait for the “Immix” to
happen. This is more to create
hype and buzz. And get important
information about future activity.

What’s your Mix?
Immix

ADVERTISING CONT.

Internet Banners

Social Networks

Will be developed special
interactive banners. That will be
playable. People can choose a
drink there, open a bottle and
spill it into a glass.
In the beginning of our activity
this banners will interact with
people asking them a question:
“What’s your mix?” All gathered
information will be collected for
future activities.

Immix will also have a Facebook
and Twitter page where the
audience will be engaged in
contests as well as get the most
“Immix” news from and updates
from fashion, music and lifestyle.
Live interaction will also be
promoted through these
mediums and importance will be
placed on users comments and
feedback. This platform will be
advertised by every activity.

What’s your Mix?
Immix

B2C CONTESTS

“Ambassador of IMMIX ”

“Toronto Fashion Week”

Ambassador of Immix is
competition during which
contestants have to promote our
product and reach the maximum
amount of likes of related banner:
the winner will get a free drinking
Immix card, which he can use at
every bar or night clubs which
have a partnership with us. There
will be 1 “gold” cards (winner can
visit all our related events for free
+ get our beverage for free); 3
“silver” (can visit all sponsorship
events for free)/ for 1 year only

Contest, during which contestants
have to create short video clip
interpreting “What’s your mix”.
Post it on the Facebook and
Youtube. The videos also will be
posted on our Facebook and
YouTube pages, where all can put
a “Like” on it. The winner will be
decided by users of the Facebook
and YouTube, defined by numbers
of “Likes”. Top 5 most viewed
videos will get a free ticket for the
TFW. And the main winner will
get a “gold” Immix card.

What’s your Mix?
Immix

B2B CONTESTS

“Bartender of IMMIX”

“Bar of IMMIX”

Bartender at the partner’s bars
who will offer the best mix made
with our beverage will win a trip
to Hawaii for two persons for two
weeks in a 5 star hotel. That
activity will help to find out the
best mix cocktail with our
product. The idea is to create a
cocktail like “Red Bull-Vodka”.
That will help us to be more
popular in the night club area.
Moreover, the best cocktail will
be decided during the TFW.

Bar or Night club where the
amounts of selling of our product
are more than in other partner
bars or nightclubs. Will be
reworded by 10 tickets to Hawaii
into 5 star hotels. The winner will
be decided by the end of fiscal
year, when the annual report will
be ready. Moreover, the bar/night
club will be named as a
“Ambassador of Immix” and will
be possessed as a Immix place.

What’s your Mix?
MARKETING PLAN

Immix

Format

Promotion

September

1 side

Direct Mail (Text Messages) text

November

December

January

February

March

April
Price per 1 unit

1
Outdoor Billboard

October

2

3

4

1

2

3

4

1

2

3

4

1

2

3

4

1 2 3

4

1

2

3

4

1

2

3

4

1

2

3

Price per activity

4

100000

150000

300000

5000

$

70,000.00

150000

150000

$

30.00

$

31,500.00

5000

$

12.40

$

54,600.00

$

12.40

$

41,000.00

$

15.00

$

105,000.00

$

12.40

$

79,200.00

$

50,000.00

$

150,000.00

$

25,000.00

$

25,000.00

$

4000

1,000.00

1

15

$

4000

10

10

TFW

15

5,158.40

$

6,705.92

$

7,158.40

$

8,158.40

10

10

200000

Sampling at stores

0,5 cocktail

Joint programs with bars
(0,5 price)

1 can

Banners social

1000 V

Sponsorship Night clubs

1 pack

Magazine

0,5

Sponsorship events

Bil+Sampl

Ambassador of Immix

Cards

TFW + Immix

5 Tickets +
Card

Bartender of Immix

Hawaii 1 T

1 ticket to Hawaii +$3194.67

$

9,584.00

$

9,584.00

Bar of Immix

Hawaii 5T

10 Tickets to Hawaii+ $13691.43 to a month

$

9,584.00

$

95,840.00

$

676,588.32

$

676,588.32

Total:
Stage:
Quartile budget:

1500
Buzz

1500

2000

Reach 7'000'000 veiws (+13'125$ to a month)
1500
1

1500

1000

1

1500

4 events, 1 Gold card +$2235.31
1 card+5TFW

$ 31,125.00

$ 106,483.10

$ 137,146.40

$63,846.40

"Active promotion" Q4

"Creating
Buzz" Q3
$ 31,125.00

$ 62,485.07

$

306,114.57

$ 71,202.83

$ 126,216.43

"Gethering harvest" Q1

$

261,265.66

$ 78,083.10

"Skimming"
Q2

+30% safety

$

879,564.82

$ 78,083.10

What’s your Mix?
INCOME STATEMENT

Immix

Income Statement for Fiscal 2012 and Fiscal 2013
2013
New product Sales (Note 1)
Sales (Note 2)

