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.
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.
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
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?