$2,205,003.42
$288,788,969.0

Total Gross Sales
COGS (Note 3)

Selling, General, & Admin. (Note 4)

$276,883,000
$290,993,972.42

$183,326,202.63

Gross Profit
Promotional Expenses

2012

$276,883,000
$107,257,000.00

$107,667,769.80
$879,564.82

$169,729,279.00
-

$78,568,372.55

$74,606,000.00

Total Expenses

$79,447,937.37

$74,606,000.00

Net Income Before Tax

$28,219,832.42

$32,651,000.00

Note 1: Forecasted Unit Sales * Unit Price (292441*$7.54)
Note 2: Sales Growth Expected to be similar to 2012 levels
Note 3: Estimated by company to be 63% of Sales
Note 4: Tightly controlled around 27% of sales. Additional selling costs associated with the new product will be included in Promotional expenses
MARKETING MIX

Immix

• “Immix”
• A great tasting mix of wine
and liqueur which is
convenient way of
integrating win into bars,
nightclubs and parties
• 4 Different flavors: black
currant, cherry, peach and
lychee

• Competitive price
• $12.40 per 4 pack
• Promotional pricing in
bars and clubs is the
discretion of venue
management.
Price

Place

• Sold in 65% of bars,
night clubs and
restaurants in Toronto
• Sponsor 50% of major
music events
• LCBO, Wine Shop

Product

Promotion

• Out door banners, that
create a buzz around brand
• Outdoor ads. that inform
about key benefits of our
product
• Sponsoring of TFW
• SMS direct marketing

What’s your Mix?
Product
Launch
Direct mail

ADV at media

ADV at media

IMPLEMENTATION

Immix

ADV at media

7000000 views.
Communication
with social media

Direct mail

Direct mail (SMS messages)

Direct mail

Sampling

Sampling

BUZZ
PERIOD

“Bar of Immix”
Sampling at
LCBO and Winerack

Night Clubs Sponsorship
“Bartender of Immix”
“Ambassador of Immix”

TFW Contest

Program “hath of price” with the
bars
Outdoor ADV
to create
buzz

September

Outdoor ADV
informing our
clients about
key benefits

October

Night Clubs Sponsorship

“Hath of
price”

Outdoor ADV informing our
clients about key benefits of a
product

Outdoor ADV informing our
clients about key benefits of
a product

November

December

January

TFW
Sponsoring

February

March

April

What’s your Mix?
Immix

CONTROL

Our major activities are made the way when we can see and check the
response on our activities. For example “Direct SMS texting” which
have to inform people about our events will take part during October.
At the end of November we will get the number of people who visited
our events at bars and we will figure out the number of product sold
there. Our main control tool will be bars and restaurants – if the sells
there will go up that mean that our whole campaign is going well.
Moreover, also we added a 30% safety amount to our budget to active
quickly in case of unpredictable situation.

What’s your Mix?
Immix

APPENDIX

What’s your Mix?
Immix

SAMPLE CONSUMER PROFILE

Our target is females between 19 – 30 who view alcohol as an essential part
of their social life. Either being single, or in a very social relationship, these
women look for a alcoholic beverage that can be enjoyed in a casual multigender atmosphere. Having graduated with a university of college degree,
maintaining stable employment is just as important as the social aspect of
their life. Income level is middle class and above. They have enough income
that they have the freedom to select their alcoholic beverage of choice as
long as the price is reasonable. They tend to maintain an air of indifference
towards money but the economic value of the product is always in the back
of their mind. Trends and the popularity of products is very important. They
will almost always test out a product that is trendy and hip. The same goes
with their music choices, as music is also an essential part of their social life.
Their social life encompasses going to the bar, pub, or night club at least once
a week, typically on the weekend, in order to socialize with their friends
and/or to interact with the opposite sex.
Immix

COMPETITOR PRODUCT PRICING

Name

Price $

Futures

Key message and attributes.

“Bacardi
Breezer”

9.95

Available in four different flavors
“orange”, “Strawberry’’, “Pineapple”,
“Raspberry”. 4 Pack. Based on
spirits.4% of Alcohol.

“A splash of Paradise”; made for
parties, shine bottle

“Mike’s Hard
Lemonade”

9.95

Available in different flavors
“Blueberry”, “Lime’’, “Black berry”,
“Lemon”, “Cranberry” 4 Pack. Based
on spirits. 5% Alcohol.

“Always different, always refreshing”,
Social aspects and lots of trendy teen
promotion on the web site.

“Palm Bay”

11.95

Available in “Cherry” , “Lime”,
“Mandarin”, “Orange”, “Pineapple”,
“Grapefruit”, “Mango” 6 pack. Based
on vodka. 5% of Alcohol

“Palm bay is taking over”, contests with
traveling prize

“Segram” mixed
beverages

9.95

Available in “Wild Berry”, “Orange” 4
pack. 5% of Alcohol

“Made with pure spring water”

Smirnoff Ice

9.95

Available in different packs: 4/12/24
also in flavors “Raspberry”, “Green
Apple”. 5%of alcohol.

“Smirnoff mixes the world’s best
cocktails”

Vex Electric

11.95

“Daiquiri”. “Strawberry”, ”Mai Tai”,
“Pinacolada” 7% of Alcohol.

“V is for Vodka”

Photo
UNIT SALES ESTIMATE FOR THE PERIOD SEPTEMBER 1 2013 - APRIL 31, 2014
Ontario Population (Note 1)

13,505,900.00
20-24
25-29

959,400.00
952,900.00

Ontario Population Between 20-29

1,912,300.00

Percentage Wine Consumers (Note 2)

45.8%

875,833.40

Percentage Female Drinkers

53.0%

464,191.70

Interest Level (Note 3)
Awareness (Note 4)

Light Drinkers
Medium Drinkers

30.0%
70.0%
Number of Consumers Fiscal Year 1

4 Purchases (1 every 2 months)
8 Purchases (1 every month)
Conservative Unit Estimate for Fiscal Year 1

69,629

48740.13

97480.26
194960.51
292441

Note 1: Provincial and Age Statistics gathered from Government of Ontario Fact Sheet
Note 2: Percentage Wine Consumers and Percentage Female Drinkers from PMB Study
Note 3: 30% Interest level is conservative estimate based on combined share interest in coolers, mixed drink cocktails, and sparkling
wine
Note 4: Based on placement goal in LCBO retailers and licensed establishments in GTA
LCBO PRICING

Immix
Immix

LCBO Pricing Mark-Up (Note 1)
Consumer Price After Tax

$14.41

Container Cost
Consumer Costs

.10 per bottle

$0.40

H.S.T
Consumer Price Before
Tax

Standard tax rate

$1.61
$12.40

Consumer Price Before
Tax

$12.40

Bottle Levy

$0.38

Environmental Fee

0.0893 per bottle

$0.36

Mark-Up

LCBO Costs

0.28 per Litre
54.6%

$11.66

Supplier Cost
Note 1: All related pricing rates were provided from the LBCO website

$7.54
Home

About Us

Immix

WHAT’S

your
Mix?
What’s your Mix?

Party Animal

Contacts
WHAT’S

In your
Mix?

WHAT DO

You listen

?
WHAT’S

your
Mix?
Immix

What’s your
Mix?
Immix

What’s
your Mix?
Immix Cards

Immix

M

M

Immix

Immix

What’s your Mix?
MARKING BUDGET BY ACTIVITY

Immix

Budget share of activities

18%
10%
5%

Outdoor Billboard
8%

4%

Mobile texting to trend setters
6%

Sampling at stores
Joint programs with bars (0,5 price)

Banners social

22%
15%
12%

Sponsorship Night clubs
Magazine
Sponsorship events
Contests

$

879,564.82

What’s your Mix?
Billboard Samples

Immix

M
Immix

WORK CITED

•

Andrew Peller Limited. 2012 Annual Report. Grimsby, ON: Andrew Peller
Limited, 2012. 02 Apr. 2013.
<http://www.andrewpeller.com/UserFiles/File/FINANCIALS/Andrew%20Peller%20L
imited%202012%20Annual%20Report.pdf>

•

LCBO. "Product List, Ready-to-drink/Coolers." Product Search. N.p., Web. 02 Apr.
2013. <http://www.lcbo.com/lcbo-ear/lcbo/product/searchResults>.

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LCBO. "Product List, Ready-to-drink/Coolers." Product Search. N.p., Web. 02 Apr.
2013. <http://www.lcbo.com/lcbo-ear/lcbo/product/searchResults>. (Pic)

•

The Wine Shop. "About Us." The Wine Shop. N.p., Web. 02 Apr. 2013.
<http://www.thewineshops.com/about_us.php>. (Pic)

•

Vector. "Figures of Dancing Girls with Shadows." Arts & Entertainment. Stoch
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Immix

  • 1. Immix Immix Rachel Smethurst Rodion Salakhutdinov Anselm Lopes Hardeep Sandhu Huzefa Chini Yuvraj Lal What’s your Mix April 3rd, 2013 Project Course: Mark 1027
  • 2. TABLE OF CONTENTS Immix Executive Summary Slide #3 Section #1: Situation Analysis -Environmental Scan - SWOT Analysis & Idea Slide # 5 Section #2: Marketing Plan of Action - Mission and Introduction - Implementation & Control Slide # 8 Appendix Slide #34
  • 3. Immix EXECUTIVE SUMMARY Company Considerations: • Company has strong financials, growth, and operations. No notable constrictions on pursuing market opportunities Market Opportunity and Gap: • Very strong industry growth • Have not adequately marketed to Millennial generation who *****Rachel will demand for wine products maintain a large do • Increased desire for novel, innovative, unique wine products Product Outline and Competitive Advantage: • Ready-to-drink wine-liqueur mixed cocktail. Facilitates ease of consuming wine in a younger, higher intensity social environment. Higher alcohol percentage provides higher economic value
  • 4. Immix EXECUTIVE SUMMARY CONT. Key Year 1 Goals: • $2,205,003.42 in revenue from IMMIX product • 65% availability in GTA bars/clubs Brief Primary Target: Female. 19-30. Social. Trendy. Relatively high alcohol user (min. 1 time per week) Major promotions & Advertising: Building relations with high occupancy bars, sponsorship of major music/art events, strong social media presence, viral marketing, & integration of web and mobile technology.
  • 5. Immix Section #1: Situation Analysis Company and Brand Category Company: Andrew Peller Limited Brand Group: Round Petal Wines What’s your Mix?
  • 6. SWOT ANALYSIS Immix Strengths Weaknesses • Brand group has stable multi-distributor relations. New product will be able to utilize those relations • High degree of success with all individual brands within the brand group. Success with Skinny Grape, a narrowly targeted market (calorie conscious females) • Stable finances and operational capacity provides the foundation to capitalize on consumer trends • Locational competitive advantage of wineries and vineyards • Crush brand, the most recent product to be launched, had the highest sales for a product through those channels • Smaller amount of resources in comparison to direct competitor, Constellation Brand. • Low degree of social and mobile media. Lack of presence can result in a discounted image by consumers who view social networks as a primary medium • Do not have as diverse of a selection of product formats, sizes, and ready-to-drink mixed varieties as Constellation Brands • Small number of fun, innovative wines. • Round Petal brand group is relatively new in comparison to other established brands in the company portfolio
  • 7. SWOT ANALYSIS Immix Opportunities Threats • Substantial, steady market growth provides the opportunity to introduce a new product without taking market share away from established brands • Consumer alcohol preferences switching towards wine • Demand for higher quality wine  can charge higher prices • Untapped Millennial generation. Establishing brand loyalty at this age can help to attract consumers with a high lifetime value. • Increased demand for fun, innovative wines • Increasing integration of social media networking allows company to target nontraditional demographics • Government changes in regulation can have an adverse impact on revenue and product offering. Must keep on top of policies and restrictions • High degree of imports & foreign government subsidies flood the lower priced value varieties. Must find source of competitive • Consumers have a high reliance on social and mobile technology. The lack of utilization of these mediums can be • Wine is not optimally consumed in higher intensity nightlife establishments such as bars and clubs • Younger generation feels as if they are not being marketed to.
  • 8. Immix Section #2: Marketing Plan of Action for IMMIX Sept 2013 – April 2014 What’s your Mix?
  • 9. Immix MISSION & INTRODUCTION Socialize a young generation with a fun and joyful atmosphere; bring a clean and fresh taste of fruits with the sparkling wine attitude to their night life. And give them what they want. Immix is a mixed wine cocktail that allows young alcohol consumers to enjoy wine in a social, casual atmosphere. Convenient, easy to hold packaging in combination with a higher alcohol percentage than typical wine coolers, increased the ease in which cosumers can consume wine in a faster paced social environment What’s your Mix?
  • 10. Immix FISCAL YEAR 1 OBJECTIVES Launch IMMIX into the alcohol market on October 1st, 2013 1. $2,205,003.42 of revenue generated through sales this product in Fiscal Year 1. 2. To drive target market awareness of IMMIX determined by having the product be available in 65% of GTA bars/clubs by end of Fiscal 2013. Micro-Objectives: - Provide sponsorship of Toronto Fashion Week in March 2014 - Launch all 4 varieties of IMMIX -Increase social and mobile media, evaluated by Twitter and Facebook followers. Target of 1,500 followers in each medium What’s your Mix?
  • 11. Immix TARGET MARKET Key Demographics: - Female. 19-30. College/University educated. Employed in various occupations. Middle - Upper class. Single. Key Behavioral/Psychographic Traits: - Social life and alcohol are synonymous. Frequent bars/clubs/big events as social venues of preference. - Alcohol is an affordable luxury but economic value is key factor. - Balanced lifestyle - Up to date on trends and popular brands. Will seriously consider purchasing a product based on peer group preferences * Sample Consumer Profile Available in the Appendix What’s your Mix?
  • 12. Immix Instrument audience • Social network active users TARGET CONT. Mass/Indirect Audience В2B • Bars •Restaurants •Night Clubs Secondary Target Market (Demand Audience ) B2C • Our Target or Primary Audience Primary Audience • 19-30 • Female • High degree of social activity • Socialize in clubs and bars What’s your Mix?
  • 13. Immix PRODUCT POSITIONING IMMIX is a higher-alcohol content wine-liqueur cocktail that provides the young, social alcohol user to enjoy wine in a higher intensity, fastpaced social atmosphere. What’s your Mix?
  • 14. Immix PRODUCT STRATEGY Product description: - 50% sparkling wine, 25% flavored liqueur, 25% water. - Wine contracted through established APL vineyards; Liqueurs through division of that handles APL non-wine production - Alcohol percentage value is 11%. A lower percentage alcohol percentage for sparkling wine (12%) will be used to balance out the higher percentage liqueur (20%) - Four varietals dependant on liqueur type. (Peach, Lychee, Black Currant, and Cherry.) Key Benefits: - Wine based alcoholic cooler - Convenient, easy to handle packaging - ¼ liqueur. Higher alcohol percentage provides economic value for consumers - Modern/trendy bottle design What’s your Mix?
  • 15. Immix PRODUCT STRATEGY CONT. Competitive Advantage: Providing alcohol drinkers who have a preference for wine, to consume a wine based beverage in a higher intensity, social atmosphere while maintaining a higher alcohol percentage than other ready-to-drink coolers. Packaging: - 4 pack (341ml standard cans) - Sleek, narrow can design to increase ease of handling - Lighter feel for females - Modern, ambiguous look What’s your Mix?
  • 17. Immix PRODUCT STRATEGY CONT. Brand Name – IMMIX [EM-MI:X] Rationale: - Wanted trendy, easy to remember moniker. Avoid using generic varietal based name. - IMMIX is a synonym for blended or mixed - Opportunity to link with certain types of music that are mixed by artists - With slogan ‘what’s your mix?’ believe it would catch on quickly with younger generation What’s your Mix?
  • 18. Immix • PRICING STRATEGY Retail price is $12.40. Approximately $1.40 above average price for ready-to-drink coolers • Currently “APL” and the brand “Roundpetal” do not have an equivalent product We will set the price for our product at the range between wine and coolers, that will help to define our product into new category “wine coolers”. • 95% of coolers are consist or hard alcoholic beverages such as vodka, rum, gin and whiskey. However our product will be relatively new for the market, because it is made with sparkling wine and liquors. • Higher alcohol percentage than other coolers – Average is 5% – IMMIX is 11 Cost of production per pack + Variable cost 3.77 50% Price offered to distributors 7.54 Selling price before tax 12.40 +HST Selling price after tax 13% 14.42 *Appendix slide #37;38 What’s your Mix?
  • 19. Immix PLACEMENT STRATEGY - LCBO and Wine Shop are sole distributors - Licensing for bar and alcohol establishments occur through LCBO Year 1 Placement Goals: - 100% placement in Wine Shop retailers - 70% availability in LCBO retailers - Goal of 65% availability in GTA bars/clubs - Sponsorship of major music & arts events - Licensing revenues by high promotions and partnerships with high occupancy bars/clubs in the GTA *Distribution options are limited due to the high degree of regulation in the Ontario alcohol market. What’s your Mix?
  • 20. PROMOTIONS STRATEGY Immix B2B B2B promotion with different kinds of contests will affect the consumption in clubs. Moreover, some of the contest will stimulate the work of night clubs and bars. That initiative will rise amount of selling products and bring new customers. B2C Affect Different kind of events and activities that will stimulate: real time selling, future time selling, will build an awareness around the brand We will show key benefits through advertising: • Convenient and easy to drink • Part liquor and high alcohol percentage
  • 21. Immix COMMUNICATIONS PLATFORM Outdoor advertisement Direct messaging (phone) Contests B2B and B2C Internet banners, website and social media Customer Magazines Sponsorship Sampling Programs with bars and restaurants (special offers) What’s your Mix?
  • 22. Immix ADVERTISING Outdoor Advertisement Direct text Messaging Will be divided into two categories: 1. “Buzz” - developed to create a rumors about the product. Will not be given any names except slogan and brand image. 2. “Informative” - developed to share a key benefits of our product, will show different varieties of bottles. Main aspects of that platform are: 1. First part will create “Buzz”, people will get weird text messages: “What’s your mix?” Needed to attract them to our site and networks. 2. Will be launched to inform potential customers about special offers at bars/nightclubs and inform them about future contests What’s your Mix?
  • 23. Immix ADVERTISING CONT. NIGHT CLUB PROMOTIONS Will discuss with high occupancy clubs/bars that are popular among 1929 demographic about event promotions. - Hire certain promotional companies such as Mosaic promotions for event staff Discounted products for the events Can sponsor certain nights Social media promotions Quick way of building word of mouth and linking product with target market’s lifestyle Sponsorship “Toronto Fashion Week” Our company will put a press wall on the main fashion event on Toronto – Toronto Fashion week. Our logo will be putted on the invitation cards. Also, we will provide a certain amount of alcohol beverages to “TFW After Parties”. Also we will hire a professional photographer to take pictures of famous people with our product in their hands. What’s your Mix?
  • 24. Immix ADVERTISING CONT. Sampling Program with Bars Will be launched at LCBO and Wine SHOP to give a general understanding of our product and inform our potential customers about its benefits. Will be given all possible flavors of a product and hire brand representatives with our stylish brand cloth to present our product in more pleasant way. Brand representatives will serve this beverage by themselves in a certain way. Our company will provide a certain amount of our alcohol beverages to sell it there with a special offer hath of price. Moreover, during that activity bartenders and waitresses have will be informed about “right” presenting of our product. All of them have to give not just a glass but a can with our beverage as well. Also, for that particular activity will be developed information lists about mixing our product with other beverages. What’s your Mix?
  • 25. Immix ADVERTISING CONT. Magazines Web Site We will put our advertising into main magazine - Vogue. This magazine more then anything match with the positioning of our product and its key audience are our potential customers. This advertising will inform the customers more about none visual benefits – lifestyle, nightlife, social aspects. However there will be photos of different flavors. We will have our own website. All the billboards will have QR codes on them, when scanned they will lead to Immix’s website. The website will be an interactive one where visitors will be asked questions about their favorite music and flavors, and asking them to wait for the “Immix” to happen. This is more to create hype and buzz. And get important information about future activity. What’s your Mix?
  • 26. Immix ADVERTISING CONT. Internet Banners Social Networks Will be developed special interactive banners. That will be playable. People can choose a drink there, open a bottle and spill it into a glass. In the beginning of our activity this banners will interact with people asking them a question: “What’s your mix?” All gathered information will be collected for future activities. Immix will also have a Facebook and Twitter page where the audience will be engaged in contests as well as get the most “Immix” news from and updates from fashion, music and lifestyle. Live interaction will also be promoted through these mediums and importance will be placed on users comments and feedback. This platform will be advertised by every activity. What’s your Mix?
  • 27. Immix B2C CONTESTS “Ambassador of IMMIX ” “Toronto Fashion Week” Ambassador of Immix is competition during which contestants have to promote our product and reach the maximum amount of likes of related banner: the winner will get a free drinking Immix card, which he can use at every bar or night clubs which have a partnership with us. There will be 1 “gold” cards (winner can visit all our related events for free + get our beverage for free); 3 “silver” (can visit all sponsorship events for free)/ for 1 year only Contest, during which contestants have to create short video clip interpreting “What’s your mix”. Post it on the Facebook and Youtube. The videos also will be posted on our Facebook and YouTube pages, where all can put a “Like” on it. The winner will be decided by users of the Facebook and YouTube, defined by numbers of “Likes”. Top 5 most viewed videos will get a free ticket for the TFW. And the main winner will get a “gold” Immix card. What’s your Mix?
  • 28. Immix B2B CONTESTS “Bartender of IMMIX” “Bar of IMMIX” Bartender at the partner’s bars who will offer the best mix made with our beverage will win a trip to Hawaii for two persons for two weeks in a 5 star hotel. That activity will help to find out the best mix cocktail with our product. The idea is to create a cocktail like “Red Bull-Vodka”. That will help us to be more popular in the night club area. Moreover, the best cocktail will be decided during the TFW. Bar or Night club where the amounts of selling of our product are more than in other partner bars or nightclubs. Will be reworded by 10 tickets to Hawaii into 5 star hotels. The winner will be decided by the end of fiscal year, when the annual report will be ready. Moreover, the bar/night club will be named as a “Ambassador of Immix” and will be possessed as a Immix place. What’s your Mix?
  • 29. MARKETING PLAN Immix Format Promotion September 1 side Direct Mail (Text Messages) text November December January February March April Price per 1 unit 1 Outdoor Billboard October 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 Price per activity 4 100000 150000 300000 5000 $ 70,000.00 150000 150000 $ 30.00 $ 31,500.00 5000 $ 12.40 $ 54,600.00 $ 12.40 $ 41,000.00 $ 15.00 $ 105,000.00 $ 12.40 $ 79,200.00 $ 50,000.00 $ 150,000.00 $ 25,000.00 $ 25,000.00 $ 4000 1,000.00 1 15 $ 4000 10 10 TFW 15 5,158.40 $ 6,705.92 $ 7,158.40 $ 8,158.40 10 10 200000 Sampling at stores 0,5 cocktail Joint programs with bars (0,5 price) 1 can Banners social 1000 V Sponsorship Night clubs 1 pack Magazine 0,5 Sponsorship events Bil+Sampl Ambassador of Immix Cards TFW + Immix 5 Tickets + Card Bartender of Immix Hawaii 1 T 1 ticket to Hawaii +$3194.67 $ 9,584.00 $ 9,584.00 Bar of Immix Hawaii 5T 10 Tickets to Hawaii+ $13691.43 to a month $ 9,584.00 $ 95,840.00 $ 676,588.32 $ 676,588.32 Total: Stage: Quartile budget: 1500 Buzz 1500 2000 Reach 7'000'000 veiws (+13'125$ to a month) 1500 1 1500 1000 1 1500 4 events, 1 Gold card +$2235.31 1 card+5TFW $ 31,125.00 $ 106,483.10 $ 137,146.40 $63,846.40 "Active promotion" Q4 "Creating Buzz" Q3 $ 31,125.00 $ 62,485.07 $ 306,114.57 $ 71,202.83 $ 126,216.43 "Gethering harvest" Q1 $ 261,265.66 $ 78,083.10 "Skimming" Q2 +30% safety $ 879,564.82 $ 78,083.10 What’s your Mix?
  • 30. INCOME STATEMENT Immix Income Statement for Fiscal 2012 and Fiscal 2013 2013 New product Sales (Note 1) Sales (Note 2) $2,205,003.42 $288,788,969.0 Total Gross Sales COGS (Note 3) Selling, General, & Admin. (Note 4) $276,883,000 $290,993,972.42 $183,326,202.63 Gross Profit Promotional Expenses 2012 $276,883,000 $107,257,000.00 $107,667,769.80 $879,564.82 $169,729,279.00 - $78,568,372.55 $74,606,000.00 Total Expenses $79,447,937.37 $74,606,000.00 Net Income Before Tax $28,219,832.42 $32,651,000.00 Note 1: Forecasted Unit Sales * Unit Price (292441*$7.54) Note 2: Sales Growth Expected to be similar to 2012 levels Note 3: Estimated by company to be 63% of Sales Note 4: Tightly controlled around 27% of sales. Additional selling costs associated with the new product will be included in Promotional expenses
  • 31. MARKETING MIX Immix • “Immix” • A great tasting mix of wine and liqueur which is convenient way of integrating win into bars, nightclubs and parties • 4 Different flavors: black currant, cherry, peach and lychee • Competitive price • $12.40 per 4 pack • Promotional pricing in bars and clubs is the discretion of venue management. Price Place • Sold in 65% of bars, night clubs and restaurants in Toronto • Sponsor 50% of major music events • LCBO, Wine Shop Product Promotion • Out door banners, that create a buzz around brand • Outdoor ads. that inform about key benefits of our product • Sponsoring of TFW • SMS direct marketing What’s your Mix?
  • 32. Product Launch Direct mail ADV at media ADV at media IMPLEMENTATION Immix ADV at media 7000000 views. Communication with social media Direct mail Direct mail (SMS messages) Direct mail Sampling Sampling BUZZ PERIOD “Bar of Immix” Sampling at LCBO and Winerack Night Clubs Sponsorship “Bartender of Immix” “Ambassador of Immix” TFW Contest Program “hath of price” with the bars Outdoor ADV to create buzz September Outdoor ADV informing our clients about key benefits October Night Clubs Sponsorship “Hath of price” Outdoor ADV informing our clients about key benefits of a product Outdoor ADV informing our clients about key benefits of a product November December January TFW Sponsoring February March April What’s your Mix?
  • 33. Immix CONTROL Our major activities are made the way when we can see and check the response on our activities. For example “Direct SMS texting” which have to inform people about our events will take part during October. At the end of November we will get the number of people who visited our events at bars and we will figure out the number of product sold there. Our main control tool will be bars and restaurants – if the sells there will go up that mean that our whole campaign is going well. Moreover, also we added a 30% safety amount to our budget to active quickly in case of unpredictable situation. What’s your Mix?
  • 35. Immix SAMPLE CONSUMER PROFILE Our target is females between 19 – 30 who view alcohol as an essential part of their social life. Either being single, or in a very social relationship, these women look for a alcoholic beverage that can be enjoyed in a casual multigender atmosphere. Having graduated with a university of college degree, maintaining stable employment is just as important as the social aspect of their life. Income level is middle class and above. They have enough income that they have the freedom to select their alcoholic beverage of choice as long as the price is reasonable. They tend to maintain an air of indifference towards money but the economic value of the product is always in the back of their mind. Trends and the popularity of products is very important. They will almost always test out a product that is trendy and hip. The same goes with their music choices, as music is also an essential part of their social life. Their social life encompasses going to the bar, pub, or night club at least once a week, typically on the weekend, in order to socialize with their friends and/or to interact with the opposite sex.
  • 36. Immix COMPETITOR PRODUCT PRICING Name Price $ Futures Key message and attributes. “Bacardi Breezer” 9.95 Available in four different flavors “orange”, “Strawberry’’, “Pineapple”, “Raspberry”. 4 Pack. Based on spirits.4% of Alcohol. “A splash of Paradise”; made for parties, shine bottle “Mike’s Hard Lemonade” 9.95 Available in different flavors “Blueberry”, “Lime’’, “Black berry”, “Lemon”, “Cranberry” 4 Pack. Based on spirits. 5% Alcohol. “Always different, always refreshing”, Social aspects and lots of trendy teen promotion on the web site. “Palm Bay” 11.95 Available in “Cherry” , “Lime”, “Mandarin”, “Orange”, “Pineapple”, “Grapefruit”, “Mango” 6 pack. Based on vodka. 5% of Alcohol “Palm bay is taking over”, contests with traveling prize “Segram” mixed beverages 9.95 Available in “Wild Berry”, “Orange” 4 pack. 5% of Alcohol “Made with pure spring water” Smirnoff Ice 9.95 Available in different packs: 4/12/24 also in flavors “Raspberry”, “Green Apple”. 5%of alcohol. “Smirnoff mixes the world’s best cocktails” Vex Electric 11.95 “Daiquiri”. “Strawberry”, ”Mai Tai”, “Pinacolada” 7% of Alcohol. “V is for Vodka” Photo
  • 37. UNIT SALES ESTIMATE FOR THE PERIOD SEPTEMBER 1 2013 - APRIL 31, 2014 Ontario Population (Note 1) 13,505,900.00 20-24 25-29 959,400.00 952,900.00 Ontario Population Between 20-29 1,912,300.00 Percentage Wine Consumers (Note 2) 45.8% 875,833.40 Percentage Female Drinkers 53.0% 464,191.70 Interest Level (Note 3) Awareness (Note 4) Light Drinkers Medium Drinkers 30.0% 70.0% Number of Consumers Fiscal Year 1 4 Purchases (1 every 2 months) 8 Purchases (1 every month) Conservative Unit Estimate for Fiscal Year 1 69,629 48740.13 97480.26 194960.51 292441 Note 1: Provincial and Age Statistics gathered from Government of Ontario Fact Sheet Note 2: Percentage Wine Consumers and Percentage Female Drinkers from PMB Study Note 3: 30% Interest level is conservative estimate based on combined share interest in coolers, mixed drink cocktails, and sparkling wine Note 4: Based on placement goal in LCBO retailers and licensed establishments in GTA
  • 38. LCBO PRICING Immix Immix LCBO Pricing Mark-Up (Note 1) Consumer Price After Tax $14.41 Container Cost Consumer Costs .10 per bottle $0.40 H.S.T Consumer Price Before Tax Standard tax rate $1.61 $12.40 Consumer Price Before Tax $12.40 Bottle Levy $0.38 Environmental Fee 0.0893 per bottle $0.36 Mark-Up LCBO Costs 0.28 per Litre 54.6% $11.66 Supplier Cost Note 1: All related pricing rates were provided from the LBCO website $7.54
  • 44. MARKING BUDGET BY ACTIVITY Immix Budget share of activities 18% 10% 5% Outdoor Billboard 8% 4% Mobile texting to trend setters 6% Sampling at stores Joint programs with bars (0,5 price) Banners social 22% 15% 12% Sponsorship Night clubs Magazine Sponsorship events Contests $ 879,564.82 What’s your Mix?
  • 46. Immix WORK CITED • Andrew Peller Limited. 2012 Annual Report. Grimsby, ON: Andrew Peller Limited, 2012. 02 Apr. 2013. <http://www.andrewpeller.com/UserFiles/File/FINANCIALS/Andrew%20Peller%20L imited%202012%20Annual%20Report.pdf> • LCBO. "Product List, Ready-to-drink/Coolers." Product Search. N.p., Web. 02 Apr. 2013. <http://www.lcbo.com/lcbo-ear/lcbo/product/searchResults>. • LCBO. "Product List, Ready-to-drink/Coolers." Product Search. N.p., Web. 02 Apr. 2013. <http://www.lcbo.com/lcbo-ear/lcbo/product/searchResults>. (Pic) • The Wine Shop. "About Us." The Wine Shop. N.p., Web. 02 Apr. 2013. <http://www.thewineshops.com/about_us.php>. (Pic) • Vector. "Figures of Dancing Girls with Shadows." Arts & Entertainment. Stoch Photos. N.p.,Web. 02 Apr. 2013. <http://www.colourbox.com/vector/>.(Pic) • 123RF. "Stock Photo." 123RF Stock Photos. N.p., Web. 02 Apr. 2013. <http://www.123rf.com/>. (Pic)